Evening star., 1933-03-13
BOARDING BLOCKED
.BY BANKING RULES.
Institutions Permitted to Ask
! Patrons What Is to Be
{ Done With Money.
By the Associated Press.

By the Associated Press.
New regulations to hold tight the
Governments control of gold and to
prevent what President Roosevelt calls
the unpopular pastime" Of boarding,
today governed the banks that were told
they could reopen.
In issuing these regulations, Secre-
tary Woodin reminded that no business
could be done with gold coins or gold
proviso that a number Of Federal and
private institutions taking advantage Of
the opportunity to reopen must deliver
all gold or gold certificates to the Treas
ury within 80 days. .-
And he likewise gave to the banks
the, power to demand statements under
oath that money to be withdrawn will
not be boarded.
Many Cities Listed.
Authorized to open today on these
terms were Federal Reserve and licensed
banks in Boston, New York, Phila-
delphia, Richmond, Atlanta. Cleveland,
Chicago, st. Louis, Kansas City, Dallas,
Minneapolis and San Francisco: Fed
eral Reserve branch banks in Buffalo,
Cincinnati, Pittsburgh, Baltimore, Char
lotte, New Orleans, Jacksonville, Bir-
mingham, Nashville, Detroit. Louisville,
Memphis, Little Rock, Helena, Mont;
Omaha, Denver, Oklahoma City, Ell
Paso, Houston, San Antonio Los An
geles, Portland, Greg; Salt Lake City,
Seattle and Spokane.
The institutions to which the new
gold order applies are Federal land
banks, intermediate credit banks, joint
stock land banks, Federal home loan
banks, regional agricultural credit cor
porations and the Reconstruction Cor
poration.
May Block Withdrawals.
Wood1n'S announcement about hoard
ing Withdrawals was addressed to all
banking institutions, whether or not
licensed to carry on usual and normal
functions" and said:
NO banking institution shall permit
any withdrawal by any person when
such institution, acting in good faith,
shall deem that the withdrawal is in
tended for boarding. Any banking In
stltution, before permitting the with
drawal of large or unusual amounts of
currency, may require from such per-
son requesting such withdrawal a full
statement under oath of the purpose
1or which the currency is requested -
The text of the new regulations fol-
lows:
Regulation No. 10. Except as other
wise prohibited by law, banking insti-
tutionS may exercise their normal and
usual functions in permitting Substi-
tuition for or release of collateral held
by them, provided other collateral or
cash of equal or greater value is re-
celved in exchange therefor"
"'ReQ1lIa tiOD 10 EodoroI Dor,.,,o
banks and their branches and agencies
may open March 13, 1888, and may re-
main open for the performance of all
usual and normal banking functions ex-
cept as prohibited by the executive or
der issued by the President on March
10, 1888, and any further orders or
regulations hereafter issued"
Forbids Paying Of Gold.
Regulation 81. Banking institutions
which are not members of the Federal
Reserve system or organized under the
laws of the United States and which
are not under the immediate super
vision of any State authority may, on
or after March 13, 1885, carry on their
normal and usual functions except as
otherwise prohibited and except that
no such institution shall pay out any
gold coin. gold bullion or gold certifi-
Gates, unless authorized by the Secre-
tary OF the Treasury, nor allow with
drawal of any currency for boarding,
nor engage in any transaction in for
eign exchange except such as may be
undertaken for legitimate and normal
business requirements, for reasonable
travelling and other personal require
ments. and for fulfillment Of contracts
entered into prior to March 6. 1888"
To- NJ E1odoro1 q nd
banks, Federal intermediate credit
banks, joint stock land banks, Federal
home loan banks, regional agricultural
credit corporations and the Reconstruc-
tion Finance Corporation are hereby
permitted to open at 9 o'clock Am.
Monday, March 13, 1893, to perform
their usual banking functions, except to
the extent prohibited by the executive
order Of the President of the United
States. issued March 10, 1888, by Fed
eral or State law. or as may hereafter
be limited or prohibited by regulations
promulgated by the Secretary of the
Treasury.
Can Revoke Authority.
This permission, as to each Of the
foregoing banking institutions, may be
revoked, in whole or in part, by the
Secretary of the Treasury at any time,
and is granted as to each such insti-
tuition upon the express condition that
such institution shall deliver, within 80
days from the date hereof, to the Treas
urer of the United States, or to Fed
eral Reserve bank, or Federal Re-
serve branch bank Of the district in
which it is located. all gold coin. gold
bullion and gold certificates owned by
1t. and receive payment in credit or in
other forms Of coin or in currency"
Regulation No. "a, respecting State
drafts, follows:
"All banking institutions may cash
official drafts drawn upon the Secretary
Of State for payment Of salaries. trav-'
cling and other contingent expenses, but
not for personal account, and remit the
amounts thereof to the banks from
which the drafts are received, provided
that no gold or gold certificates shall
be paid OUT