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The Papers of Eugene Meyer(mss52019) 121_02_001- Subject File, Federal Reserve Board, Reports, Miscellaneous, 1932-33 6-.,ose4h kEseet/E goimP 1 tefiafrs, oiscEzaittcooks /93-33 GENERAL ACCOUNTING OFFICE, OFFICE OF THE COMPTROLLER GENERAL OF THE UNITED STATES WASHINGTON,D. C. SIR: Receipt is hereby acknowledged of your affidavit under the act of December 11, 1926(amended),re your lb appointment as a civil officer of the United States effective ,1930 J. R. McCARL, Comptroller Ge the United States. By zd, ArZZAzii rri rn rri C7.3 •In this space officer will fill in his name and the address to which he wishes receipt forwarded. 10-1783 See also instructions on reverse side hereof. Date stamp of G. A.0. 4- FREE GOLD--MARCH 2, 1932 (Amounts in thousands of dollars) Federal reserve bank Calculation of free gold Gold required Eligible F. R. Total Reserve Redemption as be To pledged notes paper Total (Columns of against (5% fund (Column collateral Pledged reserves outstand9 and deposits* Column 3) ing with agent 2 minus Column 3) 6 14 2 7 9 1 3 , 222,496 Boston 1,003,191 New York 224,981 Philadelphia 289,350 Cleveland 103,049 Richmond 111,397 Atlanta 656,904 Chicago 109,170 St. Louis 73,464 Minneapolis 92,034 Kansas City 51,893 Dallas 207,426 San Francisco. Total * 202,628 621,082 277,103 326,631 112,606 137,790 616,263 97,434 41,761 188,255 128,482 125,620 41,563 52,976 1432,827 1148,621 201,011 71,043 84,814 8 9 10 11 2,088 9,413 42,631 294,863 205,586 737,103 16,910 266,088 21,284 47,221 55,404 165,126 752 125,839 6,424 43,787 198,832 26,148 17,018 259,892 92,202 105,849 29,458 10,347 5,548 18,049 53,608 65,544 14,081 6,606 o 0 17,225 12,478 126 86,048 21,598 6,281 2,078 2,649 52,600 19,081 18,385 9,350 81,399 534,864 4,070 89,510 628,444 28,460 50,347 21,238 76,196 1,062 21,354 98,612 10,558 3,906 27,496 501 1,566 13,895 4,505 8,855 1,505 10,107 18,623 17,625 53,159 71,898 78,139 47,385 198,571 20,003 5,508 47,953 17,364 47,741 7,632 85 10,000 o 691,985 2,722,514 422,841 249,473 556,816 173,139 70,575 14,632 55,943 732 15,223 94,050 41,763 52,287 2,088 23,764 46,263 17,372 28,891 285,536 147,499 138,037 869 7,375 3,145,355 2,887,961 902,560 1,955,401 45,128 Includes reserves other than gold. 160,867 4, Free gold (Coll= 1 minus Column 7) Items reduction of which would increase free gold U. S. securities held F.R.notes Oval System investheld by Other ment account reserve bank • EXCESS RESERVES-MARCH 2, 1932 (Amounts in thousands of dollars) Federal reserve nk S. Boston gew York Philadelphia Cleveland Richmond Atlanta Chicago st. Louis Minneapolis Kansas City Dallas San Francisco Total Total reserves 1 F.R.notes in circulation 2 Calculation of excess reserves Required reserves Deposits 40% of P.R.notes 35% of in circulation deposits 4 3 5 Total 6 Excess reserves (Column 1 minus Column 6) 7 222,496 1,003,191 224,981 289,350 103,049 111,397 656,904 lo9,17o 73,464 92,034 51,893 207,426 181,344 573,861 260,085 308,582 103,256 120,565 565,916 93,528 69,070 83,943 4°,755 237,50 121,803 842,467 125,106 150,285 54,518 52,5 1 255,7 3 61,o12 43,495 0(0590 50,361 151,H4 72,538 229,544 lo4,o34 123,433 41,302 48,226 226,366 37,411 27,628 33,577 16,3o2 95,033 42,631 294,863 43,787 52,600 19,081 18,386 89,510 21,354 15,223 23,764 '7,625 53,159 115,169 524,407 147,s21 176,033 60,383 66,612 315,876 58,765 42,851 57,341 33,927 14s I.2 107,327 478,784 77,16o 113,317 42,666 44,785 341,028 50,4°5 30,613 34,693 17,966 59,234 3,145,355 2,638,48s 1,977,1o1 1,055,395 691,985 1,747,3s5 1,397,975 Reserve ratio s 73.4 70.8 58.4 63.1 65.3 64.4 79.9 70.6 65.3 61.6 57.o 53.3 I. 1 THE MONETARY * * SYSTEM * * OF * THE * UNITED * * A brief statement by the Treasury Department with reference to the various kinds of money in circulation in the United States. April, 1932 Revised —234=212xx22214 * STATES * ^ 7' T:c027 1 SYSTEM OF TH7 U7IT7D STATES In 1786 the Oon7ress of the Confederation adopted as the monetary unit the dollaf of 375.34 ;rails of Trure silver. Followirr; the inar-u- ration of the present form of Government the :)onTress, by the act of April 2, 1792, established the first monetary system of the United States. Two units were adopted: the c;old