Glasgow weekly times. (Glasgow, Mo.) 1848-1861, 1858-08-19
From the Republican.
The Banks-The Savings Institution.

Some years ego, our State Legislature in
su2ursied the policy Of chariering what is
called Savings Institutions meaning there
by repositories for the surplus earnings Of
industrious people, where the money would
be safe and nigh. be made TO earn mod
cate rate Of interest. But in process Of
time, and in the absence of sufficient Bank
ing facilities, these institutions were con-
rerted into joint stock concerns for the pur-
pose Of making money, and extraordinary
privileges and immuniiies were granted 10
them. By their characters, they are made
close corporations nobody knows anything
about tl,em-nO weekly, or quarterly, or
yearly statements are required from them,
while they are permitted to charge rates OF
interest unknown to the law creating Banks
in this State. These corporations have lost
The distinctive character which was origi-
nslly given 10 them, and they are now con-
Quoted and managed for the benefit Of the
stockholders, al the same time that they are
subject 10 none Of the onerous restrictions
imposed upon the Banks, in providing lha,
they shall invest certain portion OF their
nsney in State Sticks, and set aside a Ger.
tain portion Of their earnings TO meet con-
,ingent losses. It might well be supposed,
that they would be content with these ad.
vsntages, but this is not the case; and lat.
terly they have united in wsr upon the
Banks, in which, if there be merit in the
legal opinions Of our best lawyers, they are
likely TO come out second best, and with the
loss Of some II that reputation for liberaliIy
which has TOO readily been conceded 10
chem.
oDISieE OF NUDGE GAMBLE.
ST.. LOUIS, August 6, 1858.
JAMS NJ. HreHs, Esq,
P,esnent Bank Slate of Missouri:
Sir: proceed 10 give my opinion up
On the case stated.
"A Savings Institution, holding check
drawn upon the State Bank by one of Its
deposi,or., payable in bankable funds, pre-
sents the same at the Bank and demands
payment in com. This being refused, the
check 10 protested, and the question pre-
scented is, whether the Bank has incurred
any responsibility by reason of refusal to
pay coin?
The persons drawing the check is one of
The customers of the Bank, in whose pass
or Bank book there is pasted q printed pa
per IN the following words: This Bank
will receive on deposit under the name OF
"Bankable Funds" the notes OF her "brsnch-
%, the notes Of the Farmers Bank Of Lex
"ing,On, and the notes Of such other Banks
Gin the interior Of the Stale as may be ar
"ranged with, and will pay such deposites
"in the sane kind of funds. Checks drawn
egsnst such deposits must be marked,
.Bsnkable Ftnls.'"
The check in question was drawn against
such funds on deposit.
The paper offered in payment Of the check
was such paper as The Bank takes in pay
nsnt from its debtors.
The Bank is clearly authorized under SEQ.
4, art. /, "to receive and pay out The notes
"of any Bank or branches thereof, es,ab-
"lished by the authority of this State; pro-
"vided the Bank will receive such paper
sat par in the payment Ct debts due the
Bank"
It is undoubtedly within the power of The
Bank 10 make a contract with de position,
by which the Bank shall receive from him
the paper of the other Banks chartered by
the State, and shall keep such deposits in
separate account, and pay Them out upon
checks drawn upon such fund.
The penalty provided in The ninth section,
upon the refusal of Bank TO pay in coin
"sny money received upon deposit" does
net apply 10 case where, by agreement
with depOsitOr, the Bank has received On
deposit the paper of other Banks, 10 be paid
on. upon checks drawn for such funds
The parties in such case have agreed that
deposits Of that description are not ''money."
within the strict Specification of the word
a. used in the ninth section.
Tho 44ih section declares that checks,
&C., drawn payable in currency shall be
payable "in coin, or in the notes Of specie
"psying Banks OF the State of Missouri"
The alternative, of coin or notes, must Of
coursebe in the opinion of the person or body
who is 10 make the payment. This is a leg
islstive declaration of the meaning and le-
gal effect Of IN instrument drawn payable
in currency, and certainly the word"curren-
ey," does not more distinctly refer 10 kind
offunds different from coin, than the phrase
''Banksble Funds" Taking all the provi-
sions Of the law together, | have no doubt
chat any contract now mads payable in
"Bankable Funds, would be held 10 be
payable in coin or the notes Of our specie
paying Banks.
But there is anoihe- answer 10 your cues
tion. A check is drawn upon the Bank and
payment is refused. The holder of the
check then locks to she drawer Of the
check and not to the Bank as party TO the
check. The holder mey claim that the
check is on assignment 10 him Of so much of
the drawer then in The Bank. But in ssser.
ling such claim he puts himself exactly in
The position of the drawer, and ifthe draw