Full text of Minutes of the Board of Governors of the Federal Reserve System : Meeting Minutes, December 22, 1933, Volume 20, Part 5

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532

At a meeting of the Federal Reserve Board on December 22,
1933, the following were present:

Governor Black, Mr. Hamlin, Mr.

Uiller, Mr. James, Mr. Thomas and Mr. Szymczak.
This meeting was held for the purpose of consultation by
the members of the Board after the conference with Governors of the
.rederal reserve banks held earlier today.
The Board considered fully the opinions of Mr. Baker and
Mr. Wyatt in connection with the question involved in having the
title to the gold of the System vested in the Treasury Department
14 °rder that the Government might automatically obtain the profit
•
11-Pon -1118
gold if, as and when devaluation takes place.
After a full discussion of this matter the Board expressed
itself as
follows:
In event, first, the President should write the Board
with respect to the plan embracing action under the Thomas
Amendment and the placing of title of the gold holdings of
the Federal Reserve System in the Treasury so that profits
?n that gold would accrue to the Government if, as and when
"valuation is effected; and, second, if the Secretary of
.11.e Treasury should requisition the gold holdings of the
Federal Reserve System under Section 11 (n) of the Federal
Reserve Act and should offer gold certificates in payment of
211ch gold holdings, then the Federal Reserve Board feels:
"(1) That it should express its strong conviction that
4e.prepriate legislation by Congress should be had covering
L'ie question of profits upon the gold holdings of the
Federal Reserve System, although it is of opinion that this
profit, being the result of the monetary policy of the Government, should ultimately go to the Government.
11(2) That neither the Federal Reserve Banks nor the
voluntary agreement
Federal Reserve Agents can enter into
covering the transfer of the title in this gold to the Government because of their responsibility as officers and directors
in connection
°f the Reserve Bank and of their trusteeship




12/22/33

_2_

"with their duties as such, and
"(3) That if demand is made by the Secretary of the
Treasury under Section 11 (n) of the Federal Reserve Act
for the gold holdings of the Federal Reserve System, then
the Federal Reserve Banks and the Federal Reserve Agents
.should yield possession of the gold to the Treasury or its
representatives and receive any gold certificates tendered
to them, but only.unner protest fully preserving all legal
rights."




Thereupon the meeting adjourned.

Goveinor.