The New York Herald Newspaper, June 22, 1851, Page 1

ao: WHOLE NO. 6816. EXTRAORDINARY BANKING OPERATIONS, State Bank at Morris, N. J.— "The The Susquehannah Bank and the Protec- tive Insurance Company. WRIAL AND CONVICTION OF THE CASHIER, HARVEY DAYTON, YOR VERIURY—INDICTMENTS AGAINST LAMBERT NORTON, THE PRESIDENT, FOR THE SAME CRIM¥, AND AGAINST SIX DIRECTORS, FOR CONSPIRAC) TO DEFRAUD THE STOCKHOLDERS OF THE BANK. Monnis County Crrevit Court, Sune 17, 1851. ‘This day was opened, in Morristown, a special term of ‘the Circuit Court of Morris county, N. J., for the trial of indictments arising out of the operations of the defunct State Bank at Morris. Judge Ogden, of the Supreme “Court, presided. The ease is, perbaps, without a parallel in the history Of banking in New Jersey, It is briefly this :-— ‘The bank was incorporated on the 28th of January, 1812, with @ capital of $50,000, in 1,000 shares of $50 veach, under the title of the “State Bank at Morris: NN.J.” It was a regular country institution, and ap- peared to le conducted honestly enough; but partly from ignorance of the principles of banking, and partly from negligence, the bank was involved in difficulties having invested the capital in real estate, which was o mo use in banking, and having outstanding judgment: for debts, that were never carried into oxecution, The Shareholders became dissatisfied, and something wa mecessary to be done. It was agreed to seek from the Legislature a supplementary enactment, reducing th par value of the stock from $50 per share to $20, and to increase the number of shares, by admitting mew sab- scribers, 0 as to make the capital at least $40,000, In the meantime. no notes were to be issued. While som ‘were busily engaged in getting this law passed, with th best intentions, there were others concocting @ plot to turn it to their own advantage, There was an under- standing among the stockholders that there should be a new board of directors, and new officers. But some of the old regime went to work, with Harvey Dayton, and Lambert Norton, and Egbert A. Thompson, a stranger fom Cincianati, to whom they transferred 2,052 of the shares, out of 2.205, receiving for the same $28 per share, being $8 above the par price, and thus giving him com: plete control of the bank, He was iutroduced through Willard Karle, an officer of the Protective Insurance Company of Somerville~a company located in Somerset county, N.J., but having its real ceatre of operations at ‘Wall street, New York. This company was also mixed up in the bank explosion, Thompson was represented 6 a man of capital; but he paid for the stock by $20,000 in Susquehannah Bank bills, which turned out to be not worth a rush, and by checks lent him by Harvey Dayton, the cashier of the bank, and by David Sanderson, which checks were afterwards removed from the bank, | the former for $6,000, being replaced by a check of ‘Thomp-rn himself; and the latter, for nearly $10,000 being paid away in discounting a draft of the Somerville Protective Irsurauce Company, of which Sanderson was a director. Sanderson was also a dircetor of the State Bank at Morris. Yhomp+on drew check after check, till he drew to the amount of $48,003 42 overdrawing his own account to the extent of $10,000, and getting pos- session of the assets, or real estate of the bank, worth $14,000. But before ail this could be accomplished, it was mecessary to have a bona fide-cash capital in the bank of at least $46,080; for the law organizing the bank anew ‘Was passed on the 14th of February, 1549, on condition that before banking operations should be resumed, the President and cashier should swear that there was a bona fide capital of at least $40,000 deporited for banking pur- | poses This was sworn to on the 20th of August, and that affidavit is the subject of indictment against Dayton and Norton. Operations commenced in the bank on the 2lst of ayes, and then Egbert A. Thompson & Co had it all their own way. They issued notes “ like thunder.’ and Thompson took $50,000 of them to the West, to ope- rate there, while Willard Earle. the secretary of the Somerville Protective Insurance Company, got’ $20,000 more to circulate; and be went West and South, it is said, to poy losses of the insarance company in’ these notes. He died suddenly, and his family got the notes, and claimed them as their own, They preseated $4,000 of them to the agent of the bank at New York; but there was no funds to pay them except the Susquehaunah notes, and that bank had just caved im, and also the Somerville Ineurance Company. Thus ths bubble burst. On the Slet of October, two months after its reorganiza- tion, the bank was defunct; and it was for fraud alleged to have been perpetrated at a meeting of the directors at he latter are to take their tri Meantime. receivers in chincery were appointed, and civil and criminal procvedings wer instituted. All that remained of the property of the bank was $15.00 of the Susquebanvah bills, aud a few dimes. Indictments were found by the Grand Jury against the president, cashier, and directors. The indictment for perjury was the first of the kind ever tried. and its validity was objected to, ‘The case was removed by certivrari to the Supreme Cou ‘end after a eut, the validity was established, tbe care sent k to be tried here as a record. Norton, who was formerly connected with the C Bank at Albeny, which failed. 4 not appesred in wer to the indictment, and it is su ed he will not, unless Dayton is acquitted. Ile is the father of Norton, the convicted libeller, who is here watching the pro- gress of the trial j The Statevs. Harvey Dayton, for Perjury —Tho Court and Harvey Dayton was put on were sworn, the defendant ex- assembled at 11 0 cloc: trial. The following = chal erelaing his right of challenge to the extent of nineteen peremptorily, and two or three for cause »— Gilbert Budd, George Crano, David M. Force, Daniel B, Ow: Mablon Bills, Lane B. Corwin Amos I en, Sitaa I, Hopki Joa, W. Headly, Bodine, ‘Wm. Jaggers, ef. One of the jurors is ascertained to be a relative of the accused; but it was not discovered till he w: There were « number of ladies in the gallery, and t terest appeared to be very creat. The counsel for the State are Attorney General and Theodore Little, Req. Counsel for dsfenca, A.C. > ¥. T. Frelinghuysen, and Hon, J. W. Miller. Potir, Uitels opened the care for the Stace. “ile. sald, ‘an act ent “An act to eatablish State banks in New Jersey,” pasced January 28, 1812, a bank was estab- lished at Morristown, by the corporate name of “The President, Directors and Co. of the State Bank at Mor- vis.” The charter was fortwenty years. The hank went into ‘ion under that charter. On the 19th Februar; 1829, by an act entitled “An act to oxtend the act incor- Btate banks in New Jersey,” the sald charter and supplements to it were continued unti rst Monday in February, 1540. On the Lith Febraary, 1845, hy an act entitled Xn act to extend the act incorporat” ing State Banks in New Jersey.” the charter and Jements were continued in forcy till the first Monday in Feoraasy, 1866. The bank continue i in extvtence until the Mth February. when ancther law was parsed, enti- tled “Anact for the relief of the Prosi'lont. Direstors and Company of the State Bank at Morris.” (Mr. Littlehere read the act, and proceeded :) This act was accepted by the Board of Directors on the 2d of April, 1849. On the 18th August, 1419, there were two mertings of the board, and a new dynasty was formed, and the bank parsed un- der the control of strangers. rd Condit resigned bis office as President, and Lambert Norton wes elestet in his On the 20th August, 14%, the defendant, ae of the bank, Norton as president, made thelr it before Charles E. Scofield, m master