The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1872-11-28

HNe Deeh called savings Bank" but the
Legislature having adopted the other we
must look at il as an evidence of their in
IehtIon TO exclude all other ideas M hank
ing than those specially enumerated and
tae difference between Savings Bapk''
ana other banks becomes here an element
of construction.
savings banks were originally est tblished
IN England for the receipts of small sums
deposited by the poorer class Of persons for
accumulation at com pound interest /
foioan, eye. of Com. l4S.
Banks for saving, are banks established
Tor the receipt of small sums. deposited by
the poorer class for accumulation at inter
est. 81 Cul. Com. d. 146. Same definition
I'll GRANT on Banking. p 614. They are de-
| scrlbed by Mr.. Chambers 2 Inf for the T,eo.
pie as Banks for receiving an taking
charge OF small sums, the savings OF indus
Try, ana have been instituted for the benefit
ei working men, and others who NAV be
l.aDle 10 spare small sums from their weekly
! earnings"
Neither NJ. Candy, Racquet, nor Mr.. Morse
IN thelr works on Banks and Banking (the
latter very recent and able work. mem
tion Savings Banks in their classification of
! banks.
The features which seem to distinguish
savings banks" from other banks is, their
dealing in very small sums and paying in
terest TO their depositors.
to be-
| /. place for the deposite of money.
:. An institution generally incorDorated
authorized to receive deposits of money, to
! reno money and issue notes for circulation,
commonly called bank notes
3. Banks are said 20 be of three kinds, viz :
| OF deposits, discount and circulation. Bouy
| l.. Die. / Brrell Law Die
MI Morse in his recent work on Banks
word BanRlng adopts and I'd aoproVss 'n of
| Mr.. Nebster's definition in his dictionary
thus: "Banking-the business or employ
ment OF banker-the business of estab-
Ilshlng a common fund for lending rn0nezL
discounting notes Issuing bills, receiving
deposits. collecting notes deposited, nego-
uating bills of exchange, &c.
These definitions sufficiently establish
that while loaning money is one of the gen
eral functions OF all banks Of Il general ma
ture. yet that it does not generally belong
10 Savings Banks. as necessarily springing
out OF or pertaining to the special nature
aud character of their business.
| The present. therefore. il we NAV call il
a back at all, is bank limited to a special
puIpose-that of saving-its powers are to
| be limited not extended by construction,
aud unless the power to loan is either iIlclu-
ded in the power To inueSt, or is necessary TO
the execution of some of the specially
! granted powers. il does not exist.
To incest is defined, To lay out money or
capital in some permanent form so as to
produce an income. properly applied to ca Tp-
ital not actively employed.
/ Burr. L. Die. Sc; l BOW. L. Die, de-
fines it TO lay ont money in such a man
| ner that it may bring a revenue, as to in
vest money in houses, stock &c.
DR.. Worcester difines invest
| TO lay out money or capital in some per-
manent form, SO as to produce an income"
On the other hand the word Eodn is thus
defined by the same authorities:
Bouvier-"A bailmenr of an article for a
certain time, to be used by the borrower
without paying for it to
be specifically returned to the lender
Burrill-''A bailment of goods to be used
by the bailee. temporarily, or for a certain
time without reward"
Worcester-'TO afford or supply on con-
dition of return"
Without dwelling to elucidste, these def
nitiOns sufficiently point ont the wide diff
ference between the two terms-and de-
mOnStrate that the legislature could not
have intended to confer the power of loan
ing money by expressing it in grant of a
power TO incest in notes and bonds.
We are fully sustained in this conclusion
by the case OF the the People vs.. Utica ms.
Co. 10 John 3S4. There the Utica Insur-
ance Co. claimed banking privileges under
the 9th sec. of of their charter, which au-
thorized them to make investments of their
funds which the business of insurance did
not require. Oh. j. Thompson In deliver
ing the opinion OF the court uses these
words:
s.But these surplus funds may be invested
| i'm many ways besides in banking business,
consistently with the provisions of this act
prohibited by any other law; and ID is rdth-
er q forced use OF the term incest. TO apply it
to an active capital, em plOyed in banking
, 1t is usually applied TO a more inactive
and permanent disposition of funds; and
| although it IN ght extend to banking-yet
it onght not to receive that interterpreta-
ton here, when another sense more obvious
and consistent with the general object of the
incorporation may be given to it,
| This reasoning OF the eminent Judge, we
think applies with admirable force to the
case under consideration. A loan of money
to be returned in thirty days, could not
: with any regard TO legal precision De called
| an Investment
I'm smith VS. Ala. l.. ms. and Trust Co, A
Ala. +. n. s., SOS, it appears by the 18th
Section of their charter, the company were
empowered to incest their money i'll gov
eminent public stock of u. ., or of any
State, or in the stock of any Incorporated
city. or in such real or personal securities
as they may deem proper, or loan the same
to any country, city, incorporated town, or
company, see p. 563.
Here is direct legislative construction OF
the meaning of the two words tnUest and
loan, showing that different meanings are
attached TO each word, III strlct accordance
with the definitions given by leXicograph-
ers for while the special authority was
! given to incest in the stock of cities and
towns and in personal securities, etc., these
were not thought sufficient to confer the
authority to loan, and that was also given
IL will further be found in this case that
the word incest is used by the Court in their
/ opinion 10 times, and the word loan Il
. times-they are uniformity used TO express
: a different meaning. In North River ms
! Co vs.. Laurence 3 Wend 4S3-the compa-
! MES were authorized by their charter "tC
: purchase and hold any stock or funded debt
: for the purpose of investing therein. any
. part of their capital Stock' ete"
and also -
: 40 make loans on bonds and mortgages
\ loan was made-a note taken for the money
\ loaned aud 60 shares of stock taken on ny
! | pothecation AS security. Here although tht
charter clearly authorized the purchasing
: stock for Investment, the contract Was de-
4 clared void. 1t the word incest had beer
. held to be Synonymous with loan amer
! | enE conclusion would have been reached
: The Legislature had USED DoLh words gu
: | in a different sense.
+ The general law of corporations IN force
= at the date of the passage OF the Act, has
! direct bearing here. BY the code OF 1907
n | page 292. Act >. and re-enacted In the cO0'
. OF 1871, Section 2407, it is provided:
q .sNor shall any corporation employ it capt.
. tai. money or other thing in any other way
i than in the pursuit of its legitimate bust
e ness
J What was the legitimate business of tn
Tishomingo Savings Institution? 1t wa
;. according to its charter. TO receive on de
It posit from poor people the sma!l sum
Is which their economy and thrift might en-
able them to save, and to pay them lntereS
% on such deposits. To enable the coIposa
q ton TO pay such interest special prlNlleg
- is granted to them, to INCEST their capita
and profits in notes, bills, and certain
e enumerated securities.
az To carry out these powers ana TO per
,e form all their legitimate business, 1t Is ne
i cesSary that they should possess the powe
q Of loaning money. We think not-an in
r yestment can be Iuade and the power full
= exercised without making loan of money
a. 1t cannot be said that the statute OF corpora
r. tons in the two codes has no application