delivered the opinion of-the Court.
First. The court finds as a fact that the notes upon which the present action is brought were issued to circulate as currency; and, as matter of law, that this was in violation of the law and policy of Virginia, and that, therefore, the notes were void.
The first question is, whether the issue of notes as currency by the Common Council of the city of Richmond, in April, 1861, was against the law and policy of Virginia. The issue of notes as a common currency, or circulating medium, is guarded with much jealousy by all governments as touching one of its most valuable prerogatives, and as deeply affecting the common good of the people. Almost every State has stringent laws on the subject, and it may be said to be against the public policy of the country to allow individuals or corporations to exercise ‘this prerogative without express legislative sanction. The State of Virginia, like all the other States,had a law of this kind in operatioii at the time the notes in question were issued. The issue of the notes in question was clearly in violation of this law; and it will be perceived that the 17th section makes the receipt of such notes in payment, as well as the issue and passing of them, a penal offence.
But the charter of the city of Richmond has been, referred to for the purpose of showing that the Common Council had power to issue such notes. One of the grants of power relied on is, that the city is made a corporation with power to contract and be contracted with, and generally with “all the rights, franchises, capacities, and powers appertaining-to municipal corporations.” In a community iu which it is. against public policy, as well as express law, for any person or body corporate to issue small bills to- circulate as currency, it is certainly not one of the implied powers of a municipal corporation to issue such bills. Such a corporation “ can exercise no power which is not, in express terms, or by fair implication, conferred upon it.”
*
Another clause.
It is contended, however, that although the notes themselves should be deemed void, yet. the city received the money therefor, and ought not, in conscience,'to retain it; and, therefore, that the action can be maintained on the count for money had and received.
If the defendant were a banking or other private corporation, and had issued notes contrary to law, and had incurred penalties therefor, no penalty being imposed upon the receiver or holder of the notes, this argument might be sound. In the case of
The Oneida Bank
v.
The Ontario
Bank,
*
in which the defendant had issued post notes contrary to a statute of New York, it was held that the holder could recover the money advanced therefor. “ The argument for the defendant against this position,” says Chief Justice Com-stock, “ rests wholly on the idea that Perry, in receiving the post-dated drafts, was as much a public offender as the bank or its officers issuing them. . . . But such were not the relations of the parties. . . . Whatever there was of guilt, in the issuing of the drafts, it was the creature of the statute. . . . By that authority, and that alone, the bank is prohibited from issuing, but not the dealer from receiving; and the punishment is denounced only against the individual banker,
But, in the case of municipal and other public corporations, another consideration intervenes. They represent the public, and are themselves to be protected against tho unauthorized acts of their officers and agents, when it can be done without injury to third parties. This is necessary in order to guard against fraud and peculation. Persons dealing with such officers and agents are chargeable with notice of the powers which the corporation possesses, and are to be held responsible accordingly. The issuing of bills as a currency by such a corporation without authority is not only contrary to positive law, but, being
ultra vires,
is an abuse of the public franchises which have been conferred upon it; and the receiver of the bills, being chargeable with notice of the wrong, is
in pari delicto
with the officers, and should
According to these principles no recovery could have been had against the city, either on the bills themselves or on a claim for money had and received. It was against the law of the State to issue them. It' was a pqnal offence in both the person who paid áud the person who received them, and they,were issued by a municipal corporation which had no power, and which was known to have no power to issue them.
> It was insisted further, however, that the legislature, in March, 1862, passed laws which authorized, and even required, the city to redeem these bills. But,
Secondly. The court found that these laws were passed by a legislature not recognized by the United States and in aid of the rebellion, and, therefore, that these notes were not made valid thereby.
The fact thus found, that the laws referred to were passed in aid of the rebellion, is conclusive on the subject. We liave already decided, in
Texas
v.
White.,
*
and just now in the case of
Hanauer
v.
Doane,
†
that a contract made in aid of the rebellion is void, and oaunot bé enforced in the courts of this country. The same rule would apply, with equal force, to a law passed in aid of the rebellion. Law's made for the preservation of public order, and for the regulation of business transactions between man and man, and not to aid or promote the rebellion, though made-by a mere
de facto
government not recognized by the United States, would be so far recognized as to sustain the transactions which have taken placo under them. But laws made to promote and aid the rebellion can never be recognized by, or receive the sanction
Judgment affirmed.
7 Wallace, 700.
Notes
Thomson v. Lee County, 3 Wallace, 330.
21 New York, 496.
2 Douglas, 696, n.
Ib. 697, a.
See the cases collected in 2 Comyn on Contracts, 108-131; 1 Selwyn’s Nisi Prius, 87-100; 3 Phillips on Evidence, 119 ; 2 Greenleaf on Evidence, § 121, p. 120; Chitty on Contracts, 550, 552, 553, and notes.
The preceding case; supra, 342.