The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1850-01-08

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one and the same Transaction The deed was made
give the greater credit and circulation and
the utinsts payment OF the Illegal notes or csrtid
% Of deposit; and do not see how the deed can
stand when the other Instruments must fall IL Is
true tina. both had good consideration In the exist
ing liability Of the bank to indemnity the fs,ners
against the bills which had been drawn and oed
under The letter Of credit But neither prior debt
nor any other good consideration will support
Contract which Is 10 itssf contrary to the provisions
of law And although it is true in this case that the
payment Of the notes would have the effect OF dis
chsrang the prior liability Of the bank to the Pamers
yet the deco made to ure the performa OF
the contract. The recitss in the deed show an
intsotion to Indemnify the Palmsrs. IS sccsptors,
against the bills which Davis had drawn under the
credit; but the parties intended co effect the object
in an Illegal manner TO wit by issuing prohibited GER
hcates OF deposit and assigning certain property to
secure the payment of the certificates legal par-
pose must DO carried into effect by legal means When
and stipuistions in the deed, there Is q single
word about ths prior liability If thu bank, but the
are to hold the assigned securities until the certificates
Of deposit shalt be paid to hold the securities trust
for the bank until default shall be made In the pay
ment OF the certificates OF deposit and after default
In trust FOR the holders IT the certiosts Of deposit
And the trustees are thereon procsed to the rea
cation Of the assigned Securities and ray the
peys to PsDers aud Co. to the ether holders Of the
certificates Of deposit and the parties proceed to
the End OF the instrument at every making stpu-
any covenant grant. OF ausion TO concerning
any ether liability ON the part OF the bank. The
trsn'action amounted to this, neither less
there vas promise, which though founded on good
confederation was forbidden by Law, and therefore
void and an assignment Of property trust to
the performances OF the illegal promise Such trust
cannot be supported
IL j. undoubtedly true, that where . deed other
contract contains distinct undertakings some Of which
legal and Illegal the former will in certain
ses be upheld though the latter void and II there
Rad been additional provision deed that the
asigp.d property shall be held security for the
original liability Of the bank that part of the deed
ment Of the crrtifcstss should fail But there
is no agreement stipulation in the deed for
curing the original liability of the bank nothing Of
the hind.
Again, although IL appears from the recitss In the
that one object of the ARA ut of the 3Oth OF
November ls4O, to the performance of the
original undertaking of the bank. it have al
ready rem aTked, to be done in an illegal manner to
wit by isuipg prohibited certificates s.g sing
property to secure the performance of the new and
vicious contract legal end cannot bs attained by
The ground on which the counsel for the defendant
seemed mainly TO rely. that the deed should b.
formed 30 Ms to mahe security for the original a-
bihty OF the bank. His printed point touching the
question l. rs follows:"Tss company having agreed
with fslmers, Mackillop. Dent 90, fer aud val
usse to pledge to them the securities In
question and having actually assigned and delivered
the securities equity will reform defects, arising
from mistake accident In the written Instruments"
There are several difficulties standing in the of this
argument So far relates ID the notes or certificates
OF deposit 1t of no practical Importance Is we
have already seen which should be issued for both
wcuid De alike void As to reforming the deed, there
IL no bill or application for that purpose not even
or accident In preparing the Instrument, or that IL
does not express the real intention Of the parties IL
wecoud See that there had been mistake in drawing
up me deed It could not be reformed without ding
bill TOT That purpose could read aud enforce the
ineHumeht as though " nad been properly drawn. We
snoula be obliged to folio" the deed as 1t Is But what
It, Poeoe etili more conclusive, there Is not pa
cs OF evidence to show that there was any mistake or
ercoep.in preparing 'ne deed or tnst Is nos Just
VIVA. the parties intended II should be- and II could
not De reformed In equity, II Dill haa been hled Tor
thst purpose
neIAohy Oh tue oahk out so st as sppesrs tney la.
noeo 70 90 u In the very way IL mas been DONE ana
bst way 10 nefA' Hthey mstook the Ia =, we cam
~ ~, stsn' IseI oy mkkns Nc. contract ior them
a.n qoestou ~asiuiy e,eu IN tue osse huat vs.
nouemenere Y "hsop, osl wheaton Vs. Mason,
rs, IIeteIs Il spo zee story "a ia iiol wnicn
Pus. - . a,
.,, ~eIe sePA.A's sss'snmehs Oh the several
49,, ~, ,h IN tso scne1uie 70 the trust
ue.oi W. hey we're All made 10 cs,cniord ana Mur-
10Y =" we're executed ana oenvered snuita
p.."ry Vim VIC eAseuuon suo oeh'ery oi tue deea;
.,ra,.,, 'oi .ne Puipoees eAP'esseo IN tnAt In.
20 ,h.. mo ~. Poeer .e'a 70 secsro Inc payment
"a ~ ...'uoa.ee .. urPos't Inc reason Tor mskng
Ptooaoiy was greater convenience
ahnn,s ~ .ss p,oPs' voun.er, anu III msAIne
sh, NJ .ao'eis anu o'-cnsrBes put however
IL nay W sue s.snuieu's arc ot par. OF on. en-
a.. ~, ~ eauuo. 10 ssPsiseu uroui 'he Ne o, me
~ shu piemissv'y notes ~neu we're executed a.
' 800 .. Ana a. pa as VI tne ZANE .raus se'lon.
ns'e p'ipo'ey aV,io'o tne expression OF soy
up orn On .ue ress'A impo'tsn' Questions wncn
onase OF Tue nve tnoueha tnares OF tue capai stock
~ t VI. oa. u, anu .ne tsn, shon we're used 70 rass
40 hscsn.s ~ ths 80 wh,ah SO, e at ,so
csse Nss h.t bscs~fy % eonsi'rr those pus.uous;
sIu iVI vac Iu,'nst ieasOn .nss after tn'' OH was
u n. "n u.'i 81 ~ n vu ,t Ib".sey vas nsle oy
the cob,ent on tnsse psiu's IA tue suit OF Tracy
srsinst the bank referring 1t to master 70 tase
proofs nhc report upon the claim II The Pslmers 10
etsoi.Trs OF .ns hapk me master wa, also to as,
by ,rn.s, and bat preferences they Claimed uadsr