The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VJUD3ot&b
Formr.R.131
REC’D in files section
BOARD OF GOVERNORS
or
MAY 1 4 1940 ^
THE
FEDERAL RESERVE SYSTEM
OfficeCorrespondence
To.
F I I qb
From.
Mr. Sraead
Date
____ May 15 a
Subject l
Under the present requirements of the Treasury,
Federal Reserve banks have to obtain authority from the
Secretary of the Treasury for the issuance of a license
to State banks upon admittance to membership in the Federal
Reserve System* Since formal admission to membership has
to be delayed at times until telegraphic or other advice
is received from the Treasury Department authorizing the
Federal Reserve bank to issue the license, and since the
granting of such authority appears to be largely a matter
of form, I asked Under Secretary Bell whether there -was
any objection on the part of the Treasury to giving the
Federal Reserve banks blanket authority to issue licenses
to existing State banks upon their admission to membership
in the Federal Reserve System* I understand that this
matter was referred to Treasury counsel.
Shortly before his leaving the office far a few
days, Mr. Bell asked Mr. Heffelfinger to tell me that the
Department preferred not to make any changes at this time
in existing procedure. Mr, Heffelfinger stated that Mr.
Bell -tfiought this question might be reopened for consider
ation at a later date.
•jJr
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
J,Jl- 28 1939
Mr# M« J* F le m in g , President,
Federal Reserve Bank of Cleveland,
Cleveland, Ohio
Dear Mr, Hosing#
We have gene over the form of license
enclosed with your letter of July 2 0 / and while
we agree with you that the form is not exactly
what we would suggest if a new one were now being
prepared, we doubt whether, in all the circumstances,
it would be worthwhile to raise any question with
the Treasury Department about it at this time#
It is assumed that the whole question of
licenses will eame up for consideration within the
next two or three years*
¥ery truly yours,
(SignediChester Morrill
Chester Morrill,
Secretary.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority YlMDaoozfe,
irJ b z U d tA ,
x n
JCENSE
/
/
The
of
\
193^ its office(s) in the following
is hereby permitted to open on
place(s) '¥ty "£ c .
CL 6 0 V O .
c/ 3
/ rf &
tont'cL f b , a , 6 o r e
F
S a n / £
e c / a ir ^ /
c / c tf&
b e c a m e ,
a
O
m e / t i d e
r:
~ i? & s e r / < z
and to perform its usual banking functions except:
1
(1) To the extent prohibited in the executive order of the President of the United
States issued on March 10,1933, as amended by the proclamation of December 30,1933
and by the executive order of January 15, 1934 (an extract from which is printed
hereon).
\
(2) To the extent limited or prohibited by any executive order of the President
or by regulations of the Secretary of the Treasury.
*
This license may be revoked in whole or in part by the Secretary of the Treasury at
any time.
Issued by direction of
H.
M
orgenthau,
J r., Secretary of the Treasury,
Federal Reserve Bank of New York,
By
\
Date
E
xtract
op
M
from
arch
E
x e c u t iv e
10, 1933
E
“ By
(40 Stat.
March 9,
executive
O rder
as am ended b y
x e c u t iv e
op
P
O rder
the
P r e s id e n t
r o c l a m a t io n
op
J anuary
op
the
U
D ecem ber
of
n it e d
S tates,
30, 1933
and
15, 1934.
virtue of the authority vested in me by Section 5 (b) of the Act of October 6, 1917
L. 411) as amended by the Act of March 9, 1933, and by Section 4 of the said Act of
1933, and by virtue of all other authority vested in me, I hereby issue the following
order.
*
*
*
*
*
*
*
*
“ Until further order, no individual, partnership, association, or corporation, including any
banking institution, shall export or otherwise remove or permit to be withdrawn from the United
States or any place subject to the jurisdiction thereof any gold coin, gold bullion, or gold certifi
cates, except in accordance with regulations prescribed by or under license issued by the Secretary
of the Treasury.
“ No permission to any banking institution to perform any banking functions 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.
Subdivision (b) of Section 5 of the Act of October 6, 1917, as amended and Section, 4 of the
Act of March 9, 1933, prescribe a penalty of a fine of not more than $10,000 and/or an imprison
ment for not more than ten years, for violation of the terms of the said sections.
Os*.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority U H P a o ta b
IN FILES s s a r
fHib 1 1Q39
m c 't>
^
New York form:
^
if 7 o -^- i
......
Same as Cleveland form except that wording of first paragraph ^
7/av
below signature reads:
^
/ 6 o#
f *•H
Extract frcm Executive Order of the President of the United State®,
issued on March 10, 1933/ as amended by proclamation of December 30,
1933 and executive -order of "January 15 # 193ta
By virtue of the authority vested
of August 6, 1917 (Uo STAT* L* 1*11) as
1933* and by Section l\ of the said Act
of all authority vested in me I hereby
in me by Section 5 (b) of the Act
amended by the Act of March 9*
of March 9» 1933# and by virtue
authorize the executive order*
wTJntil further ordey, (balance same as Cleveland form)
Philadelphia form:
Practically same as Cleveland, except that the words "issued by
direction of H. Morganthau, Jr* w are omitted, and the form reads *
(__________ ) Acting Secretary of
the Treasury
FEDERAL RESERVE BANK OF PHILADELPHIA
By
Governor
The words ^amended as aforesaid” are omitted from the first
line below the signature*
The name of the Secretary of the Treasury is omitted at bottom of
the form*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority YJUP 3 0 0 2 b
fr\A J
A-l ^ . ■ l J~~ /
C ^ y ,
< *-+
?
^
J
0
j
U
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority
3002b
✓
R
o f
e s e r v e
B
REC’D IN FILET
N N AUG I Y
a x k
Cl e v e l a n d
July 20, 1939
Mr. Ghester Morrill
Care of Board of Governors of the
Federal Reserve System
Washington, D. C.
Dear Mr. Morrill:
You will find enclosed a copy of the form of
license which this bank has been issuing since licenses
have been required.
^
Our supply is very low and as the form, frankly,
is a very poor one, I am wondering whether you would
approach the proper source at the ^Treasury Department
in the interest of procuring a new form of license.
The form enclosed is in/accordance with the
telegram of March 12. 1933/ over the name of W. H.
Woodin, Secretary of the Treasury.
I shall appreciate your early attention to this.
Encl.
FO?i FILES
R.
7
K.
Thoiapsaa
WONf
F E D E R A L R ESE R V E BA N K OF CLEVELAND
::
L IC E N S E
::
The_____________________________________________________________________________________ of_
j£>hereby permitted to open on_____________________________________________ _ 1934, its offices in the following places.
and to perform its usual banking functions except:
( 1 ) — To the extent prohibited in the Executive Order of the President of the United States issued on March 10, 1933, as amended by the
Proclamation of December 30, 1933 and by the Executive Order of January 15, 1934, (an extract from which is printed hereon) :
( 2 ) — To the extent limited or prohibited by any Executive Order of the President or by regulations of the Secretary of the Treasury.
This license may be revoked in whole or in part by the Secretary of the Treasury at any time.
Issued by direction of,
H . M o r g e n t h a u ,Jr., S ecretary of the Treasury.
FE D ER A L RESER VE B A N K OF C LE V E LA N D
By
( Deputy Governor.
Extract from Executive Order of the President of the United States, issued on March 10, 1933, amended as aforesaid: /
“Until further order, no individual, partnership, association, or corporation, including any banking institution, shall export or otherwise remove
or permit to be withdrawn from the United States or any place subject to the 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.
No permission to any banking institution to perform any banking functions 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.”
Subdivision B of Section 5 of the Act of October 6, 1917, as amended, and Section 4 of the Act of March 9, 1933, prescribe a penalty of a fine
of not more than $10,000 and/or an imprisonment for not more than ten years, for violation of the terms of the said sections.
'
H . M O R G E N T H A U , Jr.,
S ecreta ry o f the Treasury.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
February 8, 1939
Mr. Robert S* Parker,
Vice President end General Counsel,
Federal Reserve Bank of Atlanta,
Atlanta, Geoegla*
Dear Bob*
My attention has been called to a decision rendered in
November 1938 by the Supreme Court of Mississippi in the ease of
Anthony v. Bank of Aiggins, 184 So. 626, holding that the President* s }rodeviation or March 6, 1955, declaring a bank holiday,
was invalid*
If you can do so without too much tffouble, I shall appre
ciate it if you will find out and advise mo whether or not any e f
f o r t is being made to take this case to the Supreme Court of the
United States by way of appeal or writ of certiorari*
I believe that the decision on this point is wrong and 1
dislike to see it stand unchallenged. Therefore, if the case ia
to be taken to the Supreme Court of the United States, I am in
clined to think that the matter should be brought to the attention
of the Attorney General in order that he may consider the advis
ability of filing a brief as aadcus curiae supporting the validity
of the President*s action*
Aaaurring you that any information which you can give ma
regarding the status of this ease will be greatly appreciated, and
with all best regards, 1 am
Cordially yours.
Walter Wyatt,
Qeneral Counsel*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
d ec la s si f ie d
Authority VJMDSoo2fe,
i
_LOi*. .
RSC’ D IN FILL.% Si'X;-
•// n F C *?■ 9 1-139
~ 2-
Daaaafoar t8# 1998•
M tl« B ra Invalidity o fvPra*i
■r« WJmV&0 mmmmwmX wtwuti
Ar«
ter Ckrk
test's hf>l—t i t M tr&a| lm H i|
tolibr.
v
19S6f I barowith
Baak » f y iig la i.
19# 8a. t t i ( H n * i9H )9 «hi«k w i ilasmaad l i d tr ti«h Im tk«
Aaarlaaa BMktr far Ia*a»bar 18* 1938*
brims ta yaar attoatiaa tba aaaa af Aatbaay
H» M M u tlfia tba af«ramU«Hd aaaa,ma laitbtH
to tii« plain tiff In k i» t m l* w w i by t M •! t m i «
aartaln m lty* Aftar dafaalt is gayarnt by tl* ItfmAntt, sail
roalty i m duly admrtlaad far aala by
traataa «« Marab f # 1935,
- and pariteMi by tba baak* la tbla atdt, taatltwtad u r t tte i aix
yaara aftar tba lv« data of tba afaramatioaad itata, tba baak,
•2alaii( batb lagal aad aqultabla fRwrthip, prayad far aitbar ft
aaaaallatlm of tba dofoxidant* • alata and tba aoaflrmtlaa af its
tltla , or far a aaaaad faraolaaura la tba avaat tba aala of Marail l t
l9SSt abaald ba bald Invalid* Tba dafandaat iarwakod tba statuto af
IM ta tliu aad fartbsr eaataadad tbat tba faraolaaura af Narab l ff
1883, ma Invalid baaaaaa (1) tba aala ma aada aftar tba baak bad
raaal'vad natlaa af tba JYasidont*a Praalaaatiaa olasiag a ll banking
lastltatlaaa aad proUbLtlai tba traaaaotlaa af aay baakiag baalnaas,
aad (S) baaaaaa tba yrtas paid at tba aala ma iaadaqaata.
Ia afflndag tba daaraa balav aaardlac tba baak paasaaaloa,
tba aawrt bald tbat tba atatata af li*itatlaaa aaa aat a daftoaa ta
tbs p la in tiff's prayar far aaaaallatlaa af tba dafaadant*a slain aad
oaaflfm tlm af tltla la tba plain tiff.
la dlapaalag af tba aantantim tbat tba aala ma lo n lid
baaaaaa la violation af tba Praaldsnt’ a Praalaaatiaa of Marab l # 19I8#
tba aaart aaldt
"tba ||ran1aaa111 af tba J^raaldsnt ana iaaaad nadar
abat ba aaaaoivad ta ba as aatboarity vaatad la bi» by
virtao af tba pravlaiaaa af Saa* 8(b) af tba Aat af Caagraaa
af Oatabar 8, 1917, 40 Sttt* 411* This ma daaa aador
Saa. *(b) af tba Aat baaae aa tba "Trading VItb fea ftaaay
Aat*, 1ini tod la Ita applioatloa ta tba parlad af tba
Varld War. Soatioa 98# IT.S.C.A., tltla 1*, pp. 382,353.
Tba firat praolaaatim, la . 2039, iaaaad oa Xarab <t DSSt
waa fallaaad by his aaaand praalaaatiam, la* 2040, iaaoad
aa Xarab l t 1958, aftar tba fmgraaa bad paaaad aa aat aa
tbat data* balag Chap, 1, § 2, 48 8tat* 1, Soo* 95a,
Tltla 12, tf*S.C.A.# p* 381, granting sucb antbarity, and
approving wfest bad bam daaa by tba Praaidsat la tba praaiaaa*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority V)ND3oo2fc,
Mr* Wyatt - 2
"An historical not* is found on page 561, Title 12,
U.S.C.A., as followst •As originally enacted by Act of
October 6, 1917, c. 106, § 5 (b), 40 Stat. 415, this sec
tion formed a part of the Trading With Bio Enemy Aot, whioh
urns limited in its application to the Tfeorld War sad there
fore was omitted from the Code, but printed as an appendix
to Title 50 U.S.C.A. By Act of Mar. 9, 1933, c. 1, f 2,
48 Stat* 1, the section was made applicable to any war
"or any other period of national emergency declared by
the President," thus making it general and permanent legis
lation.*
"Thus it will be seen that although the banking institutions
of the United States, out of a commendable spirit of co
operation in a time of economic crisis, generally obeyed the
Presidential Proclamation of March 6, 1955, there was no
authority in law for the issuance of such a proclamation un
til March 9, 1955* Vie ere of the opinion that even though
a sale by a trustee on March 6, 1933, under foreclosure pro
ceedings theretofore legally advertised should be considered
as transacting banking business, the approval by the Con
gress on March 9, 1953, of the President^ action in closing
the banks would not have the retroactive effect of rendering
illegal that which nad been legally done on March 6, 1935•"
In conclusion, the court dismissed the defendant* s contention
based on the inadequacy of the prica paid at the foreclosure sale by
pointing out that, as a matter of fact, the bank paid all that the land
was worth; and that mere inadequacy of price alone, unaccompanied by
fraud or unfair advantage, would not suffice to warrant setting aside
the sale.
Respectfully,
Jerome >v* Shay,
Law Clerk.
Keproauced from the Unclassified / Declassified Holdings of the National Archives
-------
d e c la s si f ie d
- *■'
Authority
f
i
Mr. Szyroczak
,
.
7
December 16, 1958
-MEMORANDUM TO THE MEMBERS OF THE BOARD ONLY
FROM RONALD RANSOM
C O N F I D E N T I A L
Under date of the 9th I circulated a prelim
inary draft on a matter that the Board had under
discussion.
invited.
Comments of the Board members were
This memorandum has now been redrafted
with some of the suggestions incorporated.
In the
absence of additional suggestions, the Chairman
contemplates submitting it at an early date.
Sugges
tions can either go to the Chairman or to me.
A copy
of the last draft is attached.
rrom tne Unclassified / Declassified Holdings of the National
d e c la s si f ie d
Authority
Rehabilitation of the American banking system,
which has been brought about since the declaration of the
bank holiday by Presidential proclamation on March 6, 1955,
has been a notable achievement in which both the Congress
and the Executive can justly take pride.
The proclamation
has remained in effect but, in view of national recovery and
of the great improvement in the condition of our banks, I
feel that it would be appropriate to remove the restrictions
of the bank holiday.
In considering the termination of the bank holiday,
I would like to suggest that the Congress, through appropri
ate committees or through a joint committee specially named
for that purpose, should undertake a review of Federal banking
statutes and a careful study of our banking system and of
the agencies established by the Federal Government to super
vise and regulate banking.
Such a study will disclose what
additional legislation may be desirable in order to strengthen
still further the banking system, so that it will be as strongly
fortified as possible to meet changing economic conditions
and to meet adequately the credit needs of commerce, agricul
ture and industry, while protecting the rights of bank deposi
tors and the public interest.
Keproauced from the Unclassified / Declassified Holdings of the National Archives
declassified
Authority VJHDaoozt,
^ REC' D IN FILES SECTION
|w
JAN 5 1939
7
Mr. Szymczak
%S
Q% 0^
^
Baewbwr B, 1958
nvoiuinni 1 0 tie umbers
or
tn
board oatx
IKK aOM&D lUISO*
COKri P U T
lou «ilX recall that It «*•
I At
rtemtly
thftt X draft ft briftf itftt«s«ttt on «
diicuoioa.
X ftttftoh tmr
then nnd*r
4oaald«rfttloa
* 9t*Um*a%
which 9 N U to m to m w % tl>* thought that m * bftfor#
uft dorlag thft
toafmrme* tn qjiftfttloa*
Tour
oomm*at»
mrm iaritftd*
f o r f il e s
A . M. Stone
rceproaucea from the Unclassified / Declassified Holdings of the National Archives"
DECLASSIFIED
Authority
WMD3002k
Mr. Szymczak
On March 6, 1955 a condition of national emergency
required the proclamation of a bank holiday.
National recovery,
aided by important remedial banking legislation enacted by
Congress, has improved the condition of American banks.
There
fore it seems appropriate at this time to consider whether
the requirements imposed by the declaration of a bank holiday
can now be removed.
I think it desirable to suggest that the Congress,
through appropriate committees or through a joint committee
specially named for that purpose, should now undertake
a careful study of the organic structure of the American
banking system and of the agencies that have been established
by the Federal Government to supervise and regulate banking.
The banking system should at all times be able to withstand
the impact of changing economic conditions.
A study by the
Congress will disclose what may be done towards strengthening
the banking system and improving its supervision, so that our
banks may meet adequately the credit needs of commerce, indus
try and agriculture, while protecting the rights of bank depos
itors and the public interest.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
fu
'1
Authority UHDaot&fc
November
4
,_.j
....
Mr* Shay
lip* Wyatt, General Counsel
The American Banker for this date carries a story
to the effect that the Supreme Court of Mississippi has held
that the President* s Proclamation of March 6, 1933 declaring
a banking holiday was without authority of law*
Please watch for this opinion in the advance sheets
and bring It to my attention when it is received.
Very truly yours.
falter Wyatt,
General Counsel*
WWicba
SuiESWl. C%«$U.S OFRGfc,
Dictated by.
» # « ** * * ** * « *
ftev&sti top.,« » » » • * • • » * » * » .* •
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority V)UD3oozfc
H IV
Hi,-
COPY
September 30, 1957
Schaller - Chicago
I hereby* direct the Federal fieserve Bank of Chicago,
Illinois, acting as agr designated agent, to issue a
license in the form heretofore prescribed by me to trans
act normal banking functions to the following named
national bank, charter for which was issued today by the
Comptroller of the Currency*
The First National Bank of Highland Park,
Highland Park, Illinois*
The above bank 1a a conversion of The Highland Park
State Bank, Highland Park, Illinois.
4
(Signed)
Stephen B, Gibbons
Acting Secretaiy of the Treasury.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
BOARD
O ‘
OF GDVERNDRS
□ F THE
~ *<
FEDERAL RESERVE SYSTEM
■p- J c L s
W ASHINGTON
ADDRESS
August 25, 1936
OFFICIAL C O R R E S P O N D E N C E
TO T H E
BOARD
Dear Sir:
Recommendations to the Secretary of the Treasury with respect
to the licensing of newly admitted State bank members of the Federal Re
serve System have been submitted by some of the Federal Reserve banks
over the signature of the Federal Reserve Agent or Assistant Federal Re
serve Agent and t*y others over the signature of the President or a Vice
President.
In view of the fact that the Bank Examinations function has
already been transferred from the Federal Reserve Agent’s supervision
to that of the President at some of the Federal Reserve banks and as it
is contemplated that similar action will soon be taken at the other Re
serve banks, it is suggested that in the interest of uniformity all rec
ommendations to the Secretary of the Treasury with respect to the licens
ing of newly admitted State bank members be made hereafter over the
signature of the President or a Vice President of the Federal Reserve
bank.
In so far as the licenses themselves are concerned, it is under
stood that they are being signed by the President or a Vice President of
the bank acting on behalf of the Secretary of the Treasury.
Very truly yours,
Chester Morrill,
Secretaiy.
TO ALL PRESIDENTS
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
w *■
Authority NMD 3 0 0 %
X-9677
Reg. H-7
INTERPRETATION OF LAW OR REGULATION |
(Copies to be sent to all Federal reserve banks)
August 13, 1936.
Mr. Hugh Leach, President,
Federal Reserve Bank of Richmond,
Richmond, Virginia.
Dear Mr. Leach:
This refers to the circular dated May 27, 1936, which you
transmitted to the member banks in your district advising of the ad" mission to membership, on the date of the circular of the ________
Trust Company o f ____
, __________, _________ , and which also
contained the statement that "in due course license will be issued by
the Secretary of the Treasury as of the date of admission".
The Board's records show that, after the date upon which the
membership of the_________ Trust Company o f ______________ became
effective, the Acting Secretary of the Treasury authorized the Federal
Reserve bank to issue a license to such bank to transact business as
a member of the Federal Reserve System, and it is understood that
such license was issued as bf the date of the bank’s admission to mem
bership.
In the circumstances, it is suggested that in any future
case involving similar facts it would be desirable to avoid in any
statement released to the public any expression which indicates that
the State bank was transacting business as a member bank prior to the
date when the Secretary of the Treasury authorized the issuance of
the license.
In order to avoid any possible question being raised,
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlUDaoozc-,
X-9677
Reg. H~7
it is also suggested that the Federal Reservo bank advise the Secre
tary of the Treasury of the approval by the Board of an application
of a State bank for admission to membership and submit its recommenda
tion regarding the issuance of a license sufficiently far in advance
of the effective date of membership to permit the Secretary of the
Treasury to authorize the issuance of the license simultaneously with
-• the entrance of the bank into the System.
Very truly yours,
(Signed)
Chester Morrill
Chester Morrill,
Secretary.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
r
,
Authority MUD3 0 0 2 6 ,
i FE D LH A L RESERVE
I
f »LEj
^ 7 ail
I June 15,^1936.
Governor Broderick
Mr. Paulger
Special question* raised by
members of the official staffs
of the Federal Reserve Banks
of Minneapolis, Chicago and
Cleveland,
In accordance with your request of May 19, 1936, the special questions
raised at conferences with you of the official staffs of the above banks
have, wherever possible, been followed through to a definite conclusion and
the action taken in connection with each is shown below.
I*
Ihether a member bank would be required to exhaust its V *
paper eligible for borrowing under section 13 before
< ^ ^ io b
being granted accomodations under section 10-B.
*
(Raised by Chicago and Cleveland,)
In view of the importance of the question and the fact that there ap
pears to be uncertainty in the minds of officials of other Federal reserve
banks regarding the matter, it was deemed advisable to submit the question
to counsel for consideration and preparation of a letter which it is sug
gested be sent to all Federal reserve banks. Counsel's memorandum on the
subject, together with a draft of the proposed letter, which it will be
noted requires action by the Board, are attached.
$
/ 1 J
2* Ihy it was necessary to continue to obtain periodic
reports on foreign transactions. It was stated that
; i, /
,
the necessity for furnishing these reports is fre- 3 3 4r, / quently questioned, particularly by importers and
exporters.
(Baised by Mr. Dawes of Chicago.)
Mr* Gardner, of the Board’s Division of Rgseareh and statistics, who
has supervision over such reports, has considered the question and has
prepared a memorandum thereon, which is attached for your information*
lou will notice that the reports are made pursuant to an executive Order
and Treasury regulations thereunder and are not, therefore, required by
the Board although they are said to be extremely useful to the Board in
following international movements of capital* Mr* Dawes directs partic
ular attention 1n his question to the necessity for requiring the reports
of importers, exporters, and industrial concerns. It appears that such
reports are made only four times a year, which should not involve an undue
amount of labor or trouble*
The contents of Mr. flsr&itr's memorandum were explained informally
by Mr. Koppang, of this SlflsliKf to Assistant Agent Xoung of Chicago
who stated that Mr* Dawes n§£ apparently overlooked the fact that the
reports were being made pursuant to an Executive Order and, furthermore,
that in view of their value to the Board no further consideration need be
given to their possible discontinuance. Mr. Young was requested to explain
Reproduced from the Unclassified I Declassified Holdings of the National Archives
dec la s si f ie d
^
Authority
-
2
3062b
-
the matter to Mr, Dawes and to invite him to raise any further questions
on the subject that he night have. Mr. Young suggested that the matter
be dropped as he felt confident that the explanation regarding the need
and use of the reports would satisfy Ifr. Dawes completely.
3.
IShy the reserve banks could not have copies of newly
issued regulations in their possession when the regu *Y **'
lations are released to the Press by the Board of
/ //
Governors, as it was embarrassing to the reserve banks
when inquiries were received to have to advise the in i . S 2.
quirers that the reserve banks had nothing official in
their possession pertaining to the information sought.
(Raised by Mr. Pett of Chicago.)
The question here raised was submitted to Secretary’s office and
Mr. Carpenter has investigated and prepared a memorandum thereon, which
is attached. It is difficult, in the light of the information contained
in Mr. Carpenter’s memorandum, to determine which of the regulations Mr.
Pett had in mind. In an informal discussion Mr. Young stated that he
believed Mr. Pett was probably thinking of Regulation U, which he recalled
was not received by the Reserve banks until after it had been released by
the Board to the Press. However, Mr. Carpenter has advised that Regulation
U was sent to all Federal reserve banks by wire on May 25, 1936, and was
not released to the Press until May 26, 1936. In any event, it is not be
lieved there will be any further cause for complaint in this connecU on in
view of Mr. Carpenter’s statement that, "X have discussed Mr. Pett’s comment
with Mr. Thurston and he has agreed that in connection with future releases
or amendments thereto no release should be made to the Press until copies
are in the hands of the Federal reserve banks".
Mr. Young promised to pass the above information on to Mr. Pett.
Why the order requiring the licensing by the Secretary
of the Treasury of banks admitted to the System had not
been rescinded at least in the case of banks which had
been operating on an unrestricted basis for many years.
(Raised by Mr. Young of Chicago.)
It is understood that the original purpose of the Executive Order
requiring the licensing of member banks was to provide a means of effecting
an orderly opening of sound banks which had been closed as a result of the
President’s Proclamation causing the banking holiday. Nevertheless, under
the regulations of the Secretary of the Treasury all State banks are re
quired to obtain a license from the Secretary of the Treasury in connection
with admission to membership and all newly organized national banks are
also required to obtain such a license. In addition to providing for an
Keproduced from the Unclassified / Declassified Holdings of the National Archives
dec la s si f ie d
Authority
- 3 -
orderly reopening, the object of requiring banks to be licensed was to
give the Secretary of the Treasury control over the banks, with partic
ular reference to foreign exchange transactions, the payment or exporta
tion of gold coin, gold bullion, and gold certificates, and it is no
doubt because of the latter activities that the order requiring the li
censing of member banks has not been rescinded. It is understood that
the Secretary of the Treasury has in no case refused to issue a license,
upon the recoamendation of & Federal reserve bank, to State banks joining
the System, and, while it would appear that the requirement is at present
largely one of routine form, the matter of control, nevertheless, over
the activities referred to may not be without significance. 1 do not feel
that it would be proper for the Board or any of the Federal reserve banks
to take the initiative in attempting to obtain a cancellation of the Exec
utive Order at this time, and, in an informal discussion, Mr. Young stated
that he was perfectly willing to drop the matter, that he had, as a
matter of fact, raised the question only because he thought it a&y have
been overlooked by the Secretary of the Treasury, and that there was
little extra work or effort involved in forwarding the recommendations
in connection with the few cases of banks joining the System.
The question was also referred to Counsel’s office, and there is
attached a memorandum dated May 28, 1936, which outlines the history and
apparent purpose of the order, prepared by Mr. Cherry.
5.
f
Reasons for delays at the Board’s offices in acting
upon applications for meHibership.
This question, which was raised by the Federal Reserve Bank of
Cleveland, is phrased as a general question. It is understood, however,
that the question was raised in particular reference to the Geo. D. Harter
Bank, Canton, Ohio, and, to a lesser degree, to the Savings Deposit Bank
and Trust Company, Elyria, Ohio. Each of these cases presented unusual
circumstances, particularly the Geo. D. Harter Bank, which presented a
question of policy. The cases will be discussed more fully later.
During the 11 months1 period July 1, 1935 to May 31, 1936 the Board
has acted upon 56 applications for membership.
Four of these cases were held for 50 days or more before approval.
In each case unusual circumstances were presented; two were held for de
termination of matters of policy, one was held in abeyance pending enact
ment of legislation which would render it eligible; and one was held pending
developments in a merger program.
Reproduced from the Unclassified / Declassified Holdings of the N atio n alA rch ive^ ^ ^ ^ "*"™
d e c la s si f ie d
,4
_ -
Authority V )M D 3o02t,
- 4 -
The following summary will show the average time between receipt
and final action on the applications for membership received during the
period#
Average Ho.
of Working Days
in this Division
Average Ho.
of Working
Days until
Approval
So.
Average Ho,
Calendar Days
Elapsed
56
22.4
10.
17.3
4
70.5
31.1
54.8
52
18.7
8.4
14.5
All cases acted on
7-1-35 to 5-31-36
Special cases referred
to above
Other cases acted on
7-1-35 to 5-31-36
In cases of urgency or where there is reason for special consideration
and treatment, the Board and the Staff have cooperated in endeavoring to
expedite an application. In this connection it is noted that the applica
tion of the Elyria Savings and Trust Company, Elyria, Ohio, was received
on Monday, May 4, 1936, and approved Monday, May 11, 1956, one week later.
The circumstances regarding the application of the two banks to which
it is understood that the Federal Reserve Bank of Cleveland has specific
reference were as follows:
Geo. D. Harter Bank,
Canton. Ohio
Application received March 3, 1936
Application approved May 5, 1936
The long delay before approval of the application of Geo. D. Harter
Bank was due to the determination of a question of policy regarding
the condition of membership requiring the bank to show separately
the bank's investment in banking house and other real estate carried
in investments and loans. The same question was under consideration
at the tine in connection with the request of the Union Trust Company
of Maryland, Baltimore, for modification of a similar condition of
membership. For the reasons set forth in the memorandum dated March 17,
1936, the Division recommended that such a condition be not prescribed
in the case of the Geo. D. Harter Bank or in other similar cases, feel*
ing that it is more properly a general condition to be handled through
the call report than a question of a condition of membership in a partic
ular case.
The matter was discussed informally with Messrs. Broderick, McKee,
Ransom and Morrill. The situation regarding the call report was com
plicated by reason of the differences in opinion which had delayed the
adoption by the Comptroller of the Currency, the F.D.I.C., and the
Board, of a revised call report which would be substantially uniform
for the three agencies and which would show such indirect ownership
of banking house and other real estate.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlUD
- 5 Following the discussion referred to, the Division of Bank Operations
was requested to suggest a method of showing the desired information
in the Board*s form of call report regardless of whether the Comp
troller’s form was revised accordingly, and the application of the
Geo. D. Harter Bank and the request of the Union Trust Company of
Maryland for modification of the condition were held in abeyance
pending a study of such procedure.
Mr. Fletcher was advised informally by telephone of the status of
the bankfs application and the reason for its being held in abeyance.
He was also advised that in case of urgency we would endeavor to have
the application acted upon but that we would prefer to hold it until
the question of policy was determined. It was suggested that if he
thought it advisable he could inform the bank that the delay in act
ing upon the application was not due to questions as to the financial
condition of the bank but to a question of policy as to the method of
treating certain accounts. Ur. Fletcher advised that the proposed
procedure would be satisfactory.
Following reference of the question to the Division of Bank Operations,
it seemed impracticable to cover the situation at the time by modifica
tion in the form of the Board's call report. Accordingly, the applica
tion was taken out of suspense and resubmitted with the original recom
mendation of the Division. At the same time the Division recommended
that the condition of membership of the Union Trust Company of Maryland
regarding publication of reports be canceled. The application of the
Geo.D. Harter Bank for membership was thereupon promptly approved and
the condition of membership applicable to the Union Trust Company of
Maryland canceled.
The Savings Deposit Bank and
Trust Company, Elyria, Ohio
Application received March 27, 1936
Application approved April 28, 1936
This bank was a reorganized bank, and, as frequently la true in such
circumstances, the application presented some complications. The
Division had to develop some additional information from Cleveland re
garding the possibility of a merger of the applicant and another bank
which we heard in Washington was under consideration but of which Mr.
Fletcher had not been advised.
The
the
had
the
file was held longer than usual in Counsel's office because of
fact that, in addition to the usual review, Counsel's office
to determine whether a corporation organized in connection with
reorganization of the bank was a holding company affiliate.
It is intended that the question of delay in acting on membership
applications will be discussed informally with Mr. Fletcher of Cleveland
at the first favorable opportunity.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority yJMD3oQ2fa
-
6.
6
The matter of uniform allocation of expenses on
functional expense reports, (Raised by Minneapolis)
You have indicated a desire to discuss this question with Mr. Smead
and me. I shall be glad to do so at any time you may suggest.
7.
The Board’s reason for permitting the renewal of an
Interest-bearing certificate of deposit to be dated ^
as of the maturity of the original certificate if
renewed within tela days after maturity of the original
certificate, (Raised by Minneapolis.)
This question, as you have indicated, has been disposed of through
the action taken by the Board as outlined in a letter of May 18, 19S6,
(X-9592).
I shall, of course, be glad to discuss further with you any of the
questions covered in this memorandum at any time.
SUMMARY OF MEMORANDA ATTACHMENTS
Dated May 25, 1956, by Mr. Vest regarding advances under .‘Section 10(b).$
Dated May 26, 1936, by Mr. Gardner regarding necessity for obtaining
fcU t* 3
reports on foreign transactions.
*
Dated lay 21, 1936, by Mr. Carpenter regarding press releases on Regu-/^/*-^
lations.
,
f ,
Dated May 26, 1936, by Mr. Cherry regarding the continued licensing of
■<*
banks.
,■
Dated June 16, 1936, By Mr. Koppang regarding telephone conversation
(%jU 3 % ?> **•3
with Mr. Young of Chicago.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
~~
r
DECLASSIFIED
Authority VlUDaoozfc.
Of T
Kay 28, 1956
Division of Examinations
Hr* Cherry, Assistant Counsel
Licensing by the Secretary
df the Treasury of banks admitted to
membership In the Federal Reserve
System*
This refers to Hr. Koppang's memorandum, dated May 21,
1936, requesting this office to give consideration to the following
question raised by Mr. Young, Assistant Federal Reserve Agent at
the Federal Reserve Bank of Chicago, and advise as to whether there
are aay steps which nay be properly taken in connection therewith
at this time. The question is as follows*
"Why the order requiring the licensing by the
Secretary of the Treasury of banks admitted to the
System had not been rescinded at least in the case
of banks which had been operating on an unrestricted
basis for many years. ■
Under the provisions of the proclamation of the President
of March 6, 1955, declaring a bank holiday, it is provided, in part,
as followst
"Daring such holiday, excepting as hereinafter
provided, no such banking institution or branch shall
* * * pay out deposits, make loans or discounts, deal
in foreign exchange, transfer credits from the United
States to any place abroad, or transact any other
banking business whatsoever.
"Daring such holiday, the Secretary of the
Treasury, with the approval of the President and under
sach regulations as he may prescribe, is authorized
and empowered (a) to permit any or all of sach banking
institutions to perform any or all of the usual banking
functions * * *."
The proclamation of the President, dated March 9, 1955,
continuing In force the bank holiday proclamation of March 6, 1955,
provides that:
"All the terms and provisions of said proclamation
of March 6, 1955 and the regulations and orders issued
thereunder are hereby eontimed in fall force and effect
until further proclamation by the President."
Reproduced from the Unclassified / Declassified Holdings of the National Archives
d ec la s si f ie d
_ ’
Authority
Division of Examinations —
2
By
virtue of this proclamation, which has not been revoked or
rescinded, the proclamation of March 8, 1953, declaring a bank
holiday and the regulations and orders issued thereunder are still
in fall force and effect. In other words, the bank holiday is
still legally in existence*
Under the provisions of the executive order of the Presi
dent, dated March 10, 1955, it Is provided thatt
•The Secretary of the Treasury is authorized
_ and empowered under such regulations as he aay pre
scribe to permit any member bank of the Federal Re
serve System and any other banking institution or
ganized under the laws of the United States, to per
form aay
all of their usual banking functions,
except as otherwise prohibited.
or
*
*
*
*
*
*
"All banks which are members of the Federal Re
serve Systtrn, desiring to reopen for the performance
of all usual and normal banking functions, except as
otherwise prohibited, shall apply for a license there
for to the Seormfcary of the Treasury. Such application
shall be filed immediately through the Federal Reserve
Banks. The Federal Reserve Bank shall then transmit
such applications to the Secretary of the Treasury.
Licenses will be Issued by the Federal Reserve Bazik
upon approval of the Secretary of the Treasury. The Federal
Reserve Banks are hereby designated as agents of the Secre
tary of the Treasury for the receiving of application and
the issuance of licenses in his behalf and upon his instruc
tions."
Section 4 of the Saergency Bank Act of March 9, 1955, pro
vides, la pirt, as followsi
"In order to provide for the aafer and more ef
fective operation of the National Banking System and
the Federal Resexre System, to preserve for the people
the full benefits of the currency provided for by the
Congress through the National Banking System and the
Federal Reserve System and to relieve interstate com
merce of the burdens and obstructions resulting from
the receipt on an unsound or unsafe basis of deposits
subject to withdrawal by check, during such emergency
Reproduced from the Unclassified I Declassified Holdings of the National Archives
dec la s si f ie d
Authority
Division of Examinations — 5
period aa the President of the United States by
proclamation may prescribe, 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*"
A criminal penalty is provided for violation of this section of lav.
Pursuant to the authority quoted above, the Secretary of
the Treasury prescribed the following form of licenses
"IiICEBSI
"The______________ o f _____________________
is hereby permitted to open on _ _ _ _ _ _ _ _ _ 1983
Its offices in the following places
and to perform Its usual banking functions excepts
"(1) To the extent prohibited In the executive
order of the President of the United States issued on
March 10, 1933 (an extract from which is printed hereon):
”(£) To the extent limited or prohibited by any
executive order of the President or by regulations of
the Secretary of the Treasury*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority HMD 3 0 0 2 ^
Division of Examinations — 4
"This license nay be revoked in whole or in part by
the Secretary of the Treasury at any time*
•Issued by direction of
"W. H* Woodin, Secretary of the Treasury
•Federal Reserve Bank of _ _ _ _ _
"By_________________________
Governor
The extracts referred to in the license relate to the prohibi
tion upon the export or removal from the United States of any gold coin,
gold bullion, or gold certificates} the prohibition against the paying out
of gold coin, gold bullion, or gold certificates; the withdrawal of any cur
rency for hoarding; and to engaglxg in any transaction in foreign exchange*
The above form of license has been amended in order to conform
to subsequent proclamations and executive orders of the President relating
primarily to the withdrawal of gold coin, gold bullion, and gold certifi
cates and to engaging in transactions in foreign exchange.
While It would seem that the original purpose of the license was
a means of effectlig the orderly opening of sound banks which had been
closed as ft result of the proclamation of the President, the Secretary
of the Treasury nevertheless advised the Board thats
"State bank upon admission to membership in
Federal Reserve System must secure license from the
Secretary of the Treasury to perform all usual and
normal banking functions except as otherwise prohibited.
Understand Federal Reserve Board only admitting to mem
bership such banks able to operate without restriction*
License will be Issued upon your recommendation* *
The above quotation was contained in a telegram to all Federal
Reserve Agents, dated May 24, 1955 (Trans* 1804, Counsel's Office File
460.5-X). It is not known when the Board received this advice from the
Secretary of the Treasury as the Board's files and correspondence in con
nection with this point appear to hare been lost*
It is also understood that newly organised national banks and
State banks conrertlng into national banks are also required to obtain
a license from the Secretary of the Treasury before they may lawfully
do business*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority
Division of Examinations — 5
It seems apparent from the foregoing that the object of
a license was first, to effect the orderly reopening of banks which
ware closed during the bank holiday, and second, to glre the Secre
tary of the Treasury control over each banks with particular reference
to foreign exchange transactions, the payixg oat or exportlig of gold
coin, gold bullion, and gold certificates, and the withdrawal of cur
rency for hoarding, and it is probably for this reason that the licens
ing by the Secretary of the Treasury of banks admitted to the System
has not been rescinded eren in the case of banks which had been operat
ing on an unrestricted basis for many years* Control over the natters
just referred to Is maintained under the right of the Secretary of
the Treasury to revoke a license*
Upon inquiry, I hare learned that the Secretary of the
Treasury has in no ease refused to issue a license to a newly or
ganised national bank or a State bank being admitted to membership
in the Federal Reserve System upon recommendation of the Comptroller
of the Currency or the Board*
In the event it should be determined to take steps to re
scind the order requiring the licensing by the Secretary of the Treasury
of banks admitted to the System, it would seem appropriate to first
take the matter up with the Secretary of the Treasury, and, if he is
agreeable to the proposition, it is believed that he is the proper
person to adrlse the President that the proper proclamations and
executive orders should be modified accordingly* It is not believed
that the Secretary of the Treasury has axgr interest in the normal
banking activities of the banks of the nation, but his interest lies
primarily In affecting an enforcement of the provisions of lew and
the proclamations and executive orders of the President relating to
the withdrawal of gold coin, gold bullion, and gold certificates,
transactions in foreign exchange, and the withdrawal of currency for
hoarding* Since the banks are no longer In possession of gold coin,
gold bullion, and gold certificates as the result of the provisions
of the Gold Reserve Act, and since there is little likelihood of cur
rency being withdrawn for hoarding, and in view of the foreign ex
change position of the United States, it may be that the Secretary of
the Treasury tould be willing to recommend to the President that
licenses be no longer required for banks being admitted to membership
in the Federal Reserve System*
Bote; If the Board decides to take
this natter up with the Secretary
of the Treasury, it is suggested
that, before doing so formally,
Alfred K* Cherry,
a representative or representsAssistant Counsel*
tlves of the Board discuss the
_ _ _ _ _ _ _ _
matter informally with the appropriate person or persons in the
Treasury Department in order to avoid any possible misunderstand
ing as to the Board's position In the matter and In order to de
termine whether or not there is any objection from the Treasury
standpoint to terminating the licensing of member banks.
B. X* W
.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlK D3002b
rm F . R . 131
BOARD O F G OVERNORS
OF THE
COPY
FED ER A L RESERV E SY STEM
Office Correspondence
To______ Mr. Wingfield
Date___
Subject:
From_____ Mr- Koppang
16— 852
Mr. Paulger has received a memorandum from Mr. Broderick
in,which he refers to certain questions raised by officers of three
of the Federal reserve banks in connection with recent conferences he
held with the official staffs of such banks, and has requested that,
if possible, the various questions raised be followed through to a
definite conclusion.
The following question was raised by Mr. Young
at Chicago:
"Why the order requiring the licensing by the
Secretary of the Treasury of banks admitted to
the System had not been rescinded at least in
the case of banks which had been operating on
an unrestricted basis for many years."
It will be appreciated if you will give consideration to the
question raised by Mr. Young and advise whether there are any steps
which may properly be taken in connection therewith at this time.
In handing Mr. Paulger a memorandum to Mr. Wyatt regarding
another question raised, Mr. Broderick stated:
"There is also attached a memorandum addressed
to Mr. Wyatt with reference to one of the ques
tions raised. I am not sendix^ it to him direct,
believing it will be better to have all the
questions cleared through you."
Reproduced from the Unclassified I D< classified Holdings of the National Archives
DECLASSIFIED
Authority VlMPaoozfc
Office Correspondence
FEDERAL RESERVE
BOARD
11, 19S5.
fDate_October
,
Subject:Miners Bank and Trust Conqpany,
To___ Eilea.
The "Narrate!!" wire received today on this bank from Philadelphia stated
"membership is to be effective October 14, 1935".
I called Mr. Hill at
t o
Philadelphia and asked for an explanation of the reasons for this method of
handling and whether the Federal Reserve Bank stock was actually being issued
as of today.
I was advised that the Secretary of the Treasury had not as yet
licensed the bank as a member and for this reason, although the funds in payment
of the stock had been received, the issuance of the stock would not be made
until the Secretary's license had been obtained which he expected would be not
later than October 14.
1 was told that the Federal Reserve Bank stock had not
as yet been actually issued and that the funds received in payment thereof were
being earried by the Reserve bank in suspense account.
I explained to Mr. Hill
that this procedure was a little unusual in view of the wording of the code
word "Narratell" that bank "has today made required payment on account of sub
scription to stock of this bank".
Mr. Hill stated that he now recognized that
the matter had not been handled correctly and that we should disregard the
telegram, and that a subsequent "Narratell" wire would be sent the Board when
the bank had been licensed and when payment for the Federal Reserve Bank stock
had been accepted and the stock issued.
eproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority
FED E R A L R E S E R V E BANK O F CHICAGO .
230
SOUTH
LASALLE
S TREET
J
-f/
V
OFFICE OF THE
C H A I R M A N O F T H E B O A R D AND
.Z
October 4, 1935
FEDERAL R E S E R V E AGENT
Federal Reserve Board
Washington, D. 0.
Gentlemens
For your information, I am enclosing copy of a letter received
today from Mr. Nicholas H. Noyes, Secretary and Treasurer of Eli Lilly and
Company, Indianapolis, who is also a director in this bank.
I recognize that his suggestion is not feasible, but it does
bear greatly on the question which we have discussed so many times of
coordination of the various a.ctivitie.fi,.in order that these important
matters may be expedited.
I have heretofore expressed to some of you the hope that the
R* F. G. in its present activities relative to preferred stock partici
pation in the various banks, would avail itself of the information which
we have. We are, of course, familiar not only with the banlsbut with
the management and with the communities, and if the R. F. C. sends a man
in there, cold, to judge of its participation, as has been the case
sometimes heretofore, I am afraid that mistakes may be made and at least
information and assistance which we could have given them will not be
taken into account, and this may result in sj^&e-s^rious delays,
Very truly
EMS HH
✓
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority
COPT
ELI LILLY AND COMPANY
INDIANAPOLIS, U.S.A.
October 2, 1933
Dictated Sept.29th
Mr. Eugene M. Stevens, Chairman
Federal Reserve Bank of Chioago
Chicago, Illinois
Dear Mr. Stevens:
There is a strong feeling here among some of our better bankers
that the re-opening of closed banks and similar matters could
be handled much better and more expeditiously if it were ex
clusively under the direction and authority of the Federal Reserve
Bank of the district in which the individual banks are located.
The gentlemen with whom 1 talked seem to think that with the
Comptroller of the Currency aad the R. F. C. etc. having a finger
in the matter, political pressure at Washington is bound to be
brought in a good many cases. It is also felt that Washington
cannot be anywhere near as closely in touch with these local
situations and does not know the strength of these local banks
as the Federal Reserve Bank of the district or the Chairman of
the Federal Reserve Bank of the district would. I am becoming
a little concerned over the substantial number of banks which
seem to be closing up now but which were opened last March or
later as "safe* banks.
I am sending this on to you simply as a pertinent comment of some
of our more responsible bankers. If you think this criticism is
sound perhaps some adjustment of the arrangement that has been
prevailing will speed up the opening of such banks as can be put
in condition promptly.
With kind regards, I am
Sincerely yours
HHN:EJ
HL
(Signed) N. H. Noyes.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority V)UD3oozfc
^
ks'
A)
L iA v
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority tiMDaoozfc
L HES£RV£ BOARD Fill
fficeCojresponu^nce
Tn
Mr. Morrill
- Mr. Martin'_____
)ate August
Subject:
Fifom
Fife ____ Mr. Leonard
/ //ir.^t. B. Williams, Federal Reserve Agent at Cleveland, telephoned
for(^CUt XtIQN
Gov- B l a c k today.-tQ..S3y that they had scheduled meetings beginning today, Tuesday,
Mr. Hanr)iin-4^->
with representatives or the directors of all of the hanks
Mr- James—.
Mr»Mageel...which..were,.emergency eases, asking them to come into the reserre hank
Mr.
that the reserve bank might obtain first hand information as
t y L r f m - i m i l M M * had changed since the date of examination.
Mr. O'Conner. . 1 ^ --------Mr. Morrill
Y.
The directors of one bank with whom they had conferred had gone
■horns Bud were to report within a week how the #500,000 of necessary
Mr. Paulger
-V^C.
Mr, Smead
*^4® could be raised.
This was a national bank and the emergency
es.’include other national banks as well as State member banks.
Mr, G/ojder>wjeher.
Mr, \3 W H A S -.. .'T™.Jbc»..Williams stated that he did not want to take any firm position
lease note - initial
recommendations in these cases until every resource had been ex
t d L
hausted.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority V)HD3002b
Federal Reserve Board
Washington, D. C.
