The Harrisburg Bank v. The Commonwealth

Citation26 Pa. 451
PartiesThe Harrisburg Bank versus The Commonwealth. The Commonwealth versus The Harrisburg Bank.
Decision Date01 January 1856
CourtUnited States State Supreme Court of Pennsylvania

The opinion of the court was delivered by WOODWARD, J.

The 47th section of the Act of Assembly of 16th April, 1850, makes it obligatory on the several banks of the Commonwealth to keep their notes respectively at par in the cities of Philadelphia and Pittsburgh, those east of the Alleghenies in Philadelphia, and those west in Pittsburgh, and "any bank failing to comply with the provisions of this section shall, for such length of time as its notes may be under par as aforesaid, forfeit and pay to the state treasurer, for the use of the Commonwealth of Pennsylvania, at the rate of two mills per annum on every dollar of the average amount of the circulation of such bank for the preceding year; such forfeiture to be paid on or before the third Monday of November in each year; it shall be the duty of the cashiers of the several banks to state in their annual exhibits made to the auditor-general, the length of time that their notes have been under par as aforesaid."

The evil intended to be remedied by this legislation was that some of the country banks, just as able to keep their notes at par in the two great commercial centres of the state as others which did so, would make no provision for this purpose, but would subject the public to the inconvenience and loss which always attend a paper currency of unequal value at different points. And the delinquent banks were the gainers hereby, for it tended to keep their notes in circulation in the country, whilst those that found their way to the cities could be shaved at a rate which would pay an agent and put money into the pocket of the bank besides. It was in effect a financial scheme for taxing the public for the benefit of the brokers and the banks. The legislature meant to explode the scheme, or tax it in turn for the benefit of the public. The banks were creatures of the legislative power, designed to furnish the people with a uniform paper currency, and as all the currency of the state in its natural circulation passes through the two cities of Philadelphia and Pittsburgh, each bank shall keep its notes at par at these points or pay into the treasury the two mills for forfeiture. Such was the evil and such the remedy proposed.

This suit was brought in the name of the Commonwealth to recover the arrears of the forfeiture due from the Harrisburg Bank; and on the trial a great question was made as to the meaning of the word par in the above section. The court defined it to signify a currency ordinarily equal to gold and silver for all purposes, financial and commercial, and the jury found that the Harrisburg Bank had not made its notes such a currency in the city of Philadelphia.

We approve of the court's definition of the word par, and of the observations by which it was illustrated. It was placing the notes of country banks on the same footing as those of the city banks, and giving true effect to the legislative will as expressed in the quoted section.

But it is argued that this will compel country banks to transfer their capital or a part of it to the cities, and to establish agencies for the redemption of their issues in violation of the 50th section of the same Act of Assembly. That section prohibits the establishment of any branch or agency at any other place than the charter location for "the transaction of banking business, or the issuing out of or circulation of its notes, either for its own sole benefit and profit of its officers or any of them in whole or in part."

Now if the redemption of bank...

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3 cases
  • Aetna Ins. Co. v. Robertson
    • United States
    • Mississippi Supreme Court
    • 19 Diciembre 1921
    ... ... (3968) Money and Choses in Action Levied on .--Money, ... bank notes, bills, evidences of debt circulating as money, ... and any judgment or decree belonging to ... Howe, 17 N.Y. 458: Merchants' Bank v ... Bliss, 35 N.Y. 412; Harrisburg v ... Commonwealth, 26 Pa. 451; See, also, authorities in ... note, 27 L. R. A. (N ... [90 ... ...
  • Westinghouse Elec. Corp. v. Pennsylvania Dept. of Environmental Protection
    • United States
    • Pennsylvania Commonwealth Court
    • 9 Marzo 1998
    ... ... PENNSYLVANIA DEPARTMENT OF ENVIRONMENTAL PROTECTION, Respondent ... Commonwealth Court of Pennsylvania ... Argued June 2, 1997 ... Decided Jan. 2, 1998 ... Reargument Denied ... Armstrong, Pittsburgh, for petitioner ...         Dennis A. Whitaker, Harrisburg, for respondent ...         Before SMITH and FRIEDMAN, JJ., and NARICK, Senior Judge ... Westinghouse also cites Harrisburg Bank v. Commonwealth, 26 Pa. 451 (1856), where the court stated that the repose of a statute of ... ...
  • Diversey v. Plankinton
    • United States
    • Illinois Supreme Court
    • 21 Junio 1882
    ... ... Smith, 1 Black, 587; McLaren v. Pennington, 1 Paige, 102; In re Reciprocity Bank, 22 N. Y. 9; In re Oliver Lee's Bank, 21 Id. 9; Bailey v. Hollister, 12 Id. 112; Stanley v ... Y. 261; Squire v. Brown, 22 How. 45; Halsey v. McLean, 12 Allen, 438; Bank v. Commonwealth, 26 Pa. 451; Kritzer v. Woodson, 19 Mo. 327; Hill v. Frazier, 22 Pa. 230; Norris v ... Woodson, 19 Mo. 327; Cable v. McCune, 26 Id. 371; Hill v. Frazier, 22 Pa. St. 320; Harrisburg Bank v. Commonwealth, 26 Id. 451; Lawler v. Burt, 7 Ohio St. 341; Sturges v. Burton, 8 Id ... ...

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