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--- ------- -- ------- ----- UNITED STA-eeBW D - EXECUTIVE OFFICERS President - Herbert Clark Hoover (elected Nov. 1928,j .iaugurate March 4, 1929) . Secretary of Treasury - Andrew W. Mellon (appointed March 4, 1921, until Feb. 12, 1932) Comptroller of Currency - J. W. McIntosh (date of appointment Dec. resigned Nov. 20, 1928) 20, 1924, - J. V. Pole (date of appointment Nov. 21, resigned Sept. 20, 1932) 1928, Secretary of State Secretary of War Secretary of Navy Secretary of Interior Secretary of Agriculture Secretary of Commerce Secretary of Labor Postmaster General Attorney General - Frank B. Kellogg - Dwight F. Davis Curtis D. Wilbur Hubert Work , Roy 0. West William M. Jardine William F. Whiting James J. Davis - Harry S. New - John D. Sargent served U. S. GO V ERNMENTT December SENATE Banking and Currency Committee 70th Congress Republicans NORBECK, Peter EDGE, Walter E, PHIPPS, Lawrence C. SACKETT, Frederic M. FRAZIER, Lynn J. PINE, W. B. BROOKHART, Smith W. STEIWER, Frederick Democrats South Dakota New Jersey Colorado Kentucky North Dakota Oklahoma Iowa Oregon FLETCHER, Duncan U. GLASS, Carter EDWARDS, Edward I. MAYFIELD, Earle B. WAGNER, Robert F. BARKLEY, Alben W. TYDINGS, Millard E. Florida Virginia New Jersey Texas New York Kentucky Maryland _____ __C_~ 1928 December U. S. HOUSE Banking GOV ERNMENT OF and REPRESENTATIVES Currency Committee 70th Congress Republicans McFADDEN, Louis T. KING, Edward J. STRONG, James G. LUCE, Robert MacGREGOR, Clarence FENN, E. Hart CAMPBELL, Guy E. LEATHEWOOD, Elmer 0. BEEDY, Carroll L. HOOPER, Joseph L. GOODWIN, Godfrey G. LETTS, F. D. Democrats Pennsylvania Illinois Kansas Massachusetts New York Connecticut Pennsylvania Utah Maine Michigan Minnesota Iowa TINGO, Otis STEAGALL, Henry B. BRAND, Charles H. STEVENSON, William F. BLACK, Eugene GOLDSBOROUGH, T. Alan PRALL, Anning S. CANFIELD, Harry C. Arkansas Alabama Georgia South Carolina Texas Maryland New York Indiana gStT- iRESERVE Ex Offic- '-eteN A. W. Mellon,. Secretary of the Treasury, Chairman J. V. McIntosh Comptroller of the Currency BOARD Roy A. Young, Governor Edmnd Platt, Vice Governor Adolph C. Miller Charles S. Hamlin George R. James Edward H. Cunningham Secretary's Office Walter L. Eddy, Secretary J. C. Noell, Asst.Secretary E. M. Mc Clelland, Asst. Secretary. Fiscal Agent V. M. Imlay, Fiscal Agent DIvision of mExmination J. F. Herson, Chief and Chief Federal Reserve Examiner Counsel's Office Walter Wyatt, General Counsel Division of Research and Statistics E.A. Goldenveiser, Director Carl E. Parry, Asst. Director Division of Bank Operations E. L. Smead, Chief RESERVE FEDERAL FEDERAL ADVISORY 192E District No. 1 (Boston) SYSTEM COUNCIL Arthur M. Heard District No. 2 (New York) James S. Alexander District No. 3 (Philadelp,hia) L. District No. 5 (ClevelandI) Harris Creech District No. 5 (Richmond) John F. Bruton, Vice President District No. 6 (Atlanta) P. D. L. Rue Houston District No. 7 (Chicago) Frank 0. Wetmore, District No. 8 (St. Louis ) W. W. Smith District No. 9 (Minneapol.is) Theodore Wold District No. 10 (Kansas City) P. W. Goebel District No. 11 (Dallas) B. District No. 12 (San Frar cisco) F. L. Lipman President A. McKinney Walter Lichtenstein, Secretary 1928 FEDERAL RESERVE SYSTEM OPEN MARKET INVESTMENT