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FEDERAL RESERVE BANK
OF NEW YORK

Circular No. 1 8 2 9
March 18, 1938

AMENDMENT OF REGULATION T
OF THE BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

To Members of National Securities Exchanges,
Brokers and Dealers in Securities, and Banking
Institutions, in the Second Federal Reserve District:

The Board of Governors of the Federal Reserve System has
adopted Amendment No. 1 of revised Regulation T, to become effective
March 21, 1938.
For your information a copy of the above mentioned amendment is
sent to you herewith. Additional copies will be furnished upon request.




GEORGE L. HARRISON,

President.

BOARD OF GOVERNORS OF THE
FEDERAL RESERVE SYSTEM

"Amendment No. 1 of Revised Regulation T—Effective March 21, 1938
" 1 . Section 4(b) of said regulation is amended by striking out the
word 'and' after the semicolon in paragraph (2) of said section, by
striking out the period at the end of paragraph (3) of said section
and substituting therefor a semicolon and the word 'and', and by
adding at the end thereof a new paragraph reading as follows:
' (4) A transaction consisting of a withdrawal of cash or registered or exempted securities from the account shall not be subject to
the restrictions specified in the second paragraph of section 3(b).'
" 2 . The second paragraph following paragraph (2) of section 4(c)
of said regulation is amended by adding the following sentence at the
end thereof:
' If any shipment of securities is incidental to the consummation
of a transaction in a special cash account, the period applicable
to the transaction under the foregoing provisions of this paragraph or the preceding paragraph shall be deemed to be extended
by the number of days required for such shipment, except that
the total extension of such period pursuant to this sentence shall
not exceed 7 days for any transaction.'
" 3 . Paragraph (2) of section 4(f) of said regulation is amended
to read as follows:
' (2) Effect and finance, for any member of a national securities
exchange who is registered and acts as an odd-lot dealer in
securities on the exchange, such member's transactions as an
odd-lot dealer in such securities, or effect and finance, for any
joint adventure in which the creditor participates, any transactions in any securities of an issue with respect to which all
participants, or all participants other than the creditor, are
registered and act on a national securities exchange as odd-lot
dealers.' "




FEDERAL RESERVE BANK
OF NEW YORK

March 22, 1938.

To all Member Banks in the
Second Federal Reserve District:

It is announced with deep regret that

JACQUES

A.

MITCHELL,

Manager of the Credit Department of the Federal Eeserve Bank
of New York, died today, Tuesday March 22, 1938.




Respectfully,

GEORGE L. HARRISON,

President.


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102