The Fielding Star. WEDNESDAY, SEPT. 20, 1882. OUR BANKRUPTCY LAW.

Feilding Star, Volume III, Issue 28, 20 September 1882, Page 2

The Fielding Star. WEDNESDAY, SEPT. 20, 1882. OUR BANKRUPTCY LAW.

In] perusing the ••list' af^TiMiaWtirTfis 1 ruissdd'biy ithie Jloiim- (luring »tfe6 ■ Vei*' sjon just.ciosed, we were " struck with, the BDs6nce .therejroin oi^aoy J3ill M or, measure dealing- \ witK , tbe , present :Bankruptcy-Xawj ,; W; is smgular, «nd yet sugg^tiv^' tfekt^both tW BMfll- 1 ! ruptcy Md Liclpiisfn'^ 1 Acts are invar l-" ably she! vec( 'ftoni 'sessio.u to sessiQn. jThe assuniptionyift.Alnv?^; / itwroiit ! ed'. ,tb,at our legislative Colons are incapable of grasping the details necessary

' for the passing of a measure that would protect thp crpditor, at tHeipiime. time yielding legitimate secuijty ti| the debtor. To say that the ppe'sen'l T.aw is eminently lufrsarofactory, is simply to admit a vuisjg^ — a self evident fact to both Sfr l n !*«£{>■ SJ^flll, fr * 1 4.i? r ' few ye;irs a^o thg.JLh&n existing-, , Bank-. ruptcv Act 'was amended in sucl'i a m:inm j r as was hoped would. pi^e. -with, puhlic-approyal The -fnlrotfuction of the Bankruptcy Amendment Act, into the House, was announced *pp,t,§" by a mnjoriU' ot the Press, and ■thje then Government was held up as a toodel for universal praise, in hawig 1 Supplied a panacea for the previously existing ills attendant uj>on a vicious Hankruptcy Law. Like many other .Acts vfifpito <St^*>en,t the Statute 15ook~ of "Kew Zealand, the "Bankruptcy fAjS^tog^her -.(with -ijU many amendments, has been weighed I in| the balance and found wanting, ] Tb»^»^s^S*^^fecrtoßi fifth** present Ait are notorious. Indeed, it is not top much to say that the fiankrupicy Liw which obtains in the Colony j at the present T \ti/n& t>flVfcs\ «£. dir~e.o& premium for fraudulent insolvency. Dan O'Con.vejll's axiom, atent the " driving of a coach and four" through ct i¥ 'l^rliawentf, *is parficuiaray applicable* fo the Bankruptcy Act of iNew Zealand.. £s*o better proof of its defectiveness cojild tod hrsßdt>viken YteumentiKriittlie; lafge number of petitions which have beten presen&d tittimG&ttt&tto'i'idkii tothfe Government by the various Cham-be-rs of Commerce throughout the Colony. It will be remembered that the Ghev Government .made'bankruptcy reform -\°. ne <of'4he e^wiinal features of their programme. With their txit from office, the matter endftd.. |lhe present Government, after some pressure was brought to bear, took $ie subject in hand, with the result that the Colonial^lS^rfetary^ ' (XIV Dick) introduced in the House a ! T3iil to arf^d* ihWiAPreisltift^^o Ijatofcr' pt-ey. Tiie Press and the pujbl c have heard nothing of the «i( xter since, beyond the fact that the new Bill is to beoiiv?u^fte£dufiifg- ? tbs to allow (Cham lifers *• of XMmm<rce and the country generally to ca isider the measure. No alternaJi\ c, thereids V* left/. &K ttid * uofoesi trader, but to carry on as -usial, till the meeting of Pariiaane£V£ &^JiJnej'" Tl c abolition of the credit system iv an r brauch. >of retail business is abso"iui ely impossible in the presentTa<j« ofikeea -and increasing competition. It is a -matter for great regret that th 4 present Bankruptcy IjgnfrjspJ&Ogt! aniended this session, in such a manner as would have protected the hoheet and.* <i»duStrt<>USl portioD. 'd< th£ community from the dishofiest and unscrupulous. Several ta^es off 'bankruptcy have occurred in th}s town, during the past few months W]e seed ;not refer to the details of ea£h ©articular case, with which, do i* rtl essf *>nr rfeatfteTV arts' f> rerty - conversant. The manner in which one of these bankrupts v wou&&l'J-Ifi£ oracle" would have gladdened the heart of a Philadelphia lawyer. Thenudus operandi is for the trader to! begin businesf in 1 sn\s4l +fy, and by maktrVg* prompt * settlements big business soou extends, while the enterprising trader iaKfifeHi upon as a '* good mark," Having caf^^y^rame^'iße'^aWrupfcy™^,'' he changes bis mode of business.^JfrS Engagements are not so prompt as pr< viously, bufYa#J»g(3 0 9&dt5i I © e rß intio the confidence of those who sup¥>Jij him with goods this irregular*uy is overlooked. Suddenly the 'trader files, and his aalt aief- VJi^rf^- ' mi red into, is comparatively worthres ! — in fact, the assets are nil, and' th< liabilities heavy. The bankrupt,'ffvrtng' t« the<JJbp-lj^lls in"3ie nre's«at*Act,-l<>on oftJrs h4i»-elf, fmd f departs for other lands. The bankrupt does not want his ''.dlschkrjie,'^ beiog, in most cases, utterly indiffereni as to whether his creditors" '^lli permit <ii' such being grant fed.! ' -The"' niily ''mode' of \ftin iii ! ihe'' faan'ds qf'th'e : c.redj" torfe t)j r ' £he present A<?J; j.B pkat pf-, vfrposi7f(f'i ,th.c. . bankrupt's , jdisehatgd. * T^iis power to punish the debtor is therefore useless. In another parjt <>i ••'*i'e'Oo!;6hyV ;i a'n'd u'no^er simrlar advantages he repeats the programme. 'Ihfß is not an exaggerated case ; unfortunately 'it is : only too common. Like many other fiyijs. that;. Qoihm.unit /ties are subject to, the bankruptcy evil seems infectious, and is not ''by' any means confined to one particular

branch of trade^" or bjjmn«'ss. ffi'llie mechanic/ the TfcfHsanf- atf^i.the sjinall dealer to |s fouwi jtlie oraple iuSa marker si^ilarit,o t'l^case vv^e" ft^&fer^ ta crying evil, and one calling f«r immeiliate reform. It is dimply monstrous that the. present Bankruptcy Act^ — offerinar, as it does, a- direct encouragement to rosrues and knaves i to live upon tfcie e;irnin<fs of the more rioiVest^and industrious portion of the community — should have remained so long on the Statute Book of the ■>(apl<siijj£wj}io % nt any amendmont tevor. We sincerely trust that the Government, during the present reJcesfiJ\t ill deal with the matter of bankruptcy reform, and meet Parliament jaext session with a measure framed on a just and liberal basis.