dollar, containing 24.75 grains oi Pure gold, and the silver dollar, containing 371.25 grains of pure silver. The ratio of ;old to silver was 1 to 15. Both !:(pld and silver were leal tender; bhp standard was double. Various chan7es in the ratio were made from time to time until the act of February 12, 1873, which prov - 7,i that the unit of value of the United States should he the •Told dollar of th; rt:--adarl_ weight of 25.8 Trains, 0.200 fin,-1. The act of February 22, 1878, directed the coina;e of standard silver dollars, aad provided that tney should be le7a1 tender, at their nominal value for all debts and dues public and private except where ot:71orvise expressly stipulated in the contract. The act of March 14, 1900, declares that the dollor, consisti-1,; of 25.8 7rains of o'old 0.900 fine, "shall be the standard unit of value", and makes it the duty of the Secretary of the Treasury to maintain all forms of money issued or coined .by the United States at a parity of value (i.e.equality of purchasing power) with this standard. This act also provides that nothing contained in the act shall be construed to affect the logal.tender quality, as now provided by law, of the silver dollar or of any other money coined or issued by the United Statics. The Federal Reserve Act of December 23, 1913, reaffirms the parity provisions of the above act and the authority of the Secretary of the Treasury to borrow or buy 7old in order to maintain such Parity. e• • - 2The money in circulation in the United States consists of 7o1d, silver, nicl and bronze coins and varigus hinds of :)aper - cu=ency including bank notes. The coins are produceri by the mints at Philadel-phia, Denver, and. San Francisco, wi.e all the paper money is produced by the Bureau of 7n,-..raviar and Printir4. at 7ashin7ton. Both the mints and the Bur:!aai e Engraving and Printin7 are under the Treasur y Department. Le tender is a qualit7 given a circulatinr: medium by Con7;ress and, posrsE,t-_„ - - this quality, it becomes lawful money. Leal tender is mono7 v-aich r?.. debtor may le;ally require his creditor to receive in payment of a debt, in the absence of any 1Tecial a7reement in the contract or obligation itself. Not all kinds of money possess legal tender qualities, yet all kinds circulate freely at Dar and are convertible into standard money. Metallic Money Gold coins: United Stat,:s. The gold dollar is the standard unit of value in the Gold coins arc now minted in denominations of 5, nO, and -120, termed respectively half ea, Jes, ea7les, and double eagles. The ?;old dollar wei--;hs 25.8 -; .rains in the proportion of 900 parts of pure gold to 100 parts of alloy. is The coining value of a troy ounce of pure ;old 20.67l3 and the coinin7 value of a troy ounce of standard (3.900 fine) gold is $18.60455. Tho -TeiTht of $1000i-, United States 2;old coin is 53.75 troy ounces, equivalent to 3.585 pounds avoirdu pois. when not reduced in weight bc.low the limit of tole Gola coins, loe fixed by law, are le;al tender at their nominal or fnce valu- in payment of all debts, public and private, and when below such standara weight and limit of tolerance they are le7a1 tender in proportion to their weight. Being standard money, gold coins are not redeemable, but may be exchan7ed for other forms of money, particularly gold certificates. - 3- The standa-J silver dollar cont:Ains 4'12.5 Standard silver dollars: The coinin2; value in standard silver dollars zrains of silver 0.900 fine. of a tro: ounce of puro silver is $1.2929, and the coinin: va1u:2 of a troy ounce of sandard silver is 1.153S. The wei-;ht of $1000 in standard. 