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DOCUMENTS AND STATEMENTS PERTAINING TO THE BANKING EMERGENCY Presidential Proclamations-, Federal Legislation, Executive Orders, Regulations, and other Documents and Official Statements PART I FEBRUARY 25-MARCH 31, 1933 UNITED STATES GOVERNMENT PRINTING OFFICE WASHINGTON : 1933 CONTENTS Page J o i n t resolution, F e b r u a r y 25 1 Joint resolution, M a r c h 3 1 Proclamation, M a r c h 6 1 Message to Congress, M a r c h 9 2 Emergency banking act, M a r c h 9 3 Act providing for direct loans by Federal reserve b a n k s to S t a t e b a n k s and t r u s t companies, M a r c h 24__ 6 Proclamation, M a r c h 9 7 Executive order, M a r c h 10 7 S t a t e m e n t by President, M a r c h 11 8 Radio address b y President, M a r c h 12 9 Executive order, M a r c h 18 11 Regulations 1 to 32 11-14 Supplementary regulation 14 I n t e r p r e t a t i o n s 1 to 13 15 S t a t e m e n t s by Secretary of t h e T r e a s u r y , M a r c h 7 to 31 16-20 Orders regarding territories and insular possessions 21-22 Authorization to Federal Reserve B a n k of New York to ship e a r m a r k e d gold, M a r c h 7 22 (ii) For convenient use, Presidential proclamations, Federal legislation, Executive orders, regulations, and other documents pertaining to the banking emergency are here reproduced. Material pertaining primarily to gold, currency, and foreign exchange is presented as Part II of this publication. an) During February and the first days of March, Comptroller, when necessary for the protection 1933, banking difficulties became acute in many of the interests of depositors and other creditors parts of the country. By Sat- of any incorporated bank and/or trust company Joint resolution u r d a y , March 4,9 banks in prac- doing business in the District of Columbia of February 25, . •, ,, ~ . , 1933 tically all otates were either ". . . to prescribe such rules and regulations closed or were operating under as he deems advisable governing the receipt and restrictions, on the authority of State officials withdrawal of deposits by and from any such and of the Comptroller of the Currency. Au- bank and trust company . . ." In order to place all banks on a uniform basis thority for the Comptroller of the Currency to of restricted operations and to permit the deexercise with respect to national banks such velopment of adequate means powers as State officials have with respect to or bank^liday ^ dealing with the national State banks was given by the following joint emergency, the President of the resolution: United States issued the following proclamation [PUBLIC RESOLUTION—'No. 58—72D CONGRESS] on the morning of March 6, declaring a national [S. J. Res. 256] bank holiday: JOINT RESOLUTION "BY Authorizing the Comptroller of the Currency to exercise with respect to national banking associations powers which State officials may have with respect to State banks, savings banks, and/or trust companies under State laws. Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, T h a t , with t h e approval of t h e Secretary of t h e Treasury, t h e Comptroller of t h e Currency shall have and m a y exercise to such extent as he deems advisable with respect to a n y national banking association a n y powers which t h e State officials having supervision of State banks, savings banks and/or t r u s t companies in t h e State in which such national banking associations are located m a y h a v e with respect to such S t a t e institutions under State laws now in force or hereafter enacted: Provided, T h a t nothing herein shall be construed to permit t h e establishment of branches of either national or State m e m b e r b a n k s or allow consolidation of either national or State m e m b e r banks not allowed by existing laws. Expenses incurred by t h e Comptroller of the Currency in the exercise of such poweis m a y be assessed b y him against t h e banks concerned and, when so assessed, shall be paid by such banks. N o t h i n g herein shall be construed to impair any power otherwise possessed by t h e Comptroller of t h e Currency, t h e Secretary of t h e Treasury or t h e Federal Reserve Board. T h e powers herein conferred shall t e r m i n a t e six m o n t h s from its approval by t h e President; b u t t h e President of t h e United States m a y extend its force by proclamation for a n additional six m o n t h s . Approved, F e b r u a r y 25, 1933. By joint resolution, the Comptroller of the Currency was given, for a period of 6 months , x. (subject to extension by the T . x Joint resolution J_ • i -i •, • i ,» of March 3 1933 President lor an additional 6 months), special regulatory authority in regard to banks in the District of Columbia. This resolution authorized the (l) THE PRESIDENT OP OF THE UNITED STATES AMERICA " A PROCLAMATION "Whereas there have been heavy and unwarranted withdrawals of gold and currency from our banking institutions for the purpose of hoarding; and "Whereas continuous and increasingly extensive speculative activity abroad in foreign exchange has resulted in severe drains on the Nation's stocks of gold; and "Whereas these conditions have created a national emergency; and "Whereas it is in the best interests of all bank depositors that a period of respite be provided with a view to preventing further hoarding of coin, bullion or currency or speculation in foreign exchange and permitting the application of appropriate measures to protect the interests of our people; and "Whereas it is provided in section 5 (6) of the Act of October 6, 1917 (40 Stat. L. 411) as amended, 'That the President may investigate, regulate, or prohibit, under such rules and regulations as he may prescribe, by means of licenses or otherwise, any transactions in foreign exchange and the export, hoarding, melting, or earmarkings of gold or silver coin or bullion or currency * * *'; and "Whereas it is provided in Section 16 of the said Act ' t h a t whoever shall willfully violate any of the provisions of this Act or of any license, rule, or regulation issued thereunder, and whoever shall willfully violate, neglect, or refuse to comply with any order of the President 2 issued in compliance with the provisions of this Act, shall, upon conviction, be fined not more than $10,000, or, if a natural person, imprisoned for not more than ten years, or both; * * *'; "Now, therefore, I, Franklin D . Roosevelt, President of the United States of America, in view of such national emergency and by virtue of the authority vested in me by said Act and in order to prevent the export, hoarding, or earmarking of gold or silver coin or bullion or currency, do hereby proclaim, order, direct and declare that from Monday, the sixth day of March, to Thursday, the ninth day of March, Nineteen Hundred and Thirty Three, both dates inclusive, there shall be maintained and observed by all banking institutions and all branches thereof located in the United States of America, including the territories and insular possessions, a bank holiday, and that during said period all banking transactions shall be suspended. During such holiday, excepting as hereinafter provided, no such banking institution or branch shall pay out, export, earmark, or permit the withdrawal or transfer in any manner or by any device whatsoever, of any gold or silver coin or bullion or currency or take any other action which might facilitate the hoarding thereof; nor shall any such banking institution or branch pay out deposits, make loans or discounts, deal in foreign exchange, transfer credits from the United States to any place abroad, or transact any other banking business whatsoever. "During such holiday, the Secretary of the Treasury, with the approval of the President and under such regulations as he may prescribe, is authorized and empowered (a) to permit any or all of such banking institutions to perform any or all of the usual banking functions, (b) to direct, require or permit the issuance of clearing house certificates or other evidences of claims against assets of banking institutions, and (c) to authorize and direct the creation in such banking institutions of special trust accounts for the receipt of new deposits which shall be subject to withdrawal on demand without any restriction or limitation and shall be kept separately in cash or on deposit in Federal reserve banks or invested in obligations the United States. " A s used in this order the term 'banking institutions ' shall include all Federal reserve banks, national banking associations, banks, trust companies, savings banks, building and loan associations, credit unions, or other corporations, 1 partnerships, associations or persons, i See interpretations No. 3 (Mar. 7) and No. 10 (Mar. 14), p. 15. engaged in the business of receiving deposits, making loans, discounting business paper, or transacting any other form of banking business. " I n witness whereof, I have hereunto set my hand and caused the seal of the United States to be affixed. "Done in the City of Washington this 6th day of March—1 a. m. in the year of our Lord One Thousand Nine Hundred and Thirty-three, and of the Independence of the United States the One Hundred and Fifty-seventh. [SEAL] " F R A N K L I N D . KOOSEVELT " B y the President: "CORDELL HULL "Secretary of State" On March 9, 1933, the President sent the following message to Congress: Message to . Congress On March 3 banking operations in the United States ceased. To review at this time the causes of this failure of our banking system is unnecessary. Suffice it to say that the Government has been compelled to step in for the protection of depositors and the business of the nation. ''Our first task is to reopen all sound banks. This is an essential preliminary to subsequent legislation directed against speculation with the funds of depositors and other violations of positions of trust. " I n order that the first objective—the opening of banks for the resumption of business—may be accomplished, I ask of the Congress the immediate enactment of legislation giving to the executive branch of the Government control over banks for the protection of depositors; authority forthwith to open such banks as have already been ascertained to be in sound condition and other such banks as rapidly as possible; and authority to reorganize and reopen such banks as may be found to require reorganization to put them on a sound basis. " I ask amendments to the Federal Reserve Act to provide for such additional currency, adequately secured, as it may become necessary to issue to meet all demands for currency and at the same time to achieve this end without increasing the unsecured indebtedness of the Government of the United States. " I can not too strongly urge upon the Congress the clear necessity for immediate action. A continuation of the strangulation of banking facilities is unthinkable. The passage of the 3 proposed legislation will end this condition, and I trust within a short space of time will result in a resumption of business activities. " I n addition, it is my belief that this legislation will not only lift immediately all unwarranted doubts and suspicions in regards to banks which are 100 per cent sound, but will also mark the beginning of a new relationship between the banks and the people of this country. " T h e members of the new Congress will realize, I am confident, the grave responsibility which lies upon me and upon them. " I n the short space of five days it is impossible for us to formulate completed measures to prevent the recurrence of the evils of the past. This does not and should not, however, justify any delay in accomplishing this first step. " A t an early moment I shall request of the Congress two other measures which I regard as of immediate urgency. With action taken thereon we can proceed to the consideration of a rounded program of national restoration." On March 9, 1933, following receipt of the President's message, Congress brakin^act passed an act " t o provide relief in the existing national emergency in banking, and for other purposes." The text of the act is as follows: [PUBLIC—No. 1—73D CONGRESS] [H.R. 1491] AN A C T To provide relief in the existing national emergency in banking, and for other purposes Be it enacted by the Senate and House of Representatives of the United States ofAmerica in Congress assembled^ T h a t t h e Congress hereby declares t h a t a serious emergency exists a n d t h a t it is imperatively necessary speedily to p u t into effect remedies of uniform national application. TITLE I SECTION 1. T h e actions, regulations, rules, licenses, orders a n d proclamations heretofore or hereafter taken, promulgated, m a d e , or issued by t h e President of t h e United States or t h e Secretary of t h e Treasury since March 4, 1933, p u r s u a n t to t h e a u t h o r i t y conferred by subdivision (b) of section 5 of t h e act of October 6,1917, as amended, are hereby approved a n d confirmed. S E C . 2. Subdivision (b) of section 5 of t h e act of October 6, 1917 (40 S t a t . L. 411), as amended, is hereby a m e n d e d to read as follows: "(b) During time of war or during a n y other period of national emergency declared by t h e President, t h e President m a y , t h r o u g h a n y agency t h a t he m a y designate, or otherwise, investigate, regulate, or prohibit, under such rules a n d regulations as he m a y prescribe, by means of licenses or otherwise, a n y t r a n s actions in foreign exchange, transfers of credit between or p a y m e n t s by banking institutions as defined by t h e President, a n d export, hoarding, melting, or earmarking of gold or silver coin or bullion or currency, by any person within t h e United States or any place subject to t h e jurisdiction thereof; a n d t h e President may require a n y person engaged in any transaction referred to in this subdivision to furnish under oath, complete information relative thereto, including t h e production of a n y books of account, contracts, letters or other papers, in connection therewith in t h e custody or control of such person, either before or after such t r a n s action is completed. Whoever willfully violates any of t h e provisions of this subdivision or of any license, order, rule or regulation issued thereunder, shall, upon conviction, be fined not more t h a n $10,000, or, if a n a t u r a l person, m a y be imprisoned for not more t h a n t e n years, or b o t h ; a n d any officer, director, or agent of a n y corporation who knowingly participates in such violation m a y be punished by a like fine, imprisonm e n t , or both. As used in this subdivision t h e term ' p e r s o n ' means an individual, partnership, association, or corporation.'' S E C . 3. Section 11 of t h e Federal Reserve Act is a m e n d e d by a d d i n g a t t h e end thereof t h e following new subsection: " ( n ) Whenever in t h e j u d g m e n t of t h e Secretary of t h e Treasury such action is necessary t o protect t h e currency system of t h e United States, t h e Secretary of t h e Treasury, in his discretion, m a y require any or all individuals, partnerships, associations a n d corporations t o p a y a n d deliver to t h e Treasurer of t h e United States a n y or all gold coin, gold bullion, a n d gold certificates owned by such individuals, partnerships, associations a n d corporations. Upon receipt of such gold coin, gold bullion or gold certificates, t h e Secretary of the Treasu r y shall p a y therefor an equivalent a m o u n t of any other form of coin or currency coined or issued under t h e laws of t h e United States. T h e Secretary of t h e Treasury shall p a y all costs of t h e t r a n s p o r t a t i o n of such gold bullion, gold certificates, coin, or currency, including t h e cost of insurance, protection, a n d such other incidental costs as m a y be reasonably necessary. Any individual, partnership, association, or corporation failing to comply with any requirement of t h e Secretary of t h e Treasury m a d e under this subsection shall be subject to a penalty equal to twice t h e value of t h e gold or gold certificates in respect of which such failure occ u n e d , a n d such penalty m a y be collected by t h e Secretary of t h e Treasury by suit or otherwise." S E C . 