The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1870-04-11
sUPREME COURT DECISIONS.
Effect of n Note Executed during the
War, Payable in Gold.

Effect of n Note Executed during the
War, Payable in Gold.
Held. that a note payable Sin gold six months
after the present war with the United States Is
ended, with Interest," "nust be enforced accord
ing to Its terms, and that the terms OF the ordi-
nance of 1866, allowing the true consideration OF
contracts to be shown in evidence, is inapplcable
to such contract"
Simpson Bobo rs. II. L. Goss-Supreme Court.
oPINIoS-MosEs, CHEF JUSTICE.
This was writ OF error to the Circuit Court for
the District OF Union.
Tile plaintiff sued the defendantas as one OF the
makers OF sealed note, OF Which the following is
copy:
''We, or either OF us, promise to pay to Simpson
Gobo, or order, six hundred dollars, to be paid in
gold six months after the present war with the
United States is ended with interest from the 18th
Of December last, to be added to the principal
annually. AMI bear interest until paid. Witness
our hands and seals November 81, 1863"
The pleas were nil debe., depreciation Of con-
sideraitol, payment and discount. No testimony
was offered either to the plea OF payment or that
OF set-or.
From what we can gather from the report OF
the presiding judge, it appears that evidence was
introduced to show that The consideration OF the
soclation, amounting to the principal sum cX-
pressed In the note; that the said company was
incorporated by the State and under Its charter,
It's Issue was restricted To basis founded on cot
ton subscribed, not to exceed the rate Of six
cents for the said notes, to be redeemable In geld,
six months after the removal OF tile blockade.
(Acts Of 1851, p. 46. That, although they were OF
no vaae at the time OF trial. they were ut tile
date OF the note worth fifty per cent. more than
Confederate money.
The Judge held that the contract came within
the purvieW Of the provlso OF the fourth section
lrnp Nf fnn rnnf In n
1855, entitled IAN ordinance to declare In force
the constitution and laws heretofore In force In
this State, and the acts. official, public and pri-
yate, done, and appointments anu election made,
under the authority Uf the same" and charged
the jury that they must reduce the amount ap-
pearlng by the face uf the note TO be due to the
standard Of the value OF Confederate money at
its date
Conce.iing that the ordinance had any applIca.
tlon to the contract as made between the parties,
the Judge assumed the right to determine its
''value," when, by the terms OF tile ordinance,
the case being on the law side OF the court, ~
verdctn was 10 be "rendered'' which should
.elrect substantial justice between the parties"
The end was TO he attained by the Introduction
OF Testimony showing the true value and real
character OF the consideration" The conclusion
to be drawn by the jury from the facts proved,
but they were precluded from considering the
effect OF them by the instruction OF tue court,
that they must rcduGe the amount OF the note te
date.r Thus leaving nothing for them to pass
upon, but the execution OF the instrument.
The purpose OF the ordinance by the provso re-
ferred to- was to allow parties to contracts enter
ed into between 1st January, 1862, and 18th OF
May, 1866, during which periods war existed be-
tween certain COnlederated States OF the Union
and the United States. the opportunity OF show
lug where the term dollar was used hy them, that
1t was not intended to designate or refer to the
coin denomination, Du. to the only currency then
circulating within the said Confederated States,
representing dollars, to wit: the notes and bills
issued by the said States.
