The Yazoo City Whig and political register. (Yazoo City, Miss.) 1842-1844, 1843-07-14
TmpOrtant DefsioIl.

SeAAAR lNAsD0ASAOAAs +
CAT the cost of no little trouble we lay be-
fore our readers to-day the very important
decision of the High Courlof Errors and APP
peals in regard to the powers of banking cor
poratians. We have no room for comments"
.Nississigptan, 1eth MAY.
Commercial Bank Manchsster,j
John r. Nolan, ct. al
The Commercial bank of Manchester, on
the I'd day Of January 1899, discounted a.
note for The defendants for $4,000, payable
| 10 months after date, and paid the amonnt
Hess per cent which was seryed for the
interest. At the same time the Bank, by
contract, received from ihO defendant No
Lap fifty bales Of cotton, which were shipped
Ito Liverpool for him, with the understanding
that heaTas to be credited with the nett pro.
ceeds Of the sales Of the cotton including the
foreign exchanged at the city Of New York.
There does not appear TO have been anycon-
tract as TO domestic exchange, other than
that which may be inferred from the circular
! issued by the bank, short time previously,
by which it proposed "to make loans predi-
Gated upon cotton of fair quality, taking the
owners note at moi longer lime than II
, months, deducting discount for the time,
placing TO the credit of the owner the pre-
MUM Of foreign exchange currentin New
York, at the date of sales as well as interest
] upon nett proceeds of cotton sold, untilset
Z clement; shipments &c be made TO Liver
pool"
There was placed upon the note of tht
n defendant credit for the amount Of pro
rf gni~ as.~nrdfpr e.. tlo akOwn vNrnno
, lsition, but no premium Cor domestic ex
change; that is, for the difference of value
lin Money in New York and in Manchester
q where the bank was situated. The settle
" ment was made in December 1889. Their
ne is no proof of the rate of exchange at tht
ID tilns.of settlement. but there is evidence L
Il II show that during the year, the rate Auctua
Il ted from par for specie, TO IL per cent f
al Mississippi currency, the time of depressio
lr- of our currency and Of increased rate Of e1
ai change being greatest, as the year 1889 DIRE
to close. IRsl940 the general suspensio
is of the banks took place. 1t was in proc
5s that the bank regarded the domestic e,
rs ne change. if in favor of New York at the tim
when the return Of sales Of cotton were T,
nj ceiyed as no part Of the discount, ard as I
he more than compensation for its trouble al
II. expense.
'"' Upon this state of facts the court belo'
charged the jury, amongst other things 9Th
if the bank in this instance took more thi
rs the interest allowed BY. its charter, by CO
sedt tract either express or implied, no matter
Re- what form it maYhave been taken, that tn
,. eFs the contract sued on is usurious, and is
my tally void" A verdict was found for t
i'm defendants and Judgment entered in tn,
and favor.
full, Two noinfs have been presenfed 10 us
"' argument growing out of this charge; fl
whether the contract sued on is affect
reat with usury 2dly if so whether it is who
5 Of void, or only TO the extent of the interest
nSsI In regard to the first question the ex
nee; ence of usury in the transaction, il is
nifty explained in the charge, with sufficient 2
upon cision, what is meant by usury. tits {
vim Cainly true-in regard TO this point, that
form of the contract, OF the division Of
j, contract into distinct paris, can make.
- i difference. The law will not permit
now device TO defeat its provisions, where
d nc consummatioR of usuFy is really intend
" o. and the departure from the ordinary form
s Sl;c5 contract is meant merely as a veil to
Win kuAGG Hit ACuA ~ A1C At@4AadCAtaA
num- But il is we'll settled that in a case like
owsr where besides the contract OF loan, Their
s sSs5- also contract BY way Of pledge, or m
gage, or collateral security as accessaT,
DAY The payment Of the debt, which is the /
i not Ecipal, that some fair and Just cempensa
h;c = for labor, trouble, and expense about The
ers Of cessary thing, may be legally stipulated
scrip Comyn on usury 46, Trotter vs. Curtis
DAY Johns 100, 2 Cowan, 100. This stipuls
e PEI however must not be resorted TO as a c
Pa lforusury. Thematter then becomes d
M lion of fact, whether the taking of the
Eli ton underan agreement to account f
nett proceeds in New York, without thl
dition,of domestic exchange, was N
49,. adopted to conceal the psurious inten
nave or was fair contract, the bank taking
risk Of profit il that way, as a compens
for itstrouble Again, ia contracts Of
Upton. If there is a hazard that the creditor ma
IL sell ceiYe less than his principal, it is no lisu
-. Leigh 24s, j. ]. Marshall 500. Bl
q hazard must not be merely colorado,
vs.. Lidwell Esp. Rep. l62. In thisc
at the time of payment, the rate ofexcl
Of the had been in favor Of Manchester a
yh ne New York, the bank would have been
~. to that extent. II the fluctuations !
NJ. balance OF trade, mutations in the /
exchange between two points, are !