ta chancery, in this town, agreeably to the requirement of | the fourth section of the law of February M4, 1840 Tels in the making of this aMdavit chat the indictmen the defendant with having sworn wilfuily, oor and frisely, The affidavit wes filed in Ure offies ef the Reeretary of State, August 21, 1849, and the bank then reeumed its business end continued until October G1, when it ceased to redeem ite bills and fallod. Te will be necessary, to sustain thie indictment for the at to show, by competent and satiefactory evidence, that th» | State Bank at Me on the 2th Au 1 cash capital of $40.00 » home ; knew this fact, or bad the means of knowing it, We will oe several laws ed top the original af | signed by the defendant and fwora to before C E. Scofield, master ia chancery; show the defendant's admissions ar to what composed the 41.000 eapital re. ferred to, aud ales show, by the books of the bamk, that much more than helf ofthe same stool tothe eredit of ‘one Egbert A. Thompeon. and not at the time the ty of the bank; that it 1 hie credit antil the | Sea augom 184°, and obecks t movint of $45,008 69, were on that day charge to him by -he bank; thatef the $40,000, £3.14) wae com) oned of the check of D. Sander. son, on the State Bank ut Elizabeth. and waa not good for the amount; that that check, evem if good and pro constitured no part Of the capital of Joaned, as the defendant unde::tood on, and was ered » him; chat f the 46.000 cheek of D. Sanderson nk; that thoee cheeks were not left re merely user temp arity way. whea © draft ofthe Pro insurance Company woe discounted by tie bank there in antid the bank get pod faith. Lee! to take up these two checks of Sanderson; the! the de- fondant’'s own check on the Morria County Bar, cert! fied for $0.00, which slo soretivuted a part of the $40,000, was not bona file a part of the capital of the bank; that it was lent to BOA. Thompoon. and cermed a part of his eredit om the books of the bank. and that it was never used for the purposes of the bank, never paid. or pre- sented by defendant, who was cashier, buc was ingenious- ond somo worthless trash pat in its pla T ); that the $20,000 of the Susquehann ig & part of the $40,000, Lomypse not belong to the bank; worthless, and both he Proteetion Inevranee Company — about the time of the fail of the State Bank nt + Counrel for the State offered in evidence, the charter ae SUNDAY MORNING, JUNE 22, 1851. Sa eee eee jan ' a an act ., 182 | extend the act to tacdipantte ‘State banks; ac al 2 ‘el passed 14th Fob. 1849, entitled * Am act for the relief of he President, Directors and Company of the State Bank at Morris.”” Thomas 8. Allison, Secretary of State, was then sworn, and produced the a affidavit of defendant, taken | from the files of the office, j harles E, Scofield was then sworn, and made ; act pas Proved that the affidavit before him, as acting master | ip chancery, on the 20th of August, 1949, in the office of | the State Bank at Morris; the oath was made by defend. | ant and by the president at the same time, with uplifted | nds, as follows :—* We do severally swear, in the pre- | sence of the ever living God, that the contents of the de- | peice, by us subset |, are true in its contents, to the st of our knowledge and belief.”” The following is » copy of the affidavit upon which the indictment is founded :— Tur Stare or New Jeasey, Mounts Courry.—Be it re- membered, that on this 20th day of August. 1849, before me, the subscriber, one of the masters in chancery, of New Jersey, | sega og, Oy. 4 ted Lambert Norton and — Harvey Dayton, who, being severally swora according to law, did depose and say—he, the said Lambert Norton, did depose and say, that he is the president of the State Baak at Morris, and the said Harvey Dayton, on his osth, sayeth, that he is the cashier of said bank; and they, the | sald Lambert and Hurvey, de further depose and say, that | the said bank has « fora fide cash capital for banking pur- poses amounting to at least forty thousand dollars, and jurther say not. Signed. L. NORTON HARVEY DAYTON. Sworm and rubscribed before me, the day above writ- ten, Cuariks E. Scorn, | Master in Chancery of New Jersey, Tra C. Whitehead, being sworn, proved that the name, Harvey Dayton, signed to a deposition made before the receivers of the Stute Bank at Morria, ie in the hand writing of defendant; it is dated 2ist November, 1849; my impressicn is that he was sworn after the questions avd answers were made; the questions were in writing, and the defendant took considerable time to frame his answers; I don’t recollect that any inducement was held out tohim to be examined; Mr. Norton was oxamiacd about the same time, but was not arrested on the sume day he was examined; he came here at the request of Mr. Thompson, carhier of the bank, in the eyenlag, and he wes arrested in the morning; Mr. Daytoa called upon me and Mr. Wood, some weeks after the ox- amination, and wanted to correct his statement; but on consultation, we did nct think it proper after such alapse | of time; the defendant was absent; the defendant was sent some time after the depositions were taken, and his | request to correct them must have been after his return. ‘The depositions of defendant before the receivers, on the 2st November, 1849, were here read in evidence. Lar. | vey Dayton testifies therein that he was cashier of the | bank, from 28th July, 1849, to Sept, 3, 1849; that he | mace the affidavit that the bamk had a buna side capital of $40.000. which he ascertained by counting the funds | | on hand, then in the bank, and that those funds consist- | ed of:-— David Sanderson's cheek for. . Do. do. es Harvey Dayton Specie . Foreign bills..." Susvebannall yw Money paid in fet $10,000 02 | After this, a few hundred dollars more were foun: 1 understood Sanderson's check for $3.10 was gi en to pay for stock notes; that it was lent to | KE. A. Thompson, and was to go to his eredit to psy apy stock notes he chose; I considered that it Was applied to the payment of stock notes. before I ioade the affidavit. by intans of E. A, Thompson's check for the stock nutes; { think his check. was given previous to making the affidavit; that check is entered in KE. A. Thompson's acer unt, on the 22d day of August; San. son's cheek for $33.16) was passed to the credit of E. A Thomp-on, on the 18th August, 1549; the bank got San- derson's check for $6,000 cn the same day; a few days after, the draft of the Protoction Insurance Compaoy Was discounted, and the proceeds applied tothe pay- | [ ment of these checks; the president took the checks out | of the drawer, and said be was going t> pay them out; T objected to discounting the draft of the Protection [n- surance Company, because I did not kaow about it; he told ime he was going to pay those checks for this draft, which the directors had just discounted; the bowrd | Was not in session at this time; I did not make aay com. | Plnint to the directors, of the president's conduct Ya dis. | posing thus of Sanderson's checks; by a resolution of the | rd, the president wud two directors wore a Finance | mittee, to make loans and discounts; the president swid two of the directors had assented to the discount; I did not ask which two; one of Sanderson's checks, that for $6,000, was certified. and for the other he said he had | the money lyingin the bunk; before I made the aihdavit, | Tasked the president if these checks could be considered | cash capital, and he said any bank would consider | them so; I had known Mr, Norton only a few days; | my check for $6,000 wax lent to E. A. Thompson: | ic constituted « porticn of the capital of the bank. tm the seme way as Sanderson's checks did; I had kaowa E 3. Thompeon only @ few days; he gave me ® memorandum that the check was borrowed; he was recommonded us a man of property by Mr Willard Karle, Se. Sanderson and Col. Wm. Thompson; I understood from t they had not been long acquainted with him wae on the Morris Cou { | would be used as the other checks were, to make up the | stock of the bank; it was laid in the drawer in the bank; T received it as cashier; L do not think there was any | eutry made of this, or any of the checks, at the time they were paid in. | Archibald 8. Woodrull «worn.