Depository

“ It was then held (a) that the act made provision for general depositories, wherein moneys of the state, not belonging to the educational funds, were to be placed as general deposits, with the right in the depository to comingle them with other deposits and to loan them in the usual course of business, and with an absolute obligation on the depository to pay interest on them at not less than 2 per cent per annum ”

“ Other influences, such as changes in the public's currency holdings, may persist for longer periods of time.
Still other variations in bank reserves result solely from the mechanics of institutional arrangements among the Treasury, the Federal Reserve Banks, and the depository institutions. The Treasury, for example, keeps part of its operating cash balance on deposit with banks. ”

“ The daily trading limits for the Broker shall be determined pursuant to
Exchange regulation based upon the Broker’s net capital adequacy. The
Broker’s net capital adequacy shall be determined based upon the Depository’s
assessment of the Broker’s ability to meet its trading obligations, as well as the
advice from the settlement bank to the Depository ”

“ The depository, aided by the active labors of Mr. Rouse in the schools, gave a powerful impetus to the cause.
Three months after the opening of the depository Mr. Rouse purchased the lot on which it stood, for six hundred dollars. In making the purchase he had little thought of its speculative value, the sole object being a permanent home for his agency. Time has, however, so enhanced the value of property that the lot on which stood the little book-room, has now, with the pile of buildings standing on it, reached a value of eighty thousand dollars, thus amply repaying Mr. ”

“ In vain have appeals been addressed by individuals and by societies, anxious to mark their appreciation of the importance of these collections to supply a link in the chain of evidence wholly deficient in that great depository. ”

“ A bank may be accepted as a Broker if
authorized to act in that capacity under the Banking Law.
11) “Bank” means an entity authorized by the Central Bank of Iraq to conduct
banking operations in Iraq.
12) “Company” means a joint stock Company that is an issuer of securities subject to
the provisions of this Law or a Company referred to in Section 5 (1) (b) (ii) of this
Law.
CPA/ORD/18 April 2004/74
2
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13) “Depository” means the Iraq Depository which will serve as the central clearing
and settlement facility for all securities transactions. ”

“ Banks of deposit, as has been mentioned, make loans from their capital and deposits. If from capital, the banker has no greater profit by the transaction than if he had lent out his money in any other way, equally safe, and involving the same amount of trouble. If from deposits, the interest he receives, so far as it exceeds the interest, if any, paid to the depositors, and a ratable proportion of the expense of carrying; on the business of the bank, is pure gain to him. ”

“ Deposits and Solvency.—It is, therefore, a sheer blunder to infer that a bank is rich or strong because of its great total of deposits, or to regard deposits in banking institutions as making part of the aggregate wealth of the community. Instead, the deposits indicate for a bank the extent of its operations, and indicate for a community the extent to which the banks, under the guise of noninterest-bearing obligations, have assumed the debts of business men, on terms of these business men becoming debtors—and interest-paying debtors—to the banks. ”

“ But if a bank can employ all its capital, it is obvious that it cannot employ all deposits in making loans, because occasions are always occurring for removing deposits, as well as making them. Business men, for example, day by day, deposit with their bankers the checks or sums of money which they receive in the course of their business; and, on the other hand, day by day, draw out such sums as they require for the payment of purchases of goods, wages, rent, and other expenditure. A bank, therefore, while continually receiving deposits, is continually repaying deposits ”

“ Although the section in question forbids loans or discounts by a bank on the security of its own shares of stock, it is argued that this inhibition does not extend to the case of deposits made by one bank with another. But a deposit is nothing but a loan of money, and is within both the letter and spirit of the provision. It is well known that country banks keep on deposit in New York, with bankers and merchants, a considerable amount of money for their own convenience, for which they receive more or less of interest. ”

“ But an operating deposit is a totally different matter, by which the circulation of the bank paper is promoted, and which acquires actual value from the frequency of its fluctuations. It is a system so easy in its working, that no householder in Scotland is without it; and for every shilling that he deposits in the bank, he receives regular interest, calculated from day to day, without any deduction or commission, at as high a rate as if he had left, for a stipulated period, a million of money unrecallable by him, to be employed in its trade by the bank. ”

“ The process of discount and deposit is the purchase of the promissory note of a customer, [6] the price being a credit in the form of a demand deposit on the books of the bank. This—the central and most characteristic banking operation—has something of mystery in it at first view. The simplest idea of making a deposit is that of bringing to a bank window bags and rolls of money or other funds (credit papers such as checks and drafts, calling for the payment of money) . The bank in that case becomes the debtor and the depositor becomes the creditor of the bank. ”

“ All deposits made with bankers may be divided into two classes, namely, those in which the bank becomes bailee of the depositor, the title to the thing deposited remaining with the latter; and that other kind of deposit of money peculiar to banking business, in which the depositor, for his own convenience, parts with the title to his money, and loans it to the banker, and the latter, in consideration of the loan of the money, and the right to use it for his own profit, agrees to refund the same amount, or any part thereof, on demand. ”

“ For a non-agricultural illustration, here are two mineral deposits. One is more easily worked than the other, or more conveniently situated with reference to demand for the mineral product for Consumption. It is therefore more attractive to Labor than the other. Consequently, Labor will naturally yield to the ownership of the superior deposit (Land) a larger proportion of the mineral it extracts (Wealth) than to the ownership of the inferior deposit. The proportionate excess is Rent. ”

