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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* R y\, L E /7‘£ / 3 *' < ?’ C O F ^ F ” 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 ;/ p y / /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 A? w JARD OF GOVERNORS or THC C o r r e s p o n d e n c e Tn 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. /M 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 WQ ■i ' f MEMORANDUM iB iiiiffiw3TirJarggs i TO: September 21, 1939 Hr, Paulger roofs Mr* Duffield I 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 W o 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 , A !> 11 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 AM 9 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 i 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. m m ' ] 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 p - b l e q r a m y j Board of Governors ot the Federal Reserve System D Leased "W Service ire J. , / A A P *\ 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 , ' i 33 f 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 .. > HO 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. dv 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 of 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 of 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. t 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 3 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^: L : J i ..... ... ....................... k 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 F 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 ) in 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 w 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 12 4o 229 37 53 11 1,436 34o 127 10 972 124 69s 94 110 213 4i 107 121 35 326 146 123 125 42 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 35 110 — 10,158 5 — — 10 — 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 21 35 52 18 15 66 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 10 — — 6 49 1,630 276 43 1 2 370 157 22 1 9 1,315 287 37 19 10,592 2,447 9,556 23 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. 18 Reproduced from the Unclassified I Declassified Holdings of the National Archives H r 1 o 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 4 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 - 2 - 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 to of 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 he W h it e H 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 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 J 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; A, 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; B. 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 ■ 2 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 2 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 ; { 11 “ 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 P h il l ip s , “Acting Secretary o f State.’ Reproduced from the Unclassified / Declassified Holdings of the National Archives 12 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. V. \ S5 M .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 11 9 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 5 I .368 U2 21 388 21 27 156 306 111 88 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 1 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 to 6 1U 9 12 l6U 55 93 29 362 35* 39 l.oei 3 9 196 20 2 39 9*5 31.632 >10,560 12U .328 23.603 6, 2 3 *» 17.9*6 & ’S 53 3 2,te7 5 .^ 35.930 20, 01*2 116 112 7**7 m U 1/ Includes Conservators* Spociai Accounts. . /; . 3 * r - r r< j. 13 / 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 47 IS 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 90 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 46 127 337 449 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 57 26,652 1,121 5,^81 37 ._ 39 205 1,98 9 3 ,5 1 0 1 ,3 0 4 1,691 200 973 571 71 105 ^,355 1 ,8 8 0 578 131 12,317 564 629 30 24 38 651 276 1,260 — .12 31 205 6 — 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 10 — 63 512 119 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 12 50 65 77 27 21 107 41 30 40 12 30 ‘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 Reproduced from the Unclassified / Declassified Holdings of the National Archives f* *~a s 3 &CjtPh*L ^ / % _ / r ~ * / * ? Reproduced to m l w UodewMod / DectoeeWed H o ld ln yio f the N ajo oalA rohlw s 5V 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$ice,, hundreds of millions of ounces of silver* In fact, India had the power and capacity to drop silver derived from the melting up of Indian silver coins in an amount equal to the world’s production from the mines for the period of two years* This power and the uncertainty attending its execution was destructive of -the valde and stability of silver throughout the world.* * i • China agreed, during the period of four years commencing January 1934 and ending January 1, 1938, not to permit the sale of any silver derived from the debasing or melting up of silver coins* Ind?