Fort Dearborn National Bank v. Blumenzweig

The question here presented may be of great importance, though only a small sum is now involved.

The national Forge & Iron Company kept an account with the appellant and had on deposit $317. On the fourth day of August, 1891, the company gave to the appellee a check on the bank for $76.18, which he did not present until the tenth. On the eighth the company made a general assignment for the benefit of its creditors. On the tenth a note of $5,000, of the company to the bank, became due, and the bank on the morning of that day, before the check was presented, applied the $317 toward the payment…