Full text of Records of the Federal Reserve System, Record Group 82 : Banking Holiday (Mar 10 1933 - 1939), Box 2158, Folder 2

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Reproduced from the Unclassified I Declassified Holdings of the National Archives

Form F. R. 567

END

SHEET

KIND OF MATERIAL OR NUMBER

470.

NAME OR SUBJECT

Banking Holiday

DATES ( I n c l u s i v e )

Mar 10 1933 - 1939

PART NUMBER

Reproduced from the Unclassified I Declassified Holdings of the National Archives

f w j n n B s * ;?

OCT SS 1899

October 20, 1939*
Mr* Ira Clerk, First Vic© President,
Federal Reserve Bank of San Francisco,
Sen Francisco, Oalifomla*
Dear Mr* ClerkI

Xf is tru© that the procedure suggested in your letter of
October 16 regarding the issuance of licenses to State banks upon
admission to membership in the System would simplify the operation,
but the procedure might also prove embarrassing to the Keserve banks*
You refer in your letter to the procedure in connection with
the issuance of licenses to newly organised national bonks. There is
an important distinction, however, between the procedure in the ease
of national banks and State banks being admitted to membership In
System. In the case of national banks, the recosmendation for the
issuance of a license is made by the Comptroller o f the Currency, who
«l®o approves the organisation of the national bank* In the case of
State banks, however, the recommendation for the issuance of a license
is made by a Federal Reserve bank while admission of the State bank
to membership depends upon action by the Board of Governors* It might
prove embarrassing, therefore, if, as you suggest, the Board should
transalt to the Secretary of the Treasury a favorable recommendatl on
of a Reserve bank for the issuance of a license and the Board stolid
later, for one reason or another, disapprove the application for men**
bership* It i® felt, therefore, that the recoataendation of a Reserve
bank to the Secretary of the Treasury regarding the issuance of a license
should follow, rather thm precede, approval of an application for men*
bership.
A such simpler procedure would bo one which was suggested
informally to the Treasury by the Board’s staff some ti$* ago* The
suggestion was aade that the Federal Reserve banks be given blanket
authorization to issue licenses to State banks effective upon a&aission
to membership in the System* This suggestion was regarded favorably
wh«n made, but as yet nothing has come of it* I am hopeful, however,
that eventually such blanket authorization may be grafted*

Very truly yours,

Reproduced from the Unclassified I Declassified Holdings of the National Archives

MR. PAULGER:
I have discusfeed this with Mr. Siaead
over the phone. Eel agrees in general, but
I think he should initial it before it goes
out.
'

R.F.L.

Reproduced from the Unclassified / Declassified Holdings of the National Archives

nco m

F e d e r a l R e s e r v e B a n k o f S a n F r a n c ir c o

Tttuea m e n a

O C T 2 3 193P

October 16, 1939

Mr, Leo H. Paulger,
Chief, Division of Examinations,
Board of Governors of the Federal Reserve System,
Washington, D. C.
Dear Mr. Paulger:
When a charter is about to be granted to a national bank
the Secretary of the Treasury telegraphs the Reserve Bank as follows:
’Having been advised by the Comptroller of the Currency that
’
____________ ___
__
he has approved an application to organize *
_____
f to be located a t ______ and that he recom
mends issuance to said bank of a license to transact normal
business as soon as its organization has been completed, I
hereby direct the Federal Reserve Bank of
.
acting as my designated agent, to issue such license, in the
form heretofore prescribed by me, to transact normal banking
business upon receipt of advice from the Comptroller of the
Currency that he has issued a certificate of authority to
begin businesss to the ____
.”
In connection with our recent correspondence, it occurs to
us that, if the Board of Governors would notify the Secretary of the
Treasury of a pending membership at the time it receives the applicant’s
examination report and recommendation of the Federal Reserve Bank, the
same procedure could be followed by the Secretary in notifying the
Reserve Banks to issue a license as that followed when he is notified
by the Comptroller of the granting of a national charter.
This procedure would simplify the operation and eliminate
the obstacles heretofore discussed. Please let us know what you decide.

Yours very truly,

First Vice President.

Reproduced from the Unclassified I DScfaliltlfcTHbldlfi'g's of the- National Archives

Fe d e r a i , R e s e r v e
O F

B a xii
1

O U iV E L A N I)

October 16, 1939

Miss Elsie Rackstraw, Librarian
Board of Governors of the
Federal Reserve System
Washington, D. C.

.,, _ ;t
/7 /

Dear Elsie:
Thank you very, very much for all the
trouble you have gone to in connection with
our index.
At least I know that I shall
have to do it myself.
As so much of the
material seems obsolete, perhaps I can make
the job a much smaller one than it looked to
be at first.
Best regards,

Sincerely yours,

C:S

Librarian

Reproduced from the Unclassified I Declassified Holdings of the National Archives

0«toba* 11, 1919.

Miaa Alta Claflin,
fadafal Hasarre Bunk of Olairalaiid.,
0X«?*la»4, Ohio.
Daar Altai

i ~

SSSKjLittos
1*14 on my daak for aavaral
daya awaiting a ohanoa for ma to go dona to our filaa
and laaf® aoaatMag of tii# altuatloa «kth 9 « f m « «
to tfca aubjacta uadar Banking Holiday of 1953. My
flrat lattar to you followed a talapfcona coararaatlon
wltH fllaa* la which Xlaa Foappal axplalnad that thara
waa a braakdown of aubjaota undar Banking Holiday.
Till*, of touraa* ti trua, but tha braakdown la not golag to ba haiffai for your inda*. for inatanca, tfcara
1» a foliar **?raaaury ragulatlona ralaaaad to tha
pra#«*t and aaothar *Traaaury ragulatlona not ralaaaad
to tfea praaa*. Aaothar raada #0©id withdrawal whioh
lneludaa othar material than wlraa. la all tfaara ara
about tea of ttieae folder*.

It appeara that the vlras ara alao scattered
through tha filaa uadar atibjeot, but theae aubjacta
ara got traced, ao that It would ba difficult. o draw
ttha* {tha wi rea and tba aubjacta) together to make a
H a t . It la, of oouraa, vary aaay for tba filaa to
tafca ©ara of any Individual request. It la l&teraatl»g to aaa tliat there ara no entries fra» 1984 to 1939*
«U
I L«li. fta-raa that it la a *aty Inactive flla. - l au*Il
ming up th© whole plan, It aeeaa to aa that it la lapracticable for ua to try to give you help by aending
a paraon to work In our filaa*
I am very aorry, and I hopa that now you
have got Into tha Job it nay ba working out nora aaally
than you expected.
Sincerely youra*

y\,

/7‘£ / 3 *'
<
?’

”

K p o u e io ieu c a s e / e i s m an i m su me iducmiuuvcs
e r a c a rm n n i s m a u c a s e u u y i N unn

j~REC1 T*IM
e

w
Fe d e r a l R e s e r v e
O F

OCT 1 1 1939

Ba x h

C lJ E V E L A J V D

September 28 , 1939

Miss Elsie Rackstraw, librarian
Board of Governors of the
Federal Reserve System
Wa shingt on, D. C.
Dear Elsie:
Thank you very, much indeed for all your trouble/
in connection with the index to the Board’ fransrs
wires.
I hardly know what to say as to the list in your
Files Department.
Our set includes also some Trea
sury Department wires, and it looks as if your Files
Department list might cover what I need.
But I*m
afraid it is too much of a task to have done gratis,
and I have no authority to offer payment for the
work of copying.
Could you possibly estimate how big a job it
would be to copy off the list which would include
the period covered by "Trans. 1558-1865?"
Or, is
the list in such form that it could be loaned to us
for a very short time in order to copy here?
Sorry to trouble you so much.
Best regards,

Sincerely yours,

Librarian

.feixinpwa e e f
inH
SH TLi HO£

A-

toj.

"/<

IUI U CU U a I I UI U u o
III 1 M a O I C c a amcu Iviiy u uch uiu n w v u
ijuuo i i u uii i u w

Hr* Ira Clerk, First Tic® President,
Federal Reserve Bank of San t*a&*lseo#
Saa Francisco, California.

Dear My# Clerks
Eeferenee Is mads to our recent exchange of correspond- /

ea«e with regard to the matter of requiring a State bank applying
for membership in ti s Federal Beserve % s t e m to file an application
t
with the Federal Reserve hank: for the issuance of a license by the
Secretary of the treasury to perform the usual an* noxmal basking
functions*
Xm addition to the provisions of law and the Executive
Order referred to in yourlst ter of August a§*/atts»ticm Is called
to the Board*s telegram, Trims* 1804, dated lay 24, 1935, relating
to the licensing of State banks applying for membership in the Fed
eral teserve System. this telegram, a eopp of which you undoubted
ly hare in your files, is as follows:
•State bank upon admission to membership in Federal Is*
serve System must secure license from the Secretaiy of
Treasury to perfom all usual ami normal banking func
tions except as otherwise prohibited*. Understand Fed
eral Reserve Board only admitting to membership suefc
banks able to operate without restriction. Licsnse .will
be issued upon your recommendation.*
9s have discussed the matter informally with representa
tives of tbs Treasury Department, and ws understand that the Treas
ury doss not Insist that State banks applying for membership in the
Systea shall make application for a license. Vs understand that it
is sot the pratties of other Federal Reserve banks to require the
formality of an application is sueh a situation and that the Comp
troller of the Currency does not require the filing of an applica
tion for a lieenss in the ease of new national banks or Stats barks
converting into national banks* Xm so far as any technicalities may
be involved, I think it oan be properly argued that an application

n / 7 ^ / .*,;
7 / , . I ;/

/ /r
'

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Mr* Ira Clerk
for membership Is Implicitly an application for a license. The
Treasury has advised m that* la view of mil the circumstances, it
appears unnecessary to require a bank applying for membership to
make a separate application for a license, and the matter has been
called to your attention in order that you may consider the elimina
tion of what appears to be an unnecessary formality*

Teiy truly yours $

Leo H. Paulger,
Chieft Division of Examinations

Reproduced from the Unclassified I Declassified Holdings of the National Archives

* ^ . SEP KB 1939
Somr.B.131

FEDERAL RESERVE SYSTEM

Office

w JARD OF GOVERNORS
or THC

C o r r e s p o n d e n c e

lll.a_________________________

Pm m

Mr. Cherry____________________

SsnliMibsr 23« 1959*
Snhjact; Treasury llcenalng of State m a m W
basks - inquiry of Federal Re________ serve Bank of San g ^ e i g o o * ---

Cana
>/tc
In Mr. Paulger’s letter of August 21* 1939/to the Fed
eral Reserve Bank of San Francisco, the question wasr%ai
raised as to
that bank’s procedure in requiring a State bank applying for membership in the Federal Reserve System to file an application with
the Federal Reserve bank for the issuance of a license by the Sec
retary of the Treasury to perform the usual and normal banking func
tions. In view of Mr. Clerk’s reply of Augug&_M*^9-3&/1 took the
matter up informally with Mr. Don Sherbondy, an attorney in the Gen
eral Counsel’s office of the Treasury. He advised me that it would
be very unfortunate to raise any question at this time as to the
right of the Secretary of the Treasury to require licenses for State
banks upon admission to membership in the System. I explained to
him that this was not the case, but that the problem at present was
merely a matter of detail in the procedure. Be advised me that if
it should become necessary to write a letter on the subject he would
appreciate it if we could submit such letter to him for their perusal
before it went out. Accordingly, a draft of a letter was prepared
which I delivered to Mr. Sherbondy, together with the file on the sub
ject.
The attached memorandum from Mr. Duffield of the Treasury
to Mr* Paulger sets forth the Treasury’s position with regard to this
matter.

Attachment

^yy

Reproduced from the Unclassified I Declassified Holdings of the National Archives

RC
E ’bra F L S S C IO
X E
E T N

SEP 2 6 1939

<■
&
'0 %

MR. SH1EBOHDY

R p f u e f o ^ n l s f f j/
ebled rmucasfe

o t eN t o a A c i e
f h afnl r h v s

-riE-P

■i
'
f

MEMORANDUM
iB
iiiiffiw3TirJarggs
i

TO:

September 21, 1939

Hr, Paulger

roofs Mr* Duffield

am suggesting revisions which are written in at the

bottom of the first page and the top of the second page of
the attached letter*

The Treasury, it seems to me, should

take" the responsibility for suggesting aagr changes in the
reserve banks* Treasury agency activities, and that is the
reason I have inserted the clause saying that the Treasiay
advises the bank through you of the permissibility of the
change*

Reproduced from the Unclassified I Declassified Holdings of the National Archives

LAs-Ls>~<.

,
T

My, I n Clerk, fly«% Tie# President,
Federal Reaerv© Bank of San Francisco,
San Franciaco, California.
Dear Mr* ClarkI
Reference is made to our recent exchange of correspond
ence with regard to tha aiatter of requiring a Stata bank applying
for membership in tha federal Reserve System to file as application
with tha federal Reserve hank for tha 1aauance of a licence by the
Secretaiy of the Treaaury to perfoim the usual and normal banking
functions*
In addition to the provisions of law and tha Executive
Order referred to In your letter of August 26, attention le called
to the Board*• telegram, Trans* 1804, dated May £4* 1939+ relating
to the lioenslag of State banka applying for membership in tha fed
eral Reserve System, This telegram, a copy of which you undoubted
ly have in your files, la aa foilowe*
"State bank upon admission to membership in federal Reaarre System must secure license from the Secretary of
Traaauxy to perform all usual and normal banking func
tions except aa otherwise prohibited# Understand fed**
eral Reserve Board only admitting to membership auch
banks able to operate without reetriction. License will
be Issued upon your recommendation**
fa have discussed tha matter informally with representa
tives of the Treasury Department, and wa understand that the Treas
ury does not insist that State banks apply lag for membership in tha
System shall make application for a license, le understand that it
is not the practice of other federal Reserve banks to require the
formality of an application is such a situation and that the Comp
troller of the Currency does not require the filing of an applica
tion for a license in the case of new national banks or State barks
converting into national banks. In so far as -any technicalities may
be involved, I think it can be properly argued that an application
for membership is Implicitly an application for a license, 'in view

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Mr, Ira Clerk
of all the elreumstancos,(lt appear* tarn*oesaary to require a bask
applying for membership to make
application for a license, and
tha matter has been called to your attention in order that you may
consider the elimination of what appears to be an unnecessary formality.
Vexy truly yours,

Lao E. Paulger*
Chief, Division of Examinations.

AKCimam

Reproduced from the Unclassified I Declassified Holdings of the National Archives

> \/V

SEP? 5
A

8mpt«ab«r 2S, I f 89*

Mias Alt* GUtti#*
M f f i X l i M W i B M k of Gloiroload,
@u*oi«&&f omo.
t
Sit; Alta*

I as •O tbft* fo«up lotto* ofijogtqgNSLlX^
Txy
faaa aot fend « a m proapt roply.
litfa vtmrme* to t*o job tbat you b*w« to
do, t I k y o inquired about tfeo Bo«*d#* offloop# «a* I
m
fiaft tbet tfeoi* 1« »© iado* tbat would bo bolpful to
pm* ® » o*rt*al filoo bao a taottdowa of aufejoeto
«a*«r Barillas Holiday of 1939, wblob iadudaa tolo•MBS f*o» tbo Boa*d. X b**o oo&oidoarod* too, tHo
imdax to tlxo trmmiTf publication "XtaoinwBt* aad
8tat«M&ta Foytaiaiag to t&o Bsakiai; fcaargaucy*, bat
* a* afraid tbat tbi*, too* will bo of m pajrtioala*
bolp* oaoopt •• it *ay »u««o»t aubjoot boadiaa**
. aa i s w oorry toil I
I
ao ouggootioaa,
a»d X do not «Kvy you tbi* job* Howovor* I &opo that
.
it 1« aot aa bod •« it appoara o® tbo faoo of it.

I I tb ay good wiabat, X «
Hae«n2| | W » ,

KLalo Raokatraw,
Librarian.
SK*bab

Reproduced from the Unclassified I Declassified Holdings ot tne National Arcmves

F«mF.S.131

_ JA R O O F G O V E R N O R S

or THK

FEDERAL RESERVE SYSTEM

Office

C o r r e s p o n d e n c e

x y y o * . ______

i » £s»«fi>g.«.. »
»

Subject-Procedure foiylieensin&fiaeiiiber

_______G-eneral Files__________ _

" banks by the Secretary'of the
_______ Treasury.____________________

Mr. ^Cherry_________________

Carded
State member bank
After a State bask makes application for membership in the
Federal Reserve System, the Federal Reserve bank either writes or
wires to the Secretary of the Treasury recommending that a license
be issued to the bank in question when it has been admitted to member
ship in the Federal Reserve System. This telegram or letter Is referred
to the Assistant Chief National Bank Examiner in the office of the Comp
troller of the Currency, where a letter is prepared for the signature of
the acting Secretary of the Treasury addressed to the Federal Reserve
bank directing such bank to issue a license to the bank in question "if
and when all conditions of membership have been completed and the bank
has been admitted to the Federal Reserve System”. Sample copies of a
telegram and letter relating to this procedure are attached hereto.
national bank
After an application has been received for the organization
of a new national bank or the conversion of a State bank into a
national bank, the Comptroller^ office prepares a letter for the
signature of the acting Secretary of the Treasury addressed to the'
appropriate Federal Reserve bank directing the Federal Reserve bank to
issue a license to the new national bank or the converting bank "upon
receipt of advice from the Comptroller of the Currency that he has
issued a certificate of authority to begin business”. There is at
tached hereto a sample copy of the letter relating to this procedure.
I
discussed the above procedures with Mr. Clarence F. Smith,
Assistant Chief National Bank Examiner, and he stated that so far as
he knew, there was no requirement that a bank make application for a
license; that the procedure was automatic. In other words, if the
Comptroller was going to issue a certificate of authority for a new
national bank or converting bank to commence business such bank would
be entitled to a license without requesting it.

f t '
Attachments 2

Reproduced from the Unclassified I Declassified Holdings of the National Archives

FT!.

August 16, 1939

Mr. William A. Day,
President, Federal Reserve Bank,
San Francisco, California,

Dear Mr* Day:
Receipt is acknowledged of your telegram
dated August 15, 1939, in which you unqualifiedly recom
mend a license for the Bank of Manteca, Manteca,
California, I hereby direct the Federal Reserve Bank,
San Francisco, acting as my designated agent, to issue
a license to this bank in the form heretofore prescribed
by me to continue normal banking functions, if and when
all conditions to membership have been completed and the
bank has been admitted to the Federal Reserve System,

Yours very truly,

(Signed)

HERBERT E GASTON,

Acting Secretary of the Treasury.

Reproduced from the Unclassified I Declassified Holdings ot tne National Arcmves

r''”C'D m
C O P T

SEP? 5

1939

San Francisco

August 16

August 15-39-359P

Secretary of the Treasury
Washington

License message number one hundred twenty seven we unqualifiedly
recommend for license Bank of Manteca, Manteca, California
effective if and when admitted to Federal Reserve membership

Day

President

Federal Eeserve Bank of San Francisco

Reproduced from the Unclassified I Declassified Holdings of the National Archives

j&scTD i k f x i b s s m

C O P Y

SEP? 5 W O

July 31, 1939

President
Federal Reserve Bank
Dallas, Texas

Dear Sir:
Having been advised by the Comptroller of the
Currency that he has approved an application to organize
the "Broadway National Bank of Alamo Heights”, to be
located at Alamo Heights, Texas, and that he recommends
issuance to said bank of a license to transact normal bank
ing business as soon as its organization has been completed,
I hereby direct the Federal Reserve Bank of Dallas, Texas,
acting as my designated agent, to issue such license, in
the form heretofore prescribed by me, to transact normal
banking business upon receipt of advice from the Comptroller
of the Currency that he has issued a certificate of authority
to begin business to: "Broadway National Bank of Alamo
Heights”,

Yery truly yours,

(Signed)

JOHN W. HAN1S

Acting Secretary of the Treasury.

]

Reproduced from the Unclassified I Declassified Holdings of the National Archives

B C IN
JE 'D FILES SECTION

w
Fe d e r a l R e s e r v e
O F

B ank

SEP 2 5 1939

L f -jr *

C L E V E I^ fe s B

Cards#

September 11, 1939

I•lU
.• x
-

Miss Elsie ^ackstraw, Librarian
Board of Governors of the
Federal Eeserve System
Washington, D. C,
Dear Elsie:
Mr. Fleming expects me to make an index to
his bound file of telegrams received from the
Board and the Treasury during the banking holi
day of 1933 Q n the months following.
-d
Before
I undertake the (terrific) task, I wondered if
the Board officials had made an index to the
telegrams for that period, and if so, could we
borrow it and make a copy for ourselves.
The
file includes HTrans. 15&8 - l865.w I suppose you are very busy indeed these
days, - right in the thick of it all.
Ifd like
to hear all about it some day.
Best regards,
Sincerely yours

C:S

Librarian

Reproduced from the Unclassified I Declassified Holdings of the National Archives
o n F R. 1 8b
ra «
4

TELEGRAM
BOA RD O F G O V E R N O R S

Y'' / Q

OF THE

FEDERAL RESERVE SYSTEM
L E A S E D W IR E S E R V IC E

W ASHINGTON

Young • Boston

Referring your telegram of September 7 / licences granted to
banks to open and perform the usual banking functions contain
extract from SxecutiT© Order of the President, which provides
that permission to perform such functions does not authorise
them to allow withdrawal of any currency for hoarding.

Carpenter

Reproduced from the Unclassified I Declassified Holdings of the National Archives

b l e q r a m

y j

Board of Governors

ot the
Federal Reserve System
D Leased "W Service
ire

, /
A
A

*\ V
■

| p & 5D IK FILES SS
V

' 7 '''aEP 1 9, v w :
\LL
L i.
1939 SEP 7

PM 2

Received a Washington, D. C
t
,
'

83 B D
BOS 9-7-39-320P
KORRILL
WASH
UNDER DATE OF MARCH 13119339 TRANS 1639, OBI TOO VIREP TEXT Of
REGULATION OF SECRETARY OF TREASURY IN REFERENCE TO ACTION TO BE TAKEN
BY BANKING INSTITUTIONS REGARDING CURRENCY TRANSACTIONS THAT LOOKED
LIKE HOARDING• HE APPARENTLY NAVE NO RECORD OF THIS REGULATION
BEING CANCELLED* WILL YOU ADVISE IF IT IS STILL IN EFFECT
YOUNG

33IP

Reproduced from the Unclassified I Declassified Holdings of the National Archives

4s
rks5 ih ?:a,m sbptxcs
s
sp p
?n(
ot

> ,v

V ' .' ' ^ .F e d e r a l R e s e r v e B a n k o f S a n F r a n c i s c o
..

August 26, 1939

Mr. Leo H. Paulger,
Chief, Division of Examinations,
Board of Governors of the Federal Reserve System,
Washington, D. G.

Dear Mr. Paulgers
In your letter of August 21j
attention is called to the proce
dure of the Federal Reserve Bank ooTsan Francisco in issuing licenses to
State banks upon becoming members. Section U9 Title I, of the Emergency
Banking Act of March 9, 1933> provides that no member bank of the Federal
Reserve System shall transact any banking business except to such extent
and subject to such regulations, limitations, and restrictions as may be
prescribed by the Secretary of the Treasury with the approval of the President.
The President1s Executive Order of March 10, 1933# provides that
licenses shall be issued l y the Federal reserve banks upon approval c the
q
f
Secretary of the Treasury, and the Federal reserve banks are designated as
agents of the Secretary of the Treasury for the receiving of applications
and the issuance of licenses in his behalf and upon his instructions.' It
would appear, in the circumstances, that it would not be proper for a
Federal reserve bank to issue a license except upon application. We have
merely incorporated the request for an application for license! in our letter
of instructions to banks * covering the actions necessary for the completion
of membership, so that it will not be overlooked. Presumably the Board had
the same object in mind when it incorporated reference to the license in the
translation of code word "FAMUB* n The question of securing an application
is one of small importance? however, we are wondering if banks can disregard
the provisions of the Executive Order. Possibly the Secretary of the
Treasury should be consulted inasmuch as Federal reserve banks act as his
agents in the matter.
It had not occurred to us that the expressions used in our letter
in connection with the completion of membership lacked cordiality. However,
the fact that they have appeared so to others is sufficient reason for their
amendment, and we thank you for calling the matter to our attention. Realiz
ing that letters containing conditions and instructions, particularly when
required to be of a somewhat legal form, such as the Board1s letter to the
applying bank1s board of directors, can create wrong impressions, we have
endeavored, whenever feasible, to make a personal presentation of such let
ters, because it dispels the feeling of undue formality. In the case of the
Bank of Manteca, you may be interested in knowing that our Chief Examiner
made a round trip of 160 miles to perform this service.
FAMDB - Board of Governors of the Federal
Reserve System has approved the application of (name and location of
bank) for membership in the Federal
Reserve System. We recommend that a
t f / | license be issued to this institution
t
f
""
to transact normal banking business
effective when bank is admitted to
qi
membership.

Yours very truly,

(

s sw

^
First Vice President,

, /

. ,
.
.
.

Jmgast 21, 19 3 9 *

Mr. Ira Clerk, flfttt V i ce President,
Federal Reserve Bask of San Francisco,
San Franotseo, California.

Dear Mr, Clerk:
In your letter of Aa&urt M to the rresident of the
Bank of "Santeca," Manteca, California, advising of approval of
t
fs a;:plication for membership, you suggested that i
rau*
/ u . o its decision to accept the conei M
.;n
s of meEioerbank file with, the Reserve Bank an a,
uion for
i £ ^ | e of v license by the Secretary of the
ir/* V hile
so®
3r Reserve banks may require such an application, 1 'rmow
of
tiiit does so. On the other hand, I do know that oome of
the tSt>rvo banks do not require the formality of an application
but on tiioi' own initiative forward their recoasaendations with
'
respect to licenses imediately upon receipt of advice from the
-chat u i application for membership has been approved. In
i
ti^Hionnection, the cod® word
for use in transmitting
rf^Hieadations for the issuance of licenses contains no referer^H;o an application by the bank for a license* I am calling
t ; ™ o /our attention with the thought that you may wish to re
view your procedure in this respect#
Incidentally, there are se**ral references in your
letter to the ank of Manteca to ac tj i c j siould be taken
iI
if the bank elects to complete raeob*
p. I am -wondering
whether juch letters mi^ht not bo i^y-u-Lv.sed to o© a bit iaor©
cordial and avoid any suggestion that cue bank may not wish to
coaplate its membership.

Very truly yours,

iTeo 11 . Paul£»er, Chief,
Division of Examinations*

Fe d e r a l R

eser v e

Bank

S an Fr a n c is c o

August 15, 1939

Board of Governors of the
Federal Reserve System,
Washington, D. C.
Dear Sirs:

This is to acknowledge receipt of the Board*s
o > Augua-h 9 advising of its approval of the mem
f
bership application of Bank of Manteca, Manteca, Calif
ornia, together with letter of even date?Addressed to
the Board of Directors of said bank, setting* forth
conditions prescribed in connection therewith.
There is enclosed, for the Board*s informa
tion, copy of our letter to said bank dated August 14,
1939, transmitting the Board’s communication.
Yours very truly,

First Vice President
Enclosure

Fe d e r a l R e s e r v e Ba n k

S a n F r a n c is c o

August I4, 1939

Mr. Arbor Barth,
President,
Bank of Jl&nteca,
Manteca, California.
Dear Mr. Bar t l
il
^e hare been advised by the Board of Governors of the Federal
Reserve Systean that the application of the Bank of Manteca for membership
in the Federal Reserve System and the right to subscribe for stock of the
Federal Reserve Bank of San Francisco, has been approved subject to condi
tions set forth in the Board1# letter addressed to your Board of Directors
under date of August 9, 1959, which is enclosed.
I
Under a regulation of the Eoerd of Governors of the Feperal
Reserve System, the acceptance and coraplitmce Kith conditions prescribed
are required before membership can be effected. Therefo£$, if you elect
to complete membership, it will be necessary for your boaraTrP-Jirectors
to adopt a resolution accepting the conditi^^fs^as^prescribed ancknake
adjustment's in accordance with the provisions thereof. For yourVonvenience in this connection, there is eno^osed a draft)of this resolution,
in triplicate, two copies of r.hich, ifXand ’
vhen adapted, after being
certified*to by an authorized officer, ©re to b*^rvturned to this bank
together with advice of cofapl±»&^ with cto^irtion number 5. Transcript
in duplicate of the account or accounts through which adjustment is mace
should be submitted wifti 3uch advic^ together with statements of bank as
of dates before and after adjustment^ is effected.

J}p5n~the acceptance of membership and the conditions prescribed
by the Bon.rd of Governors of the F^eral Reserve System, payment for the
appropriate nianber of sha^s&j of^^ock: of the Federal Reserve Bank of San
Francisco grill be in order and should be made on the following baeis:
V
\

Fifty percent of a sum equal to six per centum of
the paidyup capital stock and surplus of your bank
^ -^ 3 of^tne date upon which membership becomes ef
fective with instructions to charge your account
for dividends which have accrued on the shares since
cate of payment of last dividend to date your re
mittance for stock in this bank is received.
If six per cent of the paid-up capital and surplua
amounts to a sum not civisable by 130, the bank is
required to hole one additional share of stock for
any excess or fractional part of £130.00.

Iutdlttt Botict of the tsoint of tht chtr^t to yomr ac
count will ba mailed to you and, when the next dividend is declared,
your account will ba credited in an amount to cover tha dividend for
the full semiannual period.
It will also be necessaxy f * you to resit an amount, to be
o>
credited to your account, equal to twelve per cant of your demand de
posits and five per cant of your time deposits. Thi« will constitute
your legal reserve deposit which may be maintained in excess of but
may not fall below the required percentages without incurring an in
terest penalty upon the deficiency at a rate fixed by the Board of
Governors of the Federal Reserve System. The method of computing
reserves is set forth in Federal Reserve Bank Circular 130 and sup
plement thereto, copies of which ere enclosed for your guidance.
tha above payments may be made either by draft upon your
San Francisco correspondent or by requesting an eastern or other cor
respondent to transfer the amount to any other Federal reserve
for credit and advice of this bank for your account or by currency or
a combination of these.
The resolution adopted by your Board of Directors on Hay 9
1939, authorising membership, among other things authorises - that '
reports and information regarding your bank may be interchanged be
tween the Federal Reserve Bank of San -Francisco and State and federal
supervisory authorities having jurisdiction of your bank. In order
that a copy of this resolution may be filed with the Superintendent
of Banks for the State of California, it will be appreciated if you
w mo er t i f y the enclosed copy of such resolution, executing the
agreement authorised therein and return same with other documents
submitted in connection with your acceptance of membership.
Wider a ruling of the Treasury Department, State banks or
trust companies, upon admission to membership in the Federal Reserve
Bysta«, are required to secure from the Secretary of the Treasure a
license permitting such member to perform any or all of its usual
basking functions except as otherwise prohibited which he is em
powered to issue under Executive order issued by the President of th
ttoited States under date of March 10, 1933. Application for license
la made through the Federal Reserve Bank of San Francisco, San
Francisco, and in order that it may obtain and have the license ready
t o deUvery to you upon completion of membership, it is suggested
that Immediately upon your decision to accept conditions prescribed
foxwal application be filed by addressing a letter to the Federal
Reserve Bank of Sea Francisco, San Francisco, California, in font
as fellowst

"Xn accordance with executive order Issued by the
President of the Uhited States under date of
Bareli 10* 1933, end contingent upon the completion
of nenbertiilp in the Federal Reserve System tp this

bamk, Application it hereby made for license
to perform all our usual and normal banking
functions except as otherwise prohibited.®
la order to obtain greatest advantage fro® membership, per■4t tha Mifufitlon that ana of your officers or employees thoroughly
a«faal»t Ht— If «lth tha Federal Reserve Act, Regulations of tha
Baard of Governors of tha Federal Reserre System and circulars issued
b p this bank, copies of whleh will be sent you when membership is
j
eMp&atad, also tha Federal Reserre Bulletin which the Board of Gov^yy a » of tha Federal Reserre System sands monthly to oach member.
> ne
Yours rexy truly,

First Vice President

Enclosures

Reproduced from the Unclassified I Declassified Holdings of the National Archives

I .

!V!AY^:

: J i ..... ... .......................

May 20, 1939*

<knmr*l Filaa
Mr* Shay

^ '

Advertising aa "baakiag feuaiaaaa*
ra banking holiday*

fha oourt, la Ballay ▼* Oraago National Baak, 26 114*
Supp. 849 (D.C., Haw *Jaraay,1939), «uaiaiiia<l a rlgjki of action
by tha aaaigaaa of a aawapapar ooapaay to raoovar for advartiaanants
which tha officer# of tha dofandant baak oauead to ba publiahad ia
aald nawapapar during tha "bank holiday** diraotad toward tha eonaarvatioa of tha bask* a aaaata, waifara, ato., holding, ia aubstanoa,
that tha publication of aaoh advortiaamanta did aot oonatituta
"banking transaotiona* or *baakiag bus inaaa* withia tha aaaalag of
tha Praaidaatial proclamation daolaring auoh "bank holiday4.
*
Tha d«faadaat bank, through ita offioara and agoata,
caused oartaia advertisaaents to ba publiahad ia tha nawsj»apar which
aara "directed toward tha ooaaervatioa of tha aaaata of tha beak aad
tha waifara of all partlaa in iatereet* aad dlaoloaiag ’an earnest
’
eadeavor oa tha part of tha offloors of the baak to pravaat a ooadltioa of ohaoa aad a a a r^pforoa aay waakaeaa th«l sight ba diaoloaad
ia tha bank*a financial atruoture.* Those advartlaaasats ware publlahad during tha ’
•bank holiday” rasaltlag fro» Presidential proolanations of March 4# 1933, Maroh t, 1933, aad March 9, 1933* during
which "all baakiag trensaotiona* should ba aaapaadad aad prohlbitlag
tha traaaaotloa of "any other banking busineas whatsoever**
tha dafaadaat recoiier urged that, pursuant to euoh Preaidantial orders, *tfce officers of tha baak wara atrippad of all pavers
to obligato the baak or oau»a ita aaaata to ba liabla on their ooa~
£raotual cossaitaanta." However, the court, la daayiag tha dafaadaat*a
aotloa to atrlka tha ooaplaiat oa tha groaad that it diaoloaad ao
oauae of aotloa, atatad that tha "spsoiflo iasue* wae tha proper
interpretations of "banking transactions" aad "banking baaiaaaa.*1
Said tha eourtt
*tt would aaaa that thaaa teraa should ba glvea
thair usual aad gaaarally accepted aaaalag aad shoald
aot ba llbarally construed except insofar aa applioabla to tha apaolflo purposes of ths proclaaatioa la
preveatlag the evils tharala sought to ba avoidad.*
After ctatiag that such proclaaations aare aot lataadod
to relieve baak offioara of doiag such things aa slight protaot thair
inatitutiona, and aftor reviewing tha aubatanoe of tha advartlseasats
la question, tha ooart said*

Reproduced from the Unclassified / Declassified Holdings of the National Archives

General Files

-2-

"Sirht should not be lost of the trust relation
ship which hung heavy upon the shoulders of the officers
and directors of the bank* This called upon them to
exert themselves to conserve the assets of the bank by
every reasonable means which they as prudent men might
find at hand. Neither the ’residential proclamation
’
nor the statutory law relieved them of this burden, and
to hold that they oould not burden the trust estate with
such items as were reasonably necessary to conserve the
res would be to penalise the wise and prudent trustee
and encourage slothfulness, irresponsibility, and
cowardice in that relationship."

Jerome w. Shay,
^,aw Clerk.

JWS/nlg

ffce Correspondence
To

Mr. Horbett

From

FEDERAL RESERVE
BOARD

Date

"September 20 , 1935

Mr. Kennedy

Subject:

You asked me to look through the Federal Reserve Board
announcements of changes in State bank membership (issued by the Divi
sions of Examinations) to ascertain whether it has been the practice
of the Board to publish the suspension and reopening of State member
banks.

