^'iu

.0^>. ^r% ^.vV

IMAGE EVALUATION
TEST TARGET (MT-3)

1.0

JffliM 12.5

I.I

^ 1^

2.0

11.25

1.8

lA. 11.6

i^.

<$>

/}.

'"e^

v^ ,^1

%_.'^'''

'^//

Photographic

Sciences

Corporation

'-^

23 WEST MAIN STREET

WEBSTER, NY. 1 4580

(716) 872-4503

^'^
^

CIHM/ICMH

Microfiche

Series.

CIHM/ICMH
Collection de
microfiches.

Canadian Institute for Historical Microreproductions / Institut Canadian de microreproductions historiques

1981

Technical and Bibliographic Notes/Notes techniques et bibliographiques

The Institute has attempted to obtain the best
original copy available for filming. Features of this
copy which m..y be bibliographically unique,
which may alter any of the images in the
reproduction, or which may significantly change
whe usual method of filming, are checked below.

n
□
□
□
□

□

Coloured covers/
Couverture de couleur

Covers damaged/
Couverture endommagee

Covers restored and/or laminated/
Couverture restaur^e et/ou pellicul6e

Cover title missing/

Le titre de couverture manque

Coloured maps/

Cartes g^ographiques en couleur

Coloured ink (i.e. other than blue or black)/
Encre de couleur (i.e. autre que bleue ou noire)

Co'oured p[ates and/or illustrations/
Planches et/ou illustrations en couleur

Bound with other material/
Relie avec d'autres documents

Tight binding may cause shadows or distortion
along interior margin/

La reliure serree peut causer de I'ombre ou ae la
distort-on le long de la marge int^rieure

Blank leaves added during restoration may
appear within the text. Whenever possible, these
have been omitted from filming/
II se peut que certaines pages blanches ajoutdes
lors d'une restauration apparaissent dans le texte,
mais, lursque cela 6tait possible, ces pages ^I'ont
pas et§ film4es.

Additional comments:/
Commentaires suppl<imentaires;

L'Institut a microfilmd le meilleur exemplaire
qu'il lui a 6t6 possible de se procurer. Les details
de cet exemplaire qui sont peut-6tre uniques du
point de vue bibliographique, qu> peuvent modifier
une image reproduite, ou qui peuvent exiger une
modification dans la mdthode normale de filmage
sont indiqu6s ci-dessous.

I I Coloured pages/

□

Pages de couleur

Pages damaged/
Pages endommag^es

Pages restored and/oi

Pages restaui^es et/ou pellicuj^es

I I Pages damaged/

I I Pages restored and/or laminated/

~~71 Pages discoloured, stained or foxed/
yj Pages d6color6es, tachetdes ou piquees

□Pages detached/
Pages d^tach^es

Showthrough/
Transparence

I I Quality of print varies/

Quality in^gale de I'impression

Includes supplementary material/
Comprend du materiel supplementaire

Only edition available/
Seule Edition di;<pon;ble

Pages wholly or partially obscured by errata
slips, tissues, etc., have been refilmed to
ensure the best possible image/
Les pages totalement ou partiellement
obscurcies par un feuillet d'errata, une pelure,
etc., ont 6t6 fiimSes d nouveau de fagon d
obtenir la meilleure image possible.

This item is filmed at the reduction ratio checked below/

Ce document est film^ au taux de reduction indiqu6 ci-dessous.

10X r:« 18X 22X

12X

16X

20X

26X

30X

24X

28X

32X

The copy filmed here has been reproduced thanks
to the generosity of:

National Library of Canada

L'exemplaire film6 fut rep'
g6n6rosit6 de:

)duit grSce d la

Bibtiothdque natlonate du Canada

The images appearing here are the best quality
possible considering the condition and legibility
of the original copy and in keeping with the
filming contract specifications. v-

Les Images suivantes ont 6t6 reproduites avec le
plus grand soin, compte tenu de la condition et
de la nettetd de l'exemplaire film6, et en
conformity avec les conditions du contrat de
filmage.

Original copies in printed paper covers are filmed
beginning with the front cover and ending on
the last page with a printed or illustrated impres-
sion, or the back cover when appropriate. All
other original copies are filmed beginning on the
first page with a printed or illustrated impres-
sion, and ending rn the last page with a printed
or illustrated im iression.

