Document: 347 U.S. 373 74 S.Ct. 550 98 L.Ed. 767 FRANKLIN NAT. BANK OF SQUAREv.PEOPLE STATE NEW YORK. No. 427. Argued March 9, 10, 1954. Decided April 5, Mr. Samuel O. Clark, Jr., Washington, D.C., for appellant. Daniel M. Cohen, New York City, appellee. Simon E. Sobeloff, Solicitor General, the United States amicus curiae, by special leave of Court. Opinion Court Justice JACKSON, announced FRANKFURTER. 1 This appeal from Appeals presents narrow question whether federal statutes which authorize national banks to receive savings deposits conflict with legislation prohibits them using word 'saving' or 'savings' in their advertising business. We think and state are incompatible, such circumstances policy State must yield. 2 It is charter foster mutual bank, a nonprofit institution whose earnings inure benefit depositors rather than stockholders. These institutions have long history as relatively stable safe depositaries accumulations thrifty Yorkers source credit limited uses. They grown be an important part York's banking economic structure. That also charters loan association, different type, intended serve somewhat similar ends. The Legislature was concerned lest commercial banks, seeking induce same character, so use lead uninformed indiscriminating persons believe that they were dealing chartered institutions. Hence, its Banking Law, has forbidden 'savings,' variants, any other own associations.1 3 However, Federal Government rival chartering authority banks. Since McCulloch v. Maryland, 4 Wheat. 316, 579, it not been open may constitutionally create govern within states. set up system instrumentalities perform various functions providing circulating medium government credit, well financing commerce acting private depositaries. Some functions, especially depend upon success attracting deposits. these at no disadvantage competition state-created institutions, frequently expanded authority. Of nature measures now before us. Reserve Act provides bank 'may continue hereafter heretofore time pay interest on same, but rate association shall exceed maximum authorized law paid trust companies organized under laws located.'2 authorizes Board Governors System make necessary rules regulations,3 done defining terms 'time deposits' 'savings deposits.'4 National Bank without qualification limitation, possess 'all incidental powers carry business banking; discounting negotiating promissory notes, drafts, bills exchange, evidences debt; receiving deposits; buying selling coin, bullion; loaning money personal security; obtaining, issuing, notes according provisions this chapter.'5 5 Appellant, believing do so, used savings' advertising, signs displayed deposit withdrawal slips, annual reports. beyond appellant violated State's prohibition if valid one. 6 Attorney General initiated case complaint alleging violations, broad injunction. trial accumulated large record devoted mainly merits demerits consequences depositors. court found purposeful deception public. held pursuit implied conferred Acts Congress statute Appellate Division disagreed directed permanent injunction prohibiting term. affirmed, we noted probable jurisdiction appeal.6 7 unable support contention authorization qualified because expression 'continue heretofore' so. appears previous enactment, acceptance accounts had usual expressly authorized. should construed freeze individual those located customs practices preceding statute. read declaratory right enter into remain type administrative construction, correct. 8 Nor can construe two permitting only passive thrust them. Modern finds one most useful weapons. cannot granted narrowly preclude branch would require some affirmative indication justify interpretation permit engage gave let public know about it. 9 Appellee does object taking even fact 'savings.' takes position misnomer there, result statute, come something entirely referring. Regardless really misled description, given particular label account. Whatever peculiar meaning York, aptly describes, sense, carried accept people's savings, deemed advertise commonly understood description specifically selected. find phase subject local restrictions, express language several instances.7 10 There clear between Government. resolve conflicts our judgment wisdom need either conflicting policy. compact states creating resolves matter supremacy.8 However wise needful policy, judgment, give way contrary 11 reversed remanded further proceedings inconsistent opinion. 12 Reversed remanded. 13 REED, dissenting. 14 I dissent. note Court's opinion, limits words relation certain types financial character distinguished stockholder-owned. Such larger returns stock-type national, both barred 'in business.' successful proportion over century. remarkable soundness finance profitable operation purpose reserve identify public, just name 'national' law. 15 opinion permits trade good secure type. Now 'A Savings Bank' corporate name; slips say 'Savings Account.' As advertisements, conform protection misunderstanding. imply privilege cases cited sustain view. precedents approve limitation power announces. McKinney's N.Y. Laws, Consol.Laws, c. 2, § 258, subd. 1, reads: 'No company, individual, partnership, unincorporated corporation equivalent business, advertisement containing 'savings', nor solicit bank; nothing herein prohibit Loan company all stock owned less twenty Any violating provision forfeit people every offense sum hundred dollars day continued.' 38 Stat. 273, 44 1232, amended, U.S.C. (1952 ed.) 371, U.S.C.A. 371. 262, 248(i), 248(i). See 49 714, 461, 461. CFR §§ 204.1, 217.1. R.S. 5136, 24 (seventh), (seventh). 200 Misc. 557, 105 N.Y.S.2d 81, reversed, 281 App.Div. 757, 118 210, 305 453, 113 N.E.2d 796, noted, 346 908, 240. included charge solicited bank. there evidence practice. Therefore, sole relates appellant's prohibited E.g., 5155, 36(c), 36(c) (establishment banks); (eighth), (eighth) (contributions charitable instrumentalities); 5153, 90, 90 (security funds); 5197, 85, section involved case, 371 (interest rates). Even absence language, normal course Cf. Anderson Luckett, 321 233, 64 599, 88 692; McClellan Chipman, 164 347, 17 41 Easton Iowa, 188 220, 229—230, 23 288, 290, 47 452; Davis Elmira Bank, 161 275, 283, 16 502, 503, 40 700.

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