James Clark McReynolds

“ The court below rightly concluded that the narrow question is this: 'Did appellant have actual knowledge of the infirmity or defect, or knowledge of such facts that its action in taking the instrument amounted to bad faith?' It ruled that, as a purchaser of negotiable instruments in good faith, before maturity and for a valuable consideration, respondent should be protected against a charge of bad faith which has no fact support other than the receipt of a notice circulated generally among dealers which stated that certain bonds of a large issue had been stolen. ”

“ It overlooks the well-established rule that, though one has received actual notice, if by forgetfulness or negligence he does not have it in mind when he acquires the bonds, he may still be a good-faith purchaser. ”

“ By an appropriate proceeding, the Treasurer of Illinois sought an adjudication determining the ownership of eight $1,000 negotiable coupon bonds issued by the state. They were stolen from their lawful owner, petitioner Graham, August 30, 1930, and on September 22, 1930, were purchased for a fair price in the ordinary course of its business by respondent's Chicago office from Connolly, listed dealer at St. Paul, Minn. No circumstance suggests conscious wrongdoing by the purchaser. ”