James Clark McReynolds,
Hoffman v. Rauch — Opinion of the Court
“ Petitioner maintans that the bank's assets were not increased through sale of the bonds; that nothing arose therefrom which in original or changed form can be traced into the hands of the receiver.Respondent submits that since the bank used the bonds in discharge of a liability it 'was thereby saved the use of its own funds for that purpose and the assets of the bank at the time of closing were therefore larger in amount than they otherwise would have been. A discharge or reduction of a liability produces a corresponding increase in assets. ”