4. I n order to provide for t h e safer and more effective operation of t h e National Banking System a n d t h e Federal Reserve System, to preserve for the people t h e full benefits of t h e currency provided for by t h e Congress through t h e National Banking System a n d t h e Federal Reserve System, a n d to relieve interstate commerce of t h e burdens a n d obstructions resulting from t h e receipt on an unsound or unsafe basis of deposits subject t o withdrawal by check, during such emergency period as t h e President of t h e United States by proclamation m a y prescribe, no m e m b e r bank of t h e Federal Reserve System shall t r a n s a c t any banking business except t o such extent a n d subject to such regulations, limitations and restrictions as m a y be prescribed b y t h e Secretary of t h e ' T r e a s u r y , with t h e approval of t h e President. Any individual, partnership, corporation, or association, or a n y director, officer or employee thereof, violating any of t h e provisions of this section shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be fined not more t h a n $10,000 or, if a n a t u r a l person, m a y , in addition t o such fine, be imprisoned for a t e r m not exceeding ten years. E a c h day t h a t a n y such violation continues shall be deemed a separate offense. TITLE II SEC. 201. This title may be cited as the "Bank Conservation Act." SEC. 202. As used in this title, the^ term "bank" means (1) any national banking association, and (2) any bank or trust company located in the District of Columbia and operating under the supervision of the Comptroller of the Currency; and the term "State" means any State, Territory, or possession of the United States, and the Canal Zone. SEC. 203. Whenever he shall deem it necessary in order to conserve the assets of any bank for the benefit of the depositors and other creditors thereof, the Comptroller of the Currency may appoint a conservator for such bank and require of him such bond and security as the Comptroller of the Currency deems proper. The conservator, under the direction of the Comptroller, shall take possession of the books, records, and assets of every description of such bank, and take such action as may be necessary to conserve the assets of such bank pending further disposition of its business as provided by law. Such conservator shall have all the rights, powers, and privileges now possessed by or hereafter given receivers of insolvent national banks and shall be subject to the obligations and penalties, not inconsistent with the provisions of this title, to which receivers are now or may hereafter become subject. During the time that such conservator remains in possession of such bank, the rights of all parties with respect thereto shall, subject to the other provisions of this title, be the same as if a receiver had been appointed therefor. All expenses of any such conservatorship shall be paid out of the assets of such bank and shall be a lien thereon which shall be prior to any other lien provided by this Act or otherwise. The conservator shall receive as salary an amount no greater than that paid to employees of the Federal Government for similar services. SEC. 204. The Comptroller of the Currency shall cause to be made such examinations of the affairs of such bank as shall be necessary to inform him as to the financial condition of such bank, and the examiner shall make a report thereon to the Comptroller of the Currency at the earliest practicable date. SEC. 205. If the Comptroller of the Currency becomes satisfied that it may safely be done and that it would be in the public interest, he may, in his discretion, terminate the conservatorship and permit such bank to resume the transaction of its business subject to such terms, conditions, restrictions and limitations as he may prescribe. SEC. 206. While such bank is in the hands of the conservator appointed by the Comptroller of the Currency, the Comptroller may require the conservator to set aside and make available for withdrawal by depositors and payment to other creditors, on a ratable basis, such amounts as in the opinion of the Comptroller may safely be used for this purpose; and the Comptroller may, in his discretion, permit the conservator to receive deposits, but deposits received while the bank is in the hands of the conservator shall not be subject to any limitation as to payment or withdrawal, and such deposits shall be segregated and shall not be used to liquidate any indebtedness of such bank existing at the time that a conservator was appointed for it, or any subsequent indebtedness incurred for the purpose of liquidating any indebtedness of such bank existing at the time such conservator was appointed. Such deposits received while the bank is in the hands of the conservator shall be kept on hand in cash, invested in the direct obligations of the United States, or deposited with a Federal reserve bank. The Federal reserve banks are hereby authorized to open and maintain separate deposit accounts for such purpose, or for the purpose of receiving deposits from State officials in charge of State banks under similar circumstances. SEC. 207. In any reorganization of any national banking association under a plan of a kind which, under existing law, requires the consent, as the case may be, (a) of depositors and other creditors or (b) of stockholders or (c) of both depositors and other creditors and stockholders, such reorganization shall become effective only (1) when the Comptroller of the Currency shall be satisfied that the plan of reorganization is fair and equitable as to all depositors, other creditors and stockholders and is in the public interest and shall have approved the plan subject to such conditions, restrictions and limitations as he may prescribe and (2) when, after reasonable notice of such reorganization, as the case may require, (A) depositors and other creditors of such bank representing at least 75 per cent in amount of its total deposits and other liabilities as shown by the books of the national banking association or (B) stockholders owning at least two-thirds of its outstanding capital stock as shown by the books of the national banking association or (C) both depositors and other creditors representing at least 75 per cent in amount of the total deposits and other liabilities and stockholders owning at least two-thirds of its outstanding capital stock as shown by the books of the national banking association, shall have consented in writing to the plan of reorganization: Provided, however, That claims of depositors or other creditors which will be satisfied in full under the provisions of the plan of reorganization shall not be included among the total deposits and other liabilities of the national banking association in determining the 75 per cent thereof as above provided. When such reorganization becomes effective, all books, records, and assets of the national banking association shall be disposed of in accordance with the provisions of the plan and the affairs of the national banking association shall be conducted by its board of directors in the manner provided by the plan and under the conditions> restrictions and limitations which may have been prescribed by the Comptroller of the Currency. In any reorganization which shall have been approved and shall have become effective as provided herein, all depositors and other creditors and stockholders of such national banking association, whether or not they shall have consented to such plan of reorganization, shall be fully and in all respects subject to and bound by its provisions, and claims of all depositors and other creditors shall be treated as if they had consented to such plan of reorganization. SEC. 208. After fifteen days after the affairs of a bank shall have been turned back to its board of directors by the conservator, either with or without a reorganization as provided in section 207 hereof, the provisions of section 206 of this title with respect to the segregation of deposits received while it is in the hands of the conservator and with respect to the use of such deposits to liquidate the indebtedness of such bank shall no longer be effective: Provided, That before the conservator shall turn back the affairs of the bank to its board of directors he shall cause to be published in a newspaper published in the city, town or county in which such bank is located, and if no newspaper is published in such city, town or county, in a newspaper to be selected by the Comptroller of the Currency published in the State in which the bank is located, a notice in form approved by the Comptroller, stating the date on which the affairs of the bank will be returned to its board of directors and that the said provisions of sec- 5 tion 206 will not be effective after fifteen days after such date; and on the date of the publication of such notice the conservator shall immediately send to every person who is a depositor in such bank under section 206 a copy of such notice by registered mail addressed to the last known address of such person as shown by the records of the bank, and the conservator shall send similar notice in like manner to every person making deposit in such bank under section 206 after the date of such newspaper publication and before the time when the affairs of the bank are returned to its directors. SEC. 209. Conservators appointed pursuant to the provisions of this title shall be subject to the provisions of and to the penalties prescribed by section 5209 of the Revised Statutes (U. S. C , Title 12, sec. 592); and sections 112, 113, 114, 115, 116 and 117 of the Criminal Code of the United States (U. S. C , Title 18, sees. 202, 203, 204, 205, 206 and 207), in so far as applicable, are extended to apply to contracts, agreements, proceedings, dealings, claims and controversies by or with any such conservator or the Comptroller of the Currency under the provisions of this title. SEC. 210. Nothing in this title shall be construed to impair in any manner any powers of the President, the Secretary of the Treasury, the Comptroller of the Currency, or the Federal Reserve Board. SEC. 211. The Comptroller of the Currency is hereby authorized and empowered, with the approval of the Secretary of the Treasury, to prescribe such rules and regulations as he may deem necessary in order to carry out the provisions of this title. Whoever violates any rule or regulation made pursuant to this section shall be deemed guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $5,000, or imprisoned not more than one year, or both. TITLE III SEC. 301. Notwithstanding any other provision of law, any national banking association may, with the approval of the Comptroller of the Currency and by vote of shareholders owning a majority of the stock of such association, upon not less than five days' notice, given by registered mail pursuant to action taken by its board of directors, issue preferred stock in such amount and with such par value as shall be approved by said Comptroller, and make such amendments to its articles of association as may be necessary for this purpose; but, in the case of any newly organized national banking association which has not yet issued common stock, the requirement of notice to and vote of shareholders shall not apply. No issue of preferred stock shall be valid until the par value of all stock so issued shall be paid in. SEC. 302. (a) The holders of such preferred stock shall be entitled to cumulative dividends at a rate not exceeding 6 per centum per annum, but shall not be held individually responsible as such holders for any debts, contracts, or engagements of such association and shall not be liable for assessments to restore impairments in the capital of such association as now provided by law with reference to holders of common stock. Notwithstanding any other provision of law, the holders of such preferred stock shall have such voting rights, and such stock shall be subject to retirement in such manner and on such terms and conditions, as may be provided in the articles of association with the approval of the Comptroller of the Currency. (b) No dividends shall be declared or paid on common stock until the cumulative dividends on the preferred stock shall have been paid in full; and, if the association is placed in voluntary liquidation or a conservator 173500—33 2 or a receiver is appointed therefor, no payments shall be made to the holders of the common stock until the holders of the preferred stock shall have been paid in full the par value of such stock plus all accumulated dividends. SEC. 303. The term "common stock" as used in this title means stock of national banking associations other than preferred stock issued under the provisions of this title. The term "capital" as used in provisions of law relating to the capital of national banking associations shall mean the amount of unimpaired common stock plus the amount of preferred stock outstanding and unimpaired; and the term "capital stock", as used in section 12 of the Act of March 14, 1900, shall mean only the amount of common stock outstanding. SEC. 304. If in the opinion of the Secretary of the Treasury any national banking association or any State bank or trust company is in need of funds for capital purposes either in connection with the organization or reorganization of such association, State bank or trust company or otherwise, he may, with the approval of the President, request the Reconstruction Finance Corporation to subscribe for preferred stock in such association, State bank or trust company, or to make loans secured by such stock as collateral, and the Reconstruction Finance Corporation may comply with such request. The Reconstruction Finance Corporation may, with the approval of the Secretary of the Treasury, and under such rules and regulations as he may prescribe, sell in the open market or otherwise the whole or any part of the preferred stock of any national banking association, State bank or trust company acquired by the Corporation pursuant to this section. The amount of notes, bonds, debentures, and other such obligations which the Reconstruction Finance Corporation is authorized and empowered to issue and to have outstanding at any one time under existing law is hereby increased by an amount sufficient to carry out the provisions of this section. TITLE IV SEC. 401. The sixth paragraph of Section 18 of the Federal Reserve Act is amended to read as follows: "Upon the deposit with the Treasurer of the United States, (a) of any direct obligations of the United States or (b) of any notes, drafts, bills of exchange, or bankers' acceptances acquired under the provisions of this Act, any Federal reserve bank making such deposit in the manner prescribed by the Secretary of the Treasury shall be entitled to receive from the Comptroller of the Currency circulating notes in blank, duly registered and countersigned. When such circulating notes are issued against the security of obligations of the United States, the amount of such circulating notes shall be equal to the face value of the direct obligations of the United States so deposited as security; and, when issued against the security of notes, drafts, bills of exchange and bankers' acceptances acquired under the provisions of this Act, the amount thereof shall be equal to not more than 90 per cent of the estimated value of such notes, drafts, bills of exchange and bankers' acceptances so deposited as security. Such notes shall be the obligations of the Federal reserve bank procuring the same, shall be in form prescribed by the Secretary of the Treasury, shall be receivable at par in all parts of the United States for the same purposes as are national bank notes, and shall be redeemable in lawful money of the United States on presentation at the United States Treasury or at the bank of issue. The Secretary of the Treasury is authorized and empowered to prescribe regulations governing the issuance, redemption, replacement, retirement and destruction of 6 such circulating notes and the release and substitution of security therefor. Such circulating notes shall be subject to the same tax as is provided by law for the circulating notes of national banks secured by 2 per cent bonds of the United States. No such circulating notes shall be issued under this paragraph after the President has declared by proclamation that the emergency recognized by the President by proclamation of March 6, 1933, has terminated, unless such circulating notes are secured by deposits of bonds of the United States bearing the circulation privilege. When required to do so by the Secretary of the Treasury, each Federal reserve agent shall act as agent of the Treasurer of the United States or of the Comptroller of the Currency, or both, for the performance of any of the functions which the Treasurer or the Comptroller may be called upon to perform in carrying out the provisions of this paragraph. Appropriations available for distinctive paper and printing United States currency or national bank currency are hereby made available for the production of the circulating notes of Federal reserve banks herein provided; but the United States shall be reimbursed by the Federal reserve bank to which such notes are issued for all expenses necessarily incurred in connection with the procuring of such notes and all other expenses incidental to their issue, redemption, replacement, retirement and destruction." this Act, or the application thereof to any person or circumstances, is held invalid, the remainder of the Act, and the application of such provision to other persons or circumstances, shall not be affected thereby. Approved March 9th 1933 8.30 p. m. On March 24, 1933, the President approved the following amendment to the emergency banking act providing for direct loans by Federal reserve banks to State banks and trust companies in certain cases: [PUBLIC—No. 4—73D CONGRESS] [H. R. 3757] AN ACT To provide for direct loans by Federal reserve banks to State banks and trust companies in certain cases, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That Title IV of the Act entitled ''An Act to provide relief in the existing national emergency in and for other purposes," approved March SEC. 402. Section 10 (b) of the Federal Reserve Act, banking, 9, 1933, is amended by adding at the end thereof the as amended, is further amended to read as follows: " S E C . 10(b). In exceptional and exigent circum- following new section: stances, and when any member bank has no further "SEC. 404. During the existing emergency in bankeligible and acceptable assets available to enable it to ing, or until this section shall be declared no longer obtain adequate credit accommodations through operative by proclamation of the President, but in no rediscounting at the Federal reserve bank or any other event beyond the period of one year from the date this method provided by this Act other than that provided section takes effect, any State bank or trust company by section 10 (a), any Federal reserve bank, under not a member of the Federal reserve system may apply rules and regulations prescribed by the Federal Reserve to the Federal reserve bank in the district in which it is Board, may make advances to such member bank on located and said Federal reserve bank, in its discietion its time or demand notes secured to the satisfaction of and after inspection and approval of the collateral and a such Federal reserve bank. Each such note shall bear thorough examination of the applying bank or trust interest at a rate not less than 1 per centum per annum company, may make direct loans to such State bank or higher than the highest discount rate in effect at such trust company under the terms provided in section Federal reserve bank on the date of such note. No 10 (b) of the Federal Reserve Act, as amended by secadvance shall be made under this section after March tion 402 of this Act: Provided, That loans may be made 3, 1934, or after the expiration of such additional period to any applying nonmember State bank or trust not exceeding one year as the President may prescribe/' company upon eligible security. All applications for shall be accompanied by the written apSEC. 403. Section 13 of the Federal Reserve Act, as such loans of the State banking department or commission amended, is amended by adding at the end thereof the proval of the State from which the State bank or trust comfollowing new paragraph: has received its charter and a statement from the " Subject to such limitations, restrictions and regula- pany said State banking department or commission that in tions as the Federal Reserve Board may prescribe, any its judgment said State bank or trust company is in a Federal reserve bank may make advances to any indi- sound The notes representing such loans vidual, partnership or corporation on the promissory shall becondition. as security for circulating notes issued notes of such individual, partnership or corporation under theeligible provisions of the sixth paragraph of section secured by direct obligations of the United States. 