' ['hi' Report of the t ' ommissioners appoilited for inquiring into

Bank- """c'd. ut':.,. ruracy and Insydveney, which was presented to Isali MUM'S Or P:1111:1- 0.1■VV.O10.11 , ! ment, hasjust been printed. The lleport and I,:a 'donee together occupy . huh"' 1'1' ' five hundred and ninety -two elosely-pri t I t■ li mei. ..t..o 'macs. The Repel • the Luau, and Itself 18 very volumintnis and comprehensive, mid tills I woit)'two ■ be rt•tidered v., ., ,...., . pages. It commences by setting forth the Royal Commission, and mentioning the subjects fluty bad to take into consideration, which were ; the pree.nt state and administration of the laws relating to bank- rupts and in-ol.ent debtors, the expediency of making any alteration therein, whole r the ,everal Courts by which these laws are now admi- greets became more 14.44144:41, alel :Ire originally ineltelyel wit' 11 • detection of' fraud, the laa:

nesty, mason:el, as if a leolltrup-,

full disclosure, ea at the last mow I•F a too:-■ litigious resistance, no direct putt i-llment is provided. The objeei 4,e: he law lia. the relief of ins:dvent did bra is the personal discharge of 'Le !;e t, the prolonaed imprisonment of the fraudulent, and the distribution of their preseat effects and future-acquired pro- perty amongst their creditors. It affords it efficient ',leans for the detection of fraud, but it gives, to a limited extent, au indi:ect power of

punishing .31-!,,.nest nre bv a remand to prison.

With r.T,o.,.; 1, 1., di.. jolt lv which small traders are exchel,...111,,..1 tl,.. 1: 5 1' -!IYX5, the Report (put the testimony or Tar,. . • ; " Imprisoa

ment nu the ces,. or a 1. 1- le, a.- i••• v:I i:.." :,nd policy of the bankrept-la..s. .,:el jt. t: 1 nt Ia• ,„..r.ied as a hardship on - -- honest 1-ttai 1..,•:..-11:ao, wl, es net wee debts of suffici, magnitude to fal:

LI! ,rr.po• thue that ise should be suljeet 14) imprioentisat ,144•11 ihe abseoce of fraud can be ascertained by ilateiry : widist anollmr, merely because he is more :-.115•;;1•.1 ii nv ,'c' iv from imprisonment unless fraud be : • • 11,1: ae. r that -II has been taken for gut. . •

Insolvent 1).-1,: •„: operation of the !-:;, who have con- tracted debts come under the bankruptcy-1,,, , of mercantile :table vicissitudes

nu grounds for shy by the small . i that two-thirds

:4re per.sons who

nistered !iv i,•:Jefici.dly united so as to eo,perate with and assist each other, and 14y what int•amt the benefit of such laws may be secured to, and the ado tic•ratiun thereof provided for in the country districts. The Report then proeeeds to state that thcre ..re defects in both branches of the law, the provisions of each ',deg inadequate to the object sought to le obtained. The holm, of the bankrupt- law, which is coniimat to traders under err:,, II e5mditions, is the equal distribution of the ell'epts of those who cannot it their engagements; and its ordinary coltsequwwe is the release .o• such traders front all future liability of their peri,on, ;555' 55;*ter-;.5:51nired property. 'flie statutes reliable: to bankruptcy. 1,, i.e. eir ,ii,icted to meet cases of fraud, were l'outc!, iii55511 pri155415.• • 2 rn': it, but by de- mahy classes not eflicient for the pesi,,hinent of disho- 4.4. the court, and makes a supposing .515 than by thy.

of' those who peti,1.4:: 4 come withie the 1. 4.),-. 4. I 11 the 3.61)1 pe- titions filed in the las.,:•.• . . -.1 • re were of non- traders, 1.o:-,,, : tienl...r.:. 2.: • ,l,.::. ,.:.vd - doubtful" were coma:'.-.'„ . '' - :.••rs. se : :4" - s...) : surveyors, u4. snr;;•.•:, • ,- .:-.......ners., 1;1 ; 0:..,.....1,i.:. F': 1:13, 5. Thj l' -• . ..ey of ' ins44.4y,11:. 4-4,2.. see., Nho C..0. :.1.. ,..1,•,:'sed wi„1... ba: I•,. A . l'lle in- 4 S,/i VC.I. 'L.