COMMITTEE Composed of five Governors of Federal Reserve Banks: Boston W. P. 0. Hading New Yorl - Benjamin Strong (d. Oct. 16) George L. Harrison, Nov.23 Philade]Lphia - George W. Norris Clevela d Chicago E. R. Fancher - J. B. McDougal 1928 Federal Reserve Bank of Boston (Dist. 1) OFFICERS Governor W. P. G. Harding Deputy Governor Chairman and Federal Reserve Agent Deputy Chairman - - W. W. Paddock - Frederic H. Curtiss Allan Hollis Federal Reserve Bank of Boston (Dist. f) DIRECTORS Term Expires Dec. 31 Class A CHAMBERLAIN, Frederick S. (New Britain, RIPLEY, Alfred L. (Boston, Mass.) KENNAD, Conn.) Edward S. (BImford, Me.) 1928 1929 1930 (re-elected) Class B BOiMAN,Albert C. (Springfield, Vt.) ALLEN, Philip R. (East Walpole, Mass.) WASHBURN, Chas. G. (Worcester, Mass.) 1928 1929 1930 (re-elected) Class C MANCHESTER, Chas. H. (Providence, R.I.) CURTISS, Frederic H. (Boston Mass.) Chairman and FR Agent HOLLIS, Allen (Concord, N.H.) Deputy Chairman L 1928 1929 1930 (re-appointed) 1928 Federal Reserve Bank of New York (Dist. 2) OFFICERS Benjamin Strong (died October 16) George L. Harrison (effective Nov. 23) Governor Acting Governor Gates Mc Garrah (after October 16 to Nov. 23) J. H. Case L. F. Sailer G. L. Harrison Deputy Governors Chairman and Federal Reserve Agent Deputy Chairman - Gates Mc Garrah Owen D. Young E. R. Kenzel A. W. Gilbart L. R. Rounds Feder aleaaserve Bank of NEW YOM 1928 (tist. 2) DIRECTORS 9 Term Began Dec. 31 Term Ended REYNOLDS, JacksonE. (New York) 1/1/26 1928 TREMAN, Robert H. (Ithaea) 1/1/27 1929 RUNKLE, Delmer (Hoosick Falls) 1/1/28 1930 (r eelected) 1/1/27 1929 4/1/27 1928 Samuel W. (New York) 1/1A/28 1930 (reelected) McGARRAH, Gates W. (New York) 5/2/27 1928 (Chairman) YOUNG, Owen D. (New York) 1/13/27 1929 (Deputy Chairman) 1/1/28 1930 (reappointed) CLASS A CLASS B WHITMARSH, Theodore F. (New York) WOODIN, William H. (New York) REYBURN, CLASS C WOOLLEY, Clarence M. (Greenwich) 1928 Federal Reserve Bank of Philadelphia (Dist. 3) OFFICERS - Governor William H. Deputy Governor Chairman and Federal Reserve Agent Deputy Chairman George W. Norris - - Hutt Richard L. Austin Alba B. Johnson 1928 Federal serve Bank o Philadelphi Federal Reserve Bank of Philadelphia (Dist 3) (Dist. 3) DIRECTORS Term Expires Class A COSGROVE, John C. (Johnstown, Pa.) WAYNE, Jos.(Jr.) (Philadelphia, Pa.) REILY, Geo. W. (Harrisburg, Pa.) Dec. 31 1928 1929 1930 (elected) Class B STOUT, C. F. C. (Philadelphia, Pa.) SEAWALL, Arthur W. (Philadelphia, Pa.) DORRANCE, A. C. (Camden, N. J. ) 1928 1929 1920 (elected) Class C CANNON, H. L. (Bridgeville, Del.) AUSTIN, R. L. (Philadelphia, Pa.) Chairman and FR Agent JOHNSON, Alba B. (Philadelphia, Pa.) Deputy Chairman 1928 1929 1930 (appointed) 192 8 L Federal Reserve Bank of Cleveland (Dist. h) OFFICERS E. Governor R. Fancher M. J. Fleming Frank J. Zurlinden Deputy Governors Chairman and Federal Reserve Agent - George De Camp Deputy Chairman - L. B. Williams Federal Reserve Bank of Cleveland (Dist. 4) DIRECTORS Term Expires Class A LAMBERTON,Chess (Franklin, Pa.) 1928 WARDROP, Robert (Pittsburgh, Pa.) 1929 SAMS, 1930 (re-elected) 0. N. (Hillsboro, Ohio) Class B WRIGHT, R. P. (Erie, Pa.) CRABBS, Geo. D. (Cincinnati Ohio) BUSH, S. P. (Columbus, Ohio 5 1928 1929 1930 (elected) Class C WILLIAMS, L. B. (Cleveland, Ohio) Deputy Chairman De CAMP, George (Cleveland, Ohio) Chairman and FR Agent KNIGHT, W. W. (Toledo, Ohio) 1928 1929 1930 (re-appointed) 1928 Federal Reserve Bank of Richmond (Dist. 5) OFFICERS Governor - George J. Seay C. A. Peple R. H. Broaddus Deputy Governors Chairman and Federal Reserve Agent Deputy Chairman William W. Hoxton - Frederic A. Delano Federal Reserve Bank of Richmond (Dist. 5) DIRECTORS Class A BRASWELL, Jas.C.