18 of the Federal Act, as amended by section Such advances shall be made for periods not exceeding 401 of this Act, toReseive the same extent as notes, drafts, 90 days and shall bear interest at rates fixed from time bills of exchange, or bankers' acceptances acquired to time by the Federal reserve bank, subject to the the provisions of the Federal Reserve Act. review and determination of the Federal Reserve Board. under During the time that such bank or tiust company is indebted in any way to a Feder il reserve bank it shall TITLE V be required to comply in all respects to the provisions SEC. 501. There is hereby appropriated, out of any of the Federal Reserve Act applicable to member money in the Treasury not otherwise appropriated, the State banks and the regulations of the Federal Reserve sum of $2,000,000, which shall be available for expend- Board issued thereunder: Provided, That in lieu of subiture, under the direction of the President and in his scribing to stock in the Federal reserve bank it shall discretion, for any purpose in connection with the maintain the reserve balance required by section 19 of the Federal Reserve Act during the existence of such carrying out of this Act. SEC. 502. The right to alter, amend, or repeal this indebtedness. As used in this section and in section Act is hereby expressly reserved. If any provision of 304, the term 'State bank or trust company' shall 7 include a b a n k or t r u s t company organized under t h e I1 by the President purusant to the authority conlaws of an;y State, Territory, or possession of t h e ferred by Section 5 (b) of the Act of October 6, United States, or t h e Canal Z o n e . " SEC. 2 (a). Section 304 of such Act of March 9, 1933, 1917, as amended, are approved and confirmed; is amended by adding after t h e first sentence thereof t h e and following new sentences: " N o t h i n g in this section shall "Whereas, said national emergency still be construed to authorize t h e Reconstruction Finance continues, and it is necessary to take further Corporation to subscribe for preferred stock in any State b a n k or t r u s t compan}^ if under t h e laws of t h e measures extending beyond March 9, 1933, in S t a t e in which said S t a t e b a n k or t r u s t company is order to accomplish such purposes: located t h e holders of such preferred stock are not "Now, therefore, I, Franklin D . Roosevelt, exempt from double liability. I n any case in wnich President of the United States of America, in under t h e laws of t h e State in which it is located a State b a n k or trust company is not p e r m i t t e d to issue view of such continuing national emergency and preferred stock exempt from double liability, or if by virtue of the authority vested in me by such laws permit such issue of preferred stock only by Section 5 (b) of the Act of October 6, 1917 unanimous consent of stockholders, t h e Reconstruction Finance Corporation is authorized, foi t h e purposes (40 Stat. L., 411) as amended by the Act of of this section, to purchase t h e legally issued capital March 9, 1933, do hereby proclaim, order, notes or debentures of such State b a n k or t r u s t direct and declare that all the terms and provicompany." sions of said Proclamation of March 6,1933, and (b) T h e second sentence of said section 304 is the regulations and orders issued thereunder amended to read as follows: " T h e Reconstruction Finance Corporation may, with t h e approval of the are hereby continued in full force and effect Secretary of the Treasury, a n d under such rules a n d until further proclamation by the President. regulations as he m a y prescribe, sell in t h e open " I n witness whereof I have hereunto set my m a r k e t t h e whole or any p a r t of t h e preferred stock, hand and have caused the seal of the United capital notes, or debentures of a n y national banking association, State b a n k or t r u s t company acquired by States to be affixed. t h e corporation p u r s u a n t to this section." "Done in the District of Columbia, this 9th Such section 304 is further a m e n d e d by adding at t h e day of March, in the Year of Our Lord One end thereof t h e following new sentence: (c) " A s used Thousand Nine Hundred and Thirty-three, and in this section, the t e r m 'State b a n k or t r u s t c o m p a n y ' shall include other banking corporations engaged in of the Independence of the United States the t h e business of industrial banking a n d under the super- One Hundredth and Fifty-seventh. vision of State banking d e p a r t m e n t s oi of t h e Comp[SEAL.] " F R A N K L I N D. ROOSEVELT troller of t h e C u r r e n c y . " " B y the President: Approved, March 24th, 1933. "CORDELL HULL " Secretary of State " On March 9, 1933, after the passage of the emergency banking act, the On March 10, 1933, the President issued the Continuation of President issued the following following Executive order: bank holiday proclamation continuing the "EXECUTIVE ORDER bank holiday: " B y virtue of the authority vested in me by " B Y THE PRESIDENT OF THE UNITED STATES section 5 (b) of the Act of October 6, 1917 (40 OF AMERICA Stat. L., 411) as amended by the Act of March 9, 1933, and by section 4 of the said " A PROCLAMATION Act of March 9, 1933, and by virtue of all other " Whereas, on March 6, 1933, I, Franklin D. authority vested in me, I hereby issue the Roosevelt, President of the United States of following Executive order. America, by Proclamation declared the exist" T h e Secretary of the Treasury is authorized ence of a national emergency and proclaimed a and empowered under such regulations as he bank holiday extending from Monday the 6th may prescribe to permit any member bank of day of March to Thursday the 9th of March, the Federal Reserve System and any other 1933, both dates inclusive, in order to prevent banking institution organized under the laws of the export, hoarding or earmarking of gold or the United States, to perform any or all of their silver coin, or bullion or currency, or specula- usual banking functions, except as otherwise tion in foreign exchange; and prohibited. " T h e appropriate authority having imme"Whereas, under the Act of March 9,1933, all Proclamations heretofore or hereafter issued diate supervision of banking institutions in 8 each State or any place subject to the jurisdiction of the United States is authorized and empowered under such regulations as such authority may prescribe to permit any banking institution in such State or place, other than banking institutions covered by the foregoing paragraph, to perform any or all of their usual banking functions, except as otherwise prohibited. "All banks which are members of the Federal Reserve System, desiring to reopen for the performance of all usual and normal banking functions, except as otherwise prohibited, shall apply for a license therefor to the Secretary of the Treasury. Such application shall be filed immediately through the Federal reserve banks. The Federal reserve bank shall then transmit such applications to the Secretary of the Treasury. Licenses will be issued by the Federal reserve bank upon approval of the Secretary of the Treasury. The Federal reserve banks are hereby designated as agents of the Secretary of the Treasury for the receiving of application and the issuance of licenses in his behalf and upon his instructions. "Until further order, no individual, partnership, association, or corporation, including any banking institution, shall export or otherwise remove or permit to be withdrawn from the United States or any place subject to the jurisdiction thereof any gold coin, gold bullion, or gold certificates, except in accordance with regulations prescribed by or under license issued by the Secretary of the Treasury. " N o permission to any banking institution to perform an}7 banking functions shall authorize such institution to pay out any gold coin, gold bullion or gold certificates except as authorized by the Secretary of the Treasury, nor to allow withdrawal of any currency for hoarding, nor to engage in any transaction in foreign exchange except such as may be undertaken for legitimate and normal business requirements, for reasonable traveling and other personal requirements, and for the fulfillment of contracts entered into prior to March 6, 1933 " Every Federal reserve bank is authorized and instructed to keep itself currently informed as to transactions in foreign exchange entered into or consummated within its district and shall report to the Secretary of the Treasury all transactions in foreign exchange which are prohibited. "The " F R A N K L I N D. ROOSEVELT. WHITE HOUSE, "March 10, 1933." On March 11, 1933, the President issued the following statement to the press: " I am glad to be able to Statement by announce that technical diffithe President culties which operated to delay the opening of banks, both State and national, have finally substantially been overcome by tireless work on the part of the officials of the Treasury and the Federal Reserve System,* and that a definite program has been arranged consisting of successive steps by which banks throughout the country will be opened progressively on Monday, Tuesday, and Wednesday mornings. " T h e Secretary of the Treasury will issue licenses to banks which are members of the Federal Reserve System, whether national bank or State, located in each of the twelve Federal reserve bank cities, to open Monday morning. "So also the State authorities having supervision over State banks which are not members of the Federal Reserve System will be asked to permit any such State institutions located in any one of the twelve Federal reserve bank cities to open for business on Monday morning if in their judgment they deem it wise to do so. "Under this progressive plan, banks located in any city having an active, recognized clearing house association, of which there are 250 cities, will receive licenses for reopening on Tuesday morning, and banks located elsewhere will receive their licenses permitting reopening for Wednesday. "Time is thus afforded for the necessary shipments of currency provided under the Emergency Bank Act from reserve bank centers to clearing-house cities and banks in the smaller communities. "There were enormous technical problems to be solved before these mechanics could be worked out and before the actual currency could be in the bank when the doors opened. " T h e Constitution has laid upon me the duty of conveying the condition of the country to the Congress assembled at Washington. I believe I have a like duty to convey to the people themselves a clear picture of the situation at Washington itself whenever there is danger of any confusion as to what the Government is undertaking. " T h a t there may be a clear understanding as to just what has taken place during the last two days since the passage of this Act it is my intention, over the national radio networks, at ten o'clock Sunday evening, to explain clearly and in simple language to all of you just what rush by a large portion of our population to turn bank deposits into currency or gold—a rush so great that the soundest banks could not get enough currency to meet the demand. The reason for this was that on the spur of the moment it was, of course, impossible to sell perfectly sound assets of a bank and convert them into cash except at panic prices far below their real value. " B y the afternoon of March 3 scarcely a On March 12, 1933, the President delivered | bank in the country was open to do business. Proclamations temporarily closing them in Address by the o v e r t h e r a d i o > a t 1 0 P- m -> President the following address relative whole or in part had been issued by the Governors in almost all the States. to the banking situation: " I t was then that I issued the proclamation " I want to talk for a few minutes with the providing for the nation-wide bank holiday, and people of the United States about banking— this was the first step in the Government's rewith the comparatively few who understand construction of our financial and economic fabric. " T h e second step was the legislation the mechanics of banking, but more particularly with the overwhelming majority who use promptly and patriotically passed by the banks for the making of deposits and the Congress confirming my proclamation and drawing of checks. I want to tell you what broadening my powers so that it became has been done in the last few days, why it was possible in view of the requirement of time to done, and what the next steps are going to be. extend the holiday and lift the ban of that I recognize that the many proclamations from holiday gradually. This law also gave authorState capitals and from Washington, the legisla- ity to develop a program of rehabilitation of tion, the Treasury regulations, etc., couched our banking facilities. I want to tell our for the most part in banking and legal terms, citizens in every part of the Nation that the should be explained for the benefit of the aver- National Congress—Republicans and Demoage citizen. I owe this in particular because of crats alike—showed by this action a devotion the fortitude and good temper with which to public welfare and a realization of the emereverybody has accepted the inconvenience and gency and the necessity for speed that it is hardships of the banking holiday. I know difficult to match in our history. that when you understand what we in Wash" T h e third stage has been the series of ington have been about I shall continue to regulations permitting the banks to continue have your cooperation as fully as I have had their functions to take care of the distribution your sympathy and help during the past week. of food and household necessities and the pay"First of all, let me state the simple fact ment of pay rolls. "This bank holiday, while resulting in many that when you deposit money in a bank the bank does not put the money into a safe de- cases in great inconvenience, is affording us the posit vault. I t invests your money in many opportunity to supply the currency necessary different forms of credit—bonds, commercial to meet the situation. No sound bank is a paper, mortgages and many other kinds of dollar worse off than it was when it closed its loans. In other words, the bank puts your doors last Monday. Neither is any bank money to work to keep the wheels of industry which may turn out not to be in a position for and of agriculture turning around. A com- immediate opening. The new law allows the paratively small part of the money you put twelve Federal reserve banks to issue additional into the bank is kept in currency—an amount currency on good assets and thus the banks which in normal times is wholly sufficient to which reopen will be able to meet every legiticover the cash needs of the average citizen. mate call. The new currency is being sent out In other words, the total amount of all the by the Bureau of Engraving and Printing in currency in the country is only a small fraction large volume to every part of the country. I t is sound currency because it is backed by actual, of the total deposits in all of the banks. " W h a t , then, happened during the last few good assets. days of February and the first few days of " A question you will ask is this: Why are all March? Because of undermined confidence the banks not to be reopened at the same time? on the part of the public, there was a general' The answer is simple. Your Government does has been achieved and the sound reasons which I underlie this declaration to you. " T h e fact that banks will be opened under this plan does not mean that anyone should draw the inference that the banks opening Monday are in any different condition as to soundness from the banks licensed to open on Tuesday or Wednesday or any subsequent day." not intend that the history of the past few years shall be repeated. We do not want and will not have another epidemic of bank failures. " A s a result we start to-morrow, Monday, with the opening of banks in the twelve Federal reserve bank cities—those banks which on first examination by the Treasury have already been found to be all right. This will be followed on Tuesday by the resumption of all their functions by banks already found to be sound in cities where there are recognized clearing houses. T h a t means about 250 cities of the United States. " O n Wednesday and succeeding days banks in smaller places all through the country will resume business, subject, of course, to the Government's physical ability to complete its survey. I t is necessary that the reopening of banks be extended over a period in order to permit the banks to make applications for necessary loans, to obtain currency needed to meet their requirements and to enable the Government to make common-sense check-ups. "Let me make it clear to you that if your bank does not open the first day you are by no means justified in believing that it will not open. A bank that opens on one of the subsequent days is in exactly the same status as the bank that opens to-morrow. " I know that many people are worrying about State banks not members of the Federal reserve system. These banks can and will receive assistance from member banks and from the Reconstruction Finance Corporation. "These State banks are following the same course as the national banks except that they get their licenses to resume business from the State authorities, and these authorities have been asked by the Secretary of the Treasury to permit their good banks to open up on the same schedule as the national banks. I am confident that the State banking departments will be as careful as the National Government in the policy relating to the opening of banks and will follow the same broad policy. " I t is possible that when the banks resume a very few people who have not recovered from their fear may again begin withdrawals. Let me make it clear that the banks will take care of all needs and it is my belief that hoarding during the past week has become an exceedingly unfashionable pastime. " I t needs no prophet to tell you that when the people find that they can get their money— that they can get it when they want it for all legitimate purposes—the phantom of fear will soon be laid. People will again be glad to have their money where it will be safely taken care of and where they can use it conveniently at any time. I can assure you that it is safer to keep your money in a reopened bank than under the mattress. " T h e success of our whole great national program depends, of course, upon the cooperation of the public—on its intelligent support and use of a reliable system. "Remember that the essential accomplishment of the new legislation is that it makes it possible for banks more readily to convert their assets into cash than was the case before. More liberal provision has been made for banks to borrow on these assets at the reserve banks and more liberal provision has also been made for issuing currency on the security of these ood assets. This currency is not fiat currency, t is issued only on adequate security—and every good bank has an abundance of such security. "One more point before I close. There will be, of course, some banks unable to reopen without being reorganized. The new law allows the Government to assist in making these reorganizations quickly and effectively and even allows the Government to subscribe to at least a part of new capital which may be required. " I hope you can see from this elemental recital of what your Government is doing that there is nothing complex or radical in the process. " W e had a bad banking situation. Someof our bankers had shown themselves either incompetent or dishonest in their handling of the people's funds. They had used the money entrusted to them in speculations and unwise loans. This was, of course, not true in the vast majority of our banks, but it was true in enough of them to shock the people