410 Jones—Relation of Economic Crises to Legislation. 
The aims controlling legislation upon bankruptcy may be 
stated to be, as regards the creditor; a just, speedy, and eco¬ 
nomical distribution of the debtor’s property, as concerning the 
debtor; either to restore him as far as possible to an independ¬ 
ent position, or to administer punishment for neglect and fraud 
as the facts may indicate. * 1 Sometimes one of these aims, some¬ 
times another, has been the dominating one expressed by leg¬ 
islation. If a state of insolvency be merely considered as due to 
misfortune, the most fair and economic method of clearing the 
score for another chance in business is what is principally de¬ 
sired. If, on the other hand, it be looked upon as the result of 
negligence or dishonesty, a fair trial and suitable punishment 
should be provided. 2 Undoubtedly there is room for both of 
these elements in the correct conception, and the problem is in 
assigning them their relative importance. On the one hand 
injustice and hardship in individual cases is to be reduced to 
the smallest possible minimum, but on the other hand, the im¬ 
mense indirect social influence of legislation is ever to be kept 
in mind. 3 In general, the law will reflect the popular estimate 
of the bankrupt, obtaining among any people. 4 
with him; and where the laws are bad or powerless, not even the wealth¬ 
iest man can predicate his own solvency for any length of time in ad¬ 
vance. One of the most important conditions of credit is the certainty 
that, if the debtor’s good will to meet his obligations should fail, it 
shall be supplied by the compulsory process of the courts.” Roscher, 
“Prin. of Political Economy,” (Lalor’s trans.), vol. I., § 91, pp. 274-275. 
See the whole of this section, also § 92. 
1 Judge M. D. Chalmers, Art., “Bankruptcy Law and Administration;” 
Palgrave, “Dictionary of Political Economy,” vol. I., p. 116; Couder, 
“ Dictionnaire de Droit Commerciale,” Paris, 1877-81, Tome IV, Sec. I. 
2 Mr. Robbins, Report to New York Chamber of Commerce on the 
Bankruptcy Bill, Feb., 1882. 
3 “Any law will prove a disappointment”—that does not recognize 
that these proceedings are a trial of the merchant — “ because the dis¬ 
couragement of insolvency is much more important than any econom¬ 
ical or speedy settlement of insolvent obligations.” “Nation,” Feb. 
9,1882, vol. 34, p. 115. 
4 In France bankruptcy is considered a disgrace, and French law 
makes considerable provision for the reinstatement of the innocent 
bankrupts. Bankruptcy is an offense which may be punished by im- 
