to contracts, and as governing the relations between debtor and creditor in these States, no trader could possibly assure himself of the responsibility, or solvency of his neighbour, with whom he might be called upon to enter on any trading or business dealing. The most vicious and bare-faced frauds, were hourly perpetrated under the full sanction and colour of the law; and conduct that would subject the actors to the pillory, and to condign punishment in any other country under Heaven, were not only sanctioned by all former usage, and their frequent repetition, but commended as a just and equitable appropriation of the property that belonged to confiding creditors. Yet, these extremes were not without some beneficial consequences.

Men at

length saw and felt, that these abuses could not longer continue without detriment to the national character, and injury to the trading community who were principally affected by them; that the individual credit of the country had been shaken to its base, and that sober and thinking men at this side of the Atlantic, began to surmise the risk, if not the actual danger, and more positive loss of continuing a commercial intercourse with a people uncontrolled by any just feeling of integrity or good faith in their dealings with the world, and who lived unrestrained by any of the ties that generally constrain mankind to a correct, virtuous, and proper course of life.

On the other hand, there were many, whose characters were freed from every imputation of this kind,

GENERAL BANKRUPT LAW.

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who were oppressed by unexpected difficulties, and unable by any just or laudable effort to meet their engagements; who had acted openly and in good faith, and surrendered to their creditors all of

worldly store that they possessed. The law, that would encourage less scrupulous of their fellowcitizens in their iniquity and crime, was unequal to their protection, when pursuing an upright and equitable course; for though imprisonment for debt had been abolished in many of the States, still the debtor was at all times and everywhere made subject in his goods and property to his creditor until paid, or in some way settled with.

To an unprincipled and dishonest man, a law of this kind had no possible terror, from the variety of ways in which he might successfully evade its provisions. It was the just and conscientious man only-he, who had surrendered all and concealed nothing, that had most reason to apprehend its consequence; who was stricken in his energies by its controlling influence— cut short in his career, and incapacitated, from the untiring persecution to which it gave encouragement, from any further effort to resuscitate his fortunes, or reinstate himself in society. A general bankrupt law framed on just and equitable principles, was demanded by the necessities and other circumstances of the country, and loudly called for, from every intersection of the Republic.

The stolid and hard-hearted creditor, of whom there are numerous individual examples in every country as in the United States, was loud and vehe

ment in reprobation of any law of this peculiar tendency. It was a measure within the competency of the General Congress on which to legislate, being reserved to them, under an express provision in the Federal constitution;* but State jealousies were heretofore too decidedly arraigned against every interference affecting the settlement or disposition of property by any general law of Congress, within the limit of States jurisdiction, to permit its passing. A crisis, however, had arrived, when the attempt at least was to be made; and if the acts of the administration of President Tyler, who succceded to the Presidential chair by the demise of General Harrison, had been in no otherwise remarkable in the promotion of remedial or beneficial measures for the country, it can lay claim to this one redeeming act, of having secured the passing of a general bankrupt law, founded on just and equitable principles, and made applicable to all, and every one of the States of the Republic; which was carried through both houses with much opposition-received the presidential assent, and became the law of the land in the congressional session of 1841.

The change in the relative position of debtor and creditor in the United States, which this alteration in the law had intended, promised as of its results, the most salutary and beneficial consequence to the entire commercial community-operating as a check

* Article 1st, sec. 8th of the Constitution declares-" The Congress shall have power to establish an uniform law on the subject of bankruptcies throughout the United States."

AND SUBSEQUENT REPEAL.

419

to the unprincipled dealer, and attaching to character and fair name, their just weight and influence; separating the upright and good, from the numerous reckless adventurers and insolvent traders, that were heretofore enabled to palm an unjust and improperly assumed character upon society, and by a resort to the most reprehensible expedients, to sustain themselves upon the public credulity-their transactions generally based upon whatever credit they were enabled to secure by these means, and of which they were at all times prepared to take advantage.

But this salutary good was not long permitted to continue unreproved, or the distinctive character which it was so likely to reveal between the different classes of American traders, allowed to continue as an exponent of the generally approved, or very opposite materials of which American society is more usually composed. The opposition with which the measure had to contend in the legislative chambers on its passing, formed the nucleus of a more general organization, and that at length became so formidable and systematic in its hostility to the further continuance of this law, that Con gress, yielding to what it conceived to have been the popular will, negatived all their former legislation on the subject, by unconditionally repealing the act, in the ensuing session of 1842, and thus restoring the country to its former derangement, leaving a large commercial community subject to the incertitude and losses-the frequent embarrass

ments to which the former imperfect legislation, guaranteed an unnatural and safe continuance.

The principal opposition to this measure was directed by Mr. Calhoun, late Secretary of State, sustained by the ultra-democratic party, who acknowledge him as one of their most distinguished leaders; yet, whose authority in such matters is entitled to every respectful consideration.

He denied, as the basis of his hostility, that the Constitution had given to Congress any power whatever to pass such a bill, for though it permitted the establishment of a general bankrupt law, this, he insisted, though called a Bankrupt bill, had reference to insolvency merely, miscalled "voluntary bankruptcy." The other arguments advanced by him, are of so novel a kind, as well as important, having been in part adopted by Congress, that we can scarcely be considered out of place in more particularly referring to them :-we quote from an intelligent commentary on this subject.

"Mr. Calhoun described the two systems of bankruptcy and insolvency, known both in America and England, at the time the Constitution was framed, as originating in views entirely different from each other. The system of insolvency he considered as "growing out of the debtor side of the question," the object being to relieve a debtor from the power of his creditors on a surrender of his property for their benefit. The system of bankruptcy on the other hand, "grew out of the creditor side," the object being to invigorate credit. These two