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----- *- -..~-r-,-,-----r~i-~--~- -cm.~l~. -- -- --- , ----Sc7r-~-- UNf ED STATES GOVERiERN [ECUTIVE OFFICERS (elected Nov. 1920, inaugurated March 4, 1921) President - Warren Gamaliel Harding, Secretary of Treasury - Andrew V. Mellon (appointed March 4, 1921, served until Feb. 12, 1932) Comptroller of Currency - Secretary of State Secretary of War Secdetary of Navy Secretary of Interior Secretary of Agriculture Secretary of Commerce Secretary of Labor Postmaster General Attorney General - D. R. Crissinger (date of appointment March 17, 1921 i resigned April 30, 1923) Charles E. Hughes John W. Weeks Edwin Denby Albert B. Fall Henry C. Wallace Herbert C. Hoover Jas, J. Davis Will H. Hays, Hubert Work Harry M. Daugherty 1922 December U. S. G 0 VERNMENT i: SENATE Banking and Currency Committee 67th Congress Democrats Republicans McLEAN, George P. PAGE, Carroll S. CALDER, William M. VELLER, 0. E. NORBECK, Peter SHORTRIDGE, Samuel M. EDGE, Walter E. PEPPER, George Wharton Connecticut Vermont New York Maryland OWEN, Robert L. HITCHCOCK, Gilbert M. POMERENE, Atlee FLETCHER, Duncan U. Oklahoma Nebraska Ohio Florida South Dakota KENDRICK, John B. Wyoming California New Jersey Pennsylvania GLASS, Carter Virginia pecember U. S. G 0 VERNMENT HOUSE OF REPRESENTATIVES I Banking and Currency Committee 67th Congress Republicans McFADDEN, Louis T. DALE, Porter H. KING, Edward j. SCOTT, Frank D. NELSON, Adolphus P. STRONG, James G. ECHOLS, Leonard S. BROOKS, Edward S. LUCE, Robert MacGRGOR, Clarence DUNBAR, James W. VOLK, Lester D. APPLEBY, T. Frank LAWRENCE, Henry F. FENN, E. Hart Democrats Pennsylvania Vermont Illinois Michigan Wisconsin Kansas West Virginia Pennsylvania Massachusetts New York Indiana New York New Jersey Missouri Connecticut WINGO, Otis STEAGALL, Henry B. BRAND, Charles H. STEVENSON, William F. BLACK, Eugene GOLDSBOROUGH, T. Alan Arkansas Alabama Georgia South Carolina Texas Maryland 1922 I fk)ERAL a~er Ex Offiio Meb A. V. Mellon e retary o-Jtg Treasury C6 airman D. R. Crissinger Comptroller of the Currency Secretary's Office W. V. Hoxton, Secretary V. L. Eddy, Asst. Secretary FiscalAgent W. M. Imlay, Fiscal Agent Division of Examination J. F. Herson, Chief and Chief Federal Reserve Examiner RESERVE BOARD W. P. G farding, Governor (expires August) Edmund Platt, Vice Governor Adolph C. Miller Charles S. Hamlin John R. Mitchell Counsel's Office Walter S. Logan, General Counsel (res. Oct.l Walter Wyatt, (effective October 1) Division of Analysis and Research H. Parker Willis, Director (res. Jul. 1) W. W. Stewart, Dir. (effective Sept. 15) M. Jacobson, Statistician E.A. Goldenweiser, Associate Statistician Division of Reports and Statistics E. L. Smead, Chief FEDRA RESRV SYSTEX FEDERAL RESERVE SYSTEM FEDERAL ADVISORY COUNCIL 1i922 District No. 1 (Boston) Philip Stockton District No. 2 (New York) Paul M. Warburg, Vice President District No. 3 (Philadelphia) L. L. District No. 4 (Cleveland) Corliss E. District No. 5 (Richmond) J. District No. 6 (Atlanta) Edward W. Lane District No. 7 (Chicago) John J. District No. 8 (St. Louis) District No. 9 (Minneapolis) F. 