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FEDERAL RESERVE BANK OF NEW YORK I" Circular No. I 4 7 4 , November 13, 1934. "1 LSuperseding Circular No. 1176 of March 12, 1933 J TRANSACTIONS IN FOREIGN EXCHANGE To all Banking Institutions and others Concerned in the Second Federal Reserve District: We quote below regulations issued by the Secretary of the Treasury, dated November 12, 1934, relating to transactions in foreign exchange, transfers of credit, and the export of coin and currency. REGULATIONS Relating to Transactions in Foreign Exchange, Transfers of Credit, and the Export of Coin and Currency ARTICLE 1. These regulations are prescribed and issued under authority of Section 5 (b) of the Act of October 6, 1917 (40 Stat. L, 411), as amended by Section 2 of the Act of March 9, 1933, and the Executive Order of January 15, 1934, Regulating Transactions in Foreign Exchange, Transfers of Credit, and the Export of Coin and Currency. ARTICLE 2. Licenses may be granted, and a general license is hereby granted, to all individuals, partnerships, associations, and corporations, authorizing any and all transactions in foreign exchange, transfers of credit, and exports of currency (other than gold certificates) and silver coin. The general license herein granted authorizes transactions to be carried out which are permitted by the Executive Order of January 15, 1934 under license therefor issued pursuant to such Executive Order; but does not authorize any transaction to be carried out which, at the time, is prohibited by any other order or by any law, ruling, or regulation. ARTICLE 3. In order that Federal Reserve banks may keep themselves currently informed as to foreign exchange transactions and transfers of credit, as required in Section 4 of the Executive Order of January 15, 1934, every person engaging in any transaction, transfer, export, or withdrawal referred to in Section 1 of such Executive Order shall furnish to the Federal Reserve bank of the district in which such person has his principal place of business in the United States complete information relative thereto upon report forms prescribed by the Secretary of the Treasury, except that reports are not required to be furnished by (1) persons not carrying during any part of the reporting period, accounts abroad or accounts in the United States for non-residents thereof, or (2) persons whose aggregate transactions, transfers, exports, or withdrawals for their own account and the account of others do not exceed $5,000 during any seven-day period. Such information shall be furnished on a weekly basis except as the respective Federal Reserve banks permit the information in certain cases or classes of cases to be furnished on the basis of longer intervals. These regulations and the general license herein granted may be modified or revoked at any time. APPROVED: FRANKLIN D. ROOSEVELT, THE WHITE HOUSE. HENRY MORGENTHAU, JR., Secretary of the Treasury. Written Declarations No Longer Required In its circular No. 1176, dated March 12,1933, the Federal Reserve Bank of New York required dealers in foreign exchange doing business in the Second Federal Reserve District to obtain from each person to whom they sell foreign exchange directly or indirectly a written declaration signed by such person describing the purpose for which the foreign exchange is purchased and certifying that the transaction in no way contravenes the Act of March 9, 1933, the Executive Order of March 10, 1933, or any regulation issued thereunder. In view of the general license granted in the regulations quoted above, the Federal Reserve Bank of New York will not now require dealers in foreign exchange doing business in the Second Federal Reserve District to obtain such written declarations. Weekly and Monthly Reports Required In its circular No. 1176, dated March 12,1933, the Federal Reserve Bank of New York also required dealers in foreign exchange doing business in the Second Federal Reserve District to file with it daily written reports showing the foreign exchange position of such dealers. These daily reports should be continued to and including Wednesday, November 28, 1934, but will not be required thereafter, and in lieu thereof weekly or monthly reports will be required as hereinafter indicated. Every person having his principal place of business in the United States in the Second Federal Reserve District and engaging in any transaction, transfer, export, or withdrawal referred to in Section 1 of the Executive Order of January 15, 1934, shall furnish to the Federal Reserve Bank of New York complete information upon report forms to be prescribed by the Secretary of the Treasury, relative to such transactions, transfers, exports and withdrawals, as follows: 1. Banks and bankers are required to report weekly as of the close of business each Wednesday night beginning December 5, 1934; 2. Brokers and dealers in securities are required to report weekly as of the close of business each Wednesday night beginning December 5, 1934; and 3. All other persons subject to the provisions of Article 3 of the above quoted regulations (such as, for example, certain exporters, importers and industrial companies doing business abroad) are required to report monthly as of the close of business of the last Wednesday in each month beginning December 26, 1934; except that reports are not required to be furnished by (1) persons not carrying during any part of the reporting period, accounts abroad or accounts in the United States for non-residents thereof, or (2) persons whose aggregate transactions, transfers, exports, or withdrawals for their own account and the account of others do not exceed $5,000 during any seven-day period. The transactions, transfers, exports, and withdrawals referred to in Section 1 of the Executive Order of January 15, 1934, and hereby required to be reported as above, include " Every transaction in foreign exchange, transfer of credit between any banking institution within the United States and any banking institution outside of the United States (including any principal, agent, home office, branch, or correspondent outside of the United States of a banking institution within the United States), and the export or withdrawal from the United States of any currency or silver coin which is legal tender in the United States, by any person within the United States." Persons in the Second Federal Eeserve District who are required to furnish reports should apply to the Federal Reserve Bank of New York for forms. Definitions As used in this circular (a) The term "person" means an individual, partnership, association or corporation; (b) The term "dealer in foreign exchange" means any person engaged primarily or incidentally in the business (c) (1) of buying, selling or dealing in foreign exchange, or (2) of buying, selling or dealing in securities for or through foreign correspondents, or (3) any person who carries accounts or securities with or for foreign correspondents; and The term "foreign exchange" means checks, drafts, bills of exchange, cable transfers, or any form of negotiable or assignable instrument or order used (1) to transfer credit or to order the payment of funds in any foreign country, or (2) to transfer credit or to order the payment of funds within the United States for foreign account. GEORGE L. HARRISON, Governor.
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