—T have been cashier of | the State Bank at Elizabeth since the middie of April | last; Lhave been a clerk in the bank for twenty years; was bookkeeper in August, 1849; on the 20th August, the valance due David Sanderson was $4387, and this re- | maived the state of his account for a month after; his cheek of $3.11 was never prosented at our bank for pay- ment. Jacob D. Verm a sworn. —Lam cashier of the New. | ark Banking and Insurance Company; I have been so for | nearly seven years; on the 20th of August. 1549, the Sus | quehanvab bills were money that we would not receive in payment of notes, or ou deposit; they were not considered current funds; it was ata discount, but I don’t know how much; [don’t know when the Susquebaonah Bauk failed. | Cross examined.—It was not vur eustom to receive | any of the bills of the country banks of Pennsylvania or New Yi ifthe discount was over & quarter per cent; | we refused tho bills of the People's Hank at Paterson | in special cases; in the daily busines cf the bank £ am | in the habit of considering checks as cash; when we take | the check of 8 man on another bank. we take it on his credit, and vend at par, we rece than in payi! notes more on the bank; 1 think frou my know h Bank on the 20th of August, 184 notes and dues to | of the Susguehan- I would not have | n auy of its money on deporit, neither would L take | any of the country banks of Pennsyl ‘ Villiam G. Steele sworn—I am cashier of the Somer. ville Rank; T have been so sinee it weat into operation; im August, 1549, I certified a check for D. Sanderson for $6,000; that check has never been presented for pay- | ment; [certified the check upon a deposit of securities, | and when the check was returned to me the securities were to be gi up; it was returned to me in three or four days after it was certified, by D. Sanderson; the Protection Insurance Company had an office at Somer- ville; I think it is not now in exi ; 1 think it crated to do bu * about the time the State Bank at Morris failed; I uuable to tell anything about the | solvency or credit of the institution; the office Morristown, but moet of the business was done amined— As security for this certified check, n left with me a draft on the State Bagk at | drawn by Sanderson, and endorsed ‘7 Saaee | Donghty, Mr. Bartles, and ancther person; I think Me. Sapderron first pro to tale the bills of the bank, and that T Ls ye }o him «certified cheek instead; I considered this draft, with the names endorsed, good; Senderson was always considered good by us; if he bad drawn @ check for $2.000 or $4,000 on the bank n he had no money there, | should have considered him good, but I do not think | would hay id the cheek. William N. Wood sworn: at the exami nation of Mr. Dayton before the receiver; the books now | produced are the same as thoce examined at that time Cross-examined—At that time the banking house be- longed to the bank; I presame the banking house was | unencumbered on the 20th of August, 1819; it was worsh wt thas time $5,000 or $6,000;t he recelvers hav for $4.200; I don’t know E. A. Thompson; I ne him that I know of; [did not own any of the stock of the bank on 20th August, 1840; 1 did not own any for several years before; the estate of /1y father owned some stock there; in th mination, Dayton stated that Sanderson's check fe 0 was ou the Elizabethtown Bonk ‘The Court adjourned till nest ning. SPCOND DAY Wee June 1, Theedore T. Woed, sworn—1 am the cashier of the c been vo for ton years; L eer- cheek fur Harvey Dayton in August, 1849, $6,000; it was, [ think, before the State ayton had nearly $4000 of the Morris Count: and engaged that the ld be deposited before the cheek should be at the bank; he did not deposit any money or curities with me; the check was soon presented for peyment, and returned to me by Dayton himself, some three of four weeks after it was certified; [think it was after the State Bank resumed business; by the arrange- ment between us the check was not te be presoled or 1 tl hienecount was made good for the amount; the te Bank stopped business the last week in October I think; T would not, in Av have received the bills of the Susquehannah Ba tent In payment o Crose-examine posit, wor Lo any ex- some Pennsylvania ban 5. We Look them at a dix. evunt » reevive certified ehecks as cash; We receive the checks of reeponsible men on other tenke as each, where wo know the parties, In making np cur daily statement, we count the bills of other banks even if at a diseount, as each Ke-exemined—In our daily statement we call foreign | about the Ist of Nove | what ameunt of stock notes were on hand when I be- | #uxieus to forward the making | within my reach to inquire of its character: Thom: | the Protection Ineuranes Company obtained a discount | some liabilities; Mr. Farle got the money; I don't know | now business transactions with him Lille each, In fell without deducting the discount; I mal tn anneal satement to the Legiclatare: in that state- ment specie funds are the coin we have on hands; cash funds are notes of other banks, and checks on other banks paying aa due us from other bi we could draw (i a specie if we chose, bn te Cums | PRICE TWO CENTS. ‘wedo not regard as cash ately con) ee into cash at our Morris county; from Sth mber, Blst October, 1849; the North River Bank were all returned to our ban! think the first two pages in the cash book are in Mr. Norton's handwriting; the next two are part Mr. Nor- ton’s and part Mr. Dayton’s, ‘The caso for the prosecution here rested, THR DEFENCE. Mr. Prelingbuysen then opened the defence. He said the counsel for the defendant would show that the bank had sold stock, and taken notes of individuals for the same; that as $40,000 were required to be in the bank, K. A. Taoompsnn deposited that amount to his credit, and betore the affidavit was made, said Thomp- son drew hia checks to Beet stock notes, and 60 transferred $40,000 to the bank; that the items upon which the affidavit of defendant was founded, were such as were treated by all banks as eash, certified chacks, and bills of specie paying banks; that’ Susquehannab bills were cash, and that that bank wasas good as any bank located in such a place as that. If the directors aft wards made discounts which were bad. it does not mal the affidavit of the defendant false. Inthe first pl the affidavit is not fauwe; and secondly. if it is false, the State must prove that defendant intended to «wear falsely. They have not sustained the indictment by the testimony pro ucedy Thomas §. Alliscn, already oxamined for the State. was recalled for the defence. —I do not know that the affida- vit produced was ever filed in the Secretary of State's office; I found it upon the files when I came into office: I formerly resided in Somerville; my family are still there; the Protection Insurance Company bad an office there; the credit of the company to August, 1819, was, I think, good; its failure was later in the season; Thad beenspoken to by Col. Thompson to become au officer there, about August, 1849; L pavtly consented to take « situation there, but from subsequent circumstances I did think the company became bad credit soon after Bure of the State Bank at Morris, xwnined —The business of the company w: against fire; 1 don’t know of any policies at Somorville, or in thy county of Somerset; I made inquiries about the company from the directors, Col. ‘Thompson and Mr, David Sanderson, and from their infor: mation I formed my opinion of the company; Willard Farle was an oaicer in the Protection Insurance Compa- ny; Col. Thompson wax president; heard they doing a good deal of business, and had numerous j in New York and all over the countey. William Thompson sworn.