Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1867-01-12
Onion aud dispatch.
SATURDAY. JANUARY II, 1867.
SUPREME COURT DECISION.
knoxville. Tenn, September Term.
1856.

Of the peace, and was carried by appeal 10
the Circuit Court Of the county Of Granger.
The action Is founded on q promissory note
for 800 the consideration Of which note
was loan in Confederate treasury notes.
On the trial OF the cause, the Judge
charged the jury in substance; " II the
plaintiff in error borrowed Confederate
treasury notes. knowing at the time what
be was getting, he would be liable for the
value. and the defendant IN error was
entitled % recover 20 thai extent 4
verdict and judgment was rendered for the
defendant in error. A new trial was moved
for and overruled, and an appeal taken to
this court
The question presented for our deter
minati0n is, are Confederate treasury notes
a legal consideration, and such as can be
enforced in a court. For the proper con-
alteration of this question, it becomes
necessary 20 examine into the history, OBJ
iects and purposes for which these notes
were issued This court will take notice
Of the attempts Of this State, with the other
Southern States, 20 withdraw from the Fed
eral Union and 10 throw of the allegiance
Of the citizens Of the several States Of the
United States, and IL Is part OF the history
Of the country. a confederation Of States
was formed and a government organized ;
that arge armies were placed IN the field
in hostility 10 the government Of the United
States; that these notes were issued under
the authority Of that government and put
into circulation as the representative mo-
ney as a substitute for it TO perform its
functions by becoming the medium Of cir
culation. and were issued in denominations
Of from s. 10 81 900, and were in the fol-
lowing form
Six months aner the ratification Of a
treaty Of peace between the Con federate
States and the United States, the Conlede-
rate States Of America will pay -- dollars
to the bearer on demand Dated Rich
mond, Va, 1862.
The tenth section Of article lst Of the
constitution Of the United States provides
no State shall enter into any alliance or
confederation, coin money or emit bills Of
credit, etc, etc.
The notes on their face purport 10 have
been issued by a confederation Of States, in
direct violation of the constitution Of the
United States; they are Of the nature and
character of bills Of credit as defined by
the Supreme Court Of the United States.
In the case Of Craig vs.. the State Of Mis-
souri,, in 4th Peters, 40, and Briscoe vs..
the Bank Of Kentucky, llth Peters, 2j7,
in which cases the court defined "hills of
credit TO be paper issued by authority of a
State, and designed to circulate As money,
and were within the prohibition Of the
constitution.
The constitution of the United States
was framed by men who were familiar with
the facts ard causes which led 10 its adOp-
ton. The government Of the old C0nted-
Grafton was formed during the period OF
the revolution, and grew ont Of the exigen-
cies Of the times Il was designed to pro
tect the people against the common enemy.
All rejecting men saw the evils attending
such q union that IL was wholly Insult
cient TO promote peace and security and
provide for the general welfare To avoid
the evils patent to every observing mind,
the statesmen and patriots Of that day
formed the present constitution. The
reasons that led 10 IL cannot be more lOrCibly
expressed than in the preamble Of that in
strument I'VE, the people Of the United
States in order to form a more perfect
union, establish domestic tranquility, pro-
vide for the common defense, promote the
general welfare and secure the blessings OF
liberty 20 ourselves and posterity, do or
dain and establish this rs the constitution
Language cannot be more impressive or
stronger. This was the act Of the whole
people, and in its adoption it became the
charter Of their liberties and the permanent
law Of the land. Any Law or act done by
the people, or a State, in violation of it is
absolutely null aud void.
They were expressly prohibited from
entering into any alliance or confederation
The trainers Of the instrument knew the
evils of such alliances or considerations
To permit il would end in the destruction
Of the government, and it was sedulously
guarded against. We have seen and fell
the terrible consequences growing out of q
violation Of this provision of the COnstitu'
ton. The issuauces of these Confederate
treasury notes was the act of this COniede
ration of States; they were issued for an
unlawful and illegal purpose, that Of levy
ing war against the government and invlo
lation of the constitution, and are there
fore reasonable, illegal and utterly void
IL is insisted, the illegality Of these note
consisted in putting them into circulation
by an illegal organization for an Illega
purpOse; that the act Of forcing them "a
| der the stress Of legislation and arm
could not be resisted at the time; that th,
I act of using them for innocent and Lawful
purposes are acts that do not fall under tht
same rule of law; that the principle,
/ they were issued for any unlawful purpose
| should not apply when they passed int
the hands of persons who had no agency
/ IN putting them into circulation. And il
support of this position, Story on conhic
Of laws ia cited, sections 24S and 249,
" The principle of illegal contracts atte
/ the illegal act, ifthe new contract is WHOLLY
unconnected with the illegal act, and i
| founded on a new consideration. and Is no
a part Of the original scheme, although i
may be known 20 the party with whom tn
/ contract is made, il will make no difference
! that such new and independent contract
made with the person who is the contracto
/ OF conductor of the original illegal act,
/ &c is wholly disconnected thereirOm; ior
/ new contract founded on a new consider
alton, although in relation TO property il
! respect % which there has been prior IN
! lawful transactions between the parties, /
/ not in itself unlawful" We admit th
! principle as correct, but it Is not applicable
/ 10 the case under consideration.
The principle stated By the learned iurist
4 applies O. those cases when the contraC
relative o. property was made I'm contra
/ yentlon of some rule of law. and the pro
| perry passing into the hands of thiu
| parties, was not affected by the origina
| illegal transaction In the case of Arm
] l. d. 80 4 D
the defendant the same principle was re
cognized The court say, mo- action lies o
any contract the consideration Of which
either wicked in itself or prohibited b.
law; but if the illegality is not the con
siderutiou Of the contract, and IL is entirol
disconnected from il, the contract is valid
though the occasion for making 10 arose on
Of the illegal act. The same principle WI
recognized hy this court in the case Of Oh
Ohio Insurance Company vs.. the MeI
| chants Insurance Company, I'M nth Hun
| VhTev's. 10. In the case under considers
lion She illcgalItv consisted, not only !
issuing and putting into circulation a Cu
rcucy, the object Of which was 90 aid Oh
enemies of the government, hut every IL
dividual into whose hauds the note passed
knew the object aud purpose for whic
they were issued by receiving them as
circulating medium and In passing them b
was doing an Illegal act, and 90 that exter
gave aid and comfort to the enemies of th
government, and was not disconnected wit
the original purpose of issuing them. I'll
note in suit IS founded upon this illeg
consideration The defendant knew III
purpose for which these Confedcr1
treasury notes had been issued, and q
consideration of This note b. therefore illeg.
and utterly void
The case of Orchard Vs. Hughes.
| Wallace, 13 is cited and relied upon by q
defendant IN error. as an authority control
ing the principles in this case. In th