Bair

The appeal is from a judgment in favor of the plaintiff (appellee) in a suit on a promissory note. The trial court, sitting without a jury, made findings as follows:

On May 21, 1934, appellant made, and on or about June 16 of that year delivered to appellee his promissory note in the sum of $80,762.50, payable in annual installments over a period of three years, with interest at 5% per annum, payable quarterly, with the proviso that should default occur in any installment of principal or interest the holder might declare the whole sum due at once. On August 21, 1934, a default in the payment of interest occurred and appellee elected to sue.

The defenses interposed were want of consideration and an asserted release of the obligation sued on. These defenses arose out of the following circumstances,related in detail in the findings of fact: In July, 1930, appellant made and delivered to appellee’s predecessor a promissory note in the sum of $75,000, payable on September 6, 1930, with interest at 6% per annum. The note was secured by a pledge of certain shares of stock. In 1932 appellee, as successsor to the payee, commenced action on the note in the Montana state court. In that…