*1 TERM,. 18*3. Cаrland, petitioner bankruptcy, Nelson, v. Daniel William opposing itor. cred an the “Act under Circuit Court adjourned District to the questions from the Upon States,” throughout the United system bankruptcy uniform of establish and, Court, conse- of the Circuit judge sit' a member district cannot as adjourned brought certi- this court cannot before quently, points ficate of division. Court; Circuit appeal or writ error lie from Nor Will an of decision'of judge. upon the and it is conclusive district be- opinion (cid:127) The case came on certificate division up the United States for tween the of the Circuit Court judges are set in the opinion facts forth Kentucky. ’'the.district of the court. Justice delivered the
Mr. Chief court. opinion of TANEY in the Nelson, In of William in bankruptcy petitioner case Garland, creditor, an distriсt, Daniel 'Kentucky opposing to' the Court. several District points adjourned by court, the district hearing judge, last-mentioned Upon case; well as the sat in the justice Supreme adjourned, being opposed opinion upon questions counsel, for were certified to motion upon the petitioner. .certificate,is, first itself upon presents Court in' the- matter Supreme have jurisdiction
whether argu- this form of And after proceeding.' printed examining-the con- filed counsel carefully, ment for petitioner, the district the court sidering subject, opinion Court, upon,ques- cannot sit as a of the Circuit member judge a uni- to establish court, to that adjourned tions under Act States;” United form system bankruptcy throughout that, cannot be brought consequently, points adjourned this court will an division. Nor аppeal "certificate of it is- Court; writ of error lie from the decision of the upon conclusive judge. the district is, however, proper delivering the opinion excludes it which say, I me'to dissent from that part I.—34 Z
Vol. and. Carl the district as a judge member the Circuit sitting a case of this Yet I description. concur dis- judgment in. that the missing these-proceedings; being act Con- (cid:127) *2 .of-1802, gress certificate of division authorizing where the Court Circuit. judges does opposed opinion, not to the apply peculiar summary jurisdiction directed to be ex- ercised cases .in bankruptcy. The must therefore proceedings be dismissed for.want óf juris-
n diction. Mr. Justice dissented. CATRON On the district petition discharge, into judge adjourned Court the act question- Circuit óf estab- —Whether a itaiform lishing system bankruptcy, constitutionаl, of otherwise. were divided in on The"judges opinion question, certificate, of division was to the Supreme made Court; this court to the' calling decide return upon question, and it so decided, to be entered as-the judgment Circuit Court!
The district- judge into the may adjourn Circuit Court any has, whether he or has not, doubts its deci- question, regarding Its is a sufficient importance reason. That he sion. properly whether the question, law was or was adjourned constitutional,.is free from not Of this the Cir- question, doubt.. had full ánd and the proper jurisdiction; cuit decision of been conclusive of the case before would have us. it which-the could “question” judges Was divide.in ? 29, 1802, abt of That whenever April provides: The shall occur which the Court, upon opi-' a. which, shall'be judges opposed, point upon ilion shall shall term, tlie same happen, during disagreement upon either, counsel, or their be stated under the di- request party, seal court, rection of under the tó judges,, and.certified Court, thereafter; their next session to held Supréme .be fhe. shall, the said decided. And decision finally Court, order shall and their Supreme premises, of- record,' to the and be- there entered of remitted thé said and shall have to the nature of according effect contained Provided, and order: That judgment nothing herein -267' v. Garland. sháll if, the cause from the- proceeding, opinion'of court, further can be had without proceedings prejudice merits.” declares, act when shall occur before the any question Circuit Court,” &c., then, division, ón a made shall be certificate at the of either No matter in what request form of party. pro- it occurs, be it at law or in ceeding divisions are equity; nearly in causes as at law. frequent Under the equity law, the are in the form to courts of proceedings prescribed equity. “did
Now, occur,” in Circuit Court? It must a-question that, be admitted that one occurred could be gravest pre- jt sented to a court of and the justice: decided, there’ case, its concluded decision. judges opposed, could be decided: then it was their at the duty, request either to send it to this court, to decide party, for the Circuit (cid:127) Court; where the decision of the Court is to be Supreme entered as the of the Circuit judgment Court. clear; far the case presented, seems to be