859.3W: troy ounces, equivalent to 58.923 silver (0.900 fine) dollars i Standard silver dollars are logal tender at their pounds avoird-7-00is. nominal or face value in payment of all debts, public and private, wit out reld to the amount, except There otherwise expressly stipulated in a contract. Bein.7: standard money, standard silver dollars nrc not redeem,- able, but mcy be exchanr:ed for silver certificat,s. The subsidiary silver coins issued are half S'210si3iary silver coins: dollars, quarter dollars and dimes. amounts not exceer'_inroms or multi:1110,7 of These coins are legal tender for :1.0 in any one payment. They may be Presented in 20 to the Treasurer of the United States for redemption or exchan-;.: into lawful noncy. They ,,ill also be received for redemption the Federal reserve banks and brc.nohes. nnor coins: Minor coins of nickel or bronze are iss,ued in five cent pieces and one cent pieces. in They are leal tender for amounts rot oxocz)d- twenty-five cents in any one payment. They may be Presented for ro- domption or exchano under the same conditions as gUbsidiary silver coin. The fel1orin7 table shows the denominations, fine metal and alloy ccct:ent, and wei7ht of the coins of the United States as -at present issued.: • -4 Kind and Denomination Fine gold silver or copcontained ner i (grains) Alloy contained(1) (grains) Weight (grains) Gold: (2) Double eale MO) Ea7;le 010) Half eale ($ 5) Gold(3) ,iw64.40 4 232.20 116.10 Copper 51.60 25.80 12.90 516.00 258.00 129.00 Silver: Standard dollar Half dollar Quarter dollar Dime Silver(3) 371.250 173.610 86.805 34.722 Copper 41.250 19.290 9.645 3.858 412.50 192.90 96.45 38.58 Minor coins: Five cents(4) One cent (5) Copper 57.87 45.60 Alloy 19.29 2.40 77.16 48.00 The alloy neitil,:r adds to nor det--,?ts from the value of the coin. The coinage of the gold dollar ras discontinued by the act of September 26, 1890; of the Quarter eagleCS2.50) by the Act of April 11, 1920. Gold ard silver coins contain 900 parts of pure P;old or pure sil-rer and 100 parts of copper alloy. Seventy-five Per cent copper, 25 per cent nickel. Ninety-five per cent copper, 5 Per cent tin and zinc. Paper Money There are seven kinds of paper currency in circulation in the United States: Unit6d States notes, gold certificates, silver certificates, Treasury notes of 1890, Federal reserve notes, National bank notes, and Federal reserve bank notes. United States notes: United States notes are often referred to as "greenbacks" or "legal teiv'ers". ,re originally issaed under These notes w,, authority of the acts of February 25 and July 11, 1862, and March 3, 1863, The highest amount outstanding at any time was ‘1,49,338,902 on January 30, 1864. This amount was gradually reduced until the act of May 31, 1878, which required the notes to be reissued when redeemed. amount outstanding has remained $346,681,016. Since that time the — 5 — United States notes are protected by a gold reserve of approximately $156,000,000 held in the Treasury. They are full legal tender for all debts, public and private, except duties on imports and interest on the public debt. Since the resumption of specie payments on January 1, 1879, however, these notes have been freely accepted in payment of customs dues and interest, or any other public dues. In the Tariff Act of 1930, collectors of customs may receive them in payment of duties on imports under regulations prescribed by the Secretary of the Treasury. They are redeemable in gold coin and will be received for redemption by the Treasurer of the reserve bank or branch. not less than $1. United States or any Federal United States notes may be issued in any denomination At the present time these notes are currently issued in denominations of $2 and $5, though notes of the denominations of $1, ,t10, ,,O, $50, $100, $500, and $1000 are outstanding. Gold certificates: Gold certificates are issued against deposits of not less than twenty dollars in gold coin with the Treasurer of the United States, deposits of gold bullion or foreign gold coin in sums not less than one thousand dollars with the mints and assay offices, or against available gold in the general fund of the Treasury. Gold certificates may be obtained in payment of obligations of the United States payable in gold, in payment of checks issued by the mints ani assay offices of the United States for deposits of gold bullion and foreign gold coin, in exchange for other forms of United States paper currency, or in the ordinary course of Government payments when paid out by the Treasurer or the Federal reserve banks. These certificates, payable to bearer on demand, are legal tender in payment of all debts and dues, public and private, and will be received by the Treasurer of the United States or by any Federal reserve bank for redemption in gold. 6 Gold