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*------- --~I*- ---- -----------rr- --- -r -crr;----- ----- -- - -- -- --- -- --- ----- UNITED STATES GOVERNMENT EXECUTIVE OFFICERS President - Frinklin D. Roosevelt (re-elected Nov. 1940, inaugurated Jan. 20, 1941) Secretary of Treasury - Henry Morgenthau, Jr. (appointed Jan. 1, 1934, served until July 23, 1943) Comptroller of Currency 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 - Preston Delano (date of appointment Oct. 24, 1938) Cordell Hull Henry L. Stimson Harry H. Woodring, Claude A. Swanson, Charles Edison, Frank Knox Harold L. Ickes Henry A. Wallace, Claude R. Wioka6td Harry L. Hopkins, Jesse Jones Frances Perkins James A. Farley, Frank C. Walker Frank Murphy, Robert Jackson U. S. G 0 VERRNM E NT January SENATE Banking and Currency Committee 76th Congress u- il&_LJ WAGNER, Robert F. GLASS, Carter BARKLEY, Alben W. BYRNES, James F. BANKHEAD, 2d, John H. ADAMS, Alva B. MALONEY, Francis T. RADCLIFFE, George L. BROWN, Prentiss M. HUGHES, James H. HERRING, Clyde L. I New York Virginia Kentucky South Carolina Alabama Colorado Connecticut Maryland Michigan SMATHERS, William H. Miller, John E. Delaware Iowa New Jersey Arknasas CLARK, D. Worth DOWNEY, Sheridan Idaho California TOWNSEND jr. John G. FRAZIER, Lynn J. TOBEY, Charles W. DANAHER, John A. TAFT, Robert A. Delaware North Dakota New Hampshire Connecticut Ohio J190a January U. S. GO V E RNM E N T HOUSE OF REPRESENTATIVES -1 Banking and Currency Committee 76th Congress RB~b~i;-~S~kps STEAGALL, Henry B. WILLIAMS, Clyde SPENCE, Brent FORD, Thomas F. BROWN, Paul ~vAfi4M, -riht EVANS, Marcellus H. BARRY, William B. SACKS, Leon S. GORE, Albert MILLS, Wilbur D. MARTIN, John C. FOLGER, Alonzo D. MONRONEY, A. S. Mike Alabama Missouri Kentucky California Georgia Texas New York New York Pennsylvania Tennessee Arknasas Illinois North Carolina Oklahoma WOLCOTT, Jesse P. GIFTO1, Charles L. LUCE, Robert CRAWFORD, Fred L. GAMBLE, Ralph A. SIMPSON, Richard M. JOHNSON, Noble J. Michigan Massachusetts Massachusetts Michigan New York Pennsylvania KEAN, Robert W. New Jersey Illinois Connecticut SUMNER, Jessie MILLER, William J. Independent HULL, Merlin Wisconsin Indiana FEDERAL_ -RESERVE SYSTEM OF DOVERNORS - DARTF Marriner S. Eccles, Chai M. S. Saymesak Joha.L Icea ----- Renald Bansm, Vie. Chairmen Ernest G. Draper h--at r C. Davis Lawrence Clayton, -Assistant to the Chairman ElliottThurston ,. Special Assistant to the Chairmnnan Secretary' a.-Office Chester Morrill, Secretary Liston P.. Bethea, Asat. Secretary S. R. Carpenter,. Asat. Secretary J. 0C Noell, Asst. Secretary Counsel'a Office Walter Wyatt, General. Counsel J. P. Dreibelbis,.,ast.. Geera-.Counsel George B.Vest Asast. Genera.CCounsel B. Magrder Vingfield -Assistanteneral Division of. Research and tatisio8 E. A. Goldenveiser,.. -Director, Woodlief Thomas Assistant Director Division of Exatrmnations Leo H,. Paulger. Chief, R. F. Leonard, Ast.. Chief C. E. Cagle, Asst..Chief Diviin of lank Operations Edward L. Smead, Chief J. R. Van Fossen, Asat. Chief J. E... Horbett, Asst.Chief Loans Division-of. §nrity CarlE..Parry, Chief Philip