So but sufficiently it is met another by consideration; and that is, whether the Cir- cuit' Court, in a quеstion adjourned under'the 6th section law, consists bankrupt two or judges, of the circuit judge In all cases, other only.' Circuit Courts United States, in writs of except from the. appeals District error Court the Circuit Court, (an made exception by positive legis- the two lation;) judges equal constitute the powers they— ' Circuit and must do so usually; when a Court division takes does.the law cut off these place: bankrupt dis- powers ?' The does not so and can it be judge provide; justly trict. ? If the district cannot be judge inferred a memoer of court division, the- adjourned then hearing question, no on. course can To take come at the inference of his exclu- place. sion, the intention must be ascertained whole of the act. scope
Great involved construction. It was to questions its be administered rflore than by acting judges, thirty separately; no appeal Circuit Court allowed, save in a single case: that of a refusal to finally from his bankrupt and then the (sec. 4;) Circuit Court is commanded, if bank- “ shall be found entitled to the benefits rupt act, to make a Oarland. certificate, a as in this discharge, grant provided decree of: n is allowed to this from the act.” No court decree of the appeal the creditor is Court: riot allowed an either appeal, Circuit Court, Court to or to the Court, the District Supreme n case. Nor is allowed an debtor from the decree any appeal Court, refusing Such is discharge. the unani- of my mous brethren now and with which present; opinion Lconcur. objected arid the District refuses it, debtor then may demand a trial matter jury, try oyer if the again: decides jury also, him then appeal the Circuit n thereelect to submit the time, matter third either to the court, toor another and this finding conclusive, whether jury; the court or a jury. is not therefore, to reach this possible, n n appeal, clear; case. This and my
brethren think it no clear, that equally adjourned can be here brought follows, division of opinion: court has revising power over the numerous and conflicting constructions the, held, law.- In some circuits it is that one'ih- debted in as a consequence of defalcation or officer; public executor,'or or while trustee; guardian, acting in administrator^ any. other can be from ail his fiduciary capacity,” discharged debts; other the less favoured creditors take all unless the government, ward, &c., to come property, proper see. in for .when' the claim will also extin- distribution fiduciary j circuits, other those indebted to amount guished. all ás excluded a class: fact fiduciary capacity appearing ort it is the face dismissed of course. Such is petition, óf construction act in the has circuit; eighth excluded from other eighth circuits, applying- great who numbers in circuits where would have been applied admitted *4 also has been question law is construed otherwise. brought the of at Kentucky, here division of' from by district as the the acting together of district circuit judges, instance adjourned, the into that having the Court; question the district judge. In occurred in the Nelson, the question case of William same court, law was whether unconstitutional
oid, stated, or otherwise. as already adjourned, .into .1843, p. Carland. there the judges-were district by.the judge; certified, this court for-its opinion, opposed in St. of- Louis; done at the instance of bar This was decision. having bankrupt' of Missouri pronounced judge district was never law; contemplated-by suéh insolvent mere acta void. The and therefore follow- Constitution, the framers entertaining his reasons for opinion: are some ing claims a under which Congress, petitionér act “Is this ?' debts, authorized the Constitution his In from discharge n several of this, will notice to determine necessary order its provisions. “ substance, whether a trader any person, It provides, indebted, cases, is few enumerated not, except may who or States, the District Court of the United file his petition .in he act, at time without the any plеase, benefit consent a decree of any or action obtain all his debts. This decree to be had the consent of creditors without even being required, or a dividend proceedings if do receive participate The decree is full and com-' property. deemed contracts, from all his engagements, píete under act, whether contracted before or proveable after the of the act. has he he passage it; if property, has surrenders none, it same as thing .regards discharge. ascertain, In examining this we should question, if possible, object what was the -the convention in view inserting would indicate provision. phraseology adopted part ‘ To establish laws on the subject uniform of bank- object: the United- It was States.’ throughout аpprehended, ruptcies would uniform, not be had the least, unless. n power addition to are told this,.we them so. Mr. to make No. that‘the (Fed. Madison uniform 42) establishing n laws so connected bankruptcy, regulation intimately commerce, and will so frauds where the prevent many parties states, lie or be removed into-different their.property of it seems not into expediency likely question.’ drawn To have a would that would be uniform frauds, &c., seems to been the objpet. proposition