* ag**oed to limit the sales of such silver to a rwrimum of 35*000,000 ounces annually during such period end Spain Agreed not to sell in exross of 5.000,000 ounces of such silver Manually •daring such period* After such‘ sales, these governments are to be bound by . h general resolution adopted at the London Conferease te to which I have heretofore referred. ♦ t As a condition of the agreement by China, India and Spain, however* it was required that Australia, Canada, Mexico* Peru and the ttaited States should take sllve$ 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. # i 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. * m « 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. X ^ 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 o 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 11 10 12 6 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 6l 386 9 2,578 428 149 931 154 127 100 60 116 240 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 31 423 512 2,752 314 11 100 ^ .9 3 7 ^ 203 156 51 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 90 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 37 Kansas City | j 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 3 7,*+63 7 , 67* + 37 181 5 737 619 863 — 1 , 861+ 9 1U9 127 2S9 36 S7 135 2,001 5 90 1,990 993 508 1+19 13,025 493 3 ,o i + i 16,525 11,565 2,962 39 522 1 ,2 2 3 3,331 5+ *7 2 ,1 3 2 711 59 28,282 171,21+6 197,737 168,512 77 110 5,506 21 759 189 1 . 18 U kSl 12,050 9,561 m 12 15I+ ~ 31 12 S3 23 2 ,2 8 0 102 7 3 ,1 3 0 763 6l6 326 683 361 1,030 261 3 ,^ 3 — — — 51 2 6,665 525 22,015 9,012 2,970 1,1*90 321 90 33 50,131 1 2 ,2 8 8 + 21+ ,1 0 7 1 62,831 26,777 l+l 25 199 55 Us U ,2 9 0 3,760 1 ,3 4 6 337 1,951 3 23 36 2 ,6 5 0 330 221 28,667 7 ,^ 2 21,327 1+ 8 18 37 32 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 s /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 5 4 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 T 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 9 The Secretary cf 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 $10,000, or, if a natural person, may be imprisoned for not more than 10 years, or both; and any officer, director, or agent of any corporation who knowingly participates in such violation may i punished by a like iine, imprisonment, or both. ’ Section 11. The Executive Orders of April 5, 1933, Forbidding the Hoarding of Gold C^in, Gold Bullion and Gold Certificates, and April 20, 1933, relating to Foreign Exchange and the Earmarking and Export cf Gold Coin or Bullion or Currency, respectively, are hereby revoked. The revocation of such prior Executive Orders shall not affect any act done, or any right accruing or accrued, or any suit or proceeding had or comi-ioncod in any civil or criminal cau&e prior to said revocation, but all liabilities’under said Executive Orders shall continue and may be enforced in the same manner as if said revocartion had not been made. This Executive Order and any regulations or Reproduced from the Unclassified I Declassified Holdings of the National Archives licenses issued hereunder may " e modified cr reTcked at any time. b FRA.2IKLIN B. ROOSEVELT THE WHITE HOUSE, Augus t 23 v 1933. Reproduced from the Unclassified I Declassified Holdings of the National Archives i0 AUG 2 2 1933 Xm . Mr• Hamlins Thank you very much* As a matter of fact, the Board’s first definite report was at 2}22 a* m. when Mr. Mills reported that win all probability the Governors of Illinois and New York would declare bank holidays” and it was not until 2:45 a. m. that Mr. Stevens reported that a proclamation was being drafted and at 3:20 a. a. he reported that the holiday would be declared by the Governor, C M Reproduced from the Unclassified I Declassified Holdings of the National Archives (Lottoxfeort if) yiPBUI HB8KRVX B1HK OF JO* YOfflt AVgomt IB, 1H8 « U n o M l oad tear (tovmer Hudia, X hiii m w r l i g your litter of A«|aot 0 ^ n t U X ooold doflaltoly A»ik up Iuhm oad daWo* A l l X t o n not finally doao i m aoo, bat a r m o U n t l M 1$ 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 X 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 , m n e a r ly u jm 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 4 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: a 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 r 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. In 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 2 - - 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 S t .L 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 97 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. i 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 ve Ba 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. t 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 Ba xk 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 ve 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 u\ 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 r 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} /U e 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 $r* M I* Payton, « Fwu VTVm L F#dar*l IfMTTt Bank of lt2iii**poll*# Bln t pollB^ M f f tiotti t— ilt D#*r Hr, Paytont Thar* ar# lnaloMd fear#with, for your ladtamHea aad that of a « w a w Oaary* four oopiao aaoh of two phlata, Part* % and % ooatatciing d o m a m t * banking aaarganoy* pm* pr*par*d by tha Traaauyy Dapartaaat, m I rUtta anta partaiainf to' tha raoant Xaaaaaoh aa only a aaall miabar of tbaua pa^hlat# »ar* prints by tha Vrwmry D^partmnt, addlUonjOL / ooplaa not arallabla* Vary truly youra, |%ned) S R Cr#l« . . apftr &« I* O^rp^nW, AaairUnt SaoraWgr (Inaloauraa) Reproduced from the Unclassified / Declassified Holdings of the National Archives 4 July 24, 1933 ■r« l« U Fadaral ItMiti Agent) F i d M l Raaarr* Baak of Kaaaaa 01tgrs Kaaaaa OltgTf Biaaouri# Doar Hr# loOlurot Thara ara lncloaad harawith, for your lnforaatlon and that of Gorarnor Stallion* four ooploa oaoh of two pa»~ phlota* Forts 1 and 2* propared by tha Traaaury Dopartaant* oontalnlag doouaanta and atataaants partaining to tha raoaat bonktog aaarganoyt Inaaauoh aa only a aaall nuabar of thoao paaphlata vara prlatad ty tha Traaaury Dapartaaat* additional ooplaa ara aot available* ▼•17 truly yaarSf (ind S R Sge; - 8« IU Carpentarf Aaalataat floorataxy (Zaoloouraa) Reproduced from the Unclassified / Declassified Holdings of the National Archives Mr. o, g« waxafa, Fedaral Raoorra l$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 20 10 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 19 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 s4 336 94 — — — — — O =T < 1,054 796 639 23s 151 2,750 7^3 971 10,388 26 84 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 46 173 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 1 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 9 188 127 106 720 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 9$ 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 72 3S 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 62 75 27 62 i.*u S.1LI 70 FEDERAL RESERVE BOARD DIVISION OF BASK OPERATIONS ' /fat* ‘* • 1-Jt nu-*r t.n-r klli / H J U /.t¥k 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 Jaaa U p IM S ■ o u b p M *• I M f c f i n O i h i n l >m liillafWfii f * 0« t Iiftwrin m V ImtA Ulty|NM H v r m U A tllk j < m ««ni||# lU lc| i f U i lU w w C fr.w tliB h«9 b>»f« la fih.Mfi fa* Up ar th m ia /i ilvUiRi kin * W iM « lit* iffU a ban aatf «ar *• kaf *a ^ n ilM lly t* tlaaua# arltk kin Vh« h r t in *St**tlaa U tkl* 41airlil« *aai*/ i l ^ l k« mbI ta O ii m il« U ia f wltk tk* Gklnf B* m lU ir «ttt ir* §r U :» %*»:*, t* 1ml bit M tliriii' V a*a**«aiy ® *f Ik* 1( T, «■ «|r«i4 plan ta r*4^« tk* tf»id A«?14| K«ii»nii Ink titer i> aaa riHirUr. fr*a U«r«» it am d fiM l ka rfttmal % lufedflftvu a At TtXltjr1^ a»a h*r* *f V 10 k*a/«r* f**a fettl* Or**k, Bl*kL««a, a i f *r* fall*? »%i«aA*d* Za tkat fij tkara kte ltr »«r* U m U««u«4 kaim, fa* if a e a bi s1t m 4| tUf*4 «|4 tka flk *lk*r V*# tr* ia * pF r la^t *«*IUl«a f r in t. grap *a*4 * Ui fkr U t w ftattla Om l Wakura %* vafaavar U nimi auffialaat a*pltal 1* m r f a l M Ik* %a* kuft- fit an tf •** a* tk* kilt *f to ?*r **nt r*l*Ma af 4tpa«liC| M l tk * a lk « r *a ik * k i l l af TO jr r ««at r*la » *a « f fw k kikira «‘* aaa «ada*v**ia( ia fur*r-a*< «l*ag Ui* • U»**« t u ) tk * le t t l* 1» k*va a4kar ilk a tia a ia V lA lfiai *kl*k I* k r far tk* a**t g tlfflaalt la ft* taflfctav *lta*%l*a la aar 4i*\rlat, ia iklA r« wgnalMtloa af *aa* kk*r**%*r af lia*aaai koaks 1* IwliaiMy aeeaewy i-* pr*v*at th*4# *la*ia(. ^ Um atfcar k*a4t a* k»v« ^Ua i«h r H f far th* n^prtnf af a M M iim U a a a k » *f al*a*4 kaafc* la BUMfBii m ! la M af tt.ar* *>*•*, m tk* alaalac *r Ik* r<*»f altatloa af llaaaaal Wak* la X ttl* Or**k la Hiriai « Mrlaa* faailliw aa Ik* wk*li rut** 1fcara 1* atU U / a *lt* tlaa la l ay— 6*NVf KifUfui, af faar *r flta wkufkft M i , attk Jaj»a*lta i f *k*at SBS#flO^Wt *kl*h.»rm pr»«tlatll/ la Ik * Oltr af fcte ill aatf la A1A *aa*lk1n aapt ^ d m a t *ao* ta *r***ak tkatr aM a|« Tkla aa« i l m altk Ir* TaX-ay kit am ias teflalt* a*aa art af tkl* 4l»auaal*»a Tk* p*#sla a a lin lM r i tk * t aa kaawi ab«t «aa*at« ta a aaafeta f* * a tka Pr«*14*a ta ka*p ll* *e a * 4 kaak* *p*a 100 par a aat* tk * M m l S *« « m b- eJi kara 1* a ll a f ( * 1* I * tk * l l a l t a f IV * a ta ta ta r? p*»»r * la s A k la j U » i« ta tk l# * a l o i tka k*aka la l* V tl» C m t k in a a ly f in r ln l n fi» r ky m M i Reproduced from the Unclassified I Declassified Holdings of the National Archives imm ttMif M. m * it Hfrfi f wKF wH^BW Aw*iNP jHPBHNP ^pQMRB ® r 9 WWwrwX € B ( M t w J B W S f Vw• S*pPf P B v B & H # F* C« i t f P P * ! tfe# 3SW t ntlff## * %*H% It •JWSf'&t## I# Httlt lii hmm %• t JM A kyk. 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IU ft l«| tit# 1 & m i ml)»|i » rw£F***i**Uim ^i«;- w ld n vnp^lt i l th# l 4^ ^Ijr $ #f It# simI M W « i t s t # III* » *t n w I® lte« (t) la *Ml%im I# fNitM^NMi# #t Umi i4Ni^rf» Ino^mk #«6 Hi# S « F« €• «* r«fiHPfvtf to* « reestt It Hi# mm % m l*#mi A«t9 If l ^ m «« •wri^i^ft# 1 Hit,# mi mm&lm iMlUcmfcl llm iA llf m i *pmiMg tl»« my f«r «Hfttala| ff#ffi«i«n^ l««a mi p ifr^ ta« »♦ F• it I# .r##ri»«)l:«« l.s tb« in • mmiA i»«i«t ( % IHialr Ht$t Hil# ft«» m$*m «tal»t $****«§ qf in Ki«fetl#Nl Ik# F&r® t e n I#«h#f 1^ ' Min i i» *& # ##el# Imi i w f lH»l.i^U.#} %k ($) tfe# # e ^ «l)N»r Hlfif l*f% «•«•» t# I i t# *13## ««i«i fo«§^ t# ilr n t« %m p** ««»%t It M % m Itet lit# ti?«# im# «»### i^Kii' ## am»i f### t H i «mn»» iilte *«i i # lml s# *pm tfe# I# %# ^nwi#<l$ «^#|fe«F ll««a®#4 ii^f %» m ****§**&** ** * %t#l* #r «!## #1mni9 a# *fe#tfe«r m f be I# Itei wpm % tm* ##»tt 1 # In tli# F#i#r«l M I^sIms i m i 4# tlti# #»i 11 mmm% \» imm In #ith Hi# l# f* 0# #» #f tin $* h*m mtm telftiKi in *fei«fc# If s#l hm 4 l*$ w+rmrfy9 $%r* ?wmXm *£ it#rH»f mvkMr a la l&al stut#* «• iF#if # H ' lt ###1^ 8JUlt lw#^l^t#t lilt ## iiaw^t 4# ## Me # i * ' si 3 #l4 M #94 1a d t * ^'4tm #C ««y iMfHi#!l ^ t i mrimm §wmm*%*l l# R ep rod uced from the U ncla ssified I D eclassified H oldings of the N ational A rchives A n m a, m s Sift# S* Plyff r ia *»d ** f r l At tf mm ***% tfe# 'it kt«« m i n i t i ^ U ^ mtim* i w l U 1* bo £*a* t* nr«i*®t it, «* % » !