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F E D E R A L RESERVE B A N K
O F N E W YORK
("Circular No. 2 - 4 9 0 1
L August 25, 1942 J
SAFE DEPOSIT BOXES IN THE TERRITORY OF HAWAII
To all Banks and Trust Companies
in the Second Federal Beserve District:
F o r your information we quote below the text of Regulations Relating to Safe Deposit
Boxes issued by the Governor of Hawaii and the text of a press release issued in connection
with such regulations.
EXECUTIVE CHAMBERS
Honolulu, T . H .
A u g u s t 13, 1942
REGULATIONS RELATING TO SAFE DEPOSIT BOXES
These regulations are issued under the authority vested in the Governor of Hawaii pursuant
to Executive Order No. 8389, as a m e n d e d ; Section 5 (b) of the T r a d i n g with the enemy Act,
as amended by Title I I I of the First W a r Powers Act, 1941; General Orders No. 118, Office of
the Military Governor, 25 June 1942; Regulations Relating to Currency, issued June 25, 1942,
as a m e n d e d ; General Orders No. 123. Office of the Military Governor, 3 July 1942; Regulations
Relating to Securities, issued July 3, 1942, as a m e n d e d ; and pursuant to all other authority
vested in the undersigned Governor of H a w a i i ;
TITLE I
(1) O n or before October 1, 1942, every safe deposit box in the Territory of Hawaii shall
be opened by the lessee of such box (or by such other person as may have access thereto) in
the presence of such person as may be officially designated or, at the option of the lessee, in the
presence of an authorized representative of the lessor of such box, and such designated person
or authorized representative shall satisfy himself that such safe deposit box contains no securities
held in violation of the Regulations Relating to Securities, as amended, and no United States
currency held in violation of the Regulations Relating to Currency, as amended. A n y such
securities or currency found to be in any safe deposit box in violation of the Regulations
Relating to Securities, as amended, or the Regulations Relating to Currency, as amended, shall
be promptly disposed of in accordance with the terms of such regulations.
(2) O n or before October 15, 1942, every lessor of safe deposit boxes within the Territory
of H a w a i i shall file a report on Form T F R - H 2 7 with the Office of the Governor of Hawaii,
setting forth the names and addresses of the lessees of all safe deposit boxes which have not
been opened in accordance with these regulations; the names and addresses of any persons
other than the lessees known to have access to such b o x e s ; and the reasons, if known, w h y such
boxes were not opened as required by these regulations. Appropriate action may thereafter be
taken to enforce compliance with these regulations.
(3) A f t e r the opening of any safe deposit box in accordance with the terms of section (1)
hereof, or, in any event, after October 1, 1942, lessors of safe deposit boxes in the T e r r i t o r y of
Hawaii shall satisfy themselves, whenever access is had to such boxes, that no securities or
United States currency is deposited therein in violation of the Regulations Relating to Securities. as amended, or the Regulations Relating to Currency, as amended.
T I T L E II
(1) Exception to any of the provisions of these regulations may be made by means of
licenses, rulings, or otherwise, when it is considered that such exception is in accord with the
purpose of these regulations or is otherwise necessary or desirable. Application for any such
license may be filed with the Office of the Governor of Hawaii on F o r m T F R - H 2 8 , and the
general procedure to be followed in handling applications for licenses will be that employed
in the administration of Executive Order No. 8389, as amended. Unless the contrary is
expressly provided, no license shall be deemed to authorize any transaction prohibited by reason
of the provisions of any law, proclamation, order, or regulation other than these regulations.
T h e decision with respect to the granting, denial, or other disposition of any application for a
license shall be final.
(2) Rulings, instructions, interpretations, or licenses may, from time to time, be made or
issued to carry out the purposes of these regulations, and reports may be required in addition
to those specifically called for herein with respect to any property or transactions affected
hereby.
(3) T h e s e regulations shall not be deemed to authorize any transaction prohibited by or
p u r s u a n t to Executive Order No. 8389, as amended, except such transactions as are necessarily
incidental to the performance of acts specifically required by these regulations.
(4) These regulations and any rulings, licenses, instructions, or forms issued hereunder
m a y be amended, modified, or revoked at any time.
T I T L E III
Attention is directed to the penalties prescribed in General Orders No. 118, Office of the
Military Governor, 25 June 1942; Regulations Relating to Currency issued J u n e 25, 1942, as
a m e n d e d ; General Orders No. 123, Office of the Military Governor, 3 July 1942; Regulations
Relating to Securities, issued July 3, 1942, as a m e n d e d ; and to those contained in section 5 (b)
of the T r a d i n g with the enemy Act, as amended.
/s/
J. B. P O I N D E X T E R
J. B. P O I N D E X T E R
Governor of Hawaii
PRESS RELEASE
Measures were taken today to insure that currency and securities will be removed from all
safe deposit boxes within the territory of Hawaii. T h e action was instituted by the issuance
of the regulations relating to safe deposit boxes, by Governor J. B. Poindexter.
