Tuapeka Times. AND GOLDFIELDS REPORTER AND ADVERTISER. THURSDAY, APRIL 10, 1873.

Tuapeka Times, Volume VI, Issue 271, 10 April 1873, Page 4

Tuapeka Times. AND GOLDFIELDS REPORTER AND ADVERTISER. THURSDAY, APRIL 10, 1873.

MEASURES. NOT MEN.

The "Otago Daily Times," in its issues of the 26th and 28th ult., enters at considerable length upon a subject of great importance, for broaching which our contemporary deserves the thanks of the community — more especially of the mercantile portion. That our bankruptcy laws are, and always have been, crude and defective to an unbearable degree, is known to and experienced by both debtors and creditors alike; and we are in a position to assert, without fear of contradiction, that the glaring imperfections which exist vex, worry, annoy, and cause loss unto both bankrupts and their creditors. The preamble contained in the first paragraph of the leader of our contemporary, in his issue of the 26th ult., we thoroughly concur in ; but we think he has hardly gone far enough in his representation of the I evils attendant upon the existing ! state of our bankruptcy law. I. Emerging from his preamble, our contemporary makes a statement to the effect that " There is no class of weapon more often kept in reserve by debtors with fraudulent tendencies .... than the post-nup-tial settlement ; " and with him we must here join issue. Let it be thoroughly understood that our object in taking up this subject is to aid in its thorough ventilation — ■ to assist our contemporary in, if possible, initiating a .much-needed reform — believing, as we have already said, that he has broached a most important subject ; but let not our contemporary overdraw the matter, or put upon it a higher importance which it does not possess, and which circumstances do not warrant. That, many fraudulent post-nuptial settlements have

been made, we doubt not; but to assert that "there is no class of weapon more often kept in reserve," &c. — which simply means to say that the post-nuptial settlement is resorted to by a large majority of the dishonest and doubtful classes of bankrupts — is to say what is incorrect. We doubt if two out of ten of all the bankrupts who have passed through the New Zealand courts ever heard of a post-nuptial settlement, or would know what it meant if mentioned to them now. If our contemporary had said bills of sale, instead of post-nuptial settlements, as the weapon so often kept in reserve, he would have been much nearer the mark, and he might then have most fairly mentioned the post-nuptial settlement as a weapon sometimes resorted to. Our contemporary, like a good^physician, diagnoses the disease and then suggests the remedy, and if their suggestion be followed out by the substitution of the words "bills of sale" for "post-nuptial settlement," then we endorse both diagnosis and treatment; but we cannot do so as the case is put by our contemporary for reasons which we shall proceed to explain. In a veiy large number of bankruptcies it will be found upon careful investigation that not very long (say from a week to six months) prior to the declaration of insolvency being filed, the debtor has given to some one or more of those to whom he is indebted security over his personal property, under the Bills of Sale Acts, which document has been registered as required by law, and which is in the large majority of cases unattackable, at least with any fair chance of success. The registration is public property, and for a shilling any person can search, and so ascertain whether, there is any encumbrance upon the personal property of his debtors. That merchants in large businesses frequently make search is well known; and that smaller traders, particularly those in the country, seldom do so, to their own loss, is equally patent. If the system (or a modification of it) suggested by our contemporary were adopted relative to bills of sale, it would have a most salutary effect, and would in a very large number of cases prevent fraud and protect creditors. The present registration, though to all intents public property, does not reach the purpose. Few search, and consequently few know, until too late, that their debtors have pledged their property to a favored or more pressing creditor. But as regards the post-nuptial settlement, we are inclined to view it at all events as presenting a different phase to that in which it is represented by our contemporary. We do not at all admit that it is resorted to with anything like the frequency stated; and as it is nearly always a dealing with real and not personal estate, its publicity in the locality where the deed is done is (irrespective and independent of registration) almost certain, for our contemporary will hardly deny that A must be a cunning fox indeed if he deals with a single rood of his ground (even within his own family circle) without B, his neighbor knowing it, and then the bellman might as well go round ; and this applies with the greatest force to the very places where such means of publicity are most needed (the country), because there no other means exist, without the employment of an agent, to search the Registry in the Supreme Court — a course which would not suggest itself once in a hundred times, unless the creditor got some inkling of what was taking place. "But," our contemporary will reply, " all this is burking the question. Of what good is the information that a debtor has settled his property on his wife after the deed is executed, stamped, and registered ? " Truly, that we grant; but where lies the fault ? We reply, in our bankru ptcy laws, and there only. We contend that it would be monstrous — a direct interference with and infringement of the liberty of the subject — to compel a solvent, perhaps a wealthy man, to obtain in the most public manner the leave of a court before he could legally make his wife a present of an acre of land, and we are satisfied that no such suggestion will ever seriously be considered by the Legislature. The objections which we are now urging do not apply to bills of sale for this reason : a man must be very nearly on his last legs when he • pledges his personal effects to a j creditor, ergo his other creditors ought to know of it ; and it would be better for him that they should ; , such knowledge would keep many a man in sinking circumstances from the absolute ruin which a withholding of bis transactions usually brings

