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FEDERAL RESERVE BANK
O F N E W YORK
Fiscal A g e n t of the United States

r
Circular No. 2 6 4 6 , July 7, 1943
"1
U Reference to Circulars Nos. 2634 and 2637. J

FOREIGN FUNDS CONTROL

To all Banking Institutions, and Others Concerned,
in the Second Federal Reserve District:

For your information we quote below the text of General Ruling No. 5A and the text of
a press release which have been issued today by the Treasury Department:
TREASURY DEPARTMENT
Office of the Secretary
July 7, 1943
GENERAL RULING NO. 5A
UNDER EXECUTIVE ORDER NO. 8389, AS AMENDED, EXECUTIVE ORDER NO. 9193,
SECTIONS 3(a) AND 5(b) OF T H E TRADING W I T H T H E ENEMY ACT, AS AMENDED
BY T H E FIRST W A R POWERS ACT, 1941, RELATING TO FOREIGN FUNDS CONTROL*

REGULATIONS RELATING TO CERTAIN IMPORTATIONS AND EXPORTATIONS OF
CHECKS, DRAFTS, AND OTHER FINANCIAL INSTRUMENTS.
1. Prohibition with respect to importation and exportation of and dealings in checks, drafts,
etc. T h e following transactions are prohibited after the effective date of this general ruling
unless authorized b y a license or other authorization of the Secretary of the Treasury
expressly referring to this general ruling:
( a ) T h e sending, mailing, exporting, or otherwise taking of any check, draft, bill
of exchange, promissory note, security, or currency from the United States, directly
or indirectly, to any blocked country (with the exception of China and members of
the generally licensed trade area) ;
( b ) T h e sending, mailing, importing, or otherwise bringing into the United States
f r o m any foreign country of any check, draft, bill of exchange, or promisory note
which has been within, or which there is reasonable cause to believe has been within,
any blocked country (with the exception of China and members of the generally
licensed trade area) ;
( c ) T h e presentation, endorsement, acceptance, collection, payment, transfer, or
protest of, or any other dealing in or with respect to, any instrument to which the
prohibitions of paragraph 1 ( b ) hereof apply and which is sent, mailed, imported, or
otherwise brought into the United States on or after August 25, 1943.
* Appendix A;—Sec. 5(b), 40 Stat. 415 and 966; Sec. 2, 48 Stat. 1; 54 Stat. 179; Public No. 354, 77th Congress, 55 Stat. 838; 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; Ex.
Order 9193, July 6, 1942; Regulations, April 10, 1940, as amended June 14, 1941, and July 26, 1941.




2. Delivery of imported checks, drafts, etc., to Federal Reserve Bank of New York. Any
person who, after the effective date of this general ruling, receives any check, draft, bill
of exchange, or promissory note which has been within, or which there is reasonable cause
to believe has been within, any blocked country (with the exception of China and members of the generally licensed trade area) shall within five days after receipt thereof
forward such instrument to the Federal Reserve Bank of New York, accompanied by a
statement in triplicate setting forth:
(a) His name and address;
( b ) A complete description of the instrument;
( c ) The name and address of the person from whom he received the instrument;
and
( d ) The names of any blocked countries in which the instrument has been, or in
which there is reasonable cause to believe it has been.
The Federal Reserve Bank of N e w York will act only as fiscal agent of the United States
hereunder and shall receive and hold all such instruments as such fiscal agent, subject to
the further order of the Secretary of the Treasury. Applications for the release of any
such instruments may be filed in the manner prescribed in section 130.3 of the Regulations, except that the place for filing applications shall be the Federal Reserve Bank of
N e w York.
3. Reports on arrival and departure re checks, drafts, etc.
(a) Any individual entering the United States after the effective date of this
general ruling from any foreign country shall report and surrender to the collector
of customs or his representative at the port of entry, before the examination of his
baggage or effects has begun (or, if his baggage is not subject to examination, before
customs clearance), every check, draft, bill of exchange, and promissory note carried
on his person or in his baggage or effects which has been within, or which there is
reasonable cause to believe has been within, any blocked country (with the exception
of China and members of the generally licensed trade area). Such report shall be
made in duplicate on Form FFC-160, which may be obtained from the collector of
customs or his representative at the port of entry.
( b ) Any individual departing from the United States after the effective date of
this general ruling shall report to the collector of customs or his representative at the
port of exit, before customs examination has begun (or, if he is not subject to customs
examination, before customs clearance), (i) all currency and (ii) every check, draft,
bill of exchange, promissory note, and security carried on his person or in his baggage
or effects which is destined for, or which there is reasonable cause to believe is
destined for, directly or indirectly, any blocked country (with the exception of China
and members of the generally licensed trade area). Such report shall be made in
duplicate on Form FFC-161, which may be obtained from the collector of customs or
his representative at the port of exit.
4. Exceptions. The foregoing provisions shall not be deemed to apply to the following instruments, unless such instruments have been within, or there is reasonable cause
to believe that they have been within, enemy territory, or unless such instruments are
destined for, or there is reasonable cause to believe that they are destined for, enemy
territory, directly or indirectly:




(a) Non-negotiable bank payment orders;
(b)

(i) Incoming travelers checks;
(ii) Outgoing travelers checks which are carried by persons departing from
the United States for blocked countries and which are issued in the name
of the person carrying them;

