New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1863-11-14

ploycd for purposes Of trade and bnsnese In which
hao direct concern it is longer u be said ths
they are under tho operation OF her legal machinery
The machinery to which they subjected IL owne(
and driven by private interest and enterprise from ~
movements Of which the Government may egitiuatsAS
exact dnty in nowledgcment OF the protectios
afforded then and VI it, power and authority o. sovs
reign.
Tic banks selected Cor the general deposit Of morev
belonging to The Canal Fund obviously follow the sans
rule those which receive the canal tolls Tia sSrae
mcns made by them with the pubic authorities uIdes
tho statute regulating the subject show that In contem.
pafion of law and by tho understanding Of the pafos
the deposits from the moment tboy pass into he pos.
session Of the banks belong ~ them with all tt
rights OF absoGte proprictorshp, and that the banks
hold them hei eater money loaned security an6
TO be repaid pursuant to certain prescribed conditions
Az 10 the banks that become depostarcs Of sueh
state moneys as do not belong TO the Canal Fund thsS
aso pay interest to the State deposits and the kei
bargain that can be got Of them for the benefit 4 hs
State is made Incy occupy the same ground In the
general ms the canal toll banks and no dkEsrenoe Il
to their liability for deposits By tho State is peroeoi
Tho Manhattan non Ignk appears s TO occupy position !.
10 be deposited that bank subject to be drawn fer
os the arcrcoured. and the Controller az trans.
fer them from time to time 10 tho banks in the City q
Albany IN which the State deposit are made % Offer s
Il NAV h. for the interest Of the e te to do but u
Controller may continue the deposits in that bank IN n
win pay rate Of interest equal n that paid by the d
posit banks in Albany. ON informed that the Ma.
haitian Bank pays no interest ON tho deposits " ~
STATE ard renders valuable services vehicle az ia
payment of interest tie State debt aud in ASSISTING
to mountain the credit Of the state
II has been urged that this bank merely tho agent
Of tho State and that s vaults w be considered as
part OF tie State Treasury Whether In some respects
L may act in the capacity Of agent it IS not necessary -
INQUIRE for il Is certain that II may DO agent ff
mi poses and not for all When 1t contracts with ~
tao for the loan II money is own credit and Cot ~
own use or opens general account with the Stato u
TIE receipt OF money subject to be drawn BY drsitS
checks or orders in the ordinary way Of business. h
call the bank an agent " the State In respect VI sEAb
money IA fragrant msnomer. Tho relation be$wen
tie parties is toe ordinary one of banker and customer
and calling il by any other name only involves como
sion OF terms without affecting its essential oharactea
II the moneys Of tie State are received BY the bas
and used In its general business Tor the same pnrpoe
It's other funds. aad the services rendered by ne
the State ore regarded equivalent for the ~
the drpoets II clear that the moneys from tho moUsn
II their drpos, tho property Of the bank The pre-
sumption from what L. well known as to tho practice
banks in relation 10 money deposits other thon oss
that are special al the instance Of the dcpostor, rec
sonabe that the moneys Of the St 10 are treated a. The
moneys OF private depositors and appropriated BY ~
bank b. its own use and in the absence of Ill v.deans
or statement the subject are bound 50 ~ prcsanA
aud 20 hold the bark lilbs to tax on its depaSH q
State funds. II tho facts In this respect are dusranf
we shall 10 doubt be informed. ard shall bold myse2
1t liberty to make any modification of this opnhaa
which different state VI circumstances shall require
The principles on which this opinion proceeds are u
miar and well understood in tbs Courts and IN the -
rcaton of them there IL usually no difficulty. AOocJ
paid into bank ceases 10 be the money OF the Pyer
and becomes from tho moment II enters the Dabk ~
property Of the banker who is bound TO return An eqsv
neI In money when lac Is asked for IL or according
the contract, Il special contract exists (foiey Vs. III
H. L. cases 35) 10 all ntents 1t Is the money VI the
banker to do he picases with it, tGrant on banking
- TIE legal relation between banker and customer "
their ordinary dealings in money Is purely and simply
that u debtor and creditor respectively Oh. 81 Money
paid to banker Is common Law DEBT, and cannot b
ot ont again by Of bill in equity, there being
nothing OF lduciary character In the connection ~
tween the partcs. (foley v. Hill supra)
Where tue course Of the TRANSACTIONS show that de
poss have been made with banker who holds Linssd
liable for the payment a like sum on tue orlor OF tAe
customer or OF lis authorized agent whether bankss
pay. interest for the money not, II matters NOT "
whom, STATE town or cilNea tho cepcot u made. ~.
comes IN the hands Of the banker subject % ar. ssA
ho Is to be charged according to tho provisions Vi he
seventh section OF the act Of Congress aready quotes