The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1837-10-31

II is obvious TO every acquainted with the pria-
cipie Of the Supreme Court OF the United States in
the cases Of Sturges Crowninsheld and Ogden
Saunders, CA and IL Wheat Rep,) that those enact
mcns Of the called session unconstitutional and or
effect The prohibition, art, 10 sec. Of the Unl-
ted States Constitution leaves each of the States IN
the enjoyment. of unrestricted freedom to egslate
the subject OF all future and 10 assgno them
no obligation, such qualified obligation, NAV in
opinion, with sound policy and the good Of
the people but it forbds the legislative authority 10
reroact under any preext whatever upon the Obligation
of existing contracts whether the law (rcroactin2)
Processes apply to the ITSELF Of
the Judges, "or 10 fix rule OF evidence Of lntcpre
tation, TO regulate the remedy it is equally within
the true meaning Of The Constitution" The obligation
Of the contract only be discharged by compliance
with whatever the law existing when the contract
made, required in relation the validity, construction
and enforcement OF the contract and any law
the contract impas obligation and oyerrdes the
policy OF the prohibition referred TO- As Chief Justice
Marshall says !" The thing forbidden is retroacton.-
The application 10 the laws in question, easy and
the unconstlutonality Of each, is manifest.
But why were those parts OF these laws enacted l.
No reliance can be had for either, that arccnchant
or, necessity On the subject Of damages from the
barks, the holders Of notes perfectly quesccnt
and, on account Of the public good, likely to
man That part of the relief bill which cnacts
That the notes OF the several banks which have been
heretofore required TO be received IN payment Of taxes
and debts due TO the Commonwealth shall continue to
be received, sufficient, without the super-addi-
ton Of the stay law, TO induce ninety Of hundred
creditors receive in satisfaction and acqutance OF
executions, trust deeds, other demands, the notes
Of such banks The parts Of the laws referred to
as unnecessary they nexpedient, and nugatory
under the Constitution They are baleiul bemishes
the legislative annals Of the State.
3 But there is Of the important topics to which
referred in The onset which the patriot may look
with delight Here it is:
III further eudcyed That rnuch aft nroyi.
sons Of the act entitled An increasing the banking
capital OF the Commonwealth passed March 18th 1887,
relates to the Bank Of Virginia the Farmers Bank
Of Virginia and the Bank Of the Valley in Virginia. and
their several branches, be and the is hereby sus-
pended until the first day Of March, 1899
| The bank "act' OF the last regular session Of the
General Assembly having been thus suspended least
for the sake of mature consideration and trust for the
ultimate purpose OF deprvng the old banks of all OPP
portunty by accepting the provisions Of the same Of
securing an extension OF their charters till 1857, it will
be necessary for the next Assembly, prosecuting this
purpose to declare by appropriate action, that the Farm
ers Bank and the Bank Of the Valley in Virginia have
no longer Of right the power under their charters to
exercise the functions and privileges their charters
erred on them. Thus first declaring that their corpo-
rate powers, in view Of their denial of specie for their
notes. may, Of right, be revoked and made void, it will
become necessary, for the further purpose OF prevent
ing the ruinous embarrassment to which large portion
OF the community would he subjected by forcing those
banks, or either Of them to wind up suddenly-it will
become necessary, at least, eTpedcnt and proper,
that the Legislature prescribe the conditions upon which
those banks may proceed 10 reduce their transactions
by degrees and with moderation, to bring them
10 close during the year 1912, This occurs to me
being fit of legislation by which those banks
may be cut of from accepting the conditions OF the law
OF the last regular session, (Which is suspended
only Till the lst Of March 1881 and from thereby Sc
curing extension Of their charters while at the same
time, the prudentaly granted privilege Of winding up
by graduated reduction Of their transactions their
being made receivable IN payment of public dues
the while, will be less consonant with the inte-
rest Of the banks than with the convenience of tho
public.
As TO tho Bank OF Virginia" q Ike This name for
he bank syse,n let the law Of the last regular scs.
Of the Legislature, by accepting the provisions Of
which would extension of rs charter, lie
suspended until the 3lst day Of December 1912, or
any other date pos,eor that at which it is expire
according to the act OF the 18th Of February $780,
which extended its charter for nine years and one
month
The law prescribing the conditions on which tho
banks may gradually wind up, and shonld take care TO