upon him ; but in the matter of real property, the case is in our judgment totally different, for the reasons stated. The remedy is to be found in the enactment of a new bankruptcy law, which should provide for the total, expeditious, and almost costless surrender of all property made the subject of postnuptial settlement in contemplation of bankruptcy, or made at a time when the bankrupt was not thoroughly solvent — the onus probandi of solvency to lay with the bankrupt. We commend our remarks to the consideration of our contemporary, trusting that they will be taken in the spirit which has actuated us in writing.

Now that the session of the Provincial Council is close at hand, it behoves the people of Tuapeka to take some energetic action towards securing for settlement some land on the neighboring runs. About the best means to adopt would be a petition, which could be expeditiously got up, and would be signed by every resident in the district. The Provincial authorities, if willing, can without any difficulty throw open 35,000 acres of land. Five thousand acres can be taken from Bellamy Run under the covenant, which the action between the Government and the owner of the station cannot in any way override. Five thousand acres are available on Mr. Smith's run under the covenant ; and under the provisions of the Otago Waste Lands Act, 1872, a block of land of an area of 2,500 acres can be taken from each run, and be devoted to settlement upon the deferred payment system. But let the system upon which the land is to be settled be what it may, let us get the land for those who are seeking for it. We are speaking without exaggeration when we say that' there is not now a piece of decent agricultural land to be had in the whole of the Tuapeka district. Truly a pretty state of things to exist upon one of the best and richest districts of this progressive colony. If the same policy is carried out in other parts of the colony, the immigrants now being introduced will prove a curse to the country. Such a policy will prevent them from spreading out into the country as they should do — will confine them in the sea coast towns, demoralising and being demoralised, steeped in poverty and habituated to crime. Were the country lands open, so that any farmer might take up a reasonable block, a very different state of things would ensue. As the interior became more populated, so would the wealth of the towns increase, and both would go hand in hand in a career of brilliant prosperity. Settlement in most countries must necessarily follow the construction of railways, or it would be useless to undertake such works. Here in New Zealand the case is different. Railways are being projected in all directions, yet land is becoming every year more difficult to obtain by the settlers. Speaking of the Tuapeka district alone, there is a persistent, ever increasing demand for a piece of God's earth whereon to settle. That sickness which is the result of deferred hope has been suffered by many, who still linger on in hope of being able to establish themselves comfortably in the district where they have lived. The repeated delusive hopes which have been held out by Provincial Governments shows that no Executive can deny the justice of the demands which have been made, and should stimulate to|further, more earnest, and more combined exertion. We remind our readers of the old adage, " Heaven helps those who help themsel/es." If we stand idly by, wishing for blocks to be thrown open on the Bellamy and Smith's Stations, the land will always be a sheepwalk. Let action then be taken at onee — a public meeting called, a committee elected, and a petition drawn up for presentation to the Provincial Council The Secretary for [Lands and Works has always avowed himself a friend to settlement, and, from his actions while in power, there is no reason to doubt that he is. He will be a powerful aid in obtaining what is sought if his assistance were enlisted. Again we say act, and act quickly.