Nelson Carland. to the committee detail, referred of which Mr. was Rutledge (cid:127) chairman, reported and now stands Constitution. were the what ascertaining mischiefs to be remedied or the objects to effected, convention, be doubtless, to looked the condition course to things, and of the institutions and laws of the various But a states. definition of that or any term, other legal ascertain nature extent of the powers they were about words or grant, by particular phrases, would they look hardly to the laws states. There was less far intercourse in those than at There were days present. steamboats, railroads, or Macadamized roads. (cid:127) The laws of several states could not have been generally different; known members conventioafrom the states; even the best could not have been lawyers acquainted with the laws states in which did not they practise. are not They so, even day. they had been with the acquainted laws states, of all the to which would have referred they in preference definitions, or the rest, for and extent of meaning legal all well it was ? convention knew making terms Constitution terms fdr the .whole Union; use they might understood, and must be known interpreted explained were, every therefore, state. They exceedingly exact in the use words and every word of phrases: legal import, every and considered; weighed and phrase only phrase'was féw referred' to frequently committee, words was done in as. case, and examined and on. were reported They frequently terms; to use were obliged legal making law; this was a laws: what was to bé done legal term — and, all, confusion ? above uncertainty mark exactly with the extent legal precision powers about to- that- neither more nor less grant, granted than ? was desired England;
“Our ancestors had removed United States had been colonies lately English part then7 British laws, of jurisprudence The English emрire. state in the substantially every Union. adopted Every legal subjects, conversant with at all every lawyer person thé English with course, was laws. know acquainted Carland, «. It is so state. to this ¿Very extensive day. equally', ledge which all were acquainted, and to a law Here,-then, *6 be mistake, There if reference refer. could' could all which And to it of terms.- did ac they meaning to for the was made lawyer so to this Ask day. We do mean refer. cordingly he look for an answer ? Tó term, and does where legal of a ing York, or Georgia Pennsyl of the statutes Massachusetts —New In most instances he Certainly not. would vania, or Virginia? look in-vain. bankruptcies to made Mr. regard “The proposition' in. - Carolina, South we now find
Charles Pinkney, words tó detail, referred the Constitution. committee- of was. Carolina, of South Mr. of Mr. Rutledge consisting Randolph Massachusetts, Mr." óf Mr. Gorham Con- Ellsworth Virginia, Pennsylvania; and Mr. Wilson necticut, they reported which- it referred. Now, the words of these several in. like, a never any states had law. which then thing To n refer, to refer, they or could ascertain the they meaning did were ? he they employing terms if extent lawyer, term, to with the will Rlackstqne’s familiar refer Commenta- not to Law where he will or an find ries, English Dictionary, readily states, it. If he referred statutes different states, as definitions .as there-were many get supposing they off the subject. declared, 1774, “The first Congress, Continental among ‘that were things, respective other entitled to colonies such-qf the statutes English benefit of existed the time of as. had, and which to colonization, their found experience, ¿nd to their sevеral local other be. applicable circumstances.’ Phila. 28, ed. Congress, 1 Journal of 1800. states had in a adopted, “Many English body, the. such as statutes, were local excepting kingdom* only their situation. applicable Court of United States, Winn, «. Supreme Patterson statutes, Peters, that ‘the English say, passed 5 ancestors, of our and in' emigration our situation, applicable amendment of the the common law part constituted a the country.’ “. We coa- know, matter of that the history, members
Nelson v. Carland. in debate, who took were part vention acquainted intimately laws. The committee English above mentioned pos- sevéral of the most in America, lawyers sessed and who eminent held stations. legal Reference was highest often made laws English, them to meaning terms or phrases , Thus, when it was to definé using; proposed States, the United
limit treason Mr. Randolph Mr. Ellsworth; Mr. Madison, committee,) Mr. (two Mason, and Morris, all Gouvernehr referred the act Mr. of Parliament of convention, at last, 3d and 25th Edward adopted precise act. Madison of that Papers, when phraseology Again, ‘ ex under consideration, post the phrase Dicker- Mr. facto’ (cid:127) that, son stated Blackstone’s examining Commentaries, he. related criminal cases found Mad. only. Pn.p. 1450. term Court has since And confirmed the Supreme signification Hamilton, terms to definition Blackstone. Mr. given by who *7 convention, the was a member of the in of speaking ‘Habeas. Constitution, to, in refers and quotes, Corpus’ provision the. Fed. No. 84. Blackstone’s Commentaries.
