Leach v. Farmers & Merchants Savings Bank

The principal questions raised are whether the Farmers & Merchants Savings Bank was acting as agent for collection, or was merely acting in ita own behalf, in the capacity of drawee and payer, and whether remittance by draft was in accordance with the authority and instructions given to it by claimant.

The Farmers & Merchants Bank was not a member of the Federal Reserve Bank. On January 1, 1922, the Farmers & Merchants Bank expressed to the Federal- Reserve Bank the “wish that you might send our items directly to us for collection.” The Federal Reserve Bank replied:

* * we are writing the First…