Year: 1868

oOiips WIZ eho"et I'm - $50 ~~'i
that he and other taxpayers may have
the benefit Of my opinion.


do not believe that the military gov
ernment of the city of Memphis, organ
lied by General Washburn in July, 1864,
and continuing until July, 1865, was such
legal government of the city as to bind
the citizens to a payment Of any liabili-'
ties created during that time. Hence,
all scrip issued during that period is
irregular, and, think, illegal and can
not be collected of the citizens. The
reason and authority for this opinion
would take too much space in a commu-
nication of this kind. II was this kind
of liability that alluded to in my re-
marks at the meeting Of taxpayers on
Friday last which | characterized as
probably irregular and illegal. | am,
however, informed that there is but little
scrip of this description in the market.


Another question asked; Is the city



liable for the scrip issued upon the basis
of two dollars for one, and whether this
is not usury, and can be avoided by the
city,


do not think that the idea of usury
is involved in the transaction that it can
be placed only upon the ground of extra
compensation.
You have done work for the city in
printing that is worth thousand dollars.
The Board issues to you scrip for this
amount. You sell it for half the amount
of the bill and ask that your loss be
made whole, which is done. This can
only be a compensation to meet your
loss, and does not embrace the idea of
usury, which is for loan Of any moneys,
wares, merchandise or other commodi-
ties for forbearance of any sum for longer
or shorter time"


This new issuance can only be en-
braced under the idea of new or addi-
tional compensation. The idea of for
bearance of an existing debt or the loan
of money constitutes the usury of con-
tract.


These views are fully sustained by all
of our law writer's on contracts, and are
acted upon daily in our everyday trans
actions. Compensation to the laborer is
frequently found to be inadequate and
afterwards increased; but the idea of
usury standing in the way of settle.
ment, suppose never entered the minds
of the parties. AS to the policy Of such
settlement this communication has
nothing to do.


But take the idea Of Taxpayer" as he
presents it. A debt of one thousand dol
lars is due, and the city issues to him
warrant for two thousand dollars,


Can this contract be affected with the
taint of usury in the hands of the pur-
chaser And it must be remembered
that these warrants are checks drawn by
the Mayor and Controller upon the
Treasurer, and are not due until regu'
larly presented. Parsons says, volume 3,
page l45, THAT when one supposes
himself to be purchasing negotiable pa
per of an owner, and is, without notice to
the contrary, either actual or derivable,
from the circumstances of the case, this
advance of the money would have all the
privilege and safety of an innocent pur-
chaser"


1t is upon this idea that all bonds of
private and public corporations are sold,
and for which these corporations are
bound principal and interest. Other
wise all contracts for the sale of time
bonds could be avoided, at least to the ex-
tent of the difference between their face
and market value. Transactions of this
kind would cease altogether.


There may have been transactions of
the city embracing usury within the
last two years. If she has borrowed
money at all, the rate was probably
higher than six per cent. Very little
money has been loaned at such rates.


But such transaction must depend upon
its own facts and circumstances.


/ have answered Taxpayer " fully
and, 1 think, correctly. 1t is the duty of
citizens to unite in placing the credit of
the city upon a firm basis.


r. J. MORGAN, City Attorney.