Bankruptcy.

Auckland Star, Volume XVII, Issue 215, 13 September 1886, Page 3

Bankruptcy.

(To tho Editor.) Sir, —Why ia it that wo havo hitherto failed to pass a Bankruptcy Act of a satisfactory nature—an Act that should deter rather than invito scoundrels to seek shelter within tho precincts of its courta ? It looks as if wo wore not in earnest in the matter, or if in earnest, as if we wero afraid that wo might some day need tho protection of tho Act ourselves, not a very unlikely occurrence in tho course of events such as aro at presont ruling. If this is not the spirit in which our Bankruptcy Act has beon framed, then the depth of stupidity of its constructors is unfathomable The whole thing wants sweeping clean away. Why should we have bankrupts and bankruptcy laws ? They are just about as incongruous in our mercantile arrangements as tho provorbial tilth wlicol, aud rather moro cumborsomo. The Chineso aro a peculiar people, but from our experience of thorn wo gather that they know hojy to grow vegetables, from which we may infor that generally thoy know what thoy are about. Thoy have no Bankruptcy laws; evory man must pay his debts in that celestial country. "O, what must it bo to bo thoro ?" Our systom is nothing moro nor loss than a very hotbed for roaring of rogues and swindlers, and everyone must admit that we havo reared a most luxuriunt crop. I declare in all truthfulness that I would rather run the risk of walking through ibe veriest slums of London, whoro thioves and vagabonds do congregate, with a handful of bank-notes, than ehanco tho same amount to tho commercial honesty of our trading community. Honour and honesty have no moaning amongst us, although we have a hazy recollection of the sonse we at one timo imputed to those terms ; now thoy are simply tho "sounding brass and the tinkling cymbal." You will no doubt think I am making swooping charges; but I assure you they aro not exaggerated. If proof is nocossary, I rofor you to tho painful experience of evory merchant and every tradesman in Auckland, and I feel convinced thoy will bear mo out in all that I havo written. Of course, thero are some who have not " bowed the knee to Baal," and in my mind's eye I can spot the most of them; but as a whole we are a mixed lot, and not to be trusted. Yet how pure we pretend to be I Wo shudder, bless you ! at tho very thought of tho French Bonding their recidivistes to the New Hebrides, in case of their contaminating our morale. 1 confess Ido not know very much about the French ; but if they are greater cheats than wo have amongst ourselves, then bad indeed they mast bo.

But to return to our bankruptcy law. Its lines are entirely in the wrong direction. Our Bankruptcy Court is a kind of city of refuge to which the debtor flees for protection from his creditors, whom in most coses he has cruelly wronged. Now, I contend it is the creditor who needs protection. Why should a man be allowed to come into your warehouse and takeaway your goods, under the pretence pf buying them, when he has no thought or intention of paying you for them ? Of course, I will be told that the law will punish such an offender if his guilt can be established ; but the act of proving it fe always so difficult and expensive that you are almost content to bear the ills you have than fly to others you know not of. I am convinced in my own mind that I have been robbed of hundreds of pounds within the last 12 months, and every neighbour I have has suffered in the same degree. Should the law not interfere to protect us ? Certainly it should, and I will simply indicate the direction in which the machinery ought to be set in motion, as I have alroady occupied too much of your space. I would suggest, first, that every trader, farmer, miner, labourer, etc , should bo licensed to engage in whatever occupation he may choose to follow. That everyone, before he can receive a license to trade or farm, etc., on his own account, should mako a declaration that he is in a solvent position, and at the beginning of every year thereafter he must make a similar declaration, and his license will thus become a kind ot certificate of his position. If circumstances should disclose that he has made a false declaration, thon the law will deal with him as with a common criminal. I would even make it compulsory that overyone beginning business should swear to tho amount of capital he begins with, and havo the amount inserted in his license. It should also be compulsory that he should keep a set of books, showing all his transactions, and in these days of tree education, there should be no difficulty in this.

If a trader, owing to whatever cause, finds he cannot make the necessary declaration at the beginning of the year, then his estate will vest in a district trustee, who will realise it for the benefit of creditors, and the trader shall not be allowed a license to trade for 12 months, and in overy succeeding license issued to him ho shall be required to have inserted the number of times he has been insolvent, and in what district of New Zealand.

That he shall produce his license to any of his creditors at any time they may desire to examine it.

Ab these conditions would apply to all alike, there would be no great hardship to anyone in particular. This scheme wants elaborating, but for the present I must content myself with these indications, and shall be glad if you will open your columns for a free discussion of this important subject.— J. VV.