§ 1104. In the next place, the power is important in regard to foreign countries, and to our commercial credits and intercourse with them. Unless the general government were invested with authority to pass suitable laws, which should give reciprocity and equality in cases of bankruptcies here, there would be danger, that the state legislation might, by undue domestic preferences and favours, compel foreign countries to retaliate; and instead of allowing creditors in the United States to partake an equality of benefits in cases of bankruptcies, to postpone them to all others. The existence of the power is, therefore, eminently useful; first, as a check upon undue state legislation; and secondly, as a means of redressing any grievances sustained by foreigners in commercial transactions.
§ 1105. It cannot but be matter of regret, that a power so salutary should have hitherto remained (as has been already intimated) a mere dead letter. It is extraordinary, that a commercial nation, spreading its enterprise through the whole world, and possessing such an infinitely varied, internal trade, reaching almost to every cottage in the most distant states, should voluntarily surrender up a system, which has elsewhere enjoyed such general favour, as the best security of creditors against fraud, and the best protection of debtors against oppression.
ment, increased activity and extent have been given to the bankrupt and insolvent laws. It is easy to exaggerate the abuses of the system, and point out its defects in glowing language. But the silent and potent influences of the system in its beneficent operations are apt to be overlooked, and are rarely sufficiently studied. What system of human legislation is not necessarily imperfect? Yet who would, on that account, destroy the fabric of society?—2 Kent's Comm. Lect. 37, p. 321 to 324, and note (b) id. (2d edit. p. 391, 392.)
vol. iii.2