In the case OF Rutland w. Copcs, Richardson
15 ST. the Court OF Errors held that the said ortl-
nance was not in conflict With SO much ol the 10Th
section OF the first article OF the Constitution oil
the United States a5 prohibits State from pass
Ing any law lmpairng the obligation OF contracts
Tile Supreme Court OF tile United States, Ia the
late case Of Harrington vs. Smyth, In WHICH the
opinion was delivered 10y the Chief Justice, held
that evidence could be received to prove that
promise expressed to be for the payment OF dol
lars was In fact made for the payment OF any
other than lawful dollars OF the United States
and In effect adopts the language OF the ordl.
nance, that 'such testimony must be received IN
order that Justice may he done between the
parties.i
How could the maker Of the note claim that the
plaintiff was duly entitled TO the payment OF SO
much In gold or United States currency as would
represent the amount due upon the note, ana
promised by him to he paid reduced to the value
OF Confederate money ut Its date when the con-
Sideration OF the contract was mol Confederate
money, but was the loan Of bills OF an incorpo-
rated company issueI on basis OF cotton Ut SIX
cents per pound at the time pledged FOR their
redemption?
Such money could not have catered into tile
clements Of the transaction.
In what we have 50 iar said, we have regarded
the note as il expressed to be payable IN dollars.
Even II the ordinance was intended 10 operate on
an understanding to pay 50 many dollars III gold,
yet as It's declared purpose was TO secure ''such
verdict or decree will effect substantial Justice
between the partles," any verdict finding less
than the true amount for which they had express
ly stipulated wou full far short Uf that measure
or substantial justlcen which they had establish
ed for themselves, and by which they had agreed
10 be regulated, by the very language of their
contract. As II to preclude all doubt as 10 thclr
Intention, that the amount assumed by the note
was not to he satisfied In the only currency then
circulating In the State, they expressly set forth
that, when due, 1t was to be paid III gold. ~ re-
fuSaI TO pay In gold would be breach OF the
agreement, and the defendant must he held 10 Tile
performance Of his undertaking, unless ne can re.
iieve himself by some defence other than that inl-
piled by hi; plea, ~ which alone any testimony
was offered.
Tne cases OF Brunsen, executors, vs. Rodes,
Wallace 4229, and Butler VS.. HarwitZ, lbii, 2oS. 10
which reference has been made by the piaintlI
counsel, dU no more than hold that where we W.
tent ana understanding OF the parties when they
enter into q contract are asceriaineu IL must oe
enforced according TO such intent and understan-
ding and as In the said cases, all the circumstan-
ces attending the execution OF the obligations
sought 10 ue cnlUrceU, cSluOlSheu Dey oHu ulspule
that they were to be paid In gold, Satisfaction
could not be compelled in lcgal-tender notes, OF
anything but gold.
and the cause renanGed 10 the Circuit Court,
with instructions to issue reniIe hdctdS de moro.
A. H. G5ruhams G Co. Us. hhe southeastern
R0i,roud Rank.
OPfNI0N-NUSES, CHIEF JUSTICE.
The plaintiffs LETT with defendant the bills
of lis own bank as security for the like
amount Of Confederate Treasury notes receiv-
cd bY them, ami 10 be returned in eight or
ten days. when the bills SO left were to
be restored to the plaintiffs. llel that the trans
action amounted ~ Il pledge or pawn. The re.
fIlsal hY the defendant 10 deliver on demand;
within The limited tine. the bills 50 left anu ac
cert in Confederate Treasury notes the amount
originally received hy !laintns, Was presuLnptive
evidence OF q conversion. an assertion ol rlsht
inconsistent With that Of the owner to exercise
dominion over his properly Is conversion. IL
made 10 difference that the TRANSACTION was WIFI
q bank. 1t was dealing outside OF It's Ordinary
routine of business, and II is bound IL loss cnSues
from its tortuouS acts. The same prlnciple Whlcn
would apply If u watch or Jewel had Dcen SO leit
with the bank applies to bank bills thus lei'.
e>-HE>
The statistics for the year ls6S-lsG9 OF the
schools in England under charge OF tne gov
crnment show that there were l.GS5, lGS chll-
dlen on the rolls, Of whom 4?9.2l5 were under
and 1.255. .953 over six years OF age. VI those
who were over six years Of age, I47 ,S98, or
about 593 per cent, were subjected to an e1-
animation into their requirements by the gov
n,,,,on+ educational inSnpctOrS The nUmUer