Prior to the banking holiday^ under the heading ”Closedn>^tate

member banks which suspended were shown,
ber banks was also published.

^he reopening of State mem

Immediately prior to the banking holi

day^ under the heading "Suspension”^a State member bsnk in Michigan was
published.

As a result of this some question arose whether as a

matter of policy the names of bank suspensions should be disclosed.
In view of the increasing number of suspensions and in view of the
possibility of an error in reporting such information^ it was decided
to discontinue publishing the names of State bank members which sus
pended.

Since that time, to the present, bank suspensions and reopen

ings have been omitted from the announcement.

ARD OF GO VERN O RS
OF THE

FED ER A L R ESERV E SYSTEM

Office Correspondence
To_ _____
From

' *'U'

_____

Subject:

‘‘■Tr. \'enned:
5 P 0

You a ske d r:irj t o look t hrough ■ h ; "Feder
t
•e:-*
announcement s o f c h a n t s
s i o n s o f ^xa/ninat i o n s )

r e r . ' i -’ ' v ?">•r 1
•

rv*nk rii^nberohi o’ ( i s s u e d - y r t h a D i v i

t o a s c e r t a i n y-heth^r i t has been t ho .:- r«cf.| ce
(

o f t h e h o v r ? t. o p u b l i s h t h e s u s p e n s i o n and reoDonin;* o f . S t a t e nieirtber
casks.

P r i o r t o t he b a n k i n * ’ h o l i d a y , u nde r t h e he^din,^ " C l o s e a * ’ , S t a t e

me r ge r z ,puks

i c h suspended vf3 r e shT.va.

, e r b a n k s >;as a l s > pub •j shed .

I - > ietely
d

Tha reoY>-nni n * o f o t , a f.**
?rri o r

d ay , under t h e h eading ’’S u s p e n s i o n " , a S t a t e me.nb • r i.^r*
>
uurlish^a.

a result of th is

holi
in-

i o. ro

s-mr- n j e s t;ion a r o s e >vh M'-her a p a
.

m a t t e r o f pol.is,- tho names o f hank s u s p e n s i o n s should. so :i j . s c l j s e : i .
In view o f t h e i n c r s a s i ' i ; * numbsr o f s u s p e n s i o n s arvJ in v i e ’' o f t h e
possibility

o f an e r r o r in renortl.ru* such i. n f o r n a t i o n , i t

*ws u eei de d

t o a i s c o r n i n u e pu-' l i s h i n s t h e naiaes o f S t a t e bank members whi.ch s u s
pended.

Since that

tim e,

t o t h e p r o s o n t , bank s u s p e n s i o n s and r e o p e n

i n g s have b e e n o m i t t e d from t he a n n o u n c e n e n t .

lG -8 .r
>2

CONFIDENTIAL
B-985

ASSETS AND LIABILITIES OF NON-U CENSED ! EMBER B I I S ON MARCH 5. 1934, 31 FEDERAL RESERVE DISTRICTS
£
ATZ
(in thousands of dollars)

£e X l d X
iV'L
■
— ... . ■
St.
j Phila- |
Chicago Louis
Atlanta
Cleveland Ri chmond j
|delphia 1
T----------

Total
j

Boston

jNew York
i

District
1 Minn
eapolis
]

Kansas
City

Dallas

San
Francisco

A S S E T S

Loans (including overdrafts)
U. S. Government securities
Other securities
TOTAL LOANS AI7D INVESTMENTS

192,199
31,055
BO M l
309,691

Customers1 liability on account
of acceptances
5
Banking house, furniture, and
25,520
fixtures
0t i r real estate owned
ie
11,3 15
6,965
C i in vault
42,916
Reserve with F.R. banks 1/
Due from baiiks (including items
in process of collection,
4,271
exchanges, etc.)
Outside checks and other cash i ,ems 150
Redemption fund and due from
1,027
United States Treasurer
165
Securities borrowed
4,709
Other assets
TOTAL

40b,79I
+

1,2 9 1
309
1,097

26,006
2,692
14,091

51,483
6,236
16,259

43,925
5,545
17,463

11,0 9 1
2,329
2,660

11,164
1,027
1,6 5 1

26,324
5,405
12,633

12,442
3,275
7,552

4,960
1,043
3,502

3,562
1,5H
1,627

1,060
275
94

4,225
802
1,736

3,297

42,795

73,972

66,993

16,080

13,242

44,362

23,221

9,5H

6,760

1,429

6,763

164
15
72
512

2,109
779
942
3,156

6,625
3,223
1,244
7,167

5,342
2,122
1,462
2,499

1,429
735
412
2,130

243
467
359
2,096

5.334
1,922
1.335
9,267

1,670
704
465
3,644

674
237
197
1,726

327
202
207
2,676

287
37
60
532

656
146
210
1,445

49
3

525
8

691
l4

92s
3^

1 S6
^12

161
O

691
47

264
13

l4o
3

171
5

4l
2

124
3

229

1,436

34o

127
10
972

124

69s

94
110
213

107

121
35
326

146

123

125

18
10
121

4,231

5 1,112

95.272

35.982

2 1 .SH1

IS,155

64 ,127

3 0 ,9 1 1

1 2 ,76 s

10 ,59 2

2,447

9,556

l/ Includes Conservators’ Special Accounts.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

>
»
"
2

CONFIDENTIAL

ASSETS AMD LIABILITIES OF TOT-LICENSED MEMBER B A M S ON MARCH 5, 1934, BY FEDERAL RESERVE DISTRICTS
(In thousands of dollars)

Total

Boston

New York

Federal
Phila
Cleveland
delphia

B- 985 a

Reserve
Richmond

Atlanta

Chicago

St.
Louis

District
Minn
Kansas
City
eapolis

Dallas

San
Francisco

L I A B I L I T I E S

100,514
Demand deposits
Time deposits
126,575
kjk
United States deposits
Dae to "banks (including certified
& officers1 checks and cash L/c &
2,633
travelers checks outstanding)
290,201
TOTAL DEPOSITS
National-bank notes outstanding
20,537
Agreements to repurchase
11 5
securities sold
32,443
Bills payable and rediscounts
Acceptances executed for customers
5
Acceptances executed by other banks
> reporting banks
r
165
Securities borrowed
Interest, taxes, and other expenses
accrued and unpai-d
257
1,690
Other liabilities
37 .2U7
Capital stock paid in
17 ,
*+06
Surplus
4,782
Undivided profits - net
1,946
Reserves for contingencies
Total liabilities, including
capital account
Number of banks 1 /
FEDERAL RESERVE BOARD
DIVISION OF BANK OPERATIONS

406,794
30s

723
2,375

8,218
27,349
29

21,564
41,903
110

20,460
45,675
125

4,504
9,523
108

5,560
5,572
9

IS,5 11
28,026
32

7,539
14,280
3

3,768
6,203
19

4,862
2,304
10

1,129
229

3,556
3,070
29

l4
3,172
224

230
35,82b
811

288
63,855
4,563

734
66,994
3,623

309
14,504
1,889

61
11,208
854

178
46,747
3,691

72
545
22,367 10,068
2,470
745

98
7,274
l,06l

47
1,465
231

56
6,711
375

202

90
3,513

2,309

1,456

3,423

3,417

252

200

792

110

—

10,158
5

—
—

—

l4
415
174
30

85
3 11
3,650
1,083
57s
165

15
689
8,785
5,535
1,023
634

S3
248
5,850
5.1*3
1,224
433

25
61
2,325
941
205
65

1
22
2,325
239
82
1

18
23 S
6 ,115
2,514
1,093
284

4,231

5 1,112

95,272

85,922

21,641

12,155

64,127

25
1,270

—

23
30
3,297
776
359
294

451

—

17
1,110
241
86
50

30 ,9 11 1 2 ,76s
IS
30

—

6
49
1,630
276
43
1

2
370
157
22

1
9
1,315
287
37
19

10,592

2,447

9,556

1/ Includes a number of nationsO/banks whose Federal Reserve bank stock had been canceled and membership
terminated but which, on
» ^©re still included in the Comptroller of the Currency *s
records on non-licensed national banks.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

TREASURY DEPARTMENT
WASHINGTON
RELEASE TO MORNING PAPERS
OF JANUARY 18, 1934,

Press Service
No. 1 - 1 7

The Secretary of the Treasury issued instructions tonight (jan.17),
authorizing the Treasurer of the United States, the United States
Mints and Assay Offices, and the Federal Reserve Banks to continue,
until further notice, to receive gold coin and gold certificates
and to pay therefor in other currency at their face value.

They

were also authorized to receive gold "bullion and to pay for it at
the statutory rate of $20.67 per ounce*
The instructions issued tonight are made subject to the
rights reserved in the Secretary*s order of January 15 setting
midnight of January 17 as the final date on which gold coin, gold
certificates and gold bullion might be delivered in compliance
with the Secretary's order of December 28, 1933.
Inquiries have been received by the Treasury Department
from business men who desire to know whether they may continue
to accept gold coin and certificates in payment for merchandise
and services.

The instruqtions•which were sent out tonight

will provide a way by which they may dispose of receipts of gold
coin and gold certificates and receive payment for them*

Reproduced from the Unclassified I Declassified Holdings of the National Archives

INSTRUCTIONS SENT BY THE SECRETARY OF THE TREASURY
ON JANUARY 17, 1954 TO.THE TREASURER OF THE UJI1ED
STATES, THE UNITED STATES MINTS AND ASSAY 0'*:ZV&
AND THE FISCAL'AGENTS OF THE UNITED STATES, OOICEFNING 7*RONGFULLY WITHHELD GOLD COIN, GOLD BULLION j\KD
GOLD CERTIFICATES DELIVEREL AFTER JANUARY 17, 1934.

The Order of the Secretary of tha Treasury dated January 15,
1934, supplementing the Order of December £8 , 1953, Requiring the
Delivery of Gold Coin, Gold Bullion end Gold Certificates to the
Treasurer of the United States provides, in part, as follov/s:
”* * * I, KENRY RIORGENTHAU, JR., SECRETARY of the
TREASURY, do hereby fix midnight of Wednesday, January
17, 1934, as the expiration of the period v/ithin *.rhich
any gold coin, ^old bullion, or gold certificates ?cy
be paid snd delivered to the Tree.surer of the United
States in compliance vrith the requirements contained
in such Order of December 28, 1935, r s amonacc.
.

"In the event that any gold coin, gold bullion or
gold certificates withhold in noncompliance with raid
Order and of this Order are offered after January 17,
1934, to the Secreta-v of the Treasury, the Troaauror
of the United States, any United States mint or assay
officc, or to any fiscal agent of the Unitc4 States*
there shall be paid therefor only such pert or none of
the amount otherwise pay&elc therefor no the Secretary
of the Treasury may from time to time; proscribe and the
whole or m y br lanes snail bo retained and applied to the
penalty pry^ble for failrro to comply »dth the requirements
of such Order and of thic Order. Tho scccptance of cny
such coin, bullion, or certifiestec ?fter Jr nurry 17, 1934,
whether or not r part or r.ll of the amount othcxvicu pay
able therefor is so retained, shall bo vlthout prejudice to
the right to collect by nuit or othorvise the full penalty
provided in Section 11 (n) of the Federal Reserve Act, as
amended, lose- such portion of the ponrlty as may ha/o been
retained as hereinbefore provided. 11
Subject to the rights reserved in said Order of January 15, 1934,
supplementing the Order of December 28, 1933, requiring the delivery of
gold coin, gold bullion and gold certificates to the Tree nirur of the
United States, and without prejudice to the right to oltor or rmend these

Reproduced from the Unclassified I Declassified Holdings of the National Archives

EXECUTIVE ORDER
Regulating Transactions in Foreign Exchange,
Transfers of Credit, and the Export
of Coin and Currency.

JAN 15

By virtue of the authority vested in me by Section 5 (b) of
the Act of October 6 , 1917 (40 Stat. L., 411) as amended by Section 2
of the Act of March 9, 1955, entitled "An Act to Provide Relief in the
Existing National Emergency in Banking and for other Purposes", I,
FRANKLIN D. ROOSEVELT, PRESIDENT of the UNITED STATES OF AMERICA, do
declare that a period of national emergency continues to exist, and
by virtue of said authority and of all other authority vested in me,
do hereby prescribe the following regulations for the investigation,
regulation, and prohibition of transactions in foreign exchange, trans
fers of credit between or payments by banking institutions as herein
defined, and export of currency or silver coin, by any person within
the United States or any place subject to the jurisdiction thereof®
Section 1.

Every transaction in foreign exchange, transfer

of credit between any banking institution within the United States
and any banking institution outside of the United States (including
any principal, agent, home officc, branch, or correspondent outside
of the United States of a banking institution within the United
States), and the export or withdrawal £tom the United States of any
currency or silver coin which is legal tender in the Jnitod States,

Reproduced from the Unclassified I Declassified Holdings of the National Archives

by any person within the United States, is hereby prohibited., except
under license therefor issued pursuant' to this Executive Order; pro
vided, however, that, except as prohibited under regulations prescribed
by the Secretary of the Treasury, foreign exchange transactions and
transfers of credit may be carried out.
without a license for (a) normal
commercial or business requiremento, (b) reasonable traveling and other
personal requirements, or (c) the fulfillment of legally enforceable
obligations incurred prior to March 9, 1953.
Section 2.

Possessions of the United States. Except as

prohibited in regulations prescribed by the Secretary of the Treasury,
transfers of crpd.it between banking institutions in the continental
United States and banking institutions in other places subject to the
jurisdiction of the United States (including principals, agents, home
offices, branches, or correspondents in such other places, of banking
institutions within the continental United States), may be carried
out without a license.
Section 5.

Licenses. The Secretary of the Treasury, acting

dircctly or through any agencies that he may designate, and the Federal
reserve banks acting in accordance with such rules and regulations as
the Secretary of the Treasury may from time to time prescribe, are
hereby designated as agencies for the granting of licenses f, herein
.s
after provided.

Licenses may be granted authorizing such transactions

in foreign exchange, transfers of credit and exports of currency (other

Reproduced from the Unclassified I Declassified Holdings of the National Archives

than gold certificates) or silver, coin in such specific cases or
classes- of cases as the Secretary of the Treasury may determine in
regulations prescribed hereunder and rulings made pursuant thereto.
■

Section.4*. Reports. . The Federal reserve banks shall keep

themselves currently informed as to foreign exchange transactions
entered iirto or consummated, and transfers of credit made between
banking institutions outside of the continental United States and
banking institutions,.in their districts, and report to the Secre
tary of the Treasury all transactions in foreign exchange and all
such transfers of credit not permitted under Sections 1 or 2 hereof
which are effected or attempted in their districts without a license.
Section 5.

Regulations. The Secretary of the Treasury is

authorized and empowered to prescribe from time to time regulations
to carry out the purposes of this Order, and to provide in such
regulations or t y rulings made pursuant thereto, the conditions
r
under which licenses may be granted by the Federal reserve banks
and by such other agencies as the Secretary of the Treasury may
designatei and the Secretary of the Treasury may require any person
engaged in any transaction, transfer, export, or withdrawal referred
to in this Executive Order to furnish under oath complete informa
tion relative thereto, including the production of any books of
account, contracts, letters, or other papers, in connection there
with in the custody or control of such person either before or after
such transaction, transfer, export, or withdrawal is completed.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

-4 -

Section 6 . Penalties. Whoever willfully,
violates or
knowingly participates in the violation of any provision of this
Executive Order or of any license* order* rule, or regulation issiied
or prescribed hereunder,.shall,be subject to the penalties provided
in Section 5 (b) of the Act of October 6 , 1917, as amended by Section
.
2 of the Act of March 9, 1955*
Section 7.

Definitions. As used.,in_jthis. Executive Order

the term ^United States"; means thq United .States and any place sub
ject to the jurisdiction thereof5 the term "continental United States"
means the States of the

United

States, the .District, of Columbia*

the Territory , Alaska) ,
of
the term "person":.
means an.
individual, part
nership, association, or corporation;,.
and the term "banking institu■feion" includes any person engaged primarily Qr incidentally in..the
business of banking, of granting o . transferring, credit s, or,.of; pur
r
.
chasing and selling, foreign exchange, or procuring purchasers and.;
sellers thereof, as principal or agent; and, for the purposes of this
Order, each home office, branch, .principal,..agent, or. correspondent
of any person so engaged shall,.be regarded,as a separate, "banking
institution".
Section 8 . Section 8.of . . h Executive Order..of August.
.te
28, 1955, Relating to the. Hoarding, Export,, and. EarmaxkiAg of Gold,
Coin, Bullion, or Currency arid to Transactions in foreign: Exchange,,
is hereby revoked.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

-5 -

This Executive Order and any rules, regulations, or
licenses prescribed or issued hereunder niay be modified or revoked
at any time.

FRANKLIN D. ROOSEVELT

THE MilTE HOUSE,

January

15, 1954.

Repqjduced from the Unclassified I Declassified Holdings of the National Archives

EXECUTIVE ORDER
Amending the Executive Order of March 10, 1935, and the
Proclamation of December 30, 1933, Concerning
the Operation of Banks

JAN 1 D

By virtue of the authority vested in me by Section 5(b) of
the Act of October 6 , 1917 (40 Stat. L. 411), as amended by the Act
of March 9, 1933, and by Section 4 of said Act of March 9, 1933, and
by virtue of ail other authority vested in me, I, FRANKLIN D. ROOSEVELT,
PRESIDENT of the UNITED STATES OF AMERICA, do hereby issue the follow
ing executive order:
Section 1.

The last two paragraphs of the Executive Order

of March 10, 1933, Concerning the Operation of Banks, are amended,
effective from the date of this Order, by striking out the following:
nnor to engage in any transaction in foreign
exchange except such as may be undertaken for
legitimate and normal business requiremento,
for reasonable traveling and other personal
requirements, and for the fulfillment of con
tracts entered into prior to March 6 , 1933.
"Every Federal Reserve Bank is authorized
and instructed to keep itself currently informed
as to transactions in foreign exchange entered
into or consummated within its district and
shall report to the Secretary of the Treasury
all transactions in foreign exchange which are
prohibited, 11
The Secretary of the Treasury is authorized to amend the licenses
heretofore issued with his approval by the Federal reserve banks
under the Executive Order of March 10, 1933, by issuing through
the Federal reserve banks amendatory' licenses removing the restric
tion upon transactions in foreign exchange contained in the licenses
heretofore issued.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Section 2

The Proclamation of December SO, 1935, Relating

to the Licensing of Banking Institutions which are not Members of the
Federal Reserve System, is amended, effective from the date of this
order, by striking out the followings
"nor to engage in any transaction in foreign
exchange except such as may be undertaken for
legitimate and normal business requirements,
for reasonable traveling and other personal
requirements, and for the fulfillment of con
tracts entered into prior to March 6 , 1933."
Section 3

The amendment of such Executive Order of March 10,

1933, or of any licenses issued thereunder, and the amendment of such
Proclamation of December 30, 1933, shall not affect any act done, cr any
order, decision, cr -finding made, or relieve any person from the con
sequences of any unauthorized act committed prior to the date of this
executive orders nor shall the amendment of the Executive Order of
March 10, 1933, cr the Proclamation of December 30, 1933, relieve any
person from the obligation of complying with the terras of the Executive
Order of January 15, 1934, Relating to the Export of Coin and Currency
and Transactions in Foreign Exchange, cr the regulations oc licenses
issued thereunder, c r of any other provision of law affecting transac
tions in foreign exchange.
FRANKLIN D. ROOSEVELT.
THE WHITE HOUSE,
January 15, 1934.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Cxectittoe <^rber
R ela t in g

R e c e ip t

G old on C onsignm ent
A ssa y Of f ic e s

b y th e

M in t s

and

By virtue of the authority vested in me by section 5 (b) of the act of October 6,
1917, as amended by section 2 of the act of March 9, 1933, entitled “ An Act to Pro
vide Relief in the Existing National Emergency in Banking and for other Purposes'',
I, FRANKLIN D. ROOSEVELT, PRESIDENT of the UNITED STATES OF
AMERICA, do declare that a period of national emergency exists, and by virtue of
said authority and of all other authority vested in me, do hereby prescribe the follow
ing regulations for receiving gold on consignment for sale:
S e c t i o n 1. The United States mints and assay offices are hereby authorized,
subject to such regulations as may from time to time be prescribed by the Secretary
of the Treasury, to receive on consignment gold which the mint or assay office con
cerned is satisfied has not been held in noncompliance with the Executive orders,
or the orders of the Secretary of the Treasury, issued under sections 2 and 3 of the
act of March 9, 1933, or in noncompliance with any regulations or rulings made
thereunder or licenses issued pursuant thereto.
S e c . 2 . The Secretary of the Treasury is hereby authorized and empowered to

issue such regulations as he may deem necessary to carry out the purposes of this
Executive order.
Sec. 3. This Executive order and any regulations issued hereunder may be
modified or revoked at any time.

FRANKLIN D. ROOSEVELT.
T

h it e

ouse,

January 16,1984-

lNo,:6558]

CV M N TH H I WICUMM
QCHI U T M

Reproduced from the Unclassified I Declassified Holdings of the National Archives

1 1

EXECUTIVE ORDER
Relating to Receipt of Gold on Consignment
by the Mints and Assay Offices

JAN 15 1934

By virtue of the authority vested in me by Section 5(b) of
the Act of October 6 , 1917, as amended by Section 2 of the Act of
March 9, 1935, entitled "An Act to Provide Relief in the Existing
National Emergency in Banking and for other Purposes", I, FRANKLIN D.
ROOSEVELT, PRESIDENT of the UNITED STATES OF AMERICA, do declare that
a period of national emergency exists, and by virtue of said authority
and of all other authority vested in me, do hereby prescribe the follow
ing regulations for receiving gold on consignment for sales
Section 1.

The United States Mints and Assay Offices are

hereby authorized, subject to such regulations as may from time to time
be prescribed by the Secretary of the Treasury, to receive on consignment
gold which the mint or assay office concerned is satisfied has not been
held in noncompliance with the Executive Orders, or the Orders of the
Secretary of the Treasury, issued under Sections 2 and 3 of the Act of
March 9, 1933, or in noncompliance with any regulations or rulings made
thereunder or licenses issued pursuant thereto.
Section 2.

The Secretary of the Treasury is hereby author

ized and empowered to issue such regulations as he may deem necessary
to carry out the purposes of this Executive Order•

Reproduced from the Unclassified I Declassified Holdings of the National Archives

-Z -

Section 3.

This executive order and any regulations

issued hereunder may be modified or revoked at any time.
FRANKLIN D. ROOSEVELT

THE rJHITE HOUSE,
January 15, 1934.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

ORDER OP THE SECRETARY OP THE TREASURY

Supplementing the Order of December 28, 1933, Requiring
the Delivery of Gold Coin, Gold Bullion, and
Gold Certificates to the Treasurer of
the tftiited States

•WHEREAS on December 28, 1933 I; HENRY MORGENTRAU, JR.,
as. ACTING SECRETARY of the TREASURY, issued an Order under
-authority of Section 11 of the .Federal Reserve Act of December
23, 1913, as amended by Section 3 of the Act of March 9, 1933,
entitled 11An Act to Provide Relief in the Existing National
Emergency in Banking, and for.Other Purposes";

WHEREAS said Order, as amended by an Order of January
11, 1934, required every person subject to the jurisdiction of
the United States forthwith to pajr and deliver to the Treasurer
of the United States all gold coin, gold bullion, and gold cer
tificates situated in the United States, owned by such person,
except as follows;

Gold bullion owned by. a person now holding such
gold under a license heretofore granted by or
under authority of the Secretary of the Treasury,
pursuant to the Executive Order of August 28,
1933, Relating to the Hoarding, Export, and Ear
marking of Gold Coin, Bullion, or Currency and
to Transactions in Foreign Exchange;

Gold coin having a recognized special value to
collectors of rare and unusual coin (but not
including quarter eagles, otherwise known as
$2.50 pieces, unless held, together with rare and
unusual coin, as part of a collection for histori
cal, .scientific, or numismatic purposes, contain
ing not more than four quarter eagles of the same
date and design, and struck by: the same mint);
Unmelted scrap gold and gold sweepings in an
amount not exceeding in the aggregate $100 belong
ing to any one person; and gold which has been put

Reproduced from the UnclassifiedDeclassified Holdings of tne National Archives

•2 -

through a process of fabrication for a specific
and customary industrial, professional, or- orna
mental use;
Gold coin, gold bullion, and gold certificates
owned by . Federal reserve bank: or the Reconstruc
a
tion Finance Corporation; and
3.

Gold bullion and foreign gold coin nor/ situated
i . the Philippine Islands, .American Samoa, Guam,
r
Hawaii, Panama Canal Zone, Puerto Rico, or the
Virgin Islands of the United States, owned by a
person not domiciled or doing business in the'
continental United States;
WH3HEA3 a reasonable time has elapsed within which

any-person required ti deliver gold coin, gold bullion, and
gold certificates could pay and deliver to the Treasurer of
the- United States in the manner provided in said Order of
December 28, 1S33 the gold coin, gold bullion, and gold cer
tificates situated in the United States, owned by such person;
and.
WHEREAS in my judgment such action is necessary to
protect the currency system of the United States;
NOW, THEREFORE,

, HENRY ^OR^EI^HAj , JR., SECRETARY

,of the TREASURY, dp hereby fix. midnight of •
'.Ve&isesd?^, January
17, 1934 as the expiration of the period within-;which any gold
coin, gold bullion, or gold certificates may be paid and delivered
o the Treasurer of the United States in compliance with the
requirements contained in such Order of December 28, 1233, as
■
amended.
In the event that any gold coin, gold bullion or gold
certificates withheld in noncompliance with said Order and of
this Order are .offered after January'17, 1934 ' to.'.the Secretary
of the Treasury, the Tre^surtrof the United States, any United

Reproduced from the Unclassified I Declassified Holdings of the National Archives

■

States mint cr assay office, cr to any fiscal arent rf the
United States, there shall £e paid therefor only such part o
none of the amount otherwise payable therefor as the Secretary
f the Treasury may from time to time prescribe and the whole
r any balance shall be retained and applied to the penalty
payable for failure to comply with the requirements of such
Order and of this Order,

The acceptance of any such coin,

bullion, c r certificates after January 17, 1934, whether c
not a part or all of the amount otherwise payable therefor
s so retained, shall be without prejudice to the right t
collect by suit cr otherwise the full penalty provided i
Section 11 ( n of the Federal Reserve Act, as amended, less
,)
such portion of the penalty as may have been retained as
hereinbefore provided.
The definitions of the terms 'person'*, "United States"
’
"gold coin", and "gold bullion" contained in Section 4 of said
Order of December 28, 1933 apply equally 1^ such terms as used
n this Order,

H. Morgenthau, Jr.,
Secretary of the Treasury,

APPROVED:

Franklin D. Roosevelt
THE WHITE HOUSE
January 15, 1934.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Mlo

'VP
EXECUTIVE OBDER
J&N12
AMENDMENT OF EXECUTIVE ORDER NO. 6260 OF AUGUST 28, 1953

The first paragraph of section 4 o . Executive Order No. 6260 of
f
August 28, 1933, relating.to the hoarding, export, and earmarking of
gold coin, bullion, or currency, and to transactions in foreign
exchange is hereby amended to read as follows:
Sec. 4.

ACQUISITION OF GOLD COIN AND GOLD BULLION.— No person

other than a Federal Reserve bank shall after the date of this order
acquire in the United States any gold coin, gold bullion, cr gold
certificates except under license therefor issued pursuant to this
Executive order, provided that member banks of the Federal Reserve
System may accept delivery of such coin, bullion, and certificates
for surrender promptly to a Federal Reserve bank, and provided further
that persons requiring gold for use in the industry, profession, or
art in which they are regularly engaged may replenish their stocks of
gold up to an aggregate amount of $100, by acquisitions of gold bullion

h^ld under

iM a S m dm section 5(b), without ne^ssity of
mw L

4 &l$mm for mch

«oA j a r e ? f a r t h e r that

collectors of rare and urnsual coin may acquire fro® cm another and

hold without necessity of obtaining a license therefor gold coin hav
ing a recognized special value to collectors of rare and unusual coin
(but not including quarter eagles, otherwise known as $2.50 pieces,
unless held, together with rare and unusual coin, as part of a col
lection for historical, scientific or numismatic purposes, containing

Reproduced from the Unclassified I Declassified Holdings of the National Archives

not more than four quarter eagles of the same date and design and
struck by the same Mint).
Scotion 6 of the aforesaid order is hereby amended by adding
thereto the following subparagraph:
(c)

Through any agency that ho may designate, the export of

gold coin having a recognized special value to collectors oi rare
and unusual coin (but not including quarter eagles, otherwise known
as $12.50 pieces, unless held, together with rare and unusual coin,
as part of a collection for historical, scientific., cr numismatic
purposes, containing not more than four quarter eagles of the
"same date and design and struck by the same Mint).

FRANKLIN D. 'ROOSEVELT

THE WHITE HOUSE,
January

ig, 1954.

Reproduced from ttie Unclassified I Declassified Holdings of the National Archives

u|l
ORDER OP THE SECRETARY OF THE TREASURY
Amending the Order of December 28, 1933, Requiring
the Delivery of Gold Coin, Gold Bullion, and
Gold Certificates to tho Treasurer of

\ \ 19^

the United States

WHEREAS in my judgment the Order of December 28, 1933,
Requiring the Delivery of Gold Coin, Gold Bullion, and Gold Certificates
to the Treasurer of the United States, may be amended as hereinafter
provided without adversely affecting the purposes thereof,
NOW, THEREFORE, I, HENRY MORGENTHAU, JR., SECRETARY of the
TREASURY, do hereby amend said Order of December 28, 1933 by insert
ing after the word ’pieces** in the parenthetical phrase in Paragraph
’
(B) of the first section thereof a comma and the following:
"unless held, together with rare and unusual coin,
as part of a collection for historical, scientific, or
numismatic purposes, containing not more than four
quarter eagles of the same date and design, and struck
by the same mint*"

This order Day be modified or revoked at any time*

H.
Morgenthau, Jr.,
Secretary of the Treasury,

APPROVED:
Franklin D. Roosevelt

THE WHITE HOUSE
January 11, 1934

Reproduced from the Unclassified / Declassified Holdings of the National Archives

ip o

hereunder s\all be su bject to tlu /p e n a lty pro
vided in Secrnon l l ( n ) of the F ed eral R eserve
A ct, as am ended.
/
This order Vn ay be modified or re voiced a t
an y tim e.
\
/
\ II.
LtGENTIIALT, J r .,
A m n g JSecretary of the Treasury.
Approved:
yfrltAXKLIX D . ROOSEVELT.

T he W

h it k /TIVu s e ,

f[)eceM \ber 2 8 , 1983.

CONTROL OVER STATE BANKING INSTITU-/
T IO N S—PROCLAMATION BY THE PRESI4
DENT
1
On D ecem ber 30, 1933, the President issued
the following p roclam ation “ am ending p rocla
m ations of M a rch 6 and M a rch 9, 1933, and
the E x e cu tiv e order of M a rch 10, 1933, and all
orders and regulations p u rsuan t th e r e to ” :

‘by

I*' ]{'

FEDERAL. R E S E K Y E B U LL E T IN

J axuaht 1934

th e president of t h e united states of

AMERICA
P R O C L A M A T IO N
“ W hereas, on M arch 6, 1933, I, F ran k lin D .
R oosevelt, President of the U nited S tates of
A m erica, by v irtu e of au th o rity vested in me
by the a c t of O ctober 6, 1917 (40 S ta t. L . 4 1 1 ),
as am ended, issued a p roclam ation declaring
th a t an em ergency existed and th a t a national
banking holiday be observed;
“ W hereas, on M arch 9, 1933, I issued a
proclam ation continuing the term s and condi
tions of said p roclam ation of M arch 6, 1933,
in full force and effect until fu rth er p roclam a
tion by the P resid en t;
“ W hereas, on M a rch 10, 1933, I issued an
E x e cu tiv e order authorizing the appropriate
a u th o rity having im m ediate supervision of
banking institutions in each S ta te or any place
su b ject to the jurisdiction of the U n ited S tates
to p erm it any banking in stitu tion n ot a m em
ber of the F ed eral R eserve S ystem to perform
any or all of its usual banking functions excep t
as otherw ise provided;
“ W hereas, the S ecretary of the T reasu ry ,
p u rsu ant to au th o rity gran ted by oth er provi
sions of the said E x e cu tiv e order of M arch 10,
1933, has acted upon all requests for licensing
of banks m em bers of the Federal R eserve
S y ste m ;

{

“ W hereas, the F ed eral D eposit In su ran ce
C orp oration has acted upon all applications to
it for m em bership in the T em p o rary Federal
D eposit In su ran ce F u n d as provided for in
section 1‘ B (y) of the Fed eral R eserve A c t as
2
am ended by section 8 of the a c t of Ju n e 1 6 ,1 9 3 3 ,
Public N o. 66, S evcn tv -th ird Congress, and
has ad m itted to the said fund all applicant
banks which are duly and properly qualified; and
“ W hereas, it is now appropriate th a t the
banking au th o rity in each S ta te and an y place
subject to the jurisdiction of the U nited S tates
should h ave and exercise the sole responsibility
for, and con trol over, banking in stitu.tj.Qns. not
m em bers of the F ed eral R eserve S ystem ;
“ Now, therefore, I , Fran k lin D . R oosevelt,
President of the U nited S tates, in order to
assure th a t the banking au th o rity in each S ta te
and in any place su b ject to the jurisdiction of
the U n ited S tates shall h ave and exercise the
sole responsibility for, and con trol over, bank
ing institutions which are n ot m em bers of the
F ed eral R eserve System , do hereby proclaim ,
order, d irect, and declare th a t the p ro clam a
tions of M arch 6, 1933, and M arch 9, 1933, and
the E x e cu tiv e order of M a rch 10, 1933, and all
orders and regulations p u rsu an t th ereto, are
am ended, effective the first d ay of Ja n u a ry ,
nineteen hundred and th irty-fo u r, to exclude
from their scope banking institutions which are
n ot m em bers of the F ed eral R eserve S ystem .
Provided, however, T h a t no banking institution
shall p ay out an y gold coin, gold bullion, or gold
certificates, excep t as authorized by the Secre
ta ry of the T reasu ry , nor allow the w ithdraw al
of an y cu rrency for hoarding, nor engage in
an y tran saction s in foreign exchange excep t
such as m ay be undertaken for legitim ate and
n orm al business requirem ents, for reasonable
traveling and o th er personal requirem ents, and
for the fulfillment of co n tra cts entered into
prior to M arch 6, 1933.
“ In witness whereof, I h ave hereunto set
m y hand and caused the seal of the U nited
S tates to be affixed.
“ D one in the city of W ashington this 3 0 th
d ay of D ecem ber in the y e a r of our L o rd one
thousand nine hundred and th irty -th ree, and
of the Independence of the U nited S tates the
one hundred and lifty-eighth.
“ F r a n k lin D. R o o s e v k lt.
“ B y the Presid en t:
“W

il l ia m

h il l ip s ,

“Acting Secretary o f State.’

