412 Jones—Relation of Economic Grises to Legislation. 
ment of fraud. 1 The principal hindrances to discharge are, in 
France, extravagance in personal or household expenses, specu¬ 
lations or losses upon the stock market, the adoption of ruinous 
methods to delay bankruptcy, or attempt to unduly favor any 
creditor. 2 In the United States, under the law of 1867, evidences 
of fraud, or fraudulent gifts or conveyances were a bar to dis¬ 
charge; also losses through gaming, and the failure to keep proper 
books. 3 In case an estate did not yield 30 per cent, the concur¬ 
rence of the majority of the creditors, both as to number and in 
value of claims, was to be secured 4 and in a second bankruptcy, 
no discharge was granted unless the estate yielded at least 70 
per cent. 5 Ten shillings m the pound must be divided among 
creditors in England to insure the immunity of the debtor, 
thus making the minimum 50 per cent, instead of 30 per cent, 
as formerly in this country. 6 
The immunities afforded by bankrupt law may, in some 
cases, be most successfully used by debtors, but particularly by 
heavy debtors, as a menace to their creditors. And the greater 
the amount of the debts the more the interests of the creditors 
unite them in hoping for any favorable turn to lessen deficit 
before a final settlement. Thus bankruptcy may be compared 
in its action to a crisis. Insolvency is indeed a crisis for one 
business, while a general crisis is the simultaneous occurrence of 
many insolvencies. Bankruptcy like a crisis may then be a 
healthy check and a restorative when applied at an early stage, 
but delayed, it becomes a dreaded cutting down to actual con¬ 
ditions, being made worse by delay and ill founded hopes. 
In addition to the classes of legislation that have already 
been mentioned there are many other provisions which exert 
the greatest influence upon the course of trade and exhibit how 
fundamental it is that the basis upon which free competition 
builds,—the bounds within which individual initiative may be 
! Bankruptcy law in England rests upon the enactment of 1883, as re¬ 
vised by the legislation of 1890. 
2 Morrill op. cit., p. 218. 
3 Sec 29, Rev. Stat., 5110. 
4 Sec 30, Rev. Stat., 5112. 
5 Sec 30, Rev. Stat., 5116 (Act of 1841, sec. 12). 
6 Chalmers op. cit., p. 118. 
