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..... . X-3795 X-3779 superseding §. Q ~ Q I !. Q. ~ }J)OPTED BY FEDERAL RESERVE BOARD AT MEETING JULY 30, 1923 (.Alrending action of June 27, 1923.) R J!i SUBJECT: CU B A N A GE N C I E S WHEREAS, the United States Government, by virtue of the so-called Pla.tt amendment ha.s entered into relations with Cuba. ·nhich it does not ha.ve with a.ny other foreign country, especially in matters of finance a.nd currency, the currency of the United Sta. te s having been ma.de legal tender by Cuba.; WHEREAS, the Federal Reserve Board is of the opinion that the esta.blishtrent of an agency in Cuba. is desirable a.s a. means of sta.bilizing banking conditions and furnishing an adequa.te supply of clea.n currency; WHEREAS, the President of the United Sta.tes and the State Department ha:ve advised this Boa.rd tha.t it is important tha.t such an a.gency should be established; WHEREAS, the Federal Reserve Bank of .Atlanta. and the Federal Reserve :Ea.nk of Boston ha.ve ea.ch petitioned the Federal Reserve B.oa.rd for a.uthori ty to establish an a.gency in Ha:va:na., Cuba., for the purpose of conducting operations permitted under Se ction 14 of the Federal Reserve Act; WHEBEAS, the Federal Reserve Bank of Boster.. desires to establish such an a.gency priiDB.rily for the purpose of buying and selling ca.ble transfers and buying, selling and collecting bankers 1 a.cceptances and l:lills of exchange bearing satisfa.ctory ba.nk: endorsements; WHEREAS, a. substantial portion of the currency now in circula.tion in Cuba. consists of Federa.l Reserve notes of the Federa.l Reserve :Ba.nk: of .Atla.nta.; and it is feared that the est~.blishment of ari agency of another Federal Reserve ?ank: in Cuba might re.sul t in the retirement of such notes from circulation; and the Federa.l Reserve Bank of .Atlanta desires to establish an a.gency in Cuba primarily in order that it rre.y rm.inta.in the circula.tion of its Federal Reserve notes in Cuba.j WHEREAS, the Federal Reserve Bank of Boston does not desire to put its Federa.l Reserve notes in c1rcula.tion in Cuba. but is willing, if authorized to establish such an agency, to preserve a.s fa.r as possible the circulation in Cuba. of Federal Reserve notes issued through the Federal Reserve :Bank of Atlanta.; BE IT RESOLVED BY THE FEDERAL RESERVE :DO.AIJJ, that the c:pplica.tions of the Federal Reserve Bank of .Atlanta. and tt"e Federal Reserve Bank of Boston for permission to esta.blish such agancies a.re hereby granted on " . -2- X-3795 .:-":' (}\ ·, ,-J the following terms and conditions: (1) The Federal Reserve Bank of Atlanta. and the Federal Reserve Bank of Boston are each authorized to esta.blish an a.gency in Havana., Cuba., and through such agency to b.ly and sell cable transfers; buy, sell and collect prime bankers' a.cceptances and prime bills of exchange, which acceptances and bills are payable in dollars, arise out of a.ctua.l import or export tra.nsa.ction.~. bea.r the signatures of two or rr.ore responsible parties, bea.r a. sa:t[sfa.ctory bank endorsement, ha.ve not rr..ore than 90 da.ys to run, exclusive of days of gra.ce, and are secured at the tima of purchase by shipping documents evidencing the actual import or export and the a.ctual sale of goods and conveying or securing title to such goodsj and to exercise only such incidental powers as shall be necessa.ry to the exercise of the above powers. The tertn 11bills 11 as hereinafter used sha.ll mean ca.ble transfers, bankers t acceptances and bills of exchange of the kinds described in this para.g;ra.ph. (2) The Federal Reserve Bank of Atlanta. S!L\LL NOT BUY OR SELL ANY CABLE TRANSFERS EXCEPT AT THE REQUEST OF THE FEDERAL Iffi:SERVE :B.ANK OF BOSTON AS PROVIDED IN PARAGRAPH J HEREOF, A..lU) shall not purchase, sell or collect a.ny bills in Cuba. except such a.s origina.te in or a.re dra.wn upon banks or other drawees, in the Sixth Federa.l Reserve Districtj and shall purchase no other bills nor purchase or sell any ca.ble transfers, e.x:ceptupon the request of, and for the account of 1 the Federa.l Reserve Bank of Boston. (3) The Federal Reserve Bank of Boston shall not pa.y out any cm:rency in Cuba, except as hereina.fter provided, a.nd whenever bills or CABLE TRANSFERS are offered for sale to its Eavana. Agency and the sellers request payment in Federal Reserve notes or other cu't'rency 1 the Federal Reserve Bank of :Boston shall request the Federal Reserve Bank of Atla.nta to purchase such bills or CABLE TRANSFERS for it and immediately pa.y for them with Federal Reserve notes issued through the Federa.l Reserve Ba.nk of Atlanta. or other currency. The Federal Reserve Bank of Atla.nta. sha.ll comply with all such requests and shall make imrr.ed ia.te payment , and sha.ll imrr.edia.tely resell such ca.ble tra.nsfers or bills to the F~dera.l Heserve Bank of Boston at cost and without recourse. If the Faderal heserve Bank of Atlanta. shall fail to purcha.se such bills o:r ca:ole transfers proiT!PtlY for the Federa.l Mserve Bank of Boston or shall not ha:ve available in Havana a. sufficient supply of currency, the Federal Reserve Bank of Boston may itself purchase such bills and pay for ti1;am with its own Federal Reserve notes. In making sa.les of cable tr.;nafers and bills of exchange where currency i:> tendered in pa¥J11Snt 1 tl.-.8 F0deral Reserve Bank of Boston shall require the pu.-rchasing banks to mal". e the currency payments to the agency of the F~deral Reserve Bank of Atlanta. for credit to its account. All settlements between the a.gencies shall be made at the request of the creditor bank by the hea.d offices t~~rough the Gold Settlement :Fund. Neither bank shall make any direct exchan;scs of currency in Cuba.• (4) The establishment and opera.tion of such o.gencies, and the exercise '~ ... -3- X- 3795 of all the above powars through such agencies, shall be subject to such changes a.nd such further rules and regulations as the Federal Reserve Boa.rd w.a.y prescribe from time to time. (5) T.he Federal Reserve Board expressly reserves the ri~ t to revoke its consent a.t a.ny time to the continuance of such a.g:mcies, to require the discontinua.nce of such agencies OR TO .AUTHORIZE THE ESTABLISBiv!ENT OF NEW .AGENCIES whenever in its discretion it considers it desirable to do so. ( ,~. 3
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