E. Bradley, Ast. Chief Counsel Fiscal Agent 0. E. Foulk, Fiscal Agent Josephine E. Lally, Deputy Fiscal Agent FEDERAL RESERVE SYSTEM FEDERAL ADVISORY COUNCIL District No. 1 (Boston) Thomas M. Steele District No. 2 (New York) Leon Fraser District No. 3 (Philadelphia) Howard A. Loeb, Vice President District No. 4 (Cleveland) B. G. Huntington District No. 5 (Richmond) Robert M. Hanes District No. 6 (Atlanta) Ryburn G. Clay District No. 7 (Chicago) Edward E. Brown, President District No. 8 (St. Louis) S. E. Ragland District No. 9 (Minneapolis) John Crosby District No. 10 (Kansas City) John Evans District No. 11 (Dallas) District No. 12 (San Francisco) R. E. Harding Paul S. Dick FEDERAL RESERVE SYSTEM FEDERAL OPEN MARKET COMMITTEE Marriner S. Eccles, George L. Harrison, Chester C.Davis William A. Day Chairman Vice Chairman Ernest G. Draper John K. McKee M. S. Szymczak Robert S. Parker Ronald Ransom George J. Schaller John S. Sinclair Chester Morrill, Secretary S. R. Carpenter, Assistant Secretary Walter Wyatt, General Counsel J. P. Dreibelbis, Assistant General Counsel E. A. Goldenweiser, Economist John H. Williams, Associate Economist R. G. Rouse, Manager of System Open Market Account Federal Reserve Bank of Boston (Dist. 1) OFFICERS President First Vice President Vice President Boy A. Toung - William W. Paddock - W. Willett Chairman and Federal Beserve Agent Depaty Chairman Frederic H OCurtiss - Henry S. Dennison Federal Reserve Bank of Boston (Dist. 1) DIRECTORS Class A Term Expires REED, Lewis S. (lvaterbury, Conn.) DODGE, Leon A. (Damariscotta Me.) FORBES, Allan (Boston, Mass.) Dec. 31 1940 1941 1942 (re-elected) Class B FRENCH, Edward S. (Springfield, Vermont) ALLEN, Philip R. (E. Walpole, Mass.) FROST, Edward J. (Boston, Mass.) 1940 1941 1942 (re-elected) Class C HARRIMAN, Henry I. ( Boston, Mass.) CURTISS, Frederic H. (Boston, Mass.) Chairman and FR Agent DE NISON, Henry S. (Framing, Mass.) Deputy Chairman 1940 1941 1942 (re-appointed) 1940 Federal Reserve Bank of New York (Dist. 2) OFFICERS President First Vice President Vice Presidents eorge L. Harrison Allan Sproul Ray M. Oidney L. Werner Knoke Walter S. Logan Chairman and Federal Reserve Agent Owen D. Young Deputy Chairman Beardsley Rual Leslie R. Rounds Robert G. Rouse John H. Williams Feder al Reserve Bank of NEW YORK (Dist. 2) 1940 DIRECTORS CLASS A POTTER,. William. C.- 01d-Westbury) THOMPSON, Otis A. (Norwich) DORRANCE, Neil H. (Camden, N. Y.) Term Began Dec. 31 Term Ended 1/1/38 1940 1/1/39 1941 1/1/40 1942 1/1/38 1940 CLASS B N. J.) WATSON, Thomas J. (Lebanon, TEAGLE, Walter C. (Port Chester) 1/1/39 1941 (Plainfield) 1/1/40 1942 (reelected) 1/1/38 1940 (Chairman) 1/1/39 1941 (Deputy Chairman) 1/1/40 1942 (reappointed) STEVENS, Robert T. CLASS C YOUNG, Owen D. RUML, DAY, (Van Hornesville) Beardsley (New York) Edmund E. (Ithaca) Federal Beaerve Bank of Philadelphia (Diat. 3) OFFICERS Pre sdent S John 8 First Vice President S Vice Presidents Sinclair Frank J. Drinnen W. John Davis Ernet C. Hill Clarence A. Mollhenny Chairman and Federal Reserve Agent - Thomas B. McCabe Deputy Chairman - Alfred H. Williams Federal Reserve Bank of Philadelphia (Diet. 