for a time into a sense of insecurity and to put them into a frame of mind where they did not differentiate, but seemed to assume that the acts of a comparative few had tainted them all. I t was the Government's job to straighten out this situation and do it as quickly as possible—and the job is being performed. " I do not promise you that every bank will be reopened or that individual losses will not be suffered, but there will be no losses that possibly could be avoided; and there would have been more and greater losses had we continued to drift. I can even promise you salvation for some, at least, of the sorely pressed banks. We shall be engaged not merely in reopening sound banks but in the creation of sound banks through reorganization. f 11 " I t has been wonderful to me to catch the note of confidence from all over the country. I can never be sufficiently grateful to the people for the loyal support they have given me in their acceptance of the judgment that has dictated our course, even though all our processes may not have seemed clear to them. " After all, there is an element in the readjustment of our financial system more important than currency, more important than gold, and that is the confidence of the people. " Confidence and courage are the essentials of success in carrying out our plan. You people must have faith; you must not be stampeded by rumors or guesses. Let us unite in banishing fear. We have provided the machinery to restore our financial system; it is up to you to support and make it work. " I t is your problem no less than it is mine. Together we can not fail." I The Secretary of the Treasury, under the authority conferred upon him by the President's proclamations declaring and the^ continuing the bank holiday, the Treasury issued the following regulations during the period March 6, 1933, to March 30, 1933: REGULATION NO. 1 (MARCH 6) I All Federal reserve banks and all other banking institutions are authorized to make change by the exchange of currency and/or coin of various denominations for an exactly equal amount of currency and/or coin of other denominations, but no gold or gold certificates shall be paid out in making change. REGULATION NO. 2 (MARCH 6) All banking institutions may allow their customers free access to the safety deposit boxes and safes rented to such customers. REGULATION NO. 3 (MARCH 6) On March 18, 1933, the President issued the All banking institutions may upon request return intact and without restriction all cash, checks, and following Executive order: other items delivered for deposit or collection which were received after the last closing of business hours and have not been entered on the books of such " B y virtue of the authority vested in me by banking institution. "EXECUTIVE ORDER section 5(b) of the Act of October 6, 1917 (40 REGULATION NO. 4 (MARCH 6) Stat. L., 411) as amended by the Act of All banking institutions may continue, in accordMarch 9, 1933, and by section 4 of the said Act ance with usual practice, to cash checks drawn on the of March 9, 1933, and by virtue of all other Treasurer of the United States, provided that no gold or gold certificates shall be paid out. authority vested in me, I hereby issue the following Executive order. REGULATION NO. 5 (MARCH 6) 2 "Whenever the appropriate authority having Any banking institution may accept payments in immediate supervision of any banking institu- cash or any other form acceptable to it on account or tion located in any State or place subject to the in settlement of obligations payable at or to such jurisdiction of the United States, which is a institution. member of the Federal Reserve System and REGULATION NO. 6 (MARCH 6) 3 which has not been licensed by the Secretary of Any banking may handle and collect • the Treasury to resume its usual banking drafts or other institution documents in connection with the functions, shall deem it necessary or advisable shipment, transportation or delivery of food or feed in order to conserve the assets of such banking products, may pay out or permit the withdrawal of institution for the benefit of the depositors or such amounts of currency as shall be necessary in the of such banking institution in connection other creditors, such authority may, in accord- judgment with such shipment, transportation or delivery of ance with the provisions of the applicable laws food or feed products, and may perform such other of such State or place, appoint such appropriate banking functions as may be essential to the shipment, official as may be authorized under such laws transportation or delivery of food or feed products, provided, however, that no banking institution shall to conserve the assets of such banking institu- pay out or permit the withdrawal of any gold or gold tion pending further disposition of its business certificates. as provided by such laws. REGULATION NO. 7 (MARCH 6) 4 "This order shall not authorize any such member bank to reopen for the performance of | Deposits heretofore received by any banking institution pursuant to agreement or legislative authority usual and normal functions until it shall have I providing for segregation and for repayment without received a license from the Secretary of the restriction may be paid on demand. Any banking inTreasury as provided in Executive Order of stitution which was lawfully engaged in the business of March 10, 1933. 2 " F R A N K L I N D. " T H E WHITE HOUSE, "March 18, 1933." ROOSEVELT. See interpretation No. 4 (Mar. 8), p. 15. 3 See interpretations No. 1 (Mar. 7), No. 6 (Mar. 8), and No. 13 (Mar. 21), p. 15. Regulation No. 6 revoked by regulation No. 28 (Mar. 18), p. 14. « See regulations No. 15 (Mar. 8), p. 13; and No. 27 (Mar. 18), p. 14. 12 receiving deposits prior to March 6, 1933, m a y create special t r u s t accounts for t h e receipt of new deposits which shall be subject to w i t h d r a w a l on d e m a n d without any restriction or limitation a n d shall be k e p t separately in cash or on deposit in Federal reserve b a n k s or invested in obligations of t h e United States. Federal reserve b a n k s m a y open special accounts on their books for their m e m b e r banks a n d temporarily for nonmember banks a n d m a y receive in such special accounts t h e proceeds of new deposits received by such banking institutions. I n making deposits with t h e Federal reserve b a n k p u r s u a n t to this regulation t h e depositing b a n k shall in t h e case of each deposit indicate to t h e Federal reserve b a n k b y symbol or otherwise t h a t t h e funds so deposited represent new deposits m a d e under this regulation. Upon receipt of such deposits such Federal reserve b a n k shall credit t h e same in t h e special account of t h e depositing b a n k herein provided for a n d shall hold t h e same solely for r e p a y m e n t to such bank. Federal reserve banks shall p e r m i t t h e withdrawal of any p a r t or all of such new deposits by t h e depositing bank without restriction provided t h a t t h e depositing bank shall in such order or request for withdrawal indicate to t h e Federal reserve b a n k by symbol or otherwise t h a t such withdrawal is to be m a d e from such special account, provided however t h a t no banking institution shall pay out or p e r m i t t h e withdrawal of any gold or gold certificates. REGULATION N O . 8 (MARCH 7) Where settlement for checks charged by drawee institutions to t h e drawers' accounts on its books on or before March 4, 1933, is incomplete, settlement m a y be completed where such settlement does not involve t h e p a y m e n t of money or currency. Federal reserve banks may carry on such functions as may be necessary to facilitate transactions authorized by this regulation. In order to enable member banks of the Federal Reserve System to meet the needs of their respective communities to the extent authorized by this regulation Federal reserve banks may make advances to such member banks under the conditions set forth in section 10 (b) of the Federal reserve act as amended by the act of March 9, 1933, and in accordance with authority granted by the Federal Reserve Board. In addition, in order to enable individuals, partnerships and corporations to meet their immediate pay roll requirements, Federal reserve banks may make temporary advances to such individuals, partnerships and corporations on their promissory notes secured by direct obligations of the United States in accordance with authority granted by the Federal Reserve Board. R E G U L A T I O N N O . 11 ( M A R C H 7) Any b a n k having a branch in a foreign country m a y deposit collateral in the United States to secure advances to such branch in a foreign country, provided such transaction does not involve a n y transfer of credit from t h e United States to a foreign country, a n d any b a n k having a b r a n c h in an insular possession of t h e United States m a y deposit United States G o v e r n m e n t securities or other collateral for a similar purpose when under t h e President's proclamation advances of local currency in t h e insular possession m a y lawfully be made. R E G U L A T I O N N O . 12 ( M A R C H 7) 6 Clearing house associations a n d other associations organized to provide an adequately secured m e d i u m of t e m p o r a r y exchange are hereby p e r m i t t e d to issue certificates against sound assets of banking institutions, R E G U L A T I O N N O . 9 ( M A R C H 7) such certificates to be deliverable by each institution Any banking institution m a y deliver to t h e person to its creditors a n d depositors on a pro r a t a basis, entitled thereto properly identified documents and provided, however, t h a t no such certificates shall be issued before Friday, March 10, 1933, without t h e consecurities held by such institution for safekeeping. sent of t h e Secretary of t h e Treasury addressed to t h e R E G U L A T I O N N O . 10 (MARCH 7, AS A M E N D E D ON M A R C H 10 clearing house or other association proposing to issue such certificates, a n d further provided t h a t this perBY ADDITION OF M A T T E R I N ITALICS) 5 mission m a y be revoked in t h e event t h a t a national _ Any national or State banking institution m a y exer- plan to meet t h e existing emergency is proposed by t h e cise its usual banking functions to such extent as its Secretary of t h e Treasury if in his opinion t h e success situation shall p e r m i t a n d as shall be absolutely neces- of such plan would be inconsistent with t h e operation sary to meet t h e needs of its c o m m u n i t y for food, medi- of t h e certificate plan. cine, other necessities of life, for t h e relief of distress, for R E G U L A T I O N N O . 13 ( M A R C H 7) 7 t h e p a y m e n t of usual salaries a n d wages, for necessary current expenditures for t h e purpose of maintaining emAny banking institution lawfully engaged in t h e ployment, and for other similar essential purposes. Banking institutions may carry out such transactions as business of acting as trustee, executor, administrator, may be necessary to aid banking institutions in other registrar of stocks and bonds, transfer agent, guardian communities to meet the necessities set forth above: Pro- of estates, assignee, receiver, committee of estates of vided, however, t h a t (1) every precaution shall be t a k e n lunatics, or in a n y other fiduciary capacity m a y conto p r e v e n t hoarding or t h e unnecessary withdrawal of tinue to t r a n s a c t such business in t h e n o r m a l a n d usual currency; (2) no State banking institution shall engage m a n n e r ; provided t h a t in t h e conduct of said business, in a n y transaction under this regulation which is in vio- except as m a y be p e r m i t t e d by o t h e r regulations of t h e lation of S t a t e or Federal law or of any regulation issued Secretary of t h e Treasury, such banking institution thereunder; (3) no national banking association shall shall not pay out or permit t h e withdrawal of coin or engage in a n y transaction under this section which is in currency nor w i t h d r a w any t r u s t or fiduciary funds on violation of a n y Federal law or of a n y order or regula- deposit with a n y other d e p a r t m e n t of t h e b a n k . tion issued by t h e Comptroller of t h e Currency; a n d (4) R E G U L A T I O N N O . 14 ( M A R C H 7) no gold or gold certificates shall be paid out. Each banking^ institution and its directors a n d officers will be Federal reserve banks are authorized to conduct held strictly accountable for faithful compliance with their normal a n d usual operations as fiscal agents of t h e spirit a n d purpose as well as t h e letter of this t h e United States in transactions pertaining to t h e exregulation. change of obligations of t h e United States, such as « See interpretations No. 2 (Mar. 7), No. 5 (Mar. 8), No. 7 (Mar. 8), e See statement by the Secretary of the Treasury, (Mar. 9,) p. 16; and No, 9 (Mar. 14), and No. 13 (Mar. 21), p 15. Regulation No. 10 revoked interpretation No. 11 (Mar. 16), p. 15. 7 by regulation No, 28 (Mar. 18), p. 14. Superseded by regulation No. 31 (Mar. 30), p. 14. 13 that no such institution shall pay out any gold coin, gold bullion or gold certificates, unless authorized by the Secretary of the Treasury, nor allow withdrawal of any currency for hoarding, nor engage in any transaction in foreign exchange except such as may be underR E G U L A T I O N N O . 15 ( M A R C H 8) taken for legitimate and normal business requirements, for reasonable traveling and other personal requireThe permission granted in regulation No. 7, that ments, and for fulfillment of contracts entered into deposits heretofore received by any banking institu- prior to March 6, 1933. tion pursuant to agreement or legislative authority providing for segregation and repayment without R E G U L A T I O N N O . 22 ( M A R C H 11, A S A M E N D E D M A R C H 13 restriction may be paid on demand, includes any bank BY A D D I T I O N O F M A T T E R I N I T A L I C S ) in which any such deposits have been redeposited by or on behalf of the receiving bank in accordance with All Federal land banks, Federal intermediate credit such agreement or legislative authority. banks, joint stock land banks, Federal home loan banks, corporations organized under section 25{a) of the Federal reserve act, regional agricultural credit R E G U L A T I O N N O . 16 ( M A R C H 10) corporations and the Reconstruction Finance CorporaAll banking institutions are hereby authorized to tion are hereby permitted to open at 9 o'clock, a. m., take such steps and carry through such transactions as Monday, March 13, 1933, to perform their usual may be necessary to complete for their own account, or banking functions except to the extent prohibited by the account of their customers, payment on any sub- the Executive order of the President of the United scriptions for Treasury bills of the United States for States, issued March 10, 1933, by Federal or State which payment was due on March 6, 1933. law, or as may hereafter be limited or prohibited by regulations promulgated by the Secretary of the R E G U L A T I O N N O . 17 ( M A R C H 10) Treasury. permission, as to each of the foregoing bankAny banking institution may, when the owners ingThis institutions, may be revoked in whole or in part consent thereto, pay checks issued prior to March 6, by the Secretary of the Treasury at any time, and is 1933, and received in due course of business by the as to each such institution upon the express drawee banking institution, by charging the amounts granted that such institution shall deliver, within thereof to the accounts of the drawers and crediting condition thirty days from the date hereof, to the Treasurer of such amounts to the accounts of such owners on the the United States or to a Federal reserve bank or a books of the drawee banking institution. Federal reserve branch bank of the district in which it is located, all gold coin, gold bullion and gold certifiR E G U L A T I O N N O . 18 ( M A R C H 11) cates owned by it, and receive payment in credit or All banking institutions are hereby authorized to in other forms of coin or in currency. subscribe and pay for any United States Government R E G U L A T I O N N O . 23 ( M A R C H 12) obligations which may be offered for subscription and sale by the Secretary of the Treasury. Federal reserve No banking shall permit any withdrawal banks may carry on such functions as may be necessary by any person institution when such institution, acting in good to facilitate such transactions as are authorized by this faith, shall deem that the withdrawal is intended for regulation. Any banking institution, before permitting All Federal reserve banks are authorized to redeem hoarding. the withdrawal of large or unusual amounts of currency, matured obligations of the United States and to cash may from the person requesting such withmatured coupons provided no gold or gold certificates drawalrequire a full statement under oath of the purpose for shall be paid out. which the currency is requested. making exchange of denominations, exchanging coupon for registered bonds, and vice versa, receiving registered bonds for transfer and effecting C. P. D. transactions. R E G U L A T I O N N O . 19 ( M A R C H 11) R E G U L A T I O N N O . 24 ( M A R C H 12) Except as otherwise prohibited by law, banking All banking institutions may cash official drafts institutions may exercise their normal and usual func- drawn upon the Secretary of State for payment of saltions in permitting substitution for or release of collateral held by them, provided other collateral or cash of aries, traveling and other contingent expenses but not equal or greater value is received in exchange therefor. for personal account, and remit the amounts thereof to the banks from which the drafts are received, provided that no gold or gold certificates shall be paid out. R E G U L A T I O N N O . 20 ( M A R C H 11) R E G U L A T I O N N O . 25 ( M A R C H J3) 8 All Federal reserve banks and their branches and agencies may open March 13, 1933, and may remain Pending the determination by the Treasury Departopen for the performance of all usual and normal banking functions except as prohibited by the Execu- ment of a suitable procedure for licensing the delivery tive order issued by the President on March 10, 1933, of gold for use in trade, profession or art, Federal and any further orders or regulations hereafter issued. reserve banks are hereby authorized to deliver upon request therefor gold in amounts deemed by such bank to be reasonably required for legitimate and customary R E G U L A T I O N N O . 21 ( M A R C H 11) uses in trade, profession or art, provided such request Banking institutions which are not members of the is accompanied by affidavit of the person requesting Federal Reserve System or organized under the laws of such gold stating the amount of unmanufactured gold the United States and which are not under the immedi- on hand and the facts making it necessary to obtain ate supervision of any State authority may, on and such gold for the purpose of maintaining employment. after March 13, 1933, carry on their normal and usual functions, except as otherwise prohibited and except 'Revoked b y gold regulations of A p r . 