FEDERAL RESERVE BANKOF NEW YORK

I" Circular No. I 4 7 4 , November 13, 1934. "1LSuperseding Circular No. 1176 of March 12, 1933 J

TRANSACTIONS IN FOREIGN EXCHANGE

To all Banking Institutions and others Concernedin the Second Federal Reserve District:

We quote below regulations issued by the Secretary of the Treasury, dated Novem-ber 12, 1934, relating to transactions in foreign exchange, transfers of credit, and theexport 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 ofMarch 9, 1933, and the Executive Order of January 15, 1934, Regulating Transactions inForeign 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 allindividuals, partnerships, associations, and corporations, authorizing any and all transac-tions in foreign exchange, transfers of credit, and exports of currency (other than goldcertificates) and silver coin. The general license herein granted authorizes transactionsto be carried out which are permitted by the Executive Order of January 15, 1934 underlicense therefor issued pursuant to such Executive Order; but does not authorize anytransaction to be carried out which, at the time, is prohibited by any other order or by anylaw, ruling, or regulation.

ARTICLE 3. In order that Federal Reserve banks may keep themselves currently in-formed as to foreign exchange transactions and transfers of credit, as required in Sec-tion 4 of the Executive Order of January 15, 1934, every person engaging in any transac-tion, transfer, export, or withdrawal referred to in Section 1 of such Executive Order shallfurnish to the Federal Reserve bank of the district in which such person has his principalplace of business in the United States complete information relative thereto upon reportforms prescribed by the Secretary of the Treasury, except that reports are not requiredto 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) personswhose aggregate transactions, transfers, exports, or withdrawals for their own accountand the account of others do not exceed $5,000 during any seven-day period. Such in-formation shall be furnished on a weekly basis except as the respective Federal Reservebanks permit the information in certain cases or classes of cases to be furnished on thebasis of longer intervals.

These regulations and the general license herein granted may be modified or revokedat any time.

HENRY MORGENTHAU, JR.,APPROVED: Secretary of the Treasury.

FRANKLIN D. ROOSEVELT,THE WHITE HOUSE.

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Written Declarations No Longer Required

In its circular No. 1176, dated March 12,1933, the Federal Reserve Bank of New Yorkrequired dealers in foreign exchange doing business in the Second Federal Reserve Dis-trict to obtain from each person to whom they sell foreign exchange directly or indirectlya written declaration signed by such person describing the purpose for which the foreignexchange is purchased and certifying that the transaction in no way contravenes the Actof March 9, 1933, the Executive Order of March 10, 1933, or any regulation issued there-under. In view of the general license granted in the regulations quoted above, the Fed-eral Reserve Bank of New York will not now require dealers in foreign exchange doingbusiness 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 Yorkalso required dealers in foreign exchange doing business in the Second Federal ReserveDistrict to file with it daily written reports showing the foreign exchange position of suchdealers. These daily reports should be continued to and including Wednesday, November28, 1934, but will not be required thereafter, and in lieu thereof weekly or monthly reportswill be required as hereinafter indicated.

Every person having his principal place of business in the United States in the SecondFederal Reserve District and engaging in any transaction, transfer, export, or withdrawalreferred to in Section 1 of the Executive Order of January 15, 1934, shall furnish to theFederal Reserve Bank of New York complete information upon report forms to be pre-scribed by the Secretary of the Treasury, relative to such transactions, transfers, ex-ports and withdrawals, as follows:

1. Banks and bankers are required to report weekly as of the close of business each Wednes-day night beginning December 5, 1934;

2. Brokers and dealers in securities are required to report weekly as of the close of busi-ness 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 busi-ness abroad) are required to report monthly as of the close of business of the last Wednes-day in each month beginning December 26, 1934;

except that reports are not required to be furnished by (1) persons not carrying duringany part of the reporting period, accounts abroad or accounts in the United States fornon-residents thereof, or (2) persons whose aggregate transactions, transfers, exports,or withdrawals for their own account and the account of others do not exceed $5,000during any seven-day period.

The transactions, transfers, exports, and withdrawals referred to in Section 1 of theExecutive 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 institu-tion within the United States and any banking institution outside of the United States

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(including any principal, agent, home office, branch, or correspondent outside of theUnited States of a banking institution within the United States), and the export or with-drawal from the United States of any currency or silver coin which is legal tender in theUnited States, by any person within the United States."

Persons in the Second Federal Eeserve District who are required to furnish reportsshould 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 orincidentally in the business

(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 corre-spondents; and

(c) The term "foreign exchange" means checks, drafts, bills of exchange, cable trans-fers, or any form of negotiable or assignable instrument or order used (1) to transfercredit or to order the payment of funds in any foreign country, or (2) to transfercredit or to order the payment of funds within the United States for foreignaccount.

GEORGE L. HARRISON,

Governor.

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