' iiiipyi• ,,_ in Out

. (I. nti...;e. ,Ii:, . , him

ii'. ii.' r . e lityws.

sa.I.

.. racter ; .;:,

, ...!,..nee I:. must 1:.• .:•. 1 1-ring

1 up bi- , (fr,-

(11sd: :I. .: ..,:

' The 1...... ide

hi- 1. : .1nd i:-.11,

I; to

• . 10, , late- . a few !.•er :. a Ile ir ; i• is unal,l, la

i These des .,

ti•••'.••■•:' ,::•

, I 1, Isc.11

l'01110 I.:, a 1,3111.1:LI-

debtors be allowed, but inducements should be held out to them to cede their property at such period of their difficulties as would best insure equal justice to all their creditors, whilst, on the other hand, a more effectual remedy should be provided against those who would avoid or delay this act ofjustice. Since the abolition of arrest on mane process, a speedy and cheap mode of testing insolvency, the Commissioners observe, has been much wanted ; to remedy which it is proposed that a creditor, having filed an affidavit that he had delivered the particulars of his debt, and demanded payment, and that his debt is justly due and still remains unpaid, should be entitled to a summons compellmg the appearance of the debtor, to ascertain from him, on oath, whether he believes he has a good answer to the demand, or to any and what part thereof. The object of this proposition is, that where a debt or any part of a debt claimed is clear and indisputable, and the admitted sum is not paid into court, or to the creditor, or security not given to pay within a reasonable time, such default to be considered a proof of insolvency, and if his creditors aronld desire it, such debtor to become amenable to the law for the equitable distribution of his property. If, however, the belief of a good answer be sworn to, neither the person or property of the debtor should be interfered with until the creditor shall have established the debt and obtained judgment. The Report next proceeds to consider more in detail the material defects in the existing laws of bankruptcy and insolvency, both with reference to the union of the two jurisdictions, and, in the event of such *Iteration not being deemed expedient, with a view to the amendment of each separate system. This branch of the Report includes, voider different heads, the " trading," " the petitioning creditor's debt," " the act of bankruptcy," " the fiat, and mode of uttering it," " the adjudi- cation of bankruptcy," "the certificate," " defects of the administration of the bankrupt-law in the country," " defects of the insolvent law." These subjects are considered at great length, and various suggestions are made by the Commissioners ; the most important of' which are com- prised in the following notice of each, in the order it appears in the

Report.

With respect to trading, the Commissioners, after pointing out the endless litigation to which the present distinctions may give rise, recom- mend the extension of the specific description of persons liable to the bankrupt-law, and that it should be made to apply directly " to all persons engaged in trade or business requiring capital and credit."

The Commissioners recommend that the petitioning creditor's debt Should be reduced ; that it muy be safely fixed at 50/. for one creditor, at 70/. for two, and at 100/. for three or more creditors.

In order to compel an insolvent trader to become a bankrupt, the Commissioners are of opinion that the plan before recommended of stratmoning a debtor for the purpose of malting him declare upon oath whether he believes he has any good defence to the demand, should be adopted ; and that the non-payinent of the proved demand within a given time should be deemed an act of bankruptcy. The Report further says, on this point, " Considering that the declaration of insolvency is in itself a meritorious vet, and that it was intended as a means for the Isonest trader to take legal steps to procure an adjudication of bank- ruptcy against himself, we think that the declaration of insolvency should be done away o ith as an act bankruptcy; and that any trader, -whether he had committed an act of bankruptcy or not, might upon his own application, with the concurrence of one or more creditors, quali- fied as regeired fur the petitiening creditor, and upon proof of the con- curring creditor's debt, and of the trading, to adjudged a bankrupt." With respect to the affidavit, the bond, and the fiat, the Commis- aloners think, that thonah originally introduced for a beneficial purpose, they are now unnecessray and est-isss. All rarties aggrieved ought, in the opinion of the Commissieserz, to wake their complaints directly to the Court appointed to redress them.

