I
I
.1
if
! i
i
REMARK? OF Mm. CBAII AM," ' 1
v r HOfcTH CABOUHA, '
C;i Lie propoeinim lo emend ikt Dittribu
.Horn Hill.
V .., ...... ... ... ." " . .. - -a - '-' 1
, Mr. Graham said he begged leave of
fer an intendment fur the purpose of bi
otin$ difficulty which might possibly s-
riej'the practical adnuitrlin uf thi
bill, shoo'uJ it be enacted into law. When
"tbf debt of the States were assumed by
the federal Government antler ihe act of
Congress of 1790, upon lite statement of
their several serouots with the V. Stste
then rnsde, about" one-half of the State
were alleged to te ereditora, to whom a
.fended stock wat issued la the amount of
llt ir claims whilst the other States, in
eluding thai which he (Mr. U ) had the hon
or in part to represent, were mailt debt
or', and they remained tharged aa such on
the bks ol the treasury, although he waa
lift aware thai this Government had at sny
time since insisted on those charge at re
al debit. Hit amendment provided thai
the distributive thereof noStatein the pub
lic lands should be retained maaiMaction
iif claim of (hi del cription, aa provision
had been alreadjr wiade thai there should
be no retainer on account nf the auait de
posited with the States uuder the act of.
1836. ' ; ;- -
Mr. G. knew not how (he statement of
the account to which heliad before refer
red had been received in New York, Vir
ginia.aod other Stale, whom it charged
aa debtor, but in North Garnlira it iinine.
Iiately drew forth an rarneat and derisive
remonstrance from the L-gislature, who
profetted againat the act of assumption and
the mode of apportioning the balance a
mongthe S'aif 1); fhe.articlet ol Con
federation which elided when the teerral
S'atea contracted their Revolutionary
debta, it wat stipulated thai all expense
incident In the common ilefrnce and gen
eral welfare ahould lie paid out of a com
mon treasury, in be supplied "by the sev.
eril Stalrt in proportion to the value of all
the land within each S'ste, gramed to, or
surveyed for, any penon,s tweh land and
the building and improvements thereon
should be estimated," in the. wanner thai
miht be thereafter directed.
The act of aauinptinn, besides logmen,
ting the common debt of (lie Union br the
addition of tha debta ol teveral state,
changed the rule f contribution by Ihe
Stales from a land-tax in the proportion
befero mentioned, and established in it
ttead a charge on each State according to
its Federal population, at ascertained by
the census of 1790. This departure from
ihe term of contribution which ei'uted
when Ihe public debt wat contracted wa
deemed highly injurou lo her by the Leg
islature of-KorlhCsreKnt in that day, and
f t caused her, a they inisted,to be charged
.' , at a deVtvrrwhen she ought to hare been
- . . ireporltd at creditor Stati L-;.:
However Una nnght oe, U waa very err
' " tain that if any balance realty exitteda
Hint North Crolina,it w lei than the
aunt ttated in tlie report of the Comini.
tionert, and charged en theJjonta of the
Treatury at that time) inasmurh a no a.
batement Wat made for the araiioti of her
western Urtorr,nw Tennetwe, allhough
the conditiont of that cetaion xprrady pro
vide "tlut neither the lamia nor inhabi
tants wetlwtril of the boundary deacribed
. ahalf be eitimiled, after the eeation made
by virlue of thia act shall be accefed",Tn
Mcertuining the proportion of this State
with the United Statea in the com man ex-
, penti occiiioned by, the late war.!'.
Mr. G. tiid it was further manifeat that
no design had been entertained on the part
of this Government to insist on the exac
tion of the turns charged, at before ttated,
against ihe several Stale, from the fact thai
North Carolina, Virginia, and he believed
other State, had prrferrCd claim aznintt
fhe Government for expenditure in Ihe
laat war, whirh w ere allowed and paid, and
' no offtet had been made, nor, a far a he
knew let up, by reaton of theae old ac-
II, however, there wat any disposition,
alter the lapienf fifty year, to reive ihete
ctaiinn, the aMendmen did nrtt.j)revi'ntit,
its sole object and effect being to leave
them ineRVctive by tlii act, whilst all the
. rights snd defences of either party were
saved.
JU-fTta14iewJtW obterve
that the State fro'm which lie Hnirht
lunch Ittiinterett in thi matter than Sev
eral - ntbef 'weetbers of the Unioiv, but it
watdae to them "aH tfiarit should' be left
to future djohnitit, if thi Government
-t , intended to urge any further claim.