Les exemplaires originaux dont la couverture en
pspier est imprimde sont film^s en commenpant
par le premier plat et en terminant soit par la
dernidre page qui comporte une empreinte
d'impression ou d'illustration, soit par le second
plat, S'jion le cas. Tous les autres exemplaires
originaux sont filmds en commenpant par la
premidre page qui comporte une empreinte
d'impression ou d'illustration et en terminant par
la dernidre pacje qui comporte une telle
empreinte.

The last recorded frame on each microfiche
shall contain the symbol —^(meaning "CON-
TINUED "), or the symbol V (meaning "END"),
whichever applies.

Un des symboles suivar^s apparaitra sur la
dernidre image de chaque microfiche, selon le
cas: le symbole — ^ signifie "A SUIVRE", le
symbole V signifie "FIN".

Maps, plates, charts, etc., may be filmed at
different reduction ratios. Those too large to be
entirely included in one exposure are filmed
beginning in the upper left hand corner, left to
right and top to bottom, as many fra. les as
required, i'he following diagrams illustrate the
method:

Les cartes, planches, tableaux, etc., peuvent dtre
film6s d des taux de reduction diffdrents.
Lorsque le document est trop grand pour etre
reproduit en un seul clich6, ti est film^ d partir
de I'anple sup^rieur gauche, de gauche d droite,
et de haut en bas, en prenant le nombre
d'images n^cessaire. Les diagrammes suivants
iMustrent la m^thode.

(

xi^4^'

ADDRESS

Bankruptcy Legislation in Canada

DBLIVBRBD BBPORB

THE CANADIAN

HANOFAGTURERS' ASSOCIATION

Mr. D. E. THOMSON, Q.C.

29TH March, 1900

TORONTO
DUDLEY & BURNS, PRINTKRS

(900

— — — II 111 f I III miiig I ||||f««-»i^«»««»Mw

ADDRESS

Bankruptcy Legislation in Canada

DELIVERED BEFORE

THE CANADIAN

MANDFACTURERS' ASSOCIATION

P,Y

iMR. D. E. THOMSON, QC.

29TH March, 1900

TORONTO
DUDLEY & BURNS, PRINTERS

1900

mmmmmmmmmmmm-

a^ai&^.sifcfeiaagiia6MaMaawiBi^*

I't' IM

4-fe

tmiminmimmm

IV1,\1\I?UPTC\ Ll36lbLrlTIO\

(^1r^ T^L bankruptcy legislation is based on two principles ;

lj=X\ fii'st, that the property of an insolvent belongs of
Zi LA vitjht to his creditors, and ought to be fairly dis-
tributed among them ; and second, that the insolvent having
made a full surrender of his property, and having fultilled
the other conditions prescribed by the law, should be released
from future liability in respect of his debts. Both these
principles are innovations on the common law of England,
which left each creditor to take separate proceedings for
the recovery of his debt, and which made no provision for
either rateable distribution or compulsory discharge.

Since it is upon the law of England that the systems of
all our Provinces, except Quebec, are based, it may be well
before attempting to outline bankruptcy legislation in Can-
ada to glance at its history in the mother land. The first
English law on the subject was passed in the reign of Henry
VIIT, and was directed against debtors whether traders or
not, who sought fraudulently to evade the payment of their
debts, or as it was expressed in the Act " who craftily ob-
taining into their hands great substance of other men's goods,
do suddenly flee to parts unknown, or keep their houses, not
minding to pay or return to pay any of their creditors their
debts and duties, but at their own wills and pleasures, con-
sume the substance obtained by credit from other men for

t0m^^imKi^,)-iimif)e»i3l«i>^'s^^^^fm^i^

tlic'ir own pleasure and delicate Hvinu:, against all reason,
e(]uity, and good conscience." Irate creditors are sometimes
inclined to think that notwithstanding the improvements of
civilization, the genus here described is not yet quite extinct.
By a Statute passed in the reign of Elizabeth, the law of
])ankruptcy was restricted to traders, but bankrupts were
still in effect treated a.s criminols. Various alterations were
from time to time made in the law, but it was not until the
reign of Queen Anne that any provision was made for the
release of bankrupts from their debts upon surrendering
their property and conforming to the directions of the law.
All subseciuent legislation on the subiect continued to apply
to traders only until 18G1. The Act of that year, consolid-
atinty and amending the law, extended it to non-traders also.
This departure appears to have worked satisfactorily ; the
subsequent consolidations in 18G9 and 1883 following the
Act of 1861 in that respect. Apart from these consolidations,
the law has been amended from time to time, the more exten-
sive amendments being those of 1887 and 1890. Notwith-
standing the almost continuous patliamentary attention the
subject has received in England since 1861, there would ap-
pear to have been no serious suggestion for a return to the
former rule restricting the law to traders only.

