Louis Brandeis

“ No Illinois statute confers in express terms upon banks organized under its laws either the general power to pledge assets to secure a deposit; or the general power to pledge assets to secure public deposits. A statute confers in terms the power to pledge assets to secure deposits of the States but there is none which so confers the power to pledge assets to secure public deposits of a political subdivision of the state. ”

“ The Fidelity Company agreed to become surety on Carroll's bond provided he would get elsewhere a bank which would give satisfactory collateral security for the repayment of his deposits of the public moneys. The City National Bank of Herrin agreed to do this. Thereafter, it delivered to the Continental Illinois National Bank & Trust Company of Chicago, as escrow agent, negotiable bonds of the par value of $23,000, under an agreement so to secure the city's deposit; the Fidelity Company executed Carroll's official bond; and he made his initial deposit in the Herrin bank of the city's moneys. ”

“ Carroll having been appointed treasurer of Marion, applied to the Fidelity & Casualty Company of New York to become surety on his official bond. Although Marion has a population of 9,000, it was then without a bank. ”