THE BANKIttVPT UW,
AX ACT h eaVMih a uMwm trfn of kmk-
. ruptct Uir abeul tttt tvul cd Itute. v ,
He U tnutltd by Iht Sena t and Ilouti
of lirfirtunlaiivtt t Iht V. Simfti of JI.
'"' V Mtrira in Congriti eNioelliat there
be, and hereby is, tablilied throughout
the United Steles 'a uniform sfsfem ol
-ukr!SiptcyaiioUowiuAU
SMier( rtMding in any Klale, JPialnct or
erritry tf-tteUnndtates,--owing
.' debts whihhall net hsve been tr.-ated in
ifinsequerice of a defalcation as a public
officer, or . as executor, adminUtrator,
guardian, or truttee, or "while acting
in any oilier fiduciary capacity, who
shall, by petition, setting f-irth, te the bed
of hit knowledge tid belief, a ut of hit
- " -'- or their creditors, ibeir reapectrve nlaces
orrev,fnf WVdue tJeach,
together with in accurate inventory f,hia
' or their pruperty, . rights and credit, of
. -ever j name, kind snd description, and the
, loca'ron and kitaatioa of each and every
parcel and portion Un;reof, verified be
ith, vr, if tfeusckeatiootly acrupulout of
taking an oa'h, by solemn amrmaiion, ap
r.I y t the proper court as hereinafter men
tioned (or Ihe benefit of thi, act, end there
in declare themselves te be enable te meet
thir debts and engagements, shall be
iletmed baokrvpts within the purview of
this act, and may be so declared accor
dingly by a decree of apch ct.orl All per
aon being merchant or Sting the trade
nf merchandize, all retailers of men han
dize. and all bankers, factors, brokers uu
der writers, or marine ineerer, owing debjl s
to the amount of ' t le than two thou
aiid dollars, shall be liable to become
bankrupt within th- true iutrhl and mean
ing of this act, and may, upon toe petition
of one vr more of their creditors lo whom
they owe debts amounting in the whide lo
pot le( than five hundred dollar, to the
appropriate court, be so declared rcmrd
ingly.in the following cases t wit: when
ever sot h perioti, being a merchant, or ac
tually uting the trade of merchandize, or
being a reiader of merchandize, or being
a banker, factor, broker, underwriter, or
marine insurer, thall depart from the State,
l)'?rict or Territory of which he i an in
habitant, with intent to oVfinud hit rred
i'orj or shall conceal himself lo avoid be
ing arrested) or ahtll willingly or fraudu
lently procure himself to be arretted, or
hia good and chattel, land or tenement,
lo be attached, distrained, sequestered, or
taken in execution; or shall remote hit
good, chattels tndrffectt, or conceal them
to prevent their being levied upon or ta
ken in exerution, or by other procesf j or
nuke any fraudulent conveyance aiign
metit, sale, gift or other transfer of his
laml, tenements. Rood or chattels, cred
its, or evidences of debt: Piovuhd, how
ever. That any person so declared s bank
rupt at the instance (if a creditor, may, at
I) a election, by petition to tuch court with
in ten days alter ita decree, be entitled to
a trial by jury before tuch court, to ascer
tain the fact of such bankruptcy t or if
such person shall reside at a great distance
from the place of holding tuch court, the
said judge, in hit dincretion, may direct
tuch trial by jury to be had in the cfiunty
of ui h perou' residence, in such man
ner and under such directions at the taid
court may prescribe and give; and all tuch
decree passed by auch court, and not to
re examined, shall be deemed final and
conclusive at to the subject ma ter thereof.