Turning to the history of the subject in Canada, it will
be more convenient first to refer to the Province of Quebec.
In 1668 the Company of the One Hundred Associates aban-
doned to the King of France " the property and lordship of
New France." Thereupon was passed the " Ordinance of
1663 " conferring on the colony its first constitution. This
quaint piece of legislation, aftsr reciting the surrender of the
concessions granted in 1628, the necessity for the " establish-

turn

m"~t of justice " to secure the repose and happiness of the
inlidbitants of the colony, and the impossibility of effectually
administering the laws from so i^rtat a distance, concludes
that the King and his advisers " could not take a better reso-
lution, than that of establishing a well-regulated justice and
a grand council in the said country ; . . . . causing the
same form of justice, as far as possible, to be kept there as is
administered in our kini^dom." This Sovereign Council was
enjoined to judge all matters " according to the laws and ordi-
nances of our kingdom, and to proceed as far as possible in
the form and manner which is practised and maintained in
the seat of our Court of Parliament at Paris." Subsetjuent
ordinances faithfully followed this precedent, and the " cus-
tom of Paris '' became the foundation of French Canadian law.
This custom, based in its turn on the Roman Civil Law, had
always recognized that when a debtor had not wherewithal
to meet his obligations in full, what he had should be fairly
divided amongst those having claims upon him. It failed to
recognize however any right of the insolvent on full surrender
to a discharge from further liability.

But Quebec (then Lower Canada) takes first place on
this subject among the Provinces, not only by reason of the
greater liberality of its common law, but because it was the
first to cover the whole ground by statutory provision. After
the breaking out of the rebellion of 1837, the Imperial Par-
liament suspended the constitution of the colony, and vested
the government thereof in a Special Council appointed by the
Crown One of the early enactments of this Council w^as an
" Ordinance concerning bankrupts and the administration and
distribution of their estates and effects." This ordinance was
modelled on the English bankruptcy laws then in force, and

like them wji.s made Hp})licable to tradevH only. The law thus
promiilt^ated ensured not only rateable distril^ution, but tl'e
debtor's ri^jht, in the absence of t'laud, to a discharj-.e after
full .surrender of his estate ; as well as immunity from arrtist
for debt, and release therefrom if under arrest.

After the restoration of the constitution and the union of
the Provinces of Lower and Upper Canada, the ordinance
continued in force in the former Province until l'S48, when it
was displaced by a Statute, wiiich with considerable amend-
ment of details, extended ihe provisions of the ordinance to
both Provinces.

The subsequent development of le<,nslation on the sub-
ject, is intimately interwoven with the gradual miti^jation
and ultimate abolition of imprisonment for debt which the
growth of humane feeling had rendere.I necessary. It would
scarcely be profitable here to follow the intricacies of these
changes. Broadly speaking, it may be stated that the bank-
ruptcy law was in force in the two Pro^'inces from 1<S43 to
1849 ; and that the Provinces were without a i)ankruptcy lav^
from 1849 to 1864. In the latter year a new Statute was
passed. In the meantime the subject had received consider-
able attention in England and the policy of restricting the
law to traders, as we have already seen, had in 1861 been
abandoned. Apparently the representatives of Upper Canadf.
preferred to follow this new departure, while Lower Canada
held to the former practice. The Act was accordingly made
applicable in Lower Canada to traders only, in Upper Canada
to all classes.

The Act of 1864 was still in force at Confederation
(1867). By our Constitution (the British North America
Act) " Bankruptcy and Insolvency " is one of the suljects

emimerated as coming within the exchiHive authority of the
Parliament of Canada. This is entirely in harmony with the
scheme of federation adopted. Bankruptcy laws, whether appli-
cable to all classes, or to traders only, nuist always owe their
chief Importance to trade. That the subject of trade was
deer led by the framers of the constitution to be a national
lather than a provincial one, is sutticiently indicated by the
enumeration of the followincr other subjects as cominj-' within
the exclusive authority of the Parliament of Canada : — " The
Regulation of Trade and Commerce" ; " Navigation and Ship-
ping " ; " Currency and Coinage " : " Banking, Incorporation
of Banks, and the Issue of Paper Money " ; " Bills of Exchange
and Promissory Notes." Further, it will be noted that the
scheme was not like that of the American Republic, a union
of States with the presumption on doubtful points in favor of
state rights ; but a fusion of Provinces, based on the reverse
presumption of predominating central authority.

