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FEDERAL RESERVE BANK
OF NEW YORK
r
L

Circular No. 2 3 0 0 , October 23, 1941 "I
Reference to Circulars Nos. 2262, 2269, 2271,
2274, 2277, 2281, 2292 and 2293.
J

Executive Order No. 8389, as Amended, and Regulations Issued Pursuant Thereto,
Relating to Transactions in Foreign Exchange, Etc.
To all Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:

For your information we quote below the text of a telegram received today from the
Treasury Department:
The following amendments to outstanding general licenses have been issued today
pursuant to the freezing orders.
CODE OF FEDERAL REGULATIONS
Title 31—Money and Finance: Treasury
Chapter I—Monetary Offices, Department of the Treasury
Part 131—General Licenses under Executive Order No. 8389,
April 10, 1940, as amended, and Regulations issued
pursuant thereto.
Section 131.32

TREASURY DEPARTMENT
Office of the Secretary
O t K 93
Uctober Z6,

GENERAL LICENSE NO. 32, AS AMENDED, UNDER EXECUTIVE ORDER NO. 8389.
APRIL 10, 1940, AS AMENDED, AND REGULATIONS ISSUED PURSUANT THERETO,
RELATING TO TRANSACTIONS IN FOREIGN EXCHANGE, ETC.*

General License No. 32 is amended to read as follows:
(1) A general license is hereby granted authorizing remittances by any individual
through any domestic bank to any individual who is a national of a blocked country and
who is within any foreign country, and any domestic bank is authorized to effect such
remittances, provided the following terms and conditions are complied with:
(a) Such remittances are made only for the necessary living expenses of the payee
and his household and do not exceed $100 in any one calendar month to any one household, except that additional sums not exceeding $25 in any one calendar month may be
remitted for each member of the payee's household in addition to the payee, provided
that in no case shall a sum in excess of $200 per calendar month be remitted to any one
household;
(b) Such remittances are not made from a blocked account other than from an
account in a banking institution within the United States in the name of, or in which
the beneficial interest is held by, the payee or members of his household;
(c) If the payee is within any blocked country, the remittance may be effected
only:
(i) By the payment of the dollar amount of the remittance to a domestic bank
for credit to a blocked account in the name of a banking institution within such
country; or
(ii) By the acquisition of foreign exchange from a person in the United
States having a license specifically authorizing the sale of such exchange.
(d) If the payee is within any foreign country other than a blocked country the
remittance may be effected in the same manner that such remittance would be effected
if the payee were not a national of a blocked country.




(2) All individuals making such remittances and all domestic banks effecting such
remittances shall satisfy themselves that the foregoing terms and conditions are complied with.
(3) Domestic banks through which any such remittances originate shall execute
promptly Section A of Form TFR-132 in triplicate with respect to each such remittance.
When so executed, such copies of Form TFR-132 shall be forwarded promptly to the
domestic bank ultimately transmitting abroad (by cable or otherwise) the payment instructions for such remittance and the latter bank shall, upon the receipt thereof, execute Section
B of such copies of Form TFR-132 and promptly file such executed report in triplicate with
the appropriate Federal Reserve Bank. If the domestic bank through which any such
remittance originates is also the bank ultimately transmitting abroad the payment instructions for such remittance, then such bank shall execute both Sections A and B of such
report. No report on Form TFR-132 shall be deemed to have been filed in compliance with
this general license unless both Sections A and B thereof have been duly executed as
herein prescribed.
(4) As used in this general license the term "household" shall mean:
(a) Those individuals sharing a common dwelling as a family; or
(b) Any individual not sharing a common dwelling with others as a family.
E. H. FOLEY, JR.

Acting Secretary of the Treasury
* Part 131;—Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179; Ex. Order 8389, April 10,
1940, as amended by Ex. Order 8785, June 14, 1941, and Ex. Order 8832, July 26, 1941; Regulations,
April 10, 1940, as amended June 14, 1941, and July 26, 1941.

CODE OF FEDERAL REGULATIONS
TREASURY DEPARTMENT
Title 31—Money and Finance: Treasury
Office of the Secretary
Chapter I—Monetary Offices, Department of the Treasury
^
,
^o 104.1
Part 131—General Licenses under Executive Order No. 8389,
April 10, 1940, as amended, and Regulations issued
pursuant thereto.
Section 131.33
GENERAL LICENSE NO. 33, AS AMENDED, UNDER EXECUTIVE ORDER NO. 8389,
APRIL 10, 1940, AS AMENDED, AND REGULATIONS ISSUED PURSUANT THERETO,
RELATING TO TRANSACTIONS IN FOREIGN EXCHANGE, ETC.*

General License No. 33 is amended to read as follows:
(1) A general license is hereby granted authorizing remittances by any individual
through any domestic bank to any individual who is a citizen of the United States within
any foreign country and any domestic bank is authorized to effect such remittances, provided the following terms and conditions are complied with:
(a) Such remittances do not exceed $500 in any one calendar month to any payee
and his household and are made only for the necessary living and traveling expenses of
the payee and his household, except that an additional sum not exceeding $1000 may
be remitted once to such payee if such sum will be used for the purpose of enabling
the payee or his household to return to the United States;
(b) Such remittances are not made from a blocked account other than from an
account in a banking institution within the United States in the name of, or in which
the beneficial interest is held by, the payee or members of his household.
(2) Remittances herein authorized shall be effected pursuant to the terms and conditions of (c) or (d), as the case may be, under (1) of General License No. 32. If remittances




cannot be effected pursuant to (c) under (1) of General License No. 32, domestic banks are
authorized to effect such remittances in any of the following three ways:
(a) By establishing or maintaining free dollar accounts;
(b) By payment of the dollar amount of the remittance to a domestic bank for credit
to a blocked account in the name of a banking institution within any blocked country; or
(c) By payment of the dollar amount of the remittance to a domestic bank for credit
to the dollar account of a banking institution which is not a national of any blocked
country.
(3) All individuals making such remittances and all domestic banks effecting such
remittances shall satisfy themselves that the foregoing terms and conditions are complied with.
(4) With respect to each remittance made pursuant to this general license, reports on
Form TFR-132 shall be executed and filed in the manner and form and under the conditions prescribed in General License No. 32.
(5) As used in this general license the term "household" shall be deemed to have
the meaning prescribed in General License No. 32.
E. H. FOLEY, JR.

