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Kentucky Gazette
Lexington, Fayette County, Kentucky
What is this article about?
In Mobile, the U.S. Circuit Court, presided by Judge McKinley, ruled that the Louisiana-chartered Carrolton Bank lacks capacity to enforce a bill of exchange purchased in Alabama, causing local excitement and alarm. The case will appeal to the Supreme Court.
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A question of great importance came up yesterday before the Circuit Court of the United States, now sitting in this city, and was decided by the Court, Judge McKinley of the Supreme Court of the United States presiding. The Carrolton Bank, a banking Company chartered in Louisiana, purchased in Mobile through an agent, a bill of Exchange, which being unpaid, the bank brought an action against one of the parties to the bill. The Court decided that a bank Corporation of another State could not make a contract in this state, for the want of capacity to contract; and, therefore, that the Bank could not recover on the bill. The case will go up as we understand, to the Supreme Court of the U States, where it will be settled. The decision has produced great excitement here and is the subject of general conversation and alarm. Its ruinous consequences, if it be sustained, can scarcely be imagined.
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Where did it happen?
Domestic News Details
Primary Location
Mobile
Event Date
Yesterday (Thursday Last)
Key Persons
Outcome
court ruled against the bank, denying recovery on the bill; case to be appealed to supreme court; produced great excitement, conversation, and alarm with potentially ruinous consequences if sustained.
Event Details
The Carrolton Bank, chartered in Louisiana, purchased a bill of exchange in Mobile through an agent. When unpaid, the bank sued one party to the bill in the U.S. Circuit Court. The court, with Judge McKinley presiding, decided that a bank from another state lacks capacity to contract in Alabama and thus cannot recover.