This, established, we a general bеing may go principle step fact, the that, in of show convention had the further, point view, determining statutes nature extent English to of were granting Congress, when the thepower they was clause under consideration. ‘that bankruptcies
“Mr. observed were, Sherman in some death laws of cases with by England, and he punishable did which that by choose a grant power, be done fnight here.’ not ’ nn 3' It thus 1481. ihe appears, Mad. law Pap. of Eng- - to in land were the laws referred regard definition and na- conferring. ture viere of powers remarked, also be that Blackstone’s Commentaries members, hands were in the of referred- frequently to. a book a definition of a bankrupt, summary contained laws on English What then subject. was the English' to which convention referred when they adopted ? The regard bankrupts English clause system, when the been in .sat, had for operation several generations; convention a substance, a proceeding creditor a and'provided,'in by trader; .who was'a effects.. -debtor, bankrupt’s distribution Garland. to be obtained his among equally aof ma- given the consent debts, obtaining upon debtor from his creditors. jority as are all creditors, for benefit
“It was proceeding one; was but debts, which this with the collection laws for .of debtor, so who, frequently towards liberality misfortunes him debts, unable to trade, pay allowing became attending thereto obtaining those consent upon his creditors. a' Even for of a given majority provision Blackstone, was the benefit we are told intended for discharge, industry, to act economy, debtors influenced make a their without full surrender of honesty, property, not creditors. which could obtain consent of hope their “The whole founded on system-was principle, trader, who. owed debts in various parts country, with his instead of fraudulently making way pay- property, his debts.with have that it, should taken ing away property placed officers, hands of trustees or other with which debts should be and each his creditors, absent- paid, whether have his present, fair dividend.
“We told by Madison, Mr. has, who inaptly, been called the Father of the Constitution, uniform ‘would so bankruptcy frauds, when many the parties, or their or, lie property, removed into different states, that seems not expediency to. be likely .it drawn in question.’ Fed. No. 42. This reason adoption clause in regard bankrupts published Mr. Madison after the Constitu- tiоn proposed by convention, but before it was adopted the states;.was intended to explain grant *8 and Congress, induce the to states accept Constitution; to and no doubt had its effect. The frauds whom-*—the of. removal whose are property, here spoken of? the frauds Certainly debtor —the property of debtor. “ We have another almost contemporaneous exposition of (cid:127)grant to Congress. It-is áct ‘To establish a uniform system of bankruptcy throughout United States.’ It is altogether, and material its principle features, like the á English system; creditors proceeding against debtors who are traders; distribution of effects bankrupt’s
Yol. I.—35
N'eison Carland. among equally bankrupt his on the obtained of a debts, given consent' his majority of cre- ditors. now,I think,shown
“I have system intеnded and to establish Constitution, the framers of which, power was a for the to -benefit of Congress, given their to enable collect just them to frauds their debtors who remove property themselves into . different states. “ I will act we are now show that the is considering solely debtors, and to for the benefit of entirely them- to avoid enable to the whole debts; intent, their and therefore opposed spirit, and I law. For this will object here further purpose notice some its provisions. “ his time to commence The debtor selects own proceedings— his squandered he have and when entirely property, when may not even necessary It is he be found. should can nothing suit, with a or ever or asked sued, have threatened the debt.. the state and county to select where hе
