Wheeler v. National Bank

• Decision Date: 01 October 1877
• Citation: 96 U.S. 268,24 L.Ed. 833
• Parties: WHEELER v. NATIONAL BANK
• Court: U.S. Supreme Court

96 U.S. 268

24 L.Ed. 833

WHEELER v. NATIONAL BANK.

October Term, 1877

ERROR to the Superior Court of the city of New York.

This suit was brought by the Union National Bank of Pittsburg, Pa., against George M. Wheeler, as indorser of two bills of exchange, one dated Jan. 20, 1871, for $10,000, and one dated March 8, 1871, for $5,000, drawn by Slack, superintendent of the Brady's Bend Iron Company, on and accepted by the treasurer of said company, pursuant to authority vested in him for that purpose, and payable sixty days after their respective dates at the American Exchange National Bank of New York. The plaintiff discounted both bills for the benefit of the company: the first on the twenty-fourth day of January, 1871, and the second on the day of its date,—the company receiving the amount mentioned in the bills, less the sum of $246.

The rate of interest in Pennsylvania was six per cent per annum.

Said bills were duly protested for non-payment, and notice given to the defendant. There was no proof of the rate of exchange when they were discounted.

There was a judgment in favor of the bank, which was affirmed by the Court of Appeals of the State of New York, and the record remitted to the inferior court. Wheeler then brought the case here by a writ of error.

Mr. Thomas M. Wheeler for the plaintiff in error.

Mr. Joseph M. Dixon, contra.

MR. JUSTICE HARLAN delivered the opinion of the court.

The controlling question presented in this case for our determination involves the construction of the National Currency Act of June 3, 1864 (13 Stat. 108), which declares that 'the knowingly taking, receiving, reserving, or charging a rate of interest greater' than that 'allowed by the laws of the State or Territory where the bank is located,' shall be 'held and adjudged a forfeiture of the entire interest which the bill, note, or other evidence of debt carries with it, or which has been agreed to be paid thereon.' The same section also declares: 'But the purchase, discount, or sale of a bona fide bill of exchange, payable at another place than the place of such purchase, discount, or sale, at not more than the current rate of exchange for sight drafts in addition to the interest, shall not be considered as taking or receiving a greater rate of interest.'

Wheeler, the plaintiff in error, was sued as indorser upon two bills of exchange, drawn at Brady's Bend, Pa., payable sixty days after date at the American Exchange Bank, in New York, and discounted by...