—1 Was of the Proteetic in August. 1349. company was good till Mr and fasurance Company, at Somer. Tho credit and condition of that president rie went away aad diet, saber, 1851; the reason was, he was the financial agent of the y sustained very heavy losses policies; these losses the ordiaary calculati rector of the State Bank at its new organvzstion. 1 ded avy wrong: his body fell inte the bi eas, wo took his eifaects; his widow a> since paid over to ihe recciver of tat eom- pany # part of the funds 1 believe that, at the tims Tbecame a diseetor, the stock of the State Bank was subscribed in full; 1 s0 understood it; 1 don't know carried off its funds; company. The compa after August, 18% were thought to be the business. 1 don't thick Earle inte came n director. A large amount (f the stock was pur- chased by E A Thowp-on. [holdin my hand 250 shares: belonging to him: Willard Karle held, of Thompson's stock, 1M shares, and D. Sanderson 250 shares, I dom't know what amount £, \. Thompson held hitaself; one por- tion that be held consisted «f 251, also aaotber lot of 287 shares, I think Norton held some of the stock; [ got thee x p Mtervey Dayton 1. Condit to A Sanderson’ 250 vuged to EA. Thompson; Samuct 8. boty and the at held about the same amount of stock that we held; the whole namber of shares was (The evidence ‘shows that ¥.4. Thompsou helit 2.02 shares.) 1 was at the bank ou the 13th of August, 184%; it was proposed thut an affidavit shovid be mda under the act of the Legislature, by the President and Cashier, at that time; L prepared tae affidavit pro- duced on the }8th of August; that date ia altered to the 20th. in the figures of the President; there was a nee of Directors at that time; there present the Pre: King. I. Nerton, W. King. J. Cutler, W. Thompson, 1, Day- cofieid; somebody said the funds wore not ht to be. aud we all said so when we into it: Cheard no suggestion that any pact of the funds they were counting Wore not good; ot he contrary, I heart it suid they were goot; the fendant and others were counting the funds; th was a deficiency; ail so considered it; I cannot say how much; it was small; some thought a par of the assets might be Uiken, and there were dis- cussions about it; # proposition was made to send Earle to New York to raise cash funds; C under- stood he went afte rds; none of the items that hav+ been mentioned as making up the capital wore #x- changed ou the 18th of August; Lthink K. A. Thomp son's idea wee that the banking house was « fair it eesh, but I told him that would not do; I hew ' Condit tay. at the time that there was $20,000 or over to FE. A. Thompson's credit; 1 don't know of BE. A. Thompson drawing aay checks on the bank before that time; the president and cashier, on the 18th of August, refused to make the affidavit thing could be made right; would return from New \ his arrangements there; siety to geturn to ‘A. Thompson expressed his ncinmati; he ny rd to be the affidavit, he said be bad funds a his control sufficient; he hat $15.000 under control, so that he could get the money; I thought him good, from all that I had heard; there ap peared to be no doubt about it; I took all the ery A pson had the entire contidence of the directors of the State Bank at Morris Cross-examincd—Some of the directors who were pre- sent on the I8thof August went out of office; a change was may in the board; K A. Thompson thea brought into the bank; 1 understood that he was to be the ownrr of it; he resides at Cincinnati; J. J. Scofield went out of the direction of the bank; #4. 'A. Thompson teed to give from $2) to $25 forthe stoc's; this was all stock; under the act, the par value was made $20; shout the time the bank started; they wanted to meet what he got it in; the directors of the Insurance Com- pany were ‘General Stryker, Mr. Sanderson, Judge Brown, udg Taylor. myself and others; BE. A. Thompson resides: ¢ nati, as far as | know; b never had any Thomas A. Hartwell sworn—I reside in Somerville; 1 was acquainted with the Protection Insurance Campany; their reputation was in the spring ana summer 1849; T had intended to invest some money there, but afterwards chai Thad heard an unfayor: ot the company. Edward (Judge) Condit examined.—I was president of the State Bank at Morris for several years, and was so till the 15th of August, 154%; L beeame nequainted with E. A. Thompson; he bough! the stock; I cannot say how much, pretty much all of it; the sale was talked of be- fore, but was consummated on the Ith of August, the day L resigned; I sold between six and seven bonded tbares for myself and others at $28 per share; I tecvived from him for «ame about $7,000 in bank notes; I had hie check on the State Bank, in the firet place, for the wmount coming to me, he paid me the assets of the bank in part; the whol of the sale for myself and other was about $21,000; there was & sale made by the bank to mpron of « lot of the old asrets of bank; I think that ele was made om the 18th of August; he ve for them abo $14.000. From the book: t appears he gave $13,004; he paid for these assets, Tsu pore, in cash, but I don't know; we took them back Tn ay for} our stock; it was all donejat one time; | did not receive my pay until Thad resigned as presi- dent and director, but I did receive it the svme day the assets were assigned by the bank to Mr. Seofleld; [ eannot say whether the assignment was to Thompson oF to Scofield; Lam not eure that Thompson bad a apecia deposit in tho bank before the 18th of Augnat; I know that he had money In the vault before that time, bu there wae no entry of it on the books; it was understood to be $20,000, before it was opened on Saturday evening the 18th of et The checks produced are thor of B.A. Thompson. They are na follows — August IeCheek for Asrete “ to HW. Dayton to stoek. to . Dayt thee to stock. Norton and The Avgust 18—Check to BO No date —¢ $18.018 41 h stoek altogether was sold by cofeld, and myrelt; I drew some $5,000 on I m’s check, principally in Sus tehannah bills Teannot tell how ton, ry Tunderrtood it tobe a tact. tha EA Thompson had them in the vauit; I received that money aseaah; Tan deretood it was at « discount; if there should tura out to be any lors by discount, it was to be made good by Thompron; I dixpored of some of that money—$200 or ; T paid it to rarinns individuals: some of it to Jason Kio. some to Pierson Freeman, and some to George ip) i , and some to William King; I neyer heart ang com- aint about it till yeeterday; the residue of the money afterwards lent to Egbert A. Thompson; le wanted it woesraty enpital for the bank to begin od fromthat cireumstance I suppose it t have heen before the wearing of the affidavit, it between $409 and $700; I received the security of Thempron, David Sanderson and Pootor Doty; it was a joint note; TL reeetved the $7,000 absolutely, and without ‘any condition of re-tonning: I would not receive at that time the Susquebannab money for depostt, though T would take it for a debt; nearly the whole of the 17,000 was Busquebanoah money; 1 took it fm payment from Thempeoa; | woud have tece'vod the cheek ef David Bandetson as rend| y at that time asa bank bill, le war in goed ceeds, aact 4 aypa of large poopeety, corfitied phoras (laughter); I knew respectability {considered Slo Staaf reece, ity aman also; 1 supposed he was a man of means; bad least doubt of the good faith of the deposit he 70. Crega-examined.