Full text of District Notices (Federal Reserve Bank of Dallas) : [Accounts Blocked Should Not Be Unblocked Until Submitted to Federal Reserve Bank]

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FEDERAL RESERVE BANK
OF DALLAS

Dallas, Texas, December 8, 1941

To All Banking Institutions, and Others Concerned,
in the Eleventh Federal Reserve District:
The Treasury Department has expressed the view that in no circum­
stances should accounts which were blocked pursuant to specific instruc­
tions by the Treasury Department or the Federal Reserve bank be un­
blocked until the matter has been submitted to the Federal Reserve bank,
and the inquiring banking institution or brokerage house has been
informed that the Treasury Department does not object to the proposed
unblocking. Furthermore, it would be advisable for any banking institution
or brokerage house to consult the Federal Reserve bank before unblocking
any account which has been the subject of specific inquiry by the Treasury
Department or by the Federal Reserve bank as to the blocked status of
such account.
As a result of the recent promulgation of General License No. 42A,
situations are arising in which banks find themselves with apparent justi­
fication for granting generally licensed national status thereunder to
persons whose accounts have been blocked pursuant to specific instructions
or which have been the subject of special inquiries. However, it is empha­
sized that the principle stated above is fully applicable to General License
No. 42A (see paragraph 3 (b) of General License No. 42A), as well as to
other general licenses and to unblocking generally.

Yours very truly,
R. R. GILBERT
President

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)