(1) Moneys received by postmasters in their official capacities, and deposited by them pursuant to section 3848 of Rev. Stat. of 1873, as amended (U. S. C., title 39, sec. 48).

(2) Moneys paid into a United States court, which are deposited in the name and to the credit of the court pursuant to section 995 of Rev. Stat. of 1873, as amended (U. S. C., title 28, sec. 851).

(3) Moneys collected by receivers of insolvent joint-stock land banks, paid over to the Treasurer of the United States, subject to the order of the Farm Credit Administration, and subsequently, on order of the Farm Credit Administration, deposited to the credit of the receivers.

(4) Moneys received by market administrators, under orders and regulations prescribed by the Secretary of Agriculture pursuant to the Agricultural Adjustment Act of 1933, 48 Stat. 31, as reenacted and amended by the act of June 3, 1937, 50 Stat. 246 (U. S. C., Supp. V, title 7, sec. 601, et seq.).

Section 5153 of the Revised Statutes (derived from section 45 of the National Banking Act of June 3, 1864) as amended, and as it appears in the Code, provides in part (U. S. C., title 12, sec. 90):

"All national banking associations, designated for that purpose by the Secretary of the Treasury, shall be depositaries of public money, under such regulations as may be prescribed by the Secretary ***. The Secretary of the Treasury shall require the associations thus designated to give satisfactory security, by the deposit of United States bonds and otherwise, for the safe-keeping and prompt payment of the public money deposited with them.

* * *59

In Texas & Pacific Ry. v. Pottorff, 291 U. S. 245, the Supreme Court held that a national bank was without authority to pledge its assets as security for private deposits, and in Marion v. Sneeden, 291 U. S. 262, the authority of national banks to pledge their assets to secure deposits of State and local governmental agencies was likewise denied, except where permission is given by the act of June 25, 1930, c. 604, 46 Stat. 809 (U. S. C., title 12, sec. 90). To permit the pledge, the Court pointed out in the Pottorff case, would be inconsistent

58039m-42-vol. 39- -35

with many provisions of the National Banking Act which are designed to ensure, in case of disaster, uniformity in the treatment of depositors and a ratable distribution of assets.

The cases mentioned above dealt with the private aspect of national banks. In Inland Waterways Corp. v. Young, 309 U. S. 517, the function of national banks as depositaries of Federal funds was considered. In that case the deposits were made by three governmental agencies, two of which were corporations wholly owned by the United States. The Supreme Court held that a national bank was authorized to pledge its assets to secure deposits of such Federal funds even if they were not "public money" within the scope of section 45 of the National Banking Act. Although the agencies were not required by statute to obtain security for the particular deposits, the Court observed that the Congress for many years had been concerned with protecting the integrity of Government moneys, and had recognized the power of national banks to give security for deposits "of a governmental nature" by laying upon various agencies, charged with the custody of such funds, a duty to exact collateral. It was pointed out that the funds of the Government corporations were for all practical purposes Government funds and that any losses of such moneys would be borne by the Government. Support for the implied power of national banks to pledge their assets to secure such deposits was also found in the long-continued administrative practice to require security in similar transactions.

Judged by the above standards there seems to be no doubt that national banks are authorized to give security for moneys received by postmasters in their official capacities and deposited by them pursuant to section 3848 of the Revised Statutes.

Section 3848 of the Revised Statutes, as amended (U. S. C., title 39, sec. 48), provides:

"The postmaster at Washington and postmasters at cities where there is a designated depositary shall deposit the postal revenues and all money accruing at their office, as often as once a week at least, and as much oftener as the Postmaster General may direct."

It appears from the documents submitted that moneys received by postmasters in their official capacities consist mainly of proceeds from the following: postal savings, insurance and registry fees, the regular transmission of the nails, collect-on-delivery service, and money orders. These moneys are the property of the United States and any loss of such funds would fall upon the Federal Government. United States v. Brock (W. D. La.), 5 F. (2d) 265; United States v. Porter (S. D. Idaho), 24 F. (2d) 139.

The board of trustees of the postal savings funds is expressly authorized to require security from the national banks to ensure the safety of deposits of such funds. Act of June 25, 1910, c. 386, sec. 9, 36 Stat. 816; U. S. C., title 39, sec. 759. In addition, I am advised, informally, by your Department that it has been the practice for many years to require security from national banks for the protection of all deposits of moneys received by postmasters in their official capacities. Such moneys appear to be public moneys and in any event. they are clearly within the ruling in Inland Waterways Corp. v. Young, supra.

