Why was uniform (Federal) bankruptcy power considered necessary?

Economics Economics Questions
1

  1. Why was it considered necessary?

  2. Does anyone know who proposed it, who supported it, and who argued against it at the Constitutional Convention?

  3. If the Constitution were amended to leave bankruptcy up to the states only and to repeal the Congressional Bankruptcy power, would that likely make businesses smaller and operate in only one state? Wouldn’t it be a good idea if we went to Free banking?

2

  1. Probably to keep interstate businesses from having to file multiple bankruptcies in multiple states. That is just a guess.

  2. No.

  3. Not necessarily, The states could agree together on which jurisdiction (Like the one incorporated in) handles the bankruptcy just like it does with crimes, other lawsuits, unfortunately marriages and divorces (Should not be handled at all by the legal system), borders and land titles, etc. So the bankruptcy possibility would be a factor in a business conducting activities in a certain state but not the only factor. Yes, but it would be a good idea anyway to let businesses decide on where to operate based upon how friendly the individual state is to the business instead of having a one size fits all system forced on the entire country.

3

Comity.