Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1824-07-02
TESTIMONY AND DOCUMENTS
accompanying The Report Of The Special Com
ntitfse of the House of RepYesemiliireS,

miuee ofihe House Of Representatives,
on THE MEMORIAL OF NiNiAN EDWARDS.
Jsnss Loyd, Of The Senate, soorn, at The request Of
Mr. Edeurds.
Questions by Mr.. Cook, in Mr.. Edwards's
behalf.
meant 10y Speeiai dcposite made in banking in
situations,
.4nsUer. That will depend on the custom
of the place, or the usage of the bank where
the depOsite is made n special deposite is
not very definite term. A piece of blank
paper said to contain thousand dollars, NAV
be special deposite rs may be bundle Of
notes left at bank for collection or safe keep
ing. Some banks receive a special depOsite
paper issued by other banks ia the same state,
AR in other states, and which is repaid by the
bank receiving ii in the same bills as those in
which it was deposited, or in bills oil banks pre-
yiousiy designated. | should consider as spe-
Ciai deposite that which did not mix nor min
gle with the general circulation of the bank.
q. Are special ieposi'es ever made, with
out designating the amount and description of
money, or The thing deposited?
I'll. should think they were, sometimes,
merely for the purpose of safe-keeping. More
generally, there would he label ON the out
side, specifying the contents of the bundle,
box, SIC. deposited. 1t may be- noted in the
memorandum book of the Cashier, but does
not enter into the transactions or records of
the bank at all. Plate is often deposited in this
manner, aud other valuable articles. In one
of the Boston banks, have now a deposite
~: Ibis description.
q. When deposites are made for safe X eep-
ing, IS il ever understood that the bank is al
iowsd 10 trade upon them as its own fuuds ?
a. Never, | believe. Some of the banks
In Massachusetts keep accounts in two kinds
ofmoney Boston money, for example, and
foreign money which latter means bills of
banks located out of the city. If a sum is de-
posted, repayable in foreign money, the
banks designate on a list, generally posted 10
the banking house, certain number of banks
whose bills they will receive as " foreign mo-
N.Y." which money they use ; and If they re-
pay the sum deposited in the bills of these
banks, they deem the contract fulfilled. If
any one OF these banks becomes insolvent pre-
vious TO the payment, il is my opinion that
the bank receiving its bills runs the risk of the
loss thence accruing.
q. When a deposite is made Of foreign
money, or such as is not received as general
deposte, bat subject 10 he refunded to the
depOsitor in paper of similar kind to that
deposited ifpaper of similar kind, at the
time Of making the deposite, should after
wards deprecaie in value, would the deposit
tor be bound to receive 1t in its deprecated
state, in payment of such deposite /?
II. should say yes 10 question thus spe-
cihc hut do not know " neither, strictly con-
sidered, the notes of different banks can be
viewed as precisely similar If the bank spe.
Giles beforehand IN what money it will repay,
ii is Il special contract, and Tia. depositor mus,
abide by his own agreement. But, if one of
the banks in whose paper the depose is
agreed to be repaid, has subsequently, failed,
the bank receiving the drposite would not. in
my opinion, be authorized to repay the de-
posite in the notes of such bank as had thus
failed. What rate Of depreciation would JUS
tify back in offering to pay, or depostor
in refusing TO receive, deprecated notes, can
not state.
Q. Where money ofany description is de-
posted in any bank, and is mingled with the
funds of such bank generally, aud the bank
uses II IN ITS general Transactions, is not such
bank always considered liable 10 paw the a.
mount in legal money TO the depositor?
a. should consider the bank liable. if IN.
deposte is received and credited as general
deposite.
Question by Mr. WeJster.
T. By general deposte, you understand
a deposite to be credited as cash in accuuot |?
"A. Yes.
Q. BY special desosite, you understand a
dcposlle for sale keeping merely.
.d Yes; or depOs,te on particular con-
difons.
Q. Ifthere be a deposite of an intermedi
ate Character between d general deposte and
a deposte for safe-keeping where, ,houch the
particular notes deposited, may be used or pur
in circulation by the bank, yet the bank is mol
answerable for the amount in cash do the
rights Of the parties, in such case, depend
mainly on their contract or agreement or is
there any general bank usage which W ould
govern the case ?
Il know of no established usage. The
conditions oftbe deposite are indicated by the
terms prescribed by The bank from time to
time, which are frequently varied, by it ac-
cording 10 its sense of its own interest
z. Is your Knowledge Of bank usage con-
lined principally to thai prevailing in the
banks Of the Atlantic cities or does il include
the usage of the Western banks /?
a. 1t is confined wholly TO the former.
JAMES LLOYD.
Hugh L. Vhae stcorn, at The request Of Mr.
Edicards.
Question by Mr.. EdVTds-H Have YOU aoy
recplieciion OF The sum of forty thousand one
hundred and fiity-six dollars of notes ON Inc
Bank OF Tennessee and its branches which
was directed To be transferred bv the P,nk or
Missouri to the branch bank of Jouisv;lI.
and which vas To be sabject to the drafts Of
the Treasurer ia favor vi the Bank Of Ten
nessec
AnsiCer. think il proper to state ,o the
committee, that my memory of the transac-
ton is not entirely to be depended on. as !,
took place several years since, and latterly. my
mind has been SO much taken I'M with
other concerns, that may not recollect cor
rectly some matters relative to this. So well
as remember, it was in the fall Of 1919 the
Knoxville Bank received from Mr.. Craw ford
letter, the substances of which was, that he