Federal Reserve Bank v. Crothers

WOODS, Circuit Judge.

In this action on a promissory note for $6,000, given by the defendant to the Second National Bank of Elk-ton, Md., and rediscounted by the Baltimore Branch of the Federal Reserve Bank of Richmond, the District Court directed a verdict for the defendant for failure of consideration, on the authority of Rankin v. City National Bank, 208 U. S. 541, 28 Sup. Ct. 346, 52 L. Ed. 610.

In 1921 Second National Bank of Elkton, Md., was in good credit and high repute; its apparent capital, surplus and undivided profits aggregating $71,000. William T. Warburton, its president, had a…