at
the time of their passage.[1099] It may also empower courts of
bankruptcy to entertain petitions by taxing agencies or
instrumentalities for a composition of their indebtedness where the
State has consented to the proceeding and the federal court is not
authorized to interfere with the fiscal or governmental affairs of the
petitioner.[1100] Also bankruptcy legislation must be uniform, but the
uniformity required is geographic, not personal. Congress may recognize
the laws of the States relating to dower, exemption, the validity of
mortgages, priorities of payment and similar matters, even though such
recognition leads to different results from State to State.[1101]

THE POWER NOT EXCLUSIVE

Prior to 1898 Congress exercised the power to establish "uniform laws on
the subject of bankruptcies" only very intermittently. The first
national bankruptcy law was not enacted until 1800 to be repealed in
1803; the second was passed in 1841 and repealed two years later; the
third was enacted in 1867 and repealed in 1878.[1102] Thus during the
first 89 years under the Constitution a national bankruptcy law was in
existence only sixteen years altogether. Consequently the most important
problems of interpretation which arose during that period concerned the
effect of this clause on State law. The Supreme Court ruled at an early
date that in the absence of Congressional action the States may enact
insolvency laws since it is not the mere existence of the power but
rather its exercise which is incompatible with the exercise of the same
power by the States.[1103] Later cases were to settle further that the
enactment of a national bankruptcy law does not invalidate State laws in
conflict therewith but serves only to relegate them to a state of
suspended animation with the result that upon repeal of the national
statute they again come into operation without reenactment.[1104]

CONSTITUTIONAL STATUS OF STATE INSOLVENCY LAWS

A State is, of course, without power to enforce any law governing
bankruptcies which impairs the obligation of contracts,[1105] extends to
persons or property outside its jurisdiction,[1106] or conflicts with
the national bankruptcy laws.[1107] Giving effect to the policy of the
federal statute, the Supreme Court has held that a State statute
regulating the distribution of property of an insolvent was suspended by
that law,[1108] and that a State court was without power to proceed with
pending foreclosure pr