Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1822-01-03
FROM r;tE SArIoNAL GAZETTE
BANK OF THE UNITED STATES.

p,Ny fR9M r'tE HAIioNAL GAzErTE.l
BANK OF The UNITED STATES.
OPINION OF COUNSEL
/ ne letters submitted Ia us Ivy the Bank orthe u
States present inr consideration the following pons
Ia tie practice Oi the hank
!. The taking interest ar discount in advance
= Charging inlcres, tursxiylour days upon sixty
DAYS no;c.
s. Adopting the basis al all calculations of into
ret mouth of - .lals aud coiSdcrin. fractions of
t'me rs aliq'lot pnr:S oi such month: And whether
Ivy reason OF either or all of these prc,ceS the bank
my he exposed, To the penalties of usury
In all these points believe the practice of the
Dhnk oi the United States To be com!ornIhlc to the
amos, un'erSh nS.iSr OF blhksin this country the
lu;e Bank of the 4. States me t,l,4 This * of IL
SCH no lnconsiicrdic argument the consent of
the whole community, borrowers rs well AS lenders
anus expressed iur great length OF time must ever
ne deemed very high evidence 81 tho Il ue coisruc-
ION ot u. law upon pnni of such universal, con
NcFmnen Ani II - cNU''i.c wlrll ought not IL,
tie lightly or hastily disl ccarle IL i.men: Ircnuse
dcc'Sc" against II ly the ju':icniy (Which must
always act ic.:uspccve!y and upon existing c;,ses(
All produce ihinc confusion u, Injustice liz yisl
'iiS upon what at most is but Il common error all
tue consequences o ciimiI'I siulIioI nI the laws
.tnr can there bc any good for thus deciine
The piac.e he Nrons, the Legislature can correct
Il and aS this corrective ca, hc applied To the lil
t"re, and not 10 the past, il viii conform To the die
ttcS OF Justice IN prescribing The rule of conduct he
ioTe requires o,rcncc. II will be &C post Ec-
a., rs a Judicial decision must necessarily he
but this argument derives great lditional force
II Il does not became altogether conclusive from The
,,ied nj and before the ,ri;>j,r of c act inror,o-
t''i"5 the Subscribers to the Bank fihc U. States
aud was .u y established and known H. therefore
Affords not ONLY the BEST bnt by the settled legal rules
o construction, the only exponent of the n,aninu of
tIe act, Tor words IN Statute are ALWAYS 10 III nm
3srstaod according To their received sense among
UioSa hv whom the, uSe;l-unputar words h,n9
allowed i!ier popular meaning, and technical words
FRer appropriate Technical: meaning. The uniform,
or'iSrciior t,cN adopted by borrowers and lenders
icsu'''n3 BinkS, iur g,ca length of tirr must l,,
tsipel 10 have hecm IN the view of Congress when
the Bank
u, the case in question. The words ,sc;l an the Acl
OF The 10th of April 1916, Incorporating the si,lsrri
hers to the Bank the United Sr.tcs) fur regulating
the rate OF interest be- taken NV the Bunk are ,o
pied eNacliy from the corresponding part of the c.,n,-
Ter of the late Bank of the u. States .rInlcd by ~.
act OF the 18th Feb. 1891
The latter says in The 10th article of the 7th sec
Scittor shall the slid corporation take more than
III TIE ia;c oil SIX per per annunl. for or uuon
as loans discounts The former la The oh arti
Gle ct The tn section says q Nor sl,l [the cor
porion) take more tian the rate of six ncr cent
per amnun, for upnu its loams or Discounts"
Vow II during the 20 wears of the existence of the
late Bunk OF the United States, uniform constrc-
hon was gwen TO these words, an tiat construction
was iIII ersny dcIuicsced in ii, during all that ne
rod IT received the tcit appreciation of the Legisl-
ture and the community, and the silent recognition
and sanction OF The ilicary and if al the tit.c of
passing The act of 1916, it was the established and
~ tr'ItI! The only known conslruction seems to Us,
most evidently To follow upon every inst Drinrioc n
Interpretations, tla M copying these same words info
Inc Vet OF 1910, the Legislature could not have
a.! ant 10 employ them III other sense Than tina,
which cy had thus previously and uncuiliyocally re-
crived. different rule would in Our opinion, he
di'reSp ectiu TO Congress, and emRcnty unjust IL
would make the law snare for The unwarv Il nd in
n0cont, who coniding III the rectiluce OF their own
inteniions and following the best lights they could
discern, would inj themselves Suddenly involved in
imputed crime AID actual punishmrnt-by Il iutIg-
mrnt elaborated by an extremely refined and nice pro-
cess OF reasoning, and contrary the almost umiver-
sally received sense of mankind IN would rive n
signal trigmph 10 dishonesty and would hart mach
law.