Mr. Morrill
Gentlemens
Thank you very much for yours of the eighteenth with
reference to the license form which was prescribed by the Treasury
Department. Of course, we followed that form in the actual issuance
of the licenses here, but I have always felt, as I think you do, that
the Treasury at that time did not consider this to be a definitive
action and conferring of authority in any particular office. ^ am
quite sure that if the Treasury had considered the relationships and
the policy and procedure in the Federal Reserve banks, in this
connection, to the extent of determining definitely where the
authority should lie, they would probably have acted differently.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlHD %fl02Cs>
August 18, 1933
Mr* Eugene M* Stevens,
Federal Reserve Agent,
Federal Reserve Bank of Chicago,
Chicago, Illinois*
Bear Mr# Stevens:
In connection with the queetion Which arose dur
ing the meeting of the Federal Reserve Agents with respect
to the procedure of the Treasury Department in cowaunieat
ing with the Federal reserve banks in regard to the issuing
of licenses to member banks to reopen, I have obtained a
copy of the confidential circular addressed by the Secre
tary of the Treasury to the Governors of all Federal Reserve
Banks on March 12, from which you will note that the form
of licenses to be issued provides for signature by the
Governor of the Federal Reserve Bank.
I think this will
explain why the Treasury in most instances appears to have
been coumunicating with the Governor o f each Federal Re
serve Bank.
Very truly yours,
(Signed)
Chester Morrill
Secretary.
Inclosure.
CM-w
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlUP3ot)2fe,
C H A I R M A N O F T H E B O A R D AND
FEDERAL R E SE R V E AGENT
Federal Reserve Board
Washington, D. C.
Gentlemen:
Referring to your letter of July 11J asking for our Attorneyfs
opinbn on the statute of the State of Michigan under which the Pinney State
Bank of Gass City, Michigan, was reorganized> as well as several other
banks - as I have already advised you, our Counsel, who was handling this
matter, has been out of the city and only returned this week.
I am enclos
ing, herewith, copy of an opinion received from him today, which I trust
will answer your inquiry.
If there are further questions with respect
R E C E iV E O
OFFICE OF GEWEBAL OOtJlTSEL
AUG#/61933
.A
>M
.
C3
LL‘
— P.M.
n a iT i^ .
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority HMD aotefc,
(COPT)
Mayer* Meyer, Austrian & Platt
Continental Illinois Bank Bldg*,
Chicago
August 6, 1933
M*
Mr* Eugene
Stevens,
Federal Kgserve Agent*
Federal Reaerve Bank of Chicago,
Chicago* Illinois*
Dear Mr* Stevenst
Wa aoknowladge receipt of /our 1attar of July 13# 1933#
end osin a copy of a letter dated July 11, 1933# which you received
from the Federal Reserve Board relating to the reorganisation of
atata macaber banks located in the state of Wlohigan, under Michigan
Public Act Ho# 8 of 1932 and Public Act of Michigan Ho* 32, cf 1933*
The writer* who is laore or less familiar 4th thia subject, was away
on thia vacation at the tins your letter was received and did not
return until the first of this week, which accounts for the delay
in answering it#
We are of the opinion, as w# have prevlouely indicated
to you, that the plan of reorganisation adopted by th« Michigan
banking authorities complies with the applicable provisions of Act
Ho* 8 of the Public Acts of Michigan for the year 1952 and Act Ho#
38 of the Public Acts of Michigan for the year 1933* Mr* 0*Brian,
Attorney General of the State of Michigan and one of his assistant
attorney generals, as well aa Mr* Levin, of counsel for the Detroit
branch* have also given us their opinion that this reorganisation plan
complied with the atatutory provisions*
Acts similar to the Michigan Acte in question have ba m
held to bo constitutional by the Kentucky Court of Appeals in the
the ease of Dornut v* Dell* 243 ly*, 34y 52 tt*
Sad 80S (1932)
(followed by the same court in the ease of Milner v* Gibson, 61
S#w* (2nd) 272, decided June 6, 1933) and by the Supreme Court of
Florida in McConville r* Fort Pieroc Bank and Trust Co*, 138 SO*
392 (1931)* the Florida statute was alao applied and approved by
the Supreme Court of Florida in the case of Becker v* Arms , 141
So* 136f 80 A* L* K* 1480 (1932)* On the other hand, a somewhat
similar Nebraska statute was held unconstitutional by a Federal
District Court judge in the case of Aherns v* Hebraska State Bank
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority n m >3oo2fc
¥
J /)
Jilt 2 4 1933
Hr* i l l 1la*
ihitifijc Papo*
Holyoko, ltaasaohuoatta*
Boar Sin
Ittfimftt lt nada to
fmr lottor of July 17* 19314 In whiah
you inouiro aa to tho ruloa govornlng aeaoaa to toft dopoalt boxoa
aloaoA national tai Stott bonks*
Tha Proaliontlal Proclamation of Marati 6 f 1933, doolorin* a
iNtnk holiday, author!nod tho Soorotary of tho Troaaury to iaauo rogu«
latlona paraittlng any tanking institution to porfor* any or all ofIto usual tanking funotiona.
Pursuant to tbat authority • tho 3ooa4tory
of tha Traaeury* undor data of Marah 6* 1933* i®*uod tho follow}**
regulations*
/
•All hanking inatltutlona any allow their
austonors froo aaaoas ta tha aafoty dopoalt
toxaa and safoa rontod ta auah auatoaoro* *
On larch 10, I933» tlio Proaldont isauod an Isooutlvo Ordor
which authorlead tho Stato suporviaing authorltloa to proiirUa ragu-
1ation# govornlng tha oparationa of banka ohlah waro not nombora of
tho Fodoral Ranorvo Syatan* aubjaot to oartaln llnitatlone not haro
malarial *
R eproduced from the U nclassified
I D eclassified
H oldings of the N ational A rchives
D ECLA SSIFIED
Authority
ftr.
n illm
&>OZCs>
Ihitiat — a
Aoaoriingly* I f the bank to whleh you r*f#r !• * «aab*r
or tlM £#4***1
a#pTi«*%!♦*
iaauad os tij§
th« t^gmXatiMl
Otharwiaa, tha StjMMi iflt* Mid tli# regulation*» 'if my«
$gr tha $ i*t* aathoritiaa haviag •uparrUion
of tauafc»c *r« control11^*
Tary tmly y~mw»*
|S!p*d1
MOTr™
ClMatar la rr lll.
G HC /ead
abora ia
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlUD
3002b
Federal Reserve Board,
lrashington, D. C.
Gentlemen:
Referring again to yours of July eleventh^asking for
copy of attorney’s opinion witn"~respeci"’io ^reorganization of___
of the Public Acts'^F^MSHigaETToF’^die year 1933, and Act No. 8
of the Public Acts of Michigan for the year 1952, our attorney
who has been handling this matter has been out of the city since
the receipt of your letter. I at once referred the matter to our
counsel’s office, and Mr. Carl Meyer advises me today that he
would like to hold up the reply until the return of his associate,
Mr. Dunn, within a few days.
EMS FC
(iV££Si,Z2 -;ir
fc*03/il333d
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority V1HD3Q0ZC-,
” in, N o . 131
ence
FEDERAL RESERVE
BOARD
D ate
JUly 19, 1955.
Subject:
In accordance with the request contained in Mr* Ballantine's letter
I handed to Mr. Harlan, Legislative Assistant to the
Under Secretary of the Treasury,^on July 19, 1933, copies of telegrams (as^
per copies attached) which were sent to the various Federal reserve banks
dtiring the banking crisis in March, 1933, and which were initialed by
officials of the Treasury Department.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority V1UD3Q0ZC-,
Qatar
fXtiflGB&i
J'SUSEAL BESHKfE
M&roh 6. X933.
Toung
Boston
Eanahar
Cleveland
MoDcrogal
Ctki<tt^£0
IwrilfaMi
gUy
Harrison
Bov Yoxfe
SoaQT
Riohwoild
Martin
St. Louis
McKinney
H03RTi«
Fhlladalphia
Black
Atlanta
0OOS3T
Minneapolis
vpm h$» lagr ?r»otd«»t*o proclamation
authority
^ afcy^ffi,!T
l&tioitt
holiday, i w o t w r y of froaawxjr Ilas l M w d following rog*.
mtUtml or
*$©fS
Stat* faf&ittg inatltatiaa may 8X6fOiiC
lit uao&X fcestidiig f m o i l w s to m i l axtant
aad
m
<8fj»t JfranclsOO
shall fco ab*olut#ly
mmwmxy to mast
for fbod, faedtetiio, othar
for ti» jjaysaBiit of
m
it situation shall pentlt
tha noods of its oonamlty
of U f o v for the
nmmX sala*i»* and wages,
mliof of distross,
for aooossary w r s a t «c-
panditarns for tha w ^ o s ® of maintaining sraaloyiasat, and for other
similar essential
i
psxmmm
tataMt to |tiiWiwttS
pxwidad, I b w m i , 3*»t (1) 8*§i7 prasHjrtion
or t v lanxisoessajy trllhdr&SEl of eojv
ranoyj (a) Ho Stata hanking institution shall sstgeNP In any transaction
nadar this *sgtaXat3M which l« In violation of Stato or Itdoral law or of
jugr mp] nti.wi tssaad thsrsundarj (3) So national
shall saeag* in m^r transaction loador this section uhieh is In violation
of any I*edaral
%m or of any
of tha Oommoart
ordar or rsgolatioo issued 1>y tha Ooarotroller
(4) Ho gold or sold oartifioatss shall bo paid out*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority YlNDaoozfe,
flo-pm
y
4BUm
m m a s s s » m jm
VO(& Zm
"banking institution and its directors and officers will be held
strictly accountable for faithful compliance with the spirit sn& pur
pose as wa'll as the letter of this regulation*11 THfqSJQSB*
Morrill.
Initialed byi
im
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlUDaoozfc.
Ootar
tm M sum
IXSSSAli HSSESfl BOABD
ElSEDKKK®
March 7, 1933
tm m e
Bottom
iteaueshar
Cleveland
McDcrogal
Chicago
* * ...
JL *
^
Martia
lew Yoffc
S S L imI
St. limit
Sorris
Phlladalphia
Atlaaata
□eery
Miaaeapolls
fr&n*.
l a i u City
iiorfifcujty
Saa JVaztciaoo
1C62. tJader Hi* authority conferred t^oa hSai by the President»s
proclamation declaring a bank holiday the Secretary o f the fraaaory 1m aathorised tha M o ra l n « e m banka to aake sfuch transfers of oredits or foods fro»
9M Federal ro servo bvdc Ho aio th tr IM flfsl reserve bank or IhhIbk
Gold Settlement fond, or otherwise, as the M o ra l Bseerve Board say
the
pnm i t ,
aad to engage ia each transactions a t hare been authorised and/or repaired bgr
the following reeolution adopted today by the M o ra l Beeerve Boards
Q
jtJG
fS
WHHQtlS, oa the 6th day of Jiarali, 1933, the ratio of to ta l raaorvaa of tha
M o ra l Bsaaxta Bank of Vow Toxic to Its deposit aad M o ra l reaerve not*
lia b ilitie s eoafeined was approximately 26*6 par oeatf
WHEUUS, on saoh data tha ratio of total reaorvas to deposit aad
Federal resorva aota liabilities eowhlaad of
aaoh of the other M o r a l reserve
hanks was substantially ia excess of aadh ratio of tha M o r a l lieserve Bank
of Vow Yoifcj and
WHXBSAS, it ia desirable to equalise tha ratio of tha total reserves
to dapoait aad M o r a l reserve note liabilities oosfelnod of the M a s a i
reserve hanks ao far as ia consistent with existing conditions;
901 v CTffiXfOHS, BS If
maovm by tha
M o r a l Beserve Board,
that, pursuant to tha power conferred upon it by subsection (b)
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority V)HD3oozfc,
J2&S9&
tm & m m
vmrmQAT.
. aof Section 11 of the federal Beserve Act and on the affirmative toto of
five
mmbmr* of
tlso said Board, the federal Beserve Banks of Boston,
Cleveland., Eichnond, Chicago, and St. Louis a n hrn^r required to rediscount
not later than the close of hasiaoso on March 8, 1933, for the federal
Beserve Bonk of too fork discounted paper of the federal Beserve Bank of Be*
folk in the ananrnt oet oat below opposite the muses of tho M o r a l Beserve
Baak* of Boston, Cleveland, Ueteoni, Chicago aad St. Lonla, respectively,
provided, however, that If
may of
suoh banks shall purchase obligations of
the United States Oovexiaasat aad/or bankers acceptances aad/or bills of
exchange fz«a the federal Beserve Bank of Bo* Tosfc, any such M o r a l Beserve
Baak shall ho relieved of tho recp&iranent to redisoooat for the federal
Boeerve Baak of
lew
York disocmnted paper of the M o r a l Beserve Baak of Xev
York to tho exteat of the
mmm% of Uaitod
States Government obligations
aad/or haaksrs acceptances aod/or hills of exchange so purchased,
federal Beserve Baak of Bostoa $30,000,000.
federal 3®serve Baak of Clevelaad $S0f000,000*
federal Besorvo Baak of Biohaoad
$10,000,000.
fsderal Besorvo Baak of (Meags
$160,000,000.
M o r a l Beserve Baak of it. & m i s
$16,000,000.
All of tho above rediscounts shall ho made at the rate of 3 1/2 per oeat
per aaawa«
Any federal reserve hank la authorised to soil
obligations of the
United States Oovensaent aad/or bankers11 acceptances aad/or
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority MUD
3002b
Qppy
P a ra n a
a il
p g e rm r a
WASSXYCHEQ9I
bill* of exchangs to aajr otter M « n a niervi basil: and oaoh M o r a l reserrs
baaJt is ntteritiA is any ,raflk otic to purdaaso obligation* of Hit Uttitod
Statos Qovonnoat and/or M o i f i 1 acoaptaaots aod/or M i l s of exchange fioai
ottit fadaral rosorw banks.
Any Jfsdo*al rosor*a bank aay nates sueit ferassfors
foods through ths
Qold
Sottloasat
tad,
or othorwi«e,
of credit
*s shall
®f
bo aocossaxy
to aaray out tbs tmisactio&s roqpirod or aathorlsod bgr this resolution.
uwyrosa.
Morrill
Initialed byt
»Hf
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlUD3oozfc,
Omar
T&IXXWM
ireraeBAT, BBSSiyi
WASHBKJfOff
March 11, 1932.
Totmg - Beaton
Harriaon H Me* Toxic
lorrls • '
em
limeher - Cleveland
TRASS. 1621
Seay - Blcteond
Black * Atlanta
MdDcts^al fluff?
Martin - St* tools
Geexy - MiJmeapclis
Hamilton - Kansas City
MeUmugr —
Calkins - San Francisco
*!he Secretary of the treasury ins tracts the IfedsmX reserve
tanks, until farther advised, to lover the standard of fitness on all forms
of enrrsiicgr *&ieli they ara permitted to pay out tinder the regulation* of the
Secretaxy of the freasnxy lamed pursuant to the Proclamation of the President
of the United States*
pmposes
redea$>tlon.
Only such currency as clearly cannot be used for farther
be c&nceled ***<& forwarded to
for
She federal reserve baizes and their branches are also directed
to exercise discretion In noogftjlng with denominational requests for eorrenqr,
in the light of their reserve stocks in the various denominations*
In making
payments ef corrency, particularly in the larger denominations, the Federal
reserve banks are also directed to keep in mind the President* 8 proclamation,
the Szecntlve Order, and the aegulations of the Secretary of the ftreasnsy witk
respect to hoarding*
Shis telegram Is for the infom a t ion of the Federal
reserve banks and branches and is not to be given publicity.
m m uM
Assistant Secretary of fxeasnxjr.
Initialed by*
W ffi
MB
JHB
m
7SE
m
fSB
3BMM
sic
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VJMDaoozfc.
Qatar
7KDX8JU* mcsMFBya
w jm m w m
March 6* 1933.
Young,
Boofcm
1—wlrviHi
JuuLftTX
OBf
low Tork
Jtorria,
Philadelphia
Ifenohor,
Cleveland
HcDtragal,
Chicago
imto*4 mpii^
oily
9187*
Kebnond
Martin,
St. S**ia
2&Uae
Bladk:,
Atlanta
Qe«xy,
Minneapolis
Calkin*,
8 m Stranda©o <
0B&MP aathorily ooaferood vpon his by Freeidentis pro fflwntloi
bank
idiqr, Seorotary of Treasury lias amthorired a ll IM*
of*! x t i t m banka and a ll ofchor banking inatitatioa* to make change by
Of ciirresifly and/or ©Ola of ▼artoaa
out# foi* sos
exactly eqnal anomi of currency and/or ooii of other towals&tlQAt but no
gold or gold certificate* shall bo paid on* or-n w d ia m H w g change,
iaxt ef fbaal ZMKlfttiau will bo trananitted to
won latar.
Pleaae a
▼too all ronnniig msuVBSiofts ia y o w autinct as soon &» possible.
&01HXLL.
In itia le d b y:
mat
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlU Daoozb
TKDXBALSSS8KVV W)Agf>
WJjSSXBBSOl
M a rc h
Boitoa
i 9
Basilton
City
ClrwlMid
H&rrlwm
Martin
St. lawt*
torit
Phllad*lpMa
QMqr
UIbBbv
ouiuJTni
'spoil
*^y pr#®icta®t* 9
i m l n i t l o a declaring talk holiday, g***wtaiy
Iffiffft^ ffrllnwl’vr
aagr allow th«lr
t Qnftt#.
mwtmmr* f t M
m
ju *
** frmmiey *•*
4H.^f iNEttdtitiig .iSMilSSsSSflaB*
«oo»m to th* aafftty deposit boxes
lwv9rx.1i
mtialid v >
1933*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
f
Authority UNDaoozfc.
Cotflr
m m sm
w m mftAi. BX$X8f3 BOARD
WASBI&GftDV
Mandi 6, 1933.
jfe&cher
Cleveland
Twang
Boston
McDomgal
Chicago
It&rtln
St. I*»is
SwtSk
Horris
Philadelphia
ton
Kansas Citgr
i*L.f
Qeexgr
Miaaaapolia
Atlanta
Uader a&thority conferred upon hi* hjr FttflMatl'i Proclaaatloa
declariag
holiday, Secretary of* T*m
Anmiy has
the followlag
TBgolatiftBii <faaia %11 baakiag iastitvtiom nay tBpom regat *t return iataot
and fltiwkt reatrictioa all cash, shocks, aad other itaa» delivered
for deposit or collection which were received after tha last closing
of fcasiaess hoar* and have not fceea eatered on the hooka of fosh
banking institution.*
unquote.
Morrill
In itia le d hyt Itffll
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
SKbBEHXAll
YJSSKEt&X* MBSXBVM
wAmnmmx
M a rc h
i v
1933*
Tmmg,
Boston
2fe&o3se?t
Cleveland
MoSwagal,
Chicago
SUTfiflOllii
wm m m
Saagr,
Martin
St* Loui*
jjbXIm b
Iorri«,
Philadelphia
yifMjair
Atlanta
Oaexy,
Minneapolis
0o3Jcin»,
Tranoisoo
uiutr asiiooFSiy aoarexroa
ana ay F n s m m * 1! pncitfttUOB
d*£Xaj?ing Imnlr itollda/i SBcoNitazy ojf Yrsaflmfy
regulation q^Bbfllt#
City
S*gtS;
t#SS#B#
WlwDI uOTMu pZwB w*flW9 VB v M B QD0 CUEB CUmMB*
lasiisd
following
Way (MQtiSQAi
IS BCMSOrdifflKW
00
WHp XVwKKuTS* u
wflHl UB1 WPft
States, pxvrldad tiiftt m g o M or gold certificate* sfcall be paid omt.
MOKJtlXJL
Initialed IT!
*W
Mi
1SSI
m
«v
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
r
Authority t)U D 3oozfc
Oonr
piw«ei»Af. xmamnr* nn&iati
m mm wM
Marcto 6, 1933*
Tonag,
Boetoa
dev® land
Sarrleoa,
Seay
lfoQ9*ii{gaX
I w fork
Blaolc
Sosv&a
Philadelphia
Basilton
City
Hartin
it. Strait
Dallas
aooiy
Minneapolis
QaUdUoMi
ft'&XUSifcOO
trader antilority conferred upwi hi* hy President'• proclamation
doolarinis;
holiday Seoratary of SbPSMtiiy' b u l t m d fo* ibUofisg
regulation quote Jvy
iBititelin say aooetpt paynaats In fnn*» or
any other foaa aoeaptable to It on a m !
or ia settlement of obligations
payable *1 or to su*to institution.
MGHEIUu
Initialed lyt
Wtt
m i
at
Of
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
Qotflr
fiaUSEBSI
m m m
m am
m m t
March 6, 1933.
Yotmg
Boston
I&ncher
Cleveland
McSougal
Chicago
Hamilton
Kansas City
Harrison
Sew York
Seay
•jM
Martin
St. I*mls
McKinney
Balias
Uorris
Philadelphia
Blaok
Atlanta
Geery
Minneapolis
Calkins
San Francisco
tinder authority conferred upon him hy President*s proclama
tion declaring bank holiday, Secretary of treasury has issued follow*Ing regulations Qpote.
iny hanking institution may handle aad collect
drafts or other documents in connection with the shipment, transporta
tion or delivery of food or feed products, may pay out or permit the
withdrawal of such amounts of currency as shall he necessary in the
judgment of such hanking institution in connection with such shipment,
transportation or delivery of food or feed products, and may perform
such other hanking functions as may he essential to the shipment,
transportation or delivery of food or feed products, provided, how
ever, that no hanking institution shall pay our or pexsntt the with
drawal of any gold or gold certificates. Hbd Quote.
UG11RILL
Initialed hyi
WBW
I’HH
CM
m r
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority YlKDaoozfe,
flZB.
fsauKiMi
y g m tif. BS81KIB B0A2D
Uarch 6, 1933.
lOTiag
Bottom
B lack
Atlanta
Hamilton
fiasas (Sity
Harrison
lew toxic
UaTfcwy l
^riniiny
Jfeneher
Cleveland
Martin
St, touts
9MQT
Hiobnond
Qeexy
Baa yraa oieoo.
Horris
Philadelphia
under authority conferred open h*» hgr President*s proclaaation de
claring tank holiday Secretaxy of ftmmxf has Issued following regulations t
C£aote Deposits heretofore 2« 08iY»d hy any hanklag institation pursuant to
a i N M K l or legislative authority providing for segregation aad far
xopayasat without restriction nay to paid on dsroiwd, iny banking institu
tion which m s lawfally engaged ia tha haoiaee* of notifiag deposits prior
to March 6t 1933, aay m a t * special tmat accounts for the receipt of no*
deposits i d « l shall he subject to vitfedxtfsal on donsad withont
m j restriction
or limitation and shall ho loept sepaxa.tely ia cash or on deposit la Jtederal
Beserve Banks or iixteotod ia obligations of the united States*
Moral
reserve hanks nay opon special accounts oa their hooks for their meaiber hanks
aad temporarily for noa member hanks sad aagr receive ia such special acoomts
the prooeodo of new deposits received hgr each hanking institutions,
In
making deposits with the M o r a l reserve haak parsaaat to this regulation
tie depositing haak shall ia the case of eadi deposit indicate to the
federal reserve hank by synbol or othexvrise that the fnads so deposited
represent non deposits nade under this regulation,
Upon receipt of saak
deposits snob federal reserve hank shall credit the same ia the special
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority U U D aotefe
s k
iiiejfiiiMni BCMPB31
WAS33S&30S
amotm% mt the depositing bank fesvsla providod for and shall hold ths sase
solsljr t*x r#paymm% lo sacb bank. M s s « & resesnre banka shall porndt His
withdrawal of any part of all of such now dsposits bjr tlis dsposltlng
ba$k without i f IrtcUfli provldsd that His depositing bask shall la #«# >
sfdsr ST rsqoast for withdrawal indicate to His Itodoral reserve bank
by ayabol or otherwise Hist snob withdrawal is to bs sods fins stxch special
aooocuit| prvfioea lsowefsr to&t so osmriag uutiVwitffl nail pay ou* or
permit ths withdrawal of mgr gold or gold aanrtiflcatas.
MfWfSftarr<
Initialed bgr*
HIV
jUB
Sad qnots
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
f
Authority t)KD3oozfc,
Qatar
IStiMQfcOI
WJBBBMM3* 5 X S 89S!91
March 6, v m .
Y om $
Barton
IfaJM&O?
Cleveland
Harrison
Mmr Toxfc
U.'dDcnBtffH
Haniltoa
city
tfartia
St# Louis
Itor^fw^y
nan**
0*0X?
Philadelphia
Atlanta
Minneapolis
Undar authority o a t f t m d upon hi* %
doeXaring
ssgolatle&f
Stan Frandso*
President’s proclamation
holiday deezotaxy of fraaoaay has isrood following
*fhoi» settlement tar ehooks oharged lxgr dxa*««
institutions to ths drawers* aooounts on It* hook* on or M
n
March 4* 1923 is fiiMnploto, sottlasisnt aaay lw cossplstod shoro
traeb settleneat doss not lawlars the payment of aw&ey or cuirsswy.*
Kwinnxx
Initialed byj
HS8T
Mi
IBB
IW
JkCK
at
m
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority V1KD300ZC-,
Qcmr
TKXiBQJUI!
ggttKSflne BOAHD
WASHIW3TOH
March
1933.
Yomtg
Bottoa
Harxitoft
lev Yofk
Philadelphia
Itoaehor
Clotolaad
Bldnmd
B lack
Atlanta
Chicago
Martin
St. Louit
goosy
Ml3BB6#pOll#
tteilltoa
Xintt&c City
HoKlanoy
a m Fraacitco.
T M t r tha authority conferred
wpm hi* tgr the President*e
piQelmtioA of Mardi 6f 1933, dM#lUPi8g a ‘
frfiwfo holiday fcfaf Secretary
of thi Treasury hat
iiftttd Hit
following regulation* "Jny hanking
institution nay deliver to tho peraon entitled thereto properly
identified decwnentt and tecnritiet bold ^
safekeeping.*
Morrill
Initialed hy?
AAS
*«*
scu& institution ffcr
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
I'
Authority VlUDaoozfc
Copy
TKL80BAII
gemtii. HESEHTE BOAH3)
WMMSMWS
March 6 t 1933.
Toning
Boston
Harrison
Kew Toifc
Harris
Philadelphia
lutiiir
Cleveland
Atlanta
Mclkragal
Chicago
Martin
St. Louis
W
n f l m i mm
MG&llIlfeSy
Galkins,
San Tranclseo.
Seaar
Bsnllton
Oily
SOOty
MlBSiipoUfl
Under this authority conferred npo» the Secretary of the Treasury by
tta Presidents proclanation of March i 9 1933, declaring a tank holiday,
3mm
art advised that any tank taring a Inaodi in a foreign country may deposit
collateral in the United States to secure advances to rag 1 branch in a foreign
ecnmt]qr» provided m i l transaction does not involve any transfer of credit
fwsi the United States to * foreign oenatry and any tank taving a branch in an
Insular possession of the United States aay deposit United States Qoverm&ent
securities or other collateral for a similar purpose when raider the President* s
proclaaation advances of local correocy in the insular possession any lawfully
be nada.
tfoodln
Secretary of freasnsy.
Initialed byi
MB
LHH
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority YlKDaoozfe.
Qatar
vjashibgidh
March 7, 1933
loung • Boston
Harrison - lew Toxic
lorrii * Philadelphia
Ifcneher - Cleveland
ia * B 8.
Seay - nn^iimi%i>i«
Black - Atlanta.
McOragal —
Martin -> St, imuLs
Qoezy «► Minneapolis
Hanilton - Kansas City
UoSioiMjr •»
o&lkins «*■ 3an Tron&soo
> u n asr fa e a n tn o r ity o o o T fifm vpoxi him oy fno r x t i i A i f t i 'i
p ro clam atio n o f March 6, 1933, d e c la rin g a hank h o lid a y , th e S ee re ta q r o f th e
Troa smry
l i m od the- fo llo w in g re g u la tio n s s
quo te
hoove associ*»
atlo m s and. o th e r a s s o c ia tio n s oxgaaiso d to p ro v id e an ad o q n ately so cared m edian
o f t anpor a ry exchange, a r e hereby p e r a itte d to i s one c e r t i f i c a t e s a g a in s t sound
a s s e ts o f banking i n s t i t u t i o n s , stush c e r t i f i c a t e s to bo d e liv e ra b le by each
I n s titu tio n to i t e e r e d ito re and d e p o s ito rs on a p r o ra ta b a s is , p ro v id e d , howo f e r , that no such c e r t if i c a t e s shall bo issu e d b e fo re F rid a y , March 10, 1933,
w ith o u t th e w m w m % o f th o S e c re ta ry o f th e freasn x y ad d ressed to th e c le a rin g
honse o r o t t e r a s s o c ia tio n p ro p o sin g to l a m
sftush c e r t i f ic a t e * , and f a r th e r
p ro v id ed th a t this pexsd sa lo n any bo revoked in th e e v e n t th a t a n a tio n a l p la n
to H oot th e e x is tin g w orgonqy i s proposed bgr th e S e c re ta ry of th o T reasury i f
in h is o p in io n th o su ccess o f smalt p la n would bo in c o n s is te n t w ith th o o p e ra tio n
o f th o oortifiante p la n iBMjaoto*
Douglas
A s s t. S e c re ta ry o f th o tre a s u ry
I n itia le d byt
JHB
sac
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
QsaSL
March 7, 1933
McEougal
Chicago
Hamilton
Kansas Oily
Seay
Martin
St. Louis
McKinney
Salims
Slaiflc
Atlanta
Geery
Minneapolis
San fraaelseo
Young
Boston
Jfeaeher
Harriett
Sew York
fforris
Philadelphia,
Cleveland
Under authority conferred upon hl» by president's proclamation
delariag bank holiday Secretary of trasmcuey has Issued following
regulation!
£p3f»
Any banking institution lawfully engaged in the
business of acting as trustee, executor, administrator, registrar of
stocks and beads, transfer agent, guardia© of estates, assignee, receiver,
cosaAttee of estates of lunation, or in any other fiduciary capacity ®ay
continue to transact such business in the normal and usual manner;
provided that in the conduct of said business, except as may be permitted
toy other regulations of the Secretary of the Treasury, sucfe banking
institution shall not pay on* or permit the withdrawal of cola or currency
nor withdraw any trust or fiduciary funds on deposit with any other
department of the bank
UOWILL
Initialed by*
WHS?
JHD
50A
T.TTR
JPD
CM
m
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VJUDaoozfa
Onnr
TSLS&HAM
ygmmnpAY. H3SEKVK BOARD
iASHHOTDI
March ?, 1933,
Chicago
HMnllton
Kansas C ity
H arriso n
lew York
Marti*
St. Louis
I f tlla s
jvoim*
P h ila d e lp h ia
Qeexy
Mimumpolls
Calkla*
Sin Trancisce
Yoaog
Boatoa
McDongaL
ClOfOlaSd
Hn&sr a u th o r ity e o a f tm A ^p o s him fcgr p x a s td a a t1s p ro clam atio n d e c la rin g
baak h o lid a y S e c re ta ry o f T reasury h as iaaaad fo llo w in g re g u la tio n s
sjjOOT* F ed eral *asatffa pangs a re atx tn o risea to oonanct la o ix noznaj. ana
a a a a l o p e ra tio n s a a f i s c a l a g e n ts o f tb a U n ited S ta te s i a tra n a a a tia a a
p e rta in in g ta th e exchange a f o b lig a tio n * a f th a TJaitad S ta te s , such aa
a alrtag exchange a f d sa a sS a a tio a a , exchanging am pon f o r r e g is te r e d
t o d s , aad T ice v e rs a , re c e iv in g re g is te r e d bonds f o r tr a n s f e r aad effect-*
la g C .F .D . tr a a s a c tio n s . tJW*JO**
Kamil.
In itia le d by* JUS
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority tiM D aeozfc
O w
m ttxfatku
mmm
Wk am m mm
mu™
soahd
March S, 1933
Boston
faachor
Olovolaai
MeScragal
Oxle&go
Hnliloi
& B M I City
SttSKpSiiWHB
low folk
Uartla
St. U*&9
KtfinMQr
Rtoftmpnd
Komi
PktLadolphla.
Atlanta
Ooos?
Mis&Mpolii
Svaaa* »o*
unao? aeaukon^r cooxoira'oii
Hfuwffli $t 19331
holiday, Sooiotajpy of SPBMKty ^Nfff
following regulation*
f
jadui ogr v n m f S 4 i i i ,i pror iiwn»ioa or
qpoSE
*fhm posaleoioa grantod
in Bsgulatio* ftafeor
that deposits horotoforo nooiivd Igr aay banking iaotitattoa
porwaaxit to
a ^ m a n t i o* logiolatiyo authority providing for oogxtg&tloa aad w p p u t
without NitiioUoa nay bo paid on demamd, iacludaa aogr bank Is which any
pach dopoolto M t s boon rodoipooltod bjjr or mi behalf of tha receiving basic la
acoordane® with such agrooaM&t oar logiolatiwo authority. • t U p f l
Initialed byi
«Hf
MB
iwt*
JTwMp
nm
ok
Ml
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlHD
Pony
TELEGRAM
HSSKB72 BGABD
WASHINGTON
March 6, 1933.
Young - Boston
Harrison - Hew York
Horrls - Philadelphia
l*ancher - Cleveland
TRANS HO, 15S7
Seay - Hichraond
Black - Atlanta
McDougal - Chicago
Martin - St. Lcmis
W ot your information.
Geery - Minneapolis
Hamilton - Kansas City
McKinney - Balias
Calkins - San i’rancisco
Under authority conferred upon him by
President's proclamation declaring hank holiday. Secretary of treasury has
directed the Treasurer of the United States during the continuance of such
hank holiday, unless otherwise directed, to observe the following instructions!
*(1) Payments in gold in any fora will he made only
under license issued by the Secretary of the Treasury*
Shis does not prohibit the deposit of gold and the usual
payment therefor*
(2)
Treasurer
requested
than gold
Pay, as usual, all cheeks drawn on the
of the United States, but not in gold. When
you are authorised to ship paper currency, other
certificates, in payment of checks.
(3) Continue the usual currency transactions between
the Treasury and the Federal Beserve Banks and branches. *
McClelland
Initialed byt
JH23
AAB
WSB
BiU
ww
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority
Comr
SStiBQBJIM
m m iA L KSSEHVE BOAHD
WASHIBG'JOI
March 6, 1933.
Young
Boston
Seay
Oee*y
Minneapolis
Harrison
Sew York
BlaCk
Atlanta
Hamilton
Kansas City
Horris
Philadelphia
McBougal
Chicago
McKinney
Dallas
S&ncher
Cleveland
Martin
St. Louis
Calkins
San francisco
Under authority conferred upon M u by President’s proclamation de
claring hank holiday Secretary of treasury has issued following
regulation.
Upon instructions of the Treasurer of the United
States federal reserve hanks are authorised to transfer funds to
other federal reserve hanks through the gold settlement fund for the
account of the treasurer of the United States; to make payments to
or receive payments from the Treasurer of the United States through
the gold settlement fund and to make such entries in the Treasurer's
general account on the hooks of the federal reserve hank as the
treasurer of the United States may direct,
transfers of gold and
gold certificates and gold fund credits may he made between the
Federal reserve banks and their respective Jtodsral reserve agents.
Morrill.
Initialed by*
WHW
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority t)N D 3 o o z fa
Qonr
W M sm m m
March 6,
1933*
Tooag
Boston
Harrison
law fork
Horria
Philadelphia
Saay
Bichnoad
Allaata
McZkragal
Chicago
Martin
it* Z^uis
Gaary
Minneapolis
Kansas City
UcJCixmay
Balias
flaivif
Saa Franclaoo
Under authority conferred
Fanchar
daralajid
vpm him hy Presidant*s proclamation declaring hank
holiday Secretary of Treasury has aafhorissd federal assarts Board to adviss
you that any Federal reserve hank or branch or agaaoy tharsof may purchase
gold or gold certificates and pay thsrsfor any othar f o m of coin or eorrsaey
either dirsctiy or through aay othar Itedszal rassn* bank or hrBnch or sgsnfly
thsraof*
unram.T.
Initialed hjrc VSV
JHD
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
I"
3 oozfc.
Authority
mQatar
Kmmtm
wmmai
Harsh 7, 1933.
C. M. Prioe,
Scott
A JUk,
134 S rotti L aS all* 8 * » • * ,
O d M c o , Illlaoli.
iWHWWdpjbiis ywur ttltitfMEBut iJHjti&xjr
ffn
flflNI lwtilCfM|g
tuMd iJi tlw F T fM & dn& tlon of Pywsidwiti
sfiil "bxxilDBH nAldhn£
V l% m &
o f %#T1W
sSsiSswi
iitibply tluwNi
(Initialed)
Tttnay^n
A eeist&xtt 9ecEFet*ay o f th e f'Jpea.etMPy•
JHDtU**
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority YJUP 3 o Q 2 b
flapar
TOmroAT. vrm
meim BQABE
WASHX1II$0*
March 7t
Totuag
JtaiOllOl*
Cleveland
BhunrtLsns
low Torfc
Blade
Atlttita
Horrio
Philadelphia
fBASS 10*
...^
MoD&ttgal
VTmim/
Tammam 01ty
Martin
St. M i
KoKJtaiioy
TkH a i
OOOXy
Mianaapells
Son Tra&dooo
authority conferred upon M » tgr P*o*t&o«t*o
nuftrtla— tinii doalarine tenk
Seorotajnr of 93WMjnQonr tee Im h b A
following rogalationt <$90Z8 ill federal
mwmm tanks a n
authorised
to m i i v t aaoh flra* oollootoro of internal rowoan*, collector* of
oaotoao and otter «U»etor» of jmblio I M t for dopoeit to tte
orodit of tte H n N m
of tte flnltod State*. USPDSS.
Morrill
Ia itia le d Igrt WBV
rai
ACM
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlK Daoozb
Iggpgjr
fSDTOUU W
&SfflTSBOABB
WASHXBUIOI
Tonne
Boston
SteMdiiHf
CloTtlsBd
McBongal
rtstgn
Hamilton
Kansas City
Hi&rrlson
w w ivinK
Soay
TBfilssottd
Martin
St. Louis
MoKHnaey
m il* *
Borrls
Philadelphia
Blade
AUanlft
Oeexy
Minneapolis
San franoiseo
Trans.
Under authority conferred upon him by Fresidnat1* proclamation declaring
bank holiday Secretary of Treasury has issued following regulations Quote
Uaoii federal reserve
m y (i)
available to its —
KbbW which,
in the jadsneat of the federal reserve bank, are coo$lying etrictly with
the spirit and purpose as well as the letter of the regulations issued by
the Secretaiy of the Treasosy pursuant to the 1*1*0sident* s proclamation
a, T
t%sa\v holiday,
limited ja&oimts of frot*! and/or ffljrr^ fliy
(other than gold or gold certificates) as shall be absolutely neeessaiy
in order l» siabia sach nsafeer banks to exercise the restricted functions
permitted by saat* regulation*, (2) extend to each suoh ssAer bank sueh
limited anounts of dlsoomats, advancements aad accomodations as shall be
absolutely necessary for the exercise of such restricted Amotions, aad (3)
oaks transfers of credit on its books for such restricted purposes between,
m e accounts ox such sensor bsbsks ana/or nomnenroer clearing Banjos wnicn.
In the Judgement of the foderal reserve bank, are complying strictly with
the spirit and propose as well as the letter of such regulations; Provide
ed, however, That before granting any suisti discounts, advancements or a©-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority y]UD a o o z b
Qatar
ffSUNRWM
TOHZBAL 8883SHfB BOA&B
to all Qoreraora *
a
eoanedationi or waking auch liaitad payment# of coin and/or currency,
tba ffedaral reaerva bank shall first require tbe mender bank, (a)
to infom tha J'Oder&l raaart®
of tba aoxranta of ooin
fliiy'
iwfwy
whioh it has an hand, (b) to inform the federal roaanra bank of tha
oireomataaoee giving riae to tba need for additional ooin and/or cor*
rancor, and (e) to deliver to tba federal raaenre bank in exchange for
other forma of ooin and/or currency or for credit on it# books all gold
and gold eertiflcataa hold by M b member bank in its own right." tJI^TIOTS
Morrill*
Initialed byi
9KV
MB
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlUD 3 o Q 2 b
Qatar
i|ljryg|g|U
JKSttUU* maywOT
W kaujm fprn
March 7, 1933,
Young
SkMKf
CMmkqp
aoiw h
aidnond
Ktnnpolli
Harrison
Sow tost:
Atlaata
Jorrie
Philadelphia
KoDoogaX
diioofifo
IIOXlSBOl'
HumA sr
Martin
St. Louis
OaXkins
Son fraaoieoo
Basilton
CXevelaad
fmiy
fla ils
Ttiiana n,
MHMI4 Hw ♦ mmmmmmmim*
M u r author!.oo& ftrad opon
fcgjr Frootdoat* • proelawtlM
d*oXjurUc teak holidojr SwaawilBiy o f ffeOMugr Im laotiod follawiJa*
y jfililit ii
<pofS *M ox«l roaoroo hanks, in tholr discretion, oro aa*>
tiXftOrloSd to htfSdXO ifaOSfcS £■& (W Xltffftfll itSMI OrjUdUfeg Ottt Of tlMI TO1
striotod honkSa^g oporations ponolttod oarffcor tin tocbIo ttsmi of tlis Soo**
ittMQr of
tho ¥>000017 whoa it 000 reasonably l»o anticipated that
fnads «ati»faotory to tho M » n l assotot Bask m
i
he provided for fit:
pajBoot of M i l cheOko and oolXeotion Itens { Frevidodi howtor, that
00 «o!d or «>U ocrUfleatoa A iU to j*U oat t f
tutica.* tnqpon
MoRiU
Initial** W t
*®
auk
M *n l iw m
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
VlUD3QQ2fa
TJHLBCMLIM
WS3MBML BSSSBVE
fjksszmfoK
March 7, 1933,
Tonne
Boston
Stancher
Cleveland
McDongal
Chicago
Hamilton
Kansas City
Harrison
lev Tulle
Seay
Martin
St. Lcmifl
McKinney
Balias
Horrls
Philadelphia
Black
Atlanta
Oeexy
Minneapolis
Calkins
San Francisco
Trans * Mo •
Undler authority conferred iapon him hy President9s proclamation
declaring bank holiday Secretary of Treasury has Issued following regol&tiom
QPOTB Sach ^federal reserve hank is authorized to settle through the gold
settleaent fond with each other federal reserve hank fbr a l l transactions
which are permitted nader the regulations of the Secretary of the ftreasosy*
Morrill.
Initialed hy*
MB
m
IBB
t.mt
ms
m
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority M D 3 0 0 2 b
S tray
wi— ^ m g t w re ypnyfl
March 7t 1933*
ta v m g
Boston
fSJkOh&T
Cltvslaad
Mdkragol
Chicago
Hamilton
Kansas City
Sarriion
M m York
Seay
Martin
St. Inmi«
McKinney
fforris
Philadelphia
Black
Atlanta
Geeiy
Minneapolis
Calkins
San Franciseo
©eaas* Ho. ........ .
Undar authority conferred upon hi» by President1*
proclaaation declaring hank holiday Secretary of Treasury has issued
following regulation*
QPOTB All federal M m r t e Banks art authorised
to continue their usual aad nomai functions pertaining to the handling
tf collateral securing the deposit of the public moneys of the United
States, as provided ia Treasuxy Circular 93 as aatnded and revised*
W^pOfX*
Morrill.
Initialed hys
AAB
MM
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority yjU D aoozb
X M M O i
March 8« 1933.
mm 3iOlMM>a&
"SXjudc ** Jt&loata
XoZtoagal - qhloogp
Martia - 8%. Lcraio
** Bootoa
Muttimm - tom Toaric
l o r r u - nuiidiipiiti
_
SfaUFClik
1808
QMxjr * Mianoopelio
SMiltoa ** Xfcftoao cyHy
liifr^wii^y *, ThilU «
fhmMr+mm «
yVftfl&ifflMI
£ *lMHSfclC
9oovotoxy of tlm TXHMkwuQf’ oatliorisoo imy fo4o®nl snmmkpwi
d*otloa vH^hdUk tli® ltaltmitiftm
4ff
%JWP
at lit &!#->
of tiMi 9w&osal SMmmnpiW' Aot aaflL tl® if^ipitla%lo m
booowo IfftttiiTif tiMfrrowador* (1) to arika txaaafowi of oredit mi
^^3p;
Ipflft
’
^j^KWISm^C^KK^^
&§ to 1onport f m a oaaaojrtc Iter foroigjat acMMrattt* pso*v£dod titot tha
pWOOOdS tfenVOOf 03WI erodltod Oft Its book* ia dollars, (I) td aalOl tiaBofor#
aad/or MOMMnftNlf1 OlOariag
os* angr otlior fe*a aoaoptable to it oo. aceorasit #ft or 1st oettloaaat
obligations
*** $%
03f |ffit4
of$
$(§ rOOOlfS ^ J T*lfr*Tt0 1# dollars
ffen* feroiga noim ■xinnrltiafIw
(?) to oredSt oa it*
iMM&ka to fsrslgi onswront aooonaio Uaitod States ewxyefteyr or gol.4 deposited
*it& it* Bfclese
*&m*wtM o r i m d
ty the Secretary af tlio t*e*sosyf no mail
t u M M t t f M shall isvolw tho export or paying out of *ay gold or silver
ooia os*
to aqr plaoe
or eiixiinQyv tin transfer of oredit fron ^
tr «» inoroaoo ia tho total a m s t of g o H bold ly mfti
JWloral roooxro iMOdc tntar oaxMrtc tir fozolga aoooaat.
MOfiHILL,
Xaitialod % t
States
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VJKD3oozb
Otrar
mn.'mKB&u
WA3HBMQ1J
Haxtih 11, 1932
Blaak * Atlanta
Bafer year Mar^h 7th wire*
Share would appear to he no objection to
hank releasing receipts calling for ooiaraodities sold aad talcing In
exchange documents ©ailing fair oDsmoditles of sane kind and substantially
^ same value or to sturyeadering warehouse receipts in substitution draft
drawn on purchaser of oocaaoditles with shipping docuasnte attached*
Uorrlll
(3) Chester Morrill
m a fm m /ts t
Initialed by*
1BI
■s*Xfff
of
m
JJH
HE3IT
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
VlNDSoozfc.
fflmy
B23SHAL HS82SRVS SY8MI
(Leased tfire Service)
24 W T 86
Beeeived at v.a&ingtonf D. 0*
.Atlanta Qa llarch 7
1345
pea
Morrill
..ashington
At tbs request of Certain Atlanta Banks m aslsed yesterday whether or
not a bank hplding receipts calling for oonsaodities ishioh have heen
sold oould surrender such receipts to the pledgor otmer taking in
exchange document s call In,- for oociaoditles of same kind said substantially
equal in value.
Banks uould appreciate regulation on this subject which
would cover In addition the question of whether they would he permitted
to surrender warehouse receipts and receive in substitution draft
drawn on purchaser of cosaaodity with shipping documents at tailed*
Blade
22Qp
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlUD3oozfc,
COPT
Murek 18, IMS.
jjam
Iw M B H P Ilf
^ The Soorotary of Stato.
S w r Mr* Sm rw tm ryi
Roooipt it aoknowXsdea* of
ymr
1955 with r*f«r«no« to tito trsatp m t to W
of ifarch 16,
M o o d t d to g © M
hold, undor earmark or *fchorwi»s, In this country by foreign.
othttE* fOSPSSgB
It is
wjf
4
iWffit
if
tWLs wattor
boon
f
discussed with Mr* Fola of year Dopart»s*t, aad that ho is
fssilitf with
tin* dsdfslAjpBteiits in ooonoetion therewith.
Tho Troasury now has laate* oancidoration tho issuance of cor»
tain orders or rogpal
latlotis relating to goldi sod I saa advised
that, before «oy aotion is tafeon thereon, they will bo further
discussed with representatives of .your Department.