Sec. 2. And be it further enacted, That
all future payment, aecuritiet, convey
ances or translera of property, or agree
menttjnade or given by any bankrupt in
contemplation of bankruptcy, and for ihe
purpose of gtting any creditor, endorsei,
surety, or other person any preference or
priority nver me general cteuiiort oi sucn
bankiupt) and all other payments, securi
ties, conveyances or translera of property ,
or agreements made or given by such bank
rupt in contemplation of bankruptcy,, to
any person or persons whatever, not being
a bona fide credi'or'or purchaser for a val
uable consideration, without notice, thall
be deemed utterly void, and a fraud upon
this set) and the assignee under the bank
ruptcy shall be entitled to claim, sue for,
recover and receive the same at part of the
asset i of the bankruptcy) and the person
making tuch unlawful preference and pay
ment, shsli .receive., fio discharge under Ihe
provision of thi act: Provided, That all
dealings and transactions by snd with sny
bankrupt, bnna fide made and entered in
to more than two months belore the peti
tion filed sgiinst him, or by him, thall not
be invalidated or affected by this art: Pro
vided, .That the other party lo any such
dealing! or Iransactioni had no notice of a
prior s c t of bin k ru ptey. or of the inten
tion of ihe bankrupt to take Ihe benefit of
thia act, and in rate it thall be made to
appesr lo the court, in the course ol ihe I
proceeding in bankruptcy, that the bank
iupt, hit application being voluntary, has, j
tubsrquenl lo the nrat day or January last,
or at any other time, in contemplation of
the passage of a bankrupt law, by assign
ments or otherwise, given or secured any
preference to one creditor oer another,
he shall not receive a discharge unless the
tame be assented loby a majority in inter
est of those of hit creditor who have nol
been to preferred.- Jlnd provided, uho.
That nothing in thi act contained thall be
construed to snnol. destroy or impair any
lawful rightt f married women or minora
or any leint, mortgage or other securities
on properly, real or personal, which may
be valid by the lawt of Ihe 8:les respec
tively, and which are not inconsistent with
the provision of the second and fifth sec
lions of this set.
Sec. S. And be jl further enacted. That
alt-the proprrjjf. snd rights of property oj
every -name and r. at lire, artd whether real,
personal or, mixed, of every bai.kiupt -er
crpt aa it herein! ter proiided, who thall
by a decree of ihe proper court be declar
ed to be a bankrupt within the act, thall,
by mere operation of law, ipse facln, from
time of such decree, be deemed to be, di
vested out of such bankrup-, without any
other act, assignment, or other conveyance
whatsoever) and ihe same shall be vested
signet a I aim lime to time shall be appoint
ed by the proper. court for thi purpose)
which power of appointment snd removal
aurjuMiiiljn
toties ,uotir and the assignee so sp
pointed hatijiff vetted with alt the Tigtita,
lilies, powers ard authorities to sell, man
age and dispose of the same, and to sue
fur and defend the earns, subject to the
orders snd directions of such court, at
fully, to ad intents and purposes, as if the
same were vested in, or loiehl be exercis
ed by, such battkrapt before or at th lime
of hit bahknrptcjr declared as aforesaid)
and all suits in Uw or in equity, then pen-
ding, in whih sacb banarupt is a party,
may be prosecuted snd defended by uih
utignee to their final conclusion." in (he
same way, and with tha same elTec at
they might have been by tuch bankrupt)
and nit commented, by or against any
assignee ahalt b abated by his death or
removal fiom office,, but the tame msy be
prosecuted or defended by his successor
in tha same office) Provided, hoicrvtr,
That there thall bo except, d from the op.
a a'ioa of the provisions of this section
ALKIUIi ST A I , AN I) W OR
. the necesiary household and 'kitchen fur-
niters, anu even eitter articles ami nece
Varies of such bankrupt, as the said, st
!sinee shall designate and .set spart, hav
j ing reference in the amount to Ihe family,
, condition and circamstsnres of tha bank
rupt, but altogether not to rxreed in val
:ue, in any case, the turn of three hundred
dollar) and alto the wearing apparel of
such bankrupt, and that of l.i wife and
children; and the determination f the st-
! signee in the matter thall. on exception la
' kn, be subject to the final decision ol
taid court.
Sec. 4. And be it further enacted, That
every bankrupt who shall bona fide sur
render all hit property and rihtt of pro
perty, with Ihe exception before mention
ed for the benefit of hi creditors, snd
shall fully comply with and obey all the
orders and direction which may fiom lime
to lime be pasted by the ptoper court, and
shall otherwise coulorm to all the other
requisitions of this set, shall (unlets s
majority in number snd vsluenf hia cred
itors, who have proved their debts, shall
file (heir written dissent thereto) be enti
tled to a: full discharge from all hia debtt,
to be decreed and allowed by the court
which hat declared him a bankrupt, and a
certificate thereof granted to him by such
court accordingly, upon hia peti'ion filed
for such purpose) tuch discharge and cer
tificate not, however, to be granted until
after 90 days from the decree of bankrupt
cy; nor until after teventy days' notice in
tome public newspaper, designated by
such court, to all creditor who have prov
ed their debts, and other person in inter
est, to appear at a particular lime and
place, to show cause why such discharge
and certificate shall tot be granted) at
which lime and place any auch creditor
or other person in interest, mav appear
and ennteat Ihe right ol the bankrupt there
to: Provided, That in all casee where the
residence of the creditor is known, a ser
vice on him personally, or by letter ad
dretsed to him at hia known usual place
of residence, shall be prescribed by the
court, a in their discretion thall teem
prnper, having regard to the distance
which the creditor residettrom tuch court.
