The elder Wakefield was then examined as to his transaction with a lady named Potter, which commenced in 1833. She had deposited with him 2500l. in consols, which he sold out by her directions, and invested the amount in Dutch funds to the sum of 58,000 guilders. That investment was made in her name, and so continued until about the year 1836 or 1837, when he sold it out without her knowledge or consent, but continued to pay her the regular interest upon her stock until January, 1841. In the following month of March Mrs. Potter directed that the stock should be again sold out, and re-invested in the English funds. This not being done as speedily as it should have been, the bankrupt was pressed, and made several excuses for not having done so. At length Mrs. Potter told him if it were not done forthwith, she would at once apply to her friend Mr. Chambers; and the bankrupt knowing him to be a police magistrate, sent her two policies for 500l. each, which he valued at 1600l., but subsequently reduced to 1200l. A transfer of accounts had taken place in his books between Mrs. Potter and her son-in-law, Mr. W. Wakefield, to the amount of 900l., and he and the bankrupt also sent her 400l. in bank-notes. In order to raise that sum, he had made a sale of thirty Alliance shares, but there being no court of directors then sitting, the transfer could not take place, and he consequently drew a check on his bankers for 450l. in the name of King, and handed her 400l. out of it.

The bankrupt further stated that he was not aware of the probability of his becoming a bankrupt when he made these payments, although he did think eventually he might end in bankruptcy. He was still, however, in hopes of being able to retrieve himself by his success in business, and he was not aware of being so involved by 30,000l.

Sir C. F. Williams remarked, that with his liabilities, amounting to upwards of 90,000l., and not quite 5000l. to meet them, he might as well think of paying off the national debt.

The bankrupt was next examined respecting Dutch bonds deposited with him for sale from the 6th of April, amounting to 120,000 guilders; in the evening of that day he and his partners bad made up their minds to stop payment next day.

Commissioner. - Then from that moment you had not the slightest control over those funds which are the property of the creditors.

Bankrupt the next morning, not being able to do any business, sent back a large parcel to Messrs. Twining by the hands of his son-in-law (Mr. Sleay) and he had every reason to believe that it was safely delivered. - No entry of this transaction was made. - Value of the Dutch stock was about 7000l. - Questioned relative to the accounts of the Rev. Mr. Martin and Mr. George Gregory.

July 22. - The proceedings were resumed and the elder bankrupt said the amount of expenses exhibited in the balance-sheet was correct. He had drawn out of the concern 75,154l., and his son 37,256l.

Sir C. F. Williams. The books of the firm appear to have been very accurately kept, but that fact acts two ways, for although it might be said to be in favour of the bankrupts' conduct of their business, it could but be evident that they must have known the situation they were in at the different periods at which they made such wholesale spoliation of their customers' property.

The elder bankrupt swore that although his expenses were larger some years than others, he had endeavoured, when he found what was the state of his affairs, to decrease his expenditure. All the stock and moneys sold out were for the general purposes of business. In the instance where they misappropriated Mr. Burnie's 5,169l., it went, as all others did, to pay the current demands of the day.

Sir C. F. Williams was sorry to hear the bankrupt, a man of years, so coolly speak of misappropriations like these, and say they were made for the general purposes of business. It was in fact robbing one family to pay what another family had lost; and it appeared to him that all moral feeling must be lost when a party like the bankrupt, who had held such a respectable position in life, committed such enormities as these now disclosed. He wondered how, after the deliberate manner in which these frauds had been committed, and which inflicted ruin and injury on many families, he could seek his pillow for rest. The bankrupt said that up to the hour of his failure he maintained an unblemished reputation at the Stock Exchange. - Sir C. F. Williams: But it was not then known that you had applied 75,090l. of other people's money to the wants of business. The elder bankrupt in reply to a question said, that the average profits of the concern might be 2000l., and they might have doubled their "drawings" (i.e. what they took from the concern). The books were regularly kept, which would show this. - Sir C. F. Williams: And that makes it the more infamous, for you must have been aware that it did not answer.

Mr. Coates appeared for Mr. Partridge, a heavy sufferer; the reply of the official assignee to a question he had put to him, had considerable bearing on the matter at issue. That gentleman, from the insight he had had into the books of the bankrupts and their general affairs, had no reason to suppose they had made a purse for themselves. The official assignee said, he certainly believed they had not. - Sir C. F. Williams was also of the same opinion.

Sir C. F. Williams (to the elder bankrupt): With respect to the transactions that passed between you and Mrs. Potter through her son-in-law, and which you say were always conducted through him, do you mean to swear that she never addressed you by letter, or note, or any written instrument upon those affairs? - The bankrupt: Yes, I do, distinctly. - Sir. C. F. Williams: What, not in the whole course of communication, not a note? - The bankrupt: Most certainly not. - Sir C. F. Williams: I put the question thus strongly, because it is so singular that no letter or note had been passed. It was very fortunate for the bankrupt that no letter had passed, for it only required writing to bring it within Sir Thomas Plumer's Act, and then he would have stood in a very perilous position. - The bankrupt: She is a very old woman, and very seldom leaves her room. I have not seen her for the last seven years.