A., being the owner of certain machinery then in his bonded warehouse and also the agent for the sale of other machinery consigned to him by principals in England, over which he had certain claims for freight and other charges, agreed to sell to M. certain machinery described, together with charges thereon and also charges against consignments of the principals, on the following conditions:—That M. had the sole right to the agency for at least twelve months, and that he lodged the certificates of the machinery in the Bank of Victoria to a trust account, and undertook to pay all moneys received into the bank, and that, after all liabilities against them were satisfied, he should be entitled to retain possession of the balance of the certificates, and be considered the sole agent for the agency for at least twelve months; that being the consideration on which he accepted the purchase of the machinery belonging to A. at cost. Both lots of machinery were then handed over to M., who lodged them in another bonded warehouse and obtained bonded certificates for them, which he lodged with the Bank of Victoria as security for an advance made to him by the bank, and also signed the usual bank lien covering past, present, and future advances. At this time there were in the bank to the debit of the account of another customer certain past due bills given by M. to that other customer, which had been discounted by the bank for such customer.