New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1852-11-09

held nv the ycior a. crdscr Of he bank Ia the nsoSt
favorable view for the ccp'ainsn1, the trs'aon can
only be sustained upon the bread ground tina, ts $3.50
cai and al other banking corporations have the ri-ht
~ inciicuf 20 their asncss 10 trade in STOCK AMI ail
other personal property for cash. upon ere III anes
speedily forbidden by their charter, and hist Their con
tTacte whether IN the form Of post nO'es or oneris
are binding upon the association aad ia criiios
claim therefore 10 traffic in stock speies Oh pl
sonal property j. distinctly asserred by me FSr.ci
counsel FOR the com aiaarts under the iO1r'n s4o'
sion % biz fret point i,
In considering this propo ifou. L may be conceoei
that this association coui purchase s,ocAs 70 -
with the Controller security Tor nelr -. IS
notes, that they might invest Their srrpiI iuHio
them or lnsn monty upn them by way Of DISCOUNT OF
when received pledge and thai rs acone aehoe uSy
might lawfully acquire title To such seeuilJ, a.. :.
sold 10 enforce hen, or ~ groccs o. , An
obtsin sasfactiCn for debt due 70 me an
these pers are incident 20 the express power % con
ductthe business Of banking. JHey nave hu,h'l'J "
loan money, to become cre1iSDIs an -, tsc,c3
riebt 70 secure and 10 collect the dent mus
Tt an this Il very differ ent from an uninlne1 aniofy
10 trsc in stocks for any purpose winch me rcc'ors
might deem advantageous 10 the c0rporaLch
This association NJ the time al this transacu2h was
NOT seeking m invest their surplus capital for they rad
none but wac purchasing a means OF raiSng money
70 supply present exgency Ihey ana NOT al'cous
the Bonds OF Ohio, az was intImated on me argun'h,
for this in banking IL only mode OF loanlng money
They purchased them he whole arrangement shows,
az an Indirect means Of borrowing Nor did they o.
tain the bonde basis Of an exchange account, IN
the rebt 10 ACQUIRE for that purpose was gwen by the
18th section of the Inv Of 1893 because The stocks we're
held and the proceeds TO be applied 10y the vendor
uron debt due from the venGec according 70 the eX-
pIess terms Of the agreement In Word they plf-
chased ihese bonds they might have purchaser
cargo Of cotton 10 send to market TO be sod pr te TEX
Of the vendor for the highest price that coul he OBJ
tanned No authority TO traffic in either COMMODITY II
expressly given By the law OF 1875.
II IT, therefore claimed IA power ncifcnt 10 tlc
BURNERS Of banking But the 18th section Of me ' de
csrs that this business shall be carried on by discount
ing bile notes and evidences debt, by loaning money
on real ard personal security; by buying and selling
gold and sver bullion, foreign coin and bils Of ex
change &C The subjects pertaining TO the business Of
benkne IRE DESIGNATED and the express powers Of the
sssociaton limited TO them, and TO such incidental
powers mey be necessary 10 transact the business
thus defined ty the Legislature.
said that the special restrictions imposed upon
this corporation by the 2h section q the act Of 1888,
were limited 10 the purchase and sale of real estate and
that thf justified the inference that the Legislature did
not intend TO prohibit them from dealing IN stocks or
personal property
The argument amounts 70 this that corporation
strained by s charter from engaging IN one kind OF
business, msy legally embark in every other Tas az
sociation might have employ s funds IN shipbui ng
manufacturing neither of which s expressly prohiO
tied
The answer to this view is first that the absence of
restriction as % the empoymenfs Last mentioned does
not make them incident 10 the business Of banking,
which il the point to be established. And second, that
THE particular statute sms that associations organized
undeT IL tnhU DDNtIr ~ nbhN ut utD'-tf-
y to carry the business ior which they were incor
ported 49,, .,,.,.,s,.. ...... s.o.,,s
were inserted in all bank charters granted in this
State from 1891 10 1876 which il authoritative nd
mission that the general power Of banking would con
that of trading y stocks. view Il rather
oquivoca declaration by successive Leglafures tint
trading in stocks not in the language Of this act
"neces Dry 20 carry the business OF banking
they would not have prohibited it, Restrictive clauses
introduced into bank charters from an abundance of
caufioD nothing i'm favor of the COmDlaugufa
If trading in lands, stocks and merchandise il an in
cident Of banking, then the prohibition Yves operative
ard nee eesGry-if not then affirmative power ~ that
effect in respect to any OF Them cannot be inferred
from n phhition Of the others.