Respectfully,
(signed) EUGESE MEYEfi
Governor
Initial<4 ISQTi W* W#, O* M«, P# R» H«, il« H# B«, E« Il«£
G* R. J., C. S« H „ A* C. II*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority MNDSoozfc.
core
iJapurtaaafc of State
In reply refer to
£A
;;lnreh 16, 1933
dear J1r» Ileyeri
I set infomed that the Federal Pweeerire Board will proceed ia
the near future to the fcumulating of decisions smd the m kiztg; of
regulations gororaii^: the treatamt to be aooorded to gold tlmi saay
be held, under eannark or otherwise, in this country by foreign
central banks, foreign. ©aEd-official bank® of different varieties, and
ordinary forel&i tasking Institutions*
litnee these decisions iaay beeone Batters affecting the general
relatione between this cosenaacnfc and foreign corernaer.ts, and siraee
this
ep&rteent is likely to be approached by foreign governments la
regard to them, say 1 respectfully request# if it Is proper, that
this D*{>artdeixt 'be lafomed in adranoe of the m in lines of decision
to be taken ae th-t it joay k?e an opportunity to oonsider thoa*
Sincerely yours,
(signed)
7km
Gordell Sull
ikaaorSbSe
i:.ugo»e i-Ssyer,
Ckwemer, federal ;xeser*e Board#
«a«shington, .P* C*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
r
Authority
OOFT
T £ I> M C
a
n
m m i
ISaahlngtoaa
m ro h 10, 1933*
Seay «* Hiolsaoad
Young - Boston
ILarrieon - llm York
Borrifi - Philadelphia
Fanoher * Cleveland
TRAMS
1700
Geory * Ifianeapoli®
Banditi * t e s City
McKinney •> Dallas
Calkins - B m F tn m im o
Bl&ok - Atlanta
UoBotagal - Chioago
Hartin - St# Louis
In reopens© to requests the .Board h&e ex ten d ed mtil
M ro h ST the fiml date referred to in the Board* s wire of March 1 2 ,
i
Trtme 1G31, \uhich therefore is assended to read m followsi QUOIE It
Is requested that, you prepare m d forward to tl» Board
soon a© pos
sible after ,,arch 2 7 , 1933, as casnplete a list m can be xaado from inforsaation yov. are able to
o b tain
of the nazae* and addresses of all
persons u!x> have withdrasm gold frcaa your bank or a raeciber hank In
yoijr district sine© February 1» 1333, and who have not redeposited it
iii a hank on or before .ferah 2 7 , 1933 SWJOTE It is suggested that
you give such further publicity to this natter as in. your opinion may
b© appropriate#
Morrill
In itia le d
■ b y i
A *
A *
p .#
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority M D 3 o Q 2 b
IELBGEAH
RBBBTOB BOAHD
itarofc IS, I M S
Yo&og » B®#lswi
BsrrlsoB «* M r Xark
m Sfi^W ^1|ih4a
Sssy mBistwsrtl
Blsor * & U « n t
m CfcldN^gO
Qmtf «** iitinnsspoil1
rSUKMNHr m vJwVSNBHBflt
J i f »1jb * « v * uO U Il
v ljt lM
**A*®
iimitllton * Kwisss City
laylftwufy m ^1?**
** n lH lTHK)<HOO
T im roqussc w w i l T i B lit ta® Bosra's toxsgrsK or
Iwii
isnnNBi 8 xrm ns miotw jls ibew m ki. w
r o s a a s ixmuupiisi
huuxji
a s i s r w jo s s s o ii
that you prspar* sad l^rmrd to tlMi Board as soon as possible after
l&urait IT, I M I f m
M o i s t s a list as <**» be » d « frssi i»for»atioa you
srs abla ta sfe’tsdu af t$Ns
*w»4 m*^T*gftMn*iif of six jmhtsosss sbo Issnm
altfeirana gold from your baak or s m w b o r bsak is your district si&oa
l^sbnssry I# 193S# snd iiu> hacrs not rsdapasltad it ia a bank on or bofors
liaroh 17, 198$
UWJtJQTE
ton xasgr glvs swob pAXHitgr to this nsttsr
as you ooasldar sj^proprlato
iiorrUl
Initialed
%qti
£• M#
C. M*
a.
a* su
G* B« J.
?. R. H*
C • o• H •
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
r
Authority
COFt
TBtiBGBAH
FEDERAL RE8E3SVB BQAHD
Washington
JSaroh 9# 1933
lo m g - Boston
Harrison * Ileif York
Borris * Philadelphia
itosiier - Cleveland
TRASS SO*
Seay - Riofa&ooad
Black «* Atlanta
iloDougal * Chicago
Martin - St* I«ouis
Geeiy * Minneapolis
llaxailton * Kansas C ity
HeKizmiy «* Dallas
Calkins - San Frunoisoo
Referring to Tran* 1677 and 1533 request contained
therein applies to both gold coin and gold certificates*
MoClellaxxt*
Initialed by*
B* M* M*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
COFT
TELEGaill
FEMIAL RESERVE BOARD
.A.. .
waanlri&TPii
March 8, 1933
You&ig * Boaton
Hmriioa * H i York
JNQiTaUi «* ITOAiflfA|> lltl
Procter - Cleveland
TRiHS BQ.
1668
Saay *» TUolamrMl
Black •
J&QUfNlgaJl •* f
Uartin • St, Ionia
Ia raaponae to inquiriaa
riifti banka re Trans*
to Pedaral faaawa
VSTT# you are
(1)
O s w y ** TUthiimipoI 11
Hasdlton •
City
* i/BijyBS
C a H d m • San R n M l M
trm mwmetCL Federal
adviaad tfcat there la no objection
in|* ^
tixilAP <•nf>onyiy^f
frcai nommwubwr banka in tlaif rnapaatilHi diiUrlfftsa) (2} obtoki&tx^g
^
1
em^ tare
{>9|flp(^iiag aithdraaala prior to F^bsruavy
$m fluiaftittlsg data to Board It alMrali-^ ba ia£ra(pitafl aa
bafcwaesi adtbdraanla bafiwna l^aibruary 1 and thoaa aftar Fabmany If
(5) auggaatixig that pt&Holty ba gltaa to reqoaat la aaoh looality*
Merrill
TW<».4^i%a
iv
C*
F»
0*
0.
#m
M#
1* JU
H. J*
ft* H*
1« K* K«
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority UUDaoozfc,
co n
T E L E G R A M
FEDERAL RESERVE BQUtD
March 8# 1935*
Tsuag- Boston
Harriso®. - M r Tork
Sorrli * PluLuiSflpiuft
ranonir** wJuvvwjaj«.
THAIS.
3L677
Ssay • Rlchaood
Bk o k * Atlanta
MeDougal - Chicago
aarxizi «• &%• ukiii
Gssry - Mlnaaapolia
Hamilton - Kansas City
iftiliBMy * Dallas
vaiiriiis <*■ oan jnraxtsisoo
It la r«qu*«t*d that you prspar* and foaramrd to tbs
Board a* sooa as possifclo aftsr Iteroh 13, 193$, as oanplste a H a t as
oan b# ndls froai inform tiaa you ars ahls to obtain* of tha nans
and addrasass of all porsoas who hara withdrawn gold froa your bank
or a amabor fcaaik in your dlstrlcrt slxass f^braaipy 1# 1933* and who hast*
ttflp
y 3T
^C
W
5p
O
®
ivttS
L3
W
rX
X
IA0
4
M
B
U
KfXtl fjB
PW
M
T
W
F
®H
M
rO
Jl **&
#J
U
P
m
3*
Initialsd hyt
0* M*
A# A. B*
w* iu w.
s* n# c*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority t)MD 3oozfc,
Cow
fm m B m
mmm
hssssto board
M sm m to s
March 10 1933
Ca m
Bew foUc
With reference to telegrams already received t>y this office
giving m m * of basks making application please advise yoor
opinion as to reasonable safety in granting licenses in accordance
with Secretary of the Treasnrys telegrams
f . H. WOOBIH
Secretary of the freasiiry
Send same telegram to followli^ -
Black —
Atlanta
Geery —
Minneapolis
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
T
Authority M D 3 o c « fa
Oopst
380
Accounts aad Deposit*
}£cp. loans.
March 8, 1933.
GSSST
KIHHSJPOliIS
Betel Mare h 7.
Hegulatioa 8 psrmits the coapletton of settlement trans
actions in. question.
f .I . fOODIl
Secretary of the T re a s u ry
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority t)M D3oozts.
Qotar
FSD&EUL HSSKHfl STSTSM
(Leased fir# Service)
297gta
Minneapolis
Received at Washington, D. 0*
mar 7 1003pm
Hon Secty of tha Treasury
Washington
Minneapolis ant St Paul clearing House requests further Information
regarding your regulation dated March 6 1933 1m order to complete
settlement of checks charged hy drawee institution to tha
drawer* account on lt*s hooks and for which drafts were issued
on or before March 4 t 1933 and which drafts are drawn upon hanks
other than the hank or originally forwarding such checks for
collection and payment, would It he within the scope of tha
above regulation referred to for hasks in Minneapolis and St Paul
to clear such hank drafts among themselves where such settlement
doea not involve tha payment of money or currency?
Such
arrangement would facilitate tha disposition of several hundred
thousand items preriously forwarded for payment to other hanks
and eliminate the necessity of charging hack to endorsers
the amounts of such original items as wall as endless controversies
Minneapolis
1030pm
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority UNDaoozfc,
Ooiaar
1
fMAStmt DEPARTMENT
Washington
1
otscbam
Official Bualaast - GoveriBient Bate*
March 8, 1933
Horrls
federal Beserve Bask
Philadelphia, Pennsylvania
Betel seventh. Regulations do not permit settlement of character
mentioned In your telegraau
f. H. WOODIB
Secretary of the freasury
Initialed hys
JPD
iiaei
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority UUP 3 0 0 2 b
flamy
m m nm
IEB8HAL HSSSRVX SYSTSM
(Leased Wire Service)
Received at Washington, B. C.
1c fa
Philadelphia 1022a liar 7
Board
Washn
Where an American Bank has issued a letter of credit and the holder had
drawn on It in a foreign country and the foreign hank requests
remittance from the American issuing barite may it remit stop
One of our “banks yesterday remitted by drawing on Its balance with a
Canadian bank.
Horris
1027am
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
Saa
TEI&G3AK
r o m
HESEHVS BOARD
WASHIHGfOH
March 11 1933
HALE
sai mircisco
IKTSHPHSfAfKH OF SSOUIAflOI 1? AS EXFBESSSB
11 TOtm .MARCH 10 m m S M
UORHXEL
LS%cw
Initialed liyt
JJ1
CM
SIS
mm
JP3)
IS COHRSCf
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
m m m
JfMKSAIa SBSSmfX STSTEM
(Leased H r e Service)
Received at Washington, B. C.
y
11#
San Francisco Mar 10-11 715am
Morrill
ffashn
Keferring board y i n rafeer 1614.
As ve interpret regulation therein
it refers to tho passing of entries represented %y cheeks which a
baiik adght hold t a a on itself received f*o» on* depositor for
credit in M s account drown against the accomct of another depositor
of the sane bank and it would not apply to the clearance of checkai
between banks.
Please confirm or correct our interpretation quickly
Hale
1023m
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority tiNDSoozfc.
Soar
tnusuBr im m m m
Washington
Official Business - Q-ovenaaent Bates
March 8, 1933
Black
federal Beserve Bank
Atlanta, Georgia.
lour telegraa March el^ith with reference to segregated deposits.
request Is apparently new covered by Regulation IS.
W. H. WOODIS
Secretary of the Treasury
Initialed byt
JPD
This
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
Corasr
fsmiH
S’EIDSHAIt HSSSRVE STZST5M
(Leased Wire Service)
Heceived at Washington, 3. C.
28f mr Hash
Atlanta 1233p Mar 8
Morrill
Washington.
On March third banks in Alabama were operating tinder Governor1® proclamation
permitting restricted withdrawals of old deposits and the opening of new
deposits in cash or the equivalent for unrestricted withdrawal.
Oar
Birmingham branch received on that day wire transfers from other federal
Beserve Banks to First national of Binaiogham for payment in currency to
designated persons firms or corporations.
These transfers were largely for
payroll purposes or in payment for cotton which had been purchased.
We agreed
to complete these transfers by placing proceeds In special account to be
opened tap by Birmingham bank to meet withdrawals made by itfs own depositors
from new accounts created by the deposit of these particular funds.
On March
fourth reserve bank began observing Georgia holiday and transaction has never
been completed for that reason and because of President's proclamation.
Customers of First National Bank for whose account transfers were intended are
now insisting that they be allowed to open new accounts pursuant to prior
understanding out of transferred funds and Birmingham bank wishes the amounts
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority M D 3 Q 0 2 fa
v m m
m a m a * hkseh?$ sistem
(Leased fire Service)
..■3iteceived at Washington, D. C.
which ire hold transferred to their credit ia special accoxtnt which will
he available for sol© purpose of meetii^ withdrawals from new accounts
so established.
We think that this disposition could he given to the
matter without violating either the spirit or the letter of president*s
proclamation and regulations of the Secretary of the Treasury.
advise as soon as possible.
Black
143pm
Please
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority MUD300ZC-,
X£ii££&4ll
Official Business - Government Bates
March 10, 1933.
Norris
federal Reserve Bank,
Philadelphia, Pa.
Betel seventh.
Regulation I permits transaction mentioned.
CHESTER MORRILL
Secretary to Board
Initialed hys
TCT.fi
ME
ttbt
CM
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority y)MD3oozc=>
JOPY
T E
F O E
Philadelphia
R A
R A L
l!l a V
T
6p Mar 7
Board
Washn
In order to relieve the acute situation which apparently prevails in
thia district in connection with shipment of food or feed products
believe it essential that action be taken at once permitting transfers
of proceeds of drafts by wire between Federal Reserve Districts for
cash payiaent to shipper.
Morris
UU©
600pm
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
y)MD
SB L B S H A M
March 10, 1933.
Geery
federal Reserve Bank,
Minneapolis, Minnesota.*
Betel eighth Postmasters deposits are not included in transactions
mentioned in regulation P.
CHESTER MORRILL
Secretary to Board.
Initialed hy:
ELS
ins
JJH
CM
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
copy
T E L EG H A
F E D E R A L
R E S E R V E
SY8T
77bs
Minneapolis
Mar 8
244P
Morrill
Washington
Referring trails 1564 are we authorized to accept deposits of
cash from Postmasters
Geery
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
>“
Authority M D a o o z fa
Official Business - Government Rates
March, 10, 1933.
Honing,
Federal Beserve Bank,
Cleveland, Ohio.
Betel eighth.
It appears that regulation seven and G and I authorize
the transfer of funds and credits requested in your idre.
Chester Morx&ll,
Secretary to the Board.
Initialed hy:
MS
MHG
JJH
CM
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
COPY
T E L E G R A M
F E D S R A L R E
S E R V E
S|rS7iM
33dfa
Cleveland
144p
Mar 8
Marrill
Washingtern
Ve have request for wire transfer from Detroit Branch to our
Cincinnati Branoh of currency accumulated in Detroit by chain
store oredit to be to G^ioinnati member in segregated account*
Also wire transfer tso m Philadelphia to us of currency for pay
ment of drafts representing food and feed stuffs*
Please request
permission of Federal Reserve Board to consummate these trans
actions*
We desire to procure a blanket pezmlsslon from Federal
Reserve Board to make transfers of credits or funds from or to
this bank by other Federal Reserve Banks to facilitate member
banks in functioning within existing restrictions of Secretary
of the Treasury and State limitations *
Fleming
152pm
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority »ND3ooafc>
SL1ZI
Official B u s t - Gorarnment Bates
Uaroh 10, 1933.
Tederal 1M « f i Bank,
Bichnond, Virginia.
Betel ei#itlu Begolation ten sews to permit a hank to discount a
note to provide a costosisr with pajnroli fondt if feariks situation permits
it aad if transaction coxnss within spirit! and parpoae of that regulation.
Rsdisecants Tagr federal Beserre Bank are governed Tagr regulation <1 step
As to transactions between hanks they are peradtted if within regulation
ten*
CH1STEB
Secretary to Board*
Initialed hyt
ELS
NEH
m
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
T E L E G H A 15
COPY
If E D E R A L
11 E 3 E R Y IS S Y S T £ II
3brhu
Richiaond liar 0 53i5p
Morrill
Washington
Je request interpretation of Board’s telegram ilarch 6 giving
regulation of Secretary of Treasury relating to Exercise of
Banking function to provide funds for payroll and other
necessities.
Gan banks discount a note far customer to provide f^ustoiaer
with funds to cover payroll or other authorized expenditure; and,
if so, can federal Reserve Bank rediscount such note to provide
member bank with funds? Oan one bank pay to correspondent bank
funds to enable correspondent bank to pay customer to meet
payrolls or other authorized expenditure?
Seay
5*5 7p
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlH Daoozb
2.2.ZI
1 I 1 J 2 2 A 11
O fficial Boslnati - Gorarisaant Bataa
liareh 10, 1ISS.
Y3PA<Ma4[^
Todorml Bsssrrs Bank,
l a a i u City, Mlsiourl.
Bstsl
Answering question A ragolationa H and 1 seem to
c o rs r till*'wad to p « m i t handling such d r a f ts In th * u s u a l m aanT s t op
Answering g u s itlo n B r e g u la tio n a sea&s to eo?«r t h i s p s rm tttln g tr a n s f e r s
o f o rs& lt »top Answsrlng gasstlon 6 regulations H and % s e ta to oovsrtsls*
Answaorlng q u e stio n B r e g u la tio n 1 seens to cower t h i s stop fe a p p re c ia te
your d i f f i c u l t i e s and a r e endeavoring to cooperate a s snob as p o ssib le *
OHiKflyffiftlHOtiHTLL
Secretary to Board.
Initialed hy«
xu
mm
JJM
m
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
>
Authority
T E L E G R A M
GOFY
F E D E R A L
Kansascity Mar 8
R E S E R V E
S Y S T E M
1135am
Board
Washn
We are receiving many inquiries from Banks, Livestock, Milling and Grain
Associations for information as to hom settlements can be made for necessary
transactions as follows:
1—
Shipments of stocker and feeder cattle in
addition to livestock for slaughter already authorized.
drafts*
3— Drafts for produce and other foodstuffs.
2—
Grain and flour
In our opinion it is
necessary for the orderly transaction of business that regulations be issued
or clarified with reference to the following points in connection with the
above transactions*
A— Can we receive from member and nonmeraber banks drafts
covering transaction listed above and if so how are they to be handled.
B— If such drafts are drawn on interior points how can such banks make
remittance in funds available to us*
C— If drawn on banks in other Federal
Reserve Districts will such banks be able to transfer funds to us through
other Federals.
D— If member banks draw on their reserve accounts in payment
for such items how are they to replenish reserves unless they can obtain
transfers of balances carried in other reserve centers.
These are a few
of the practical obstacles with which we are confronted in our attempt to
comply with regulations already issued.
Please rush reply.
Hamilton.
118p
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlUDaoozfe,
FEDERAL
RESERVE
KTMUIX
NSW YOBS.
SYSTEM - LEASED WIRE
M*roh 2 9 , 198S
Responding your l e t t e r March tw e n tie th T reasury a d v ise s as
fo llo w s STOP Licensed banka a re a u th o ris e d t o tr a n s a o t b u sin e ss w ith
u n lio en sed banks t o e x te n t n ecessary t o p erm it u n licen se d banks to
perform such r e s t r i c t e d fuziotlons as a re a u th o riso d uzider emergency
banking re g u la tio n s
STOP Such r e g u la tio n s do n o t r e q u ir e lio e n se d
bank t o in v e s tig a te t o determ ine i f a p a r t ic u la r tra n s a o tio n w ith u n lio en sed
bank i s f tir a purpose a u th o ris e d w ith in lim ita tio n s o f suoh r e g u la tio n s
STOP P o s s i b i l i t y i f any o f l i a b i l i t y o f lio e n se d bank i n any suoh o a s t
t o d e p o s ito rs and c r e d ito r s o f u nlioensed bank depends tp o n v arying
f a c to r s a s governed by g e n e ra l p r in c ip le s o f a p p lic a b le la ir r a th e r th a n
Jby T reasury R eg u latio n s and lio e n se d bank m ast a c t on own r e s p o n s ib ility
i n t h i s connection#
MORRILL
JTO
910
im
JED
CM
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority U U P 3 0 0 2 b
FEDERAL RESERVE B A M
of
i m YORK
COPY
March 20. 1933*
Federal Reserve Board,
Washington, D. 0*
Sirss
The following questions are representative of those which have
been asked of us by various licensed and unlicensed banks and by custon*era of such banks t
1* Do the
an unlicensed bank,
tor or of a similar
funds to the credit
bank?
regulations of the Secretary of the Treasury permit
-which is not in the hands of a receiver or conserva
official of a State Banking Department, to withdraw
of such unlicensed bank on the books of a licensed
2* Is the answer to the foregoing question affected by the
existence of one or more of the following additional facts, and, if so,
in what wayj
(a) That the funds are to be transferred to the
unlicensed bank*
(b) That the funds are to be transferred to a
third party.
(c) That the unlicensed bank is a State member
bank and has been authorized by the appropriate State
authorities to permit withdrawals of 5% or less#
<d) That tiie unlicensed bank is a nonmember and
has been authorized by the appropriate State authorities
to permit withdrawals up to a specified limitation.
We believe that a substantial amount of the confusion which
exists ■with respect to these matters might be eliminated by a ruling of
the Secretary of the Treasury, and we should appreciate your attempting
to obtain such a ruling or rulings.
Very truly yours,
(Signed) Herbert H. Kimball
Herbert II. Kimball,
Assistant Counsel*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority U N D ao o zb
'■V
->*
/
ifiLLI
MMKiL BESSHTB T
M«K«r
WHt E STSfBC
Kurch 29, 1933
H o tel MHrdh, tw a n ty -tM rd SEQP T reasury a d rla a a B ag u latlo n thirteen*
j w M M jf-g poyaent osr w ithdraw al o f any t r u e t fund* cm d a p o a it w ith l a s t b i r
dapartm aat o f W
w hather or not meth d e p o s its a r t aaararad S90P fraaaw qr
a d rla a a t h a t aaw re g u la tio n * a r a bow madar c o n s id e ra tio n w ith ra s p e o t to
t r a a t fond* and a l t o H 8 « n d d e p o sit* 8fQf S reaaory a d v ise s that la th a
eta# o f a rev o cab le t r u a t B a g u la tlo n th fcrteaa p e r a ita d e liv e ry o f a e m s ritle *
h e ld by hank th ereu n d er i f otherw ise p e rm itte d .
I n i t i a l e d hyi
JT C tfh t
GffiC
CM
JfC
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlMDaoozk
S L S L tl
OTERAX HESERVE SYSTEM
(Lease d tire Service)
Eeceived at Washington, D. 0*
67bfa
Boston Mar 23 1125em
Board
Washxt
B.qo-rt foriulln^/aa unlie.n,ed Hational ^
ln it8 tPnrt
department revocable trusts tinder which they have been remitting
specified sm s of money each month.
The funds in the
trust department are deposited in other departments of the bank
and securities have been segregated to secure the deposits due to
the different trusts.
Is there any m y under regulation 13 whereby
the bank ean pay out or permit withdrawal of coin or currency for
the payment of such monthly remittances when the fiduciary funds
are on deposit *dth other departments of the bank.
In the case of
revocable trusts may grant or withdraw certain of his securities
held in trust department in order to obtain elsewhere funds to meet
his necessities.
Young
1144am
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
f
Authority V)U^
_________________________ ...
FO U N D E D B Y
WI LLI AM W H I T I N G
1365
OITTOFt OP 0B?I£h'A.L onUFSBL
W h i t i n g Pa p e r C o m p a n y
, ,J ik
18 1933
M L .
-4jM,
_
HOLYOKE, M ASSA CHUSETTS
■
*
........ .
7
............
July
The
Federal
Reserve
^
17,1
Bank,
Washington, D . C .
Dear
S ir
j-
I wo iiId
about
what
these
safe
deposit
happens
1 ike
boxes
to
in N a t i o n a l
if a B a n k has
conditions
to
have
Thanking
you
in qu ire
closed,and
free
access
in t h is
what
and
t he
State
one's
to
ru les
Banks,
right
Y o u r s r e s p e c t f u 11 y ,
and
under
s a pe d e p o s i t
connection*
are
b ox es.
d e c l a s s if ie d
Authority
Hr. Eugeae X* Stevone,
Federal Resort* Agsiit,
Federal Roeerv* Beak of Chicago,
Chicago, Illinois*
&oar Mr* Steven* i
Thi t M r i , «• jo * know, h a co nsidered r e c e n tly , i a
, t h e c a e e o f th o Piitaoy S ta to Baafc o f Case C ity , M ichigan, aad
l a se v e ra l o th e r in s ta n c e s , & p la n o f r o o rg a a is a tio a o f S ta to mem
b er basks lo c a te d l a tho S ta to o f Miohigaa c a r r ie d o u t under th o
p ro v isio a s o f Act So. 32 o f th o P u b lic Ast* o f Miohigaa fo r th o yoar
1933# *ad Act Mo. 8 o f tho Pafcllc Acts o f M ichigaa f o r tho yoar 1 9 3 2 .
The * « tio n ta k e n by tho Board l a the*a eases has bean w ith tho uader~
sta n d in g t h a t y o ar counsel was s a t i s f i e d w ith tho lo g a l asp e c ts of
ouch p la n o f r o o r g a a is a tio a , aad i t *111 he a p p re c ia te d i f yoa *111
forw ard to th o Board f o r i t o re c o rd s a copy o f any o p ia io a yo ar couos o l aay hav* ren d ered i a t h i s c o a a so tio a and w ith re fe re n c e to tho
c o n s titu tlo n & l v a l i d i t y o f tho p ro v isio n s o f la v sh o w referred
to*
Very truly yours,
Ohostor Morrill,
Secretary.
BMW/ead
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority VJMDSoozfe,
F E 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 3 0
OFFICE
m
S O « V W
OF THE
1933
t'A S A L L E
ST R E E T
June 28, 1955
C H A I R M A N O F T H E B O A R D AND
FEDERAL R ESERVE AGENT
Hon* Eugene R. Black
Governor, Federal Reserve Board
Washington, D. C.
Dear Governor:
Referring to my telephone conversation with you yesterday morning,
Mr. Talley of the Reconstruction Finance Corporation has been in Chicago for
two or three days dividing his time between his office here and our offices.
We had an opportunity to discuss with him the banking situation in this dis
trict. Monday night he went to Grand Rapids, Michigan, with the Chief National
Bank Examiner and Mr. Preston of this bank, to lend his authority to necessary
participation of the R. F. C.in an agreed plan to reopen the Grand Rapids
National Bank under a new charter. From there, we are advised he returned
to Washington.
f
|
|
At Mr. Talley’s request, a conference was called here of the bankers
from Battle Creek, Michigan, which Mr. Talley attended. In that city there
were three licensed national banks, one of -which has already closed and the
j
other two are in a precarious condition. Mr. Talley proposed a plan for
| these Battle Creek bankers to endeavor to raise sufficient capital to reorganise
\ | the two banks yet open, one on the basis of 60 per cent release of deposits,
I i- and the other on the basis of 70 per cent release of deposits, and the Battle
| I Creek bankers are now endeavoring to proceed along these lines.
We have other situations in Michigan, which is by far the most
difficult in its banking situation in our district, in which reorganization
of some character of licensed banks is imminently necessary to prevent their
closing, On the other hand, we have plans under way for the reqming of a
considerable number of closed banks in Michigan, and in both of these cases,
the closing or the reorganization of licensed banks in Brittle Creek is having
a serious reaction on the whole State.
There is notably a situation in Wayne County, Michigan, of four or
five suburban banks, with deposits of about $25,000,000, which are practically
in the City of Detroit and in which something must be done at once to prevent
j| their closing. This was discussed with Mr. Talley but nothing definite came
^ out of this discussion.
The people understand that we have what amounts to a mandate from the
President to keep licensed banks open 100 per cent. The Federal Reserve bank
here is willing to go to the limit of its statutory powers in making loans to
this end and the banks in Battle Creek have only survived so far by reason
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority V)KD 3oozc=>
F E D E R A L R E S E R V E B A N K O F C H 1C A G C
June 28, 1953
Hon, Eugene R. Black
of large 10—b loans granted them by the Federal Reserve Bank of Chicago. The
R. F. 0. interprets the law under which it operates to limit its loans to
such as can be justified as sound and without risk, and in both of these
agencies, therefore, it is necessary that they take marginal collateral on
loans against frozen assets, and all the assets of the bank may be so pledged
without giving sufficient liquidity to the bank to liquidate its entire deposits
if necessary. Such banks as those mentioned have reached the limit of their
borrowing capacity in these agencies and are still having withdrawals of
deposits
Notwithstanding assurances given the depositors of the complete
ability of licensed banks to pay out in full, no way seems to have been devised
to accomplish this in the extreme cases which are now arising. Owing to the
legal limitations of the Federal Reserve banks and the R. F. C., a determina
tion of methods and procedure to meet these situations must depend on a higher
authority.
as
Without such determination, there appear to be three courses open,
:
f o I I oy/ s
(1) After exhausting its borrowing powers from the Federal Reserve
Bank and the R. F. C., the bank must undergo a reorganization which would
result in the releasing of only a portion of its deposits and necessitate the
raising of new capital to protect them.
(2) In addition to the resources of the Federal Reserve banks and
the R. F. C. as referred to, a resort to the new Home Loan Act, by vdiich we
understand banks could sell outright tlieir urban mortgages to this agency,
thereby creating additional liquidity and opening the way for obtaining
sufficient local capital and preferred stock from the R. F. C. to reorganize
the bank on a sound basis. (We think that this new agency might proceed
aggressively in Michigan as the Farm Loan Agency is presently doing in Wis
consin, which would be very helpful.)
(o) The only other thing left seems to be to allow such banks to
close after they have been licensed to open 100 per cent.
It seems to us that the time has come when we must face this con
dition squarely and determine upon the policy to be pursued; primaril.y, whether
licensed banks should be allowed to reorganize on a percentage basis or other
wise close, or whether governmental agencies may be coordinated to keep them
open 100 per cent. We in the Federal Reserve banks cannot do this alone, and
apparently it cannot be done in cooperation with the R. F. C. on account of
its limitations. We have a few imminent situations in Michigan which, if not
handled properly, give promise of starting another conflagration in that State.
We are doing everything we can to avert such trouble, but we cannot do so
alone and in the absence of any method by which the various governmental
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority tiUDaoozfc,
F E D E R A L R E S E R V E B A N K O F C H ICAG C
-5 -
June 28, 1955
Hon. Eugene R. Black
agencies in cooperation can meet the situation, serious trouble is before us
and we are at loss to know what can be done to prevent it.
Are we to lend our support and our services in working out reorgani
zations of licensed banks which entail the waiver of part of the deposits
thereof? Just how far does our responsibility in the Federal Reserve Bank
SMS HH
Copty to -
Hon. Yfe.lter -J. Cuimnings
Executive Assistant to the
Secretary of the Treasury
Washington, D. C.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority Y lttD aeozb
F E D E R A L R E S E R V E BAN KOF* CHICAGO
JUN 28 1933
2 3 0
SO U TH
LA SA LLE
ST R E E T
Y / J . '
June 26, 193$'
..
OFFICE
O F TH E
----
■.. . ....
C H A I R M A N O F T H E B O A R D AND
FEDERAL RE SE R VE AGENT
Hon. Eugene R. Black
Governor, Federal Reserve Board
Washington, D. C.
Dear Governor:
I veiy much appreciate your letter of the twenty-thirty/
relative to ny letter of June 20 to the President of the United
States, cojy of which I sent you.
I should like to say in this connection that your very
active cooperation in our recent banking problems in this district
is greatly appreciated. You have certainly given us eveiy support
in what we are trying to do and with great promptness. We are
particularly appreciative of your interest and helpfulness.
Mr. Talley is here and we have had the opportunity to
review some of these situations with him. We hope that his active
participation will expedite the solution op^ertain ones of them
which are imminent.
Very
EMS HH
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority V lU D 3002b
June S3, 1933
Hr* Eugene Stevens, Chairman,
Federal Reaerre Bank*
Chisago, Illinois.
Dear Mr# Stevena:
I ha w copy of your letter o f June 20th [to
the President of the United State a relative to the hanking
situation in your district.
The facts contained in your letter have been
most carefully noted* I will discuss your letter with Secre
tary Woodin and will aid la every way in ny power to the end
that the situation disclosed in your letter t m he solved.
I know of the act!Titles of the Chicago hank In connection
with the situations described in your letter and I have en
deavored actively to cooperate with your bank in solving some
of those situations.
I m pleased to advise that Governor Talley
left yesterday afternoon to spend a day with your bank in dis
cussing these Mfctert and my information is that, he will go to
different points in Michigan in m e f f o r t to solve the situa
tions at those points. There is at the present t t m very close
cooperation between tha offices of the Secretary of the Treas
ury, the Reconstruction Finance Corporation and the Federal
Beserve Board in seekiag to aid in the proper solution of
these questions.
I writ© to express' m appreciation of what the
Reserve Bank of Chicago has lone in connection with these mat
ters and trust that with the continued cooperation of your
bank we nay be able to do effective work in all of them#
I note that your letter is written at the re
quest of your Uceoutive COHiaittee and I wish you would express
to t h « ray intense interest in the matters disclosed in the
letter and in the position taken by your bank.
With my regards, I m
Sincerely yours,
B-C
Governor.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority MUD 3ooz{-,
F E D E R A L R E S E R V E B A N K O F CH
2 3 0
SO U T H
LA SA LLE
S T R E E T
m s
OFFICE
O F TH E
C H A I R M A N O F T H E B O A R D AND
June 20, 1933
FEDERAL R ESERVE AGENT
COPY
The President of the United States
^Washington, D. C.
Sir:
I have been requested by the Executive Committee of the Beard of
Directors of this bank to invite your attention to the desirability of devis
ing some means by which the reopening of closed banks in the Seventh Federal
Reserve District may be expedited.
In this district, as of June 17, we have a total of 2,981 banks
with deposits (based on last call report) of $4,014,000,000.
Of this total, there are 1,157 banks unopened with deposits of
$759,000,000.
Of this latter amount, 867 are nonmember banks with deposits of
$384,000,000 (some of which are open on a restricted basis under State laws)j
66 are State member banks with deposits of $118,000,000; and 224 are National
banks with deposits of $257,000,000. Reorganization plans are in process of
consummation for later opening of a considerable number of these banks, but
present indications are that many of the closed banks will have to be liquidated.
We have representatives from this office constantly with the Chief
National Bank Examiner’s office in Chicago and working with the State Banking
Commissioners In the various states in efforts to initiate and expedite the
reorganization of banks and all such plans of reorganization are so formulated
and agreed to here in conference with the officers and directors of the banks
involved.
Under present procedure in the case of National banks, these plans
must be submitted to the Comptroller’s office in Washington for approval, and
when approved there, all negotiations in connection with the consummation of
the plans, including the necessary evidence of the conditions being met, are
conducted by correspondence between Washington and the subject bank. Because
of the great pressure on the Comptroller’s office In Washington, there have
been necessarily substantial delays, sometimes running into weeks, in the review
of the plans after their submission, and,later, further delays occasioned by
the working out of their consummation by correspondence from Washington with
the banks involved.
Miuuuoea from the Unclassified / Declassified Holdings of the National Archives
d e c la s si f ie d
Authority NND 3 « > 2 k
-
2-
June 20, 1935
In order to expedite this process, we venture the suggestion that
the Comptroller either give additional authority to his present representative
here or otherwise send here an agent from his office with authority - (l) to
expedite the Comptrollers approval of the reorganization plans,and (2) to
cariy on the consummation of such plans direct from here instead of from
Washington.
It is frequently necessaiy to invoke the assistance of the Recon
struction Finance Corporation in such reorganizations, either in its purchase
of preferred stock or in granting loans. This also applies directly to emergency
situations in banks which are open and have become subject to heavy withdrawals.
All of such cases are subject to negotiations sometimes delicate in their
,character and of immediate urgency, and it is difficult to conduct such negotia
tions on the ground, eveiy phase of which must be referred to the authorities in
Washington.
We therefore suggest the advisability of the Reconstruction Finance
Corporation placing, with headquarters in Chicago, an authoritative represen
tative to review these various situations in the local atmosphere, and whose
recommendation for imperative and immediate action would have weight with the
Board of the Corporation.
It is obvious that no criticism of either the Comptroller1s office
or the Reconstruction Finance Corporation is implied in these suggestions, as
we are fully aware of the great pressure on their offices in Washington, and
fully appreciative of their cooperation. The suggestions are made, rather,
with the view of expediting the coordination of the several agencies involved
to the end that such coordination may be more effective.
It is the view of the Executive Committee of this bank that the
adoption of these measures would be most helpful at this particular time and
under these particular circumstances to expedite the release of a substantial
portion of the three-quarters of a billion dollars of deposits still impounded
in this district, and we respectfully submit our viejL^itfT'yfnir consideration.
Most respe
EMS HH
Copies to - Hon.
Hon.
Hon.
Hon.
William H. Woodin, Secretaiy of the Treasury
Eugene R. Black, Governor, Federal Reserve Board '
J. F. T. O’Connor, Comptroller of the Currency
Jesse H. Jones, Chairman, Reconstruction Finance Corporation
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
r
.
Authority
Jxm e 14, 1903.
12:15 pan*
v y o
2
/
M E M O R A N D U M
G o v e rn o r Black:
Mr* Delaney celled and advised that the City National
Bank and Trust Company, ifcich pat on the 90-day notice this
morning, has had very few people in the lobby, probably 7 or 8 at
\
a time.
Ifce Central Hational Beak and Trust Company, however, has
*ad around 100 people in the lobby, end no progress seems to be
made in reducing the number*
$475,000.
DaLaney has advanced this institution
He states that there is a division of opinion among the
directors of the institution as to whether they afcould put on the
90-day notice or continue asking payments*
Mr. Delaney also says that it is the practice of the
Battle Creek banks to keep open on Wednesday night from 6:30 to
8 o’clock*
E*M.McClelland
F
cr
£
t=5)
U
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority HMD 3 o o a t ,
V 7:J y
M E M O R A N D U M
June 14, 1933*
Governor Black:
The City National Benk and Tius t Company. which lost
#EOO,0OO i n deposita yesterday, has invoked the 90-day notice
on savings deposits*
Hr* Joses has been In touch with Mr* Green,
its president, and discussed the organisation of a new hank with
|800,000 first preferred subscribed by the R. F* C*, #800,000
second preferred, and #280,000 common subscribed locally*
He also
has communicated with the president of the Central national Bank
and Trust Company, which lost #800,000 yesterday, but has not In*
voked the savings clause*
Be stated that this bank apparently
was not aware of the real seriousness of tho situation and that
he had suggested that its president get in touch immediately with
Mr. Green with the idea of having both Institutions take similar
reorganisation action during the day*
Ur. Delaney, of Chicago, advises that he has advanced the
City National Bank 1115,000 and the Cwitral National Bank and Trust
Company #480,000 against their 10 (b) notes*
When they opened this
morning each had only between #40,000 and #60,000 on hand*
He also
said that he understood the R* F* C* has made a commitment of 1300,000
to the Central end #800,000 to the City.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
d ec la s si f ie d
Authority UNO 3 0 6 2 b
June 14, 1933*
v
7
5:30 p* a*
M E M O R A N D U M
In a conversation with Mr* Delaney, he stated tbat the Central
National Bank
gained #50,000 in coamerclal de
posits and lost #536,000 on savings deposits and certificates of deposit,
and that, while they think they have beaten the run, lt has practically
cleaned out their cash.
The Federal reserve bank let thea have #450,000
today, running their total Indebtedness to about #1,200,000*
Delaney
said that the Reconstruction Finance Corporation has made a commitment
of #450,000 which they will authorise him to pay the first thing in the
morning if the bank gets the collateral in the corporation* s hands to*
night, which they are doing*
He said he was also checking up to see
what the Federal reserve bank could do for the**
While he stated that he
thought the present loans were well secured, he indicated that their
additional borrowing capacity Is very United*
Be said that the City Rational Bank and Trust Company lost about
#43,000 on eoanercial deposltiTand, that with the notice on, they lost
only #1,200 on savings*
In response to your inquiry as to what was being
dc^e toward reorganization, he said that the City National Bank and Trust
Coopany has a nesting on which he has not attended, but that Mr* Green
told him that he had #500,000 of stock promised.
You then SSked him
to have, first, Mr* Green and then the president of the Central National
Bank and Trust Company call you*
Mr* Green called at 5:50 p* a* and said that he did not think
his bank lost anything today*
Hie said they had two or three payrolls,
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
v '■*
Authority y)ND
but that they would get credit for then tomorrow*
He stated that they
had a meeting this afternoon and that his workers are out this evening
and tomorrow morning, and that the money for reorganizing will be there
in the morning*
He said what he was working on was #250,000 common stock,
#200^000 preferred from local interests, and #750,000 preferred from the
Reconstruction Finance Corporation*
" He also said that Mr* Jones called him and that Mr* Stoddard,
who will he there tomorrow morning, wants to go over the matter of joint
action, referring, I assume, to the suggestion that the new bank also
take over one-half of the deposits of the Old-Merchants National Bank
and Trust Company*
After you had expressed to him your idea as to the value of such
joint action, he said that he thought more money would be needed and you
stated that you thought it would be desirable*
He expressed the opinion
that one party (referring to Mr* Kellogg) might be willing to renew his
previous proposition, and asked you how much money you thought would be
required for the joint proposition*
You stated that you thought they
should get all they could, and that in your opinion #500,000 or #750,000
more would make a clean bank*
Mr* Green said that he thoughtMr* Stoddard
and he could get at Mr* Kellogg in the morning*
You suggested that sons*
thing should be done as soon as possible and Mr* Green replied that Mr*
Kellogg appeared to like Mr* Stoddard and that he would prefer to wait
until the latter got in tomorrow morning*
He said he thought he could
call you before 12 ofclock*
At 6:15 p* m* Mr* Evans of the Central National Bank and Trust
Company called and stated that they lost #556,000 in savings and
certificates of deposit*
He said he thought their commercial figures
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlUD3oQ2C=.
t
&
went off somewhat; alao that there bad been a transfer fr o m certificates
of deposit over to conmercial deposits which, however, m e
In the #536,000.
included
He said they bad about #175,000 cash and had arrange
ments with the R. F* C. for #400,000 and9 In additlosit vers getting a
loan fro® the Federal reserve bank of #100,000, and In response to am
Inquiry whether they were doing any^lng about preferred stock, he said
that they had not yet but that he would talk the matter over with the
B. F* O* representative who will be there toaoxrov*
He said that they
were reopening at 6:30 and that after their olosing at 8:00 he would
call you at the hotel and give you his fl|al figures for the day.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority ViHDaoozfa
.,cA'■
J
J U/\t j .
m tm
C
* m #
4
»* §*•»•
A
/ a
i»u
Philadelphia, Pa.
Cleveland, Ohio.
Richmond, Va.
Atlanta, Qa«
Chicago, 111.
St. Louis, Mo.
Minneapolis, Minn.
Ktaaaa City, Mo.
Dallas, Tax*
San Franoisco, Calif.
Yfcat part $f fcajijnrtaeflt** talaeree *f SbuNfe 4U«t3t iaetroutlef
lM ^ k l INka^iw tank* m t il ta^N or *M U «^ to t m m torn ataatfarg
fitnaaii en
la
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fttUtil tlMp «rt pwwittadi t»
ririeiiturtoiln fla naita! a%ajail&*d of
out
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matfcaai^i^ to■wMt~ Tl^MMNivjr
4fefeaha«*#
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«**
S^MflhMNK^t ^asayWB Jhmswt
Ix m & m m # % 9 *
Private tire.
**
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
r
.
Authority
COPY
Lj"
Ju n e lkt
1933
PEYTON
MINNEAPOLIS
Relet June 10J re Peoples State Bank of Bloomer, Wisconsin STOP
Under Executive Order March 10 banka not member* of Federal Reserve System
are licensed for normal business by approprate authority in each State and
’
"member banks of Federal Reserve System are licensed for normal business by
Secretary of the Treasury STOP Secretary of the Treasury has no authority
to 1icen8e”?eoples"state Bank of Bloomer as of date when bank actually did
open under license issued by Commissioner of Bake of Wisconsin STBP
In order to avoid legal questions relating to banking transactions of State
banks becoming a member the Federal Reserve System a license issued by
Secretary of the Treasury is necessary
STOP
AMend license to Peoples
State Bank of Bloomer, Wisconsin, to become effective concurrent with
bank’s admission to Federal Reserve System which I understand is June 8,
1933f HI
WOODIN
AKC-hkb
FEDERAL RESERVE SYSTEM - LEASED
WIRE.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority » U D 3 0 0 2 b
/
mmm Mm m-m
1
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ttflUHl i» ISfiloMd iMMM&tll flOflt JTOW tMRKd'Aitttl■!
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.
6-
"rtbdlJli imhb % pb 3n h ^£ % 0& yiwtoBNtajr lo 8Nww®i3b3s tf* X«
XftUogff.
▼ • y truly j w i i
S # S. n » A |
Sfll1N6P#88P*
dtooSUwwsr#*
?
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority
TELEGRAM
FEDERAL RESERVE BOARD
WASHINGTON
m m xo,
f f M & i - Chicago
I0UE TBLSQittit. M1ILIH& T0&
m
'
ffMZ OOFT
Of f fjiqmif ASBBBSS8B TESTSHBA.Y
t. n w m w m m u e s sb s . i d o i h i , m a c k , m > j a m , heading
AS FOLLOWS:
(JB039I fe have Juat heea informed by 00? representatives, Messrs. Stoddard and
Preston, that yqu tart *0ftln raoaaod leadership In the M i a | situation at Battle
Orsek. Ws are gratified at your action is agftla assuming this leadership which ia
so vital to ths interests of the oowamity which you have largely built aad which
mesas so much to you.
He urge now that under your leadership, you go forward with the plaa heretofore
proposed by you, aa covered by your telephone conversation with Hr. Jones of laat
fridar afcloh waa to the effe«t that a new national bank would be forced with
$4,000,000 new «a4h capital, which new basic would assume the deposits ia full of the
014 Merchants National Basic and the City national Beale. S&e Reconstruction Finance
Corporation, under this plan, would subscribe for $2,000,000 of preferred stodfc to
bear dividends for the first five years at 5$ aad thereafter at
and would lead
yon for three years, at a low rate of interest, H ,790,000 with which to boy that
amount of second preferred stock, the remaining $330,000, presenting comaon stodk,
to he subscribed by you or other* there.
la addition to tha abo**, the federal Reserve is prepared to gire the new bank its
usual fall oredit aaomwdatieaa ead the Beconstruction Unanoe Corporation is pre
pared, ia addition to such Beeerve Beak action, to furnish the new beak such support
as it way aeed in order to properly serve the people of Battle Qreak aad fully
protect the depositor of m e mew bank.
He aow area that you assume the full leadership necessary aad have the people of
Battle Oreek meet this maergeaey. *©u are a great philanthropist, aad it is doubtful
if you ever will have another opportunity to be as helpful to your ftiends and neighbor*
of life time.
The president joins la this request aad went you, aad the people of Battle Creek aad
ttiohlgan to know that it I* his puxpe** aad tha puvpcf* of his Adsdnlstratiaa aad of
the agencies which we ra&reseat, to stead ia the meaner stated above, shoulder to
shoulder with every ooeaaaity la th* Isdted States where similar emergencies may develop.
the tanking situation throughout the country ia rapidly becoming well stabilised, aal
another failure la &chlgaa, especially ia a City whose oiticons are able to avert it,
would be extremely unfortunate. WKfXm.
1. H. 3IACK
EMM/vmt
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlU Daoozb
TELEGRAM
FEDERAL RESERVE SYSTEM
(L E A S E D W I R E S E R V IC E )
R E C E IV E D A T W A S H IN G T O N , D . C .
15—794
Y 9
V<
.Z
118gb
Chicago Jun 10 !226p
Black
Board Washn
Understood from McKay you were sending us copies your wires to
Mr Kellogg, which have not yet been received.
to us here if we have such copies.
Will be very helpful
I have just been talking with
Mr Cummings here who also would dike to be advised of the nature of
the telegrams
Stevens
1331p
U 8 GOVERNMENTPRIXTOfeOFFICE: 1998
16—794
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlMDaoozb
F o r m N o . 181.
Office Correspondence
To
Fmm
FEDERAL RESERVE
BOARD
Date_____
_ Messrs. QJCQjonor^ Miller/Hamlin fk James Subject:.
m*
_______________
.
_____
s/'
2—8496
tro
rn m m
m- vmbwjgtmm
borefe, for
i
— / "" W m fl^YwmilHNI p i l V I | r w
1 M « 1 # W n H i M & k & im # v m & t m m
Wt. Xr**tm « d t i o r « r
tad®** &»**«
the telephone tbat tiugr will endearor to
do*® tfe* a**otiations for the organization of tha m m bank or«r thia
___ »ji-»
__ .A
IIMlBHMKBt*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
COPY
FEDERAL R^SERVTl BANK OF MIMIEAPOLIS
June 10th, 1933
Mr. Chester Morrill, Secretary,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Morrill,
I quote as follows from your wire of May
25th:
’’State bank upon admission to membership in Federal Reserve System must
secure license from the Secretary of the Treasury to perform all usual
aad normal banking functions except as otherwise prohibited.**********
r•
K 4
,inon your recommendation.11
License w ill be iss>ueu up
^
Under date of June 10th Secretary Woodin wired Governor Geery
as follows:
"Having been advised by the Federal Reserve Bank of Minneapolis, Minn.,
that the following named bank has been admitted to membership in the
Federal Reserve System and they recommend that a license be issued to
the institution I hereby direct the Federal Feserve Bank of Minneapo
lis, Minn,, acting as my designated agent, to issue a license in the
form heretofore prescribed by me to transact normal banking business
effectove Saturday, June 10, 1933* to the Peoples State Bank of
Bloomer, Wisconsin.”