certificates may be issued in any denomination not less than $10. The following denominations are now issued and outstanding: $10, $20, $50, $100, $500, $1,000, $5,000, and $10,000. Silver certificates: Silver certificates are issued against deposits of standard silver dollars or available silver dollars in the general fund of the Treasury, and may be obtained in exchange for other forms of United States paper currency or in the ordinary course of Government payments, when available. These certificates are redeemable only in standard silver dollars and may be presented for redemption to the Treasurer of the United States or to any Federal reserve bank or branch. They are not legal tender but are receivable in payment of all public dues and when so received may be reissued. They may be held as lawful reserve by Federal reserve banks. Silver certificates may be issued in the follorTing denominations: $2, $5, $10, $20, $50, and $100. $1, However, there are still outstanding a few certificates of $500 and $1000 denominations issued prior to 1900. At the present time current issues of silver certificates are restricted to the $1 denomination. Treasury notes of 1E90: Treasury notes of 1890 were issued in payment of silver bullion purchased under the act of July 14, 1890, the so—called Sherman Act. The act also provided for the coinage of the silver purchased into standard silver dollars, and the Treasury notes were retired whenever redeemed in silver dollars. As provided in the act of March 14, 1900, those notes are canceled and retired whenever received and no more may be issued. Only a small amount remains in circulation ($1,263,150 on April 30, 1930). Treasury notes of 1890 are legal tender for all debts, public and private, except whore otherwise expressly stipulated in the contract. They are re— deemable in United States gold or in standard silver dollars, at the option — 7 — of the holder, on presentation to the Treasurer of the United States or any Federal reserve bank. These notes were issued in denominations of $1, $2, $5, $10, $20, $50, $100, and $1000. Federal reserve notes: The Federal Reserve Act, approved December 23, 1913, established the Federal Reserve System and provided for an elastic currency in the form of Federal reserve notes. Federal reserve notes are issued at the discretion of the Federal Reserve Board, through the Federal Reserve Agents, for the purpose of making advances to Federal reserve banks to supply currency requirements. Any Federal reserve bank requiring addi— tional notes makes application therefor to its Federal Reserve Agent, who is a representative of the Federal Reserve Board. Such application must be accompanied by a tender of collateral in amount equal to the sum of the Federal reserve notes applied for. This collateral may consist of (1) gold or gold certificates, or (2) paper which has been discounted or purchased in the open market by the Federal reserve banks and which meets certain other requirements as set forth in the Federal Reserve Act, or (3) until March 3, 1933, direct obligations of the United States by a majority vote of the Federal Reserve Board. if so authorized Each Federal reserve bank is required to maintain a reserve in gold of not less than 40 per cent against its Federal reserve notes in actual circulation. The gold redemption fund maintained on deposit in the Treasury of the United States, which must be not less tham—five per cent of the Federal reserve notes issued less the amount of gold and gold certificates held by the Federal Reserve Agent as collateral security4:raay be counted as a part of the required 40 per cent reserve. Federal reserve notes are --obligati-ons of. the-United. States and,are--re—. ceivable on all accounts by all Federal reserve banks, National banks and other member banks. They are also recei4able for all taxes, customs, and — 8 — other public dues. They are redeemable in gold on demand at the Treasury Department, in Tashington, or in gold or lawful money at any Federal reserve bank; but are not lea1 tender. , Federal reserve notes are issued in the following authorized denordna tions: $5, $10, $20, $50, $100, National bank notes: IS $1000, $5000, and $10,000. Any National bank may issu2 