, 1873-11-30
AIN IMPORTANT QUESTION.
Can National =. Banks. Do Put Into
Bankruptcy a.:
Cont tinuation Of the Argument Be-
:,. fore Judge Blodgett.
Remarks Of Mr. Aver in Behalf Of tho
Manufacturers National Bank.

The argument on tho question ~ to whether
National Banka can DO put into bankruptcy waa
continued yesterday before Judge Blodgott. On
tho former argument, Woek ago, MeaAra.
Harding, Mccoy l. Pratt and Mr. Whitosdo
argued tho question for the potitioning credit4
ora Il. J. Smith d Co., and Judge Lawrence
opened tho argument for tho respondent, tho
Manufaoturers' National Bank. Mr. Aver,
yesterday continued tho discussion for the
bank. Tho question, ho eald, waB whether,
tho associations organized undor tho National
Currency act Of 1864 arc within tho provision o.
tho bankrupt law OF March 2, 1867. Tho ques-
tion IL entirely new, and very important In its
reaulte. Il tho Bankruptcy law has 1uriadio-
ton over National Banks, It Is strange that In
the six years that 1t has boon In operation tha
Court has novor been called on to exercise It.
From juno, 1867, to November, 1872, 2.oe1 Ma
t'onhl Banks hayo boen organized. OF
theao. 81 hayo failed and gono into
= Receivers hands, 98 gono into
voluntary liquidation, leaving 1912 still exist
ing Nov. /. 1872 It ia insisted that Jurisdiction
is conferred by Secs. o7, 80, and 10 Of tho Dsnk-
rupt act; that banks arc corporations, ,-moneyod
business corporations; that tho Bankruptcy act,
being passed 1ator, must override tho Currency
act; that tho word 'tbankor" includes bank,
and thns thcro aro dofocta in tho Currency aca
which can only be Allod up by tho Bankruptcy
act, :"
It is claimed now by tho bank that tho only
question is whethor. banks arc included In the
words " all monoyed, busineau, or commercial
corporations, and joint-atook corporations, !" as
uaed In Sec. 81. Tho word person might. by.
it's enlarged meaning, be made to comprehend
oYery corporation !; but 1t is submitted that, by
comparing the whole act, it will be clear that 1t
WAS not tho intention Of Congress- to include Ma
I. tionnll lBanks, and tho intention must govern in
all caaos whore It can DO ascortained.- &c Do Ge1.
II. and &. !, 46 Ill, 385, 4s Ill.,, 303, T. Rep q
Again, later statute will not repeal q former
unless repugnant lin tho very matter" utterly
inconsistent with each other. And an act con-
forring special rights or regulations will not bc
repealed by d later general statutes unleas tho
intention is manifest, and The implication ire
sisttb1e-6 Coke, 10 b., 60 Law Rep, 415. "a
ILL.,, G3.
Another rulo in tho exposition Of tho statutes
is, that tho general worda Of q stntute do not
include the government, unless such intention
DO clear on tho face OF tho act.-2 Mason, 314.
4 Mason, 427. ! Watts, I'll.
What, thon la tho real status Of d banking
association organ'zod under tho National Cur
roncy Act2, 1t IL moneyod corporation, and
aomotl hing more. Tho main purpose OF their
circulating medium for tho business OF The coun-
try, aid theso ultimately connected with the
Governments, like tho Old Unitod States Bank.
They Pre-. Instruments which the Government
has called into existence to aid in carrying out
Wallace, 393.
As such agents they arc. public corporations,
Of tho thirty.soventh section Of tha
Bankrupt aot How then eau they be declared
to DO nothing moro. than moro private businesa
corporations
Again, tho United States has not only broad
general interest IN Tho conduct OF the afrairs Of
the National Banks, but also a direct pecuniary
interest in overy individual bank. Ill are banka
Of issue, and tho Government has guaranteed
nrotat ao psym9nt s # sE p2'' soS and 0ree tor %
deposit Of bonds, and ouacted that it shall
have permanent lien on the general
assota. and reserved the rght to appoint Re-
eolyer!uader certain restrictions: These p1oyis.
tho aseots shall DO distributed in caae OF inaol-
youcy| arc, it is claimed, utterly at variance with
the Bankrupt aot, and it Is impossible TINT tho
two can DO tn force 1t tho same tfme,, The ques''
ton to be determined then is, whether this in-
consistont part Of the Currrncy act has beeu re-
pea1od by tho subsequent Bankrupt act.
Counsel for tho petttioning creditors take
af or Gaox ana anorIp p0 M5r, IN n a sa@ga @
section, saying tho Bankrupt act is the later.
On tho other sit!e, 1t is denied that these have
any application to National BnnkB-that 1t Tas
not the intention Of Congress tlat such should
be the case. Even though tho words might be-
applicable, no such intention ia clearly manifest
by tho Bankrupt nct and any implication is ren-
dered innposatble,' since by ysnpplementaryst statuos
tho provisions bf tho Currency act hare been
hold to ho in force.
Tho next point it, TINT tho Nntional Bankiug-.
system was organized undor an act OF Congreas
which, mado special provision for this class Of
corporationB, and tho ,systom il complete In
itsotf. It il not necessary that it should be por-
feet enough that 1t has moro than realized the
expectation Of its framors and proved moro ac--
coptablo to tho business community than any
other fiscal scheme hitherto originated Tho pri-
mary object Of oil Iawarelating to paper ourron-
cy ought to 10 tho safety Of the note-lolders, and
this is fully secured BY tho BANKING act, and tho
security to dopositors iH ali great as eau be OBJ
t tainod. deposit 10 required to DO kept, and
many restrictions. are made around its opera.
tions.; Congress has from time to timo pasAod
laws to better 1t, and, more than this, tie sya-
tenn has withatood tho nttncks Of timo and e1-
The argument was not concluded, as tho
counsel for petitioners hayo not got advanced
their most cogent arguments, but It will bo con.
tnued in our next-suuday's edition.
:. :; EVA nEsKEMASN's STORY.
Her nomnutio Marriage with