The actual wording of the license mentioned in the above
wires runs in part as follows:
"Peoples State Bank, Bloomer, Wisconsin, is hereby permitted to open
on the loth day of June 1933, its office in the following place
Bicoiner, Wisconsin, and to perform its usual banking functions, ex
cept: ************M
It is a fact that this bank has been operation as a going
institution since it was dischardge by Presidential proclamation and the
consent of the Commissioner of Banks of the St^te of Wisconsin, directly
following the termination of President Roosevelt’s bank holiday.
Is it not an anachronism and might it not lead to possible
difficulties to license this bank to open as of june 10, 1333> whereas it
has actually been conducting business for a considerable previous period.
Isn’t it possible that actual lawsuits might be satrted against the bank
on the basis that the bank operated without permission up to June l©th?
Wouldn’t it be possible to ^et a ruling from the Secretary
of the Treasury which would change the wording on the license to read
that the Peoples State Bank cf Bloomer, Wisconsin, was permitted to ppen
eproduced from the Unclassified / Declassified Holdings of the National Archives
■*
DECLASSIFIED
Authority V)WD3oo2fe
- '
Mr. Chester Morrill, Secretary, ,
Federal Reserve Board,
June 10, 1933
(2)
on that date when the bank actually did open? I am holding up the delivery
of the license in this particular instance until I hear from you.
I have written you trusting that you will give an immediate
response, as the matter has come pp after you were closed in Washington with
Saturday*s half holiday, but I wish you would vdre your response so that
this license will not he unduly withheld.
With best personal regards,
J. N. Peyton
Chairman of the Board.
JNP;b
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority M D 3 0 0 2 b
PATRONS ARE REQUESTED TO FAVOR THE COMPANY B Y CRITICISM AND SUGGESTION CONCERNING ITS SERVICE
D O M E S T IC
CABLE
TELEGRAM
FULL RATE
DAY LETTER
DEFERRED
NIGHT
NIGHT
MESSAGE
LETTER
WEEK END
NIGHT
LETTER
LETTER
P atrons should check class of service
desired; otherw ise message w ill be
"'N. transm itted as a full-rate Z '
\
communication.
(
N E W C O M B C A R L T O N . P R E S ID E N T
CHECK
J
WESTERN
UNION
12i l A
ACCT’G IN F M N .
T IM E FILED
S
J . C . W I L L E V E R , F IR S T V IC E -P R E S ID E N T
/ /
r
Send the following message, subject to the terms on back hereof, which are hereby agreed to
tom 9§ m s .
Hon* W. K* Kellogg,
Battle Creek, Iftohigaa*
Mjr dear Mr . Kelloggs
Is are informed by our representatives, Messrs. Stoddard & Fniton, that
fw
doeldod not to assist ia the banking situation at Battle Croek* fhis
It vory dietree ting aad m urge, ia the Intoroote of tho oeanwnitfr whloh you
have largely built and which mean* eo auoh to you, that you reeoasider aad
fttrnish that leadership whloh is so badly needed ia this crisis*
the Reconstruction Finance Corporation is willing to go forward with tho
plan heretofore propoaod by you m covered by your telephone conversation with
Mr* Jones of last Friday* whloh wae to tha efftot that a now national bank
would bo formed with #4*000,000 new oash capital, which now hank would ais\m
the depoeits ia full of tho old Msrohants Xatioaal Bank aad the City Rational
Bank, fho Hocongtruetioa Pinanoo Corporation would eubeoribo for $2*000*000
of Preferred Stock to hoar dividends for tho first five years at 8^ and there
after at •%* Ala# tho Heeaastrwetiea Flaaaoo Corporation would lond you for three years
it a
rat©-ot^ intoroit #1*700,000 with whlfh to buy that aaount of Sooond
Preferred 3teok* tho retaining #280,000 to ho subscribed by you or others them*
In oddltloa to tho i W i i w* aro prepared to g i n tho new baak aay support
that it m y need to properly serve t o people of Battla Creek aad to fully
protoot its depositors, tad vory earnestly urge that you personally assume
tho aooossary leadership tad got the people of Battlo Crook to swot this emergency.
Tou are a grsat philanthropist aad it is doubtful if you will ever have another
opportunity to bo as helpful to your neighbors aad friende of a lifetime*
fho President joins in m s rofuost aad wit* you aad the people of Battlo
Crook tad Miohigsa to Imamthat it is his purpooo aad tho purpose of his Admin
istration inoludlag tho ageneioe whloh wo represent to staad shoulder to shoulder
with every oessamity in tha United States wher* similar eatrgenoies nay develop*
fho bankiag situation throughout tho country Is rapidly becoming well stabilised
•ad another failure in Miohigsa, especially ia a oity whoso eitlseai aro ablo
to avert it* would bo extreaoly unfortunate.
The president suggests you call
a meeting of those of your citizens most able to help and present the matter as
a civic proposition.
jj
m,/»* woomv#
Seoretary of tho Treasury*
EUGESB It. BLACK,
Oovora r of tho Federal Reserve Board.
JESSl H* J0HE8,
Chairmen* Rooonstruotion Fiaaaoo Cerporatiea#
THE QUICKEST, SUREST AND SAFEST WAY TO SEND MONEY IS BY TELEGRAPH OR CABLE
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority
ALL MESSAGES TAKEN
A IS COMPANY ARE SUBJECT . ^
4E FOLLOWING TERMS:
T o guard against mistakes or delays, the sender of a message should order it repeated, that is, telegraphed back to the originating office for comparison. F or this,
one-half the unrepeated message rate is charged in addition. Unless otherwise indicated on its face, this is an unrepeated message and paid for as such, in consideration
whereof it is agreed between the sender of the message and this company as follows:
1. The com pany shall not be liable for mistakes or delays ih the transmission or delivery, or for non-delivery, of any message received for transmission at the unrepeated-message rate beyond the sum of five hundred dollars; nor for mistakes or delays in the transmission or delivery, or for non-delivery, o f any message received for
transmission at the repeated-message rate beyond the sum of five thousand dollars, unless specially valued; nor in any case for delays arising from unavoidable interrup
tion in the working of its lines; nor for errors in cipher or obscure messages.
2. In any event the com pany shall not be liable for damages for mistakes or delays in the transmission or delivery, or for the non-delivery, of any message, whether
caused b y the negligence of its servants or otherwise, beyond the sum o f five thousand dollars, at which amount each message is deemed to be valued, unless a greater
value is stated in writing b y the sender thereof at the time the message is tendered for transmission, and unless the repeated-message rate is paid or agreed to be paid,
and an additional charge equal to one-tenth of one percent of the amount b y which such valuation shall exceed five thousand dollar;!.
3. The com pany is hereby made the agent of the sender, without liability, to forward this message over the lines of any other com pany when necessary to reach
its destination.
4. Domestic messages and incoming cable messages will be delivered free within one-half mile of the com pany’s office in towns of 5,000 population or less,
and within one mile of such office in other cities or towns. Beyond these limits the com pany does not undertake to make delivery, but will, without liability, at the sen
der’s request, as his agent and at his expense, endeavor to contract for him for such delivery at a reasonable price.
5. N o responsibility attaches to this com pany concerning messages until the same are accepted at one of its transmitting offices; and if a message is sent to such
office b y one of the com pany's messengers, he acts for that purpose as the agent of the sender.
6. The company will not be liable for damages or statutory penalties in any case where the claim is not presented in writing within sixty days after the message
is filed with the com pany for transmission.
7. It is agreed that in any action by the company to recover the tolls for any message or messages the prompt and correct transmission and delivery thereof shall be
presumed, subject to rebuttal by competent evidence.
8. Special terms governing the transmission of messages according to their classes, as enumerated below, ,shall apply to messages in each of such respective classes
in addition to all the foregoing terms.
9. N o employee of the com pany is authorized to vary the foregoing.
THE WESTERN UNION TELEGRAPH COMPANY
IN C O R P O R A T E D
N E W C O M B C A R L T O N , PRESIOCNT
CLASSES OF SERVICE
TELEGRAMS
A full-rate expedited service.
N IG H T MESSAGES
Accepted up to 2:00 a . m . at reduced rates to be sent during the night and deliv
ered not earlier than the morning of the ensuing business day.
Night Messages may at the option of the Telegraph Company be mailed at des
tination to the addressees, and the Company shall be deemed to have discharged
its obligation in such cases with respect to delivery b y mailing such night messages
at destination, postage prepaid.
DAY LETTERS
A deferred day service at rates lower than the standard telegram rates as fol
lows: Ope and one-half times the standard night letter rate for the transmission
o f 50 words or less and one-fifth of the initial rates for each additional 10 words
or less.
SPECIAL TERMS APPLYING TO DAY LETTERS:
In further consideration of the reduced rate for this special D ay Letter service,
the following special terms in addition to those enumerated above are hereby
Esrccd to:
A. D ay Letters m a y b e forwarded b y the Telegraph Company as a deferred
service and the transmission and delivery of such D ay Letters is, in all respects,
subordinate to the priority of transmission and delivery, of regular telegrams.
B This D ay Letter is received subject to the express understanding and agree
ment that the Company does not undertake that a D a y Letter shall be delivered
on the day of its date absolutely, and at all events; but that the Com pany’s obliga
tion in this respect is subject to the condition that there shall remain sufficient
time for the transmission and delivery of such D ay Letter on the day of its date
during regular office hours, subject to the priority of the transmission of regular
telegrams under the conditions named above.,
N o employee of the Company is authorized to vary the foregoing.
N IG H T LETTERS
Accepted up to 2:00 a.m . fo r delivery on the morning of the ensuing business
d a y, at rates still lower than standard night message rates, as follows: The stand
ard telegram rate for 10 words shall be charged for the transmission of 50 words
or less, and one-fifth of such standard telegram rate for 10 words shall be charged
for each’ additional 10 words or less.
SPECIAL TERMS APPLYING TO NIGHT LETTERS:
In further consideration of the reduced rates for this special N ight Letter serv
ice, the following special terms in addition to those enumerated above are hereby
agreed to:
Night Letters m ay at the option of the Telegraph Company be mailed at
destination to the addressees, and the Com pany shall be deemed to have dis
charged its obligation in such cases with respect to delivery b y mailing such Night
Letters at destination, postage prepaid.
N o employee of the Company is authorized to vary the foregoing.
FULL RATE CABLES
An expedited service throughout.
C ode language permitted.
DEFERRED HALF-RATE CABLES
Subject to being deferred in favor of full rate messages for not exceeding 24 hours.
Must be in plain language of country of origin or of destination, or in French. This
service is in effect with most countries throughout the world.
CABLE N IG H T LETTERS
An overnight, low-rate, plain-language service. Delivery by mail beyond London
will be made if a full mailing address is given and the words ‘ ‘Post’’ and ‘ ‘London”
are written in the address. Minimum 20 or 25 words charged for.
WEEK-END LETTERS
A t still lower rates. Similar to Cable Night Letters except that they are accepted
up to midnight Saturday for delivery M onday morning, if telegraphic delivery is
selected. Minimum 20 or 25 words charged for.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlKD3oQ2fa
June 9, 1932
memorandum j o b . mr. milt,
Deputy Comptroller,
Treasury Building,
Washington, D. C.
There is an apparent lack of prog™**" ln-bgriv reorganizations in
Michigan aad there are several reasons for this continued restriction of hank credits*
1. The hanks not licensed are generally in terrible shape* Commissioner Reichert
is said to have stated that he has no hanks not licensed that even approximate
solvency, and -generally speaking, the unlicensed national hanks are in the same catsugory. For the national hanks the paramount problem at present is to keep open many
of the banks already licensed*
2. The cash reserves of a vast majority of the hanks in Michigan were on deposit
with the Guardian National Bank or the First National Bank in Detroit, and as yet
only 40$ of the balance in each of these banks has been released. Incidentally, the
one thing that is logically possible and which will quiet political ballyhoo and public
clamor is another distribution in each of the above banks, if necessary through the
medium of a loan from the Reconstruction Finance Corporation. This is possible, to the
knowledge of the writer, in the case of the Guardian National Bank as they are able
now to retire their first loan from the Reconstruction Finance Corporation.
3. The Governor*s holiday in Michigan, which came Several weeks before March 4th,
enabled local and state politicians to brew a myriad of verbal panaceas which, to the
lay mind, made sense but which were, in the face of facts, practically Impracticable.
As a natural result depositors in Michigan believe that all the unlicensed banks are
in fair or good shape if the government, state or national, would allow them to open,
and the bankers generally are glad to accept this premise, subject, of course, to the
added condition that the government, by some magic, furnish the cash for the payment
of deposits*
4* The bankers, because of the facts and conditions stated above, have hoped and
believed that the politicians could pull the rabbit out of the hat and thereby trans
form their mistakes of the past twenty years into acceptable assets, and the bankers,
therefore, have "just sat” rather than to admit their errors and effect reorganization
on some feasible plan.
There has been enacted in Michigan a statute providing for the re
organization of banks. It requires, in brief, that the bank publish for sixty days
its plan of reorganization, during which time any objecting depositor can have recourse
to a court of competent jurisdiction to file his complaint in regard to the proposed
plan. The decision as to the equality and acceptability of the plan is then up to the
court* If this plan is approved, assets equal to a stated percentage of the deposits
are segregated in a trust fund to pay these automatically waived deposits* Michigan
statutes have heretofore required state banks to segregate certain assets for the pro
tection, first, of savings deposits, and in liquidation these assets are used to pay
savings depositors in full. If the savings depositors are not paid in full they share
ratably in the remaining assets with the commercial depositors. However, the present
plan of reorganization gives no preference to the savings depositors, and herein lies
one of the many reasons which cause unbiased attorneys to predict that this reorgan
ization statute will not hold water.
The present laws of Michigan do not provide for state banks to be
capitalized by preferred stock, and because of the lack of availability of any capital
many state banks are contemplating in their reorganization plans conversion into
national banks.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority
Memorandum For Hr* -Await
-2-
6/9/33
Gradually, and with, the add of the local branch of the Reconstruct
ion Finance Corporation, the hanks, as well as the people of Michigan, are 'beginning
to realize that they must do something themselves to "bring about the rehabilitation
of their banks. Mr. F. T. fisher, Jr., local Reconstruction finance Corporation
Agent, states that it has been only in the past two weeks that the agency has been
contacted by bankers at large, and he states that in the majority of cases the demand
is for a new national charter.
It is the belief of the writer, as well as officials of the Detroit
Agency of the Reconstruction Finance Corporation, that if any banks that are at pres
ent licensed are allowed to fail the whole state of Michigan will again be thrown
into a chaotic condition.
(s) A. J. Mulroney
A. J. Mulroney, Examiner.
reproduced rrom the Unclassified / Declassified Holdings of the
National Archives
declassified
Authority VJND S o o z t ,
Th* f o l l o w i n g banks in the larger cities in Michigan, although
licensed, are in such condition that should any licensed hank he allowed to fail
these hanks would, no doubt, have a hard time surviving:
GRAND RAPIDS: The Old Kent Bank open unrestricted, member of Federal Reserve
„ System, condition precarious, reserve deficient, $20,000,000.00 hank.
BATTLE CHEEK: The hanks in this community are the Old Merchants National Bank, the
Central National Bank, the City National Bank, and it is questionable
whether any of these hanks would survive if the Old Merchants is allowed
to fail.
KALAMAZOO:
First National Bank, precarious condition, making only fair progress,
is borrowing from Reconstruction Finance Corporation.
LANSING:
No national or member banks open, however, there are three small state
banks, two of which are open on unrestricted basis.
PORT HURON:
First National Bank, open on an unrestricted basis, heavily indebted to
the Reconstruction Finance Corporation. They are trying at present to
recapitalize. Would not be able to stand many more withdrawals.
FLINT:
Has Citizens Commercial and Savings Bazik, non-member, open without
restrictions, making fairly satisfactory progress as their deposits
have increased approximately 20$ since the holiday.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlKDaoozfa
i f//-
F o r m 148Tb
/
/
T E k lG R A M
. / ---- j T
FEDERAL* iRESERVE BOARD ji
i t •'•n h
Lj S
W A SH IN G TO N
June 8, 19 3 3
Newton - Atlanta
In response to paragraph B of Trans 17 6 9
AP*il 13 you reported
Hibernia Bank and Trust Company and Canal Bank and Trust Company of
New Orleans as operating under restrictions but have not reported any
change in the status of either bank although their successors, the
Hibernia National Bank and the national Bank of Commerce, opened for
business on Hay 22.
Please wire present status of two non-licensed
state bank members.
SMKAD
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
June 7, 1933.
3:45 P.M.
Mr. Preston advises that Mr. Kellogg lias definitely turned down
the proposition of a fifty-fifty arrangement with the Reconstruction
Finance Corporation on $4,000,000 of preferred stock.
It appears
that one of his grandsons and the head of the Kellogg foundation are
now endeavoring to work out a counter-proposition along with Mr.
Green, President of the City national
Bank and Trust Company, whom
Mr. Preston describes as “the other rich man in town11 and Mr. Kellogg*s
partner.
Mr. Preston states that Mr. Green, has just left him to go to
k meeting with the\grandson and the foundation man, and so there is nothing
definite to report fts to the counter-proposition which will he made. He
\
said, however, that Ihe thought Mr. Kellogg would he willing to take$l,000,000
of preferred stock, with the Reconstruction finance Corporation, and a sugges
tion apparently has "been made that the Reconstruction finance Corporation ad
vance $1,500,000 on the hank buildings.
Mr. Preston said that he understood
Mr. Kellogg would not he willing to come in unless the hank got $4,000,000 in
cash, hut that no suggestion had been made as to how the additional $500,000
might he raised.
5 P.M.
Mr. Preston just called again and said that the following counterproposition is heing submitted to Mr. Jones for his consideration:
Mr. Kellogg to take $1,000,000 of first preferred stock
Reconstruction finance Corporation to take $1,000,000 of first
preferred stock
Reconstruction finance Corporation to make a loan of $2,500,000 on
the two hank
buildings and charged-out assets.
The Old Merchants National Bank Building is carried on its hooks at
$2,300,000 and the City National Bank Building is carried at $1,155,000.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VJMD&>02k
- 2 We have -understood, that the charge-off8 would aggregate $3,300,000, the amount
of the entire capital funds of the two old institutions.
Mr. Preston could
not give me any definite information as to the real value of the two bank
"buildings •
He said that Mr. Green, who is participating to the extent of $250,000
in Mr. Kellogg*s preferred stock, felt that this proposition was the "best that
could he gotten, and Mr. Preston feels that unless the deal is closed
approximately as submitted, the negotiations are ended#
Qe pointed out that
the counter-proposition contemplates $4,500,000 of new money, whereas previous
propositions were based on $4,000,000, and indicated that this fact offered
some leeway in consideration of the present proposal.
He appears confident
that although the proposal will not clean up the bank, it will save it, and
says that when the public finds that Mr* Kellogg has put $1,000,000 into the
institution and that the Reconstruction Finance Corporation is also a stock
holder, the situation will settle dovrn.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlUDaoozb
\
F E 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 3 0
OFFICE
OF
SO U T H
LA SA LLE
Far CIRCULAR'!
S T R E E T
THE
C H A I R M A N O F T H E B O A R D AND
June 7, 1955.
FEDERAL R E SE R V E AGENT
Federal Reserve Board,
Washington, D. G.
Mr, Miller— .
w J p ' 1„
pleasenoS^initial and *
Beturn to Secretary’s Office
Gentlemens
# Supplementing ngr report of^xesterdfi^ bn state member
banks unlicensed in the State of Michigan, I am now enclosing
a similar report on all state member banks unlicensed in
Indiana, Wisconsin, Illinois, and Iowa.
EMS FC
You will note that
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority UUD 3oozfa
Mr* Stevens
June 6, 1938
Mr* Young
I am giving you herewith information concerning all of
•nr State member banks in Indian# whloh have not aa yet been lioensed*
8t* Joseph Valley Bank* Elkhart* Wi have conferred
on several occasions w $ W o #1*1cers or the Viank, and our representative
recently made an asset examination of tho institution* It appears that lt
*111 be extremely difficult to raise eapltal whloh. In addition to tho problem
of borrowed money and extremely high volume of undesirable assets, makes this
situation a difficult one to handle. They recently submitted a plan to us
whloh wo could not approve. Briefly, It provided for a
waiver outright
by depositors, the remaining 66% of deposits to be frosen and released pro rata
as collections are mado from assets*
At their request withdrawal papers have
boon forwarded, and we feel their applloation will be filed within a few days*
Dickinson Truat Coapaay, Blohatmd* Our examiner made
an asset examination oiTtlie institution, wfoiok refloeted a muoh higher volume
of criticised assets then that contained in the State examiner's report* We
have today written Deputy Bank Commissioner Barr that the plan tentatively
agreed upon a few days ago could act be approved due to the fact that our
examiner indicates that approximately $280,000 cut of total assessment of
#900*000 can be collected from stockholders* Plan as submitted by State
Banking Department provides *for an assessment of #160,000 and reduction in
Capital from #500,000 to #160,000 and a *0# Outright waiver of deposits* We
have suggested to the State Banking Department that another conference be
held and it may be possible that a reorganisation can be effected*
Terre Haute Trust Company, Terre Haute. We hav* conferred
cm several occasions witko^fioers, directors and depositor1s committee of
subject bank, and have approved the plan for the organisation of a now bank,
part of the eapltal to be furnished by the R. F. C*f the new bank to assume
B0S& of the deposit liability* Depositor's coaselttee reports today that they
arc confident that the necessary capital can be raised and that depositors•
agreements can be secured*
St* Joseph Loan & Trust Company, South Bend*
withdrew from mmabersfcdp/effective March 3i, iSsi/
P* S. Bonk k Trust Ckagany# Rochester*
from membership, effective iiwrck
IMi#
'
Voluntarily
Voluntarily withdrew
Reproduced from the Unclassified I Declassified Holdings of the National Archives
~~
DECLASSIFIED
Authority V)MD3002b
<I
Jt
*B*
WISCOSSII
Far— r« & M§r**>aati Stitt Baak*S*n**a* Ko pXaa aa y*i
hat b**a a*r**d up*a for r* ^ j w l o * of ik* Iarfcliirfcion. fh* »tt*r wiXX
b* t*fc*a vp witk th* 8tat* B«nklag D*p«rt**Bi vitfcia a f*w day**
IUJM0IS
Stat*
Ex**utir* vi«*»pr*sld*i*%
tf (tebft Cuba
hat h* would tubalt « plan f*r
if: th* baak oall*d * J m
af*.«ail
met *«a*id«ratiea withia a f *w 4ay«* Xt vill provide t m a 8Q$C w i w *f
d*p®«it« and aa ft***««ft*at on th* capital* G*apl*t* d*tall* set ar*i labl*.
II*- ftr* #eep*ratlaf with th* Stat* iftBldiig D*p«rtamt is r*gard t* tit* lavtltw
ti«a*
XOH l
W* vill har* *a* of ©nr *aaxiA*r> ▼!*!% th* Stat* tekl&c
pttiiM* t* **ffif*v vlth baolc&ag off1*1*1* a* t*
r n r | u lt t t ia at tte f«U«wlag tu k i whl.lt *r« q < rttl> | aatw tk» prorlrion*
*«•»«• m . u i i
Cluurt*]* Oftk
Fajriwrs Stat* mum#
Chariton
Stftt* Savin*. Baak#
Fairfl*Xd
Iowa Stat* Saving* Baak,
Cltis*a* Saviaga Bank,
9ilWB
Fairbask
Fairbaak Stat* Saak,
♦ M*«h*ai**viXX* Truat * Savinga ,M*«haai*rrill*
(*) R***at report ladl**t*« baak r*l«fti*d
trm
Scoat* FIX* XXX*
|H «y jgyin^fiyi ffily two of th* *ttXl#*&**d — HltlT bft&k* la
x«*ft vdXX b* abl* t * *ff**t ft r*ergaai»ati©a whioh thia off!** **a approv*.
MMiWM
C* S* Y<
L
<*/
&
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlHD3 0 0 % ,
F o r m N o . 131
OfficeCorrespondence
FEDERAL RESERVE
BOARD
To ___ Governor Black,
From
FW
June 6 . 1935.
Subject:
Mr« McClelland#
2— 8485
Mr. Preston just called and said that up to 11 o ’clock today the Old
Merchants National Bank and Trust Company lost $32,000, as much as their
entire losses yesterday.
Three fairly large savings accounts amounting to
$4,000, $5,000 and $7,000, respectively, have been closed out.
Mr. Preston
says that it looks as though the uncertainties attached to the negotiations
last week are having an effect on the public.
can last for more than two or three days.
He does not see how the hank
They had this morning $310,000 in
cash, $250,000 available from the federal reserve hank loan and $63,000 in
unused float at the federal, a total of slightly less than $625,000.
Stoddard, the Reconstruction finance Corporation man, is in Grand Rapids
today, hut has an engagement with Mr. Kellogg tomorrow.
Green, President of
the City National Bank and Trust Company, tells Preston that he understands
from Stoddard that he has heen authorized to offer Mr. Kellogg the same class
of stock as the Reconstruction finance Corporation is taking, and a period of
five years in which to make payment.
Although the proposition has not yet
heen put up to Mr. Kellogg, Preston thinks he will go along on that hasis.
He says Mr. Harris, of the Harris Trust and Savings Bank of Chicago, advised
Mr. Kellogg to go ahead as a civic matter, and not as a business proposition.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority V lU D aoozfc.
F o r m N o . 131
AX tt*
4”+
4
OrticeCorrespondence ^
FEDERAL RESERVE
iw Junee.1933.
In a telephone conversation this morning, Mr. Preston stated that
his latest information from Battle Creek: is that the negotiations with
Mr. Kellogg have gone over 'until Wednesday.
He stated, however, that on yesterday the Old Merchants National
Bank and Trust Company lost only $42,000, while the deposits at the
^Central National Bank and Trust Company increased about $35,000, and
those of the City National Bank: and Trust Company about $19,000.
He
said he thought this quieting of the situation was due to the impression
which has become prevalent in the city that the Government is taking care
of the banking situation and there is nothing to worry about.
He also
stated that the federal reserve bank has not yet released any part of the
proceeds of the $250,000 loan which has been approved, although it may be
necessary to do so today.
He seemed to feel that the situation would rock
along for a few days.
He also mentioned, in a confidential way, his feeling that the Recon
struction finance Corporation should have a better man conducting negotia
tions.
He referred to the inability of the present representative to carry
negotiations through after preliminary arrangements had been made with Mr.
i
Kellogg.
I inquired of Mr. Preston how the City National Bank and Trust Company
came into the picture and he stated that they were being brought into the
consolidation in order to provide management for the new institution.
Al
though that institution, as well as the Central National Bank and Trust Company,
is in a difficult position its management is regarded as the best of the three
banks in Battle Creek.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
Keproduced from the Unclassified I Declassified Holdings of the National Archives
declassified
Authority
F E D E R A L R E S E R V E B A N K O F C H IC A G O
f y
i
•’■"""cF [)/
O F F I C E O F TH E
C HAI R MAN O F T H E B O A R D AND
Mr. HamlinJ
Nr. James
S'
?,s
■»****
FEDERAL R ESE R V E AGENT
Mr. Miller.
* * * * * * * sj
Federal Reserve Board
wi
Washington, D. C. Please fx is 'M H A iflr
Refem to
Gentlemens
I enclose for jour files a report from our Mr. Pitman as to
the condition of all the state member banks in Michigan (that part of
which is in our district). Mr. Pitman, as you know, has bepn working
at Lansing with the State B a n k i n g Commissioner on this matter for some
weeks and every state member bank which is not yet licensed has been
interviewed with results as shown in this report.
Tou will note that a considerable number of them have adopted
plans which have been initiated lay us and such plans are under way to
consummation. You will note another substantial group that prefer to
continue under a conservator until a better position can be established
before reorganization is attempted^ also, a third group where prospects
of reorganization seem to be remote. One contributing cause to this
latter situation is that the banks are so small that when a substantial
portion of their deposits are waived and put in a trust fund, the
resulting deposits in the reorganized bank would not warrant the expense
of conducting the institution.
We are following these various cases, but it is probable
that ultimately a substantial number of the banks in this group will
have to go into liquidation or otherwise resign their membership in the
Federal Reserve ^7 stem.
EMS HH
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority V)NID3 0 0 2 k
Juno 5 , 19S3
Ifoaorandm for Mr. 8tovoao
Tram
Hr. Pitanaa
I aa giving yoa horooith iafcraatloa ooaooraiag all of th* otato
Mabcr banka ia Miohigaa whioh havo not ao y«t boon liooaood. la aaowor to tho
quoation involving tho aattor of lnitlativo 1 boliovo that oaa boot bo oxplainod
by tho prooodaro followod ia tho iatorrloar of thooo inatltutiona.
Tho Michigan Dopartaoat dooigoatod oao aaa who oat with so oa all iatorviowo rolativo to propoood roorgaaitatioa plana. la addition four Miohigaa ox~
oaiaoro w o aaaignod to givo aoolotaaoo ia aattora involving aonbor banko. Baoh
day oao of thooo oxaaiaoro oallod tho group of banka whioh woro to bo iatorvioaod
tho folloviag day* la viow of thlo faot, 1 ohould my that tho work wao ooopora*
tivo throughout.
Tho folloviag io a liot of tho baako* togothor with tho otatao at tho
proooat tiao APRIAH STATS SdVXiQg BAB!, AD&IAB, MICHICUB
Mo pa\d£oaiioiaTiiw'ii' yoiooon *a<U ia i W oaao of thlo inatitatioa. It io tho
dooiro of tho offloort of tho b u k to offoot a roorgaaitatioa, bat 1 as iaollaod
to qaootioa tho probability of oaoh a mom* It appoaro that it will bo oxtroaoly
diffioalt to raioo oapital whioh ia additioa to tho problo* of borrowod m
ummy
nakos thio oltaatiott a diffioalt on* to haadlo. Poaaibly at a lator dato oao of
tho roaaiaiag looal boako may bo ablo to tako ovor at loaot a portion of thio ia•titutioa, thoroby roloaoiag iom of tho dopooitoro* faado aow lapoundod*
commebcial sayihqs a m , mam, michioah
Publioaiioa io uador way lor 'IKo roorgaaitatioa of thio iaotitutioa aador a plaa
v h i ^ will roloaoo m of tho dopooito to dopooitoro*
LSIAWBE COTJlfTT SATISOS BUI, APBIAI, MICHIQAI_
Putlioaiioa io boiag mi do of a 'plaa w\A*h will roloaoo
to dopooitoro.
60# of tho proooat
dopooito
COMMERCIAL k SAYIM&S BAMj ALBIQB, MICHIftH
It 1* ikodooiro o£ iko aaaagonoat ofikia bank to roorgaalto bat thoy approoiato
that it will bo diffioalt tor thoa to offoot any plaa uatil borrowod aoaoy, whioh
io oqual to approxiaatoly ono-aixth of tho dopooit liability, hao boon liquid*tad.
1 oa adriood that tho ooaoorvator io aakiag ovory offort to aoooaplloh thio aad at
tho oaao tlao arraago for oapital in ordor that dofiaito plaao aay bo adoptod.
It mrald appoar to ao that a raorganitatioa aay bo offootod at a llttlo lator dato
alpma trust & adriias bams, Aifaa# mcmm
ia tkia inaianoo it appoara that anan&roly now groap of otookholdoro io aoooooary
to oupplaat tho proooat ovnora. Tho prooidoat of tho haak* who io a aa^or otookholdor*
adriooo that it io lapoooiblo for him to aoot aa aaaoaaaont. Thoroforo, aa attoapt
io boiag aado to fiad oatoido oapital*
Aa adriood that a aow ooaoorvator hao booa
appolatod aad io working toward tho oad of a roorgaaitatioa at thio tlao*
la thio
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
Mr. Stevens
* 2
ease also borrowed money oreates a barrier. In view of the slse of this institu~
tion and the importance of It in northeastern Michigan, it is sgr opinion that
eventually individuals of sufficient worth oan bo found to tako an interest in
tho bank*
ARMADA. STATE BjMt, ABMADA, MICHIQAI
lo publioailon ia umiar way la ihis Instance, duo largely
liquidity and tho problem of raising now oapital*
Sons disoussion was had relative to tho merger of tho two
but nothing dofinito has be«* determined at this time* It
now capital and suffloiont liquidity oan bo provided for,
bo had at this point*
to an extremely low
institutions at Amato,
is wy opinion that if
a reorganisation oan
FARM ms STATS BABX, ABMADA, MICIIQAI
Boeauso of iko exiromely M g k amouni of undesirable assets in tho oaso of this
bank it is tho opinion of tha wrltor that tho only answor is reoeivorship* This
appoars to bo appreciated by the management of the basic and unless suffloiont
liquidity oan be provided to provide for a merger without injury to the Armada
State Bank, I have no doubt but that liquidation will be the final result.
BIS RAPIDS SAYIXOS BAIK, BIO RAPIDS, MICHISAK
Reorganisation appears impossible, particularly at this tine* Representatives of
the bank believe it inpossible to ralee new oapital and to ereate a liquidity suf
ficient to reorganise without danger* Borrowed mon«y Is equal to approximately
one-sixth of the deposit liability*
BLAB CHARD STATE BAII, BLAB CHARD. MICHIQAI
Reorganisation woul/Ve
possible in tills instanee provided new oapital oould be
had. However,the management of the bank doubts the advisability of continuing In
business due to the United amount of business nhieh the bank night reasonably
expect. On a reorganisation basis deposits would anount to only #120*000*
The
bank is to oontinue under conservator until definite plans oan be had whioh will
satisfy looal people*
CASS CITY STATI BABK, CASS CITT, jDCHOAI
Ike oaskier, Mr. Anion, owns $£8,500 of tke present oapital of $40,000* Bo appears
flnanoially unable to make assy reasonable payment toward an assessment and, there
fore, it would appear impossible to expeet any asaistanee from present stockholders*
Mr. Anton felt the best plan in this oase urns to oontinue on under conservator at
least for a tin*. Ihlle borrowed money is not a problem# oash liquidity uas so low
it appeared undesirable to attempt a merger of this bank with the other bank in
Cass City referred to next below*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
f
Mr. Stevens
Authority VlNDaotttfa
- 9
PINBEY STAX* Bill, GAMT O MICHIGMUI
Mans are
far a reorganisatioa on the basis of a 60j£ release to
depositors* Oash position of this bank is about 21£ with no borrowed money*
While a merger of tho othsr bask with this institution nas diseussed, tho offioors
of tho Plnnsy State Bask did not appear willing to inpair thoir own oash position
by taking over tho frosen assots of thoir eempetltor bank.
E lt o n c o m n s a j x m b m
g, gha&loytk, michioai
Borroiroi.money in ifeis ease is equal to aVeut 12% of tho doposit liability with a
relatively high oash position to offsot* However* tho offioors of tho bank believe
it advisable to eentlflne on undor oonsorvator in an attempt to eliminate thoso
borrowings and to insnro a good sash position boforo opening on a^estrleted basis*
1 believe eventually this bank san bo reorganised, or porhaps consolidated with
tho First National Bank at Charlotto.
CHSSAXIia STAT I BAM, CHM
AMUM, KICHIQAI
Hans.are Wing published for riorganisaiion of this bask bat it appoars tho in
stitution will withdraw froa membership and go on a rostrlotod basis*
Sinoo borrowod asofly is equal to about 12£ of tho proposed doposlts and with a low liquidity
at this tints this probably lo aboot all that oan bo oxpootod unloss tho bank woro
to eontime undor oonsorvator for a rathor indofinlto period* Tho plan of reorganise*
tlon sails for a 80* rotum to depositors*
SIATl M
AM
K OF CBOSIKLL, CSQgmBLL, MICHH U H
Wblioaiion i« undor way ^or iiio r«organi*ation of this bank on tho basis of a
SOjC release*
m v i s o i stats bab k , bavisom , m i c b k u i
Tho ooosorraior, who' is also a largo stoekholder* has not as yot made his reeonmenda*
tlons in this oaso* It is tho opinion of tho writer that reorganisation oan bo offooted ultimately but it will leave a rather United volums* Thiro is no borrowed
mammy to interfere and limpidity is reasonably higpu The matter of oapital, hoeever,
appears to be a definite problem to be solved#
MOHROE CQWir RA8K, POEMS, MICHIQAI
lorrowel monqjr is a probism sinoo
squals #71,000 as oonpared to a deposit liability
on the basis of a $0% reorganisation of #287,000* The oonsorvator doubted the bank's
ability to reorganise slnse he believed oapital would be extremely diffioult to raise*
Aside frsm this the frosen eondition of the bank would soma to be a barrier toward re
organisation on an uurestrleted basis* It is the opinion of the writer that liquida
tion will be the ultimate answer*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
J-
Mr. Stevens
•
4
ILK RAPIDS STATB BAi k , blk rapids , michiqam
The directors of the bank are extreaeiy anxious to reorgaalse thia institution.
However, borrowed noaegr of #68,000 oreates a considerable barrier sinoe deposits
on a reorganisatioa of
would equal oaly #163,000* It was agreed that tha bank
would eontlnae under oonsertator ia aa attempt to provide for greater liquidity,
either through liquidation or refinancing* On tho basis of tho preseat condition
of tho baak it appears doubtful whether or not a reorganiiation oaa bo effected.
Qwmw QQmn satmm bjuhl, nix?,
michioam
Publioationia under nay fora reorganisation oa tho basis of a 60£ release.
There appoara to bo nothing to intorforo with this reorganisation and it is be
lieved tho bank wiXX bo ia a pooitiaa to reopen lato la Juno .
UHIQg INDUSTRIAL TRUST k SAYINGS BASK, FLIBT, MXCHIdAl
Plans are under way for reorganisation on the basis of a SpjC release aad aro boing
published at thio tine* However, tho writer is rathor doubtful of tho ability of
this bank to moot tho requirement* for lleeasiag* Tho groatoat difficulty appoara
to bo that of relieving tho baak of liability for borrowed money and oraating a
liquidity sufficient to »oot tho needs. tho conservator appoara confident ho oaa
accomplish this, however*
AilEBXCAS STATI BAXK* FRAH&iaanJIli, MXCHXQAI
Plans aro being published. for "roorgani'ialioa oa tho baaia of a 50JC release*
Thoao plans aro boing published ia aplto of a Xargo amount of borrowed money siaoe
tho aanageawat appoar oonfidont that that problsa oaa bo net* However, tho writor
la doubtful of tho ultimate outcome unleaa thia bank ia norgod with tho othor bank
in Fraakeaattth, tha liquidity to bo furnished by tho Xattor baak*
PRA1&EHMPTH SIATB BAIK, FRAMKlOflJTg, MICBIQAI
Plana ara 'being pu^iiaaol for reorganisation on tho baaia of a 60% release. There
appoara to bo noting to stand in tho way of thia reorganisation aiaoo borrowed
aoaoy is not a serious problem and it appears that liquidity oaa bo provided* It
is hoped tho two baaks ia Frankonauth oaa bo aergcd aad work la being done at this
tine toward that end*
OLD STATE BASI, FRM
QWS, MICSIGABf
Plans arebeing published for a reorganisation on a 60# reXoaso baaia* there
appeared to be no question aa to the provision for liquidity. The major problem
ia that of raising oapitaX* Tho aanagoaoxxt appoara oonfidont, howorer, that thia
oaa be provided*
AMERICAS HOME SECURITY BAKE, OBAHD RAPID8, MICHI3AI
fhsre is iiitie doubi in ihe mind of ihe writer bui that thia baak wiXX bo purely
a liquidation aattor. The analysis indioatee that onXy about ZOJt of tho general
depoaits could be paid out ia a reorganisation and in addition to that feature is
tho difficulty around borrowed mousy equal to about one-half of tho dsposlt liabil
ity* The oonaervator oonours in this opinion although ho suggests operation under
conservator for a tine to definitely determine that liquidation ia tho best proooduro*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlMDSoozk
Mr. SteYens
*
6
QRASP RAPIDS SAVINGS BAUK, ORAMDKAPIDS, MICHIGAH
A suggestion has been made by this bank to a committee representing business and
Industry at Grand Bap ids that a new bank be formed to take over the acceptable por
tions of both this bank and the Grand Bap ids Batlonal Bank. A meeting is to be held
in the near future at Grand Rapids for a further discussion on this subject* In the
opinion of the writer that suggestion represents the best oourse to be followed.
The Grand Rapids Sarings Bank has suoh a high amount of preferred deposits and bor
rowed money that, after proriding for these items It might be difficult to arrange
for a release of 60$ of the remaining deposit liability, Management of bank appears
to lean strongly toward a reorganisation plan but unless a decidedly high amount of
liquidation can be had it appears problcraatleal whether or not that step is possible*
HILLSDALE SAVINGS BANK, HILLSDALE, MICHIGAI
Subject bank proposesto reorganise on ike basis of a 65$ release* Publication of
plana to that end have not as yet been started slnoe it is also proposed that a mer
ger of this bank with the First State Savings Bonk of Hillsdale, a non-member insti
tution, be made. Examination to that end has been completed and the writer has
recommended such a merger under the charter of the member bank. It is anticipated
that plans will be adopted shortly*
FIRST STATE BAM, HOLLAND, MICHIGAN
Plans are being published forreorganisation on a 60% basis* However, it appears
that subject bank will withdraw fro m the system and go on a restricted plan of re
organisation, due to the high amount of borrowed money and low liquidity, which ap
parently oazxnot be OToreomo*
HOLLAND CITY STATE BABI, HQLLAHD, MI CHI GAB
As in the oase of the First State Bank, Holland plans are being published for a 60$
release* This bank undoubtedly will find it necessary to withdraw from the system
and go on a restrieted basis slnoe they also hare a serious problem in the matter of
borrowed money and liquidity*
FIRST STATE « SAVIKGS BABg, HOLLY, MICHIGAI
there appears to be no opportunity here f o r reorganisation* Borrowed money in the
amount of #300,000 is equal to about 36$ of the present deposit liability with a low
liquidity figure and little apparent hope for liquidation* The conservator at this
point appears to be decidedly weak and it Is possible a new appointment will be made*
FIRST STATE A SAVINGS BAHK, HOWELL, MI CHIGAB
it has been agreed that this hank must continue under conservator due to the faot
that borrowed money is equal to approximately 26$ of the deposit liability, with a
decidedly low liquidity figure*
The writer is rather of the opinion that liquidi
ties* will be the ultimate answer,*lthough there is a slight possibility tlmt reor*
ganisatlon may be effected at a later date*
/V
x
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
Mr* Stoiroas *
o
g&OSYEIOR gAVIBOS BAMI# 40*miUM* MICHIOil
Vank proWtijr oan
roorgaaisod proiridod borrowod aoaoy of |67,000 oaa bo
ollalaatod mad tho prooout ratio of liquidity aaiataiaod* At this tlao borrowod
a m g r li o*ual to about ISfeC of dsposit liability. Tho roproouatativoo of tho baak
agrood that ooatianaaoo andor oousormtor for a tlaio m o tho logioal plan*
B A H OF EALAMA10Q, jULAMAZOO, MICHIflAB
f i kaskooa agrood bytho roprosoaiaiiTOO.of tho Dopartaoat aad tho aaaagsaoat that
roooivorshlp Is tho oaly oourso to ho pursuod la thlo oaso*
FABMBBS A MBB0HABT8 STATS
LAKKVIBB, M1CHX0AV
loorgaalsatioa is posslblo ia this iadtanoo oa tko basis of a 60JC roloaoo proridod
additioaal liquidity oaa ho prorldod* Howovor, tho aaaagsaoat of tho haak wao rory
saphatio ia tho opiaioa that tho haak ooald aot bo aalataiaod oa aa uarostriotod
basis. Bo doflaito otopo havo ao yot booa takoa*
CITT STATE BABI, LOWELL, MICHI(*AB_
lorrowod aoaoy/wkiok totals |4if600 aad Is oqual to about 16J( of tho dopooit
liability, togothor with low liquidity, appoaro to bar roorgaaisatioa ia thio iastaaoo for tho tiao boiag* Maaagsaoat of tho
ooaouro ia. till# idoa aad agrooo
that ooatianaaoo uador oonsortator io adrisablo uatiX suffioloat liquidation oam
bo had*
LUDIBQTOB STATE BABE, LUDIMOTOI, MICHIOAB
flaaiTRr roorganiiaiioa oaa'.60jC rosirioiod baoio io aow uador uuy* Uadoubtodly
thio iastltutioa will withdraw froaa asatiofhip ualoss it io poosiblo to ororooao
foar ia tho
tho aaaagaaoat of aa uarootriotod plaa of roorgaaisatioa*
FUST STATI BABE, MILFORD* MICHIQAB
thoroaro.aaaylogal pointsto ¥o 'loWaiaod ia tho oaso of this institution whisk
has twioo booa roorgaaisod* Bothiag oaa bo dono until tho BaaM^g Dopartaoat la
Miohigaa is satiofiod of tho stops aoooosary to bo takoa aad a dotoralaatloa of tho
’various depositors* rights*
PEOPLES BABE, MAMCHBSflBU MICHIgAB
Flaao aro ^olng publisiioi lor iko roorganlxatioa of subjoot iaotitutioa oa a
roloaoo basil*
(miMjaH.
staTB SAVIIQ8 BABK. Ml BLABS* MICHIOAB
w a s vsr MiatfTBietTWHHrrfr w w p A i i m a B "aa th* tuii
«t * ruf n i M » .
60%
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority UND 3 o o 2 t ,
Mr. Sterens
-
7
fmms
8TATI BiSI, MOBTAGOI, MI CHI
Laok of Yoluae,loir liquidity and substantial borrowings would appear to prohibit
reorganisation of this institution. fhs State Department ar# attempting to merge
this institution vitii tho neighboring non-member baak at Whitehall, which appears
to bo tho Boot solution*
KXCBAI0& 8AVIBG5 bAlX, MY. PLBA8ABT, MICHIQA*
Plano for reofganiwition on the Well 'of a.#<# release arc
mm being published.
CIH Z T O STATS SAVXBgg BAH, MBff BALTIMORE, MICHIQAM
Plane 'fir reorganisation onthe basis of "a Wjf release aro boiag published*
OHSTEP STATE BAKK, OBSTEP, MICHI0A1
fiabjeet lnstitutloa could "bo.reorganised with ftall payment to depositors with tho
levy of aa assessment of 100J* against stockholders. Management of tho baak strongly
object to such aa assessment* Therefore, ao deflaite plans aro uader wsy ia this
Instance*
PIOEOI STATE BAIK, PlggQg, MIQBIOAI
fkia appears io Vo.a.matter of liquidation duo to a high amount of uaaoooptablo
assets, heavy borrowings aad a decidedly weak list of stockholders.
PISCOHBIBG STATE HAIOt, PIHCQNNISO, MICHIGAB
A large amount of higkly.undesirable assess together with low liquidity aad heavy
borrowed money appears to preoludo ideas of roorgaaisatioa. Management aad directorato ia this instance appear to bo decidedly weak aad it appears doubtful whether or
aot much aeeletanoe ean bo expected*
RQMKO SAVINGS BABI, &QM80, MICHIgAI
Sorrowed aoney and an extremely.low"cash liquidity appears to determine that operatloa under conservator for a time is desirable* A reorganisation ultimately appears
possible*
MACOMB COPBTY SAVIM S aLfI,RICBIOyP, MICHIGAB
Sound assets.arc not of sufficient quantity to warrant roorgaaisatioa on a 60%
basis.
Heavy borrowed money aad extremely low each position create additional
barriers* It is probable that liquidation will be the oaly solution*
BASK OF SAGIKAW,
SAGIHAPT, MICHIGAB
PKim x w m i m n aunt, Manor. mxchx8ai
ftxanimtion* W r e just keen ec^pleiedwhiekundoubtedly will fiaally determine that
roorgaaisatioa is aot feasible ia the case of either baak*
Heavy borrowings, extrmsely large aaouat of pledged assets and high degree of uaaeceptable assets would
se«a to prohibit roorgaaisatioa plaas*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority y)MD3o o z k
Mr* ttevens
-
8
ST. CHARLES STATE BAIK, ST. CHARLES, ILLIHQIS
Borrowed money is
to
liability *»d it t h e r e f o r e i««t
that reorganisation cannot h e oonsidered* Management in this instance doee not appear
strong and there is a question of tho ability of tho stockholders to moot an assess
ment with which to replace oapital* Operation under conservator n y show possibilities
but the writer is of the opinion liquidation is the probable answer*
FRUIT QR01TORS STATE BiMK* SAUGATUCK, MICHIQAI
It was agreed tlmi ikis W k continue under conservator in
liquidity sufficient to contemplate reorganisation* It is
this is highly inprobable since borrowed money is equal to
deposit liability at the present time with a decidedly low
an attest to improve
the opinion of the writer
approximately 80% of
cash position.
