Page images
PDF
EPUB

INTERNATIONAL BANK FOR RECONSTRUCTION AND

DEVELOPMENT SECURITIES

HEARINGS

4

BEFORE THE

Camiw. COMMITTEE ON
HINTERSTATE AND FOREIGN COMMERCE.

HOUSE OF REPRESENTATIVES

EIGHTIETH CONGRESS

SECOND SESSION

ON

CAND DIVI

H. R. 6443

A BILL TO AMEND THE SECURITIES ACT OF 1933,
THE SECURITIES EXCHANGE ACT OF 1934,

AND THE NATIONAL BANK ACT

JUNE 4 AND 5, 1948

Printed for the use of the Committee on

Interstate and Foreign Commerce

1:-17

UNITED STATES
GOVERNMENT PRINTING OFFICE

WASHINGTON : 1948

78425

COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE

CHARLES A. WOLVERTON, New Jersey, Chairman CARL HINSHAW, California

CLARENCE F. LEA, California LEONARD W. HALL, New York

ROBERT CROSSER, Ohio JOSEPH P. O'HARA, Minnesota

ALFRED L, BULWINKLE, North Carolina WILSON D. GILLETTE, Pennsylvania VIRGIL CHAPMAN, Kentucky ROBERT HALE, Maine

LINDLEY BECKWORTH, Texas HARRIS ELLSWORTH, Oregon

J. PERCY PRIEST, Tennessee MARION T. BENNETT, Missouri

OREN HARRIS, Arkansas JAMES I. DOLLIVER, Iowa

GEORGE G. SADOWSKI, Michigan
EDWARD J. ELSAESSER, New York RICHARD F. HARLESS, Arizona
JOHN W. HESELTON, Massachusetts DWIGHT L. ROGERS, Florida
HUGH D. SCOTT, JR., Pennsylvania

EUGENE J. KEOGH, New York
WILLIAM J. MILLER, Connecticut
HENDERSON H. CARSON, Ohio
JOHN B. BENNETT, Michigan
FRED E. BUSBEY, Illinois

ELTON J. LAYTON, Clerk

ROYICE RENO, Assistant Clerk
II

arby

U6
19A

[blocks in formation]
[merged small][ocr errors]

93

Page

Text of H. R. 6443.

1

Statement of-

Black, Eugene, executive director, International Bank for Reconstruc-

tion and Development..

13, 85, 135

Foster, Roger S., solicitor, Division of Trading and Exchanges,

Securities, and Exchange Commission..

93

Fulton, Wallace H., executive director, National Association of
Security Dealers..

128

Hanrahan, Edmond M., chairman, Securities and Exchange Com-

mission.

93

Loss, Louis, chief counsel, Division of Trading and Exchanges, Securi-

ties and Exchange Commission.-

93, 138

Luxford, Ansel F., assistant general counsel, International Bank for

Reconstruction and Development..

103, 135

Lynch, Thomas J., acting general counsel, Treasury Department. 131

McConnaughey, Robert K., Commissioner, Securities and Exchange

Commission

93

Mooney, Michael E., special counsel, Division of Corporation Finance,

Securities and Exchange Commission.-

Nurick, Lester, office of general counsel, International Bank. 86, 139
Briefs, reports, statements, etc., submitted for the record by-
Federal Reserve System, Board of Governors of, report

11

International Bank for Reconstruction and Development:

Communication from, to Secretary of the Treasury

3

Memorandum with regard to legality of bonds for investment by

commercial banks, insurance companies, and trustees in certain

jurisdictions.

41

World Bank Bonds Inured to Market, etc., article from several

newspapers.

62

National Association of Securities Dealers, Inc.:

Communications from-

Billet, L. R., chairman, Board of Governors..

12

Fulton, Wallace H., executive director.

12

Proposed addition to H. R. 6443----

12

Rumbaugh, John H., telegram from, to chairman Wolverton.--

90

Securities and Exchange Commission:

Communication from, to clerk..

10

Report.

Treasury Department:

Communications from Secretary Snyder to-

Chairman Wolverton.-

7

7

Speaker Martin.

2

Wolverton, Hon. Charles A.:

A Look at World Bank Bonds, article from Commercial and

Financial Chronicle...

142

World Bank Seeks Exemptions from Laws Protecting Investors

to Get Wider Market for Its Securities, article from Wall Street
Journal..

14

III

INTERNATIONAL BANK FOR RECONSTRUCTION AND

DEVELOPMENT SECURITIES

FRIDAY, JUNE 4, 1948

HOUSE OF REPRESENTATIVES,
COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,

Washington, D. C. The committee met at 10:30 a. m., Hon. Charles A. Wolverton (chairman) presiding.

The CHAIRMAN. The committee will come to order. The committee has before it this morning for consideration H. R. 6443, to amend the Securities Act of 1933, the Securities Exchange Act of 1931, and the National Bank Act.

(The bill referred to is as follows:)

[H. R. 6443, 80th Cong., 2d sess.)

A BILL To amend the Securities Act of 1933, the Securities Exchange Act of 1934, and the

National Bank Act

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That paragraph (a) (2) of section 3 of the Securities Act of 1933, as amended (U. S. C., title 15, sec. 77c), is amended by adding to the end thereof the following: “or any security issued or guaranteed by the International Bank for Reconstruction and Development;".

Sec. 2. Paragraph (a) (12) of section 3 of the Securities Exchange Act of 1934, as amended (U. S. C., title 15, sec. 78c), is amended to read as follows:

"(12) The term 'exempted security' or 'exempted securities' shall include securities which are direct obligations of or obligations guaranteed as to principal or interest by the United States; such securities issued or guaranteed by corporations in which the United States has a direct or indirect interest as shall be designated for exemption by the Secretary of the Treasury as necessary or appropriate in the public interest or for the protection of investors; securities which are direct obligations of or obligations guaranteed as to principal or interest by a State or any political subdivision thereof or any agency or instrumentality of a State or any political subdivision thereof or any municipal corporate instrumentality of one or more States; securities issued or guaranteed by the International Bank for Reconstruction and Development; and such other securities (which may include, among others, unregistered securities, the market in which is predominantly intrastate) as the Commission may, by such rules and regulations as it deems necessary or appropriate in the public interest or for the protection of investors, either unconditionally or upon specified terms and conditions or for stated periods, exempt from the operation of any one or more provisions of this title which by their terms do not apply to an 'exempted security or to 'exempted securities'."

Sec. 3. Paragraph seventh of section 5136 of the Revised Statutes, as amended (U. S. C., title 12, sec. 24) is amended by adding at the end thereof the following new sentence: "The limitations and restrictions herein contained as to dealing in and underwriting investment securities shall not apply to obligations issued by or guaranteed as to principal and interest by the International Bank for Reconstruction and Development: Provided, That no association shall hold obligations issued or guaranteed by the said bank as a result of underwriting, dealing,

1

« PreviousContinue »