The record-union., 1895-12-16
THE BANK COMMISSIONERS.
Full Text of Their Order to the
Banks.
All Public Funds Must be Returned
to Its Proper Custodians Within
Six Months.

1886, all public funds, State, county,
city and district, now on deposit in
banks throughout the State, must be
paid out to the officers who are respon-
sible for their safekeeping, and by
them redeposited, if they see fit, in
sealed bags as special deposits. Such is
the import of the order that the Bank
Commissioners promulgated few days
4go.
Failure to comply with this order will
render the officials of banks having
public money on deposit liable to GRIM
inal prosecution under law which
Furnishes the offense with from one to
ten years Imprisonment in the peni-
Tertiary.
! Gentlemen: Your attention has re.
peatedly been called within the last
/ year to the Illegal and unsafe practice
of receiving irregular deposits of public
| funds from public officers. This board
being advised that the practice still
continues, to greater or less extent,
with some of the banks of this Stale,
again calls your attention to the sub
! ject.
Section 81 of the Act of March "a,
1898, provides that 1.-The County Treas
urer must keep all moneys belonging to
the State, in his possession until lis
| burSed according to law. He must s3ot
place the same in the possession of any
person, to be used for any purpost; nor
must he loan or in any manner Use, or
permit any person to use the same, eX-
cept as provided by law; but nothing in
this section prohibits him from making
special deposits for the Safe-keeping of
the public moneys, but he shall be liza
! bic therefor on his official bond
| he lou Of hi 70 no
has the right to make, and no bank has
the right to receive general deposits OF
public moneys, and a violation of said
laws is criminal offense on the part OF
the officer who makes such deposits and
! the bank that receives them. The only
right a bank can have to the cuStodg of
public moneys is to receive them as spe
cial deposits: that is, to place and keeT
such funds in its vaults and deliver
the identical funds deposited to the Of
ficer when he demands the same. 1t
should not appear on the books of the
! bank as assets or liabilities. The bank
| is simply the keeper, or custodian, OF
the money; has no right to use 1t, or TO
mingle it with the funds of the bank;
and to do either is public offense on
the part of it's officers The form OF the
certificate of deposit does not in the
least alter the character of the transac-
ton The money does not belong to the
bank 1t has no right, for any purpose,
to take, use or handle it. The title
| thereto and the possession thereof is
vested in the public officer or other per-
son charged by law with its receipt,
safe keeping, transfer or disbursement.
Your attention is called to Section IA,
Penal Code, subdivisions and 4, as
follows:
''424. Each officer of this State, or
any county, city, town or district OF
this State, and every other person
charged with the receipt, Safe-keeplng,
transfer or disbursement OF public
moneys, who either
80 Who fails to keep the same in his
possession until disbursed or paid out
by authority OF law, or
Il. Unlawfully deposits the same, or
any portion thereof, in any bank, or
with any banker or other person is
punishable by imprisonment in the
State Prison for not less than one year
nor more than ten years, and is dis
qualified from holding any Office in this
State"
While these provisions are specific
ally directed against the officer or per
son charged with the receipt, safe
keeping, transfer or disbursement OF
public moneys, the person, natural or
corporate who receives such money
from such officer or person violates the
criminal law and is amenable to its
penalties.
The practice of receiving general de-
posts Of public moneys being in viola
ton of the laws of this State and an
unsafe manner of conducting the bank
ing business, it is therefore by unan-
imous vote of the Board of Bank Com
miSSionerS,
Ordered-1. That from and after the
receipt of this communication you will
not receive any irregular or general
deposits from any officer of the State
Of California, or of any county, city,
town or district of this State, or any
other person charged with the receipt
keeping, transfer or disbursement
of public moneys. Hereafter you will
receive from said officers, or any other
persons having the custody of public
moneys for safe-keeping, transfer or
disbursement, the same only as spe-
cial deposit, in strict accordance with
the views hereinbefore expressed.
2 That all irregular or general de-
POSTS heretofore made with you by any
officer or person named in the foregoing
paragraph be returned to the officer
or officers, person or persons, by whom
said deposits were made, and that
hereafter you will absolutely refuse to
receive any general or other deposit
from any such officer, officers, person
or persons, except as a special deposit
as directed in paragraph / of this or
der.
g. That you report your compliance
with paragraph 2 of this order on or
before the Both day of June, 1896. You
will please notify the commission of
the receipt of this communication.
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