FEBRUARY 1,1918. FEDERAL BESERVE BULLETIN, 87

Trading With the Enemy.

The following statements for the press wereissued by the War Trade Board on January 26:

PROTESTS OF " ENEMY" PAPER.

The War Trade Board has authorized allpersons in the United States holding notes,checks, or drafts, upon which an " enemy" or"ally of enemy" appears, or the handling ofwhich involves in any way trading with, orfor, or on behalf of, an "enemy" or "ally ofenemy," to perform such acts as may be neces-sary to perfect their rights against thosesecondarily liable on such notes, checks, ordrafts, in the event that acceptance or paymenton such drafts or checks, or payment on suchnotes is refused: Provided, however, that thisauthorization shall not be deemed to legalizethe presentation of any drafts, checks, or notes,for acceptance or payment, or the receipt ofpayment on any drafts, checks, or notes, uponwhich an "enemy" or "ally of enemy'7 ap-pears, or where such presentation would in-volve trading with, or for, or on behalf of, an"enemy" or "ally of enemy," without a licensefrom the War Trade Board.

PAYMENT OF UNITED STATES PATENT OFFICE

The War Trade Board has authorized thepayment of United States Patent Office feesrequisite for the filing, prosecution, registra-tion, and preservation of patents, trade-marks,prints, labels, or copyrights, of an "enemy"or "ally of enemy," by any person within theUnited States, where such person is the holderof a power of attorney granted by such"enemy" or "ally of enemy:" Provided, how-ever, that when such fees are to be paid fromthe funds of an "enemy" or "ally of enemy"in the United States, such payment shall bemade subject to the approval of the AlienProperty Custodian.

COUPONS FOR FOREIGN OWNERS DUE PRIOR TOJANUARY 1, 1918.

The War Trade Board has authorized banksand others having coupons to collect, whichwere due prior to January 1, 1918, for foreignindividuals, firms, corporations, or others, tomake such collection without obtaining licenses

from the War Trade Board or authority fromthe Federal Reserve Board: Provided, how-ever, that any funds so received, which thecollecting agency has reason to believe are theproperty of an "enemy" or "ally of enemy,"or will be used for the benefit, directly orindirectly, of an "enemy" or "ally of enemy,"must be held in separate account under noticeto the Alien Property Custodian.

Sale of War Savings Certificates.

The Treasury Department, in a circulardated January 2, 1918, has furnished informa-tion regarding a method of obtaining war-savings certificate stamps and United Statesthrift stamps for cash, which may be used asan alternative to the method heretoforeprovided. The circular in question is asfollows:

[1917. Department Circular No. 96. War-Savings Circular No. 3.Loans and Currency.)

As an alternative to the method provided inTreasury Department Circular No. 95, anyagent for the sale of war-savings certificates,war-savings certificate stamps, and UnitedStates thrift stamps (as well as individuals,partnerships, corporations, and the duly au-thorized representatives of labor, fraternal, andother associations, even though not previously

agents) may obtain from a FederalReserve Bank, for sale to the public, war-savings certificate stamps in excess of $1,000(maturity value), and also United States thriftstamps, with an adequate supply of war-savings certificates and thrift cards, upon theconditions stated below.

Anyone desiring to obtain war-sayings cer-tificate stamps and United States thrift stampsas provided in this circular must execute anddeliver to a Federal Reserve Bank an applica-tion on Form No. 1025, hereto attached (copiesof which may be had from any Federal ReserveBank).

Such application must bear the recommen-dation of a Federal director of war-savings, aState director of war-savings, or of some otherperson acceptable to such Federal ReserveBank. Upon approval of such application bysuch Federal Reserve Bank the applicant may,from time to time, deposit cash with suchFederal Reserve Bank, as fiscal agent of theUnited States, and obtain therefor deliveries

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MARCH 1, 1918. FEDERAL RESERVE BULLETIN. 171

very effective piece of work on the part of anauxiliary committee member who, upon hisown initiative, appeared before the public-debtcommission of a certain city and, upon a simplepatriotic appeal, caused that commission toreduce a contemplated issue of securities from$6,000,000 to $1,000,000. If such effectiveresults can be obtained by such simple anddirect methods by the single-handed action ofan individual, even where the amount involvedwas so large, what might not be accomplishedin the thousands of cases of unnecessary ex-penditures of amounts not coming within thepurview of the committee at the present time ?

