TABLE showing the Operation of the BANKRUPTCY SYSTEM.

THE object in constructing the following Table has been to exhibit, in a compendious form, the operation of the present system in Bankruptcy, so far as regards the period of distribution-the comparative amount of assets collected and divided, and the actual amount of expenditure reduced under its several heads, with a view to the easier suggestion of means both of greater expedition and further reduction of expenditure, wherever it may be found practicable, and at the same time of meeting and answering such objections as may be founded in ignorance or error.

A single division of the Court has been taken as an average specimen, being that in which the constructor of the table himself presides, and is consequently enabled to vouch for the general accuracy of the statement.

The period selected is the first three years after the institution of the Court, together with an additional term of six months, so as to include the working of those fiats which were adjudicated during the last six months of the first-named period: thus it appears, that of the total number of 266 fiats adjudicated in this division of the Court between January 1832 and January 1835, there were 152 in which dividends had been declared previous to the month of July 1835; and if upon comparison with a like number of successive commissions worked during any period under the old system, it shall be found (as is believed to be the case) that the proportion of the last-mentioned commissions, in which dividends were declared, is considerably smaller than that which the present table exhibits, the inference will, to that extent, be in favour of the present over the former system.

The next point of comparison will be as to the average length of time between the adjudication and the declaration of the first dividend, and (again) between the adjudication and the declaration of the final dividend in those cases where more than a single dividend has been declared: this is obviously a point of the greatest importance as it regards the working of the system, and as such will be freely admitted by all who have had the smallest experience in commercial matters: here it is also that the present table will be found to exhibit the most marked superiority in the new system over that which it has superseded, both as regards the duration of the respective periods and the very great reduction in the number of dividend meetings, which it was previously as much the interest of practitioners to multiply as it is now that of the official assignees to reduce within the narrowest compass: at present it may be safely pronounced both that the great majority of estates are fully distributed at a single meeting, and that whenever two or more have been found necessary, by far the largest portion of the funds has been distributed at the first. It will also be observed, that the average time of declaring the first dividend is now very nearly as early as the shortest time which the law allows, viz. four months from the date of adjudication: and it may be added, that in a great number of cases-those more particularly of the smaller classes of tradesmen, where the greatest amount of distress is frequently occasioned to those descriptions of creditors who are least able to bear the evils of procrastination-the period might with perfect safety be yet materially shortened, so as to reduce the months to weeks, if the legislature should think fit to invest the commissioner with a discretionary power so to direct.

A third criterion may be formed by taking indiscriminately an equal number of commissions worked under the former system to that of fiats now exhibited, and comparing the average amount of assets-first, as stated in the balance sheets of the bankrupts; secondly, as collected; and thirdly, as ultimately distributed; in all which respects, to whatever extent the proportion of the second amount to the first, or of the last to the two former, shall be found (under the present system) to exceed that which it was under the old system, so much is to be placed to the

credit of the superior diligence and activity of the official assignee over those by whom the affairs of bankrupts were formerly conducted, and (generally) of the amended economy of the entire system. A lesser but not unimportant point of comparison will be as to the number and amount of debts collected in proportion to the total assets, which (again) if it shall be found greatly to exceed the average number and amount of those which were recovered under the former system, must be set down to the same account as the preceding; and this is more especially observable in the case of small debts—the number of these falling short of £10 being to be set down almost wholly to the credit of the new system-the like description of debts, under the old, having been generally disregarded as scarce worth the trouble or answerable to the expense attending the collection, and being consequently almost a dead loss to the estate.

The amount of expenditure has, as already observed, been classed under the several ordinary heads, for the purpose of facilitating the object of further reduction in such instances where it may be supposed to be practicable, and the average amount of per centage under each head has been calculated with a view to the prevention and correction of mis-statements.

Lastly, the principal object in classing the several estates according to the amount of property distributed, has been to show the proportion which the weight of expenditure, in its several items, bears to the amount of property in estates of different degrees of magnitude- —as to which many points may suggest themselves as fit for the consideration of the legislature, whenever the subject shall be again laid fully before it.

Explanation as to the several Heads of Expenditure.

1st. Solicitor.-This head contains the amount of the several solicitors' bills, and it may be more generally stated under the term "Law Expenses;" but in comparing the amount with that of the solicitors' bills in commissions under the former system, it should be remembered that those bills included some items of expenditure now abolished or transferred to other heads of expenditure; as for example, the fees paid to the commissioners (for which the regulated fees of Court are now substituted), and the charges attending the collection of assets and payment of dividends, which, together with others, are now provided for under the head of remuneration to the official assignee; but independently of these alterations of the practice in bankruptcy, it is believed that a very great diminution will be found in the average amount of this head of expenditure, arising principally from the greater despatch of proceedings, and the prevention of fruitless litigation.

2d. Messenger.-A considerable reduction will be found under this head of expenditure, owing to the new arrangements consequent on the establishment of the present Court of Bankruptcy: the chief items in the messenger's bills are those connected with keeping possession.

3d. Official Assignee.-This is the amount of per centage allowed to the official assignee, according to a general scale of remuneration as regulated by the commissioners. It should be observed, that this per centage covers the whole of the charges allowed to accountants under the former system: which in the larger estates were often enormous.

4th. Sale. This head includes, besides the auctioneer's charges, such heads of incidental expenses attending the sale of property as do not fall within either of the preceding heads.

5th, Fees, &c.-This head includes the fees of Court as regulated by act of parliament, together with the petty expenses of stationery and postages not comprised in either of the foregoing heads.

N. B. The difference between the gross amount of property collected and the amount of net proceeds, consists principally of the following articles, viz rent and taxes, servants' wages, and bankrupt's allowance for maintenance; which may be more fitly classed as outgoings than as forming distinct heads of expenditure.