Spirit of Jefferson. [volume] (Charles Town, Va. [W. Va.]) 1844-1948, 1868-06-30
THE VALLEY BANK.

es notice to the debtors of that institution,
residing in West Virginia. As many of our
patrous are interested in this notice, we give
its main poiats that they may learn what
course they are expected to pursue in the
premises. In his notice, Mr.. Faulkner says:
The notes due the various branches of tie bank
of said Bank in this State have been placed by the
receiver in my hands for collection, and my insruc-
tions are, proceed without delay to close the af
fairs OF that corporation i'll West Virginia.
lam authorized to receive the clrculatin e notes
of the Bank of the Valley par for the debts due
said Bank in all ca sea in which il can be shown to
my satisfaction. that the debtors the
OF said circua ting notcs'on or before the 10th day
of March, lab6. the date Of said assignment.
The 81 cuIa ting notts acquired by the debtors
since the I0ih day OF March 1866, will be received
by me their market value in payment of debts
due TO the Bank
Before proceeding re CONNIE need undcr this de-
of the Circuit Court OF the United States, am
authorized to receive fourth cash, and to give
credit at three four and six months for the resi-
due, the deferred payment 10 be satisfactorily en-
Gorscd
After proceedings have been commenced gainst
the debtors no proposition Tor a compromise VIII.
be entertained.
In all cnses where. satisfactory arrangements
shall not be made before the lst of August next,
the notes will be placed in the course OF collection
by due process OF law.
The action of the attorney, and the receiver
of the Bank, is based upon decree Of the
Circuit Court of the United States, for the
District of Virginia, declaring the validity Of
the assignment executed by the President
and Directors of the Bank on the 10th day of
March, 1866. This decree of the Court was
rendered on the 10th day of the present
month, Chief Justice Chase, presiding
Without expressing any opinion of our own,
or pretending to question the justice of the
decree referred to, we submit the following
comments upon the responsibility Of the bank,
which have. been drawn out by a case recent
ly in litigation in Southern Virginia.
The writer says by Sect. Is of chap. IS of
Code of 1860, "All bills, notes or other pa
per of Bank, signed by the President and
authorized BY the Cashier, promising or d.
recting the payment of money, shall be OBJ
lgatory on the Bank" transferable, if paya-
BILE to order, by endorscment-if to bearer,
By delivery. by Sect. 16, Though Bank
have a branch, all its notes shall be signed by
the President and countersigned by Cashier
Of the Parent Bank. al such notes q. c.
all the notes mentioned in both sections) shall
be rccetUcd in payment Of debts due to the
Bank, whether contracted at the Parent Bank
or Branch And by the charter, all such
notes are payable in specie, and the failure 50
to pay them creates a forfeiture.
The object of these provisions is most ap-
parent. They were intended to give strength
to bank notes, as Il circulating medium, by
making them payable in specie; and, in case
Of their depreciation in value Ga thing Of frc-
quent occurrence) to protect debtors to the
bank from oppression, by authorizing them to
pay these debts to the bank IN this mcdium,
Notwithstanding the depreciation.
The obligation of the bank to pay its notes
in specie, is by the terms of the charter, bind,
ing at all times-but by the same charter, the
obligations Of debtors to the bank are less
stringenr-thcse may be discharged by mates
Of tie Bumk. But for such express pruvi-
sions CT the charter, such debts would on
general principles be dischargcuble in gold or
silver only.
The acceptance of the charter containing
these provisions binds the Bank to conform
to them, and is a statutory notice to all the
world, that whereas the Bank is required to
pay all its notes IN specie, the debtor to the
Bank may pay his debt on more favorable
terms-i. c. in its own notes without regard
to their value. Whenever, therefore, the
Bank issues its notes or an individual becomes
Indebted to the Bank, the world has legal
notice OF the statutory character impressed
on EACH. G. it knows, that the Bank is
bound and always bound to pay its notes IN
specie, and the debtor authorized and always
authorized to pay his debt to the Bank in its
o1ca notes. And this character is impressed
on every note issued by and on every obli-
cation created to the Bank, as explicitly as
if every such note contained on its face
declaration that it should be paid in specie,
and every such obligation that it may be
discharged in the BnHk'S notes.
The right OF the debtor to the Bank SO to
pGy his obligation does not result from nor
depend on the doctrines and principles Of set
off, so as to be affected by the time of ac-
curing the set off, or SO as to be available as
against the Bank and not against the trans
ferrce, unless acquired before notice of the
transfer. 1t is, on the contrary, right
conferred by the charter, is co-existent with
the obligation itself, and follows it necessarily
into the hands of every transterree with or
without value, or without notice. When
therefore, the Bank transferred G's. bond to
S. he took it burdencd with this pre~existi@g
chartered privilege Of the debt, and, whether
he knew it or not can no more escape from
its effect, than could the Bank itself, if no
transfer had ever been made. Lyn0rartia
juriS nemiacp. ercusGt.
If it be said, that on the strength of the
decision in 10th Howard, the debtor May not