—I don't recollect when the first appli- cation was made to purchase the bank; It was some. where about May; it was consummated the 18th of ust ; I received payment for the $21,000 worth; I stock note! [ man not tl im the first e, in my own rolled the stock that stood in the name of William King, Geonge King, P. Freeman, and N. W.Condit 1 wehannah billa in part payment of their u Frock | Tt them about the 30th; the Kings kept their avec unts in the State Bank at Morris, at that time; the note was paid hy Sanderson to me a couple of months ba 1 % was talked im the board of selling the assets before there was no resolution to do 40 (the book of minutes was here knew that to be the minute book; sell the assets to Thompson; there was an understanding that myself, Scofield aud Dayton should receive our proportion of the assets, according to our respective stock ; the board agreed to sell all the ets except the banking-howse and the furniture, to ‘Thempaon; he paid tor them by checking against ‘his own funds in the bank ; T don’t know that he had any other money in the bank except the $20,000 Susque hannah bills; the thing was never consummated till the ISth of August ; I agreed to take the assets in pay- ment of suy stock. Court.—What was the par value of the old stock? A.— $50. Q.—What was it worth after the 18th of August? A.—It sold for $28. Mr. Little.—Did you sell tho assets separately, or the steck with the assets? A—They sold the assets first and the stock afterwards Witness continued, —| for a check of $13. 964 37; there was no paper, no docu ment; theassets were never transferred to Thompson. & all, they were transferred toJ. J. Scofield; the $13.96 37 worth of assets were scid fo Thompson, and with tha eum, af far as it went, he purchased the stock; I took the money that room; I lived ia the bank; I gave up my stock note as t payment of my stock; [ wim nos sure whether it was y means of a check; got ulso the #tuck notes of Georga King, Jason King, Nathan Condit, Peter Freeman aad Nicholson. Judge.—What became of the $13,000? Counsel for defence.—It beeame & part of the capital of the Lunk. Nelson Wood recalled.—1 was acquainted with the na- ture of the assets of the bank when I left it; [ bel the ageets were sold forall they were worth; all the stock. except 755 shares, d tothe bank; the whole num: © preamble ‘of the act states that the stoek was worth twenty dollers per share, tbat representation was t consideved as sunk; the bank was in operation since 1812; the banking house was inciuded in the valuation of tke stock in February, 1849; L agreed to sell soe of the stock at $23 00, after the books were opened; I asic ed $25, Charles EB. Scofield recalled. —I don’t Isnow when the new books were procured for the State Hai cantot say whetber it was after the uew organization; L Was present when the newbooks were first written ap; there bad beem some entries made betore. mt the priuck palentries had not; Iwas called in whemthrve or four eaves were written; that was about the dist of August; py the pages when T was there: alr. Norton prade the new cutsles from: statements made by me; he said the book: had got into confusion, and he seut for me to plain them, as weil as & could; it wes on aceount of this confusion thut the four leaves were abandoned and sealed, and the new emtries myo; 1 was in the bank port of two or three days; Norton sad Dayton wore wot iendly, and Dayton did not look at the books; this about the time that Mr. Dayton ceased to be cashier; I came there at the desire of Norton, but Dayton sold me afterwards he was very glad; the object was to write up aththe aecounts, as they ought to have been; the drafts i ag about ware in the drawers; uobody eculd tell anythi the books, and all was in confurion; Mr. 5 Me. Dayton about some paper, an it to him; 1 was present ou the 18th ef August, 1S. wae not there tong; 1 war only im the olfiee, mot int as counted partly wil to be $20 000; Thompson's eredit, I know the 1 to his t before the kx were given; I drew the body of the eheck landed for $5,004; Thompeon drew one for $7143 90; the cheeks ameunted to enough (o pay for Judge Comlit’s stock, Sehofield’s stock, and Harvey Daytona; some ‘of the cheeks were drawn before; thore is ome for $4189 ing from the banking room into my own e} 3 about 34.000 oF $5,000 were | | But if all the allegations of the State wer dated Lith August, which wae there ou the Isth; all my | brother's and Judge Condit’s were there. but only som of Payton’s; (book here handed to witneea;) the exh sceount in the ledger is altered in several places; when tthe cheeks were presentod the motes wore given Up. ex cept # portion of Mr. Dayton’s; I told Norton that it ap peared trom his own books the eapital stock was not there; le said he did not think it of any inportance whether it was or not; we were speaking at the tims cf the entries be was making. ‘Po the Attorney General—I am uot a hank man in any Tam of the legal professions Mr. Dayton had cash book besides that produced; this wa ely by Mr. Dayton; it may bave heen called the hooks were but ov explanatiow the moa came out right; it arose from igeorsnce of bank ac and all other accounts jam Hatfield, exemined.—I am father-in-law of Hartey Dayton; his business has been that of a dentist; don't think he knowsanything about baukiae; E should think he was not very first rate at aceownts (Laugier) ‘The defence here rested. Col. Thompson was then called to give rebatting testi« mony on the part of the state.—He ing show two drafts of the Protection Lusurauce Company for $10,000 ea: rays he is not aware that these were diseounted at the They went out of his hands into illard Karle to raise money on y here closed on both sides, and t alt past six ovelock, until next wad 1nIR Mr. Theobold Little then opened ine snid ho was deeply embarrassed. The caure was one of né ordixaty ebaracter; and it was bat seldom that x citizen of the sounty was indicted for che high, the awfal crime of perjury, He bad never heard of an ofliger of an ineot- porated bank, being put on trial for this erame, in the State of New Jersey, It was a crime by which the bound by every principle that actusies an honest man, to frown down aad charge lished. and punished as it de no offence whieh was regarded by the Laws of God and men, as higher than that of perjury, except one. It ought tobe so, Truth nud faith lie ai the foundation of society. Without truth and fairness, and hon what security baye you for your liberty, your liv or yeur property! “What chance has larvey D: ton for his liberty? — All your offices, from the highest to the lowest, are beld under the sanction of an cath. Why? Because it i« found that every man has some regard for the responsibility of an, oath It is w high crime, therefore, that he ie charged With, The State does not ask you to find him gnilty oa supporition, but by evidence legal, cloar, and sucl as the Jaw cays in competent, and the nature of the ease adinaits, and such as you cannot by any possibility doubt. Uf the State of New Jersey produces euch evidence as this. it has 4 right to demand of yous verdict of guilty, The ease is cleared of all legal or technical embarrassment. Every Aitheulty of this kind was previously settle’ by the Sa- preme Court. It is, therefore, peculiarly before you as a Jury. The defendant stands charged with the swearing falsely, wilfully, and corruptly to matt in his own knowledge and pow ry at common law, for that in a judicial proceeding, but it is made a felony ander the statute, Erte oath was knowingly false, then It was corrupt. That it was wilful appears from the fact that the defendant, on the night