The New York herald., 1879-07-31
SIX PER CENT AND THE BANKS.

THE GENERAL APPLICATION OF THE NEW LAW
QUESTIONED OPINION OF THE ATTORNEY
GENERAL AFFIRMING ITS FoRcE-No MEANS
OF EvADING IT.
ALBANY ". Y. July 80. 1879.
The following order granted by Judge Landon in
the matter of The People OF the State vs. The Bank
of Dansville was filed to-day THAT the Bank of
Dansville its officers, agents and assistants desst
and refrain from exercising any of the corporate
rights and privileges and franchises of defendant
and from collecting receiving debts except inter-
est moneys. and from paying out or in any manner
transferring or delivering to any person any prop
erty effects of said defendant; also ordered that
the defendant show before a special term to
be held in the city of Schenectady at ten A. NJ
August 10. why this order should not be continued
and receiver appointed
The Attorney General has written the following
opinion
o..,., n .o.ry sr.rs G.s. o. Nfw YORK;
To JonS rrnrLnroN Cashier Albany County Bank
aas ago relating to SIX Cen, interest Ls
Iehaper 5s Laws Of So IN which You express the opin
for the reason that BY special act chapter lc3 Laws Of
hr non the fo"tn With natoa anI
which act claim has not been specifically repealed
and thcreore remains In force aud am of opinion that
of 1879 amends single section Of the Revised
other provisions the argument would be sound that
aud
be affected by the change the general law for the
that such Gssss wSaa % Ito Remain to The
further and by separate section repeas IN
provisions The intention Of the Legislature must be de-
duccd from tho and from the language employed
tho time of the passage of this Act
IT ArrLl.s TO ALL TRANSACTIONS
in all transncons whether by individuals by corpora
lions or ,h by paSs S Officers The first section 10 Of the act %
This would apply to AL classes Of contracts transactions
by acts The next section repeas ali acts in
S as sss Of by the first
make the rate of six per cent universal in its application
rate The repealng section was not necessary to effect
the change made by the st the Revised
iss -S Ss % as
ana ~ @ r epnr e could avs
repeal other statutes and establish uniformity
est in a" Its familiar rule that effect must possi
meangless unless eonstrned to repeal laws not embodied
@ & wrs Ny % an,.
per interest aud the language repeating ali laws
consistent with the provisions % tho act in question
laws and to intend that no should 10 left standing
which would authorize more than six per cent interest
The absence OF saving clause necessarily implies that
third article Of the constitution forbiddng the Leg.
deemed part Of an act passed or 20 appieabe
inserting its provisions, does not apply ropealing
jee matter may be repealed by Laws dssgas'nE in gen
state the effect of the change six will be
Judicial to the banks must be assumed that the
and contemplated by the Legislature The Office
s s
tutons provision intepesss the for the re-
deemed that the public welfare would be best
S ye 10 I
good Of tho The & % be ASKED
of statute to reject material provision not
~ss Ss S eS s | TSs
Executive and administrative officers certainly
s 4sHy Ss clearly hsy 4ss
by %s 's ssS 81 including s
and public officers charged with the oaning OF mcney,
may be injurious to banks equally injurious
which is applied to support Of the schools
The interest from that fund by
The have method oi supplying the deiciency
the section Of the Interss. act part Of It's
therefore made 70 the st Of january
tho The act only applies to contracts made and
& nSr
to that date nns provision II IN tine rss secaon,hs
affect obligation made before the Of
the the acct could ~ a n With
on, tina. clause The clause Is negative In form and IS
wonld have and does purpot declare
that the shall have effect contracts obga
tons made between the date of its and the time
when by its terms IL is made to take effect
Nor In opinion does the act affect tho
various statutes usury They remain full
tho reduced of liked tho
All the provisions OF those statutes by their
applicable to violations of the six cent
the old Thcy in inconsistent with
lower of Interest than cent and
ton OF the act Is operative without application to tho
usury provision.
The act of 1870 in relation to banks (chapter 1881 do
signed to place state banks equality with national
banks under the Of Congress- repealed
entirety only tho rate OF interest thereby author
zed repealed But tho other provisions remain in force
applicable in other To the six cent rate OF
interest The equality. however, with the national banks
s disturbed by the act of Congress those banks
only charge the rate of interest by law In
States which they located tl9 United States
Revised Statutes) Very respectfully yours.
A. SClOONMAkER, Attorney General