BANKRUPTCY (SCOTLAND) BILL. (Hansard, 19 July 1853)

The LORD CHANCELLOR
moved that the House do now resolve itself into a Committee on the Bill. The noble and learned Lord stated that the principle of the Bill was contained entirely in its details, the object of which was to effect a number of small, but important, amendments in the law of bankruptcy as it at present existed in Scotland. The Bill did not propose to do much; what it did, however, was in the right direction, and as such the measure deserved the sanction of their Lordships.

LORD BROUGHAM
considered that in dealing with so important a subject as that of the bankruptcy law in Scotland, in which many defects were admitted to exist, the proposed Bill did not go far enough, while some of its details would, he thought, be found insufficient for supplying the required remedy. Among those who had brought the subject before their Lordships' notice by petition, were 200 of the largest firms in the city of London, whose united annual trade with Scotland amounted to not less than 5,000,000l.; and they complained greatly of the delay, uncertainty, and expense connected with the present law. Not only was the constitution of the Scottish Courts extremely defective, but the mode of appointing trustees or assignees was highly objectionable; for a week, or even a fortnight, after the fiat had been issued, the bankrupt was permitted to retain the entire control over his property and account books, by means of which last he was enabled to influence the choice of assignees, and possessed facilities for making away with his property to the detriment of his creditors, which ought not to be allowed to exist. The mode of granting discharges or certificates was also a subject which required radical reform, as well as the manner in which the examinations of the bankrupts were conducted. 434 He regretted that these matters were not more fully and effectually provided for in the proposed Bill than they appeared to be. He contended that, where the Bill went in the right direction, it did not go sufficiently far, and that it was a doubtful propriety in others. It left nine parts in ten of the existing evils unredressed, and without even an attempt at redress. He thought, without further detaining their Lordships, that he had said enough to show that this was not the time to carry through a change in the law which was not more urgent now than it had been for the last six or seven years. He had not called on their Lordships to pass his Bill on this subject during the present Session; but he proposed submitting it to the Commission which had been appointed under the Administration of the noble Earl (the Earl of Derby), to inquire into the assimilation of the laws of England and Scotland; and what he wished to know was, why this present Bill, which was so much objected to as not going far enough in any direction, as well as his own, should not be referred to the Commission? This was a subject which excited the greatest interest among a most numerous, a most respectable, and a most important, body of their fellow-subjects; and he thought their Lordships' time would not be ill employed in giving attention to their remonstrances and their suggestions.

The LORD CHANCELLOR
said, the subject on which his noble and learned Friend had addressed their Lordships was one of the deepest interest and importance, and if he could think that the pressing on of the measure now under consideration would in the slightest degree interfere with or damage the ulterior prospect of permanently improving the bankrupt law of Scotland in a different direction from that aimed at by the present Bill, or would at all interfere with the labours of the Commission, he should at once defer to the suggestion of his noble and learned Friend. But he submitted that this Bill did not in the slightest degree interfere with that view, its object being simply to improve the provisions of the existing law of Scotland. That being so, he trusted his noble and learned Friend would not suppose that it was with the slightest inclination not to give the fullest attention to the suggestions he had made for a more extensive improvement of the bankrupt law, or to divert the Commission from a full consideration of the laws of the two countries on this subject, that he (the Lord Chancellor) now pressed 435 forward this Bill. His simple and sole object was to concur with the other House of Parliament in amending the existing law in the few particulars to which this Bill related; and he therefore trusted their Lordships would allow this Bill to go into Committee.

LORD BROUGHAM
said, the apprehension out of doors was that this Bill would stand in the way of more radical amendment of the law. His own opinion was in favour of taking what he could get, looking forward to the prospect of obtaining more at some future time; but undoubtedly, when their Lordships had regard to the great number of petitions which had been presented in favour of his Bill, to the great importance of the stake in question, and to the respectable position of the petitioners, they being the very cream of the mercantile men in the kingdom, he thought they ought to allow that larger Bill which he had the honour of introducing to go to a second reading.

The LORD CHANCELLOR
said, so far as he was concerned, he was anxious that that should be done; but as his noble and learned Friend's Bill contained about 200 clauses, his noble and learned Friend would not suppose that their Lordships would pledge themselves to assent to all the details of the measure. He (the Lord Chancellor) could not even say as yet that he understood the whole of his noble and learned Friend's Bill; but he could assure their Lordships that it was a measure exceedingly well deserving their attention, and one which ought to be referred to the Commission which was now sitting.

LORD BROUGHAM
said, he had consulted with his noble and learned Friend on the woolsack as to the most convenient time for proposing the Amendments he sought to make in the measure; and the result was, that he (Lord Brougham) thought it prudent to postpone those Amendments until a future stage of the Bill.