of the 18h, refused to take the oath; om the 20th he took it Harvey "Dayton and Lambert nd abeotute in its term je, and wilful, end false, of if the man who takes it hax no probable canes for believing what he swears, he is guilty of the crime changed in thie indictment, According to Wharton's Criminal rav June 19, 185% Norton is waqualt- if « man swear toa particular fact, he is guilty of if th without knewing whether it cope and plain meaning of the act is to guard against titious capital. Dayton & false onth wh fictitious to be / act Was bot for the he represented what ww fide, for banking benetit of Kdward Tf an owth is abe | | whole story, fro The oath sworn by | Dayton and Jame» Scofield, but for the seeurity of the | public. The eapital of this bank consisted of promises to pay, without any thing on which to base those promises Itis mot the first time that false aad fletitious eapital las been employed in the banks of this State todelude andde- | fraud the public. The State is therefore warned. That t actors inthis business never intended tocarry ona bonk, fraud i# evident from the fact of their disposing of nearly the whole stock to # stronger just the moment they got ir to operatic set then Went on tocontend that cash wight be good or bad. what ehee of opinion, but something of Suequehannah biils were of ise the face of them. At rfore which was always one and the aan t be cither specie or that whieh will immediately command specir—the bille of other banks, which can be wed directly, and not by hypothecatic vem its own issues, That isthe very object of enpitalin bank, otherwise it would bea mere shaving mashine Snel Was not the eapital of the state Bauk at Morris, Hut eup- Posie ¢ It was ever se good, the question is.was It there b fide for banking purposes and operations! The evidence shows that it was not. Counsel then proceeded to exe. mine the different itoma of whielt the capital cons and then asked, if it was really $4000, how d ba e that the certified o 4 One thing is clear ted them as each. Mr. Dayton called cash when he swore the aMdavit. by after, (Lavghter. in whieh the scow ‘This wae no langbing matter. of the value of the sunt ef the fact the $6 009, wae only worth $4.000-—that hie ctedit im tho bark—and the easel 5 that there @ns & etipulation that tie accunnt «le e toon for th re the check was present ; and he sito eworw that he would t sented. Aitee some further ob never be- | find oy sold my assets to Thompson | other | dieted for this crime ci | gai re counsel concluded a very able and effective address, calling on the jury to fix the mark of Cain upon the soner at the bar. The Court then took s recess for dinner. Mr. Frelinghuyse the court resumed in the afternoon session, replied on the part of thedefence, He said bis client was c! with a crime second only to one other—a crime of enormous magnitude, which will send the defendant to State prison if convicted, and which will unman and degrads hig ** rever. He and the learned counsel so far agreed; bu&é aere he stopped. It was with great pleasure be listened to the maiden speech of the gentleman, which was equally ingenious and eloquent. It was the first time he had done battle for the State of New Jersey, and the eflort was highly creditable to him. But he was sorry to see the learned ppenling to the prejudices of the jury, and lug. it to do wit! ging in every irrelevant issue, What had the crime for which Harvey Dayton was charged, whe- ther Egbert A. Thompson was a scapegoat, or whether the directors had lined their pockets, or whether the community had been flooded with paper money? One would think he was intimately rel to tho’ hero of New Orleans, so conversant dil he appear with Danks in the slutract. The question was not any of these, but whether Harvey Dayton had sworn falsely and corrupt- ly. The bank had sold the stock either. for cash entire. 1y. as in the cake of Mr. Kieran, of New York, or | j they took $1 on the share, and notes at four moaths Egbert’ A ‘Thompson purchased | for the balance, stock to the amount of probably 18,000 shares, for which he paid what he (counsel) considered, and would now assume, was cash. What difference did it make that he had the money previously deposited in the State Bank? | there was cas in ‘The operntion would have been the same if it had been deposited in the Morris County Bank. ‘The defendant did not swear that there was $40,000 cash in the bank, but that the bank had $49,000 for banking purposes. If the dictionary is quoted, cach means ready money, oF monry in bank; but if the law be quoted, they do not thing of the kind. The learned counsel on the ide forgot to give a legal definition. but be (Mr. ¥.) held that bank bills of otber banks, paying specie. or certified ebecks, were cash, It did not mean hard money | Attorney General of the State of New Jerey, ) of Morris Their own witness proved that in his annual statemout, | made on oath, he always entered the notes of other banks as cath, and also the bills of individuals not yet due, Wood and Vermilyea both said that they would not reeeive the bills of the Susquehannah on deporit Neither would they receive the bills of Western New York and Pennsylvania, The reason why the bauks do not receive them is a regard for self-interest—booause they wich to circulate their own notes; but that fet does not lessen the value of the notes. Jadge Condit reecived $7,000 of that money, and tells us that bad no expectation of re-loaning that sum, another fact. He said the money was received generally thronghe city. It is easy to ory mad dog. now that the Susquehanna Bank was broken} but at the time the affidavit was «worn, it was cach, not trash, All the State has shown is, that the bills were at from one to one aud & haif discount, The certified check of # bank is as good as the bills of that bank, whether the drawer has any | money in it er uot upon David Anderson to prove there was money in the bank to his credit. to pay the checks he drew, It was the business of (he State to prove the negative. Much stress has been laid on the words bona fide, and it was conten ed that because the bank failed ifterwards, therefore the affidavit of the defendant ix false, ‘The books of the bank on which they rely are falxe, and entries are mde on the 3ist of August of matters whieh occurred before the 1Sth of August. ‘There is not a particle of ev that the Protection Insurance Company of Somerville, Wns not in as good credit as any other institation in the country he 20th of August. Dayton was not to blaine if there was anything wrong, for he was nota juige, bat Was acting under Norton. who was the President, and the proper officer to determine what securities were good. tiene, they would be only om the threshold of this case, necessary to show that he swore not only faleely, but that he intended to swear falsely. It appeared from Archbold. 