FARMERS & MERCHANTS STATS BAH, SEBBITAIIQ, MICHIGA1
Plans are being published for reorganisaiion on a 86% release basis*
SPARTA 8TAIBBAIK, SPARTA, MICHIQAI
Plans arc being publiskedi’orreorganisation on a 60% release basis*
TRAVERSE CITY STATE BANK, TRAVSRSB CITY* MICHIQAI
fkiYe publioaiion is noi under nay ai ike moment ike plans are ail determined for
reorganisation on a 50% release basis* Management of the bank determined it would
be unwise to make publication before having capital definitely arranged for* An
interview with the attorney on Thursday of last week revealed the fact that in ap
proximately ten days #186,000 of the #200,000 capital had h e m definitely oo*mitted*
UTICA STATE SAVINGS BASK, UTICA, MICHIQAI
Borrowed money is not a problem in ikis instance* However, liquidity of the bank is
extremely low and it has been deemed advisable to continue under conservator for the
time being in an attssspt to improve that situation*
Ifcnagcmest of the bank appeared
to doubt very much that an assessment can be collected in this instance* However,
they are to make further investigation and report at a later date*
WASHING TOK SAVINGS BAIK, WA8HIHQT0I, MICHIQAI
Because of tkekigk amouirb of unacceptable.assets in this bank and the low volume
which would recult from a reorganisation it appears doubtful that reorganisation
can be considered* In the opinion of the writer the bank ultimately will be placed
in liquidation*
WILLIAMSTQH STATE BAIK, WILLIAMSTOI, MICHIQAI
Management of "ike.bank 'appeared raiker disinterested at the time of the interview
and had no definite ideas regarding their own situation* If sufficient interest
could be aroused and the liquidity improved somewhat reo:
possible*
CLPiQ
c r r r m
m
j
^3
Deposits
of tank
Old Merchants N.B. & Trust Co, Battle Creek, Mich. $8 ,9 8 1
6 ,1 8 3
Present
borrowings
1st im
probable
Value of
ated
Our
equity
unpledged Probable loss to opinin pledged assets
needs
lending ion
collateral
agency manage'
ment
*2 ,1 5 6
None
♦*,150
$3,0 0 0
$500
Poor
597
None
2 ,7 2 8
2 ,0 0 0
350
Fair
981
None
1.^87
1 ,2 0 0
300
Fair
600
1,6 0 0
2,0 0 0
325
Poor
General
Condition
Weak from
frozen loaaP
Heal es.loans
Central National Bank & Trust Co, Battle Creek
"
11ty National Bank & Tr.Co. Battle Creek
N
First Natl* Tr* & Savings Bank, Port Huron
II
7,0 6 6
2 ,l6U
First Natl* Bank & Trust Co* Ann Arbor
II
1,177
379
None
675
500
200
Fair
Farmers & Mechanics Bank, Ann Arbor
M
2,8^3
**83
None
1 ,2 0 0
900
250
Poor
Hackley-Union Natl* Bank, Muskegon
n
3 >2lH
797
None
1,180
1 ,2 0 0
250
Fair
National Lumberman* s Bank, Muskegon
N
3
291
None
1,550
1,0 0 0
250
Fair
Guardian Bank of Dearborn, Dearborn
H
2,376
557
None
750
1 ,5 0 0
15 0
Good
Dearborn State Bank, Dearborn
N
5,080
175
None
1,550
850
None
Good
Highland. Park State Bank, Highland Park
N
lU,78U
1,956
None
6 ,50 0
^ ,000
1 ,0 0 0
Good
first National Bank & Trust Co* Kalamazoo
H
6,333
500
None
2 ,3 0 0
1,0 0 0
250
Fair
Deposit
see page
Heavy with
drawals
Poor assets
50
2,750
1 ,5 0 0
600
Good
Fixed assets
Lincoln National Bank & Trust Co. Fort Wayne, Ind..
8,288
920
See page
deposits
Lack of
confidence
Poor assets
frozen
Frozen
Frozen local
loans
Frozen local
loans
Public funds
«
U ,26 2
15 8
Ho
1 ,7 0 0
1 ,5 0 0
200
Poor
Poor assets
Central National Bank & Tr. Co* Des Moines, Iowa
8 ,30 0
None
None
2 ,1*00
None
15 0
Fair
21,000
Hone
None
7,000
3,0 0 0
700
Fair
Small cap
ital City
Banking
structure
weak
Poor assets
City Banking
structure weak
First-Merchants National Bank, LaFayette,
Iowa-Des Moines National Bk:.& Tr. Co.
**
n
Reproduced from the Unclassified I Declassified Holdings of the National Archives
^
Other
lia
bili
ties
j
!
!
>
1
0
W
ft
£
% 02
ro
8
N
<P
C/3
■aS
—<
t
art
O
i,
Name of "bank
Bsudkers Trust Co., Des Moines, Iowa
Deposits
$5,US3
Palmer-ijcerican Natl. Bank, Danville, 111.
1.8U9
Irst National Bank, Danville, 111#
Third National Bank, Bockford, 111.
\
\
3 ,2 ^
3,630
906
9I+
2kl
Hone
10 0
Hone
Hone
Hone
2 ,0 0 0
800
1,350
1,5 0 0
EstimOar
ated
opinion
Prob- loss to
on
able lending manage**
ment
needs agency
$1,0 0 0
$Uoo Poor
300
Poor
Hoo
10 0
goo
200 Poor
1 ,5 0 0
0
0
6.38U
Value
of unpled
ged
assets
$2 ,5 0 0
ft
City national Bank, Clinton, Iowa
Other
Probable
liabili- equity in
pledged
Present ties
borrow
collat
ings
eral
Hone
Hone
gone
150 Poor
2 8 ,8 5 0 * Q a ? 5 "
General Condition
Poor assets City Banking
structure weak
Deposit see page poor
assets
Poor assets
Poor assets
Concentrations
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
I t a m N o . 131
OfficeCorrespondence ■“*“
FEDERAL RESERVE
To________ Governor Black
____
F r o m __ ____1if.Jynt.t3 q«mer«-l Coungel*,
Date.__ June 5t 1933*
Subject: Surplus required for grant_____
of trust powers to proposed
national bank a t Battle Greek*______
Michigan.
¥
*7 d . 2
If the proposed new national bank at Battle Creek desires ^
to have trust powers either at the time it opens for business or short
ly thereafter, the negotiations regarding its capital structure should
not be closed until it has been determined how much surplus it will be
^
necessary for the bank
jko have
in order to be eligible for trust powers
and until such surplus has been provided for*
Section ll(k) of the Federal Reserve Act provides that no
permit ta exercise trust powers shall be granted by the Federal Reserve
Board "to any national banking association having a capital a n d ‘surplus
less than the capital and surplus required by State law of State banks*
trust companies* and corporations exercising such powers*"
The laws of Michigan require that when a bank or trust company
in that State is organized it shall have a surplus of at least 20 percent
of it8 capital*
The provision of the Michigan laws, however, which authorizes
the issuance of preferred stock in connection with the reorganization
of State banks and trust companies is a very recent enactment; and the
State authorities have not yet decided whether a newly organized Michigan
bank must have a surplus equal to 20 percent of its preferred stock or
whether it is sufficient if it has a surplus equal to 20 percent of its
Common stocfc*
•
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority U N D aocat,
I"
-
2
-
At our suggestion Counsel for the Federal Reserve Bank of
Chicago has been in communication with the State authorities in am effort
to obtain an interpretation of the State law on this point but has not yet
been able to obtain a definite ruling*
Inasmuch as the purpose of Section ll(k) of the Federal Re
serve Act is to put national banks on a basis of substantial equality
with State banks exercising trust powers* the Board would be justified
in adopting any reasonable interpretation of the requirements of the
State law regarding surplus which is adopted by the State authorities
and therefore, it is impossible to tell what the requirements would be
until we can obtain a ruling from the State authorities*
If a surplus is provided equal to 20 percent of the common
stock plus 20 percent of the preferred stock there is no doubt that it
will be sufficient to entitle the bank to trust powers#
It is possible, however, that the State authorities will rule:
(a)
That a surplus equal to 20 percent of the common stock
is sufficient} or
(b) That it is not necessary to have any surplus in order to
obtain trust powers* (The requirement of the State law as to surplus
relates to the amount of surplus required in order to charter a new
bank and it is conceivable that the State authorities might take the
position that they have the right to grant trust powers to a bank
already in existence even though its surplus has been dissipated
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlHP30Q2fc,
- 3 -
since it was organized*
In this connection* however, it
should be observed that the institution now under considera
tion is an entirely new bank and that^ it were being organized,
n
under State law it would be required to have a surplus equal
to 20 percent of its capital regardless of whether or not it
had trust powers*)
Every effort is being made to obtain a definite ruling from the State
authorities through the Counsel for the Federal Reserve Bank of Chieagoyand
the parties handling the negotiations should be impressed with the import
ance of ascertaining what those requirements are and being prepared to
meet those requirements before the negotiations are completed, if they
desire the new bank to have trust powers*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority DKD aoozfc
r / f
Form 1481)
( / )
T E I2E G
M
FEDERAL RESERVE BOARD
W A SH IN G T O N
imam 5. 19 3 3
Hewton - Atlanta
fill appreciate It if you will arange if practicable to have
yotr supplemental report for week ended May 31 requested in Tran*
1769 rea/cfe Board* s offlees by Wednesday* by telegraph If necessary.
SMBAD
JSE/fce
IWP'
F
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f th e N a tional A rchives
DECLASSIFIED
Authority HMDaoozfc
FED ERA L RESERVE BOARD
WASHINGTON
x_ 7 4 4 9
;
" *V
7
6
June 3, 1933.
SUBJECT: Mgf&t o f unlicensed, member banks to v o te
in e le c t io n s o f C lass A and C lass B
d ir e c t o r s .
)
Dear S ir :
There i s in c lo s e d h erew ith f o r your in form a tion
a copy o f a l e t t e r which the Board i s a d d ressin g t o the F ederal
Reserve Agent at the Federal Reserve Bank o f Richmond, w ith r e f e r
ence to the q u e s tio n whether member banks which have not been
lic e n s e d by the S e cre ta ry o f the Treasury to reopen f o r the p er
formance o f usual banking fu n c tio n s are e n t i t l e d to nominate
ca n d id ates f o r C lass A and C lass B d ir e c t o r s o f Federal re se rv e
banks and to v o te in the e l e c t i o n o f such d i r e c t o r s .
Very t r u ly y o u rs,
Chester M o r r ill,
S e c r e ta ry .
In c lo s u r e .
TO ALL FEDERAL RESERVE AGENTS EXCEPT RICHMOND.
R ep rod uced from the U ncla ssified
I D e cla ssified H o ld in g s o f th e N a tional A rch ive s
DECLASSIFIED
Authority VlH Daoozb
X-7449a
June 3, 1933.
Mr. W. W. Hoxton,
fe d e r a l Reserve .Agent,
F ederal Reserve Bank o f Richmond,
Ri chrao n d, Vi r g i ni a .
■Dear Mr. Hoxton:
'R e fe r e n c e i s made to your l e t t e r o f May 18, 1933, in q u ir
in g whether member banks which have not been lic e n s e d by the S e c r e ^ ta r y o f the Treasury to reopen may p a r t ic ip a t e in e le c t io n s o f C lass
A and C lass B d ir e c t o r s o f Federal re se rv e banks.
Upon c o n s id e r a t io n o f t h is q u e s tio n , i t i s the o p in io n o f
the Federal Reserve Board that member banks, which have not been l i
censed by the S e cre ta ry o f the Treasury to reopen f o r the perform ance
o f usual banking fu n c tio n s and which have not been p la ce d in l i q u i
d a tio n or in the hands o f r e c e iv e r s or c o n s e rv a to r s or S tate o f f i c i a l s
having s im ila r a u t h o r it y , are e n t it le d to nominate can d id ates f o r Class
A and C lass B d ir e c t o r s o f F ederal r e se r v e banks and to v o te in the
e l e c t i o n o f such d i r e c t o r s .
The Board a ls o agrees w ith your view that
banks in the hands o f co n se rv a to rs or o f S ta te o f f i c i a l s having sim i
la r a u th o r ity are not e n t it le d to nominate can d id a tes f o r C lass A
and C lass B d ir e c t o r s or t o vote in the e l e c t i o n o f such d ir e c t o r s .
Very t r u ly y o u rs,
C hester M o r r ill
S e c r e ta ry
R ep ro d u ce d from th e U ncla ssified
I D e cla ssified H o ld in g s o f th e N a tio n a l A rch ive s
DECLASSIFIED
Authority tiH P ao o z fc
F E D E R A L R E S E R V E BANK O F C H I C A G O
230
SOUTH
LASALI-E
STREET
y
2
June 2 , 1955
OFFICE OF THE
C H A I R M A N O F T H E B O A R D AND
FEDERAL R ESE RVE AGENT
Hon. Eugene R. B la ck
G overnor, F ed era l E eserve Board
W ashington, D# C.
Dear Governors
R e fe r r in g t o the B a tt le C reek, M ichigan, s it u a t io n , I th in k i t
Xs on ly f a i r t o a d v is e y ou as t o the circu m stan ces tinder w hich we recommended
l i c e n s e s f o r th e s e two banks.
You w i l l r e c a l l th a t ou r b a s is f o r li c e n s i n g was s ta te d t o b e on
th e l a s t exam iner1s r e p o r t . Both o f th ese banks were n a tio n a l banks and we
t o o k th e exam inations o f the C o m p tro lle r1s departm ent, as we do n o t o r d in a r ily
examine n a tio n a l banks o u r s e lv e s .
The exam ination o f th e Old Merchants N a tio n a l Bank under d a te o f
November 18, 1952, showed C a p ita l
# 1 ,5 0 0 ,0 0 0
Surplus and U ndivided p f t s . 1 ,5 9 6 ,8 0 0
E stim ated L osses
288,100
D ou btfu l
421 ,60 0
T o t a l D e p re cia tio n on Bonds
n o t c l a s s i f i e d above
578,650
In th e ca se o f th e C ity N a tio n a l Bank and T ru st Comparer, an
exam ination o f November 4 showed C a p ita l
|
Surplus and U ndivided p f t s .
E stim ated L osses
D ou b tfu l
T o ta l D e p r e c ia tio n on Bonds
n o t c l a s s i f i e d above
6 0 0 ,0 0 0
556,100
59,500
184,600
199,850
You w i l l n o te in b o th o f th ese eases th a t a l l lo s s e s and a l l d o u b tfu l
and t o t a l bond d e p r e c ia t io n t o th e markets would n o t have exhausted th e su rp lu s,
and th a t in each c a s e th e c a p it a l s t o c k would have been l e f t unim paired w ith
some su rplu s rem ain in g. We w ere, even s o , ra th e r h e s ita n t t o l i c e n s e th ese
ban ks, bu t under th e form ula w hich was g iv e n ^ a ^ 'w ^ c o u ld not do o th e r w is e .
Very truly
EME! HH
Fedejj&i R eserve Agent
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlUDaoozfc,
'o rm 1 18 b
AM
■1
F E D E R A L R E S E R V E E |O A R D
W A S H IN G X f^ ^
j
,.-V
fAY % 9 1
/.
DILLA1B - CHICAGO
R eferrin g y ea r inquiry o f Mdy 2 2 , l t i s suggested t h a t whoa r« q a« st« 4 by
a c o n se rv a to r to ap p ly th e old r e s o r t* balance of a aeab er bank i a h is
charge to i t s ia d eb ted a esa , w hether o r n o t a s of sosm p rev io u s d a te , tho
Fodoral re se rv e baak give e o a s id o ra tio a to the a d v is a b ility of aocordiag
the baak tho saae t r e a t a e a t a s reg ard s i t s re se rv e b a la a o e , a s I f th e
baak were i a tho haads o f a re c e iv e r#
Sach a o tio a , i t i s
assumed,
would
g iv e tho aeab er te a k , ia tho f i a a l s e ttle m e n t w ith tho c o n s e rv a to r, tho
b o a o f it o f i t s rooerve b alaao e in re d u c tio n o f i t s iadobtedaess as of tho
d a te s p e c ifie d w ith o u t ia aay way im pairing the p o s itio n of th e re se rv e
baak w ith re fe re n c e to o o lle o tio a of th e iadobtodaoss* ir r e s p e c tiv e of
whether o r a o t th e baak i s su bsequently p laced i a liq u id a tio a *
Ia oases
ia which i t i s proposed to apply re se rv e b alaaees a s o f d a te of tho ap p o in ti e a t ; »f e o a s e rv a to r, you aay wish to c o asid er a d v is a b ilit y of ta k ia g
such sto p s a s nay be aeo essary to p re se rv e such r ig h t s a s re se rv e baak .
aay h a te to i a t e r e s t accru ed a f t e r th a t d a te i f charge to re se rv e a s count has beoa M a te ria lly d elay ed apoa re q u e st o r apoa a g reeao at w ith ooaso rv a to r pending p o s s ib le re o rg a n is a tio n o r re s a a p tio a of b a s ia e ss by
t:UB APfHUVAL
baak o r to p re serv e r i g h t s of F ederal re se rv e baak to accrued ia te r o a ,fjjSj»* e ^
v;r.Hs>r<
ia ev o at baak shoald be sab seq u eatly p e rm itte d to resaao b u sin ess o r
should b e reorgaaised*
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f the N a tional A rchives
DECLASSIFIED
Authority NMD Soozfc,
Aj £*>&
A
F o r m 148 b
T ^ E O R A M
FEDERAL RESERVE BOARD
WASHINGTON
t.
« * C **$"
Joiva# - A tlo slft
mtrnxrtm jptror
19 ttiepni, it dtoee
for the line heiiyr t«* ftiroid & aisorepcuiosr
disoouated and
m% appear f>**<*tia»fcle
holding* of Mile
thereon ae reported on bias’s bRXeaae sheet,
fom >* la sane* where m m *** teak, at request of * waeervater
m of a prior
In order, hoeeirer, to fc*ej> reduction in ecom&Xe to mrnlng*
<*ppXiee reserve aoaotmt to i&dehtediittsa of nee&er tesaic
date.
at a niaina&t it is attested th*t bo interest eoentede on past
paper of b&»k» to hri&de of oom** motors he included
.form 3*t.
ICBRKLW
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Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority V)MD3fl0zc=>
mmm mm
m mm mm,
mm*
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D E C L A S S IF IE D
Authority
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sitiw^yv^siy
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In iS S sw
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lt#iOA^ni#H<ni ?1wumw C#^jxw»ti<Hi m vi "fcaJe* t!i> r®*pcMB#ib ill tf 9 oa
•• a * to
S M m m U m t)m l*nAt»e ptmr*
cf
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W «i |ar*9«R%d« I f i f «la«a^ hm iim itft into i&»# it 'waSS
DECLASSIFIED
Authority UND
*$ *
to
o jn fiw kU omft In t&§ J&pot w
a^
pptatloo tlutt Ha ftell ri ip tiillt 1tty
*0
i>Uoo« upon \ha mmrm Uitai wrior yw lnllw #f O-gw-lQinl «#*
not***!*
1%l* M i w v ^ ! l*wowort tli*t **** mitor
*mk m
iwailwt it
ih* i»o*tt»tjruotlott niwKi Wp<arn%lwi &*t a y — fruwi might W Ami*
•*•4 hmkt^
H M
io**o **a will bo sa»4* U tfco flrrt Imtoooo % tfco
tow ** boako, n»d tb*» tftfext* o»»r doUUr fur $#H*y % Hat
CarpMfvitiovi npm wfc*W»«r oolletojrwl M i Whmii
’j?*OQaotrtt0tio&
ywrm h*ok» «•** obi* t# obt«£m
# lHHi pwBiwe alftht tw i oo»tm*
jO*t* tbo pootlblUty
tfc# *oo*rw« bwifl»* £P*ri*t»g *&• mmmmwf
foodo to ttoo ;i»«6>n*%
jfiialt4s«i
SoffpocpotlAa by tho inrflliim #$ tho
«ori>ari%tio«*» $oboat*MOO •• ponaittod uttAor tii« Uim «f tho tfe«m§
ottostetti to th* Agrioulturml ftollof
«t.
?i»t, ko*«nftrt ill' * vtfM t
vhiob ootaft b* l*ft for future tootsiiaotlott#
tt» ln^ernue* tfeta& in tbo pinion of ®nr t i m t i n
1 » %h«t
0QM0thlA« nu t feo 6ono ;rtnfrUx % t&o a r n r M t t to fttwtn %h* l»opft*|
opmi of
vmty U 00&006 oMbor b»ak# mhS im th*ir
thlo
mm mm
•ffi9tlV9l| bo aoocnpll**o4 by $itb»r ooo of tkt ♦»• pyood w o m § *
gootod &&*?#, «l*<5 witk loot m l rifck; to tho baklog aituatloo of tfc*
•ottfiljpy, %&a& If n*y af tJm pl*a« a#* i^b^Ijmi fWfr
rm
in til# f*M%
jpoooI
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liuiwiMi of %niAc i#p<wrtl%* sou
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#L#»-
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plo&f Httl »OI rtt 'Umi rl»k of foflNtiUNI MU|f oow^ flMrifeor bMrioi to wttl^
Afo« f)rai tho j%4taap*.l liooor^o f-yotwi^ votlMir tiwui to oiffu tho on^»
R ep rod uced from the U ncla ssified
I D e cla ssified H o ld in g s o f the N ational A rch ive s
DECLASSIFIED
r- '
Authority Y iU P a oozb
p ,m m iru iii^4't%:^ ^||@ ys^uiia f(jjii| «.% U M I flMMI itfbMI & £ P N i t X y
WRdfN&toStity jpH(Ri§
fUl ^lygy tm
."^tsil,!, te’
tllfi
dfy
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority ^N D
3002b
/
Jloaoivȣ a t .aahlja^tan, 10
A t l o o t s 0« « f g i &
iJluok *
/
h*9hln %a&
8148 Ba
°T O "r —
/
I
m y SS
)
830 r
nax*H U # 1953
Siaok * Atlnata, <l»o*$ia
./
(Confiaoitti&l)
J«r tbo oo&fldontial iafonaatiaa of yotiroolf and your a®«*d of Dimetom
m qmting below & letter whiah
1
t ’hmm $m% xooolvod f*aa tho JProsldimt of
tbo M t * d ^toto* aad I bog to ospvoos tho )M»p» tbot In addition to othor
mwttomUMm you will fern Hilo J*ttor 1* miad in tmmmittim to im ap~
plioatloSTo?Iwibor baoko ia yoar %»triot for poaaiosi a to ops© for
■
buataoss*
f ...,
,s
....■■■.-.■‘a
...
■'■■■
rflg'. ..
1 ..... ; . k ^
I hopo also that la v l f t n stash applio&tloas, fam w ill ploaoo bo
®ood oaoo£i ia oaol* «&**« to odvloe ao opoolfioally, an roqywstad fcy tolograa
yootordcgr, whstbor im you* opiaioa it ooold bo seasonably oafo im tbo oiroia»*
•taaooa *fcr ibo to poralt tlm full opmlag of tbo «pplioa»t, imving in seiod
tho pjroolRMitida of ttift SvooIAoat prohibiting tho
pa&mits of mmmm by
osar fe&afe for boarding purpoooa* In tho i»tor**t of oxpoUtion ssad in ordor
mmbk* tho pronpt opoaiag of aa ®aay mmb®r banka aa poaaiblo, ploooo
forward zptfklmtiom me xoooivad, lodiopting oaly yowr opinion m tbo
to
•poeiflo foootioa anteod abato* Biailar ro^u®»t baa boos saodo of tbo Co«^-
trollor** Offioo with roapoot to Natianol
followss
Mxfcm.
tho $tǤsidoiLt9a lottor
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f the N a tional A rchives
DECLASSIFIED
Authority t)KD 30026?
/
•
~
-Ws
Z m
Sm aotlat# w X w U o b to b# e iv a a to ih * oaooto o f nstsbor boa**,
M t i e m l aad s ts to *
on to o f aminos m a
t r » o o ® ttiio tim » d m s tio o r s t r i o t o s t i *
b a s is vouAd m u f t t a&jay b«»ko
fwwa op o n ia# whioh could nad a t e i l l bo X0D porooiu opsaod i f
I H iir a o s o ts *»ro asoooaabXy mlxm* m
a fa ir
f I an oomriaood t h a t tfeo D iro o to r* ~»f tii®
te s ic ,
M otional lfc&-
o r a l Hooorfo Usaks should t^&o a f a i r aad o $ a lt* b lo b a s is
f o r Xoas m X uattoa* xmthor titan a fo ro a* X lquidK tioa t e s t s .
I t i s aqr a© sire th » t fadoraX Ilossrve Bunks *ilX proe«©£ on
f a i r and oquit&feXo b a s is i» rospoot to X&mm to
tho
aoxftor b&aka, tho purpoaa o f «Hl«h i s to p r o m
M n m ty
f o r s t a t s te a k * wfci«)i » n n o t aaaboro o f tb s i%&sr&l liooorvo
ystenu
Q oop& atioa oa tho p a r t o f mwtimr )msk» 1a t h i s r o -
®a*d i« OSOStttial*
*H© oitisssaa oxpoots tto<* dirsotors to bo infallible*
4X1 w« o&a ask is tfeat thoy aso Inmost 9 aadt aador t&o oil1*
ounataaoss, ffcirXy liberal Jud^ssnt* It is iaovtt&bXo tliat
sons adst&feao «iiX bo *a»do* Xt Is iaorltablo ttm.% mm
Xoooos nay bo
fef tb® fedora! J¥ ssrfoj^ito ia-lonao- to
tbolr raerabor basks*
fTbo Goaatry approoiatos, h o w w r, th at tho t*ofcv»
as«lajaaX Bmm&rm Mxk* a ro open* tin # oatiroXy tm dor fo d o re l
X&* %ad tho rooaat sraorgtaey boafe a o t groratly oaXarigss t& oir
pom rs to a d a p t th * lr fBoiXitieo to a JJntionnl onsrgsaiay*
Thorofors th o rs i s a fo ry <%oflitlte o b lig a tio n oa &to fodor& l
Q m m m m n t to rs la b n rs o tbo tuoXw Ro^ioaaX S ' s d s r S ^ i i o r i o ^
aanfes f o r Xosss® whi«k tboy m y hmOco oh Xcmao mtim uadbsr
' i\C\
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f the N ational A rchives
~~
DECLASSIFIED
Authority M D a o o zfc,
m
*1.
3
m
m t fe e * lta to t o aa*ur« you th at X s im ll m k Vtm
t©
any of th* twalw >i»rtor8.1
Hmka for »uah laaa»«# I am «emfld»nt
will
it# obliggatlo** to tfe*M Fedar&l i&ftks
sfcoulA tfcwi oamplon a r i » e #
§%mnt ©u«h x tq u M t*
Youra wry &ina*r<&ly
yyoskUB D. r^ooat-swlt*
v<* ??• %'oo4Lltt*
Johns 5{15 I'M
R ep rod uced from th e U ncla ssified
I D e cla ssified H o ld in g s o f th e N a tio n a l A rch ive s
DECLASSIFIED
C '
Authority viU D aoozb
May
B o x t o A
Caoo - Xow Tortc
A ustin * P h ila d e lp h ia
Iftl11 nil **
*
Boston * Atlaata
Sltwai - Chlo^o
Payton - Mianoapolls
If:
24, 1933*
10
, £
McClaro * Kansas City
faith - Dallaa
Bswtoa. •* Saa JVaaoiaoo
..^
TtAJS. • . 1804. for yoar lafornatton, tho offieo of tho jMsrotaery of Hi* fyoasary
feao adyiaod as folio** in :rospoaso to am Inquiry W
mi
*
fodoral yOSOJTOhimik
to vfcothor a stato 1>ank shioh ter boon authorised V ttata tarihorlUos
to porfon* any aad all of
prohibited, aad whisk
usual banking fwettoas* oaoopt as otinrvlw
lator adaittod to ■•mbinhlp In tho Podoral Sosoyyo
flysSott.i is roqulrod to oeoare a 11cans#
awsShofisiaS' it to ooatlano
frm lino Secretary
pes^orwanBo of
functions*
•State baak apea adadsalon to aoabership 1m Fodoral
HaieiTa Systoa mast seoare llooaso
frm tho Soorotaary of treasury
to petfoia all usual aad aoraal baaklag function* except as oth«r~
viao prohibited.
Understand federal leoerre Board ealy adalttlag
to mayorship saoh 'tonfci abla to operate without restriction*
Llconso will bo issuod upon year rooowaoadatloau11
Morrill.
R ep ro d u ce d from th e U ncla ssified
I D e cla ssified H o ld in g s o f the N a tional A rch ive s
DECLASSIFIED
Authority
•-
F E D E R A L R E S E R V E ^ A N K O F CH IC AG O
230
SOUTH
LASALLE
STREET
May
T w en ty-fou r
19 33
F e d e ra l Reserve Board
W ashington, D* C.
A tte n tio n : Mr. S . R , C arpenter
A s s is ta n t S ecreta ry
Dear S i r :
I am w r it in g t o acknowledge* w ith thanks, you r l e t t e r
of May 22 jand th e accompanying e o p ie s o f in s t r u c t io n s is s u e d
to ^ co n s e rv a to re o f n a t io n a l banks supplem entary t o th o s e con
ta in ed in the pamphlet dated A p r il %*
I n ote that th e C o m p tr o lle r 's o f f i e e s ta t e s that i t
i s t h e ir p r a c t ic e t o send to each F e d e ra l Reserve bank c o p ie s
o f a l l such in s t r u c t io n s .
In o r d e r t o in s u re that th e y reach
the p erson s in th e bank most con cern ed , I am a d d ressin g a re
quest t o th e C o m p tr o lle r ^ o f f i c e th a t h e r e a ft e r th ese be ad
d ressed t o th e bank to my a t t e n t io n , whereupon I w i l l d is t r ib u t e
them.
I a p p r e c ia te g r e a t ly
s tr u c t io n s *
su p p ly in g th ese m issin g in -
Very t r u ly y o u rs ,
H. G. P e t t , Manager
D iv is io n o f Research and S t a t i s t i c s
R ep rod uced from the U ncla ssified
I D e cla ssified H o ld in g s o f the N a tional A rch ive s
DECLASSIFIED
Authority VJMD3002fe,
i i i?.j o ±-u i y j j j I )
F E D E R A L R E S E R V E B A N K O F CH
sf
vV
2 3 0
SOUTH
LA S A L L E
STREET
MAY 24 1933
d/s*
THE GOVERNOR
^v—is'''-i-LivV*iiiBOARD
V
7 0.
May 22, 1933.
Hon. Eugene R. B la ck , G overnor,
F ed era l R eserve Board,
W ashington, D.C.
Dear G overnor:
The f o llo w in g i s an o u t lin e o f the B a tt le Creel* M ichigan s it u
a t io n I d is c u s s e d w ith you during my r e c e n t v i s i t t o W ashington.
OLD MERCHANTS NATIONAL BANK & TRUST COMPANY:
L i a b i l i t y h ere • . . • • • • • • $ 9 0 6 ,6 5 0 .
L i a b i l i t y R .F .C ....................................1 ,2 1 9 ,1 3 9 .7 2
)
D ep osits have d e c lin e d ap p roxim ately $ 1 ,8 1 6 ,0 0 0 s in c e December 31, 1932*
An a s s e t exam ination made May 4 , 1933, in d ic a t e s th e bank has f r e e a s
s e t s , in c lu d in g paper and r e a l e s t a t e m ortgages which a re c l a s s i f i e d as
good and f a i r , a g a in s t which a lo a n v a lu e has been p la c e d o f # 1 ,6 4 6 ,0 0 0 .
This d oes n ot in c lu d e bonds o f a book v a lu e o f $42 8,0 00. I f t h i s amount
were made a v a ila b le i t s cash p o s i t i o n would bti ap p roxim ately $ 2 ,4 0 0 ,0 0 0
a g a in s t d e p o s it l i a b i l i t y o f ap p roxim ately $ 9 ,5 0 0 ,0 0 0 . A review o f th e
a s s e t s in d ic a t e s estim a ted lo s s e s o f $ 2 ,7 2 1 ,0 0 0 a g a in s t a t o t a l c a p it a l
s tr u c tu r e o f $ 2 ,7 8 5 ,0 0 0 . This does n ot tak e in t o c o n s id e r a t io n d o u b tfu l
com m ercial loan s o f ap p roxim ately $518,000 bu t does in c lu d e $553,000,
based on a p r o s p e c t iv e o f f e r o f $ 1 ,7 5 0 ,0 0 0 f o r bank b u ild in g . A lo s s o f
10% has been estim ated on r e a l e s ta te mortgage lo a n s , which i s c o n s id e r e d
a v e ry l i b e r a l c l a s s i f i c a t i o n . R eal e s t a t e loa n s a re equ a l t o 39.2$ o f
t o t a l lo a n s . Investm ent i n banking q u a rte r s re p re s e n ts a r a t i o o f 26.3%
t o th e t o t a l d e p o s it s . 27*2$ o f the d e p o s it s a re demand and 72.8% a re
tim e . A s s e ts p r e d ic a te d on r e a l e s t a t e r e p re s e n t a r a t i o o f 58.3% t o
t o t a l d e p o s it s .
CENTRAL NATIONAL BANK & TRUST COMPANY:
L i a b i l i t y h ere . . . • .................. $ 5 9 7 ,0 0 0 .
L i a b i l i t y R .F .C ....................................
N othing.
D ep osits have d e c lin e d ap p roxim ately $788,000 s in c e December 31, 1932*
An a s s e t exam ination made May 4 , 1933, in d ic a t e s lo s s e s o f $839,511,
w ith a t o t a l c a p it a l s tr u c tu r e o f $ 1 ,1 2 1 ,5 2 3 . This d oes n ot take in t o
c o n s id e r a t io n d o u b tfu l com m ercial loa n s o f $77,659 o r bank b u ild in g and
f i x t u r e s c a r r ie d a t $ 1 ,5 3 0 ,6 7 0 . A l o s s o f o n ly 10% has been estim ated
/
R ep ro d u ce d from the U ncla ssified / D e cla ssified H o ld in g s o f th e N atio n a l A rch ive s
declassified
Authority M D 3 o o z t ,
F e d e r a l , r e s e r v e b a n k o f c h ic a g c
-
2
-
Hon. Eugene R. B la ck , G overnor,
F ed era l R eserve Board,
W ashington, D.C.
May 22, 1933.
on r e a l e s ta te mortgage lo a n s , which i s con sid ered v e ry l i b e r a l . Based
on the a s s e t exam ination th e s u b je c t bank has f r e e paper in c lu d in g r e a l
e s ta te m ortgages o f $ 9 ,3 3 0 ,0 0 0 and f r e e bonds o f # 74 8,0 00. These as
s e t s have been g iv e n a lo a n v a lu e o f $ 1 ,0 8 6 ,0 0 0 . I f t h i s amount were
made a v a ila b le the bank would show cash o f ap p roxim ately $ 1 ,5 0 0 ,0 0 0
a g a in s t d e p o s it l i a b i l i t y o f $ 6 ,2 8 0 ,7 0 0 . The percen ta ge o f r e a l e s ta te
m ortgage loa n s t o t o t a l lo a n s i s 7 2 .8 $ . Investm ent in banking q u a rters
bears a r a t i o o f approxim ately 24% t o t o t a l d e p o s it s . 12.5$ o f th e de
p o s it s a re re p re se n te d by demand and 8 7.5$ by tim e . A ssets p r e d ic a te d
on r e a l e s ta te bear a r a t i o t o t o t a l d e p o s it s o f 7 0 .2 $ .
CITY NATIONAL BANK & TRUST COMPANY:
L i a b i l i t y h e r e ........................ . . $
R .F .C . l i a b i l i t y ...............................
5 4 0 ,1 4 2 .
42 5 ,8 2 8 .8 1
D ep osits have d e c lin e d ap p roxim ately $810,000 s in c e December 31, 1932.
L osses d is c lo s e d i n our a s s e t exam ination o f May 4 , 1933, amount t o
approxim ately $808,000 a g a in s t c a p i t a l s tr u c tu r e o f $ 1 ,0 3 2 ,0 0 0 . This
d oes n ot take in t o c o n s id e r a t io n d o u b tfu l com m ercial loa n s o f $149,103
nor bank b u ild in g and f ix t u r e s c a r r ie d a t $ 1 ,1 6 8 ,7 3 3 . A lo s s o f o n ly
10$ has been estim ated on r e a l e s t a t e mortgage lo a n s , which i s c o n s id
ered l i b e r a l . Based on our a s s e t exam ination th e bank has f r e e a s s e t s ,
in c lu d in g paper and r e a l e s t a t e mortgages (in c lu d in g f o r e c l o s u r e s ) , o f
a f a c e v a lu e o f $51 0,0 00, c l a s s i f i e d as good and f a i r . A lo a n va lu e
o f $310,000 has been g iv e n th ese a s s e t s . I f t h is amount were made a v a ila b le a t p resen t i t s t o t a l cash r e s o u rc e s would be ap p roxim ately
$626,000 a g a in s t d e p o s it l i a b i l i t y o f ap p roxim ately $ 3 ,4 4 6 ,0 0 0 . The
r e a l e s t a t e mortgage lo a n s b ear a r a t i o t o t o t a l loa n s o f approxim ately
4 9 .1 $ . Banking q u a rters r e p re s e n ts a r a t i o t o t o t a l d e p o s it s o f 3 0 .2 $ .
Demand d e p o s it s r e p re s e n t 2 5.9$ o f t o t a l d e p o s it s and tim e d e p o s it s
r e p re s e n t 7 4 .1 $ . A ssets p r e d ic a te d on r e a l e s ta te bear a r a t i o t o
t o t a l d e p o s it s o f 7 6 .8 $ .
The C it y N a tion a l Bank & T ru st Company was a f f i l i a t e d
w ith th e Guardian D e t r o it Union Group o f D e t r o it and has s u ffe r e d
through th a t c o n n e c tio n . R e c e n tly Chas. C. Greene, P r e s id e n t o f the
bank purchased 56,000 shares o f th e bank* s s t o c k , which had p r e v io u s ly
been owned by the Group. The purchase p r ic e was $25,000 and a p lan
o f s e l l i n g t h is s to c k t o the p u b lic a t $10 p er share was con tem plated .
The bank was g e t t in g a lon g w e ll w ith th e p la n and claim ed t o have
prom ises o f s u b s c r ip tio n s in the amount o f approxim ately $125,0 00.
R ep rod uced from th e U ncla ssified
I D e cla ssified H o ld in g s o f th e N a tional A rch ive s
DECLASSIFIED
Authority HMD
300% ,
Hon. Eugene R. B la ck , G overnor,
F ed era l Reserve B oard,
W ashington, D.C.
May £2, 1935.
W hile they were w orking on t h is p la n the Old Merchants
N ation al Bank & T ru st Company approached th e C ity N ation al Bank &
T ru st Company w ith a p ro p o s a l t o merge. C en tral N ation al Bank &
T ru st Company was ap p a ren tly n ot inform ed o f t h i s proposed m erger.
The management o f th e two banks c o n s id e r in g the merger are f r ie n d ly
but th e re appears t o be c o n s id e r a b le f e e l i n g between th e C en tral
N ation al Bank and th e Old Merchants N ation al Bank.
I n a ccord a n ce w ith you r re q u e s t I have endeavored t o
g iv e you a b r i e f o u t lin e o f th e B a t t le Creek, M ichigan, s it u a t io n
and i f th ere a re any fu r th e r d e t a i l s you d e s ir e I s h a ll be happy t o
send them t o y ou .
I a p p r e c ia te the c o u r t e s ie s extended t o me w h ile in
Washington and s h a ll be p lea sed t o keep you p osted as t o any new
u n fa v ora b le developm ents i n t h is t e r r i t o r y .
Yours v e ry t r u l y ,
Deputy Governor
R ep rod uced from the U ncla ssified
I D e cla ssified H o ld in g s o f the N a tional A rch ive s
DECLASSIFIED
Authority M D a o o z t ,
UAY 221933
Kr. 1 *0* t#tt, laaacar*
8t*i*l#a of i#a#arah aad |tatiatiVa»
r#d#ral Raaarva Baali #f Chicago,
Chicag©, XHiaelt*
Daar Sir i
'
^ th# raq«#»t contained ia your l#tt#r ofJlay_
JJt i f to
-
l#Ql#naadf th#r# ar# i M U n i h#r#witt* a#ir#ral
of tlit iaatrt#ti#»a lftiud to ooaaarvatar# if nati#aal banka
¥y th* #ffi## of th# §oaftr#ii#r of th# Cmrr#a«y aa*?l*aantary t#
th#
4at#I'lirll
I m
k$ ifIS*
advlaad th a t i f i s th # p ra o tlo # of th # o ff! # # o f
tli# Coa p t re l i a r o f Hi# C arr#aoy t # *#ad t # th # F #d #ra l r#a#rv » baaka
oaplaa # f a l l *a#h ia a tr n o tio a a aad e ir o a la r a whioh aay b« o f ia t a r # # t t # th # a t but* i f f a r aay r#aao a y #a f a i l to o b ta in eap laa of
any #wtii i a a t r a a t i e a a o r wiah t # o b tain a d d itio n a l o o p i# a , I a a
•a ra th a t tha o fflo a o f th # Coaptro U # r w ill b# g lad to supply yoa
w ith a a a f f i o i a a t a a a * #r ap#a r # q a # a t.
fary traly yoart*
(S ig n e d )
S* R-
°a rP ^ e r
I* ft. Oarpaatar
juaiata&t $##r#tary
fa # l# # a r # *
R ep rod uced from the U ncla ssified / D ecla ssified H o ld in g s o f the N a tional A rch ive s
DECLASSIFIED
Authority N M D 3 o 0 2 k
TELEGRAM
)u>
federal
reserve
system
(LEASED WIRE SERVICE)
16_ 7g4
R E C E IV E D A T W A S H IN G T O N , D . C .
94 F Y
A t l a n t a G e o r g i a 3 3 7 p Mas:. 1 . 9 _
M o r r ill
W a s h in g t o n
O ur d i s c o u n t
d ep a rtm en t h a s b e e n h o ld in g n o t e s
ban ks in
C o n s e r v a to r s h ip a s
a c c r u in g
in t e r e s t
th ir d
to
on th e
tra n s 1748 d ir e c t s
reop en u n t il
C o m p tr o lle r
is
R e s e r v e B ank t o
th is
p roced u re
as
a p p ly
th e
con serv a tor
reserve
accou n t
d a te
con serv a tors
o f banks in
r e c e iv e r s h ip
of
to
of
to
in
of
an d h a s b e e n
sam e a s e a r n i n g s . Y o u r t e l e g r a m
now d i r e c t i n g
as o f
e a r n in g a s s e t s
su ch banks have been p la c e d
a p p lic a tio n
U S GOVERNMENT PRINTING OFFICE:
cu rren t
and r e d i s c o u n t s
banks n ot
p rocess
on e bank t o
o f A p r il
lic e n s e d
of
liq u id a tio n ,
requ est
b a n k ’ s i n d e b t e d n e s s m a k in g
C u sto m h a s b e e n t o
a p p o in tm e n t. I n
cases
accru e
on
in te r e s t
R ep rod uced from the U ncla ssified / D e cla ssified H o ld in g s o f the N ational A rch ive s
DECLASSIFIED
Authority U M D 3062b
TELEGRAM
( 2)
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE?)
R E C E IV E D A T W A S H IN G T O N , D . C .
13— 7 9 4
o b lig a tio n s
fo r
d a ily
but
to
a llo w
p a r tia l o ffs e t
b a la n c e s w ith r e s e r v e
r e c e iv e r s h ip
is
a p p lic a b le
e a r n i n g s w h ic h w i l l h a v e t o
w ith
con serv a tor.
in
bank.
case
of
445pm
16—794
r e c e iv e r
in
case
c r e d it
of
c o n s e r v a t o r s h i p we a r e
a d v ic e
Johns
V S 0OTERXMENT PRI*TWe OrFfCC 1939
p roced u re
b e r e d u c e d w hen f i n a l
W ill a p p r e c ia te
(
If
by g iv in g
as
a c c o u n tin g
soon as p o s s ib le .
s h a r in g
is
m ade
mm
R ep ro d u ce d from the U ncla ssified
I D e cla ssified H o ld in g s o f the N a tional A rchives
DECLASSIFIED
Authority VlUD 3 o o z t ,
I”
miiiiwy
I
A
F
'\\y
Mli'
F E D E R A L R E S E R V E BANK O F CHt
23 0
SOUTH
STREET
May
E ighteen
/ »
LASALLE
1 93 3
JFederal Reserve Board
W ashington, D. C.
A tte n tio n : Mr. S . M. M cClelland
A s s ista n t S ecreta ry
Dear Mr, M cC lelland:
We have had a number o f in q u ir ie s which would
in d ic a t e th at the C o m p tr o lle r's o f f i c e has is su e d in s t r u c
t io n s t o c o n s e rv a to r s and r e g u la tio n s supplementary to th ose
con ta in ed in the pam phlets, a number o f c o p ie s o f which you
k in d ly su p p lied us s e v e r a l weeks a g o .
I am wondering i f i t would be p o s s ib le f o r you
to arrange t o have t h i s bank su p p lied w ith about a dozen
c o p ie s o f any such a d d it io n a l in s t r u c t io n s , r e g u la tio n s , e t c . ,
as have been o r w i l l be issu ed in the fu t u r e . I f th ey are
sent in ca re o f me, I w i l l see th at they reach the departments
o f the bank most in t e r e s t e d .
I t might be p o s s ib le th a t the
C om p troller would undertake t o send th ese d i r e c t l y t o u s, so
that you would not be t r o u b le d .
I w i l l a p p r e cia te anything your o f f i c e can do
t o see th a t we are s u p p lie d w ith m a teria l o f t h is kind emanat
in g from the C o m p tro lle r’ s o f f i c e .
Very t r u ly y o u rs ,
c r v .-
H.
G. P e t t , j& nager
D iv is io n o f Research and S t a t i s t i c s
HOP: FB
/
ep ro d u ce d from the U ncla ssified / D e cla ssified H o ld in g s o f the N a tional A rch ive s
d e c l a s s if ie d
Authority NND 3 oo 2 b
AM
FED ERA L R ESER V E BO A RD
W A SH IN G TO N
BLACK - AfL.\STA
Hefere.;o© you r t e l e g r m
April 28, Treasury Department a d v is e s
th a t I t w i l l in t e r p o s e no o b je c t i o n t o agreement n o t t o fo r e *
c l o s e u n t il O ctob er, 1934* p rov id ed (a ) th a t such agreement i s
p e r m is s ib le under t h e a p p lic a b le la s * (b ) th a t th e agreement i s
d u ly a u th o r! sted by th e board s o f d ir e c t o r s o f the banks aa be la g
f o r the oa st in t e r e s t s o f a l l d e p o s it o r s and oth er c r e d it o r s o f
such bwoka, and ( o ) th a t agreement Is approved by th e a p p ro p ria te
s t a t e a u t h o r it ie s h a v ia c s u p e rv is io n o f such banks*
M o r r ill
V
I d
R e p rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f the N ational A rch ive s
DECLASSIFIED
Authority ViND 3oozc=,
H efereuoe jo u r telegram A p r il 2 8 , freasiary Department a d v is e *
th a t i t w i l l In te r p o s e no o b je c t io n t o a&reemezit n o t t o f o r e
c l o s e m t l l O e tcb e r, 1934# p rov id ed (a ) th a t suoh agreement i s
p e r m is s ib le under tin© a p p lic a b le law , (b ) th a t th e ^raBraent i s
d u ly a u th o rize d by Vm boards o f d i r e c t o r s o f tiJj^MinlEff as be lo g
f o r the b e s t in t e r e s t s o f a l l d e p o s it o r s
c r e d it o r s o f
txtob. banka, and ( o ) th a t agreement i s ^ s r e v & ^ b y th e a p p ro p ria te
S ta te a u t h o r it ie s haying stipervia
*lif
$
bsnjfcy.
thrill
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f the N ational A rch ive s
DECLASSIFIED
Authority V)UD aoozfc,
'/
/ b a l l a n t in e
MR- H A l / MR- HARLAN
XMR. LOWMAN
MR. H E F F E L F IN G E R
MR- HEATH
MR. KILBY
MR- AW ALT
MR. B A R T H O L O W
MR. MORAN
MISS O ’REILLY
MR- B EL L
MR- S C H O E N E M A N
MR. B R O U G H T O N
MR. STARK
MR- B U R N E T
MR. T H O M P S O N
MR. C H A R E S T
I V.
