The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1845-06-07

ant clause confused that they will admit Of half
dozen constructions, and defective that a repeal
is required before fair opportunity has been allow
I'd for their operation. The gross ignorance so
frequently exhibited, is by no means confined
10 our State Legislatures but we find it equally
paable in Congress- and the continual changes made
the laws Of the country produced more from this
cause than any other. The decision in the Supreme
Court OF the State of New York. referred TO- declares
the general banking law of the State passed April 18TH
1888 unconstitutional and endangers the existence of
contracts and property amounting millions OF dollars
The decision grew out of trial Of individual for
having in his possession with intent pass certain
forged and counterfeit notes purporng be Of the Bank
Of Warsaw bank established under the general bank
ing law of this State The defence argued that the Bank
OF Warsaw was not body capable Of being defauded
that the act under which the association formed
unconstitutional and void because was not passed by
vote OF two-thirds of the members of the egisla-
turc. Upon the trial the defendant was convicted
and sentenced to the States Prison for five years
It was upon an appeal from this verdict that the
decision Of the Supreme Court made The decision
states that the fundamental law says ha the assent Of
twohirds Of the members elected to each branch of
Legislature shall be requisite to every bill creating,
tinuing, altering or renewing any body polite
porate." The general banking law not passed by
twothirds vote and the question arises whether assoca
tons formed under that law bodies polite corpor-
ate or they are the law passed inuch
manner as to give it validity The Supreme Court de-
cded that they corporations and the Court of Errors
decided that they are not bodies polite corporate
The whole question turns upon this point and upon this
ground the question must be decided by vote of %
l. the Court Of Errors decided that the general banking
law was valid and consutionally enacted and by
OF % to it decided that the associations organized in
conformity with the provisions Of that act not nco
poraed within the spirit and meaning of the constitution
The Court Of Errors in session. and the decision
Of the Supreme Court WILL without doubt receive imme
date attention. settlement of this question is of the
most vital Importance the existence of nearly one
half Of the banking capital of the State depends upon
favorable decision. Should the Court of Errors confirm
the decision oft Supreme Court and the general bank
ing law be pronounced unconstitutional by the two high
est courts in the State, it will vast deal Of en-
barrassment among the companies doing business under
that law annul an immense amount ofcontracs derange
every department of trade, and produce bankruptcy
among many who have embarked their property in this
business The at ISSUE and the terri
Bile consequence which will result from decision un-
favorable to this law, might well have influenced the
Judges Of Supreme Court in mailing their decision,
and the Court of Errors must feel and will no doubt be
influenced by the tremendous responsibility resting upon
it. We want the question settled once for ALL The
Court of Errors has decided upon it, and now they
have the same thing to do again. The law has
been in operation more than years. and its const
nationality not yet satisfactorily settled In the event
the Court of Errors reversing its previous decision and
confirming that of the Supreme Court the Legislature
will have to pass law legalizng existing contracts
and amend the bill that the institutions now in opera.
ton will be permitted to continue their business II
will not be just to allow individuals to suffer through
the ignorance of the members of previous legsa.
lures. These free banks have increased very rapidly
within the past three years. and number sixty-ve
in the State with capital Of l47 According to the
last report the Comptroller of this State the loans and
discounts of these sxtyfve free banks amounted to
$l6,620,740; the circulation to $56s9697 deposits
$s4l255 The aggregate liabilities of the free banks
amounted to sal and of the chartered banks to
$s7, 292e; little than one-third of the bank
Of this State carried by the free banks
The safety fund banks upon the expiration of their
ers continue in operation under the general banking
law and eventually this law is sustaned-the bank
ing business of this State will be monopolized by
these banks OF the two systems in existence,
this general banking SYSTEM which is declared onst
tnnnaI is mnch superior tn the Safety Fund system
dollar in silver is to dollar in paper promises We
trust the dangers and difficulties this question threat
to produce in financial affairs, will have good effect
in future Legislation upon important matters and that
the representatives of the people will have some re.
gard for the constitution SO long we have one.