The plaintiff deposited two checks, drawn on the X bank, with the A bank, a member of the B Federal Reserve Bank. The A bank sent the items for collection directly to the defendant Federal Reserve Bank of Minneapolis, which forwarded them directly to the X bank. After marking the checks paid, the X bank remitted to the defendant its draft on the Y bank. The draft was dishonored because of the intervening insolvency of the X bank; and the checks were accordingly charged back by the defendant to the B bank ( of which the A bank was a member), by the B bank to the A bank, and finally by the A bank to the plaintiff. The plaintiff alleged that the defendant was negligent in collecting the items, (1) in sending the checks directly to the X bank, and (2) in accepting a draft in payment. Held, the method of collection employed by the defendant was authorized, in view of Regulation J, 1920, of the Federal Reserve Board, authorizing member banks to send items directly for collection; of the defendant's Circular No. 228, which had been received by the B bank, and expressly stipulated for payment by draft of the drawee bank; and of an established custom in the region to route items directly and to accept drafts in payment. Osage Nat. Bank v. Federal Reserve Bank of Minneapolis (Minn. 1931) 238 N.W. 44.