29,1933. 14 ^ ' A l l b a n k s licensed to open for usual and normal | rency in the case of national banks, or by t h e a p p r o functions are p e r m i t t e d to carry out any transaction priate State officials, in the case of State m e m b e r b a n k s ; necessary to complete t h e delivery of any gold author- j provided, however, t h a t no such banking institution ized by any Federal reserve bank to be delivered in I shall reopen for t h e performance of its usual a n d normal functions until it shall have received a license accordance with such request. from t h e Secretary of the Treasury. R E G U L A T I O N N O . 26 (MARCH 13) This regulation shall not authorize any transaction with respect to the export or paying out of gold or All banking institutions m a y issue drafts transferring gold certificates, withdrawal of currency for hoarding credits from any place in t h e United States to any other or transactions in foreign exchange prohibited or replace in t h e United States and from any place in t h e stricted by the Executive order of March 10, 1933. United States to any place in a foreign country in connection with p a y m e n t s for domestic and foreign patent, R E G U L A T I O N N O . 31 (MAR. 30) n t r a d e - m a r k a n d design application fees, and in p a y m e n t Any banking institution which is a m e m b e r of t h e for domestic a n d foreign p a t e n t and trade-mark taxes and renewals. No gold or gold certificates shall be Federal Reserve System and is not licensed to perform paid out, withdrawn, or exported under this regulation. usual banking functions, b u t which is duly authorized to engage in t h e business of acting as trustee, executor, REGULATION NO. 27 (MARCH 18; ISSUED U N D E R THE administrator, registrar of stocks and bonds, transfer AUTHORITY OF T H E EXECUTIVE ORDER OF M A R C H 10 agent, guardian of estates, assignee, receiver, committee AS W E L L AS U N D E R THE PROCLAMATIONS REFERRED of estates of lunatics, or in any other fiduciary capacity, m a y t r a n s a c t such business in t h e normal a n d usual TO O N PAGE 11)9 Any S t a t e banking institution which is a member of m a n n e r and m a y make p a y m e n t s on account of t h e t h e Federal Reserve System and which is not licensed principal or income of t r u s t or other fiduciary funds by t h e Secretary of t h e Treasury to reopen for the per- to t h e persons entitled t h e r e t o ; provided, t h a t , except formance of usual banking functions may, witli the j to t h e extent permitted by other emergency banking approval of t h e a p p r o p r i a t e State authority having regulations, no such banking institution shall withdraw immediate supervision of such banking institution, or p a y out any t r u s t or other fiduciary funds on deposit permit withdrawals by depositors and make payments with any other d e p a r t m e n t of such banking institution to creditors of such percentage of the amounts due to or m a k e any other p a y m e n t in connection with any t h e m (not exceeding 5 per cent) as it may determine, trust or other fiduciary funds which would operate to provided t h a t a t or before t h e time of such withdrawal discharge, as a whole or in p a r t , any indebtedness, as or p a y m e n t it shall set aside and make available for distinguished from any t r u s t or other fiduciary d u t y , of such purpose a fund for t h e benefit of and sufficient to such banking institution. This regulation supersedes emergency b a n k i n g regupay to all depositors a n d creditors the percentage so lation N o . 13 of M a r c h 7, 1933, which is hereby revoked. determined. This regulation shall not in any way affect any right R E G U L A T I O N N O . 32 (MAR. 30) created by Regulation No. 7 nor limit or restrict any Any State b a n k which is a m e m b e r of t h e Federal p a y m e n t thereby authorized. Any right to authorize withdrawals or payments Reserve System, a n d is not licensed by t h e Secretary under t h e t e r m s of this regulation shall terminate upon of the Treasury to perform usual b a n k i n g functions, t h e a p p o i n t m e n t of any conservator, receiver or other m a y permit withdrawals of deposits which are lawfully a p p r o p r i a t e S t a t e official taking charge of the affairs of secured by collateral; provided, t h a t such w i t h d r a w a l s are (a) permissible under applicable law, (b) duly such banking institutions. authorized by t h e Board of Directors of such b a n k , R E G U L A T I O N N O . 28 (MARCH 18) 10 upon such t e r m s with respect to t h e release of collateral as will fully p r o t e c t all depositors a n d other creditors After t h e close of business on March 18, 1933, Treas- against t h e creation of any preferences, a n d (c) a p ury regulation No. 6 and Treasury regulation No. 10, proved by t h e a p p r o p r i a t e S t a t e a u t h o r i t y h a v i n g as amended, shall be without force or effect to authorize supervision of such bank. any banking transaction therein referred to. Any such b a n k is authorized to carry on such usual banking functions as m a y be essential to allow t h e R E G U L A T I O N N O . 29 (MAR. 21) withdrawals p e r m i t t e d by this regulation, subject to Any banking institution wrhich is a member of t h e the provisions a n d restrictions above set forth a n d exFederal Reserve System and is not licensed to perform cept as otherwise prohibited. usual banking functions m a y rediscount or pledge with another banking institution renewals of notes which S U P P L E M E N T A R Y R E G U L A T I O N A P P L I C A B L E TO F E D E R A L R E S E R V E B A N K S (MARCH 7) were previously rediscounted or pledged with such other banking institution. REGULATION NO. 30 (MAR. 28) Banking institutions which are members of the Federal Reserve System and of which actual possession and control h a v e been taken (a) by conservators appointed p u r s u a n t to t h e act of March 9, 1933, or (b) by a p p r o p r i a t e State officials appointed pursuant to State law. as p e r m i t t e d by the President's Executive Order of March 18, 1933, are permitted to transact such limited banking functions as may be authorized in accordance with law by t h e Comptroller of the Cur9 See interpretation N o . 12 ( M a r . 20), p . 15. w See i n t e r p r e t a t i o n N o . 13 ( M a r . 21), p . 15. Under the authority conferred upon him by the President's proclamation of March 6, 1933, declaring a bank holiday, the Secretary of the Treasury on March 7, 1933, also issued the following regulation: E a c h Federal reserve b a n k m a y (1) m a k e available t o its m e m b e r b a n k s which, in t h e j u d g m e n t of t h e F e d e r a l reserve bank, are complying strictly with t h e spirit and purpose as well as t h e letter of t h e regulations 11 Supersedes regulation N o . 13 ( M a r . 7), p . 12. 15 issued by the Secretary of the Treasury pursuant to the President's proclamation declaring a bank holiday, such limited amounts of coin and/or currency (other than gold or gold certificates) as shall be absolutely necessary in order to enable such member banks to exercise the restricted functions permitted by such regulations, (2) extend to each such member bank such limited amounts of discounts, advancements and accommodations as shall be absolutely necessary for the exercise of such restricted functions, and (3) make transfers of credit on its books for such restricted purposes between the accounts of such member banks and/or nonmember clearing banks which, in the judgment of the Federal reserve bank, are complying strictly with the spirit and purpose as well as the letter of such regulations; provided, however, that before granting any such discounts, advancements or accommodations or making such limited payments of coin and/or currency, the Federal reserve bank shall first require the member bank, (a) to inform the Federal reserve bank of the amounts of coin and currency which it has on hand, (6) to inform the Federal reserve bank of the circumstances giving rise to the need for additional coin and/or currency, and (c) to deliver to the Federal reserve bank in exchange for other forms of coin and/or currency or for credit on its books all gold and gold certificates held by such member bank in its own right. The following are interpretations issued by . . .. the Secretary of the Treasury T by the Secretary from March 7, 1933, to March of the Treasury 2 1 , 1933, of certain of the provisions of the regulations set forth above: INTERPBETATION NO. 1 (MARCH 7) INTERPRETATION NO. 5 (MARCH 8) Regulation No. 10 issued under the President's proclamation is interpreted to authorize payments for fertilizer and for vegetable and agricultural seeds for spring planting, where such payments are absolutely necessary and where the seed and/or fertilizer are for immediate use. INTERPRETATION NO. 6 (MARCH 8) "Food or feed products" as used in regulation No. 6 may be construed as including whole grain if such grain is intended for processing or consumption in the immediate future. INTERPRETATION NO. 7 (MARCH 8) 1S Release of funds for purchase of cotton where absolutely necessary to maintain operation is interpreted as "necessary current expenditures for the purpose of maintaining employment and for other similar essential purposes." INTERPRETATION NO. 8 (MARCH 8) Regarding release of funds for purchase of internal revenue stamps in connection with cigar manufacturing. Cigar manufacturing company should be referred to collector of internal revenue. INTERPRETATION NO. 9 (MARCH 14) Regulation No. 10 issued under the President's proclamation is interpreted to authorize payments for nursery stock where such payments are absolutely necessary to prevent destruction of stock in transit on March 6, 1933, or prepared for and awaiting shipment on March 6, 1933, under bona fide commitments. INTERPRETATION NO. 10 (MARCH 14) You are authorized to inform all banking institutions and others concerned that the term "food or feed prodThe term "mortgage loan companies," as used in ucts" in regulation No. 6 under the President's proc- interpretation No. 3, is interpreted to include all lamation promulgated March 6 may be interpreted corporations whose principal business consists of the investment in, sale and purchase of real estate mortto include livestock on the way to slaughter. gages and mortgage certificates guaranteed by such corporations. INTERPRETATION NO. 2 (MARCH 7) Regulation No. 10 of March 7 under the President's INTERPRETATION NO. 11 (MARCH 16) proclamation of March 6 is held to authorize payments Regulation No. 12 is not to be construed as permiton account of pensions, workmen's compensation disting a banking institution, open for normal and usual ability insurance, relief and unemployment. functions under license of the Secretary of the Treasury, to require depositors to accept clearing-house cerINTERPRETATION NO. 3 (MARCH 7) 12 tificates or other evidences of claims against assets for The term " other corporations, partnerships, associa- all or any part of any withdrawal requested. tions or persons engaged in the business of receiving INTERPRETATION NO. 12 (MARCH 20) deposits, making loans," as used in the President's proclamation of March 6 declaring a bank holiday, is Regulation No. 27 is interpreted to permit any bankheld to include brokers, pawn brokers, industrial loan ing institution acting thereunder to carry on such usual companies, mortgage loan companies, chattel loan banking functions as may be essential to permit recompanies, personal finance companies, automobile stricted withdrawals and payments authorized by such finance companies and all other persons, firms and cor- regulation, subject to all of the provisions and restricporations engaged in the business of making loans of tions therein contained and except as otherwise proany kind, secured or unsecured. hibited. INTERPRETATION NO. 4 (MARCH 8) Regulation No. 5, dated March 6, 1933, is not to be interpreted as permitting any banking institutions to accept payment of any obligation not solely owned by it in any form which is not authorized by the person entitled to the proceeds. 12 See interpretation No. 10 (Mar. 14), p. 15. INTERPRETATION NO. 13 (MARCH 21) Regulation No. 28 is held not to prohibit the honoring of checks or drafts drawn on or before March 18, 1933, under the terms of regulation No. 6 or regulation No. 10, as amended, subject to all the provisions and restrictions contained in such regulations and except as otherwise prohibited. is See regulation No. 10, as amende d, p. 12. 16 During the period March 7, 1933, to March Statements by 31> 1 9 3 3 > t h e Allowing statethe Secretary of ments, in addition to statethe Treasury containing regulations ments and interpretations, were issued by the Secretary of the Treasury: STATEMENT BY THE SECRETARY MARCH 7 OF THE TREASURY, " I n order to facilitate the prompt dissemination of information regarding, and interpretation of, regulations issued by the Secretary of the Treasury pursuant to the President's proclamation, dated March 6, 1933, declaring a bank holiday, it is requested that all inquiries for information regarding, and interpretation of, any of such regulations coming from banks, banking institutions and individuals be made direct to the Federal reserve bank in their district. Unless such requests are covered by interpretations previously issued by the Secretary of the Treasury, the Federal reserve banks will secure such interpretations from the Secretary of the Treasury. All requests for any special permission or consent required by the regulations should be made in accordance with such regulations." STATEMENT BY THE SECRETARY MARCH 9 OF THE TREASURY, " T h e President has to-day urged the immediate enactment of legislation dealing with the existing banking situation. It appears that prompt action will make banking facilities and an adequate supply of currency available. Notwithstanding the expected early opening of banks, the Secretary of the Treasury interposes no objection to the issuance of clearing house certificates or other evidences of claims against assets of banking institutions, in communities where local conditions make such action necessary. The regulation issued by the Secretary March 7, 1933,14 remains effective, granting permission to clearing house associations and other associations organized to provide an adequately secured medium of temporary exchange to issue certificates against sound assets of banking institutions, such certificates to be deliverable by each institution to its creditors and depositors on a pro rata basis." ' step toward the solution of the financial and banking difficulties which have confronted the country. The extraordinary rapidity with which this legislation was enacted by the Congress heartens and encourages the country. "This legislation makes possible the opening of banks upon a sound basis, backed by an adequate supply of currency. Through this law the banks which will open will be placed in a position to meet all demands. This assurance should restore confidence and create the foundation for a forward movement in business activities. " I t will be the policy of the Treasury to permit as rapidly as possible the opening of the sound banks. There are, of course, many thousands of such banks which will promptly be restored to the performance of their normal functions. " T h e Treasury has already taken steps to secure information through proper authorities as to the condition of the various banks of the country and immediately invites from the banks applications for reopening. "While much information has already been assembled, the completion of the information and of the arrangements of the banks for resuming their functions takes some time. I t has therefore been decided not to authorize any reopenings before Saturday, March 11. I t is obvious that it will not be possible to act upon all of the applications even by Saturday. Regulations governing reopenings and also other subjects governed by the legislation will immediately be published/' STATEMENT BY THE SECRETARY OF THE TREASURY, MARCH 10 "Executive order or regulation will issue shortly directing all banks which are members of the Federal reserve system, desiring to reopen for the performance of all usual and normal banking functions, except as otherwise prohibited, to apply for a license to the Secretary of the Treasury, applications to be filed with the Federal reserve bank in the appropriate district. The appropriate authority having immediate supervision of banking institutions in each State will be authorized under such STATEMENT BY THE SECRETARY OF THE TREASURY, regulations as such authority may prescribe to permit any banking institution in such State MARCH 9 or place, other than member banks of the Fed" T h e emergency banking legislation passed eral Reserve System to perform any or all of by the Congress to-day is a most constructive their usual banking functions, except as other14 wise prohibited." See regulation No. 12, p. 12. 