Reproduced from the Unclassified / Declassified Holdings of the National Archives

FE D E R A L R E S ER V E B U LL E T IN

JV'AY 131
.NUK 9-

NATIONAL SUMMARY OF BUSINESS CONDITIONS
[(Compiled Doc. 22 and released for publication Dec. 24J

T o ta l volume of industrial production, after O ctob er by an. am ou nt so j/ew liat sm aller than
declining fu rth er during (Jcto b er, showed little is usual a t this season. /S a le s of m erchandise
change during N ov em b erV n d tho first half of a t d ep artm en t sto re s/d e clin e d , co n tra ry to
D ecem ber. Tho am ou nt olV on struction under seasonal tendency, w^tfle sales by v a rie ty stores
taken continued to in croas\ reflecting an ex showed little changc
pansion of public works.
W holesale p rices.— W holesale com m od ity
Production and employnitent. —O utp u t of prices, as m easured by the wceklv index of the
basic com m odities, as m easured by the F ed eral B u reau of LaK or S ta tistics, ad van ced from
R eserve B o ard ’s seasonally adjusted index, was 70 .9 p ercen t X f the 1926 average in the first
73 for N ovem ber, on the basis Vf the 1 9 2 3 -2 5 week of N oro m b er to 71 .7 p ercen t in the third
average as 100, com pared w ith A for O ctober. week andyttien declined to 7 0 .9 p ercen t in the
T h is to tal for the m on th reflectA th e m ain te week ending D ecem ber 9. These m ovem ents
nance during N ovem ber, with allpwance for re fle c ty f chiefly changes in the prices of farm
usual seasonal changes, of the levelV eached a t p rodu cts and foods. P rices of hogs declined
the end of O ctober after a continuous decline co n sraerab ly , after the middle of N ovem ber,
during the preceding three m onths. V V ctivity OHgJng p a rtly to seasonal factors.
a t steel mills, after declining from 44 p ercen t of
oreign exch an g e.— T h e value of tho dollar
ca p acity in the cjirly p a rt of O ctober to 3(5 p er , the foreign exchange m ark et ad van ced from
cen t in the early p a rt of N ovem ber, 3ubse a low point of 59 p ercen t of its gold p arity on
quently increased to a ra te of 34 p ercen t i \ t l
N ovem ber 10 to ab ou t 64 p ercen t for the period
third week of D ecem ber.
O utp u t of au to from N ovem ber 27 to D ecem ber 20.
mobiles, which was cu rtailed sharply in No\th
Bank cred it.— B etw een N ovem b er 15 and
ber in prep aration for new models, alsir lit D ecem ber 20 there w as the usual seasonal
crossed som ew hat in the early p a rt of D ecem increase— ab ou t $ 1 9 5 ,0 0 0 ,0 0 0 — in the dem and
ber. C onsum ption of co tto n bv dom esM C mills jor cu rrency by the public.
This currency'
w as in som ew hat sm aller volum e in NAvember | mand was m et largely through the purchase
than in the preceding m on th , and y t i v i t y at o i ^ l 0 0 ,0 0 0 ,000 of accep tan ces by the Fed eral
woolen mills decreased.
A t s h o / factories R eserve banks and the issuance of additional
production showed a decline la rger than is b a n k notes by the national banks. R eserve
usual a t this season.
balances of m em ber banks showed little change
Volume of fa cto ry em p loym cii^and p ay rolls for tlA p e rio d and continued to be a t a level
declined from the middle of O ctober to the of about^S800,000,000 above legal requirem ents.
middle of N ovem ber by som ew hat m ore than
T o ta l lo a n s and in v estm en ts of rep ortin g
the usual seasonal a m o u n t / Tho B o a rd ’s m em ber Bfrnks in leading cities declined by
seasonally adjusted index o y facto ry em ploy $160,000,0(JQ betw een N ovem ber 15 and D e c
m ent for N ovem ber was 72,,/iis com pared w ith em ber 13, re fe c tin g chiefly sales of accep tan ces
74 in O ctober and 57 at the Ipw point in M arch . to the reserve Y a n k s and a reduction in holdings
Value of con stru ction co n tra cts aw arded, as of in v e stm e n tsV th cr th an U n ited S ta te s G ov
rep orted by tho F . W . D odge C orporation , ern m en t securities. L oan s on securities, chiefly
showed a fu rth er su b stan tial increase in to brokers in N$w Y o rk C ity , increased by
N ovem ber. This increase, a t a season when $ 4 0 ,0 0 0 ,0 0 0 , W'hiltkall o th er loans, which in
con stru ction co n tra cts usually decline, reflects clude holdings of ‘..acceptances, declined by
a grow th in the volum e of public works.
$ 1 2 5 ,0 0 0 ,0 0 0 .
Distribution.-—Shipm ents of com m odities by
S h o rt-term m oney ra te s ad van ced slightly
rail decreased in N ovem ber as com pared with during the period.

.N .

si
V

in n on m cron 30, 1933. by

■ assks 40 LiABiuns or soh-i
1

ma sbsrvi bxstbxoh
on

(In ttaoas’r t of dollars)
sis
*

Total

toilaTew York deljphia

Boston

Cleveland Richnond Atlanta

■laireas.?.-,
Kansas
St. | lllnn*
City
Louie | ? lis
e 90

Chicago

Bnllas

Btt
yraaoisQi

1 8 3 1 TS
5**.3»
7.39*
C
7(-r*-r

99,803
10,010

91*192

1>
0»,858

1, 2^8
-'1,752
9,982

11,700
6,108
3,206
10,598

7*570
3.352
2,U62
' 10,717

1.990
93U
667
3,1<*

2,303
53

1,083

I .368
U2

388
21

156

306

111

1.230

365
9
2,367

69*

127
97

.111,825

181,576

bMtii (including overdrafts)
9« 8, Gover n sat securities .
Other eeoorltlss

356*211
59*521

5 ,> 0 1

otal iojh m

572.259

10.777

g ygsn t P T s

QMtooers* liability on account
32
of acceptances
T«*M"g house, furniture, and
U
2,2ft
fixtures
uusift
Other reel estate oimod
13.870
f e h in vnult
ls
68,889
Beserve with 7* R. banks \ f
V /rom banks (including items
- "process of collection,
a
9.07*
vdkanges* etc*)
ern
L. Ids checks and otlaer cash V k s 280
*
ftBOfl^tioa fund and due from
tfclted States treasurer
1.727
Securities borrowed
2*»3
Other assets
7.075

nut

73**.332

930

—
1*62
93
187
1,»M
101

13. 18U

64,166
10,861

l6,2M»
2,
9*19

23.823
^,721

52.3*6
10,61*5

i>».688
u,Wk>

*V * | —
«« V
101.197 2U.193

/v + v
+
3U.1U
1

89.175

?8. 6oi

7. 7
fe

1 5 ,^

—

ZU
JZ
.J

12
1.312
722

—

2.356

15,6*7

7.9?**
1,531

M 93

m m

—

1,193

915

667

8,536
U.053
3,052
lS,058

1,852
801
59*»
3.331

1,982
58

U
lO
16

I9U

Ul9
hi

1U
9
12
l6U

362

35*
39
l.oei

3
9

196

20
2

9*5

31.632 >10,560

12U
.328

23.603

6, 2 3
*»

17.9*6

&
’S
53

2,te7

5 .^

35.930 20, 01*2

116
112
7**7

m
U

1/ Includes Conservators* Spociai Accounts.
. /; .

r< j.

C0NFID1MTIAL
ASSETS iTO LIABILITIES OF TOT-LICENSED MEMBER BASICS ON DECEMBER 30, 1933. BY FEDERAL RESERVE DISTRICTS
1
j

Total

Reserve
Federal
1
v
1 Phila- I _
_ ,[
j Hew York jdol?Ma jCleveland| Richmond Atlanta

1 Boston
I

Chicago
— 1—

B-972a

District
Minn
St.
eapolis
Louis

Kansas
City

San
Francisco

Dallas

L I A B I L I T I E S
Bt

nd deposits
122,951
deposits
336,^19
■ d States deposits
>
2,26l
Due jO banks (including certi
fied & officers1 checks and cash L/c &
travelers checks outstanding)
6 , 2.23
527,85U
TOTAL DEPOSITS
34,608
l?ational~bank notes outstanding
.Agreements to repurchase U.S.
U50
Gov*t. or other securities sold
60,207
Bills payable and rediscounts
Acceptances executed for customers
57
Acceptances executed by other banks
for account of reporting banks
2U3
Securities borrov/ed
Interest, taxes, and other expenses
1,050
■srued and unpaid
4 ,7 0 1
O^her liabilities
6 4 , 220
v ?tal stock paid in
3 2 /4 3 9
Su .us
4,876
Undivided
profits - net
3 ,0 2 7
_
Reserves for contingencies
Total liabilities, including
capital account

2,250
7 ,^ 4

’ 1,521
4
SI ,2 04

2 8 ,2 4 2
6 7 , 51*4

7 ,5 2 6
13,653

8,360
5.3 9 3
16,676 10,45s
6
32

10,926
6,050
23

111
15 , 99 ^

43s
17,^37

1,089

1 1 ,5 5 2
1 3 ,0 91
1 ,4 7 0

3 7 ,6 1 1

539

1 ,5 3 1
9 4 ,6 5 1
7,11 9

593
25 ,6 3 5
2,979

^,555

35
1 ,7 7 6

^5,452

2.797
1 ,^ 7

6,541
6,107

129

4 g4

937

962

-*64

7 ,2 7 9

97,009
b , l 64

21,672

4,306

2,719

5?4

1 . 30 U

78,066
3,103

.23,820

9 .7 * 6

325
21,952
9

1 5 ,9 9 ^

T T
J . J-

2,208

9
4

20
1,015
399
i 4o
32

127

337

449
9,20c
3,020
1,270

137

15,685

9 ,3 9 5
7,^51

33
184
3 ,0 4 5
1,3 7 3

372

246

1,145

11,167
-925/1

453

26,652
1,121
5,^81
37
._

205

1,98 9
3 ,5 1 0
1 ,3 0 4

1,691

200

973

571

105
^,355

1 ,8 8 0

578

131
12,317
564

629

30
24

651

276

1,260

—

.12

205

—

291

158

26
22

176

16
795

1 0 ,9 7 5
4 ,7 8 1

3 ,8 5 0

1 ,6 4 5

2,8 0 5

925

^49

1,6 11

363

301

125

361

130
231

—

512
119
23

199
24

1
IS

2,300
S59
12s
29

73^,332

1 3 ,1 8 4

111,825

181,576

127,423

31,632

Uo,56o

124,328

35*930

20 , 04-2

23,603

6,243.

17,986

512

Fumber of banks

107

‘i l l

U t +

l/ Loss.

FEDERAL RESERVE BOARD
DIVISI017 OF Biac GF3RATIQ1TS

i t J Q i 'i . ic<Ji
/

20,232
57,293

•
’
.-----------------------

Z 5r&

-d * * *

/.#<TJ

4.«>»7

V O .X7 2 -- /
7.1+0 y

3 Z 7 °
7 Z i *

JA L

/ /, 0S 0

7.J7?

_ /o
_

A S3 3
.

______________/

_ U i

./‘ I

/.ft*

1. 32*
........ ”

/.3lg

Z . i i S

, . J ± .

/.L*e

Reproduced from the Unclassified / Declassified Holdings of the National Archives

*~a s

&CjtPh*L ^

* / * ?

Reproduced to m l w UodewMod / DectoeeWed H o ld ln yio f the N ajo oalA rohlw s

December 21, 1933
FOR THE HUBS

m m b m it m
T0B 4Y
*

STATMSBT B7 TIB PRSSH GH
H T
♦

Under the-clear authority grantadrto*aeLby the last sosstm^of the Congress, I have today, by-proclanaation, proceeded to ratify "
the London-agrees^l'vrttlr'rugard. to silver# which has--already been
pot into effect by the Government of India, and which 1 -undarsrtaad
other nations concerned are shoot to act on*
Thi® proclamation, in accordance with the Act of Congress*
opens our mints to the coinage of standard silver dollars from
silver hereafter prodisced in tho United Statos or 1fry possessions,
subject to the depositors of such silver surrendering to the govern**
ment one-half of it as seigniorage and to cover all usual charges
and expenses, The dollars coined from half of such newly mined
silver will he reVjmed'to the depositor* The half surrendered to
the government will he retained in the Treasury*
It will he reoeiriberod that at the London Conference 66
governments unanimously adopted the silver resolution proposed hy
orc governs^nt, providing in substance that these governments
would relVain from the policy and practice of melting up and dobaaing silver coins; that they would replace low-valued paper
money with silver coins; and that they would not enact legislation
that would depreciate the value of silver in the world maxket*
This resolution, however, was contingent upon an agreement* between
the governments of those countries producing large quantities of
silver and the governments of those countries holding or using
large quantities, looking to the elimination of an .unnatural oversupply of silver on the markets of the world* This agreement, of
course, was for the purpose of allowing demand and supply to
govern the price of silver by the limitation and neutralisation
of this oversupply derived frost the melting up of silver coins*
India had the power to dispose of* on the markets of the
world, at any tine, and at any x$ice,, hundreds of millions of
ounces of silver* In fact, India had the power and capacity to
drop silver derived from the melting up of Indian silver coins in
an amount equal to the world’s production from the mines for
the period of two years* This power and the uncertainty attending
its execution was destructive of -the valde and stability of silver
throughout the world.*
* i

•

China agreed, during the period of four years commencing
January
1934 and ending January 1, 1938, not to permit the sale
of any silver derived from the debasing or melting up of silver
coins* Ind?* ag**oed to limit the sales of such silver to a rwrimum
of 35*000,000 ounces annually during such period end Spain Agreed
not to sell in exross of 5.000,000 ounces of such silver Manually
•daring such period* After such‘
sales, these governments are to
be bound by . h general resolution adopted at the London Conferease
te
to which I have heretofore referred.
♦

As a condition of the agreement by China, India and Spain,
however* it was required that Australia, Canada, Mexico* Peru and
the ttaited States should take sllve$ from the proic^.on of thoir
respective mines to the gross amount of 35f
000*000 rau*?* anxrmlly
for such period of four years* The United States* >y rs&eon of its
-large population and its large silver production* agreed to take from
its mines annually at least 34*481*410 ounces of silver duringjruch
period.
.

http://fraser.stlouisfed.org/
mately
Federal Reserve Bank of St. Louis

The production of the United States for 193d was approxi
24*000,000 ounces of silver*

R^pffWlRSSI from the Unclassified I Decla§Sifled Holdings of the National Archives

December 21, 1933
FOR THE PRESS

FOR RELEASE AT SIX Q»CLOCK P.M. EASTERN STANDARD TIME
TODAY

STATEMENT BY THE PRESIDENT

Under the-clear authority grantatMrO'-iaeL.by the last sosslra^
of the Congross, I have today, by-proclamation, procet^lod to ratify "
the London-ag^*©eme^*T7l,
th~repard. to silver, which has-aiready "been
put into effect by the Government of India, and which 2 “
understand
other nations concerned are about to act on.
This proclamation, in accordance with the Act of Congress^
opens our mints to the coinage o f standard silver do.'lors from
'
silver hereafter produced in the United States or its possessions,
subject to the depositors of such silver surrender5:^ to the govern
ment one-half of it as seigniorage and bo cover all usual charges
and expenses, Tho dollars coined from half of such ne^vly mined
silver will be returned-to the depositor. The half surrendered to
the government will be retained in the Treasury.
It will be remembered that at the London Conference 66
governments urKvnimously adopted the silver resolution proposed by
our government, providing in substance that these governments
would refrain from the policy and practice of melting up and dobasing silver coins; that they would replace low-valued paper
money with silver coins; and that they would not enact legislation
that would depreciate the value of silver in £he world market.
This resolution, however, was contingent upoil an agreement between
the governments of those countries producing large quantities of
silver and the governments of those counV.?ies holding or using
large quantities, looking to the elimination of an unnatural over
supply of silver on the markets of the world. This agreement, of
course, was for the purpose of allowing demand and supply to
govern the price of silver by the limitation and neutralization
of thia oversupply derived from the melting up of silver coins.
India had the power to dispose of, on the ntrkets of the
world, at any time, and at any ^jrice,, hundreds of millions of
ounces of silver. In fact, India had the power and capacity to
dump silver derived from the melting up of Indian silver coins in
an amount equal to the world* s production from the mines for
the period of two years. This power and the uncertainty attending
its execution was destructive of -the valiie and stability of silver
throughout the world.'
China agreed, during the period of four years consnencing
January 1, 1934 and ending January 1, 1938, not to permit the sale
of any silver derived from the debasing or melting up of silver
coins, Ind?» asy-ied to limit the sales of such silver to ? r^rimun
.
of 35,000 r
000 ounces annually during such period £.nd Spain A^reod
not to sell in exejs? of 5 :
COO,000 ounces of such silver winuaily
daring such poriod. Aftor such sales, these governments are to
be bound by .the general resolution adopted at the London Conference
to which I have heretofore referred.
#

As a condition of the agreement by China, India and Spain,
however, it was required that Australia, Canada, Mexico, Peru and
the United States should take silver: from the prc.T:a*.v".ca of t>oir
respective mines to the gross amount of 35.000,U00 ounces anmvilly
for such period of four years. The United Shatoe,
r^-i-on of its
•large population and its large silyer production, agreed to take from
its mines annually at least 24,421,410 ounces of silver during;j,such
period.
The production of the United States for 1932 was approxiipately 24,000,000 ounces of silver.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

COINAGE.OF SILVER

BY THE PRESIDENT OF THE UNITED STATES OF AMERICA
A

PROCLAMATION

WHEREAS, by paragraph (2) of section 43, Title III, of the Act
of Congress, approved May 12, 1933 (Public No. 10), the President is
authorized "By proclamation to fix the weight of the gold dollar in
grains nine-tenths fine and also to fix the weight of the silver dollar
in grains nine-tenths fine at “a definite fixed ratio in relation to the
gold dollar at such amounts as he finds necessary from his investigation
to stabilize domestic prices or to protect the foreign commerce against
the adverse effect of depreciated foreign currencies, and to provide for
the unlimited coinage of such gold and silver at the ratio so fixed, * *n;
and
WHEREAS, from investigations made by me, I find it necessary, in
aid of the stabilization of domestic prices and in accordance with the
policy and program authorized by Congress, which are now being admin
istered* and to protect our foreign commerce against the adverse effect
of depreciated foreign currencies, that the price of silver bo enhanced
and stabilized; and
WHEREAS, a resolution presented by the Delegation of the United
Spates of America was unanimously adopted at the World Economic and
Monetary Conference in London on July 20, 1933, by the representatives of
sixty—six Governments, which in substance provided that said Governments
will abandon the policy and practice of melting up or debasing silver
coins; that low valued silver currency be replaced with silver coins and
that no legislation should be enacted that will depreciate the value of
silver; and
WHEREAS, a separate and supplemental agreement was entered into,
at the instance of the representatives of the United States, between
China, India, and Spain, the holders and users of large quantities of
silver, on the one hand, and Australia, Canada, Mexico, Peru, and the
United States on the other hand, tls the chief producers of silver, wherein
China agreed not to dispose of any silver derived from the melting up or
debasement of silver coins, and India agreed not to dispose of over
35.000.000 ounces of silver per annum during a period of four years com**
mencing January 1, 1934, and Spain agreed not to dispose of over 5,000,000
ounces of silver annually during said period, and both of said Governments
agreed that at the end of said period of four years they would then subject
themselves to the general resolution adopted at the London Conference, and
in consideration of such limitation it was agreed that the Governments of
the five producing countries would each absorb from the mines in their
respective countries a certain amount of silver, the total amount to be
absorbed by said producing countries being 35,000,000 ounces per annum
during the four years commencing the 1st day of January, 1934; that such
silver so absorbed would be retained in each of said respective countries
for said period of four years, to be used for coinage purposes or as
reserves for currency, or to otherwise be retained and kept off the world
market during such period of time, it being understood that of the
35.000.000 ounces the United States was to absorb annually at least
24,421*410 ounce# of the silver produced in the United States dfcuring such
period of time.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

-2 -

NOW, THEREFORE, finding it proper to cooperate with other
Governments and necessary to assist in increasing and stabilizing
domestic prices, to augment the purchasing power of peoples in
silver-using countries, to protect our foreign commerce agninst
the adverse effect of depreciated foreign currencies, and to
carry out the understanding between the sixty-six Governments
that adopted the resolution hereinbefore referred to; by virtue
of the power in me vested "by the Act of Congress above cited,
the other legislation designated for national recovery, and by
virtue of all other authority in me vested;
I,
FRANKLIN D. ROCSSTELT, President of the United States
of America, do proclaim and direct that each United States
coinage mint shall receive for coinage into standard silver
dollars any silver which such mint, subject to regulations
prescribed hereunder by the Secretary of the Treasury, is
satisfied has been mined, subseouently to the date of this
proclamation, from natural deposits in the United States or
any place subject to the jurisdiction thereof.
The Director
of the Mint, with the voluntary consent of the owner, shall
deduct and retain of such silver so received fifty per cent
as seigniorage and for services performed by the Government
of the United States relative to the coinage and delivery of
silver dollars. The balance of such silver so receive^, that
is, fifty per cent thereof, shall be coined into standard
silver dollars and tlie same, or an equal number of other
standard silver dollars, shall be delivered to the owner or
depositor of such silver. The fifty per cent of such silver
so deducted shall be retained as bullion by the Treasury ar.d
shall not be disposed of prior to the thirty-first day of
December, 1937, except for coining into United States coins.
The Secretary of the Treasury is authorized to prescribe
regulations to carry out the purposes of this proclamation.
Such regulations shall contain provisions substantially similar
to the provis ions container* in the regulations made pursuant
to the Act of -Cor.grrss, approved April 23, 1918, (40 Statutes
at Large, Page 535), known as the Pittman Act, with such changes
as he shall determine proscribing how silver mined, subseouently
to the date of this proclamation from natural deposits in the
United States or any place subject to the jurisdiction t h e r e o f ,
shall be identified.
This proclamation shall remain in force and effect until
the thirty-first day of December, 1937, unless repealed or
modified by Act of Congress or by subseouent proclamation.
The present ratio in weight and fineness of the silver
dollar to the gold dollar shall, for the purposes of this
proclamation, be maintained until changed.by further order or
proclamation.
Notice is hereby given that I reserve the right by virtue
of the authority vested in me to revoke or modify this proclama
tion as the interest of the United States may seem to reouire.
IN WITNESS THEREOF I have hereunto set my hand and caused
the seal of the United States to be affixed.
at the C^ty of^ ^Yashiip^tor^ tbjis 21gt t^ay of 3 } e c e r ,
in the ye.-ar of our Lord nineteen
hundred and thirty-three, and of
the Independence of the United States
of America the one hundred and fiftyeighth.
FRANKLIN D. R0OS3VSLT
By the President:

WILLIAM PHILLIPS
Acting Secretary of State.

^ B -9 6 9

CONFIDENTIAL

ASSETS AND LIABILITIES OF FOIT-LI CENSED MEMBER BAFKS OF OCTOBER 25, 1933, BY FEDERAL RESERVE DISTRICTS
(In thousands of do 11 ar s)
---------<
--Total
New York

Boston

Reserve
Federal
Phila
Cleveland Richmond| Atlanta
delphia

District
St.
Minn
eapolis
Louis

Chicago

Kansas
Ci ty

Dallas

San
Francisco

A S S E T S

Loans (including overdrafts)
U. S. Government securities
Other securities

505 ,U93
si,6so

1 2 .3 6 9

8 0 ,3 6 2

107,817

81,0 51

1 1 ,1 2 6

l U ,5 U 3

4,847

5,546

2,194

2 3 ^ ,9 9 6

8,749

49,357

10,6 3 6
3 9, 0 2 2

1 1 1,304
19,656

27,543

10,089

25,792
4,899

25,448

1,86s

37,635

9 ,2 0 1

5,752

47,908

1 8 ,0 1 2

TOTAL LOANS AND INVESTMENTS

822,169

22,986

139,808

157,525

133,229

39,892

36,047

178,868

9^,331

272
688
2,710

6,945
2,429
2,651
i4,o44

12,863
6,477
3,229
12,185

4 ,152
2,931
15,171

2,450
1,327
1,058
4,318

1,3 2 2
775
630
2,494

1 5 ,5^7
7.307
5.557
26,537

724
5,632

12,480
445

265
10

1,749
4s

2,407
68

1,507
55

668
37

449
24

3 .6US
in

680
35

386
9
2,578

428
149
931

154
127
100

116

240
1,864
1,457

415

637
i*
2.8^5

17 1
12
359

28,282

171,246

197,737

168 ,512

50 ,13 1

42,288

241,107

62,831

Customers* liability on account
of acceptances
Banking house, furniture, and
fixtures
Other real estate owned
Cash in vault
Reserve with F. R. banks 1/
" from banks, (including items
.n process of collection,
; xchanges, etc.)
Outside checks and other cash items
Redemption fund and due from
United States Treasurer
Securities borrowed
Other assets

TOTAL

39
57,^99
25,905
1 9 ,H7

1,174

2,390

2,256
9,856

1,046,887

—

9,959

—

l/ Including Conservators1 Special Accounts.

9 ,w i

7,935

10,305
3,729
6,105

3,235
1, S44
3S3

5 1 ,1 0 1

21,255

20,139

5,462

15,257

2,5^9
1 ,56s

1,228

1,625
451
596
5,071

755

1,422

161
154
804

563
327
2,613

491
3S

62
2

240
6

423
512
2,752

314

100

^ .9 3 7 ^

203

156

43
51
645

26,777

28,667

7,482

21,827

79
—

—

•

1,779 I

Total

Boston

LIABILITIES
.^mand deposits
257,165
ne deposits
^ 7 9 ,0 7 7
;ed States deposits
2,619
l»ae to "banks (including certi
fied & officers* checks and
cash letters of credit and
8,007
travelers checks outstanding)
71+6,868
TOTAL DEPOSITS
1 7,8 11
+
National-hank notes outstanding
Agreements to repurchase X , S.
I
Gov* t# or other securities sold
U 79
Bills payable and rediscounts
85,65*+
Acceptances executed for customers
63
Acceptances executed by other banks
for account of reporting banks
2,256
Securities borrowed
Interest, taxes, and other expenses
l,?l6
icrued and unpaid
d ^r liabilities
7,976
3 9 ,5 2 0
C&bital stock paid in
Hl+,506
Surplus
Undivided profits - net
15,552
i
+,836
Reserves for contingencies
Total liabilities, including
1,01+6,887
capital account
Number of banks

'4,399
16,355

3 2 , 75 ^

Q
y

26,1+35
l+l

llU

7^3

20,8 7 7
1 ,2 1 8

1 1 9 , 97 '"
^+,733

2 ,5 7 7

21,1+99
11

District
St.
1 MinnLouis jeapolis

Reserve

Federal
, 1 PhilaFew York |
dol?hia

J Chicago

Cleveland

1+ , 206
1+
85,690
213

1,002
13 1,111
7 ,7 2 0
325
2'4 , 3 i+9

•10

Richmond

Atlanta

38 ,0 3 3

12,692

39,005
261

2 1 ,8 8 3
130

9,75s
15,186
1,530

65,260
107,821+

2,613
175 , S7 S
12,703

391+

B -9 6 9 a

CONFIDENTIAL

ASSETS A10) LIABILITIES OP NON-LICEMSED MEMBER BANKS ON OCTOBER 25, 1933, BY FEDERAL RESERVE DISTRICTS
(In thousands of dollars)

181

837
12 8 ,1 8 6
S ,55 5

35,101+
3 ,0 8 5

551
27,025
1,21+1+

5 . 3 C3

l+,^02

5,926

2
1+
13,369

Kansas
City

San
Francisco

D a lla s

7,017
19,29^
26,80^ 13,167
SU
23

12,867
7,561
102

3, *+22
1,1+88

46 ,-919
3.^31

ll +7
20,351+
1,56s

53s
21,06s
2,022

95
5 ,0 1 3

1 5 ,3 5 5

l+o
2,615

1,503

1 ,2 1 8

51*+

1,7 9 9

7,*+63
7 , 67*
+
37

181

737

619

863

—

1 , 861+

1U9

127

2S9

135

2,001

5
90
1,990
993

508
1+19
13,025

493

3 ,o i + i

16,525
11,565
2,962

522

1 ,2 2 3

3,331
5+
*7

2 ,1 3 2
711
59

28,282

171,21+6

197,737

168,512

110

5,506

759

189
1 . 18 U

kSl
12,050
9,561

15I+

23
2 ,2 8 0

102

3 ,1 3 0

763

6l6
326

683
361

1,030
261

3 ,^ 3

—

6,665

525

22,015
9,012
2,970
1,1*90

321

50,131

1 2 ,2 8 8
+

21+ ,1 0 7
1

62,831

26,777

l+l

199

U ,2 9 0

3,760
1 ,3 4 6
337

1,951

3
23

2 ,6 5 0
330
221

28,667

7 ,^ 2

21,327

1+
8

FEDERAL RESERVE 30ARD
DIVISION OF BANK OPERATIONS
v 4 , Cf sf ' ' s / J v / <
£■'./
*
I ..... y
'
/; J J
,/rs
/ /
t
/ U •r '
•
------------------ - •

' v • t 't ' ^

/.V3/

A t Si/. ___ L£A i
J.P31

/V*/

M is

tMxs____ £_Z1 1 _.

1 - M L ...J A M * ..

l .o l l

3 .1 * 1

/■V i

r» < i

J./V J

S o *

HU
2 2^1

/•S1U

2.1&

r * i

£ J /3

Reproduced from the Unclassified / Declassified Holdings of the National Archives

Saptaobar

an h ,

1933.

Mr. XUla D. Ba*b,
lltiO O ftl

6th T tdm l a m m D iiiriit,
606 Tint BilioMl Budc MUdi^g,
Attaala, Georgia*
/
Dear ii* HoMi*
fr

,
/
/

Tcmr le tW of S ^ M t r 38fe/^e the
Oororaor find* him aeay tfrom the 'office' for a fiwr
day*, hwwwi upon hle/vetixxti, I will
wry glad
ia&Nd to plaM the la m ftllM eontainad therein he*
fore Mu*
/
IUfMWMPh ee you haw already written
the Controller, kulai hie attention to the faet
that the delay in Worgeni ration, or reopening, of
eoae of the hanks in the 6th Itoderal 3eoem District
is due to the inability to obtain returns tpon applioatione aade for loane froa Toderal land Banks at
Coloefeia, South Carolina, and LoulivUle, Eentodlqr, X
aa ewe that hie department will bring all preeeure
possible to hear to eee that theee applications are
aetad on pvoaptly*
I f m oen he of any service to you in
addition to thle, pleaee do not heeitate to call on
ue and, with kind pereonal regards, I am

Sincerely yoora.

HWUiW

H* timer Martin,
Aacistant to the Ooiemor.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

TR EA SU R Y DEPART
OFFICE OF
COMPTROLLER OF THE CURREN

SEP 27 1933

CHIEF NATIONAL BANK EXAMINER
S ix th F e d e ra l Reserve D is t r ic t
608 F ourth

n a t io n a l , b a n k b u i l d i n g

A TL A N T A . G A .

September 25, >1933

HON. EUGENE R. BLACK,
Governor Federal Reserve Board,
Washington, D* C.
Dear Mr* Black:
During the short period of time I had to talk wi
you the other day in M Newton's office, I intended
r*
to call your attention to the fact that some of the
delay in the reorganization, or reopening, of some
of the banks in the 6th Federal Reserve District is
due to the inability to obtain returns upon applica
tions made for loans from Federal Land Banks at Colum
bia, S. C. and Louisvllla,
—
——
Every few days I am in receipt of
at Jackson, Ga«, Fitzgerald, Ga*,
and possibly other places wherein
they appear to have no success in
refinanced*

letters from banks
Fayetteville, Temu,
it is alleged that
getting their loans

I have already written a letter to Comptroller O ’Connor
upon this matter, and only desire to inform you as to
the situation, as I know you know we are all so anxious
to get money available to depositors in these closed
banks.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

1.1.

i A I. v L - i . Z. \J .
. .

Holatirij; to the Sale and Expert of Gold
R e c o v n v o . f r o ::. * C & u ira i

D c ^ -o ^ its

AUG 2 9 1933

2 y virtue) of the: authority veste: in r; by Section «( d ; oi
<
:
re
the Act

f October 6, 1917, as a.?.r:i~ed by Section 2 ox the Act of

March 9, 193ot entitle:: "Ar* Act to Provide Relief i . the Existing
r
>Tationai Eia^r-jency i . Banking a*:. for oti.fr F u n cses", I,
r
r;:
j. KCG3EVEL7, PRESI D I " of tho SUITED SPATES C? AMERICA, dc declare
E.:
that a period of national emergency exists, and by virtue of saia
authority and of ail other authority vested i - : . , do hereby iissue
r :e
f
the f:liOT.inr executive order:
The Secretary : f tho Treasury is hereby authorized to receive
:
on consignment for sale, subject to such rul.;S and regulations and upon
such ccnaiticns a i nc shall proscribe, rold recovered i
i
rorr. natural
deposits in the United States or any place subject- to trie juristic tier*
thereof.

Saies cfiy be made:
(a)

To persons lic-onsei to acquire ?",: ior use in
..li
■the arts, industries or professions, cr

(b)

I y export lo fo roign pure reisers.
<

Suck sales shall be maie at a price v /h ic h tkc Secretary sha,.l
determine to be ocjual to the best price obtainable in tk-e iree tj^la
markets of the world after taking into considerati:n any incidental
expenses such as ahi'.rinj: costs an- insurance.
Such sales may be r aac* thresh the Federal reserve banks or
x
such other agents as the Secretary ir&y ir i . tr . ? to time uesj.*r.a■e
j : iro
. an« shall be subject to such char^cs as the Secretary aay i : r tirre
r:.
to tine in his jui.4Tr.ent determine.

Reproduced from the Unclassified / Declassified Holdings of the National Archives

~ 2

Every person depositing gold for sale as provided herein
shall be deemed t. have agreed to accept as conclusive without any
oright of recourse or review, the determination of the Secretary or
his duly authorized agent as to the amount due such person as a
result of any sale.
Consignments shall be sold as nearly as may be in the order
of their receipt.
The Secretary of the Treasury, in his discretion and subject
to such regulations as he may prescribe^ is hereby authorized to issue
licenses permitting the export of articles fabricated from gold sold
pursuant to this executive order.

This executive order may be modified or revoked at any
time*

ERAMKLIN D. ROOSEVELT

THE WHITE HOUSE, "
August 29, 1933.

Keproduced from the Unclassified I Declassified Holdings of the National Archives

August 38t 1933*

r n w M i Mfli . f l a m i M H a i •

X mup Oo v m m ? Harrleras
N
ttaar t e i a f©» ycmr
hrti

ff
t

j f i h ooaflawi
noa

« r reooHectlan of the mrlous laoidfnts* X hi«fd the etataaeat the
q
other dap that ml U»30 p««u on the m l n g of tttrdh Sid, tb» Beard
m i IsfoaaeA offlaUllr that the (krveamont of Htv Toxic and XlUaote
had deaided to dictate a etate ImbOc holiday* X taum that this oould
at! f e oometf aa
e
anoh M m

notea ahov that *e did aot ten that kaadedji

3i00 ow 3»3D lob ea Satariay nonin^ Ifanti 4th, and

ywsr reotfUeotioa verifies this*

staaere&jr youum.

Ur* OMfgi L. HavrUoi, Oorenterf
fftde*ol Boeem Baafe,
See YoA; O t r V* I*
lj*

Reproduced from the Unclassified I Declassified Holdings of the National Archives

{ I * ' 1
EXECUTIVE ORDER
Relating to the Hoarding. Export, and Earmarking
Of Gold Coin. Bullion, or Currency and to
Transactions in Foreign Exchange

AUG 28 1933

^■ virtue of the authority vested in me "by Section 5(b) of the
Act of October 6t 1917, as amended . y Section 2 of the Act of March 9,
b,
1933,• entitled "An Act to Provide Relief, in the Existing National
Emergency in Banking and for other Purposes," I, FRANKLIN D. ROOSEVELT,
PRESIDENT of the UNITED STATES. OF AMERICA, do declare that a period of
national emergency exists, and by virtue of said authority and of all
other authority vested in me, “ hereby prescribe the following prodo
^ visions for the investigation and regulation of the hoarding, earmark
ing, and export of gold coin, gold bullion, and gold certificate's by
any person within the United States or any place subject to the juris
diction thereof; and for the investigation and regidation of trans
actions in foreign exchange and transfers of credit and the export or
withdrawal of currency., from the United States or any place subject to
the jurisdiction thereof by any person within the United States or any
place subject to the jurisdiction thereof.
Section 2,

DEFINITIONS.

