The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
V r 1929 EXECUTIVE OFFICERS inaugurated President - Herbert Clark Hoover (elected Nov. 1928, March 4, 1929) Secretary of Treasury - Andrew V. Mellon (appointed March 4, 1921, until Feb. 12, 1932) Comptroller of Currency - J. Secretary of State Secretary of War Secretary of Navy Secretary of Interior Secretary of Agriculture - Frank B. Kellogg, Dwight F. Davis, Curtis D. Wilbar, V. Pole (date of appointment Nov. 21, 1928, resigned Sept. 20, 1932) - &Ray L. Wilbur, Henry L. Stimson Patrick J. James W. Good, Charles F. Adams Roy 0. We Arthur M. Hyde - William M. Jardine, Secretary of Commerce - William F. Whiting, Sedretary of Labor Postmaster General Attorney General - James J. Davis Walter F. Brown Harry S. New, William D. Mitchell John D. Sargent, served Robert P. Lament Hurley 1929 U.S. GO VERNMENT SENATE Banking and Currency Committee 71st Congress Democrats Republicans NORBECK, Peter EDGE, Walter E. PHIPPS, Lawrence C. BROOKHART, Smith W. STEIWER, Frederick THOMAS, John GOLDSBOROUGH, Phillips Lee HEBERT, Felix TOWNSEND, John G., Jr. WALCOTT, Frederic C. South Dakota New Jersey Colorado Iowa Oregon Idaho Maryland Rhode Island Delaware Connecticut FLETCHER, Duncan U. GLASS, Carter WAGNER, Robert F. BARKLEY, Alben W. TYSON, Lawrence D. CONNALLY, Tom BRATTON, Sam G. Florida Virginia New York Kentucky Tennessee Texas New Mexico _J .1929 November U.S. GO VERNMENT HOUSE OF REPRESENTATIVES Banking and Currency Committee 70th Congress Republicans McFADDEN, Louis T. STRONG, James G. LUCE, Robert FENN, E. Hart CAMPBELL, Guy E. LEATHERWOOD, Elmer 0. BEEDY, Carroll L. HOOPER, Joseph L. GOODWIN, Godfrey G. LETTS, F. D. WOLFENDEN, James CULKIN, Francis D. Democrats Pennsylvania Kansas Massachusetts Connecticut Pennsylvania Utah Maine Michigan Minnesota Iowa Pennsylvania New York WINGO, Otis STEAGALL, Henry B. BRAND, Charles H. STEVENSON, William F. (BLACK, Eugene) GOLDSBOROUGH, T. Alan PRALL, Anning S. CANFIELD, Harry C. Arkansas Alabama Georgia South Carolina Texas Maryland New York Indiana Members whose names are inclosed in brackets ( ) will not be Members of the Seventy-first Congress. FEDRA 1929 -RESERV BOARD Ex Offieto Membeiy A. V. Mellon Secretary of the Treasury Chairman J.W. Pole, Comptroller of the Currency Roy A. Young, Governor Edmund Platt,: Vica Governor Adolph C. Miller Charles S. Hamlin George R. James Edward H. Cunningham Secretary's Office Walter L. Eddy, Secretary J. C. Boell, Asst. Secretary E. M. McClelland, Asst. Secretary Fiscal A5t W. M. Imlay,.. Fiscal Agent Division of Examination J. F. Herson, Chief And Chief Federal Reserve .-Examiner http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis L .Counael 'a Office Walter Wyatt, General Counsel Divis on-of Research and Statistics E. A. Goldenveiser, Director Carl E. Parry, Asst. Director Division Of Bank Operations E. L. Snead,Chief __ _ _ __ _ FEDERAL RESERVE SYSTEM FEDERAL ADVISORY COUNCIL 1929 District No. (Boston) Arthur M. Heard District No. (New York) Wn. C. Potter District No. (Philadelphia) L. L. Rue District No. (Cleveland) Harris Creech District No. (Richmond) John Poole District No. (Atlanta) J. P. Butler, Jr. District No. (Chicago) Frank 0. Wetmore, President District No. (St. Louis) W. W. Smith District No. (Minneapolis) Theodore Wold District No. (Kansas City) P. W. Goebel District No. (Dallas) B. A. McKinney, Vice President District No. (San Francisco) F. L. Lipman Walter Lichtenstein, Secretary ~I FEDERAL RESERE