Statement of the Case. and their proceeds mixed with the general deposits of the plaintiff. Plaintiff had on hand at the close of each day's business sufficient deposits to meet all claims of the State. Upon the receipt by the treasurer of the State of a notification from plaintiff that such drafts had been received by it the treasurer has drawn drafts upon the plaintiff to the order of the cashier of the plaintiff, enclosed and mailed in a letter addressed to the plaintiff, in which was indicated the purpose to which the funds were to be applied. The draft relating to canal loan, upon its receipt by plaintiff, was charged against the account entitled Treasurer of the State of New York, account of canal fund,' and credited to a new account called 'Interest New York State stocks, canal loan, July 2, 1881.' The draft relating to bounty loans was in like manner charged against the account entitled 'Treasurer of the State of New York,' and credited to a new account entitled 'Interest loan for payment of bounties to volunteers due January 1, 1877.' "The mode in which the money was actually paid out by plaintiff was as follows: The book containing the names of the parties entitled to be paid with receipts for them to sign was placed in the hands of the transfer clerk of the plaintiff at its banking house, and to him the parties were directed in the first instance to apply. The transfer clerk, upon being satisfied of their identity and obtaining their signatures to the receipts, gave them each a paper in the following form signed by him: 666 'No. NEW YORK, "Manhattan Company. "Charge interest New York State stock, 18-. 18—, dollars. "The money was sent down in the same way; but when the principal became due the parties came with their certifi VOL. CXLVIII-27 Statement of the Case. cates of stock and surrendered them and gave an assignment, and then they received from the transfer clerk a sort of a paper in this form: "State of New York, Transfer Office of the Manhattan Company. "Pay to the order of dollars. "Reimbursement of loan to provide for deficiences in the sinking fund of July 1, 1881. "Registered stock. "Transfer office. "Transfer Clerk.' "The papers, of which the above is a copy, were presented to the plaintiff's paying teller by the person entitled to receive the interest or principal, and the money was paid him by such teller. The amount paid upon each was charged either to the account 'Interest New York State stock, canal loan, July 2, 1881,' or to the account 'Interest loan for payment of bounties to volunteers due January 1, 1877,' according to the fact in each case, until said accounts were balanced. "Fifth. The claim of plaintiff in this action, so far as it relates to the sum of $64,518.73, being the sum assessed and collected on amounts upon which taxes have theretofore been paid by the United States Trust Company, is hereby waived and withdrawn." The contract mentioned in paragraph 2 of the agreed statement of facts was made July 13, 1840, between "The People of the State of New York, by their agents, the commissioners of the canal fund of the said State, of the first part," and "the President and Directors of the Manhattan Company, in the city of New York, of the second part." The material parts of the contract were as follows: "In consideration of the agreements and undertakings hereinafter contained on the part of the said party of the second part, the said party of the first part hereby agrees to establish an office in the bank of the said party of the second part in the city of New York for the issue and transfer of certificates Statement of the Case. of any stock authorized by the laws of the State of New York for any loans made in its behalf by the comptroller or the commissioners of the canal fund, which office shall be continued and maintained in the said bank during the pleasure of the commissioners of the canal fund of the said State. "For rendering the services contemplated by this agreement the party of the first part will pay to the said party of the second part, so long as the said transfer office shall be continued in the said bank, a compensation at the rate of twelve hundred and fifty dollars annually, and to be paid quarterly, in lieu of all expenses and charges of every description, except the expense of ledgers and transfer books. "In consideration of the aforesaid agreements the said party of the second part hereby agree and engage to maintain an office in their said bank for the issue and transfer of certificates of stock for any loan made in behalf of the people of the said State by the comptroller or by the commissioners of the canal fund, which certificates shall be issued and which transfers shall be made as herein before declared; and for all transfers made and certificates issued contrary to the provisions of this agreement hereinbefore contained, the said party of the second part shall be immediately liable to the said party of the first part for the nominal amount of all certificates so transferred or