The Washington times., 1933-03-09

follows:
"(B) During time of war or
during any other period Of ma
tional emergency declared by the
President, the President may,
through any agency he may
designate, or otherwise, investi-
gate, regulate, or prohibit, under
such rules and regulations as
he may prescribe, by means Of
licenses or otherwise, any trans
actions in foreign exchange,
transfers Of credit between bank
ing institutions as defined by the
President and export, boarding,
melting or earmarking of gold
or silver coin or bullion or cur
rel1cy by any person within the
United States or any place sub
feet 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 relative
thereto, including the production
Of any books of account, con-
tracts, letters or other papers,
fl connection Herewith in the
custody or control of such per-
son, either before or after such
transaction Is completed.
Fine and Prison
I Whoever wilfully violates any
Of the provisions of this sub
division or of any license, order,
rule or regulation issued there
under, shall, upon conviction be
fined not more than $4,000 or,
Il a natural person be imprisoned
for not more than 10 years or
both; and any officer, director
or agent Of any corporation who
knowingly participates in such
violation shall be punished by a
like fine, imprisonment or both.
As used in this subdivision the
term person means an individual,
partnership, association or cor
poration.
: Section 3. Section II of the
Federal Reserve Act is amended
BY adding at the end thereof the
following new subsection: Cn)
Whenever in the judgment of the
Federal Reserve Board such action
kS necessary to protect the gold
reserves of the Federal Reserve
System, the Federal Reserve
Board in its discretion and upon
the affirmative vote Of five Of
Its members, may require any or
Oil 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.
Credit Exchange
Upon receipt of such gold, gold
bullion or gold certificates. the
Federal Reserve Bank shall, at the
option Of the member bank, pay
shereof an equivalent amount Of
any other form or coin or cur
rency coined or issued under the
laws Of the United States or give
The member bank immediate
credit therefor in its reserve bal
Ance.
The Federal Reserve Bank shall
pay all costs of the Transportation
OF such gold bullion, gold certifi-
Gates, coin, or currency, including
the cost Of insurance, protection,
and such other incidental costs as
may be reasonably necessary. Any
member bank failing to comply
With any requirement of the Fed
era1 Reserve Board made under
this subsection shall be subject
70 a penalty equal to twice the
value Of the gold or gold certifi-
: Gates in respect of which such
failures occurred and such penalty
may be collected by the Federal
Reserve Bank by suit or other
wise.
= Rule of Operation
Section 4. In order to provide
Tor the safer and more effective
operation Of the national banking
system and the Federal Reserve
system to preserve for the peo-
pie the full benefits of the cur
rency provided for by the Con-
gress through the national bank
ing system and the Federal Re
serve system and to relieve inter
state commerce of the burdens
and distractions resulting from
the receipt of any unsound or un-
safe basis of deposits subject to
withdrawal by check, during such
emergency period as the Presi-
dent of the United States by
proclamation may prescribe, no
member bank Of the Federal Re-
serve system shall transact any
banking business except to such
extent and subject to such regu-
1ationS. limitations and restric-
lions as may be prescribed by
the Secretary of the Treasury,
with the approval of the Presi-
dent, and no bank, savings bank,
trust company or other banking
institution organized under the
law Of any State which is not a
member bank of the Federal Re
serve system shall transact any
banking business except to such
extent and subject to such regu-
lations, limitations and restric-