the year 1879, as also from his previous reports, the continuous increase in "liquidations by arrangement" and "compositions with creditors," as distinguished from bankruptcies proper, during the last ten years, that is to say, since the passing of the Bankruptcy Act of 1869. Among many other details connected with the working of that Act which merit grave consideration, the Report discloses the fact that, whereas the Bankruptcies have decreased from 1,351 in 1869 to 1,156 in 1879, the Liquidations and Compositions have increased in the same period from 3,651 to 11,976; with total liabilities, in the two latter classes, amounting, for the year 1879 alone, to the enormous sum of £25,379,472. The Report further states that in 1879, 93 per cent. of all insolvent estates were administered under the Act of 1869, so as to escape those provisions of the Act which refer to the Examination of the Debtor and of the Trustee's accounts, charges, and conduct. The annual charges of insolvencies upon the commercial community is estimated in excess of twenty millions sterling; and the abovementioned facts indicate the urgent necessity which exists for a change in the system producing such results. Your Memorialists observe that the Select Committee upon the Bankruptcy Bills, in their Report, dated August 2nd, 1880, recognise, and, to some extent, provide against abuses in the administration of insolvent estates; but your Memorialists are strongly of opinion that under no system, whether of Bankruptcy, Liquidation, Composition, or otherwise, should a Debtor obtain his discharge without an opportunity being afforded to the Creditors (subject to the control of the Court), to examine the Debtor under oath concerning his affairs and conduct, as provided under the existing Scotch Act, sections 87 to 97. They are further strongly of opinion, that under no system should a debtor obtain his discharge except by an order of the Court, to be granted, qualified, or withheld in its discretion according to circumstances. Your Memorialists refrain from indicating at the present time other important details, such as an effective audit of trustees' accounts, their securities, remuneration, and competency, or the question of valuation of security held by creditors. They respectfully submit that, in the measure which they trust the Government will prepare for the ensuing Session of Parliament to amend the Bankruptcy Laws, the two points briefly alluded to, namely, the Examination on Oath of the Debtor and his affairs, and the Discharge of the Debtor by the Court alone, may find their duc place among other reforms. And your Memorialists will ever pray, &c., &c., &c. 26th November, 1880. LIST OF SIGNATURES TO THE FOREGOING MEMORIAL. PRIVATE BANKS. 1. Barclay, Bevan, Tritton and Co. 2. Barnetts, Hoares and Co. 6 Brown, Janson and Co. 8. Cocks, Biddulph and Co. 9. Coutts and Co. 10. Dimsdale, Fowler, Barnard and Co. 11. Drummond and Co. 12. Fuller, Banbury and Co. 13. Glyn, Mills, Currie and Co. 14. Goslings and Sharpe 15. Herries, Farquhar and Co. 16. Hill and Sons 17. Charles Hoare and Co. 18. Charles Hopkinson and Co. 19. Lacy, Son and Hartland 20. Martin and Co. 21. Praeds and Co. 22. Prescott and Co. 23. Ransom, Bouverie and Co. 24. Robarts, Lubbock and Co. 25. Samuel Scott and Co. 26. Smith, Payne and Co. 27. Richard Twining and Co. 28. Williams, Deacon and Co. JOINT STOCK BANKS. 1. Alliance Bank, Limited 2. Bank of Scotland 3. British Linen Co., Limited 4. Capital and Counties Bank, Limited 5. Central Bank of London, Limited 6. City Bank, Limited 7. Clydesdale Banking Co. 8. Consolidated Bank, Limited 9. Imperial Bank, Limited 10. London and County Banking Co., Limited 11. London Joint Stock Bank 12. London and Provincial Bank, Limited 13. London and South-Western Bank, Limited 9. Bank of Montreal 10. Bank of New South Wales 14. Chartered Bank of India, 18. Commercial Banking Co. of Sidney 19. Delhi and London Bank, Limited 20. English, Scottish and Australian Chartered Bank 9. Heath and Co. 10. Fredk. Huth and Co. 11. Mildred, Goyeneche and Co. 12. J. S. Morgan and Co. 13. Morton, Rose and Co. 14. J. Henry Schröder and Co. 15. Stern Bros. HOUSES. 