State v. Scougal

Citations

• 3 S.D. 55
• 15 L.R.A. 477
• 51 N.W. 858
• 1892 S.D. LEXIS 34

Syllabus

<p>1. A franchise is a special privilege conferred by the government upon an individual or corporation, which does not belong to citizens of the country generally by common right</p> <p>2. At common law, the. business of banking, in all its branches, was open and free to all, and belonged-to the citizens of the country generally by common right; It did not constitute one of the prerogatives of the sovereign, or pertain to sovereignty.</p> <p>3. The only banking privilege that is made a franchise in this country Is the privilege of issuing bank-notes intended to circulate as money, -which, since the adoption of the constitution of the United States, has existed in the national government, and, when not exercised -by that government, could be exercised by the several states.</p> <p>4. The business of banking “by discounting and negotiating promissory notes, bills of exchange, drafts, and other evidences of debt, by receiving deposits, by buying .and selling exchange, coin, and bullion, and by loaning money on personal security,” was not a franchise at common law, and has not been made such by the state or national constitutions.</p> <p>5. It is not a constitutional exercise of the legislative power to deprive the citizen of the right to carry on the business of banking, — other than that of issuing “bills or paper credit, designed to circulate as money,” —which belongs to the citizens of the country generally by common right, and c onfer the exclusive privilege of carrying on such business upon corporations organized as provided by an act of the legislature, on the ground that such business is, or may be made, a franchise by-legislative authority.</p> <p>6. It is not a constitutional exercise of' the legislative power, under the police power of the state, to deprive the citizen of the right to carry on the business of banking by discounting negotiable paper, buying and selling exchange, receiving deposits, and loaning money on personal security, and confer such privil