Wanganui Chronicle, AND PATEA-RANGITIKEI ADVERTISER. "NULLA DIES SINE LINEA." FRIDAY, JUNE 22, 1883.

Wanganui Chronicle, Volume XXV, Issue 10229, 22 June 1883, Page 2

Wanganui Chronicle, AND PATEA-RANGITIKEI ADVERTISER. "NULLA DIES SINE LINEA." FRIDAY, JUNE 22, 1883.

In reference to last session's Bank« ruptcy Bill, which, together with suggestions by various Chambers of Commerce, it is understood will form tho basis of the Bill to be introduced this session, the Zealand Herald says : — "We have looked over the proposed Act of last session and some at least ol the proposals of the Chamber of Commerce in relation to it, and we confess it" does not greatly-impress us as a measure, .likely to do much for the commercial public, for whose benefit it professes to be drawn. The Bill is ingenious, but it is very cum» brous. It appears to us to leave just as many loopholes of escape for the fraudulent debtor as the old one did, and to be just as open to abuse to the injury of the debtor who has been merely unfortunate. In addition to these evils it is quite a novelty, and no one can even guess how to work it when it becomes law. These are serious objections, but they are in no way more applicable to the present scheme and its amendments than they are to any other scheme we have ever seen. It is, perhaps, worthy of consideration how far this is unavoidable." The conclusion which the writer in the New Ze - land Herald seems to approach, though he is not very clear on the point, is that a bankruptcy law might be dispensed with altogether, or might be framed for the purpose of '' saving the estate from the hands of one or two creditors, rather than dealing with the bankrupt at all." If, says our contemporary, the bankrupt has been fraudulent the law can punish him, and " if he is honest and unfortunate, it is easy for his creditors to grant him a release from their i claims without any enactment at all, upon such terms as they think reasonable," But in the same article we notice that there occur the terms " vindictive cieditor " and " friendly creditor," and it cannot be assumed that depriving a debtor of the opportunity of relieving himself of his liabilities by process of law would render the former class of creditors mild and placable, and the latter sternly just and impartial.. No doubt it would be as easy for the creditors to grant a .release without an enactment as with one. There would be no law against the exorcise of such generosity, and the agreement; could be made binding; but would : the custom of releasing insolvent debtors be universal or even general, and, if not, what would be. the exceptions ? It seems to be admitted that under our present bankruptcy law there are loopholes of escape for the fraudulent debtor, and opportunities for abuse to the injury of the unfortunate ; and though it is easy to understand how the situation might be. in many respects more uncomfortable for the fraudulent debtor if. there were no bankruptcy law under which' a release could be secured, we fail to : see 'how the opportunities for abuse to the injury of the merely unfortunate would be done away with or even lessened. It is a palpable mistake to suppose that this is a matter which concerns only the debtor and the creditor. It is one in which "society at large is deeply interested, and it is on that ground, and perhaps on that ground alone, that the State -i-; justified in stepping in and affording relief to the debtor, when, aftfi- giving up all he is possessed ■ '', the balance is still ngainst him. If credit be given at all, it is obviously impossible for either the creditor or the debtor to guard absolutely against insolvency ; and under tho extended system of credit which prevails at the presoat day — one might say universally prevails — the numbers of those who are unable to meet their liabilities must always be considerable, even sotting on one eido the cases which are tainted with fraud. When the condition of insolvency had once been reached it is better for society that the remains of tha estate should be given up and the debts wiped off than that the debtor should struggle on hopelessly ; living or trying to live from hand to mouth ; supporting with the utmost difficulty, and per--haps by the aid of friends, those who are dependent on him ; -tempted, nay almost compelled, to pay old scores with money which should provide for the wants of to-day ; and liable to be pounced on at any moment by a creditor who thinks he sees a chance of recovering his share of the gross indebtedness. A man so situated would naturally and almost inevitably go from, bad to worse, and if he .avoided a gaol or a lunatic asylum would find his way to the poorhouse where there was one, or become a loafer and perhaps a drunkard. He would be a burden on society, which had better at first have paid his debts in full or sponged them out. It is the tacit recognitions of the truth of considerations such as those which led to the framing, of bankruptcy laws,, and which, unless we are greatly mistaken, will be strong enough to secure their maintenance, until men are sufficiently enlightened to submit to the abolitionof the action for debt. When that point is reached we question whether creditors will lose more than they do at present, and at all events there will be an end of the necessity for a bankrupt law.