0. Watts (resigned in June) Festus J. Wade (started June 21) G. H. Prince District No. 10 (Kansas City) E. F. District No. 11 (Dallas) R. L. Ball District No. 12 (San Francisco) D. W. Twohy Rue, President Sullivan G. Brown Mitchell Swinney Harry L. Hilyard, Secretary FEDERAL RESERVE SYSTEM * COMMITTEE OF GOVERNORS ON CENTRALIZED EXECUTION OF PURCHASES AND SALES OF GOVERNMENT SECURITIES Composed of five Governors of Federal Reserve Bankst Boston - Charles A. Morss New York - Benjamin Strong Philadelphia - George W. Norris Chicago - J. B. McDougal Cleveland - E. R. Fancher (Oct. 10) * This Committee represented t he start of coordinated open market operations in 1922. Federal Reserve Bank of Boston (Dist. 1) OFFICERS Governor Deputy Governors Chairman and Federal Reserve Agent Deputy Chairman Asst. Federal Reserve Agent - Chas. A. Morss C. CC. Bullen W. W. Paddock Frederic H. Curtiss - Allen Hollis - Russell B. Spear Federal Reserve Bank of Boston (Dist. 1) DIRECTORS Class A CHAMBERLAIN, Frederick S. (New Britain, Conn.) BEAL, Thomas P. (Boston, Mass.) KENNARD, Edward S. (Rumford, Me.) Term Expires 1922 1923 1924 (re-elected) Class B MORSE, E; R. (Proctor, Vt.) ALLEN, Philip R. (East Walpole, Mass.) WASHBURN, Charles G. (Worcester, Mass.) 1922 1923 1924 (re-elected) Class C METCALF, Jesse H,(Providence, R. I. ) CURTISS, Frederic H. (Boston, Mass.) Chairman and FR Agent HOLLIS, Allen Deputy Chairman (Concord, N.H.) 1922 1923 1924 (re-appointed) 1922 Federal Reserve Bank of New York (Dist. 2) OFFICERS - Governor Benjamin Strong L. J. G. E. Deputy Governors Chairman and Federal Reserve Agent Deputy Chairman - - F. H. L. R. Sailer Case Harrison Kenzel Pierre Jay Wm. L. Saunders I 1922 Fei erabl- eserver a- i- YORK0(Dist. 2) DIRECTORS Term Began Dec. 31 Term Ended ALEXANDER, James S. (New York) 1/1/20 1922 TREMAN, Robert H. (Ithaca) 1/1/21 1923 (r s-elected) SMITH, Charles (Oneonta) 1/1/21L 1924 (r e-elected) STONE, Charles A. (New York) 1/1/20 1922 WILLIAMS, Richard H. (Madison) 1/1/21 1923 STEVENS, Frank L. (North Hoosick) 1/1/22 1924 JAY, Pierre (New York) 1/1/20 1922 (Chairman) SAUNDERS, William L. (Plainfield) 1/1/21 1923 (reappointed) 1/1/22 1924 CLASS A CLASS B CLASS C WOOLLEY, Clarence M. (Greenwich) (Deputy Chairman) -- ---JT-- -- Federal Reserve Bank of Philadelphia (Dist. 3) OFFICERS Governor Deputy Governor George W. Norris Win. H. Hutt, Jr. Chairman and Federal Reserve Agent Richard L. Austin Deputy Chairman Henry B. Thompson Asst. Federal Reserve Agent Arthur E. Post Ir 1922 Federal Reserve Bank of Philadelphia (Dist. 3) DIRECTORS Term Expires Class A MURPHY, M. J. (Clarks Green, Pa.) WAYNE, Joseph (Jr.) (Philadelphia, Pa.) DOUGLAS, Francis (Wilkes-Barre, Pa.) Dec. 31 1922 1923 1924 (re-elected) Class B JOHNSON, Alba B. (Philadelphia,Pa.) STUART, Edwin S. (Philadelphia, Pa.) HADDON, Charles K. (Camden, M. J.) 1922 1923 1924 (re-elected) Class C THOMPSON, Henry B. (Wilmington,Del.)Deputy Chairman 1922 AUSTIN, Richard L. (Philadelphia, Pa.) Chairman and FR Agent 1923 HARRISON, Charles C. (Philadelphia Pa.) 192 (re-appointed) F922 . Federal Reserve Bank of Cleveland (Dist. h) OFFICERS Governor - Fancher