BILLS OF SALE.

Inangahua Times, Volume II, Issue II, 23 April 1880, Page 2

BILLS OF SALE.

» - We commend to our readers a perusal of the following article on the above sub* j-ct, which occupied the leading columns of the Dunedin Herald :— " Last week's Mercantile Gazette has, as usual, a long Hit of bills of sale, Home of which hare been executed under cir« cutnstances which are entitled to a little consideration. The system of granting bills of sale has assumed such dimensions, ! that at the first blush it seems difficult to ' realise how- business could be carried on without tfaent ; but experience shows that in many instances the signing of such a document is the introductory step to the Bankruptcy Court. On a debtor filing a declaration of insolvency, the first in* qoiry usually made by creditors is whether he has given a bill of sale, and, if so, to whom. Such a security is sometimes obtained either by a creditor who intends to gain, if possible, an advantage over bis debtor and thus over the other creditors, or in collusion with the debtor for the purpoie of defrauding the general body of the creditors. Of course we do not allude to those who take such a security for the payment of money advanced at the time it is given, as they are perfectly justified in making whatever stipulation they please as a condition of agreeing to lend the money. We allude more particularly to those who, knowing that a debtor is in difficulties, and that he is likely at no distant date to avail him* self of the Debtori and Creditors Act, at

the eleventh hour as it were endeavor to secure payment of an old debt, really at the expense of tbe debtor's character for honesty and fair dealing. That the evil exists and will continue unless checked, no one will readily deny. It is certainly a hard case for a dozen creditors whose debts were incurred under precisely i similar circumstances to find that one of | them has been arbitrarily selected by a thoughtless or designing bankrupt as the speaial object of his bounty, dhonld a bankrupt have this power, and, if to, under what conditions ought he to be at liberty to exercise it P After be becomes unable to meet his liabilities, indeed so long as be has any, to the extent of these j his property really belongs to those to whom be is indebted. We fail to understand, therefore, why he, whether upon the invitation of a friendly creditor or of his own good will, should have the power to wrong those who may desire to act fairly. The remedy for such an unsatisfactory state of things is in the bands of creditors and those who have thß misfor* tune— we were about to say the privilege —of sjtfcigg.jift jurymen. -IHhe latfer fcsolutsly setses fjeef j£tinst\llpre. ferences.to particular creditors, we fancy in a short time few would be found desirous of attempting to gain any undue advantage i but so long as juries shelter sharp or questionable transactions, snch as tbat to which we have alluded, a premium is held out to the perpetuation of a vicious system which is fraught with mischief and is attended almost .in* variably with injustice. It seems to us that a bill of sale which is given to secure payment of a pre-existing debt should be held absolutely bad if signed within three or four months of the time at which a debtor suspends payment. Were such a law in operation, all persons interested would have timely warning of a debtor's position, and if they did not get, or en* deavor to procure, payment of their debts within that time, they would have them* selves to blame for.tbe consequences/