Professional Documents
Culture Documents
PART I
FEBRUARY 25-MARCH 31, 1933
UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1933
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)
" B Y THE PRESIDENT OF THE UNITED STATES " B y virtue of the authority vested in me by
OF AMERICA section 5 (b) of the Act of October 6, 1917 (40
Stat. L., 411) as amended by the Act of
" A PROCLAMATION March 9, 1933, and by section 4 of the said
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.
"Whereas, under the Act of March 9,1933, all " T h e appropriate authority having imme-
Proclamations heretofore or hereafter issued diate supervision of banking institutions in
" I t has been wonderful to me to catch the I The Secretary of the Treasury, under the
note of confidence from all over the country. authority conferred upon him by the President's
I can never be sufficiently grateful to the people proclamations declaring and
for the loyal support they have given me in
their acceptance of the judgment that has the^ continuing the bank holiday,
dictated our course, even though all our the Treasury issued the following regulations
processes may not have seemed clear to them. during the period March 6,
" After all, there is an element in the readjust- 1933, to March 30, 1933:
ment of our financial system more important
than currency, more important than gold, and REGULATION NO. 1 (MARCH 6)
that is the confidence of the people. I All Federal reserve banks and all other banking
" Confidence and courage are the essentials of institutions are authorized to make change by the
success in carrying out our plan. You people exchange of currency and/or coin of various denomina-
tions for an exactly equal amount of currency and/or
must have faith; you must not be stampeded coin of other denominations, but no gold or gold cer-
by rumors or guesses. Let us unite in banish- tificates shall be paid out in making change.
ing fear. We have provided the machinery to
REGULATION NO. 2 (MARCH 6)
restore our financial system; it is up to you to
support and make it work. All banking institutions may allow their customers
" I t is your problem no less than it is mine. free access to the safety deposit boxes and safes rented
to such customers.
Together we can not fail."
REGULATION NO. 3 (MARCH 6)
On March 18, 1933, the President issued the All banking institutions may upon request return
following Executive order: intact and without restriction all cash, checks, and
other items delivered for deposit or collection which
"EXECUTIVE ORDER 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.
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
March 9, 1933, and by section 4 of the said Act ance All banking institutions may continue, in accord-
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
authority vested in me, I hereby issue the or gold certificates shall be paid out.
following Executive order. REGULATION NO. 5 (MARCH 6) 2
"Whenever the appropriate authority having
immediate supervision of any banking institu- cash Any banking institution may accept payments in
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
the Treasury to resume its usual banking drafts or other institution
Any banking may handle and collect •
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
other creditors, such authority may, in accord- judgment of such banking institution in connection
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 institu-
tion 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 in-
Treasury 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. ROOSEVELT. See interpretation No. 4 (Mar. 8), p. 15.
3 See interpretations No. 1 (Mar. 7), No. 6 (Mar. 8), and No. 13 (Mar.
" T H E WHITE HOUSE, 21), p. 15. Regulation No. 6 revoked by regulation No. 28 (Mar. 18),
p. 14.
"March 18, 1933." « See regulations No. 15 (Mar. 8), p. 13; and No. 27 (Mar. 18), p. 14.
During the period March 7, 1933, to March ' step toward the solution of the financial and
Statements by 31> 1 9 3 3 > t h e Allowing state- banking difficulties which have confronted the
country. The extraordinary rapidity with
the Secretary of ments, in addition to state- which this legislation was enacted by the Con-
the Treasury ments containing regulations gress heartens and encourages the country.
and interpretations, were issued by the Secre- "This legislation makes possible the opening
tary of the Treasury: of banks upon a sound basis, backed by an
STATEMENT BY THE SECRETARY OF THE TREASURY, adequate supply of currency. Through this
MARCH 7 law the banks which will open will be placed in
" I n order to facilitate the prompt dissemina- a position to meet all demands. This assur-
tion of information regarding, and interpreta- ance should restore confidence and create the
tion of, regulations issued by the Secretary of foundation for a forward movement in business
the Treasury pursuant to the President's activities.
proclamation, dated March 6, 1933, declaring " I t will be the policy of the Treasury to per-
a bank holiday, it is requested that all inquiries mit as rapidly as possible the opening of the
for information regarding, and interpretation of, sound banks. There are, of course, many
any of such regulations coming from banks, thousands of such banks which will promptly be
banking institutions and individuals be made restored to the performance of their normal
direct to the Federal reserve bank in their functions.
