Memphis daily appeal. [volume] (Memphis, Tenn.) 1847-1886, 1875-12-21

ing bond which is not propped by this securt-
ty. II was the duty Of the court 10 make such
provision in the ordinance putting in force
the enabling act, and without IL they never
acquired the power TO issue funding bonds.
Second-A power TO fund is not power TO
sell, but power to exchange dollar for dol
lar. such understand to be the meaning of
the decision of the supreme court In the case
OF Harrington %. the Mayor. Now, when the
council, By resolution authorized the issue 10
the parties named at sfxty-hve cents on the
dollar, IL violated the provisions of the ena-
bling act express and Implied; and IL dld SO
notably, so as to affect all holders since It ap-
pears on the face of the municipal proceed
ings, which are the titIe-papers of any holder.
The defense was made against all the bonds
that they were Illegally Issued and usuTious,
and that the holder, though bona Jide, could
only be protected to the extent Of the sum
actually paid by him. Both tn city alto ,ney
and had great confidence in this defense. II
was fully supported with reference to other
negotiable securities under like circum-
stances-by several adjudtcatiohs IN Tennes-
see in the palmy days of her Judiciary. And
these Tennessee decisions had been approved
and followed in many States, as New York,
Massachusetts,, New Jersey, Indiana, Ohio,
and lately in Virsinia, in case reasoned with
remarkable ability ia the Federal sup
RENE court and in the courts OF England;
But the supreme court of our State preferred
10 rest its conclusion on this point upon
dictum of the supreme court o; Iowa, and
upon its understanding of an opinion of
Judge Emmons, OF our United States circuit
court, whereby certain chattel qualities be-
yond those of commercial negotiable securi-
whereby they may be sold by the maker at
any discount, notwithstanding the acts
asainst usuTy; and contrary to the
not sell his own note st an Illegal
rate of interest. 1t is to be regretted that our
supreme court, at a time when other enlight-
sned courts, appalled, by the monstrous frauds
which nave been practiced upon cOmmuni-
ties, and which have brought many of the
cities and counties OF our Union to well-nigh
hopeless bankruptcy, are recedlng from the
extreme views heretofore taken, and are be-
ginning TO draw within closer limits this
power for evil, should prefer TO go still further
toward facilitating the further imposition OF
these heavy burdens upon our already over
burdened sn communities. t .. Bat while while
This question is not, however, finally dis
posed OF, and the city has yet the opportunity
construction of a statute, but decision on
commercial law-as also for other reasons. l
have drawn this communication to much |
greater length than l intended, but could
compass. In conclusion, l think much |
announcement Is to be taken from
itself, 1t Is in my opinion the harbinger of |
more auspicious results. think the city has |
now the opportunity to present in such form |
as greatly to lessen and shorten LITIGATION, all
the questions; and to arrive at both legal |
and equitable solution Of all the questions in |
dispute, 50 as @ to enable 9 her ITO 10 received AM
she has gained. in my opinion, she |
cannot lose, for the reason have
yet before ABr. The relief already obtained, |
as well as that which may be fairly hoped for, /
is without doubt the result Of your tudiciouS |
action in calling attention to the evil and the
probable remedies, and of your earnest effort |
In pressing the investigation; and l doubt
not that the hard worked and greatly op-
pressed tax. payer will hold in grateful appre-
citation the Vigor with which both you and |
the council, who have seconded your recon-
he other TO magSs S
cities and pubic officers, in |
one way and another have, some for larger,
others for smaller prices, fallen before
the money power, you, at the hazard of much
iiscontent and no little obloquy have con-
frOnted IL, and with the aid OF the council |
have succeeded in obtaining for the city o |
relief from unjust exactions. Very
d. K. MRAE.