And if any tuch bankrupt thall be guilty
of any fraud or wilful concealment of hia
property or right! of property, or shall
have preferred any of hit creditors contra
ctu the provisions of this act, or shall
wilfully omit or refute to comply with any
ordert or direction of tuch court, or to
conform to any other requisite of this act,
or shall, in the proceeding under this act,
admit a falae or fictitious debt against hit.
estate, he shall not be entitled to any tuch
discharge or certificate) nor shall any per
ton, being a merchant, banker, factor, bro.
ker, underwriter or marine insurer, be en
titled to any such discharge or certifirat ,
who shall become bankrupt, and who shall
not hate kept proper books of account, af
ter the passing of this act; nor any per
son who, after the passing of thi act, (hall
tpply trutt fund to hit own use: Provided,
That no discharge of Sny bankrupt under
this act shall relesse or discharge any prr
sun who msy be liable for the same debt at
a partner, joint contractor, endorser, sure
ty or otherwise, for or with the bankrupt.
And auch bankrupt shall at all limes be
subject to examination, orally, or upon
written interrogatories, in and before such
court, or any commission appointetl by the
court Iherefor, -on oath, or, if conscien
tiously scrupulous of taking an oath, upon
hit solemn affirmation, in all matters re
lating to such bankruptcy, and his acts
snd doings, snd his property and right of
property, which, in the judgment ol such
court are necessary and proper lor the
purposes of justice) snd if in any such
examination he shall wilfully and corrupt
ly snswer, or swear or affirm falsely, he
shall be deemed guilty of perjury, and
thstl'be punishable therefor in like man
ner as Ihe crime of perjury is now punish
able by f lie law of the United plates; and
such discharge and certificate, when duly
granted, shall, in all courts of justice, be
deemed a full and complete discharge uf
all debts, contracts, & other engagements
of tuch bankrupt, which are proveablc nn
tier this act. and shall be and may be plead
ed aa a full and complete bar lo all tuiU
brought in any court ot judicature what
ever, and the tame Shall be Conclusive ev
idence of itself in favor of such bankrupt,'
unless Ihe same shall be impeached for
some frsud or willul concealment by him
of hit property df rights, uf property, a
aforesaid, contrary to the "provisions of
this act, on prior reasonable notice speci
fying in writing tuch fraud or conceal
ment) and it, in any case of bankruptcy,
a majority, in number and vatue, of the
creditors, who sha'l have protcd their debts
tt Ihe time of hearing of the petition of the
bankrapt for s discharge aa litre in belore i
provideo
written dissent to the allowance of a
discharge and certificate to such bankrupt,
oe if, upon such hearing, a dischsrge shall
jnoLbedscre
demand a trial by jury upon a proper is
ue to be dtrerted r try -ther oort,- at such
lime sod place and in such manner as the
court may order) or lie may appeal from
(list decision, st any time within ten days
thereafter, to the circuit court next to be
held for the same district, by simply en
tering in the district court, or with Ihe
clerk thereof, upon record his prayer for
ao-a'ppeali.i.'s'ba-appeal.-ahall- -be tried at
ihe first terns of the circuit Court after it
be taken, unlets for. tufficieut reason, a
continuance be granted) and it may be
heard and determined by said court sum
marily, of by a jury, at the option of a
bankrupt) and the creditor! may appear
nd object against a decree of discharge
and the allowance of the certificate, at
hereinbefore provided. And if, npnn a
full hearing off the parties, it thill sppear
to the sstifaction of the court, or (hr jury
hall find that the bankrupt, has mad a
full disclosure and surrender of all his
T 11 C A K O L J N A .: A X
estate, as by tliis act required, and Has in
all tbinzs conformed to the directions
thereof, the court thall make a decree of
viueil in tin set. . . . .
bona fide debts, shall be entitled lo share
in the bankrupt's property and efi'ecls, pro
rata, without any priority or preference
.. .. i-i... .i . i.
