Full text of Banking Holiday of 1933 : Press Statement

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FEDERAL RESERVE BANK
OF ST. LOUIS
April 6, 1933.

P R E S S STATEMENT
To All Banks in District No. 8:
The Secretary of the Treasury released the following statement to the
Press on the late afternoon of April 5:
"The President's order of today requiring the turning in of hoarded gold,
and at the same time providing that gold shall be available for all proper
purposes, is an expected step in the process of regularizing our monetary
position and furnishing adequate banking and currency facilities for all customary needs.
"Such an order was in contemplation from the time of the passage of the
emergency banking act. As the President indicated today, while many of our
citizens voluntarily and helpfully turned in their gold, there were others who
did not so respond. In fairness, the conduct of all citizens with reference to
gold should be the same in this emergency, and this is assured by the order.
Those surrendering gold, of course, receive an equivalent amount of other
forms of currency, and other forms of currency may be used for obtaining
gold in an equivalent amount where authorized for proper purposes.
"Gold held in private hoards serve no useful purpose under present circumstances ; when added to the stock of the Federal reserve banks it serves
as a basis for currency and credit. This further strengthening of the banking
structure adds to its power of service toward recovery.
"A vital provision of the order is that authorizing the Secretary of the
Treasury to issue licenses for gold for proper business needs not involving
hoarding. Applications will be passed upon as the facts in each case warrant.
"Regulations governing the procedure of the Treasury under the new
order are in course of preparation."
Respectfully,
WM. McC. MARTIN,
Governor.