THE BANKRUPTCY LAWS.

Gisborne Standard and Cook County Gazette, Volume I, Issue 40, 13 September 1887, Page 2

THE BANKRUPTCY LAWS.

When so much outcry is being raised against the existing bankruptcy laws—their utter uselessness in the prevention of fraud—anything that tends to remedy the evil should be perused with interest. In Auckland lately there has been evidence of a strong desire to put a effectual curb on the unlimited credit given by shopkeepers to their customers, and other measures are being adopted to promote a healthier state of things in regard to tradein other places in the South Island the same feeling is being exhibited, and bankrupts Will in future have to satisfy creditors that their failure has in no way been caused by their own neglect. Even in Gisborne there appears to be a determination to restrain the number of bankruptcies, and the endeavour should be continued till the present demoralised state of trade is put on a sound footing. It is the duty of every tradesman to bear his share in improving the commercial morality, for it has been through their own acts that bankruptcy has been so rampant. Stop giving unlimited and indiscriminate credit, make an honest effort to weed out all undesirable customers, stop the running on of accounts from month to month, and then, and then only, will the miserable, degrading act of bankruptcy be a thing th shun and loathe instead of being a loop-hole for unscrupulous men to avoid debts incurred by the hard labour of others. At times there have been cases where misfortune falls upon a man, and an appeal to his creditors is the only thing open to him. But these cases are few and far between, and no such case is met adversely. As showing the rotten state of the law relating to bankruptcy the following resolution was passed last week at Auckland at the adjourned meeting of creditors in the estate of T. Brown and Co.. — “ That the creditors are clearly o opinion that the deficiency shown cannot be honestly accounted for, but they decline to spend their money in endeavouring to obtain a conviction, because they are well aware, from past experience, that the existing bank, ruptcy laws are worse than useless to them. The Official Assignee is hereby requested to forward a copy of this resolution (1) to th Minister of Justice ; (2) to His Honor Justice Ward; and (8) to the Chairmen of the Chambers of Commerce of Auckland, Christchurch, Dunedin, Invercargill, and Welling’ ton.” The statement of the debtors showed losses amounting to £823, The creditors present spoke in strong terms of the bondbet of the debtors in carrying on so long in the face of these losses, extending over a long period, while at the same time they represented to creditors that they were doing well, and on the strength of such representations, getting credit up to the last moment before filing. This is only one of hundreds of cases which the Bankruptcy Act has shielded from being dealt with in a very summary manner, and its repeal is to be looked forward to.