delivered the opinion of the court.
'Williаm H. Baldy, a citizen of Georgia, died in that State prior to the civil war, leaving several children, one of whom was Marianne J. Baldy who became of full age on the 21st day of February, 1875.
In 1857 Dr. E. H. W. Hunter was appointed her guardian, *390 and after duly qualifying as such, took possession of the estate of his ward.
By an act of the legislature of Georgia, passed on the 16th day of December, 1861, guardians, trustees, executors and administrators were authorized to invest any funds held by them in the bonds issued by the Confederate States, or in lands and negroes — an order to that effect being first obtained from a judge of the Superior Court, who was empowered to consider and pass such applications, either in term time or vacation. Georgia Laws, 1861, p. 32.
On the 25th day of April, 1863, the Superior Court of Jefferson County, Georgia, passed an order granting leave to the guardian of Miss Baldy to invest certain funds then in his hands in Confederate bonds. This order was granted upon the petition of the guardian, who expressed the opinion that such funds should be so invested. On the 'same day the investment was made.
The legislature of Georgia, by an act approved March 12,' 1866, No. 121, entitled “An act for the relief of administrators, executors, guardians and trustees, and for other purposes,” declared that all administrators, executors, guardians and trustees, who, in pursuance of an order, judgment or decree of any court having jurisdiction, or of any law of that State, bona fide invested the funds of the estate they represented in the bonds, notes or certificates of the State of Georgia or of the Confederate States, “ be and they are hereby relieved from all the penalties of mismanagement, misappropriation or misapplication of the funds of the estates they represent, by reason of such investments;” and that all administrators, executors, guardians and trustees, claiming the benefit of the provisions of that act, should, before their final settlement, make oath before the Ordinary of the county in which they had theretofore made their returns, “showing what funds of the estates they represent they have so invested, and shall also swear that the notes, bonds or certificates, so held by them, are the same kind of currency which they received for the estates they so represent.” Laws Georgia, 1865-66, p. 85.
On the 2d day of July, 1866, the guardian made a return *391 to the proper court of his acts for the years 1864 and 1865, showing the amount in his hands, and also made'oath before the Ordinary of Jefferson County, Georgia, “ that in 1863, in pursuance of an order, judgment or decree "of the Superior Court of said county as guardian of M. J. Baldy, a minor, he did bona fide invest twelve hundred dоllars of the funds of said minor in the eight per cent bonds of the Confederate States, and that the bonds so held by him are the same kind of currency which he received for said minor’s estate.”
In 1876 Hunter received from the Ordinary of Jefferson County letters of dismissal as guardian of the several children of William H. Baldy. He died nine years thereafter, in 1885, and this suit was brought in 1893 against his executor in the name of Marianne J. Baldy by her next friend, she having become of unsound mind as far back at least as 1875, and being at the time this suit was brought in a lunatic asylum.
At the trial below the plaintiff asked the court to instruct the jury that “ ah investment by a guardian of money of his ward during the Confederate war, and while both guardian and ward were residing within the Confederate territory, in bonds of the Confederate States, was unlawful, and the guardian is responsible to the ward for the sum so invested ; ” and that no act of the legislature of the State “ passed during the late war, authorizing the guardian to invest the funds of his ward in Confederate bonds, and no order of any court of the State granted in pursuance of said act of the legislature, would authorize such investment.” Both of these instructions were refused.
It is not contended that the case involves any question as to the statute of limitations.
It was agreed at the trial that the only matter in issue was as to the liability оf Hunter’s estate by reason of his having invested the ward’s money in 1863 in bonds of the Confederate States. This appears from the charge to the jury in which the trial court, after observing that its duty was to follow the decisions of the Supreme Court of. Georgia, said: “ In the present case I am authorized to say that it is agreed between counsel that the investment was made bona fide, and *392 the only question is whether it. was lawful or unlawful for the guardian to make this investment; and, further, that as I may decide the legal question, I shall instruct a verdict for plaintiff or defendant, as upon that would depend his right to have credit for that amount in his settlement with his ward. Following the decision of thе Supreme Court of Georgia, I charge you that the investment by Dr. Hunter,'the guardian, in Confederate bonds was a lawful investment. You are therefore instructed to find a verdict for the defendant.” A verdict was accordingly returned for the defendant.