And finally the 18th section Of the statute OF lSj5,
copains an exr ress grant of power these ssocaons
",o deal in bullion foreign coin aud bills OF exchange"
in short authority TO deal in certain kinds OF personal
property and evidences of debt state stocks are no.
mentioned in the seton.
If the maxim ETpy6ssiO VHias, &r.; as the complain
ants insiei If applicable 10 prohibition, cerainy
should be 70 power, more especially when the course
oflesaon for forty years h1s denied ttat The power
fouRht to be implied Is either necessary or expe
dent to accomplish the purpose for which banks are
instituted.
we are referred to the 9TH section which authorizes
the Controller in his discretion change stocks depos
tied with him as security for othersand 10 the 18th
section which requires the bank, IN it. senlannuh re-
turn faie the shares Of stock held absolutely AMI os
collateral security specifying NE number ana VaIe o.
each recognizing the night Of the corporation TO hold
M owners stocks not deposited with the Controllers
There can be NJ doubt that they have su right
Stocks hypothecated or pledged as security, may be
cold in satisfaction Of the debt thus secured and pur
chased by the Corporation and so may Real Estte
and both must accordingly be embraced in the return
required by the 26h section. These Stocks mi yt be
exchanged with the consent OF the State for Stocks
pTeyiously deposited.
Again, the articles Of association OF this Company de-
clare that its legal existence shall terminate IN the year
two thousand three hundred and one. The locks by
them originally lodged with the Controller would PROB
ally he leJpemAbe the Oh four centuries
and if they expected continue bu n ass, they must
have the night TO substitute other stocks IN their place
and Of course possess the right Of obtaining them for
that purpose What is true OF this Corporation, would
be of sny other organized under toe same statute
hence the necessity for the provision in question.
The evidence, then, derived from the statutes, only
proves what has been denied that this corpora
ton aud every other bank may for certain purposes,
become the purchasers O! stock The proposition to
be established however, is the right TO traitc in them,
acquire them for the special object contempetet
by the arrangement OF the parties in this And
these sections think neither prove nor tend TO prove
any authority OF that nature II was urged thai tins
the case OF sn executed contract, and although
illegal the assignment OF the securities cannot be re
called or impeached by the receiver The certificates
OF deposit, it is true the agreement recitcs were
received in payment for the stock sold by Ono, and
the mortgage collateral security for their payment
But this Is not an executed agreement within the
meaning Of the authorities cited by the complainant
If the promise TO pay contained in tae certeale was
satisfaction OF the debt incurred BY the purchase the
compliments have place in court they have received
al for which they stipulated.
But they in fact seeking perormeucc of the pro
mise by means Of the mortgage assigned 10 that
u iormHnCc.
Io promise arisng from an Illegal consideration e
void ana the assignment which, by the terms o. the
agreement specifically made to secure the payment
OF the ohfcaes 10 void also. Ii mi hit well be
tended that note secured by the assignment Of mort
gage for gaming debt CT for money loaned II psur
Gus rate OF interest, a agreement executed
The couplanSnts claim title ~ the security through
The ILLEGAL and hy N 4 al.fu NJ and
independent agreement in satisfaction of IT, In such
eases, the maxim sssor cosdf1 dcfeadeHfis would
apply II the receiver represented the assocatiOn
elusvcly But he IL IN fac; trustee not only for the
stockholders, but creditors also-3 CONS K 49,
Without therefore, nouiring whether the certificates
Of deposit promissory notes and being payable
future day void under the let and Ssh sections OF
the Safety Fund Act whether the assignment in Tue
ZION made when the corporation insOlvent, or
in contemplation OF insolvency whether made
in the manner required by law, am, for the