Business: Reserve Banks in Cuba

Ever since a law was enacted by the Cuban Government making American currency legal tender in that country, many Federal Reserve notes found their way into circulation there. This led to the demand that a branch of a Federal Reserve Bank be located in Cuba.

Considerable friction over this proposal arose between the Reserve Banks of Boston and Atlanta. The Boston Bank, now headed by W. P. G. Harding, former Governor of the Federal Reserve Board, was first in the field with a proposal to establish a branch office in Havana. On the other hand, the Atlanta bank claimed that owing to geographical reasons, such a Havana branch should come under its jurisdiction.

After consideration by the Federal Reserve Board, both branches have been authorized to open branches in Cuba, with the understanding that complete cooperation between such branches be assured at all times.