district. Unless such requests are covered by " T h e Treasury has already taken steps to
interpretations previously issued by the Secre- secure information through proper authorities
tary of the Treasury, the Federal reserve banks as to the condition of the various banks of the
will secure such interpretations from the Secre- country and immediately invites from the banks
tary of the Treasury. All requests for any applications for reopening.
special permission or consent required by the "While much information has already been
regulations should be made in accordance with assembled, the completion of the information
such regulations." and of the arrangements of the banks for re-
STATEMENT BY THE SECRETARY OF THE TREASURY, suming their functions takes some time. I t has
MARCH 9 therefore been decided not to authorize any
" T h e President has to-day urged the immedi- reopenings before Saturday, March 11. I t is
ate enactment of legislation dealing with the obvious that it will not be possible to act upon
existing banking situation. It appears that all of the applications even by Saturday. Reg-
prompt action will make banking facilities and ulations governing reopenings and also other
an adequate supply of currency available. subjects governed by the legislation will imme-
Notwithstanding the expected early opening of diately be published/'
banks, the Secretary of the Treasury inter-
STATEMENT BY THE SECRETARY OF THE TREASURY,
poses no objection to the issuance of clearing MARCH 10
house certificates or other evidences of claims
against assets of banking institutions, in com- "Executive order or regulation will issue
munities where local conditions make such ac- shortly directing all banks which are members
tion necessary. The regulation issued by the of the Federal reserve system, desiring to reopen
Secretary March 7, 1933,14 remains effective, for the performance of all usual and normal
granting permission to clearing house associa- banking functions, except as otherwise pro-
tions and other associations organized to pro- hibited, to apply for a license to the Secretary
vide an adequately secured medium of tem- of the Treasury, applications to be filed with
porary exchange to issue certificates against the Federal reserve bank in the appropriate
sound assets of banking institutions, such cer- district. The appropriate authority having
tificates to be deliverable by each institution to immediate supervision of banking institutions
its creditors and depositors on a pro rata basis." in each State will be authorized under such
STATEMENT BY THE SECRETARY OF THE TREASURY, regulations as such authority may prescribe to
MARCH 9 permit any banking institution in such State
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 other-
14
See regulation No. 12, p. 12. wise prohibited."
to be classified as a hoarder and be subjected appointed conservators for the First National
to invidious publicity or other penalty. The Bank of Detroit and the Guardian National
provision is aimed at those who continue to Bank of Commerce of Detroit. This course
retain quantities of gold and thereby hinder will permit the operation of the institutions for
the Government's plans for a restoration of the purpose of receiving deposits to be segre-
public confidence. gated and kept in cash or invested in obliga-
" Already from every quarter of the Nation tions of the United States or deposited with
is reported a large and steady current of gold the Federal reserve bank, and permits the con-
flowing back to the banks, and the people appar- servator to set aside and make available for
ently will be prompt in depositing their funds withdrawal by depositors and payment to other
and thereby relieving themselves of the incon- creditors on a ratable basis such amounts as
venience and danger of keeping about them in the opinion of the Comptroller may safely
large amounts of money.'' be used for this purpose.
STATEMENT BY THE SECRETARY OF THE TREASURY,
" T h e placing of these banks under conser-
MARCH 12 vators also gives time for the development of
a satisfactory permanent plan for adequate
" T h e first duty of the banks reopening under banking facilities for Detroit. A number of
license of the Secretary of the Treasury for the plans have been discussed and much work has
performance of their usual functions is to see been done, but up to date there has not been
that the primary needs of the people for funds a general agreement as to the course which will
for the necessaries of life and for normal busi- be most advantageous for this city. The
ness undertakings are met. Accordingly with- Government of the United States is anxious
drawals for hoarding have been prohibited and to cooperate in the carrying out of such plan
the Secretary of the Treasury suggests that as soon as agreed upon."
until more normal conditions have been estab-
lished transfers of funds by banks or their STATEMENT BY THE SECRETARY OF THE TREASURY,
customers be limited to necessary purposes.'' MARCH 13
The following orders were issued by the any and all extensions thereof, and/or until the further
order of the undersigned in the premises, provided,
Secretary of the Treasury, with the approval however, that no banking institution shall pay out or
~ . ,. of the President, permitting permit the withdrawal of any gold or gold certificates.
