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Wanganui Chronicle, Volume 6, Issue 288, 17 April 1862, Page 3

In another column will be found a notice of soriie Bills which the Government in- | tend to bring forward in the Session of ! the General Assembly, which is to be ! held’this winter. They have given them publicity in order to learn the opinions of the constituencies regarding them, and to take advantage of any suggestions that may be made for their improvement. d?liis is something new in this colony. Hitherto. Government Bills have made their first appearance when laid on the table of the house for discussion, and, therefore, these measures did not receive that mature consideration which their important bearing on the interests of the colony demaitdech From this has arisen in a'great measure the constant need for amended- acts, which are sometimes required from a change of circumstances, but Which in New Zealand have frequently been occasioned by hasty legislation, which did hot provide for the condition of affairs at the time, and much less had any regard to contingencies in the future. The most important as it was the most urgently needed of these proposed measures is'The ■“ Imprisonment for Debt Act.” From the period when the .creditor had power over the person and life of the debtor up to the present time, legislation has always been moving in the direction ;of giving to the honest insolvent personal freedom and protection from the anger of his creditors. Probably the object thus sought hhs been attained as fully as a regard to the interests of justice will warrant; and more recent legislation has been directed to the promotion of the interests 1 bf creditors, which it was believed the provisions of the English laws of insolvency and bankruptcy did not sufficiently keep in view. The great expense consequent on the winding-up of bankrupt estates under official assignees was. an ground of comjdaint. That this complaint was well-founded the working of the English Act on the estates will be seen from the following statement of brought under its operation in the year 1858. In that year the debts proved were £8,215,629. The amount of dividends paid on this sum was £961,910 — about 2s. 3d. in the pound on an average. The assets received by the official assignees were £1,785,263, thus showing £823,353 to have been paid by creditors for the recovery of £961,910 —a rather handsome commission of 85 per cent. But? this- may; be considered only a small part of the loss actually incurred. Mercantile people know that it is extremely difficult to wind up a bankrupt’s estate. A more than ordinary share of tact and knowledge of trade is required to turn everything to the best account. And, in general, the greater the delay there is. in realizing the property the greater is the loss incurred by the creditors. Promptitude, and yet the promptitude that hastens slowly, is eminently required in such matters. But official assignees have been found not at all fitted for this business. They are generally men having no practical acquaintance with trade; arid, consequently, the property is not brought into the market at the proper time, and does not realize its full value. " They have, in the English courts at least, a large amount of business to attend to,..aud some of it is necessarily delaycdri' i 'The..delay depreciates the property; and thus, from want of experience and attention, a great proportion of what should go into the pockets of the creditors, swells the store of those dealers who sell goods'at ridiculously low prices which have belonged to bankrupt estates. A double injury is thus done; the.creditors receive only half of what might have been realized by proper management, and the regular trader is injured by unfair competition. These evils may be avoided to a great extent by leaving the administration of such estates. in the hands of the creditors. If they have poAver to do so they vvil 1 choose one or two of the shreAvdest. of their number to act lor them. These trustees dealing in the same kind of property as tlie rat ate consists qf, know exactly what i o should bring, and Avhon it should be sold, aril self interest .as 'Well as a desire to do their felloAv-suffcrers a benefit, ensures that the utmost, care will be taken to realize the assets in the most satisfactory manner to all concerned. Noav this is, Ave think, a Aveak point in the proposed measure of the Government. It hands 0A T er the administration of bankrupt estates to official. assignees (the registrar or such other persons as may be appointed by thecourt); and though it provides to a certain extent for their Avant of practical knowledge, by the appointment of mercantile assessors to ait along Avith them, it seems-that the creditors themselves are to have no say whatever in the management of wlrat is really tlreir own property. This is nqt satisfactory. If there is to be an official, assignee, let him act as a legal adviser, treasurer, and chairman to a committee of the creditors appointed by theuii ;t but' let. 'him have no more power in the realizing of the property than any other member of the committee. This may appear to be a somewhat cumbrous machinery; and the unrestricted action of the official assignee may be thought most likely to effect an immediate and satisfactory settlement; but this has nqt b.een found so in practice, and it stands to reason that men practically acquainted from their .every-day'experience Avith the best-mode of realizing the property, and whose personal interest prompts

them to act:as; they would in the conduct of their oAvn business'; will be more''likely to gain, this object, Another provision to Avhich we'would take exception is tlrat of the fund for defraying the costs. To such a fund there may. be.no great, objection in itself, but there sbems to ftisa radical inequity in the'mqde of its : 'maintenance proposed. It is intended that a cer ain per centage -should be taken out of nil insolvent estates for the replenishment of this fund. Now, it will be generally allmved- that those estates which pay the highest dividend are much the most easily and speedily wound up. A small dividend is generally accompanied, if not caused by litigation, foreign correspondence, a d general difficulty in realizing. Here, then, is a provision by Avhich estates causing the least expense and trouble are to be mulcted of the, heaviest costs, and those whose expenses are the heaviest are to pay, little or nothirig. In other words, traders who have acted with the greatest caution in their choice of the persons Avith Avhom they dealt,-are to be taxed heavily, in order to save the pockets of fellow-traders who have recklessly given' credit to all whom they could induce to accept of it. The application of the proverb. “ Let every herring hang by its own head” would be much more equitable. Let the expense! of every estate be a preferential charge on its oavii funds. In the enumeration of offences under the Act, one is mentioned as being the “ insolvent’s making away Avith, or assigning or making over any of his estate or effects, before or after the commencemen t of his imprisonment.” This seems to us a Aery indefinite clause. There should be a. time six 1 - or eight Aveeks before the debtor’s imprisonment, or application to the court—within which tlie making aAvay with property should be considered an offence. r lhe punishment of offences against the act seems very mild. There should surely, be' some severer; mark'> of reprobatiori on the conduct of the fraudulent debtor than the delay of relief for a year. These are points in the Act which seem to us to require consideration'. No doubt our several chambers of commerce will have it discussed, and the result may be expected to be a comprehensive and satisfactory measure which Avill not need amendment Avithin a year or two of its being passed. Meamvhile, we must congratulate ourselves on having, a Government which.. does not merely speak of bringing forward needed measures, but prepares them, and does so in time to have them submitted to the review of the public before they are brought into the house for final revisal.