Federal Reserve Bank v. Ocean City

BUFFINGTON, Circuit Judge.

In this case it appears that in October, 1931, the First National Bank of Ocean City closed its doors. The municipality of Ocean City had at that time on deposit some $255,000, which sum was, of course, tied up by the failure of the bank. The city was without means of paying its police, firemen, and providing for its other activities, so with the coming of the new tax year of 1932 it made efforts to sell anticipation tax notes. The legality of a municipality in New Jersey to issue such notes is provided by statute, and, where issued for that purpose, the notes are by…