INDEBTEDNESS. 
233 
to the recovery of such sums as the borrower can reasonably repay in a 
limited period of time. Probably there is no method which is entirely 
secure against evasion on the part of the lender or misuse on the part 
of the borrower. But we would repeat that these possibilities are not 
in themselves a sufficient argument against the adoption of a law that 
will be generally beneficial, and it is certain that until some method 
can be applied, the State will fail to satisfy one of the pressing needs 
of labour. Of the scheme which appears to us to offer the greatest 
hope of successful working, little more than an outline is possible here. 
We recognise the intricacy of the subject, but if the will to apply the 
remedy is present, the legal and administrative difficulties can be sur- 
mounted. 
Summary Liquidation Proceedings. 
‘We recommend a new procedure for the liquidation of unsecured 
debts due from workmen. We contemplate that on the presentation 
of an application by a workman giving a statement of his debts and 
creditors and assets, the court should issue a notice to the creditors 
and should thereafter in a summary enquiry estimate the workman’s 
assets, his probable earnings and reasonable expenditure for the main- 
tenance of himself and his family during the ensuing two years. 
The court, having assessed these, would issue a decree based on the 
difference between the two sums. Execution of this decree could then 
be obtained in the usual way, but it should not be possible to keep the 
decree alive for more than three years in all. In order to prevent the 
defrauding of money-lenders by the subsequent contraction of collusive 
debts, we suggest that the debts should rank preferentially in order 
of their age, the oldest debts having priority. The application for the 
benefit of the special Act embodying the procedure might be made either 
In response to a suit for debt or without any previous proceedings. We 
should like to see the duty laid on the court of applying the special Act 
of its own motion in cases where it appeared to be applicable, but we 
recognise the difficulty of securing that such a provision will be effective ; 
and there is no doubt that persons will be forthcoming to assist the work- 
Wan in claiming his privileges. What is essential is that the procedure 
should be rapid and as free as possible from the intricacies and technical- 
lies of ordinary civil court procedure. 
A New Law. 
Co The procedure suggested bears some resemblance to proceedings 
In insolvency courts, but we are anxious that, if a law is passed, it 
should be a new Act with a new procedure and as far as possible unrelated 
to Insolvency Acts. Insolvency has somewhat unfortunate associations, 
and it is necessary to seek an entirely new avenue of approach. In 
Insolvency proceedings there is an inevitable tendency on the part 
of the court to regard itself as charged primarily with the duty of 
assisting the creditors and of checking fraud on the part of petitioners. 
In the case of loans which are obviously beyond the capacity of the 
labourer to repay it is not unfair to regard the creditor as the person