3) DIRECTORS Tera Expires Clas Dec. 31 A HENNING, J. B. (Tunkhannok, Pa.) WAINE, Joseph (Jr.) (Philadelphia Pa.) HEILY, George W. (Harrisburg, Pao) 1940 1941 19i2 (re-elected) Class B STOUT, C. F. C. (Camden, New Jersey) CANNON, Harry L. (Bridgevile, Dela.) KERLIN, Ward D. (Camden, New Jersey) 1910 19h1 1912 (elected) Class C WHITTIER, Warren F. (Douglassville, Pa.) WILLIAMS, Alfred (Philadelphia, Pa.) Deputy Chairman MCABE, Thomas B. (Caester, Pa.) Chairman and FR Agent 19140 (appointed) 1941 1912 (re-appointed) Federal Reserve Bank of Cleveland (Dist. 4) OFFICERS President First Vice President Vice Presidents - Matthew J. Fleing Frank J. Zurlinden - William H. Fletcher William F.Taylor George H. Wagner Chairman and Federal e serve Agent - George C. Brainard Deputy Chairman - Reynold E. Klages Federal Reserve Bank of Cleveland (Dist. h) DIRECTORS Term Expires Dec. 31 Class A MDOWELL, Harry B. (Sharon, Pa.) BROOKS, Frank F. (Pittsburgh, Pa.) CONNER, Ben R. (Ada, Ohio) 190o 191 1922 (re-elected) Class B WRIGHT, Ross P. (Erie, Pa.) CRABBS, George D. (Cincinnati, Ohio) MILLSOP, Thomas E. (Weirton, W. Va.) 1940 191 1912 (elected Aprl2) Class C RAINED, George C. (Youngstown Ohio) Chairman and FR Agent STONE, Jamas C. (Lexington, Ky. KLAGES, Reynold E. (Columbs, Ohio) Deputy Chairman 19h0 1941 (res. Aug. 15) 1942 (re-appointed) 190 Federal Reserve Bank of Richmond (Dist. $) OFFICERS President First Vice President Hugh Leach - John S. Walden, Jr. Vice Presidents John G. Fry George H. Keesee Chairman and Federal Reserve Agent - Robert Lassiter Deputy Chairman - W. G Wyeer 19o0 Federal Reserve Bank of Richmond (Dist. $) DIRECTORS Class A Term Expires Dec. 31 BRASVELL, James C. (Rocky Mount, N. Carolina) JOHNSON, L. E. (Alderson, W. Va.) RIEMAN, Chas. E. (Baltimore, Md.) 19h0 1941 1942 (re-elected) Class B HANNA, John H. (Washington, D.C.) MALLOY, Edwin (Cheraw, S. Carolina) REED, Chas.C. (Richmond, Va.) 1940 19h1 19a2 (re-elected) Class C LASSITER, Robert (Charlotte, N. Carolina) Chairman and Agent McCORMICK, Chalres P. (Baltimore, Maryland) WYSOR, W.G. (Richmond, Va.) Deputy Chairman 1940 19h1 192 (re-appointed) Federal bRserve Bank of Atlanta (Dist. 6) OFFICERS President - First Vice President - Vice Presidents - oberb S. Parker William S. McLarin, Jr. Malcolm H. Bryan Harry F. Conniff Chairman and Federal Reserve Aget Deputy Chairman Frank H. Neely - J.*F. Porter Federal Reserve Bank of Atlanta (Dist. 6) DIRECTORS Class A COOK, W. D. (Meridian, Miss.) WHITE, George J.(Mount Dora, Florida) GLENN Thomas K. (Atlanta, Georgia) Term Expires Dec. 31 1940 19h1 1942 (elected) Class B HALL, Fitzgerald (Nashville, Tenn.) GEORGE, Ernest T. (New Orleans, Louisiana) McCRARY, J.A. (Decatur, Ga.) 19o0 191 1942 (re-elected) Class C HARRIS, Rufus C. (New Orleans La.) Chairman and FR Agent NEELY, Frank H. (Atlanta, Ga. PORTER, J. F. (Columbia, Tenn.) Deputy Chairman http://fraser.stlouisfed.org/ iFederal Reserve Bank of St. Louis 1940 1941 1942 (re-appointed) Federal Reserve Bank of Chicago (D)ist OPFICERS President - Pirst Vice President - Vice President . J. Schaller H. P. Preston -C.S Young W. H. Smyaord J. H. Dillard