liable to a criminal prosecution. The object of this arrange ment was, of course, to meet fraudulent, or not entirely honest, attempts to obtain the benefit of a discharge of debts under the bankruptcy laws It was not entirely successful, inasmuch as there was no settled principle observed in classifying the certificates, and the lowest class was, for all practical purpose?, as good as the highest. The Act of 1849 also encouraged private arrangements by making a composition, accepted by nine-tenths of a bank rupt s creditors, binding upon the rest ; but it was decided subsequently by the courts that, to make such a composi tion binding, it must be accompanied by a complete cessio bonorum. The next statute, the Bankruptcy Act, 18G1, made non-traders subject to the law of bankruptcy, and empowered a majority in number, and three-fourths in value, of the creditors to bind the minority without a cessio bonorum. This arrangement was found to lead to private and fraudulent compositions, and in consequence by an Amendment Act in 1868 enlarged powers were given to non-assenting creditors. All this legislation still failed to give complete satisfaction. The complete exoneration of after-acquired property was denounced as unfair and likely to invite fraudulent bankruptcies, the system of ar rangements with creditors was disliked, and the control of creditors over the property of the debtor and proceedings in bankruptcy was felt to be too small. The Bankruptcy Act, 1869, was passed after many unsuccessful attempts to deal with these complaints. It established a new Court of Bankruptcy, consisting of a chief judge, registrars, and other officers. The commissionerships were abolished, and the subordinate staff was to be transferred to the new court. The chief judge in bankruptcy is to be a judge of one of the Superior Courts of Law and Equity ; and hitherto the office has been held by one of the acting vice-chancellors. Appeals from the county courts in bankruptcy go to the chief judge, and appeals from the chief judge to the Court of Appeal in Chancery, and thence occasionally to the House of Lords. Ollicial assignees were abolished ; and trustees, who should be creditors, are to be appointed to distribute the bankrupt s estate, while the creditors may appoint a committee of inspection to superintend the opera tions of the trustees. A comptroller in bankruptcy will receive the trustees accounts after they have been audited by the committee, and take notice of any irregularity in the proceedings of the trustees. The law of reputed owner ship was restricted to traders. Voluntary settlements by a trader, except in the case of property accrued in right of his wife, are void as against the trustee if the settler becomes bankrupt within two years after the settlement ; and if he becomes bankrupt within ten years, it must be shown that, at the time of the settlement, he had sufficient property besides to pay his then existing debts, otherwise the settlement becomes void. A covenant by a trader, although made in consideration of marriage, for future settlement of property not then in any way belonging to him, is void as against the trustee, unless the property has been transferred or paid before the bankruptcy. The Act also introduces im portant alterations as to the discharge of the bankrupt. A bankrupt will not be discharged unless his estate has paid ten shillings in the pound, or a majority of the creditors (three fourths in value) declare that the bankrupt is not respon sible for the deficiency, and that they desire his discharge. If within three years the bankrupt makes up the dividend of ten shillings in the pound, he may have his discharge; and in the meantime his property will be protected from the creditors of the bankruptcy. If he fails to make up this dividend within three years, any debt remaining unpaid will become enforceable against his after-acquired property, subject, of course, to the rights of creditors subsequent to the bankruptcy. There are provisions for compromising the bankruptcy by composition or liquidation by arrangement. The usual criminal clauses have been separated from the new statute of bankruptcy and appear in a separate enactment, the Debtors Act, 1869, and the Court of Bankruptcy has no longer any criminal juris diction whatever. The Debtors Act abolishes imprison ment for debt (except in certain cases in which the debt is mostly of the nature of a penalty), and provides for the punishment of certain misdemeanours of fraudulent debtors, whose affairs have come into bankruptcy. The prosecution takes place before the ordinary criminal tribunals. The Bankruptcy Act and the Debtors Act become by the repeal of previous statutes relating to insolvency, bank ruptcy, and imprisonment for debt a complete record
of the legislation now in force on this subject.Under the new statute all the county courts are consti tuted local courts of bankruptcy, while for the London district, as defined in the Act, there is the London Bank ruptcy Court. All these courts are presumed to be the same court, and cases may be transferred from one to the other if necessary. Subject to this power of transfer, proceedings are to be taken against a debtor in the court of the district in which he resides ; and if he does not reside in England and Wales, in the London court. By order of that court, or by resolution of the creditors, or by certificate of the local judge, cases may be transferred to the London court from any of the local courts. The chief judge, or a local judge, may delegate the powers (except the power of committing for contempt) to the registrar. All the courts of bankruptcy and their officers in England are to act in conjunction with bankruptcy courts in Scotland and Ireland, and with British courts having jurisdiction in bankruptcy elsewhere, the orders of one court being enforceable within the jurisdiction of the others. Section 72 of the Act gives to the new Court of Bankruptcy the important power " to decide all questions of priority, and all other questions of law or fact arising in any case of bankruptcy coming within the cognizance of such court, or which the court may deem it expedient or necessary to decide, for the purpose of doing complete justice or making a complete distribution of property in any such case." By this enlarged jurisdiction the court has power to decide, even as against strangers, questions arising in the bank ruptcy ; and it has been held that it may restrain proceedings in Chancery or at Common Law, and even out of the jurisdiction. The judge may, at the request of parties, or of his own discretion, direct issues of fact to be tried by a jury.
relating to insolvent debtors was abolished. Up to that time traders only had been allowed the relief of bankruptcy, and all other insolvent debtors remained liable to their creditors for the unpaid portion of their debts. They might be kept in prison during the creditor s pleasure, and any property they might acquire was available for the satisfac tion of the creditors claims. From time to time special Acts were passed for the liberation of insolvent debtors confined in prison, a general Act (53 Geo. III. c. 102) was tried for a limited period and repeated, and finally, by 1 and 2 Viet. c. 110, a court was established for the "relief of insolvent debtors," their discharge, of course, being con ditional on the surrender of their property for the benefit of their creditors. The principle of the distinction thus maintained between the trader and the non-trader was, that the creditors of the former were to be regarded as to some extent partners in his speculations, while the latter was alone responsible for his insolvency ; and it was feared that the discharge of bankruptcy, if allowed as a means of satisfying private debts, might g_ive great encouragement
to extravagance and fraud. On the abolition of the