7. Hohler and Co. 8. National Discount Limited Co., 9. Reeves, Whitburn and Co. 10. United Discount Corporation, Limited FOREIGN BANKS. 21. Hong Kong and Shanghai Banking Corporation 22. Imperial Ottoman Bank 23. London Chartered Bank of Australia 24. London and Hanseatic Bank, Limited 25. London and River Plate Bank, Limited 26. London and San Francisco Bank, Limited 27. Samuel Montagu and Co. 28. National Bank of Australasia 29. National Bank of India, LETTER FROM MR. GLADSTONE IN REPLY TO THE FOREGOING MEMORIAL. 10, DOWNING STREET, WHITEHALL, SIR, 30th November, 1880. Mr. Gladstone has had before him the memorial in favour of Bankruptcy Law Amendment, which has been prepared by the Institute of Bankers and which has received the signatures of all the London bankers, of several leading mercantile firms and discount houses, and of the foreign and colonial banks having offices in London, and I am directed to acquaint you, for the information of the Memorialists, that the question of Bankruptcy Reform is under the careful consideration of Her Majesty's Government, who have already given directions for the preparation of a measure. Should the Council of the Institute of Bankers desire to send Mr. Gladstone any further expression of their views on the subject at this stage, he will place it in the hands of the Lord Chancellor, to whom in the meantime he forwards your letter of the 26th inst., and its inclosure. The Secretary, I am, Sir, Your obedient servant, E. W. HAMILTON. The Institute of Bankers. LETTER ADDRESSED TO THE PRIME MINISTER BY THE PRESIDENT OF THE ASSOCIATION OF ENGLISH COUNTRY BANKERS ON THE SUBJECT OF BANKRUPTCY REFORM. OLD BANK, LEEDS, 29th November, 1880. TO THE RIGHT HONOURABLE W. E. GLADSTONE, SIR, As President of the Country Bankers' Association I am requested by the committee respectfully to urge upon Her Maiesty's Government the necessity for an immediate reform of the law of Bankruptcy. The Committee has given the subject very careful consideration, and has consulted the various private and joint stock banks, both in the great mercantile centres and in the agricultural districts. As a result of this consideration and consultation, the committee has been authorised to bring to the special attention of Her Majesty's Government four points, which it is the general desire of the country bankers to have dealt with in future legislation. These are: 1. That the Trustees in existing liquidations, as well as all such trustees in future, shall be compelled to pay all money collected by them to a separate banking account. 2. That there shall be a proper audit of Trustees' accounts in liquidations, as well as in bankruptcies proper. 3. That the discharge of the Debtor shall in all cases be subject to the ultimate decision of the Court, and that the discharge shall not be granted, or shall be granted only with such qualifications as the Court shall prescribe, in cases where less than 108. in the £ is paid, unless the Debtor makes it clear: (a.) That he has kept proper books of account. (b.) That there has been no reckless trading. (c.) That there has been no extravagant private expenditure. 4.-That the Trustees of estates which have not paid 10s. in the £ shall publish their accounts in local newspapers. A list of the banks supporting these recommendations accompanies this letter. It includes a very large majority of the most important of the joint stock as well as private banks. - There are other points to which the attention of the committee has been called by many banks. Among these may be mentioned :1.-The desirability of commencing all proceedings under the Bankruptcy Law, by a uniform procedure, viz., by a bankruptcy petition. 2.-The undesirability of reintroducing composition deeds. 4. The desirability of assimilating the law with regard to the 5. 6. The existing abuses of the system of proxies. The more stringent punishment of fraudulent or reckless trading. I am requested respectfully to ask whether it will be convenient to you to receive a deputation from the Committee upon the subject; now |