SYSTEM 1929 OPEN MARKET INVESTWNT COMITTEE Composed of five Governors of Federal Reserve Banks: Boston - W. P. G. Harding New York - George L. Harrison Philadelphia - George W. Norris Cleveland - E. R. Fancher Chicago - J. B. McDougal :r:- i-r-Yn~-?r~t~;c~-1929 Federal Reserve Bank of Boston (Dist. 1) OFFICERS Governor - W. P. G. Harding Deputy Governor - W. W. Paddock Chairman and Federal Reserve Agent - Frederic H. Curtiss Deputy Chairman - Allen Hollis i 1929 Federal Reserve Bank of Boston (Dist. 1) DIRECTORS Term Expires Class A RIPLEY, Alfred L. (Boston, Mass.) KENNARD, Edward S. (Rumford, Me.) CHAMBERLAIN, Frederick S. (New Britain, Conn.) Dec. 31 1929 1930 1931 (re-elected) Class B ALLEN, Philip R. (East Walpole, Mass.) BEMIS, A. F. (Boston, Mass.) BOWMAN, Albert C. (Springfield, Vt.) 1929 1930 (elected) 1931 (re-elected) Class C CURTISS, Frederic H. (Boston, Mass.) Chairman and FR Agent HOLLIS, Alien (Concord, N.H.) Deputy Chairman MANCHESTER,- Chas. H. (Providence,R.I.) 1929 1930 1931 (re-appointed) 1929 Federal Reserve Bank of New York (Dist. 2) OFFICERS Governor - George L. Deputy Governors Chairman and Federal Reserve Agent Deputy Chairman - Harrison - J. H. Case L. F. Sailer E. R. Kenzel - Gates W. Mc Garrah Owen D. Young A. W. Gilbart L. R. Rounds Feder al.Reserve Bank of NEW YORK 1929 (Dist. 2) DIRECTORS Term Began Dec. 31 Term Ended 1/1/27 1929 1/1/28 1930 1/1/29 1931 1/1/27 1929 (New York) 1/1/28 1930 WOODIN, William H. (New York) 1/1/29 1931 (reelected) 1/13/27 1929 (Deputy Chairman) 1/1/28 1930 1/1/29 1931 (reappointed) CLASS A I TRIMAN, Bohrt H. (thae&ak RUNKLER, alar (MHosick- Falls) MITCHELL, Charles E. (New York) (elected) CLASS B WHITMARSH, REYBURN, Theodore F. Samuel V. (New York) CLASS C YOUNG, Owen D. WOOLLEY, McGARRAH, (New York) Clarence M. (Greenwich) Gates W. (New York) (Chairman) -- Ci 1929 Federal Reserve Bank of Philadelphia (Dist. 3) OFFICERS Governor - George W. Norris Deputy Governor - Chairman and Federal Reserve Bank - Deputy Chairman - William H. Hutt R. L. Austin Alba B. Johnson 'I 1929 Federal Reserve Bank of Philadelphia (Dist. 3) DIRECTORS Class A WAYNE, Jos.(Jr.) (Philadelphia Pa.) REILY, Geo W. (Harrisburg, Pa.) COSGROVE, John C. (Hastings, Pa.) Tenm Expires Dec. 31 1929 1930 1931 (elected) Class B SEWALL, Arthur W. (Philadelphia, Pa.) DORRANCE, A. C. (Camden, N. J.) STOUT, C. F. C. (Philadelphia, Pa.) 1929 1930 1931 Class C AUSTIN, R. L. (Philadelphia, Pa.) Chairman and FR Agent JOHNSON, Alba B. (Philadelphia, Pa.) Deputy Chairman CANNON, H. L. (Bridgeville, Del.) 1929 1930 1931 (re-appointed) I __ 1929 Federal Reserve Bank of Cleveland (Dist. __-_ _ h) OFFICERS Governor - E. R. Deputy Governors Fancher M. J. Fleming Frank J. Zurlinden Chairman and Federal Reserve Agent - George De Camp Deputy Chairman - L. B. Williams j III I I I TL __ . 2 1929 Federal Reserve Bank of Cleveland (Dist. t) DIRECTORS Class A WARDROP, Robert (Pittsburgh, Pa.) SAMS, 0. N. (Hillsboro, Ohio) LAMBERTON, Chess (Franklin, Pa.) Term Expires Dec. 31 1929 1930 1931 (re-elected) Class B CRABBS, Geo. D. (Cincinnati, Ohio) BUSH, S. P. (Columbus, Ohio) WRIGHT, R. P. (Erie, Pa.) 1929 1930 1931 (re-elected) Class C DeCAMP, George (Cleveland, Ohio) Chairman and FR Agent KNIGHT, W. W. (Toledo, Ohio) WILLIAMS, L.B. (Cleveland, Ohio) Deputy Chairman 1929 1930 1931 (re-appointed) 1929 Federal Reserve Bank of Richmond (Dist. 5) OFFICERS Governor George J. Deputy Governors Seay C.A. Peple R. H. Broaddus Chairman and Federal Reserve Agent Deputy Chairman - William W. Hoxton - Frederic A. Delano 1929 Federal Reserve Bank of Richmond (Dist. 5) DIRECTORS Class A JOHNSON, L. E. (Alderson, W. Va.) RIEMAN, Chas. E. (Baltimore, Md.) BRASWELL, Jas.C. (Rocky Mount, N.C.) Term Expires Dec. 31 1929 1930 1931 (re-elected) Class B COKER, D.R. (Hartsville, S.C.) FISHBURN, J. P. (Roanoke, Va.) GRAHAM, Edwin C. (Washington, D.C.) 1929 1930 (elected) 1931 (re-elected) Class C HOXTON, Wn. W. (Richmond, Va.) Chairman and FR Agent DELANO, Frederic A. (Washington, D. C. ) Deputy Chairman LASSITER, Robert (Charlotte, N.C.) 1929 1930 1931 (re-appointed) Federal Reserve Bank of Atlanta (Dist. 6) OFFICERS Governor - Deputy Governors Eugene R. Black - Chairman and Federal Reserve Agent Deputy Chairman Hugh Foster Creed Taylor Oscar Newton - v. H. Kettig :__: ______.____ __E_~_ 1929 Federal Reserve Bank of Atlanta (Dist. 6) DIRECTORS Class A WARE, G. G. (Leesburg, Fla.) YOUNG, H. Lane (Atlanta, Ga.) MELVIN, E. C. (Selma, Ala.) Term Expires Dec. 31 1929 1930 1931 (re-elected) Class B SIMON, Leon C. (New Orleans, La.) McCRARY, J. A. (Decatur, Ga.) LEA, Luke (Nashville, Tenn.) 1929 1930 1931 (re-elected) Class C NEWTON, Oscar (Atlanta, Ga.) Chairman and FR Agent HARRIS, Geo. S. (Atlanta, Ga.) KETTIG, W. H. (Birmingham, Ala.) Deputy Chairman 1929 1930 1931 (re-appointed) i _ __ ____ ______;_ __~_ 1929 Federal Reserve Bank of Chicago (List. 7) OFFICERS Governor - J. B. Mc Dougal C. R. Me Kay Deputy Governors John H. Blair Chairman and Federal Reserve Agent Deputy Chairman - - W. A. Heath James Simpson i Federal Reserve Bank of Chicago (Dist. 7) DIRECTORS Class A JOHNSON, E. L. (Waterloo, Iowa) REYNOLDS, George M. (Chicago, Ill.) ESTBERG, Edward R. (Waukesha, Wis.) Term Expires Dec. 31 1929 1930 1931 (elected) Class B MUELLER, obert (Decatur, Ill.) VOGEL, A. H. (Milwaukee, Wis.) CRAPO, S. T. (Detroit, Mich.) 1929 1930 1931 (re-elected) Class C SIMPSON, James (Chicago, Ill.) Deputy Chairman HEATH, W. A. Chairman and FR Agent (Chicago, Ill.) BALL, F. C. (Muncie, Ind.) 1929 1930 1931 (re-appointed) _ ___;_____ ___ 1929 Federal Reserve Bank of St. Louis (Dist. 8) OFFICERS Governor - Deputy Governor 0. M. Attebery Chairman and Federal Reserve Agent Deputy Chairman illiam Mc C. Martin (appointment effective January 16) - - Rolla Wells John W. Boehne 1929 Federal Reserve Bank of St. Louis (Dist. 8) DIRECTORS Class A LONSDALE, John G. (St. Louis, Mo.) NAHM, Max B. (Bowling Green, Ky.) MARTIN, John C. (Salem, Ill.) Term Expires Dec. 31 1929 1930 1931 (re-elected) Class B PERCY, Le Roy (Greenville, Miss.) vacancy PLUNKETT, W. B. (Little Rock, Ark.) 1929 1931 (re-elected) Class C BOEHNE, John W. (Evansville, Ind.) Deputy Chairman WELLS, Rolla (St. Louis, Mo.) Chairman and FR Agent DILLARD, Paul (Memphis, Tenn.) 1929 1930 (appointed) 1931 (re-appointed) 1929 Federal Reserve Bank of Minneapolis (Dist. 9.) OFFICERS Governor Deputy Governors - W. B. Geery - B. V. Moore Harry Yaeger Chairman and Federal Reserve Agent Deputy Chairman John R. Mitchell - Homer Clark Federal Reserve Bank of Minneapolis (Dist. 9 DIRECTORS Class A Term Expires Dec. 31 BASSETT, J. C. (Aberdeen, S. Dak.) FARUP, Karl J. (Park River, N.Dak.) LEEMAN, Paul J. (Minneapolis, Minn.) 1929 1930 1931 (re-elected) Class B HOLTER, N. B. (Helena, Mont.) OWEN, John S. (Eau Claire, Wis.) MYERS, Paul N. (St. Paul, Minn.) 1929 1930 1931 (re-elected) Class C MITCHELL, John R. (Minneapolis, Minn.) Chairman and FR Agent CLARK, Homer P. (St. Paul, Minn.) Deputy Chairman McCORMICK, Geo