The verdict was made the judgment of the trial court, and that judgment was affirmed by the Supreme Court of Georgia. The latter court, after referring to some of its former decisions, held that “ a guardian who, during the war between the States, in good faith invested the funds of his ward in bonds of the Confederate States, under an order of the judge of the Superior Court properly obtained under then existing laws, was protected thereby, and is not liable to the ward for the value of the money invested.”
The case is now before this court on writ of error to the Supreme Court of Georgia.
The plaintiff in error contends that the principles to be deduced from our former decisions require the reversal of the judgment. As this proposition is disputed,- it is necessary to examine the cases heretofore determined by this court.
Referring to the government established in 1862 in Texas in hostility to the United States, and which at that time wns in the exercise' of the ordinary functions of administration, this court in
Texas
v.
White,
In
Thorington
v. Smith,
In
Delmas
v.
Insurance Co., 14
Wall. 661, 665, upon writ of error to the Supreme Court of Louisiana, one of the questions presented was whether a judgment, which was otherwise conceded to be a valid prior lien for the party in whose favor it wаs rendered, was void because the consideration of the contract on which the judgment was rendered was Confederate money. This court said: “ This court has decided, in the case of
Thoringion
v.
Smith,
Horn v. Lockhart, 17 Wall. 570, 573, 575, 580, was a suit for an accounting as to funds in the hands of an executor, and to enforce the payment to legatees of their respective shares. One of the questions in the case was whеther the defendant' *396 ■was entitled to credit for a certain sum. in Confederate notes which, in March, 1864, he had deposited “as executor in the Confederate States Depository Office, at Selma, Alabama, and received a certificate entitling him to Confederate States four per cent bonds to that amount.” The-receiving of money by the executor in Confederate notés, and the investment of such notes in Confederate bonds, were, it was said, in strict accordance with laws passed by the legislature Of Alabama in November, 1861, and November, 1863, when that State was engaged in rebellion against the United' States. The Circuit Cоurt held that the executor could not exonerate himself from, liability for the balance adjudged to be due the legatees by paying' the same in Confederate bonds; that, as a general rule, all transactions, judgments and decrees which took place in conformity with existing laws in the Confederate States between the citizens thereof during the late war, “ except such as were directly in aid of the rebellion, ought to stand good; ” and that the exception of such transactions was a political necessity required by the dignity of the Government of the United States and by every principle of fidelity to the Constitution and laws of our common country. Upon these grounds it adjudged that the deposit by the executor of money of the estate in a depository of the Confederate States could not be sustained, as it was a direct contribution to the resources of the Confederate government. The decree, therefore, was that the executor should pay to plaintiff the sum so deposited by him in lawful money of the United States. Upon appeal the decree of the Circuit Court was affirmed, three of the members of this court dissenting. This court said: “We admit that the acts of. the several States in their individual capacities, and of their differеnt departments of government, executive, judicial and legislative, during the war, so far as they did not impair or tend to impair the supremacy of the national authority, or the just rights of citizens under the Constitution, are, in general, to be treated as valid and binding. The existence of a state of insurrection and war did not loosen the bonds of society, or do away with civil government, or the regular administration of the laws. Order was *397 to be preserved, police regulations maintained, crime prosecuted, property protected, contracts enforced, marriages celebrated, estates settled, and tbe transfer аnd descent of property regulated precisely as in time of peace. No one that we are aware of seriously questions the validity of judicial or legislative acts in the insurrectionary States touching these and kindred subjects, where they were not hostile in their purpose or mode of enforcement to the authority of the National Government,, and did not impair the rights of citizens tinder the Constitution. The validity of the action of the probate court of Alabama in the present case in the settlement of the accounts of the executor we do not question, except so far as it approves the investment of funds rеceived by him in Confederate bonds, and directs payment to the. legatees of their distributive shares in those bonds. Its action in this respect ■was an absolute nullity, and' can afford no protection to the executor in the courts of the United States.”
In the
Confederate Note case,
Sprott
v.