17 STATEMENT BY THE SECRETARY OF THE TREASURY, MARCH 10 basis that will run the risk of being forced to close again because of demands which it is not " To the superintendents of banks of each State: in a position to satisfy." "All banks of the country are now prohibited OF THE TREASURY, under the proclamation of March 9 of the STATEMENT BY THE SECRETARY MARCH 10 President from conducting any banking busi"Under the terms of the act of March 9,1933, ness, except as specifically authorized by rule, regulation or license of the Secretary of the immediate action has been taken by the PresiTreasury issued under that proclamation. In dent and the Secretary of the Treasury which view of the passage of the emergency bank bill will make possible the resumption of banking by Congress yesterday, and under the terms of operations in substantial volume at a very early that bill, and section 5 of the act of October date. Pending such resumption the vital needs 6, 1917, as amended by that bill, the Secretary of communities must be met. Attention of all of the Treasury will be authorized to permit banking institutions is called to Regulation 10 any sound bank which is a member of the which is still in force and which as amended Federal Reserve System, whether State or na- provides for cooperation between banks in tional, to reopen for business as promptly as different communities * * *." [See Regupossible. I t is the intention of the Secretary lation No. 10, p. 12.] of the Treasury, however, to permit no member OF THE TREASURY, bank to reopen at any time on a full 100 per STATEMENT BY THE SECRETARY MARCH 10 cent basis unless or until the Secretary is satis" T h e present restrictions on gold will not fied that such bank is a sound going institution. Any member bank not clearly within this cate- prevent gold being available for all normal gory will not be opened unless or until further uses in the industrial arts. Method of disinvestigation discloses that it is a sound going tribution for these purposes will be determined institution, or unless or until a reorganization by the Treasury." of some character will permit the bank to be STATEMENT BY THE SECRETARY OF THE TREASURY, classified as a sound going institution. MARCH 10 "Any member bank not opened 100 per cent " T h e Federal Reserve Board this morning under this procedure will be permitted to continue to perform only such specific transactions voted to authorize the Federal reserve banks as are now authorized or may hereafter be under the terms of section 403 of the emergency authorized by specific regulation or license of bank act to make advances to-morrow for payroll purposes to individuals, firms, or corporathe Secretary of the Treasury. " I n view of the fact that neither the Treas- tions on their notes secured by Government ury nor the Federal reserve authorities have securities. The Secretary of the Treasury has sufficient information upon which to consider issued a regulation according to the terms of applications for reopening by such State banks the President's proclamation permitting the as are not members of the Federal Reserve Federal reserve banks to carry on this business System, the President will by decree authorize with the public. "Accordingly, the Federal reserve banks the appropriate State authorities in each State to give licenses to banks under their jurisdic- will be open to-morrow for the purpose of making tion other than members of the Federal Reserve loans secured by direct obligations of the System, to open for the usual normal business, Government, as well as to conduct such other or in their judgment, and under the terms of transactions with their member banks as may the Presidential Proclamation, to permit of such be necessary to enable member banks to carry reopening under such restrictions and limita- out the purposes of regulation No. 10, as tions as they in their judgment may deem wise. amended." I t is to be expected, however, that State superOF THE TREASURY, intendents in granting licenses under this STATEMENT BY THE SECRETARY MARCH 11 authority will take under consideration in determining their own policy the general prin- "To the superintendents of banks of each State: ciple to be adopted by the Treasury as respects "As announced by the President this aftermember banks that in the interests of the noon, a definite program for the reopening of depositors and of the country as a whole, only banks throughout the country has been detersound institutions will be permitted to carry mined by the Secretary of the Treasury. I n on all of their usual functions to the end that accordance with this program, the Secretary no bank shall be reopened for business on any of the Treasury is prepared upon application 18 through Federal reserve banks to issue to banking institutions which are members of the Federal Reserve System, whether national or State, located in each of the 12 Federal reserve bank cities licenses to open Monday morning. The Secretary of the Treasury will not issue licenses to any member bank, State or national, located outside those 12 cities to open before Tuesday. " State authorities having supervision over banking institutions located at such cities which are not members of the Federal Reserve System are requested to cooperate by permitting such banking institutions to open for business on Monday morning, in all cases where they find them qualified to do so on the basis indicated in previous telegram of March 10.15 The Secretary of the Treasury will not permit any member bank, State or national, to open in any such Federal reserve city unless opened for normal business on an unrestricted basis, except so far as affected by legal contracts between the banks and depositors with respect to withdrawals or notice of withdrawals. " I n accordance with the announcement of the President, the Secretary of the Treasury is prepared upon application through the Federal reserve banks to issue licenses to reopen on Tuesday morning to Federal reserve member banks located in any city having an active and recognized clearing-house association, and upon like application licenses to member banks located elsewhere for reopening on Wednesday morning. As previously stated, however, the Secretary of the Treasury will not permit the reopening of member banks, State or national, on any of these days except on an unrestricted basis, as above indicated. I t must be understood that the restrictions in the President's proclamation against the payment of gold, gold certificates or bullion or the payment of currency for hoarding purposes and foreign exchange transactions will apply to all banking institutions, member and nonmember, State or national, until further notice." I United States Treasury. To compile and check such a list would be a rather lengthy process, and speed in giving the people all the banking facilities possible and safe takes precedence over anything else. " T h e purpose of the banking and financial program now in process under the Secretary of the Treasury is to restore to the country as promptly as possible adequate banking facilities and furnish an ample and sound currency, and restore confidence. Such a program is made possible by the new emergency banking I act passed by Congress March 9. "This act confirms and continues the authority of the President, through such agencies as he may designate, to exercise control over banking for the protection and benefit of depositors and of all users of banking facilities. By amendments to the Federal reserve act it is made possible for Federal reserve banks to make loans direct to corporations, firms and individuals on their notes secured by direct obligations of the United States Government. There are # approximately $11,000,000,000 of such securities outstanding with the public other than with banking institutions. In order to enable the reopened banks to secure currency sufficient to meet demands, Federal reserve banks are authorized to lend to any member bank, regardless of its size, on sound assets. To provide adequate Federal reserve bank currency to satisfy the possible demands under this program, Federal reserve banks are authorized to issue Federal reserve bank notes, not only against Government securities, but also against any member bank note secured by sound assets. " W i t h the enlarged potential supply of currency it is possible to proceed with the program of permitting banks to open. There is no occasion for such banks to experience any lack of currency, and there should be an end of any fear on that score of depositors in reopened banks. An Executive order forbids all banks to permit withdrawals of currency for hoarding purposes. " I t is the intention of the Secretary of the STATEMENT BY THE SECRETARY OF THE TREASURY, Treasury to proceed as rapidly as possible MARCH 11 under the President's proclamation with the "Normal banking is now in sight. I t will j licensing of the reopening of banks, both nacome as rapidly as the Treasury can authorize tional and State, which are members of the Federal Reserve System. The appropriate State banks to proceed. " T h e people of every community will learn authorities may permit the reopening of the from their local institutions when the respective State institutions. An embargo is imposed Treasury permits have been granted. There- upon gold payments, except under license, to fore there will not be, for the present at least, prevent gold hoarding. "This embargo does not mean that every any general list of the licenses issued from the individual who happens to have one or a num15 ber of gold certificates in his roll of currency is See statement to the superintendents of banks of each State, p. i7. 19 to be classified as a hoarder and be subjected to invidious publicity or other penalty. The provision is aimed at those who continue to retain quantities of gold and thereby hinder the Government's plans for a restoration of public confidence. " Already from every quarter of the Nation is reported a large and steady current of gold flowing back to the banks, and the people apparently will be prompt in depositing their funds and thereby relieving themselves of the inconvenience and danger of keeping about them large amounts of money.'' STATEMENT BY THE SECRETARY MARCH 12 OF THE TREASURY, " T h e first duty of the banks reopening under license of the Secretary of the Treasury for the performance of their usual functions is to see that the primary needs of the people for funds for the necessaries of life and for normal business undertakings are met. Accordingly withdrawals for hoarding have been prohibited and the Secretary of the Treasury suggests that until more normal conditions have been established transfers of funds by banks or their customers be limited to necessary purposes.'' STATEMENT BY THE SECRETARY MARCH 13 OF THE TREASURY, "Banking institutions which have not yet been permitted to reopen for normal and usual functions are still permitted to continue to carry on the limited activities specified by regulations Nos. 1 to 19." STATEMENT BY THE SECRETARY M A R C H 13 OF T H E TREASURY "Pending determination by the Treasury Department upon a suitable procedure for licensing the delivery of gold reasonably required for legitimate and customary use in trade, profession or art, all requests for the delivery of gold for such purposes should be submitted to the Federal reserve bank of the district, accompanied by an affidavit as to the amount of unmanufactured gold now on hand and the facts making it necessary to obtain the additional gold requested for the purpose of maintaining employment. Accurate records must be kept of the disposition of all gold which may be released." STATEMENT BY THE SECRETARY MARCH 13 OF THE TREASURY, "Proceeding under the new bank conservation act, the Comptroller of the Currency has appointed conservators for the First National Bank of Detroit and the Guardian National Bank of Commerce of Detroit. This course will permit the operation of the institutions for the purpose of receiving deposits to be segregated and kept in cash or invested in obligations of the United States or deposited with the Federal reserve bank, and permits the conservator to set aside and make available for withdrawal by depositors and payment to other creditors on a ratable basis such amounts as in the opinion of the Comptroller may safely be used for this purpose. " T h e placing of these banks under conservators also gives time for the development of a satisfactory permanent plan for adequate banking facilities for Detroit. A number of plans have been discussed and much work has been done, but up to date there has not been a general agreement as to the course which will be most advantageous for this city. The Government of the United States is anxious to cooperate in the carrying out of such plan as soon as agreed upon." STATEMENT BY THE SECRETARY MARCH 13 OF THE TREASURY, "Responding to inquiries to-day as to what facilities are available for enabling State banks which are not members of the Federal Reserve System to obtain currency to meet their needs, Secretary of the Treasury Woodin called attention to the statement of the President, in his radio talk on March 12, that 'these banks can and will receive assistance from member banks and from the Reconstruction Finance Corporation.' The Secretary also pointed out that Federal reserve banks are authorized to make advances to individuals, partnerships and corporations on their promissory notes, for periods not exceeding 90 days, secured by direct obligations of the United States, and nonmember banks may avail themselves of this privilege. The Federal reserve banks also are authorized, he stated, to rediscount for member banks, with their indorsement, eligible and acceptable paper acquired from and bearing the signature or indorsement of nonmember banks; and to make advances to member banks secured by other paper acquired from nonmember banks. " T h e Secretary said that he understands that it is the purpose and desire of the Reconstruction Finance Corporation and the Federal reserve banks to be as helpful as possible in meeting the needs of the present situation." 20 STATEMENT BY THE SECRETAKY MARCH 14 OF THE TREASURY, " I n response to many inquiries as to the significance of the appointment of conservators to banks of high repute I wish to say that there is no deduction to be made that such banks are necessarily in difficulties. There are a lot of complications, some of them concerning affiliate enterprises, which make it impractical for banks to open to the full extent. It is for the purpose of insuring that the banks will be put in apple-pie order, pending reorganization or other necessary processes that conservators in many cases are named. " Moreover this method makes it possible that the bank so circumstanced will be able to continue to render service, as for example the receiving of deposits to be segregated and kept in cash or invested in Government bonds and such like securities. I t also enables the conservator to set aside and make available for withdrawal by depositors and payment to other creditors on a ratable basis such amounts as in his opinion it is safe to use for this purpose." STATEMENT BY THE SECRETARY MARCH 15 OF THE TREASURY, "Passing upon applications of member banks to reopen for normal banking functions has taxed the personnel of the Treasury and of the Office of the Comptroller of the Currency. While every possible effort has been made to act upon all applications, delay in some cases has been found to be inevitable. In some cases, also, steps are being taken which as soon as completed will make it possible for reopening to be licensed. I therefore wish to direct especial attention to the statement of the President in his radio address of last Sunday: ' " L e t me make it clear to you that if your bank does not open the first day you are by no means justified in believing that it will not open. A bank that opens on one of the subsequent days is in exactly the same status as the bank that opens tomorrow.' " Additional licenses will be issued from time to time and the public should understand that banks hereafter licensed to be opened for normal functions are to be regarded in the same way as if it had been possible to issue the license by to-day." STATEMENT BY THE SECRETARY MARCH 16 OF THE TREASURY, "A number of inquiries have been made at the Treasury Department as to whether a pro- hibition exists upon proper commercial dealings in silver during the banking emergency. " N o regulations have been issued restricting export or other transactions in silver, except for limitations affecting withdrawals by depositors for hoarding and restrictions on banks not permitted to reopen." STATEMENT BY T H E SECRETARY M A R C H 31 OF THE TREASURY, " U p to the close of business on Saturday, March 25, 1933, 265 national banks with total deposits of approximately $350,000,000 have been reorganized or strengthened so that they could be reopened under license to perform their full functions and that the deposits again become available to depositors. These results during the 10 days from March 15 indicate the work which is actively in process in the restoration of banks which were unable to open on the date originally set and the constructive response being made by stockholders and depositors. As additional banks have been reopened they have assumed on a sound basis the performance of the same full functions as the banks opened on the first days set." On March 8, the Federal Reserve Board requested the Federal reserve banks to ' 'prepare and forward to the board as holders ° f gOW soon as P ° s s i b l e a f t e r March 13, 1933, as complete a list as can be made from information you are able to obtain of the names and addresses of all persons who have withdrawn gold from your bank or a member bank in your district since February 1, 1933, and who have not redeposited it in a bank on or before March 13, 1933," and authorized them to give publicity to the request. The board also advised them that it nad no objection to obtaining similar information from nonmember banks and information regarding withdrawals prior to February 1. On March 9, the board indicated t h a t the request of March 8 applied " t o both gold coin and gold certificates." Subsequently, on March 12 and March 18, the board extended to March 17 and March 27, respectively, the final date as of which the lists referred to were to be compiled. 