M R. D O U G LAS
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f the N ational A rch ive s
DECLASSIFIED
n,
Authority VlUDaoozfe,
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f th e N a tional A rch ive s
DECLASSIFIED
Authority VlU D aoozb
U
K
^
^
jL
J .
^ A,uJL)
$°
2.0
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f the N ational A rchives
DECLASSIFIED
Authority HMD 3 o ta t*
3 -r r
Form 11Kb
TELbGRA
FEDERAL RESERVE BOARD
WASHINGTON
/
MAY 5
Geery - M inneapolis
Tour w ire 'day 2 .
I f fe d e r a l r e s e r v e bank, a ft e r c o n s u lt a t io n
w ith i t s co u n s e l and In 11 dat o f th e clroiM B tan oes o f a par
t i c u l a r c a s e , c o n s id e r s I t a d v is a b le t o comply *vita re q u e s t o f
c o n se rv a to r o f & n a tio n a l bciJc t o ch arge amount o f i t s r e d is
cou n ts t o i t s r e s e r v e account as o f date o f appointm ent o f con
s e r v a t o r and r e s e r v e account i s s u f f i c i e n t f o r th e p u rp ose. Board
o f f e r s no o b je c t io n *
In any even t* however, you may wish t o con
s id e r a d v is a b ilit y o f ta k in g such step s as easy b e n ecessa ry t o
p re se rv e such r ig h t s as reserv e bonJc rargr have t o in t e r e s t accrued
a f t e r date o f appointm ent o f c o n s e r v a to r in a, c a s e in which charge
t o r e s e r v e accou n t i s -m fceria lly d elayed a t req u est o f or upon
agreement w ith co n s e rv a to r pending p o s s ib le r e o r ^ n i z a t i o n o r r e
sumption o f b u sin e ss by bank o r t o p reserve e ig h t s o f fe d e r a l r e
serv e ban* to acotraed in t e r e s t in event bank i s subsequ en tly per
m itted t o resume b u sin e ss o r i s r e o r g a n is e d .
fm AfWVAl,
M o r r ill
/
!$0V
P'
GBV/ sad
l/V
tr;«
•»
/
myfmsrz
j i t /
at-pf'OVPUnH f(&!*!*
new snHiai-fHt am
il
FI
;/{/
PY
K e p ro a u ce d from the U ncla ssified / D ecla ssifie d H o ld in g s o f the N a tio n a l A rch ive s
d e c l a s s if ie d
Authority
Ur. Kane a d v is e s me th a t the Com ptroll e r o f the Currency h?s issu ed no gen
e r a l in s t r u c t io n s on t h i s s u b je c t but
in th ose c^ses where a con serv ator
has asked them t o do s o , they have
a u th orized the co n s e rv a to r t o requ est
the F ederal r e s e r v e bprnk t o charge r e
d is c o u n ts a g a in st the re se rv e balance
r s o f the date
o f th e appointment o f
the con servator*
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f th e N a tional A rchives
DECLASSIFIED
Authority VlKDaoozfc,
t\
TELEGRAM
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
R E C E IV E D A T W A S H IN G T O N , D . C .
M i n n e a p o l i s M a y_2 1 150am
B oa rd
Washn
The c o m p t r o lle r
r e p r e s e n tin g
of
th e
C u rren cy has a u th o r iz e d
b a n k s w h ic h
v a r io u s
ow e u s and w h ic h h a v e r e s e r v e
con serv a tors
b a la n c e s
nr
-
s u ffic ie n t
to
r e d is c o u n ts
C o n se rv a to r.
we h a v e b e e n
s o w o u ld
cover
to
th e b o r r o w in g
reserve
T h is
a ccou n t as o f
w o u ld n e c e s s i t a t e
a c c r u in g
a p p r e c ia te
on t h e s e
112p
re q u e st us
th e
d a te
fro m
to
of
our r e b a tin g
r e d is c o u n ts ,
in s tr u c tio n s
G eerv
V S eOVBRNMBNT PRIFTING OFFICE 3833
to
ch arge
a p p o in t m e n t
in te r e s t
and b e f o r e
th e b o a r d .
a ll
of
w h ic h
d o in g
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f th e N a tional A rchives
DECLASSIFIED
Authority D U D aot& c,
i0 fO’
TELEGRAM
FEDERAL RESERVE SYSTEM
(L E A S E D W I R E S E R V IC E )
R E C E IV E D A T W A S H IN G T O N
16— 794
F Y
ot
A tla n ta
G e o r g ia
317p A p r il
28
M o r r ill
W a s h in g t o n
A^Large M e r c a n t i l e
banks th a t
to
C ity ,
E s ta b lis h m e n t
am ong w h ic h a r e
r e o p e n b u t now o p e r a t i n g
r e g u la tio n
to
t h e y w o u ld n o t
th e ir
p la n n e d
lo a n s
to
on r e s t r i c t e d
p r io r
ex ten d
agreed
fo r e c lo s e
to
th is
w ith
s a id
c e r ta in
O ctob er
i s . in d e b te d
tw o m em ber s t a t e
M e r c a n tile
c o lla te r a l
to
banks n ot
p e r m ittin g
1933. P r io r
a greem en t n o t
to
V a r io u s
lic e n s e d
b a s is under T reasu ry
n u m b er £7 an d o t h e r r e g u l a t i o n s
T h ese^ ban k s h e r e - t o - f o r e
th a t
i n N e w o r le a n s
to
lim ite d
o p e r a tio n s
E s ta b lis h m e n t
s ta n d in g a s
s e c u r ity
em ergen cy ba n k s had
fo r e c lo s e
u n til
O cto b e r
1934,
m%
t
is
regarded
m en t t h a t
as
im p o r ta n t
fo r m a l agreem en t
V. 8» eOTOLNMKOT PRINTING OFFICfii 1933
b oth
to
to
e ffe c t
b a n k s and t o
th a t
M e r c a n tile
no f o r e c l o s u r e
of
E s ta b lis h
c o lla te r a l
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f the N ational A rch ive s
DECLASSIFIED
Authority VlMD3oozfc.
TELEGRAM
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
R E C E IV E D A T W A S H IN G T O N , D . C .
w ill
be u n d e rta k e n
b een asked
as
to
p r io r
pow er o f
ag reem en t w h ile
s till
w o u ld n o t
v io la tio n
is s u e d
be in
to
th ese
of
and iL w o u ld
a p p r e c ia te
I n my o p i n i o n
any o f
th e
m a t t e r w o u ld
B a n k in g D e p a r t m e n t .
B anks,
y ou r o b ta in in g
sam e.
518pm
S6—794
a t m ost
an d r u l i n g
has
b a n k s t o m ake t h i s
t h e m a k in g o f a g r e e m e n t
p r o c la m a tio n s
h ow ever,
B la c k
tr. 8. COTnMVKMT PRINTING OFFICB: t933
in to ,
tw o m em ber s t a t e
u n lic e n s e d .
t h e r e u n d e r an d t h a t
by S ta te
1 9 3 4 b e now e n t e r e d
o r r e g u la tio n s
be one f o r
w is h
r u lin g
c o n s id e r a tio n
fro m T r e a s u r y
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f the N a tional A rchives
DECLASSIFIED
Authority V1KD 3 0 0 2 b
FEDERAL R E S E R V E BOARD
W A SH IN G T O N
A pril
24.,
1933
B a ile y - M in n eap olis
Your telegram *
Twelve c o p ie s volume 1 in s t r u c t io n s to H atl rs&l
Bank C on serva tors s a ile d to you ton ig h t*
M SJ;
........................... -
M cC lella n d
.«■ a:
"
R e p rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f the N a tional A rchives
DECLASSIFIED
Authority V lU D 3oozt=.
f
TELEGRAM
FEDERAL RESERVE SYSTEM
(LEASED W IRE SERVICE)
R E C E IV E D A T W A S H IN G T O N , D . C .
275gn
M in n e a p o lis A pl 2 4 .
33 0p m
B o a rd
W ashn DC
P le a s ® m a i l t o u s t o d a y t w e l v e c o p i e s v o lu m e o n e o f i n s t r u c t i o n s
t o N a t i o n a l B an k C o n s e r v a t o r s .
http://fraser.stlouisfed.org/
V. S. GOVERNMENT PRINTING OFjTCE: 1033
Federal Reserve Bank of St. Louis
B a ile y
4 5 5p
16— 794
R e p rod uced from the U ncla ssified
I D e cla ssified H o ld in g s o f the N a tional A rchives
"
C
d e c l a s s if ie d
Authority M D & x a t s ,
FEDERAL RESERVE BO ARD
WASHINGTON
ADDRESS OFFICIAL CORRESPONDENCE T O
THE FEDERAL RESERVE BOARD
A p r i l 2d , 1933
x- ?//- / /
Dear S ir :
In c o n firm a tio n o f th e telegram s e n t you tod a y ,
th ere i s in c lo s e d h erew ith a oo-pyj p f th e E x e cu tiv e
Order is s u e d b y th e P r e s id e n t
_
TT
r e la t in g t o f o r e ig n exchange and the earmarking and ex
p o r t o f g o ld c o in o r b u l l i o n o r currency*
Very t r u ly y o u rs ,
C h ester M o r r ill,
S e c r e ta ry
(I n c lo s u r e ) 'v
To the Chairmen o f a l l F e d e ra l re s e r v e banks
R ep rod uced from the U ncla ssified
I D e cla ssified H o ld in g s o f the N a tional A rchives
DECLASSIFIED
Authority VlU D aoozb
118 b
)
TELEGRA
FEDERAL RESERVE B O A R D
WASHINGTON
A p r il 2 0 , 1933
C u rtis s - B oston
Case - Hew l o r k
A ustin - P h ila d e lp h ia
W illiam s - C levelaad
Hoxton * Richmond
Uewton - Atlanta
Stevens - Chicago
Wood - St* L ou is
B a ile y - M inneapolis
McClmre - Kansas C ity
Welsh - D a lla s
Mewtoa - San F ra n cisco
rms so
th e f o llo w in g E xecu tive O rder has today b e e s issu e d by
/
m
the P re s id e n t o f the U nited State#*
(See a tta ch e d )
Quote
Unquote
M o r r ill
I ;c
•
i
R ep rod uced from the U ncla ssified
I D e cla ssified H o ld in g s o f th e N a tional A rchives
DECLASSIFIED
Authority M D a o o z fa
EXECUTIVE OHDER
R e la tin g to f o r e ig n Exchange and th e Earmarking
and Export o f G old Coin or
B u llio n or Currency
By v ir t u e o f the a u t h o r it y v e s te d in me by S e c tio n
5 (h ) o f the A ct o f O ctober 6 , 1917, as amended hy S e c tio n 2 o f
th e A ct o f March 9 , 1933, e n t i t l e d ”An A ct t o p r o v id e r e l i e f
i n the- e x is t in g n a tio n a l emergency in "banking, and f o r oth er
p u r p o s e s ,” in w hich amendatory A ct Congress d e c la r e d th a t a
s e r io u s emergency e x i s t s , X, I’r a n k lin D» R o o s e v e lt , P re sid e n t
o f the U nited S ta tes o f A m erica, do d e c la r e th at s a id n a tio n a l
emergency s t i l l con tin u es to e x is t and pursuant to s a id s e c t io n
and by v ir t u e o f a l l oth er a u t h o r it y v e s te d in me, do hereby
is s u e the fo llo w in g e x e c u tiv e o r d e r :
1.
U n t il fu r th e r o r d e r , the earmarking f p r f o r e ig n
accou n t and th e export o f g o ld c o in , g o ld b u l l i o n or g o ld
c e r t i f i c a t e s from the United S ta tes or any p la c e s u b je c t to
th e j u r i s d i c t i o n th e r e o f a re h ereby p r o h ib it e d , excep t that
th e S ecreta ry o f the T reasu ry, i n h is d i s c r e t i o n and s u b je c t
t o such r e g u la tio n s as he may p r e s c r ib e , may is s u e lic e n s e s
a u th o r iz in g the exp ort o f g o ld c o in and b u l l i o n (a ) earmarked
or h e ld in t r u s t f o r a r e c o g n iz e d f o r e ig n government or
f o r e ig n c e n t r a l bank or th e Bank f o r In te r n a tio n a l S ettlem en ts,
( b ) im ported f o r re e x p o rt or g o ld in rea son a b le amounts f o r
u su a l tra d e requirem ents o f r e f in e r s im p ortin g g o ld b e a rin g
m a te r ia ls under agreement t o exp ort g o ld , ( c ) a c t u a lly r e q u ir e d
f o r the f u lfilm e n t o f any c o n tr a c t en tered in t o p r i o r to the
date o f t h is o r d e r , by an a p p lic a n t who in o b ed ien ce to the
R ep rod uced from th e U ncla ssified
I D e cla ssified H o ld in g s o f th e N a tional A rchives
DECLASSIFIED
Authority
E x ecu tiv e Order o f A p r il 5, 1933 has d e liv e r e d g o ld c o in , g o ld
■bullion or g o ld c e r t i f i c a t e s , and (d ) w ith the ap p roval o f the
P r e s id e n t, f o r tr a n s a c tio n s w hich he may deem n ecessa ry t o promote
the p u b lic i n t e r e s t .
2.
U n til fu r th e r o r d e r , the S ecreta ry o f the Treasury
i s a u th o r iz e d , through any agency that he may d e s ig n a te , to
in v e s t ig a t e , r e g u la t e , or p r o h i b i t , under such r u le s and regu
la t io n s as he may p r e s c r ib e , by means o f lic e n s e s or o th e rw ise ,
any tr a n s a c tio n s i n f o r e ig n exchange, tr a n s fe r s o f c r e d it from
any "banking i n s t i t u t i o n w ith in th e U nited S ta tes or any p la c e
s u b je c t to the j u r i s d i c t i o n t h e r e o f to any f o r e ig n branch or
o f f i c e o f such banking i n s t i t u t i o n or to any f o r e ig n bank or
banker, and th e exp ort or w ithdraw al o f cu rren cy from the U nited
S ta tes or any p la c e s u b je c t to the j u r i s d i c t i o n o f th e U nited
S t a t e s , by any in d iv id u a l, p a r tn e r s h ip , a s s o c ia t io n , or corp ora
t io n w ith in th e U nited S ta tes or any p la c e s u b je c t to the
j u r i s d i c t i o n t h e r e o f; and the S ecreta ry o f the Treasury may
r e q u ir e any in d iv id u a l, p a r tn e r s h ip , a s s o c ia t io n , or corp ora
t io n engaged in any tr a n s a c tio n r e fe r r e d to h e r e in to fu r n is h
under o a th , com plete in fo rm a tio n r e l a t i v e t h e r e t o , in c lu d in g
the p r o d u ctio n o f any books o f a cco u n t, c o n t r a c t s , l e t t e r s or
oth er p a p e rs, in con n e ctio n th e re w ith in the cu stod y or c o n t r o l
o f such in d iv id u a l, p a r tn e r s h ip , a s s o c ia t io n , or c o r p o r a tio n
e it h e r b e fo r e or a f t e r such t r a n s a c tio n i s com pleted .
3.
The p r o v is io n s r e l a t i n g to f o r e ig n exchange
tr a n s a c tio n s con ta in ed in the E x ecu tiv e Order o f March 10, 1933,
s h a ll remain in f u l l f o r c e and e f f e c t excep t as amended or sup
plem ented hy t h is ord er and "by r e g u la tio n s is s u e d hereunder.
R e p rod uced from the U ncla ssified
I D e cla ssified H o ld in g s o f th e N a tional A rch ive s
DECLASSIFIED
I
Authority VlUD a m t ,
4.
A p p lic a n ts who have g o ld c o in , g o ld b u l l i o n or
g o ld c e r t i f i c a t e s in t h e ir p o s s e s s io n , or who in obed ien ce t o
the E x ecu tiv e Order o f A p r il 5 , 1933 have d e liv e r e d g o ld c o in ,
g o ld b u llio n or g o ld c e r t i f i c a t e s s h a ll be e n t it le d to lic e n s e s
as p ro v id e d in S e c tio n 8 o f s a id E xecu tive Order f o r amounts
not exceed in g th e eq u iv a len t o f such c o in , b u llio n or c e r t i f i
c a te s h e ld or d e liv e r e d .
The S ecreta ry may in M s d i s c r e t i o n
is s u e or d e c lin e to is s u e any oth er lic e n s e s under s a id E x ecu tiv e
O rder, which s h a ll in a l l oth er r e s p e c t s remain in f u l l f o r c e
and e f f e c t .
5.
Whoever w i l l f u l l y v i o l a t e s any p r o v is io n o f
t h is E x ecu tiv e Order or o f any r u l e , r e g u la tio n or lic e n s e
is s u e d thereunder may be fin e d n ot more than $ 1 0 ,0 0 0 , o r ,
i f a n a tu ra l p e r s o n , may be im prisoned f o r not more than ten
y e a r s , or b o th ; and any o f f i c e r , d i r e c t o r , or agent o f any
c o r p o r a t io n who know ingly p a r t ic ip a t e s in any such v i o l a t i o n
may be punished by a l i k e f i n e , im prisonm ent, or b o th .
This ord er may be m o d ifie d or revoked a t any tim e.
THE WHITE HOUSE
A p r il 20, 1933.
FRANKLIN D. KOOSEVELT
R e p rod uced from the U ncla ssified
I D e cla ssified H o ld in g s o f th e N atio n a l A rch ive s
d e c l a s s if ie d
t*
Authority VWD3002fe
/
u
Mmwtimm
m*mm
Qh'tffc
t e r H m - Tmnt - ••'»**«*
- i»* %*•&
^msHn - n*rri» *
VilUiAt * &Mk4h«r *
I ext«m -
SMilo* ~
fBAlB
%X*ivwlm&
Mlk&z. * M&uttft
s»tonring
wmimA
•&•*! haakm Itm Teak,
a*i
to
f?ti$S*
W&%mpa
Wswkltom %*mmm
<*
i*v*a - itotttm <* §i* l*mi*
- 0#***# - friitaB«pc»U«
Ma®!**** *
“
fl%
* IMlMMtir *
* ^tOldli* * tea ?***»«&*<*
::.sajr * Mt&moaA
Z^L.
",
mmrnqmayfattg sfettMmft
Wimrn^Tm^m hmtm m imlirnrnt
•»&
$&*&P*§§t*
T*Mwm*Mtos&
**lv**»c»* *•&»*
lkmeto«iiig» of te*afe*
ym%w* $Mm&* 4i*tvt«l#
||
R e p rod uced from the U ncla ssified / D e cla ssified H o ld in g s o f the N a tional A rch ive s
DECLASSIFIED
Authority VlMDaoozfc
AL R E S E R V E BANK O F C H I C A G O
230
SOUTH
LASALLE
STREET
A p r il 1 5 , 1955
IF T H E J f O A R D AND
R ES ER VE AGENT
F ed era l Reserve Board
W ashington, D* C.
Mr* C h ester M o r r ill,
Gentlemen:
A ft e r a telep h on e c o n v e r s a tio n w ith Mr* J e s se Jones
today and on h is req u est f o r more in fo rm a tio n , X have w ritten
him as p er copy e n c lo s e d , which I t^ in k w i l l be o f in t e r e s t
-u
o
.'
o4-
C op ies sen t t o Messrs* Meyer, Hamlin, M ille r , James, H a rrison , Wyatt
F a u lg e r, and Smead
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority UNDBOOZfc
Apr13,
S0BJ£C?t
19&3
&oaiitt£ *itu#tioa.
J**m
Mr#
Jonoo
Corof XttMiltiyoUflB Fiaaaeo Corporation
S*»hlagten» &* C«
Doar Mr* Joaoo*
ilgam*
Hofarrtag to o»r toXo$»fcoao ooavorootioa t«4*?f
are* oC course,
fooiXior with the boakiag situation in tho stot* of &icltig«n. ltoeont
proporod fajjf no »ho« *«
(89 Ot®tO
1
of
M i r bftafco in Jftielt%«a - X54 (0 $ n a tio n a l; total 'dopcraito $i»3$»OOQ*O0d
Bonk* Xiconoed to Op<ft ~ dO £*po»it* #£41*000*000
Boako la hftficU ef
C m m m td ti
Sack* unojxmod
P«rc*at*got
~ ft
~ i7
Iftuftor $9$.
*
11
?ostaoo9ooo
42*000*000
Doposito 14-1/2#
Tho ahovo figtsroi laoXmlo th« two U r|i boaKo Is Detroit no* ia
tiio bond* o f am M m tan hat do not tocXudo tho ao* Hoticas! 8*nfc oi J>«troit*
I f th* too Xorgo bonk* «lth 4opooit# o f $&6£#000#QQO ho ollaiaatod fro® tho
pioti»ro9 tbo porooatogo* weald oho* St$ aaabo? o f hoako opoaod* aad $8% Is
d tp eilti thoroof« fh io oo*g*rod *lth tho root oiv our d istrict of 84£ o f
aoikor hoako opoaod with 9l£ o f tttaX dopooito*
tim
thin ia a itrlldng pdotaro of tho rool position i©
fctisto of
aichigaa outairio of Botrolt* Aa you kaow9 ta* aorat&riti* ia MichigBXt otortod
on fafcntaagr
aad aaat of thoao baaka haw* boon eloaod alsioo tbat tiao* la
tho aoaatia* 9 tho fdMLieltr of tho Xwfcroit aitaetioa and tLo agitation th*ro
ha* boon roflaotod &XX ov*r th* estate* Thor# ari* numerous potato in th* ot*te
wboro oithor no or tn*ufficiont baaidfig facilities *r» ia o*ia?.*noo *itb
roaultiag unoapXayaaat aad aaroat, particularly ia the taduatrial c«at»ra9 «XX
of ohieh ooaatitutoe * aoaaoiag oita&tloa not oaly ia Uiehlga» but9by oxoapXo*
olaowh&ro if aaothor conflagratioa ahoulct atart ia tgichi^aa* Tho u a m t ia
aiao a ftoaooo to th# btMUio ^hioh htnro boon opcao<l«
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
::
Authority tiH D aooafc
Ur*,Joooo Jonoft*
April
*&c
lb$
Comal**toner ~mr* Xh*mi
coulc
Th® Oovoraor
tho Bonking
vorki*^- with
tba logioloioro oinoo oorly in fobru&xy on no* bonsiiijs lo&i&l&tion to aoot
thio oittuttloa, dad finally » bill m s poeaod on Moroh 21* 1&25, dooignod
to offoot a blanket plon under »hi$h « largo ouab^r of tank*
be oponod
at oaeo* Bo do not beliovo this 1* doairfcblo du« to o&ryin* condition** in
yfcrlcue boako and coawmltleo, *is& thoro aro t**my feature* of tho propoood
£laa abtcJi do sot aoot with our apprwml* d«»tv«r, tho roorgonisation of
tho bank* in Michigan ha* goaoroiljr b o m limiting the outcoiao of this la^ia*-*
latioa. *o ha*o hod mattfoitft ooafoi'onoo* with u w Stato aaihoritioo *nd
other* ia'&lohi&oa and aloo *ith tho f'rooomy and tb* FodaraJl iioaorro Board
ia Steohington* X think it io the view of all of u* that thl*s plan doo* not
Sftvt tlio dooirod rooolt*
to roeogaiso tho iaporativo aoeoooiV of roloaoiti" thooo frooon
dopooita oo for oo aogr bo dono un«3#r *njr sound plan* fee etweetv# that tho
tioo baa aaao ohon noaotfcing oonotruotiv© ohould bo uadortaiiott on tho port
of tho various govonuaontoX authorities In conjunction*
to thio tad} in vioo of oil thooo circu»ot&nctfw, i &«££<*at tho
doairobilitjr of on abroach froo th« atondpoiat of r*org«ni*otion of tho
banking otraotmro in Kichigoa, rathor th*n of «»eh indivimifcl iywik, and
*ltfc tho initiative of gororaaoatal autboritios*
ymr
I o%»ggt»t, thorofara* thet your carport tion dooignato a r&proaoatativ© *booo roooaoondfctio&K i?onXd bonro o coapollin^ influonoo cith
board,
that tho CoKptreXlor* a Reorganisation fctfp&rtoont do*ig»at«? a &i«ilar repratonU U v O | tbot fcbo Federal Koo#r?o %ont in Chic^o noao a r«;>r*s#fti*tivo
tlailarly ipallfiod* oad tbot thaoo oon prooood to Miohi^aa to oit in flth
tbo ^toto Ooaoiooioaor of Bunking fcm'!
«, grou^ bo >rwf«r*d to ox£»aino
oot upoa#in ®oo*diafctloaf tbt otote ro<tair«aonts &*^ »X#o b« pr#|>nr«-d to
ot^r on tho job for ooao woobo if aoooooox^*
»u
mn
Thi& groap nould incltsdo
thorois^hly fo»ili«r *ith tho ^tiolo
bftn^irig oit^otlon ond roquiroaonto in t>«& btato &nd
h»v^ at ito eoafiu&nci
tbs eoafidotttiol roporto of all b&nko ood thoir noodo* Xt should prooood
fr014 tho conoidorotion of tho noodo of tm>. v^rioao oooteomltioo for banking
f&ciliti«o# giving firot ettontion to the?
points in t ^ ^u.to,
tiiorooftor taking up tho oooilor ooaonnltioo*
Xt should oJtpior*
hank^tg oittu^tion in « giv^. toisa 4md
thoroupoa dotoraine froa ito joint kaowlodgo
fi^urea of tho h^nko
ia ito pooooooioa w-h&t ohould bo dono* Xhio iai^ht bo In tb# n«tur« of 6
roorgonlootioa of o oort&in bonk or b&nka, consolidation or th^ oUrting of
o non bonk out of tfto oxioting banks•
int^rotftoii
froa
%tw
Thvrmpim,
R ep rod uced from the U ncla ssified / D e cla ssified H o ld in g s o f the N a tio n a l A rch ive s
declassified
Authority DND3002C,
Ur* Joaao
April IS* XiSS
that aitjr afcoiild bo aaXXad ia to ant with tha group* tho altufttlaa
w i w d i tai * >Xaa «ot up
lonll n « t tho appro**! of tho givoi
aad *kich aigbt iaauaoroaa m m iaveln tho participation of tha 8# F# C*
la tho purobaao of proforrod atoak* Tho roproaaixtatlvaa of tho altar Ia
quoatloa would bo told that if tbagr wouXd g« back tad do tteaa and oo, tho
I, F, €* would da oortala thing* wad tho bonk or beakarst could thoroapaa
bo apoaad.
t b U woaXd gl#a tho aoomalt? osattblng dofiaiW to work on#
1 hollow* that aaao «Mb plaa, la which tha iaitiativo novo takoa
If thaao joint matborlti**, would toad to aXaar tho actuation at oaoo aad
aa thoao baaka novo baiag gradaaXSy *m& oplodlly oatobXiohod In tfco Y*rlouo
faiwwiltitii tbo aaiftXo of tho vholo bteto «oaXd iaaodlatoly bo otr*angth*n#d.
" I tbtotc that whoa thAa job »*a finiahod, wa would all of t*# h*wo a feaakiag
ftrueturo ia tho aoat oaaoailal potato Is, tho Stuto which arn&tf ae*t the
oooda. I think that bf raooaa of th# daXtye «M t&o X&#k of co<?r^ta&tiaa
tfcn# far, it to oaaaatial that tha initiative* bo t#fc«r* hy th»«# in «mtborl%r
in thio partlatuLor iaataaaa*
Tho aopitfell»ati<w* of tha taaftbor baK&* in tha tfiAfco whica ara
sot ll#o»ood to opoa 1 ft #$proxla*toly $1**000,000, with aurplna *nd profits
of opproxiafttoXr 1 X1 ,000,000. ¥h* awtaaubor boak#
ga*a**lljr of aaeXler
«!«•» 8aao boako coald not rwopea at ail aad athera would .not nood to h&wo
thair praaoat oapital falJy raatorod, aa tfiat 17 gaoaa it thet
000,000
of »«v aapitallaatlofi fttfttiohad bgr tho t« F* C» would pat is fern t souad
bo&klng Hinibtr* ia
&t*t* of ilebX^im
n««d'ad*
fool thot
It wiXd bo
eb a«ro offootiv* ond atu«h m e ^ o r ia ita opomtioa thon if
th* oatboritioo wdtod for t^o initiotifo oi* tlse T®ri«ttc ocnmaiiti«« la
golaf to tea oo ladlirid^aX boaba*
mvt
m
%h*
%*lm
X aa oaaXaalaf* aa on cduu^XOf a aoaoroitdua of £baoo b«F aitioo
ia IHol^coai ia vblob tbo boak* Xiatod &r* aot op«a oa aooouat of tboir
ooaditioa* fbaro aro anagr othor olttifttloas of i«j>ort*nc* vrbieb aood attontimi.
md
X boXiovo that iJtM» aaapovatl^n of the wrio’jtfi lat»r«?*t» lavoivod
aouXd bo iHaiaad to tbo adva&tago of oaali of tboa,
I tsuat tbia raigoiUoe
vlXX bawo yoar aoaaidor&tioa»
Vo bavo atodlod tbia aattor iatoanivoljr for ooao tiao &nd la agr
opialoa tb ii aooao to bo tho boot
oat*
foxy truly
<mrof
Chtiri&i
XICS HH
R ep rod uced from the U ncla ssified / D e cla ssified H o ld in g s o f the N a tio n a l A rchives
DECLASSIFIED
f
*
Authority VlWD3oozfc
3 7 ./ ■ /
FEDERAL RESERVE B O A R D
W A S H IN G T O N
fasohe;-? -
y
^
^
oi/sv-itm
Your w ire A pril. 1 3 • Board sees no o b je c t io n t o a p p lic a t io n
o f o ld re e e rv q b a la n ce o f S ta te member bank, in hands o f co n s e rv a to r
t o r e d u c tio n o f i t s b ill© payable t o your bsnic under circu m sta n ces
s ts t e d in you r telegram and w itii understanding th a t s p e c ia l a ccou n ts
w ith your ban* in sfhicii a re d e p o site d p roceed s o f e p e o ia l t r u s t de
p o s it s r e c e iv e d by co n se rv a to r or amounts made a v a ila b le f o r withdrawa l w i l l n o t be in aoy way a f f e c t e d .
S u r e s t you c o n s u lt your Counsel
ab t o any l e g a l q u e s tio n s which roey be in v olved # 23a t n l s con n ection
see s u b d iv is io n 2 o f B oa rd ’ s 'IRANS 1753 and see a ls o THAliS 1735 re
r e se rv e requirem ents o f member b&nfcc in hands o f c o n s e r v a to r s .
For
•>
•fSjwfn*'. • > / 4
If
St VOU
‘j
FulLE
' •>
-
:
R ep rod uced from the U ncla ssified / D ecla ssified H o ld in g s o f the N ational A rchives
DECLASSIFIED
Authority VJNDSflOzt,
u jn r
1:S;v
1/
F o r m 1 (8))
TELEGRAM
FEDERAL RESERVE B O A R D
W A S H IN G T O N
A p ril 15» 1 9 8 3 ;
r:
Seay - Hichaond
McDougal - Chicago
M artin - S t . Louis
Geery - M inneapolis
Yotmg - Boston
H arriso n - Mew York
N o rris - P h ila d e lp h ia
Fancher - C leveland
THAI©# / /
#7 3
(X,
Hamilton - Kansas City
McKinney - Dali**? •' k
Galkina -
3m ?ma*is*9 mu,.
In response to a a in q u iry from a F ad a ra l re s e rv e bank, th e
/
T*|/VM
tre a s u r y Department lias advised a s fo llo w s;
'
3
"Inasmuch a s c o n se rv a to rs a re a u th o riz e d to renew pledged n o te s w ith
th e eonaent o f th e p le d g e e s, th e T reasury w ill n o t o b je c t to a c c e p tin g renew al
n o te s h eld a s c o l l a t e r a l s e c u r ity a g a in s t war lo a n d e p o s it a c c o u n ts, provided
such renew als a re f o r a p e rio d n o t exceeding t h i r t y daya w hich, X u n d erstan d ,
i a th e l l a i t o f a u th o r ity g ran ted to co n serv ato rs*
As you w il l note by r e f e r
ence to th e c o l l a t e r a l s e c u r ity p ro v is io n s o f C ir c u la r No* 9 2 , th e approval and
v a lu a tio n o f s e c u r i t i e s I s committed t o th e s e v e ra l F ed eral re s e rv e banks*
The
T reasu ry p r e f e r s , th e r e f o r e , to leav e th e m a tte r la r g e ly to th e d is c r e tio n o f
th e v a rio u s F e d e ra l re se rv e banks aa th ey a re I n a b e t t e r p o s itio n to d e te ra in e
th e d e s i r a b i l i t y o f t h i s procedure in any given case*
I f renew al n o te s a re n o t
accep ted i t presum ably would be n e c e s sa ry , In o rd e r to p r o te c t th e i n t e r e s t s o f
th e U nited S t a t e s , to proceed to c o lle c t m aturing item s d ir e c t from th e makers
o r in d o rsers*
Tikis procedure would throw some a d d itio n a l work upon the F ed eral
re se rv e bank and may n o t be d e s ira b le under p re se n t co n d itio n s*
Pending f i n a l
d e te rm in a tio n a s to w hether a d e p o s ita ry bank l a to be reopened o r liq u id a te d ,
I m in c lin e d to the op in io n th a t a l l i n t e r e s t s would be b e t t e r served by
ac c e p tin g renew al n o te s upon a t h i r t y day b a s is , a s in d ic a te d above*
The i n t e r e a t due from th eae n o tea should be c o lle c te d i n a l l e a se s and
'
..w
u“lf[QP"
* 'account o jJ tS e d»po»ft.tary
SRC/aew
bank a a ^ p a y p u i t a g a in s t .J h e war lo an d e p o s it
R ep rod uced from the U ncla ssified / D ecla ssified H o ld in g s o f the N a tional A rchives
~
r
DECLASSIFIED
Authority VlM D3oozb
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f the N ational A rchives
DECLASSIFIED
'■*
'
Authority NM D3oo2fc
P orm l l s b
TELEGRAM
FEDERAL RESERVE BOARD
W A S H IN G T O N
April 33 , 1933,
B lack
A tla n ta
Ratal
8 t r e a s u r y a d v is e s a s fo llo w * i
Quota* Inasmuch a s co n s e rv a to r s a re a u th o rise d t o renew
p led ged nb%es w ith th e oonsent o f th e p le d g e e s , th e T reasury
w i l l n ot o b je c t t o a c c e p t in g renewal n o te s h eld ae c o l l a t e r a l
s e c u r it y a g a in s t ear lorn d e p o s it a o o o u n ts, p rovid ed suoh renew als are
f o r a p e rio d n ot e x c e e d in g t h i r t y days walch* X understand* ia the
.lim it o f a u t h o r it y granted t o con serv a tors*
As yon w i l l n o te by
r e fe r e n c e t o the c o l l a t e r a l s e c u r it y p r o v is io n s o f C ir c u la r So* 92*
th e ap p roval and v a lu a tio n o f s e c u r i t i e s is ooramitted t o th e s e v e r a l
F ederal r e s e r v e banks. The Treasury p r e f e r * , t h e r e f o r e , t o le a v t th e m atter
l a r g e l y t o th e d i s c r e t i o n o f th e v a r io u s fe d e r a l r e s e r v e banks as th ey are
In a b e t t e r p o e it io n t o d eterm ine th e d e s i r a b i l i t y o f t h i s proced u re in
any g iv e n ease*
I f renewal n o te s a r e n ot a cce p te d i t presum ably
Id
be n eoessary* in o rd e r t o p r o te c t th e in t e r e s t s o f th e United S ta tes*
t o p roceed t o c o l l e c t m aturing item s d i r e c t from th e makers o r in d o r s e r s .
T P s p roced u re would throw some a d d it io n a l ?*ork upon th e Federal re s e r v e
bank and may n ot be d e s ir a b le under p resen t c o n d itio n s * Pending fln il
d e te rm in a tio n a s t o whether a d e p o s it a r y bank i s t o be reopened o r
liq u id a t e d * I am In c lin e d to th e o p in io n th a t a l l I n t e r e s t s would be
b e t t e r served by a c c e p tin g renewal n o tr s upon a t h i r t y day b a s i s , as
In d ica te d above.
''T h e in t e r e s t due from th e s e n o te s should be c o l l e c t e d in
a l l c a s e s and a p p lie d b y th e Federal r e s e r v e bank a s a payment agr In st
th e w tr lo a n d e p o s it accou n t o f the d e p o s it a r y bank. Unquote.
MOHRILL
/«n
ornc V O
IS
l;r
*.«» (**■#«»«*
initial liie copy
•
i'J$+
vc u fsiyri
^Ek
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f the N a tional A rch ive s
DECLASSIFIED
Authority M D 3 o o a t,
TELEGRAM
m
b
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
f h
C le v e la n d
5 2 5 p a o l IB
received a t Washington, p. c.
B oa rd
W ashn.
Is
it
p e r m is s ib le
of
sta te
to
to
bank a t
s ta b le
to
o ld
r e d u c tio n
assu re
A ll
in
in
of
a p p ly
hands o f
o ld
fu n d s
are p r o te c te d
con serv a tors
b a la n c e
c o n s e r v a t o r u n d e r O h io
p a y a b le
of
sta te
o f ban k s w ith r e t e n t i o n
se g re g a te d
reserve
m em ber b a n k
co n s e rv a to r under a u th o r ity
paym ent o f b a la n c e
b a la n c e s
b a la n c e
bank t o
of b ills
requ est
s u p e r in te n d e n t
bank?
th is
m em ber b a n k n ow
sta tu te
th is
fo r
r e m a in in g
of a ll
p a y a b le
s p e c ia l accou n t
F an ch er
reserve
w ith
c o lla te r a l
b y s t a t e m em ber
in c lu d in ^ ^ e s tr ic te d
b y 100 p e r c e n t
of
th is
p o r tio n
of
in
or
cash
bank.
v
« QonsNMrarr n u n n m ofticb : i m
16—794
R ep ro d u ce d from the U ncla ssified / D e cla ssified H o ld in g s o f th e N a tional A rch ive s
DECLASSIFIED
C •„
.
Authority viH Paoozfc
borrowings o f U n licen sed Member Bank&
Prom f e d e r a l R eserve Banks and Claims
) f F ed eral Reserve Banks A gain st
Closed Banks.
SUBJECT:
V
Dear S ir :
There i s a tta ch ed h e r e t o , f o r your c o n f id e n t ia l
in fo r m a tio n , a copy o f a memorandum, to g e th e r w ith a
copy o f the statem ent r e fe r r e d to th e r e in , prepared under
date o f A p r il 8 , 1933, "by Mr. Smead, C h ief o f the D iv is io n
o f Bank O perations o f the F ed era l Reserve B oard, w ith r e
gard t o the amount o f borrow ings from f e d e r a l r e s e r v e
hanks, as o f March .31, 1933, by member banks not lic e n s e d
by th e S e cre ta ry o f the Treasury t o reop en , and the amount
o f claim s o f F ed era l re s e r v e banks, on March 38, 1933,
a g a in s t c lo s e d banks.
TTery t r u ly y o u rs ,
Chester M o r r i l l ,
S e c r e ta r y .
In c lo s u r e s .
to
a il
m m m m
&
v m im m
of ah. f . r*
m
m
.
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f th e N ational A rchives
DECLASSIFIED
w'
Authority UMDSoozfe,
X -7410-a
FEDERAL HESERVE
BOARD
O F F I C E
C O R R E S P O N D E N C E
Date
A p r il 8 , 1935
To_____ F ed eral R eserve Board
Subj e c t __________ ________________________
From
___________________________________________ _
Mr. Smead
A ttach ed i s a statem ent showing the amount o f borrow ings from the
F ed era l r e s e r v e banks, as o f March 31, o f member banks not lic e n s e d to
reopen by the S e cre ta ry o f the Treasury but which as o f th at d ate had
n ot been p la c e d in p r o c e s s o f liq u id a t io n .
I t w i l l be n oted from t h is statem ent that 892 o f such banks were
in d eb ted t o th e F e d e ra l r e s e r v e banks in an a g g reg a te amount o f $ 1 2 4 ,752,000 o f which $ 4 8 ,26 4,000 was on re d is c o u n te d e l i g i b l e p a p er,
$ 6 7 ,82 8,000 on advances under S e c tio n 13 o f the A ct and $ 8 ,6 5 9 ,0 0 0 on
advances under S e c tio n 10~b,
As o f March 28, the l a s t date f o r which fig u r e s a re a v a ila b le ,
the F ed era l r e s e r v e banks a ls o r e p o rte d $ 2 7 ,73 8,000 o f claim s a g a in s t
c lo s e d ban ks.
The amount o f su«h claim s r e p o rte d by each F ed eral r e s e r v e
bank: was as f o llo w s :
B oston
New York
P h ila d e lp h ia
C levelan d
Richmond
A tla n ta
$462,000
3 ,9 1 7 ,0 0 0
4 ,2 4 3 ,0 0 0
269,000
6 ,7 1 0 ,0 0 0
4 ,9 8 7 ,0 0 0
Chicago
S t . Louis
M inneapolis
Kansas C ity
D a lla s
San F ra n cisco
$887,000
894,000
1 ,7 7 7 ,0 0 0
1 ,0 6 0 ,0 0 0
855,000
1 ,6 7 7 ,0 0 0
borrowings from federal reserve bank of member banks not licensed t o
6p w
b y the secretary of
THE TREASURY, BUT ^HICH HAVE NOT BEEN PLACED IN LIQUIDATION.
(F ig u re s as of March 31, 1933)
F ed eral
R eserve
Bank
Number
of
hanks
T ota l
Boston
New York
P h ila d e lp h ia
38
119
27
$7,701,893.06
21,898,78-1.13
24,231,022.16
$3,759,3^3.58
,
5>33M52.>+5
20,5U2,273.93
15,228,930*91
7,923,424.36
8,595,^1.50
9,923,367.13
4,972,472.89
103
C levelan d
Richmond
A tla n ta
S3
4l
201
Chicago
St * Louis
M in n eap olis
T ota l
8, 1933.
18 651 812.33
1 1 ,91)6,832.1+3
5,305,563.7s
1,892,772.96
—
1 5 1 582.01
27
37
7,191,986.^9
,
3,751,078.73
2,55^,183.12
ul+2,600.01
1+75,221.59
3,85U,683.37
1^5,529.75
2,209,710.1+2
892
124,751,591.57
1+8,2$+, 150.65
69
DIVISION OF BANK OPERATIONS,
ASEIL
10,135,758-6U
3 160 51 9 1*8
$ ,
, + ,
17,565,507.^
,
,
1 ,658,960.80
1 ,1+36,117.61
50
1 669 720.62
519 367.91
10,759.82
, ^ ,
37
Kansas C ity
D a lla s
San F ra n cisco
11,046,650.80
,
,
2,977.699.62
Indebtedness to F ed eral R eserve Bank
R ediscou n ted
Advances
under
e lig ib le
paper
S e c tio n 13
588 129.76
£>7,828,040.33
Advances
under
S e c tio n 10-b
$782,000.00
3,813,905.82
21+5,157.38
---
1 ,058,178.51
910,892.16
—
—
783,120.00
—
1,066,146.72
8,659,400,59
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f the N a tional A rch ive s
DECLASSIFIED
Authority VlMDSoozfc
l933.
TELEGRAM
13 AM II 41
'ERAL- RESE RVE BOARD
L ^ leased wire service
W ASH IN G TO N
APR
mrttrn O m m * 9 m 1M
TRANs /
^ 2-9454
1 ^ 1^31
Ifestoft. m*rn»a*
tomtom ~
a i m M - Gbit***
* * * • St* *•«*«!
fail** - rnmmmmUm
- *mwm* H t f
*
1* ^ - • » » « * § « •
M%*9
In o rd e r that Board may f o llo w c l o s e l y a l l changes in s ta tu s o f
banks, p le a s e m a il as soon a s p r a c t ic a b le statem ents showing
(A) Name and lo c a t io n , a ls o t o t a l d e p o s its a s o f l a s t c a l l f o r c o n d it io n
r e p o r t s , o f each nonmember s ta te bank, t r u s t company, s to c k savings bank, mutual
sa v in g s bank and p r iv a t e bank under s ta te s u p e r v is io n i n you r d i s t r i c t *
lis t
This
should be p rep a red a s o f A p r il 12, 1933, the date o f you r supplem ental l i s t
o f banks a u th o r iz e d t o reopen, and the banks should be grouped a s f o llo w s :
( l ) Opera
tin g w ith out r e s t r i c t i o n s o th e r than th ose a p p lic a b le t o a l l banking i n s t i t u t i o n s
under Executive Order o f March 10, 1933*
(2) Operating under r e s tr ic tio n s in ad
d i t i o n to those a p p lic a b le to a l l banking i n s t i t u t i o n s un d er E xecu tive o r d e r o f March
10, 1933, whether such a d d it io n a l r e s t r i c t i o n s were imposed by State banking depart
ment® o r by ban ks1 boards o f d i r e c t o r s , and whether such banks a re i n charge o f State
banking departm ents, o f c o n s e rv a to rs o r s im ila r o f f i c i a l s , o r o f banks* boards o f
d ire cto rS |
(3) Not in clu d e d e it h e r i n group 1 o r group 2 b u t not p la c e d i n p r o ce s s
o f l iq u id a t io n or in r e c e iv e r s h ip .
(B) Name and l o c a t io n o f each s ta te bank and t r u s t company member w hich, a s o f
A p r i l 12, 1933* had not been lic e n s e d by S ecreta ry o f Treasury to resume f u l l
banking o p e r a t io n s , grouped a s fo llo w s :
(1) O p e r a t i c under r e s t r i c t i o n s i n a d d it io n
to th ose a p p lic a b le t o a l l banking in s t i t u t i o n s under E x ecu tiv e O rder o f March 10,
1933» (2) Not in c lu d e d i n group 1 but n ot p la c e d in p r o c e s s o f liq u id a t io n o r in
r e c e iv e r s h ip .
(C) Name and lo c a t io n
e*ch p r iv a t e bank not under s t a t e s u p e rv is io n but
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f th e N ational A rch ive s
d e c l a s s if ie d
-4
w4
Authority
r
TELEGRAM
FEDERAL. RESERVE BOARD
LEASED W IR E SERVICE
W A S H IN G T O N
mm
2-9454
, p,
2
included, in your printed l i s t s o f banks authorised to reopen, as well as o f
any other in s titu tio n included therein which would not "be included in
abstract of condition reports o f sta te banks.
(D)
Uame and loca tio n o f each nonmember sta te bank, trust company,
stock savings bank, mutual savings bank and p riv a te bank under state supervision
which suspended, went into liq u id a tio n , or was absorbed by another bank during
the period March 1 to 12, 1933, together with the date and manner in which
the bank went out o f existence.
Please also mail a sup clement to l i s t s A and B above as o f each Wednesday
beginning .April 19, 1933, in order to enable Board to keep o rig in a l l i s t up
to date.
Ho corresponding data need be submitted covering national banks.
In lie u o f telegraphic and mail reports o f bank suspensions heretofore
furnished please wire Board as soon as p ra ctica b le name and lo ca tio n o f each
bank which, during period March 13 to April 12 ( l ) suspended or went into
liq u id a tion a fte r resuming f u l l banking operations, code SAVE, (2 ) suspended
or went into liq u id a tion a fte r resuming operations on a r e s tr ic te d basis or
without having resumed any banking operations, code S1RV, (3) was placed on
a r e stricte d basis a fte r having resumed f u l l banking operations, code SIMM.
Please also wire corresponding data currently h ereafter.
Reports on form St.
63S6- a should continue to be submitted monthly covering a l l bank consolida
tion s, absorptions and mergers, and on form St. 6386- c covering new banks,
successions and conversions.
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f th e N a tional A rchives
DECLASSIFIED
Authority DUD 3 0 0 2 b
ieJ
TELEGRAM
F E D E R A L RESERVE BOARD
LEASED W IR E SERVICE
W A S H IN G T O N
seHfijirrows
2-9454
aPO
- 3 -
Pending r e c e ip t and t a b u la tio n o f th e s e d a ta , s t a t i s t i c s o f bank
suspensions w i l l n ot be p u b lis h e d by B oard, and i t i s su g g ested t h is
p o l i c y be a ls o fo llo w e d a t you r bank.
MORRILL
R ep rod uced from the U ncla ssified
I D e cla ssified H o ld in g s o f th e N a tio n a l A rchives
DECLASSIFIED
Authority DUD 3oozfc,
•V,
F o r m 118 If
TELEGRAM
FEDERAL RESERVE BOARD
WASHINGTON
Cleric
3an F r a n c is c o .
