The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1868-09-01
Mr.. ChamberIain's "Opinfon."
LAW OFFICE OF HAYNE & Son,
t.t No 90 RpoAD,erprr,r

CHARLESTON, s. c., Aug. 20, 1868.
I find in yesterdays Courier, Mr..
d. II. Chamberlain's "opinion in
writing as 10 the legality OF bill to
close tho operations of the Bank of
the State of South Carolina. Mr..
Chamberlain states that this opinion
is given by him as Attorney General
of South Carolina, in response to a
resolution of the House of Repre-
sentatives, adopted on the 22d in
slant. !.
In the case of Dabney, Morgan &c
Co. Us. The Bank of the State of
South Carolina, ct al, pending in the
Court of Equity, for Charleston Dis
trict, ! represent not only the bank,
but, with others, the house of Barring
Brothers & Co., of London, repre-
senting the fire loan bond-holders in
Europe, and portion of the fire
loan stockholders in America, and in
addition, as q party to said suit, I
likewise put in an dns,cer as Attor-
ney- General of the State of South
Carolina, and, as such, represented
the State Of South Carolina.
Mr.. Chamberlain opinion comes
in direct conflict with the positions
maintained by me in these several
capacities, and may perhaps contri-
butte towards acts of legislation
which, if adopted, will affect injuri-
ously, or ut least embarrass, the
clients whom I represent. will be
pardoned, therefore, for publishing
some remarks in reply to the elabo-
rate argument of Mr.. Chamberlain.
For the purposes of this reply, I
will suppose that Mr.. Chamberlain is
Attorney-Genera de jure AS well as
de facto, and I will suppose that the
Legislature now sitting has all the
power and authority appertaining to
the past Legislatures of South Caro-
lima; or belonging to the Legislatures
of any of the old 'THIRTEEN" which
have NOT been subjected to "recon-
struction," though it is well known
that all this is disputed by party
which embraces, undoubtedly, a ma
jority of the white people of these
United States. ButI deny "that the
State has, in the exercise of her
ordinary legislative discretion, clear
legal right to make such disposition
of the assets and property of the
Bank of the State as is now proposed
by the pending bill;" and l think I
can demonstrate that Mr.. Chamber
lain's argument does not prove the
proposition.
MIR. Chamberlain says that he. is
''in doubt" upon which "features" of
the bill "his opinion is desired" and
"confnes himself" to two. The bill,
as proposed, made O distinction be-
tween notes of the bank "6led" in
the Court of Equity, in the case of
Dabney, Morgan & Co., and notes or
bills mot fled" Mr.. Chamberlain
is silent as to this somewhat startling
distinction. The bill, as it passed the
Senate, made q distinction between
notes or bills of the bank issued be-
fore December 20, 1860, and notes or
bills issued subsequently. Why this
distinction? Mr.. Chamberlain is
silent on this point. If "honor and
good faith" do not require that all the
notes should be funded" why the
difference? The bill, as proposed,
ordered that all the notes of the bank
should be received in payment of
debts due the bank. This acknow.
lodges them as debt due by the
bank. If due by the bank, and the
obligations of the bank and of the
State are the same, how is it that
these bills are not binding on the
State?
Again, the bill proposes to repeal
the eleventh section of the Act of
supplies of 1865. If that Act is o
valid Act, it is statutory assignment
of the effects of debtor, to be held
by the bank as q trustee for the
benefit of creditors. The preferred
creditors have accepted the assign
ment. Such an Act thus accepted,
becomes contract. The Constitu-
ton of the United States prohibits
any State from 'impairing the obliga-
ton of contracts" Mr.. Chamber
lain's opinion does not touch this
Feature of the BILL" The omission
reminds one of the manager who pro-
duced on the stsge the play of Ham
let. with the character of Hamlet left
out. a
/ It is proposed that the Legislature
OF 1868, should repeal an Act of the
Legislature of1965, which, In express
tnst,ae sStaofa -, -; oh to IN parin n,