Chairman and Federal Reserve Agent - Robert E. Wood Deputy Chairman Frank J. Lewis - 7) Federal Reserve Bank of Chicago (Dist. 7) DIRECTORS Term Expires Class A ESTBERG, E. R. (Waukesha,Wis.) WILLIAMS, Frank D. (Iowa City, Iowa) CUMMINGS, Walter J. (Chicago, Ill.) Dec. 31 1940 19h1 1942 (re-elected) Class B VAN DUSEN, Charles B. (Detroit, Michigan) NOYES, Nicholas H. (Indianapolis, Indiana) BABB, Max W. (Milwaukee, Wisconsin) 1940 1941 1942 (re-elected) Class C Deputy Chairman LEWIS, Frank J. (Chicago Ill.) Chairman and FR Agent Ill.) (Chicago, E. WOOD, Robert Iowa) Moines, (Des V. Clifford GREGORY, 1940 19h1 1942 (appointed) Federal Reserve Bank of St. Louis (Dist. 8) OFFICERS President First Vice President - - William Me C. Martin F. Giy Hitt Vice Presidents Olin M. Attebery Clarency M.Stewart Chairman and Federal Reserve Agent William T. Nardin Deputy Chairman Oscar G. i Johnston 1940 Federal Reserve Bank of St. Louis (Dist. 8) DIRECTORS Class A CORLIS, G. R. (Anna, Ill.) MAESTRE, Sidney (St. Louis, Mo.) NAHM, Max B. (Bowling Green, Kent.) Term Expires Dec. 31 190 19 12 (reelected) 1942 (re-elected) Class B COUCH, Harvey C. (Pine Bluff, Ark.) STANLEY, John R. (Evansville, Indiana) HARRIS, J. W. (St. Louis, Mo.) 19h0 1941 1942(re-elected) Class C JOHNSTON, Oscar G. (Scott, Miss.) Deputy Chairman BROOKS, Douglas W. (Memphis, Tenn.) NARDIN, William T. (St. Louis, Mo.) Chairman and FR Agent 1940 1941 (appointed) 192 (re-appointed) Federal Reserve Bank of Minneapolis (Dist. 9) OFFICERS President J. N. Peyton First Vice President Vice H. I. 0. S. Powell Presidents Ziemer E. W. Swanson Chairman and Federal Reserve Agent Walter C. Coffey Deputy Chairman Roger B. Shepard (app. Mar. 12) Federal Reserve Bank of Minneapolis (Dist. 9) DIRECTORS Term Expires Dec. 31 Class A GRANGAARD, Melvin 0. (Minneapolis, Minn.) McKNIGHT, J. R. (Pierre, South Dakota) McCARTNEY, F. D. (Oakes, N. Dakota) 19h0 19h1 1942 (elected) Class B WASHBURN, William 0. (St. Paul, Minn.) O'CONNELL, J. E. (Helena, Mont.) FUNK, Albert P. (La Crosse, Wis.) 19h0 19h1 1912 (re-elected) Class C COCHRAN, W. D. (Iron Mountain, Mich.) SHEPARD, Roger B. COFFEY, Walter C. 1940 (St. Paul, Minnesota) Deputy Chairman 1941 (St. Paul, Minnesota) Chairman and FR Agent 1942 (re-appointed) Federal Reserve Bank of Kansas City (Dist. 10) OFFICERS President S George H. Hamilton First Vice President S Vice Presidents James W. Bela Harold G. Leedy Chairman and Federal Reserve Agent Deputy Chaiman Carrell A. Worthington -Robert - B. Caldwell John J. Thomas Federal Reserve Bank of Kansas Gity (Dist. 10) DIRECTORS Class A *SPONABLE, Frank W. (Paela, Kamas) *LIMBOCKER, N. A. (Imporia, Kansas) MULANE, I, E. (Hill City, Kansas) DINES, T. A. (Denver, Colorado) Term Expires Dec. 31 190o(died June 21) 1940 (elected Aug. 15) 191A 1942 (re-elected) Class B BEIARDIN, J. M. (Kansas City, Mo.) PHILLIPS, L. E. (Bartlesville, Oklahoma) HOSFORD, Willard D. (QOaha, Nebraska) 19l0 1961 19I2 (re-elected) Class C CALDELL, R. B. (Kansas City, Mo.) Chairan and FR Agent THOMAS, J. J. (Seward, Neb) Deputy Chairan ROBERTS, Clarence (Oklahoma City, Okla.) 1940 1941 1942 (re-apponted) Federal