( c ) Outgoing checks drawn on the Treasurer of the United States which are
carried by persons in the service of the United States Government and which are
issued in the name of the person carrying them;
(d) Outgoing currency valued at $50 or less which is carried for traveling expenses
by persons departing from the United States for blocked countries;
(e) Incoming drafts or bills of exchange drawn under letters of credit;
( f ) Incoming drafts or bills of exchange drawn on importers in the Western
Hemisphere in connection with the importation of goods, wares, or merchandise into
the Western Hemisphere;
( g ) Incoming checks, drafts, bills of exchange, or warrants drawn on the Secretary of State of the United States, the Secretary of Navy of the United States, or
the Treasurer of the United States.
5. Transactions not authorized. This general ruling shall not be deemed to authorize
any transaction prohibited by the Order or by any regulation, ruling, or instruction issued
by the Secretary of the Treasury pursuant to sections 3(a) or 5 ( b ) of the Trading with
the enemy Act, as amended.
6. Definitions, ( a ) The term "member" of the generally licensed trade area as used
herein shall have the meaning prescribed in General License No. 53, as amended.
( b ) The term "enemy territory" as used herein shall have the meaning prescribed in General Ruling No. 11, as amended.
7. Effective date. The provisions hereof shall take effect August 25, 1943, with the
exception of paragraphs 1(a) and 3 ( b ) which shall be effective on the date of issuance of
this general ruling.
RANDOLPH

PAUL

Acting Secretary of the Treasury.

TREASURY DEPARTMENT
Washington
FOR IMMEDIATE RELEASE,
Wednesday, July 7, 1943.

Press Service
No. 37-41

The Treasury Department today issued regulations prohibiting the exportation of
checks, drafts, and similar negotiable instruments to blocked countries and restricting the
importation of, and dealings in, checks and drafts which have been in such countries.
The regulations, identified as General Ruling No. 5A, prohibit the sending or taking
of checks, drafts, bills of exchange, promissory notes, securities, or currency from the
United States to any blocked country, other than China and the blocked members of the
generally licensed trade area, and prohibit, effective August 25, 1943, the importation of
checks, drafts, bills of exchange, or promissory notes which have been within such blocked
countries. The importation provisions are implemented by a prohibition on dealings in
financial instruments imported on or after August 25, 1943.
A m o n g the more important blocked countries to which the ruling applies are all enemy
and enemy-occupied countries, Portugal, Spain, Sweden, Switzerland, and their territories
and possessions, Tangier, Finland, French North and W e s t Africa, and the French Antilles.
Any such financial instruments which have been within any of the blocked countries
affected and which are imported on or after August 25, 1943, must be turned over to the
Federal Reserve Bank of New York as fiscal agent of the United States. Persons arriving
in the United States on or after August 25, 1943, will be required to report and surrender
such instruments to the collector of customs at the port of entry, who will deliver them to
the Federal Reserve Bank of New York. The Treasury has stated that it will not be its
policy to license the exportation or importation of, or dealings in, checks or drafts which
are affected by the ruling.
The export restrictions, which are immediately operative, are a continuation and implementation of existing prohibitions. Attention is directed to the fact that persons depart-




ing from the United States are prohibited, except under specific Treasury authorization,
from taking with them any securities, currency, checks, drafts, or promissory notes which
are destined for any blocked country affected by the ruling, and are required to report the
possession of any such instruments or currency to the collector of customs at the port
of exit. However, it was stated that any person leaving the United States for any blocked
country affected by the ruling (except countries constituting enemy territory) is authorized to take out currency of an equivalent of $50 in value and travelers checks issued in
his name, and'that such items need not be reported to the collector of customs at the port
of exit, unless such items are destined, directly or indirectly, for enemy territory. At the
same time it was pointed out that since there are many restrictions on the use of United
States currency outside the United States, travelers checks, letters of credit, or telegraphic
transfers are the best means of satisfying financial needs while traveling abroad.
It is to be noted that the importation prohibitions do not apply to the importation of
securities or currency, since such importation is already restricted by General Ruling
No. 5.
The ruling does not apply to instruments which have been in blocked countries in the
"generally licensed trade area" as defined in General License No. 53 unless such instruments have been within any of the blocked countries to which the ruling applies. Remittances to and from these excepted areas are nevertheless subject to the provisions of
Executive Order No. 8389, as amended. Treasury spokesmen also observed that the
ruling imposes no new restrictions on remittances to and from China, which are already
adequately controlled under existing procedures.
Treasury officials called attention to the fact that the ruling sets forth specific exemptions for certain categories of checks, drafts, and bills of exchange, unless such instruments
are destined for or have been in enemy territory. There are thus left open certain channels through which travel may be financed and legitimate trade and financial transactions
effected between countries in this hemisphere and neutral blocked European countries.
The exceptions include non-negotiable bank payment orders; incoming travelers checks;
outgoing travelers checks carried by and issued in the name of persons departing from the
United States for blocked countries; outgoing Treasurer's checks carried by and issued in
the name of a person in the service of the United States Government; outgoing currency
valued at $50 or less carried for traveling expenses; incoming drafts or bills of exchange
drawn under letters of credit; incoming drafts or bills of exchange drawn on importers in
the Western Hemisphere in connection with the importation of merchandise into the
Western Hemisphere; and incoming checks, drafts, bills of exchange, or warrants drawn
on the Secretary of State, the Secretary of the Navy, or the Treasurer of the United
States. The exceptions, it was emphasized, do not obviate the necessity of a Treasury
license with respect to transactions within the scope of Executive Order No. 8389, as
amended, but merely exempt the instruments referred to from the special restrictions of
the ruling. It was stressed, moreover, that transactions involving trade or communication
with enemy nationals require a license specifically referring to General Ruling No. 11.

Additional copies of this circular will be furnished upon request.




ALLAN

SPROUL,

President.

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