The Hillsborough recorder. [volume] (Hillsborough, N.C.) 1820-1879, 1852-03-03

u 80 - s@eef"t #"t-eA
t1at the usaker Is not boahd d psg the1
glti PFesfated al tke place, u6efs the
are expressed to BE payable. An
thers i - ground Or : distinction up
sn this Ponf bets1<a notes uzds by
natural pers3 add those made by
leorperaties- The reason Is ned les
applicable to bills q an incorporated
bank pssabse en- demand az dineren
branches; shich Ger purposes Of local &C
Communication die Law general require,
70 be established upon shares. Of The
capital adequate 10 meet the notes il,
ssued ~ Ire respective branches. 10 res
pert 70 which ppnetuaIity is Of the ut
most consequence 10 the public and is
usually enforced underheavy penalties.
Every one knows that no individual or
bank can al all times andgeFeryxhere
discharge al outstanding liabilities,
due aud not dee; which would make
credit useless Then, each punt Of A
banking institution having branches,
has It's own liabilities and must have
its own resources and il can only iul-
ill its engagements ia the public, when
left to mango its own fsads without
Experimentation the law. If the funds
appropriated 10 the business at one
place, instead Of being left for that
purpose may be daily diverted there
from At the pleasure Of the holders Of
thr notes Of every other part Of the in
stitution. IL would be manifestly impos-
sIble for the bank and its branches to
meet their notes for any length Of time.
IL v therefore apparent, that the pro-
visions In the notes that they are paw
ableon demand at the several branches,
Is Of their essence; and consequently
there Is at common law no liability on
such a note but for not paying il when
demanded according TO its tenor.
3The defence. however. h no, Funded
on the Common law, bnl upon an ac,
passed Al the last session OF lle Assem-.
bly,. eniItled and Act In relation 10 ex. |
changes Il noies between The several
hanks ofthis State" Ye,, The discussion
NJ The rule al Common law wa. no, The
less needful. in orslrr to 4 proper under.
standing of The nature nc The contract con- I
'iiinied by nmes In this firm, aud Of The
operation Of The stature. IL il he efTecmaI.
lis principal provision is. thai when a
oank orils branrh presents f,r payment 4
note ofanniher bank. The lailir rnny mar
Is note with note or notes Of The former
without regard 10 The place where the
'sme may be paysbie. Il is clear. that
he ease before The court is within The aci,
md That the cushion IL. as 10 lis validity,
With all respect TO The Legislature and
very disposition TO carry cut lis will, il I
econrilshle with the fundamental law.
ne ronrt -. nevertheless. constrained ~ I
eeiare this enactment 10 be plainly con.
rary TO The constitution of The Uniied /
'iales, and ,hereG're imperative. Its so q
olll upon The ground. that The NC, yio. b
lies a prosision uf The charter 10 The Nj
ls'nIif, and upon the principle, iha, il d
l'erieres with and violates Substantive s
rovlslons Of The notes of the Two par,ies q
which can no more be done with re- d
peel TO The contract of corporation than |,
LAT ri a natural person. For the cour, b
opposes !, To be clear law. that a rorpo. p
''ion IS like an individus. bound nv and d
'ay take benefit OF The general laws .
here ~ u within The reason III Them. I'M. a
IS there be particular notifications in a
e charter. II is not ,louhied, for OK b
npie. thai bank is within The statute b
foIdirg nsnrious contracts. though M b.
slfaini, as 10 The rate of interest il NAV 6,
kr,be expressed in The chalier. For le
lile there are stringent prohibitions a. al
,ns, "ppression IN the needy by indi, IN
luals with their limitrd means, much b,
nse mus, u he supposed 10 be- contrary G.
the Legislative inienIion, tina, hanks Fl
~ their large associair,l wealth and The "
'wer of milking the demand Tor money of
~ or tight, should be without resItain, "
on Their exaclions on borrowers, The dc
ar'e,s. indeed. usually prescribe a ra,el. ,
interest or discount. But ch clauses We
re their operation in preventing The rf. If
! on The bank of a rhange .f The rate or N,
crest by. a subsequent general law. de
IN making the computation amensbIe
he State Tor viulsiion Of lis charter.
ey 90 not afF'cf contracts with the
'ks, because there is no provision IN ~
m Tor The avoiding those on which i
il'er rate Is reserved. hut thai is Ief, en-. iie
" 70 The general law, Another in va
zee may be stated. II seems rer,ain ma
the general statue prohibiting The ION
sihg OF noies Under particular de. ilk'
n'naIIon' applesias well 10 corporate as ni
'Fal persons. tinless there be provi. 70
!. " Tie charter express Or pIainlv IL TIA
Implied, 10 the contrary. FIR, the real
hlh'l'"n is founded. on a legislative tho
cy To encourage the circulation of me. tfnf
2 ceinsiby preventing the issuing and tlnc
'ing Of small Roies here, and there, con
The reason of The law extends oai,e The
,nrh TO banks as TO ulller persons; par
more. since they can most elIec,nal. and
ieieAt The public policy. In such : y 4
! therefore, uic general law applies. read
S. y be modified by a plain pr.,s,si.n Fare
e charter. It's silence oanno, have an ,
effect since that allows full scope 10 our
Tenr raj law anil thnrDf.,. "a. EARL