New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1844-03-04
WHOLE NO. eoa.

authorised &c De issued aad required dros
osecuEities With ne somp.seef and ss The ciEcnians
should be parable on demand Laws 1885, 2 2te S3 upon
eotns Nnct ~ sh ss11se Va .' ,3Iy ~ ~ $500
ccure Of banking business Requested oy h laws an u.s.
Il 20 the circulating no;ss aud any other OF the evil
derce al debt securities which the ASSOCIATIONS were no
law nor any Of the oSes having rrisnc 10 The circulating
notes have any thiag do with Ordinary pronlssory note
upon ,h .ssocsons IN gsspec, TIE OF the ordinary
sTcan Aperof the country among which bills ana Eo'ei
supposed, however TIA, the It'll section OF the act Of
bids the associations from making using any Ordinary ball
ote1chanSe ronsso OF rs IA the usual course
without interest TRas section is follows No hanns
ASSOCIATION. oi2dlvdual banker, such, shall issue
as banker uaess the Shall Sc made raysbs on demand
and and s'eEy glosnSa Of as section ~
sidra banker shall be deemed e"d Judged msdeueanor,
punishable hy fine pTisoamn BOTH IN the discretion
OF tire Court having cosnizance hs5eo:H( Laws $780, y.
dinaf bills and notes nor intended 10 be- and NOT fac,
issued AID circulated IS money such instruments
our opinion either thin The Intention Of hs or
eo9cnsioS a % s tSese n question: '
The ssaer 6nkins law did not Impose any LSaaffy apss
the issue OF such paper by the socatop 10 circulate As
easily and as we know frequently praeused aud although
had become public grievance OF ordinary magnitude.
those concerned Circulating notes Ike those counter.
signed by The comptroller and resembling thea IN almost
the Ignorant and uuwary easily imposed upon by means
Of them These generally time, aad sometimes
any security other han the ITSELF had been
furnished 70 the COMPTROLLER IN comP2nee WITH me spirit OF
general banking IL correct thus evil aud 10
punish those who should snsse IN or practising
that the section under consideration was passed.
This and this alone the mischief that existed, and
which the Legislature intended to medy.
Ii W. correct IN this view OF the necessity which de-
manded the provision question: there be little doebt
10 The construction OF the section ITSELF for although The
words loose ana general they 10 be restrained aud lin
lied oy this necessity and By the intention OF the Lessa
,ms as dednSed from the eT they designed TO prevent aud
purposes.
principle we'll settled in the construction OF statutes
De extended by lntendment 10 plainly within the
Now cannot supposed that the Legsatue having an
eye the original object of passing the general banking law
the abuse which under the system could have
prevent the associations from giving bonds bills,
notes for the ordinary purposes ot trade aud
payable time and issued Intended TO circulate
II was no hes 1r s sy @ lett 70 M @d
and prudence of dealers them IN the same manner as
ce tainty. evil in tins demanding remedy.
In the first place them regard the notes In question
and therefore uot within the section Itself This alone
exempt them from the restraints OF ITS
In the words OF M Dwais much approved authority upon
this subject, To bring within the s9tua, II should
only be within the mischief contemplated by the Les9.
ure also within the plain nal import OF the words
of tie act Dwar on STAT y, ,o,-.o ;r,o-,ra
ation part and very important well usual OF
the of banks aud banking associations not be
OF exchange payable upon time, the endorsement being
effect bill them, aud consequently IN this view
OF the Illegal Nor could they having balance gu
with another bank draw upon It, unless The drat was
made payable on demand relu,sltlon winch would be ua
destroy this kind of BUSINESS altogether render nearly
The transmission of funds BY tias method, and others anal
ogous aud forms valuable, as we'll as high
could not give ;heir note for site for banking
materials or for arrea Of salary TO an ofce
unless payable demand and without interest IL is
that the section IN question was not Intended to- and does not
exchange make pomssory NOES and other contracts IN the
In The next place we are Of opinion that such notes
within piain nieigble import OF the words OF the lh
Of the act GA examining that acS y oe seen tna
circulate the Legislature stu keeping IN
and intending promote the Original OBJECT oil the gene
raj banking law end the Of the public against worth
less currency Thr original allowed the stocks OF any OF
circ uang notes; act orbds and coEtne3 hmo the
socks OF state The third section quiret securities 70
with the Comptroller before the business banking shall De
coInmenced the fifth the return OF mnulated cltcu-
ang the Comptroller and the issue OF new ones TO
s.venth eighth ninth and tenth also relate the cir
culany notes the securities provided for them the
hands tie Comptroller and the residue OF the act extends
the pow the bank the associations and
imposes penalties npou for refusing TO submit 10 their
examinations lt cannot be doubted therefore, from lis frame
and language that this amended passed with single
eve 20 the circulating and not Intended 10 interfere
CON mercsI paper This also Just inference from the
word Of the section They are, that banking assoca-
or individual banker SUCH shall issue put IN CIR
cillatt0r, any bill or note" &c.
This language only applicable circulating medium,
ike bank notes other currency intended substitute of
money of such speak az an issue or As on'
This form rar y applied 70 blls OF ex
change and ponsoiy having resemblance Ia bank
noies and intended money NO Well-insucfd
OF KIND, ever speaks VI his out
standing bills issue rs beng III REGULATION
b be deemed 20 have used these well known
AMI familiar terms their occupation T. DWar
10, and this the section should BE- 6ao As ioo"
No banking association, individual oank. as such sat
issue put calculation money any bill OF note, &c
prohibit their
mn and not otherwise clearly nierabie from the
chief he corrected and from the provisions OF the
act itself Dcssd this several the language oil
th -anp banking law itself The third section authorizes
the associations, complying with the act 10 loan and
fret that made by such aSsoc
lions and all notes and bills 6p them issued and put IN car
ra,i0n as 1on. shall signed &c. and clearly the same
meaning is necessarily implied by the fourth section oil the
aneadatory act ::
gu. ston are lawful and within the prohibition o. The
,,urh section Of the act of Iith May, lSt0
The above conclusions we nave tn'"ntoniliy
avoided considering which has been much
rnet whether OF tth May G,g far IS relates to
formed iBd IN operator wren naI ac "h eilec
" a. not constitutional and yoid
Tins is still an open and unsettled question. AMI presents
sabect consideration have not desned
NECESSARY express any opiuon upon ~ as "e regard ne
views already presented upon the amended ACT hei entirely
sfscory and rendering expression OF opinion
thi' qn11S Si.n- anHe SAMUEL A FOOT,
\' JOHN LOKIMER GRAHAM,
WILLIAM CURTIS MOVES.
Da:ed New York, January 9Th, 1911
Opinion Of DAVID B. OGDEr.
fi,il idarpd the