Weekly North Carolina standard. [volume] (Raleigh, N.C.) 1850-1858, 1852-03-03
THE BANK. CASE.

.e.... ~.z THE BANK CASE. 'a. :..s 7.-rs.,
= The last Register contains the opinion Of Chief
Justice Ruf6n, in the case of the Bank OF the Snss
against the Bank Of Cspe Fear, in which i, is held
that the act of the last session Of our S.ts Eegis-
lasore, making notes rsdeemabIe At any Bank It
which they may be presented, withou. reference TO
the point Of issue, s neonsiitational: Thsaot m.y
be found on page 81. Of the acts of last ssssioa.
The case 10 thus stated by tho Chief Jastics:
This is assumpsit on Bank Note for 4lOO, da.
ted October lst. 1874. and payable 70 P. Rand Or
bearer on demand at the branch bank Of Cape Fear
at Raleigh: pleas, non assumpsit and set off; and
case agreed was submitted to the Court the follow
ing effect: The note belonged to the principal bank
at Raleigh, and the Cashier, through notary public,
presented at the the branch bank Of Cape Fear at
Raleigh on the 2lst Of March, 1851, and demanded
payment. and the Cashier Of the said branch bank
then offered in payment two bank notes for $50 each
issued by the plaintiff and payable on demand, the
one to the bearer at the plaintiffs branch bank at
Milton. and the other to the bearer the plaintiff
branch bank at Wilmington, and he refused to make
payment in any other way. The plainsiff's Agent
refused TO accept payment in that mode, and this suit
was then instituted. The Superior Court gave judg-
ment pro torna for the defendant, and the plaintiff ap
pealed." "', .''..,'
The Chief Justice, after discussing at some length
and with marked ability, the rule of Common law as
applicable to the subject comes the main point in
volved, and says:
The defence, however, 10 not founded on the
Conmon law, but upon act passed at the last
sion of the Assembly, entitled '' an Act in relation 10
exchanges of notes between the several banks of this
State" Yet, the discussion of the rule at Common
law not the less needful, in order to proper
derstandng Of the nature of the contract constituted
by notes in this form, and of the operation Of the sta
tute, if be sectual. Its principal provision is. that
when bank or its branch presents for payment
note of another bank the latter may pay it's with
note notes Of the former, without regard 70 the
place where the same may be payable. 1t is clear,
that the case before the court is within the act, and
that the question s. as to its validity. With all re-
specs to the Legislature and every disposition to
~ out it's will. if reconcilabie with the fundamental
law, the court is nevertheless constrained to declare
this enactment be plainly contrary the cons,itu
ton of the United States, and therefore imperative.
10 both upon the ground, that the act violates
provision Of the charter to the plaintiff, aud upon the
principle that interferes and violates substantive
provisions of the notes Of the two parties
be done with respect to the contract of cor.
poration than that of natural person. For the
supposes it to be clear law, that corporation 10
like an individual bound by and may take benefit Of
the general laws where it is within the reason of them,
unless there be particular notifications in the chart
ct. 1t is no, doubted, for example, that bank is
within the statute avoiding usurous contracts, though
no restraint, the of internst it may take, be
expressed in the charter. For while there are strin-
gent prohibitions against oppression on the needy by
indvi, uas with their limited means, much more must
it be supposed to be contrary to the Legislative in
ten,on. that banks with their large assocaed wealth
and the power of making the demand for money easy
OF tight, should be without restraint upon their exac.
tions borrowers. The charters, indeed. usually
prescribe q rate Of interest or discount. But such
sh>Sp in fho
on the bank of change Of the rate or interest by
subsequent general law, in and making the corpora
iion amenabIe the State for violation Of it's char
They do not affect contracts With the banks be-
cause there is provision in them for the avoiding
those which greater rate is reserved, but that 10
left entirely 10 the general law"
The Cour, directed the judgment Of the Superior
Court be reversed and judgment to be entered for
the plaintiff, for the principal money and interest from
the day of demand.
The decision of the Court, it will be seen by the
following extract from the opinion of the Chief JUS
tce, also affects the issue of notes by any Bank in
the State under the denomination Of three dollars:
l. seems certain, that the general statute prehib-
ting the passing Of notes under particular denom-
nation applies al we'll to corporate natural persons,
unless there be provision in the charter express or
plainly be implied. to the contrary For the pro-
h5i,ou is founded on legislative policy TO encour-
age the circulation of metallic coins BY preventing
the issuing and passing Of sDaf notes here and
the reason of the law extends quite much
to banks as other persons nay. more, since they
can most effectuaIIy defeat the public policy. In
such case therefore, the general law applies. unless
j, be modified by plain provision Of the charter. Its
silence cannot have that effect since that allows fa'
scope to the genea law, and therefore the exemption
from the general law must distinctly appear in the
charter
The only Bank in this State which has, Of late
years. issued notes under three dollars, is the Bapi
of Fayetteville. The charter OF that Bank 10 s'Ien
on the subject-there is no" exemption from the gen
eral law " referred to by the Chief Justice.
MoRrALlrY IN FLORIDA. 1t Is an interesting fact