We hope that the lesson r...
The Times, 1824-04-23T00:00:00

We hope that the lesson read to the Governor and Di- rectors of the Bank of England, by the Judge during the trial, and by the Jury through their verdict, in the cause of " Sutton, Bart., v. 4he ,Bank," on Wednesday last, will be of service to those geniTemen. The ATToRNEY-GENE- RAL had incautiously said, during his pleading, that the Governor and Directors " were trustees for the public." This error was immediately reprehended by the LoaD CHIEP JUSTICE; and the said mercantile persons were, with the acquiescence of their counsel, reduced to their proper level-as agents or trustees fior themselves and their partners. In that character, also, they were ultimately amerecd by the Jury, in damages to the amount of 9391. ] Os. 7d., the whole quantum of loss inflicted upon Sir R. SUTTON, the plaintiff. The case is a very remarkable one, and deserves to stand upon record. Sir RICEH-RD SUTTON gives a power of attorney to his agent, Mr. MAC- DOUGALL, to sell out stock to the amount of 20,0001. ster- ling, Sir RICHARD having before negotiated transfers through the same agept for ten times that sum. The Directors on this last occasion, however, doubt the ge- nuineness of Sir RICHARD'S signature. For this they are certainly not to blame; doubts are not dependent on the will: but tbeir conduct, under the existence of the doubts, is most unaccountable. Mr. MACDOUGALL, a highly respectable gentleman, who had presented the power of attorney, offers himself to the Directors to clear up their suspicions: he tenders them an indemnity, and refers them to his banker, in proof of his sufficiency. Him they re- fuse to see; but yet they accept fronm him a statemnent of the place to which letters were to be addressed to Sir RICHARD SUTTON, his principal. An answer is not re- ceived till the fourth day after the transfer should have been made-holydays likewise intervene, anti Mr. MA CDOUG ALL, having other business or recreation to attend to, is out of town for a few days-so that the sale is not finally effected till after more than a week's delay. In this time the funds have sunk a little in price, and Sir RICHAXD consequently sustains a loss : the loss is aggravated by the commission upon two sales'ihstead of one; and for the whole of these damages Sir RicHARD bringsibis action. The whole of those damages are also awarded to hin by the Jury witli- out the slightest hesitation. W%e have thought it right to sum up these particulars, bath on account of the principle deduced from them ge- nerally, and on account of the hints which came out inci- dentally in the course of the trial. Mlany an individual may bave been inclined to acquiesce in particular arrange- menits of the Directors, from the misconception that thcen were acting for the public. and that he, being one of that public, participated in the good of the general arrangement, theuigh he suffered in his individual capacity. The con- trary of this is the fact--the Directors act for themselves only, and their partners; and against the public, whenever one of the persons of whic1h the public is composed is aggrieved. A circumstance which occurred during the trial, and is confirnatory of this remark, is of-a very striking nature:- Mr. DAWES, principal accountant to the Bank, stated, - that "not a day passed without objection to powers, and no "claims were ever mzade before on acco,,nt of dela."- MIr. SCARJ,ETT objected to thislast answer aq not evidence, and the learned Judge confirmed the objection. " Cer- tainly," said his Lordship, -it is not evidence: many "individuals would rather sitdown ;with a loss than enter "into a contest with so powerful a body as the Bank." The charge of the LORD CHIEF JUSTICE is so excellenit, that we shall here re-publish it:- ,, The LORD CHIEF JUST1CE said, the simple question ' in this case was, wvhether there had been any unreason. - able delay in verifying the power which was essential " to the transfer of the stock. The GovernoT and Com- pany of the Bank of England-though one of the ' greatest, and perhaps the very greatest mercantile esta- ' blishment in the world-stood in no other situation in "reference to individuals than private bankers. Like others, they were responsible if they allowed an improper transfer; and had, like otbers, a right to take fair and reasonable time to ascertain the authenticity of docu- nments whicel tliey vwere vequired to verify. The ques- tion in this case was, not whether they might not, under some circumstances of suspicion, write to the country, but whether they here might not have obtained satisfacw tiou at once by a different course of proceeding, having respect to who Mr. MACDOUGALL was, and to the pro- posals which he made. If the jury thought they might, they would fipd a verdict for the plaintiff; and then, in fixinig the damages, they would consider whether it coBuld be expected of Mr. MACDOUGALL to neglect his other concerns, and seek the Directors; or whetber they ought not rather to have apprised him that their " doubts were removed."