Tour w ire A p r il 11#
I f Oregon s t a t e member beak in q u e s tia a has been
c lo s e d o r r e t i r e d t o d is c o n tin u e m r m l banking f u n c t i o n by Superintendent
o f Bstoka taider a u th o r ity o f p r o v is io n * o f S t a t e law* i t would appear tfcet
i t s s ta tu e , f o r purposes o f you r q u e s tio n , ia s im ila r t o th a t o f baak in
bands of r e c e iv e r o r c o n s e rv a to r and ^fso.Board f e e l e tb a t F ed era l re se rv e
bank i e n ot a u th orised t o d isco u n t f o r o r t o m k e advances t o auch benk«
Board not a d v leed o f ^ r e v is io n s o f s ta tu te i a q u e s tio n , however* and cannot
ex p ress d e f i n i t e o p lh io n a s t h i s qu estion *
c o u n s e l aa t o s ta tu e o f bank*
I t i s sufpge s te d you c o n s u lt your
Bvea I t F ed eral re e e rv e bank baa r e q u is it e le g a l
a u th o rity * how ever, qu est io n whether e r e d it should be exten d ed t o any member
bank i s one f o r e x e r o ia e o f d is c r e t io n o f F ed eral r e s e r v e bank and as in d ic a t e d ia
Trane* 1753 ia t o be determ ined in the l i g h t o f a l l the eiraymetafloe© in th e eaae* I
IK
\-\tmc inltiejtilecm
li v^-* 4i=ucw
raw^
R ep rod uced from the U ncla ssified
I D e cla ssified H o ld in g s o f the N a tional A rchives
DECLASSIFIED
r
Authority tlW D aoozb
TO MR. MOHBIIJii
The n otes r e fe r r e d t o in the a tta ch ed telegram , d ated
> ril 8 , 1933i from Governor B la ck o f the F ed eral Reserve Bank o f
A tla n ta , are p le d g e d a g a in st war lo a n d e p o s it a ccou n ts under th e
p r o v is io n s o f Treasury C ir c u la r No. 92, a cop y o f w hich i s a tta ch e d .
*
as c o n s e r v a to r s a re a u th o riz e d t o renew p le d g e d
a o t e s w ith the con sen t o f th e p le d g e e s , the Treasury w i l l n ot ob
j e c t t o a c c e p tin g renewal n o te s h e ld as c o l l a t e r a l s e c u r it y a g a in st
war lo a n d e p o s it a cco u n ts, p r o v id e d such renew als are f o r a p e r io d
not e x ce e d in g t h i r t y days w hich , I understand, i s the l i m i t o f
a u t h o r it y gran ted t o con serv a tors* As you w i l l n ote b y r e fe r e n c e
t o the c o l l a t e r a l s e c u r it y p r o v is io n s o f C ir c u la r Ho. 92, the approval
and v a lu a t io n o f s e c u r i t i e s i s committed t o the s e v e ra l f e d e r a l re se rv e
banks. The Treasury p r e f e r s , t h e r e fo r e , t o le a v e the m atter la r g e ly
t o the d is c r e t io n o f the v a r io u s f e d e r a l re se rv e banks as th ey are
in a b e t t e r p o s i t i o n to determ ine the d e s i r a b i l i t y o f t h is proced u re
i n any g iv e n c a s e . I f renewal n o te s are not a cce p te d i t presum ably
would be n e ce s sa ry , in o rd er t o p r o t e c t th e in t e r e s t s o f the U nited
S t a t e s , t o p r o ce e d t o c o l l e c t m aturing item s d ir e c t from th e makers
o r in d o r s e r s . T h is procedu re would throw some a d d it io n a l work upon
the f e d e r a l re s e r v e bank and may not be d e s ir a b le under p r e se n t con
d it io n s * Pending f i n a l d eterm in a tion as t o whether a d e p o s ita r y bank
i s t o be reopened o r liq u id a t e d , I am in c lin e d t o the o p in io n th at
a l l in t e r e s t s would be b e t t e r served b y a c c e p tin g renewal n o te s upon
a t h i r t y day b a s is , as in d ic a t e d above.
vThe in t e r e s t due from th ese n o te s should be c o l l e c t e d in
a l l ca s e s and a p p lie d b y the f e d e r a l re se rv e bank as a payment a g a in st
the war lo a n d e p o s it account o f the d e p o s ita r y bank. *
A s s is ta n t S ecreta ry o f th e Treasury.
(e n c lo s u r e s )
R ep rod uced from the U ncla ssified
I D ecla ssified H o ld in g s o f the N a tional A rch ive s
DECLASSIFIED
i”
Authority VlUD3oozfc
TELEGRAM
^
i
I
(/1
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
R
215gb
E / C B I V
^TOE OF
lft_794 S a n f r a n c i s c o
A p l 11 1147am
received a t Washington,
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W ashn
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7 t h / an d y o u r s
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to
d is c o n tin u e
in
sta tu s
oregon
w h ic h
lik e
of
in
th e
fo r
con serv a tor
con serv a tor
in
to
of
s u p e r in te n d e n t
a p p o in t m e n t
in
liq u id a tio n
us a p p lic a t io n
con serv eto
c o n s is te n t
hands
of
te le g r a m
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is
sta tu s
has b e e n a p p o in te d
#17 5 8 s h o u ld
c o n s e r v a tio n
fro m
a p p ly .
it
is
la w a r e
o ffic ia l
sta te
th o se
b e c a u s e m a n a g em en t i s
or
oregon
of
th e
fo r
r e s tr ic te d
a ssets.
u n lic e n s e d
oregon
i d e n t i c a l w ith
fe e lin g
by
la w
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i d e n t i c a l w ith
d is c o u n t
its
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co n serv a tor.
an d /
fo r
su ch ban ks u n d er th e
r e c e iv e r .
e ffe c t
several
S u p e r v is o r y a u t h o r it y
o f ban ks.
has b een a p p o in te d
m em ber ban k *
w n ic n
banks
t h e s e m em ber b a n k s
We h a v e b e f o r e
sta te
to
is
d oes n o t p r o v id e
sta tu s
by S ta te
n o rm a l b a n k in g f u n c t i o n s
s im ila r
sta tu te
In a s m u c h a s
th a t
banks
is
our
to
be
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m ig h t m ake o u r p o s i t i o n
R ep rod uced from the U ncla ssified
I D e cla ssified H o ld in g s o f th e N a tional A rchives
DECLASSIFIED
Authority VJND3 0 0 2 C,
TELEGRAM
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
la_ 794
R E C E IV E D A T W A S H IN G T O N , D . C .
c le a r e r
to
m any c a s e s
m e r e ly
sta te
sta te
of
ch an ged
w h ere
th e
o ffic e r
fro m
bank t i t l e
of
r e m a in s u n c h a n g e d .
b a n k in g f u n c t i o n
d iffe r e n t
con serv a tors
is
g iv e n
p r e s id e n t
th e
ch arge
to
o ffic ia l
T h e re fo r e
id e n tic a l
are
of
crea ted
a r e s tr ic te d
c o n s e r v a to r w h ereas
of
if
it
le g a lly
a s im ila r ly
th e
sta tu s
does n ot
tr e a tm e n t m e r e ly b e c a u s e
th e
of
in
th e
of
the
title
in
bank has been
an o r e g o n
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bank
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title
th e
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upon
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4 f
not
id en tica l.
P lease
reply.
C lerk
306p
tr. a , eorauftfSO T p r i n t e d o f f i c j : ires
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
r
Authority \W> 3 0 0 2 b
APRl
01933
Hr* Albert C* Schott,
1983 Saplanade A▼•xk» t
Sea Orleane, Louisiana.
Dear 16*. Schott:
A
Tour latter of March 90 addreaaed to tha Secretary of
the Treaeory was referred to this office for rep^y. While tho fed
eral m e m
basics operate under the euperriaion of tho Federal
Beeerre Board they are owned entirely by their asnber banks and
not by the federal Qowaraasnt and tha extent to tfiidh they aay
proparly diaoount paper or aake loans within their le&d authority
is a
ittar primarily for the exercise of tha jaAgaent of tha
boardofdirectore and easeutive offioara of aaeh federal reserve
bank*
TheBoard understands that tha offioara and directors of the
Federal Beserve Bask of Atlanta and its branch at Use Orleans ara
thoroughly faailiar vith tha eituation of tha banks in Haw Orleans
and have given that eitoation dose and sympathetic attention*
Tha Board* therefore, fsala oonfidant that tha Federal Bsserve Bank
of Atlanta a i H cooperate to the fullest poaaible extent frcn tha
all of
standpoint of tha beat intereate of/its member banka in sorting
APPROVAL
a aound eolation of tho Hew Orleans situation*
____
OOMtMIETHta
MBimN®
Tory truly yours,
Ui Milier
APRl 0 1 9 3 3 b V ^
CM-w
r
Lf
pleas? *r■*;£1We copy
\ you approve zfnl relutn
S«ctsl3fv!s
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VJKD 3 oozc=>
TELEGRAM
4
FED ERA L RESERV E BOARD
W A S H IN G T O N
calkin#*- am mseisco
Tour wire April ?«
In view of fact that member banka in
bands of conservators or other State officials having similar
authority are In status similar to that of banks In hands of reoeivers or banks otherwise closed by supervisory authorities, Board
is of opinion as stated in Trans. 1751 that Federal reserve banks
are not authorised to dlsoount for or to make advancee to such banks*
Unlicensed member banks operating under Regulation 27 are still in
charge of their own directors and officers and hscie not been taken
over by supervisory authorities either for liquidation or conserva
tion of assets.
Their status is essentially different from banks
In hands of conservators and Board feels that Federal reserve banks
are not legally prohibited from extending credit to such banks
to extent authorised by Treasury Regulations.
Tou suggest that
Trans. 175® prohibits Federal reserve banks to lend to unlicensed
members In States where conservators may be appointed under the
law* but your attention Is called to fact loans are prohibited by
Trans. 175® only to those banks actually in hands of conservators
or to such conservators*
MORIILL
§0V> ieysr.
!rr« Hsmlin.L^T.
Mr.. James „
U i Millar.
m initial fiis cow
tfe.SecfstitVs Olitnitt*
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority U N D aoozfc
TREASURY DEPARTMENT
i.
WASHINGTON
Co m p t r o l l e r o f t h e C u r r e n c y
April 10, 1933
ADDRESS REPLY TO
‘ COMPTROLLER OF THE CURRENCY’
CIRCULAR LETTER NO. 1
To Conservators of National Banks:
Chapter II
Sec. 263' CORRESPONDENCE WITH COMPTROLLER. When addressing this office
each communication of a Conservator should be confined to one subject, or asset,
or claim. In handling the large volume of correspondence, both telegrams and mail,
the work can be simplified and greatly expedited by refraining from referring to
more than one subject in a single communication. The communications should contain
a complete statement of the facts in order to enable this office to pass intelli
gently upon the question or problem presented. It has been observed that a great
many of the letters submitted by conservators merely state the question, without
giving any facts as to the names of debtors or creditors as the case may be, the
amounts involved, character and value of the security or property, or other facts
which this office must have before it in order to form any conclusion as to the
propriety of granting the request, following the recommendation or otherwise
instructing the Conservator.
The subject-matter of each communication should be briefly mentioned
at the beginning of the letter at the right of the address and' just below it.
An example follows:
"Comptroller of the Currency,
Washington, D. C.
Dear Sir:
RE: Preferred Claim
A. B. Company
(or request for offset, Employment
of attorney, Payment salaries of em
ployees, etc., or whatever may be
the subject of the communication.)''
In case a letter requires immediate action or reply the Conservator should
indicate at the beginning of the caption of his letter that a reply by telegram
is necessary, using the words "TELEGRAPHIC REPLY REQUESTED",but unless it is abso
lutely necessary that a telegraphic reply be made, the Conservator should not so
indicate. All matters should, if possible, be referred to the office by letter in
sufficient time to permit replies by mail.
F. G. AWALT,
Acting Comptroller.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
~
r
DECLASSIFIED
Authority t)N D 3 o o z b
TREASURY DEPARTMENT
WASHINGTON
Co m p t r o l l e r o f t h e C u r r e n c y
May 9, 1933
ADDRESS REPLY TO
•COMPTROLLER OF THE CURRENCY"
CIRCULAR LETTER NO. CR £
To Conservators of National Banks:
Chapter II
Sec. £59. EMPLOYEES FIDELITY BONDS.
You are directed to
forward immediately to this office full information regarding the
fidelity bonds carried by you upon your employees, advising whether
or not you have examined the bonds Carried by the bank previous to
your appointment and have convinced yourself that the bonds ade* quately protect the Conservator, and whether you have had the nec
essary changes made by affixing riders extending the coverage to
you as Conservator in accordance with Chapter II, Section 259 of
Regulation I, Instructions to National Bank Conservators, bearing
date of April 4, 1933.
In Case individual bonds are being carried on your
employees you will furnish this office with a complete list of all
employees, designating the aulount of the bond and tho company issu
ing the same in each instance where bonded.
If employees are
covered by a bankers blanket bond, you will advise the amount of
the bond, the company of issue and the names of employees that it
covers.
The names of all employees not covered by a banker*s
blanket bond should be furnished in a separate list with informa
tion as to their respective duties.
If the banker's blahket bond
contains coverage other than tile fidelity of employees, the nature
and amount of such coverage should be stated.
In either case,
furnish this Office with the A&te of the expiration of each and
every bond.
J. E. FOUTS
Supervising Conservator
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
-r
Authority
TREASURY DEPARTMENT
WASHINGTON
Co m p t r o l l e r o f t h e C u r r e n c y
ADDRESS REPLY TO
“ COMPTROLLER OF THE CURRENCY"
,,
M Q .y
Q
Qrvr?
X
»00
CIRCULAR LETTER NO. CR 5
To Conservators of National Banks:
Chapter IV
Sec. 406. FEDERAL CHECK AND' SAFE DEPOSIT RENTAL TAXES.
This letter is addressed to all Conservators in order that they
may be fully advised as to the proper handling of, and accounting
for, the check and safe deposit box rental taxes provided for in
the Revenue Act of 1932, which became effective on June 21, 1932*
It should be said that the United States Government as a
matter of law is entitled to no priority of payment with respect
to any claim which it may have against a National Bank in the
hands of a Conservator, on account of the taxes herein discussed
which accrued prior to the Conservator’s appointment, except as
such claim may be entitlsd to the protection of security deposited
by the bank with the proper officer of the United States to secure
government deposits and/or collections made by the bank as an agent
of the United States.
Cases in which it would seem that the giving
of security by the bank to the United States Government would cover
collections made by the bank of either check or safe deposit box
rental taxes, should be submitted to this office in complete detail
with a copy of the appropriate contract between the bank and the
United States Government or one of its officers, as the case may •
be.
Instructions hereinafter set out are not intended to apply
to situations into which the question of security enters.
This office has not been able to find any authority for the
abatement of the Federal check tax with respect to a Conservator’s
checks on other banks or his transfers of funds in other banks on
orders other than checks.
This applies to all three of the Con
servator’s accounts with the Federal Reserve Bank, namely: the
bank’s old reserve account, Conservator’s special account for
segregated funds and Conservator’s general account, as well as to
whatever depository account or accounts the Conservator may have
opened or may hereafter open with licensed member banks#'
m
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority UU Daooafc.
-2i
The Conservator should offer no objection to the charging of 24 check
tax on all checks or transfer transactions that he may have in these
various accounts, and should submit to the collection of the tax by
the Federal Reserve Bank or his depository bank or banks in the manner
heretofore established.
(a) The Conservator should in every instance debit to all
segregated accounts on his books from month to month, the 2t check
tax in accordance with the Government’s regulations, and promptly
remit the .funds so accumulated to the Collector of Internal Revenue
for his district, in the manner previously established and v/ith the
use of such forms as may be prescribed under Government regulations.
All such tax as may not have been debited to segregated accounts prior
to the Conservator’s appointment should likewise be debited to the
respective accounts and remitted to the Collector.
(b) If the Conservator has not already done so he should
forthwith, except where paragraph (d) applies, debit to all restricted
accounts on his books such Federal check tax as had accrued and had
not been so debited at the date of his appointment. The total of
these debits should be set up as a Conservator’s credit entry in the
account of the Collector of Internal Revenue on &is books with appro
priate symbol and description. This credit will then become an
ordinary liability of the bank in favor of the Collector of Internal
Revenue. Such credit can not be paid in priority to other ordinary
liabilities of the bank, but, of course, should be included in any
ratable distribution that may be authorized.
(c) The Conservator should in conformity with existing regu
lations, and on such forms as may be prescribed therefor, report to
the Collector of Internal Revenue, with respect to all check taxes
as he may accrue on his books by debiting restricted deposit accounts •
and contra credit entry in the account of the Collector of Internal
Revenue, as provided for in paragraph (b), and he should in a separate
affidavit securely attached to the report form, certify that he has
been appointed Conservator of the bank, reciting the date of his
appointment and stating that the credit carried to the account of the
Collector of Internal Revenue is only an ordinary liability of the
bank, which must be treated in the same manner as all other such .
ordinary liabilities without immediate cash remittance other than
such ratable distribution as may be authorized.
(d) In cases where it is necessary for the Conservator to
collect the check tax on items charged to accounts overdrawn, such
collection must be made in cash and promptly remitted to the Collector
of Internal Revenue as a trusteed fund. In cases where the debit of
check tax by the Conservator to an old account will create an over
draft, such part of the tax debit as may be provided for by the
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
existing balance should be carried into the account of the Collector
of Internal Revenue. That part of the tax which, if debited, would
create an overdraft in the depositor’s account, must be collected by
the Conservator in cash and remitted to the Collector of Internal
Revenue in the manner heretofore established. If the Conservator is
unable to make such a collection in cash, he should promptly advise
the Collector of Internal Revenue of that fact, giving him the amount
due and the name and address of the depositor*
(e)
The instructions above given with regard to debits
to accounts and contra credit to the Collector, apply in all cases ex
cept where the tax due from a given depositor exceeds $50.*00. In cases
such as this the Conservator should attempt to collect the full amount
of the tax now due in cash and if successful, remit the collection to
the Collector in due course. If not successful, the Conservator should
promptly advise the Collector of Internal Revenue of the amount of un
collected tax with the name and address of the depositor, in order that
the Collector may proceed directly against the depositor.
(f)
The Conservator is obligated to collect and to remit
to the Collector of Internal Revenue the 10^ tax on all safe deposit
box rentals which have accrued since June 21, 1932, and which have not
been collected and remitted, or which may hereafter accrue. This tax
can in no instance be charged to the accounts of depositors, but must
be collected in cash. The Conservator should be careful not to permit
any safe deposit box renter to surrender the keys for his box and to
remove the contents therefrom until full payment has been made by him
for accrued rental due to the bank, as well as the full amount accrued
and unpaid with respect to the 10$ tax.
(g)
Conservators are advised that where prior to their
appointment the banks now in their charge attempted to remit to Collec
tors of Internal Revenue with either their officer’s checks or drafts
on other banks, such officers’ checks or drafts are only ordinary
liabilities of their banks and must be handled in the same manner as
all such liabilities, without any priority in favor of the United States
Yours very truly,
F. G. Await,
Acting Comptroller.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority V lU D 3Q 02t,
TREASURY DEPARTMENT
WASHINGTON
May 11, 1933
CIRCULAR LETTER NO. CR 4
MEMORAMDIJM FOR CONSERVATORS IN REGARD TO PREFERRED CLAIMS
To All Conservators of National Banks:
Conservators are not authorized to make payment of any claim
asserted to be entitled to preference, not to commit themselves to a
recognition of such claim as a preferred one, until a full statement of
the facts relative to such claim has been submitted to the Comptroller
and a specific ruling made thereon by this office. However, it is
thought that the following memorandum may be useful in enabling con
servators to properly consider such claims.
The scope of this memorandum is limited to a discussion of
claims asserted to be entitled to preference in payment over other
claims of a general nature against the assets of a national bank coming
into the hands of a conservator. There must immediately be excluded
from consideration under this class of claims the following items:
(a) Claims based upon new accounts created by segregation
of a percentage of old accounts or by new deposits of cash or
its equivalent, which are treated fully in Section 301, Instruc
tions to National Bank Conservators, April 4, 1933.
(b) Officersf checks or drafts purchased with funds from
such segregated accounts or with cash subsequent to such segre
gation of new accounts.
(c) Deposits of public funds secured by pledge of bank assets.
Claims based upon secured deposits (c) are not, by reason of
their character, entitled to preference, but in some cases it may be
to the interest of the bank that pledged assets be redeemed. Each case
of this class must be governed by specific instructions to the conserva
tor from the Comptroller, which will be given at the request of the
conservator.
Section 203 of the Bank Conservation Act of March 9, 1933,
containsNthe following provision: "During the time that such conserva
tor remains in the possession of such bank, the rights of all parties
with respect thereto shall, subject to the other provisions of this title,
be the same as if a receiver had been appointed therefor."
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority tlU D aoozfc,
-
2-
Thus by statute the rights of persons asserting preferences against
the assets in the hands of conservators are governed by the same statutory
provisions and the same judicial decisions that would apply in case the bank
were insolvent and in the hands of a receiver#
The experience of this office has been sufficient to indicate that
conservators will have increasing difficulties with so-called preferred claims
unless a clear understanding is had of the information necessary to enable
this office to advise in regard to such claims and the reasons why all the
facts surrounding the claim must be accurately obtained by conservators and
transmitted to this cffice*
In the consideration of asserted preferred claims, the conservator
should direct his inquiry to the facts as they existed at the time the bank
ceased to do an unrestricted banking business.
With the exceptions of the priorities established by U.S.R.S. 5236
(Title 12, U.S.C.A., Sec. 1134), which provides for any deficiency in redeeming
the circulating notes of a national bank and the expenses of such redemption,
and those established by Title 26, U.S*C.A., Sec, 109 (37 Stat. 733), and
Title 19, U.S^C.A., Sec, 198 (36 Stat, 965), which deal with certain certified
checks accepted by Collectors of Internal Revenue of the United States and
Collectors of Customs, for internal taxes, public dues and duties on imports,
there is no such thing, in the.technical sense, as a preferred claim against
the assets in the hands of conservators.
All persons v;ho were creditors of the bank at the time of the
appointment of the conservator must participate in the ratable distribution of
the assets provided by "The National Bank Act" unless a reorganization is ef
fected, Except for the priorities above mentioned, the only method open to
the United States or a state or its political subdivisions (where security was
not lawfully taken by the public depositor) or an individual to avoid ratable
distribution is to make affirmative proof of the three essentials of a claim
entitled to preferential treatment, namely:
(1) That tho relation between the bank and the depositor is that
of trustee and beneficiary,
(2) That the assets of the bank were augmented by the transaction.
(3) That the funds arising from the transactions are traceable into
the hands of the conservator.
All doubts are to be resolved against any asserted preferred claim
(Schuyler v, Littlefield, 232 U.S. 707). This‘well settled Federal rule is
controlling to the exclusion of all state statutes and decisions because all
questions relative to claims asserted against the assets of national banks in
the hands of conservators or receivers are governed exclusively by the rules
of law provided in the acts of Congress and the decisions of the Federal
courts in connection therewith. For discussion of the legal principles
applicable to so-called preferred claims, see Empire State Surety Company v.
Carroll County 194 Fed. 593; Beard v. Independent District, 88 Fed. 375;
Larabee Flour Mills v* First National Bank, 13 Fad. (2nd) 330, certiorari
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
-3-
denied 273 U.S. 727; Mechanics & Metals NaUonal Bank v. Buchanan, 12 Fed.
(2nd) 891, certiorari denied 273 U.S. 715; Blakey v. Brinson, 286 U.S. 254;
Cook County National Bank v. United States, 107 U.S. 445; First National Bank
v. SeIdon, 120 Fed. 212; r>avis v. Elmira Savings Bank, 161 U.S. 275; Easton
v. Iowa, 188 U.S. 220.
Preferred daims asserted against the bank must be proved to the
satisfaction of the Comptroller of the Currency or adjudicated in a court of
competent jurisdiction. U.S.R.S. 5236 (U.S*C.A. Title 12, Sec. 194). All
claims asserted against the conservator are general claims unless the claimant
can affirmatively prove all of the three essentials stated above. Conserva
tors are without authority to make any payments or to deliver any property in
respect to claims of this nature, without specific instructions from the
Comptroller of the Currency. Where a claimant seeks to avoid ratable distri
bution, the full facts necessary to enable the Comptroller to determine the
status of the claim and to issue the necessary instructions should be forwarded
by the conservator in his first letter on the subject.
To prove the first essential to a preferred claim, that of a trust
relationship, there must be a showing that the bank received an identifiable
thing in trust for the claimant. A trust relationship cannot be predicated
upon a pre-existing credit balance in the bank. Blakey v. Brinson, supra.
Accordingly, in forwarding preferred claims, the conservator should definitely
identify the property received by the bank, such as cash, securities, or
checks on other banks, which is alleged to be held in trust.
Even though a trust relationship appears, the liability is general
only, unless augmentation and tracing appear for all or part of the money or
other property received in trust* Ellerbe v. Studebaker Corp., 21 Fed. (2nd)
993:
"In ordinary cases, of course, the roceipt by the collecting bank
of a check drawn against the account of one of its depositors does not
bring anything into the bank, and cannot be said to augment in any way
assets passing into the hands of the Receiver* It is a mere shifting
of credits. Larabee Mills v. First National Bank (C.C.A. 8th) 13 Fed.
(2nd) 330; American Can Co. v. Williams (C.C.A. 2nd) 178 Fed. 429;
North Carolina Corp. Com. v. Merchants & Farmers Bank, 137 N.C. 697,
50 S.E. 308."
9
Where the property alleged to have been transferred to the bank in
trust consists of cash, it may be traceable to the cash on hand in the bank,
and the conservator in such cases should furnish, in fbrv/arding the claim, a
tabulation of the amount of coin and currency, exclusive of cash items, in the
!»ank at the close of business on the day preceding the delivery of the cash to
the bank and the total cash in the bank at the close of each day’s business
from that day on, to and including the date of the conservator’s appointment,
making a clear distinction between actual cash of all forms and cash items.
If the cash on hand at any time during this period was 3©ss than the alleged
trust fund, dissipation and a general claim to the extent of the dissipation
follows. Where the alleged trust property consists of securities, the Con
servator must ascertain and report the disposition made thereof and advise
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
-4 -
fully as to what the bank received as proceeds: whether cash, a check on the
■bank, or a check on another bank* In every case where the trust property or
its proceeds consisted of a check on another hank it is essential that the*
item be traced to the correspondent, if any, to which it was sent and that a
transcript of the correspondent bank’s account be obtained from its books beginning with the date of credit and running to the present time and forwarded
to the Comptroller in order that he can ascertain whether or not partial
dissipation occurred through a low balance thereafter or a complete dissipa
tion occurred through a subsequent overdraft* The transcript should show the
daily balances in the account during the period mentioned, and each credit,
including items involved, should be clearly identified. The conservator
should also advise as to the amount of cash or the sound value of collateral
returned to him by such correspondent, also with regard to any present debt of
his bank to such correspondent and the sound value .of any collateral still
pledged for such debt, if any*
If the alleged trust fund was created by the giving of a check on
another bank in the same town which was cleared directly with such bank,
rathep than through a local clearing house, the balance, either in favor of
or against the conservator’s bank on the date of clearing and the manner in
which such balance was paid should be reported. Care should be taken to ex
plain fully whether a favorqble balance was collected in cash or in a draft
on a third bank which was forwarded to a correspondent bank for credit. If
the latter, full particulars should be furnished as set out in the paragraph
next above. If the check was on another bank in the same town and was cleared
through a clearing house or through a Federal Reserve bank or one of its
"branches, the net balance in the clearing for or against the conservator’s
bank, on the date of clearing, is all that need be considered. Full particu
lars with regard to the settlement of this net balance should be given as
above directed. Where this methcd of clearing was followed, no attention
need be given to the respective dsbit or credit balances between the various
member banks that participated in the joint clearing.
It is possible that certain preferred claims will be presented to
the conservator predicated upon deposits with the bank prior to his appoint
ment, based upon an alleged or actual agency agreement between the bank and
its depositors which mighx have a bearing upon the subject. In order that
preferred claims of this particular nature may be intelligently considered,
if and as they arise, the conservator is requested to send to this office at
once a sample of each and every pass-book of his bank which was in use at the
date of his appointment, together with samples of all signature cards and de
posit tickets then in use.
Probably more preferred claims arise from items received by a bank
for collection and remittance than from transactions of any other nature.
When an item is sent to a bank for collection and remittance, the bank re
ceives the item as agent, and, having collected the funds, it holds them as
agent and is bound to remit seme according to instructions. .American Can Co.
v. Williams, supra. In cases of this nature, the first prerequisite exists
and the allowance* of the claim depends upon the second arJi third, prerequisites:
namely, augmentation and tracing, as hereinbefore set out. Where a bank
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
- 5 -
receives an item for collection and credit there is a distinction between its
receiving the item for collection and remittance. A copy of the collection
letter or memorandum should be submitted to this office in connection with any
preferred claim in either of these classes along with other pertinent data.
Another class of preferred claims which often arise are those based
upon unpaid officers' checks or drafts on correspondent banks for the transfer
of funds. In instances such as this, the customer merely purchases the bank's
credit and accepts an evidence of its indebtedness. As a general proposition,
regardless of vihether such officers * checks or drafts were purchased with cash
or by debit to a pre-existing credit balance, they are not entitled to prefer
ence. Unpaid officers' checks and drafts held by Collectors of Internal Rev
enue, given in remittance for Federal check taxes, are not entitled to prior
ity. All claims of this character that may be asserted against a conservator
should be promptly rejected without the formality of communicati on with this
office for specific instructions.
In developing the facts relating to preferential claims, it may be
found that the various funds are traceable into the cash on hand at the date
of the conservator's appointment. Such claims, providing all three elements
of preference can be established, would then become payable in full if the
cash on hand at the date of the conservator's appointment should be equal to
or should exceed the total of all such claims. It may be found, however, that
the total of cash coming into the hands of the conservator at the date of his
appointment was less than the total of all claims entitled to participate in a
preferred distribution. For instance, three valid preferences for $1,000.00
each, totaling $3,000.00, might be traced into the conservator's original
cash; but that cash may have amounted to only $1,500.00. If a condition such
as this should develop each preferred claim would be entitled to $500.00 of
the cash on a pro rata basis and the balance would be an ordinary claim. It
should be understood that, in capes where a partial preference can be estab
lished and traced, the claimants will be entitled to payments in cash of such
partial amounts, subject to any rights of others to pro rate, and will then
have only ordinary claims for the balance.
In the event a suit is filed in a state court to establish a pre
ferred claim, the conservator is instructed to have his attorney take the nec
essary steps for the removal of such suit to the Federal Court. Authorities
applicable to the right of removal include the following: Studebaker Corp. v.
First National Bank, 10 Fed. (2nd) 590, Title 28, U.S.C.A. Sec. 41 (1), (16),
U.S.R.S. Sec. 563 (1), (15). A copy of any complaint filed in either state or
Federal court against the conservator on a preferred claim should be promptly
forwarded to this office for information and possible suggestions. The conservator is not to refer preferred claims to his attorney unless and until
suit ia'connection therewith is filed. The legal unit of this office is
familiar with the cases on this subject, and its assistance in such matters
is available on request.
While this memorandum has been prepared with the idea of completely
covering questions of preference which will be presented to the conservators,
there probably will be cases which cannot be analyzed on the basis of the
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~
r
DECLASSIFIED
Authority V lU D & x a b
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6-
principles and instructions above laid dcwn. Unusual cases of this character
should of course be promptly reported to this office for consideration and
specific instructions.
In conclusion, it is again stated that no conservator should pay any
preferred claim or commit himself to the payment of any such claim without the
specific approval of this office*
F. G. AWALT,
Acting Comptroller.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
TREASURY DEPARTMENT
W ASHINGTON
Co m p t r o l l e r o f t h e C u r r e n c y
May 19, 1933
ADDRESS REPLY TO
"COMPTROLLER OF THE CURRENCY’
CIRCULAR LETTER NO. CR 5
To Conservators of National Banks:
Chapter II
Sec. 259. EMPLOYEES’ FIDELITY BONDS. All bonds covering
the fidelity of employees sha.ll “be kept in full force with standard
recognized indemnity companies, except where cancellations or reduc
tions may, upon proper recommendation to this office, he authorized.
Under no circumstances will personal bonds be accepted as proper
coverage. All premiums due on employees1 fidelity "bonds shall he
paid out of the Conservator's depository account. Bonds in force
before the Conservator’s appointment must have riders attached extend
ing the coverage to the Conservator, in accordance with Chapter II,
Section 259, Regulation I, Instructions to National Bank Conservators
hearing date of April 4, 1933.
If proper riders cannot be obtained, old bonds are to be
cancelled and new bonds taken out in favor of the Conservator. How
ever, old bonds are to be kept in force to the full amount of cover
age until new bonds are issued and in the hands of the Conservator.
All employees shall be bonded except those holding menial positions.
If there is any doubt as to whether or not an employee should be
bonded or as to the amount of coverage, details should be submitted
to this office with the Conservator1s recommendation, and he will be
instructed.
J. S3,* EOUTS
Supervising Conservator
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority HMD300ZC=>
TREASURY DEPARTMENT
COMPTROLLER OF THE CURRENCY
WASHINGTON, D. C.
May 12, 1933
To Conservators of National Banks:
Regulation No* 2 (Instructions to National Bank Conservators Volume 1
issued April 4th, 1933, being Regulation No. 1)
The Treasurer of the United States will continue the redemption of
circulating notes of national banks for which conservators have been appointed
which are presented to him for payment in accordance with law, charging the ex
penditures so made to the five per cent (5fo) redemption fund of the bank, and
notes in replacement of those redeemed will be issued and forwarded to the con
servator# During the period of conservatorship, there will thus be no withdraw
al of national bank notes from circulation, and such notes may be reissued by
the conservator in the same manner as any other kind of currency in the usual
course of business.
When notices are received from the Treasurer requiring payments in
reimbursement of the redemption fund, the conservator should remit therefor
through the Federal Reserve Bank of the District in which his bank is located,
such remittance to be by draft upon the conservator’s general account with the
Federal Reserve Bank.
In instances where new currency, in replacement of circulating notes
redeemed, has been received since the appointment of the conservator or was on
hand at the time of his appointment, and is now held intact in the form in which
received from this office, the conservator is authorized to place such currency
in his vaults and to employ the same in the normal course of the administration
of his conservatorship. In instances where requests for remittance to replenish
the five per cent (536) redemption fund have been received and such remittances
have not been made, the conservator should immediately remit in the manner above
indicated, although the currency may not have actually been received at the time
of such remittance. New currency for which proper remittance has been received
will be promptly issued and forwarded by this office to all conservators.
The annual assessment made by the Treasury against national banking
associations to reimburse the Treasury for the expense incurred in connection
with the redemption of circulating notes of such associations should be paid by
conservators upon receipt of notice of the amount thereof.
This regulation applies only to the issuance of notes in replacement
of those redeemed by the Treasurer of the United States prior or subsequent to
the date of the commencement of the conservatorship.
Approved:
A. A. BALLANTINE
Acting Secretary of the Treasury
J. F. T. 0 rCONNOR
Comptroller
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority tiN D a o o a t,
CR
BJ
TREASURY DEPARTMENT
WASHINGTON
Co m p t r o l l e r o f t h e C u r r e n c y
ADDRESS REPLY TO
• COMPTROLLER OF THE CURRENCY”
REGULATION III
INSTRUCTIONS TO NATIONAL BANK CONSERVATORS
May 11, 1955
Sec. 1.
REORGANIZATION EXPENSE.
Conservators will be per
mitted to pay their own necessary and reasonable expenses, Where the
"bank owns no automobile, 5 cents per mile will be allowed for use of the
Conservator^ automobile or a rented automobile. In addition they may
pay for necessary postage and printing incident to communicating with
depositors and shareholders with relation to the plan for reorganization.
Expenses incurred by former officers, directors, and other
interested parties cannot be paid by Conservators.
Attorneysf fees and expenses incurred by reorganization commit
tees must be paid by such committees out of funds raised by them. Con
servators will not be permitted to pay these items out of the funds of
their banks.
Sec. 2.
SAFE DEPOSIT BOXES.
Sec. 261, page 6 of Instructions
to National Bank Conservators, Volume 1, relating to Safe deposit boxes,
reads in part as follows:
"When any papers or property are removed or withdrawn from the
boxes, signed statements should be procured from the renters to the effect
that the contents removed, as well as the contents left in the box, if any,
constitute all of the property and the papers deposited therein. Where
any contents are removed, a signed statement and receipt should be pro
cured releasing the bank and the Conservator from all liability.”
The instructions conveyed by the portion of the Section referred
to which has above been quoted, are hereby amended as follows:
So long as they do not wish to remove all of the contents of
their safe deposit boxes, patrons of the bank may be permitted, within the
Conservator’s discretion, to have free access to their boxes in such a
manner and under such regulations as ?/ere in force before the appointment
of tha Conservator. Whatever system was established by the bank to make
sure that only authorized persons should have access to the safe deposit
boxes, should, of course, be continued.
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
T
Authority HM t>3oo2fa
Sec. 2 (continued)
Instructions to Nat *1. Bank Conservators
May 11, 1933
In the event that any patron should, desire to remove all securi
ties and other papers from his safe deposit box, he should be required
before being permitted to do so, to pay all arrears of box rent, and to
pay in addition thereto whatever safe deposit box rental tax may have
accrued and remain unpaid under provisions of the Revenue Act of 1932,
which became effective on June 21, 1932, He should also be required at
the time he removes all securities and other papers from his box, to sur
render any and all keys that he may have therefor and to execute a receipt
and a release to the Conservator and to the bank in form as follows:
"Doeville, Texas,
May
1933
"Received from Joe Doe, Conservator of the First National Bank
of Doeville. all contents of safe deposit box No._______ , heretofore
rented by me, which contents have been examined by me on this date, and
found to be full, complete and intact, I hereby certify that I am en
titled to t.'ie return and custody of said contents of said safe deposit
box; that Feld contents are not a part of the effects of the First National
Bank of Doeville. that they were not pledged or otherwise placed with the
bank in any manner that might entitle the bank to a lien thereon or an
interest therein, and in consideration of their surrender to me, I do
hereby release the said First National Bank of Doeville and the said
Conservator thereof, from all liability in connection with the said
personal effects,"
F. G. AWALT
Acting Comptroller
Approved:
W. H, WOODIN
Secretary of the Treasury
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlUD 3 0 0 2 b
APR J ,
-
,4 :
t;.,:
,
Honorable W lllla a I . Woodln,
S e c re ta ry o f th e ffreaso ry ,
W ashington, ©. Ot
0
t-'1
My d e a r Mr. S e c r e ta r y >
Reference I s made to yomr l e t t e r o f ll&rch 2 2 , JL 933/
*
oeived by th e Board on Marsh 27# In whioh you su g g est th a t Fader*
a l re s e rv e banks aooept f o r s a fe keeping fnnds In th o hands o f con
s e r v a to r s o f n a tio n a l banks ap p o in ted p n rsn an t t o th o p ro v isio n s
of fleetlo n 2 0 5 ®f th o Aot of Haroh $ . 1933*
th o I n s t m o tio n s r e c e n tly p re sc rib e d by tho Com ptroller
o f th o Carr one? fo r c o n se rv a to rs o f n a tio n a l hanks w ith yonr ap
p ro v a l p ro fld o f o r th o dopoolt o f fnnds of c o n se rv a to rs under o e rt a l n Berae and c o n d itio n s In accounts w ith F e d s ra l r e s a r v s banks*
Tho s e c tio n s o f th o ln s lr u o tlo n s w ith re g a rd to aooounta w ith Fedo r a l re s e rv e banks woro proparod by th e o fflo o of tho C o n t r o lle r
o f t h e Currency w ith th e a s s is ta n c e o f o eabers o f th e B oard’s s t a f f
and r e p r e s e n ta tiv e s of Fedafltal ro so n re banka and o o n s iS e ra tlo a o f
th a t a i n s and c o n d itio n s of tlia sa s a o tlo n s had eosnsnsed p r io r to
th o r o o a lp t of your l e t t e r ,
f h s F e d e ra l Reserve Board lass advised
th e F ed eral re s e rv e Banks t h a t i t o o n sld ers i t d e s ir a b le t h a t th ey
oooperate I n t h i s m atter by opening and M ain tain in g a o e o m ts f o r
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
H o n o ra b le U l i l lia ia H . * o o d in -
M o n n a to n
2
l a ao o o rd u tM i w i t h t h e H r * * t a d oond I t Io n s o f t h i
in s t r u c t io n * and th e re I s In e lo e e d h e re w ith f o r y o u r In fo rm a tio n
* oopy o f th e B o a rd 's l e t t e r t o th e f e d e r a l re s e rv e hank* on t h l e
e u b je o t
a co p y o f th e ln e lo e o re t h e r e w it h .
te ry t r u l y y o u rs .
E u g e n e M e ye r
G o ve rn o r.
la o lo e u re e ,
GBV/sad
^
For ATPflOMfc
G«. « e y sr..™ ~ 3
Kr.
J
Mr. James .
Mr, Miller,
A3?
li» «BC5 •**»*
A KKl 0
1933
Plesse initial liie copy
,
if you spprcve and retucB
tary*sOrnoe.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlUDSoozfc.
-t *■
F o r m 148 b
FEDERAL
RESERyE
~?0 (
BOARD
WASHINGTON
April 10, 1933
f
1
P.tt - C h l e ^ ¥j f i j /
Your
30 oopiea Coaptroller1** instructions to conservators
of national bmki forwarded tonight*
McClelland
E. M. McCLELLAr
fsf
v »
a ®5
FuILE
2— 9454
« ,
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
■*
Authority
TELEG RAM
------------------
H
l o ,
FEDERAL RESERVE SYSTEM
(LEASED W IRE SERVICE)
R E C E IV E D A T W A S H IN G T O N , D . C .
I j —784
233gb
Chicago April 10 2,55p
McClelland
Washn
Would appr#exslate your obtaining and sending us as soon as possible
30 copies comptrollers pamphlet instructions to conservators of
national hanks
pett
413p
U S GOTKRNUEOT rRINTXNG OFFICE:
16—794
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority V)MD3oozfc,
F o rm 148l>
TEL
FEDERAL FtftSERVE BOARD
W A S H IN G T O N
April 3 . 19'
Tfortfaiagton - K m w t& City
/// ^ / $ i
Xour telegram*
Instructions to conservators being sailed today<
McClelland
M . Mc
SRC/fsf
1L
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority ttM D aoozfc
TELEG RAM
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
R E C E IV E D A T W A S H IN G T O N , D . C .
lft—794
101f fa
Atlanta Ge
1247p Apr 8 _
RECEIVED
O m O E OF
OOUFSEL
g
<1933
Pla
--- ----- a,m.-2. ^
Morrill
NUMBER
y -------
---------------_
Washington
Certain banks in conservatorship are asking permission to renew
notes pled g e d as security for war loan deposit accounts and
held by us as custodian f or Treasury. U nder recently issued
instructions to conservators,
they are authorized to renew pledged
notes with consent of pledgees,
collecting interest in all cases
and remitting same to pledgees.
We do not think that we are authorised
to give such consent in respect of notes pledged for war loan
deposits and there would be no occasion f o r interest collected
on such renewals to be forwarded, nor could we give Treasury
credit for interest remitted,
except in reduction of deposits.
-
Please ascertain as soon as possible if Treasury would be willing
authorize us
Digitized forto
FRASER
http://fraser.stlouisfed.org/
v. s. cothoohw* wanna*wwci:
Federal Reserve Bank of St. Louis
to consent to renewals and also as to what disposition
10—794
nsproaucea from the Unclassified / Declassified Holdings of the National Archives
d e c la s si f ie d
Authority
TELEG RAM
FEDERAL RESERVE SYSTEM
Sheet 2
(LEASED WIRE SERVICE)
R E C E IV E D A T W A S H IN G T O N , D . C
111—794
should be made of interest If remitted
Bla ck
15 8 pm
o. 8. w n u n n r
printing omoi:
ran
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority M D 3 o o z f a
TELEG RAM
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
R E C E IV E D A T W A S H IN G T O N , D . C .
140gea
KasCity a£l .g^
18055
Morrill
Washn
B0
t e l l e r s printed instructions to conservators
25 copies of comptrollers P
U. 8. 60VHHNMKNT PRINTING OFFICII: 1933
Worthington
113p
16---794
.
C
s
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
TELEG RAM
FEDERAL RESERVE SYSTEM
4
(LEASED WIRE SERVICE)
R E C E IV E D A T W A S H IN G T O N , D . C .
160 gb
Sanfrancisco Apl 7 956am
B oa rd
"
l?ashn
Your telegram sixth number 1758 paragraph three prohibits borrowing
by unlicensed members in those states (California for instance) where
laws specifically provide for conservator but would allow borrowing
by unlicensed state bank members in states (Washington for instance)
where similar restricted performance of banking may be conducted by
officers without formality of appointing conservator.
Discrimination
!
seems to apply to form of management rather than form of banking
service.
Is this correct.
9 . S. OOTBBKMSMT PRINTING OFFICE: IMS
i
Calkins
122p
D
omoaR E6?C&EENEI&VALEnotmsEL
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
T
Authority
Federal Reserve Board,
Washington, D. C.
Gentlemen:
In connection with the licensing of banks to reopen and our
recommendation thereon to the Secretary of the Treasury,we have had a
good many problems involving state member banks and the divergent views
of the State Banking Commissioners on what constitutes necessary qualifi
cations and corrections for such opening.
As you are aware, the situation in Michigan is the major one with
which we have to deal with respect to state banks, and also the most
menacing one. As the representative of the Secretary of the Treasury
in recommending to him banks for reopening, I have been in frequent
communication with Mr. Douglas, the Assistant Secretary of the Treasury,
by telephone and otherwise, and am enclosing copy of a letter which I
have sent to him today in which I think you may be interested and on which
X should very much appreciate any reactions which you may have from the
standpoint of the Federal Reserve Board.
This situation, particularly in Michigan, is engaging very much of
our attention, and great pressure is being brought to bear upon us from all
sources by reason of the menacing situation in that state. I find it
difficult sometimes to correlate the views of the Banking Commissioner
with those of the Secretary of the Treasury and the Federal Reserve Sfystem,
including our own institution as well as the Board at Washington, and I am
very desirous of correlating, as far as possible, the activities of the
state departments in reopening banks in such a way that they will meet, in
general, the qualifications which are being imposed, and properly so, by
the Treasury, the Federal Reserve Board, and in line with what is being
done by the Comptroller in national banks.
We cannot, of course, in
will do in the future regarding
of these reopened banks, and we
commitment in that respect. On
any ease make a commitment as to what we
the status of Federal reserve membership
have steadfastly refused to make any such
the other hand we have, of course, been in
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
FEDERAL RESERVE BANK OF CH iCAGO
-
To:
Federal Reserve Board,
Washington, D. G.
2
-
April 6, 1933.
position where we are constantly having to propose to banks the basis of
reorganization on which we will be prepared to reecrajnend to the Secretary
of the Treasury that a license be issued, always with the statement that
the final authority rests with him.
Very truly y
M S FC
’ederal Reserve Agent
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority tlM DSoozfc.
April e, m s .
Hon. Jsmes H. Douglas,
Assistant Seoretary of tho Treasury,
Washington, D. C.
Deer Mr. Douglass
Referring to our conversation yesterday relative to the situation
in Michigan*
As I advised you, Mr. Relohert, tho Commissioner of Bankiag, telephoned
me yesterday morning with a modification of his plan whioh was, in offoot, that
tho proposed preferred stook to bo substituted for doposits ia banks would have
ao par vain** By this meeas ho was endeavorlag to meet our objection that tho
unacceptable assots In roorgaaisatioa must bo taken out of tho bank's structure,
and his suggestion was that thoy might bo sot up at a nominal value, and on tho
ether sldo tho proforrod stook having no par value might bo sot up at a similar
nominal value.
Ho have had a niaabor of oonforonoos horo about this wholo situation
in Michigan, and Mr. fleichert telephoned mo again this morning asking our
reaction as to his latost amostdod plan*
I told him that this smeadmeat did aot, in our opinion, ohango tho
essoaee of tho plaaj that asldo from tho proteetloa to depositors which suoh *
waiTor afforded, a publlahod statsmoat of tho bank would not bo an honest ono
from tho standpoint of tho oonmoa stoekholders, as it would not show the liability
ahoad of the oonoa stook to tho proforrod stook) that It did not mako mush
dlffereaee whether tho liability was shown mi tho basis of par or a nominal
amount, * oortala major portion of It was at loast a contingent liability on
tho part of tho oosnoa stoekholders, and that suoh a liability, even if ooatlngont,
would, la offoot, sorro as an impairment of tho oapltal stook. I question tho
praotloo of having a proforrod stook of no par value followed fcy common stook
of a stated par value.
