Full text of Federal Reserve Bank of New York Circulars : 1188. Regulations Issued by the Secretary of the Treasury under the President's Proclamations Declaring and Continuing a Bank Holiday

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FEDERAL RESERVE BANK
OF NEW YORK

( C i r c u l a r No. l i e s )
(March 1 9 , 1 9 3 3 . )
KEQTIUTIONS ISSUED BY THE SECRETARY OF THE TR5ASUHY UNDER THE
PP.SSIDBNT «S PROCLAMATIONS DECLARING- AND . CONTINUING A BANK HOLIDAY

To All Banking Institutions in the
Second Federal Reserve District:
For your information, and supplementing our previous circulars on this
subject, -we quote below the text of a regulation vfoich the Treasury Department has
advised us today has been issued by the Secretary of the Treasury under the
President's proclamations of March 6, 1935, and of Karen 9, 1955, declaring and
continuing a bank holiday.

For convenience in reference we reprint the regula-

tions to which t h i s regulation (Number 28, dated March 18, 1953) refers.
6

Permitting certain activities in connection with food or feed products,
"Any banking institution may handle and collect drafts or other
documents in connection rath the shipment, transportation or delivery
of food or feed products, may pay out or permit the withdrawal of such
amounts of currency as shall be necessary in the judgment of such banking institution in connection with such shipment, transportation or
delivery of food or feed products, and may perform such other banking
functions as may be essential to the shipment, tTransportation or delivery
of food or feed products, provided, however, that no banking institution
shall pay out or permit the withdrawal or any gold or gold certificates."
Interpretation No. 1
"You are authorized to inform a l l banking institutions and others
concerned that the term 'food or feed products* in regulation six, under
the President's Proclamation, promulgated March 6, rmy be interpreted to
include livestock on the way to slaughter."
Interpretation No. 6
"Food or feed products as used in regulation 6 may be construed as
including whole grain if such grain is intended for processing or consumption in the immediate future•"




Regulations Issued by the Secretary of the Treasury Under the
(Circular No, 1188)
President's Proclamations Declaring and Continuing A Bank Holiday (March 19, 1933, )
10

Authorizing certain activities by national or state banking institutions.
"Any national or state banking institution may exercise i t s usual banking
•functions to such extent as i t s situation shall permit and as shall be absolutely necessary to meet the needs of i t s ccranunity for food, medicine, other
necessities of l i f e , for the relief of distress, for the payment of usual
salaries and rages, for necessary current expenditures for the purpose of maintaining employment, and for other similar essential purposes: provided,
however, that (1) every precaution shall be taken to prevent hoarding or the
unnecessary withdrawal of currency: (2) no state banking institution shall
engage in any transaction under this regulation which is in violation of state
or federal law or of any regulation issued thereunder: (3) no national banking association shall engage in any transaction under this section which is in
violation of any federal lav; or of any order or regulation issued by the
comptroller of the currency: and (4) no gold or gold certificates shall be
paid out. Each banking institution and i t s directors and officers will be
held s t r i c t l y accountable for faithful compliance with the spirit and purpose
as well as the letter of this regulation."
Interpretation No. 2
"Regulation Number Ten of March Seven under the President's Proclamation
of March Six is held to authorize payments* on account cf pensions, vorkmenfs
compensation disability insurance, relief and unemployment."
Interpretation No. 5
"Regulation No. 10 issued under the President's Proclamation is interpreted to authorize payments for f e r t i l i z e r and for yegetable end agricultural
seeds for spring planting, where such payments are absolutely necessary and
the seed and/or f e r t i l i z e r are for immediate use."
Interpretation Nc. 7
"Release of funds for purchase of cotton whore absolutely necessary to
maintain operation is interpreted as 'Necessary current expenditures for the
purpose cf maintaining employment and for other similar essential purposes.'
As used in regulation 10. n
Interpretation No. 9
"Regulation Nc. 10 issued under the President's
preted to authorize payments for nursery stock where
absolutely necessary to prevent destruction cf stock
1933, cr prepared for and awaiting shipment on March
ccmoitmonts."

proclamation is intersuch payments are
in transit on March 6,
6, 1953, under bena fide

Regulation 28 - March 18, 1955
f

V.fter the close of business on March 18, 1933, [Treasury Regulation No. 6
and Treasury Regulation No. 10, as amended, shall be without force or effect to
authorize any banking transaction therein referred t o . "
As ve are advised cf the issuance of further regulations and interpretationby the Secretary of the Treasury under the President's proclamations declaring and
continuing a bank holiday v/e frill forward the text thereof to banking institutions
in t h i s d i s t r i c t .




George L. Harrison,
Governor^