BANKRUPTCY IN BATAVIA.

Westport Times, Volume VI, Issue 911, 9 January 1872, Page 3

BANKRUPTCY IN BATAVIA.

[Chambers' Journal.]

The> laws of bankruptcy in Batavia | are somewhat stringent. A letter from' Java to a merchant in Boston, gives this outijuo:—To bo bankrupt here is a somewhat different affair from what it is in the United States. Immedialely on becoming bankrupt the names of the parties are placarded about the town, and in the Exchange as if prima facia infamous. The books are then examined by the public officer for that purpose. If the estate does not pay sixty per cent., and the bankrupt can be proved to have done business after he knew the fact, he is put into prison as a criminal for a number of years, and declared "aloosh" which signifies infamous or without character. After this, the " aloosh " person is excommunicated. His word is not to be taken ; he is not allowed to be a witness, even on oath ; and if a man trusts him, lie does it at his own risk—he lias no legal remedy against him. On the other hand, if a man takes his books to the public officer, and declares that he has given up all he has, and it does not appear that he has been doing business, knowing be was a bankrupt, and after such investigation there are no suspicious circumstances, his creditors must sign his papers* Thus the creditors are protected without oppressing the debtor, the rogue is distinguished from the honest; and a person is obliged by a terrible penalty to know the state of his affairs, and when once embarrassed, to refrain from speculation to retrieve himself. This law came into operation in May, 1868, and it was not long before it caught something in the shape of an English concern which paid about one quarter of one per cent., and whose partners are now expiating their •offence in prison."