rational banl: notes uIS n the deposit of certain prescribed United States bonds bearing the culation privilege in trust 7ith the Treasurer of the United States. The amount issued may not exceed teSar value of the bonds so deposited, nor the amount of the capital stoclo of the issuing bank actually paid in. , : Each banl is required to maintain upon deposit at -_11 times with the Treasurer of the United States lawful money equal to 5 per cent of its note circulation, the funS oI- held and used for redemption purposes. National bank notes are IIligations of the issuing bank, they are not legal tender, but are receiv— able for all public dues, and may be paid opt by the Government for all purposes except interest on the public debt and for redemption of the National currency. They are receivable at par, for any debt or liability, by all National banks. They are redeemable upon demand in lawful money of the United States by the Treasurer of the United States and by the issuing bank. Payments in lawful money on account of redemption may also be effected through the Federal reserve banks and branches. National bank notes are authorized to be issued in denominations of $1, $10, $20, $50, $100, $500, and $1000. Only a comparatively small amount of the $1, $2, $500, and $1,000 notes are outstanding, however, and at the present time these notes are currently issued in denominations $10, $20, $50, and $100. Federal reserve bank notes: Federal reserve bank notes are identical in their leal attributes with National bank notes, except that the amount — 9 — issued is not limited to the paid—in capital stock of the issuing Federal reserve bank. Money has now been deposited to retire all Federal reserve bank notes outstanding; and accordingly such notes are being retired when received by the Treasury or Federal reserve banks. On April 30, 1930, only $3,323,022 of these notes were outstanding in the following denomina— tions: $1, $2, $5, $10, $20, and $50. Money in Circulation The total amount of United States money includes (1) that held in the Treasury, (2) that held in the Federal Reserve Banks, and (3) that otherwise held (in circulation). The principal changes in the total amount of money are occasioned throuch imports and exports of gold, and through issues and retirements of Federal reserve notes. If United States gold coin is im— ported, or if any other gold is imported and deposited in the Treasury or a Federal Reserve Bank, the money stock of the country is increased; on the other hand, if United States gold coin is exported, or if any other gold is withdrawn from the Treasury or a Federal Reserve Bank for export, the money stock is decreased. Federal reserve notes supply the elastic element to the currency system, and now constitute the major item of money in circulation. The money in circulation is that part of the total money not held by the Treasury and the Federal Reserve Banks, and includes money held by the com— mercial banks, as well as money held by individuals and other for hand—to—hand transactions. A comparatively small amount of noney is actually required for such transactions clue to the use of bank checks against deposit credits for business operations. The Treasury Department is frequently asked the question, "How does money get into circulation". There are many ways in which money gets into active circulation or is retired therefrom. Generally speaking, the amount of money in circulation increases or decreases automatically in accordance with the — 10 — demands of business. Changes in currency requirements are reflected in changes in the demand for currency at coEmercial banks and at Federal reserve bank.s. When the public need for currency increases, commercial banks are called upon to meet increased withdrawals, obtaining needed additional cur— rency directly or indirectly from reserve banks. Similarly, when the cur— rency requirements of the public diminish surplus cash is deposited in com— mercial banks and ultimately finds its way back to the remerve banks. Cur— rency may move into and out of the reserve banks chiefly in response to (1) changes in member bank borrowings at Federal reserve banks, and (2) deposits in or withdrawals from member banks reserve