Questions Nos. 2 and 3 will be considered together.

(2) Moneys paid into a United States court which are deposited in the name and to the credit of the court pursuant to section 995 of the Revised Statutes.

(3) Moneys collected by receivers of insolvent joint stock land banks, paid over to the Treasurer of the United States. subject to the order of the Farm Credit Administration, and subsequently, on order of the Farm Credit Administration, deposited to the credit of the receivers.

Section 995 of the Revised Statutes, as amended (U. S. C., title 28, sec. 851), provides in part:

"All moneys paid into any court of the United States, or received by the officers thereof, in any cause pending or adjudicated in such court, shall be forthwith deposited with the Treasurer, or a designated depositary of the United. States, in the name and to the credit of such court."

Section 996 of the Revised Statutes directs that when the right to money paid into Federal courts has been adjudicated and remains unclaimed for at least five years it

shall be deposited in the Treasury of the United States, in the name of the United States. It further provides that any person entitled to any such money may, on petition to the court and proof of right thereto, obtain an order of the court directing the payment of such money to the claimant. Unclaimed money of individuals whose whereabouts are unknown which has been deposited in the Treasury is carried in a trust fund account. Act of June 26, 1934, c. 756, sec. 17, 48 Stat. 1224, 1231.

Section 99 of the Criminal Code provides that a clerk or other officer of a court of the United States who fails to deposit money belonging in the registry of the court with the Treasurer, or a designated depositary of the United States, shall be guilty of the statutory crime of embezzlement. Section 100 of the Criminal Code makes any other person receiving such money from a clerk or other officer of a court of the United States guilty of the statutory crime of (U. S. C., title 18, secs. 185, 187).

embezzlement.

Joint stock land banks are privately capitalized institutions which were established under the provisions of the Federal Farm Loan Act of July 17, 1916, c. 245, 39 Stat. 360, 374, to make long-term amortized loans secured by first mortgages on farm real estate. The Farm Credit Administration, as successor to the Federal Farm Loan Board, exercises general supervisory authority over the banks and directs their liquidation in cases of receivership. Receivers, who are appointed by the Farm Credit Administration, are required by section 29 of the act to "pay over all money so collected to the Treasurer of the United States, subject to the order of the Farm Credit Administration [Federal Farm Loan Board]," (U. S. C., title 12, sec. 962). These moneys are subsequently deposited in the national banks to the credit of the receivers to provide them with working funds and in addition certain other funds are deposited by the receivers in the national banks. With respect to the deposits carried by the receivers the Acting Secretary of Agriculture advises:

"The deposits carried by receivers of insolvent joint stock land banks in national banks are of two kinds: The first represents funds which are used to pay operating expenses.

As stated in the opinion of the General Counsel of the Treasury Department, a copy of which was enclosed with your letter, these funds consist of moneys collected by the receivers, paid over to the Treasurer of the United States subject to the order of the Farm Credit Administration, and subsequently on order of the Farm Credit Administration, deposited to the credit of the receivers to provide them with working funds.

"The second type of deposit carried by the receivers in national banks consists of funds which are not mentioned in the opinion of the General Counsel of the Treasury Department. These funds include such items as insurance proceeds, abstract deposits, and earnest money deposits, which are all held by the receivers in their local depositories pending determination of the disposition to be made of the funds. Insurance proceeds represent moneys paid to the receivers by insurance companies on account of insured losses of improvements on properties covered by mortgages held by the receivers. These funds are retained by the receivers pending determination whether they shall be turned over to the mortgagors for reconstruction of the destroyed improvements, or applied on the mortgage debts. Abstract deposits consist of moneys received by the receivers as security for the return of abstracts of title loaned by them to third parties. Earnest money deposits arise in connection with sales of real estate by the receivers."

With respect to moneys paid into the registry of the court, it is assumed that the United States is not a party to the litigation and has no proprietary interest in the funds. These moneys and those collected by the receivers of the joint stock land banks are, therefore, funds held for the benefit of private persons. Such funds are not public moneys of the United States as that term is ordinarily understood. Neither do they appear to be Federal funds in the sense that the Government has any proprietary interest in them. It might, therefore, be suggested that these funds are essentially private moneys and that in the absence of specific authorization national banks are not empowered to give security for deposits of such moneys. It is, of course, to be remembered that where security is lawfully obtained it results in a preference