M. J. Fleming Frank J. Zurlinden Deputy Governors- Chairman and Federal Reserve Agent Deputy Chairman E. R. - Asst. Federal Reserve Agent D. C. Wills L. B. Williams J. C. Nevin 1922 Federal Reserve Bank of Cleveland (Dist. h) DIRECTORS Term Expires Dec. 31 Class A LAMBERTON, Chess (Franklin, Pa.) WARDROP, Robert (Pittsburgh, Pa.) SAMS, 0. N. (Hillsboro, Ohio) 1922 1923 1924 (re-elected) Class B WRIGHT, R. P. (Erie Pa.) COMBS, Thos. A. (Lexington, STAMBAUGH, John (Younstown, 1922 Ky.) Ohio) 1923 1924 (re-elected) Class C WILLIAMS, L. B. (Cleveland, Ohio) Deputy Chairman Chairman and FR Agent WILLS, D.C. (Cleveland, Ohio) KNIGHT, W. W. (Toledo, Ohio) 1922 1923 (re-appointed) 1924 (appointed) Federal Reserve Bank of Richmond (Dist. 5) OFFICERS Governor - George J. Deputy Governors Seay C. A. Peple R. H. Broaddus Asst. to Governor - A. S. Johnstone John S. Walden Chairman and Federal Reserve Agent - Caldwell Hardy Deputy Chairman - James A. Moncure Asst. Federal Reserve Agent - J. G. Fry 1922 Federal Reserve Bank of Richmond (Dist. 5) DIRECTORS Term Expires Class A BRUTON, John F. (Wilson, N.C.) JOHNSON, L. E. (Alderson, W. Va.) RIEMAN, Charles (Baltimore, Md.) Dec. 31 1922 1923 1924 (re-elected) Class B GRAHAM, Edwin C. (Washington, D. C. ) COKER, D. R. (Hartsville, S.C.) STRULWICK, Edmund (Richmond, Va.) 1922 (elected) 1923 1924 (re-elected) Class C MONCURE, James A. (Richmond, Va.) Deputy Chairman HARDY, Caldwell (Richmond, Va.) Chairman and FR Agent DELANO, Erederic (Washington, D.C.) 1922 1923 1924 (appointed) Federal Reserve Bank of Atlanta (Dist. 6) OFFICERS Governor, Deputy Governors, W. B. Wellborn L. C. Adelson J. L. Campbell Chairman and Federal Reserve Agent Joseph A. McCord Deputy Chairman W. H. Kettig 1922 Federal Reserve Bank of Atlanta (Dist. 6) DIRECTORS Class A NEWTON, Oscar (Jackson, Miss.) KITTLES, P. R. (Sylvania, Ga.) OTTLEY, John K. (Atlanta, Ga.) Term Expires Dec. 31 1922 1923 1924 (re-elected) Class B HARTFORD, W. H. (Nashville, Tenn.) SIMON, Leon C. (New Orleans La.) McCRARY, J. A. (Decatur Ga.) 1922 1923 1924 (re-elected) Class C KETTIG, W. H. (Brimingham, Ala.) Deputy Chairman McCORD, Joseph A. (Atlanta, Ga.) Chairman and FR Agent HOPKINS, Lindsey (Atlanta, Ga.) 1922 1923 1924 (appointed) 1922 Federal Reserve Bank of Chicago (Dist. 7) OFFICERS Governor J. Deputy Governors Chairman Mc Dougal C. R. McKay S. B. Cramer John H. Blair Chairman and Federal Reserve Agent Deputy B. William A. - Heath James Simpson 1922 Federal Reserve Bank of Chicago (Dist. 7) DIRECTORS Class A McNIDER, Chas. H. (Mason City Iowa) JOHNSON, E. L.(Waterloo, Iowa) REYNOLDS, George M. (Chicago, Ill.) Term Expires Dec. 31 1922 1923 1924 (re-elected) Class B BLODGETT, J.W. (Grand Rapids, Mich.) ERSKINE, A. R. (South Bend, Ind.) VOGEL, A. H. (Milwaukee, Wis.) 1922 1923 192 4 (re-elected) Class C BALL, F. C. (Muncie, Ind.) SIMPSON, James (Chicago, Ill.) Deputy Chairman HEATH, Wm.A. (Chicago, Ill.) Chairman and FR Agent 1922 1923 1924 (re-appointed) Federal Reserve Bank of St. Louis (Dist. 8) OFFICERS Governor - Deputy Governor Chairman and Federal Reserve Agent Deputy Chairman D. C. Biggs - 0. M. Attebery - William McC. Martin - John W. Boehne Federal Reserve Bank of St. Louis (Dist. 8) DIRECTORS Class A ZIEGLER, Sam A. (Albion, Ill.) LONSDALE, John G. St. Louis, Mo.) UTTERBACK, J. C. (Paducah, Ky.) Term Expires Dec, 31 1922 1923 1924 (re-elected) Class B PLUNKETT, W. B. (Little Rock, Ark.) PERCY, Le Roy (Greenville, Miss.) WELLS, Rolla (St. Louis, Mo.) 1922 1923 19 2 4 (re-elected) Class C MOONEY, C. P. J. (Memphis, Term.) BOEHNE, John W. (Evansville, Ind.) Deputy Chairman McC. MARTIN, Wm. (St. Louis, Mo.) Chairman and FR Agent 1922 1923 192h (re-appointed) Federal Reserve Bank of Minneapolis (Dist. 9) OFFICERS Governor - Deputy Governors Aset. R. A. Young Geery S. S. Cook Frank C. Dunlop W. B. Chairman and Fedez Reserve Agent - John H. Rich Deputy Chairman - Homer P. Clark Federal Reserve Agent - Curtis L. Mosher _t _s __ ____IL 1_~~ Federal Reserve Bank of Minneapolis I__~ ___ ~~ __~_i_ __ (Dist. 9) DIRECTORS Term Expires Class A WOLD, Theodore, (Minneapolis, Minn.) BASSETT,J. C, (Aberdeen S. Dak.) McDOWELL, Wesley C. (Marion, N. Dak.) Dec. 31 1922 1923 1924 (re-elected) Class B BIGELOW, F. R. (St. Paul, Minn.) HOLTER, N. B. (Helena, Mont.) HIXON, F. P. (La Corsse, Wis.) 1922 1923 1924 (re-elected) Class C BENEDICT, C. Harry (Lake Linden, Mich.) RICH, John H. (Minneapolis, Minn.) Chairman and FR Agent CLARK, Homer P. (St.-Paul, Minn.) Deputy Chairman 1922 1923 192L (appointed) ___ 1922 Federal Reserve Bank of Kansas City (Dist. 10) OFFICERS Governor J. Z. Miller, Jr. (resigned) W. J. Bailey (effective July 1) Deputy Governor - C. A. Worthington Chairman and Federal Reserve Agent - Asa Deputy Chairman - E. Ramsey Heber Hord 1922 Federal Reserve Bank of Kansas City (Dist. 10) DIRECTORS Class A BAILEY, w,. J. (Atchison, Kans.) MULLANEY, E. E. (Hill City, Kans.) MITCHELL, J. C. (Denver, Colo.) Term Expires Dec. 31 1922 1923 1924 (re-elected) Class B McCLURE, M. L. (Kansas City, Mo.) GIBSON, H. 6. (Muskogee, Okla.) BYRNE, Thomas C. (Omaha, Nebr.) 1922 1923 1924 (re-elected) Class C FLEMING, Fred W. (Kansas City, Mo.) RAMSAY, Asa E. (Kansas City, Mo.) Chairman and FR Agent HORD, Heber (Central City, Nebr.) Deputy Chairman 1922 1923 1924 (appointed) 1922 Federal Reserve Bank of Dallas (Dist. 11) OFFICERS Governor Deputy Governor Chairman and Federa Reserve Agent Deputy Chairman - - B. A. R. Mc Kinney G. Emerson W. F. Ramsey W. B. Newsome -W. (died October 27) (succeeded Ramsey for rest of year) B. Newsome (until October 27) 1922 Federal Reserve Bank of Dallas (Dist. 11) DIRECTORS Class A McKINNEY, B. A. (Dallas, Tex.) SMITH, Howell E. (Mc Kinney, Tex.) SCOTT, John T. (Houston, Tex.) Term Expires Dec. 31 1922 1923 1924 (re-elected) Class B SANSOM, Marion (Fort Worth, Tex.) CULBERTSON, J. J. (Paris, Tex.) KELL, Frank (Wichita Falls, Tex.) 1922 1923 1924 (re-elected) Class C WOOTEN, H. 0. (Abilene, Tex.) RAMSEY, v. F. (Dallas Tex.) Chairman and FR Agent NEWSOME, W. B. (Dallas Tex.) Deputy Chairman 1922 1923 (died October 27) 1924 (re-appointed) 1922 Federal Reserve Bank of San Francisco OFFICERS Governor J. U. Calkins William A. Day Deputy Governor Assistants to Governor Ira Clerk L. C. Pontious Chairman and Federal Reserve Agent - John