Reserve Bank of Dallas (Dist. 11) OFFICERS President R. R. Gilbert First Vice Presideni - Vice Presidents - E. B. Stroud R. B. Coleman W. J. Evans w. 0. Ford Chairman and Federal Beserve Agent Deputy Chairman J. H. Merritt - Jay Taylor ~1 -i 1 Federal Reserve Bank of Dallas (Dist. 11) DIRECTORS Term Expires Class A Dee* 31 HOOKS, Pat E. (Itasca, Tex.) BEALE, Ford (Denison, Tex.) 1940 WINTON, Ed. H. (Fort Worth, Tex.) 192 191 (re-elected) Class B WEST, J. M. (Houston, Tex.) *KURTH, MILAN, Ernest L. (Keltys, Tex.) Jesse R. (Waco, Tex.) *MIDDLETON, John D. (Greenville, Tex.) 1940 1941 (elected Sept. 16) 1942 (re-elected) 191 1 (died June 17) Class C COZZO, Joseph B. (Dallas, Tex.) MERRITT, James H. (Me Kinney, Tex.) Chairman and FR Agent TAYLOR, Jay (Amarillo, Tex.) Deputy Chairman 1940 1911 1912 (re-appointed) Federal Reserve Bank of San Francisco (Dist. 12) OFFICERS President First Vice President Vice Presidents - William A. Day - Ira Clerk W. M. Hale R. B. West C. E. larhart Chairman and Federal Reserve Agent Deputy Chairman R. C. Force (app. as Chairman and FR Agent on March 13) - St. George Holden Federal Reserve Bank of San Francisco (Dist. 12) DIRECTORS Class A McINTOSH, C. K. (San Francisco, Calif.) ODLIN, Reno (Tacoma, Wash.) BYHD, Carroll F. (Willos, California) Term Expires Dec. 31 1940 1941 1942 (elected) Class B COX, Elmer H. (San Francisco, California) VOLKMANN, William G. (San Francisco, California) TAYLOR, Reese H. (Los Angeles, Calif.) 1904 1941 192 (re-elected) Class C HOLDEN, St. George (San Francisco Calif.) Deputy Chairman 1940 FORCE, R. C. (San Leandro, Calif.) Chairman and Fed. Res. Agt.1941 (appointed, 3/8) THORPE, Carlyle (Los Angeles, Calif.) 1942 (re-appointed) H3ARINGS June 12, 14 U.S.Congress. Senate. Banking and currency committee. Business loans by Federal reserve banks: HEARINGS ... 76th cong.,3d sess. on S.2998, to establish a permanent industrial loan a bill corporation to assist financing institutions in making credit available to commercial and in to amend dustrial enterprises and S.3939, a bill as act, reserve Federal section 13b of the amended, Jude 12 and 14, 1940. ptg. off.,1940. 51 P. Testi- Eccles, nony: F.R.Bd.L. M.S. June 12 anc 14 Wash.,Govt. p. 1h. HG 2560 .A21 1940 l9q4I HEARINGS June 21,22 TT.SCongress. Senete. Banking and currency committee. Foreign accounts in Federal reserve banks: H9ARINGS ... 76th cong.,3d sess. relative to foreign accounts in Federal reserve banks HG 2560 .A2 1940 (S.4 174 - T.R.10127) JTune 21 and 22, 1940. Waish.,Govt.ptg.off.,1940. 2g p. Testi- Dreibelbis,J.P.(F.R.Bd.leal) June21,pp.2-12,12-15 mony: Eccles, M.S. June 22 pp. 2 2 - 2 8. Ransom,Ronald (Bd.mbr.) June 21, pp.15-17 June 22, pp.23-25, 27 F.R.Bd.L. 1940 May 7 Expansion of Presidential power to investigate, regulate or prohibit "transfers of credit". LEGISLATION Certain technical and qualifying amendments were made to section 5(b) of the Trading With the Enemy Act of October 6, 1917, as amended. This amendment was for the purpose of clarifying the President's authority to regulate trans actions and funds or other property in which foreign countries or their nationals