Fry v. Equitable Trust Co.

The question is whether the common-law prerogative of the crown to preference and priority of payment in case of the insolvency of a depositary of public funds has become vested in the sovereign State of Michigan.

Upon separation of the colonies from Great Britain, the Continental Congress declared:

“That, as free and independent States, they have full power to levy war, conclude peace, contract alliances, establish commerce, and< to do all other acts and things which independent States may of right do.” (1 Comp. Laws 1929, p. 11.)

Article 2 of the articles of confederation and perpetual union…