The Dominion Piirliament took early cognizance of the
jurisdiction thus conferred. The year following Confedera-
tion (1868) the House of Commons appointed a Select Com-
mittee to inquire into and report upon the insolvency laws in
force in the several Provinces. In due time that Committee
reported. As to the Province of Quebec the report acknow-
ledges the principle of tlie common law, but reflects on the
efficiency of administration in the following language :—
" The risrht of the creditors of an insolvent to a just distribu-
tion of his assets among them all, has always been recognized
by the law of Lower Canada, although the means under the
common law of enforcing that right were cumbrous and ex-
pensive. The effects of the debtor could only be realized
under execution, and by this process only the minimum price
of the goods sold was obtained."

The foDovving extracts from the same report, may be
taken to fairly indicate the state of the law in Ne\/ Bruns-
wick and Nova Scotia, upon their admission to Confedera-
tion : —

" In New Brunswick there is no bankrupt or insolvent
" law whatever, nor are there any provisions of law under
" which the estate and efiects of a person unable to pay his
" debts, can be distributed among his creditors, otherwise
" than by the ordinary means of execution issued at the suit
" of those obtaining judgments ; nor under which the prefer-
"ences and liens to which executions give rise under the
" common law and statute law can be avoided or set aside, for
" the benefit of creditors generally.

" In Nova Scotia an Act is in force for the relief of in-
" solvent debtors, but its operation is limited. It is rather a
" remedial measure intended to supplement and mitigate the
"law of impiisonmenc for debt, than a complete system of
"insolvent or bankrupt law, having for its object the dis-
" covery and realization of the assets of an insolvent, and his
" dischaige from liability in consideration of the surrender of
" his property

" The Act .... seems to afford to any creditor
"effective means for compelling payment of the debt due
" him ; but its tendency must be to impede or entirely pre-
" vent the distribution of assets among creditors generally.
" And it atfords no means by which on any conditions what-
« ever a debtor once insolvent can be enabled to continue his
" business with any hope of ultimate success."

The following session (1869) a new insolvency law was
passed. The preamble recited that " it is expedient that the
A^cts respecting bankruptcy and insolvency in the several

I 5

Provinces of Ontario, Quebec, New Brunswick and Nova
Scotia be amended and consolidated and the law on those
subjects assimihited in the several Provinces of the Dominion."
That Act applied to traders only and continued in force until
1875, when a new measure was substituted, applicable " to
traders and to trading co-partnerships and to trading Compa-
. nies whether incorporated or not, except incorporated Banks,
Insurance, Railway and Telegraph Companies." This was
followed by an enumeration of employments deemed trades
within the meaning of the Act.

The Act of 1875, amended from time to time, continued
in force until 1880, when it was repealed. Since then we
have had no Dominion Law on the subject, except the Wind-
ing- Up Act which was passed in 1882 and which applies to
Banks, Insurance and Loan Companies, etc.

Since the repeal of the Act of 1875 several attempts
have been made to secure a general Dominion Law, but so far
without success. The one which received the greatest amount
of public attention was the Bill inf.-oduced in the Senate by
Sir John Thompson's Government in 1894. As introduced the
Bill was made applicable to non-traders as well as to traders.
This evoked considerable opposition, resulting in an amend-
ment limiting the measure to traders. The Bill passed the
Senate, but received only its first reading in the Commons,
and was withdrawn oa the promise that it would be reintro-
duced the next session. Before Parliament again met death
hiid deprived the country of the services of Sir John Thomp-
son ; and the Government of Sir Mackenzie Bowell which
succeeded, while reintroducing the measure, did not press it.

Failing the full exercise by the Dominion Parliament of
its jurisdiction on this subject, it has been left to the different

Provinces to provide such limited relief as their jurisdiction
permitted, and as public opinion called for. In Quebec the
old procedure has been revived, and from time to time
amended. In an indirect wa\' a debtor is compelled to make
an assignment for the general benefit of hi,5 creditors ; be-
cause while theoretically not bound to make an abandonment
when demanded, he may on refusal be arrested on a capias
and can obtain his release only by making the abandonment.
Even if he should refuse, and remr.in in prison, rateable dis-
tribution may still be enforced by making what is called an
opposition alleging the debtor to be insolvent. Hence in
Quebec the right of creditors to rateable distribution of the
proceeds of an insolvent's effects may be said to be thoroughly
established. The method however is still cumbersome and
expensive. A good commentary on such method, is the lan-
guage of Montreal correspondeuts recently asked for some
explanation of the apparently interminable delays in securing
payment of moneys realizpd by a sheriff'. These delays they
say " are the result of the fearfuUj^- wonderful system of pro-
cedure which we have inherited from the French founders of
this Province." Moreover there is under that complicated
system, no means whereby a debtor may obtain release from
liability, except with the concurrence of each individual
creditor.