“2. He is allowed will can he change For his purpose re- commence proceedings. think most he any place may or business favourable. sidence detect his likely frauds. where go nobody can thus to. He idleness, all his riotous “3.- have He'may spent property stocks, or speculations: wild debauchery, gambling, living, his discharge, he entitled to him; and equally it not affect w-ili industrious, and economical person. prudent, most cent’s, one creditors not surrender worth does If he “4. him, reserved to amount property he property, also $300, use; -apparel, wearing for his own held, some, to include has been jewelry. of his family, which creditors object of his discharge, “5. majority privilege him an additional give demanding will only —that the court. Or he may the cause away jury, taking tried, is allowed days ten before the' cause even appeal, to creditors. given No such privileges in. appeal matter, the cause or"decides disposes 6. After then have re- can discharge, refuses the him, decided tried and already ferred to a.jury, although *9 1843. Carland. been, which, case, heretofore, any has never allowed in either in is allowed no such privilege. dr The creditor equity. law “ cases, is the act to allow -In such nd made provision by a trial by creditors jury. giveti to the
“8. An is is appeal debtor —none allowed by act a'creditor. fo the cause is
“9. When removed into the appellate a trial can demand either by debtor or a trial the court. jury has no such creditor privilege. “10. The debtor take the chance decision in his if in his court; favour, favour it will be conclusive. If him, court decides then he against demand jury, him, another chance. he against decides can have another- chance the' if appeal. appellate court, decision, the court is likely, thinks previous against thinks, him, he can take chance of a If he is jury. jury him, he can with the take chance court. likely hit, of these chances do there no If some is uncertainty ‘ choice; has no decision against the law.’ The creditor him any allowed to be final final, in his favour is scarcely any or conclusive. of 1800 gave
“11. The law and the act English because creditors, alone assignee appointment act. privilege given were interested. No-such is to where county “12. The commissioner be appointed livеs. the bankrupt frauds.
“13. There punishrnent the debtor is to all his conclude, get “14. To. to debts debts, applies without- the creditor. consent act, contracted of which creditors passage at the time credit. could have had no idea they gave I not whether it construe thi° May inquire, here is fair for the benefit of and to intended power, grant enable so authorize the them to collect their passage just of" debtors, and to enable them to avoid for the benefit solely .law ? their debts the Constitution, “Again: clause had introduced into impairing obliga- the states from passing any prohibiting because," as was said members tion of contracts, v. Carland. -Nelson *10 immoral, first convention, contrary principles jus- was by any that exercised ought legislative tice, power the.'Constitutiоn, have ratified and sub- states Would the body. n themselves, reasons, for such if such"a prohibition to' mitted could; at its Congress pleasure, understood under laws, of all contracts?” abrogation authorize colour decrees were entered, to the opinión, dismissing Pursuant Missouri; for final the district of discharges in cases presented first hundred'more, in that will be. depending twelve some have, are reversed which en- the-.decrees dismissed, unless the circuit due to the at thought, judge, county was tered. n concerned, that this important question to the parties large, decision court; of this therefore speedy meet should here. brought was ever Congress has in it to a de- passed, greater No law of various confusion, elements construction and than the the' gree, when administered more óf than bankrupt-law .thirty if all acting separately; exempt revising from the judges, tribunal, created for the (amongst purpose others) power of decision and construction in all cases uniformity of producing extends. its jurisdiction which over intended, the 6th section of the I think Congress bankrupt' judge 3 the district adjourn to gii questions 1. For the purpose obtaining into the.aid and, circuit To make judge; assistance 2. up divi- so that on great questions, decision of sion of the Su- be had. contemplated by. This Con- preme it was intended case ; should gress , although revising power, have every court district in tlie law might States the differently .be United construed: and the. could have exceeded the hardly wildest prediction So reality. “a uniform being bankruptcy/’ its- far admi- become, the various and it has nistration, conflicting construc- uniform little more than the it, different and tions put upon con- laws. This result could not have state insolvent flicting escaped too law; it was who passed prominently those manifest to be I-cannot, overlooked; therefore,bring my mind belief that this court intended revising power to be cut off. And, and convenient as the most mode o. revision expeditions' was by Nelson, v. Garland. I think intended that division of opinion, was sent mode. Notwithstanding this court, below the election
