an early example of takings

[Michael Perelman <michael@xxxxxxxxxxxxxxxxx>]

On the eve of the Great Depression, a disappointed investor sued the
Federal Reserve on the grounds that its "propaganda" had deprived him of property
without due process.  The suit was braught by Frank G Raichle in his capacity as a
private citizen.  He complained that the Federal Reserve Bank of New York had spread
propaganda concerning a shortage of money, set about to restrirt the supply of credit
for investment purposes, and had caused stock and bond prices that he owned to fall
in value, thus depriving him of property without due process of law. See Raichle v.
Federal Reserve Bank of New York in Federal Reserve Board, August 1929, pp. 572-77,
Federal Reserve Papers.


--
Michael Perelman
Economics Department
California State University
Chico, CA 95929

Tel. 530-898-5321
E-Mail michael at ecst.csuchico.edu