BANKRUPTCIES.

Otago Daily Times, Issue 8557, 27 July 1889, Page 6 (Supplement)

BANKRUPTCIES.

: TO THE EDITOB. Sib, —The number of bankruptcies that have cropped up lately in Otago is simply deplorable, and one naturally looks around for the cause aud also for a preventive to these many failures. It find a case reported which came before Mr Registrar Linkfater at the London Bankruptcy ! Court on 2nd May last, and I think if the same law or rule were adopted here it would go I a >great way to lessen the number of failures that every day takes place. " The bankrupt, living in the)north of London, had a report made against him by the official receiver, containing, as the registrar said, r catalogue of offences. It was alleged that ho had traded with a knowledge of insolvency, and had been guilty of rash and hazardous speculation!l, and had given undue preference to certain creditors, &c. After hearing counsel and others for and against the bankrupt, the registrar referred to the catalogue of offences against the bankrupt, and stated that the case was a very serious one. While not calling for a I total suspension, it was a case in which the bankrupt must not be allowed to trade in his own name for a very long period, and he therefore suspended the order of discharge for 10 years. If he obtained credit for over £20 during that period, without informing the creditor that he was undischarged, he rendered himself liable to two years' imprisonment." Were this law adopted here it would check a good many intending insolvents in New Zealand. Leniency has always been shown to deserving unfortunates, and sympathy freely administered in all cases here, but the presence of "brass " and want of common"decency in many of our insolvents is a crying shame, and tends to- lower the standard of commercial morality to the verge of dishonesty. "No credit," we are told, in the meantime is the remedy, but with the limited business done in New Zealand that would simply mean " close your doors."—l am, kc, Joy 26. John Edmond.