256 U.S. 350 (1921), 679, American Bank & Trust Company v. federal reserve bank
|Docket Nº:||No. 679|
|Citation:||256 U.S. 350, 41 S.Ct. 499, 65 L.Ed. 983|
|Party Name:||American Bank & Trust Company v. federal reserve bank|
|Case Date:||May 16, 1921|
|Court:||United States Supreme Court|
Argued April 13, 14, 1921
APPEAL FROM THE CIRCUIT COURT OF APPEALS
FOR THE FIFTH CIRCUIT
1. A suit against a federal reserve bank and its officers held a suit arising under a law of the United States within the meaning of § 24, cl. 1, of the Judicial Code, such banks being creatures of the Federal Reserve Act. P. 356.
2. A federal reserve bank is not a national banking association within § 24, cl. 16, of the Judicial Code, which declares that such associations, for the purposes of suing and being sued, shall (except in certain cases) be deemed citizens of the states where they are located. P. 357.
3. Several country banks of Georgia alleged that they derived an important part of their income from charges on payment of checks drawn by their depositors when sent in, usually through other banks, from a distance; that banks of the Federal Reserve System were
forbidden to make such charge, and that the defendant federal reserve bank and its officer, in pursuance of a policy of the Federal Reserve Board, for the purpose of compelling the plaintiffs and like bank to become members of the system, or to open clearing accounts with the defendant (which would deprive them of the aforesaid charges, reduce their lending power, and drive some of them out of business), intended to accumulate such checks in large amount and then require cash payment at par by presentation over the counter or otherwise, so as to compel plaintiffs to maintain so much cash in their vaults that they must either give up business or submit, if able, to the defendant's scheme. Held that the bill stated a cause for an injunction. P. 357.
269 F. 4 reversed.
Appeal from a decree of the circuit court of appeals affirming a decree of the district court dismissing, for want of equity a bill brought by divers state banks against a federal reserve bank and its officers for an injunction. The facts are stated in the opinion.
HOLMES, J., lead opinion
MR. JUSTICE HOLMES delivered the opinion of the Court.
This is a bill in equity brought by country banks incorporated by the State of Georgia against the Federal Reserve Bank of Atlanta, incorporated under the laws of the United States, and its officers. It was brought in a state court but removed to the district court of the United States on the petition of the defendants. A motion to remand was made by the plaintiffs...
To continue readingFREE SIGN UP