Morning herald. [volume] (New York [N.Y.]) 1837-1840, 1840-10-10


These rates indicate the mprov which has been
going in the business and currency of the suspended
districts The purchases have been small this fall and the
crop about to forward is large with the prospect Of
good arke Its appearance will still further tend
equsze the domestic exchanges and reduce the rate Of
foreign bills which already reaching point which
ders specie the best remittance to the continent.
The important ;cison in the Of the State of Iii
nois against Jehn Dclaed referred to yesterday The
decision Mr. Delaed, and has been appealed
TO the Court Of Errors. The grounds which tets
opinion given, render Of the highest Importance, mas
much, this decision Is confirmed and the contracts
nuTl6ei Illegal all the contracts made during the last
year by John C. Spencer with Prime Ward King,
he nuhcd az illegal in the wsy. The following is
eKtra.t from the decision -
The State Of nsis rsists that the
tracts made with the defendant were Illegal and unauhor
First that the stock was sold below par value, in d.
rect violation Cd the statutes under which che bonds
Secondly agents of the State author
lied to sell the bonds certificates OF stock upon credit
The contract of the AL April 1882 was for sale OF
bonds the of S3o00o and the interest to
running the bonds from the time Of their
delivery, the defendant, which to be before
the tenth Of June The first ymert uercon was to be
made by depeste of $4,000 in OF the free banks Of
New York. fifteen days after the delivery ofhe bonds Ii
not TO be drawn for, however INN ediaiey but by
drafts lees that days sight ard the residue
August sepenoe October, Novemser, and January
thereafter without interest in bank notes of some bank
seen BY this arrangement the State subjected to
aloss Of Interest averaged oSeut l0s days upon
til the tenth of June the latest time allowed by the
for its delivery In addition t. this the State To
any Of the banking associations Of the city Of
New York For the defendant by the terms of the agree
meat, had sghf to make the ave last payments in de-
precatei curoncy any OF those iastinons should have
suspended specie payments ut the tine the instruments
were duc and payable
The contract n ade by the defendant with the Funl
Commissioners the 1h of May, iss Cor the sale Of
Sasoo Of Internal Improvement bonds was still more M
favorable to the State The interest those onds
To commence Ing fran the date Of tat contract But
thcamount Of tr loan to the State IN install
mcnts VI $4,000 without interest t first day of De-
cember February uch April and Nay then next, aud
the last instansnt Of $4,000 pay aide the hrs Of
June Isi0 By putaon, viii be onnd that the
t thus given was squa to abont ten onhs upon the az
lgregsc amount. Esking loss OF interest more than
saooo to the s.lte the Of interest which she
paying her b9nds in the meantime. The contract does
nosssie where tue deIoscs TO be made TO the credit
of the Bank OF shswneetown, Tor the afhc state, and
therefore, by its terms, would probably have authorised
shawneeown in the State Of Illinois at dc election OF
the defendant. prssnme however, II was intended by
tAe pait~ that the Honey should be deposited IN some OF
the banks banking ssocGtions in the city Of New
ysrk. and this a slip in the 1Aa wing Of the
csnirsct.
The CllaEeeor rests his opinion mainly the ground
thai ihc fund commissisEers Of goverpm-nt have
authority N 81. crcd. The estahlishmsr Of this
ston innst have the disastrous effect We will take
tive transaetos only ofthe New York fusd commission
ers <st year. The first the l7,h August, 1892
81 in MACY ior zach dollar Of stock. This sole
rnna, at par according law, but agreed that
the s.oart shook he checked might be wanted.
In the resD<ns, Al was to ain dePose without into
rest, VIII this transact ion but a sale credit AZ
such clearly within te decision OF tie Gance
Ior edtDn is loss ofs by the STATE etrans
Ger Of S737SsB, then in dcIosse with other bar'
made to the Manhattan additional iudocsnent
Cor the loan A,ain on the ishs Oc,obcr lsss tescom
nissoners isssj SSocoo Gvescr cent stock 70 frimc
ward & King and iar which they to pay
dollsr in roney for each dollar ia stock, as ir tc
other case; however, t,s stock was sold on q ere
dit pay able ss follows per cs1t on The 10Th Nor-
bcr per cen, Sac ljh December, - per cent on us
Is, January, per ceHt the sab January 10 per
the Is, February 10 fercct 90 the 18Th tehruar
and he residue the Of July. D. this arrangement
the four mont, interest S4ooo0oo, aud nine
months interest sicO00o IA The saNe way the Black
River Canal made with the Bank Of America, and
other loans.
The Of the contract between John Delafed and
the state CT Illinois precisely similar. aud on this
ground the decision has becn given against Me-. Delafed
thus establishing that the contracts between the fund
issoncrs ofths State and the Wall clique are H.
legal This opens The door for inquiry into all the
tracts which have been made by the different during
the pas. two years The grounds which the counsel
Of the of illinois insist that the contracts eo
are precisely the those which the resolutions
Of population passed last winter. We DO not per
ceye the justice Of The plea the State. her fund
rnjsscners not capable trustworthy, it at the
risk the state that they il they abused their trust that
was the fault third party who made the barg
he could According to the decision Of the Chancellor,
the commissioner is cypher, and contractor, must
make their bargain with the law not with the commits
sioncr IN al hc employer is bound by the acts Of
his agents The Of Davis, ofhe schuy lkl Dank may
he point he issued stock Of the bank Of Ken
tscLy Of which he was sgcn, Illegally but the bank
a. -