The H. Company, which was domiciled and traded in Tasmania, and was being pressed by the E. Bank in Victoria for payment of its overdraft, sold goods to the M. Company, which was incorporated in Victoria, but carried on business in Tasmania, and on 22nd October 1902 the M. Company, at its request, addressed to the E. Bank a letter to the following effect:—"We have received from the H. Company goods to the value of 1013l., which sum we agree to place in the E. Bank in Melbourne to their credit on or before 1st April 1903 in payment thereof." On 23rd October 1902 this letter was forwarded by the H. Company to the E. Bank, together with a letter of its own, asking the E. Bank to "please accept the letter of the M. Company against our account." Before the money had been paid by the M. Company into the Bank the H. Company executed a deed of assignment in favour of creditors.