W. (Menominee, Mich.) 1929 1930 1931 (re-appointed) _I_ ____ _1______ __~_ 1929 Federal Reserve Bank of Kansas City (District 10) OFFICERS Governor Deputy Governor - W. J. - C. A. Worthington Bailey Chairman and Federal Reserve Agent - M. L. Mc Clure Deputy Chairman - Wm. L. Petrikin 1 _I____________________~____~__~_I I 1929 Federal Reserve Bank of Kansas City (Dist. 1D) DIRECTORS Term Expires Class A MULLANEY, PARKS, C. SPONABLE, Dec. 31 E. E. (Hill City, Kans.) C. (Denver, Colo.) Frank W. (Paola, Kans.) 1929 1930 1931 (re-elected) Class B PHILLIPS, L. E. (Bartlesville Okla.) BYRNE, Thos. C. (Omaha, Nebr.) BERNARDIN, J. M. (Kansas City, Nebr.) 1929 1930 1931 (re-elected) Class C McCLURE, M. L. (Kansas City, Nebr.) Chairman and FR Agent BRASS, F. M. (Grand Island, Nebr.) PETRIKIN, Wm. L. (Denver, Colo.) Deputy Chairman 1929 1930 1931 (re-appointed) J 1929 Federal Reserve Bank of Dallas (Dist. OFFICERS Governor Deputy Governors - Lynn P. Talley - R. R. Gilbert R. B. Coleman Chairman and Federal Reserve Agent Deputy Chairman C, C. Walsh - Clarence E. Linz 1) 1929 Federal Reserve Bank of Dallas (Dist. 11) DIRECTORS Class A SMITH, Howell E. (McKinney, Tex.) FROST, J. H. (San Antonio, Tex.) PATRICK, W. H. (Clarendon, Tex.) Term Expires Dec. 31 1929 1930 1931 (re-elected) Class B CULBERTSON, J. J. (Paris, Tex.) MILAN, J.R. (Waco, Tex.) CLEVELAND, A. S. (Houston, Tex.) 1929 1930 1931 (elected) Class C LINZ, Clarence E. (Dallas,Tex.) Deputy Chairman PERKINS, S. B. (Dallas, Tex.) WALSH, C. C. (Dallas, Tex.) Chairman and FR Agent 1929 1930 1931 (re-appointed) 1929 Federal Reserve Bank of San Francisco (Dist. 12) OFFICERS Governor - J. Deputy Governors U. Calkins Wm. A. Day Ira Clerk Chairman and Federal Reserve Agent - Isaac B. Newton Deputy Chairman - Walton N. Moore Federal Reserve Bank of San Francisco (Dist. 12) DIRECTORS Class A RAMSAY, T. H. (Red Bluff, Calif.) VAWTER, Vernon H. (Medford, Oreg.) McINTOSH, C. K. (San Francisco, Calif.) Term Expires Dec. 31 1929 1930 (elected) 1931(re-elected) Class B DOHRMANN, A. B. C. (San Francisco, Calif.) SESNON, Wm. T. (Soquel, Calif.) COX, E. H. (Madera, Calif.) 1929 1930 1931 (re-elected) Class C NEWTON, Isaac B. (San Francisco, Calif.)Chairman and FR Agent 1929 MOORE, Walton N. (San Francisco, Calif.)Deputy Chairman 1930 SPROULE, Wa. (San Francisco, Calif.) 1931 (re-appointed) i - -- --- \--~-- i~.i---rr.-~,, 1929 January 26 LEGISLATION \, __.-IL44L i F- -1929 March 2 Interlocking directorates. -LEGISLATION 1* The first proviso to section 8 of the Act of October 15, 1914 (Clayton Act), exempting mutual savings banks from the prohibition against interlocking directorates, was amended to exempt also joint stock land banks and other banks doing noncommercial business. (45 Stat. 1536, Ch. 581.) Source: Supplement to statement on Evolution of Banking Legislation by Walter Wyatt, October 26, 1939. Exhibit G i 1929 June 17 Treasury bills and certificates of indebtedness. LEGISLATION The Secretary of the Treasury was authorized to issue a new form of Treasury obligation to be known as "Treasury bills", and the Act provided that wherever the words "bonds and notes of the United States" or certain similar phrases were used in the Federal Reserve Act they "shall be held to include" such Treasury bills and also certificates of indebtedness. This, in effect, amended sections 13 and 14, and authorized Federal Reserve banks to rediscount notes secured by Treasury bills or certificates of indebtedness; to make short-term advances to member