In my last paper I have discussed on Tooke’s criticism in his History on Joseph Hume's view on money and circulation. In Hume's view deposit was the real part of circulation. In this paper I have looked into the dispute between Hume and Overstone in the Committee on Banks of Issue in 1840 to find how Overstone explained the difference and relation between deposit and money. Overstone tried from the theoretical point of view to say how deposit is different from money. According to him, and defferent from Hume, deposit is not the money but the mode which performs a part of the function of paying or discharging debts under some conditions.