whatsoever, ex.ent only lor oeuts use ur
l u.-.L . ... .1.. it c...... ....1 f.. .it
Burn naiisrvpi iu iov j quiti,ihu iui mi j
debts due by him to person who, by Ihe ,
lawa of Ihe U. States, have a preference, '
in consequence of having paid moneys as'
hia sureties, which shall be first vaid out
- See. a.. Anoue iiiunner enacieu, nai pumic newspapers pnnien in sucn oisirici, " vowri in oannruptcy, to compound a
all creditors coming in snd proving their' In be designated by such eoorl, at least t debta or Other claims or.tecariiirt, dee'
debts under such bankruptcy, in the man-, Iweiity days before the hear" ng thereof, belonng to the estate of the ha'ntra T
ner hereinafter Dresrribed, the aaiue beinir' and all person in t created mav appear at but no such order or direction ai,.u P '
of Ihe assets, and any person who aha It j before tuch rourt, or before any commit
have performed any labor ai an operative sinner appointed by such rourt. or before
in the service ol any bankrupt, shall be
entitled to receive the full -amount of the
wages due to him for such labor, not ex
reeding twenty-five dollars: Provided,
1 hat such labor shall have been pei formed
within six months next before the bank
ruptcy of his employer) and all creditors
whose debts sre not doe snd payable until
a future clay, all annuitants, holders of
bottomry respondentia bonds holder! of
policies ot insurance! sureties, endorsers.
bail or other persons, having uncertain or
contingent demanda against such bankrupt,
shall be permitted to come in and prove
such debts or claims under this act, and
shall have a right, when their debta and
claims become absolute, to have tha same
allowed them) and auch annuitants and
holder of debts payable in future, may
have the present value thereof ascertained
under Ihe direction of such court, and af
lowed them according' v, as debta in pre
sentt; and no creditor or other person
coming in and proving hi debt or other
claim, shall be allowed to maintain any
suit at law or in equity therefor, but shall
ba deemed thereby to have waived all right
of action and suit again' auch bankrupt)
and all proceedings already commenced,
and all unsatisfied judgments already ob
tained thereon, shall be deemed to be aur
rendered thereby: and in all cases where
there sre mutual debta or mutual credila
between the parties, the balance onlr shall
be deemed the true debt or claim between
them, and the residue shall be deemed ad
justed by the set-off; all such proof of
Ueote ehall be made before the court Ie
creeing the bankruptcy, or before some
commissioner appointed by the court for
that purpose, but such court shall have full
power to set sside and disallow any debt,
npnn proof that inch debt is founded in
frsud, imposition, illegality or- mistake)
anu corpoiattons to whom any debts are
doe may make proof thereof by their pre
sident, cashier, treasurer or other ofticrr.
who may be specially appointed for that
purpose) and in app inling commission
era to receive proof of debt, and perform
other duties, under the provisions of this
set, the said court shall appoint such per
qns as have their residence in the county
in winch Ihe bankrupt lives.
Sec. 6. And be it further enacted, That
the district couit in every district shall
have jurisdiction in all matter and pro
ceeding in bankruptcy arising under thi
act and any other act which, may hereafter
be passed on the subject of bankruptcy)
Ihe aaid juaisiliction to be exercised aunt
marily, in the nature of tummary proceed
ine in equity) and for this nurpoe the
said district court shall be deemed always
open. And the district judge may adjourn
any point or question arising in anv rase
in bankruptcy into the circuit court for
the district in bis dis return, to be there
heard and determined) and for this pur
pose the circuit court of audi district shall
also be deemed always open. And the
jurisdiction hereby conferred on the dis
trict court shall extend to all rases and
controversies-in bankruptcy arising be
tween the bankrupt and any creditor or
creditors who shall claim any debt or de
mand under the bankruptcy) lo all cases
and con'roversiea between' such creditor
or creditors snd the assignee of the es
tale, whether i: office or re moved; to all
cases ami controversies between such as
signee and ike bankrupt, and to all acts,
matters and thing to be done under and
in virtue of the bankruptcy, until Ihe final
distribution and settlement ol the eatate
of the bankrupt, and Ihe cloc of the pro
ceedingt in bankruptcy. And the said
court shall have full authority and juris
dicUo. to ciMopel 4belieac iu alt orders
snd decrees passed by tHem in bankrupt
cy, by process ol contempt smoother re
medial proceSs. to the same extent the cir.