the case of the- district court; might progress so the act of and then the recited creditor provides;' debtor would redress a equal opportunities perverted con- But, as struction. the matter now stands, is with remedy either to ihis Congress, give or to jurisdiction, it. withhold
order: came on to be cause hеard on the transcript of the record the Circuit Court of the from; United States for district of and on the. Kentucky, points questions on which the judges said Court were opposed and which opinion, this court its certified'to opinion, argued *11 On consideration whereof, counsel. it now here ordered and court, this that this cause adjudged be and the same is hereby dismissed, the for want jurisdiction, and that this cause be and same is remanded- to the the said hereby for such to be had therein as to law and justice may proceedings appertain. press, While this in following volume was we the opinion received delivered- Judge district, judicial Catron his which we being.of general insert interest. In the matter Edward Klein. .of (cid:127) bank-, appeal Missouri, the District an Court of in a case of appellant, the ruptcy, voluntary petition the to be discharged on from his debts, according property, Congress on the stirrender his to' the act- of being respects regular, 1841. The proceeding petitioner all moved for motibn, discharge: grant his the District Court refused to such “because it Congress act of which Klein considered under said asked to be discharged debts, as-being against States; all the Constitution from his United of.the and power grant discharge.” therefore the court had no such ground judgment The of., upon is called I revise. setting any length opinion am relieved forth judge, -from o'f the district done, already because in an this has been delivered me in the Su- term, its preme the United States at last when an attempt Court of was made to-haye bring that court it present purl decided-for poses this case. Constitution, By power vested uniform establish .with “to. (cid:127) subject throughout The bankruptcies on the United States.” laws. prin- extent judge district that the is limited to was opinion, founded; system ciple English'bankrupt on was and-to that which the. " n 2 A Carland. referred, adopted recited, when it the clause the convention above for’its defini- system provided, proceeding by a That tion. creditor a debtor who trader; bankrupt’s'efiects creditors; equally was a distribution of a among his from his contracts upon obtaining and debtor the consent of majority given of his creditors. That it proceeding was a for the benefit ’ creditors; system being the whole founded on principle that a trader country, parts debts in owed various fraudulently making who was property, paying it, his his instead away with .of debts with have away placed officers, taken in the hands of property trustees or other with creditors, paid; his debts should and each of his present which whether n dividend; absent, 1800, fair and that bankrupt law of his is a fair ex- provision. of the constitutional position law, one, by Briefly: bankrupt That a was which honest creditors could force debtors, traders, to surrender property,- who were all their pay fraudulent just solely : law and-entirely but made rateably all their debts for the be- election, debtors, them at their and which enabled own avoid their nefit intent, debts,- spirit, object opposed bankrupt to the whole of a law. grounds my judge’s thus much of the on which I' state brother decree was printed opinion, argued because case has not been founded on creditors; appeared whom part of the no counsel in this nor did there below, unques- as I accuracy, industry, court am informed. have, doubt, judge, ability brought I do not district forward the tioned exist, tenor, judgment gave. support reasons best English laws, such as when spirit, of our Federal true him, adopted, given; agree I he has that the act of Constitution election, permitted it so far as the debtor at own sole to come into- contracts, abrogation an coerce extinction of his of his ' leading wili of principles violation of the contrary to English contemplated Our proceeding laws were founded. a‘ which against-his provided the debtor debtor was insolvent: by a qlone originate proceeding; the creditor could English and mattered otherwise; not, if he did the the defendant was insolvent or whether fraudulent laws, act, English him a fraudulent trader. Then made —a *12 debtor; only bankrupt; be a him as and trader” could with With a fraudulent creditors, deal; this at the of could courts and election the creditors—the his debtor, iron) having discharge no for distribution election to .ask or for Congress, restrictions, power