21 The following orders were issued by the Secretary of the Treasury, with the approval ~ . ,. of the President, permitting Orders regarding . . . . . territories and banking institutions in certain insular posses- territories and insular possessions sions of the United States to perform all usual banking functions: T H E C A N A L Z O N E ( M A R C H 6, 1933) any and all extensions thereof, and/or until the further order of the undersigned in the premises, provided, however, that no banking institution shall pay out or permit the withdrawal of any gold or gold certificates. THE ISLANDS OP AMERICAN SAMOA ( M A R C H 6, 1933) Under and by virtue of the authority conferred upon the Secretary of the Treasury, by the proclamation of the President of the United States of America issued March 6, 1933, declaring a bank holiday from Monday, March 6, to Thursday, March 9, 1933, inclusive, and wherein the Secretary of the Treasury was authorized and empowered, with the approval of the President, to permit, under proper regulations, certain banking institutions to perform any and all of the usual banking functions, and it appearing That Capt. George B. Landenberger, Governor of American Samoa, has advised that local conditions in the Islands justify the Secretary of the Treasury in exempting the banking institutions therein located from the operation of the proclamation of the President of the United States, and that such banks are in a position and desire to continue to transact their banking business as usual, it is, therefore, Ordered, That any and all banking institutions, as defined in the proclamation of the President of the United States, operating and carrying on business in the Islands of American Samoa, be, and the same hereby are, authorized and permitted to perform all their usual banking functions-during the period as ordered in the proclamation of the President of the United States and any and all extensions thereof, and/or until the further order of the undersigned in the premises, provided, however, that no banking institution shall pay out or permit the withdrawal of any gold or gold certificates. Under and by virtue of the authority conferred upon the Secretary of the Treasury, by the proclamation of the President of the United States of America issued March 6, 1933, declaring a bank holiday from Monday, March 6, to Thursday, March 9, 1933, inclusive, and wherein the Secretary of the Treasury was authorized and empowered with the approval of the President to permit, under proper regulations, certain banking institutions to perform any and all of the usual banking functions, and it appearing That Lieut. Col. Julian L. Schley, Governor of the Panama Canal, Balboa Heights, Canal Zone, has advised, after consultation with the manager of the single bank operating in the Canal Zone (which is a branch of the Chase National Bank of New York, located in Cristobal), that there is no necessity for the application of the terms of the proclamation to such bank operating in the Canal Zone, and that such bank is in a position and desires to continue to transact its banking business as usual, it is, therefore, Ordered, That the banking institution, as defined in the proclamation of the President of the United States, operating and carrying on business in the Canal Zone, be, and the same hereby is, authorized and permitted to perform all its usual banking functions during the period as ordered in the proclamation of the President T H E P H I L I P P I N E I S L A N D S ( M A R C H 6, 1933) of the United States and any and all extensions thereof, Under and by virtue of the authority conferred upon and/or until the further order of the undersigned in the premises, provided, however, that no banking institu- the Secretary of the Treasury, by the proclamation of tion shall pay out or permit the withdrawal of any gold the President of the United States of America issued March 6, 1933, declaring a bank holiday from Monday, or gold certificates. March 6, to Thursday, March 9, 1933, inclusive, and wherein the Secretary of the Treasury was auT H E I S L A N D O F G U A M ( M A R C H 6, 1933) thorized and empowered with the approval of the Under and by virtue of the authority conferred upon President to permit, under proper regulations, certain the Secretary of the Treasury, by the proclamation of banking institutions to perform any and all of the the President of the United States of America issued usual banking functions, and it appearing March 6, 1933, declaring a bank holiday from Monday, That the Hon. Theodore Roosevelt, jr., Governor March 6, to Thursday, March 9, 1933, inclusive, and General of the Philippine Islands, has advised, after wherein the Secretary of the Treasury was authorized consultation with the managing officials of all banks, and empowered, with the approval of the President, both local and foreign, located in the Philippine to permit, under proper regulations, certain banking Islands, together with certain prominent business men institutions to perform any and all of the usual bank- of the community and certain insular officials, that there ing functions, and it appearing is no present necessity for the application of the terms That Capt. E. S. Root, Governor of Guam, has of the proclamation to the banks operating in the Philipadvised that local conditions in the Island justify the pine Islands, and that such banks are in a position Secretary of the Treasury in exempting the banking and desire to continue to transact their banking business institutions therein located from the operation of the as usual, it is, therefore, proclamation of the President of the United States, Ordered, That any and all banking institutions, as and that such banks are in a position and desire to defined in the proclamation of the President of the continue to transact their banking business as usual, United States, operating and carrying on business in the it is, therefore, Philippine Islands, be, and the same hereby are, Ordered, That any and all banking institutions, as authorized and permitted to perform all their usual defined in the proclamation of the President of the banking functions during the period as ordered in the United States, operating and carrying on business in proclamation of the President of the United States and the Island of Guam, be, and the same hereby are, any and all extensions thereof, and/or until the further authorized and permitted to perform all their usual order of the undersigned in the premises, provided, banking functions during the period as ordered in the however, that no banking institution shall pay out or proclamation of the President of the United States and permit the withdrawal of any gold or gold certificates. 2:'9 THE VIRGIN I S L A N D S (MARCH 6, 1933) for the application of the terms of the proclamation to the banks operating in the Territory of Hawaii after the close of business March 9, 1933, and that such banks are in a position and desire to transact their banking business as usual, it is, therefore, Ordered, That any and all banking institutions, as defined in the proclamation of the President of the United States, operating and carrying on business in the Territory of Hawaii, be and the same hereby are, authorized and permitted to perform all usual banking functions during the period as ordered in the proclamation of the President of the United States and any and all extensions thereof, and/or until the further order of the undersigned in the premises, provided, however, that no banking institution shall pay out or permit the withdrawal of any gold or gold certificates. Under and by virtue of the authority conferred upon the Secretary of the Treasury, by the proclamation of the President of the United States of America issued March 6, 1933, declaring a bank holiday from Monday, March 6, to Thursday, March 9, 1933, inclusive, and wherein the Secretary of the Treasury was authorized and empowered with the approval of the President to permit, under proper regulations, certain banking institutions to perform any and all of the usual banking functions, and it appearing That the Hon. Boyd J. Brown, Acting Governor of the Virgin Islands, has advised that there is no necessity for the application of the terms of the proclamation to the banks operating in the Virgin Islands, and that such banks are in a position and desire to transact their banking business as usual, it is, therefore, Ordered, That any and all banking institutions, as defined in the proclamation of the President of the The following authorization, of March 7, United States, operating and carrying on business in the Virgin Islands, be, and the same hereby are, authorized 1933, was issued by the Secretary of the and permitted to perform all usual banking functions Treasury, with the approval of during the period as ordered in the proclamation of the President of the United States and any and all exten- Authority to ^ j ^ President, permitting the sions thereof, and/or until the further order of the Federal Reserve Bank of New undersigned in the premises, provided, however, that gold no banking institution shall pay out or permit the York to ship gold earmarked withdrawal of any gold or gold certificates. for foreign governments and foreign banks T H E T E R R I T O R Y O F H A W A I I (MARCH 9, 1933) prior to March 6, 1933: Under and by virtue of the authority conferred upon " Under authority conferred upon me by the the Secretary of the Treasury, by the proclamation of the President of the United States of America President's proclamation of March 6, 1933, issued March 6, 1933, declaring a bank holiday from declaring a bank holiday, the Federal Reserve Monday, March 6, to Thursday, March 9, 1933, Bank of New York is authorized, in the case of inclusive, as extended by a proclamation of the Presi- gold earmarked for foreign governments, fordent issued March 9, 1933, and wherein the Secretary of the Treasury was authorized and empowered with eign central banks, and the Bank of Internathe approval of the President to permit, under proper tional Settlements prior to March 6, 1933, to regulations, certain banking institutions to perform permit the export of such gold to the governany and all of the usual banking functions, and it ment or foreign bank entitled thereto under a appearing That the Hon. Lawrence M. Judd, Governor of the license by the Secretary of the Treasury Territory of Hawaii, advised that there is no necessity specifically authorizing each s h i p m e n t / ' INDEX Proclamation, Presidential message, act, Executive order, regulation, interpretation, Treasury order, or press statement Accounts, special trust. (See Deposit accounts, special trust.) Adminsitrator, banks acting as Advances by Federal reserve banks. (See Federal reserve banks, advances.) Agencies of Federal reserve banks, opening of.. American Samoan Islands to perform usual banking functions Appropriation under emergency banking act_. Art, gold for use in. (See Gold for use in industry, profession, or art.) Assignee, banks acting as Associations. (See Individuals, partnerships, corporations, associations, etc.) Automobile finance companies, bank holiday applicable to B Bank conservation act Bank holiday: Declared from March 6 to March 9, 1933_. Extended beyond March 9 Institutions included in Purpose and scope of Reg. 13.. Reg. 3 1 Reg. 20 Tr. Ord. 3/6.. Act, 3/9 Reg. 13Reg. 31- Inter. 3 - Banks, not members of Federal Reserve System or organized under laws of United States or under State supervision (see also under Federal Reserve System): Currency restrictions Foreign exchange restrictions Gold restrictions Opening Banks, opening of. (See Opening of banks.) Branch banks: Bank holiday applicable to Banking transactions, except gold, in Canal Zone. Federal reserve, opening of Foreign, advances to Brokers, bank holiday applicable to Building and loan associations, bank holiday applicable to. Business requirements: Foreign exchange for Withdrawals for Act, 3/9.. Proc. 3/6. Proc. 3/9_ Proc. 3/6. do—_ Proc. 3/9. Act, 3/9.. Banking act Banking institutions (see also Federal Reserve System; State banks; Trust companies): Bank holiday applicable to Proc. 3/6 Control requested by President Mes. 3/9 Defined Proc. 3/6 Inter. 3 Inquiries for information from. Tr. Stat. 3/7— Tr. Stat. 3/13— Not opened, limited activitiesReg. 29 Opening, program for Pr. Stat. 3/11— Tr. Stat. 3/11— Banking transactions: License to permit _ Tr. Stat. 3/10— Exec. Ord. 3/10. Pr. Stat. 3/11— Tr. Stat. 3/11— Members of Federal Reserve System and Exec. Ord. 3/10. institutions organized under laws of United States, Secretary of Treasury to permit. Nonmembers of Federal Reserve System -doand institutions not organized under laws of United States, supervisor to permit. Penalties for violation Act, 3/9.. Regulation by Secretary of Treasury au- Proc. 3/6. thorized. Proc. 3/9. Suspension Proc. 3/6. Proc. 3/9. Banking transactions, except gold, performed in full: American Samoan Islands Tr. Ord. 3/6. Canal Zone do Guam, island of do Hawaii Tr. Ord. 3/9.. Philippine Islands._ Tr. Ord. 3/6.. Virgin Islands—, .—.do Proclamation, Presidential message, act, Executive order, regulation, interpretation, Treasury order, or press statement Canal Zone to perform usual banking functionsCapital notes or debentures of State banks or trust companies, Reconstruction Finance Corporation authorized to purchase. Change, making of Chattel loan companies, bank holiday applicable to. Checks: Charged before March 4,1933, settlement of. Issued prior to March 6,1933, settlement of. Treasurer of United States, cashed by banks. Checks or drafts drawn before March 18, 1933, under regulations 6 and 10, honoring of. Cigar manufacturing, release of funds for purchase of internal revenue stamps. Circulating note issue __. _. Clearing-house association cities, opening of banks located in. Clearing house certificates: Depositors not required to accept Issuance: Permitted Secretary of Treasury to direct, require, or permit. Coin and currency (except gold), Federal reserve banks to make available to member banks. Collateral: Deposited for advances to foreign and insular branches of banks. Federal reserve bank note issue Release permitted Substitution permitted C.P.D. transactions, Federal reserve banks Committee of estates of lunatics, banks acting (23) Reg. 21_. do... do— do— Proc. 3/6 Tr. Ord. 3/6 __ Reg. 20 Reg. 11 Inter. 3 Proc. 3/6 Exec. Ord. 3/10Reg. 21 Tr. Stat. 3/12— Tr. Ord. 3/6... Act, 3/24 Reg. 1... Inter. 3_ Reg. 8... Reg. 17Reg. 4... Inter. 13. . Inter. 8— Act, 3/9 Act, 3/24 Pr. Stat. 3/11.. Tr. Stat. 3/11.. Inter. 11 Reg. 12 Tr. Stat. 3/9.. Proc. 3/6 Sup. Reg- Reg. 11 Act, 3/9 Act, 3/24 Tr. Stat. 3/11.. Reg. 19 do Reg. 14 Reg. 13 Reg. 3 1 - 24 Proclamation, Presidential message, act, Executive order, regulation, interpretation, Treasury order, or press statement Community needs, banking transactions neces- Reg. 10 Tr. Stat. 3/10sary to provide. Tr. Stat. 3/12.. Reg. 28 Inter. 13 Comptroller of the Currency: Additional powers, such as State officials Pub. Res. 2/25have. Act, 3/9 Appointment of conservators Regulation authorized with regard to: Bank conservation act Act, 3/9 Deposit receipts and withdrawals, banks Pub. Res. 3/33_ in District of Columbia. Act, 3/9 Reorganization plan approval Conservators: Appointment: Detroit banks (2) Tr Stat. 3/13.. District of Columbia banks and trust Act, 3/9 companies. do National banks State member banks Exec. Ord. 3/18. Duties Act, 3/9 Penalties for violation of banks conserva- _—do tion act. -do.. Rights, powers, and privileges Salary ..do.. Conservatorship: Expenses .do.. -doTermination Contracts, fulfillment of: Exec. Ord. 3/10. Foreign exchange for_ Reg. 21 _Withdrawals for — Corporations organized under Federal reserve Reg. 22 act, opening of. Corporations. (See Individuals, partnerships, corporations, associations, etc.) Inter. 7.. Cotton, release of funds for purchase of Coupons, United States obligations, payment Reg. 18by Federal reserve banks. Credit transfers: Authority of President to regulate or pro- Act, 3/9. hibit. In the United States, payments for Reg. 26. patents, etc. Sup. Reg.. On books of Federal reserve banks Proc. 3/6_. Prohibited Reg. 11--To place abroad, payments for patents, etc. Credit unions, bank holiday applicable to Proc. 3/6Currency: Mes. 3/9 Additional, requested by President Advances by Federal reserve banks._ .. Sup. Reg Reg. I - - . ... Exchange Act, 3/9 Federal reserve bank note issue Tr. Stat. 3/11Transactions prohibited during bank holi- Proc. 3/6 day. Withdrawal for hoarding Reg. 10 Exec. Ord. 3/10. Reg. 23 D Demand notes to secure advances by Federal reserve banks: To member banks To nonmember banks Deposit accounts, special trust Deposits: Five per cent withdrawal allowed from State member banks not licensed to open. New, unrestricted Payment prohibited Receipts and withdrawals, banks in District of Columbia. Receivedjafter closing hours and not entered, return of. Act, 3/9 Act, 3/24 Proc. 3/6 Reg. 7 Reg. 15 Act, 3/9 Reg. 27 Inter. 12 Proc. 3/6 Reg. 7 Reg. 15 Act, 3/9 Proc. 3/6 Pub. Res. 3/3. Reg. 3 Proclamation, Presidential message, act, Executive order, regulation, interpretation, Treasury order, or press statement Deposits—Continued Secured by collateral, State member banks Reg. 32.. not permitted to open, to allow withdrawals of. Withdrawal on ratable basis from banks Act, 3/9. under conservator. Design application fees, drafts issued for Reg. 26 Detroit banks (2), appointment of conservators Tr. Stat. 3/13.. for. Discounts: Extended by Federal reserve banks to Sup. Reg.. member banks. Making of, prohibited Proc. 3/6.. District of Columbia banks and trust companies: Bank conservation act applicable to Act, 3/9 Deposit receipts and withdrawals, regula- Pub. Res. 3/3. tion by Comptroller of the Currency. Documents held for safekeeping, return of Reg. 9___. Drafts drawn before March 18, 1933, under Inter. 13_. regulations 6 and 10, honoring of. Drafts in payment of: Food or feed products shipment- Reg. 6 — Reg. 28... Inter. 13.. Patents and trade-marks... . Reg. 26... Drafts, notes, etc., collateral for issue of Fed- Act, 3/9.. eral reserve bank notes. Drafts on Secretary of State . Reg. 24— Earmarked gold. (See Gold coin and bullion, earmarked.) Earmarking of gold, silver, etc.: Authority of President to regulate or prohibit. Prohibited Emergency banking act Employment, banking transactions for maintenance of. Executive orders: March 10, 1933 March 18, 1933 Executor, banks acting as_ Export of gold, silver, etc., authority of President to regulate or prohibit (see also Gold coin, bullion, and certificates, export; Silver coin, bullion, and certificates, export). Federal Federal Federal Federal Proc. 3/6. do.... Act, 3/9.. Reg. 10... Inter. 7... Reg. 28— Inter. 13.. Reg. 13— Reg. 31— Proc. 3/6. home loan banks, opening of Reg. 22 intermediate credit banks, opening of. do land banks, opening of do reserve bank note issue Act, 3/9 Tr. Stat. 3/11.. Federal reserve banks: Accommodations, extension to member Sup. Reg_. banks. Accounts, special trust, for new deposits- Proc. 3/6. Reg. 7_— Reg. 15— Act, 3/9.. Advances: Reg. 10 For community needs.. Reg. 28 Inter. 13 Act, 3/9 On time and demand notes Act, 3/24 To individuals, partnerships, and cor- Act, 3/9 porations. Tr. Stat. 3/13.. To individuals, partnerships, and cor- Reg. 10 porations for pay-roll purposes. Tr. Stat. 3/10Reg. 28 Inter. 13 Reg. 10 To member banks. Sup. Reg Act, 3/9 Tr. Stat. 3/10. Reg. 28 Inter. 13 25 Proclamation, Presidential message, act, Executive order, regulation, interpretation, Treasury order, or press statement Federal reserve banks—Continued Advances—Continued To nonmember banks.. To State banks and trust companies, nonmembers. Agents of Secretary of Treasury, to receive applications and issue licenses to open member banks. Bank holiday applicable to Branches and agencies, opening of Change, making of__ Coin and currency available to member banks. C.P.D. transactions. Coupons of United States obligations, payment of. Credit transfers between banks Tr. Stat. 3/13 Act, 3/24 Act, 3/24 Exec. Ord. 3/10- Page 19 6 6 8 Proc. 3/6 Reg. 20 Reg. 1 Sup. Reg 2 13 11 14 Reg. 14 Reg. 18 12 13 Sup. Reg Proc. 3/6 Reg. 7_. Reg. 15 Act, 3/9 Sup. Reg Discounts to member banks Federal reserve bank note issue Act, 3/9 Tr. Stat. 3/11—. Fiscal agents of United States, transactions. Reg. 14 Foreign exchange transactions, report of— Exec. Ord. 3/10.. Gold deliveries for use in industry, pro- Reg. 25 Tr. Stat. 3/13— fession, or art. Gold withdrawers, February 1 to March 27, 1933. Tr. Stat. 3/7 Inquiries for information made to Licenses for opening member banks, agents Exec. Ord. 3/10.. of Secretary of Treasury to issue. Loans. (See Advances, above.) Reg. 18 demption of. Reg. 20 United States obligations, transactions i n . . Reg. 14 Reg. 18 Federal Reserve System: Members: Advances by Federal reserve banks: Sup. Reg For community needs Reg. 10 Reg. 28 _ Inter. 