accounts at Federal Reserve Banks. Relatively small amounts of currency move into and out of circulation as a result of direct currency transactions between Federal Reserve Banks, or the Treasury, and the public. Reduced—Size ^=ency. Reduction in size and new designs for all paper currency issues were made effective in 1929. The new small—size currency is termed NEW SERIES; the former old—size currency, OLD SERIES. The validity of old series currency outstanding in circulation is not affected by the issue of the new series currency. Old series currency received by the Treasury or Federal Reserve Banks is canceled and retired. For the new series currency the principle of denominational designs has been stricly followed. The 'back designs are uniform for each denomination irrespective of kind; the face designs likewise are characteristic for each denomination as regards the important protective features with only suf— ficient variation in detail to indicate the kind. Five kinds of paper cur— rency are now issued — United States notes, silver certificates, gold certif— icates, Federal reserve notes and National bank notes. The portraits 1 , 41 — 11 — assigned to the faces, the embellishments provided for the backs of the several denominations, the denominations in which each of the five kinds are now issued, together With the color of the Treasury seals are stated below: Denomination $1 $2 $5 $10 $20 $50 $100 $500 $1,000 $5,000 $10,000 Portrait on face Embellishment on back Washington Jefferson Lincoln Hamilton Jackson Grant Franklin McKinley Cleveland Madison Chase Ornate ONE Monticello Lincoln Memorial U.S.Treasury White House U.S.CaDitol Independence Hall OrnsGe FIVE HUNDRED Ornate ONE TMUSAND Ornate FIVE THOUSAND Ornate TEN THOUSAND Silver certificates — blue seals — $1 United States notes — red seals — $2, $5 Gold certificates — yellow seals — $10,$20,$50,$100,$500,$1000, $5000,$10,000 Federal reserve notes — green seals — $5,$10,$20,$50,$100,$500, $1000,$5000,$10,000 National bank notes — brown seals — $5,$10,$20,$50,$100 REPORTING MEMBER BANKS IN NEW YORK CITY DEPOSITS MILLIONS OF DOLLARS RATE OF TURNOVER ( TIMES PER ANNUM 110 100 8000 7000 6000 5000 RATE OF TURNOVER ( Times per Annum ) ! 4000 1 3000 2000 1000 . 1923 1924 1925 1926 1927 I. 1923 1929 1930 1931 1932 REPORTING MEMBER BANKS OUTSIDE NEW YORK CITY RATE OF TURNOVER (TIMES PER ANNUM) DEPOSITS MILLIONS Of DOLLARS 40 20,000 35 15,000T 30 DEPOSITS 25 11.,k •S. mmmmmm 20 10,000 RATE OF TURNOVER ( Times per Annum) 15 10 5000 5 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 REPORTING MEMBER BANKS IN LEADING CITIES DEPOSITS RATE OF TURNOVER ( TIMES PER ANNUM) Ili-IONS Of DOLLARS 55 50 25000 45 ......,0,,, ,..... ... ......„......... , .............. 20000 15000 .. ...,-; 40 .. 35 1 30 11 RATE OF TURNOVER ( Times per Annum 1 _ - 25 20 10000 — 15 10 5000 _ 1 1 1 _1 _ _ 1_ 1 _. 1925 1926 i 1927 1., 1 . 1928 1 _ L. 1 . _ I .__ _ . 1 . 1929 1930 1931 5 0 Prepared by Mr. Amgen March 11, 1933. Rig53141101-i:, -30'4::;14IN1 F014-151.; KY:C}V.NGE ThMIAC 4J Undr authority contained in the Proclamation of the iresicVnt dated *rch e, 193 as extended by the Proslamation dated Larch 3, 1j33, and the authority oontained in the 14-cutive Order of ;harsh 109 lfW„ the ecretary of the Treasury, vith the approval of the President, issues the following rezulations governinc tmrsactions in foreign exohange. 1. All transactions it foreign exchan6e, transfers of credit in any fIrm (ether than credits relating solely to transactionu to be executed wbolly within the United Antes) and transfers of evidences of indebtedness between the Wnited 'tats and any foreign country are noreby rrohibited, except such transactions or transfers as Lay be undertakenm (e) for legitirRte or normal bustaess requirements (b) for reob1r traveling and other r.!ersonal requirements, and (e)for the fulfilnent of eontracts entered into prior to !Arch 6, 13V. 2. Sash Fedc,ral reserve hank i ereby authorised to re2.ulat, super- vise and control all foroic.n exchane transactions ;it in its district. In carryin out vtEth roosiation and supervision, each Federal reserve bank shall be t;.overned by te.ese reulations and the purpose of the linitations rposed above upoT: forein exchanGe traasactions. 