(After stating the case.) Whether the note was evidence, is now the question : the Court of Common Pleas having admitted it, and a bill of exceptions having been taken to their opinion. I have no doubt that the note
But some points have been discussed-.in the argument, concerning which it is necessary to express our.sentiments, lest it should be supposed that we entertain doubts, which might have an ill effect in the present situation of the country, as respects banking institutions. I do not understand that the counsel for the plaintiff denied the general right of the legislature to prohibit the formation of companies,'for the purpose of issuing bank notes, and carrying on the business of banking. Such a position would indeed be' too extravagant to bear an argument: the issuing of bank paper being a subject so immediately .and deeply interesting to the public, that it necessarily falls under the legislative controul. But. it is
1st. It is supposed, that “The Farmers’ Bank of Lancas- “ ter was virtually incorporated by the “ Act relating to the “ association of individuals for the purpose of banking,” passed 28th March, 1808. By this law it is enacted, that if any association of citizens should thereafter be formed for the purposes of banking, every member thereof should be individually and personally liable for the debts of the association. How this can be construed into an implied incorporation of the association, known by the name of “The Farmers’ Bank “of Lancaster,” formed the 17th January, 1810, I confess I am unable to conceive. I should draw an inference directly the contrary, because the personal responsibility of the stockholder is inconsistent with th,e nature of a body corporate,. The most that can be fairly inferred is, that the act is an acknowledgment, that such associations were lawful until prohibited by the legislature ; and so they undoubtedly were: but no one who recollects the history of the time can be at a loss to know the object, and intent of the law. Associations had been formed, and more were about to be formed, the members whereof endeavoured to shield themselves from personal responsibility, by publishing to the world, that they undertook to transact business on the express condition of being exempt from such responsibility. To put down these dangerous pretensions the act of assembly was made, and its plain import is directed to that, and no other object. How ,can it be supposed for a moment, that there should be an intention to incorporate associations, without number and with--GUt end, free from all restraint or limitation, when in no instance has a banking company been incorporated, before or since, without restrictions as to the amount of its capital, the nature of its,business, and'the extent of its duration. I forbear to enlarge on this subject, being fully satisfied, that nothing was farther from the intent of the legislature than to incorporate this or any other company, by the act which has been mentioned.
The associations of individuals for the purposes of banking, abstracted from the institutions of positive law, are innocent in themselves : and while their operations are restricted within a reasonable extent, are not injurious to the community. But it is obvious, that should the circulating medium of the country be inordinately increased thereby,, they would become great public evils. Experience hag taught us the melancholy truth, that excessive issues of bank
It has been contended, that the act of 26th March, 1808, has impliedly incorporated the association of the Farmers’ Bank of Lancaster, by subjecting the members thereof to individual responsibility for their notes, and that certain vested rights arose thereby, by which the faith of the legislature was plighted, and which could not constitutionally be taken away. My mind refuses its assent to the conclusions drawn on this subject, by the ingenious counsel of the defendant in error.
It is admitted, that this law was intended as an impediment to the proceedings of this association in their banking operations. But how can this be reconciled with the supposition, that it was virtually a solemn-contract entered into between the legislature and the association of individuals after-wards formed, that such associations might go on to any extent of capital stock and have perpetual duration without any controul whatever, or without paying any consideration to the government ? That such was not the intention of the legislature there can be little question. The act speaks of no incorporation, nor confers any powers or- privileges on such societies, but attaches a personal liability on the individual members, never known in the case of corporations. It could not be intended to place them on a more advantageous footing than the old chartered banks, which were in full operation : for it really put them in a more favourable situation. If the individuals of this association understood themselves to’ have been really incorporated by the law in question, it is passing strange, that they' should apply to the legislature in the sessions of 1811-1812 for a new charter, which was refused to- them ; and afterwards assent to receive the charter granted by the general law regulating banks, enacted 21st March, 1814, whereby their capital stock was restricted to 600,000 dollars ; their duration limited to 1st April, 182S j a proportion of their semi-annual dividends directed to be paid into the treasury ; the books and vaults of the company subjected to the inspection of committees of the legislature ; and a power reserved to the legislature to revoke and annul the charter and privileges granted by the act, in case it should appear that the same were injurious to the citizens of the commonwealth. - ■ ' •
But the question before us is not whether the evidence given in the Court of Common Pleas would maintain the action, but whether the promissory note should- have been received in evidence. The bill of exceptions states, that the note was offered in evidence, which being objected to, the plaintiff below gave in evidence the testimony contained in the notes of the president, and then again offered the said note ; which being still objected to, as well as the said testimony, the Court over-ruled the objection, and admitted the said note to be read, and the testimony to be given. Whereupon, &c; It is strangely worded : because it appears thereby that the testimony annexed was received without opposition in the first instance, but was afterwards excepted to. The note was dated 10th November, 1812; drawn by the plaintiffs in error for 600 dollars, payable to Levi G. Hollingsworth., or order, without defalcation, at the Farmers' Bank of Lancaster, 60 days after date, and indorsed by Hollingsworth and the defendant in error. A statement and declaration .had been filed : the latter contained a count for money paid to the use of the defendants' below, upon which the verdict was taken. The action was not founded on the note which was merely inducement to the suit. It carried no illegality on the face of it:' and its'being made payable at the
Judgment affirmed.