Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-03-09
<HE text sof the emergency bank
ing bill follows:


A bill to provide relief In the
i existing national emergency In
banking and for other purposes.
Be 1t enacted by the Senate and
House Of Representatives Of the United
States Of American In Congress as
sembled, That the Congress hereby
declares that a serious emergency ex-
lists and that it is imperatively neces-
sary speedily to put into effect RENE
dies of uniform national application.
Section l. The actions regulations,
rules, licenses, order and proclamationS
heretofore or hereafter taken, promul-
gated, made, or issued by the President
Of the United States or the Secretary
of the Treasury since March 4, 1888.
pursuant to the authority conferred
act Of October 6. 1917, as amended,
are hereby approved and confirmed.
Section 2. Subdivision (b) of section
Of the act of October s, 1917 (40
Stat. L., AID, as amended, Is hereby
amended to read as follows:
Powers Outlined.
"(B) During time Of war, or during
any other period of national emergency
declared by the President, the President
may, through any agency that he may
designate, or otherwise. investigate,
regulate, or prohibit, under such rules
and regulations as he may prescribe, by
means of licenses or otherwise, any
transactions in foreign exchange, trans
fers of credit between banking 1nStltu-
tons as defined by the President, and
export, boarding, melting or earmark-
I'll hill Inn mr.
currency. by any person within the
United States or any place subject to
the Jurisdiction thereof, and the
President may require any person
engaged in any transaction referred
to in this subdivision to furnish
under oath, complete information rela-
tive thereto including the production OF
any books of accounts, contracts, letters
or other papers, in connection there
with in the custody or control Of such
person, either before or after such trans
action is completed. Whoever willfully
violates any Of the provisions OF this
subdivision or Of any license. order. rule
or regulation issued hereunder. shall.
upon conviction be fined not more than
$4,000, or, If a natural person, be i'm
prisoned for not more than 10 years, or
both; and any officer, director or agent
Of any corporation who knowingly par
ticipates in such violation shall be pun
ished by a like fine, Imprisonment or
both. As used In this subdivision, the
term person means an individual, part
nership, association or corporation"
Section 3. Section IL Of the Federal
Reserve act is amended by adding at
the end thereof the following new
subsection:
"(nO Whenever In the judgment OF
the Secretary of the Treasury such
action Is necessary to protect the gold
reserves Of the Federal Reserve System,
the Federal Reserve Board. In its dis
cretion and upon the affirmative vote
of five of its members, may require
any or all member banks to pay and
deliver to the Federal Reserve Bank
any or all gold coin, gold bullion. and
gold certificates owned by such member
bank or banks. Upon receipt OF such
gold coin, gold bullion or gold certifi-
Gates. the Federal Reserve Bank shall.
at the option of the member bank, pay
therefor an equivalent amount OF any
other form of coin or currency coined
or issued under the laws Of the United
States. or give the member bank i'm
mediate credit therefor In its reserve
balance. The Federal Reserve Bank
shall pay all costs of the Transports
ton of such gold bullion. gold certifi-
Gates, coin or currency, including the
cost of insurance, protection and such
other incidental costs as may be rea-
sonably necessary. Any member bank
failing to comply with any requirement
Of the Federal Reserve Bank made
under this subsection shall be subject
to a penalty equal to twice the value
of the gold or gold certificates in re-
spect of which such failure occurred.
and such penalty may be collected by
the Federal Reserve Bank by suit or
otherwise
Examinations Provided.
Section 2O4. The controller OF the
currency shall cause to be made such
examinations of the affairs Of such bank
as shall be necessary to inform him as
to the financial condition Of such bank.
and the examiner shall make = report
thereon to the controller Of the cur
rency at the earliest practicable date.
Section 2O5. If the controller Of the
currency becomes satisfied that 1t may
safely be Done and that 1t would be
in the public interest he may. in his
discretion, terminate the cOnservator-
ship and permit such bank to resume
the transaction of its business subject
to such terms, conditions, restrictions
and limitations as he may prescribe.
Strong Powers Given.
Section 2O6. While such bank is in
the hands of the conservator appointed
by the controller Of the currency. the
controller may require the conservator
to set aside and make available for
withdrawal by depositors and payment
to other creditors, on q ratable basis,
such amounts as in the opinion Of the
controller may safely be used for this
purpose, and the controller may. in
his discretion. permit the conservator
to receive deposits, but deposits received
while the bank is in the hands Of the
conservator shall not be subject to
any limitation as to payment or
withdrawal, and such deposits shall be
segregated and shall not be used to
liquidate any Indebtedness of such bank