2 3. la Oise to .I- hrltiler Piiiistal reserve tank shall be in doubt as ternmeaction cores within, these regulations, elldt 7060/14 INIMEIFIre Utak shall lr.lvise rind consult rtith the Tederal Reserve Ins* of Now Toxic with view of accomplishing substantial uniformity in carnrinc, out thee regulations. 4. :.;ach '4(loral resgrve bank shall obtain daily (or weekly) rtittels reports from 41 dealors in foreign nxclr,nge cerrying on folmeign exchaa6s trfinartctions within its district, vhich re•oort shall show the condition of such dealer at any ivon time. 5. '4ach :Aderal reserve bank shall assemble all nuch reports received from dealers in foretell ezabance within its district and. shall transmit such reports to the T:.ltderal .1..teserve Bank of 7c;,r4is York, *doh bank shall tabulate such reports and =beat such tabulations to the ?edaml Aserve ri.vard in ,;ashincton. 6. If any violation of the requirements of the eYecutive order of March 10, 1933, in respect Of fOroloa exchange transactions, or of these recnintions, shall corns to the attention of nny si'edcral reserve bank, such ANDdstral row)rve bask ibial INIM•diately notify the dealer involved of the alleged violation and *ball 1111,41ately salmi a report of sash violation to the Federal leserve lewd in washincton, forward.ing such inforration exit suggestions P,s it ras.y dem advisable, PM shall in addition trice a. forrrial rocomerviation as to rrhethr orflot such dealer in foreign excl.:Inge oLll bo :Gotsaitted or the re- to engs,co innzq f-:.trther foreign exchange transaction!). ted-pt of sucL report. the Federal Reserve .73oard sM1 consider the alleged violatiou, and, depending won tho matare of tile violPtiort, it tie; -ritbin its discretion, rith the apizoval of t,,a SeeretrArv of the rearary, Avbibit tzede4zAler from spasiiiv: in any further foreigl/ WON. clangs transactions, or it Iroy raptly Vat Le denier 4..4411 riot therec.fter eL.D4cii.z, in any foreign exchange transsetion unless i ch insta:Ice shall igive first submitted the natuare elf the transaction to the i'ederal reserve ..1i have received ti--e ap'xov7,11 of rich 2e1eral 4 siz. reserve bank. 7. ima word giaerS013.° in these regulations Ii3eahs (any •partnershi->„ association or cot oration; ',dfsr,lor iL forsioi newts any •,ereoa eyvaged priAarily or incideatally in the Vosiltent, (1) of buyin.7, selling or dealing in foreiga exchange, or (2) o4 baying. selling or deallw in sesurities taw tlirouk.1i foreign corrosondents, or (3) any laerAon vr:.4) etirries accoveats or eeco.ritiee Trith or for forcipA corres.eats; wid the tern oforeirA exchane0 means cher,.:Ls, arnfts, tills of exce:Ands, cable transfers, or arry for..1 of negoti ble crz.:asigreable instrame,A, 7.tr order used (a) to transfer erotlit or t” order the payment of flats in air Swags sountry, or (b) to transfer credit Lir to order the sispenst af basis within t tite tatcs foreipyi accludtt. Prepared by Mr. Angell Mardi 11, 1933 TRNASUaT lEGULATIONS GOVERNING THE WORTATION OP GCLD COIN, GOLD BULLION AND GOLD CURRYECT. Executive Order dated March. 10, 1937, it was provided: "Until further order, no individual, F,_.rtner— ship, Association, or corporation, including any bpmking institution, shall export or otherwise remove or rermit to be withdrawn from the United ArAes or any place subject to the jurisdiction thereof any gold coin, gold bullion, or gold certificates, except in accordfInce idth regulations prescribed by or ander license issued by the :A)cretry :)f the Treasury." :eursuant t the above authority, the n;ecretary of the Ireasury has issued the following regulations: 1. No gold coin, gold bullion or gold certificates shell be ey,)orted from the United 6tates or from Any -sllace subject ts the juris— diction thereof, nor shall be earmarked for foreign account, unless a license shall have first been obtained from the Federal I. ,fArve Board with the ap,roval of the secretary of the Treasury. Any person desiring to eroort gold coin, eold bullion or gold certificates or to earmark such for foreign account shall make applicption on forms to be supplied by the several reserve banks. ederal such application shall be filed with the Federal reserve bank of the district in which such 7erson has his principal place of business, or where the transaction requiring the shirment originates. Upon the receipt of any such a.mlication, the 'ederal reserve bank so receivin,if; it shall transmit such application to the Federal Reserve Board iu ah ngton, toget er with such information as it may believe necessary or proller, and shall in addition make a - 2formal recommendation as to whether or not in its oninion the exportation or earmarking should be permitted. 