§ Order for Second Reading read.
§ THE LORD ADVOCATEsaid, he would now beg to move the second reading of this Bill, the object of which was to consolidate the bankruptcy law of Scotland. The Bill contained 176 clauses, and comprehended nearly all the statutes passed on the subject during the present century. Two years ago there had been considerable agitation in this country, and partially in Scotland, for an assimilation of the bankrupt laws of the two countries, and a good deal of pressure was used for the purpose of importing into Scotland the general principle of the English law of bankruptcy. He was at that time opposed to such a proceeding, and was anxious that further time should be afforded for considering the subject. That course had been taken, and the result was that the general community of Scotland—the town councils, the chambers of commerce, the societies for the protection of trade, and the great body of professional and mercantile men—had arrived at the conclusion that the Scotch law of bankruptcy was much better, as it was also much cheaper, than the bankruptcy law of England. With the view of preventing any rash interference with a question of so much importance, a committee of the faculty of Advocates was appointed two years ago to consider the changes that might be necessary in the law of bankruptcy, and they made a most elaborate and learned Report, upon which the present Bill was founded. He might mention one or two of the more important changes which would be made by this measure in the existing law. Up to the present time the operation of the bankruptcy law in Scotland with regard to sequestration had been confided to traders, but the Bill would extend it to the whole community. He found that under the Act of 1772, which originated the system of bankruptcy law in Scotland, the process of sequestration was applicable to all persons, but by the Act of 1783 it was limited to traders, and as he thought, upon very doubtful grounds. It was not proposed to introduce any system of official assignment, for he thought that, if creditors chose to take the management of the affairs of their debtors into their own hands, it was unnecessary to interfere with them. By one of the latest Acts passed on the subject provision was made for the appointment of interim factors to take charge of the estates of bankrupts, but as 23 the system had not worked satisfactorily it was proposed by the Bill that Sheriffs as well as the Lord Ordinary should have power, upon special application being made to them, to provide for the protection of bankrupts' estates. The Bill further provided for the appointment of an accountant in bankruptcy, whose duty it would be to see that estates were duly and properly wound up, and to prevent maladministration or fraud. The accountant would be required to superintend sequestrations, and he (the Lord Advocate) believed that the proposed arrangement would tend to render the management of sequestrations much more satisfactory than it had hitherto been. The Bill, he might observe, consolidated the provisions of the Act of 1814, and of all subsequent Acts relating to bankruptcy in Scotland.
§ MR. ALEXANDER HASTIEsaid, he did not object to the Bill, but he hoped that in Committee the right hon. and learned Lord Advocate would propose clauses with the view of facilitating private arrangements under the sanction of the Court or of the Sheriffs. He thought, also, that some more stringent measures should be adopted with reference to the class of small pawnbrokers.
§ Bill read 2°.