Full text of Marriner S. Eccles Papers : Memorandum of General Principles Governing the Operations of Reserve Bank Under Authority Granted by Wire of March 7, from Secretary of Treasury in Connection with the Program of Dealing with the Property of Evacuees from Pacific Coast Military Areas, Box 38, Folder 17, Item 7

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MEMORANDUM OF GENERAL PRINCIPLES GOVERNING THE OPERATIONS
OF RESERVE BARK UNDER AUTHORITY GRANTED BY WIRE OF MARCH 7
FROM SECRETARY OF TREASURY IN CONNECTION WITH THE PROGRAM
OF DEALING WITH THE PROPERTY OF EVACUEES FROM
PACIFIC COAST MILITARY AREAS
(1) The controlling principles to be followed are those outlined in the "Suggested Program for the Federal Reserve Bank of San
Francisco and Other Public Agencies to Deal with Property of Evacuees
of Pacific Coast Military Areas" referred to in the telegram of March 7
from the Secretary of the Treasury delegating authority to the Federal
Reserve Bank of San Francisco.
(2) All available sources, including the press, radio, appropriate federal agencies, banking institutions etc* will be employed
by the Federal Reserve Bank of San Francisco in the dissemination of
information to evacuees with respect to the protection of their property
interests. The evacuees will be encouraged to consult with the institutions with which they have been dealing and in which they have confidence, such as their local banking connections, attorneys, real estate
agents, etc. in order to obtain information and work out satisfactory
arrangements with respect to the disposition or maintenance of their
property holdings. It will be made clear to the evacuees that the services of the Federal Reserve Bank and its branches and offices are freely
available to them to see that they are not taken advantage of. Where
the evacuee is unable to make other arrangements satisfactory to him, the
Federal Reserve Bank of San Francisco will undertake to act as agent for
the evacuee, reserving the right to decline to act if no useful purpose
will be served.
(3) It is understood that no decision has been made that evacuees may not return after the war. Accordingly, while emphasis will be
on liquidation, the evacuee may retain the ownership of property which
he leaves behind, making appropriate arrangements with the Federal Reserve
Bank or otherwise for its care and preservation.
(4.) In addition to its branches in Los Angeles, Seattle, and
Portland, the Federal Reserve Bank expects to establish offices in such
other communities as may be necessary to furnish adequate service to the
evacuees. It is recognized, however, that the Federal Reserve Bank may,
in cases where it has accepted a power of attorney to act on behalf of
an evacuee, appoint as its agent any bank or other appropriate agency or
person which it may designate.
(5) It is understood that in protecting evacuees from unscrupulous action on the part of creditors, the Federal Reserve Bank may invoke
the freezing powers and the other powers in Section 5(b) of the Trading with
the Enemy Act. Thus evacuees threatened by creditors will be encouraged
to come to the Federal Reserve offices and discuss their problems. These
offices will be prepared to call in the creditor and attempt to negotiate




a reasonable settlement. If it appears that the creditor is not willing
to deal fairly, the Federal Reserve office will make use of its delegated
powers. It will block all or the relevant part of the evacuee's assets
and freeze them against any attempt of the creditor to seize or attach
them. The creditor will be granted permission to pursue his remedies
only when the Federal Reserve office is satisfied that adequate protection has been accorded the evacuee. Usually the knowledge that the
Federal Reserve office is prepared to act will be more than adequate to
remedy the situation.
(6) It is understood in carrying out this program that the Federal
Reserve Bank of San Francisco will not exercise the powers under Section 5(b)
of Trading with the Enemy Act as Amended by Title III of First War Powers
Act to vest title to any alien property without prior consultation and agreement of the Treasury Department.




AT'

MEMORANDUM OF QENSRAL PRINCIPLES QOVSBNINQ THE OPERATIONS
OF RESERVE BANK UNDER AUTHORITY QRAHTSD BT WS& 0? JANUARY 7
FROM SECRETARY OF TREASURY IN CONNECTION WITH THE PROGRAM
OF DEALING KITH THE PROPERTY OF gyACUSES FROM
PACIFIC COAST MILITARY AREAS
(1) All actions will be taken in the light of the administrations express policy of giving every protection to evacuees and affording them all assistance possible in the handling of their affairs.
(2) Fedez-al Reserve Bank of San Francisco will utilize every
available source, such as the press, radio, federal agencies, banking
institutions, etc., in the disseiaination of information which will be
helpful to evacuee,
(3) Broadly, the program conteinplates suggesting to affected
persons that, if properties cannot be satisfactorily disposed of by sale
or lease prior to evacuation, power of attorney be vested with someone
of the evacuee's own selection.
If the evacuee desires to do so, Federal Reserve Bank of
San Francisco will itself give consideration to the acceptance of a
power of attorney, but it is understood that the bank reserves the right
to review the situation of the evacuee and decline such service if, in
its judgment, no useful purpose could be served by the acceptance of
such power of attorney.
(5) The program at present contemplates that evacuees may
possibly return after the duration of the war and that, therefore, no
objection will be raised, if the circumstances seem to warrant it, to
the evacuee retaining properties and, in connection therewith, making
arrangements for their care and preservation,
(6) In addition to its presently existing branches at Los
Angeles, Seattle, and Portland, the Reserve Bank expects and stands
ready to establish offices or have representatives located in other
communities if conditions appear to warrant.
(7) The Federal Reserve Bank of San Francisco understands as
one of its aims the protection of evacuees from unscrupulous action on
the part of creditors and, in this connection, that it has the right as
a last resort to invoke the freezing power as an aid to this end,
(8) Federal Reserve Bank of San Francisco recognizes that the
War Department, through the Western Defense Command and Fourth Army
(General DevVitt) has over-all supervision of the entire program and that
its efforts should be directed to be of the utmost assistance to the
n&litary authorities.




(9) It is the understanding of the Federal Reserve Bank that
it will have available to it and proper liaison will be established with
other federal agencies, such as the Department of Agriculture, Federal
Security Ado&nistration, Farm Credit Administration, etc.




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