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FEDERAL RESERVE BANK
OF NEW YORK
Fiscal Agent of the United States
Circular No. 2 3 7 3 , February 3, 1942

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 are the texts of Public Circular No. 14 and a press release issued today
pursuant to the freezing Orders:
CODE OF FEDERAL REGULATIONS
m
Title 31-Money and Finance: Treasury
TREASURY DEPARTMENT
Chapter I—Monetary Offices, Department of the Treasury
Office of the Secretary
Part 131—General Licenses under Executive Order No. 8389,
February 3, 1942
April 10, 1940, as amended, and Regulations issued
pursuant thereto.
Appendix
PUBLIC CIRCULAR NO. 14
UNDER EXECUTIVE ORDER NO. 8389, APRIL 10, 1940, AS AMENDED, AND
REGULATIONS ISSUED PURSUANT THERETO, RELATING TO TRANSACTIONS
IN FOREIGN EXCHANGE, ETC.*

(1) No license or other authorization now outstanding or hereafter issued, unless
expressly referring to. this public circular, shall be deemed to authorize any blocked country
or any national thereof to purchase, directly or indirectly, securities of any one issue of a
corporation if the securities so purchased together with the aggregate of all other securities
held directly or indirectly by such blocked country or national constitute more than one
percent of the outstanding securities of that issue. Banking institutions shall not effect
any such purchases if they have reasonable cause to believe that the terms hereof are
being violated.
(2) Monthly reports on Form TFR-4 are hereby required to be filed with respect to
the purchase or sale of securities for any blocked account and, unless expressly referring
to this public circular, no license or other authorization shall be deemed to suspend the
requirement of filing this report. Such report shall be filed with the appropriate Federal
Reserve Bank by the banking institution with which such blocked account is held and shall
be filed on or before the 15th day of the month following the calendar month with respect
to which the report is filed. No report need be filed for any calendar month during which
the total purchases and the total sales for any blocked account are each less than $5,000.
This reporting requirement shall be deemed to be in lieu of that required under any license
now outstanding or hereafter issued so far as such license requires the filing of reports
with respect to the purchase or sale of securities for any blocked account.
(3) Banking institutions shall have a reasonable period of time, but not to exceed 15
days from the date hereof, in which to adjust their records for the purpose of complying
with the provisions, of paragraph (1) hereof; provided, however, that a special report shall
be filed with respect to any case in which the one percent limitation contained in paragraph
(1) was exceeded as a consequence of records being in the process of adjustment. Such
report shall be filed with the appropriate Federal Reserve Bank within 30 days of the date
hereof and shall expressly refer to paragraph (3) of this public circular.
E. H. FOLEY, JR.

Acting Secretary of the Treasury.
• P a r t 131;—Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179; Public No. 354, 77th
Congress; Ex. Order 8389, April 10, 1940, as amended by Ex. Order 8785, June 14, 1941, Ex. Order 8832,
July 26, 1941, Ex. Order 8963, December 9, 1941, and Ex. Order 8998, December 26, 1941; Regulations,
April 10, 1940, as amended June 14, 1941, and July 26, 1941.



(OVER)

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TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE
February 3, 1942

PRESS SERVICE
No. 30-6

The Treasury Department today issued Public Circular No. 14 which prohibits the
purchase, without special license, for any blocked account of more than 1 percent of the
outstanding shares of any one class of any corporation. The purpose of this restriction
is to make doubly sure that the Treasury Department may deal specifically with any
attempt on the part of blocked nationals to utilize Treasury Department licenses for the
purpose of acquiring a substantial interest in American corporations.
Public Circular No. 14 also simplifies and makes uniform the various outstanding
reporting requirements relating to the purchase and sale of securities pursuant to licenses
issued under the freezing Order. The circular prescribes a new form (TFR-4) which must
be filed in any case where securities are purchased or sold under a Treasury Department
license involving amounts exceeding the limitations contained in Public Circular No. 14.
Thus, if securities are purchased or sold under the authorization of one of the general
licenses which permit transactions on behalf of the neutral countries of Europe and their
nationals, a report on TFR-4 is required to be filed. The use of the new form will facilitate
enforcement of the 1 percent limitation mentioned above.
Provision is made in the public circular for a 15 day period during which brokerage
houses and banks may adjust their records so that they may comply with the new
requirements.

Additional copies of this circular will be furnished upon request.




SPKOUL,

President,

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