The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
660 II. P. G. HARDING. GOVIRNOR illx,QPI'Ili'O MEMUJIS DAVID F. HOUiTON SICRDAIY er THI TRIAIUIIT CHAIRIIAII FEDERAL RESERVE BOARD JOHN SKELTON WILLIAMS COIIPTIOLLII OF THE CURRINCY ALBERT STRAUSS. YlCI GOVIRN08 ADOLPH C. IIILLER CHARLES S. HAll LIN HENRY A. IIOEHLENPAH W. T. CHAPIIAN. SICUTAIY R. G. EIIERSON, ASiliTANT SaCRITART ADDRESS REPL. Y TO W.JI.IIILAY. FIICAL A81NT WASHINGTON FEDERAL RESERVE BOARD July 13., 1920. X-1975 Subject: Proposed Legislation Permitting Establishment of Branches of Foreign Banks- De3.r Sir:I enclose here;1ith for your information copy of a letter from the Secretary of the Treasury relating to a resolution which ':t3.s adopted at the Second Pan-American Financial Conference held here in January last. 7ill you kindly advise·the Board of the views of your Executive Committee., fin-st., as to the propriety of the proposed legislation and_. second_, as to the possibility of its enactment by the r.agislatures of those St3.tes in your District in qhich foreign banks would be likely to establish branches. Very truly yours., Enclosure •. Governor. To Chairmen of all F.R • Banks • Copies to all Governors. 661 July 12., 1920. X-1975 a My dear Governor: On January 23, 1920 the Second Pan American Financial Conference adopted the following resolution: · :JHEREAS Banks, both National and State, in the United States, have established branches in various La. tin Americ:m count.ries; and WHEREAS, Restrictions exist under the laws of various States of the United States, ~7hich in effect prevent the operation of branches of foreign banks ~ithin their jurisdiction; THEREFORE, 7/e recommend that the legislation in such States be so modified as to permit the establis~~ent of branches of banks of Latin-American countries, under proper regulations, so as to secure equality of treatment. The Central Executive Council of the Inter-American High Commission., the body \7hich is charged ~ith carrying into effect the recommendations of the First and Second Pan American Financial Conferences, held a meeting on June 14, 1920 in my office, ;tith a view to consider the action to be taken on each of the resolutions adopted at the Financial Conference. It \7as suggested that the resolution on the establishment of branches of foreign banks might be transmitted to the Governors of the severl.l States ·.vi th a vie'ii to its consideration by the Legislatures of those States having a co~~ercial interest in the matter. I may mention in this connection that a bill 'iBs recently passed by the Legislature of Ne·,v York, but vetoed by the Governor, aiming to permit the establishment of branches of.foreign bl.nks. A copy of that bill is attached, as well as a copy o~ the communication from the Superintendent of Banks of the State of New York, upon which the Governor based his veto. Before taking any action I should like to draw the natter to the attention of the Federal Reserve Board and to request the Beard to make J.D. inqui~y into the X-1975 • • a. 662 -2- merits of the proposal ~nd the best method of bringing about its ~doption if thought desirable. If the suggestion is agreeable to the Bo~rd~ I should be pleased to have the benefit of the results of such inquiry together with the Board's recommendations. It is a matter of far reaching import~nce~ raising~ as it ~st~ the question of the opara.tions of banks in sta.tes of the United Shtes other than those in which .they have been organized~ and for that reason I think the question should first receive the C3.reful study of such competent authority as the Federal Reserve Board. Sineerely yours1 (Signed) D. F. HOUSTON. Secretary. Honora. bl e W. P. G. larding, Governor~ Federal Reserve washington1 D.C. Board~
@FedFRASER