American Bank v. Federal Reserve Bank
Annotate this Case
262 U.S. 643 (1923)
U.S. Supreme Court
American Bank v. Federal Reserve Bank, 262 U.S. 643 (1923)
American Bank & Trust Company v.
Federal Reserve Bank of Atlanta
Argued April 30, May 1, 1923
Decided June 11, 1923
262 U.S. 643
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. 262 U. S. 646.
2. Loss of income resulting to country banks from the exercise of this right without malice or coercion is damnum absque injuria. P. 262 U. S. 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. 256 U.S. 350.
Disclaimer: Official Supreme Court case law is only found in the print version of the United States Reports. Justia case law is provided for general informational purposes only, and may not reflect current legal developments, verdicts or settlements. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or information linked to from this site. Please check official sources.