banks on their promis sory notes so secured; and to purchase in the open market Treasury bills and certificates of indebtedness. Prior to this enactment, certificates of indebtedness of the United States were considered eligible for the pur poses stated and in this respect the new law was merely a specific statutory confirmation of the existing practice. (46 Stat. 19, Ch. 26.) Source: Supplement to statement on Evolution of Banking Legislation by Walter Wyatt, October 26, 1939. Exhibit G 1929 The Stock Exchange did not officially close after the 1929 Panic though on October 31, 1929 it did not open until noon while on November 1 and 2 it did not open at all because trading was so heavy. It also remained closed on Saturdays during November (the 9th, 16th, 23rd, and 30th), again because of the heavy trading. However, all these days of remaining closed were done for the convenience of member firms who were finding it impossible to keep their records up to date because of the volume of transactions. The Stock Exchange resumed its being open on Saturdays starting with the first practice of Saturday in December. FEDERAL RESERVE SYSTEM 1929 August 1929 (See also 1928 - Jan.1928 to May 1929) POLICY ACTION Apparent Intent - Restrictive Open Market Operations - Buying rate on bankers' acceptances reduced. Restrictive effect of discount operations moderated by free purchases of bankers' acceptances during autumn to assist seasonal financing of agriculture and trade. Discount Rate - Raised from 5 to 6 percent at New York. Surrounding Circumstances - Industrial production, factory employment, and pay rolls at high levels; earnings of corporations at record volume; capital issues numerous and large; speculative credit at banks increasing rapidly; rates charged by banks higher than at any time since 1921; loans to brokers and dealers in securities and stock prices at unprecedented levels. Source: Joint Committee on the Economic Report Monetary Policy and the Management of the Public Debt (Patman Report) 1952, Page 218. FEDERAL RESERVE SYSTEM 1929 October 1929 to December 1930 POLICY ACS5Si Apparent Intent - Expansionary Open Market Operations - Bought $560 million of Government securities, of which $120 million were bought in 2 days at most critical phase of stock market crash. Buying rate on bankers' acceptances reduced sharply. Discount Rate - Reduced successively from 6 to 2 percent at New York; from 5 to 3 percent at Boston and Cleveland; from 5 to 31/2 percent at other Banks. Surrounding Circumstances - Recession in industry; commodity and stock prices dropped sharply; private lenders called loans to brokers; bank credit liquidation started. Actions aimed at preventing complete collapse of security markets and money panic, and at making credit easy to facilitate business recovery. Source: Joint Committee on the Economic Report Monetary Policy and the Management of the Public Debt (Patman Report) 1952, Page 218. LITIGATION 1929 4.304. Board aindispen ble:*eaf t:~ --uit against Federal Res, serve bank.