In adjudieasioos of bankruptcy, the Report recommends, that when- ever the te'jedication has teen male ex parte, the alleged bankrupt should have notice given him benire he is advertised, that he may, if be choose, have a hearing appointed to decide on the validity of the adjudication. The granting of certificates only on the signature of' a certain number of cre-Itors the Commissioners think mischievous in its consequences. They recommend that the granting of the certificate should be a judicial Set, but that the ererlitors should he allowed to show cause against it.

The power of amms conditions to ties certificate is also recommended. Amongst 1, tints requiring alteration in the law of' bankruptcy,

the Coinmissi,,oers oti the fallowing: the day for the last examina-

tion stood 1 ;,tit Li.C:i•--"IrPy he restricted in the first instance ; the limi-

tation of the tire and dividends is inconvenient ; a bankrupt should he entidel to his allowance after a limited time before the final dividend; rna,;. men ts in full ought not to be mad: of' rent, nor of clerks' and ervants' salaries and wages beyond three months ; that a bankrupt shonid be lisble to a eriininal prosecution if' he do not attend and sub- mit hi ms t' for exantisation hone ter he may lo! directed by the Court; or if he have fr., ubalently attempted to tlispose of his itroperty, or to sinew his cresitoTs ; or if he has appropriated trust property to his own use. Snell periora, to be imprisoned, svilleitt bassi lab ior, at the discre- tion a the Cu'. rt, asd the judgment upon tle•to to be ad verti-ed, A sidi- tonal fseilit:,o are shit, riaeanmentled to be given to proseeetions.

The defeets in lite id lxi ties ion of the law of hard:nude i• in than etauntry ere merely eneme-it•ed is those evils, it is coneeiveti, sill! be

' • ,! ,'.!.,11[1:1.1,t. of the proposed curt, which

the Comes: reeoni wend.

The it,,tilvent law arc, in the opinion of

the , ners. ?Le tf.•:.-.ii);!, a certitin tintn of imprisonment neees- nary to the rel'ef of the hsne.,' ; the want of means for the trLicesery m:r! seizure of ms.perty ;it mited extent to which frauds aTe path:4.2.! ; ,,r dew:lion and punishment ; the wirer of a de:aining ered-itor to liberate a debtor thoush remanded to prison for fraud ; the iteli•eriminate liability of' Vulture property ; and the /et 'hi "r, •4 ,eret of latpriytnInefit of debtors in the country com- pared with th,)::e itf,,,Toffirt. The Cote rok!ii,isers then proected to consider the subject of the union of the Courts, by whieb the la wg relating to bankrupts and insolvent delt.torR are now admioistered ; and express their opinion that !he 'mien art to bani.reptey iosolvency would benefit the public, if all insolvert estates were subjected to one uniform law, best adapted for the discovery and distribution of property; and they think that the bankrupt-law, with some alterations and remedies, would effect this. Arrest on mane process being abolished, the Commissioners turned their attention to the question of arrest on final process; and the conclusion at which they have arrived is, that the objections made to the former apply with equal force to the latter. The Commissioners, however, admit the necessity of either imprisonment or bail for the purposes of examination, inquiry, punishment of fraud, or penalty for neglect, and also that all property which may be distributedsunder the hatikrupt.law should be available in execution. In order to avoid the delay consequent on procuring an order from London to hold to bail defendants about to quit the country, the Commissioners recommend extending the power in certain cases to judicial functionaries in the cotntryC The iommissioners next consider the remedies to be proposed for the

improvement of the law. This being the most important part of the Report, we shall give it in their own words.

" PROPOSED COURT.

" We proceed to recommend to your Majesty the means best adapted, in our opinion, tiir the administration of the estates of all debtors who are unable to meet their engagements, and are amenable to the law for the equitable distri- bution of their property.

" For this purpose, we deem it highly expedient that one Court ofJudicatute should be established.

" That England and Wales should be divided into such number of districts as your Majesty may think tit, and that the court should consist of a sufficient number of judicial and other officers, for the administration of this branch of the law in such districts. The importance of the jurisdiction to be exercised, and of the questions to he decided ; the great diversity of interests to be pro. tected, and the very large amount of property to be ndministercd by the court, require that it should be a court of record, holding such a position among the other judicial establishments of the country as to merit the respect and obtain the confidence of the public. We think, therefore, that the judicial offices should be of such a nature in permanency, in rank, and in emolument, as will secure the appointment of able mid efficient persons, men of considerable stand- ing and of acknowledged reputation in the profession of the law. " We also think, that it weuld tend much to benefit the public service, if a system of gradation in rank and emolument were introduced in the judicial offices.

