Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1822-01-03

which severe a,id rs comprehensive in ihcir
eu'.c language maze them, AGAINST exec
y thin- having the comiexion o! USui!, and which
have h'e' eNpounded hy tie Judges wi,h mos,
faithful obedience ,eir spirit, shs matter o taking
The interest in advance Ivy bankers and others in dis
coun,in, has, has h,vn decided not 10 b. u>nrous
The eases refcrrcd;o in l,s, edition oi Chilly on
Bills (j;h Lontlun edit p. lot, 100
THIS practice Is therefore uUcxceptoni,ilc.
=. Charging siSty-ionr days interest upon siN'y
day noie-T.e pruprlciy OF ih.s practice depends
upon TIE length time during which the borrower hats
iic use a, command al i,,e money, or daring watch
L Is ~ hi> instance appropriated ny the Bank his
exclusive 60, which ever may be the longest. Ii
this for Il long,s pei io than sixiy-threc days. the
Bank nave right 10 charge for sisty-icur days,
coapuiin. .hr fraction as ii day.
la point OF fact, we understand, the borrower has
III" command III the money at AN cas.y kour On the
r>t day, aud he * Mt Obliged 10 payit until the l>,
momcu of the last day. In poin, OF face, too the
ncy is appropriated TO his eNolnsve USE, even at a,
earlier hour, TIA, is TO say, AT the FIRST meeting OF the
directors and he is permitted Ia receive il us soon
alter rs the necessary arrangements vi the Bank will
allow, which is always ON the same day. Thus lac
really has the u the money for sixty four DAYS
The late Bank of the Umited States, far time
after lis organizations, inlormed did not allow
iic money 10 he drawn out To he applied (eSccpi
10 The payment OF dues To the Bauk) nnt the follow
my morning, and ye they charged siAty-tour DAYS M
!esest. THIS was never objected To. IL could only
he vindicacd perhaps upon the ground Of appropria-
iion--and was finally gwen up.
We are not at all impressed 10y tho distinction suc-
Eestcd, between single transaction OF discount and
u renewal (aS it is tcimcd) succession of dis
counts asI which supposcs thit it MAY he law lul
ioI The bank tn charge siAt -four days interest upon
an original discount oi sixty DAYS note, but that il
would he usurous IN change siXtytour days in,eres,
upon note gwen to raise money To the same alnuunt
when the iuimcr Is falling due The ttllacy Oi the
distinction is in considering the notes. the
cessiou OF notes, as forming but one transaction
They are To every purpose distinct and Independents,
lhe borrower * not bound In apply the money bc.
tnt. nI il.,.u f.ti
net prohibited iroa diawing it out appll ing II 10
any other purpose. II he were, tn not see ilil
II would make any difference, for il would alter
the time ut lending the money; aud IL the borrower
he Obliged To make provision before te hom of pay
ment arrives, that is Inconvenience which lac
feels IN common with etety debtor who 70 he
pnnctna and eNnc'ly the same in relation both to
hhi and tiic Bank he had To pay note deposit
ell tor collection. In borrowing iioni the Bank, he
incif> as iIttlc at this Inconvenience rusSibc,-
ana less THAI IA any other mode of making proyi-
son.
j. We consider month OF dirty DAVIS ia = comyer-
iionai month, universally adopted Tor the calculation
ut iaterc>t + portions of time less Than year, uI-
less the contract eNrcssiy implicitly adopt the ka-
lcndar month"; or the fraction al year lac resoyable
ihio kalcnnI months. Thus, II Il note tc PAYABLE al
two months from the date with interest, and there
were no days OF grace, interest would he charged for
oac sixth ola year, kHcndar inoRis, that is
To say, an inirreS' ct per cent. Bat tue two
months NIGH. really bc icsS than the siNIi,
OF Il year II The note were given IN January or Feb
" WuusQ he lt>S-,f JUN, 4 wOulG he
These small matters tisrn9 trdc,i.
ihc three days ui grace wuui IN the same case be
computed rs the tenth OF month, the is4.yth beng
as we have said before, by convention >iecmcd 10
consist of thirty dayS
he days awdv; computed as parts oil 1 month,
nnd not OF i year. Absolute cXactncsS cannot in ei-
iaer WAY he attained. For the year ~ not Of Il Ger
tam number ol dhss, no more than The month.
when, there soi", note is payable at IA certain
number ot days eIher more less Ihan year. re-
terence Is had Tor The purpose of calculation the
conventional month of thirty days. fXcd upon 10y cons
glan consent, where absolute precision is unaiin;,-
hlc, as being nearly corTcvt itir average,
der To cstibii>. general rue such con-
vcnience requires. 10 this no objection.
Having thus expressed our opinion upon the parti-
GUAR points arising out Oi tie letters from Washing
ton, decm il right state that the transactions OF
the Bank of the l.. >. I've governed test
ell 10y tie laws ot the Sars aud hat the f;,nk is in
no manner subject the LAWS respecting Usury
II n Contract bctUrc ii comes TO the hands OF the
Bank. lie tainted sfth uSury and in consequence of
that tAint ii he void il vii! (ifthc law emacO
lie void after it comeS TO the bank. But il the
tract be originality VALID, nothing done by the bank,
can subject the operation 10 TIC influence o. the laws
y! the state
The Bunk is 10 he governed ,y the Acts of Com
2rcss, and we know oi ma provision them which
il'S any bearing On the subject, but that which
have already quoted from the Charter We;ire clear
~ of opinion that this clause (rcguatns ue rate of
INTEREST," could not he construed 10 have the effect OF
mvHdliIng contract previously good and binding,
as Tor instance I-iueSs But question might
M ise IN the Of accommodation paper, whether
having no legal validity before the ,,,nser, except
Tor the purpose of transfer, and deriving all its obi
CATION from the fact of It's being transferred iona fe,
tor a valuable consideration, that obligatory charac-
ter could hc impaired by transfer TO the Bank
III a manner not authorized hv the Charter?
IL the objection should Le, that the Bank had Ia
Ken more discount thaa the charler PERMITS we
saou!,i be carried back the questions heretofore
examined, and upon those questions hare already
expressed Il decided opinion.
We have only therefore 10 remark, IN conclusion,
that we see rca,on for recommending the bank
10 alter us practice any of the particulars above
mentioned JOHN SERGEANT,
IiOIt. BINNEY.
pb.laIo'nt;, NJ, IoOI