I further stated to Mr# Reichert that we were still of the opinion
that any blanket plan to opea a large amber of banks at onoe was Impracticable t
for instance, that suoh a plan as he proposed would, In numerous oases, let out
present stockholders wtio are able to make contributions if called upon to do so.
X told him that our understanding of the plan of appointment of conservators
Reproduced from the Unclassified / Declassified Holdings of the National Archives
DECLASSIFIED
Authority
.
2 .
fo*
Hon. Jn«i H. Douglas*
Assistant Secretary of tho Treasury,
Washington, D. C.
April 6, 1955.
was that la eaoh oase tho conservator would attempt to reorganise and restore
tho hank la accordance with conditions and possibilities existing la hit own
oomnunlty •
I
stated to him that out of our praotleo and that of our own m u wh
aro working with tho Reorganisation Department of tho Vatlonal Systen, wo
woro proceeding generally upon tho following lines t
1. Is a first requisite, orory offort should ho made to obtain
additional oapital from tho stoekholdere# directors# and otou tho offioors
of tho institutions, sad othor voluntary contributors prior to tho assessment
routo whloh night follow thereafter* llo have had a considerable noasuro of
siloooss in opsniag about 50 banks ia this distrlot in tho last 2 wooks by
substantial and voluntary oapital oontributlons of this sort, even In oasos
whoro It had horotoforo boon said to bo inposslblo to obtain suoh oapital,
2. Only aftor all suoh noaas have boon exhausted, should a waiver
of a portion of doposlts bo requested fron tho depositors, and tho oonbinod
onouat of oorrootioa thus obtainod fron stookholdors and depositors should bo
suffioiont to pul tho baak la an entirely oloaa position*
S. Aftor tho establishment of suoh waiver on tho part of dopooitors
or oolnoidont with It, any aooossary subsorlptlons to tho oapital stook funds
from tho depositors should bo paid by the* out of tho doposlts available In tho
rooponod banki this provision to noaa that tho oapital structure would bo la
good assots rather than against undesirable assets as proposed in his plan*
4. X suggested further a warning against the issuanee of too nueh
preferred stook whloh night be a bar to an eventual reorganisation of the bank
or consolidation or merger*
5. The condition of the bank to bo rooponod under those provisions
should not only present a oloaa ploture as to the value of its assets, but also
a satisfactory liquidity and assets of a type available for borrowing purposes
in ease of extraordinary demand.
6. That banks whloh were ismtedlately opened after the noratorlun
aro supposed to have retained the eonfidenee of the oousnxnities) that banks
opining at this late date and with the knowledge of the publio that substantial
oorrootlons had b o m necessary In order to so open must regain the eonfidenee
of their ooflnualtles* This would involve, among other things, the question of
the memagweirt whloh had allowed the bank to get in suoh condition, while perhaps in
competitor banks the bank’s nanagsmeat had been suoh that its affairs allowed It
to open at once.
We are emphasising particularly at this late date that banks whloh
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
- 3 Ion, <****• *• BougXaa#
Saaratary of th# Traasury#
£shlagt4a» B* C.
April 6, 1993.
opaa now must (i?» us reasonable assurance that they oan oontinue as going
institutions with tha aoafldeaaa of tha ooassunity* a» wa do not oonceiva
that wa should allow hanks to opaa whioh probably
result la withdrawals
amouuting to liquidations neither do wa oonoeive that wa in tha Federal reserve
banks should ba aallad upon to s*ka loans to suah banka whiah were praatlaally
for liquidating purposes • It la apparent that unlaas tha opanlng haiikr is sat
up la assets aad aaaageaaat in a manner to lasura full oonfidense of tha
aosnoitjri thara might ha steady withdrawals frm suah bank to ha deposited
la tha eospatltor bank whlah opened originally without erltieian.
X as giving you our idaas sosiaahat at length baaausa of your expressed
interest• Xa tha praaaat situation thara ara aaw elaaaats aad new fomulaa
of solransy lavolvlag tha Treasury Department, tha Federal Reserve Board,
tha CoapfcroXlar# aad tha various stata authorities* It eeaas daalrabla that
sona sat of principles way ha adoptad whlah wiXl ha aoaaptahXa to thaaa various
bodies, aad oaa of our *oat sarlous problens Is to adjust stata haak raorgaalsa~
tions aa relatively tha sane prlaalpXaa whlah tha Comptroller nay ha uslag la
tha reorgaaisatioa of aatianaX baaka. As far aa X know, ao dafinlta lastruatloas
as to fuadaaaataX prlaalpXaa af reorganlfatloa have ansastad fra* his offisa,
hut X thlak tha prlaalpXaa whlah X have outXiaad ara balag pratty gaaaraXXy
followed la national haak reorgaalsatioae la this distriet, sosia elasticity
having to ha glvaa la Individual aasas.
X should Xika vary naah to hava your views on our aoaaaptloaa of
thaaa aattars aad whether wa ara at wariaaaa with what you aad tha Goaptroller
ara trying to do# la order that wa aay faal that wa ara guiding aot oaXy tha
atata aanbar banks, hut tha Baaking Coaslasloners la thalr treatment of nonaaabar baaka aXoag proper lines. X should aXao vary mush appraalata aay
suggestions whioh you aay hava frost tha staadpolat of your position aa a
licensing authority*
Vary truXy yours#
IMS PC
Fadaral laaarva Agent
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority HUD 3 0 0 2 k
'■•V
RAM
FEDERAL RESERVE B O A R D
H
WASHINGTON
A p r il 6. W 3
/
Harrison - Hew York
Morris
- i>hilad©lphia
Fancher - Cleveland
Ssfigr \
* Kichiaond
Blask
- Atlanta
lo w s
- Boston^
Tran^l / 7 S Y
Boafd lias rsplied as follows
MoDougal
Martin
Geery
Hamilton
Mo&inney
Calkins
*
-
Chicago
St» U>uis
Minneapolis
Kansas City
Dallas
■.ft*
to inqulri s received from a
Federal reserve hank with regard to a Stats member bank in the hands
^ f a conservator* (1) 'lore fast that conservator or other Stat© official
having similar authority has been appointed for Btate member hank pursu
ant to executive order of March 18 does not make it necessary that
hank surrender its stock in Federal reserve hank unless and ugtll hank
should toe placed in receivership or liquidation or its membership ter
minated in manner provided hy Federal Reserve Act. (2)
Balanss with
Federal reserve hank to oredit of bank in hands of oonssrvator or
Stats offioial having similar authority may he withdrawn subject to tha
provisions of the Federal %ssrvs Act and the Board*s R gal&tion 13* hat
it is assumed that Federal reserve hank will not permit withdrawal
I. -
_
^
« U
.»~d «. M
W _ »
of any indebtedness of bank to Federal reserve hank. (5)
U
..™.
Federal reserve
hanks are not authorised to disoomit for or to make advances ^Thanks
in hands of conservators or to such conservators,
guest ions raised had
specific reference only to State member hank in hands of conservator
hat conclusions stated are applicable also to national hanks in hands
of conservators and to such conservators*
In connection with conclusion
4■',;V
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlUD 3oozb
«m
l* 8 b
TELEGRAM
FEDERAL RESERVE BOARD
WASHINGTON
A ll Governors
-
-2 -
80. a abova9 mi appliad to nations* banks* attention is oallad to emotion
402 of instructions of Comptroller of Curraney to conservators of national
banksBGard Has also a.&tad in reply to an inquiry of a Fadaral reserve
bank that quastion wfcatlier Fadaral reserve bank should axtand
oredlt to. unlloanaad Stata member bank wftioh is operating undar Treasury
regulation Ho. 27 is one for t&e determination of Fadaral reserve bank
in the light of all the oiroumstanees of the easaf and in this connection
the Board called attention to interpretation $0 . 12 defimii%* tha
extent of bunking functions waioh unlicensed Jtate member basics may oarry on
in operating undar Regulation 27 ®«d alio to telegram from iaoretary of
Treasury of Maroh 22 ra duties of Federal reserve banks in this connection.
?40RfULfc
Reproduced from the Unclassified I Declassified Holdings of the National Archives
~
-
TREASURY DEPARTMENT
O F F IC E O F T H E U N D E R S E C R E T A R Y
To ................ ........
■ ^o
■
S en io r Legal A ssistan t to th e U n d er S ecretary.
DECLASSIFIED
Authority VlND3oozfa
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlUDSOOZta
/3DEBAL HUSfSOTS 3T3TSM - LS/IS8D M B S
April 6, 1933
imr.T.
ATUM A
Ratal April fourth
STOP
Consldar issua by Foataaatar of monay prdara payabla
1ft foreign countries to aaat bona fida aataring obligation of remitter or to
defray foneral espenaas of parent of remitter liTin# ia foreign country per
missible radar existing regulations and Sxecutive Order of March tenth*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
TELEGRAM
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
R E C E IV E D A T W A S H IN G T O N , D . C .
RECEIVED
OFFTOE nr '
E49p April 6
APH 6
Morrill
' *'
1933_
k,m.
MUMIfiR
Washn
On the fourth instant we wired Ballantine assistant secretary as
follows.
* Do present regulations prohibit issue by Postmasters of
money order® payable in foreign countries to meet maturing
obligations of remitter or defray funeral expenses of
parents of remitter in a foreign country1*.
Hare not had reply, can you obtain this information for us#
http://fraser.stlouisfed.org/
V. 8. SOVBBNMEKT PUKTBre OFFICE: 1933
Federal Reserve Bank of St. Louis
Bell
358pm
16—.704
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
far approval
SOVi WByftFjo
Mr.
TELEGRAM
Mr. James.
FEDERAL RESERVE B O A R D
WASHINGTON
APR
\
era*me tars#
‘^fcpMlgPI'*tvampjlumwh»w»ut*
j
Mr. inin—
Totr letter Sterol* 2 2 , jre 53-4* Qalstion 1. See treasury H e g u l a ^ ^ ^ i ^ w
issued starch 28. Question 2. Mere fact that conservator or o t h ^ W t 1
veincl
ha*la$ similar authority has been appointed for State member bank pursuant to
executive order of «arch 18 does not make it neoeesary that hank surrender its
etoefc In federal reserve hank unless and until bank should be placed in re
ceivership or llfuidation or its membership terminated in maimer provided by
federal Reserve Act. Question 3 . Balance with Federal reserve bank to eredit of
bahk in hands of conservator or State official having similar authority may be
withdrawn subject to the provisions of the federal Beeerve Aot and the Board* s
Regulation D, but it is assumed that federal reserve bank will not permit with
drawal in an amount which will exceed the attsunt of suoh balance in exoess of
any indebtedness of bank to Federal reserve bank* question I* Federal reserve
talks are not authorised to discount for or to sake advances to banks in hands
of conservators or to each conservators, question 5* See Treasury Regulation
80* 30. enaction 7 . Limit on withdrawals prescribed by Regulation 2? is five
per cent. Interpretation no* 12 defines extent of banking functions which un
licensed state member bank may carry on in operating under Regulation 80. 27*
See also telegram from Secretary of Treasury of Waroh 22 re duties of federal
reserve banks in this oonneotion. Question whether federal reserve bank shoild
extend credit to unlicensed State member bank shleti is operating under Begu~
lation So. 27 is one for determination of federal reserve bank in the light of
all the circumstances of the case. Question 4 and Question 8 answered In
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority U K D aoozfe,
Si
C O P Y
TELEGRAM.
Federal Ressr've Board
Washington
\.Anr*
April 4, 1933.
JOHNS - ATLANTA.
lour letter March 29 regarding proposed rsnevval^jaf_
to First National Bank of Fort Myers, Florida.
Action by Fed
eral Reserve Board not required ypon advances made inia?qpfd^nce
-'With section 10(b) of Federal Reserve Act as amended by Act of
March 9, 1933.
See our Trans, l6ll.
In view ..of
status of bank
... -rr~ ..■immmnwnwn
in hands of conservator and pending determination of question
whether it will be liquidated or reorganized
unrestricted basis, the question naturally arises whether obli
gations of the bank should be reve wed or should be carried past
due. This matter was discussed at conference here on March 27
and 28, which your counsel, Mr. Parker, attended, and it is sug
gested that you consult with him with reference to this matter.
MORRILL
GBV sad
__ ______ APPP__ __
AT EXECUTIVE COMMITTEE
MEETING
APE 4 1933.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
i
F orm M sb
TELEGRAM
A
FEDERAL RESERV E BOARD
WASHINGTON
APR
T0Un**B<>et0n
MoDougal-
Harrleon-Bew fork
M&rtia-St. Louia
Sorria-Pblladalpbia
Oaary-Miimaapolia
flaa©liar~01aTaland
Hamilton-Kaoeaa City
Saay-Biohm ond
KaKlaaay-Dailaa
Blaak-Atlaata
Calklna-San PTaaalaoo
Trana. So.
M W *
/
JoA
Stafarriaf Board*a lattar of April 1
lnatraatlona to oonaarvatora of aatisaal toax&s hava
baaa approval toy Ooaptrollar of Otsrraxiay and Saoratary of
fraaaary aad it ia andaratood tfcat Ooaptrollar*a offlaa will
mix
you ooaplata ooplaa of laatruotlftaa aa approvad aa aoon
aa tHay ©an ba printad. laatruationa aa approvad oontala aao~
tlona ralatin? to Bank'a Old Raaarva Aaooa&t, Conaanratara*
Spaalal Aooonitt, Conaanratora» Oanaral Aaooaat, Conaarvatora*
Dapoaltary Aaaoant aad Aaaiataata to Ooaaarvatora in tba fora
la whioh tfeoaa aaotlo&a vara lnoloat d witfc Board1a lattar of
April lat»
1 $$$$*
M orrill
V*
:"f
1'
Ap;1 * *'
OBV/ofno
r
«./
IM
*r
i 1\%'<*<
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
L±
April 3, 1933
Chicago, 111.
St. Louie, Mo,
Minneapolis, Minn.
Kansas City, Mo.
Dallas, Tax.
San Francisco, Calif*
Boston, Mass.
New York, N. Y*
Philadelphia, Pa.
Cleveland, Ohio.
Biob&ond, Va.
Atlanta, Ga.
Menfcer baiiks which have been granted Federal licenses to
reopen are not permitted to take advantage of any State Stabilization
Act providing for limitation of withdrawals or otherwise to operate
on restricted basis
STOP
You are authorized and directed to advise
any member bank which has been granted a license to reopen that
unless it reopens to the full extent permitted by such license it will
be necessary for me to revoke its license
STOP
If it fails to reopen
to the full extent permitted by its license after being thus advised
by you, you are authorized and directed to revoke the license heretofore
granted to it
STOP
Regulation thirty covers cases where conservators
or other appropriate officials have taken possession and control of
bahk.
WOODIN
{Initialed}
A. A. B.
J. H. D.
EMERGENCY BANKING ACT
Private tin*
JTCifht
Reproduced from the Unclassified / Declassified Holdings of the National Archives
dec la s si f ie d
*
-l4
Authority
JSBwnnkWOBl *** WWw JKMfK
m m rim * Fliliadoiphl*
B m rim * * Q l» w *X m &
B l M k * Atlanta
HMDaoozt.
lu rU ft - 0t* M i
thufity <* ,54lKfisn|wJki®
H e l t o n • Stoat*** City
fifclft<MM*y «»
OftDtitt* »
/rmoclaoo
over commercial wires
It In **«®*#to*l that pipM^t of M I X # for to&eftron* **at/lsjr
SlUttl
ipowm
hhi *aak6 an repre*«r.tat1*o* of aoorwtory of f r m m r y In
***MOOtt*fli O&ttl TOOOWt tMnflt&SX OMMFjgafeOy INI $ OfOr|MM*Mlll$$ Jloototofe l(jf
___ .._..,.. . -■■: ■„... ' -".'~S'''V
■•'■'
•■’■•
'
•
TwNBinuy XJojMfcrtiaoftt a* to *h®tb#r, nsnt to what axtaafc, i t w ill Y*l»totr*o
V
ilia
hi
wTPwwdt
fa* fiot* ont*<of«»iiookat
iHBtimd
VH
y w iP (*w ^ asoaii»o*
WPW*s^'*rHP #fWwlMi
•»
OFWPBIUWiWP
|M9
>
ab
^OhW
FWP
«lth «9«ei«l aonrie#* rwa«j*f*d for frm m ry 8*m rtm at $ tiring ora#;re«®«y*
Ha£l*llasi&»
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
7V
3
P» 5
'5
H ip:
T o w c * lottos
H*rriapn -
Wtm
IMwi|r • Bidunsd
Blrnfc * ADMk
Tom
fcorrit - M k d i l p M *
funobcr • OliH&Aiid
J
iL L mZ 2
Vmpmw
KftBongftl - Ctiloftfo
m m t • ii* M i
Ckwry - vinn**ioIl*
i M l l l o f t - K am m 01 %9
U d L iw m y • SiiUt
O tlklfti • iiM ri»M lifl9
h*ld outer dismal Dmt* awtef tele whidhh*» sot teta
U a n n l to op«i l«r t N nl ai y of TrwuKury, iioulA !• o » m « d m « | d l t m o U d
M i l s oft telMMi lhMl, for* Jllt
pmm** of
ll^uldatlM, «fa»a
and until «&<£* teak has b « « pl*o»4 la
pa|*r should, *« la tba p*ftt t» laolud** la
*&alaa »Q00mai ataw* VwiiE,* of font 3fc.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlMDaoozCp
April 3, 1933,
b i l l - aoiten
Batrrltt* - Sa« fork
im y -
0*ofjr - tttnaoopoli*
Hladte * *%iont*
Kerri • * Fhllftdolphla
ftmdhor - ;lowland
U & to x & l m Ohlcfi«o
Martin - it. Uroio
f'aniltof* * Xiimmmi Citjr
SieKiimey - Sfclloo
tKAiiS
I/ ^ 7
. ri**Mi w i n BowMi *• of MMfe 3**
for m m h *r fciako m% Ueo»«o4 lo eptft
) a lk l n « *
lass
fii»al«i»
Of j»ap«r hoi* uador
W am m Uaf of f f m m t y ba%
*r
w
hiA fe*«onot iM
M
tt plm w& i* proooooof Hiotdotloai, as fbllooot lodioom
ifttod
•UdlU ?«*»ort ooio Mitef *
<
tv<
a
ito
o
ovuuUr **«%ioa 13, o
e
»d
o¥*i% ostdadtonooo
«*£•* M a U m I M * «odotM m * P b m m vivo *1*®«m«i»r of «&*i teaki lodobtod
to rooef*o teako« isovoii 31*
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
Federal Eeserre Sfcrataa - Leased fir#
April X# 1933
Dunlap
Minneapolis
Bets! ite^Jwsnlgr el^tSijSEGP Treasury advises tmlieensed
member teak cannot issue drafts la payment «f
Iftmd ebarfss
Initialed by:
JfC-hKb
(m e
DWB
JGH
JHD
CM
JTC
firm psar w i t
redaction
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
f~
Authority M W )3 0 0 2 b
(COPT)
M«nnpoli« liar 28 436 p
Board «•» lh>Jt’
%t
PIease advise i f unlicensed banks can issu e draft* in payment
of fiv e per cent r e d i t i o n fund charge a. national Bank redonation agsooy apparently requesting payment ftrom them.
Draft# not being paid by correspondent basics.
Dunlop
610 p
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
FEDERAL RESERVE BOARD
WASHINGTON
ADDRESS OFFICIAL. CORRESPONDENCE TO
THE FEDERAL. RESERVE BOARD
X-7598
April 1, 1933.
SUBJECT:
Regulations of Comptroller of the Currency re
Conservators,
$ 0 ®
Dear Sir:
The Comptroller of the Currency has prepared instructions to
be issued to conservators of national banks appointed pursuant to
the provisions of the National Bank Conservation Act (Title II of the
Act of March 9, 1953), and there are inclosed herewith copies of the
“
I
y * ■/<•
sections relating to Bank’s Old Reserve Account, ConservatorTs
/. ;
Special .Accountr Conservator's General Account, Conservator’s Deposit
ary Account, and Assistants to Conservators,
These sections were pre
pared by the Comptroller's office with the assistance of members of
the Board's staff and the following representatives of Federal reserve
banks:
Mr. John S. Sinclair, Counsel to the Federal Reserve
Bank of Philadelphia
Mr. H. F. Strater,
Cashier of the Federal Reserve
Bcnk of Cleveland
Mr, J.S.Walden, Jr.,
Controller of the Federal Reserve
Bank of Richmond
Mr. Robert S. Parker, Counsel to the Federal Reserve
Bank of Atlanta
Mr. Charles B.Dunn,
of Counsel to the Federal Reserve
Bank of Chicago.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority V lU D Soozb
■s'
X-7398
- 2 -
The sections of the instructions inclosed herewith have
been approved by the Comptroller of the Currency; but it is neces
sary that the instructions be approved both by the Comptroller of
the Currency and by the Secretary of the Treasury,
out of the city and will not return until Monday.
The latter is
We will advise
you promptly by wire as soon as the complete instructions have been
" finally approved: and the Comptroller of the Currency will furnish
““Trrimi, m
u
_ _
^you with complete copies of these instructions and request you to
handle accounts for conservators of national banks in accordance
with the terms and conditions thereof.
The Board considers it desirable that the Federal reserve
banks cooperate in this matter by opening and maintaining accounts
for conservators in accordance with the terms and conditions of the
sections inclosed herewith.
Very truly yours,
Chester Morrill,
Secretary,
Inclosure
TO GOVERNORS OF ALL FEDERAL RESERVE BAMS.
-
unclassified / Declassified Holdings of the N a t i o ^ h ^ T
DECLASSIFIED
Authority DMD30026,
(Circular letter to Governors of all Itoderal Bf»*erve Banka)
SUBJ2CT:
Regulations of Comptroller of the
Currency re Conservators*
Saar Sir:
Tha Coaptaoller of tha Currency haa prepared Instructions to
be Issued to conservatora of oat tonal banks appointed pursuant to
tha provis&ons of the XatlonaX Bank Conservation Act (Title II of
the let of March 9, 1933)* and there are inclosed herewith copies
of the sections relating to Bank*a Old Reserve Account, Conser
vator's Special Account, Conservator*s General Account, Conee*vator’s Dsposltary Account, and Assistants to Conservators*
These sections were prepared by the Comptroller9s office with the
assistance of Members of the Board's staff and the following repre
sentatives of federal reserve bankas
Mr. John S. Sinclair, Counsel to the federal Reserve
Bank of Philadelphia
Mr. 9. 7. Strater,
Mr. J.3. Walden,
Cashier of the federal Bewrve
Bank of Cleveland
Jr,9 Controller
of the Tsderal fteeerv*
Bank of Richmond
Mr. Robert 3. Parker, Counsel to the fsderal Reserve
Bank of Atlanta
Mr. Charles B. Sana,of Counsel to the fsderal Reserve
Bank of Chicago.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority NMD 3 o o z fe
Circular lottor to Oovoraora ©f all Baaka - 2
fko aoctioaa of tho in*tructions iaoloood horowith havo
boon approvod Igr tho Goaptrollor of tho Currancy; bat It It aacao*
w y
that tho laatraotlona bo appro rod both by tho Coaptroller of
tho Omrroaoy aad tgr tho Saoratary of tho Troaaury*
fho Xattor io
out of tho city aad will aot rotura until Monday.
to will advlao
you promptly
ty wlro
ao oooa aa tho oomploto iaatruotiona haro booa
finally approvods aad tho Gotvptxollor of tho Corroaoy will furaiah
, you with oonpXoto ooploa of thoaa instructions aad roqpaat you to
haadla accounts for oonsarvators of aatloaaX banks ia aooordaaoo
with tho t«ma aad ooadltioaa thoroof*
fho Board ooaaidora It daatrabXo that tho Hadoral roaorro
baaka eooporato ia thio awttor by opoaii^ aad nalatalalim aooouata
for ooaaorvatora la aooordaaoo with tho toraa aad ooadltioaa of tho
aootloaa iacloasd harovith.
fory truly yours,
Ohoatar IKorrllXi
Soorotary.
Indosur#
G B V /sad
APR
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
r
Authority V lH P a c o z t,
.
/
V
V
(X - 7396
CERTAIN SECTIONS OF INSTRUCTIONS OF THE COMPTROLLER OF THE CURRENCY TO
CONSERVATORS OF NATIONAL BANKS*
402 Bank's Old Reserve Account.
-
The conservator should make no remittances or transfers
for credit to bank’s old reserve account and should draw no drafts
whatever against such old account. The Federal reserve bank may be
requested to make transfers to the conservator’s special account, de-scribed below, of funds which have been credited to the bank’s old
reserve account but which the conservator has definitely determined
to represent segregated deposits and which should have been credited
to a special account in the Federal reserve bank.
Where the bank
in the hands of a conservator is not indebted to the- Federal re
serve bank or where the old reserve balance exceeds the amount of
the indebtedness to the Federal reserve bank, the Federal
reserve
N
bank may be requested to make transfers of -such excess amount to the
conservator’s general account, described belpw, with the authoriza*
tion of the Comptroller of the Currency.
These transfers to the conservator’s special account
or general account may not be made by drafts or checks drawn by
the conservator, but must be made with the consent of the Federal
reserve bank under special arrangements agreed to by it»
FDWfloQMinapnra
DECLASSIFIED
Authority tlH P ao c g fe
eyrrswP7vT>yw-
«• 2 **•
X-7396
403
Conservator’s Special Account,
If the conservator has been authorised to accept new deposits
which are not subject to any limitation as to payment or withdrawal,
to be segregated as provided in section 206 of the Bank Conservation
Act, the 'funds received pursuant to such authority nay be deposited
in the Federal reserve bank of the district in which such bank is
^ located in a special account in the name of the conservator which
account may be styled substantially as follows:
H ____ ________________________ Conservator's Special Account
(Bank and address)
•
(Conservator)
”
The conservator may deposit with the Federal reserve bank
in this account cash, Government checks, checks and other cash items
which the Federal reserve bank can collect at par.
The Federal reserve bank may receive and handle all cash
items deposited in this account subject to the terms and conditions
of Regulation J of the Federal Reserve Board and of such bankys
current circular regarding the collection of cash items..
The Federal reserve bank will not be expected to give
credit for such checks and other cash items in accordance with
its published time schedules which are#used in giving credit to
member banks, Jbut may increase the time of credit availability
in such time schedules by a number of days estimated to be suffi-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
X-7596
- 3cient to obtain mail advice of non-paynent of such items.
The
conservator, however, should bear in mind that all such items
are received by the Federal reserve bunk subject to final pay
ment and that withdrawals of deposits represented by such checks
and other cash items should not be permitted by the conservator
until sufficient tioe has elapsed to permit of the collection of
.'Such items in accordance with the foregoing provisions.
The con
servator may be held accountable for any loss resulting from the
payment of such deposits in violation of these instructions.
The conservator may accept maturing notes, drafts, Govern
ment obligations and other non-cash items for collection and fox
credit when collected to the special segregated accounts of deposit
ors,
The Federal reserve bank may receive
and handle such non-cash
items for collection and credit on its books to the conservator’s
special account, in accordance with its non-cash collection cir
cular*
The conservator will be advised of sueh credit in each
instance and should not permit any withdrawals of deposits repre
sented by such non-cash items until he has received
such advice*
All deposits by the conservator in the conservator’s
special account at the Federal reserve bank and all non-cash items
sent to the Jederal reserve bank for collection and credit of the
conservator’s special account should be marked so as to indicate
clearly to the Federal reserve bank that such items are for the
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
X-7396
- 4 credit of such special accounts*
All items sent to the Federal reserve hank by the conser
vator for credit to this account, whether cash items or non-cash
items, should he indorsed,. "Pay to the Order of the Federal Reserve
Bank of^___ ____________ for credit to Conservator’s special account
(Bank and address)
B y _____________________ __________
(Conservator)
All prior indorsements guaranteed.”
The conservator may draw drafts against this special account
at the Federal reserve hank (a) in payment of chocks or drafts drawn
by depositors against such special segregated deposits when presented
to him by other banking institutions; (b) in order to provide himself
with cash with which to pay such deposits;.
or (c) to provide de
positors in such segregated accounts with drafts for exchange purposes.
All drafts against such account should be signed by the con
servator and otherwise identified in such manner as to show clear
ly the account to which they should be charged.
If the bank Vtrhich is' in conservatorship accepted new de
posits withdrawable without restriction pursuant to agreement or
under State legislation, gubernatorial proclamation or Presidential
proclamation and opened and maintained a special account with the
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority y)MD S f lo z k
- 5 -
X-7396
Federal reserve "bank, representing such new deposits, the Federal
reserve hank should be requested to transfer the balance now carried
in such special account to the Conservators Special Account at the
Federal reserve bank.
404.
Conservators General Account.
Funds received by the conservator in connection with M s
conservatorship from any source other than from special segregated
"deposits referred to above may be deposited in the Federal reserve bank
of the district in which such bank is located in a general account in the
name of the conservator which account may be styled substantially as
follows:
11
Conservator’s General Account
(Bank and address)
(Conservator)
,f
Any collections made by the conservator upon the unpledged
assets of the bank while in conservatorship may be deposited in this
general account.
The conservator may deposit with the Federal reserve bank in
this account cash, Government checks, checks and other cash items
which the Federal reserve bank can collect at par.
The Federal reserve bank may receive and handle all cash
items deposited in this account subject to the terms and conditions of
Regulation J of the Federal Reserve Board and of such bank’s current
circular regarding the collection of cash items.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
- 6-
3002b
X-7396
The Federal reserve "bank will not be expected to give credit
for such checks and other cash items in accordance with its published
time schedules which are used in giving credit to member banks, but
may increase the time of credit availability in such time schedules
by a number of days estimated to be sufficient to obtain mail advice of non-payment of such items*
The conservator, however, should
„ bear in mind that all such items are received by the Federal reserve
bank subject to final payment.
The conservator may deposit in such general account maturing
notes, drafts, Government obligations and other non-cash items for
collection and for credit when collected.
The Federal reserve bank
may receive and handle such non-cash items for collection and credit
on its books to the conservator*s general account, in accordance
with its non-cash collection circular, and the conservator will be
advised of such credit in each instance.
All deposits by the conservator in the Conservator*s Gen
eral Account at the Federal reserve bank and all non-cash items sent
to the Federal reserve bank for collection and credit of the Con
servator* s General Account should be marked so as to indicate clear
ly to the Federal reserve bank that such items are for the credit
of such general account.
All items sent to the FSderal reserve bank by the conser
vator for credit to this account,
7/he ther
cash items or non-cash items,
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority V)UD3 0 0 2 6 ,
- 7 -
X-7396
should be indorsed, ,fPay to the Order of the Federal Reserve Bank
of _______________ for credit to Conservator1s General Account
(Bank and address)
By __ __________________
(Conservator)
All prior indorsements guaranteed,n
The conservator may withdraw funds from this general account
only when and as authorized by the Comptroller of the Currency.
All drafts against such account should be signed by the con
servator and otherwise identified in such manner as to show clearly
the account to which they should be charged.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority YlUD3oQ2fe,
- 8—
405.
X—7396
Conservator’s De-positary Account..
In addition to a Special Account and General Account maintained
with the Federal reserve bank, the conservator may open an account with a
national or State member bank, licensed to reopen by the Secretary of the
Treasury, which account is referred to herein as the ''Conservator’s De
positary Account,”
This account may be utilized for the following purposes:
(a) As an account in which to maintain funds for current operating
purposes, including salaries, supplies, and other items of expense..
(b) For the collection, for the account and at the instance of deposit
ors,. of checks and other cash items drawn on nonpar banks which will
not be accepted by the Federal reserve bank as well as any noncash items which the Federal reserve bank will not handle... Such
collections will be undertaken by the depositary at the instance
of the conservator, but for the account and as agent of the owners
or holders of such items. When and as the conservator may receive
actual payment of such items, the proceeds may,, with the
acquiescence or upon the direction of the depositors, be placed in
special segregated accounts to the credit of the depositors and
then transferred to the conservator’s special account with the
Federal reserve bank.
(c) For deposit therein of collections effected by the conservator
from assets of the bank and for the deposit of cash and of checks
or other items belonging to the bank.
(d) For collection, at the instance and for the account of others,
of checks or other items, whether cash or noncash, left or placed
with the conservator for that purpose.
The conservator shall make transfers from time to time from the
depositary account to the conservator’s general account with the Federal re
serve bank described on page ____ t o f these instructions, of such excess of
collected funds as will not be needed in this account for current operating
purposes.
Withdrawals from this account may be made by the conservator for
any purpose authorized herein.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlKDaoozfe
X-7396
Chapter Y
ASSISTANTS TO CONSERVATORS.
The Conservator may appoint a competent person or persons
to serve as his assistant or assistants.
An assistant to a con
servator shall halve the right to sign in the name and on "behalf
of the conservator checks drawn on any account mentioned herein,
^to the extent and under the circumstances herein authorized, as
well as to perform such other purely ministerial duties and
functions of a routine nature and not involving the exercise of
discretion, as the conservator may from time to time delegate
and authorize.
The name »f any such assistant shall upon appointment
be promptly certified to the Comptroller of the Currency and to
the Federal reserve bank and the conservator*s depositary bank.
When notifying the Federal reserve bank and depositary bank of
the appointment of any such assistant, the conservator shall
furnish them respectively with a specimen signature of such
assistant.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
X-73&6
CERTAIN SECTIONS OF INSTRUCTIONS OF iBE COMPTROLLER OF THE CURRENCY TO
CONSERVATORS OF NATIONAL BANKS.
356 Renewal of Bills Receivable
Conservators are authorized, when, in their discretion, they
may deem it advisable, to rener or extend maturing paper held unpledged
by the banks in their charge fcr not exceeding thirty days from and
after maturity.
In cases of s >eh renewal or extension, care should
be exercised to see that no pa ties liable thereon are discharged.
Makers and indorsers should sj^n and indorse the renewal notes and tho
same should otherwise be of tbs tenor of the original obligations except as to dates and maturit ie
and extensions (a)
and (b)
and except also in the case,of renewals
that princ ,pal of such obligations may be reduced
that additional collateral or security may be obtained.
No renewal or extension can be granted without the payment
of interest due on the renewed lor extended obligation and/or prepaid
upon a discount basis on such Ibligation; but no collateral is to be
released except with the consett of this office.
Notes or other evidepces of debt pledged for the payment of
the bankrs obligations may, wJen sent to conservators in trust for
the purpose, be renewed or extended upon such terms and under such con
ditions as are hereinbefore set out in respect of unpledged notes and
upon such further terms and clbnditions not inconsistent herewith as
may be agreed upon by the pladgee.
Before renewing or extending any
such pledge note, conservators must secure the written consent of the
pledgee to such renewal or extension, unless such consent is given at
the time the notes are forwamed to conservators for the purpose of re-
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority V)UD3oozfa
X-7396
newal or extension ip. whole or iii part or for collection,
Conservai/ors are authorized and empowered to forv/ard renewal
notes and extended notes to the pledgees entitled thereto, and the in
dorsement by the c Dnservator of such notes made in the name and on be
half of the pledgJr bank shall bind the latter and its assets to the
same extent as, abt to no greater extent than, the pledgor bank was
bound on and by The original obligation.
Payments made on account of
principal and/o/ interest on pledged paper should be forwarded to the
pledgees entitljsd thereto^
40S Bank's Old Reserve Account^
The conservator should make no remittances or transfers
for credit to bank’s old reserve account and should draw no drafts
whatever against such old account. The Federal reserve bank may be
requested to make transfers to the conservator’s special account, de
scribed below, of funds which have been credited to the bank’s old
reserve account but which the conservator has definitely determined
to represent segregated deposits and which should have been credited
to a special account in the Federal reserve bank.
V/liere the bank
in the hands of a conservator is not indebted to the Federal re
serve bank or where the old reserve balance exceeds the amount of
the indebtedness to the Federal reserve bank, the Federal reserve
bank may be requested to make transfers of
such excess amount to the
conservator’s general account, described below, with the authoriza
tion of the Comptroller of the Currency*
These transfers to the conservator’s special account
or general account may not be made by drafts or checks drawn by
the conservator, but must be made with the consent of the Federal
reserve bank under special arrangements agreed to by it.
Reproduced from the Unclassified I Declassified H oldings of the National Archives
~~
■f
DECLASSIFIED
Authority t)UD 3oozfe,
X-7396
^
403
Conservator’s Special Account.
If the conservator has boen authorized to accept new deposits
which are not subject to any 3-imitation as to payment or withdrawal,
to be segregated as provided in section 206 of the Bank Conservation
Act, the funds received pursuant to such authority may be deposited
in the Federal reserve bank of the district in which such bank is
located in a special account in the name of the conservator which
account may be styled substantially as follows:
ir
__ ___ _________ _________ Conservator’s Special Account
(Bank and address)
(Conservator)
M
The conservator may deposit with the Federal reserve bank
in this account cash, Government checks, checks end other cash items
which the Federal reserve bank can collect at par.
The Federal reserve bank may receive and handle all cash
items deposited in this account subject to the terms and conditions
of Regulation J of the Federal Reserve Board and of such bank’s
current circular regarding the collection of cash items.
The Federal reserve bank will not be expected to give
credit for such checks and other cash items in accordance with
its published time schedules which are used in giving credit to
member banks, but may increase the tine of credit availability
in such time schedules by a number of days estimated to be suffi-
Reproduced from the Unclassified I Declassified H oldings of the National Archives
DECLASSIFIED
Authority VlKD 3 0 0 2 b
<7
v'!
X-7596
- M -
cient to obtain mail advice of non-payment of such items.
The
conservator, however, should bear in mind that all such items
are received by the Federal reserve bank subject to final pay
ment and that withdrawals of deposits represented by such checks
and other cash items should not be permitted by the conservator
until sufficient tine has elapsed to permit of the collection of
s\fch items in accordance
with the foregoing provisions.
The con
servator may be held accountable for any loss resulting from the
payment of such deposits in violation of these instructions.
The conservator may aceept maturing notes, drafts, Govern
ment obligations and other non-cash items for collection and for
credit when collected to the special segregated accounts of deposit
ors,
The Federal reserve bank may receive
and handle such non-cash
items for collection and credit on its books to the conservator’s
special account, in accordance with its non-cash collection cir
cular.
The conservator will be advised of such credit in each
instance and should not permit any withdrawals of deposits repre
sented by such non-cash items until he has received
such advice.
All deposits by the conservator in the conservator’s
special account at the Federal reserve bank and all non-cash items
sent to the lederal reserve bank for collection and credit of the
conservator’s special account should be marked so as to indicate
clearly to the Federal reserve bank that such items are for the
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority U M D 3oozb
X-7396
- J f -
credit of such spocial accounts.
All items sent to the federal reserve bank by the conser
vator for credit to this account, whether cash items or non-cash
items, shpuld be indorsed, "Pay to the Order of the Federal Reserve
Bank of _____
________ for credit to Conservator’s special account
(Bank and address)
B y ____________________ __________
(Conservator)
All prior indorsements guaranteed.”
The conservator may draw drafts against this special account'
at the Federal reserve bank (a) in payment of chocks or drafts drawn
by depositors against such spocial segregated deposits when presented
to him by other banking institutions; (b) in order to provide himself
J?•
with cash with which to pay such deposit-slw^ or (c) to provide de
positors in such segregated accounts with drafts for exchange pur
poses.
All drafts against such account should be signed by the con
servator and otherwise identified in such manner as to show clear
ly the account to which they should be charged.
If the bank Y/hich is in conservatorship accepted new de
posits withdrawable without restriction pursuant to agreement or
under State legislation, gubernatorial proclamation or Presidential
proclamation and opened and maintained a special account with the
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority M D a o o z fe
Vi
-/ -
X-7396
Federal reserve "bank, representing such new deposits, the Federal
reserve bank should be requested to transfer the balance now carried
in such special account to the Conservator’s Special Account at the
Federal reserve bank.
404.
Conservator’s General Account.
Funds received by the conservator in connection with M e
conservatorship from any source other than from special segregated
deposits referred to above may be deposited in the Federal reserve bank
of the district in which such bank is located in a general account in the
name of the conservator which account may be styled substantially as
follows:
” _______________________ Conservator’s General Account
(Bank and address)
(Conservator)
"
Any collections made by the conservator upon the unpledged
assets of the bank while in conservatorship may be deposited in this
general account.
The conservator may deposit with the Federal reserve bank in
this account cash, Government checks, checks and other cash items
which the Federal reserve bank can collect at par.
The Federal reserve bank may receive and handle all cash
items deposited in this account subject to the terms and conditions of
Regulation J of the Federal Reserve Board and of such bank’s current
circular regarding the collection of cash items.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority YlNDaoozfe,
i
-
X-7396
The Federal reserve tank will not be expected to give credit
for such checks and other cash items in accordance with its published
time schedules which are used in giving credit to member banks, but
may increase the time of credit availability in such time schedules
by a number of days estimated to be sufficient to obtain mail ad
vice of non-payment of such items.
The conservator, however, should
bear in mind that all such items are received by the Federal reserve
bank subject to final payment.
The conservator may deposit in such general accoimt maturing
notes, drafts, Government obligations and other non-cash items for
collection and for credit when collected.
The Federal reserve bank
may receive and handle such non-cash items for collection and credit
on its books to the conservators general account, in accordance
with its non-cash collection circular, and the conservator will be
advised of such credit in each instance.
All deposits by the conservator in the Conservator’s Gen
eral Account at the Federal reserve bank and all non-cash items sent
to the Federal reserve bank for collection and credit of the Con
servators General Account should be marked so as to indicate clear
ly to the Federal reserve bank that such items are for the credit
of such general account.
All items sent to the Federal reserve bank by the conser
vator for credit to this account, whether cash items or non-cash items,
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
r
Authority tlM D 3oozfc
-Jf-
X-7396
should he indorsed, "Pay to the Order of the Federal Keserve Bank
of _____________ „ for credit to Conservators General Account
(Bank and address)
B y __________________________
(Conservator)
All prior indorsements guaranteed.n
The conservator may withdraw funds from this general account
only when and as authorized by the Comptroller of the Currency.
A H drafts against such account should he signed hy the con
servator and otherwise identified in such manner as to show clearly
the account to which they should he charged.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlKD Soozfa
- 0 405.
X-7396
Conservator’s De-positafry Account.
In addition to a Special Account and General Acco-unt maintained
with the Federal reserve bank, the conservator may open an account with a
national or State member bank, licensed to reopen by the Secretary of the
Treasury, which account is referred to herein as the nConserva,tor’s De
positary Acrcount.fl
This account may be utilized for the following purposes:
(a) As an account in which to maintain funds for current operating
purposes, including salaries, supplies, and other items of expense.
(b) For the collection, for the account and at the instance of deposit
ors, of checks and other cash items drawn on nonpar banks which will
not be accepted by the Federal reserve bank as well as any non
cash items which the Federal reserve bank will not handle. Such
collections will be undertaken by the depositary at the instance
of the conservator, but for the account and as agent of the owners
or holders of such items. When and as the conservator may receive
actual payment of such items, the proceeds may, with the
acquiescence or upon the direction of the depositors, be placed in
special segregated accounts to the credit of the depositors and
then transferred to the conservator’s special account with the
Federal reserve bank.
(c) For deposit therein of collections effected by the conservator
from assets of the bank and for the deposit of cash and of checks
or other items belonging to the bank.
(d) For collection, at the instance and for the account of others,
of checks or other items, whether cash or noncash, left or placed
Y/ith the conservator for that purpose.
The conservator shall make transfers from time to time from the
depositary account to the conservator’s general account with the Federal re
serve bank described on page ____ of these instructions, of such excess of
collected funds as will not be needed in this account for current operating
purposes.
Withdrawals from this account may be made by the conservator for
any purpose authorized herein.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority VlMDaoozfa
X-7396
Chapter V
ASSISTANTS TO CONSERVATORS.
The Conservator may appoint a competent person or persons
to serve as his assistant or assistants.
An assistant to a con
servator shall have the right to sign in the name and on "behalf
\
of the conservator checks drawn on any account mentioned herein,
^ to the extent and under the circumstances herein authorized, as
well as to perform such other purely ministerial duties and
functions of a routine nature and not involving the exercise of
discretion, as the conservator may from time to time delegate
and authorize.
The name of any such assistant shall upon appointment
be promptly certified to the Comptroller of the Currency and to
the Federal reserve hank and the conservators depositary hank.
When notifying the Federal reserve bank and depositary bank of
the appointment of any such assistant, the conservator shall
furnish them respectively with a specimen signature of such
assistant.
Reproduced from the Unclassified I Declassified Holdings of the National Archives
DECLASSIFIED
Authority
CERTAIN SECTIONS OF INSTRUCTIONS OF THE CONTROLLER OF THE CURRENCY TO
CONSERVATORS OF Na TI
L BANKS.
/
3 4 £
Renewal o f B i l l s R e so lva ble *
Com eenrators a re a u th o r is e d , when, i n t h e i r d i s c r e t i o n , th e y
m y doom i t a d v is a b le , t o renoo o r ex te nd
s tu r ln * ; paper h e ld x m »
pledged by the banks i n t h e i r eh*rge f o r n o t excee ding t h i r t y day*
t r a m and a f t e r m a tu rity *
la « m
s o f such re n e w a l o r * ? te n s i< m ,
oaro sh o u ld bs < -# r o is e d t o soo t h a t n o p a r t ie s l i a b l e th e re o n aro
disch a rge d *
Rakers and in d o rs o rs s h o u ld * i g » sod in d o rs s the renew*
e l n o te s and th o samo sh o u ld o th e rw is e ho o f the te n o r o f th e o r i g i n a l
o b lig a t io n s exoe pt as t o d atos m d
a t u r i t l e s &nd e>. oept a la o i n th o
oaso o f re n e rc d s and e x te n s io n s ( a ) t h a t p r i n c i p a l o f e w h
o b lig a t io n s
■ay bo re du ce d and ( b ) t h a t a d d it io n a l e O U a t e r a l o r s e c u r i t y m y |g£
obt&ined*
ho re ne w al o r «
endion oan bo g ra n te d w ith ou t the pay e n t
o f i n t r o o t duo on th o renewed o r o. tojoedod o b li g a t i o n a n d /or prep%|g£
upon s d is c o u n t b a s is on suoh o b li g a t i o n ! bu t no c o l l a t o r * ! is t o i *
re le a s e d
#3coopt
w i t h th o con sen t o f t h is o ff ic e *
hotos o r o rh r e vid e n ce s o f
d«?bt
pledget
f o r th e payraent o f
th o b «n k fs o b lig a t io n s m y * when s e n t t o eor<.sonrators i n t r u s t f o r
th o p u rp o s e , bo ronowod o r extended upon suah ton&s &nd under ouch son*
d i t i o n s a a a re ho ro r b e o r © s e t out i n re a p c t o f u n p le d g d n o to s and
upon auoh fu rtls o r tersss and c o n d itio n s n o t in c o n s is t e n t here^ i U i as
m y
bo agreed upon by the p le d g e o .
B e fo re re n e w in g o r e x te n d in g any
such pledgee n o t e , c o n s e rv a to rs ...;u*t seoure th© w r i t t e n consent
of the
ple dgee to such renew al o r ^ t e n s i o n , u n le s s such consent la g iv o f e if t
Reproduced from the Unclassified I Declassified Holdings of the National Archives
~
f
DECLASSIFIED
Authority
the time the notes ere forwarded t o oe&senmtors fo r the purpose o f re*
/
newml or • tension in whole or in jmrt or fo r ool lection *
Conservators ere authorised end e^powere^'to forward renewal
notes end erfcexided. notes to the pledgeee e n title d thereto* end the in*
d rsement ty the conservator o f suoh notes
in the name and on he*
h a lf o f the pledger bank sh a ll hind the ^ t t e r #nd i t s assets t o the
sens extent as, hut t o no greater e teaft than* the pledger bank wee
bound on an by the origin a l obligation*
P ayou ts ^mde on account o f
p rin cipal and/or in terest on pied@/d paper should be forwarde
pledgees e n title d thereto*
to the
/
4
$%
Reproduced from the Unclassified I Declassified Holdings o f the National Archives
DECLASSIFIED
>
Authority nm > a o o z b
t-f
j I./ >-
Ptederal Reserve System - laaaod W tr#
A p ril 1#
. 1933
Dunlop
M in n e a p o lis
H o t e l M arch tw e n ty © i$ it h 3T0SP
T r e a s u ry a d v is e e u n lic e n s e d im m b & r bank
oannot ia au e rtra fta I n payment o f f i v e p e r o a n t redeirf>tion fu nd chargee
HORHtlX
J T C -h k b
(TL-
¥ ■
@FedFRASER