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657 BOARD OF GOVERNORS X-9604 OF THE FEDERAL RESERVE SYSTEM WASHINGTON address o f f i c i a l c o r r e s p o n d e n c e to June 4, 1936. Dear Sir; There is inclosed, for your information, a copy of a letter dated May 26, 1936, to Mr. Oliver P. Wheeler, Assistant Federal Reserve Agent at the Federal Reserve Bank of San Francisco, in reply to a question submitted to him with regard to the Board's Regulation T, Extension and Maintenance of Credit by Brokers, Dealers, and Members of National Securities Exchanges. Very truly yours S. R. Carpenter, Assistant Secretary. Inclosure. TO ALL FEDERAL RESERVE AGENTS. the board X-9604-a May 26 j, 1936. Mr. Oliver P. Wheeler, Assistant Federal Reserve Agent, Federal Reserve Bank of San Francisco, San Francisco, California. Dear Mr. Wheeler: This refers to your letter of May 12, 1936, inclosing a copy of a letter from Messrs. , , and , sub- mitting the following case under Regulation T: The account of a customer with a broker is restricted. The customer sells 100 shares of stock realizing the sum of #1000 after taxes and commissions. On the same day he asks the broker to pay him from the account the sum of $450. Would this combination of transactions effected on the same day result in a net withdrawal from the account under section 4(d) of the Regulation? The net effect of such a combination of transactions made on the same day would be a "net withdrawal" as defined in section 2(l) of Regulation T, since there would occur a payment from the account of money ($450) and delivery of registered securities having an aggregate current market value ($1000), together exceeding the amount of money ($1000) paid into the account on the same day. Very truly yours, (Signed) Chester Morrill Chester Morrill, Secretary.
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