The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1857-10-16

1ns OxuS1 anoe Of the Judges OF enc Supreme
Court.
Everybody, we presume, except few vindic-
tive merchants, was we'll pleased to hear that the
Judges had decided that suspension Of specie
payments by bank involved no such thing as
insolvency, and that SO long as the banks be-
haved themselves so as to deserve continuance
of the esteem by the Supreme Court bench, they
might pay their creditors in country money, city
bills, shiDplasters or specie as they chose. Every
body, We FAY was pleased at this cutting of the
gordan knot; for what good would 1t have done
US, in the long run, to have broken up ali these
non-specie paying banks, to have had receivers
appointed and the concerns forced into liquida-
ton under the present pressure? Evidently
none; ard it was thoughtful and considerate
thing Of their honors to meet over the breakfast
table and settle that matter in the quiet imperial
way they did.
OF course when we come to look into the de-
cison legally there are points which nu.t stick
in the Threats of cid fashioned lawyers. Let
US pass over the convenience of the applications
for injunctions, which enabled the question to be
Brought before the court just in the very nick
of time: feigned issues have long bsen com
mon resort, when it was desired to take the sense
Of court CT any law point. Let us come
at once to the gist Of the decision, which is
that no injunction Deed be granted, and no
receiver appointed to bank which is solvent
though it may have suspended specie payments :
and therefore (the Judges assuming that our city
banks are solvent) that no injunction can be
granted or receiver appointed to them. This
strikes us es wonderful law and wonderful prac-
tice. How do the Judges know that our banks
are solvent? What evidence have they of the
fact, when no evidence WAS taken in the case?
How can they presume to decide how much of
the banks bills receivable viii prove worth any
thing at maturity? As to the dictum Of law
" hich is sought to be derived from the judgment
IN the case Of the North American Trust and
Banking Company, namely, that bank may be
solvent without paying specie, we hold that to be
very bad law, or at least, very inapplicable to
the present Gaze. The principle on which all
banks are established and endowed with especial
privileges and immuniies is that they shall be
great reservoirs Of specie for the public use and
on the express condition that they shall, when re-
quired 60 to do, give such specie in exchange for
their paper or other claims on them, they are
allowed to do-what is denied to the public-to
circulate as money their promises to pay. When
bank ceases to be able to pay specie, it ceases
at common law to be bank and can only be
saved from instant destruction by speedy rescue
at the hands Of the Legislature.
This we take to be the law. Their honors of
the Supreme Court view it otherwise; by some
ingenious process of refinement they draw dis
tinction between specie insolvency and paper in
tolvency, and decide tina. so far as this city is
concerned the suspension of specie payments by
the banks will not make the least legal difference
to their business. We can only congratulate the
banks on their good fortune in finding Judges not
only ready to interpret the law 30 manifestly to
their advantage, but willing to come forward in
the nick of time, and publish their decision, in
the shape of decree ordinance or imperial man.
date, and as warning to Unconditional fellows
not to presume to modest the banks.
Such decisions are happily rare-quitc as rare
us the emergency which called them forth.
Should we be so unfortunate as to be assailed by
famine this winter, and should the mob gut the
store of flour merchant, the merchants and
bankers would perhaps be taken aback by
merited sentence of majority of the Judges in
next days papers, declaring that such acts did
not properly fall within the purview of the
criminal code, and that distinction must be
drawn between robbery for astronomical and
robbery for lucrative purposes. We question
whether the Judges would go further out Of their
way to do more violence to the law in that case
than they have in this. 1t is however perhaps
all for the best.