122 Iowa 737 | Iowa | 1904
Prior to January 19, 1897, J. W. Geneser was cashier of the German Savings Bant of Des Moines. He had borrowed money of the bank both individually and for the Capital City Oatmeal Company, of which he was treasurer. The transactions by which these loans were originally made are not disclosed by the record. For the purposes of this case, their validity is not questioned, foi the reason that the bank received and retained their full value when discounted to the Des Moines National Bank. There were originally four notes — one of the oatmeal company executed by Geneser, as treasurer, to the savings bank, for $4,500, and by him, as cashier, sold to the national bank November 24, 1894; one individual note of Geneser to the savings bank for $4,900, and sold by him, as cashier, to the national bank April 10, 1895; and two of his notes, one of $1,240, and the
II. But the original notes by the cashier, individually or a.s treasurer of the oatmeal company, were endorsed by him as cashier of the bank, or accompanied by written letters z. Ratification, of guaranty so signed when transferred to the National Bank, and the latter parted with money equaling their face value on the faith of this endorsement or guaranty. The Savings Bank retained the money so received and thereby acquiesced in what was done in procuring it, effectually ratifying the acts of its cashier. Hawkins v. Fourth National Bank, 150 Ind., 117 (49 N. E. Rep. 957); People’s Bank v. Mfg. National Bank, 11 Otto, 181 (25 L. Ed. 907).
The appellant concedes this, but questions the validity of the renewals. It will be recalled that new notes were executed by the cashier and substituted for those first nego-
III. Conceding all this, however, it does not follow that the plaintiff is entitled to recover the amount paid for these notes on the 20th of January, 1897. The president of the