In the first method, an expence amounting to about an hundred pounds is incurred, and some delay is neceffary. The advantage to the infolvent man is, that the confent of a certain portion of his creditors is fufficient for his discharge for ever from all his debts. In the second method, the expence is little; but the fignature of all the creditors is neceffary to exonerate the individual. If he has many bill-creditors, that is to say, creditors who hold bills of exchange for which he is refponfible, a deed of truft is impracticable, as the creditors are not to be met with. Infolvent men are very apt to prefer a deed of truft, as a lefs difcreditable measure than a commiffion of bankruptcy. And, not unfrequently, inftead of bringing matters to a conclufion by one of the preceding methods, they procure a refpite, by obtaining what is called a letter of license; which is no more than an agreement from the creditors to postpone all claims for a limited time. When a trader fails, there is generally a struggle to get the more favourable courfe adopted; and the party concerned is frequently guilty of all kinds of partiality to particular creditors, in

order

order to gain their concurrence. From such practices, however ftrong the temptation, let every honeft trader refrain.

A queftion naturally occurs in this place; whether a perfon who has failed, and has not been able by the furrender of his effects to pay the full amount (k) of the debts which he had contracted, is bound in confcience to discharge the remainder, if he thould afterwards find himself able. In fome cases he is under no fuch obligation. But, in order to difcern clearly in what cases the obligation exists, and of what nature it is, it will be requifite to enquire into the letter and the spirit of the law of the land refpecting bank

(k)" The bankrupt, upon his examination, is bound "C upon pain of death to make a full discovery of all his "eftate and effects, as well in expectancy as in poffeffion, "and how he has difpofed of the fame; together with "all books and writings relating thereto; and is to deliver "up all in his own power to the commiffioners, except "the neceffary apparel of himself, his wife and his chil"dren; or in cafe he conceals or embezzles any effects "to the amount of 201. or withholds any books or writ"ings with intent to defraud his creditors, he shall be "guilty of felony without benefit of clergy." Blackstone, 10th edit. vol. ii. p. 482.

rupts.

rupts. The law leaves all fubfequent property acquired by the bankrupt open to seizure, on account of debts contracted before his failure, and remaining unpaid, unless a certain proportion of his creditors, of a specified description, have concurred in granting him a certificate of his having made an ingenuous discovery of his effects, and of his having conformed in all points to the directions of the ftatutes. This certificate, on being allowed after due enquiry by the Lord Chancellor, fecures to the bankrupt, together with other privileges, a legal indemnity from all unfatisfied claims. The law likewise points out several cases (1) in which the certificate ought not to be regarded; or, if granted, may be afterwards superseded. It may therefore be stated as the first general rule on this subject, that if a perfon who has obtained his

(1) See thefe cafes enumerated in Blackstone, vol. ii. P. 484. The bankrupt alfo, on prefenting the certificate to the Chancellor, or to the Judges appointed by him to investigate the matter, must make oath that it was obtain ed without fraud, p. 483. If it should afterwards be discovered that he had then perjured himself, the certificate, on a proper application, would certainly be anpulled.

certificate

certificate fhall be conscious that he has concealed fome fact from his creditors, intentionally, or even unintentionally (for he is not to reap advantage from his own negligence), the discovery of which would in his opinion have prevented it from being granted; he is bound in strict juftice not only to provide the best means in his power for paying the full amount of their respective debts, but likewise to discharge them from time to time with reasonable dispatch, in proportion as he shall find himself able.

But further; the bankrupt laws give advantages to the infolvent trader over other infolvent perfons, only on the ground of his infolvency proceeding from fome misfortune. peculiarly incident to trade: and are defigned for the benefit of such traders only as are both honeft (m) and induftrious. Nay, " unless "it shall appear that the bankrupt's inability to pay his debts arose from fome casual lofs i "he may, upon conviction by indictment of "fuch grofs mifconduct and negligence, be

(m) See Blackstone, vol. ii. p. 474

" fet

"fet up in the pillory for two hours, and have

one of his ears nailed to the fame, and cut "off (n)." This fevere ftatute, though I know not that it has been carried into execution in a fingle inftance, is itself a fufficient proof of the law not having intended that men who have been guilty of flagrant imprudence, careleffnefs, or extravagance, fhould be indulged by their creditors with certificates. Let us fuppofe then, that a bankrupt has been guilty of these faults, and is known to have been guilty of them by his creditors; of whom, notwithstanding, a requifite number think fit to grant him a certificate. Those who fign it may be (0) culpable for acceding to that measure; but undoubtedly they relinquish all

(n) Blackstone, vol. ii. p. 482.

(0) The difcretionary power of granting or refufing certificates to bankrupts, with which creditors are invefted by the law, ought to be employed in conformity to the purpofe for which it was conferred, to promote the public good. It affords an opportunity of giving encouragement to the deferving, and of discountenancing men of suspicious characters. Too great facility in figning certificates, by confounding, as far as it operates, the diftinction between right and wrong, is not lefs injurious to the community than the oppofite extreme.