HEI KONA RA!

New Zealand Mail, Issue 1183, 2 November 1894, Page 13

HEI KONA RA !

An important principle in regard to securities lodged with a hank in consideration of an overdraft was laid down by the Melbourne Full Court on October 8, in giving judgment in the case of the Bank of JVictoriAv. Smith. The Court said this was an appeal from a decision of the Chief Justice, awarding the plaintiff <£6528 11s 7d, being Vthe amount of principal and interest' claimed under a guarantee given "by the defendant, John Thomas Thorold Smith, to secure advances to his brother Sydney Smitlu Sydney Smith ' deposited with the plaintiff bank 100 Black Horse Gold Mining Company shares, 150 Broken Hill Proprietary shares, and 160 Sands and McDougall shares. The bank' subsequently returned the Black Horse shares to Sydney Smith to place them with : a broker, who sold them and applied < the proceeds to the satisfaction of a debt owing to him by Sydney Smith, Then they allowed him to take away the Broken Hill . shares and substitute Melbourne Tram shares without the knowledge oj the guarantor. The Chief Justice held that by this surrender of securities the defendant was released from his guarantee pro tahto in comparison with the difference in value between the surrendered shares and the substituted shares. Having parted with the securities, the bank was in no better position than if it had sold , them and taken the proceeds, and the Court" thought the guarantor ought not to deprived of his right to have the value at the time of the surrender. The appeal would therefore be allowed with costs, and judgment entered for the defendant in the Court below with costs. Mr Kidd, president of the New Australia Settlement Association, writing to a friend in Sydney, expresses surprise that some of the prominent organisers of the movement in Australia have not yet arrived in the new colony. He says a good deal of planting has been done, and if the crops are successful the colony will be placed in an independent position. He expects further ship-loads of immigrants as the result of Casey’s mission to the colonies.