**& * «a-r ui «s.i ?«#*$!*»&* «*tlaci» «f UwiM< fo«&» w hidta a#**!!, %? w*iv*r of p r t *f % • £*$*#£1# *■ & tlMHMff fed* f&r #»##■ fs^ In Hit .JN4*r*i i««& Mi© vorido* 1 &*$« T*ry G k v i r 111 , M ftfi Om % pf * Sift* IfalUr J* G f t f t * attfi ■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 of 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 - 2- 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 ^ . u». 1 ( J __ From ___ flurt *• *ttach*d h«r®tof for your confidential information, ©opr of * t*l^p»Jrhicli m i traxMlttaft Unlay to ltaar»blo W. I. E t U o a , 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 TllllliH MMPUMSflRBIWHtCBJ IUUIVI OOMPCKMKICM A m 9f 1*33. torn* f • l« r * n * M M II& C n fe MtobtMM m m b N s* Vi bMM jm l t a t iateH ift W mop M niM M ifeM lfii. lt*Mr*» Ste&$**M « « i l t i i » <tti lb** | «t tor* ijM i i w M i M a n t t p ia Hi* I w f l i i iH a s lia i H M U * ONtffc* r* i n f i H i m *1 |Mr M ltw la *«klA « M t a | Ib is lir tiw ld y M IA 1* ** i i m I* Hn latM M to Mf lb* M M rttar iM A jm l m I mtmV M l M M **A ifcLob M M I* M il to JR U N to w p mm H a d « A m | w r U i M t t P i | w |» fa r m * lift U * { A n M*M*€m* tnaftfl*A tor r a . ** mvmM W iM r M jA m s mmmutmIAjm. id lb Mr, jm ic af iMft 1>U*f «ML*h « • %* Hi* « fft o l U aI * a** a ftttm l M wmU to f m d * t h $4*000*000 M i ***b M p iU lf i H A M r M mmH m m lb* tofM lto 1m t o l l * f Dm t&4 M N M SMdt*n*l J**ftt **?* lb* Clip |>tllM l M bM lM fb * SMMMMlfMfttlM H m m i CiVf«i*tlM « M tor tbl* y>*m m U Mtoarlto fir $3, 000*000 «df pr*f *ri* i «M k to » toM M M * f« r to* a m f l u i m m! m * ito w tflM * 1 1 ^ M i M U 1mA |M f* r H m * I’M ! , *t * l« r M to « l ImSmtmI* f l fT E tO O n t t i ^ i d to tagqr M 8> O m om ! « f mmm* jrM0*rr*4 i M l , to* r*a*lat*c *300*000, k v v m m U w io o tw »UMfcf to "to tMlMrttort % | w m alter* tbMr*« Zm *61111M to lb* I b f i , to* fil— nA I— f M 1* p n p N i la filr# to* I mm toali ito M M l f iU MMtil M M M I&M m & lb* iM iM lywrtlM Sin*M* C m MMm m U m 1* py*p*»si* la lAUIfaft to M il M M M l M ttaa, to fM A«b to* Mir took PW » H A M 9 « n M II M f M*4 to **tM to 9 M l f i M lb* p*opl* af B*UX* Crtofc ff* aad fttUy prwtoel lb* 4 «^ n ltor» o f *b* m * totou *m mm mi** tb»l fm «*mm lb* f i X**d*r*M^p M i T i y m* b M lb* ol p*i>l* *f * * ttl* ari M mmI tot* m m p n t* T«» mm i £r*M j U lM t o ip iil, M i 1% 1* t dMlftA i f |M MM w U l bMM iM ttir ujit a r l - l l r to to m b*3jpMl to |par t i d M TP r mt m *m M*l^to*r* * f U f* HM» A 2b* IYMIImI i* iM lM IMS M ifMMl M& M % JPM and lb* p*0$U af M * 3 * ltl* O tiC M l M &AmM I* IM T H »l I I 1* KU JMpM* Mft to* pMTp*** o f H i rM M M M i M i a t o H i t t *m M lb* *«**«iM «to«b m n p M M * to tla a i la to* woornm A T *totoi rt»ri| rtMltor to ttoilto *lto mmpjt i i M M t l y 1m to* (bind stoto* v t o n MImUm mm^mmmIm M r M r*tor« ft* tofclM i l M U M t o m ^ M u i to* quMBM y i* i « ^ U r b*n<*ii n | j « tU *tobU l»*4. M l MUlbM M U m r 1m MUUtam, MpMWully 1m a Olljr 4 m m ^LUmmi mm *bto to mnH i i , m U H iitr* in r nMfMrtoiMl*. « * m n » tM M iM r ** ^b* «r* M n r B« !• * M * f >rrM M»» IH m i I IIMMy* Board Pi j M M JCOS* 0h*llM*» »M*ft*trM%l0Jl HlWMM CorpM*UM | 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 St ■toto# Y Ml htt < tte O T O m MW W feloh lui tftM CooM t.ss&ottii' of FlnSM ftf S WO r O W ttei W & O WiL O t following liflUr to »1I Pt. Loni* Syooial Dopwty O—l«ilo—r« I* itorp o ef cXtaaA taAvt "3JM9 1WP tlOtlMj •* l>Nr -MlBDv Ul 3 ** 10VIB Ut l'OWML BMHiy It O&ft&tlOBi to §** I n m ! r" f f B ^ tH rll l-iW Amb tfco btH^o yoywfrlo S oooli SjwtwM t® ® ftM is O dbRvl *lo** *T k Is in Xlii wttfe tte lttvtra#tloMi wo » • mbA* H lji * •## wil I plJUi *lii •• I w i M M Wm WMi MUNdLBC *Tta» d b ^ ld MMT »** MkA fw »a»f 4 {^ « t . tO W tlMlt OAlOU dOi*t®itO jI wm o im tiH M liW i t T O 1 ^[ M I W M W wBWttlwPC lw JMP^y • W e «JW^HBiww(HRMWP ' ticc W w Wf " rfi N f f tfco tou^a proptrly j^aiid la U9d4ttlMi»" 'H f ^pc R ep rod uced from the U n cla ssified I D eclassified H oldings of the N ational A rchives j 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 w 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 ofa rMftbtd oo &oox, JL&£ b haftka afeoee hft^e ■ot hooft fllody thla DopaxtJMftt dooljpoe you to tho Popffl tt * OoHalttooa that Mo x^oozvaftis^tloEa p f f ltt *1.1% t r this a wiU>« i- ia f c alhlo to mmm&. ft ftoe oapltal atrttatmro l t eaeh, po«* f t f i blllft lt ip oaoh lftetastoo 'to f f i K S t t tltfl Iu iu ff O p iJ ltlM 0X IM t i l l » VMS W i i M Q M9 «Mf uH S t f r a f K aaiy ooftfto®t to ftlloa dopoaitora to ^vt^f p t * 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 # 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 I 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 j 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 j | -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. In 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 8- 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 - 11 &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, 12 &Q 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 0 (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 A 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 I 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_ 4. 