(Rocky Mount, N.C.) JOHNSON, L. E. (Alderson, W. Va.) RIEMAN, Chas. E. (Baltimore, Md.) Term Expires Dec. 31 1928 1929 1930 (re-elected) Class B GRAHAM, Edwin C. (Washington, D.C.) COKER, D. R. (Hartsville, S.C.) STRUDWICK, Edmund (Richmond, Va.) 1928 1929 1930 (re-elected) Class C LASSITER, Robert (Charlotte, N.C.) HOXTON, Wm. W. (Richmond, Va.) Chairman and FR Agent DELANO, Frederic A. (Washington, D. C. ) Deputy Chairman 1928 1929 1930 (re-appointed) 1928 Federal Reserve Bank of Atlanta (Dist. 6) OFFICERS Governor - Eugene R. Black Deputy Governors Chairman and Federal Reserve Agent Deputy Chairman Hugh Foster Creed Taylor - Oscar Newton W. H. Kettig 1928 Federal Reserve Bank of Atlanta (Dist. 6) DIRECTORS Term Expires Class A MELVIN, E. C. (Selma, Ala.) WARE, G. G. (Leesburg, Fla.) YOUNG, H. Lane (Atlanta, Ga.) Dec, 31 1928 1929 1930 (elected) Class B LEA, Luke (Nashville, Tenn.) SIMON, Leon C. (New Orleans, La.) McCRARY, J. A. (Decatur, Ga.) 1928 1929 1930 (re-elected) Class C KETTIG, W. H.(Brimingham, Ala.) Deputy Chairman NEWTON, Oscar (Atlanta, Ga.) Chairman and FR Agent HARRIS, Geo. S. (Atlanta, Ga.) 1928 1929 1930(appointed) Federal Reserve Bank of Chicago (Dist. 7) OFFICERS Governor J. Deputy Governor B. Mc Dougal C. R. Mc Kay John H. Blair Chairman and Federal Reserve Agent - W. A. Heath Deputy Chairman - James Simpson f1928 Federal Reserve Bank of Chicago i (Dist. 7) DIRECTORS Term Expires Dec. 31 Class A McNIDER, Chas. H. (Mason City, Iowa) JOHNSON, E. L. (Waterloo, Iowa) REYNOLDS, George M. (Chicago, Ill.) 1928 1929 1930 Class B CRAPO, S. T. (Detroit, Mich.) MUELLER, Robert (Decatur, Ill.) VOGEL, A. H. (Milwaukee, Wis.) 1928 1929 1930 (re-elected) Class C BALL, F. C. (Muncie, Ind.) SIMPSON, James (Chicago, Ill.) HEATH, W. A. (Chicago, Ill.) Deputy Chairman Chairman and FR Agent 1928 1929 1930 (re-appointed) 1928 Federal Reserve Bank of St. Louis (Dist. 8) OFFICERS Governor - D. C. Biggs Deputy Governor 0. M. Attebery Chairman and Federal Reserve Agent - William McC. Martin Deputy Chairman - John Boehne I- 1928 Federal Reserve Bank of St. Louis (Dist. 8) DIRECTORS Class A MARTIN, John C. (Salem, Ill.) LONSDALE, John G. (St. Louis, Mo.) NAHM, Max B. (Bowling Green, Ky.) Term Expires Dec. 31 1928 1929 1930 (elected) Class B PLUNKETT, W. B. (Little Rock, Ark.) PERCY, Le Roy (Greenville, Miss.) WELLS, Rolla (St. Louis, Mo.) 1928 1929 1930 (re-lected) Class C DILLASD, Paul (Memphis, Tenn.) BOEHNE, John W.