As used in this Order the term ’person”
’

means an individual, partnership, association, or corporation; and the
term "1ihe United States" means the United States and any place’ subject
to the jurisdiction thereof.
Section 3.

RETURNS.

Within fifteen days from the date of this

Order every person in possession of and every person owning gol’
d-coin,
gold bullion, or gold certificates 'shall make under oath and file as

Reproduced from the Unclassified I Declassified Holdings of the National Archives

2 -

hereinafter provided a return to the Secretary of the Treasury con-,
taining true and complete information relative thereto, including tho
name and address of the person making the return; the kind, and amount
of such ccin9 bullion, or certificates held and the location thereof;
if held far another, the capacity in which held and the person for whem
held, together with thd post office address of such person; and the
nature of the transaction requiring the holding of such coin, bullion,
or certificates and a statement explaining why such transaction cannot
be carried out by the use of currency other than geld certificates;*
provided that no returns are required to be filed with respect to
(a)

Gold coin, geld bullion, and geld
certificates in an amount not ex
ceeding in the aggregate $100 be— •
longing to any one person;

(b)

Gold coin having a recognized spe
cial value to collectors of rare
and -unusual coin;

(c)

Gold coin, gold bullion, and gold
certificates acquired or held under
a license heretofore granted by or
'under authority of the Secretary of
the Treasury; and

(d)

Gold ccin, gold bullion, and gold
certificates owned by Federal re
serve banks*

Such return required to be made by an individual shall be filed
with the Collector of Internal Revenue for the collection district in
\

which* such individual resides, or, if such individual has no legal
resideiioe in the United States, then with the Collector of Internal
Revenue at Baltimore, Maryland,

Such return required to be made by

a partnership, association, c? corporation shall be filed with the
Collector of Internal Revenue of the collection district in which is
located the principal place of business or principal office or agency

Reproduced from the Unclassified I Declassified Holdings of the National Archives

3 -

of such partnership, association, or corporation, or, if it has no
principal place of business or principal office-or a^enpy in the United
St4tes, then with the Collector of Internal Revenue at Balti^o*.*.,Mary
land,

Such return required to " e r a i " y an individual residing in
b oie b

Alaska shall-be.filed with the Collector of Internal Revenue at Seattle,
Washington.

Such return required tc.b e made by a partnership, associar*
-

tion, or corporation having j-tB principal place of business or principal
office or agency in AJ.aiak?\ shall be-filed with the Collector of Internal
Revenue at Seattle, Washington.
The Secretary of the Treasury may grant a reasonable extension of
time for filing a return, under such rules and regulations as he shall
prescribe,

No such extension shill be for Liore than forty-five days

from the dato of -this Executive Order.

An extension granted hereunder

shall be deemed a licenso to hold for a period ending fifteen days
after the expiration of the extension.
The returns- required to be made and filed under this Section shall
constitute public records; but they shall be open to i-ublic inspection
only upon order cf the President and under rules and regulations pre
scribed by the Secretary of the Treasury.
A

return made and filed in accordance with this Section by the

owner of the gold coin, sold bullion, and gtfld certificates described
therein, or his duly authorized agent, shall be deemed an application
for the issuance under Section 5 hereof of a license to hold such coin,
bullion, a < L certificates.
nj
Section 4.

ACQUISITION OF GOLD COIN AND GOLD BULLION.
T —

' L 1

No person

other than a Federal reserve bank shall after the date of this Order
acquire in the United States any gold coin, geld bullion, or gold

Reproduced from the Unclassified I Declassified Holdings of the National Archives

4 ~

certificates except under license therefor issued pursuant to this
Executive Ordert provided that member banks of the Federal Reserve Sys
tem naay accept delivery of such coin, bullion, and certificates for
surrender promptly to a-Federal reserve bank, and provided further
that persons requiring gold for use in the industry, profession, or
art in which they are regularly engaged may replenish their stocks of
gold up to an aggregate amount of $100, by acquisitions of gold bullion
held under licenses issued under Section 5(b)t without necessity of
obtaining a license for such acquisitions.
The Secretary of the Treasury, subject to such further regulations
as he may prescribe, shall issue licenses authorizing the acquisition
of

(a)

Geld coin' or gold bullion which the
Secretary is satisfied is required
for a necessary and lawful transac
tion for which currency other than
gold certificates cannot be used,
by an applicant who establishes
that since March 9, 1933, he has
surrendered an equal amount of gold
coin, gold bullion, cr gold certif
icates to a banking institution in
the continental United States or to
the Treasurer of the United States;

(b)

Gold coin or gold bullion which the
Secretary is satisfied is required
by an applicant who holds a license
to*export -such an amount of gold
coin or gold bullion issued under
subdivisions (c) or (d) of Section
6 hereof, and

(c)

Gold bullion which the Secretary*
or such agency as he may designate,
Ss satisfied is required for legiti
mate and customary use in industry,
profession, or ar.t by an applicant
regularly engaged in such industry,
profession, or art, or in the busi
ness of furnishing gold therefor.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

5 -

Licenses issued "pursuant to thi.s S6(5'tion shall authorize the holder
to acquire gold coin ar.& g'old ■'bullion only from the sources specified,
by the Secretary of the Treasury in regulations issued hereunder.
Section 5.

HOLDING O F GOLD CO E L SOLD BULLION. A f D GOLD
il

CERTIFICATES. ‘ After thirty days from the date of this Order no person
shall hold in his possession or retain any interest, legal or oquitafclo,
in any gold coin, gold bullion, or gold certificates situated in the
United States and owned by any person subject to the jurisdiction of
the United States, except under license therefor issued pursuant to
this Executive Order; provided, however* that licenses shall not be
required in order to hold in possession or retain an interest in g,old
coin, gold bullion, or gold certificates with respect to which a return
need not be filed under Section 3 hereof.
I

The Secretary cf the Treasury,, subject to such further regulations
as he may prescribe, shall issue licenses authorizing the holding of

(a)

Gold coin, gold bullion, and gold
certificates, which tho Secretary is
satisfied are required by the person
owning the s i ' for necessary and
sme
lawful transactions for which cur
rency, ether than gold certifi
cates, cannot be used;

(b)

Geld bullion which the Secretary,
or such agency as he may designate,
is satisfied is required for legi1>imate and customary use in indus
try, profession, or art by a person
regularly engaged in such industry,
profession, ox* art or in the busi
ness cf furnishing gold therefor;

(c)

Gold coin and gold bullion cajvmarked or held in trust since be
fore Ap*il 20, 1933, for a recog
nized fcrei/n government cr foreign
central bank or the Bank for Inter
national Settlements; and

Reproduced from the Unclassified I Declassified Holdings of the National Archives

(d)

6 .-

Gold coin.
aijd. gold Lull ion imported
for reexport or held pending action
upon application for export licenses.

ASP EXPORT OF GOLD COIN AMD G-OLP BULLION.

Section 6.

After the date cf this;Order no person shall earmark or export any gold
coin, gcl& bullion, or gold.
certificates from the United States, excopt
■under license therefor issued by the Secretary .of the Treasury pursuant
to the provisions of this Order.
The Secretary of the Treasury, in his discretion and subject to
such regulations as.he may proscribe, may issue licenses authorizing

(a)- The-expert of gold coin or. gold
bullion earmarked or held in trust
since before April 20, 1933, for a
recognized foreign government, for
eign central bank, or the Bank for
International Settlements;
(b)

The export of gold, (i) imported
for reexport, (ii) refined from
gold-bearing materials imported oy
the applicant under an agreement to
export gold, or (iii) in bullion
containing not more than five ounces
of gold per ton;‘

(c)

The export cf gold coin or gold
bullion to the extent actually re
quired for the fulfillment of a
contract entered into by the appli
cant prior to April 20, 1933; but
. not in excess of the amount of the
gold coin, gold bullion, and gold
certificates surrendered by the
applicant on or after March 9, 1933,
to a banking.institution in the
continental United States or to the
Treasurer of the United States; and
I•

(d)

The earmarking for foreign account
and/or export of gold coin or gold
bullion, with the approval of the
President, for transactions which the
Secretary,,of the Treasury may deem
necessary to promote the.public
interost.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

-7 -

Section 7.

UNITED STATES POSSESSIONS - SHIPMENTS THERETO- The
.

. provisions of Sections 3 and o of this Order shall not app^y .j jj i d
ts t l
coin, gold "bullion, or gold certificates which are situate# ffl. $he
Philippine Islands, American Samoa, Guam, Hawaii, Panama Canal Zone,
Puerto Rico, or the Virgin Islands of the United States, and ai*e p'wncd
"by a person not domiciled in the continental United States.

The

provisions of Section 4 shall not apply to acquisitions by persons
within-the Philippine Islands, t
American Samoa-, Guam, Hawaii, Panama
Canal Zone, Puerto Rico, or the Virgin Islands cf the United States
of geld coin or gold bullion which, lias not been takenvor sent thereto
since-April o, 1S23, from the continental United States-.or any place
subject to the jurisdiction thereof.
Section 6.

Until further order, the Secretary of the Treasury is

■ authorized, through any.agency that he may designate, to investigate,
regulate, or prohibit, under such rules and regulations as he may pro
scribe, by means cf licenses cr otherwise, any transactions in foreign
exchange, transfers of credit from any banking institution withi:. the
United States to any foreitjn branch or office of such banking institu
tion or to any foreign bank or banker, and the export or withdrawal
.of currency from the United States, by any person within the United
States-}- and the Secretary of the Treasury may require any person
engaged in any transaction referred to herein to furnish under oath
complete information relative thereto, including the production - f any
.
books of account, contracts, letters, or other papers, in connection
therewith in the custody or cantrol of such person either oefore or
after such transaction is completed.
Section

The Secretary

the Treasury is hereby authorized

Reproduced from the Unclassified I Declassified Holdings of the National Archives

8 -

and empowered to issue such regulations as he may deem necessary to
carry, out. the purposes cf this Order,

Such regulations may provide

for the-doteiiti-.n -in the United States of any gold coin, gold bullion,
fe^ftificates'sought to be transported "beyond the limits of
■ 1-r'-

the continental United States, pending: an investigation to determine
■if such coin, bullion, or certificates are held cr are- to be acquired
in violation cf the previsions of this Executive-Order.

Licenses and

permits granted in accordance with the provisions of this Order and
the regulations prescribed hereunder, may be issued through such
officers or agencies as the Secretary may designate.
Section 10,

Whoever willfully violates any provision of this

Executive Order or cf any license, order, rule,or regulation issued
or prescribed hereunder, shall, upon conviction, oe fined not more
than $10,000, or, if a natural person, may be imprisoned for not more
than 10 years, or both; and any officer, director, or agent of any
corporation who knowingly participates in such violation may i
punished by a like iine, imprisonment, or both.
’
Section 11.

The Executive Orders of April 5, 1933, Forbidding

the Hoarding of Gold C^in, Gold Bullion and Gold Certificates, and
April 20, 1933, relating to Foreign Exchange and the Earmarking and
Export cf Gold Coin or Bullion or Currency, respectively, are hereby
revoked.

The revocation of such prior Executive Orders shall not

affect any act done, or any right accruing or accrued, or any suit
or proceeding had or comi-ioncod in any civil or criminal cau&e prior
to said revocation, but all liabilities’under said Executive Orders
shall continue and may be enforced in the same manner as if said revocartion had not been made.

This Executive Order and any regulations or

Reproduced from the Unclassified I Declassified Holdings of the National Archives

licenses issued hereunder may " e modified cr reTcked at any time.
b

FRA.2IKLIN B. ROOSEVELT

THE WHITE HOUSE,
Augus t 23 v 1933.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

AUG 2 2 1933

Xm .

Mr• Hamlins
Thank you very much*

As a matter of

fact, the Board’s first definite report was at
2}22 a* m. when Mr. Mills reported that win all
probability the Governors of Illinois and New
York would declare bank holidays” and it was not
until 2:45 a. m. that Mr. Stevens reported
that a proclamation was being drafted and at
3:20 a. a. he reported that the holiday would
be declared by the Governor,

C
M

Reproduced from the Unclassified I Declassified Holdings of the National Archives

(Lottoxfeort if)
yiPBUI HB8KRVX B1HK OF

JO* YOfflt
AVgomt IB, 1H8 «

U n o M l oad

tear (tovmer Hudia,

X hiii

m w r l i g your litter of A«|aot 0 ^ n t U

X ooold doflaltoly A»ik up Iuhm oad daWo*

A l l X t o n not

finally doao i m aoo, bat a r m o U n t l M 1$ thftt oil durlac tho
j
day of M*roh 8 Q o n m r Tohaao took tho pooltloo that ho ooold lot
dooloro o itito holiday ot Itoroh 4 ualooo oxpnooly »|Mitod to
do oo by tho Mow Tork Clearing Bouoo Oon&ttoo oad probably « m
by tho Todoral Rooorvo Buk ao voll* At o m tlaa durla* tho day
ho lomod a otatwaont that he had ao latoatloa of doolorlag oaoh
a holldayt but lato Friday night (March 8) ho roqpootod tho mm»
boro of tho Oloarlag Houoo Ooaadttoo, ao vtll ao ayoolf to go to
hlo apartMSl to dlooooo tho mttor*

X oArlood hl» that X oao on*

ablo to co at tho tlat ho roqoootod booaooo of tho foot that X had
to

to o * la

at tho bank, la ordor to bo la ooaotoat touch with

Vaohlaftoa oa tho tolophooo*

Xa foot, yoo m y roaMfeor that lato

lato that al^ht Mr* UUlo oad tho Dnoltet ooro otlll dloooaolag
tho pooolblllty of a aotloaal holiday, aad Mr, Mlllo aokod ao aot
to loovo tho baak oatll X «ki onpvoooly rolooood by him.

Ooaoo*

qaoatly It too aot aatll veil oftor iltal^t, vhoa Mr, Hilo told

m that tho Prooldoat had finally doflaltoly dooldod aot to doolaro
a aotloaal hoi1dayt that X wont uptown to Qovoraor Lohaoa*o

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Governor Bsualin*

8/15/38,

apartment.

Be and maaber* of the I York Clearing Bouse Comalttea,
lew
representatives of various private banking firm and others foiwed
a group* I should say9 of about twenty-five sen when I arrived.
It was agreed that the Governor would declare a holiday for two
daysf Saturday, March 4, and Monday, Nareh 6» with the understand*
ing that he would sake a statement to the effect that he had done
so at the request of the Clearing Bouse Comittee and with the ad*
vise and reeomendatien of the Federal Reserve Bank of Hew York*
It was well after two o*eloek Saturday aornlng (about two-thirty,
as I reatafeer} when this deeision wae aide, and I lnnedlately went
to the telephone and advised our dlreetors9 #10 were still ls see*
j
eion9 and also advised Seeretary m ils who9 as you will reasriber9
was with ths Federal Reserve Board at the tine*
I hope that this eovere all that you have In mind*
Ihithfuily youra,

(Signed) GEORGE L. HARRISON

Bon* Oharles s* Hamlin,
Federal Reserve Board9
Washington D« 0*

Reproduced from the Unclassified I Declassified Holdings of the National Archives

(Uttexfcoad of)

nmBkh RESERVE

BUIK 07 CHICAGO
August 11, 19BS*

Hon* 0. s. Stalin
Ifirtir, federal Reserve Board
Waahiagton, E. C.
Dear Kr« Bnl&it

I aa today In rooelpt of yours of tbs ninth, with reapeot
to tftia Proelaaation issued by tbs Governor of Illinois for a bank
holiday o t Harsh 4, l u glad to give you as elosaly as I oan ay
f
rvoolleetioa of this event*
Tho Chisago Clearing S o w Coaalttee v a s in eeaaion in ay
offioe aoat of that nigh* a s it had b e « a for so bs days previously.
Via Governor of Illinois «as oallad la oarly in tho evening of Haroh
8, and afterwards returned to his rooa* in tho hotal for further
consideration and tha awaiting of dovolopassts. Hy reoolloetion and
that of a nus&er of other* lbo vara hara is that ho ratumad a^ln
to our offloas about lliSO p. »• or possibly a littlelater. A great
doal of dissuasion was had and tha Governor naked two or throo
lavyera, vho vere prevent, to work out a tentative draft of a
Proclamation if It ahould be found naaaaaary to iasua euoh. In tho
asantlae, ve vara in oonatant aoavanlaation not only vlth Washington,
but Vlth Ha* York, and particularly in tha latter oaaa as to vhat
aatlon Governor Lahaann of that Stato vaa taking* Later, tha propoaad draft of tho Proelaaation vaa suba&ttod to tha Governor m our
offloa and aa a nuaber of us atood around, ha ande ease tfennges in
tho phraeeelogy and diaousaad it with all of us#
In tho hootlo areata of tho n
igfct, none of us aro quit#
alaar aa to just tho hour at vhlah tha Proolaaation vaa finally signed,
but those vhosi I hare aonaultad agree vlth as that it anst have boon
after one o’alook, and probably oonaidormbly later. I aa also quito
sure in w f leoolleetioa that laaodiately upon tha signing of tho
Proelaaation, ve notified the federal Reserve Board in Vaahlngton.
l y underatanding la that vhen tho Proelnaation vaa finally
l
elgaed ( think nearer two o’eloek than one) tho offiolal Proelaaation vaa
I
datad as of Hi 46 p. a. Marah S, as tho Governor for sons reaeon thougit
it dealrable to have tho Proalanatlon dated tho day before ite being
published.
I trust that this vill give you uhat you desire and am sorry
that I oaanot be aore oxplloit aa to the eznot hour.

With poraonal regarda, 1 aa
Very truly yours,
ZTKXBOE M. 8TKVKHS
Chairaan.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

w ■ ro m * s section
>
APR 3 0 1941 “V

Aaga«t

SNNMr MF* SlWPKWBII

aa fiois^ wvwr aam rwswrds af a$3§W wad awnt* ta vwrijy
n

nn*ti11 watr!##* X fiad w® entry that we did ao% kaew definitely
that the C e r w r af Xlliaeis I I ieeaed a jraelaeelfciea fWr a
f fe
mm
\m a k holiday w U l m

tin beteeea St00 aad 3«00 a«a* I a r h f t «
fue rh

Will y m kindly let aw taaa

first yea kamr .the Q & rm rm r

wewld aBPwly da t x e p tad wImmi ysa r j w f w it t . t w Batrdf Yhlji
tiy
ewHed
e Ji
i e warwly fWr the jpwri&se af I s p S g wy rsearde straight*
.
cw'a

Siaeersly years*

Jmgait •« 1 9 0

tear f l v m w r Barriaow
la looking « n r an aid diary* X find tfca notation
that w

raetivtl w A from yoa that tho Qvvontr of ®aw Yovfc

ptiltinly U « w a p m l a a t l o s ftr a bank holld^r
N M t e r i bctvon tiOO tad 3*00 a«a* on Marak 4tiu Villi job
k i n A j k t ■ * Io

n e a r ly

m uv

af tklif and vhon yoa aact it to tha BaardV
to aaajflafra ay r»— rdtu
Slnaarely yours,

Mr* a— i§ U Harriaoa, OoT*rr*r#
radaral taaarva Bvk,
lav lark City, *• T.

j» u te m

M « is ■swly

Reproduced from the Unclassified I Declassified Holdings of the National Archives

^ 7

0 .

Jfe^aat Of 1933

s r Jm m J*a a a t CfeaUaaa,
i*
m w ir tiw r t U i Vtttaaaa C arp arattaa*
I * 0*
X

M r * . Jaaaat

I J l f l l Wllf l* H Mjfr/faaa tfca PIKIMII «r
Ihi i p i t r i M r t «f • I m M i m m I I I w I*

aagkly t t i
« l t n H « i l i wriar M
Hui fo U iM lis j p A U r
Om
(1 ) K ia fla t ftpift M
baaka, ttMkt « • i p i i

H m n

m a * r an iatrtT

i , aay aatally 11 f a i l

(* ) t i t W r t n Ih i m t t t t n cf baaka f i l t e r
I m D l i t n m ^ i i f i f i w i l i I m i iaaaaa*
{1 }

m k& m aaaaaaaay

m —y r t i

fir

(4 ) a w a p i l i t l t l w r t fcaaka o r t o n t t M a i
tfea \ * a tta a «T H f l M i m n H lft tltta a r
a r vltfcaat
oaaaraaart aaa&ataMaa %o 4topoa&taai aC aXaaaA kattka*
a

Tkaaa fH H liM ara
M fU y ia ta a la a t l a
r t a a , f l n l t a * Dm jr> a> rt t w l t n attaafciaa* n l awna d, tfea
aaaaaaftty a f • —H w t t tfea a a a i H « o f aa— iifcir fcaaka I r
January l a t m l a f aaaftar tattks tp l d | U l I s aaaaaaklaa « ltk
%ka dtapaaift gaapaatyy fkaitMPa*
Qa m k I ttia a ia r aa t n katrtac a a a a tla g of tba
F iia r a l M m 4 *a a t* a f H a « m ! v» fada ra l Da aim Baaftoa*
Ca yaa%ar4ay I a a a t a a a t a f tk aa a M i ^ n a , aagy aC i t t i t l i
aai hanrtlaa yea* ia a a l l l a a ta tk a t » m # tka aad&aa a f tk taa
l a l » « w i I M s * t a c a t m y f a l l iafW aaH aa aa ta tka a a ttaa
a l > a M < a tt a a tta a , la a la d ta i a m tm r aad aaaaaik ir kadka, aa

tat s n a

tnrttRhisa

af Ik# kaaH aa i|^aHaa»

XI
te a aaaanraA ta aa Hut I f yaa aarill l a a *
d i a M y k a a yaar a f fla a a a a ly ii ilia a ita a tta a a* a l l kaaka

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Mr* Jeoae Joaaa • 2*

to which you have made l a m a or tram ^ i e h you hmw purchased
proferr©d stock th© infarmation In tMa
obtained mould
add T«ry largely to the daaired jieture of the gacaral banking
situation, and this latter ia arittan and eopy of wy tale gram
aneloeed to Immlm your aid in thia v g . X taaow you will aot
ar
ad sunder at end bo whan X emphasise the iiaportiffltae of thla boing
undertaken immediately#

With xo ragarda* I era
ar
Sincerely youra,

Governor*
B-0

Reproduced from the Unclassified I Declassified Holdings of the National Archives

7 0 .

JBtgamt 8 , 1998

Mr. J , F . T» O'Connor,
G onptrallar of tba C v m a e^ ,
iM h lagton , D. C,
Daar Mr* o *C om *t

^ ^

I to ro
Pinnidont o f
tfca app«lnta»at o f ii banking aoo altto o to lm n tlf lr ta t t a r cogfely tba banlriag adtantlon 1a crdaar tfcafc m m or aoaaldar th *
following problana;
(1) Eaaplng opao bonks, a a p a d a lly Uo«aM d
bank*, th a t ara opou

(8) Bit ta r lag tba condition o f baakn a ltb a r
lo a a lly or throng* j r t f « r » d ataok I m v m ,
(8)

Staking aaoaaaar y o ra d lt v r « s « M l « fa r

bmikM*

(4) BM Sgaalaing < lo w l basks or oonaidarlng
tha qpaatloa o r dlTidand paynanta alttaar with o r allfeont o o n n M at
to dap oaitara of alaaad banka*
Tbana qpaatloaa aaa o i l highly tn p o rtaat lm naw
firafc o f th® priM nt banking alto n tio n and aaoond tha oaaaaai ty
o f o m u tM a g t t i M o d iU o i of mmmmtow beak* bjr January l i t
and of naabar banka by Ju ly I H la aean aatlea nith tha dapoalt
guaranty faatu ra*
Ob nazt Tuaaday ao axa baring a mating «f tha
Tadaral Raaarra Agwla of tha tnalm radaral Raaarva BaUoa* On
yaatarday I aait ««A of th«K a talaffrm, oopy of ahlab I am
handing *«*. Ton will nota that thiwgh tha Mdltsa of thia tala*
graa I dtairo to gat w y full lnfcnation as to tha national
banking aitt r ion, Inolading na*or and nmawjinn banka, ao that
at
«lth aab lUfocmatlon aa can gat • piotara of tba taak bafera
ua and having that platcora nay got a aolstlon of the banking
qoaatlosu

In th ia oonnaetlea I t baa ooounrad to m th a t I f
yon aould hara your o ffio a analyse tha a lta a tlo n l a n ation al

Reproduced from the Unclassified I Declassified Holdings of the National Archives

M J* F. T. 0 •Connor * Z
r*

banks under your jurisdiction b o tbat the situation i n these
national banks a&ght be shown directly from your office if
wcriM add *ery greatly to the picture that m are trying to
draw of the general national situation, and this letter is
written and cojy of w telegram to the Federal Reserve Agents
is sent in order to invoke this effort on your part*
I am certain you will not misunderstand m when I
emphasise a feeling that it would be most advantageous ftor
jr
this to be undertaken at once*
With w

regards, I am

Sincerely yours,

Governor*

B-C

Reproduced from the Unclassified I Declassified Holdings of the National Archives

y-yo,

Auguet B, 1933

H r. f f k lts r C u *3 in g « ,

Executive Assistant to Secretary of the Treasury,
Saahington, D. 0,

Boar m* ttxaninga:

I , * d tM u

l- M m J e a u is iA . m U M O t t n the President of
«HPOintaent of • ta n k in g o o n n itte e to laraatlgcte t h a r ouBbly toe bwklag eituBtion In anter t » t *» n a j <wn»i««r tbs
t*
t o l l wring problem:
« »

(L Keeping open benke, eepeeleUjr lleeneed
i
tMDka, the* * « open.
(*) Bettering the condition of baoka either
looaUy or tbroagh preferred steak lames.
banka*

Hfciag neceaaary credit arraaganmta for

(4) laox&iKtlsixxg doaed banka oar considering
the «po«tioii of dividend p eyn on ta either with or without Qovow*.
swat aaaietanoe to depositors of elowed banka*
Thoa© qpeationa aro a ll highly iqpwtatft la view
f ir s t of the p ro m t bandcii^ eituation and eecond the necessity
of considering the condition of mammnimt bank* by January lot
and of cwsfcer banka by July le t in connection with the deposit
guaranty Mature*
O Hast Tuesday we are havii^ a aseti 2« of the
n
Federal Reserve Agents of tko twalfo Federal HeeeFf© Banka, O
n
yesterday 1 a n t each of thea a tale exam, mm ot white I m
handing yew* Torn m il note that tfcfou&i the mMwt of th is telo ^raa I desire to got vary fu ll information a* to the national
basking situation, including raapixsr and noameraber banka, ao that
with nmh infagnation w can ®et a pieture of tho taak before
o
ua and having that picture m Hot a eolation of tho banking
ay
question.
I t haa occurred to
vantageoie i f you wouM compile

that i t would be aoat ad*
atateiaent ofLcloaed

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Mr. Walter Cuarainga - 2

basics within your Jurisdiction, m that th© . f e i relative to
f&ts
those closed banka might be addod to the picture that we ere
trying to asaei$>le in order that wo raay know definitely tha full
banking situation*
I .know you will not mtauadsratand m v&itm I
state that this letter is written and copy of
telegram to th©
Asaat a sent you in line with this suegoatlon and that in m
opinion it is noccssary that the aerlc suegseatod should be under
taken iirodiafcoly.
With w

warn regards # I m

Sincerely yours,

Governor *

S*C

Reproduced from the Unclassified / Declassified Holdings of the National Archives

f i d .

Auguat 7, 1953

IQr dear ISr, Preaidant|
I b«g to acknowledge your
August attain nhich you advise of tl*e appointment of
.to eoordiBetc the efforts of "lie federal
Reserw Banka, the Federal Beaenw Board, the Comptroller
of the Currency, tha Reconstruction Finance Corporation,
the Farm Credit Administration « M the H i m Orars^ Loan
Corporation, to the end that the efforts of the Govern
ment may be coordinated in behalf of licensed bank*,
deposit ore in closed banks and comaunitiea without bank*
isg facilities,
I will be glad to e e n e on this conmittee
and pledge in advance the earnest cooperation of the Be*
eerve spates in thia effort#
Itqr I express the hope that your vieit at
Hyde Park has afforded yon aone recreation end that affairs
at Washington may be so handled that you may obtain aom
rest from your trying labor* during the reminder of the
hot eeason* It is vexy important to the country that your
strength be consorted*
With warm personal regard* and great
reepect, I am

Very sincerely!

Hon, Franklin B, Roosevelt*
Preaident,
Waahingtont1 , C,
)

Reproduced from the Unclassified I Declassified Holdings of the National Archives

+7
TH E W H I T E H O U S E
WASHINGTON

August 2, 1933.

My dear Governor:
At the present time there are several agencies of the
Government all of which are making important and effective con
tributions in providing and maintaining adequate “
banking facilities
throughout the country and in releasing funds to depositors in
closed banks.

fhe Federal Beserve Banks, under the supervision

of the Federal Reserve Board, the Comptroller of the Currency,
the Reconstruction Finance Corporation, the Farm Credit Administra
tion, and the Home Owners Loan Corporation are all concerned with
this matter.

I feel it would greatly increase the effectiveness

of the efforts of each of these agencies if the efforts of all
were coordinated, and concentrated upon a common policy.

this way the problem could first be viewed as a whole and then
the combined efforts of the Government brought to bear where help
was most needed.
Since the treasury Department is deeply concerned in the
banking situation, both from the financial and the administrative
point of view, I have asked the Under Secretary to act as Chairman
of a Committee, on which I now request that you serve, to bring
about this coordination.
For the general guidance of the Committee, I think it should
have as its objects the release of deposits in closed banks as

Reproduced from the Unclassified I Declassified Holdings of the National Archives

promptly and to as large an extent as circumstances permit, the organ
ization of new banks primarily in areas which are without adequate
banking facilities, and the fullest support of banks now open, par
ticularly those operating under license from the Treasury,
suggest also that if a survey of the situation, including both member
and non-member banks is made, it will enable the Government both to
anticipate difficulties and to center its efforts where they are most
needed.

Also, it is important that the Reconstruction Finance Corpora
tion, the Farm Credit Administration, and the Home Owners Loan Corpor
ation should act in unison, through the Committee appointed at the
Executive Council meeting of July 25th, before issuing any securities
Very sincerely,

Honorable Eugene R. Black,
Governor, Federal Reserve Board.

Reproduced from the Unclassified / Declassified Holdings of the National Archives

F e d e r a l R e s e r v e Ba n k
o f A tla n ta
O F F I C E OF
C h a irm a n
Federal

o f

t h e

Re se r v e

B o a r d .
Ag e n t .

July 2 7 , 1935.

Federal Reserve Board,
Washington, D. C.

Dear Sirs:
Attention: Mr. S. R. Carpenter,
Assistant Secretary.
I have your letter of Ju l y 2 4 tfc« »
enclosing four copies eack of iwo pSBIpffTSTD,
Parts 1 and 2, prepared by the Treasury De
partment* I have handed two copies each of
the pamphlets to Acting Governor Johns.
Thanking you, I am,

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Ba n k
O F

o u i s

July 27, 1933

Mr. S. H. Carpenter,
Assistant Secretary,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Carpenters~

teipt is acknowledged of your letter
wkich you enclose for Governor
I l l t i .and* myself, copies of two pamphlets, Parts 1
fSrjn
and 2, prepared by the Treasury Department, contain
ing documents and statements pertaining to the recent
banking emergency.
Very truly yours,

JSWsBMS

Federal Beserve Agent

Reproduced from the Unclassified I Declassified Holdings of the National Archives

FEDERAL

R ESER V E

BANK

t f l d

O F DALLAS
C . C . W A LS H
T n l-t r

CHAI RMAN O F T H E B O A R D
and f e d e r a l r e s e r v e A gent

July

47,

1 ^ , 5

Federal Reserve Board
Washington, D, C
Gentlemen:

ATTENTION:

Mr. S. R. Carpenter
Assistant Secretary

Receipt is acknowledged of your letter of July
ith which were enclosed four copies each of two pam
phlets, Parts 1 and 2, prepared by the Treasury Department,
containing documents and statements pertaining to the recent
banking emergency.
I have given Governor McKinney two copies of
each of the pamphlets.
The courtesy of the Board in furnishing these
copies to us is appreciated.

Federal Reserve Agent

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Fe d e r a l R e s e r
of

n k

Ne w Yo r k

July 26, 1933.

Dear Mr. Carpenter:
In the absence of Ur* Case I acknowledge with thanks
the receipt ofjrour letter^fJTuly 24 Enclosing for his in
formation and that of Governor Harrison four copies each of two
pamphlets, Parts 1 and 2, prepared by the Treasury Department
and which contain documents and statements pertaining to the
recent banking emergency.
Very truly yours,

V k *

Fh.

John H. Williams,
Assistant Federal
Reserve Agent*

penter,
ecretary, Federal Reserve Board,
, D. C.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Fe d

era l

Re s e r

v e

O F C u * A T J^VNX>
E

July 26, 1933*

Fed er al Re ser ve Board,
Washington, D* C*
A T T E N T I O N MR*
A SS IS TA NT

S. R* C A R P E N T E R ,
SECRETARY.

Gentlemens
Receipt is a c k n o w l e d g e d w i t h t h an ks
of pam ph l et s p r e p ar ed by the Tr e as ur y
De pa rt m en t c on ta ini ng doc uments and s t a t e
me nts w i t h refer enc e to t h e recent ba nking
emergeney*
Copies of th ese have b e en ha n d e d to
Governor Fan ch er for his information.
V e r y tr uly yours,

F e d er al Re serve Agent*

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Fed er al Re s e r
of

Ric h m

Bank

ond

July 26, 1933

Mr. S. R. Carpenter,
Assistant Secretary
Federal Reserve Board
?ashington, D. C.
v
7
Dear Mr. Carpenter:
I acknowledge receipt of your letter of
July 24-th ^ nclosing for my information, and that or""GoVUrnur
e
Seay, four copies each of two pamphlets, Parts 1 and 2, propared by the Treasury Department, containing documents and
statements pertaining to the recent banking emergency.

Very truly yours

Federal Reserve Agent

Reproduced from the Unclassified I Declassified Holdings of the National Archives

July 84, 1953

Hr. Frsdsric H* Curtiss,
Tfcdsrsl Rsssrvs Agsnt,
Jtedsrsl Btssrvs Bank of Boston,
Boston, Mssssshusstts*
Dssr Mr* Curtiss:
Thors srs lnolossd hsrssith, for

your

infonation

and that of OoTsrnor Young, four sopiss saoh of tso psaphlsts, Parts 1 sad 8, prfr**^ *T

Trsasury Dspsrtnsnt,

containing dosunsnts snd ststsmnts psrtslnlng to ths

rsosnt

banking — srgsasy. Znssmeh ss only s snail nmbsr of thsss
panphlsts vsrs printsd by ths Trsssury Dspsrtsnnt, addition
al sopiss svs not snrsilsbls*
Vsry truly yours,

S. R. Carpentsr,
Assistant Ssorstary

(Inolosurss}

ieproduced from the Unclassified I Declassified Holdings of the National Archives

a 'i'J

July £4, 1935.

