Nashville union and American. [volume] (Nashville, Tenn.) 1853-1862, 1860-09-12
Uaury in banking OperaIions--An Impor-

At 20c.
Usury in Banking OperatiOns--An Impor.
tant Legal Decision.
Below WILDE found article the Brunswick o) Press
IN relation suit in Charlton county, which er
chants Bank Of a. party The transaction on which
This suit brought,
banks borrower the bank wants accommodation
upon condition Of paying exchange added to interest In the
present the Judge determined this exActon Of premium
FOR bill ST. usury. point which the de.
essn turns stated in way be clesry understood II the
paper PASSED to the BY defendant local. wouh
seem that too much interest charged; it was exchange
question raised whether the charge made
That question has been determined by the lower Court in the
Affirmative Asst hiss been taken to the Supreme Court much
interest will be felt decision Of there Another point
lied in defense goes the whole ground Of the
ton will presented Supreme Court The Involves
the question of tbs location the Of the law OF the branches
ofh Upon the WHOLE Of the most important
interesting mercantile community that has ever been pre-
sented undr the General Banking Law Of Missouri;
THE BAHKs-UsgRY--THE ABUSE or CORPORATE PowERS.-A
interesting point came up the Charlton
Circuit Court in of the Merchants Bank OF St. Louis
mis- was suit on note in the shape of what banks are
pleased to call bills and they classify as Exchanges and it
differ from local only the fact Of being payable the
Parent instead Of the Branch Bank Brunswk Thomas e.
Price ESQ., attorney Tor the Bank and R. H. Musser ESQ.,
The grounds Of the plea were that BsnE to take
than interest on notes having over one hun
ded and twenty days and less months
lowed to take reasonable premium on notes bills &C. pAya
cent premam in aden 70 seven per cent interest,"
amounting according the rules Of sper cent interest
the year fourteen per The defendant argued
the Bank Louis and not in Brunssck the Bank
and all its branches comprise but corporate body which is
located at the point where the note is payable
the plea 'ns piAn'--
Mr. Price, Bank fed exceptions, and it will
On the cause defendants attorney argued
Bank having entered into contract she had authority
to do the contract Vod and that Judgment must for de-
PENDANTS and asked the Court to declare the law to be that the
contract was void which the Court CysrTued and exceptions
On the first point strikes the demurrer properly over
ruled, for the Bank located in St. Louis have,
necesSar forty Banks in the State than the Cons
tuition either hcn Of the dilemma will be worse for
the Banks.
There other grounds which the defendants relied which
were not discussed the demurrer being oVerrued the n
exchange reasonable premium by the de-
csons of Supreme United sate has sd
the bill negoAf where made payable Upon that
ground alone the oect Everybody knows that
Words the Bank St. Loais worth more than in
on st Lois but are unable to furnish them At sny
price Take for instance five thousand dollars of Branch
the Of the Parent Bank st Louis and only
get specie for it at discount per cent exchange
the Branch would worth premium
least par the premium being unreasonable the Bank
guilty Of nsury Another reason is the premium only
cover for usury.
As to the point One question whether the
eral interest applies banks The banks have special in
crest law contained in their charters, which makes
the way OF penalty for its violation except the general one OF
loss OF corporate powers IL
In TINS connection only enquire the general
interest law apply where there has been violation Of
Allows contract for cent interest The tanks
according to their rules taking but nine per cent Now,
he general interest law has not been violated can have
And the grounds assumed by DEFENDANTS the only
applicable the Law Of England previous to the I'd
II, SO Henry VIII c. Elizabeth and p Charles
l. which renders the contract void the plea bar
. recovery OF both principal and i, terest. (
This is important QUESTION Banks still
important for the people The Banks having possessed them
elves OF the Fpece Of the State avng Yearly 1--WE millions in
heir vaults according the last July rePO must have their
iscounts in part cuar shape. Their require them
Of interest that would made five the
the state blush for shame They compound their
rOts three DeSa They refuse to loan at longer time
nan four months and shorter because the law al them
cent only and they hold continually the Of threatened
ishono protests and damages the heads Of their uckess
ebrS, while they have efectuAy of every other
,r accommodation, by absorbing the public capital