" We think that the primary tribunals, both in London and the country, should be constituted by any one or more of the judges of the court, and that such tribunals should here (subject to appeal) a more extended jurisdiction in matters relating to the administration of the estates of debtors who are made amenable to the jurisdiction of the court than the Commissioners of the Court of Bankruptcy now have. Much trouble, delay, and expense would be saved to suitors by enabling them to procure, in the primary tribunals, many remedies which they are now obliged to seek at a heavy expense elsewhere. " In this opinion we are confirmed by nearly all the witnesses who have been examined by us, as well as by the memorial of the merchants, bankers, and, trailers of the city of London to the Lord Chancellor, for extending the juris- diction of the Court of Bankruptcy. " The judges acting in the different districts should be auxiliary to each other, so that every' inquiry may be carried on in the place most convenient to parties and witnesses. " In addition to the ordinary duties of the judges of the court, other duties might be assigned to therm particularly in the country, with great advantage to the public service. In the event of the establishment of Local Civil Courts for the recovery of debts, the duties of the judges of such courts might be taken by them. So also COMMiSSi0113 of lunacy, and other especial commissions, from tinse to time issued out of Chancery, might be directed to such judges. " We think it right that each of the judicial functionaries should, in dis- charging the duties of the court, have the powers incident to your Majesty's other courts of record.

" We consider it very important, that a new court should, on its establish- ment, be freed as much as possible from any prejudice which hiss attached, whe- ther deservedly or undeserved's', to that which it has superseded. It may therefore be prudent to adopt a new name for the !imposed court ; but we do not at present suggest to your Majesty any new title, as we think that point may be reserved till the nature and extent of the jurisdictions of the court shall have teen determined." -

The Report recommends that a court of appeal should lie formed on matters within the jurisdiction of the proposed court, and that three of the judges of the London district should sit as often as necessary, from whom an ukininte appeal might be made tii the Lord Chancellor. Instead of the present three Judges of the Court of Review, six Commissioners of the Court of Bankruptcy, four Commissioners for the Relief of Insolvent Debtors, and seven hundred Commissioners of Bankruptcy in the country, the Report proposes to substitute twenty-two or twenty-three judicial functionaries, wills ns many registrars attached to them ; satisfied that they will be sufficient to discharge the duties of i the court throughout England and Wules, together also with the duties of' the Judges of Local Courts for the recovery of debts.

It is recommended that all the officers, both London and district, should be, us far as possible, under one roof and one control; that in London there should be two departinents—nnmely, the registrar and the accountaitt ; the fintner to register all proceedings both in London and in the (toiletry ; so that the public may have the advantage of one central office to furnish inffirmation respecting every insolvent proceed- ing ; that the tdlici„1 assignees should be in one department, so as to render it pessible to frame a system under which all monies should be administered by one officer, and these nssignees should be relieved from liability to eosts in actions or suits fur imy thing done in the perform- ance of their official duties.

To relieve small estides from the burden which falls upon them under the present system, it is proposed to maintain the court hy a rceultited , percentage upon all prorerly passing through it ; at the same time, drat ' a certain sum shall 1,e paid in the first instance by the petitioning ere (how in all cases coming under its jurisdiction, to he repaid out of the first money combos to the hands of the official assignees. This, with the interest of' .taossie/. Thn-e per t ettl. Stock in the flank of' England, remaining From old Link repteilas would, in the opinion of the Com- inis6ioners, " amply suffice Mr the maintenance of the proposed court, wit loml int posiiig ally additional burdens On the finances of the country." 1 The Report is signed - " 'I'. EnsiirNE, EDWARD IIOLROYD, " W, Er.i.ts,

J. llonst.sx PAhMER." BENJAMIN HAWES, GEORGE CABR GLYNN, 30SDUA Ev ANS,

JOHN M. DE FONEGANWIE,