Hip* j. 1 * ©«#•* radarai i m m Agont,
Padarml
Bank of $** Tork,
IWI IOTK| Aww lOrX*
Daar Mr. Caaat
Ttera ara lnoloaad harawith, fbr your information
and that of Owarsiot' BwaifceGn, four #©fiaa aaah of two p«mp&Xaia* Parta

1 and E, praparad fey %3 Tr#«*ury Dapartmant,
sa

oontainin* doaunant* and atataaanta partainin* Id the r*o#nt
banking anarcanoy*
pamphlata w m

Tnaawti Ml only & fwtll mmbar of thaaa
.

prlntad by tha Traaaury Dapartmont, addition

al aoplas ara not ara1labia.
Vary truly youra,
t i n d S R Cretr
S g e ) - * apne

B E* Ctapantajr*
w
Aa»i*tant $*<srata*y*
(Inclowaraa)

ieproduced from the Unclassified I Declassified Holdings of the National Archives

J u ly E4f I t m *

Mr. R. L. Austin,
H M
S t u m Agiirt*
Federal Baearre Bank of Philadelphia,
fhiladtlphiai
Dear Mr# Austin:
There are liiftleaad herewith, for your information
int thlt of Governor Korrie, flttf copies eaoh of t w pa»*
phi ate, Part* I and E, prepared by the Tr*a*ury Sapartmentt
containing dootaaents and statements plaining to the taoffit
banking coiarganoy.

Inaawich as oily a aaall M i f f of theee

pamphlets ware printed by tha Traaaury

* addition

al aopiaa are not available*
Vary truly yonrs,
(S ig n e d ) S- R* C a rp e n te r

3* r. Oafpaiiter*
Aaaiatait Sacrataiy.

(Incl©stares)

ieproduced from the Unclassified I Declassified Holdings of the National Archives

J u ly 2 4 , 19S3

Mr* L* B, Williamst
Federal Reserve Agent,
Federal Reserve Bank of Cleveland,
Cleveland, Ohio,
Dear llr* Williams:
There are lxioloeed herewith, for your Information
and that of Governor Fancher, four copies each of two pan*
phleta, Farts

1 and £, prepared by the Treasury Department,

containing documents and statements pertaining to the recent
banking emergency*

Inasmuch as only a small number of these

pamphlets were printed by the Treasury Department, addition
al copies are not available.
Very truly yours,
(Slgrted) 5 ' ^

8# R. Carpenter,
Assistant Secretary.

(Inclosures)

Reproduced from the Unclassified / Declassified Holdings of the National Archives

J u ly 2 4 , 1953*

Mr* W. W. Boston,
Federal Reserve Agent,
federal Reserve Bank of Richmond,
Richmond, Virginia*
Boar Mr* Boston:
There are Inclosed herewith, for your information
and that of Governor Seay, four copies eaoh of two pamphlets,
Parts

1 and 2 , prepared by the Treasury Department, contain*

ing documents and statements pertaining to the recent bank
ing emergency*

Inasmuch as only a aaall number of these para*

phlets were printed by the Treasury Department, additional
copies are not available*
Very truly yours,
(S igned) S, B- Carpenter

S. R. Carpenter,
Assistant Secretary.

(Inclosures)

Reproduced from the Unclassified I Declassified Holdings of the National Archives

J u ly 2 4 , 19S 3,

Ur* Oscar Nfcwfcon,
federal Reserve Agent,
Federal Reserve Bank of Atlanta,
Atlanta, Georgia*
Dear Mr* Kenton;
There are inclosed herewith, for your information
and that of Acting Governor Johns, four copies each of two
pamphlets, Parts

1 and 2 , prepared by the Treasury Depart

ment, containing documents and statements pertaining to the
recent hanking emergency*

Inasmuch as only a small number of

these panphlets were printed by the Treasury Department, ad
ditional copiea are not available*
Very truly yours,

S * H* Carpenter,
Assistant Secretary

(Inclosures}

V ^ fa s

Reproduced from the Unclassified / Declassified Holdings of the National Archives

Kr» Eugene M* Steveue,
Federal Reserve Age&tf
Federal fteaerre Ba&k of Chicago*
Chicago* lUinoie*
B u r ir* Stfifwii
There ere inoloaed herewith, for jour laforaatlca
end that of Oovemor BoDougal, four copies each of two pen*
phleta, Parte

1 end 2t prepared by the Treaatuy Departaent,

containing d ooomtf m t stateMttta pertaining to the recent
banking eiergaic^*

Inaesuoh aa only a

nuaber of the##

paaphleta were printed by the freaaozy Department, additional
oopiaa are not available*
fery truly yours*

(Signed) S. R’ Carpenter

8* ft* Carpenter*
Assistant Secretary
(Inclosures)

Reproduced from the Unclassified / Declassified Holdings of the National Archives

4 'i

JtOjr

U , 1933

Kr« /oim S, Wood,
Fadafal* I t i e m
?ada*«l Eaaarva »*ak of St* Lamia,
8t# I*uia# ttUaoari*
. * * Mr*. w©odi
©»*
ft!* ** ara imslftaad herewith, ff your informfttiott
*
c*
and that of fttffemfiKr Martin, four ooplws each of two p**phletaf
part#

1,and 2 , prepared by the Tremaury Depart»eat, containing

doouaenta and stateaenta pertaining to the recant backing «*erf«oy.

Iniawnoh aa duly * a*all nuab©r of tfaeae pamphlet#

were printed by the Tx^aauxy I epart»eat* mSdltlimal copies aw*
5
not available,
¥ery truly youra#
Signed) S. R- C a rpenter

&* E# Ca r p a n W ,
aaoretai^r
(Xnoloaoraa)

Reproduced from the Unclassified / Declassified Holdings of the National Archives

July

H , 1933

$r* M I* Payton,
«
Fwu VTVm
L
F#dar*l IfMTTt Bank of lt2iii**poll*#
Bln t pollB^ M f f tiotti
t—
ilt
D#*r Hr, Paytont
Thar* ar# lnaloMd fear#with, for your ladtamHea
aad that of a « w a w Oaary* four oopiao aaoh of two
phlata, Part* % and %
ooatatciing d o m a m t *
banking aaarganoy*

pm*

pr*par*d by tha Traaauyy Dapartaaat,

m I rUtta anta

partaiainf to'
tha raoant

Xaaaaaoh aa only a aaall miabar of tbaua

pa^hlat# »ar* prints by tha Vrwmry D^partmnt, addlUonjOL
/
ooplaa
not arallabla*
Vary truly youra,

|%ned) S R Cr#l«
. . apftr
&« I* O^rp^nW,
AaairUnt SaoraWgr
(Inaloauraa)

Reproduced from the Unclassified / Declassified Holdings of the National Archives

July

24, 1933

■r« l« U
Fadaral ItMiti Agent)
F i d M l Raaarr* Baak of Kaaaaa 01tgrs
Kaaaaa OltgTf Biaaouri#
Doar Hr# loOlurot
Thara ara lncloaad harawith, for your lnforaatlon
and that of Gorarnor Stallion* four ooploa oaoh of two pa»~
phlota* Forts 1 and 2* propared by tha Traaaury Dopartaant*
oontalnlag doouaanta and atataaants partaining to tha raoaat
bonktog aaarganoyt

Inaaauoh aa only a aaall nuabar of thoao

paaphlata vara prlatad ty tha Traaaury Dapartaaat* additional
ooplaa ara aot available*
▼•17 truly yaarSf
(ind S R
Sge; - 8« IU Carpentarf
Aaalataat floorataxy
(Zaoloouraa)

Reproduced from the Unclassified / Declassified Holdings of the National Archives

Mr. o, g« waxafa,
Fedaral Raoorra l$m%. ■
Fadaral B*««rTa Back of DmlXme,
Dalla»,
D w r »r * Walahi
Tbara ar« inoloaad herewith, for your information
•ad that of Qtrrarnor MoSinafy, four oapia* each of two pa»~
pl&ata# Fart* 3* tod % pr*f*ara& by tb*. 3
f f#a«t»^^i^art«tt%^
oootainin* docuamte tad rtateaont* partaiaiR* to th* r«Mnt
banking

mmrgma?*

^Xn&emoh *» ^
only . **iil nuabor' thasa
a
of

paaphlat* wwr* p rintad by tha t r w u r y Deportawnt, additioaal
a
.
oapiaw ara not awallabla*
Fary tolly ) W « |

A&igned) S, R. Carpenter

i . 1# Oarpaatar*
f
iMiwtant Secretary
(Xnoloaoraa)

Reproduced from the Unclassified / Declassified Holdings of the National Archives

July 24, 1933

tr« Z m 0 Bi I«vloQ|
Federal Reserve Agent,
Federal Reserve Bank of Sen Francisco,
Aen Prestoisoo, California*
Door Hr, lewtoni
There are iacloeod herewith, for your lafbraatlon
sad that of Qorerner Calklas, foar oeples eaoh of two paa»
phlets, Parts 1 sad 2, prepared by the Treasury Departaeat,
containing doooasnt* iad stateaents pertaining to the recent
bsnklqg eaergency*

Xnasauoh as only a saall nusfeer of these

peaphlsts were printed by the Trosaury Dspsrtasat, addition*
si oeples are not avallsble*
Vary truly yoars.

(Xnclflsures)

CONFIDENTIAL

ASSETS AND LIABILITIES OF TO-LICENSED MEMBER BANKS ON JUNE 30, 1933, BY FEDERAL RESERVE DISTRICTS
(In thousands of dollars)

Total

Boston

New York

Federal
Phila
Cleveland Richmond
delphia

SL B-918

Reserve
Atlanta

Chicago

St.
Louis

District
Minn
Kansas
City
eapolis

Dallas

San
Francis

A S S E T S
Loans (including overdrafts)
S. Government securities
’l r securities
-e

861,995
l 4 s ,l l 6
428,690

i'OTAL LOANS AND INVESTMENTS
1,1*38,801
Customers* liability on account
of acceptances
320
Banking house, furniture* and
98,219
fixtures
Other real estate owned
37,696
Cash, in vault
34,292
Reserve with. F. R. ‘
banks
126,642
Dae from banks, (including items
in process of collection,
exchanges, etc.)
33,163
Outside checks and other cash items 1,255
Redemption fund and due from
uited States Treasurer
4*0l4
curities borrowed
2,692
. e assets
ir
12,757

TOTAL

1,789,851

49,586
9,202

131,758

39,698

117,336
19 , 31s
76,740

98,4 s 6

213 , 39^

199,779

4 , 52s
1,249
2,701
9,663

10,S46
2 ,SS9
3,814

15,293
7,171
^,317

4,519
65

5,655

240
—
480

1,864

121,931

14,326
53,695

107,683

200,232

48,003
174,015

17,317
3,732
14,263

10,886

83,862

36,762
6,967
26,385

17,969

866
613

57,1^7

319,^55

70,114

35,312

59,205

5,673

258

18,329

13,675
4,215
4,493
12,366

2,824
1,344
1,375
3,234

26,977
n ,5 0 3
9 , 6ss
31,573

3,519
1,998

2,119
619

5,962

739
3,726

1,264
42

7,847

366

1,024
95

175

622

1,031
313
3,713

207
115
669

6s,o4o

412,485

84,757

95,988
15,699
44,772

42,153
6,535

8,459

156,459

35,361

30,350

4,194

28,63*5
M 95i
1U.231S
49,761 |
6
'
- >
g

—

11,365
4,673

13,007

3,835
1^,375

3,089
152

2,295

3,713
212

567
188

395

1,906

485
9
1,845

636

127
1,689

256,984

245,157

212,048

197,602

16,176

336

—

O
=T
<

1,054

796

639
23s
151

2,750
7^3
971

10,388

1,510
73

127

723

254
3

—

347
43,811

522
76,419

21
24

3 , 6s -s
1,04,

1 , 15^ 1
5,449 |
1,367
25

173
73
282

7,599

63,018

—

A SSETS

ASD

L IA B IL IT IE S

O F

N 0 K - L IC 2N S E D

M EM BER B A S E S

( I n

Total
LIABILITIES
Demand deposits
1156,501
Time deposits
778,275
\ited States deposits
3 , &2
f
. n to banks (including certi
ie
fied & officers* checks and
cash letters o£_credit sad'
traveler® cIiocJcs-outstiaaadia^)
27.397
1,266,015
TOTAL D1 0SITS
P
National-bank notes outstanding
77,789
Agreements to repurchase T . S.
J
Gov*t# or other securities sold
Bills payable and rediscounts
Acceptances executed for customers
Acceptances executed by other banks
for account of reporting banks
15
Securities borrowed
2,692
Interest, taxes, and other expenses
accrued and unpaid
3.673
' Her liabilities
21,517
I'epltal stock paid in
11*
9,717
rplus
72.**56
Undivided profits - net
19.711
Reserves for contingencies
8,502
Total liabilities, including
capital account
1. 789.851
SFomber of banks

1.095

Boston

24,439
71.U3

th o u s a n d s

Hew York

O J T J U H 3S 3 0 ,
o f

Federal
Phila
f
Cleveland If
delphia

Reserve
Atlanta j Chicago

115,561
177,752
33s

24,201 10,4u

32,081

3,812

38,055
11

21,317
10

13,198

678

17,134!
25,955!

154

16,090
23,568
1,631

256

31* j

1.52S
159,626
11,280

4*055
127,490
7,871

1,282
*2,571
1*999

6,435
300*086
20,39*

625
908
63.175 32,363
4,167 2.568

6,07?
51,614
5,050

l4l
\6 3 2
434

1,201
44,60)
3,56*

9,186

22,669
268

9,261
38

177
27,634
5

J*
7,698

10
1,004

6,o6_

1*5,475

112,469

>6
•

1,224
96,822
4,795

1.429
2,488
181,806 161,227
8,986
6,683

6,199

110
33,866
27

—

1
1,864

188

127

106
720
6,940
4,000
2.193
156

719
1,400
18,315
7,853
3.683
657

248
2,702
18,280
14,275
2,944
1.551

311
479
15,148
11,777
3,235
818

721
8,336
20,250
8,119
1,152
599

256,984 245,157

212,04s
1*7

121,931
51

115

3fc,«5
10

M
W

Miniw
eapolis

St.
Louis

B-918a
District
San
Kansas
Dallas
City
Francis*

54,735
68,092
558

51,554

118,151 107,927
206
317

60,961

1933* BY .FEDERAL RESERVE DISTRICTS

d o lla r s )

, 75
4,550

14
313

115

253
3,105
6*250
2,891
1,0J1
,671

826
4.37?
36,5»
15,507
3,429
3,197

141
106
8,490
2,724
635
579

197,602

68,040

412,485

278

4 .> 4 1

ZI.3S3

3,900

3
265

463
3,410
l,02jj>

—
2
50
1,155
280
32

73
72
4l
6,280
1,676
551
97

145

8,675
2,325
532
32

84,757 43,811

76,419

7,599

63,01s

i.*u

S.1LI

FEDERAL RESERVE BOARD
DIVISION OF BASK OPERATIONS

' /fat*

‘*

•

1-Jt

nu-*r

t.n-r

klli

H J U

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111
I3.XI*

r .( f £

—

. M
A C 7¥A

t.Otf

—
£1*3

iH
//

Jjo
i.isi-

Reproduced from the Unclassified / Declassified Holdings of the National Archives

FEDERAL RESERVE BANK OF CHICAGO u
%
230 SOUTH LASALLE STREET
O F F I C E O F TH E
C H A I R M A N O F T H E B O A R D AND

June 28, 1953

FED ERA L R E S E R V E AGENT

Hon. A. C. Miller
Member, Federal Reserve Board
Washington, D. C.

Dear Dr. Millers
On account of your expressed interest on your recent trip
here, I am enclosing copy of a letter which X have sent today to Governor
Black with duplicate to Mr. Cummings. We do not seem to be getting
anywhere in this problem of taking care of licensed banks which for one
reason or another are losing the confidence of the public and are having
heavy withdrawals. We are face to face with this proposition here in a
few instances and it seems necessaiy to us that our position be defined
and the responsibility of this bank in such cases be determined.
The suggestion of the possible cooperation of the Home Loan
Bank is more with respect to giving additional liquidity to banks now
open or to deal with future cases, as I recognize that we could not
expect its cumbersome machinery to get in operation in time to help us
in these few imminent cases before us.

With personal regards, I am

Reproduced from the Unclassified / Declassified Holdings of the National Archives

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■tN, •vWMLHfe •& wBw Ml..-- .^uu6W 9Py
tMI? " r
j
*3 ^
rv

Sfttfeiikflttft, D. C.

Reproduced from the Unclassified / Declassified Holdings of the National Archives

June

83, 1933.

Bear Mr. Stevens:
X thank you for your kind favors of

Srme

V?th .and

30th.
By the tiae this reaches you, you will doubtless
hare found out by Mr. fatley’s appearance la Chicago, that
our recent discuteions have borne fruit,

fe left here yes-

tenUy to spend some tiae in Chicago and Michigan, to pro
mote a ttore effective handling of the Ooveraaent *s ^robleas
with reference to the hanking situation there.
It was a pleasure to see you recently and to sit
in on discussions at the hank.
With appreciation of your courtesies and hospitali
ties, believe me,
Tory truly yours,

Mr. fu&ene M. Stevens,
Federal Reserve Agent,
federal Beserve Bank of Chicago,
Chicago, Illinois.

Reproduced from the Unclassified / Declassified Holdings of the National Archives

FEDERAL RESERVE BANK OF CHICAGO
230

o f f ic e

SOUTH

the

LASALLE

^ j n

STREET

June 17, 1935

C H A I R M A N O F T H E BOA R D AND
FED ERA L R E S E R V E AGENT

Hon. A . C. Miller
Member, Federal Reserve Board
Washington, D. C.

^ear Dr. Miller:
I was impressed with your suggestion yesterday,in our conference
in our executive committee meeting, of the desirability of having a man like
Mr. Talley come here to insure speedy cooperation between wiiat we are tiying
to do and with the R. F. C. This would apply not only to open banks but to
those which we are trying to reorganize and in which the help of the R. F. C.
may be necessaiy.
We have a large number of banks in this district, both member and
nonmember, which probably could be reorganized and opened but for the fact
that their indebtedness to the R. F. C. is a barrier. In many such cases
if an arrangement could be made whereby the R. F, C. would transfer its loan
from the bank to the segregated trust to be set aside on some plan, we could
work out reorganization and reopening of such banks.
I have been working for many weeks to tiy to get the coordination
of the various agencies involved, have made two special trips to Washington
for this purpose, and have had innumerable telephone conversations with
various officials there, as well as much correspondence. On April 15, which
was the first time that we could do anything constructive in Michigan by
reason of their working out their own legislation for blanket opening of banks
and their unsuccessful effort of several weeks to impose this plan on Washington
and ourselves, I talked with Mr . Jones on the telephone and also wote him
suggesting that he send a representative those authority would be speedily
confirmed t f the R. F. C. board, to meet with such a representative from the
j
Comptroller’s office, a representative from our bank, and the State Banking
Commissioner, at Lansing, Michigan, to survey the State from the standpoint
of the communities involved; to call in either bankers or representative
citizens, and evolve plans for reorganization of banking facilities where
necessaiy. This was all agreed to and the conference arranged, but a few
days later Mr. Jones advised me that he had decided not to send such a representa
tive.
We supposedly have a mandate from the President to keep the banks open
and we are exerting all the pressure we can to get unopened banks reorganized
on a proper basis, but both of these things require coordination with the R. F. C.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

FE D E R A L R E S E R V E B A N K O F C H IC A G O
-

Hon. A. C. Miller

June 17, 1935

the Comptroller's office, the Federal Reserve System,and the State Banking
Commissioners,and to direct that coordination at long distance from here
has proven to be a veiy difficult thing, especially in negotiations which
may be delicate or which may be urgent or which may require an intimate
knowledge of the communi'ty and its needs.
Do I understand that you expect to make this suggestion relative
to Mr* Talley coming here to the proper authorities or do you wish me to
take it up? I feel very strongly that we would have gotten a good deal
further if something of this sort had been done some time ago.
It has been an unusual pleasure to us to have had you here and
you have done us a lot of good.

With personal regards, I am
Ve

R ep ro d u ce d from the U n cla ssified

I D eclassified H oldings of the N ational A rchives

F o t m N o . 131 .
1

O ffic e

C orresp on d en ce

T o _____ M r. Ml 11 eg* t______

FEDERAL RESERVE

OR
AD
Subject:__

Da,.

m m u
^

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From

___

flurt *• *ttach*d h«r®tof for your confidential information, ©opr of
* t*l^p»Jrhicli

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Battlo CrMk, Michigan, r a i d i n g tha aituation

#a£*ti th*ro.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

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Reproduced from the Unclassified/Declassified Holdings of the National Archives

DECLASSIFIED

Authority!^ 0

iO ^ O

Memorandum to Mr. Hiller:

Tut yMt lifirwtliHi wo vm In iM tiyt of o lottor foai ttr*
W
ood, lfeAciwl Haawwo A£O It St* T fl
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following liflUr to »1I Pt. Loni* Syooial Dopwty O—l«ilo—r« I* itorp
o
ef cXtaaA taAvt

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l'OWML BMHiy It O&ft&tlOBi to §** I n m ! r" f f B ^
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R ep rod uced from the U n cla ssified

I D eclassified

H oldings of the N ational A rchives

DECLASSIFIED
Authority 0 ( 0 ^ 0

lm }'D

IN FILES action

M Y 1 9 1941
A

\
u
m r *s, loss.
Memorandum to Mr* Hamlin:

Ite r j w x r

m m im r t c o l p t o f a l o t t o *

W ood, F id w r a l W * m m # A g o a t a t S t . L o a la ,
a ta toa

t h a t o i M a roh M

fo llo w in g l a t t e r t o a l l
of

1 * t h a o o a r a o o f w h la h It*

t h o C oB ad L aaioaar o f T t m m m
S t*

trtm . X r ,

o f H lfto o tu rl 'Mont t h a

L o u i a S p s a l a l B e p a t y Q m m tiM M tm m m im e h a r s a

e le o o d baaka;

*S1aoo the aloalac of tho baska in St* Ltmlt is

Jm m ry » SHniovf pl a n J # f roor£ftftlsfttloii. teri boon
Di
to this Popa rtaoat t seat of whloh have 1b ▼!*«
the aboorytloft -of’all loaaaa a*d tho eoaatr^otion of f.
t
ftew oapltal ateak trim tmAm of tho iopoaitora. Ia
aaarly «veiy oaao tho bniir has f lar^a aaooftt of hoar—
t
rawed aoney l t addltioft to ita loaooa L
f
*i» ox*der that a s t dafialto aoaolualoft M f ho
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f
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fpttitt
ifjpt f x t
of thaix> d§pofltf to rosora oh joetloftfthlo eaeete that
oonald not be takeft out by tho orl^laal oapltal asd *ftrplua.
*Thia la ' n ftHi vith tha Ittatruotloftft »a aaro mbAI
4*0 #at rolatlva to tho iintpiiKiXtcrOf baafca that Toaaiftod
aloaod or opasod with lofttrietiefte followia^ tho m m m &
holiday, f f d thift plaa
tt
rooTfaftlftfttloa 'and reopealfig of *:f, banka ftoe oloood*
$
,H i
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tooft that
a^Mlttod
tho baafts

ahould aay tmttimx to tho Depoaitora* C««*itttftloaa defiiilta p?*»« »T * thoao llftoo ara
< pg
^ April lat, all lnwatorioa aill bo £ H # d asd
proporly plaood in llqttidatioft*"

( W

JIlCLSllD
LiiJASKE

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Authority

fO ^ O

Office of the Secretary,
April 29, 1933,

ARTICfcH I
U ISCELLANEOTJS PROVISIONS

Sec. 1.

Authority for Regulations.

In pursuance of

the provisions of scction 5(b) of the Act of October 6, 1917,. as
amended by scction 2 of the Act of ltfarch 9, 1933, and the Executive
Orders of the president dated March 1 , 1933/ April 5, 1933, and
0.
April 20r 1933, these regulations are prescribed.
Sec. 2.

Definitions.

For the purposes of these regulations

the term npersonM means an individual, partnership, association or
corporation; and the term ^United States1 means the continental United
*
States,, including Alaska.
Sec. 3.

Licenses Non-Transferable.

Licenses or permits

issued or granted under these regulations shall not be transferred.
Sec. 4.

Scope.

These regulations shall be operative

within the United States as defined, unless otherwise indicated.
Sec, 5 Penalties. Whoever willfully violates any
provision of these regulations or of any license issued hereunder
may be fined not more than $1{},000, or, if a natural person, may
be imprisoned for not more than t e years, or both; and any officer,
^n

Reproduced from the Unclassified I Declassified Holdings of the National Archives

iJ . f t t J . L A S lS lF I . E D

A t ri y1 0
u ho t %

-2

iO^O I

director or agent of any corporation who knowingly participates in
any such violation may " e punished by a like fine, imprisonment, or
b
both.
ARTICLE II
PURCHASE OP GOLD FOR USE ILT INDUSTRY,
PROFESSION OR ART
Sec. 1

Eligible Applicants,

Any person having a

legitimate and customary use for gold in industry, profession or art
(including research and scientific work), or any person customarily
supplying gold to others for such use (hereinafter called a 1dealer”),
1
may file with a Federal reserve bank an application to purchase such
quantity of gold as may be required for legitimate and customary use
within a reasonable time.
Sec. 2.

Applications.

Such application shall be filed

in duplicate, executed under oath and verified before an officer duly
authorized to administer oaths, and shall contain (a) the name and
address of the applicant,(b) the industry, profession or art or
business in which the applicant is engaged, (c) the amount of gold
usually required for use in the applicants business for a period
of 90 days, (d) the amount of gold used or sold during the preced
ing calendar year, (e) the amount and a description of all gold
on hand at the date of the application, (f) the amount of gold
applied for, (g) a statement that the applicant will use such gold
as he may be permitted to purchase only for the legitimate and
customary requirements of industry, profession or art, or for sale
exclusively in industry* profession, or art, and (h) a statement
that no other application is pending.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

D U C X A S S IF IE D

Authority

& 0 (O^O I

3 -

S g c . 3.

Purchase of Gold.

Upon receipt of the applica*-

tion and after making such investigation of the case as it may deem
advisable, the Federal reserve hank, if satisfied that the gold is
necessary for the legitimate and customary requirements of the
applicants business, industry, profession or art, within a reasonable
time, may permit the applicant to purchase such quantity of gold (not
in excess of the amount applied for) as may he necessary for such use
upon payment therefor of an equivalent amount of coin or currency
coined or issued under the laws of the United States.

The applicant

shall keep an exact record of the disposition of such gold, and,
in the case of a dealer furnishing gold for use in industry, profession
or art, such dealer shall keep a record which shall show the amounts
and dates of sales and the names and addresses of the purchasers.

Such

records shall he available for examination by a representative of the
•Treasury Department for at least one year after the date of the
disposition of the gold.

The gold so purchased shall be used or

disposed of only in accordance with this Article and the Executive
Order of April 5, 1933.

Dealers withdrawing gold under this Articlo

shall require of the persons who purchase gold from them an affidavit
that the gold so purchased will be used exclusively in the industry,
profession, or art in which such purchasers are ongaged.
Sec. 4,

Prior Regulation Revoked.

Emergency Banking

Reflation I o 2 5 , issued March 13, 1933, is hereby revoked.
T.

Keproauced from the Unclassified/Declassified Holdings of the National Archives

U N C L A S S IF IE D

I Authority

0 fQ ? Q

-4 -

ARTICLE III

EXPORT OF GOLD COI I
I
OR GOLD BULLION

Sec. 1.

License Required#

No gold, coin, gold 'bullion

or sold certificates shall " e exported from the United States or any
b
place subject to the jurisdiction thereof, or earmarked for foreign
account unless a license therefor shall first have "been obtained
from, the Secretary of the Treasury in accordance with this Article
or Article IV of these retaliations.

Licenses may he issued, in the

discretion of the Secretary, autftorizing the export of gold coin
and gold bullion:
(a)

earmarked or held in trust for a recognized foreign

government or foreign central bank or the Bank for International
Settlements;
(b) imported for reexport;*
(c) actually required for the fulfilment of any contract
calling for payment or delivery of gold coin or bullion, entered
into prior to April 20, 1933, by an applicant who in obedience to
the Executive Order of April 5, 1933, has delivered gold coin,
gold bullion or gold certificates in accordance with such order; or
(d) with the approval of the President, for transactions
which he may deem necessary to promote the public interest.

♦NOTE:

Export of gold by refiners importing gold-bearing materials
is covered by Article I ' f of these regulations.

Keproduced from the Unclassified I Declassified Holdings of the National Archives

UNCLASSIFIED
Authority

&.0 iP^Q I

-5-

Sec. 2.

Application for Licenses. Application for

license under Section 1

to export from the United States or any

place subject to the jurisdiction thereof any gold coin or gold
bullion shall be made to the Secretary of the.
Treasury.

Each

such application shall be executed in duplicate under oath and
verified before an officer duly authorized to administer oaths,
and shall state in detail (a) the name and address of the applicant,
(b) the name and address of the owner of the gold to be exported,
(c) the amount and a description of gold coin or gold bullion and
the location thereof, (d) the port from which export will be made,
(e) the name and address of the consignee, and (f) the nature of
the transaction and the facts making necessary the export.

the case of an application for a license under section 1(c) of this
Article, the application, in addition to the above, shall state
in detail, (l) the amount respectively of the gold coin, gold
bullion or gold certificates delivered in obedience to the Executive
Order of April 5, 1933, and the date and place of such delivery,
and (2) the amount of gold coin or gold bullion actually required
for the fulfilment of the contract.

A certifiod copy of the con

tract or obligation shall accompany the application.
Sec. 3.

Piling of Application.

The application shall

be filed with a Federal reserve bank, and such bank, after making
such investigation of the case as it may deem necessary, shall
transmit the original of such application to the Secretary of the
Treasury, together with (a) such supplemental information as it may

DECLASSIFIED

Reproduced from the Unclassified / Declassified Holdings of the National Archives

Authority

(0 ^ 0 I

-6-

deem appropriate and (b) a recommendation as to whether the license
should be granted or denied.

A copy of the application shall be

retained by the Federal reserve bank for its records.
Sec. 4.

Issuance of License.

If the Secretary of the

Treasury in his discretion determines to grant a license upon an
application filed under Sec. 3, he will authorize the Federal reserve
bank through which the application was transmitted to issue on
his behalf a license to export a specified amount of gold coin
i gold bullion, and such bank shall thereupon issue such license
r
to the applicant.

If the license applied for is not granted, the

bank; through \vhich the application was transmitted will be advised
and such bank shall thereupon so notify the applicant.
Sec. 5.

License.

Each license for the export of gold

coin or bullion shall be numbered serially and shall bear (a) the
date of issue, (b) the name and address of the licensee, (c) the
name and address of the consignee, (d) the amount and description
f the gold licensed, (e) the port of export, and (f) a statement
“This license shall expire 15 days from date of issue".
Sec, 6

Notification of Issuance of License.

At the

time the license is issued, the issuing Federal reserve bank shall
transmit a copy thereof to the Collector of Customs at the port of
export designated thereon.

No collector of Customs shall permit

the export of any gold coin or bullion under this Article except
upon surrender of a license to export, a copy of which has been
received

by him from the Federal reserve.bank issuing such license

nc^iuuuLttu uum me unclassified / Declassified Holdings of the National Archives

- U E C J L A S IS IF IE D

Authority^ 0 ( Q

(

-7Sec. 7,

Expiration of License.

All licenses to export

gold coin or ‘
bullion issued under this Article shall expire fifteen
days after date of issue and any person holding a license who fails
to export gold coin or hull ion in accordance with the terms of the
license shall forthwith deliver such gold coin or "bullion to a
Federal reserve "bank#
ARTICLE IV
IMPORT FOR SMELTING- AND/OR REFUTING
AND EXPORT
Sec, 1.

Notation. upon Entry. Upon the formal entry into

the United States of gold-bearing ores, or any other gold-hearing
materials imported into the United States for smelting and/or refining
under an agreement providing for the export of gold bullion, the
importer shall notify the Collector of Customs at the port where
the gold-hearing ore or material is formally entered that the importa
tion is made under such agreement.

The Collector shall make a nota

tion on the entry to this effect and forward a copy of the entry to
the United States Assay Office at New York, New York, or to the
United States Mint at San Francisco, California, whichever is desig
nated " y the importer.
b
Sec. 2.

Sampling and Assaying.

Promptly upon the receipt

of each importation of gold-bearing ore or material at the plant
where it is first to be treated, it shall " e weighed, sampled and
b
assayed for gold content.

A reserve commercial sample shall he

UNCLASSIFIED

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Au h r t
toiy

(O ^ O I

retained at such plant for at least one year from the date the impor
tation was received by the plant unless the assay is sooner verified
by the Treasury Department.
Sec. 3.

Plant Records. The importer shall cause an exact

record, covering each importation, to be kept at the plant of first
treatment.

The record shall show the gross wet weight of the

importation, the weight of containers, if any, the net v e t weight,
the percentage and weight of moisture, the net dry weight, the gold
content shown by the settlement assay, and the amount of ^old bullion
required to be exported under the agreement.

An attested copy of

such record shall be filed promptly with the Assay Office or the
Mint, whichever has been designated to receive a copy of the entry.
Sec. 4.

Application for Export License.

Not later than

fifteen days from the date of entry, the importer shall file an
application with the Assay Office or the Mint, whichever has been
designated to receive a copy of the entry, for a license to export
gold bullion not in excess of the amount shown by the Settlement
Sheet covering the importation.

Such application shall be filed in

duplicate, executed under oath and verified before an officer duly
authorized to administer oaths, and' shall

show (a) the name and

address of the applicant, (b) the port at which the importation
was formally entered, (c) the entry number, (d) the date of entry,
(e) the plant at which the importation was first treated, (f) the

reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority

iQ^Q I

gross wet weight, (g) the weight of the containers, if any, (h)
the net wet weight, (i) the percentage and weight of moisture,
(j) the net dry weight, (k) the gold content, (l) the amount of
gold bullion required to be exported under the agreement, and (m)
the name and address of the proposed consignee of the exportation.
The application shall be accompanied by two duly attested copies
of the Settlement Sheet.
Sec* 5,

Issuance of Serial Numbered Certificate.

If the

Superintendent of the Assay Office or of the Mint is satisfied as
to the accuracy of the data shown on such application, he shall
issue to the importer a dated Serial Numbered Certificate which shall
show the amount of gold specified by the application and the amount
specified by the Settlement Sheet.

The Director of the Mint shall

prescribe the form of such certificate.
Sec. 6.

Issuance of Export License.

Upon delivery to

the Assay Office or the Mint, within 120 days from the date it was
issued, of the Serial Numbered Certificate the Superintendent of
the Assay Office or Mint shall issue to the importer a license to
export gold bullion in the amount applied for but not in excess of
the amount specified by the Settlement Sheet as shown on such certifi
cate.
Sec. 7.

Licenses.

Bach license for the export of gold

bullion under this Article shall be numbered serially and shall bear
(a) the date of issue, (b) the name and address of the licensee, (c)
the name and address of the consignee, (d) the amount and descrip
tion of the gold licensed, (e) the port of export, and (f) a state
ment “This license shall expire 15 days from date of issue”.

DECLASSIFIED

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Authority

Sec. 8.

(0 ^ 0

10-

Notification of Issuance of License.

At the

time the license is issued, the issuing assay office or mint shall
transmit a copy thereof to the Collector of Customs at the port of
export designated thereon.

No Collector of Customs shall permit

the export of any gold bullion under this article except upon sur
render of a liconse to export, a copy of which has been received by
him from the assay office or mint issuing the license.
Sec. 9.

Expiration of License.

All licenses to export

gold bullion issued under thia article shall expire 15 days after
date of issue and any person holding a license who fails to export
the gold bullion in accordance with the terms of the license shall
forthwith deliver such bullion to a Federal reserve bank.

ARTICLE V
ACQUISITION OR RETENTION OF GOLD COIN, GOLD
BULLION OR GOLD CERTIFICATES FOR PROPER
TRANSACTIONS NOT INVOLVING HOARDING

Sec. 1.

Licenses for Proper Transactions and for Purposes

not Covered in Preceding Articles.

