Wheeler v. National Bank,
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96 U.S. 268 (1877)
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U.S. Supreme Court
Wheeler v. National Bank, 96 U.S. 268 (1877)
Wheeler v. National Bank
96 U.S. 268
Suit by a national bank upon a bill of exchange. Defense, usury. The bank, in discounting the bill, reserved a greater amount than was allowed for inter est by the law of the state where it was situated. There was no proof of the current rate of exchange. Held that the bank was entitled to recover.
This suit was brought by the Union National Bank of Pittsburg, Pa., against George M. Wheeler, as endorser 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 percent per annum.
Said bills were duly protested for nonpayment, 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.