U n d e r the regulations every person renting a safe deposit box at a local bank or trust company m u s t open it before October 1 in the presence of an official designated by the United
States T r e a s u r y or, at the option of the renter of the box in the presence of a representative
of the bank or trust company renting the box. These persons will then satisfy themselves that
no currency or securities are contained in the box in violation of the regulations relating to
currency or the regulations relating to securities. Persons having currency or securities in such
boxes in violation of the regulation will be obliged to deposit the currency with a bank.
Securities m u s t be perforated with the official symbol " H " and placed in a custody account or
shipped out of the territory.
T h i s is one more important step in preparing the territory economically to resist any
invasion attempt. As long as war is being waged in the Pacific, it is the view of military and
other qualified authorities that there exists the constant threat of attack on Hawaii. Ever)'
military measure is being taken to repel any force that may appear off these shores; the security
of the territory and the private citizen will be f u r t h e r protected if there is nothing here which
m a y fall in the hands of an invader to be used by him against us.
T h e first step in the economic protection of the territory against invasion was taken by the
United States T r e a s u r y in cooperation with other Federal and territorial agencies with the
introduction of a special issue of currency for use only in Hawaii. Hawaiian series currency is
now also in circulation on Midway, Johnston and P a l m y r a Islands.
T h i s currency is easily distinguishable from other issues of United States currency. In
case of invasion all currency would, of course, be called in for destruction. However, since
total destruction might not be feasible or possible the distinctive m a r k i n g would make it difficult
for the enemy to realize on any currency left outstanding.
T h e United States dollar is in demand in all parts of the world. Realizing this, the enemy
tries first to obtain any such currency circulating in an occupied area. This has been the experience in the Philippines as well as in the invaded countries of Europe and other parts of
the world.
%
F o r that reason United States Treasury officials removed many millions of United States
dollars and Philippine pesos from Manila to Corregidor on Christmas Eve, 1941, under bombing
attack. T h i s currency was subsequently destroyed on Corregidor, under heavy shell fire. One
of the T r e a s u r y personnel connected with this work in the Philippines has been cooperating
with the Office of the Governor of Hawaii in carrying out the currency program here.
Likewise, upon overrunning the invaded countries of Europe, the enemy was quick to
seize all United States dollars and dollar securities available. One of the first steps taken by
the Germans upon entering Paris was the issuance of a decree requiring the opening of every
safe deposit box and the delivery to the occupying authorities of the property contained therein.
T h e second aspect of the Hawaiian program was the perforation of practically all securities in the territory with the official symbol " H ' \ This enables the ready identification of
securities now here, so that, if such securities should fall into enemy hands, the theft could
be readily established and suitable measures taken.
However, there are many uses to which the enemy might put looted securities, even
though perforated. T h e Axis technique has always been to attempt to liquidate looted securities
in the markets available to it, and nationalize the industries of invaded countries by compelling
transfer of corporate ownership to themselves or their dummies under a semblance of legality.
Therefore, securities of mainland corporations as well as certain other classes of securities
were required to be placed in custody accounts with banks or trust companies, or with the
Treasurer of the territory, or removed to the mainland on or before A u g u s t 1, 1942. Subsequently, on A u g u s t 3rd, similar precautions were taken with respect to the securities of
H a w a i i a n corporations.
T h e purpose behind these regulations is to concentrate all securities in a relatively few
places, where they will be readily available for removal or destruction by the authorities should
an invasion a t t e m p t impend. Actual destruction would be undertaken only on orders from the
Commanding General. Meanwhile, adequate records will be kept on the mainland of all
securities in custody accounts, so that in case of necessity the records located in the territory
m a y be destroyed in addition to the securities themselves. T o insure the complete success
of such a program it is essential that no securities remain in the physical possession of any
individual.
Many persons habitually keep their securities in safe deposit boxes. Such boxes are not
under the control of the institutions leasing them, because banks and trust companies do not
retain duplicate keys. If the key in the possession of the renter of the box is lost, the lock
m u s t be drilled open.
U n d e r conditions which would exist prior to an actual invasion it would not be feasible or
even possible for the eight thousand safe deposit box renters in Honolulu, or such of them who
held securities, to proceed to the business district, open their boxes and deliver the securities
to the constituted authorities. Many of them are absent from the territory. All of them will
have other things to attend to. Accordingly it is imperative that such boxes should contain
no securities or currency. It is recognized that the vast (sic) majority of safe deposit box
renters will comply with the regulations cheerfully and as a patriotic duty. However, it is
absolutely essential in the national as well as the local interest that all persons comply with
the regulations. T o make certain that this is done, box renters are asked to submit to the
formal inspection. T h e r e is no implication of suspicion attached to the examination. T h e
T r e a s u r y has no interest in the contents of safe deposit boxes other than to see t h a t they do
not hold currency or securities in violation of the regulations.
It is essential for the successful administration of this program and for the protection of
the c o m m u n i t y t h a t all currency and securities be dealt with in accordance with the regulations relating to currency, securities, and safe deposit boxes. T h e cooperation of every member
of the c o m m u n i t y to this end is earnestly solicited.
Additional copies of this circular will be furnished upon request.
ALLAN
SPROUL,
President.
@FedFRASER