American Bank v. Federal Reserve Bank, 262 U.S. 643 (1923)

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American Bank & Trust Company v.

Federal Reserve Bank of Atlanta
No. 717

Argued April 30, May 1, 1923
Decided June 11, 1923
262 U.S. 643

APPEAL FROM THE CIRCUIT COURT OF APPEALS

FOR THE FIFTH CIRCUIT

Syllabus

1. It is within the statutory powers of a federal reserve bank to collect checks on state banks within its district which are not members of the federal reserve system or affiliated with it through establishment of an exchange balance, and which refuse to assent to clearance at par, provided the checks be payable on presentation and can in fact be collected consistency with the legal rights of the drawees without paying an exchange charge. P. 646.

2. Loss of income resulting to country banks from the exercise of this right without malice or coercion is damnum absque injuria. P. 648.

284 F. 424 affirmed.

Appeal from a decree of the circuit court of appeals affirming a decree made by the district court after final hearing in a suit brought by numerous state banks against the Federal Reserve Bank of Atlanta and its officials. The case was here before on a decree sustaining a demurrer to the bill. 256 U.S. 350.