Orders regarding . . . . . THE ISLANDS OP AMERICAN SAMOA ( M A R C H 6, 1933)
territories and banking institutions in certain
insular posses- territories and insular posses- Under and by virtue of the authority conferred upon
sions the Secretary of the Treasury, by the proclamation of
sions of the United States to the President of the United States of America issued
perform all usual banking functions: March 6, 1933, declaring a bank holiday from Monday,
T H E C A N A L Z O N E ( M A R C H 6, 1933) March 6, to Thursday, March 9, 1933, inclusive, and
wherein the Secretary of the Treasury was authorized
Under and by virtue of the authority conferred upon and empowered, with the approval of the President, to
the Secretary of the Treasury, by the proclamation of permit, under proper regulations, certain banking
the President of the United States of America issued institutions to perform any and all of the usual bank-
March 6, 1933, declaring a bank holiday from Mon- ing functions, and it appearing
day, March 6, to Thursday, March 9, 1933, inclusive, That Capt. George B. Landenberger, Governor of
and wherein the Secretary of the Treasury was author- American Samoa, has advised that local conditions in
ized and empowered with the approval of the President the Islands justify the Secretary of the Treasury in
to permit, under proper regulations, certain banking exempting the banking institutions therein located
institutions to perform any and all of the usual banking from the operation of the proclamation of the President
functions, and it appearing of the United States, and that such banks are in a posi-
That Lieut. Col. Julian L. Schley, Governor of the tion and desire to continue to transact their banking
Panama Canal, Balboa Heights, Canal Zone, has ad- business as usual, it is, therefore,
vised, after consultation with the manager of the single Ordered, That any and all banking institutions, as
bank operating in the Canal Zone (which is a branch defined in the proclamation of the President of the
of the Chase National Bank of New York, located in United States, operating and carrying on business in the
Cristobal), that there is no necessity for the application Islands of American Samoa, be, and the same hereby
of the terms of the proclamation to such bank operating are, authorized and permitted to perform all their
in the Canal Zone, and that such bank is in a position usual banking functions-during the period as ordered in
and desires to continue to transact its banking business the proclamation of the President of the United States
as usual, it is, therefore, and any and all extensions thereof, and/or until the
Ordered, That the banking institution, as defined in further order of the undersigned in the premises, pro-
the proclamation of the President of the United States, vided, however, that no banking institution shall pay
operating and carrying on business in the Canal Zone, out or permit the withdrawal of any gold or gold cer-
be, and the same hereby is, authorized and permitted tificates.
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,
and/or until the further order of the undersigned in the Under and by virtue of the authority conferred upon
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
or gold certificates. March 6, 1933, declaring a bank holiday from Monday,
March 6, to Thursday, March 9, 1933, inclusive,
T H E I S L A N D O F G U A M ( M A R C H 6, 1933) and wherein the Secretary of the Treasury was au-
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 Philip-
advised 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.
Proclamation, Proclamation,
Presidential Presidential
message, act, message, act,
Executive order, Executive order,
regulation, regulation,
interpretation, interpretation,
Treasury order, Treasury order,
or press state- or press state-
ment ment
Proclamation, Proclamation,
Presidential Presidential
message, act, message, act,
Executive order, Executive order,
regulation, Page regulation, Page
interpretation, interpretation,
Treasury order, Treasury order,
or press state- or press state-
ment ment
Proclamation, Proclamation,
Presidential Presidential
message, act, message, act,
E x e c u t i v e order, E x e c u t i v e order,
regulation, Page regulation,
interpretation, interpretation,
T r e a s u r y order, T r e a s u r y order,
or press s t a t e - or press s t a t e -
ment ment
Proclamation, Proclamation,
Presidential Presidential
message, act, message, act,
Executive order, Executive order,
regulation, Page regulation, Page
interpretation, interpretation,
Treasury order, Treasury order,
or press state- or press state-
ment ment
State banks—Continued U
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 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 . . . I n t e r . 2__ 15
Banking transactions authorized b y T r . S t a t . 3/10 16 Reg. 28 _ 14
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. Exec. Ord. 3/10- 8 Inter. 13... _ _ 15
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 T r . S t a t . 3/13 19 U n i t e d Stales obligations:
member banks and Reconstruction Collateral for issue of Federal reserve b a n k Act, 3/9. 5
Finance Corporation. notes.
