Mehaffy v. Roscoe Farmers Savings Bank

The Roscoe Farmers Savings Bank (appellant) was engaged at Roscoe, Iowa, in the banking business, at all times material to the issues here involved. C. H. Barton was the president of said bank, and Nellie Peek was cashier. The plaintiff-appellee, Mrs. W. W. Mehaffy, had some money which she desired to invest. In 1925, she intrusted to Mr. Barton-$2,000, for the purpose of investment. He did invest same, by withdrawing a note then owned by and in the possession of the defendant bank. He kept the note, at the request of appellee, in the vault of said bank.

In 1927, a new note was substituted for…