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In Erie R.R. v. Tompkins,' the Supreme Court removed the power of the federal courts to declare independent federal common law in deciding issues which would be governed by state law in state courts. Later cases have held, however, that where the matter before the court is closely related to a federal function, state law does not govern of its own force and the federal courts have the responsibility to fashion a federal rule to decide the issue.' In Clearfield Trust Co. v. United States,' the Court indicated that, unless Congress has specified otherwise, a federal court in this situation has the option either to "adopt" state law as the content of the federal rule or to develop uniform federal law to resolve the question.' Since Clearfield, a body of case law has developed affirming and elaborating the availability of the choice to adopt state law. But a coherent standard for determining when to exercise this option has not emerged. A recent line of cases arising in the context of the Farmers Home Administration (FmHA) loan programs indicates the unsatisfactory state of the law on adoption. In suits by the Government against an auctioneer for the conversion of chattels on which the Government had a mortgage, the courts have had to determine whether the auctioneer's lack of knowledge of the mortgage is a defense against liability. Some circuits have adopted state law to resolve the issue,7 while others have used a uniform federal

Adopting State Law as the Federal Rule of Decision: A Proposed Test