Perrin Deputy Chairman - Walton N. Moore (Dist. 12) Federal Reserve Bank of San Francisco (Dist. 12) DIRECTORS Class A McINTOSH, C. K. (San Francisco, Calif.) BAER, John Willis (Pasadena, Calif.) BUCHAN, M. A. (Palo Alto, Calif.) Term Expires Dec. 31 1922 1923 192L (re-elected) Class B COX, Elmer H. (San Francisco, Calif.) LOHRMANN, A. B. C. (San Francisco, Cal.) SESNON, William T. (San Francisco, Cal.) 1922 1923 192L (elected) Class C SPROULE, William (San Francisco, Calif.) PERRIN, John (San Francisco, Calif.) Chairman and FR Agent MOORE, VWalton N. (San Francisco, Calif.) Deputy Chairman 1922 1923 192h (re-appointed) 1922 March 15, 1922 16 U.S. Congress. House. Committee on Banking and Currency Amendment to Federal Reserve Act; Hearing be fore the Committee on Banking and Currency of the House of Representatives on S. 2263, an act to amend the Federal Reserve Act, approved December Wash.Govt.print. 23, 1913; March 15 and 16, 1922. off.1922. To increase membership of F. R. Board to 8 and also limit cost of Federal Reserve Bank build ings. Testimony: Andrew Wv. Mellon, p.2 - 1h, i.P.G. Harding, p.27 - 37. U.S.Sen.Lib'y, Not documented. V.316,No.2. HEARINGS HEARINGS 1922 Apr.8-15 U.S.Congress. Senate. Committee on banking and HG currency 2051 Sale of farm loan bonds. Hearings before a sub- .U5A2 (1922) committee of...67th Cong., 2d sess. on S.620 and S.2183, bills to extend rediscount privilege to farm loan bonds, promote their sale, and for other purposes, and to amend section 3 of the Federal farm loan act, April 8 and 15, 1922. Wash., Govt.ptg.off., 1922. Testimony: F.R.Bd.L. Harding, W.P.G. (Gov) Apr. 8 p.2-13 a HEARINGS 1922 June 28 HG U.S. Congress. Fouse. Committee on banking and 2559 currency. .U4 Distribution of profits of Federal reserve (1922) banks. Hearings ... on Bill H. R. 12208 to amend Federal reserve act, Wednesday, June 28, the ... Statement of Hon. W. P. G. Harding... 1922. Wash.,Govt.ptg.off.,1922. 12 p. pp.1-12 July 28 H ding, W,P.G. (Gov.) Testimony: F.R.Bd.L. a HrARINGS 1922 Nov. 2h U.S.Congress. House. Bankine and Currency comm. Rural credits: HMARINGS ... >7th, 3d sees, on S.0O63 (H.R.13033) to -rovide credit facilities for agricultural and live-stock industries of HG 2051 .U5A2 1922 the TT.S.: to amend the Federal Reserve Act; to amend the Federal Farm Loan Act; to extend and stabilize the market for TT.S. bonds and other securities; to provide fiscal agents for the U.S., and for other purposes. Nov.24,1922. Wash., Govt.ptg. off.,1922. g1 p. Meyer, Euwene(WarFin. Corp.) Nov.2 4,Pp. 15-1 mony: . . . ' ". .. .. F.R.3Bd.L. a 1922 Dec. 12-20, 30 HEARINGS HG T.S.Oongress. Senate. Banking and Ourrency comm. 2051 on sass. 4th Rural credits: HEARINGS ...67th, .U5A2 Senate bills (S.4063 and S.4103) to provide 1922 credit facilities for the agricultural and livestock industries in the TT.S.; to amend the Federal Farm Loan Act; to amend the Federal Reserve Act, and for other purposes. Dec. 12-20, 30, 1922. Wash., Govt.ptg.off.,1922-23. 