Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1869-01-07
CONFEDERATE CONTRACTS.
Important Decision of the Su-
preme Court Of Georgia.
contracts Of Citizens OF the Con-
federate States Payable
In Confederate Notes
Not Void.

made between two citizens of the lat
Confederate States, during the war, OIL
the 18th of July, 1862, payable thre,
years after date, the consideration o
which was Confederate Treasury notes
the only circulating currency at tina
time, and which was recognized as law
full by the assumed authority which haC
the actual possession and control oVel
the territory and people at the time the
contract was made u:
Held, That although the issuing o
such notes by the assumed Confederat,
authority, for the purpose of carrying OF
a war against the government of thu
United States, may have been illegal, q:
against that government and the citizens
thereof who, during the war, were under
the actual protection of that government
outside Of the lines of the assumed Con.
federate authority yet such contract
made between citizens residing within
the lines of the assumed Confederate
authority, in their ordinary business
transactions between themselves, and
having no connection with the prosecu-
1
is not an illegal consideration, as between
the contracting parties themselves, they
having made the contract under the
assumed authority which was then over
them and assumed authority whether
rightfully or wrOngfully is not now the
question: recognized the currency as
legal and valid at the time the contract
was made ; therefore, as between thu
contracting parties themselves the plains
tiff below is entitled to recover.
Held, also, that the contract in the re-
cord mentioned is not such a contract
made with the intention and for the pur-
pose of aiding and encouraging the re-
belliOn, as was contemplated, or is EN-
braced within the provisions Of the
Constitution of this State.
Judgment Of the Court below affirmed.
MCCAY, j., concurring:
l. A contract entered into between
residents of this State in 1862, of which
Confederate currency is the considera
ton, is not void. .-.--.
2. To sustain such 4 contract it is not
necessary to hold the Confederacy a
government de .fdctO in the technical
sense Of that term.
During the late war Confederate
money was in such universal use as a
currency in this State, that it was i'm
possible to transact the most ordinary
affairs without its use, and the same
public policy that for purposes of hu-
mainly and necessity, recognized the
Confederacy as belligerent will excuse
the use of Confederate money aud save
from illegslity a contract based upon it.
Though the issuance of Confederate
money for the purpose of carrying on the
late war against the United States was
illegal, yet a contract entered into be-
tween parties in the transaction of ordi.
nary business, with no intent on their
part to aid in the resistance Of the Cow
eminent, is not void simply because the
consideration Of the contract was Confede-
rate money. In general, a note given for
an illegal purpose is void, and cannot be
the consideration for q contract even
between parties who are strangers to the
contract ITSELF but under the peculiar
circumstances existing in Georgia in
1862, Confederate currency, though in
itself illegal, had substantial value from
the necessities of the case, and between
parties resident where that necessity ex-
isted, q contract of which it was the con-
sideration is not void.
Brown, c. j., dissenting.-The Con-
federate States in the late contest was
recognized by the government of the
United States, and by other govern
ments as belligerent power conducting
war, and the government Of the United
States made cartels for the exchange Of
prisoners with it, and it would seem that
this recognition carried with it the
acknowledgement Of its right to provide
itself with such currency as might be
necessary to enable it to carry on war,
which would be good consideration for
a contract between two subjects Of the
belligerent powers, when made in the
ordinary course Of business, with no in
tention Of the parties to aid the COfede-
racy to conduct the war against the gov.
eminent of the United States, and at a
time when there was no other currency
in circulation in the COnfederacy.
2. But while such contracts might, it
would seem, be sustained as between
subjects of the Confederate Government,
made while it was recognized by the
Government of the United States as
belligerent power, they cannot be en-
forced under the new Constitution Of this
State, which declares that "All contracts
made and not executed during the late
rebellion, with the intention and for the
purpose Of aiding and encouraging said
rebellion, or where il was the purpose
and intention Of any one Of the parties
to such contract to aid and encourage
such rebellion and that fact was known
to the other party, whether said contract
was made by any person or corporation
with the State or Confederate States, or
by corporation with natural person,
or between two or more natural persons,
are hereby declared to have been, and to
be illegal, and all bonds, deeds. prom
missOry notes, bills, or other evidences
Of debt, made or executed by the parties
to such contract, or either of them, in
connection with such illegal contract, or
as the consideration therefor or in fur
therance thereof, are hereby declared null
and void, and shall be so held in all
courts in this State when an attempt
shall be made to enforce any such cons
tract or give validity to such Obligation
or evidence Of debt. And in all cases
when the defendant or any one interested
in the event Of the suit, will make plea,
supported by his or her affidavit, that
he or she has reason to believe that the
obligation or evidence of indebtedness
upon which thu suit is predcated. or
some part thereof, has been given or used
for the illegal purpose aforesaid, the bur
den Of proof shall be upon the plaintiff to
satisfy the court and jury that the bond,
deed, note, bill, or other evidence Of
Indebtedness upon which said suit is
brought, is or are not, nor is any part
thereof, founded upon, or in any way con-
nected with any such illegal contract, and
has not been used in aid of the rebellion,
and the date of such bond, deed, note,
bill, or other evidence Of Indebtedness,
shall not be evidence that it has, or has
not, since its date, been issued, trans
ferred, or used in aid of the rebellion.
3. The constitution not only declares
the contract to have been and to be ille-
gal when the Confederate government,
in aid of the rebellion, issued these evil
dences Of debt to a citizen or subject of
that government, but it also declares
the evidences Of debt so issued or used,
to be null and void.
4. A bond, deed, prOmissory note, bill
or other evidence of debt, declared by
the constitution or by statute to be ille-
gal, null and void, whatever may have
been its market value, can have no legal