Page:Federal Reporter, 1st Series, Volume 5.djvu/720

 708 FBDEBAL REPORTEE. �"begistkb's ÛEBTIKIOATE. �"To recapitulate, the discharge of the bankrupt depends on the answers to the following questions : �"First. If the estate of the bankrupt equals 30 per cent, in value of the debts provided for in section 5H2a, Eev. St. tit. 'Bankruptcy,' before reduoed by costs and expanses of the proceedings, is that a compliance with said section ? �"Answer. I think it will not be seriously denied that this question is settled in the affirmative by a decided weight of authority. 10 Bump, 737, and cases there cited. �"Second. Does the day of adjudication as the time to which interest is to be calculated apply to debts secured, as well as to those unsecured? �"Answer. I find much difficulty in arriving at a satisfactory conclusion on this question. Not only are the decisions eon- flicting, but aside from them there are good reasons both in support and in opposition. If, in advance of bankruptcy, or even suspeeted insolvency, a creditor secures himself, as he has an undisputed right to do, for a present passing consid- eration, and the debtor subsequently goes or is forced into bankruptcy, it would seem a great hardship that he should be deprived of the fruits of his prudence by refusing him inter- est on his debt during the time required to realize on his se- curity. Should the security be inadequate to the payment of debt and interest to date of adjudication, it would be imma- terial ; but when, for unavoidable cause, there had been con- siderable delay in the disposition of his security, and it realized sufficient to pay principal and interest to date of settlement, the refusai to allow interest would seem to violate a vested right. �"But section 5037provideB that 'ail debts due and payable from the bankrupt at the time of commencement of proceed- ings in bankruptcy, and ail debts then existing but not pay- able till a future day, a rebate of interest being made when no interest is payable by the terms of the contract, may be proved against the estate of the bankrupt.' �"The lines italicised indicate the commencement of pro- ����