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284 duties. The title of the trustee relates back to the commencement of the bankruptcy. The creditors at any meeting have the right to give directions to the trustee as to the manner in which the property shall be administered by him. Property held by the bankrupt in trust, the tools of his trade if any, and the necessary wearing apparel and bedding of himself and his family—such tools, apparel, and bedding not exceeding in value £50—will not pass to the assignee; but property acquired by or devolving upon the bankrupt pending the proceedings will pass, and also the capacity to exercise or take proceedings to exercise all powers over property for his own benefit. If he is a trader, goods and chattels in his hands as reputed owner, with the permission of the true owner, will also pass to the trustee. Until the appointment of a trustee, and during any vacancy which may occur, the registrar of the court is the trustee. When the property has been realized the court declares the bankruptcy closed, and the bankrupt may apply for his discharge. This is only granted where the assets pay 10s. in the pound, or where the creditors shall have passed a resolution by a majority in number representing three fourths in value of the debts to the effect that a discharge should be granted. A discharge releases the bankrupt from all debts provable under the bankruptcy, except those which he incurred by means of any fraud or breach of trust, and those of which he obtained forbearance by means of fraud, and also those due to the crown or relating to the revenue; but of these last he may be discharged if the commissioners of the treasury consent thereto. If the bankrupt fails to obtain his discharge, a period of three years is given him during which, if he pays to his creditors such sum as, together with the dividends already received by them, make up 10s. in the pound, he is to obtain his discharge. In the mean time debts provable in bankruptcy are not to be enforced against his property; but if at the expiration of that time he has not thus obtained his discharge, debts provable under the bankruptcy stand as judgment debts against him, but without interest.—In the United States, power is conferred upon congress by the constitution to establish a uniform system of bankruptcy. When this power is exercised, it supersedes the state insolvent laws, which are in their nature similar to the bankrupt acts. It was first exercised by act of April 4, 1800, repealed Dec. 19, 1803; again by act of Aug. 19, 1841, repealed in 1843; again by act of March 2, 1867, now in force. This act embraces in its provisions any person residing within the jurisdiction of the United States owing debts to the amount of more than $300 provable under it. It contains what are called voluntary provisions, under which an insolvent debtor may himself be the petitioner for his discharge, and involuntary provisions, under which the creditors become petitioners when they believe an act of bankruptcy has

been committed. No debt created by the fraud or embezzlement of the bankrupt, or by his defalcation as a public officer, or while acting in any fiduciary capacity, is barred by a certificate of discharge issued under the act. Original jurisdiction of the proceedings is possessed by the United States district courts, but registers in bankruptcy are appointed, by whom the major part of the business is transacted. Contested issues are adjourned by the registers for hearing in court, and the debtor who disputes the allegations of the creditors against him may demand trial by jury. The acts of bankruptcy enumerated are as follows: 1, departing from the state, territory, or district of which the person is an inhabitant, with intent to defraud his creditors; 2, remaining absent with the like intent; 3, concealing himself to avoid the service of legal process for the recovery of any debt provable under the act; 4, concealing or removing property to avoid legal process; 5, making an assignment, gift, sale, conveyance, or transfer of his estate, property, rights, or credits, with intent to delay, hinder, or defraud creditors; 6, being under arrest for a period of seven days on an execution upon a debt provable under the act, for more than $100; 7, being actually imprisoned for more than seven days in a civil suit founded on contract, for $100 or upward; 8, making any payment, gift, grant, sale, conveyance, or transfer of money or other property, estate, rights, or credits, or giving any warrant to confess judgment, or procuring or suffering his property to be taken on legal process while bankrupt or insolvent, or in contemplation of bankruptcy or insolvency, with intent to give a preference to one or more of his creditors, or to persons liable for him as sureties or otherwise, or with intent by such disposition of his property to defeat or delay the operation of the act; 9, a banker, broker, merchant, trader, manufacturer, or miner, fraudulently stopping payment, or having stopped or suspended, and not resumed payment of his commercial paper within 14 days. In the distribution of the bankrupt's estate the following demands are preferred: 1, the cost of the proceedings; 2, all demands owing to the United States; 3, all demands owing to the state in which the proceedings are had; 4, wages due to any operative, clerk, or house servant, to an amount not exceeding $50 for labor performed within six months next preceding the first publication of the notice of proceedings in bankruptcy; 5, all other debts which by the laws of the United States are or may be entitled to priority, in like manner as if the act had not been passed. Other demands are paid ratably, except that specific liens are not disturbed or devested, unless where created in contemplation of bankruptcy or in fraud of the law. There are saved to the bankrupt his necessary household furniture and other articles designated by the assignee, not exceeding in value $500; the wearing apparel of himself and family; the uniform, arms, and