R e s e r v e balance w i t h F e d e r a l reserve Act, 3/24 6 C . P . D . transactions .. Reg. 14 12
b a n k d u r i n g existence of loan. Coupons, p a y m e n t b y Federal reserve Reg. 18. 13
O p e n i n g oL_ __. - __ Tr. Stat. / 3 1 0 — 16 banks
Exec. Ord. 3/10- Deposits in special t r u s t accounts i n v e s t e d Proc 3/6 2
Tr. Stat. 3 / 1 0 — 17 in. Reg. 7 11
P r . S t a t . 3/11 8 Act, 3/9. 4
T r . S t a t . 3/11 18 E x c h a n g e b y Federal reserve b a n k s . Reg. 14 12
Preferred stock to b e s u b s c r i b e d for or Act, 3/9 5 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 Reg. 18 13
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 Act, 3/24 banks.
Corporation. Security for a d v a n c e s b y Federal reserve Act, 3/9. . . 6
b a n k s to i n d i v i d u a l s , etc. Reg 10 12
T Tr. Stat. 3 / 1 0 — 17
Territories: Reg. 28 14
B a n k h o l i d a y applicable t o -- P r o c . 3/6 2 Subscriptions for a n d p a y m e n t s b y b a n k s . Reg. 18 13
B a n k i n g t r a n s a c t i o n s , except gold T r . Ords. 3 / 6 . — 21-22 T r a n s a c t i o n s b y Federal reserve b a n k s . __ Reg. 14 ._ 12
T r . Ord. 3/9 22 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 13
T i m e notes t o secure a d v a n c e s b y Federal re- lowed.
serve b a n k s : V
Member banks - _ - Act, 3/9 6
Nonmember banks _ __ - _ _ _ _ Act, 3/24 6 Virgin Islands to perform u s u a l b a n k i n g func- T r . Ord. 3/6. 22
T r a d e - m a r k s , foreign a n d domestic, drafts is- Reg. 26 14 tions.
s u e d for. W
Reg. 13 12
Reg. 31 14 Wages a n d salaries, b a n k i n g t r a n s a c t i o n s nec- Reg. 10 12
Traveling requirements: essary to m e e t . Tr. Stat. 3/10—. 17
Reg. 24 _ . 13 Reg. 28 14
Foreign exchange Exec. Ord. 3/10- 8 I n t e r . 13_ 15
Reg. 21 13 Withdrawals:
T r e a s u r e r of U n i t e d States, checks cashed b v Reg. 4 11 F o r fulfillment of c o n t r a c t s e n t e r e d into Reg. 21 13
banks. prior to M a r c h 6, 1933.
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 13 Reg. 10 12
T r u s t accounts, special, for n e w deposits. (See Exec. Ord. 3 / 1 0 - 8
Deposit accounts, special t r u s t . ) Reg. 21 13
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 Re- Reg. 23 13
serve S y s t e m ) : T r . S t a t . 3/12 19
A d v a n c e s b y Federal reserve b a n k s Act, 3/24 6 Tr. Stat. 3 / 1 6 — 20
Proc. 3/6 2 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 11
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 Reg. 28 14
chased b y R e c o n s t r u c t i o n F i n a n c e Cor- F r o m special t r u s t a c c o u n t s for n e w Reg. 7 11
poration. deposits.
Preferred stock to b e s u b s c r i b e d for or Act, 3/9 5 F r o m S t a t e b a n k s n o t licensed to o p e n :
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 Deposits secured b y collateral- _ _. Reg. 32 14
Corporation. Act, 3/24 F i v e per cent of a m o u n t s d u e depositors Reg. 27 14
Reserve balance w i t h F e d e r a l reserve 6 a n d creditors. I n t e r . 12— 15
b a n k d u r i n g existence of loan. Act, 3/24 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 13
T r u s t or other fiduciary business t r a n s a c t i wis 12 T r u s t or fiduciary funds. Reg. 13 12
Reg. 31
Reg. 13 . 14 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 . 15
Reg. 13 12 ance, p a y m e n t s on account of. Reg. 28 14
Reg. 31 14 I n t e r . 13 15