“ Some of the deposits merely lie with the bank till the customer draws what he requires for his ordinary everyday wants. Some, the greater part by far, of the deposits enable the bank to make advances to men who employ the funds with which they are entrusted in reproductive industry, that is to say, in a manner which not only brings back a greater value than the amount originally lent to them, but assists the business development of the country by setting on foot and maintaining enterprises of a profitable description. ”

“ I have now in my mind’s eye several individuals who were almost daily visitors at the store, who had always just discovered a very rich deposit. But strange as it may seem, that deposit never happened to find its way into the individual’s pocket. Now, a man will come in, all excitement, having just discovered, in a mountain gorge, a deposit so rich that gold can be picked up by pounds and half-pounds. He is out of provisions, and on his way to town to lay in a stock, preparatory to availing himself of his rich discovery. ”

“ Bank, 174 U.S. 125, 19 S.Ct. 628, 43 L.Ed. 920, and pledge its assets therefor, Wyman v. Wallace, 201 U.S. 230, 26 S.Ct. 495, 50 L.Ed. 738, it may likewise pledge assets to secure a private deposit. The fallacy of this contention has been many times exposed. [14] The difference between deposits and loans is fundamental and far-reaching. The amount of the deposits is commonly accepted as a measure of the bank's success; an increase of deposits as evidence of increased prosperity. The depositor does not think of himself as lending money to the bank. ”

“ Deposits are made to be invested for the benefit of the depositors, and the bank is under obligations to repay the amount when demanded, agreeably to the by-laws and charter. 3. Only remaining condition to bring the case within the words of the body of the act is, that the deposits should be made with a person, bank, association, company, or corporation engaged in the business of banking. Agreed case shows that the corporation complainants were engaged in receiving deposits, and loaning the same on interest for the benefit of the depositors. ”

“ The modern deposit grew out of the older form of deposit in which the fund was held separate and intact, and the sole purpose of the deposit was safe-keeping. Safe-keeping is still a very important function of deposit banking; and from the point of view of most depositors the chief one. [15] Borrowing by a bank (as distinguished from a rediscount) is commonly regarded as evidence ofweakness. [16] Often the loan is made in the hope of averting insolvency. Loans made by one bank to another commonly involve a pledge of assets, since only upon such a condition is the transaction possible. ”

“ These deposits are saved for old age, for sickness and accident, and for funeral expenses. The savings bank deposit is simply a piece of the loaf put back on the shelf to be eaten next day. No, labor consumes all of the total product that its wages will buy back.
“Two billions are left to capital. After it has paid its expenses, does it consume the remainder? Does capital consume all of its two billions?”
Ernest stopped and put the question point blank to a number of the men. ”

“ A bank that permits a depositor to keep a box of jewelry or silver in its vault for his accommodation, while absent from home and without receiving any compensation therefor, is not required to exercise the same degree of care as a safe deposit company whose chief business is to do such things and is paid for its service. ”

“ It is not ordinarily bound to inquire whence the depositor received the moneys deposited, or what obligation such depositor is under to other parties. It is only when there gather around any deposit, or line of deposits, circumstances of a peculiar nature, which individualize that deposit or line of deposits, and inform the bank of peculiar facts of equitable cognizance, that it is debarred from treating the deposit as that of moneys belonging absolutely to the depositor. We notice, therefore, the peculiar circumstances which cast knowledge upon this bank, in respect to these deposits. ”

“ Banks attract demand deposits mainly by the convenience and economy which they offer to their customers in the guarding of funds from theft and fire and in saving the time, trouble, and expense of carrying money for making payments. A deposit in a bank is to the depositor for most purposes "just as good" as money in the pocket and for many purposes is even better. Thus the banks have become the custodians of a large proportion of the money (or funds) needed for current use by individuals and business corporations. ”

“ Laboringman: What do you mean by tying up the capital and deposits of a bank in mortgages and real estate?
Mr. Banker: I will explain that to you in such a way that I am sure you cannot fail to understand and appreciate it. Suppose that I had $100,000 in cash in my bank to meet the demands of my depositors; but should give it to farmers in exchange for mortgages upon their farms. I could not pay my depositors the mortgages; they want money. ”

“ Sometimes depositors mislay their deposit-books, or lose [272] them altogether, and in course of time forget that they have anything lying at their credit. This is an instance of such a case:—A depositor, upon being reminded that he had not sent up his book for a periodical examination—the time for which was already past—replied that his book was lost, but that if there was any balance due to him, he would be glad to have the particulars. ”

“ Banks seem to remove the fear of their depositors by supplying a multitude of bars and posts, ostensibly to protect the deposits; but any observant person realizes that the real protection lies in the vaults and not in these shams. ”

“ The individual bank, of course, is not concerned as to the stages of expansion in which it may be participating. Inflows and outflows of deposits occur continuously. Any deposit received is new money, regardless of its ultimate source. But if bank policy is to make loans and investments equal to whatever reserves are in excess of legal requirements, the expansion process will be carried on. ”

“ If the sums owed to individual depositors are large, relatively to the total liabilities, the reserve should be proportionately large, since the action of a small number of depositors can deplete it rapidly. Similarly, the reserves should be larger against fluctuating deposits (as of stock brokers) or those known to be temporary. The reserve in a large city of great bank activity needs to be greater in proportion to its demand liabilities than in a small town with infrequent banking transactions. ”

“ If a man places anything on deposit and at the place of deposit either through burglary or pillage anything of his is lost, together with anything belonging to the owner of the building, the owner of the building who was negligent and lost what was given him on deposit shall make it good and restore it to the owner of the goods. ”