coit courts n.sy now do in sny suit pend
ing therein in equity. And it shall be the
duty of the djstnet'eourt in each district,
from time to time, lo prescribe suitable
rules and regulations aud forms of pro
ceedinga In all matters of bankruptcy ;
which tuics, regulation anu lorma snail
be subject tube altered, added tu, revised
or annulled by the circuit court of the
same district, and oilier tules and regula
tions and Tor
in all uch rales, regulation and formSr it
shall be the duly of ihe said courta to
make them as simple and brief as practi
cable, to the end lo avoid all unnecessary
expenses, and te facilitate the use thereof
by the public at large. And the said
courts shall, front time to time. Describe a
laftflf of tsble of feet and charges, te be
taxed by the officers f the court or other
persons for services under this act, or a-
ny other on the tubj et of bankruptcy)
wnicn rees snan oe aa low at practicaoie,
with reference to the nature and character
of tuch services.
I Sec f. And be it further enacted, That
all petitions by sny bankrupt for the
benefit of thi act, and all petitions by
a' creditor against , any .bankrupt under
.this act, and all proceedings in the case
10 the close- thereof, shall be had in the
district court within and for the district
iu w hich the person supposed to be a bank-
fit T K
rupt shall reside, or have his place of bu- (al, whether payable in present! ur tta f i
siness st the time when auch petition is fiU 1 tore day. and to lender a due nrr. :
j ed, except where otherwise provided in Hiis j of the con.litiona thereof. And auch I
i mereoi snail ue poDiistien in one or more job i.ruer sou direction of ii.lv
, the lime and place . where the hearing is made until notice of ihe pplicii01 jj
j thus lo be had, and si ow cause if any 'l'?" i' some publje jiewspaper lt g
' they have, why the prayer of ihe said pen- I distiict, to be dea:gnated by the court t.
i i i.i i ..n 1. 1 1 I i.. i...r... .l . t ? ... tw
tioner miouiu 1101 uejranieu: ail eiuience " ai least ueioie the hearin?. ih.1.0
i. :. 1.. .. 1 : .. :n l : u. . ..1 t-.r';--
ui wiiiircai uc w-v-.. 111 an fimriiigii yr-
fore such court shall be under naih, or
solemn affirmation when ihe party la con-
tcientinusty terupuloua of taking an oath, j
and may be oral or by deposition, taken
any disinterested State judge of the State
in which the depoai ion 1 taken) ami a'l
proof nf debts or other claims, by credit
ors entitled t prove the same by this act,
shall be under oath or soleinn"a formation as
aforesaid, before such court or co.nmisxion
erappointed thereby, or before tome disin
terested State judge of the Slate where the
creditors live, in tuch form as may be pre
scribed by the rules and regulatiousherein
belore authorized to be made and establish
ed by the courts haling jurisdiction , in
bankruptcy. Rut all such proofs of debts
and other claims shall be open to contesta
tion in the proper court, having jurisdic
tion over the proceedings in the particular
case in bankruptcy) and as well the as
signee as the creditor shall have a right to
a trial by jury, upon an issue to be direct
ed by such court, to ascertain the validity
& amount of such debts or other claims; &
the result therein, unless a new trial shall
be granted, if in favor of the claims, shall
be evidence of the validity and amount of
such debts or other claims. And if sny
person or persons shall falsely snd cor
ruptly answer, swear or affirm, in any
bearing or on trial ol any matter, or in a
ny proceeding in such court in bankrupt
cy, or before any commissioner, he or tney
shall be deeriied guilty of pejury, and
pun'uhable therefor in the manner and lo
the extent provided by law for other case.
Sec. 8. And be it further enacted. That
the circuit court within and for the dis
trict where the decree of bankruptcy ia
passed, shall have concurrent jurisdiction
with the district court ol the same distric t
of all suits at law and in equity which may
and shall ba brought by any assignee of
the bankrupt against any person or persons
claiming an adverse interest, or by tuch
person against such assignee, touching any
property or rights of property of said
bankrupt transferable to, or Vested in,
such assignee; and no suit at law or in e
quity shall, in any case, be maintainable
by or against auch assignee or by of a
gainat any person claiming an adverse in
terest, touching the property and rights of
property aforesaid, a ia any court whatsoev
er, unless the tame shall be brought with
in two year after the declaration and de
cree of bankruptcy, or after the cause of
suit that) first have accrued.
