D.—No. 5

being left to the Court to delay the discharge. It does not seem expedient to take the power of withholding consent to a discharge from the creditors until the lapse of two years, when the debtor may apply himself for a discharge. Legal Prorelics or References — It is very objectionable that any creditor should have the power by early execution to receive payment from an insolvent debtor to the prejudice of other creditors who, from bills being current or other causes, may not be in a position to follow out judgment. All sheriff's sales before sequestration should but confer a preference, excepting as to costs, and the creditors should be bound to account for the free proceeds apart of the debtor's estate for the benefit of his creditors generally. Special Provision — No Act will afford the remedy desired unless it be efficiently worked. At present an estate gets into the hands of trustees, and, in some cases, is no longer heard of. A trustee should be compelled to declare dividends at stated periods, or give a verbal reason for delay by public notice in the Gazette. An officer should be appointed, to be called " The Auditor in Bankruptcy," whose duty it should be to see that bankruptcy estates are efficiently administered. Trustees should find security to his satisfaction, and render periodical accounts of their acting for his examination and audit. He should decide as to the remuneration to bo allowed, and have power by petition to bring any trustee to the bar of the Court to answer for any irregularity or misconduct. Such an officer, under the title of " The Accountant in Bankruptcy," has been most vigilant in looking after the administration of the Bankrupt Act in Scotland recently, and the results have been most advantageous to creditors. The foregoing are a few of the points which have occurred to me ; and where I have not objected to the suggestions circulated, and where they are not inconsistent with the remarks I have made, it will be understood that I approve of them. Ido not, however, wish it to be understood that the above remarks are at all exhaustive. Many of the suggestions made in the circular are highly important, and many beneficial amendments to the existing statute may be drawn from them. I have, __c., John Bathgate. To the Chairman of the Chamber of Commerce, Dunedin. No. 43. Mr. R. G. Fountain to Mr. J. Bathgate. Sir,- — Attorney-General's Office, Wellington, 17th July, 1865. I have the honor to acknowledge the receipt of your letter of the 7th instant ; and, in reply, am directed to inform you that the memorandum of the Chairman of the Chamber of Commerce referred to therein has not been received at this office. I have, &c, R. G. Fountain, John Bathgate, Esq., Dunedin. For the Assistant Law Officer. No. 44. Mr. J. Bathgate to the Attorney-General. Sir, — The Bank of Otago, Limited. Dunedin, 20th July, 1865. Since writing you on this subject, I find the Chamber of Commerce had not sent off their Report as I was led to believe had been done. It will probably have reached you ere this, with some amendment, made upon it since I wrote you. It still retains the objectionable commissionership. I enclose you ar_ article from the Money Market Review received by last mail, which gives a summary of the recent report of a Parliamentary Committee on the subject. This may be of use to you. I have, &c, The Hon. the Attorney-General. John Bathgate. No. 43. Mr. R. G. Fountain to Mr. J. Bathgate. g IR _ Attorney-General's Office, Wellington, 26thJuly, 1865. I have the honor to acknowledge the receipt of your letter of the 20th instant; and, in reply, am directed to thank you for the same. I have, &c, R. G. Fountain, For the Assistant Law Officer. John Bathgate, Esq., Dunedin. No. 4& Mr. C. A. Calvert to the Attorney-General. g IE __ Christchurch, 29th July, 1865. The Insolvency Acts and Bankrupt Acts (of England) provide for Creditors every whcie, of Debtors in custody there, or having resided or carried on business for a certain time immediately preceding there.

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CORRESPONDENCE RELATIVE TO THE