Pierce Butler

“ Reasons, at least as cogent as those that uphold that rule, support the contention that the state court erred in permitting respondent to credit the amount of petitioner's judgment for penalty upon the notes given it by the bankrupt. To allow respondent to satisfy the judgment for penalty by mere deduction from its claim against the bankrupt's estate is to detract from the punishment definitely prescribed. ”

“ Section 68a declares: 'In all cases of mutual debts or mutual credits between the estate of a bankrupt and a creditor the account shall be stated and one debt shall be set off against the other, and the balance only shall be allowed or paid.' The words 'debts' and 'credits' as there used are correlative. What is a debt on one side is a credit on the other. Libby v. Hopkins, 104 U.S. 303, 309, 26 L.Ed. 769. Liability for the penalty does not arise in contract but is laid in invitum as a disciplinary measure. ”

“ The sentence specifically required by the law may not be cut down by implication, set-off or construction; for that would narrow the statute the tend to defeat its purpose. See United States v. Wiltberger, 5 Wheat. ”