o. n a .i k.:. r....u.- 1 -ri . '. lne J"" oate, uen
all tales, transfers and other convevances
of the assignee, of the bankrupt's proper
ty and rights of property, shall be made
at such times snd in such manner as shall
be ordered and appointed by ihe court in
bankruptcy; and all assets received by
the assignee in money thall, within sixty
day! afterwards, be paid into the court,
abject to its order respecting its future
safe keeping and disposition; and the court
may require of such assignee a bond with
at least two sureties, in such sum as it
may deem proper, conditioned for the doe
and faithful discharge of all his duties,
and his compliance with the orders and
directions uf the court; which bond shall
be taken in the name of the United Statea,
and shall, if there be any breach thereof,
be sued and sueable, under the order of
such court, for ihe benefit of the credit
ors and other persons in inirrest.
Ser. 10. And be it further enacted,
I'hat in order to ensure a speedy settle
ment, and close of Ihe proceedings in each
case in ba- kruptcy, it t-hall be the duty
of the court to order and direct a collec
tion of the assets and a reduction of the
same lo money, 'and a distribution thereof.
at a early periods as practicable conais-J
..All. ... 1 1. .I... .. , . . I. " i T
icniij miiu uuc irgaru 10 111c luieyeaia
of the creditors: and a dividend and dis
tribution of such assets as shall be collect
ed and- reduced to. tnuoie v, .or o aimch
thereof ar -can he safely so disposed of,
consistently with the lights kand interests
of third persons having adverse, claims
thereto, shall be made among the credit
ors who hsve proved their debts, as often
as once in six months From, the tune of Ihe
decree declaring, ihe bankruptcy) notice
of luch dividend and distribution to be
given in some newspaper or newspapers in
the district, designated by ihe court, ten
days st least before the order therefor is
pissed) and the pendency of any suit at
law or in equity, by or against such third
penonl, thall Hot" postpone tuch divisions
and distribution", except aa . far a the ne
sets may be necessary to satisfy the same)
and all the proceedings in bankrui ptcy in
each case shall, if practicable, be finally
adjusted, settled, and brought tea close
by the court, within two years after the
decree declaring the bankruptcy. And
where any creditor sht.ll nut hsve proved
bit, debt until a dividend or distribution
Shall have been made and declared, he
thall be entitled to be paid the sanies
mount pro rata,' out of the remaining div
idends or distributions thereafter made, as
ihe other creditors hsve already received,
before the latter shall be entitled to any
portion thereof-" .-';? -,si.r
Sec. 11. And be ft further enacted.
That the as-ignee shall hsve full suthority,
by snd under the order and direction ul
Ihe proper court in bankruptcy, to redeem'
any mortgage or othrf pledge or drpositr
or lien Upon any property, real or person-
. i- - . . . . .... l . . . k. . urn.
creditors aiffl other persons in interest
appearand show cause, if any they k,,
at the hearing, why the order or dirtctial
Bat .
uirtcit.
nan not be passed
Sec. 12. And be it further enactej
ITiat if any person who shall havc ben
h.t
ii.iiBigpu enuer tins act shall afierwt
become bandrupt, he shall not again,
entitled to a discharge under this aet- i,.
Ie hi eatate shall produce (after i!f
charge) ufficient to pay every credits
seventy-five per cent, on the amount (
ihe debt, which shall luve been alluw to
each creditor. . v -v
Sec. IS. And be it further enactri
That the proceedings in alt cttet in bank,
ruptcy ahall be deemed matters of record;
but Ihe same shall not be required tube
recorded at large, but thall be earefull,
filed, kept, and numbered in Ihe office of
the cnr, and a docket only or short men
orandum thereof, wi h the numbers, kept
in sbook by the cleik of the court) silj
the clerk of the court for affixing his name
and the' seal of the court lo any form, ur
certifying a copy thereof, when required
thereto, shall be entitled to receive, a
compensation, the sum of twenlj.fif
cents, and no more. And no officer af
the court, or commissioner, shall be a I lim
ed by the court more than one dollar U
taking the proof of an&debi L orjilherclai
of any creditor or other person against tlx
eslsle of the bankrupt; but he may be al
lowed, in addition, his actual tisvclcsv
penses for that purpose. s I
Sec. 14. Acd be it further ecieted,
That where two or more person, who ar park
ner in trade, become insolvent, an order bit
be made in the manner provided in tlii act, si
lliei m the petition of auch partner, or any w
of ihem, or on the petition of any creditor ei
the partners; upon which order alt lha joini
slock and properly of the company, and also ill
the separate estate of each of th partner, thall
.i:.i 1 ... ....