13 Act, 3/9 On time and demand notes Banking transactions permitted by Proc. 3/6 Secretary of the Treasury under Act, 3/9 Exec. Ord. 3/10.. regulations. Credit transfers on books of Federal Sup. Reg... . . . reserve banks. do Discounts extended by Federal reserve banks. Not licensed to open: Reg. 31 Tr. Stat. 3/10— Limited banking functions Reg. 30 Reg. 29.. Note renewals Tr. Stat. 3/10— Exec. Ord. 3/10„ Tr. Stat. 3/10— Pr. Stat. 3 / 1 1 — Tr. Stat. 3/11— Under conservator, license to open Reg. 30 required. Nonmembers: Advances by Federal reserve b a n k s . . . Tr. Stat. 3/13— Act, 3/24 Advances by members of Federal Tr. Stat. 3/13— Reserve System. Deposit accounts, temporary, in Fed- Reg 7 eral reserve banks. Tr. Stat. 3/10—Exec. Ord. 3/10Tr. Stat. 3/10— Pr. Stat. 3 / 1 1 — Reg. 21 Tr. Stat. 3/11 Reserve balance with Federal reserve Act, 3/24 bank during existence of loan. ' Proclamation, Presidential message, act, Executive order, regulation, Page interpretation, Treasury order, or press statement 14 2 11 13 4 14 5 18 12 8 13 19 20 16 8 13 13 12 13 14 12 14 15 6 2 3 7 14 14 14 17 14 14 16 8 17 8 18 14 19 6 19 12 16 7 17 8 13 18 6 Federal Reserve System—Continued State bank members, not licensed to open: Conservators appointed by State authorities. Deposits secured by collateral, withdrawal of. Five per cent deposit withdrawals permitted. Limited banking transactions. Fertilizer, release of funds for purchase of Exec. Ord. 3/18- 11 Reg. 32 14 Reg. 27 Inter. 12 Reg. 30— Inter. 5 Reg. 28 Inter. 13 Fiduciary, banks acting as Reg. 13— Reg. 31— _ Finance companies, bank holiday applicable to. Inter. 3 First National Bank of Detroit, conservator appointed - Tr. Stat. 3/13— Fiscal agents of United States, Federal reserve Reg. 14 bank transactions. Food, banking transactions necessary to pro- Reg. 10— vide. Reg. 28— Inter. 13. Food or feed products: Grain, whole. ._ -_ Inter. 6— Livestock on way to slaughter Inter. 1 Transactions necessary for shipment, e t c . . Reg. 6 Reg. 28 Inter. 13_. Foreign branches of banks, collateral for ad- Reg. 11 vances to. Foreign exchange transactions: Authority of President to regulate or pro- Proc. 3/6_ hibit. Contract fulfillment Exec. Ord. 3/10. _ do Personal requirements Prohibited Proc. 3/6 Reports by Federal reserve banks Exec. Ord. 3/10. _ do do. Traveling requirements. G Gold coin and bullion, earmarked, authority of Tr. Auth. 3/7_„. Federal Reserve Bank of New York to ship. Gold coins and certificates, names of persons withdrawing. Gold coin, bullion, and certificates (see also Gold coin and bullion): Authority of President to regulate or pro- Proc. 3/6 hibit transactions. Delivery by: Federal land banks, intermediate credit Reg. 22 banks, joint stock land banks, home loan banks, corporations, etc. Individual, partnerships, associations, Act, 3/9 and corporations, authority of Secretary of Treasury requiring. Proc. 3/6 Earmarking Exchange for other currency Act, 3/9_ Proc. 3/6_ _ Exec. Ord. 3/10. . Proc. 3/6 __ Hoarding, prevention ofExec. Ord. 3/10._ Melting, authority of President to regulate or Proc. 3/6 prohibit. Names of persons withdrawing . Proc. 3/6 Reg. 10 Exec. Ord. 3/10.Act, 3/9 Penalty for violation as to delivery _ Transactions, authority of President to reg- Proc. 3/6 ulate or prohibit. doTransportation costs paid by Secretary of Act, 3/9 — Treasury. Proc. 3/6 _ Exec. Ord. 3/10. . Gold for use in industry, profession or art: Reg. 25 Tr. Stat. 3/13.— Records of disposition _ Tr. Stat. 3/10— Restrictions not applicable to Requests for, to be sent to Federal reserve Tr. Stat. 3/13— banks. 14 15 14 15 14 15 12 14 15 19 12 12 14 15 15 15 11 14 15 12 1 8 8 2 8 8 8 22 20 1 13 3 2 3 2 8 2 8 1 20 2 12 8 3 1 2 3 2 8 13 19 17 19 26 Proclamation, Presidential message, act, E x e c u t i v e order, regulation, interpretation, T r e a s u r y order, or press s t a t e ment G o v e r n m e n t obligations. (See U n i t e d States obligations.) G r a i n , whole, i n c l u d e d i n " f o o d or feed products". G u a m to perform u s u a l b a n k i n g functions G u a r d i a n N a t i o n a l B a n k of C o m m e r c e of D e troit, conservator a p p o i n t e d . G u a r d i a n of estates, b a n k s acting as Page L o a n businesses, t y p e s to w h i c h b a n k h o l i d a y applies. L o a n s , m a k i n g of, p r o h i b i t e d Inter. 6 T r . Ord. 3/6... T r . S t a t . 3/13.. M e d i c i n e , b a n k i n g t r a n s a c t i o n s necessary to provide. Reg. 13_. Reg. 3 1 - M e l t i n g of gold, silver, etc., a u t h o r i t y of Presid e n t to regulate or p r o h i b i t . M o r t g a g e loan c o m p a n i e s : B a n k h o l i d a y applicable to Defined T r . Ord. 3/9_ P r o c . 3/6. F o r pay-roll p u r p o s e s . B a n k h o l i d a y applicable to_. N a t i o n a l b a n k i n g associations (see also under Federal Reserve System): B a n k conservation act applicable to B a n k h o l i d a y applicable to B a n k i n g t r a n s a c t i o n s to m e e t c o m m u n i t y C o m p t r o l l e r of C u r r e n c y to exercise a d d i tional powers w i t h respect t o . Conservators Preferred stock a u t h o r i z e d Reconstruction Finance Corporation to subscribe to or loan on preferred stock. Reorganization Reorganized a n d opened, M a r c h 15 to 25, 1933. Necessities of life, b a n k i n g t r a n s a c t i o n s necess a r y to provide. Act, 3/9 T r . Stat. 3/13—. Reg. 10 T r . Stat. 3/10— Reg. 28 I n t e r . 13 Proc. 3/6 Inter. 3 Exec. Ord. 3/10. Act, 3/9 E x p o r t or w i t h d r a w a l of gold b y Gold coin, bullion, a n d certificates, delivery b y . I n q u i r i e s for information T r . Stat. 3/7.. I n d u s t r y , gold for use in. (See Gold for use in i n d u s t r y , profession, or art.) I n d u s t r i a l loan c o m p a n i e s , b a n k h o l i d a y appli- I n t e r . 3 cable to. I n q u i r i e s for information to be m a d e to Federal T r . Stat. 3/7reserve b a n k s . I n s u l a r possessions: Proc. 3/6 B a n k holiday applicable to T r . Ords. 3/6. B a n k i n g t r a n s a c t i o n s , except gold T r . Ord. 3/9.. B r a n c h b a n k s i n , a d v a n c e s to Reg. 11 I n t e r n a l r e v e n u e s t a m p s , release of funds for I n t e r . 8 p u r c h a s e of. Interpretations J o i n t stock l a n d b a n k s , opening ofLegislation: P u b l i c N o . 1, b a n k i n g act P u b l i c N o . 4, a m e n d m e n t to b a n k i n g act p r o v i d i n g for direct loans b y Federal reserve b a n k s to S t a t e b a n k s or t r u s t companies. P u b l i c R e s o l u t i o n 58, a d d i t i o n a l powers for C o m p t r o l l e r of t h e C u r r e n c y w i t h respect to n a t i o n a l b a n k s . P u b l i c R e s o l u t i o n 70, C o m p t r o l l e r of t h e C u r r e n c y to prescribe regulations for b a n k s m t h e D i s t r i c t of C o l u m b i a . Licenses: A p p r o v e d b y Congress A u t h o r i t y for O p e n i n g of b a n k s L i v e s t o c k on w a y to slaughter, included in "food or feed p r o d u c t s . " Reg. 22.. Act, 3 / 9 . . Act, 3/24. P u b . Res. 2 / 2 5 . P u b . Res. 3 / 3 . . . Act, 3/9 Proc. 3/6 T r . S t a t . 3/10— Exec. Ord. 3/10. T r . Stat. 3/10... P r . Stat. 3/11— T r . S t a t . 3/11... T r . S t a t . 3/15 Inter. 1 15 P r o c . 3/6 2 Reg. 1 0 „ Reg. 2 8 . . I n t e r . 13. P r o c . 3/6. 12 14 15 1 Inter. 3 . . I n t e r . 10. 15 15 Act, 3/9 Proc. 3/6 Reg. 10 Reg. 28 I n t e r . 13 P u b . R e s . 2/25. 4 2 12 14 15 1 N do .._. Reg. 10 do Exec. Ord. 3/10. Reg. 21 Reg. 23 T r . S t a t . 3/12... T r . Stat. 3/16— I I n d i v i d u a l s , p a r t n e r s h i p s , corporations, associations, etc.: A d v a n c e s b y F e d e r a l reserve b a n k s : Authority Inter. 3 . . M H H a w a i i to perform u s u a l b a n k i n g functions Hoarding: Gold, silver, etc.: A u t h o r i t y of P r e s i d e n t t o regulate or prohibit. Restrictions P r e c a u t i o n s b y b a n k s to p r e v e n t W i t h d r a w a l s for Proclamation, Presidential message, act, E x e c u t i v e order, regulation, interpretation, T r e a s u r y order, or press s t a t e ment 2 21-22 22 12 15 15 N o n s u p e r v i s e d b a n k i n g i n s t i t u t i o n s , opening of. N o t e s or d e b e n t u r e s of S t a t e b a n k s or t r u s t companies, R e c o n s t r u c t i o n F i n a n c e Corpor a t i o n a u t h o r i z e d to p u r c h a s e . N o t e s , drafts, etc., collateral for issue of F e d eral reserve b a n k notes. N o t e s , rediscounting a n d pledging of renewals b y b a n k s n o t licensed to open. N u r s e r y stock, release of funds for p u r c h a s e of- Obligations of U n i t e d States. (See U n i t e d States obligations.) Obligations p a y a b l e a t b a n k s , acceptance of p a y m e n t s on. O p e n i n g of b a n k s : A u t h o r i t y requested b y P r e s i d e n t Clearing-house association cities Corporations organized u n d e r t h e F e d e r a l reserve act. F e d e r a l home-loan b a n k s Federal intermediate-credit banks Federal land banks F e d e r a l reserve b a n k agencies., F e d e r a l reserve b a n k b r a n c h e s F e d e r a l reserve b a n k cities F e d e r a l reserve b a n k s Joint-stock l a n d b a n k s M e m b e r s of F e d e r a l reserve s y s t e m - N a t i o n a l b a n k i n g associations (see also M e m b e r s , above) N o n m e m b e r s of F e d e r a l R e s e r v e S y s t e m - Act, 3/9. do.. do... 4 5 5 do T r . Stat. 3/31.. 4 20 Reg. 10 Tr. Stat. 3 / 1 0 — I n t e r s . 2, 5, a n d 7. T r . S t a t . 3/12____ Reg. 28 I n t e r . 13 Reg. 21 12 17 15 19 14 15 13 A c t , 3/24. Act, 3/9 T r . S t a t . 3/11 Reg. 29 5 18 14 Inter. { Reg. 5 . . . I n t e r . 4_. 11 15 M e s . 3/9 P r . S t a t . 3/11— T r . S t a t . 3/11... R e g . 22 18 13 do „__do ....do doReg. 20 P r . S t a t . 3/11 T r . S t a t . 3/11 Reg. 20 __. Reg. 22 Tr. Stat. 3/10— Exec. Ord. 3/10. Tr. Stat. 3/10— P r . S t a t . 3/11 T r . S t a t . 3/11 13 13 13 13 13 8 17 13 13 16 7 17 8 17 Tr. Stat. 3 / 3 1 — T r . S t a t . 3/10—. Exec. Ord. 3/10. Tr. Stat. 3/10— P r . S t a t . 3/11 Tr. Stat. 3 / 1 1 — Reg. 2 1 . . _ 20 16 7 17 8 18 13 27 Proclamation, Presidential message, act, Executive order, Page regulation, interpretation, Treasury order, or press statement Opening of banks—Continued Nonsupervised banking institutions Program for 13 Reg. 21 8 Pr. Stat. 3/11 17 Tr. Stat. 3/11 13 Reg. 22_ Reconstruction Finance Corporation 13 do Regional agricultural credit corporations _ _ Secretary of Treasury authorized to permit members of Federal Reserve System and banks organized under laws of United Exec. Ord. 3/10.. States to perform banking functions 7 Tr. Stat. 3/10.— 16 17 do Pr. Stat. 3/11 8 Tr. Stat. 3/11 17 18 do Supervisors of State banks, etc., authorized to permit State banks, nonmembers of Federal Reserve System, etc., to perform 7 banking functions. __ . . Exec. Ord. 3/1016 Tr. Stat. 3/10— Trust companies. (See Nonmembers, above). Orders: Act, 3/9 3 Approved by Congress Regarding territories and insular possesTr. Ords. 3/6 21-22 | 22 Tr. Ord. 3/9 P Partnerships. (See Individuals, partnerships, corporations, associations, etc.) 14 Patents, foreign and domestic, drafts issued for. Reg. 26 Inter. 3 _. 15 Pawnbrokers, bank holiday applicable to 12 Pay rolls, advances for Reg. 10 Tr. Stat. 3/10_.__ 17 14 Reg. 28 15 Inter. 13 Penalties for violation as to: Act, 3/9 5 Bank conservation act . . .. _. . . do 3 Conservators do Gold: 5 do D elivery to Treasurer 3 Restrictions _ . Proc. 3/6 1 Regulations, licenses, orders, etc 3 Act, 3/9 Silver restrictions Proc. 3/6 Pensions, payments on account of Inter. 2 1 Reg. 28 15 Inter. 13 14 Personal finance companies, bank holiday ap- Inter. 3. _. 15 plicable to. 15 Personal requirements, foreign exchange per- Exec. Ord. 3/10._ 8 Reg. 21 ... 13 Philippine Islands to perform usual banking Tr. Ord. 3/6 21 functions. Pledging of renewals of notes by banks not Reg. 29.. 14 licensed to open. Preferred stock: Act, 3/24 Double liability, State banks and trust 7 companies, no subscriptions by R.F.C. National banks: Holders not liable for debts, assess- Act, 3/9 5 ments to restore capital, etc. Issue authorized . do 5 do R.F.C. authorized to subscribe for or loan 5 Act, 3/24 on 7 President: Address over radio 9 Executive orders 7,11 Message to Congress 2 Proclamations. 1,7 Statement 8 Proclamations: 3 Act, 3/9 Approved by Congress March 6, 1933, bank holiday 1 March 9, 1933, continuing bank holiday._. 7 Profession, gold for use in. (See Gold for use in industry, profession, or art.) R Receiver, banks acting as Reconstruction Finance Corporation: Notes or debentures of State banks or trust companies, authorized to purchase. Reg. 13 Reg. 31 12 14 Act, 3/24 7 Proclamation, Presidential message, act, Executive order, Page regulation, interpretation, Treasury order, or press statement Reconstruction Finance Corporation—Contd. Obligations authorized increased in amount Opening of__ . Preferred stock of banks, purchase of or loans on. Redeposits by banks of deposits, payment of__ Rediscounting of renewals of notes by banks not licensed to open. Regional agricultural credit corporations, opening of. Registrar of stocks and bonds, banks acting a s . . Regulations: Approved by Congress _ __ Authority for __ Nos. 1 to 32 and supplementary regulationRelief and unemployment, payments on account of. Relief of distress, banking transactions necescessary to provide. Reorganization of banks: Approval of plan by Comptroller of Currency. Authority requested by PresidentBank conservation act National banks reopened, March 15 to 25, 1933. S Safekeeping, documents and securities held for, return of. Salaries and wages, banking transactions necessary to meet. Samoa. (See American Samoan Islands.) Savings banks, bank holiday applicable to Secretary of the Treasury: Securities held for safekeeping, return of _ Seeds, vegetable and agricultural, release of of funds for purchase of. Segregated deposits. (See Deposit accounts, special trust.) Silver coin, bullion, and certificates: Authority of President to regulate or prohibit transactions. 5 13 5 7 13 14 Act, 3/9 Reg. 22 Act, 3/9 Act, 3/24 Reg. 15 Reg. 29 Reg. 22 13 Reg. 13 Reg. 31. 12 14 Act, 3/9. Proc. 3/6 3 1 11-15 15 14 15 12 14 Inter. 2 Reg. 28 Inter. 13. _. Reg. 10 Reg. 28 Act, 3/9. 4 Mes. 3/9 __„ Act, 3/9 Tr. Stat. 3/31_ 2 4 20 Reg. 9 12 Reg. 2 do Reg. 10 Reg 28 Inter. 13 11 11 12 14 15 Proc. 3/6 Reg. 24. . 2 13 Reg. 9 Inter. 5 Reg. 28 Inter. 13 22 15 21-22 11-15 16-20 12 15 14 15 Proc. 3/6 do Act, 3/9 Proc. 3/6 __ Export . Act, 3/9 Tr. Stat. 3/16.... Hoarding, prevention of _ _ Proc. 3/6 Tr. Stat. 3/16— Melting, authority of President to regulate Proc. 3/6 or prohibit. do Payment do Transactions, authority of President to regulate or prohibit. do Withdrawal do Silver export and commercial transactions, re- Tr. Stat. 3/16— strictions for hoarding and on banks not open. Speculation in foreign exchange (see also For- Proc. 3/6 eign exchange transactions). State banks (see also under Federal Reserve System): Banking transactions to meet community Reg. 10 needs. Reg. 28 Inter. 13— Capital notes or debentures to be pur- Act, 3/24_._ chased by Reconstruction Finance Corporation. Nonmembers of Federal Reserve System: Advances by Federal reserve banks. ._ Tr. Stat. 3/13— Act, 3/24 1 2 3 2 3 20 2 20 1 2 1 2 2 20 1 12 14 15 7 19 6 28 Proclamation, Presidential message, act, E x e c u t i v e order, regulation, interpretation, T r e a s u r y order, or press statement State banks—Continued N o n m e m b e r s of F e d e r a l R e s e r v e S y s t e m Continued Banking transactions authorized b y a u t h o r i t i e s h a v i n g s u p e r v i s i o n of. C u r r e n c y r e q u i r e m e n t s a v a i l a b l e from member banks and Reconstruction Finance Corporation. R e s e r v e balance w i t h F e d e r a l reserve b a n k d u r i n g existence of loan. O p e n i n g oL_ __. - __ Preferred stock to b e s u b s c r i b e d for or l o a n e d on b y R e c o n s t r u c t i o n F i n a n c e Corporation. Proclamation, Presidential message, act, E x e c u t i v e order, regulation, Page interpretation, T r e a s u r y order, or press s t a t e ment Page U U n e m p l o y m e n t , p a y m e n t s on a c c o u n t of T r . S t a t . 3/10 Exec. Ord. 3/10T r . S t a t . 3/13 Act, 3/24 Tr. Stat. / 3 1 0 — Exec. Ord. 3/10Tr. Stat. 3 / 1 0 — P r . S t a t . 3/11 T r . S t a t . 3/11 Act, 3/9 Act, 3/24 16 8 19 6 16 17 8 18 5 U n i t e d Stales obligations: Collateral for issue of Federal reserve b a n k notes. C . P . D . transactions .. Coupons, p a y m e n t b y Federal reserve banks Deposits in special t r u s t accounts i n v e s t e d in. E x c h a n g e b y Federal reserve b a n k s . M a t u r e d , r e d e m p t i o n b y F e d e r a l reserve banks. Security for a d v a n c e s b y Federal reserve b a n k s to i n d i v i d u a l s , etc. Territories: B a n k h o l i d a y applicable t o B a n k i n g t r a n s a c t i o n s , except gold _ _ 15 14 15 Act, 3/9. 5 Reg. 14 Reg. 18. 12 13 Proc Reg. Act, Reg. Reg. 2 11 4 12 13 3/6 7 3/9. 14 18 Act, 3/9. . . Reg 10 Tr. Stat. 3 / 1 0 — Reg. 28 Subscriptions for a n d p a y m e n t s b y b a n k s . Reg. 18 T r a n s a c t i o n s b y Federal reserve b a n k s . __ Reg. 14 ._ T r e a s u r y bill s u b s c r i p t i o n p a y m e n t s al- Reg. 16 lowed. V T 2 -- P r o c . 3/6 T r . Ords. 3 / 6 . — 21-22 T r . Ord. 3/9 22 T i m e notes t o secure a d v a n c e s b y Federal reserve b a n k s : Member banks _ - Act, 3/9 6 6 Nonmember banks _ __ _ _ _ _ Act, 3/24 14 T r a d e - m a r k s , foreign a n d domestic, drafts is- Reg. 26 s u e d for. 12 Reg. 13 Reg. 31 14 Traveling requirements: Reg. 24 _ . 13 8 Exec. Ord. 3/10Foreign exchange Reg. 21 13 11 T r e a s u r e r of U n i t e d States, checks cashed b v Reg. 4 banks. 13 T r e a s u r y bills, p a y m e n t on s u b s c r i p t i o n s f o r . . Reg. 16 T r u s t accounts, special, for n e w deposits. (See Deposit accounts, special t r u s t . ) T r u s t c o m p a n i e s (see also u n d e r F e d e r a l Reserve S y s t e m ) : Act, 3/24 6 A d v a n c e s b y Federal reserve b a n k s Proc. 3/6 2 C a p i t a l notes or d e b e n t u r e s to b e pur- Act, 3/24 7 chased b y R e c o n s t r u c t i o n F i n a n c e Corporation. Preferred stock to b e s u b s c r i b e d for or Act, 3/9 5 loaned on b y R e c o n s t r u c t i o n F i n a n c e 7 Act, 3/24 Corporation. 6 Reserve balance w i t h F e d e r a l reserve Act, 3/24 b a n k d u r i n g existence of loan. 12 T r u s t or other fiduciary business t r a n s a c t i wis Reg. 31 13 . 14 Reg. 12 Reg. 13 14 Reg. 31 . . . I n t e r . 2__ Reg. 28 _ Inter. 13... 6 12 17 14 13 12 13 Virgin Islands to perform u s u a l b a n k i n g functions. W T r . Ord. 3/6. 22 Wages a n d salaries, b a n k i n g t r a n s a c t i o n s necessary to m e e t . Reg. 10 Tr. Stat. 3/10—. Reg. 28 I n t e r . 13_ 12 17 14 15 Reg. 21 13 Withdrawals: F o r fulfillment of c o n t r a c t s e n t e r e d into prior to M a r c h 6, 1933. Reg. 10 Exec. Ord. 3 / 1 0 Reg. 21 Reg. 23 T r . S t a t . 3/12 Tr. Stat. 3 / 1 6 — F o r s h i p m e n t of food a n d feed p r o d u c t s . _. Reg. 6 Reg. 28 F r o m special t r u s t a c c o u n t s for n e w Reg. 7 deposits. F r o m S t a t e b a n k s n o t licensed to o p e n : Deposits secured b y collateral_ _. Reg. 32 F i v e per cent of a m o u n t s d u e depositors Reg. 27 a n d creditors. I n t e r . 12— S t a t e m e n t of p u r p o s e for w h i c h required__ Reg. 23 T r u s t or fiduciary funds. Reg. 13 W o r k m e n ' s c o m p e n s a t i o n disability insur- I n t e r . 2 . ance, p a y m e n t s on account of. Reg. 28 I n t e r . 13 o 12 8 13 13 19 20 11 14 11 14 14 15 13 12 15 14 15