Any person showing the need for

gold coin or gold bullion for a proper transaction not involving
hoarding or for gold coin or gold bullion for a purpose specified in
the Executive Order of April 5, 1933, and not covered by the fore
going Articles of these Regulations, may make application to the
Secretary of the Treasury for a license to purchase, or if such coin
bullion is already in his possession, to retain such coin or bullion,
amounts as may be reasonably necessary for such proper transaction or
purpose.

Applications shall be filed with any Federal reserve bank.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

U N C L A S S IF IE D

Authority

&Q (O^C) I

The application shall he filed in duplicate, executed under oath and
verified before an officer duly authorized to administer oaths and
shall contain (a) the name and address of the applicant, (b) the
amount of gold coin or gold bullion desired to be purchased or
retained, (c) the amount and description of the gold coin or bullion
on hand, if any, at the date of the application, (d) the proper
transaction or purpose to which the gold coin or gold bullion will
be devoted and the facts making necessary its purchase or retention,
(e) such other facts as will enable the Secretary of the Treasury
to determine whether the transaction is proper, and (f) a statement
that the applicant will use such gold coin or gold bullion as he
may be permitted to purchase or retain only for the transaction
or purpose set forth in the application.

In the case of an ap

plicant for a license who has delivered in obedience to the Executive
Order of April 5, 1933, gold coin, gold bullion or gold certificates,
the application, in addition to the above, shall state in detail (1)
the amount of gold coin, gold bullion or gold certificates delivered
in obedience to the Executive Order of April 5, 1933, (2) the date
of such delivery, and (3) the bank at which delivered.
Sec, 2,

Disposition of Applications,

On the receipt of

any such application, the Federal reserve bank shall make such investi
gation of the case as it may deem advisable and shall transmit to the
Secretary of the Treasury the original of such application, together
with (a) any supplemental information it may deem appropriate and (b)
3 recommendation whether a license should be granted or denied.
-

The

Federal reserve bank shall retain a copy of the application for its
records.

DECLASSIFIED

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Authority

Sec, 3,

fQ ^ Q |

Grant in ? or Denial of the License.
?

Upon receipt

of the original application and the recommendation of the Federal
reserve bank transmitting it, the Secretary of the Treasury will
grant or deny the license,

A license will be granted on application

for the retention or acquisition of gold coin or bullion made by any
person showing the need for such gold coin or bullion in accordance
with the provisions of section 8 of the Executive Order of April 5,
1933, in cases where such person has gold coin, gold bullion or gold
certificates in his possession, or in obedience to said Executive
Order, has delivered such coin, bullion or certificates,

A license

so granted shall be for an amount of gold coin or bullion not exceed
ing the amount of such coin, bullion or certificates held or delivered*
When the issuance of a license is approved by the Secretary of the
Treasury the Federal reserve bank through vrhich application was made,
will issue a license to the applicant.

If denied, the Federal reserve

bank will be so advised and shall immediately notify the applicant.
The decision of the Secretary of the Treasury shall be final.

The

Federal reserve bank shall note upon the retained copy of the applica**
tion whether or not a license has been granted, and, if granted, the
date of the license and the amount of the gold coin or gold bullion
covered thereby.
Sec, 4,

Acquisition of Gold*

Upon presentation of a license

for the acquisition of gold coin or bullion to a Federal reserve bank,
such bank shall deliver to the licensee the amount of gold coin or
gold bullion authorized in such license upon payment therefor in an
equivalent amount of any form of coin or currency coined or issued
under the laws of the United States.

UNCLASSIFIED

Reproduced from the Unclassified I Declassified Holdings of the National Archives

&0 ( 0 j

Authority

- 13 See. 5,
Coin or Bullion.

Reports Required on the Disposition of Gold
Any person holding a license for the retention

or acquisition of gold coin or bullion issued under this Article,
who shall at any time dispose of such gold coin or bullion in
accordance with the terms of the license or otherwise, shall
immediately file a written report in duplicate with the Federal
reserve bank through which the license was issued#

Such report shall

be executed under oath and verified before an officer duly authorized
to administer oaths and shall contain (a) the names and addresses of
the person or persons to whom such gold coin or bullion was delivered*
the amounts thereof and vhether gold coin or gold bullion and (c)
the reason for such delivery.

On the receipt of any such report, the

Federal reserve bank receiving it shall immediately transmit the
original to the Secretary of the Treasury in Washington and shall
retain a copy for its records.

Upon the transfer of any gold coin

or bullion by a person licensed to retain or acquire the same, such
licensee shall advise the transferee of the provisions of the
Executive Order of April 5, 1933, and of the penalties for its
violation, and such transferee shall deliver such gold boin or bullion
so received to a Federal reserve bank or branch or agent thereof or
any member bank of the Federal Reserve System in accordance with the
"Executive Order of April 5, 1933, and shall be subject to the
penalties of said Executive Order for any violation thereof.

These regulations may be supplemented, modified or revoked
at any time.

W. H. WOODIN
Secretary of the Treasury.

Keproduced from the Unclassified / Declassified Holdings of the National Archives

UNCLASSIFIED
Authority

(Q^Q I

FEDERAL RESERVE BOARD
WASHINGTON
ADDRESS OFFICIAL, CORRESPONDENCE TO
THE FEDERAL RESERVE BOARD

X-7417
April 20, 1933.

Dear Sir:
In confirmation of the telegram sent you to
day, there is inclosed herewith a copy of the Execu
tive Order isstied by the President of the United
States relating to foreign exchange and the earmark
ing and export of gold coin or bullion or currency.
Very truly yours,

Chester i l o r l ,
v-ril
Secretary.

Inclosure.

TO CHAIRMEN 0E ALL E. R. BAMS.

ui^tLAasijrij u
&

Reproduced from the Unclassified / Declassified Holdings of the National Archives

Authority

0(0501

X-?Ulb
CONFlSSfrTS

li.
EXECUTIVE ORDER

Relating to Foreign Exchange and the Earmarking
and Export of Gold Coin or
Bullion or Currency

By virtue of the authority vested in me by Section
5(b) of the Act of October 6, 1917, as amended by Section 2 of
the Act of March 9, 1933, entitled "An Act to provide relief
in the existing national emergency in banking, and for other
purposes,f in which amendatory Act Congress declared that a
l
serious emergency exists, I, Franklin D. Roosevelt, President
of the United States of America, do declare that said national
emergency still continues to exist and pursuant to said section
and by virtue of all other authority vested in me, do hereby
issue the following executive order:
Until further order, the earmarking for foreign
account and the export of gold coin, gold bullion or gold
certificates from the United States or any place subject to
the jurisdiction thereof are hereby prohibited, except that
the Secretary of the Treasury, in his discretion and subject
to such regulations as he«may prescribe, may issue licenses
authorizing the export of gold coin and bullion (a) earmarked
or held in trust for a recognized foreign government or
foreign central bank or the Bank for International Settlements,
(b) imported for reexport or gold in reasonable amounts for
usual trade requirements of refiners importing gold bearing
materials under agreement to export gold, (c) actually required
for the fulfilment of any contract entered into prior to the
date of this order, by an applicant who in obedience to the

uii-LLAaaii1 u
i&

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Authority £ 0

fQ g Q

X-7^1o
u&x

Executive Order of April 5, 1933 has delivered gold coin, gold
bullion or gold certificates, and (d) with the approval of the
President, for transactions which he may deem necessary to promote
the public interest.
2.

Until further order, the Secretary of the Treasury

is authorized, through any agency that he may designate, to
investigate, regulate, or prohibit, under such rules and regu
lations as he may prescribe, by means of licenses or otherwise,
any transactions in foreign exchange, transfers of credit from
any banking institution within the United States or any place
subject to the jurisdiction thereof to any foreign branch or
office of such banking institution or to any foreign bank or
banker, and the export or withdrawal of currency from the United
States or any place subject to the jurisdiction of the United
States, by any individual, partnership, association, or corpora
tion within the United States or any place subject to the
jurisdiction thereof; and the Secretary of the Treasury may
require any individual, partnership, association, or corpora
tion engaged in any transaction referred to herein to furnish
under oath, complete information relative thereto, including
the production of any books of account, contracts, letters or
other papers, in connection therewith in the custody or control
of such individual, partnership, association, or corporation
either before or after such transaction is completed.
3.

The provisions relating to foreign exchange

transactions contained in the Executive Order of March 10, 1933,
shall remain in full force and effect except as amended or sup
plemented by this order and by regulations issued hereunder*

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Authority

£0(0501

_3_

X-?Ul6

Applicants who have gold coin, gold bullion or

gold certificates in their possession, or who in obedience to
the Executive Order of April 5, 1933 have delivered gold coin,
gold bullion or gold certificates shall be entitled to licenses
as provided in Section 8 of said Executive Order for amounts
not exceeding the equivalent of such coin, bullion or certifi
cates held or delivered.

The Secretary may in his discretion

issue or decline to issue any other licenses under said Executive
Order, ^hich shall in all other respects remain in full force
and effect.
5.

Whoever willfully violates any provision of

this Executive Order or of any rule, regulation or license
issued thereunder may be fined not more than $10,000, or,
if a natural person, may be imprisoned for not more than ten
years, or both; and any officer, director, or agent of any
corporation who knowingly participates in any such violation
may be punished by a like fine, imprisonment, or both.

This order may be modified or revoked at any time.
FRA ■ K IN D. TOOS^VELT
'J I
THE WHITS HOUSE
April 20, 1933.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

U H iL L A S S lF IE D

I Authority 1%

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EXECUTIVE ORDER

Relating to Foreign Exchange and the Earmarking
and Export of Gold Coin or
Bullion or Currency

By virtue of the authority vested in me h / ^r+- nn
i L a*.i

R ep rod uced from the U ncla ssified

l
iiU

I D eclassified H oldings of the N ational A rchives

fQ ? Q

Atoiy
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April 20, 1 W J

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% Fr«aU«ii Of the ttmlUA
b»

(»** atWob*4>

EXECUTIVE ORDER
Relating to Foreign Exchange and the Earmarking
and Export of Gold Coin or
Bullion or Currency

By virtue of the authority vested in me by Section
5(b) of the Act of October 6, 1917, as amended by Section 2 of
the Act of March 9, 1933, entitled "An Act to provide relief
in the existing national emergency in banking, and for other
purposes,'* in which amendatory Act Congress declared that a
serious emergency exists, I, Franklin D. Roosevelt, President
of the United States of America, do declare that said national
emergency still continues to exist and pursuant to said section
and by virtue of all other authority vested in me, do hereby
issue the following executive order:
Until further order, the earmarking for foreign
account and the export of gold coin, gold bullion or gold
certififjates from the United States or any place subject to
the jurisdiction thereof are hereby prohibited, except that
the Secretary of the Treasury, in his discretion and subject
to such regulations as he may prescribe, may issue licenses
authorizing the export of gold coin and bullion (a) earmarked
or held in trust for a recognized foreign government or
foreign central bank or the Bank for International Settlements,
(b) imported for reexport or gold in reasonable amounts for
usual trade requirements of refiners importing gold bearing
materials under agreement to export gold, (c) actually required
for the fulfilment of any contract entered into prior to the
date of this order, by an applicant who in obedience to the

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

(O ^ O

Executive Order of April 5, 1933 has delivered gold coin, gold
■bullion or gold certificates, and (d) with the approval of the
President, for transactions which he may deem necessary to promote
the public interest.
2.

Until further order, the Secretary of the Treasury

is authorized, through any agency that he may designate, to
investigate, regulate, or prohibit, under such rules and regu
lations as he may prescribe, by means of licenses or otherwise,
any transactions in foreign exchange, transfers of credit from
any banking institution within the United States or any place
subject to the jurisdiction thereof to any foreign branch or
office of such banking institution or to any foreign bank or
banker, and the export or withdrawal of currency from the United
States or any place subject to the jurisdiction of the United
States, by any individual, partnership, association, or corpora^
tion within the United States or any place subject to the
jurisdiction thereof; and the Secretary of the Treasury may
require any individual, partnership, association, or corpora
tion engaged in any transaction referred to herein to furnish
under oath, complete information relative thereto, including
the production of any books of account, contracts, letters or
other papers, in connection therewith in the custody or control
of such individual, partnership, association, or corporation
either before or after such transaction is completed.
3.

The provisions relating to foreign exchange

transactions contained in the Executive Order of March 10, 1933,
shall remain in full force and effect except as amended or sup
plemented by this order and by regulations issued hereunder.

UNCLASSIFIED

Reproduced from the Unclassified / Declassified Holdings of the National Archives

Authority & . Q ( O ^ O

-3-

Applicants who have gold coin, gold bullion or

The Secretary may in his discretion

issue or decline to issue any other licenses under said Executive
Order, which shall in all other respects remain in full force
and effect.
5.

Whoever willfully violates any provision of

This order may be modified or revoked at any time.

THE WHITE HOUSE
April 20, 1933.

FRANKLIN D* ROOSEVELT.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

liN C L iA a a lF IE D

! Authority £ ;

0 (QZQI

EXECUTIVE ORDER

Relating to Foreign Exchange and the Earmarking
and Export of Gold Coin or
Bullion or Currency

APR 2 0 1933
By virtue of the authority vested in me by Section 5(b) of the Act
of October 6, 1917, as amended by Section 2 of the Act of March 9, 1933,
entitled "An Act to provide relief in the existing national emergency in
banking, and for other purposes,” in which amendatory Act Congress de
clared that a serious emergency exists, I, Franklin D. Roosevelt, President
of the United States of America, do declare that said national emergency
still continues to exist and pursuant to said section and by virtue of all
other authority vested in me, do hereby issue the following executive order:
Until further order, the earmarking for foreign accoimt and the
export of gold coin, gold bullion or gold certificates from the United States
or any place subject to the jurisdiction thereof are hereby prohibited, ex
cept that the Secretary of the Treasury, in his discretion and subject to
such regulations as he may prescribe, may issue licenses authorizing the ex
port of gold coin and bullion (a) earmarked or held in trust for a recognized
foreign government or foreign central bank or the Bank for International
Settlements, (b) imported for reexport or gold in reasonable amounts for
usual trade requirements of refiners importing gold bearing

materials under

agreement to export gold, (c) ‘actu&lly required for the fulfilment of any
.
contract entered into prior to the date of this order, by an applicant who
in obedience to the Executive Order of April 5, 1933 has delivered gold coin,
gold bullion or gold certificates, and (d) with the approval of the President,
for transactions which he may deem necessary to promote the public interest*

DECLASSIFIED

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Authority & Q

iO ^ O

-2

Until further order, the Secretary of the Treasury is authorized,

through any agency that he may designate, to investigate, regulate, or pro
hibit, under such rules and regulations as he may prescribe, by means of
licenses or otherwise, any transactions in foreign exchange, transfers

credit from any banking institution within the United States or any place
subject to the jurisdiction thereof to any foreign branch or office of such
banking institution or to any foreign bank or banker, and the export or
withdrawal of currency from the United States or any place subject to the
jurisdiction of the United States, by any individual, partnership, associa
tion, or corporation within the United States or any place subject to the
jurisdiction thereof; and the Secretary of the Treasury may require any
individual, partnership, association, or corporation engaged in any
transaction referred to herein to furnish under oath, complete information
relative thereto, including the production of any books of account, con
tracts, letters or other papers, in connection therewith in the custody or
control of such individual, partnership, association, or corporation either
before or after such transaction is completed.
3,

The provisions relating to foreign exchange transactions contained

in the Executive Order of March 10, 1933, shall remain in full force and
effect except as amended or supplemented by this order and by regulations
issued hereunder.
4*

Applicants who have gold coin, gold bullion or gold certificates

in their possession, or who in obedience to the Executive Order of April 5*
1933 have delivered gold coin, gold bullion or gold certificates shall be
entitled to licenses as provided in Section 8 of said Executive Order for
amounts not exceeding the equivalent of such coin, bullion or certificates
held or delivered.

The Secretary may in his discretion issue or decline

to issue any other licenses under said Executive Order, which shall in all
other respects remain in full force and effect.

UNCLASSIFIED

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Authority

fO5 * 0 I

.3 -

Whoever willfully violates any provision of this Executive Order
or of any rule, regulation or license issued thereunder may he fined not
more than $10,000, or, if a natural person, may he imprisoned for not more
than ten years, or both; and any officer, director, or agent of any corpora
tion who knowingly participates in any such violation may he punished hy a
like fine, imprisonment, or hoth.

This order may he modified or revoked at any time,

ERAMLIN D. ROOSEVELT*

THE THITE HOUSE
April 20, 1933.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

1JJ!<C.LA»31FIED

i Authority 1 ^ 0 ( O ^ O

A SSISTA N T S E C R E T A R Y OF- T H L

,-?EASURY

April Z 0 t 1933.

Memorandum for Governor Meyer:

I attach hereto a copy of Executive Order
relating to foreign exchange and the export of
gold.

In form it is satisfactory to the

President subject to the approval of the
A tto rn e y

General,

The Solicitor General has

given careful consideration to the preparation
of the order and it is in form satisfactory
to him.

R ep rod uced from the U ncla ssified

DECLASSIFIED

I D eclassified H oldings of the N ational A rchives

Authority 1 0
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Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority 1
%

0 (0^0 I

Saecutive Order of April 5, 1933 lias delivered gold cola, gold
bullion or gold certificate*, aad (d) with the approval of the
President, for transitions which ho nay doom necessary to proaote
the public interest.
2.

Until farther order, the Secretary of the Treasury

is authorised, throng any ageacy that ho may desigaate, to
investigate, regulate* or prohibit, uader such rules aad rega*
latloas as he say prescribe, by neaas of licensee or otherwise,
any transactions in foreign exchange, transfers of credit from
any banking institution within the United States or aay place
subject to the jurisdiction thereof to aay foreign branch or
office of such beaming institution or to any foreign bank or
banker, aad the export or withdrawal of currency froa the United
States or aay place subject to the jurisdiction of the United
States, by any Individual, partnership, association, or coroor%tioa within the United States or any place subject to the
jurisdiction thereof; aad the Secretary of the Treasury may
require aay individual, partnership, association, or oorpor*.
tion engaged la aay transaction referred to herein to furaiah
aader oath, complete information relative thereto, including
the production of aay books of account, contracts, letters or
other papers, in coanection therewith in the custody or control
of such Individual, partnership, association, or corporation
either before or after such transaction is collated.
3.

The provisions relating U

foreiga eachaage

transactions contained in the Executive Order of March 10, 1933,
shall renaln in fall force aad effect except as amended or soppleoeated by this order and by regulations issued hereunder.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

(O^C) I

Applicants who have gold cola, gold bullion or

gold certificate* la their poseossioa, or eho la obedience to
the txeeatlve Ordor of April 5, 1933 h a w delivered gold cola*
gold ballloa or gold certlflcatee Aall bo eatitled to licensee
ao provided la Sectloa 3 of said £ m « I iv* Ordor for aaooats
aot exceeding the equivalent of soch cola, basilica or certifi~
eatm hold or delivered*

the Secretary nay la his discretion

issue or decline to issae aay other licenses under said Executive
Ordor, which Shall la all othor respects reaaia la full force
aad affect.
5.

fhoofor willfully violates aay provision of

this Ixecutlvs Ordor or of aay rule, regulation or llcoaso
issued thereunder nay ho fined aot wore than $10*000, or,
If a natural person, aay he laprisoaad for aot aoro thaa tea
years, or both; aad aay officer, director, or ageat of aay
corporation who knowingly participates la aay such violation
aay ho punished hy a like fiae, lfflprisonaant, or both.

This order may ho nodifled or revoked at aay tlae.

* m I H O T H00S1
April BG, 1933.

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P ™ D IN RECORDS SkCTiOK
MAY 1 5 1958
\ u i d

copy

— 1
—

April 14, 1933.

Mr. Sigurd Ueland,
800 Security Building,
Minneapolis, Minnesota.
Dear Sigurdi
Tremendous pressure of urgent business growing out of
the recent banking crisis has prevented me from replying more promptly
to your letter of March 3, 1933, inclosing for s information copies
oy
of three opinions which you had rendered to the ]?ederal Reserve Bank
of Minneapolis dealing with the subject of bank holidays.

I have just

now found an opportunity to read these opinions; and I find them very
interesting, although I am not prepared to agree with all of the con
clusions which you have expressed.
With reference to the question of the right of a Federal
reserve bank to deal with a bank which has gone on a holiday or has
otherwise suspended business temporarily but which has been permitted
by the supervisory authorities to resume the transaction of a normal
banking business, I note that you made no reference to the decision
of the Circuit Court of Appeals in the case of Lucas et al v. Federal
Reserve Bank of Richmond, wherein it seems to me that the Court in
timated very strongly that, if the Comptroller of the Currency per
mits a national bank to remain open and continue to transact its
normal business, the Federal reserve bank is justified in assuming
that it is a solvent bank and in dealing with it as such.

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1-32
Mr. Sigurd Ueland.

In the light of the events which have transpired since
your opinions were rendered, and especially in view of the un
precedented emergency situation confronting our banking system,
I am inclined to "believe that the courts will he disposed to go
as far as possible in upholding the validity of transactions
entered into in good faith by the Jtederal reserve banks in order
to meet the emergency, especially where the federal reserve banks
acted reasonably and no great injustice resulted.

In other words

I think a lot of new case law will grow out of the recent bank
ing emergency and that it is impossible to predict what the courts
will hold were the respective rights of various parties in the
light of the unprecedented situation that faced the country dur
ing the first three months of this year.
I am sending copies of your opinions to Counsel for
all of the other Federal reserve banks and I am sure that they
will read them with much interest.
Trusting that your leather* s health has materially
improved and with kindest personal regards to you both, I am,
Cordially yours,

W /om
W c

(S) Walter Wyatt
General Counsel

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L-32-a
UELAND & UELAHD
Attorneys and Counselors

800 Security Building
Minneapolis
March 3, 1933,

Walter Wyatt, Esq.,
Counsel Federal Reserve Board,
Washington, D. C.
Bear Walter:I enclose copies of three opinions I have given the
Federal Beserve Bank of Minneapolis dealing with the subject
of “
bank holidays1.
1

I have not forwarded copies of these

opinions to the counsel for the Federal reserve banks or to
the Acting Comptroller of the Currency, because I am not sure
that you agree with the views expressed in these opinions and
would not wish to distribute the same except with your approval.
If you wish to send out copies, I have no objection whatever.
Owing to the illness of my father, we are deprived
of the benefit of his opinion during this vexatious period.
Very sincerely yours,

(Signed) Sigurd Ueland

SU*MS.

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c.opy

I -32—b
r

iFebruaiy 24, 1933.

i’
ederal Reserve Bank of
Minneapolis,
We have considered the question of "bank holidays0 in
our opinions to you dated December 1, 1932 and January 20, 1933.
In these opinions we only considered questions arising while a
bank is enjoying a

’
’
holiday”; we did not consider questions pre

sented after such a bank has resumed ordinary banking business.
In our earlier opinions we came to the conclusion that
for a national bank to declare a ’
’
bank holiday” was an
insolvency’ within the meaning of the National Bank Act.
’

’act of
’
The

National Bank Act provides:
’All transfers of the notes, bonds, bills of ex
’
change, or other evidences of debt owing to any
national banking association, or of deposits to
its credit * * * made after the commission of an
act of insolvency * * * made with a view to pre
vent the application of its assets in the manner
prescribed by this chapter, or with a view to the
preference of one creditor to another, except in
the payment of its circulating notes, shall be
utterly null and void * *
United States Code,
Title 12, Sec. 91.
Taking collateral for a present loan of money is not a
preference in bankruptcy and the creditor is allowed to enforce
the security against the trustee in bankruptcy of the borrower,
even though the borrower was known to be insolvent at the time the
loan was made.

We understand that the lower federal courts have

arrived at a similar result in cases of loans made on collateral

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L-32-b
Federal Reserve Bank - #2

to insolvent national banks.

However, under the National T o i Act
fnr

not only transfers preferring one creditor over another are void;
transfers after a national bank has committed an act of insolvency
are void if ’
•made with a view to prevent the application of
its assets in the manner prescribed by this
chapter”.
! h application of assets here referred to is a ratable distribu
Ee
tion among all the creditors of the Bank*

Where a loan is made

to a national bank the purpose of the borrower is usually, if not
always, to use the proceeds to pay off certain depositors or
other creditors of the bank.

©lis being so, it seems to us that

the Supreme Court might hold a pledge of collateral to secure a
loan to a national bank, made after the commission of an act of
insolvency, to be "utterly null and void".
In the case of Hirning vs. Federal Reserve Bank of
Minneapolis, 52 Fed. (2d) 382, the United States Circuit Court of
ippeals for this Circuit held that a person dealing with a
national bank after an act of insolvency is liable if such person
partjcipatea in transactions which result in other creditors re
ceiving a preference.

If your Bank should lend money to a

national bank knowing that it had committed an act of insolvency,
and knowing or having good reason to suspect that the proceeds
of the loan would be used to prefer certain creditors of the
national bank, we do not feel at all confident that your Bank would

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L-32-b
federal Reserve Bank - #3

be able to hold and enforce the collateral given for such loan.
The next question is * when a bank has committed an act
»
of insolvency, how long does that fact operate as a danger signal
to all who do business with the bank?

Neither the statutes nor

the decisions seem to throw much light on this question.

Certain

ly the act of insolvency can be cured by. the restoration of the
•bank to actual solvency.

But the situation you will be confronted

with is one where there has been an act of insolvency by a bank
which subsequently resumes doing business, but remains in fact in
solvent,

In this situation the fact that the banking authorities

have failed to perform their duty and appoint a receiver for the
bank would hardly constitute a shield behind which others could
hide.

On the other hand the courts would hardly assert that a

transfer was **utterly null and void” because of an act of insolvency
ten years prior thereto.

It is a question of decree where no de

finite boundary line can be drawn.

In the earlier stages, however,

after an act of insolvency has been committed we think you cannot
deal with the bank in question without considerable risk until it
has been examined by the proper banking authorities and found to be
in a solvent condition.
In conclusion, we think that where a bank has gone on a
^holiday1 and then resumes the transaction of general banking busi
1
ness, being in fact .
insolvent, and the banking officials shut their
eyes to the situation, you incur considerable risk of legal liabil-

from the Unclassified I Declassified Holdings of the National Archives

DFC^Li
ASSIFIFIj

Ir-32-b
Federal Reserve Bank - #4

ity:

(1)

if you forward checks drawn on such hank direct to it for

payment; (2)

if you pay drafts drawn by such bank on its reserve

account with your bank; or (3)
for such bank.

if you make new loans or discounts

(In the case of drafts drawn on the reserve account

you are confronted with a real dilensna because you may incur
liability by refusing to pay such drafts, if the member bank is
in fact solvent.)

As we indicated in our earlier opinions, there

may be less risk in cases (2) and (3) where you are dealing with
a state bank organized in a state in your district, other than
Michigan, than in the case of a national bank.
Whether you should assume any or all of these risks or
whether you should take the position that these banks coming out
of the "holiday” condition should first have their solvency passed
upon by those officials who were charged by law with this duty,
are questions of policy outside of our jurisdiction.

UELAm
By
SU*MS.

& TXELAHD,

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L~32~c

January 20, 1933

Mr. A. E. Larson,
Assistant Cashier*

Answering your memorandum dated January 18, 1933 with
reference to so called "bank holidays.

Where the banking author

ities permit such an anomalous, if not illegal, situation to exist,
it creates a very embarrassing situation for your "bank,
I should think that in such instance of a member national
bank, or a member state bank located in Michigan, which goes on a
"holiday”, your bank should immediately notify such member that
you will not honor drafts on the reserve account and your bank
should further ask for instructions as to collections.
I think bonds can safely be surrendered to the bank
itself but not to others*

Indeed I see no reason why currency

payments might not be made to the bank itself, or why moneys in
the reserve account might not be paid to the bank itself by means
of your bank*s draft or cashier* s check.

In such a case I see

no reason why liability should attach to your bank under the
preference statute (U.S.C* title 12, sec. 91 in the case of
national banks) unless your bank in some way is a party to a
plan whereby some creditor or creditors of the member bank are
to...receive a preference.

If your bank should issue its cashier’s

check to the member bank and it should make a preferential transfer

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Mr. Larson - §2

of the same which should subsequently be held void, your bank, if
it had paid the check, could, I assume, fall back on your endorser.
The reason why your bank cannot safely pay drafts on
the reserve account is because in that case you are put on notice
that the bank, which has committed, an act of insolvency, is
transferring funds, presumably to creditors.

In the case of

payments made to the bank itself no preference would result
by reason of such payments, but could arise only by reason of some
subsequent disposition made of the money by the recipient bank.
In view of the fact that the situation is loaded with
dynamite, it would seem a wise policy to keep transactions with
a bank in this moribund condition to a minimum.

uelahd & i m u m
By

SU/MG

■ ..

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L-32~d
December 1, 1932.

Mr, Harry Yaeger, Deputy Governor,
Federal Reserve Bank of
Minneapolis.
In your memorandum dated November 29, 1932, you inquire
as to the duties and liabilities of the Federal Reserve Bank of
Minneapolis with respect to banks in the Ninth Federal Reserve
District which have declared what is termed “a bank holiday” .

Our

understanding is that during a certain period one or more banks
in a town endeavor to get their depositors to agree to extend the
time of payment of a given percentage of their deposits or to re
lease such given percentage entirely or look only to certain
charged off assets for the payment of the same.

During such period

the banks are not open for ordinary "business and do not permit
withdrawals through the teller*s window.

We assume in what fol

lows that the fact that the holiday has been declared is known to
the officers of your bank.
In our opinion if your bank continues to forward checks
drawn on a bank which is enjoying a “holiday” directly to such
bank for payment and remittance by it, your bank may incur liabil
ity if loss thereby results.

When a bank declares a holiday

it is tantamount to an admission that the bank is in an in
solvent condition.

Forwarding to a bank known to be in a weakened

condition, in our opinion, is negligence, and neither Regulation
J of the Federal Reserve Board, your current check collection
circular, the statute governing bank collections in Minnesota

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Authority

(Mason*s Statutes, Sec. 7233-1), nor the Uniform Bank Collection
Code which is in force in Michigan and Wisconsin, exempts a
collecting 'bank from liability for loss due to negligence,
The next question to he considered is whether when the
hank declaring a holiday is a member bank, your bank should con
tinue to honor drafts on the reserve account or permit the trans
fer of reserve balances by other methods,
The National Bank Act provides that "all transfers * * *
of deposits” to the credit of a national banking association and
u
"all payments of money to its creditors Hmade after the comrmission of an act of insolvency, or in contemplation thereof,
made srith a view
other, * * *
Sec* 91.

* * * to the preference of one creditor to an

shall be utterly null and void*1. U. S. C., Title 12,

In our oioinion when a national bank ceases to pay its

depositors in the usual course of business, that is an !act of in
,
solvency" toithin the meaning of the statute.
Market National Bank v. Pacific National Bank,
30 Hun. 50, Aff. 93 N. Y. 648;
First National Bank of Ortonville v. Andresen,
5? Fed. (2d) 17 (C. C, A. 8),
Accordingly in the case of a national bank we do not see how your
bank can safely continue to honor drafts after knowledge received
by the officers of your bank that the national bank in question
has declared a holiday.
in the

Such drafts and other transfers of credit

reserve account would almost inevitably have the effect of

preferring creditors of the national bank.

Under the National

Bank Act such payments or transfers would be void and your bank

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L~32~a

Harry Yaeger - #3
might he held liable to a subsequently appointed receiver of the
national bank to the same extent as if the drafts had. not been
paid and the transfers had not been made.

See Hirning, Receiver,

Federal Reserve Bank of Minneapolis, 52 Fed. (2d) 382.
In the case of state banks in states in the Ninth Fed
eral Reserve District, we have made a hasty examination of the
state statutes and do not find any xorovision similar to Title
12, Sec. 91 of the U. S. Code exceiot in Michigan.

Section 11946

of the Compiled Laws of Michigan, 1929, is almost identical
with the provision in the National Bank Act on the subject of
preferences.

Accordingly we think you should treat member state

banks located in Michigan in the same manner as national banks*
When a national bank or a state member bank in Michigan
goes on a bank holiday it would seem advisable to notify the
officers by telephone not to draw drafts or attempt to make trans
fers because the same cannot be honored.
As to state member banks in the other states of the
Ninth District, we think you can safely continue to pay drafts
until the bank is actimlly closed by its board of directors or by
the banking authorities.
The question remains as to the proper course to be
followed by your bank with respect to checks drawn on banks which
have declared a holiday.

We think it would not be safe for your

bank to receive payment of checks drawn on national bank or state

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L-32-d

Harry Yaeger • #4
*
banks in Michigan,

Under the doctrine of the Hirning case your

bank might thereby render itself liable for having received an
unlawful preference.

Accordingly it seems to us that in the case

of these banks your bank should return the items to its endorsers
advising them that the bank in question is reported on a ”bank
holiday” , or words to that effect.

As to checks on other banks,

we think you have the alternative of having them presented
over the counter by an agent or of returning them to your en
dorsers, as suggested in the case of national banks.

We assume

that non-member banks going on a holiday would be taken off your
par list.
We do not consider in this opinion under what circum
stances or in what manner acts of insolvency of a bank can be
cured so that your bank could safely resume the transaction of
ordinary business with such bank.
TJELAHD & UELAHD
By
SU*MS.
In McDonald, Receiver, vs. Chemical National Benk, 174 U.
S. 610, it was held that the mere fact that a correspondent of a
national bank had refused to pay its draft was not sufficient proof of
an ”act of insolvency” . But in our opinion this is quite a different
thing from the refusal of a national bank itself to pay its obligations
in the usual course of business.

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DECLASSIFIED

FEDERAL RESERVE BO ARD
WASHINGTON

X-7399

A D D R E S S O F F IC IA L. C O R R E S P O N D E N C E T O
TH E FED ERAL RESERVE BOARD

April 6, 1933.

SUBJECT:

Executive Order Prohibiting
the Hoarding of Gold.

Dear Sir:
Confirming the telegram sent you yesterday,
trans. 1753, there is inclosed herewith a copy of
the executive order issued by the President of the
United States on April 5, 1933, forbidding the
hoarding of gold coin, gold bullion, and gold
certificates.

A copy of the press statement issued

by the Secretary of the Treasury on the same date,
and quoted in the Board's telegram of this date,
trans. 1755, is also inclosed.
Very truly yours,

Chester Morrill,
Secretary.

Inclosures.

TO CHAIRMEN AND GOVERNORS OP ALL P. R. BANKS,

!
■

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DECLASSIFIED
Authority

&Q (0 S iQ (

EXECUTIVE ORDER
Forbidding the. Hoarding of Gold Coin, G-old Bullion
and Gpld Certificates.

. virtue of the authority vested in me by Section 5(b) of the
Ey
Act of October 6, 1917, as amended by Section 2 of the Act of March 9, 1935,
entitled "An Act to provide relief in the existing national emergency in
banking, and for other purposes,” in ^hich amendatory Act Congress declared
that a serious emergency exists, I, Franklin D. Roosevelt, President of the
United'States of America, do declare that said national emergency still con
tinues to exist and pursuant to said section do hereby prohibit the hoarding
of gold coin, gold bullion, and gold certificates within the continental
United States by individuals, partnerships, associations and corporations
and-.'hereby prescribe the following regulations for carrying out the purposes
of this order-:
Section 1

For the purposes of this regulation, the term "hoarding"

means the withdrawal and withholding of gold coin, gold bullion or gold
certificates from the recognized and customary channels of trade.

The term

"person" means any individual, partnership, association or corporation*Section 2.

All persons are hereby required to deliver on or before

Hay 1, 1933, to a Federal reserve bank or a branch or agency thereof or to
any member bank of the Federal Reserve System all gold coin, gold bullion and
gold certificates now owned by them or coming into their ownership on or be
fore April 28, 1933, except the following:

(a)
Such amount of gold as may be required for legiti
mate and customary use in industry, profession or art within
? a reasonable, time, including gold prior to refining and stocks
of gold in reasonable amounts for the usual trade requirements
of owners mining and refining such gold.

