416 HIGH COURT OF CHANCERY.

to be nrade by others. It is believed, however, that even if the
trustees had themselves offered to transfer, under circumstances
calculated to excite suspicion, that they were about to abuse
their trust, the bank would have been bound to institute the
necessary inquiry, and if it omitted to do so, and loss resulted,
the loss would be thrown upon it.

Such was the decision of the Circuit Court, and such is be-
lieved to be the law. There are, however, circumstances in
the ease referred to in the Circuit Court, which clearly distin-
guish it from this.

In that case, long after the period allowed by the law in this
state for the settlement of the estates of deceased persons, one
of the executors, his co-executor not concurring, transferred
the stock to another bank as security for the loan obtained by
him. This loan being repaid, the bank, from whom the execu-
tor borrowed the money, transferred the stock back to him, by
the name of the commercial firm under which he was trading,
by which name he subsequently transferred the same stock to
himself and his co-executor, as such; and then, shortly after-
wards, the same party signing his name as acting executor,
again transferred the stock to the same bank as security for
other sums borrowed by him for his own use, and these latter
loans not being paid by him, the stock was sold, and hence the
loss. These various acts, the Chief Justice said, all appearing
upon the books of the bank permitting the transfer, the purpose
for which the last transfer was made, could not be doubted by
the officers, familiar as they were with the usage of loaning
money upon the hypothecation of stock; and in truth, as stated
by the court, the bank, in its answer, impliedly admits such
knowledge by saying, "if the president had known that the
transfer was about to be made, he would have prevented it."

In this ease, there was but a single transfer, and that was
made by both the parties in whose names the stock stood, and
thtre is nothing in the answer of the city, or to be found in the
evidence, upon which any presumptions? can be raised, th-at the
officers of the city knew, or suspected that the parties nhakhtg
the transfer were abusing their trust.