Acting Secretary of the Treasury
* Part 131;—Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179; Ex. Order 8389, April 10,
1940, as amended by Ex. Order 8785, June 14, 1941, and Ex. Order 8832, July 26, 1941; Regulations,
April 10, 1940, as amended June 14, 1941, and July 26, 1941.
CODE OF FEDERAL REGULATIONS
TREASURY DEPARTMENT
Title 31—Money and Finance: Treasury
Office of the Secretary
Chapter I—Monetary Offices, Department of the Treasury
D t K 7~\ 104-1
Part 131—General Licenses under Executive Order No. 8389,
April 10, 1940, as amended, and Regulations issued
pursuant thereto.
Section 131.72
GENERAL LICENSE NO. 72, AS AMENDED, UNDER EXECUTIVE ORDER NO. 8389,
APRIL 10, 1940, AS AMENDED, AND REGULATIONS ISSUED PURSUANT THERETO,
RELATING TO TRANSACTIONS IN FOREIGN EXCHANGE, ETC.*
Paragraph (2) of General License No. 72 is hereby amended in the following respects:
(a) The following sentences are deleted:
"Domestic banks are authorized to effect the payments referred to in (c) and to
establish and maintain free dollar accounts if necessary, and only to the extent necessary, to effect such payments. Domestic banks are not authorized to establish or maintain free dollar accounts in cases where such payments may be effected in the manner
prescribed in (a) or (b) of General License No. 32, as amended."
(b) The following sentence is substituted for the sentences deleted by paragraph
(a) of this amendment:
"Domestic banks shall effect the payments referred to in (c) pursuant to the terms and
conditions of paragraph (2) of General License No. 33."
E. H. FOLEY, JR.

Acting Secretary of the Treasury
* Part 131;—Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179; Ex. Order 8389, April 10,
1940, as amended by Ex. Order 8785, June 14, 1941, and Ex. Order 8832, July 26, 1941; Regulations,
April 10, 1940, as amended June 14, 1941, and July 26, 1941.

Additional copies of this circular will be furnished upon request.




ALLAN SPROUL,

President.

TREASURY DEPARTMENT
Washington

FOR IMMEDIATE RELEASE
Thursday, October 23, 1941.

PRESS SERVICE
No. 28-17

The Treasury Department today took further strong measures to prevent the Axis from
realizing free dollars or other valuable foreign currencies through remittances to Axis controlled areas.
Under today's amendment to General License No. 32 remittances to persons in the Axis
countries and in Axis controlled countries cannot be made if such remittances make free
dollars or valuable foreign currency available to the Axis. Such remittances are still permitted if only blocked dollars result from the transaction.
This policy has not as yet been fully applied with respect to remittances to American
citizens in the "frozen" countries. Remittances to such Americans may continue substantially
as at present under General License No. 33.
The Treasury Department also indicated that the same strict policy would be followed in
dealing with applications for special licenses. It was further indicated that amounts made
available to American citizens in Axis countries and Axis controlled countries under special
licenses may be drastically curtailed.




THE UNITED STATES OF AMERICA
TREASURY NOTES
Tax Series A-1943
Dated August 1,1941

Tax Series R-1943
Due August 1,1943

Issued at Par and Accrued Interest
ACCEPTABLE AT PAR AND ACCRUED INTEREST IN PAYMENT OF FEDERAL INCOME TAXES

"«

TREASURY DEPARTMENT,

Second Amendment to
Department Circular No. 6C7
Fiscal Service
Bureau of the Public Debt

_.
~
OFFICE OF THE SECRETARY,

Washington, October 21,19U1.

1. Section II (1) of Department Circular No. 667, dated July 22, 1941, is hereby amended to
read as follows:
1. General.—The notes of both series will be dated August 1,1941, and will mature August
1, 1943. The owner's name and address, and the date of issue will be entered on each note at
the time of its issue by a Federal Reserve Bank. The month in which payment is received by
a Federal Reserve Bank or Branch, or by the Treasurer of the United States, will determine the
purchase price and issue date of each note. The notes may not be transferred except in the
case of notes issued in the name of a parent corporation, in which case they may be reissued in
the name of a subsidiary of that corporation with the same dating as the notes surrendered,
upon presentation to the Federal Reserve Bank of issue; for the purposes of this paragraph a
subsidiary corporation is defined as one more than 50 per cent of whose stock with voting power
is held by another corporation. No hypothecation of the notes on any account will be recognized by the Treasury Department, and they will not be accepted to secure deposits of public
money. Except as herein provided, the notes will be subject to the general regulations of the
Treasury Department, now or hereafter prescribed, governing bonds and notes of the United
States.
HENRY MORGENTHAU, Jr.,
Secretary of the Treasury.
(Filed with the Division of the Federal Register, October 21, 1941)




U. S. GOVERNMENT PR

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