The chairman stated to the conference thatthe following rules of procedure with respectto the handling of applications had beenadopted by the Advisory Committee:

Applications should be made in duplicateand, whenever possible, should be filed withand received by the proper subcommittee,one copy being retained by the subcommitteeand the other sent to the Capital Issues Com-mittee when complete:

The subcommittee shall be requested to seethat the form of the application is sufficientand that the information furnished complieswith the requirements of the general instructions.

The subcommittee to be requested to deferinvestigation and the formulation of anyrecommendation until requested by the Advi-sory Committee.

The chairmen of the subcommittees generallyreported a most satisfactory condition of heartycooperation in every district on the part of themunicipalities, bankers, brokers, and others.Some of them, however, stated that in somerare cases the unfortunate attitude had beentaken by certain prospective applicants ofheeding peace propaganda and looking uponthe committee's work as a temporary expedientthat would soon become obsolete upon thedeclaration of a not very distant peace. Thechairman emphasized the obvious fallacy ofsuch belief and stated that in all districtsdetermined efforts should be made to over-come the pernicious tendencies of such anattitude.

Trading With the Enemy,Following are statements for the press issued

by the War Trade Board:

BRANCHES OF AMERICAN HOUSES IN FOREIGNCOUNTRIES.

The War Trade Board has authorizedbranches of United States corporations and

other American houses, established and en-gaged in business in neutral countries, or incountries associated with the United States inthe war:

1. To receive in payment of indebtedness,and to collect drafts or checks drawn or in-dorsed by enemies or allies of enemies whererefusal to accept the same may result in failureto collect the debt;

2. To pay drafts or checks drawn in favor of,or indorsed by, enemies or allies of enemieswhere refusal to pay the same will result in aviolation of law or commercial obligation;

3. To receive for collection drafts or checksdrawn by, or accepted, or indorsed by enemiesor allies of enemies; and

4. To become a party to clearing-house trans-actions in the ordinary course of business whereany enemy or ally of enemy may be a member ofsuch clearing house:

Provided, That a written report of every suchtransaction of trade with the enemy or enemyallies shall be mailed to the War Trade Board,Washington, D. C, on the 5th day of eachmonth, covering the transactions of the pre-ceding calendar month under 1, 2, and 3 above.Such report must state the dates of the respect-ive transactions, the respective names of thedrawers, drawees, and indorsers, and therespective' amounts of the drafts and checksinvolved. Any United States corporation orother American house joining a clearing houseunder 4 above, shall immediately mail to theWar Trade Board, Washington, D. C, a state-ment of the facts in the case.

JANUARY 28, 1918.

MARINE INSURANCE SURVEYS AUTHORIZED.

The War Trade Board has authorized boardsof marine underwriters and marine insurancecompanies to participate in surveys to deter-mine the cause and extent of loss of cargoesand vessels and to issue certificates showingthe findings of such surveys, notwithstandingthat the persons who ultimately may be en-titled to the insurance money are enemies orallies of enemies. This action has been takenin order that the insurance companies may pro-ceed with their usual investigations of marinelosses regardless of the interests involved, butit does not authorize the payment of anyinsurance money to an enemy or ally of enemy.

The precise limits of the new regulation areshown in the following resolution of the WarTrade Board:

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172 FEDERAL RESERVE BULLETIN. MARCH 1, 1918.

Resolved, That boards of marine underwritersand marine insurance companies, and theircorrespondents or agents, be, and they herebyare, authorized in the case of damage to vesselsor cargo:

(1) To attend upon a survey, or exercise avoice in the selection of members of a board ofsurvey, to determine the exact extent of theloss and the causes which have contributed toit, even though such boards of marine under-writers and marine insurance companies ortheir correspondents or agents may haveknowledge or reasonable cause to believe thatcertain of the persons who ultimately may beentitled to indemnity against such under-writers or insurance companies are enemies orallies of enemies or are acting for or on behalfof enemies or allies of enemies.