The view last taken renters auv particular enquiry
into the phraseology oGthc state laws aud their in
terproiation quite supcrluuus We have mo- donl,t
that they would come directly and Corcily in aid Of
he opinion already advanced. But though wricbr,
~ themselves, and suiCient perhaps, If other nrn,i-
nicns were wanting, To ste the question: their i'm.
pSrtiuce IS think almost lost 10 The owe rD,yero,
authority Of the words OF the Act OF 1916 when taxi
ca with ieiefcnce 10 the Act Ol 1891, and the pglc
tiCe HE19T IL.
H. taking fhi, general view, s.ron! and decisive as
we believe u 10 be-, we nut 10 be understood rs
admitting that 4hc prtccc 0d Construction hereto
tore reserved are !oHnlrt IN enOf, OF that either Of
tie paints stated is so ude:cnsiblc upon IL own me
F''s as 70 bc obliged TO take shelter under he pre-
t.'ilin, mage. o. the contrary, wc are of ,pniop
mat euci OF them - well su.tiipnhlr on Oriainrl
grounds, and we wll proceed bro fy 10 stue
She reIsOns 81 hat opinion.
D. a no t@nlay i1iclc-f or ;JscOu g. Iu advance
u IS ceittin tiit ia fls rOIc Oi dealing lie bnr-
TvwcV pa1 more tan per cent. per annuni, UPON
ihe money loaned. But we consider il 10 be cct t,,n
40, tai upon " i.~eouuts' (gi,ich are especially
5iht"Hd icy the Aci) tho interest * ALWAYS under
Ss9d ~ nc received a.lvancr or ds,luct"d from
~" amOuu Oancd-.ind then the o;r ,,ncsi,n H. ~
<g''d rate shall il BE- computed The set saws " al
-herste Of per cculum per anuinn upon what
aaouh IS ~ ritc 10 In calcul,rlS The Act s.,,s
u.Ji' iis lOa y aiiScOuu:s. The We arrive III
iaf": tLe qio' 0n, wnt'is understood fo hc The ~
niOaa Of tl.c " iOsB ordi,touat" IL Is sstrly Of
sfH no S"ei.c" t. The lane'riee, nnu wc hold 10
if r!ouiY ".tta ihC sptt and oienfion Of the Act
90 m@1 s:um Us te words loan discount wiia,
htac praeGcc ~ hawking i,. heretofore been nn.
irf-i"od trr e. 70 say, tl' whole amount lent ia
tiap'I he i1'rc pad back suffered ~ be retain
ed VS. a. '1Dt. Tic term II" ,ii, omit" indeed
"iach u ifci- iu.foduCed wiih serupu,oas caution
tnie oi 40 u.lier rSpDs.ti0u, AMI must he rejected
Co., sirpia ~" tta;V1goui, uaoss Il Doe 50 Under
sio0d,
iYhnGver ter-I4fe might be the ncce,slr, or rcA-
-D1t'l, gstcUc1on ppuH Ibis p3in of statute a
gairsi Ntlry, hold 70 10 be cicsr, that IN a bank
ciartf 80 Ibis ding of dj, ihe words here usctl do
giioiize thc b,uk rake interest ~ advance or by
Way 0iIfscouyt--tp cu 1iuic 10 urOn tie tm0.fit Of
che loaa..,a before rS'ldc'i and % compute * nj
ibe faF 81 nle seii pr "naani, lOr che time the
Josh iats $3.50.
Ste,se gtsa ias s@.A:e5 agiing osursia gngiart