The New York herald., 1850-02-18
TWO CENTS.

argued some time thereafter the sssupolston viii be
!cyiSi 70 said claimants and also to sundry hungry
~ Who are waiting until the former shall
nj" from tS.s ior the crumbs that psrchsnes may
All that has been thus far effected BY all the tigs-
esrihoas and notes in III. Gsts sod Tsnsss
ana bstchford and Murray cases involving altogether
bank And In both Of these cases the court 40 rsr
rom pronouncing against the validity OF these claims
apssy reserved that question while the casual and
| When the recent decision Of the Court Of Appssis
known the MISREPRESENTATION prevailed that -
declared the certificates which the trust created
TO protect to be void the effect invsndsts the
debts themselves. Nothing be erronssus
lists the subsequent taking OF 9 security which proves
to be illegal and void, does prejudice the origius
oeot Even In tue case OF usury. where the
rty from being given q usurious serecm-ut IA made
void not BY inference but by express statute whsrs
whore the lender lie deemed to be not mersly,n eaaI
fsut with the other party but 80 chief sinner that
the law abandons the general rule ~hioh prevents
It's interfering in behalf Of either party illegal
transaction and relieves the borrower-even 10 this
case the rule Is established and applies favor
lender
aiuch more, then would 1t be applied in favor Of .
person who takes note which bank had right to
issue, where the egality is confined to the security
given, and where The very object of the prohio
To- protect individuals dealing with the bank
In the Yates and Talmags case. Vice Chancelor
McCoun carefully reviewed the origin OF debts on
which the certihcstes decreed By him be we're
given; and while impeachpg noue Of them 90 merto
be ordered the costs Of the claimants TO be paid out of
the assets Of the bank
issued to secsre pre- existing cbrs which repre-
sened by the bills Of exchange dra ~n prior the
Of May l4th 1910, and which are clearly legal srili
previous letter credit and the account. Of the Pal
ners. The Court Of Appeals recognised the doctrue
aoo'e arc, stated aud expressed ipeiasntaiy The opnoa
for h' gaiity In their origin when question is
enter upon although IL had been formally ra-ed by the
receiver and the counsel for the Paimsr urged 70 have
II deteimihsd.
The opinion which have expressed said Justies
Bronson. does not in It. copselu.nces go de-
nying TO Pslners Co the preference sheh they clam
over other creditors " The deed msds," raid he,
TO give the greater credit and circulation and drod
the ultimate payment Of the egsl e-rtiGcste
OF depott; aud do not how the deed 81 stand,
when the other instrume nts must fall IL is true n.t
both had good consideration in the existing soity
OF the bank to ind, mnify the PalDa-rs against
bulls which bad been drawn aud accepted under tue
letter Of credit /"
THE legal iisbilityn ssid he again, on which the
notss were Issued still remains but the notes void
The ground on which 1t is attempted to impssch tn,
original debt created by the bills drawn b. Davis on
the Pslmsrs s that it contractsd the pu pose
OF enabling the bank to speculate its shares
violation Of provision OF the Revised Statutes, which
frbo moneyed interpretations 20 buy their stock
except with turpius profits. and which has de-
cdtd 20 apply TO the free banks TO establish this
P.imers, when they cepted thsss bills had actual
notice OF such Illegal purpose; and secondly thai their
acceptance OF them essentially part OF the H.
legal itsprscon much In furth-rancs Of It, ss to
implicste them equally With the bank, aud thsreby
throw them ~ihout the pale OF the Law But s,ither
OF hefe proportions thus far to be made cut
The evider ce L. that they had notice OF this
pose when they informed the holder, CT the bill. for
the principal amount OF their decision 20 accept tnen
and that when they learned ths real nature Of ths
transsetiop, they strongly drsPproved Of on busi
principles though without .usp.ctng IL Of being
Illegal IL sppesrs too that the uaotsotion
sfed before the bills drsvu the means
having been obtained BY selling in To. srket bill. uf
the bank Hath Co to meet -hich the bills IL De-
vie endorsed by the bank drawn PsimSrs II the
bills on Huh 20 were actually sold 20 Innocent par
iAs~a hpRf Nhsir
against the bank cannot be questioned rhe pay nsnt
OF Them 10 such parties the pay OF bt
which incapable of being sBorcad - In the
ca.s cited BY Justice EdwArds opipons buI ths
ratsf.son of valid esbt ~bich the bank could have
been compelled TO pay Such payment, ~ IN sds by
the bsns, q mi.s picsiiou OF fusds THAI
the disctarge OF any other honest debt and Al miis
i;sal osssson sssInst the bank 90 re- ,mbar.- that
party IL is not necessary 20 discuss the qu--i,n,
pl.isd that the dishonor OF the bills drssn
lsmer ~ould have had not toe slightest elect Ia pre-
venting It the subsesuent acceptance OF th-se ol' va,
20 intsr~oven with OF In iurthsrsnc- Il the illegal act
as TO be infected by IT, whether the eoud
be sustaDtd as = trsD'sctioD capable 81 --pafauoa
from the Dl.Psl act aud having merely ths p~rssuy
legal object and effect of relieving the pse-.t-s II tas
bank or the qusstiop how far tn. bank und by
tuch application q Its funds or however dinsait
In these s,pects 1t might be baak the
liability the We've before taken II vel founded hsposs
OF the whole c.otrcversy.