(Evansville, Ind.) Deputy Chairman McC. MARTIN, Wm. (St. Louis, Mo.) Chairman and FR Agent 1928 1929 1930 (re-appointed) 928 928 Federal Reserve Bank of Minneapolis (Dist. 9) OFFICERS Governor W. B. Geery Deputy Governors - B. V. Moore Harry Yaeger Chairman and Federal Reserve Agent - John R. Mitchell Deputy Chairman - Homer P. Clark Federal Reserve Bank of Minneapolis (Dist. 9) DIRECTORS Term Expires Class A LEEMAN, Paul J. (Minneapolis, Minn.) BASSETT, J. C. (Aberdeen, S.Dak.) FARUP, Karl J. (Park River, N.Dak.) Dec. 31 1928 1929 1930 (elected) Class B MYERS, Paul N. (St. Paul, Minn.) HOLTER, N. B. (Helena, Mont.) OWEN, John S. (Eau Claire, Wis.) 1928 1929 1930 (re-elected) Class C McCORMICK, Geo. W. (Menominee, Mich.) MITCHELL, John R. (Minneapolis, Minn.) Chairman and FR Agent CLARK, Homer P. (St. Paul, Minn.) Deputy Chairman 1928 1929 1930 (re-appointed) 1928 Federal Reserve Bank of Kansas City (Dist. 10) OFFICERS Governor Deputy Governor - W. J. Bailey - C. A. Worthington Chairman and Federal Reserve Agent - Deputy Chairman - M. L. Mc Clure William L. Petrikin Federal Reserve Bank of Kansas City (Dist. 10) DIRECTORS Class A SPONABLE, Frank W. (Paola, Kans.) MULLANEY, E. E. (Hill City, Kans.) PARKS, C. C. (Denver, Colo.) Term Expires Dec. 31 1928 1929 1930 (re-elected) Class B BERNARDIN, J. M. (Kansas City, Mo.) PHILLIPS, L. E. (Bartlesville Okla.) BYRNE, Thos. C. (Omaha, Nebr. 5 1928 1929 1930 (re-elected) Class C PETRIKIN, Wm. L. (Denver, Colo.) Deputy Chairman McCLURE, M. L. (Kansas City, Mo.) Chairman and FR Agent BRASS, E. M. (Grand Island, Nebr.) 1928 1929 1930 (appointed) Federal Reserve Bank of Dallas (Dist. U1) OFFICERS Governor Lynn P. Talley Deputy Governors R. R. Gilbert R. B. Coleman Chairman and Federal Reserve Agent Deputy Chairman - - C. C. alsh Clarence E. Linz Federal Reserve Bank of Dallas (Dist. 11) DIRECTORS Class A PATRICK, W. H. (Clarendon, Tex.) SMITH, Howell E. (Me Kinney, Tex.) FROST, J. H. (San Antonio, Tex.) Term Expires 1928 1929 1930 (re-elected) Class B NAIL, J. H. (Fort Worth, Tex.) CULBERTSON, J. J. (Paris, Tex.) MILAN, J. R. (Waco, Tex.) 1928 1929 1930 (Elected) Class C WALSH, C. C. (Dallas, Tex.) Chairman and FR Agent LINZ, Clarence E. (Dallas, Tex.) Deputy Chairman PERKINS, S. B. (Dallas, Tex.) 1928 1929 1930 (re-appointed) 1928 Federal Reserve Bank of San Francisco (Dist. 12) OFFICERS - Governor U. Calkins William A. Ira Clerk Deputy Governors Chairman and Federal Reserve Arent Deputy Chairman J. - - Isaac B. Day Newton Walton N. Moore 1928 Federal Reserve Bank of San Francisco (Dist. 12) DIRECTORS Term Expires Dec .31 Class A McINTOSH, C. K, (San Francisco, Calif.) RAMSAY, T. H. (Red Bluff, Calif.) WHIPPLE, Howard (Turlock, Calif.) 1928 1929 1930 Class B COX, E. H. (Madera, Calif.) DOHRMANN, A. B. C. (San Francisco, SESNON, Wm. T. (Soquel, Calif.) 1928 Calif.) 1929 1930 (re-elected) Class C 1928 SPROULE, 'm. (San Francisco, Calif.) NEWTON, Isaac B. (San Francisco, Calif.) Chairman and FR Agentl929 MOORE, Walton N. (San Francisco, Calif.) Deputy Chairman 1930 (re-appointed) HEARINGS Feb. 9,29 Mar 7 U.S. Congress. Senate. Banking and currency HIG committee. 4621 Brokers' loans: hearings before the committee... .TT on S. Res. 113, a resolution favoting a restriction(1929) of loans by Federal reserve banks for speculative purposes, February 9, 29, and March 7,1928. Wash., ovt.ptg.off., 1929. 96 p. Cunningham, B.H. (FRBd) Platt, Edmund (FRBd) Young,R;A. (Gov. FRBd) Sprague, Prof.O.M.W. Willis, Dr. H.P. F.R.Bd.Ij. Testi mony: 44ar.7 pp.94-96 pp.77-94 pp.66-77 pp.31-66 Feb 29 pp 11-31 HEARINGS 1928 Mar 16 U.S.Congress. House. Rules committee. Federal Reserve Bank of Dallas, Texas: HEARINGS ... 70th,lst sees. on H.Con.Res.24, March 16, 1928. Wash., Govt.ptg.off., 1928. 