• (2) To sign and issue, as the result of suchsurvey, a survey certificate showing the itemsof damage, expenses, etc., and the apparentcause or causes from which the same arose;

Provided, however, That nothing herein con-tained shall be deemed to authorize the pay-ment of any indemnity by such board of under-writers or marine insurance company to anenemy or ally of enemy or person acting foror on behalf of an enemy or ally of enemy.

FEBRUARY 6, 1918.

RESOLUTIONS AS TO COUPONS DUE PRIOR TOAND ON JANUARY 1, 1918, RESCINDED.

In view of the President's Executive orderof January 26, 1918, which requires holders ofcoupons for foreign account to obtain certaincertificates from the Federal Reserve Boardand otherwise conform to its regulations, theWar Trade Board has revoked its former rulingswhich authorized the collection of coupons dueon or before January 1, 1918, for foreign indi-viduals, firms, and corporations without ob-taining licenses from the War Trade Board, orauthority from the Federal Reserve Board.The action of the board is set forth in full inthe following preamble and resolutions adoptedby it:

Whereas by an Executive order of the President, datedJanuary 26, 1918, covering foreign exchange and otherrelated transactions, the holders of coupons for foreignaccount must obtain from the Federal Reserve Boardcertain certificates and file certain declarations from foreigncorrespondents;

Resplved, That the following resolutions of the WarTrade Board, relating to the collection of coupons dueJanuary 1,1918, and prior thereto, for foreign individuals,firms, corporations, or others, be and they hereby are,repealed, namely:

(1) Resolved, That bankers and others haying couponsto collect, due January 1, 1918, for foreign individuals,firms, corporations, or others, are not required, until furthernotice, to obtain licenses from the War Trade Board orauthority from the Federal Reserve Board in order to makesuch collection: Provided, That any funds so receivedwhich the collecting agency has reason to believe are theproperty of an enemy or ally of enemy, or will be used forthe benefit, directly or indirectly, of any enemy or allyof enemy, must be held in separate account under noticeto the Alien Property Custodian. (Adopted Dec. 31,1917.)

(2) Resolved, That banks and others having coupons tocollect, which are due prior to January 1, 1918, for foreignindividuals, firms, corporations, or others, are not requiredto obtain licenses from the War Trade Board, or authorityfrom the Federal Reserve Board in order to make suchcollection: Provided, however, That any funds so received,which the Collection agency has reason to believe are theproperty of an enemy or ally of enemy, or will be used forthe benefit, directly or indirectly, of an enemy or ally ofenemy, must be held in separate account under notice tothe Alien Property Custodian. (Adopted Jan. 16, 1918.)

FEBRUARY 18, 1918.

GENERAL BLANKET LICENSE TO CANADA.

A general blanket license has been issuedto-day permitting, without individual importlicenses, the importation of all commoditiesfrom Canada with the exception of thosementioned in the President's proclamation ofNovember 28, 1917, this to be in force untilrevoked by the Bureau of Imports.

With respect to shipments from all othercountries, importers are urged to make hastein sending to the Bureau of Imports, Wash-ington, D. C, their applications for importslicenses.

FEBRUARY 20, 1918.

CHANGES IN ENEMY TRADING LIST.

The War Trade Board announces that thefollowing name has been removed from theenemy trading list: Martinex, Vincento (Mar-tinez, Vincente), Cartagena, Colombia.

The following name has been added to theenemy trading list: Struck, German, Pro-greso and Merida, Mexico.

FEBRUARY 20, 1918.

Subtreasuries and the Federal Reserve Banks*

A report of the Bureau of Efficiency dealingwith the work performed by the Sub treasuries 7

and submitting a plan to consolidate them withFederal Reserve Banks, was laid before Congress

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March 1918