Evening star., 1868-02-10
An Imperial m, Bank Case.

The case of the Exchange Ban K of Virginia
III Tnnn oi.s USE Use OF George w amp unsies vs.
sers for H. r. Noss and others-on trial in The
Circuit Court here-ls OF great interest 70 the
people of this State. The main point in yolved
IN The case l. whether or not the trustee Of the
bank is Obliged 10 take from the debtors OF the
bank, the bills Of the hank, purchased after the
assignment, in payment Of their Liabilities.
Ihls question involves an immense amount.
probably not less than a million of dollars; and
NJ Is contended, on behalf o. the d-btors that
the section in The case which provides that the
banks shall receive lts own bills in payment of
debts due the bank. alludes ID the contract; and
goes with il into the hands of an assignee
ior value. At the time the loan was
made TO the defendants, they contend that fhs.
notes rendered in payment had been issued.
and the obligation Of the bank TO take
them in payment for such loan. formed a
part OF the contract, which IL would b. uncon-
sutuuonal TO impair by any subsequent leglsla-
uon. The notes rendered were issued aud i'm
circulation prior TO the assignment. and were.
oy legislative enactment Stamped with the
condition that they should be taken in pay
ment. The question presented. il il contendsd.
Is nef one OF debt and set of The law regards
The 1870 rendered as money, and the right TO
ss~>e<fsayment TO the banl in its own paper
arises out OF continuing contract. which cannot
De effected by legislation any act OF the bank
The defendants assert that at the time the as
sienment was made the assig nees knew the con-
dition Of the bank. and thar there was a large
amount OF Its paper circulating, and thai up
10 the date OF the deed the bank was receiving
Its clIculdtlOn In payments OF debts due IL
The defendants further contend that there was
sumcient notice TO the assignees of the rights
Of the holders of the notes, and that the as
slgnment was taken in subordination of these
rights. Ii is insisted on behalf of the creditors
of the bank, that under the act Of is6a re-
curing the bank TO go into liquidation for the
bene MT OF the creditors. pro rata, that the rus-
tee Is an assignee for value-and thai bills of
The bank, purchased after the assignment can
not be offset in an action upon the assigned
rates; that n this Was the case the purpose
OF the act would be defeated, and great INNS
uce done, as in that event the debtor would re-
ceive one hundred cents in the dollar for the
bills held by him-while other creditors would
get little or nothing: that the provision in the
code only applies 10 cases where the bank was
the holder OF the note. and was provided mere-
ly TO prevent circuity of action-for a. the bank
was Obliged 10 redeem its bills in gold and
silyer-the hank could not be permitted 70 de-
ny that they Were a legal tender-the effect of
which would be 10 force the debtor 70 present
the bills of the bank for redemption. aud with
the very specie thus obtained from The bank
pay HE Indebtedness 10 the bank; thar NJ the
debtor TO the bsnk who ysoefrss full value was
permitted TO pay his debt M fifteen cents in the
dollar, by which the trustee would be enabled
10 pay the creditor who had girea fun valne
only fifteen cents in the dollar-manifest in
lustice and wrong would be done. The case is
held under advisement by the court.-AIex. Cd
eff