The New York herald., 1869-01-30
UNITED STATES SUPREME COURT.

The Floyd Accoptances-Their Amount and
BY Whom HeId-The Authority Of the Gov
ornmont 20 Issue Bills Of Exchnnge-ln
What Branch Does IL Exist and When II is
To be Exorciseds
Thomas W. Pierce us The United States; Ed,ofn D.
Morgan d co. %. the Same, ana Too Other Cases.
These are appeals from the Court Of Claims In the
matter OF the "Floyd acceptancesn Of which there
are outstanding In the hands OF various parties
$o7o 40o and which are to become valid and binding
or worthless upon the decision OF these cases, put
forward to test the questions involved. OF this
amount Pierce holds $4,000; q. D. Morgan Co..
0,O0O the Dover Savings Bank, $2o,ooo and the
Boatmans Savings Institution OF st. Louis, 900.
or the balance, awaiting decision In these cases,
Duncan Sherman Co.. Of New York. hold $40, 900;
the Shoe and Leather Bank, $4,000, end
Lucius Hopkins, Of New York, $4,000. the re-
mainder Is divided up among the banks all over ths
country, from Maine to wisconsin, the two largest
holders being the Bank Of Missouri and the Union
Bank Of Missouri each holding $4,000. The history
Of these acceptances u familiar to every reader OF the
public press Of the country. They mostly arose from
contract made with Russell, MsIors q Waddell for
the transportation Of supplies to the army OF the late
ns q Ss
made by the late John B. Floyd. as Secretary OF
War, and the acceptances were made BY him. The
ances in the regular course OF business and present
bona nae claims If the paper is valid as commercial
Sy BE-
at maturity. The Court Of CLAIMS held that such
we're sna q % 'ne socsn sCss bills ii
these existed In the department, and such usage
would be unlawful II II did exist; that the claimants
had actual notice that the acceptances were illegal
(being presumed to know the law), and, therefore,
stood in the position Of drawers that no decision
Of the Supreme Court authorized these acceptances
or made them binding. In argument Of the appeal
the claimants urge the following propositions =
Fiya-The United States, sovereignty, may become
Whspsosysr ,6sy b become party e biz O
government and mot through the legislative judicial
T1irdThe executive branch Of the government may
quires such se when trusts duties be
p ss use so aaa % x s any o Ssr
fS,stI-Ths fact that an authority may abused
used oi which there Is no proof In these casss an
Eq1-if Ellis OF exchange can he used by the executive
Of the % Y, any Gaze as are en-
less fraud their brought
the Knowledge and proes Of the petitioners Of which tho
sias-if the Esecavc can bills any contingency
sv and cannot be controlled by other branch OF tho
ssaa~T the principles which IS submitted that the
sapp rs Judgment
y s sss @ pc ss ae
This is especially true in relation puations which
Character II tacsc principles cannot sustained many
Of the government especially OF the executive branch,
and suppress resistance 10 the laws cannot be upheld
Finally upon the right legal and equitable,
principles upon which right petitioners depends
eorornmcni than they be 70 the petitioners.
on the part OF the government, the following pro-
positions are made IN substance
FirsThe OF War Is in a principal;
only OF the agents of the departments OF
the go.ernment with powers clearly dened and duties
eoai-The powers OF public agent Determine by
ance specific imposed upon such agents.
be construed In reference to hc design aud
f.iriThe powers OF public agent being
limited by law all persons & nctlns upon sne authority Q.
powers
al the bonds bills and notes issued by required by law
by the Treasury Department., the sole agency
under the law anhoIzed @ 70 perform those , fnacons
indebtedness be issued nor can any debt against tho
foow hsreore hat ps secetapy os war has no
authority ia virtue of his ofcal character 70 accept bills OF
riI-The issuing and use the bills OF exchange pre-
senied IN these for the purposes disclosed by this
sss.,-Ihese Instruments being Illegally and fraudueny
issued aud the appellants having notice thereof before
chase they cannot derive rights under them By virtas
Eight-Thesc Instruments void in the hands Of the
out consideration and also because their acceptance was
made by an sgcnt having no authority fr that purpose
Nissi-Thssc instruments being drawn and accepted by
agent OF the In his Official capacity
any agent OF The government n his oinca capacity drawn
thcre appropriation BY Congress for purpose
C.B. Goodrich aud Judge Black for the claimants,
and Attorney General Evars and Assistant Attorney
General Dickey for the government