Bankruptcy.

Auckland Star, Volume XVII, Issue 218, 16 September 1886, Page 4

Bankruptcy.

(To the Kditor.)

Sir.—l was giad to ccc "J.W.V letter on the oviiij of our bankruptcy laws. A difcussiou on them invariably takes place during » spell of bud trade, but when trade rtVives and biinkiuptti. -a diminish thU agitation usually died away, having produced possibly some tinkering at the laws, rendering tbein perhaps more inoperative, than they were before tor the putiULmeot at-d prevention of fraudß. I agree with '"J.W. that we should be hotter off were ocr present bankruptcy laws 8 wept away, as in nine cases out of ten they afford no protection to creditors' interests, and are u;ed bimply to enable debtors to rid themselves of their liabilities and start afresh, with a clean sheet, at their old game of " Htatie I win, and tails youlose." Most of our bankrupts are co thick in the fkin that the strictures cast upon them by their creditors or the Official Assignee have no efFect whatever upon them, and the penal clauses of our present Act are practically inoperative. I believe there has never been under this Act any punishment meted cut to an Auckland bankrupt, however richly he may have merited it. It is by no means unusual to threaten a too urgent creditor by saying " If you press mo for payment 1 will go to the Court and file." Suiely thia shows commercial morality to be in an unsound and unhealthy state. We want more simple and less expensive machit.ery. Creditors should havo more power given to them to punish dishonest and reckless traders, without baing put to the expense and loss of timo entailed by taking proceedings in the Supreme Court. Power might be given to the Official Assignee to award (on the requisition of creditois) such punishment as ho should deem merited by a dishenest, improvident, or fraudulent bankrupt, and such cases as he deemed dtsoivinj; of more severe punishment than he could ir.flict he might be empowered to commit to tho Supreme Court for trial. No bankrupt should be able to got his discharge until lie had paid such a dividend, as his creditors and the Asciirneo might deem reasonable to demaiid, and all bankrupts, uniler pain of punishment, should be obliged to apply for a discharge within a certain fixod period. All men in any kind of business- should be obliged, usder a heavy penalty, to keep books of account; a man incapable of keeping simple accounts of his business transactions, or paying someone for doing so, is unfit to b ■ in butiness on his own account. "J.W.'a" suggestion lor business men to make a declaration on oath as to the amount of capital invested in their business, is in forcj in Germany, and, in a modified form, might possibly be introduced here without exciting too strongly British prejudices against inquisitorial laws. The above suggestion could doubtless be im proved upon and added to by the commercial community if they are really anxious to punish and eradicate their immoral and dishonest members. Our Auckland Chamber ot Commerco could, I think, with great advantage to themselves and others, discuss and suggest improvements and alterations in the bankruptcy laws of the coleny.—Yours, etc., C.W.