570, that the perjury must be deliberate and wilful; and in Koseo, 768, it was held down that it must, be gorrupt, ‘The counsel for the State misapplied the Principle of IAW in reference to deliberate swearing. It did not mean to take time and doit slowly, but inten- tionally; fora man might be # year meditating on a thing. and mistake it afterwards: and if he swears to it, it would be no perjury; whereas, a man might swear toa thing that was true, und commit perjury, For instances, T might swear now that Webster was in Newark. ‘That would be perjury. even though Daniel Webster wore there, for be (counsel) did not know whether he was er not. It was admitted by counsel on the other side, that Harvey Dayton. on the idth of August, would not west to the fet that there was a capital the bank. Why? ¢ bis com full ninount was not there. Yet this is the vagabond, the Cain that ought to be branded with a mark of in my! (Here Dayton buret into tears.) ‘There are ti sunds of indeceat men, ignorant of the nature of wg, who, surround fonr lawyers, all u towehed “the book man as Harvey Dayton for the flest victim, the defendant burst into tears.) What had Harvey Dayton in the bank! Just five sh Would he have committed this onormons crime guilty, then the mea b, he made tbe afidavit, the directors wh guilty of subornation of perjur; tthey are not in- Hf the Jeferdant felt he was ty, then he would bave made the books cover wp that Dut on their face they bea evidence of the very everse, Again: be was taken into ® peivate rcom, anil he was examined ly commission¢rs, and he stated the beginning to end, and itis upon his own depositions alone that the State have one particle of evidence agoinst him—a particle of proof of what the $40,000 consisted. Counsel concluded by a touching ap- and expt a hope ald believe his ciieut was only chargeable and not guilty of so heinous « crime re The State does not waut such (ul interest Ant If he is surrounded when assented to it, are M peal to the feclings of the jurs that they w Dourt then adjourned till Friday. rourtn pay Fray, dune 20, 1861 Mr. Pennington addressed the jury for the defence, at the opening of the Court, this morning. Ile said: My ap- mis that I «hall rather weaken than strength Tt devolves tp: part of the defen the eloquent argument of my associate th me, however, to close the ease ¢ better, being bora, that kis wife were now » widow, Miscarded from roctety, and his forwhead branded with the mark of Cain, as the prosecutor asks youtods, 1 atk no favor nt your hands, Tonly ask that you should regard his conduct in «wearing the wMlldavit, ‘ax God re garde it. He is not indicted for a legal teebniess perjury, but for wilful, corrupt perjury. Ite is not to be tried by prejudices, nor by public elainor, no matter from what quarter it w He is net to | me, and no matter by whom instigated made the vietiin of any man's inalice or Ie is to be tried on the single isolated 1 guilty of the crime laid in this indictment, 1 of the public prosecutor, the vengeance wheiber be hether the notes of the State the notes of the Susquehanna Bank ble at par. Ishall not follow the man to not to Cincinnati to defend the ter of Egbert A. Thompeon, whom i verily beli a» honest a men as any in’ this country. I am not he to defend my client against the inflammatory bara of the gentleman, elty of his posit there being a power behind the throne greater than the throne ite Mr. Little (considerably exeit will not «ubmit to this an; I have borne it too long. Tain n Judge —Cow not have improper motives imp Mr. Little = will not permit it, Ihave net the op portunity of reply, else I should not stand up now. But it he repeats theme observations Lehall brand him be- fore the public, aud call him to acoount for it, [ have beard of this thing before. tt has been rumored abrond Court.—Don’t mind that Mr. Little 1 know what he means sm ready to explain. Lwavt him to state what he menns, abd [shall give ample explanation, If he wan’ to guin his eause by bullying and browbeating the coua sel for the proreeution, he places himself on the sae level with the man whose posit ion | do m Court —The counsel mast be eonside not te have personal motives imputed to hi I think, and I Ile has been pointed publie proeecator. Mr. Pennington —I have no doubt of hie being ap- pointed by authority, Mr, Little.—Yea, and you nid | was influenced by “« on behind the throne human being, Coght to bear. Jam influenced by wo Tam wilting to bear as much as eottinel I bore yesterday more than { ought from the other counsel Mr. Fretinghuysen.—1 have imputed no motives to im Frelinghuyren.—Why, the gentleman is quarrel. ing all round. and striking at everybody that eves b fore him, (Laughter among the jury.) udge (knocking with hit hammer) —T cannot permit itis no inughing matter, If it was a question of laughter might be imdutged in it jel, oeceded with his address, amd puted nothing to the gentlemaa thatds from what he has «vid in thie court. it » clamor of the gentleman on matters bat my client is to be tried. ‘Tho de dant etands charged with « false, wilful. delf\erate d corrupt oath, Ithen went on to tead the in dietment, and eto show that the crime of perjury de an individaal merely ewearing two poutradietory oaths, for it is uner them ® fale. Upon the showing of the State, the act reorganizing the bank w its meaning as to the word cash; and has glit to have his about what a » MeCullook's on edition, of 1850, page it Me. Pennington th raid hav net an in! doubtful in Shich defines capital to he the eum of mon t chant embarks or contribute to ook; it lefined t the trading nl merehant or y.or the banking fant of a baok—the eapital ai It fe wet, counsel evotended, the fund lying » voulta, bot a fond avellabhe and for pro- duction, this being the veay object of a bank Page US of the seme authority define exh ine meters ty mena oaly Teedy moaey, but drafts, ‘The State are not bound to esl | 7Y Le was | that he should be | lefend his whole life; and it is | ® | the person to whom they are a tendered accet f ho is probably iaduenced by the | m, and perbaps by other causes, | | | iers of banks showed that they would not take them | by euch # faive and fetitions ea false; that inintiff, when judgment is confessed, beipg obliged to Bwear tothe o consideration of the po he swore thet it was for money lent; but it was proved that he lent no money, but a note of a third y. ponsed from him to defendant. Yet the Cours hei@ that the affidavit was not false, proving that # notemay be eworm toas money lent. But when Day acheek of « good man before him, and MeC dictiouary telling him that it was cash, is to be srrnigned for per- | jury. The same decision 3 that the sons should not be treated in the same way. The uchanneh bills. about which so much has been said, were as good as any other notes at the time they were deposited by ‘Thompson and the affidavit wassworn, Then, este checks, it wax sworn, by the cashier ofa bank, that checks are eush, and are eworn to in his returns not only as such, but as specie funds. If they were specie fande, they were, at all events. cash. Sai "8 oer- tifed cheek waecarb, Ta that admitted by cownsel ? Attorney Gencral.—No, for the cash was not im the bi ank Mr Pennington —There wore securities Attorney General —That ix just the distinction, I¢ there was cash in the bank, the certified check would Mr. Pennington —This is drawing rether fine for the Then e+ tothe cheek of Harvey Daytoa for $6,000. over whie': the counsel for State so glou This check was certitied and it was net the less cnet: beenuse he was the cashie Himeelf. and beeause he only could draw the fonds fe that ebeck. ‘To ak to convict Harvey Dayton upon sue grounds, is an abuse of the publie justice of the count and the State ot New Jersey. Bu the next question is, whether the bills and checks aud other sccurities, were bona fide the ty ot the bank, If they were the property of the bank, the; weretuna fide its property. If a man own a horse. it is Lona Jide Kits horse, Lf the prosecutor was actuated ouly by public zeal, why did he indulge in such clamor; aad why dees he sneer at such a nan as Edward Condit, whe je now on the verge of the grave ? Mr. Little—I must now insist upon the gentleman teit- ing jury what be means. Iwill not permit 9 sirangee here, fom another county, to impugn motives, Let him bes ot what he means. Mr. Pennington—I know nothing but from the gentle- mmen's own conduet fm this court. Judge—No such inference can be drawn from the words or conduct of the prosecutor, and eounsel must not repeat those observations. Mr Little—If there be anything. I want