Saint Paul weekly Minnesotian. [volume] (Saint Paul, Minn.) 1858-1859, 1859-04-16

sum the money would have brought its owner
in rent or interest, had it been promptly paid
at maturity;
4th-That in estimating this compensation
for money loaned, so as to measure the amount
of damage sustained, the interest up to matu-
rity, for which the note was originally drawn,
and reciprocally agreed to by the parties, shall
continue to be the rate of interestuntil payment
is made or judgment is rendered; and
5th-That stipulation to compound inter-
est, or pay interest on interest, made before
the interest was due, cannot be enforced.
All three of the Supreme Judges concurred
in these decisions and positions: except, that
Chief Justice EMMEr dissented from the 4th
position, maintaining that the statute which
fixed per cent. per annum as the worth Of
money in the absence of written contrsc,
was the proper measure of damages.
Since the announcement of this important
decision, the last two days has witnessed
much excited discussion relative to its merits
anG its consequences. 1t certainly opens q
wide field for litigation; as it undoubtedly
also relieves tens of thousands from the ten
der mercies of five per centdom, which threat
ened to swallow up everything. The general
opinion expressed upon the merits Of the de-
cision is unfavorable to that conclusion OF
Judges ArwArER and FLANDRAu, the majority,
which is stated in the 4th proposition; as be-
ing an illogical deduction from their premises.
Judge ExMET's opinion as to the legal rate OF
| 7 per cent being the proper measure of dam
ages, is thought to be much more tenable and
consistent with the premises to which all three
had agreed. There being law in existence
defining what shall be the rate Of interest in
the absence of contract: and as the Court
decided the after-maturity rates not to be
portion of the interest or compensation in the
original contract; it seems as if the majority
had exceeded their judicial functions; and
were attempting to legislate-to make law in
stead of merely interpreting its-the very mo-
ment when they substituted variable meas
ure of damages not known to the Statute in
stead of the positive direction in its provisions
In this matter we conceive there is no half
way house of rest. Either the five per cent
or other over due rate, is part of the interest
contract. and therefore collectable; or else
it is not in which latter case, the same rule
undoubtedly applies, to determine the rate Of
interest allowable for damages, as applies in a
suit upon the penalty of a Bond: simply the
rate of 7 per cent. per annum, as provided
by law, are the damages collectable!
Whether we are for five per cent. or against
five per cent, all will agree that this decision
Of the majority of the Court, is but sort of
compromise-which is, indeed, said to be the
fact-and is not a decision throughout which
can be claimed to be based upon principle
that is carried out to its proper sequence.
We repeat, that it is an illogical decision /;
and we should not be surprised, if the major
ity of the Court should yet find it expedient
to revise their 4th position, and adopt the
Chief JUSTICES more consistent and logical and
legal conclusion. There is suit now before
the Supreme Court of the United States
carried up from our Territorial Supreme
Court-which, when decided, may affect the
future views of the majority. This is suit
on note drawing 8 per cent month until
maturity, without specifying any interest
afterwards. The Territorial Court decided,
that the note should bear the same interest
up to Judgment as it bore before it was due.
On this, an appeal was taken to Washington.
The opinion to be rendered by the National
Supreme Court, may possibly sustain Messrs.
ATwArER and FLANDRAU in their 4th position
or conclusion; but if it should turn out to be
the other way, as is most probable, prece-
dent is wiped away which is understood to
have had something to do in influencing them
to fix the original interest on the note as the
proper measure of damages after the note be-
came due, instead Of fixing it at the legal rate
of 7 per centum We shall see