Addressing the Court on behalf of defendant, Mr. Brault said his losses originated in 1920, and Mr. Melhuish had admitted in Court that the Bank was aware of his situation. The Bank also knew that defendant had an overdraft of about Tls. 500,000 with the Asia Bank and that this bank, and many others, wanted guarantees for their overdrafts. As the Hongkong Bank held all defendant's capital, they knew very well that he could not guarantee overdraft with other Banks with anything but the goods which he was paying for with the money., advanced to him by the Hongkong Bank. The plaintiffs knew also that defendant had only kept going in business during the last three years because Chinese business men consented to give him such credit that he could buy the goods from them only after shipment, instead of paying at the moment the Bank was advancing money. The Bank kept defendant going in this way because of the enormous profits which they made through his business every year. They charged him 6 {per cent., a quarter on about Tls.° 1,000,000 and made 75 ce cent. profit during the last three years. The en-
Text read from the printed page and cleaned; old type leaves the occasional error.