White's Bank v. Smith was a case heard by the United States Supreme Court in 1868. The case involved a dispute between White's Bank and Smith, a customer of the bank. Smith had deposited a large sum of money with the bank, and the bank had issued him a certificate of deposit. Smith then attempted to withdraw the money from the bank, but the bank refused to honor the certificate of deposit. The Supreme Court ruled in favor of Smith, finding that the bank had a duty to honor the certificate of deposit. The Court held that the bank had a duty to honor the certificate of deposit, and that Smith was entitled to the money he had deposited. The Court also held that the bank was liable for any damages caused by its failure to honor the certificate of deposit. This case established the principle that banks have a duty to honor certificates of deposit, and that customers are entitled to the money they have deposited. This case also established the principle that banks are liable for any damages caused by their failure to honor certificates of deposit.

In White's Bank v. Smith, the Supreme Court was tasked with determining whether a bank could recover an amount of money that had been paid out to a third party in accordance with instructions from one of its depositors who had since died. The majority opinion held that the bank did not have any right to reclaim this payment as it was made in good faith and without knowledge of any defect or irregularity in the transaction. However, Justice Field dissented from this ruling on the grounds that banks should be able to protect themselves against such losses by requiring proof of death before honoring requests for withdrawals from deceased customers' accounts. He argued that allowing banks to do so would provide them with greater security and stability while also protecting their customers' interests by ensuring funds are only released when appropriate authorization is provided.