be taken, excepting such paita. Jllieieof aa sis
Herein excepted; and all the creditors of iW
company, and ihe separate creditors of tMk
partner, ahall be allowed to prove their respes.
tive debt, ami th assignee ahall also keep sep
arate accounts of th joint stork 01 property of
the company, and of the separata eatate of etek
member Ibeieof; aud after deducting out ol Ihe
whole amnuot received' by auch asaijj neet, taa
whole of Ihe expenses and disbursement naif
by ihem, the nett nioteeda of die joint stork
shall be appropriated lo pay the creditor of tan
company, and the nett proceeds of the septnlt
estate of each partner shall be appropriate
pay hi separate creditor; and if there han
uy balance of the aeparate estate nf any pi
ner, after lha- payment of hia aeparate debit,
auch balance ahall be added lo lha toint atocl
for the payment of ilus Join! Crediicrs; and if "
there shall be any balance of lha Joint stock, sf-
.- man, iiai 1 snail ba divided and appropriated to aud amosf
the aeperata cslatea of the teveral partner, ac
cording to their respective rights and interests
inerein, ana aa it would bav teep If the pin.
nersnip nan oeen aissoived without any bans'
luptey; and ihe sum so appropriated lolhtstft
rale estate of each partner ahall bo applied 0
the payment -of hia separate debts; and tha cer
tificate of diachanre shall be granted or refused
lo each partner, a the aaroe would 01 ought t j
o 11 in proceedings bad been against him alom
in thia net; sad in all other respects ihe pre
eeeding against partners shall be conducted ia
lha like manner a if they had beea comment
and prosecuted ajraiiisl one person alone,
bee. IV And be it further eoaeted, flat a
copy or any deere of souk ropley, and lha ap
pointment of assignees, as directed by th third
aecilou of thia act. ahall be reeited i a evert
deed of land belonging t the bankrupt, M
and conveyed by any assignees, under and ky
virtue of thi act; and that auch recital, together
with. a certified eopy of aueh order, ahall be
full and complete evidence both of the baak
rnptcy and assijinmeni h. rein rectied, and aupei
sedethe nc-eescity of any other poof ' f aueli
bankrnptry and sajifitmcnt to validate tl.a saW
deed; and all deed containing such recital, aid
aupported by aueh proof, ahall be as effectual lo
pans ihe title of the hankrnpt of, To, -and 10 Ik
lands therein meniioned and deacribed lata
purchaser, aa full, to alt intent aad noroosea.
at f mad by aueh bankrupt himself, imiaede ,
ately before neh order. - j
See. 16. And be it turthet .aeid. That SB 1
jurrtdietion, power aad authority conferred una
m inn nmmci court ot lne C !'"
Slate by this an, in canes in bankrnptry, tt
hereby eor.ferred oonn aA mi.I . tkriieuil
lumum, and in and apoa lb Saprsma tit Sup
nor Conit of any f thtt-Territoiie ef lha Ia
States, in eaaroor baakroptev, where th bank- .
ropt resides in ihe said Diavirict it Ciloaibi.
' or the aaie territoiie.
See. 17. Aad bo it further eoaried. That thia
act shall take effect tha Cist dai
j-oCTcbruarj u.. ..:
1 JOHN WHITE.
.5or tf ihi Haute tf Urnrctntatirtt.
SAM'L L. SOUTHARD.
Pretldent tf the Senate, pre tempere. ,
Approved, August 19, 181.
'V ' JOHN, TXI.CK.
IGNORES i
Friday, Aug. 0
IN SENATE.
The Bill to revive and extend the ehir
ter of the bank ol Ih District of CmIusv
bia, ss smendedby the House ofReptesea
latives, wss iakea up, and, after a few fi
planatory remarks from Mr. Mrrrirk, sad
s reply against the Bill by Mr. Beataa,
the question: waa taken on concurring iv
the amendments of the House, sod decided '
in the affirmative. '
1 h Land Bill was taken up, and amend
ment after amendment pressed on thecos
sideration of the Senate. The amendmeat
did not vary in principle from tome that
had been negatived more than once before.
At 9 o'cloi k; the Senate adjourned sf
er having been in session eleven hours.
HOUSK OF REPRESENTATIVES. , '
On tabt ion of Mr. Sergeant, the Ilonst