Page:Federal Reporter, 1st Series, Volume 4.djvu/389

 BUKTOîr V. TOWN OF KOSHKONONO. 375 �The other question I think, upon caref ul consideration, must also be resolved in favor of the plaintiff. The question, like that of the statute of limitations, is one of local law. See Amy t. Dubuque, 98 U. S. 470; Crmnwell v. County of Sac, 96 tJ. S. 51. �The supreme court of Wisconsîn, in Mills v. Jefferson, 20 Wis. 54, gave a construction to the interest law theretofore in force, and at the time of the issuing of these bonds in force in that state. By that decision these coupons drew in- terest, at the legal rate of 7 per cent., from the time due ; not because coupons for the interest were given, but on the ground that, the interest being due and not paid, it draws interest, like any other debt that is overdue, when no interest is ex- pressly stipulated. This decision was made in 1865. �It may be that the weight of authority upon thia question generally is the other way. Certain it is that the authoritiea are divided. But such was the law of this state when these bonds were made, and until chapter 60, Sesa. Laws 1868, was enacted. It is claimed that this statute has ohanged the rule even as to contracts existing at the time of its passage. Sec- tion 1 is as f ollows : �"It was and is the true intent and meanîng of sections 1 and 2 of chapter 160 of the General Laws passed in the year 1859, and of ail other laws heretofore enacted in this state prescribing and limiting the rate of interest, that interest should not be compounded or bear interest upon interest unless an agreement to that effect was clearly expressed in writing and signed by the party to be charged therewith." �Section 2 is as follows: "Section 3 of chapter 160' of the General Laws of 1859 is hereby amended by adding thereto the foUowing: And in the*computation of interest upon any bond, note, or other instrument or agreementy; interest shall not be compounded; nor shall the interest thereon be con- strued to bear interest." �By the Eevised Statutes of 1878 the foUowing provision takes the place of this statute : �"Section 1689. * * * * And in the computation of ����