DECLASSIFIED

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Authority

(b) Gold coin and gold certificates in an amount not
exceeding in the aggregate $100.00 belonging to any one
person; and gold coins having a recognized special value
to collectors of rare and unusual coins.
(c) Gold coin and bullion earmarked or held in trust
for a recognized foreign government or foreign central
bank or the Bank for International Settlements*
(d) Gold coin and bullion licensed for other proper
transactions (not involving hoarding) including gold coin
and bullion imported for reexport or held pending action
on applications for export licenses.
Section 3.

Until otherwise ordered any person becoming the owner

of any gold coin, gold bullion, or gold certificates after April 28, 1933,
shall, within three days after receipt thereof,- deliver the same in the manner
prescribed in Section 2; unless such gold coin, gold bullion or gold certifi
cates are held for any of the purposes specified in paragraphs (a), (b) or (c)
of Section 2; or unless such gold coin or gold bullion is held for purposes
specified in paragraph (d) of Section 2 and the person holding it is, with
respect to such gold coin or bullion, a licensee or applicant for license
pending action thereon.
Section 4.

Upon receipt of gold coin, gold bullion or gold certifi

cates delivered to it in accordance with Sections 2 or 3, .the Federal reserve
bank or member bank will pay therefor an equivalent amount of any other form
of coin or currency coined or issued undei* the laws of the United States.
Section 5.

Member banks shall" deliver all gold coin, gold bullion

and gold certificates owned or received by them (other than as exempted under
the provisions of Section 2) to the Federal reserve banks of their respective
districts and receive credit or payment therefor*
Section 6. .The Secretary of the Treasury, out of the sum made
available to•the President,by Section 501 of the Act of March 9, 1933, will
in all proper cases pay the reasonable costs of transportation of gold coin,
gold bullion or gold certificates delivered to a member bank or Federal re
serve bank in accordance with Sections 2, 3, or 5 hereof, including the cost

DECLASSIFIED

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kOjQ^O I

Authority

- 3 of insurance, protection, and such other incidental costs as may be necessary,
upon production of satisfactory'
evidence of such costs*

Voucher forms for

this purpose may be procured from Federal reserve banks.
Section 7

In cases where the delivery of gold coin, gold bullion

or gold certificates by the owners thereof within the time set forth above
will involve extraordinary hardship or difficulty, the Secretary of the
Treasury may, in his discretion, extend t ae time within which such delivery
j
must be made.

Applications for such extensions must be made in writing under

oath, addressed to the Secretary of the Treasury and filed with a Federal
reserve bank*

Each application must state the date to which the extension

is desired, the amount and location of the gold coin, ,rold bullion and gold
certificates in respect of which such application is made and the facts show
ing extension to be necessary to avoid extraordinary hardship or difficulty*
Section 8.

The Secretary oi the Treasury is hereby authorized and

empowered to issue such further regulations as he may deem necessary to carry
out the purposes of this order and to issue licenses thereunder, through such
officers or agencies as he may designate, including licenses permitting the
Federal reserve banks and member banks of the Federal Reserve System, in re
turn for an equivalent amount of other coin, currency or credit, to deliver*
earmark or hold in trust gold coin and bullion to or for persons showing the
need for the same for any of the purposes specified in paragraphs (a), (c)
and (d) of Section 2 of these regulations.
Section 9.

TThoever willfully violates any provision of this Executive

Order or of these regulations or of any rule, regulation or license issued
thereunder may be fined not more than $10,000, or, if a natural person, may
be imprisoned for not more than ten years, or both; and any officer, director,

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Authority A

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- 4 -

or agent of any corporation who knowingly participates in any such violation
may be punished " y a like fine, imprisonment, or "both.
b

This order and these regulations may he modified or revoked at
any time,
YRhMLI'S D. ROOSEVELT

THE T7HITE- HOUSE
April 5, 1933,

R ep rod uced from the U ncla ssified

I D eclassified H oldings of the N ational A rchives

D E C L A S S IF IE D

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Authority

(0 5*0 I

TREASURY DEPARTMENT

No. 32.
FOR IMMEDIATE R2LEA.SE
MARCH 30, 1933. -

Under the authority conferred upon him " y the Presidents
b
Proclamations of March 6 and of March 9, 1933, declaring and con
tinuing a "bank holiday, the Secretary of the Treasury has issued
the following regulation:

"Any State .tank: which is a mer-ber of the
Federal Reserve System, and is not licensed " y
b
the Secretary of the Treasury to perform usual
"banking functions, may permit v/ithdrav/als of
deposits which are lawfully secured " y collateral;
b
provided, that such withdrawals are (a) permissible
under applicable law, ( b duly authorized oy the
")
Board of Directors of such "bank, upon such terms
with respect to the release of collateral as will
fully protect all depositors and other creditors
against the creation of any preferences, and
(c) approved " y the appropriate State authority
b
having supervision of such "bank.
"Any such "bank is authorized to carry on such
usual "banking functions as may be essential to
allow the withdrawals permitted by this regulation,
subject to the provisions and restrictions above set
forth and except as otherwise prohibited.1
1

W. H. WOODIN'
Secretary of the Treasury

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Authority

TREASURY DEPARTMENT

&0 (O^O I

N o. 31
FOR IMMEDIATE RELEASE
MARGE 30, 1933.

Under the authority conferred upon him " y the Presidents
b
Proclamations of March 6 and of March 9, 1933, declaring and con
tinuing a bank holiday, the Secretary of the Treasury has issued
the following regulation:
"Any banking institution which is a member of the
Federal Reserve System and is not licensed to perform
usual banking functions, but which is duly authorized
to engage in the business of acting as trustee,
executor, administrator, registrar of stocks and bonds,
transfer agent, guardian of estates, assignee, receiver,
committee of estates of lunatics, or in any other
fiduciary capacity, may transact such business in the
normal and usual manner and may make payments on account
of the principal or income of trust or other fiduciary
funds to the persons entitled thereto; provided, that,
except to the extent permitted by other Emergency
Banking Regulations, no such banking institution shall
withdraw or pay out any trust or other fiduciary funds
on deposit with any other department of such banking
institution or make any other payment in connection with
any trust or other fiduciary funds which would operate to
discharge, as a whole or in part, any indebtedness, as
distinguished from any trust or other fiduciary duty, of
such banking institution.
"This regulation supersedes Emergency Banking
Regulation No. 13 of March 7, 1933, which is hereby revoked."

T . H. WOODIN
T
Secretary of the Treasury.

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority

TREASURY DEPARTMENT

&Q fO^0 I

No. 31
FOR IMEDIATE RELEASE
MARCH 30, 1933.

Under the authority conferred upon him " y the President !s
b
Proclamations of March 6 and of March 9, 1933, declaring and con
tinuing a bank: holiday, the Secretary of the Treasury has issued
the following regulation:
"Any 'banking institution which is a member of the
Federal Reserve System and is not licensed to perform
usual banking functions, but which is duly authorized
to engage in the business of acting as trustee,
executor, administrator, registrar of stocks and bonds,
transfer agent, guardian of estates, assignee, receiver,
committee of estates of lunatics, or in any other
fiduciary capacity, may transact such business in the
normal and usual manner and may make payments on account
of the principal or income of trust or other fiduciary
funds to the persons entitled thereto; provided, that,
except to the extent permitted by other Emergency
Banking Regulations, no such banking institution shall
withdraw or pay out any trust or other fiduciary funds
on deposit with any other department of such banking
institution or make any other payment in connection with
any trust or other fiduciary funds which would operate to
discharge, as a whole or in part, any indebtedness, as
distinguished from any trust or other fiduciary duty, of
such banking institution.
"This regulation supersedes Emergency Banking
Regulation No. 13 of March 7, 1933, which is hereby revoked."

T . H, W00DIN
7
Secretary of the Treasury.

Reproduced from the Unclassified I Declassified Holdings of the Nat:onal Archives

D E C L A S S IF IE D
A u t h o r it y

fQ g Q

No. 30
TOR IMMEDIATE RELEASE
MARCH 28, 1933.

TREASURY DEPARTMENT

Under the authority conferred upon him " y the Presidents
b
Proclamations of March 6 and of March 9, 1933, declaring and con
tinuing a hank holiday, the Secretary of the Treasury has issued
the following regulation:
"Banking institutions which are members of the
Federal Reserve System and of v-hich actual possession
and control have been taken (a) by conservators
appointed pursuant to the Act of March 9, 1933, or
(b) by appropriate State officials appointed pursuant
to State law, as permitted by the Presidents Executivo
Order of March 18, 1933, are permitted to transact such
limited banking functions as may be authorized in
accordance with law by the Comptroller of the Currency,
in the case of national banks, or by the appropriate
State officials, in the case of State member banks;
•provided, however, that no such banking institution
shall reopen for the performance of its usual and
normal functions until it shall have received a license
from the Secretary of the Treasury.
’This regulation shall not authorize any trans
’
action with respect to the export or paying out of
gold, or gold certificates, withdrawal of currency
for hoarding or transactions in foreign exchange pro
hibited or restricted by the Executive Order of March
10, 1933."

¥. S. WOODIN
Secretary of the Treasury

DECLASSIFIED

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Authority

fO ^ O

Ir-31

CO P Y

REC’ IN RECORDS SEC JON
D

FEDERAL RES33BV3 B A M

M A Y I S 1958 U / '

OF NEW YORK

March 22, 1933.
nr
Walter %-att, Esq., General Counsel,
Federal Reserve Board,
Washington, D. C
Dear Walter:
I enclose a copy of letter dated March 15, 1933, which
Deputy Comptroller Gough wrote to me, and a *copy of my reply dated
March 18, with reference to a check for $14,000 deposited by Mr. A.
Dreyfuss in the Harriman National Bank & Trust Company of Hew York.
I have discussed this question on the telephone with Mr.
Anderson twice and I think he intends to discuss it with you.

seems to me that the banking holiday should be treated like any
other holiday and should not prevent the transactions which were
permitted within the terms of the regulations from having their nor
mal effect upon the relationship between banks and their depositors
§.nd between banks and their correspondent institutions.

I hope very

much that the Comptroller’s office will not take any position to the
contrary for it would not only be unsound in principle in my opinion,
but would be obviously unfair and embarrassing to Federal Reserve
Banks and other banks which, in their effort to cooperate in the
general plan, carried on the limited transactions permitted by the
Treasury regulations during the holiday.
Faithfully yours,
C ^ S L - t \ ■A J
/ .

f,'
i;

■Py f t ?
,JJjr/-

Encs.

(Signed) Walter S. Logan,
Deputy Governor and General Counsel.

'CardeJ

DECLASSIFIED

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Authority

(O^O I

L-31-a
C
0
p
Y

TREASURY DEPARTMENT
mSHIl'GTON

Comptroller of the Currency

March 15, 1933,

Walter S. Logan, Esq.,
Deputy Governor and General Counsel,
Federal Reserve Bank of I e ? York,
tr
New York, New York.
Dear Sir:
Mr. A. Dreyfuss of New York City, deposited a check in the
amount of approximately $14,000.00, drawn on a Rochester, New York,
Ban1 , to his credit in the Harriman National Bank and Trust Comr:
pany of New York on March 1. As you know, the Earriman National
Bank and Trust Company was agent for collection under the New
York Law and the Conservator of the Harriman National Bank and
Trust Company advises that Mr. Dreyfuss is not. in any way indebt
ed to his "bank.
We understand that this check was forwarded for collection
through the Federal Reserve Bank of New York and credited to the
account of the Harriman National Bank and Trust Company. Mr. Dreyfuss
asserts that he was refused permission to draw against this provisional credit in the Harriman National Bank and Trust Company of March 3,
hence.it would appear, that the relationship "between the bank and .
Mr. Dreyfuss was that of principal and agent when the State Bank
Holiday "became effective on March 4 and continued during the period
the bank operated -under the Presidents proclamation until the ap
pointment of a Conservator.
We are inclined to the view that the proceeds of this item
should be surrendered to Mr. Dreyfuss if and when they come into
the hands of the Conservator. May we request a statement of the
disposition proposed to be made of the balance standing to the cred
it of the Harriman National Bank and Trust Company and whether or
not the Federal Reserve Bank asserts the right to apply the pro
ceeds of this item in reduction of any indebtedness due it by the
Harriman National Bank and Trust Company.

Yours very truly

(Sgd) ,E. W. Gough
Deputy Comptroller

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

Authority

fO*20 I

FEDERAL RESERVE B A M
OF NEW YORK

March 18, 1933.
Comptroiler of the Currency,
Washington, D. <
Attention:

Mr. Gough, Deputy Comptroller.

Dear Sir:
Receipt is acknowledged of your letter of March 15,
1933, with reference to a check for $14,000 deposited by Mr. A.
Dreyfuss in the Harriman National Bank & Trust Company of Hew York.
On March 1, 1933, we received a check for $14,000 in the
casn letter dated February 28, 1933, of the Harriman National Bank:
& Trust Company. This check was numbered A140, dated March 1, 1933,
and was drawn by W. I . Kneath to the order of A. Dreyfuss on the
T
Security Trust Company, Rochester, Hew York. We forwarded the
check for $14,000 in our cash letter dated March 1 to the Security
irust Company, and on March 3 we received and collected through
the Hew York Clearing House the Security Trust Company's remittance
draft for the $14,000 item and all other items included in our cash
letter with the exception of three small items which were returned
unpaid. On March 3 we gave credit to the Harriman National Bank
& Trust Company, New York, in its reserve account on our books for
the $14,000 item and other items included in the same cash letter.
The collection of the $14,000 item was, therefore, com
pleted on March 3 and on that date the relationship of the Harriman
National Bank & Trust Company to the depositor of the item changed
from that of agent to debtor, and it would seem to me clear that
the depositor is not entitled to receive the proceeds of the item.
Your letter has, however, raised in my mind the question
of whether the situation would be any different if the collection
of the remittance draft had not been completed on March 3, but had
been completed subsequently during the bank holiday. In ny o~oinion
this would not make any difference.
You will recall that Regulation No. 8 issued by the Secre
tary of the Treasury under the President s proclamation declaring
a bank holiday provides as follows:

"Where settlement for checks charged by
drawee institutions to the drawers accounts on
its books on or before March 4, 1933, is in
complete, settlement may be completed where such
settlement does not involve the payment of money
or currency."

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED

j Authority £ 0

1
0^0 I

L~31~b
Comptroller of the Currency

3/18/33.

In accordance with this regulation most of the remittance
drafts which we received on March 4, 1933, and which were, of course,
in settlement of checks charged to the accounts of the makers or
drawers thereof on the "books of the remitting banks on or before
March 3, 1933, were paid during the following week while all banks
were operating under the Secretary*s regulations.
I
do not think that the bank holiday, any more than any
other holiday, operated to terminate the agency relationship be
tween the depositor and the depositary bank. Consequently, I be
lieve that with respect to an item in process of collection when the
bank holiday began, the agency relationship would continue until
changed to that of debtor and creditor upon payment of the re
mittance draft in accordance with Regulation I
To. 8.
At the opening of business on March 13, 1933, on which date
we understand the Conservator of the Harriman Rational Bank & Trust
Company was appointed, the balance in the reserve account in favor
of that institution on our books was $992,248.30, and the institution
was indebted to us for a total of $1,388,500 secured by $1,041,000
face amount of Government securities and approximately $347 ,500 face
amount of eligible paper. It is apparent from these figures that
even without the eligible paper we could liquidate the indebtedness
of the Harriman ITational Bank & Trust Company by the sale of the
Government securities and by offset of a part of its reserve balance,
and still leave a credit balance of approximately $645,000 in favor
of that institution in its reserve account. Under the circumstances,
therefore, we are not really interested in the disposition of the
proceeds of this particular item of $1,400, except that it might
be considered a precedent in other cases.

Very truly yours,

Walter S. Logan,
Deputy Governor and General Counsel.

Copy sent to Mr. John P. Anderson,
Office of the Comptroller
of the Currency*

rceproaucea rrom the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
j Authority

?Q /

No. 29

TREASURY DEPARTMENT

FOR IMMEDIATE RELEASE
MARCH 21, 1933.

Under the authority conferred upon him by the President’s
Proclamations of March 6 and of March 9, 1933, declaring and con
tinuing a bank holiday, the Secretary of the Treasury has issued
the following regulation

nAny banking institution which is a member of the
Federal Reserve System and is not licensed to perform
usual banking functions may rediscount or pledge with
another banking institution renewals of notes which
were previously rediscounted or pledged with such other
banking institution.1
1

W. H. T700DI3T
Secretary of the Treasury

DECLASSIFIED

Reproduced from the Unclassified I Declassified Holdings of the National Archives

fO^O I

Authority

3 L y

y y u
- (I
t '

C ^ lA ^

/,
/
(f
j
!

C-t+*L<
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7
W

,>*
£V

$>
QA/I.IUa ' ■

/i 4
6:

u m *o

.T*

/'
f
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Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

I Authority

0 fO

H 'l o

No, 28
TREASURY DEPARTMENT

FOR IMMEDIATE RELEA.SE
March 18» 1933,

Under authority conferred upon him by the President’s
Proclamations of March 6, 1933* and of March 9, 1933, declaring
and continuing a bank holiday, the Secretary of the Treasury has
issued the following regulation:

“After the close of business on March 18,
1933, Treasury Regulation No. 6 and Treasury
Regulation No. 10, as amended, shall be without
force or effect to authorize any banking transaction
therein referred to.”

W. H. WOODIN
Secretary of the Treasury,

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

Authority^ 0 i O ^ O I

'o.
T
FOR Ik*.XDIi
RHLEA.se
MARCH 18, 1933.

TREASURY DEPARTMENT

Under authority conferred upon him " y the President’s Proclamations
b
of Mardh 6, 1933, and of March 9, 1933, declaring and continuing a hank
holiday, and the Executive Order of March 10, 1933, the Secretary of the
Treasury has issued the following regulation:
"Any .state hanking institution which is a member of
the Federal Reserve System and which is not licensed by
the Secretary of the Treasury to reopen for the performance
of usual banking functions may, with the approval of the
appropriate State authority having immediate supervision
of such banking institution, permit withdrawals by
depositors and make payments to creditors of such per
centage of the amounts due to them (not exceeding 5$)
as it may determine, provided that at or before the time
of such withdrawal or payment it shall set aside and make
available for such purpose a fund for the benefit of and
sufficient to pay to all depositors and creditors the
percentage so determined.
"This regulation shall not in any way affect any
right created by Regulation No. 7 nor limit or restrict
any payment thereby authorized.
"Any right to authorize withdrawals or payments under
the terms of this regulation shall terminate upon the
appointment of any conservator, receiver or other appropri
ate State official taking charge of the affairs of such
banking institutions."

I. H. W00DIN
Secretary of the Treasury,

R ep rod uced from the U ncla ssified

DECLASSIFIED

I D eclassified H oldings of the N ational A rchives

A u t h o r i t y 1% 0

w h m

11)

To {ioveroorfU Foderd Rsstrv* B t f a
uoc
Illw
0 t jUmis, Mo,
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Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED

I Authority 1 0
%

(0501

*
FOR IMMEDIATE m H A S E ,
MARCH 18, 1973.

TREASURY ^ FP A R T M T

M W T I T S 0RD5R

3y virtr.6 of the authority vested in me by Section 5(b) of the Act of
October 6* IS17 (40 Stat. L., 411) as amended by the Act of March 9, 1933 and
by Section 4 cf the said Act of March 9, 1933, and by virtue of all other
authority vested in me, I hereby issue the following executive order.
Whenever the appropriate authority having immediate supervision of any
banking institution located in any State or place subject. to the jurisdiction
of the United States, which is a member of the Federal Reserve System and
which has not been licensed by the Secretary of the Treasury to resume its
usual banking functions, shall deem it necessary or advisable in order to
conserve the assets of such banking institution for the benefit of the de
positors or other creditors, such authority may* in accordance with the
provisions of the applicable laws of such state or place, appoint such
appropriate official as ma?/ be authorized under such laws to conserve the
assets of such banking institution pending further disposition of its
business as provided by such laws.
This rrder shall not authorize any such member bank to reopen for the
perfcrw n o of usual and normal functions until it shall have received &
licens ; ’
rera the S- ■ tary of the Treasury an provided in Executive Order
.jo
of March 10, IS3c

FRAUELI1T D. R00S3VELT
The White Hou^r,
March lg, .933.-

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED

0 f0

Authority 1
%

mxrch 13, 1933.

Francisco*

llKte consulted with frimmry Department with reference to your telegr***
of fiardh 8 und m

adhri*#d that, owing to the % r m % anraher of Inquiries

and requests for rulin&s received, freacury hae lammi unable to aiterapt
to rule specifically as to whether particular pl&aa do or do not comply
with the regulations which haw*? I m t issued.
m&i

Cannot* therefore, obtain

definite answer to question you presented at this time.

Morrill•

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

! Authority 1
%

0 (O^O I

TELEGRAM
FEDERAL RESERVE SYSTEM
(UEASED WIRE SERVICE)

I03bs
Boston 255P Mar 13

r e c e iv e d a t

s h in g t o n

Board
Washington
In reference to trans 1555 distant country banks are now
trying to draw on their deposits

open B eston banks for

currency not for necessary needs previously recognized by
regulations but to be prepared to open if and when permitted
stop Boston banks in doubt whether payment to closed bank for
this purpose is now permitted stop Prompt advice would be most
he Ipful

Young
307PM

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

Authority 1
%

F o r m 118

0 (Q

t
o

TEL.CGRAM

FEDERAL RESERVE BOARD
W ASHINGTON

March 13, 1933

Seay - Richmond

lour telegram* (Statement issued l y Secretary of Treasury todey as
a
follows! "Banking institutions which have not yet been permitted to
reopen for noraal and usualfunctions are still permitted to continue
to carry on the limited activities specified by Regulations 1 to 19**

McClelland

p w ,? ( C E i
<cLL.
CSie.^-; -

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED

! Authority 1
%

0 (O^O I

TELEGRAM
FEDERAL RESERVE SYSTEM

U'lQ

(LEASED WIRE SERVICE)

R E C E IV E D A T W A S H IN G T O N , D . C .

blrh m
Richmond 115p Mar 13
^orrill
Washn
A member bank in this city which has not received a license to
reopen requests us to ask whether or not a member bank in a
reserve city which has not received a license to reopen may make
payments for payrolls and other purposes permitted by presidents
proclamation and regulations of the Secretary issued last week.
Seay
121PM

•.■.MnmnmMMNiiM

t-llM

’

DECLASSIFIED

Reproduced from the Unclassified / Declassified Holdings of the National Archives

Authority

f -0 (i)C (
->0

F o r m 148 b

TELEGRAM
FEDERAL RESERVE BOARD
W ASHINGTON

larch 13, 1933

McDougal - Chicago
/V

Comptroller of Currency has received teleg^aai fro® President
Stockyards Bank and Trust Company, Chic&goL making application
* in n .. .ij
— ui ..
.ni
[
.

for loan of $6,000,000 to be secured by collateral consisting
of sundry notes, mortgages and real estate bonds aggregating
$12,000,000 held by the bank*

Please communicate idth institution,

ascertain what it has in mind and arrange for proper direction of
application*
McClelland

EMM/fsf

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

Authority

f 0 (Q3 Q (

1C7WNB34

i E X TR A
TR

^
T E L E G R A P H O F F IC E

CHICAGO I L L S 1250PM MAR 12TH

‘ ’
3

*•

” *

/ /

13 j.

I f

Received at Washington, D. C. c- /

COMPTROLLER OF CURRENCY
WASHN DC#
WE HEREBY MAKE A P P L I C A T I O N FOR A LOAN OF S I X M I L L I O N DOLLARS TO BE
SECURED BY C O L L A T E R A L C O N S I S T I N G OF SUNDRY NOTES MORTGAGES AND REAL
E S T A T E BONDS AGGREGATING TW ELV E M I L L I O N DOLLARS HELD BY T H I S BANK•

D H RIE MERS, P R E S I D E N T STOCKYARDS BANK
AND TR U S T CO
211PM

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority 1
%

0 (O^Q j

Ho.
TREASURY DEPARTMENT

FOR IMMEDIATE .RELEASE
March 13, 1933.

Under the authority conferred upon him by the President’s
Proclamations of March 6, 1933, and of March 9, 1933, declaring
and continuing a bank holiday, the Secretary of the Treasury has
issued the following regulation:

,ALl banking institutions may issue drafts trans
f
ferring credits from any place in the United States to
any other place in the United States and from any place
in the United States to any place in a foreign country
in connection with payments for domestic and foreign
patent, trademark and design application fees, and in
payment for domestic and foreign patent and trademark
taxes and renewals.

No gold or gold certificates

shall be paid out, withdrawn, or exported under this
regulation.”

W. H. WOODill
Secretary of the Treasury.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

!Authority1%

0 (O^O I

No. 25
TREASURY DEPARTMENT

K)R IMMEDIATE RELEASE
March 13, 1933

Under the authority conferred upon him by the President’s
proclamations of March 6, 1933, and March 9, 1933, declaring and
continuing a bank holiday, the Secretary of the Treasury has issued
the following regulation:

"Pending the determination by the Treasury Depart
ment of a suitable procedure for licensing the delivery
of gold for use in trade, profession or art, Federal
Reserve banks are hereby authorized to deliver upon
request therefor gold in amounts deemed by such bank
to be reasonably required for legitimate and customary
uses in trade, profession or art, provided such request
is accompanied by affidavit of the person requesting such
gold stating the amount of unmanufactured gold on hand
and the facts making it necessary to obtain such gold
for the purpose of maintaining employment.
"All banks licensed to open for usual and normal
functions are permitted to carry out any transaction
necessary to complete the delivery of any gold authorized
by any Federal Reserve Bank to be delivered in accordance
with such request."
W, H. WOODIN
Secretary of the Treasury

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED

0 [Q^Q I

! Authority 1
%

i
No. 24

TREASURY DEPARTMEJTT

FOR IMEDIATE RELEASE
MARCH 12, 1933.

Under the authority conferred upon him " the Presidents Proclamations
by
i
of March 6 and of March 9, 1933, declaring and continuing a " a k holiday,
bn:
the Secretary of the Treasury has issued the following regulations;
HA11 hanking institutions may cash official drafts
drawn upon the Secretary of State for payment of salaries,
traveling and other contingent expenses bust not for per
sonal account, and remit the amounts thereof to the banks
from which the drafts are received, provided that no gold
or gold certificates shall be paid out.”

W. H. WOODIN
Secretary of the Treasury.

DECLASSIFIED

Reproduced from the Unclassified I Declassified Holdings of the National Archives

No. 23.
3IR1A.SUEY DEPARTMENT

FOR IMMEDIATE RELEASE
MARCH 12, 1933.

Under the authority conferred upon me by the Presidents Proclamations
of March 6th and March 9th and Executive Order of the President of the
United States, dated March 10, 1933, I hereby issue the following regula
tion governing all Banking Institutions whether or not licensed to carry
oh usual and normal functions by the Secretary of the Treasury or appropriate
State authority:
"No banking institution shall permit any withdrawal by any
person when such institution, acting in good faith, shall deem
that the withdrawal is intended for hoarding.

Any banking

institution, before permitting the withdrawal of large or un
usual amounts of currency, may require from the person request
ing such withdrawal, a full statement under oath of the purpose
for which the currency is requested."

W. H. WOODIN
Secretary of the Treasury.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

j Authority

TREASURY DEPARTMENT

0 (0501

Amendment to No. 22.
FOR IMMEDIATE RELEASE,.
MARCH 13, 1033#

Regulation No* 22 issued March 11, 1933, imder the authority
conferred upon me " y the President's proclamations of March 6, 1933
b
and of March 9, 1933, declaring and continuing a bank holiday is
hereby amended so that the first paragraph thereof shall read as
follows:
1
1

All Federal land banks, Federal intermediate credit

banks, joint stock land banks, Federal home 3-oan banks,.
Corporations organized under Section 25(a) of the Federal
Reserve Act, regional agricultural credit corporations and
the Reconstruction Finance Corporation are hereby permitted
to open at 9 o*clock, a. m., Monday, March 13, 1933, to
perform their usual banking functions except to the extent
prohibited by the executive order of the President of the
United States, issued March 10, 1933, by Federal or State
law, or as may hereafter be limited or prohibited by
regulations promulgated by the Secretary of the Treasury.”

W. H. W00DIN

Secretary of the Treasury.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

! Authority 1
%

0 (O^O I

TREASURY DEPARTMENT

FOR IMMEDIATE RELEASE,
Monday, March 13, 1933.

STATEMENT BY SECRETARY OF THE TREASURY WOODIN

Banking institutions which have not yet "been permitted to
reopen for normal and ■usual functions are still permitted to con
tinue to carry on the limited activities specified " y Regulations
b
L to 19.

W. H. WOODIN
Secretary of the Treasury.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

j Authority

iO^C) I

TELEGRAM
FEDERAL RESERVE SYSTEM
(l e a s e d

w ir e

s e r v ic e

)

R E C EIV E D A T W A S H IN G T O N , D . C .

Richmond 540pm

M
ar

*41
C
opy sent to Sec* Woodin
Bd. Member s
Dr. Golden*
Hr* Sjnead_
_
FLF

Fedl Reserve Board,
Washington
It should be quickly taken into account that if a Federal Reserve
hank discounts a considerable volume of 10~B paper, as we believe
we will at once be called upon to do, and member banks withdraw
their reserves thus established, and the reserve bank loses gold
by such withdrawals through gold fund settlements or otherwise,
without having a supply of the new federal reserve bank notes to
issue against it's 10-B collateral and to pay out in the ordinary
course of business , the reserve position of the Federal Reserve
bank may be seriously affected.
Seay

. s o T B ic rr prihtumotnb im*
. oSK n

553pm

DECLASSIFIED

Reproduced from the Unclassified / Declassified Holdings of the National Archives

Authority 1 ^ 0

iP^Q I

TELEGRAM
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)

7gb

R E C E IV E D A T W A S H IN G T O N , D . C.

Kansascity Mar 12 9am_
Board
Washn
Although we have had no definite instructions, it is assumed that
we now have authority to run through our books tomorrow, monday,
discount transactions for approved member banks, also to make currency
shipments to such approved member banks to reach them on their
authorized opening date.
Please wire whether this understanding
be
is correct.
It will/physically impossible to function all these
transactions in time to be of full service to member banks unless
we can prepare large volume of currency shipment today and make

on both currency and rediscount transactions
Worthington
1023am
/ W A & k s

A 4 4 c \J L
j

c & y

2 f / 2 - / 3 3

DECLASSIFIED

Reproduced from the Unclassified / Declassified Holdings of the National Archives

Authority

0 . f0

Copies to: Seety. Woodin
Dr. Miller
Mr, James
Mr. Hamlin
to. Morrill F E D E R A L R E S E R V E S Y S T E M
4:38 P.M. Mar eh 12. (
)

TELEGRAM
le ase d

w ir e

s e r v ic e

RECEIVED AT WASHINGTON, D. <

25Bs
New York 329PM Mar 12
Board
Washington
At the request of our directors, I am sending you the following
minute adopted by the Board of Directors at its meeting March 11,
1933:
**In considering the banks which may be qualified to open
under the regulations of the Secretary of the Treasury, the
Directors of tfcis bank are impressed with the large amount of
bank credit which will remain unavailable immediately and the
large groups of the population of this district which will be
inadequately provided with banking facilities.

In view of this

situation the Directors desire to record their recognition of
the need for prompt and vigorous efforts in the.

reorganization

DECLASSIFIED

Reproduced from the Unclassified / Declassified Holdings of the National Archives

Authority f , (
'0 Q

TELEGRAM
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)

RECEIVED AT WASHINGTON, D. C.

of banks so that adequate banking facilities may be restored
to the people of this district without undue delay.”
Case
339PM

Ha •o n c Trummttmi: iw
T mw
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* 10
—191

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DECLASSIFIED

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Authority & Q

fO^C) I

no. 24

TREASURY DEPARTMENT

FOR IMMEDIATE RELEASE
MARCH 12, 1933.

Under the authority conferred upon him hy the President’s Proclamations
of March 6 and of March 9, 1933, declaring and continuing a bank holiday,
the Secretary of the Treasury has issued the following regulations:
IA11 hanking institutions may cash official drafts
!
drawn upon the Secretary of State for payment of salaries,
traveling and other contingent expenses " u not for per
bt
sonal account, and remit the amonnts thereof to the "banks
from which the drafts are received, provided that no gold
or gold certificates shall he paid out."

W. H. WOODIN
Secretary of the Treasury.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority 1% 0

(O^O

No. 23
TREASURY DEPARTMENT

F0& IMMEDIATE RELEASE
MARCH 12, 1933.

Under the authority conferred upon me by the President’s Proclamations
of March 6th and March 9th and Executive Order of the President of the
United States, dated March 10, 1933, I hereby issue the following regula
tion governing all Banking Institutions whether or not licensed to carry
on usual and normal functions by the Secretary of the Treasury or appropriate
State authority:
"No banking institution shall permit any withdrawal by any
person when such institution, acting in good faith, shall deem
that the withdrawal is intended for hoarding.

Any banking

W, H. WOODIN,
Secretary of the Treasury.

DECLASSIFIED

Reproduced from the Unclassified / Declassified Holdings of the National Archives

Authority

Copy sent to Board members

0 IQ 3 (0

^ P Q n A M

FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)

29dea
n-t

Cleveland

ooo

, ,

229pm inch 11

RECEIVED AT W ASHINGTON, D. C,

Meyer,
Washn.
I have wired today the following message to the Secretary of the
Treasury:

Quote

After careful consideration of the presidentrs

executive order of !'arch ninth, 1933, and regulations and published
statements of the Secretary of the Treasury made with respect and
pursuant thereto,

it is the unanimous opinion of the Board of Directors

of this bank now in session, all members being present, that under
conditions existing in the fourth Federal Reserve District it will be
impracticable to provide for the opening of any member banks on a
free and unrestricted basis except as
of the

now regulated by the Secretary

Treasury without creating serious jeopardy to their continuance

on such basis and with the probable result that such banks, pursuant
to subsequent orders of the Secretary of the Treasury, will be
required to restrict the basis of their operations.

■a T nM M
. o w a T btm tmt* m

I—TOM

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

Authority &

0 f0 ^0 I

TELEGRAM
FEDERAL RESERVE SYSTEM
29dea End sheet

(LEASED WIRE SERVICE)

RECEIVED A T W ASHINGTON, D. C.

It is further Believed by this board that an immediate identification
of certain banks as sound, by granting to them of licenses as indicated
in the

communications from the Secretary of the Treasury will do
7
incalculable damage to order other banks which on further examination
would justify support by the resources of the Government.
It is therefore respectfully suggested that the Secretary of the
Treasury reconsider the program he has announced modifying it at
least to the extent to provide a restricted basis of operation of all
banks deemed worthy of the license from him in order that a more
careful and thorough analysis of conditions existing in the various
communities of the country be made before it is- attempted to expose
any banks in the country to the hazards involved to them,

in free

and unrestricted operation to the extent now contemplated with
license from the Secretary of the Treasury and to expose other banks
b s soTnH rmm tmn im
..
nrr a m
>

8 18
—1 9 1

Trom tn e U n c la s s ifie d / D e c la s s ifie d H o ld in g s o f th e N a tio n a l A rc h iv e s

D E C L A S S IF IE D

Authority f . (QbQ /
-O

TELEGRAM
29dea srd sheet

FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)

RECEIVED A T WASHINGTON, D. C.

to the breaking down of public confidence in their soundness through
failure to obtain

such license from the Secretary of the Treasury.

This Board sees fit to make this suggestion to you in full appreciation
that under conditions now existing there are without question many
banking institutions the present condition of which precludes their
reopening with governmental support through the Federal Reserve
System or otherwise.

