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Dallas, Texas, March 17,1933.

To the Bank Addressed:
Supplementing our circulars of March 6 to 16, 1933, both inclusive, there are quoted
below for your information, certain additional regulations issued by the Secretary of the
Treasury under authority conferred upon him by proclamation of the President of the
United States declaring bank holiday:
“ Regulation No. 12 is not to be construed as permitting a banking institution, open
for normal and usual functions under license of the Secretary of the Treasury, to require
depositors to accept clearing house certificates or other evidences of claims against assets
for all or any part of any withdrawal requested.” Designated as interpretation 11.
“ A number of inquiries have been made at the Treasury Department as to whether a
prohibition exists upon proper commercial dealings in silver during the banking emerg­
ency. ‘No regulations have been issued restricting export or other transactions in silver,
except for limitations aifecting withdrawal by depositors for hoarding and restrictions
on banks not permitted to reopen’.”
“ Comptroller of Currency advises that notwithstanding appointment of Conservator
for National Bank under Bank Conservation Act, deposits received by such bank prior to
appointment of Conservator in Special Trust Accounts created under the provisions of
Regulation No. 7 of the Secretary of the Treasury, issued March 6, 1933, may be with­
drawn upon demand without restriction or limitation to the full extent of the amount of
cash, Federal Reserve Bank balances and proceeds of United States obligations in which
such deposits have been kept separate or invested in accordance with the provisions of
said Regulation No. 7.”
“ The permission granted in regulation number 7 that deposits heretofore received by
any banking institution pursuant to agreement or legislative authority providing for seg­
regation and repayment without restriction may be paid on demand, includes any bank
in which any such deposits have been redeposited by or on behalf of the receiving bank
in accordance with such agreement or legislative authority.”
“ Banking institutions which are not members of the Federal Reserve System or or­
ganized under the laws of the United States and which are not under the immediate
supervision of any State authority may, on and after March 13, 1933, carry on their
normal and usual functions except as otherwise prohibited and except that no such in­
stitution shall pay out any gold coin, gold bullion or gold certificates, unless authorized
by the Secretary of the Treasury, nor allow withdrawals of_aiiy_currency for hoarding^,
nor engage in any transactions in foreign exchange except such as may The undertaken for
legitimate and normal business requirements, for reasonable traveling and other personal
requirements and for fulfillment of contracts entered into prior to March 6,1933.”
Yours very truly,


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