In Ontario rateable distribution has been secured in
another way. The debtor may assign for the general benefit
of creditors. If he refuses to do so, tliere is a qualified rate-
able distribution under what is known as the Creditors'
Relief Act ; whereby the former right of execution creditors
to receive payment in the order in which their executions
iiave been placed in the hand.i of the sheriff, has been abol-

Tshed, and oh a levy being made an opportunity is given to
other creditors, having overdue claims, to come in and share
rateably.

The Province of Manitoba early followed Ontario's lead
in legislating with reference to voluntary assignments, and
against preferences, such legislation dating back to 1886, and
while the Provincial Legislature has not abolished the right
of priority among execution creditors, its law of attachment
for the general benefit of creditors is more comprehensive
than that of Ontario ; and applies not only to absconding
debtors, but to debtors transferring property to defraud their
creditors, and some other cases not necessary to specify here.
In New Brunswick since the repeal of the Act of 1875,
the law, except in the case of Companies covered by the
Winding-Up Act, has remained as described in the report of
the Parliamentary Committee of 1868, until 1895, when the
Local Iiegislature passed an Act similar to the Ontario law
relating to voluntary assignments and the avoidance of pre-
ferences. There is however no right of attachment for the
general benefit of creditors, except in the case of absconding
debtors ; and there is r o legislation similar to the Ontario
Creditors' Relief Act. Consequently when a debtor does not
choose to make a general assignment, creditors are left to
their common law remedies, and their claims are paid in the
order in which their executions reach the sheriff's hands.

In Nova Scotia Jie former order of things continued
until 1898, when the Legislature passed a law governing
voluntary assignments, a.\d for the avoidance of preferences.
There is in that Province no right of attachment, except in
case of absconding debtors, and even this remedy does not
there inure to the general benefit, creditors being paid in the

mmmmmm

msmmmmmmmmm

order of their attachments. Execution creditors are also paid
in the order of their priority.

In the same year (1S98) Prince Edward Island passed a
similar Act, for regulating assignments and preventing pre-
ferences ; but priority of executions still obtains.

In British Columbia the English common law system
prevailed until 1897, when by two separate Acts the Legis-
lature regulated the rights of parties under assignments tor
the benefit of creditors, and legislated against fraudulent
preferences along the lines of the Ontario law. In the ab-
sence 0^' an assignment however, executions are paid in the
order of their priority.

In considering whether we ought to have a Dominion
bankruptcy law, it must be borne in mind that some legal
machinery is necessary, for dealing with the property, if not
with the persons of insolvents. The question is, whether
such machinery shall be provided by and be under the con-
trol of the Dominion Parliament, in which the constitution
has vested the jurisdiction ; or shall be provided by, and be
under the control of Provincial Legislatures, which the con-
stitution debars from any direct jurisdiction over the suV)ject.
Shall we have a. uniform law for the whole Dominion, enacted
by competent authority ; or shall we have different laws in
each Province, enacted by an authority which is hampered by
limitations and doubts ?

Since 1880 the Dominion Parliament, though clothed
with plenary power, has in effect abdicated its authority,
leaving the rights of the parties concerned to be wrought out
under the diverse and necessarily defective laws of each Pro-
vince. The result is confusion ; injurious to our credit abroad,

oppressive to unfortunates at home, and out of harmony
with our awakening national life.

We have spent millions, and are spending millions more,
in improving our means of transportation by land and water,
to the end that our trade between the Provinces, and with the
outside world may be increased. We then leave the law on a
subject vitally affecting such trade, in a state of incomplete-
ness and confusion, which tends to defeat the purpose for
which we have sacrificed so much.

We shall be told that our neighbors to the south have
been many years without a national bankruptcy law. Yes
but though their difficulties in framing and administering
such a measure exceed our own, by reason of the relative
weakness of the federal bond ; and though their several states
have ampler powers in this behalf than have our Provinces,
Congress has at length realized the national character of this
subject, and has yielded to the imperative need for uniformity
of ricrht and of administration throughout the Union.

