New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1852-07-12
The Government Stock Bank, of Michi-


gan has not been sustained by the Courts of law there
in Its mode of redeeming It's issues by single bills The
bills Of this Bank are well secured-none better-and
the brokers discount them readily at the usual rates.
Judge Parker delivered his decision in
the of the Metropolitan Bank last Friday July at
Albany The main points Of his decision follows
Is charged In the complaint that the defendant has
employed It's capital in buying, at price less than the
sums payable on their faces respectively the bills and
notes Intended for circulation as money, issued by
banks banking associations and individual bankers Of
this State and other States which, at the place OF such
buying are not current or redeemabe at par, and dis
posing OF the same by sale return thereof for re-
demption TO the bank banking association or individual
banker, issuing the respectively. The defendant
In its answer, admits this In far as depositOrs and
dealers with the Metropolitan Bank are concerned
There then no controversy to the fact that the de-
PENDANT has been in the practice OF receiving un current
bank notes at discount; and the principal question
presented tor decision is as TO the legality of such prac
tce This question lie to be examined on the facts as
admitted oy the defendant, viz that the defendant has
been In the practice of receiving such bills or no
from in depositors and dealers and that ii has 9TH
erwise purchased them. But Judge F. cannot see how
right to 80 receive them can be distinguished from
the right to buy them generally at discount To re.
ceye them on deposit would probably be the manner
IN which the business would be transacted In either
cste or at least might be such. If the notes are re-
ceived at discount deposit the avals may be after.
ward applied in payment Of note falling due at the
same bank or they may be drawn on the check of
NE eepontor Inc notes may thus be received by the
bank In payment of debt they may be bought by the
bank How the avails are TO be applied may perhaps
be uncertain at the time Of the de pos And the oues
TOD, after ALL 10 whether bank has the right to receive
such uncufrent bank notes at discount If thev NAV
be so received, the avss may be disposed of bv the
bank In any lawful way. IT. however legal dstinc,jon
can be taken between buying such at notes Al
discount and receiving them from deposltors and deal
ere, the defendant is TO have the benefit of II "a the
facts admitted present only the latter case
the receiving OF uncurrent notes at discount All.
'horzed under the power to discount bills notes and
otner evidences OF debt defined In the 18th section of
the Act TO authorize the business of bankngp ria
said that that clause Of the 18th section Is only appca
PIE 10 tne okcountng OF paper yet due aud Ia the
intended the taking out Of theinteres for the
e toat the note has TO run before due But even In
ne case OF clscountng bank paper not due the fair rate
oil exchange as well the Interest NAV be deducted
when the note Is payable at different plsce Atnoncb
bank bills are due upon their face vet thew
PAyhoie AZ distant place and distance i'm ,rts time
so lar therefore, the ability of the person
70 realize the avss is concerned they stand unon the
iootog as note no, due They are / available
- inc holder III he have time To present tber 10
inc osL Issuing them for payment and ths svno,s ~
usnsu lung them equivalent TO the exchange dsdnc,ed
On oeouhted bank paper payable At distant nIsce
sucn uncurrent bank bills al less than ,hs to
may be properly termed discountipg tha ~ tne ace,
them alta" discsuut" Such IL the 1ans,s,o sAlng
IN me complaint to denote such deduction The 9o1S
Discount 10 alsO used in the same .snsa a. 81
ton of The "sct relating to ihs redemojoa s sec
notes passed May 1870 and in the An .econ oS TIE
ac 10 amend the several acts relating incar ,orated
banks, banking associations and individual b,pIsrs
passed april H. ISL | think the Transactions CON.
planned OF were discounting within the language and
NEAR ing OF the statute. N
There can be no doubt that the description of paper
permitted 10 be discounted L. broad enough 70 include
bank bills Even II limited Specification 10 be given
10 bills meaning bills of exchange and 20 notes"
as meaning bank paper on tne-to which do not as
sent-the other clause Wig "other evidences of debt"
Is too general to admit Of question bank Is author
70 discount any evidences Of debt There s nothing
s statute showing any intention to distinguish be.
",.. paper on demand and paper on time On the
sootner statute on the subject of banking has
.a ~ 'n, the term evidence of debt shall be con-
CO.. ~ embrace every written instrument or security
isaencs OF money, importing on its facs the ex
q rev: s@t, Sd ed, 73l, S67) - O'-'' ""e'
.hs.s - ng IN the argument 10 saw that the mr.
sso VI unc9rrenf bank notes has gsne,.n $50
sSs. ,s O brokers' any more than il weuld 10 srsns
s,,,n.. 49, o1e OF bank paper on time w.s no, Ia,
siinate BANK business. because Il had been . no'
~ lacvidsaa The question Of power Ss.snS,
'a1fs'y On The statute, under which, IsSiaS Ssss.