The maze Of the claims are IN stil better cOlditios
q. respects the nature s the original tran action from
Which they sprung some o them are attempted 70 be
inp.scbeo, IN the ground that they we're f.nnied on
purchases Of State stecks spesustion which s al
Iss.o 20 be Illegal As ~ithout tb- 90 ossk
Ing business bank Hsuress express prohibition
to purchases OF such stock for purpose "a
ps.d by Law TO buy them. 90 extent for de-
po,t -ith the comptroller ~ bad a. T. Q needed by
all psfues the right TO invest Ia tb-m its surplus
espts sud A. L. Easy hoF, n II had chosen
60 inyrst all ts capital like the Bank oi England aud
oth,r insutuicn, In public seooritiss reyiag ia
srcul.ion and deposits tor the means ot ciscoast,
tuch c"ur,s could be said 20 b. departure from ts
lss innate buiin'es or In the abe nee - any s~
ts dasru tl~ua h. In
vssimtut of lite capital In boDss sni mortgages ~hch
wss AotusIy made, sSd has not been iapsaensa. ~,
then the bank had the general poser 70 ouy socks ts
Oh gait n to pay for such Jurchas-s e perfectly
valid sbd binding sven though IL should moved
that those purchases we're made tor nI.gx purysss
uss. th. s..rs had actual noiee OF the h-gsi par.
pctss tlere " no pretence Of any sucn DoIs- s"d
far a. n. character 81 any OF the pr-ses' esims
agsins The bank T. DEPENDENT upon the validity o the
0stt creates By 'uch purehss- Of innocsnt psrt.-,
thss ~. sure to be su,siu.d But Why rsssln a. 60
What he courts viii probably d. at ina-dat.ly
futur. period When thess qusttipns shsi % -ctssJ
pfssnt's Ga their dscson' lti' sufcisat th,s aver
y,srs of litss leu The debts Involved Ia th- pria
ctsl eonov.rs'es Iespsc, th.ir vs1its, pre-
eissly they did ~beb 70 commenced sud sthsat
,hsdor more Of rssscp sBppos- from tnias ths
courts have sid done that tnsy viii not - sustain
ed than there "a. when to- dools ~ The bs1k -ere
brst cos.d ~ Is ssxtrsordasfy, even M the hisi0ry
Of dlusion and In pofurs that n ON the ftst hst
tu the Preferences have b.eu ct ssias a. 90
about sst a. the d.b's Bot -'tbaut -r-s cs-s.i
espre.'i - the court. impeschirg tbe ,A'ittr ~
tbs o.tts tnsmssv.s, u has b-en a,lrsi net, thst
dbs vii b. decis red secondly tha. tns 81
xbo too OF dsbt Ia ca 80 not - ie1 ~il MT
only b. deprived Of prsier,p whch s aot alec "a
ky the principle of the deciron in the t-n-r has
Be- sg ,s,g, st,.Ily ...y ,s',sl,; as' %. n-..y
vsfts sie foufthiy that the bcnina a'ats ~ - nt
tf,h 81 the saount ef the debt stl b. aatusl
realized and gill survive ths p-lils ~ ths aner uf
and never ending nigstioos iu which thfy srs Ia
vowed ana, after every cred'tor wno bsn-t sansy
te the bank st rates not i-gsd iD uest insis spof
20 be pfUIttua fOid " properly susii hats ben
stripped, vi at last he divided smesr toe socsh I'd
Who had the contrcl of tbe tans fren 10 e'sa-
nj. a.H ~ho .ffs al fI1I Z
without the diss. Mt chgectiDs - Que inilttiaai
continued IN Hs uspsgsment The o0ic - CON mt'ia;
IN. illssa tran "a vhicb ths on- tno
rally rrspc .ihe fr them thus - spsruls~' Nsy,
thai IN. chance ~ all these nsgs turning oat 80 ss
for r. eu.ry sro a. ~ honesty and 80 npproetouily
fer n s,d usttc. A.. -eftb from $500 Oco 10 t45o oV,
or from 10 TO 10 Per cent on ~ ooc 900
The Tsnsmsny Hail Meeting.