-In a suit to enjoin a Federal Reservl nk ~fr& restricting the supply of credit available mia.aatigb t purposes by engaging in open kmarket operations, from raising the rediscount rates, and from .ciqfully coercing member banks to call collateral loans made to their rs by refusing to rediscount paper for such member banks, it was held l ince the Federal Reame Board was specifically authoriked to regulate open market transactions, to review-*d' determ count rates and to make reports as to condition in the Feder System, and since the FedetBsereservi ltt was aqgovernment under the direction of the Board, the Board was therefore ani "should be dismissed for non peisab ie party to the suit an tb joinder. Raichl v. Federal Reserve Bank of New York, 34 Fe 1rJia 14 the mabove case with ; respect to dis' as to open market operations, see 1 lOl 1929 LITIGATION LTIGATIONI te 11.642. Rigft4o s&ession after 1927 amrn as o Probate the by SoqAIy, which had been appoipted ao d ank md ttco upder a will, was consolidated with a natie~i~ ise ed authori been propevy had national bank, which poeMrs, applied to the Probate Court fgthe allowance of its accun been hacted uIder the pr oill0onsolidat.io.^' executor. , edy Ey tie Act of the Act of November 7, 1918, as u ed atonal , the cons 1927, providing that 1hcases of c bank should hold and'enjoy the sna alfarigltl, .a opety, as trustee, 'nright of wecesaiw franehisesand interest, inclidi in the sam€~nner and to the executorivor other fiduciary am, same extent as was held and eoyed byA,~jhate ~toation, but that no such consolidation should be in contraven~We of State Iaw'The Su preme Judicial Court of Massachusetts hel~ha4jthe igeral statute contemplated that the original appointext 0 , a State trust company was to continue in the consolidated national beak, wholly unaffected by the fact that the State trust company had ceased to exist, and that, as so interpreted, the provision was in contravention of the State law and con trary to the State al Federal Constitutions; that, in the absence of its appointment by the Probate Court, the consolidated national bank had not succeeded the State trust company as executor under the will and, accordingly, its application for the allowance of its account should be denied (263 Mass. 444, 162 N.E. 217). On appeal to the Supreme Court of the United States, that court held that the Federal statute was consti tutional but that, in view of the State law, the effect of the statute in, See over MassachuieW State oee o MER-obly imd abani trust co to the tional bank; t necessary for the national .! Accordingly, ,the iXm wW appointmentw4If I no e was Armed and the cse was remandedr4o the obateCourt f- a t ai snak as executor de "n tort. iante Wrcester National 27S U. S. 347 (1929). L29BuL nm 407. ( 2-- --- r LITIGATION unde~l*ectf trust. ~tuseeunder z of Nove*W 1 ,6Iith, natio4~ :.7e a case, a person desi~ting a coxrpotof with knowledge. thaVt1b* tust is tio*. whom the stockholders of the affairs. In the presen Worcester National _ dminister tW -us ing the State First National Ba M,6 tu-- 79P, ~ S by tbo~p'erW sAt5IEx ctarte h=thori% to p oint- LITIGATION -to issue ublic state.nt.-Z'he t Ut Federal Reslm riWmn. .rej? of ind sad g l s in t= rli--=" o -the plaintiff, was held q~rC s Bat*Tof ol NOTE -See also 11.100. "r~ *,. LITIGATION S13.602. -- Funds of drwee i of Reserve bank.-.. bai sent direct toi b t mond, pursuaM to an agreeme'i bank cbarge4e ecks to the Federal Reeer bank drefts had funds on detpaos. yayrnt of tha a. hjrt t4o claim State bank were of Ri The drawee he drawers and remitted o a bank in which the drawee 1 f was refuse by the depos itory bank altheugh itrad-sufficient ifnds belonging to th&eiAwee RBoterve bank, as intervener in. the Fe bank to pay such ar draie bank, pied a claim to establish a suit to settle th aft. t was held that the drawee ta a preference an t lid letion and remittance of aof nk fo the !i bank was the a -,Mcreated as to the