issued. "And the said party of the second part further agree that they will pay and redeem such certificates of stock issued under the direction of the commissioners of the canal fund in behalf of the State of New York, as shall from time to time be directed by the said commissioners, from the funds to be provided by them, at such rates as they shall prescribe; and will also pay and redeem such certificates of stock issued under the directions of the comptroller, as he shall direct, out of funds to be provided by him, at such rates as he shall prescribe, and in such payments will conform to such regulations as may be prescribed by the said commissioners or the comptroller in regard to such certificates respectively, and will render accounts of such payments and vouchers for the same as shall be prescribed in such regulations. Statement of the Case. "And the said party of the second part further agree that they will from time to time pay the interest on all loans made by the commissioners of the canal fund in behalf of the State of New York, out of funds to be provided for that purpose, on such vouchers and proofs as the said commissioners shall prescribe, and will render accounts of such payments, with such vouchers, within such time, and in such form as they shall direct, and in like manner will pay the interest on loans made by the comptroller from funds to be provided by him, at such times and on such vouchers as he shall prescribe, and will render an account to him of such payments, with the vouchers therefor, within such time and in such form as he shall direct." The provisions of the statute of New York, referred to in paragraph 2 of the agreed statement of facts as Exhibit B, Title 4, chapter 8, part 1, of the Revised Statutes of the State, were as follows: "87. The treasurer shall deposit all moneys that shall come to his hands on account of this State, except such as belong to the canal fund, within three days after receiving the same, in such bank or banks in the city of Albany, as in the opinion of the comptroller and treasurer, shall be secure, and pay the highest rate of interest to the State for such deposit. 66 "§ 8. All moneys directed by law to be deposited in the Manhattan bank, in the city of New York, to the credit of the treasurer, shall remain in said bank, subject to be drawn for as the same may be required. 66 "§ 9. The comptroller may transfer the deposits in the Manhattan bank from time to time to the bank or banks in the city of Albany, in which the moneys belonging to this State shall be deposited pursuant to the foregoing seventh section of this Title, so often as it will be for the interest of the State to transfer such deposits; but the comptroller may continue such deposits in the Manhattan bank, if the said bank shall pay a rate of interest to the State for such deposits, equal to that paid by the bank or banks in Albany, in which the state deposits shall be made. "§ 10. The moneys so deposited shall be placed to the Argument for Plaintiff in Error. account of the treasurer; and he shall keep a bank book, in which shall be entered his account of deposits in, and moneys drawn from, the banks in which such deposits shall be made." At the trial, the foregoing being all the evidence on both sides, the court directed a verdict for the defendant, to which direction the plaintiff excepted. The verdict having been rendered, a judgment was entered thereon against the plaintiff, and for costs. The plaintiff sued out a writ of error from this court. Mr. Augustus S. Hutchins and Mr. John W. Butterfield for plaintiff in error. I. The contract, under the provisions of which the money in question was sent by the state treasurer to the bank, and the manner in which the money was credited and disbursed by the bank, show plainly that the ordinary relation of banker and depositor never arose, and that Congress could never have contemplated the inclusion of such moneys for purposes of taxation under the general title of "deposits" as used in the act. On the contrary, it seems that the bank, as to the funds in dispute, was merely the salaried disbursing agent of the State and a trustee for the State's creditors. Mechanics' Bank v. Merchants' Bank, 6 Met. (Mass.) 13; Libby v. Hopkins, 104 U. S. 303; Sharpless v. Welsh, 4 Dall. 279; Locomotive Works v. Kelley, 88 N. Y. 234; People v. City Bank, 96 N. Y. 32; National Bank v. Insurance Co., 104 U. S. 54; Van Alen v. American Bank, 52 N. Y. 1; Pennell v. Deffell, 4 De G., M. & G. 372; Frith v. Cartlandt, 2 Hem. & Mill. 417; Martin v. Funk, 75 N. Y. 134. II. In construing a statute, it is always permissible to consider the motives which actuated the law makers and the object for which the act was passed. It seems quite inconceivable that Congress intended to charge with taxation such deposits as those in question, which were sent to the bank, not to remain indefinitely and to be loaned out at usury by the bank, for its own profit, but to be immediately paid out to certain specified creditors of the |