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Poverty Bay Herald, Volume VI, Issue 664, 31 March 1879, Page 2

The largo number of insolvencies - and declarations filed m all parts of the Colony continues ,to increase, and there appears no attempt to place a check upon them. _ We quite agree with a contemporary 1 that there is a general impression abroad that our bankruptcy laws are ineffectual to prevent fraudulent insolvencies.' '■" The impression is, however, based •on error. The "Debtors and Creditors Act" of 1876, is, no doubt, capable of improvement ; but it should not be forgotten there is an act m force which applies to fraud m bankruptcy casis. This is entitled the "Fraudulent Debts Act, 1876." It is » sjffingeiftft^ftasure, and we are much Surprised that its provisions are not oftener put m force for the punishment of people who have swindled their creditors out of either money or moneys worth. We shall sketch out a few of its provisions. Any debtor who lias filed his schedule and commits any of the following acts is deemed guilty of misdemeanor, and on conviction thereof is liable to be imprisoned for any term not exceeding two years, with or without hard labor. Some of these offences are as follows : — If the debtor does not make a full declaration of his property, and of how any portion of it may have been disposed of. If lie does not deliver up to the trustee all books and documents relating to his property. If after the commencement of the bankruptcy, or within four months before such commence, the debtor conceals property to the value of £10. ' If within four months before the commencement of the bankruptcy, the debtor under the false pretence of carrying on business m. the ordinary course of trade, obtain goods' and does not pay for them. Allowing 6ctitious debts to be proved, mutilating or falsifying books, accounting for property by fictitious losses, concealing or making away with property, are all classed as misdemeanours, with a penalty up to two years' imprisonment attached. A number of other offences of a less grave character are punishable with imprisonment up to a period of one year. Why there should be bo many fraudulent insolvencies m New Zealand, and so few criminal prosecutions it is difficult to explain. Creditors as a rule, after their first anger is over, reflect that perhaps the first loss is the best and that it iB of no use to throw good money after

bad. A criminal prosecution of a debtor by the Trustee m the Estate costs money and considerable trouble. Therefore, unless creditors are very angry indeed, there is no criminal prosecuticn. With regard to this question of insolvency, it is necessary that a radical change should be brought about m public opinion m regard to the culpability of the man, who through his'own fault, fails to meet his liabilities, before any real reformation can bo effected. Pecuniary obligations are viewed with altogether too lenient an eye by people generally. Wo see men of whose moral guilt m defrauding their creditors, there is no reasonable doubt, still made much of by society. So much is this the case that ths successful insolvent is too often regarded somewhat m the light of a remarkably "smart " man and lucky fellow. The reckless spendthrift, who lives at the rate Of two thousand a year, though his income is not one fourth that amount, ia one of society's darlings, whilst the honest man, who lives strictly within his means and pays all his debts with punctuality, is often voted a close-fisted curmudgeon whom society would not even recognise. If people were to look upon the man who was morally fraudulent m the same aspect as they regard him who has been proved to be criminally fraudulent, we should soon see a very perceptible decrease m the number of cases where men fail to discharge their just debt 3. And the sooner this truth comes to be practically recognised the better it will be for the world. Then wo shall see those " wolves m sheep's clothing," who prey upon mankind, stripped of their disguise and exhibited m all their repulsiveness, then we shall no longer behold tie monstrous scandal of a man who is morally guilty of stealing thousands of pounds, let loose upon society to steal other thousands, whilst the vulgar thief who steals a few paltry shillings is lodged iv a felon's cell.