it these the on carries with conferred debts. Klein, discharge applicant to the be- properly refused District Court then the in his But other of-Congress unconstitutional case. was and the act cause gene- it power: the .construction of the controlling enter into considerations unlimited, over-tjie authority Congress entire to gives and the unrestricted ral had-it; as the states subject, sovereign and as.the Great Britain Parliament of adopted.. go the To when Constitution was had it the time this Union before of thg of-bankruptcies! subject the on power was of what the no further: states involuntarily could, did, the debtor to come and constantly permit and They debts; property discharge the was from his property, and ask a surrender his petitioner the an- generally among and the debts of the distributed 279 v. Garland. prohibit passing laws; states nulled. Nor does Constitution from such York, Louisiana, others,-now Pennsylvania, and them in New full opera- substance, Pennsylvania of are in great tion. The laws and insolvent to a ex- detail, 1841; Congress act of tent in similar to the no doubt furnished incorporated the ideas some of that were into act.' Pennsylvania That doubted, laws, power pass to these no one ever so far as she was not restricted by held, Supreme the Constitution of the United The States. in the case Saunders, 213, Ogden v. 12 Wheat. power states retained the law, operate could exercise it and that would the law to the con- creditor; they being tract between debtor particular inhabitants state the date if the proceeding, at contract had been made there after passing parties subject law, law. case the contracted such and it Boyle Turner, Peters, into the entered contract. The case Zacharie and v. settled the power; contested and that it remained with the general depend states to this limited extent.' But the restrictions on principles which, law, Constitution; that, parts especially international and other of the passing obligations prqhibits any impairing states from law оf con- tracts; leading subject, will be seen reference to the case on the Sturges Crowninshield, 122.' might Wheat. states What the do before the adoption Constitution, ascertained, they may of the well be from now what do in "virtue They may respective powers. their frame a law in form questioned knowledge see proper; my this has so far as never extends. question, Supreme Court turned on the whether the controversies Congress (there being opposed Constitution inhibited states no acts of it) to ; or, legislating subject bankruptcies power whether the on the ex- from Congress. clusive in In the state debtor comes involuntarily, tribunals One forces the his debt or be barred. not á trader prove apply: creditor to (or any portion is the of them) necessary neither consеnt of creditors to Sb he authorize contracts debtor. have no annul, divide, many discharge, from which he seeks debts to property belonged discharged. powers clearly These which he is state them; and this Congress governments, .was invested done limitation. without ground, confidently pass can District Court relied on contracts; of the Constitution violating and that the clause conferred laws, English bankrupt authority, power Which the no such because-the restricted, only contract to at supposed permitted the be annulled the elec- value; and number and therefore parts tion of four creditors in five assump- argument proceeds annulled it a new contract. of, had, the election tion, only proceeding be bankruptcy can act; joint Iheir step, is every material and that for the benefit of only will present For neces- tyhich submit. compelled the debtor is ,to given reason, Congress, say, why sary prominent that one States, a uniform people, as one people to secure to the of the United contracts; obligation discharged from which a debtor engagements: that the previous acquisitions exempted from and his future frámers creditor, the mind of the into rights equally entered of debtor *13 SUPREME COURT.. . v. Carland. great object deprive-the The- the dangerous'power was to states of Constitution. provisions debts. New in the Constitution have-had more bi to abolish 'eficial this; states, consequences kindred inhibition on the they than impairing obligation of contracts. pass no law ; largely, producing The inhabitants of-states must be creditоrs the inhabit- debtors; consumers, be those that are will laws of the ants of latter ; producers -they having creditors states,might power ruin the no interest or states, consuming being and it government interest of the latter the, non-residents, remedy'would grossest .no exist to annul debts for the op pressure No laws of