Samuel Blatchford

“ The creditor who holds a collateral, holds it for his own benefit under contract. He is in no sense a trustee. His contract binds him to return it when its purpose as security is fulfilled; but, if he fails to do so, it is only a breach of contract, and not a breach of trust.' In Palmer v. Hussey, 119 U.S. 96, 7 Sup. Ct. Rep. 158, the case of Hennequin v. Clews was affirmed and followed, in holding, on similar facts, that there was no such fraud in the creation of the debt, and no such trust in respect to the possession of the securities, as to bar the operation of a discharge in bankruptcy. ”

“ Within the meaning of the exception in the bankruptcy act, a debt is not created by a person while acting in a 'fiduciary character.' merely because it is created under circumstances in which trust or confidence is reposed in the debtor, in the popular sense of those terms. ”

“ In almost all the commercial transactions of the country, confidence is reposed in the punctuality and integrity of the debtor, and a violation of these is, in a commercial sense, a disregard of a trust. ”