have an interest. (Pursuant to the authority given him by section 5(b) of this Act, as amended, the President, having declared that a national emergency existed on May 27, 1941, by Executive Order 8843 issued on August 9, 1941, authorized the Board of Governors of the Federal Reserve System to regulate corsumer credit.) (54 Stat. 179.) Source: Federal Peserve Board Legal Memo, June 26, 1951 - Federal Statutory Changes 1900-1951 Governing the Issuance of Money and Restricted or Defining Bank Credit 19k0 June LEGISLATION [PUBLI--No. 583-76TH CONGRESS] [CHAWER 301-3D SESSION] • .-a ' [8. 1964] AN- ACT To amend section 5136 of the Revised Statutes, as amended, to authorize charitable contributions by national banking associations. he Be it enacted by the Senate and House of Representatives 36c United States of America in Congress assembled, That :the of the Revised Statutes, as amended, is amended by adding end thereof the following new paragraph: .Eighth. To contribute to community funds, or to charitable, phi~bropic, or benevolent instrumentalities "cdnducive to public such sums as its board of directors may deem expedient and wel in th'iinterests of the association, if it is located in a State the TIws of which do not expressly prohibit State banking institutions from contributing to such funds or instrumentAlii b' 840 Approved, June 1 Lf 191o Jue 1 LEGISLATION [PUBLI--No. 630-20IOW, CI<iwaIJ [CHArpea 664&fb SEsION] -18. 2568 AN ACT To amend the Federal Credit Union At (Jine3i 1216, see. 1761). , 1984, oh. 750, par. 1, 48 Stat. Be it enacted by the Senate anA eof the United States of America inj2 Wat section 11 (d) of the Federal ITJion Act be, a~ 4, 'same is heret amended by substityng or "$50" where ppears it the fovi sentence thereof "$00", so that said foiyrlAenteneOrsbIl ; rebdbllows: "No loan in excess of $100 sha imade without adequate security and no loan shall be made to any member in excess of $200 or 10 per certem of the Federal credit union's paid-in and unimpaired capital and ar plus, whichever is greater.". Approved, June 15, 1940. June0 29 LEGISLATION muBFAor-No. 685-76TELCONGRESSJ [CHAPTERI AMW'M&B&&zoN] bob--am WACT .Aboso" To prohibtt the redlil, ; n& position. of money or proet eoiul taken from %rgnixed or o thUnite# Q1tte or any o he Federal R Be it enaoted by the United State. of AmT" the AMof May 14 certfti4 offajMFoMM1iibwt unidertj la~wavf the United 8tatihbr 1nny memb"d o h o 2 o m934t for perating Federat anto~de4iftifurther amended by adding tl-ereto the mwing si section: "(e) Who~m shall receive, possess, onJ, M Brersell or dispose of any property or money or otbw tbino0 OF value ico;Wino the same to have been 'taken froze,Is Uk in viol~ation of subsectior (a) of this section shall be fined* snore than $5,000 or imprisonec not more than ten years, or b** Approved, June 29, 1940. 