relief be more effectual in pression. by' would times foreign likely adopted. adopted nor If one state more such "a same, measure, for others to do the on plau it would a fair occasion furnish self-defence; be pretext policy, sible others would a similar bad forced.into land, by overspread entire an discredit and ruin 'extinction of until would morals, debts; public private, consequent prostration of on and a all occurred, a certain extent and was subject of contracts.' This evil had to fresh the-Constitution; again no doubt would in the minds framers states, provisions standing under of the' for the occur in some but consideration way, abrogating private contracts of non-residents. in the throughout the passed. if it must uniform- But United. - States; represented, equally and have people then the entire are .to legislation, by repeal, if hasty it's found themselves mistaken protect practice. oppressive - less by Congress thesubjectof bankruptcies, is of much con- Legislation on They pass no sequence,' prohibition than its can -law- part of the-states. non-resident, person; affecting jurisdiction of his can because no exists state, subject not made made because it was inipair no contract out'of power, law. The as it stands' restricted the decision in insolvent state Saunders, harmless;' Ogden v. almost those whom the state law can n most affect,-have may repeal the popular legislature, in the state dnd vote ' law; existence, foreigner has-little* he cannot be interest its as affected it, .deprived property.- furth'er'than that the Another debtor dangerous why Congress power,-was with the con- was vested reason sovereignty among discharge in one jurisdiction the states. A flicts of . contracts,-is recognised by the laws of not as in-another nations comity; assignee sovereignty,- grounds an save on the British under laws, country.as the debts
.bankrupt recognised is not in this owner of creditor, may disregard.ii attaching an or the bankrupt;-and government title Cranch, Sterry, 5. 298. The by .-the'foreign assignee. tip státes set Harrison w;ould other, likely to respect be little extend foreign are to each in' which, others;. great confusion comity .the from. each 'of to. follow, and much ill will. me, give a pretended I defini- considering word, ; (but purposely attempt mere (cid:127)-bas-k- define) to' avoided tion áupTCY, part employed plural, of an ex- -and .Constitution to the word in subject The ideas attached of-bankruptcies.”- pression';“ connection, subject, ; of exten- complicated numerous form *14 In re Castleman. complicated legislation; subject, Congress general juris- sive and of this has ; jurisdiction diction and the true is—To what limits is that inquiry restrictedl'. hold, distributed, Í pro- extends it to all cases where be causes
perty among Its.greatest, of the debtor his creditorsthis is its least limit. legislation, the debtor from his contracts. And all intermediate form, affecting the,great tending subject substance and but further end of the Congress. competency -—distribution and discretion —are classes, traders; law,"letting policy With of a in all others-as-well as permitting bankrupt voluntarily, discharged be come arid without concern; belongs have no consent of his the courts to the law- makers. law, bankrupt every I spoken I of átate laws. deem state law, fact, tribunal, pro- substance and causes to be distributed perty such,'if among especially of a and'it debtor it causes contracts, discharged the'debtor to.be prescribed by within limits Ogden v. Saunders. Such a law be denominated an insolvent thc.case law; subject bankruptcies, deals directly still it and is .a law, Constitution; Congress in the sense of the pаss and if a similar law, suspend it would state while the-act continued force. of.1841; constitutional, ordered, deeming This court the act it is reversed, dismissing of the District the proceeding pe- decree be and the titioner, Klein, from, discharged be and receive his-certificate. The Rhodes; same Christopher order is directed in the case on dismissed also grounds by constitutional the District Court. petitioner bankruptcy. Castleman, W.
Charles case is similar to (This Nelson.) that.of.
ORDER. heard on on to be of .the transcript cause came record Ken- United district of the Circuit Court of the States which the on tucky, questions judges points the said Circuit -Court were which- were opposed opinion, argued certified to this court for its and was opinion, by counsel. On is now whereof, consideration here ordered adjudged by this the same is hereby this cause remanded tq the had therein proceedings said for such as to law and justice appertain.
Yol. I. — 36