3. The application for permi3sion filed with a Federal reserve bank shell be in triplicate. It shall state under oath end in detail the nature of the transaction, the amount invblved, the parties directly or indirectly interested, and such other infornetion as may indicate whether the exportation or earmarking will be compatible with the public interest. F&eral reserve banks shall retain a record copy and shall fornard the original enplication and a duplicate to the Yederal Reserve Board in 4'.ashington. 4, tlon the receipt of any such epplication and the recom- mendetion of the Faderpl reserve bEnk fornarding it, the Pederal Reserve .i;oard, if in its opinion the exportation or earmarking is compatible with the public interest, daall, with the approval of the Secretary of the Treasury, issue a license for such exportation ar earmarking. Amy license when authorized shall be transmitted to the Federal reserve bank from which the aonlication has been recetved and such Federal reserve bank shall deliver such license to the applicant. 5. If the Federal eserve Board shall refuse to grant any license, it shell so advise the rederal reserve bank forwarding the application, and such Aderal reserve brlik Shall notify the applicant. Friedman's ILTSSIA Copies to Dr. Goldenweiser Miss Kate Meyer for :,:adeira School R. C. Engberg D. C. Elliott •-1 L.crt . 1 , , 1. Announcement of general Federal government guarantee of all deposits of banks solvent at date. For insolvent banks the Euarantee to be in ratio of reasonable narket value of assets to deposit liabilities. 2. Guarantee to take specific form of interest free currency loans handled through Recons truc tion Finance Corporati on. Currency to be obtained from Federal reserve banim and if necessary by Treasury printing of unsecured notes. Loans to be made up to fifty per cent of deposit lia- bilities at once. Balance of total pamissable in each case to be made within say three or four weeks of date and after al,praisal of assets by local reserve bank authorities. 3. Guarantee to be accompanied by 'ovision for repayment of loans in currency as and when currency returns to banks in excess of estimated reasonable till requiremnts. 4. Suspend gold exports and internal gold. payments only if reserve position absolutely compels. 7 I") A7e,i-10(As /70,sr- Iva"/1 /z 4.3 &6 in - /1 17 11- )P 2o .21 22- 14t reuk-s 1.30 4,7V 183C1zr /10 /e30 I8L3 • ...10.1.M1111M1.1. So pole, 610 70: 70 (0 a/5--ie:34 --/949•/s3,3 3-31-df -43 SD Jor information on business and banking while - . -eyer was ments, and their effects; open Ziles market policy; prices, money rates. and articles throwing light on of - nternational or i ustrian banks The er:aan debt nego- paTdents . -lso data on operti ris of ettlu_ents and standstill and -Laerican and ,Jritish creditors Federal "eserve •-greement between 1933). :lerman tituation/ in 1931 on the , and reports received by U-overnor ..eyer of the on Uermany, 2rance and iiussia. tate on zovelnor supplementary files also contain reports received by , -arrison of the -32 n:. .Y. Federal leserve communication' from tie ...epartment of tiations ( 1931) and reparations -)ank current N.Y. lso/Federal "eserve Dam_ reports to lederal tieserve i3oard and office correspondence and reports nd of , -old move- 33. tiscussions see also office correspondence and me.ioranda the iederal Aleserve .oard problems. credit policy overnor of the -Lederal Ileserve .oard see the 4:eaeral "eserve liulletins for 1930-31-32- In supplementary conditions and J2ederal eserve iJoard _ee Supplementary files for letters on confirmation of appointlient. and telegrams of cona.ratulati n
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