Douglass

Seeking payment of a deposit of public money, together with interest thereon, the appellees filed suit in the superior court of Thurston County in the state of Washington. By proper proceedings, the cause was removed to the court below.

The Olympia National Bank closed its doors on January 22, 1932', and a receiver thereupon was appointed by the Comptroller of the Currency of the United States. At the time of closing, the bank’s deposit liability to the appellees aggregated $60,-444.15, including interest accruing up to and including the suspension date. At all times such deposit liability was secured to the extent authorized by the national banking laws with réference to public deposits.

At the time of the bank’s closing, the public funds of the appellees there on deposit were secured by collateral of- a par value of $61,940.32 and of a stipulated market value, as of January 22, 1932, of $48,900.32. As of March 27, 1934, the day before the trial, the market value of the securities was stipulated to be $49,230.32.

These collateral securities were furnished by the bank in addition to five compensated surety depositary bonds, in the total penal amount of $47,500. Two of the bonds…