The Hocking sentinel. [volume] (Logan, Ohio) 1871-1906, 1889-01-17

power OF attorney by the terms of
which Sumuel was empowered to draw
this money, receipt for il, and d.,
everything Connected with it as ful-y
as conld the old man in person. The
old man Spencer executed this power
at time when there was no question
!, of his sanity or aoil'ty to transact
business
Samnel had acted with Culver rs the
, old mans agent for many years before,
drawing large sans OF mnney frort
the bank from time to time, as much
as S.,63a. Can any doubt that if Sam
uel had tene W IA this certificate with
out any assignment upon it, and tol,F
the officers oi the bank that his father
had made disposition of his money,
or ,old them nothing, but have taken
up the money. Leaving out all ques-
, tons OF the old mans sanity, or Gull
ver's knowledge o. any fraud or vndue
influence practiced. can any one doubt
but that the bank would have bee:s
protected by its power Of attorney.
! W hat is this case more than the
agent Conveying, AMI in addition Ia
his authority over the furd Us agent.
He presents The old man assign
mcnt upon the bank
4 the Peoples Bank got goo.l
title TO this certificate, tonk II MP in
coed faith and is protected in it+
transaction; Why is rot the certl:'-
cate gIven in consideration. nov
held by the First Bank. good
think the confusion grows out of
misupprehcns on of the effect ofno
nesot,abiliiy of these certificates
held by the First Bank.
The non negotiab;lity OF these
&C rtificates was matter of defense
in favor of tho Peoples Bank, in
wll soever hands they m,y be found.
in event the transaction ont of
which they grew and for which they
were given. should prove to be -
loss or indefensible by that bank.
Ii. for instance. 1t should be found
that old man Spencer at the time
of tho assi signment WIS insane, then
his assignment would have been
void, and would have passed Moth
ing. The Peoples Bank would
have received nothing by its pur
chase. and ITS certificates ciren for
this worthless thing. woul.. have
been given for nothing They would
have to pay the Spencer estate, and
couLl refuse to paw their OWN nego-
table certificates.
The old man not being insane. IL
tic passes by his act as TO thi,d
parties without knowledge OF tho
undue influence or fraud by which
his signature was obtained, as 1t dill
to the Peoples Bank in this case, il
1t had no knowledge of the irnpnsi-
tion upon that old man. And it'll
lie passed to the Peoples Bank. II
tie passed from the Peoples $ to the
paper 1t issued In consideration for
it. Non negotiable paper is "s
negotiable paper, save cniy the
right that parties TO the furmsr pa-
per haze to set up .deienses against
ii, but this is limited to parties t1
Tie paper. In this case between
the tvo banks, but the executor Gail
not avail himself ::of any such fact
that the Peoples Bank happened
t., buy its Ger iicatcs with non ne
soiiabio paper.
60 long as the Peoples Banks
title to this old certificate IS goa
that 1t bought. so long as it has n
valid defense and is rsntecte.l. it
has got just what it barsained for,
and Of course must pay what il
agreed to pay for it. If therefore
the Peoples Bunk had no knowledge
of this fraud, and had a right TO
purchase this certificate. they were
aathOrz"d to pay for it in their
nwn paper.
ANY one had right to purchase /,
their paper, taking the risk Of
course. of any defense the Peoples
Bunk might have against il.
In other words when these
Peoples Bank certificates wero
offered at the counter oi tie First
B INK for sale, the officers of that
Bank even had the non negotiable
character of the paper been Oh
served, had the right to say, will
bIy this paper. / will take tho
chance that it was issued nren good
That the trsnsactIcn
Ior which 1t was issued, was IN alt
respects valid, so far as tho Bank
issuing 1t is concerned, and it hasa L
coed defense for it.
That whatever defense it may
rave we can ava,l ourselves of il,
because 1t is defense behin.l tho
,aper they have issue !, as available
II our hands as in theirs.
All t3Sl l5 itl' tO COiiSI'lcT tueTc-
ore. dill the Peop'es Bank have
of this fraud or undue
influence, or of such facts from
Thlch such knowledge nisy be in
erred. What constitutes kncwI-
dgc IN any case, depends upon the
'eculiar circumstances and facts of
hat case.
In Ohio, while II is not necessary
hat one should be possessed of
very fact and circumstance, yet
efore he can be held to have hal
nowledge he must bo possessed of
uch suspicious circumstances and
acts, tending to show the matter
D question, that any reasonable
IAN would have believed, and any
rudent man would have made Ell
uiry 20 satisfy himself before
cling.
In other words, before one without
ctuaI aOtice will he charued with CON-