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Following the Spanish American War, the U.S. dollar was the official currency of Cuba. To maintain the island's currency quality and supply, and to provide services to the U.S. and Canadian banks located in Cuba, the Federal Reserve banks of Atlanta and Boston opened agencies in Havana in 1923. Atlanta handled currency operations, and Boston handled the cable business. Cuba had a history of banking and currency instability; thus, in April 1926 when rumors about a Canadian bank started a bank run, the Atlanta Fed stepped in to quell the panic. Over a weekend, the bank sent 42 pouches containing $26.5 million from the Jacksonville branch via a special three-car train to Key West and then by boat to Cuba, accompanied by Fed officials, guards and currency counters. The currency was too heavy for air shipment at that time. By Monday opening times, Havana banks had sufficient currency, and a crisis was averted. The Boston Fed operated its Havana office until 1927, and the Atlanta Fed until 1938. For the whole story, see “High Winds from Havana” in the Atlanta Fed's 75th anniversary history publication at www.frbatlanta.org/. |
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Annual Report