funds tion; that therefre a t the checks in Federal Reserve bank ;a on deposit in the nee of such ftds over general a should be prefer of Mlen, 108 W. Va 12, 150 S.E. o.edite s. 137 aurc LITIGATION 1.642. unds'f fa bank not increa- by tran Checks dn upon a Stae i de th bank forc lection by the Federal Reserve Bank Rihm rancI bank remitted therefor drafor and Nes' York. All of th forthe rea that before they were preetted fore bank had closed its doors. Tfireupon, the iled its obplaint against the recel9r of the te stabish a preferred claimn against the assets of that bank. It Wis eld t~ltafiasmuch as the funds of the baik were not increased by t 'ir dtions in question and the only"iilt was to substitute ioe creditS f6r another, the plaidtff was not entitled to be prefe 4 over the other lditors of the bank; and, accordingly, the demurrer to the plaintiff's complaint w~i ed and the complaint dismissed. In re South (Ca~~l iQjto., 150 S.C. 25, 147 S.E. 653 (1929). LITIGATION a suit ib .ry-In ttitt=nd4 13.801.kxediscuntoi efigib14'i bank fro engaging in opsm. re enjoin a Fee e__mraiing s'ediscoun ae a*-wo a ~ was held that, gibU PAntth a~~ nd sims. an indisaale e*tw~mhel tt As di bill must be dis~ ediscount eig MM wer iy that the Federal erve bi; loans upona securities, ot rediced of member ba# wich ber banks was without .. he oifngu constituted a te gut .hat the Federal it foundation. In #0s co eigible paper ru* Reseve banksmw not sinee the stgfr is merely., i Uive Wiaomw%#erequire a Federal the Federal Reserve erve bank to discount uzaless so wdered Yok, 34 Fed. (2d) ~ard. Raichie v. Federal RAeerve Ba~nk do 14. NotbW, point. decided in this cawe, see 4M#0; 11.168, 1.100; 14.100; Ap toright*otjpidral Reserve bank to decline to discount eligible accept- LITIGATION I f9"0 "Vlidityof operations designed to reduce '8ters' loans. -In suit to enjoin a Federaeserve bank from enga n open ke4Iwadsactibns, from raising the rediscount rates, and f lin redisco nt eligible paper, it was held that einicthe Federale Board, an indispensable party, had not been oied, the hili h : d. (See 4.304.) As dictum, however, it Vp. hels#iat te erve banks are specifically authorised to ai and sell in t* op that the discretion of the Fedeal Reserve banks in deter Smiing wter to engage in open market operations is not subjectJto judicial review, and th aU .Kldeirt Reserve bapk proceeds i ,g faith through open perations and control of discount rates to brig ablt .'mdutkers' dlns, it commits no legal wrong. ^i^7e" .'Wa Reserve Bank 61 New York, 34 Fed. (2d) 910 (C.C.A. LITIGATION a review of "Weoimun es.-In a suit to enj|h -Judcial from 'erations,, open-ii in engaging from nk 'lk ral e ate, and fromadeclinincount.elable pIO g the redimduntw ri .ty, indispensable an Board, it was held that si~uhe Fed4pretserve dic be dismissed. (See 4.304.)' had not been joinedptMbilUl Mhi ecifi are ibanks Reserve Federal thatthe held .e it tum, however, ject to review and determination aC the cally authori ed by law, dt, time to time rates o1 discount; to orad, e Federal Bnk, under the supervision of the r eda that iis for eaeh' rate of redisc nt; that reasonable a wh determine Board,i and discoel rates be sales en-market it wodj be un bank proceeds Reserve subjc to judici re of discount tol g*lm in good faith thro OZ - rates to bring ahut a r r. wrongI RaichZe Federal 9101C.C.A. 2d W tte.no legal o1rs' I 1 cc weset Bank of N .Yosid Fed. (2d) __ LITIGATION 1929 4,1929 BuLLETiN 0, '' LITIGATION
@FedFRASER