to know what itis. Isbrink from no re ibuity. either before this ary or anywhere elae, Persgcution has been resorted te ever since this prosecution commenced, to frown dowm every person couneeted with it, Mr, Pennington then went on to show that Harvey Dayton had no motive to commit the erime charged against hum in the indictment and concluded by calliag on the jury to try and judge Harvey Dayton as they would be tried aud judged themselves. Mr. Elmer, the Attorney General, then proceeded to close the argument ‘id he came there ignorant of the transactions in the xcept from evidence, is duty was to aid his associate iu trying the indictment. Op- posite counsel had indulged in # tirade against the State, regarding ber rather as a meuster than the beautiful fe- male she is represented. He bad also most wrongfully charged his associate with corruption in advocating the caure of the State in this matter, appointed, as he was, by the Court, the special proseoutor, and bound to do his duty. Most nobly had he done it. This ix a painful duty, but necessary to the welfare of the community; ‘and let justice be done, in which we are all interested, Your duty, gentlemen of the jury, is also painful, one, but anust be firmly met, Your path and yourduty tom- pelyou to it. You must not look at’ consequences, for Which you are not onsible, ‘The issue is im- portant, but «imple. ‘The Tapreme Court have unaai- ously sustained the indictment, and animnadverted upon the neeersity of watching banking institutions. Mr. Elmer then went on to give @ history of the bank. i Jed to discuss the intention, which wae y to coustitnte a erime, Harvey Daj any other man will say that he meant to perjure bim- self. You judge of the intent grom the act It is the same in reference to murder, You judge whether it ts Murder or man laughter by the manner in which it ix ‘The jury must not be led away by the eloquence oungel, ior Juries Were too often persuaded out of fom verdicts by appeals to their prejudices and cheie feelings. So freiuent, indeed, had such eases become, that there was great truth iu the proverb,“that the Law sanet to caich small rogues, but when it has got large one in its meshes, it breaks.” Mr. Kilmer then went on todircuss the nature ofeach. He ard: What is ewsh in the vaults of & bank, it not whet A and B wny agree to make so between themselves, What they agree upon is binding between them, but does not bind the community. The ease cited by the counsel of the other side bas uo bearing upon this transaction, If aa individual agrees to treat a*house or a horse as cash in « desling between him aud any other individual, the law Will re gerd it assweb, th everybody knows that for banking purposes neither one nor the other is cash. In the case eited there was no bank, no capital; and in that respect it bears no situilitude to the presettcase It wag im evidewee that there were two or Ubree lawyers present. at the meeting on the 18th of August, and when it was prc posed to include the banking house in. the eash eapi- tal, they thought it was rather close financiering. When the gentleman travels to London he goes rather far to as- certain the meaning of cash. He goes outside the case, MeCulleck merely says that cash, in commerce, means ready money, or bilis, or checks, oF drafts, or bonds, oc Whatever paper is immediately convertible into cask and isin the porression of an individual. This was in commerce, snd referred to the steck of @ mer- ehant. The learned gentleman went on to cite prece- dente, and them came to the language of the affidavit, All cases turn upon the aflidavit fhe question is, what did the defendant mean! The law required thet am aitidavit should be made in cases like that of the State Bank at Morris, for the protection of society. But, ac- cording to the counsel, there is no use inthe law, for no person can be convieted upon it, whether he swears truiy or falsely. This was the absurdity to which counsel would lead them. The only interpretation he (counsel) sought to put on the adidavit was what they put om it themselves on the 18th of August, Counsel wae it apes that they would do thie and that? The whole thing was so strange that it was impossible to determine what the gentleman would do or not do, M.A. ‘Thowpron thonght that the banking house might be re- garded would not swallow that, far as they were pre- U ints had been made as to the hard- of allowing the defendaut to come intocourt and is own story. This truly was a terrible op; wire written either ignorantly or de- edly, or both, in such a way that mobody could understand them; and yet counsel complains of Dayton being allowed to give bis explanation of them. Jt was given without compulsion, and it is the basis of this prosecution. Counsel here read the of Dayton before the Commaissioners, and then proceeded to advert to the Susquebannab notes. Le maintained that these notes were not cach; bank bills are a tender, if its them at “bgrvas, and by a law higher them ¥ the immutable law of ie al tender. The notes of & beak in Cali be regarded here as cash by rege Tye ake them! Who would take an ete cash * would be giad to get one of them ad give more then cash for it The Attorney-General—You might do #0, but that Would not make it cash. It was tated that the Susque- hantah notes were taken. The testimony of the cach- Mer teud that if these checks were ever juchannah bills were ever #0 good, y as '~ hi eh. By the ki a drench Mr. Pennington. —I then went on to ee #0 good, and if the they were vever luna side in the bank. They were brought there to «wear by, and nothing © {ntended to be used for bawkin The; vofponee jen mutineg ba wore never y Wore & © bad were worthless. The fact of the sale of th vidual, chewed there was something #rong. There never was an instance of a hank being bought that it did not fail. In the nature of things, it wae not designed that » bank should be controlled by one man, and thore who gave him euch con wld rue it as long as they lived. he whole operation reminded jum of @ magichen who could change the ball from one eup to another by the blest of hi: mouth, and the efforts made to revive a banks al, was like the appli- that had been exe system. The dead body: rite as if it were tb aor atilness of deat! The learned Judge then proceeded to charge the jury, and after stating the nature of the indictment, and Ei¥ing @ history of the bank, via-icated the prosecutor, Mr Little. from the charges insionated ageinet him, end then went on to discuss the eeveral points with calm dig- nity and great force of ressoning. Ie warned che jury thet if they shrunk from the performance of their duty in pronouncing the defendant guilty, pro. Vided they believed bim to be so, they woul the ne " i | predicament. He concludes « Mes recarded me by praying the Ged of Trarh might them to a verdict that woutd setlefy thete ows jenees, maintain the majesty aod power of one and do the defendant full justice. ry then retired. and were locked up at a quarter to seven O'eloek etly ate quacter past uite 0 cle ky « bell of th rt Hotise was heard to toll, signityiag that the jury agreed to a verdict. The eltirons hastened rn the resit; and oinety-nine ou, of made np their mind shat ot aequittal. All alone it vpreston that ther n of gelvan! to « erhm It excited the w Ly fim paa ti ppored to be other friend s werght of the evidence, and the calm nad powerful noose of the jury, Pad iptetely diferent from fe liberation of te howrs Court, and ann: Ogton being wae: the rentict ented a poll which aid owl by preaowneal ty, Oppenl of the Judge to the conve reoult wa After # thet effect, and th whet War exper aud @ bait, they te their terdiet of © @witty the beth, was in aticndan Tire counss fe Wct alter the test de atene Ta