This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 447.— John Smith and Henry Jones are promissors on a note. At maturity a renewal note is taken bearing John Smith's signature only, the old note being retained, however, uncancelled. John Smith fails before the renewal note matures. Can Henry Jones be held on the original note?
Answer.—Henry Jones could be sued for the debt, providing no questions of principal and surety came in. If the two parties to the original note were both principal debtors such an arrangement as you describe would not discharge either of them, and even if the one whose name was not on the renewal note was a surety his liability could be preserved by a suitable agreement. The law bearing on the matter is fully discussed in the case of Dixon v. Gorman, reported on page 418 of Vol. 111 the Journal.