It would seem to this Board that a change in

the announced program of the Secretary of the Treasury is justified by
facts which we believe are being brought to his attention from
various parts of the country, which we think are fairly typified by
conditions obtaining in the Fourth Federal Reserve District, unquote.
In view of your great experience in operation of the Federal Reserve
"System and intimate knowledge of banking conditions obtaining through
out the country we believe you will appreciate the pertinence
•.LKmanmmwimnMi

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

j Authority £

0 (0 5 0
.

TELEGRAM
FEDERAL RESERVE SYSTEM
29dea

4th sheet

(
leased wire service)
RECEIVED A T W ASHINGTON, D. C.

of the views which we have expressed.
Decamp

335 pm

9SM M I f
.. T W f

8 10
—101

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority & Q

(O^C) I

Ho, 22.
TREASURY DEPARTMENT

FOR IMMEDIATE RELEASE
MARCH 11, 1933*.

Under the authority conferred upon him by the Presidents
Proclamations of March 6, 1933, and of March 9, 1933, declaring and
continuing a "bank holiday, the Secretary of the Treasury has issued
the following regulation:■
"All Federal land "banks, Federal intermediate credit banks,
joint stock land "banks, Federal home loan banks, regional agri-»
cultural credit corporations and the Reconstruction Finance
Corporation are hereby permitted to open at 9 o1clock, a,mf,
Monday, March 13, 1933, to perform their usual banking functions
except to the extent prohibited by the executive order of the
President of the United States, issued March 10, 1933, by
Federal or State law, or as may hereafter be limited or prohibited
by regulations promulgated by the Secretary of the Treasury,
HThis permission, as to each of the foregoing banking insti
tutions, may be revoked in whole or in part by the Secretary of
tile Treasury at any time, and is granted as to each such institu
tion upon the express condition that such institution shall
deliver, within thirty days from the date hereof* to the Treasurer
of the United States or to a Federal Reserve Bank or a Federal
Reserve branch bank of the district in which it is located, all
gold coin, gold bullion and gold certificates owned by it, and
receive payment in credit or in other form of coin or in
currency*,
f

Reproduced from the Unclassified/Declassified Holdings of the National Archives

DECLASSIFIED

; Authority -K 0

iD^O I

\
I

141 o .
Ho. 21,

TREASURY DEPARTMENT

FOR IMMEDIATE RELEASE
MARCH 11, 1933.

Under the authority conferred upon him " y the Presidents
b
Proclamations of March 6, 1933, *.nd of March 9, 1933, declaring
and continuing a bank holiday, the Secretary of the Treas-ury
has issued the following regulation:

•'Banking institutions which are not members of
the Federal Reserve System or organized under the
laws of the United States and which are not under
the immediate supervision of any State authority may,
on and after March 13, 1933, carry on their normal
and usual functions, except as otherwise prohibited
and except that no such institution shall pay out
any gold coin, gold bullion or gold certificates,
unless authorized by the Secretary of the Treasury,
nor allow withdrawal of any currency for hoarding,
nor engage in any transaction in foreign exchange
except such as may be ■undertaken for legitimate and
normal business requirements, for reasonable traveling
and other personal requirements, and for fulfillment
of contracts entered into prior to March 6, 1933,H

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED

■Authority

0. (0 ^ 0

No..19.
TREASURY DEPARTMENT

FOR IMMEDIATE RELEASE
MARCH.11, 1933.

Under the authority conferred upon him by the Presidents
Proclamations of March 6, 1933, and of March 9, 1933, declaring
and continuing a bank holiday, the Secretary of the Treasury
has issued the following regulation:
^Except as otherwise prohibited by law, banking
institutions may exercise their normal and usual
functions in permitting substitution for or release
of collateral held by them, provided other collateral
or cash of equal or greater value is received in exchange
therefor.n

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

! Authority h O

(0 ^ 0 I

No. 18
TREASURY DEPAETMB2JT

FOR IMMEDIATE RSLMS
MARCH 11, 1933.,

Under the authority conferred upon him by the Presidents
Proclamations of March 6, 1933, and of March 9, 1933, declaring
and continuing a hank holiday, the Secretary of the Treasury
hag issued the following regulations
MA11 banking institutions are hereby authorized to
subscribe and pay for any United States Government
obligations which m y be offered for subscription and
sale by the Secretary of the Treasury.

Federal Re

serve Banks may carry‘ such functions as m y be
on
necessary to facilitate such transactions as are
authorized by this regulation.
WA11 Federal Reserve Banks are authorized to
redeem matured obligations of the United States and'
to cash matured coupons provided no gold or gold
certificates shall be paid out•1
1

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority 1 0
%

1 0 I
0^

uno.
PR 2

m **k u , xess*

dear Mr# Seeretaryi
1 am informed that the Directors of the 12 He^ional Federal
Reserve Banka are concerned w a r the question of the immediate valuation to be given to the aaaata of mentoer banks, National and State*
1 recognize that a drastic or atriet estimate of valuee on
a liquidating basis would prevent many banka from opening which could and
ehould be 100 per cent opened if their assets were reaa&oably valued on a
fair going basis.

I
am convinced that the Directors of the Regional Federal Re
serve Banks should take a fair and equitable basis for loan valuations
rather than a forced liquidation basis.
It is my desire that Federal Reserve Banks will proceed on
the same fair and equitable basis in respect to loans to member banks, the
purpose of which is to procure currency for State banks which ere not mem
bers of the Federal Reserve System. Cooperation on the part of member banks
in this regard is essential.
Ho citizen expects the Directors to be infallible. All we can
ask is that they use honest, and, under the circumstances, fairly liberal
Judgment. It is inevitable that some mistakes will be made* It is in
evitable that sons losses may be made by the Federal Heserve Banks in loans
to their member banks*
The oeuflfcry ap recistes, however, that the IB Regional Federal
Heserve Banks ore operating entirely under Federal law and the recent Emer*
gency Bank Act greatly enlarges their powers to adapt their facilities to
a National emergency. Therefore there is a very definite obligation on the
Federal Government to reimburse the 12 Kegional Federal Reserve Banks for
losses which they may make on loans m&de under these emergency powers.

I
do not hesitate to assure you that I shall ask the Congres
t© indemnify any of the 1£ Federal Heserve Banks for such losses. I am
ee&fiAent that the Congress will reoognUe its obligations to these Federal

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED
Authority -P 0

iQ^Q

®S3MAR || pm 2

* z -

Yours very sincerely,

r a f k 11 n
t
'

I d « f* c < ( f *
• *

Honorable William H. Woodin,
The Secretary of the Treasury,

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority 1 0
%

(O^O I

mo
FOR THE PRESS

IMMEDIATE RELEA.SE
March 11, 1933.

A STATEMENT BY PRESIDENT ROOSEVELT

”1 am glad, to " e able to announce that technical difficulties which
b
operated to delay the opening of banks, both State and National, hare finally
substantially been overcome by tireless work on the part of the officials of
the Treasury and the Federal Reserve System, and that a definite program has
been arranged consisting of successive steps by which banks throughout the
country will be opened progressively on Mondayt Tuesday and Wednesday mornings.
’The Secretary of the Treasury will issue licenses to banks which are
’
members of the Federal Reserve System, whether national Bank or State, located
in each of the twelve Federal Reserve Bank cities, to open Monday morning.
1
1
So also the State authorities having supervision
are not members of the Federal Reserve System will be asked
State institutions located in any one of the twelve Federal
to open for business on Monday morning if in their judgment
to do so*

over State banks which
to permit any such
Reserve Bank cities
they deem it wise

“Under this progressive plan, banks located in any city having an active,
recognized clearing house association, of which there are 250 cities, will
receive licenses for reopening on Tuesday morning, and banks located elsewhere
will receive their licenses permitting reopening for Wednesday..
’Time is thus afforded for the necessary shipments of currency provided
’
under the Snergency Bank Act from Reserve Banks centers to clearing house
cities and banks in the smaller communities..
’There were enormous technical problems to be solved before these mechanic
’
could be worked out and before the actual currency could be in the bank when
the doors opened.
’The Constitution has laid upon me the duty of conveying the condition of
’
the country to the Congress assembled at Washington*.
I believe I have a like
duty to convey to the people themselves a clear picture of the situation at
Washington itself whenever there is danger of any confusion as to what the
Government is undertaking.
’That there may be a clear understanding as to just what has taken place
’
during the last two days since the passage of this Act it is my intention,
over the national radio networks, at ten o’clock Sunday evening, to explain
clearly and in simple language to all of you just what has been achieved and
the sound reasons which underlie this declaration to you.
1
1
The fact that banks will be opened under this plan does not mean that
anyone should draw the inference that the banks opening Monday are in any
different condition as to soundness from the banks licensed to open on Tuesday
or Wednesday or any subsequent day.”

DECLASSIFIED

Reproduced from the Unclassified / Declassified Holdings of the National Archives

A u t h o r i t y 'h .

f Q S 'Q

(

TELEGRAM
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)

RECEIVED AT W ASHINGTON, D. C.

1 25bf a
NewYork 1051pn Mar 10
Board
Washington
In order that we may be in a position on monday, March 13 to transact
normal banking business far the foreign accounts on our books we
request authority from the Secretary of the Treasury to perform
all usual and normal banking functions for such accounts except

as prohibited by the executive order dated March 10, 1933 and
regulations of the Secretary of the Treasury issued thereunder,
if possible w e ^ h o u l d like to have an answer tomorrow or

sunday

so that weydJay notify our foreign correspondents before they open
>ss on monday.

DECLASSIFIED

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Authority

[Q^O I

TELEGRAM
L
i

FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)

RECEIVED A T WASHINGTON, D. C.

Dallas Mar 10 11am
Morrill
Washn
Respectfully suggest that the attention of the proper authorities
be again called to my wire of the 8th in which I strongly urged
promulgation of regulation authorizing banks to accept for deposit
during continuance of the holiday checks drawn on themselves, these
deposits to be immediately placed under the same restrictions as
deposits existing in the banks at the beginning of the holiday.
I am reiterating this recommendation.

It would have a very

wholesome effect on the public in addition to this, it would enable
the Merchants of the country to clear out the vast volume of
checks now held by them and permit the banks to post them into
the several accounts prior to reopening.

The merchants have

shown a fine spirit in cashing these checks and they are entitled
IVIRKMENT PRINTING OSTIC*: IMP

2—11901

DECLASSIFIED

Reproduced from the Unclassified / Declassified Holdings of the National Archives

Authority

TELEGRAM
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)

RECEIVED A T W ASHINGTON, D. C.

to have them paid before the drawers have an opportunity to check
out their balances.

Some reluctance is now being manifested to

continue the acceptance of checks.
that increasing hesitancy.

The regulation would overcome

Any fear that preference would be

created by transfer of balance for offset purposes could be overcome
by limiting the depositing of checks to those received by merchants
in ordinary course of business.
McKinney
122 Op

GOVERNM1 PRINTING OFFICE: IMP
JNT

2—1 9 1
10

DECLASSIFIED

Reproduced from the Unclassified / Declassified Holdings of the National Archives

Authority f.
Q

1
0

F o rm 1*8 b

T E L E G R A M

/.
H

DERAL RESERVE BOARD
W ASHINGTON

W m * *©• X93S

Mimeiag y w

M m *Ii t

10 at t w n m

portld app** to p m i t wiwftir M t e «j&pjit«g mtwrnqr to
ncawartxr lN«fe %• mal&ft «h«& M k %* M i y «* IfaftHl
Member bank should keep in mind,
however, what has been said in proclamations and regulations
re hoarding.

Morrill

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

IAuthority^ 0 f 0 S~Q /

form 1 8b
4

/
,
h

FEDERAL RESERVE BOARD
W ASHINGTON

Mareh 10, 1933

Hale - San ftrmolae*

Toixr talegraa Karoh 7*f l SegalAtioa 10 as am
ended would appear to pm itt
■eotber banka ahlpping currency to ntmmsbm? banka to enable aooh banks to
carry on United traaaaetioaa authorised* ftewber banka ahould kaep in
Bind* boeever* what baa been aald la proelaaiatioo* and regnlatlona ra
boarding#

EMM/faf

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

I Authority 1 0 (0501
% .

STANDARD FORM MO.

T reasury

14a

d epartm ent

A p p r o v e d b y t h e P r e s id e n t

W A S H IN G T O N

March 1 , 9 6
012

Charge Treasury

D e p a r t m e n t , A p p r o p r ia t io n

for

OFFICIAL BUSINESS— GOVERNMENT RATES
The appropriation from whicli payable must be stated on above line.
flOV£RN?lKNt PRINTING 0FTIC3

ChiIds,
■•'edere! f
:eBenre .a f ,
nc
Chicf*go, Illinois.

2— 14117

rctrehX), 1 ^ .

1etel ninth. Trust funds in fiduciary canacity collected r>rior to
holiday m y not be paid. Trust funds receive 1 rince holiday and not
cnart in new denonits raay be paid without restriction under rorulrtim
seven,
’
eat due rovewjent obligations Mid coupons
not bo neia.
t'ubject to limitations regul tione six end ten end internet- tion one
banks m y rmy bill of lading drafts covering food, feed 'nroducta fmd
live stock. This ^p’
ilies to live ntock reedy for sale not covered by
bill of lading. Benks
nslentm -ienosite for purehm?e
live
stock under these conditions. Bond or stock houres acting as iscfcl
events for corporations raying prlncinel end interest on bonds «re not
ithin ?resident*s proclaimtion•

m
y

Chester orrili,
e« etary to the Hoard.

DECLASSIFIED

Reproduced from the Unclassified / Declassified Holdings of the National Archives

Authority & Q f Q ^ Q

F o rm |48b

r C L. ETG R A M

FEDERAL RESERVE BOARD
W ASHINGTON

Young - Barton*

v^KOT 2 © Bxooutlw Order doctoring bank holiday does
!h
not apply to your bmetioo phyaioally located in foreign
countries oxo&pt th&t no transfers ot ©rodit from the
Onited State© to your fomt&i branohe>a shall be pemltted
during suati holiday unXeeo otherwise ordered U Q O £
K jO S *

vS.'S^Sd} &. pX !*'* v-r V
t .■« ''

HoOlellEmd.

5-39

First National Bank, Boston, Massachusetts*

SBC/rkt

DECLASSIFIED

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Authority £

0 (
Q

fE U E G R A M

FEDERAL RESERVE BOARD
WASHINGTON

Harrison • H ToUc*
ew
Saaretasy- of Tvmmry baa a a c following telegram to l-10o# 1-74# 1~£2$,
ef

not

q p p ly

countries

your

eacoept

O rd e r d e o la s ln g bank h o lid a y d o e s

b ran ch es

ttmt

physically

lo c a te d

fo r e ig n

trH&<»re?& at or&dit f » a the

United States to your foreign b»iaid*ee abaXl fee .j^jaaittod
d u r in g a ia h

holiday unless

o th e r w is e o r d e r e d *

tflk # K )T E

HoOlalland,

1-103
1-74
1-2S9
1-23
1-8
4-863

Bankers Trust Company, New York, New York,
Chase Nat local Bank, New York, New York.
Empire Trust Company, New York, New York*
Guaranty Trust Company, New York, New York.
National City Bank of New York, New York, New York.
International Banking Corporation, New York, New York.

DECLASSIFIED

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Authority 1 0
%

fQ ^ 0

F o rm 148 b

r EL. E G i l A M

FEDERAL RESERVE BOARD
W ASH INGTON

Murdk W 0 19&3*

Qtitoia* - S m ftmaimot**

Ssoretaiy of Tpsamry *m* M t following telegnaa to 1V177:
TO®

the &G«Mns&t*» Ortisr declaring bank holiday does

no* apply to your bremahes physically located In foreign
couxrtrifis sateapt that so

of credit frwa the

States to your fo r e ip branches shall be permitted
during suck holiday unless otherwise ordered Ttf(|0O
TE.

CSifmed) 1 M7 MCCLELLAND
ST
Utxi

SRC/rkt

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

iA u t h o r it y

(Q5Q I

COPY
TELEGRAM
Tel
Secretary of the Treasury
i
Bank of America National Trust & Savings Assn.,

// — /

San Francisco, California.
''The Executive Order declaring bank holiday does not apply to your
branches physically located in foreign countries except that no transfers of
credit from the United States to your foreign branches shall be permitted during
such holiday unless otherwise ordered.

WILLIAM H. WOODIN
Secretary of the Treasury
Please send copy as above to the following banks:
Bankers Trust Company,
New York, N. Y.

/ ^ /A
,

Chase National Bank,
New York, N. Y.

Empire Trust Company,
New York, N. Y.

, *v ^ *9 "
f

First National Bank, (
Boston, Mass. ^

Guaranty Trust Company,
New York, N. Y.

,
/ ” >

£
\ *
6

National City Bank of New York,
New York, N. Y

Q ^

The Chase Bank,
New York, N. Y.
International Banking Corporation,
New York, N. Y.

DECLASSIFIED

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Authority

0 f 0 ^Q
;

(

COPY
TELEGRAM
Tel
Secretary of the Treasury
Bank of America National Trust & Savings Assn.,
San Francisco, California.
The Executive Order declaring bank holiday does not apply to your
branches physically located in foreign countries except that no transfers of
credit from the United States to your foreign branches shall be permitted during
such holiday unless otherwise ordered.

WILLIAM H. WOODIN
Secretary of the Treasury
Please send copy as above to the following banks:
Bankers Trust Company,
New York, N. Y.
Chase National Bank,
New York, N. Y.
Empire Trust Company,
New Yoik, N. Y.
First National Bank,
Boston, Mass.
Guaranty Trust Company,
New York, N. Y.
National City Bank of New York,
New York, N. Y
The Chase Bank,
New York, N. Y.
International Banking Corporation,
New York, N. Y.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

0 f -^Q I
. Q

No. 17
TREASURY DEPARTMEITT

FOR IMMEDIATE RELEA.
March 10, 1933.

Under the authority conferred upon him by the President’s
Proclamations of Marcn 6 and of March 9, 1933, declaring and
continuing a hank holiday, the Secretary of the Treasury has
issued the following regulation:
1Any banking institution may, when the owners
1
consent thereto, pay checks insued prior to March
6, 1933 and received in due course of business by
the drawee banking institution, by charging the amounts
thereof to the accounts of the drawers and crediting
such amounts to the accounts of such owners on the
books of the drawee banking institution,"

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority

(Q%0 I

llo. 16.

treasury department

fob immediate release

MARCH 10, 1933.

Under the authority conferred upon him hy the President*s
Proclamation of March 6, 1933, as extended, declaring a "bank holiday,
the Secretary of the Treasury has issued the following regulation:

,A11 "banking institutions are hereby
!
authorized to take such steps and carry through
such transactions as may he necessary to complete
•for their own account, or the account of their
customers, payment on any subscriptions for
Treasury hills of the United States for which
payment was due on March 6, 1933,"

W. H. W00 J3 N
I
Secretary of the Treasury.

rteproaucea rrom the Unclassified / Declassified Holdings of the National Archives

D E C L A S S IF IE D
; A u th o r ity &

FOR THE PRESS

STATEMENT BY

(0SQ

FOR IMMEDIATE RELEA.SE
March 10, 1933.

SSCR3TAR? OF THE TREASURY WOODIN

Under the terms of the Act of March 9, 1933, immediate action has
been taken " y the President and the Secretary of the Treasury which will
b
make possible-the res'umption of banking operations in substantial volume at
a very early date. Pending such res'umption the vital needs of communities
must be met.
Attention of all banking institutions is called to Regulation
10 which is still in force and which as amended provides for cooperation
between banks in different communities and reads as follows::
"Any national or State banking institution may
exercise its usual banking functions to such extent as
its situation shall permit and as shall be absolutely
necessary to meet the needs of its community for food,
medicine, other necessities of life, for the relief
of distress, for the payment of usual salaries and
wages, for necessary current expenditures for the
purpose of maintaining employment, and for other simi
lar essential purposes. Banking institutions may carry
out such transactions as may be necessary to aid bank
ing institutions in other communities to meet the
necessities set forth above. Provided, however, That
(l) every precaution shall be taken to prevent hoarding
or the unnecessary withdrawal of currency; (2) No State
banking institution shall engage in any transaction
under this regulation which is in violation of State or
Federal law or of any regulation issued thereunder; (3)
No National banking association shall engage in any
transaction under this section which is in violation of
any Federal law or of any order or regulation issued by
the Comptroller of the Currency; and (4) No gold or gold
certificates shall be paid out. Each banking institution
and its directors and officers will be held strictly
accountable for faithful compliance with the spirit and
purpose as well as the letter of this regulation.
’
•Federal reserve banks may carry on such functions
as may be necessary to facilitate transactions authorized
by this regulation.
”In order to enable member banks of the Federal
reserve system to meet the needs of their respective
communities to the extent authorized by this regulation
Federal reserve banks may make advances to such member
banks under the conditions set forth in Section 10 (b)
of the Federal Reserve Act as amended by the act of
March 9, 1933, and in accordance with authority granted
by the Federal Reserve Board.
"In addition, in order to enable individuals, partner
ships and corporations to meet their immediate payroll
requirements, Federal reserve banks may make temporary
advances to such individuals, partnerships and corpora
tions on their promissory notes secured by direct obliga
tions of the United States in accordance with authority
granted by the Federal Reserve Board.M

DECLASSIFIED

Reproduced from the Unclassified I Declassified Holdings of the National Archives

1 ^O I
0

Authority

M AR

i 4s
0

itareh 10, 1 3
93

• Wmvkm
»
!!***.*” *

« £St«i»oaA
•
- *»««**

* SOkSFWl*ttE

... .
TRMHI IB* '

H t M I i ** S i• L t j *
iiKz • t
dtl

Q m m t ~ Ml,mw#^a.lis
m u m
- k a h m m cur
0*2JkS*8i * fp i FY&tsiB'lWMi
fy

Fl«ft0« *ij* toMMffov t o & a j net g l l rmmip%m yew
ari*
ox

M<qriy

DECLASSIFIED

Reproduced from the Unclassified I Declassified Holdings of the National Archives

fQ C 0 (
S

Authority

March. 10, 1933

f m m g - Bottom
iarciaan * »** To*3
c
KorrlB - miadalptola
ffcaefear - Clafaiaad

Saaxy - tfla&capalla
BMdXton - Xaaaaa City
McXlnn«gr - Ballaa
OalMaa - San Francisco

iioay - Blafcaoad
Blade - Atlanta
tteDoo^al - CMeago
Martin - St. LsaHa

bp y fh® following oaaeutlYo ordar *leaad br Praaldoat of tba ttaltad
Statas tMa aftarsooa*

of tko mlhoiltar vaatad la no V

4U)

Saetloa

aaaadad by tba A«t af

March 9, 1*33 and by Saetioa 4 of tha iald Aet of »»*«& t* liSS, and
of a ll otluHr aatborlty

▼!*%«*

la a»« I barofey i« w * tb* followinc aaaaatlva ordar*

oapaaarad mndar aeafe

aorabar baalc of tba Jadaral Swtivt

%*t«i and aitf otliar basMag laatltatloa or*Raisad aaAar tha law* of tba TJtettad
Stmtaa, to parfar* nay or all of tiwir tsaoal basking ftoaatlosa* axcopt aa otbaar—
vita proMbitad.

•© * approprlata authority baring ianadlata f l p f f f W * a f banking inatltutloaa
ia *aah Stata or »*y plaoa aabjaat to tHa Jurlodiotloa of th# tfcitad State* la
•mtborliad aift a*>«*arad aadar *ncfe ragulatloaa aa a«*fc authority *ay praaortba
to p«svit any be a M m iaatltutlaa la aadb Stata or plaaa, othar thaa banklng
laatltatloni oorarad ly tba foragolng paragraph* to parfonn any or a ll of thal*
asaalbasfeta* faaaUaaa# « w ? t aa othaffviaa prohibitad.
•All baafca vldLaH ara »a»bara of tho fadaral Sasarva Syataa, deeirlm

raapa* for the parfaawae of all aaaal aad aornal baif lag fonetlcma, axoapt
c

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED

! Authority +,0

f Q

as otfcsnrtsa prohibited, shall apply for a Ucoas* tJararafor to tbs Soeroiary of tha
TrsaS& Ey*
O
t a in .

Suck application siM*U b« filod im edlataly tferou«fc th* yodor&l hbsstv*

$3* M w & i X m «v « Bade shall tfcaa t m n t l such applications to

Soerot&ry of tfeft fraaaary.

Uoensoa will ba 1i«m& bjr tfea Podarfcl Saaarra Bank npon

*mrow*X of tfca Soorotary of tba fro&swy.

fiw FodanO. iioasrro Banks ar# haroby

daslgn&tod as agoata of tbs Saeratary of t i» frw w rjr for tho m tlv la g of application
aad tba lftsuaaeo of licensee in Ms fesfealf aad npon Ills instructions.
•Cntil further order, so indiridaal, partnership, association, or corporation,
including aay banking Institution, timll export or otherwise raaora or yirmt t to
%a vitfedraaa ! m the United States or any place subject to the Jurisdiction thereof
W

tf** «ala# gold \mXUm* or gold certificates. except la accorftanaa idtfe ragni*-

ti«w P***9xDmA by

andar license Isstxad by tbs Saeratary of the Treasury.

**e paradesIon to aay banking Institution to psrfom say banking functions

authorise

institution to pay out any gold coin, gold bullion or gold certificates

•aonpt aa authorised by the Secretary ** th« Treasury, war to allow idtUvam l of Mgr
carraaqr for hoarding, nor to engag* la any transaction la forei®& axs&aage except
sach a* say be nndertakan f « legitiaate aad normal bosiness raged roasats, for
reaaoaabla traveling aad other personal requirements, aaft for the fulfillment of
contracts entered lata prior to Ifereh ft, m
«®*a*gr Federal Baaanre Bank Is aatffaarlaad aad instructed to ls»ep Itso lf currently
infonaed as to transactions la foreign eaehaaget entered Into or ooasmmtod t lt t t i Its

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

I Authority^.

iiatrlet M t « i
l «n rapert to tto B > w f
mx tetme* i&ich

0 fQZQi

at tlM i M M n x y all tr&aaaetloas la

prohibit**.

m m s jx s . a o o sB ra*.

ras r a m

hots* .

Hunk 10, 1*33.*

Morrill

DECLASSIFIED

Reproduced from the Unclassified / Declassified Holdings of the National Archives

Authority £ Q

f 0 ^0

EXECUTIVE ORDER

MAR 10 1 3
93
By virtue of the authority vested in me by Section 5(b) of the Act
of October 6, 1917 (40 Stat. L., 411) as amended by the Act of March 9, 1933
and by Section 4 of the said Act of March 9, 1933, and by virtue of all other
authority vested in me, I hereby issue the following executive order.
The Secretary of the Treasury is authorized and empowered under such
regulations as he may prescribe to permit any member bank of the Federal Re
serve System and any other banking institution organized under the laws of
the United States, to perform any or all of their usual banking functions,
except as otherwise prohibited.
The appropriate authority having immediate supervision of banking in
stitutions in each State or any place subject to the jurisdiction of the
United States is authorized and empowered under such regulations as such
authority may prescribe to permit any banking institution in such State or
place, other than banking institutions covered by the foregoing paragraph,
to perform any or all of their usual banking functions, except as otherwise
prohibited.
All banks which are members of the Federal Reserve System, desiring
to reopen for the performance of all usual and normal banking functions, ex
cept as otherwise prohibited, shall apply for a license therefor to the Secre
tary of the Treasury.
Federal Reserve Banks.

Such application shall be filed immediately through, the
The Federal Reserve Bank shall then transmit such

applications to the Secretary of the Treasury.

Licenses will be issued by

the Federal Reserve Bank upon approval of the Secretary of the Treasury.
The Federal Reserve Banks are hereby designated as agents of the Secretary

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

j Authority

(Q5Q I

of the Treasury for the receiving of application and the issuance of licenses
in his 'behalf and upon his instructions.
Until further order, no individual, partnership, association, or corpora—
tion, including any "banking institution, shall export or otherwise remove or
permit to " e withdrawn from the United States or any place subject to the
b
jurisdiction thereof any gold coin, gold bullion, or gold certificates, except
in accordance with regulations prescribed by or under license issued by the
Secretary of the Treasury.
Ho permission to any banking institution to perform any banking func
tions shall authorize such institution to pay out any gold coin, gold bullion
or gold certificates except as authorized by the Secretary of the Treasury,
nor to allow withdrawal of any currency for hoarding, nor to engage in any
transaction in foreign exchange except such as may be undertaken for legitimate
and normal business requirements, for reasonable traveling and other personal
requirements, and for the fulfillment of contracts entered into prior to
March 6, 1933.
Every Federal Reserve Bank is authorized and instructed to keep itself
currently informed as to transactions in foreign exchange entered into or
consummated within its district and shall report to the Secretary of the
Treasury all transactions in foreign exchange which are prohibited,

FRAMLIN D. ROOSEVELT.

THE WHITE HOUSE,
March 10, 1933.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED
Authority &

f
Q

(

The purpose of this program is to give to the country as promptly

as possible adequate banking facilities and an adequate and sound currency
and to restore confidence*
It is, therefore, proposed:
(1)

That under the Presidential Decree of March 6th -wholly solvent

banks of the countiy shall be opened for business Friday morning.

There

are many banks, manbers of the Federal Reserve System, well distributed
throughout the country, that the Secretary of the Treasury would be able
to pass immediately as sound banks*

These banks could be authorized to

open for business on Friday morning.
(2)

Other banks not members of the Federal Reserve System and other

manbers of the System not specifically named in paragraph (l) could, no
doubt, promptly satisfy the Secretary of the Treasury on further investiga
tion that they are solvent banks*

Such banks could thereupon be prermitted

to open for business.
(3)

Steps should be taken at once to reorganize all banks not now

wholly solvent so that they might open at the earliest possible date as
new banks of unquestioned solvency.

In order to expedite this program

of reorganization it might be practicable to consider dealing first with
these institutions in cities of populations of 100,000 and over (of which
there are 93), leaving institutions outside of these cities to run along
under such local plans as have been devised and under the protection that
is afforded by the general emergency control.
(4)

To supplement this plan and to insure an adequate supply of

currency, the Federal Reserve banks should be authorized to make loans
direct to corporations, firms, or individuals on their notes secured

Reproduced from the Unclassified / Declassified Holdings of the National Archives

DECLASSIFIED

; Authority £ 0

l050 I

-2-

by Government securities and to issue Federal Reserve bank notes
secured by such Government securities, or by notes collateraled by
such securities.

This m i l enable any holder of Government securities

to procure Federal Reserve bank note currency direct from Federal
Reserve banks.

There are approximately eleven billions of dollars of

such securities outstanding in the hands of the public other than bank
ing institutions.
(5)

In order to enable any solvent bank to open for business under

this program to procure currency s\ifficient to liquidate all of its
deposits, if demanded, Federal Reserve banks should be authorized to
lend to any bank regardless of its size on its sound assets.

any bank authorized to open is to be sound this "would permit all
loans in amounts sufficient to pay off all of the deposits of such
a bank, if demanded.
(6)

In order to provide adequate Federal Reserve bank ciirrency

to satisfy the possible demands of this program Federal Reserve banks
should be authorized to issue Federal Reserve bank notes, not only
against Government securities or notes secured by such securities, but
also against any member bank note secured by sound assets.

(7)

During the early stages of this program and until further

notice, the embargo on gold payments, except under license, should be
continued and appropriate steps should be taken to penalize the
continued hoarding of gold or currency.

The continuing to hold gold

or currency in excess quantities should be considered hoarding.

Reproduced from the Unclassified I Declassified Holdings of the National Archives

DECLASSIFIED

i Authority
'

-3For Secretary Woodin

(8)

Because of the qnergency character of this program,

the United States should be expected ultimately to insure the
Federal Reserve banks against any loss which might result on
account of Federal Reserve bank rotes issued under this program
against assets other than Government securities.

This is only to

assure the unquestioned integrity of the position of the Federal
Reserve banks.

/
/
G* L. Harrison
r

DECLASSIFIED

from the Unclassified I Declassified Holdings of the National Archives

Authority 1
%

0 [Q^Q I

1+1Q
S i m m y OF CERTAIN COERESPOUDMCE REG-AHDIlIGrORSASURY EEGUIATI033S.

Kansas City (Worthington) Wire 3-8 to Morrill.

^
'A

Should Federal reserve banks absorb abrasion on gold coin deposited?

Cleveland (Strater) Wire 3-9 to Morrill.
Permission to clear drafts held by reserve bank*
Hew York (Case) Wire 5-8 to Morrill.

A*
cP):

, l ‘ Permission for banks to accept documentary time bills covering
h
I
import, export and domestic shipment of goods and merchandise*
Permission to pay documentary sight drafts* Permission to
open customary credits for importation, exportation, etc*

f‘-)

Memphis - United Timber and Lumber Co* Wire 3-7 to Secretary of Treasury*

: i
,J
r,

Permission for Union Planters Bank to accept foreign drafts for
collection, B/l» attached thereby preventing heavy penalties
a/c shipping documents not reaching consignee before arrival
merchandise*
Mobile - Merchants national Bank*

Wire 3-7 to Await*

Advise regarding functions authorized by Secretary of the
Treasury.
Permission to forward for collection drafts covering .American
exports and domestic shipment of goods other than foodstuffs*
Hew York - Darmstadt Scott & Courtney*

, ^

Wire 3-7 to Woodin*

Permission for banks to accept drafts for merchandise shipped
to foreign countries.
Delay and presentation of drafts may cause losses*

t0/ ' 5 S

DECLASSIFIED

Reproduced from the Unclassified / Declassified Holdings of the National Archives

Authority 1 0
%

(O^O I

-2 -

Rochester, N. Y.

International Apple Associations

Wire 3-7 to Woodin
Assume that where letters of credit established by foreign
houses in T * S« for purchase of apples* regulations covering
J
food will permit such transactions.

r '1

New York Trust Co*

5-6 to Woodin

Regarding application of Guaranty Trust Co* now pending in
which it seeks permission to make transfers of French
Francs in Paris, requests approval to pledge security to
Guaranty Trust Co* for dollar obligation*
3-7 to Woodin
Referring 3-6 telegram* informed application of Guaranty
Trust Co# approved and call attention to above request*
Guaranty Trust Co* New York*

\
»

5-7 to Woodin

Confirm action in accepting or paying with Treasurer*s check,
drafts with documents attached pursuant to letters of credit
arranged before proclamation.

Hegeman - Harris Cp*, New York
X

Letter 3-6 to Woodin

Authorize transfer of #59,000 to Paris a/c construction
American Govt. Office Bldg*

New York (Crane)

Letter 3-7 to Board

Permit Goldman, Sachs & Co* to make a payment of equivalent
of |25,000 through Paris correspondents a/c Gimbel Brothers*

.Ansley Lumber Cp« - Wire to Senator Fletcher - Copy forwarded informally
* y Grosvenor Jones, Chief, F« & I* DivV of Dept* of Commerce 3/9.
>

Immediate measures should be taken to place banks in a position to handle
foreign trade as formerly*

DECLASSIFIED

Reproduced from the Unclassified I Declassified Holdings of the National Archives

Authority

Form

148 b

f0 fO^Q i
.

/ELEGRA

i ;
i

FEDERAL RESERVE BOARD
W ASHINGTON

Iferoh 10t 1933*

1 J Federal
3L
Boston
N*w Yorfc
mi*<s*xpiiia
elttWtei

Bosk*
Bio&ngcd
Atlaots

Mlnn*apol:U
K&mmm City
m x «b

3t* Laaia

San Txttmiseo

t o Erwwwry r^cuftata that you bo
te

%&&&$* J

S*a*«tfcry

adriaad es f*Uowa

A il opaaicgs of baafca uMar Bwrgnncy Banfciag

Aot postpone* until {today*

Aftvtftf a ll bmkm

Borclll.

Full text of Records of the Federal Reserve System, Record Group 82 : Banking Holiday (Mar 10 1933 - 1939), Box 2158, Folder 2

FRASER