account nn tip and (Town, The fint month w§ turned over £2,000. The account ran np to £12,000 to £15,000 six months aftor beginning business. It was not upon Mr. Hunter's first arrangement. Whenever I wanted an extra overdraft, I gent Mr. Hunter to Mr. O'Neill, and he generally came baok with a faTonrable anawer. I did the business with Mr. Johns. Mr. Hunter «nd myself vr ere requested some time in 1865 to give farther security for overdraft. Mr. Hunter gave his own private property for £1,000. I got a name for £600 Mr. Henderson's. My arrangements were always made with Mr. Johns, and Mr. Hunter's with Mr. O'Neill. The authorised overdraft of £1,500 wt8 exceeded some time about April, 1865. I cannot tell the exact date The book does not quite ■how. On the 30th of October the acoonnt shows £6,000 overdrawn. You cannot tell from the book on any day the amount of the over draft. (Mr. Whitaker, referring to the bank book, said that at the end of June the sum of £1,500 did not appear to have been exceeded.) Witness : On balancing dayi a muster was always made, to reduce the liabilities. The book does not show it, but the £1,500 was exceeded. The reason the £1,500 wai exceeded was — Mr. Hunter brought Mr. Scherson to me, who was shipping sheep from Napier, and asked if I could give him £1,000. He said Mr. Scherson had 1,000 sheep and 300 head of cattle coming up for gale. That was, to the best of my recollection, in April or May, 1865. (Book produced.) The amount appears doubled in July. A letter of credit has some time to run. I went down with Mr. Scherson to the bank when he wanted the loan. In about ten days after we got the advance of £1,000 to Mr. Scherson, Mr. Buokland issued a writ against him for £1,200. £1,000 Was given to Scherson by the bank by a two months' Tetter of credit, payable in July. There was afterwards a promissory note for a writ issued by Mr. Buckland. Mr. Hunter had assured me that Mr. Scherson had ' no debts. After consulting, we accepted the £1,238 7s. lOd , and gave a promissory note for it. I was guided by Mr. Hunter ; I was a stranger j I did not know that Mr. 