3. A Different Rule Of Liability Applies To Safe-Deposit Companies

They must exercise the utmost care, because they are paid for performing the service. Rarely have losses been incurred by them, and on these occasions they have been promptly adjusted.

4. Classification Of General Deposits Of Money

Passing from special deposits of bonds, etc., to general deposits of money, it may be remarked that these are of two kinds, - demand, and time or special deposits. The difference between the two kinds is in the terms of keeping them. A demand deposit is payable on demand, a special deposit is payable by agreement after a fixed time, ten days, thirty, six months, or other period.

Again, the amount of special deposits of money held by a bank is only a small portion of its entire holdings. They are made by trustees and other individuals, and consist of money awaiting investment or payment to some individual. The object of making them is to obtain interest, as banks in this country rarely pay interest on demand deposits.

5. Legal Relation Between A Bank And A General Depositor

The relation between a bank and a general depositor of money is that of debtor and creditor. In other words, the bailee relation, above explained, does not exist. A bank does not expect to return the identical money, notes, or checks deposited; nor does the depositor expect to receive them. Again, should the bank lose the money deposited, by robbery, fire, or other accident, however unavoidable, it would be liable for the amount, like the borrower of money who gives his note therefor.

6. Amounts Held In The Largest Banks

As the profits of banking, especially in the large cities, are derived largely from general deposits, every bank seeks to accumulate the largest amount possible. How they have succeeded may be best shown by a few examples.