18.p. (photo.) F.R.Bd. L. HG 2560 .A2 1928 1928 HEARINGS Mar.19-21;Apr 30 May 1-4,8,9,15-18,23,24, 28,29 • r U.S. Congress. House. Committee on banking and currency. Stabilization: hearings before the committee ... 70th congress, Ist seses, on (superseding H.R.7895,69th cong.), .R. 11806, B 236 .U5 1928 a bill to amend the act approved Dec. 23, 1913, known as The Federal reserve act; to define certain policies toward which the powers of the Federal reserve system shall be directed ... Mar. 19,20,21, April 30, May 1-4, 8.9.15-.1823,24,2829.1928. Wash.,Govt.ptg.off, 1928. 458 pe Testimony: Cunningham,E.H.,Letter, p.358 F.M. M.L. Hsmlin,O.S. (mbr.F.P.Pd.) May23,pp.89- 4 08 Sprapuw,Prof.O.M.W. . 130-O 91 a Strong,Benjamin, Mar.19, PP.- 1- LEGISLATIO marh 9 9 -+iB -No 120--70O Co'woi.sa .. . .R.041]J t -A aTo md V.ton of to Aot entitled "An A edffanat ulaivd 1 a-N I ?1914 be ged t'1 Senate and Howet ~0o A me monopolies nc, O to ,pr 0 ftgsentativee of rica in Congress astmbied, That the vis of th6 second paragraph of section 6 of the Act ent An Act t supplement existing laws against 'lawful restr and monopolies and for other urposes," found li title 15, ch 1, section 19, U ted States Code, approved Octbber 15, 1914 amended, is amended to read as follows: • ' "And proided fwther, That nothing in this At shall prohi any private banker from being an officer, directoP.or not more than itwo banks, baning associations, o rustempoyee ompanih or prohibit any offebr, director, or employee of -anbank ban association, ori*-oeompany, or anpyoass A dir~t of a Fede reserve bank, from bein an officer, director, or b&1loyee of more than two other banks, banking associations, or tas u pam whether organized under the laws of the United or ar State, if mi any sch case there is in force a permit ?or issue by the Federal RlArve Board; and the Federal Reser Board ib authorized to issue uch permit if in its judgment it bot incom. patible with the publio interest and to revoke any ich per whenever it finds, aft resonable notice and opoor unity heard, that the public iterest requires its revocation." Approved, March 9, 1928. * . LUi-StITION (PUBIC-NO. *(. 352-72T R. 10151 CoxanGrU of pub4fc moneyj n aetffa bf the requijd of 'Lie.~p SecretazLO .TeMw shi the rust rus cqnpanies thus designated satisaGorf by t eposit of7Oiiited States bonds or other romit p mont of the public money keepw them*i &f4 aihu agentAs of thepeiforermt emance of their ah aternment. t V v~lms- l Yvitr-&c rbPP~~a~ A% LEGISLATION .,,.19891 S(8. An Act To amend the third paragraph of eotlon 18 of the & rei d House of Representatives of the meria in Congress assembled, That the thid pal of sction 18 of the Federal Reserve Act (Title section 844, Utited States Code), be amended and reenacted to re as follows: "Upon the indorsement of any of its member ban which shall bl deemed a waiver of demand, notice, and protest such bank asAto its own indorsement exclusively, and subject regulations a* limitations to be prescribed by the Federal Rese Board, any Federal reserve bank may discount or purchase bil of exchange yIayable at sight or on demand which grow out of t domestic shipment or the exportation of nonperishable, readil marketable agricultural and other staples and are secured by bi of lading ok other shippingdocuments conveying or securing tit t pues stalMB P rid, That