United
States,
From these cases it may be deduced —
That the transactions between persons actually residing wúthin the territory dominated by the government of the Confederate States were not invalid for the reason only that they occurred under the sanction of the laws of that government or of any local government recognizing its authority;
That, within such' territory, the preservation of order, the maintenance of police regulations, the prosecution of crimes, the .protection of property, the enforcement of contracts, the celebration of marriages, the settlement of estates, the transfer and descent of property, and similar or kindred subjects, were, during the war, under the control of the local governments constituting the so called Confederate States;
That what occurred’ or was done in respect of such matters under the authority of the laws of these local defacto governments should not be disregarded or held to be invalid merely because thоse governments were organized in hostility to the Union established by the national Constitution; this, because the existence of war between the United States and the Confederate States did- not relieve those who were within the insurrectionary lines from the necessity of civil obedience, nor destroy the bonds of society, nor do away with civil government or the regular administration of the laws, and because transactions in the ordinary coursfe of civil society as organized within the enemy’s territory, although they may have indirectly or remotely promoted the ends of the de facto or unlawful government organized to effect a dissolution of thе Union, were without blame “ except when proved to have' been entered into with actual intent to further invasion or insurrection; ” and,
*401 That judicial and legislative acts in the respective States composing the so called Confederate States should be respected by the courts if they were not “ hostile in their purpose or mode of enforcement to the authority of the National Government, and did not impair the rights of citizens únder the Constitution.”
Applying these principles to the case before us, we are of opinion that the mere investment by Hunter, as guardian, of the Confederate funds or currency of his ward in bonds of the Confederate States should be deemed a transаction in the ordinary course of civil society, and not, necessarily, one conceived and completed with an actual intent thereby to aid in the destruction of the Government of the Union. If contracts between parties resident within the lines of the insurrectionary States, stipulating for payment in Confederate notes issued in furtherance of the scheme to overturn the authority of the United States within the territory dominated by the Confederate States, were not to be regarded, for that reason only, as invalid, it is difficult to perceive why a different principle should be applied to the investment by a guardian of his ward’s Cоnfederate notes or currency in Confederate bonds — both 'guardian and ward residing at that time, as they did from the commencement of the civil war, within the Confederate lines and under subjection to the Confederate States.
As to the question, of the intent with which this investment was made, all doubt is removed by the agreement of the parties at the trial that the investment was bona fide, and that the only question made was as to its legality. We interpret this agreement as meaning that the guardian had in view only the best financial interests of the ward in the situation in which both were placed, and that he was not moved to make the investment with the purpose in that way to obstruct the United States in its efforts to suppress armed rebellion. We are unwilling to hold that the mere investment in Confederate States bonds — no actual intent to impair the rights of the United States appearing — was illegal as between the guardian and ward.
*402
It is said, however, that any such conclusion is inconsistent with the decision in
Lamar
v.
Micou,
It was, of course, intended that this language of the court *403 be taken in connection with the history of the guardian’s transactions as disclosed in the full and careful statement of the case that preceded the opinion. It appears from that statement that the guardian was appointed prior to the war by the Surrogate of Eichmond County, New York, in which State he, at that time, 1855, resided; that immediately upon his appointment he received, in New York, several thousand dollars belonging to each of his wards, and invested part of it in 1856 in the stock of a New York bank and a рart in 1857 in the stock of a Georgia bank, each bank then paying good annual dividends; that in 1861 he had a temporary residence in New York; that upon the breaking out of the rebellion he removed all his property and voluntarily left New York, passing through the lines to Savannah where he took up his residence, sympathizing with the rebellion and doing all that was in his power to accomplish its success, until January, 1865; and that he took up his residence again in New York in 1872 or 1873, after which time he lived in that city. It further appeared that of the money of his wards accruing from bank stocks he, in 1862, invested $700.0 in bonds of the Confederate States and of the Statе of Alabama, and after-wards sold the Alabama bonds and invested the proceeds in Confederate States' bonds. It thus appears that Lamar v. Micou was a case in which the guardian, becoming such under the laws of New York, in violation of his duty to the country, and after the war became flagrant, voluntarily went into the Confederate lines, and there gave aid and comfort to the rebellion;' and yet he asked that the investment of his wards’ money in Confederate States bonds receive the sanction of the courts sitting in the State under' the authority of whose laws he became and acted as guardian.
Besides, it is distinctly stated in the opinion in that case that the sums which Lamar used in the purchase of bonds of the Confederate States were moneys of the wards in his hands “arising either from dividends which.he had received in their behalf, or from interest with which he charged himself upon sums not invested,”
Affirmed.
