Cushman v. B. F. Carver & Co.

Citations

• 51 Ill. 509

Syllabus

<p>1. Banks—of deposits between bankers—depreciated currency. At a time when the banks in this State were receiving and paying out the paper of Illinois banks, which were of doubtful solvency and their paper at a discount, two bankers, in the usual course of their business, had mutual accounts growing out of remittances and collections, and the relations existing between them were such that the depositor could withdraw his funds at pleasure, and the receiver of the deposits could in like manner return them: Held, that in the absence of any arrangement between them on the subject, the holder of the deposits would be compelled to pay or return in current or par funds.</p> <p>2. But where the banker who owned the deposit, having a considerable balance to his credit with his correspondent, notified the latter by letter that he should require that any remittances he might desire should be made in the paper of certain banks, which he specified, this direction left the banker who held the deposits at liberty to make the remittances in bills of any of the banks so designated, which the party to whom the remittances should be made would be compelled to receive at their nominal value.</p> <p>3. And after such letter of direction, the holder of the deposits was thereby authorized to remit to the owner the entire balance which stood to his credit, without further order, in the class of paper so specified, at its nominal value, or in the paper of any one of the banks named, as it was not stated that payment must be made in the bills of all those banks. Nor would this right of the holder of the deposits be affected by the fact that subsequent to the notice given him, and before he had received any further advice on the subject, the paper of such banks had continued to depredate in value.</p> <p>4. And where the banker holding such deposits, after he had received such letter, and when the paper of the designated banks had become depreciated subsequent to the receipt of the letter,