all such bills of exchange shall f6lwarded miptly for r collection, and demand for payme shii be m p with resonable promptness after the Jrrival sachE alest their dbstination: Provided further, TlI suc bfil shall any ev be held by or for e a Iunto er reserve baWdor -discoubtin afch bills Fed e r interest to&.b lucted on the basis of the estie bill and adju~t t discount after payment of such bills to conform to the actuR', l thereof." ApprovedMAiay.29W J8. FEDERAL RESERVE SYSTEM POLICY ACTION January 1928 to May 1929 Apparent Intent - Restrictive Open Market Operations - Sold $405 million of Government securities (January 1928 April 1929). Buying rate on bankers' acceptances raised (January 1928 March 1929). Discount Rate - Raised in 3 stages from 31/2 to 5 percent at all Banks. Moral Suasion - Pressure by Federal Reserve System on member banks to avoid contributing to growth in speculative security loans. Surrounding Circumstances - Industrial production expanding rapidly, particularly for durable goods; prices of stocks increasing sharply; huge growth in security loans and new security issues; action aimed at checking speculative activity and making member banks scrutinize loan applications more carefully. Source: Joint Committee on the Economic Report Monetary Policy and the Management of the Public Debt (Patman Report) 1952, Page 217. LITIGATION urch1Basef stock b td .dtntro wer of 'oard ior to 1933.-A Stat* membertank, au of the Statw ma c y its charter art tiws uwrehase A. aN ollinga'Sckju e*ast sthatutory noi pbe of such stock 44 revent c Sto the banI r the safety of its custai 3 oi 4d the standard required as a c are not 'rdized i~iintained. Furthermore, since it does not possess of memberihip chase, the Board would not have power to power to preventr elf ofhe stock when purchased; nor would compel such bank to an* to surrender its stock in the Board have authori ~p. a Federal rw the Federal Reqerve investments qf st Reserve System, unle held by such bank depositors, tlfe sqive ition' . 449 (198 S so ast stipn he safety of indard required stem. 35 Op. Act tion LIATGATION 13.441.-A State nonmember bank which had refused to remit at ' upon it and forwarded for payment by thel eal' par check ae b0 for XOght bsu)ihela1ig fiher Reset Ar of theter dama iii ' itfd from cb bank iii pr ekst ove*fthe pl Iand thus fori aintiff n to agree to remit to defenda St he court to receive on pointed t the Federal Reserve banks are re deposit a from member banks and Reserve b al kes l drafts ceive on any of their meml;er banks; thithW, tricts checks payable on presentation upon any ~1~iit whether such banks ardlnember banks or not ithMti charge can be dade against the Reserve banks by tlimlnd that the Resrve banks may not pay exchange;e' Itultis a d systemof par clearance of checks an4 -etw e h banks andt suQ Id Rese. Yecnberk 1928 LITIGATION Il~ooiW rmt io pur LITGATION ~b tel and thtsua jerebnintemotofsuch texosded byt pothe rlweei~ ~t the ioa bak b he~4 checks.d Itm ipreaed w vo a d n cre ahei was heck. nd t sr;a no equity t A P sd mterefr the ut B ankRic n th a tate it ad di the lAS ME 697 (192w) Nom .-.... 11e as W.6 2. eatoa bank u hedtatten ofeth~~s~ ecm he rom dbti aorand ted thfuni ai oedalthat erebank; o,1 0 a.4 , n r
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