1940 LEGISTION October 10 I-bi i svam [PUBLIC-NO. 832-76THn Co(0xMRfP" eOd V"m T'"* [CHAPTER 841-3D SEssION] [S. 844] . AN ACT To simplify the accounts of the Treasurer of te~fd Stat4 d for oth purposes. Be it enacted by the Senate and House of Represen_ ves of the United States of America in Congress assembled, That afftr the reim bursement to the Treasury from funds derived from assessments made pursuant to section 8 of the Act of July 12, 1882 22 Stat. 164, as amended (U. S. C., title 12, sec. 177), of all costs lawful charged thereto for the fiscal year ending June 30, 1941, the balae of such funds shall be covered into the Treasury as miscellaneou receipts;. and thereafter the cost of transporting and redeeming such outstand ing national bank notes and Federal Reserve bank notes as may be presented to the Treasurer of the United States for redemption shall be paid from the regular annual appropriations for the Treasury Department. Approved, October 10, 1940. FEDERAL RESERVE SYSTEM (See also 1939 - Oct.1939 to Jan.19h0) 1940 Open Market Operations - POLICY ACTION Apparent Intent - Restrictive - For other purposes Sold $300 million of Government securities. Discount Rate Feserve Pequirements Selective Yegulations Surrounding Circumstances Source: -Partial offset to gold inflow; increased excess reserves; large amounts of funds seeking investment; Gcvernment System sales security prices rose to new high levels. also to maintain orderly market conditions. Joint Committee on the Economic Report Monetary Policy and the Management of the Public Debt (Patman Report) Page 221. 1952, LITIGATION 25(b).102. Reserve Bank Acting as Fiscal Agent Dealing with Spanish Government. Plaintiff sued the Federal Reserve Bank, United States Lines Co., and the Superintendent of the United States Assay Office for damages allegedly arising out of the purchase by tte U. S. Secretary of the Treasury of about six and a half million dollars worth of silver from cer tain persons purporting to act as the government of Spain, that government having later been deposed. The Federal Reserve Bank, in the transaction, had acted as fiscal agent of the U. S., and as such had obtained the shipping documents so that the silver could be transported to tne U. S. Assay Office. The first check in payment of the silver was drawn by the Feaeral Reserve Bank on the Treasurer of the United States. The court held that a certificate by the Spanish Ambassador to the U. S. to the effect that the Spahish Government, which purported to sell the silver, had acquired title thereto, could not be challenged in the courts of this country. Accordingly the court said "The point now before us now becomes a narrow one, indeed. It concerns only the form of the judgments to be entered, that is, whether a judgment in favor of the Reserve Bank should be based on its immunity from suit or on the merits." The court held that the Reserve Bank was "an independent corporation which had obtained posses sion of the plaintiff's property and allegedly had wrongfully disposed of it." Therefore, the bank was suable; however, judgment should be given in its favor on the merits. Banco de Espana v. Federal Reserve Bank of New York, et al., 114 F. 2d 438 (1940). iNOTE.--Paragraphs 3 to 6, inclusive, of Sec. 25(b), applicable to dealings with foreign states or their central banks, were added by the Act of April 7, 1941.
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