But what sort of a law should we have ? Should it pro-
vide for discharge of debtors, as well as for administration of
assets ? Has the rigor of our law in this respect since 1880
been in the aggregate a national gain, or a national loss?
Some among us still believe that no debtor should be dis-
charged from any debt without his creditors' consent. Their
arguments are singularly like those by which imprisonment
for debt used to be defended.

The preamble to one of our own Statutes on that subject
passed fifty years ago, is in the following language:— "Where-
as imprisonment for debt, where fraud is not imputable to
the debtor, is not only demoralizing in its tendency, but is as

detrimental to the true interests cf creditors, as it is incon-
sistent with that forbearance, and humane regard for the
misfortunes of others, which should always characterize the
legislation of every Christian country ; and whereas it is
desirable, to soften the rigor of the laws affecting the rela-
tions between debtor and creditor, as far as due regard for
the interests of commerce will permit," etc. Suppose the
opening words of that preamble altered, so as to make it
apply to refusal of discharge to a debtor whom the law sum-
marily strips of all his property, is the sentiment more
lenient than the humane feelings of this generation should
endorse ?

It is often said that if we are to have a bankruptcy law
it should, while securing absolute efficiency, reduce expense
to a minimum. Here as elsewhere we get in the long run
just what we pay for ; and when the final balance is struck,
the best is the cheapest. Simplicity and directness should
ever be the aim, but after all the gun is not more important
than the man behind the gun. The best law ever framed is
useless, unless it is administered by intelligence and skill
and these qualities are never cheap.

It is however a question whether the time has not come
when the public should bear a larger proportion than hith-
erto, of the expense of providing adequate machinery for the
administration of such a law. It is too much to ask creditors
smarting under a sense of present loss, to be specially solicit-
ous for that broad public interest which should be a prime
consideration, in dealing, for instance, with the question of
discharge. Still more unreasonable is it to expect that they
should back up their solicitude by further diminishing their
dividends to protect that public interest. It should rest with

the public rather than with the creditors of a particular
estate, to secure such a firm administration of the law as will
not subject to unfair competition, rival traders who are pay-
ing and desire to continue payingj 100 cents on the dollar.
What is a public duty should be discharged on the authority,
and at the expense of the public.

Sometimes we are told that what we need is a simple
Act of a few clauses. That reminds one of a simple Hoe
printing press, made of a few bars of steel. A bankruptcy
law from its very nature, deals with abnormal conditions. It
must provide means for adjustments, intinite in number and
variety ; hence it must always be one of the most intricate
pieces of legislation that any parliament can be called upon
to consider. Its framing re<]uires the highest degree of skill,
and the highest degree of knowledge of the subject, just as
surely as does the designing of the most intricate piece of
machinery known to the modern manufacturer. That con-
sideration should however no more deter the nation, than it
deters the manufacturer who scours the earth for talent to
improve his facilities.

Taking for a moment a broader survey, what do we see ?
Before our eyes, with a rapidity never before dreamed of,
improved facilities of communication and transport are draw-
ing the whole world close together. The world's commerce is
the prize for which not only great manufacturers, but nations
now strive. A world's public opinion, too, destined yet to
wield a mightier power than armies and navies, is fast crys-
tallizing. International law is slowly emerging from chaos ;
and will never again contract its sphere. Inevitably it must
keep pace with the ever widening scope of international com-
merce.

imiii—

WMMMi'VWsltiMainKae »ni«»>^>-i-. u».tu. ■•» :

Our hearts beat high to-day in sympathy with Enghind's
military achievements ; hut after all, England's dominant
instincts are not martial. It is essentially in the two realms
of commerca, and law, that she has led the world for centu-
ries, and leads it still. As mistress of the seas ; as pioneer
manufacturer ; as the tirst of trading nations ; all yield her
the palm. But her supremacy as the world's law maker, is
to-day more uncjuestionable, than is her place in the commer-
cial world. Wherevei- civilization extends, her example and
experience in constitutional government, in nearly all blanches
of jurisprudence, and especially in the interpretation and ia
the impartial administration of law, are the common fountain
of inspiration for all lands.

With giant strides Canada has during recent years, been
taking her place as a daughter worthy to share in the destiny
of this prolific mother of nations. Has not the time come
when we should take a leaf from the rich book of Ensflaud's
experience (m tho subject of bankruptcy legislation — a sub-
ject confessedly vital to modern national and international
relations ?