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 j U H iL L A S S lF IE D I Authority 1% 0 (0 ^ 0 I ■ /pm ao, Do m p W j f im aniflm lltii tK* tdjM M toq todier* wMHni I# lAwl^BIMM WKWwjLwm m 9QpQf 9 * l M BIHWRIwLwl Ovter i M H M d Inr t c t FiHMldittt &£ fete Sblttd StMitof ff xt3jt%&im %• f®F§Sjpi •wduu^pi (HmI tttM MnMurldyRC end ••* |HW% of fOld M i B 0 f teUlflM #9*tUIIHMlJfi 9 ¥«gjr ir^iugr j m i O h M W r HerriH* Mor«tJnj (Inclosure) 7 t w i w j l l f B Of i u FvaeriuL aiii i v i o w il M declassified 1i i i i '' ' i i/. > ' ( fj j \3 PW M fr il M , IU9 / •ur Mlaate m u — - m iwrtw < EXECUTIVE ORDER IV 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 Q 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 uhrt \3 \933 PPR 2° April 20, 1 W J Omti— Box% m - «*!■*■* ■••toe - AUtuta & U * m * - CttUag* - Bo»v» 3*9* - g«w I«rtl iwi tux ■ CleveUm* fpi’ y * » i m w p » U * M Nodar* - ( « m a « C t V - DfclU* g»9toa - U * * T r u M l a * * > ao. % 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 I 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 I -3- 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 certifi cates 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. 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. 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 m EXECUTIVE ORDER o , 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 j -2 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 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, 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 $10,000, or, if a natural person, may he imprisoned for not more than ten years, or both; and any officer, director, or agent of any corpora tion who knowingly participates in any such violation may he punished hy a like fine, imprisonment, or hoth. This order may he modified or revoked at any time, ERAMLIN D. ROOSEVELT* THE THITE HOUSE April 20, 1933. Reproduced from the Unclassified I Declassified Holdings of the National Archives | 1JJ!<C.LA»31FIED i Authority 1 ^ 0 ( O ^ O A SSISTA N T S E C R E T A R Y OF- T H L ,-?EASURY April Z 0 t 1933. Memorandum for Governor Meyer: I attach hereto a copy of Executive Order relating to foreign exchange and the export of gold. In form it is satisfactory to the President subject to the approval of the A tto rn e y General, The Solicitor General has given careful consideration to the preparation of the order and it is in form satisfactory to him. I R ep rod uced from the U ncla ssified DECLASSIFIED I D eclassified H oldings of the N ational A rchives Authority 1 0 % [ Q^0 j mOUTXTI (MSB\ tal ft i n t #f M M I c*l» «r I j T lrlM #3f ilM flMlMartt/ f t t il 1a mi l g s#s^iwi |F i§| « f (ktolMW’ 6. 191?. lift aMmtftA hr tofttlaft 3 ®f fiffcl t f tiM A il *ff rnrik % m m , t » t ll&*# "A# Art te prtvlt* * « U « f im Vte * •* ■*< — MktlMMl M M M BT iJi «ftd Jf«T allu t M t M M a I la M t ' M i ^«M«Lfery j f 4 CcuMOPMtt J a t l a M i H t f I fiiA yc tAtLa4 it t i w rl<w w w i i t y iHrti, I* fr<* rtUi o. ftpawM&t, % ii»«l*yi tte l mAA a*tl«aftl of tiw UaMwft tt e lN #f «m r«nM r *illX «M if— ■ it ittt*t aad p «r——* %* aald «m I1 «i Md ty Tlr*M t f « U #$MT «»ti»ortij *»*t*t I*. **♦ <*• W r t y la m H » iMUMtat 1* m h im «*•** {^111 ftar% 3r m )M NNtf't llu •tfNMrtdsg t*T ^twl^jl ■ m in i m « Mm mp*r% •/ **1* M i*. **M W U i i «sr ■ »!* AMAlflAttiM 4W^m |k^ il t fb t |«J I t e l M mp f / m aIjMB gri)lgg| f * tm r M f f Mc ' M el f v WMhdM.fc^d_ MMbi * h a d wA t)M m u I f f «r Mm t r iia t y , la U > t U a n t lw M * » a j >Ht to M i l T«grfl»nm« m I* • » i m w t t t, m y i m tl i i n H mMmvMw.Mm mpur* t f (aid Mia M i to lltM (a ) i w i t o i «r M M to t o w * for * w ««p » w « f«**U* > ' « ■ ■ ! w «^ h ttw flk for Imfcflm&fclaMl SrtUjMttlM* H C») « 9 » M «mv n « « « r » « • * « In n m w M i ■ » ■ > » «•» « MBl te to u n t i l i l l «f »ft«M U M tU «A4 M T o a ^ T c M t c Mtorlal* « M r H H W W t to «3*«rt «•!«. (o> w**mAVj N f r t M l far »• A fU M «f M MriMH MtMl UM iwiw to M O M t T m M * K (Mi M M , kr m m * U m m M m i» rtiilw i to M m 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 4* (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. Reproduced from the Unclassified / Declassified Holdings of the National Archives | DECLASSIFIED j Authority fO ^ Q I 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. Reproduced from the Unclassified / Declassified Holdings of the National Archives j DECLASSIFIED &0 fO^0 I I Authority 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 Reproduced from the Unclassified / Declassified Holdings of the National Archives j DECLASSIFIED I Authority -K 0 (Q^Q j 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. Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority f0 5 *Q | 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 Reproduced from the Unclassified I Declassified Holdings of the National Archives j DECLASSIFIED 0 (O^O I i Authority 1 % 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 Reproduced from the Unclassified I Declassified Holdings of the National Archives | DECLASSIFIED 0 I Authority 1 % (Q f 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, Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED j I Authority 1 % 0 iP^Q I 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 Reproduced from the Unclassified I Declassified Holdings of the National Archives j DECLASSIFIED JAuthority 1 % 0 (0^0 I Ir*32—C 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 ■ .. , Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED Authority (0^0 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 DECLASSIFIED Reproduced from the Unclassified / Declassified Holdings of the National Archives Authority (0 I (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 Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority fO^O I 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 Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED ) IT -/\ ! Authority Cc f r v C T / c\ (Q-?Q 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. Reproduced from the Unclassified I Declassified Holdings of the National Archives 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, i ! ■ Keprocuced from the Unclassified / Declassified Holdings of trie N ational Archives 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 Reproduced from the Unclassified ; Declassified Holdings of the National Archives Authority - 2 I - (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 Reproduced from tho Unclassified ' Dec.assifloa Kokinas cf the Nsto^.al Archives 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, DECLASSIFIED Reproduced from the Unclassified ■Declassified Hcldinas of trie Nat ona! Archives Authority A 0 (0?Q / - 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 j D E C L A S S IF IE D I A u th o r ity m m w m 1% 0 [Q 0 j m m m m m i+l*&rm&L jttim i m Umirn M m 80 f F t Mar M mm m sw s m V M . T) C Vllnj[ by %& ifmu p hnttdr#4 **1011,141111 flfttntor l^ fjlftil- thftt p)*ni «athop1t #*»&£*#*#». a*#t l l i M M * iu&mA and fteary r»pr»ttont our t U w h#Tft aoxMPinntat apj^rorsl of !**•?» in a m U i ^ m m » m & by Air* HiXltius v. Camt*«k MKTfWAiiinr ®®r Mffiupm# 1S.ZL Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED 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 Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED 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 I 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 I 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. It 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 j 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 I 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 0 fQ ?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 ! IM / C-t+*L< C o6t t( / f 7 W ,>* £V $> QA/I.IUa ' ■ /i 4 6: u m *o .T* A /' f C// Reproduced from the Unclassified I Declassified Holdings of the National Archives | DECLASSIFIED I Authority 0 fO j H 'l o No, 28 TREASURY DEPARTMENT FOR IMMEDIATE RELEA.SE March 18» 1933, Under authority conferred upon him by the President’s Proclamations of March 6, 1933* and of March 9, 1933, declaring and continuing a bank holiday, the Secretary of the Treasury has issued the following regulation: “After the close of business on March 18, 1933, Treasury Regulation No. 6 and Treasury Regulation No. 10, as amended, shall be without force or effect to authorize any banking transaction therein referred to.” W. H. WOODIN Secretary of the Treasury, Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority^ 0 i O ^ O I 'o. T FOR Ik*.XDIi RHLEA.se MARCH 18, 1933. TREASURY DEPARTMENT Under authority conferred upon him " y the President’s Proclamations b of Mardh 6, 1933, and of March 9, 1933, declaring and continuing a hank holiday, and the Executive Order of March 10, 1933, the Secretary of the Treasury has issued the following regulation: "Any .state hanking institution which is a member of the Federal Reserve System and which is not licensed by the Secretary of the Treasury to reopen for the performance of usual banking functions may, with the approval of the appropriate State authority having immediate supervision of such banking institution, permit withdrawals by depositors and make payments to creditors of such per centage of the amounts due to them (not exceeding 5$) 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 m n 11) w To {ioveroorfU Foderd Rsstrv* B t f a uoc Illw 0 t jUmis, Mo, *u Minaaapolis* Hi»m £&&«•£& Ql%jf Hg* Dallas t T<>i. San Franolaoo* Dalif Jia&s* ■ M«f forte* H* T, CUvelaaJ, Obio, Ta* atijtiit*, &** w^ a c y<T t&* •f «v f * f l t 1 %tu a c a c « f m 1 tio 1* ft*/ si I # W *£ »%*$*% w i$#m I# *&* nM. i i i i tas# $$% »hi<sK |a m m t f k m $i lloon-ai Vr ♦>»* ■ M a i ^lurifijuc fu iw tlaa*. agt*Ht. dMn 1% tiinaa— n or In tita? to 0/m*«r^* 3$w «*«•«%• of u s f fc*jikla« laa n tut to« see 'i ti*i' mi Wm H# Ni^i m & t im m m t i m m # m* ♦ M r iw mfe W m $ m M $ M m m #t i$m *$|ii£*si£* m mmfk « * * m $m m 4 $* mmk *$$tt W m mm I# m % m im i m&m mm& %mm t mmmmm l » $ # t ## mmh $ ^ *** ...... r . M fmt&mt MM&imi%k . If *$«& tett* CM"d4T Mt w m & m . fit t&# ^pn^i»«wi# &# $ m & m l i.» m i I | ii m i M t t i H m fc i ist f* 10, H f c ' H I . i t j&**#* 'M&fim *1$, Pt llltlMtlMft In friv*\9 flrt, Reproduced from the Unclassified / Declassified Holdings of the National Archives j 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 % j 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 j ! 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 Wa s h in g t o n , d . c . 