402 p. (2 pts) Mellon,A.W. (Sec.Treas.) Dec.22 pp.390-402 Testimony: Meyer,Eugene Jr. (WarFid.Corp.) Dec.12,14,20; pp. .4.1,45- 6 7, 20 3 -208,226-228,252-255 21g Platt,E. (Bd.mnbr.) Dec.22 pp.350-373 F.R.Bd.L. 1922 June 3 Personnel of Federal Reserve Board. LEGISLATION Section 10 of Federal Reserve Act was amended by increasing the number of appointive members of the Federal Reserve Board from five to six and providing that, in their selection, the President "shall have due regard to a fair repre sentation of the financial, agricultural, industrial and commercial interests, end geographical divisions of the country", instead of considering merely "a fair representation of the different commercial, industrial and geographical The amendment divisions of the country", as this section formerly provided. also eliminated the requirement that at least two of the appointive members (42 Stat. 620, Ch. 205.) had to be persons experienced in banking or finance. Federal Reserve bank buildings. Section 10 of Federal Reserve Act was further amended so as to orovide that no Federal Reserve bank could in the future erect any building to cost in excess of $250,000 without the express consent of Congress. (42 Stat. 622, Ch. 205.) Source: Supplement to statement on Evolution of Banking Legislation by VWlter Wyatt, October 26, 1939. Exhibit G 1923 LEGISLATION Febrary 6 (PuBLIO-No. 4 05-,674,;f, PWJMli .) [S. 4390.] An Act To amend the last paragraph of section 10 of the Federal Reserve Act as amended by the Act of June 3, 1922. to . tw.ti h,3irnj l) J*?. Be it enacted by e Senate ni RAouse of Representatives of tha Sited Stat o 'i% Congress assembled, That the last ragr ^o tio df the Federal Reserve Act as amended by the Act of June 3, 1922, is amended to read as follows: SNo Federal reserve bank shall have authority hereafter to enter to any contract or contracts for the erection of any branch bank ding of any kind or character, or to authorize the erection of suchai dig, if the cost of the building mper, "xclusive of post forne vaults, permanent equipment, furnishings, and fix is in excess of $250,000: Provided, That,nothing herein shall M to py building under construction prior to June 3, 1922." Approved, February 6&1923., jL, . LEGISIATION 'tBLTO-NO. 279-67TH CONGRESS.) [S. 831.) An Act To amend the proviso in paragraph 10 of section 9 of the Federal Reserve Act amended by the Act of June 21, 1917, amending the Federal Reserve Act Be it enacted by the Senate and House of Repr4s itwes of the United States of America in Congress assbe Tha ti proso ;, para graph 10 of section 9 of the Federal erve Act iiendei by pe4tion 3 of the Act of June 21 1917, amA the Fed al Reerve Act be , nr'-r *. amended to read as follows: "Provided, however, That no Federal r btnli' shall be per mitted t:discount for any State bank bt! l tpahy notes, drafts or bills of exchange of any de borrower Nho is liable for borrowed tnoney to such State bank oiJtrust company in an amount greater than that which could be borrowed lawfully from such State bank or trust company were it a national banking association." Approved, July 1, 1922. FEDERAL RESERVE SYSTEM 1922 June 1922 to July 1923 POLICY ACTION Apparent Intent - Restrictive Sold $525 million of Government securities. Open Market Operations - Discount Rate - Raised from 4 to 41/2 percent at Boston, New York, and San Francisco Banks, making rate 41/2 percent at all Banks (February and March 1923). - Production in basic industries at highest level on record; labor fully employed; prices rising; renewed expansion in credit; heavy gold inflow. Buying rate on bankers' acceptances raised (September 1922-July 1923). Moral Suasion Surrounding Circumstances Source: Joint Committee on the Economic Reoort Monetary Policy and the Management of the Public Debt (Patman Report) 1952, Page 216. LITIGATION 11.613. Rhode fan-4Undethe lawof Rhode cam panies, but not other ban kiethRhe executors. A xational b ftW State as security for the per lapcity. The Treaasurer fused tor a d: t ugj* anmdamus to compel h 11 e. uit, o f Rhode Island held t, '" bank in Rhode Island wa A tate and that Congress could not give l o i anks in ate the right to demand that the Treasurer fo or their be l tthe same duties which, under State law, he p rms for trust eotiprnies. In the court's opinion, the amendment made to section:11 (laf the Federal Reserve Act in 1918, providing thataW. exercise of such.ti owers by national banks should not be deemed, ielboptravention of State law where the lavs of the State authorize the~ecercise of trustrporem by State banks, tr companies, or other tpbr s competing with national banks, S not operate to onlul6 e court fi the construction of a statute. Aquidneck Nat ani-M. Jenm 4 gs, 44 R. I. 435, U7 1.7431 4922). r 34 ( .1U t No'rT.-But see 11.614 in *ilieh the Sufle3me ~ f Rhode Isla'felt com pelled to modify the above dediion.; .mff iti ,. A, LITIGATION 1922 onmember State bank soght to restrain the Fed*tU P.42..i Rirve Bank of Cleveland from presenting checks over its counut i upose was to cC e trSh that t 4fsh payment on the griS6 M'Court for Thf edi bank i~t clearing its clecks'* whil 'a Federal Reserve' Re the EAftern Distfe for payment, e 6ot tbo presenlt 'fith% Wk'it bank has the legal'i ayient in' an and ' it cannot accumulate such checks and make'. unusual manner fdoW of coercing the State 'ank into ntgng to clear its checlks a par. 'ieg its' methd' of di ce wd-Wfr Wbshow unlawful coereibn It Was found that the Federa1 ResiWtWnk and accordingly Ie upon juction' restraiiing the Federal Re the 4 collections 'against the plaintiff bank servei i s'Bank v. FederalReserve BcHa ' miia in such of ClevMfd 6WFed. 610 (D. ,922). 192ยง tWiLLETIN 1409. 1922 1922 LITIGATION a ank in returning as RM 0.4~~ be bank at~mr. -4.8 t a toe fnot paid by Mii "dishozr -to.,nstgmUn* Federal Res~et Bank of E~u noulnel it forq ldiop checks drawappow such bm* Francisco from aheclb* *sd at pax, WPpo1n 4eir return with th*$re correspondo~~withdW advice qthe *Unpaid06o Qndor the eeral W~br that they hd. 430). inj unc U District of:*egon alid A*p the District Later, upon applicationi to m -i .exchange Court held that a oa~par and that, if a Fed tion checks drawn u~p onor itu. a of the drawee h deral ~ o y, of tOpse check a tat the chqi .4pthorized to a ~~as, o4 th 1 ed~ eserv m~zit at-paxr. ~ Stats aank Fe&.,222 (D.C. Ore., 1922)..fMi AVShge
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