._ His Honor said this was one of the most important cases that had ever come before him. Bankrupt appeared to have started business in 1883 with a capital of £1000. On this slender basis, or at all events without an increase dur ing the first year, he obtained from the bank and elsewhere a turnover to the extent of £85,000. In August 1884—18 months after commencing-he arranged with the Colonial Investment Company to discount long dated bills—such as were not discounted by the bank for any customers provided security was given by the person giving the bill. In 18S5 and 1886 a fall of about 50 per cent, took placein the prices of stock and landpand bankrupt having endorsed the bills wasliabletothecompanyfortheadvances which had been made. In accordance with his own statement his system of business was to obtain from customers bills which he endorsed and which the company discounted, giving at the same time a statement'in writing that he held it on behalf of the company. Then when the bankrupt sold stock on account of a cus tomer or received some payment, he paid the amount into his own current account. He saia himself that he used money paid by one client to the property of, another one, which mode of • business he called treating the securities in globo In consequence, when he failed his clients' accounts had to be paid twice over, and bank rupt was guilty of great dishonour. If a man. kept his accounts in such confusion that was the only result. The claims for consideration put forward by Mr Newton were not entitled to much attention, for bankrupt was responsible for the^nole of the securities. From time to time bankrupt obtained from the company money ad vances. The company's directors seemed to have great confidence in bankrupt, which might be explained by the friendship existing between him and Ritchie. After the interview with the directors.m May this confidence appeared to come to an end; and the directors demanded payment of certain proceeds of a security which was sold, and further, the assignment of the securities he held on behalf of the company. 