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 m ' Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED : Authority 1 % F o r m 118 0 (Q I t o TEL.CGRAM H 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 ( ' U © r m j a r g Irpartmrnt 1C7WNB34 i E X TR A TR 1 .g ^ T E L E G R A P H O F F IC E CHICAGO I L L S 1250PM MAR 12TH . ‘ ’ 3 *• pM O ” * . / / 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 j 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 j 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 j DECLASSIFIED ! Authority 1 % 0 (O^O I m 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 12 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 I 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 I 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 e * 10 —191 Keproaucea rrom me unciassiriea / Declassified hoiaings ot tne National Archives DECLASSIFIED fO^C) I Authority to w m mm*& tea t o * a fe ta a t tte * tea S M M rtu r • f trm m m r lata c ttn ato ft « * n q a o tly * m um H m m f e a s t e d agaB te, to b m tanka. « * tog « * * • U m h n to the to rn feaw totom p — O t »r h c s to* tta raau q rtlo a o f tanking tonofttaaa feooiim lac n attap *M*tog, M N h fi » . 1983, to too foUxwteg bauJat .t$ & tfo te it$ U g o ls K it f jjg ^ ii tv tts t i t * SNNMMl .amiwm PiMttk i t f i yp# H H Tlt **** *** l tt imh A. o Wfl%SOm.l SftHRHMl BHMI T^iy totetor « M a U m mttmai, aank o u Ooloay anat to. * • M m * Etnttw aa t o f t o f toaton u attad statoa M a t awj w y f ft* »ffne f * tr TY^i Xa K S tm m fw i Hl p# fm jdtt Ioelf *l«t$ p m UI D E gw £b * * • » »"** » * w u»ttoA M i « f M to a M M <MHt*ar m m m jb m m tow* to. s m s t to . t o * o f tow M to A s ra a t to . « M toaaaa M & ttd l M k o f am akSpi Sus^t # ? T w A d m m J W&ttftthX ^ffhnn0it Tto&k n Uteil C § 3« 0 # a *» i itowvott/aaafc A fm a t to '. topa&fta Bato —q Jfcnfe « f to r*U a toaolaa toMk & M M » to. feu** M M feUtoA «Mt of qq# MrnMgmmA | g | nf ig^n 'a w-----g M m - —— — mmam Va w*«S»3 BH»^ W m h t o M xndc & n u t to. M iM ta lM k iftM tg ., f h t # u i c 6£ + ' B aW aaa M k « f t o w to w * . DECLASSIFIED Reproduced from the Unclassified I Declassified Holdings of the National Archives Authority W m IftHe fO ^ O I Bay m m M U - Mtaxzsgl j m c $roj»% to* n w w i m i l tkitunni twik, m m Oh M m m S i M n i M e , JifHi JMnuft Haute AJrlt IVfsMPP®* W m m M k i m m m % 0», m ru m v mwmat wmmNmk rn&m* m & m m M m m m & $ro*t 0o. M M iMISWil M f c ttaH* t€bm& W M m m X IhUi & tmm% Oo.t M i l Owinnly a m t o&* IRMMSA&* WlfflX n w f Xrvi^; s m l 36* JMmJPHMIMI B®Hk M r l M *iMXsm& tmm% m * •3 u > a*H— a sm it t nw iMitSwii# liMii J l n f I 9r » 0» ooit at « M M M t of tH M U l Ih ltw a ttaiMr M i * Mist <*. t f e a m f f v o » i 0» * Jkm T«fk XR it 9b. H % I M l iittlt tettoraU, M e & amrt S». ISMNAK HM®R ,y w# f|f>riVTlWr IWWOTPMIBw I P B w IW# SlP m y M e HMftanx ( M i l l h ttiM l M i * SiMt O , b Imq I k n a t om* WM m t i , t a il f * iiwWMwWA JMINE H a ^ H n ^ M m X Bank. tfaalisd H M <a*r i &i m Mlona H i fit O b iM t a ip national m il 4 t m t Oa* m Iftf TMyr »yit * w i S Qs« f, g | * w* ’ forth M i Untisma M k iiMrtbMat Matloaftl M t DECLASSIFIED Reproduced from the Unclassified / Declassified Holdings of the National Archives Authority 1 0 % iO^Q I I m X a & a }*mmagrlmtl* {&»!*}« il HdtoUty fmmfc JUI^ rWl 9 R « HR®* SPNMt CC MkR Jh f M H ll* » * k O B a K t f m * I ll'T * * * & t t B li* 3?U*I KftlM L Batik o i IJtWNI s SWrtllSis m i a M ^ t e u « n a Mti &ra»t oo« l w i M lAltcrlty f*u*l 0o« M o n A ft&ttannl M :<maln£tai B»tjU«a3l I M k U n ite * M & m l 0e» feUooaa M t la* l ftfttloctol M M M o»* I iI M I M k Mot €ELmlaaa& t w l Qo* l i 4 ' a M L gttjr 3MNI& :l»lSU Caotral M I M HaUsmal M i li,^>MWMlt Viqgtolai %MKSk, &$ 40MI Sl**t ......„ Wmtffimfon <i« w w rr w aftl m 1P« 'W Ww QMrtv&l IN trfftnY iMte it M k V* W 1 ill wnnpfpwpppip' af^M H P PW W 3f a l M 9 taiaVt Bote s»d M l svtlantA, SMti^glsi !£*•! iftttm l M ItkllOR ^ I M « f Atlanta Q M w m m m & m m & m m u&Uvml Mfc f m t Ofc*a**t^ of otet^la jM faijM XlXinoltti Bu SSlty IfcttOWal H i im I m m % Q » w i 0RntSll^tcS& XULilMlit JlE ifclarkU 3 M M l > tC 'S M W l I3 fr# oottllmtal H l i t t l M s M l a m i Jo. a&Mtt itiii Hatootua M e of M m m litfti M l iM| 23* m v & m m Insl Oo. awfll ttt UbbML 8att«a*»l M U ttetnvpt&lltfi H k H Umie Sittm d BnUAirs H I jE§HI tSjj^pftjf1 4 P®HRrt9 Jltfl§S 0 i Mmrn WmUm 3 M m M ite Mils Oo» Reproduced from the Unclassified I Declassified Holdings of the National Archives j DECLASSIFIED I Authority 1 0 % (0^0 I IUteola (a— t.)t ;ia6fe tssi 8*%lsum X jgjftc m i m w t fflM ntnrt, HaUmao. nw k o f ffnttiinil IM It o f e n w * ««& a » ttg t a w k liiltiriy jMH* Wi U a U te d m u t m m Wwl Mflnni M e z&tUmaX % l M B Jtato M d c MtmtetdUt amfc m i Wwli O 8 | @ r o 9w Q j*. lamto, Mjggggtt SMtMtin sank 3 # m n m amnia tak Hnrt Snttsnal Bank K««4 City 2n s*t a » . M n n t U * <taMBKKM ifenk «»a S ta rt o», ommm m v*MmA m k Hmg m & fyw^ % A* - atttlnrtpgt nOMjr Start On, KortiswsVnn a n d Oo. M 9 M H M « r HbttflMX SHfe, autaoi M lutk and trust Os. " rt O n ' w i r j * i ■r r T t i i » y ctwI ** * q®* 3 o a « w w Oowaojpdal onti Savin* M i U n i a U S m r t a». aw wip w wMMPw 3mk mi '2rm* to. iSam tom Zsylar anwt 0». WI— KaMan^t Timlr « M » ti M , a t. UttAu Owmfy BiXia, Ml M t tt t e M tf i Ifisc %i S 6i U t l j-lf kt 9H 