1. John told me how honest he was.
2. John told me how he was honest.
I heard from a non-native English teacher that both #1 and #2 are okay. However, #1 seems to be correct to me.
Is #2 also fine?
Originally Posted by Gillnetter
John told me how he was honest - John spoke of a time when he did an honest thing.
I agree that this is one meaning. Another is that John said the words, "I am honest".