3l t H E ^ iitlllKlil D B ttflK Hwujnrtte Rations! M i MdlMBA M U m X M k 88ft Srart Oo. n t * w m r n m r n m to*t*mx m k lint 1r t U M S w k ant fvuat 9 M UmAWW jB • jyi Hn ii Jt1 H R H I i JJmiT HB H B I I ^ v M k *p lF K S a wHMnwl— I Htttiostei M t c f l N M K m U M r t n * SrtiMttl S M k DECLASSIFIED Reproduced from the Unclassified / Declassified Holdings of the National Archives Authority (0^0 I m&m mmmmmtmJk WSmm itn^fc Tajpdo $&%%MaX Tmk. OT0p#3P1 M V P s l g PRVXMHkA I k lir W M m A M lt*«t X&fetJHt&ta BfetlMfcl B Wil Mtrttail* pp^c M U j g u Jgwg| ^ fQ ffln U lu W x m & $mm% <fc. <*£ fi*»t iatiaaai Bettk IMMI fitfhifl awAc n# f t m m t m fftlii foMwV « A BtosS dUi mb m y M i m M U m m X Bank m & frm% 0»* Hit Mjtgwwjag M f U a * ifSp StCi iswrtfU l e i l i t M ttilt& amfc o f W A iin ia , lf*A* «*U* Mxrn M m k and t a u m Mitt of ftiiitroul fBsat$l»8o# m^j^o^XtfomxSji W s M m a X M k M U f Itfwl M M w m M e M e cf HM»iPlm WaMmriL t#m% m d 3*vtag» tom* DECLASSIFIED Reproduced from the Unclassified I Declassified Holdings of the National Archives 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 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. 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 i a 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 1 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 I Authority f . (QbQ / -O ! j 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 1 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 pm 8 10 —101 f Reproduced from the Unclassified I Declassified Holdings of the National Archives DECLASSIFIED Authority & Q (O^C) I n n 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 I 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 i DECLASSIFIED ■Authority 0. (0 ^ 0 j I j 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 i DECLASSIFIED ! Authority h O i (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 j 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 i Reproduced from the Unclassified / Declassified Holdings of the National Archives DECLASSIFIED Authority -P 0 iQ^Q ®S3MAR || pm 2 10 * z - Banks should th© occasion arise, and grant such request* Yours very sincerely, T 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 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 . 0 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 &0 (Q I 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 P. 8. 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 I 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 ' 1 0 Reproduced from the Unclassified I Declassified Holdings of the National Archives ! DECLASSIFIED IAuthority^ 0 f 0 S~Q / form 1 8b 4 TELEGRAM / , h i FEDERAL RESERVE BOARD W ASHINGTON Mareh 10, 1933 Hale - San ftrmolae* t 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 a Reproduced from the Unclassified I Declassified Holdings of the National Archives j 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 TELEGRAM 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 m y of Chester orrili, e« etary to the Hoard. DECLASSIFIED Reproduced from the Unclassified / Declassified Holdings of the National Archives Authority & Q f Q ^ Q j F o rm |48b r C L. ETG R A M FEDERAL RESERVE BOARD W ASHINGTON Young - Barton* 3©erettiry of Treasury M a sent following tategroa to 5-39; 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 A DECLASSIFIED Reproduced from the Unclassified I Declassified Holdings of the National Archives Authority £ 0 ( Q j 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 1-83, 1-8, 1-363, and The Gfeaae Bank: llh ® i i c e o u t i v © not q p p ly countries to 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 no physically lo c a te d In 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 ^ 11-177 Bank of .America National Thrust & Savings Association, San Fran else©, California. SRC/rkt Reproduced from the Unclassified I Declassified Holdings of the National Archives i 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 , s Chase National Bank, New York, N. Y. jm 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 Q (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 H ^3 M AR 10 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 district fro» Bonder ©oralng until lYlduy atght thin «•«&• 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 S(V) o f tha A*t of Oettftor 6, l » 7 <4© Stat. 4U) m 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* *©* Saaratary of tba fraaaaiy t» aatfcwriaad ragalatloqi a# ba aay praoorlba to pomIt 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 to raapa* for the parfaawae of all aaaal aad aornal baif lag fonetlcma, axoapt c Reproduced from the Unclassified / Declassified Holdings of the National Archives J DECLASSIFIED ! Authority +,0 f Q 5> Q j 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 i 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 I 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 i DECLASSIFIED j Authority - 2 (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 & ft Q 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 j 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. As 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 i 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* j \ » 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* J/ 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.