Evening Star Newspaper, March 7, 1932, Page 4

S ) i OFFENSE PENED ON DL DOLLAS Heover Calls on Nation to Show Faith in' U. S. by Freeing Hoarded Cash. (Continued From First Page) bonds” issued by the Treasury solely to attract dollars now hidden, asserted the drive of his forces was in no sense a campaign to sell Government bonds, and summed it up “We have organized a national em- ployment agency .to find jobs for idle dollars. We do not care what the job is so long as the dollar goes back to Mills Indorses Campaign. After the President spoke, following Knox, the scene again was shifted. The three remaining speakers stood before the microphones of both broad- casting systems, placed in the Willard Hotel. Secretary Mills indorsed unequivocally the campaign of the citizens struction organization. Detailing the Government’s effort to relieve credit strain, he added that the real task of re- construction must be undertaken by the people themselves. “The tune has come when we can ap- peal to them to take such steps to help themselves as are definitely within theirl power,” he said { The Treasury chief asserted that hoarding could be accounted a major factor “in the inability of our banking system to function fully in this emer- gency and has in fact been one of the | primary causes of the later phases of the business depression Dawes pointed an oral finger directly at those whose money has been with- drawn from banks or investments and held in the shape of currency. Hold Back Prosperity. “No matter whether you have now in your possession $10 or $10,000 in coin or currency,” Dawes said, “you, and others like you, combined, possess about one bil- lion dollars of hoarded money and be- long to a most powerful financial group upon whose actions, in response to the President’s call, largely depends the re- turn of prosperity to the United States. “As long as this currency is out of circulation we must remain as & people for an jniefinite time under the terrible hardships of an unprecedented business, industrial and commercial stagnation with all its consequent human misery.” The anti-hoarding drive, Col. Knox explained, “is, broadly speaking. a Na- tion-wide campaign to put money back to work.” He explained the ext. *“According to statistics s Federal Reserve Bank. 1 and Pebruary 6. oarding. mcun—i form the purpose for which it tended—unemployment would be diminished, business would commence to revive and confidence would take the place of fear. No one is asked to per- form an imprudent act or to sacrifice his resources in doolish enterprise. Ail that is desired, all that can be asked, is that money now hoarded shall be made useful by its employment for sound and essential purposes.’ Text of Speech. The text of Secretary Mills' speech follows “The Treasury Department whole- to heartedly indorses the campaign under- taken by the Citizens’ Reconstruction Organization to put our idle dollars to work. “Through the co-overative action of the Chief Executive and of the Con- gress, characterized by a fine spirit of non-partisanship, great progress has been achieved in carrying out the Gov- ernment’s reconstruction program. The | mobilizing of available resources has enormously strengthened our credit lslructure and counteracted the causes that have given rise to all manner of fears and apprebensions. By balancing the budget the Government is putting its own financial house in order. But, after all, the most the Government can do is to aid in the creation of condi- tions favorable to recovery. The real task of reconstruction must be under- taken by the pecple themselves., “The time has come when we can appeal to them to take such steps to help themselves as are definitely within their power, and in the conduct of their own affairs constantly to keep in mind the welfare of the community and of the country. A very real responsibility rests on every individual citizen. “The measure of self-help which we are discussing this evening is simple, and. if understood, obvious. It consists in restoring to active use the dollars that have been withdrawn from circu- lation. “The need for calling the existing sit- uation to your attention has arisen be- | cause many of our citizens have taken the dollars which they command and placed them on the retired list. They have made of them idle dollars, which are of no service to the community and bring no return to their owners. As a result we have suffered a vast credit contraction, which in turn has adversely affected business and employment. Secret Hoards Assailed. “When I talk of dollars being placed on the retired list I do not want any one to understand that I am referring to savings. What I have in mind is the withdrawal of currency from the ordi- nary channels of circulation, not the deposit of funds in a savings or check- ing account in a sound bank or invest- ment in sound securities. These are forms of using currency in a normal way. What I am referring to is the secreting of money in safe deposit boxes, or in socks, or under mattre: , or in can, where it lles idle and ceases ork for its owner or anybody else. Money saved in banking institutions or otherwise invested represents purchas- ing power placed at the disposal of those engaged in business, benefiting both the borrower and the lender. Buried_money, on the other hand, is so much puper or metal. It is inactive. It brings in no return. It does not grow. been withdrawn hence from cir: 000,000, all of w hiding and becom huge sum “But these negative evils are not the only ones to which such action gives From years of experience banks rned how much cash they cus- require in their tills to meet ordinary demands of their deposi- 5. Since uncer normal circumstances & bank is receiving deposits as well as cash and checks which have been drawn it by its depositors, it can operate a relatively small amount of cash can employ a large amount of its rees to make loans and invest which at the same time earn a depositors, and place funds at the dis- | posal of borrowers who need them to 1,300 communities, nearly the entire urban popu the United States, awaited the starting gun. “Their quest is to find the hidden dollar,” he said, “and to urge its re- employment as part of the working cap- ital of the country. Senator Robinson likened the present :_l{rum for rebuilding prosperity to a “During the World War,” he said. “our people gave to mankind an inspir- ing example of unity of purpose and of patriotism unparalleled in history. Industries were disarranged. Produc- tion was quickened and augmented. Danger was encountered and sorrow was endured. Faith triumphed over fear, and courage was exemplified by sacrifice and suffering. We are now war with subtle forces more cunning and destructive than foes armed with the deadly instruments of modern war. “Just as money was necessary to vic- tory in 1918, so is it essential in the present economic war., There is per- haps an abundance of money if the funds now out of use and hidden could be restored to circulation.” Pointing out that there naturally were “marked differences of opinion” as to the causes and proper remedies for the present situation. Senator Robinson gaid there was, however, “one vital principle concerning which general, if not universal, concurrence may be had It is” he said, “that recovery cannot be accomplished until the enormous volume of money that has been with- drawn from use and hoarded has been Testored to circulation.” Depositors Frightened. “There have been many bank fail- ures,” said the Democratic leader. “In consequence depositors have become confused and frightened. Still there are many banks which have successfully withstood the shock and strain of the economic upheaval. Sound loans on existing values abundant to absorb bank funds in excess of required reserves may be readily obtained once the threat and dread of withdrawals by derpsitors have been dissipated. Unless awf until this fact is recognized full advaskage cannot result from advances mada by the Re- construction Finance Corporation, and frozen assets will continue to obstruct the flow of life blood through the veins and arteries of trade and commerce."” Discussing real estate values, Senator Robinson said “it is readily seen that real estate values are not fairly calcu- lated to continue as at present, and that they are logically calculated to take an upward tendency during any prolonged period. “Granting that the return of general prosperity will be slow,” said Senator Robinson, “and that a measure of fluc- tuation in stock prices may be expected, nevertheless every circumstance indi- cates that the market now is measur- ably and permanently stabilized. Nu- merous bonds are available for purchase on terms that are secure, even though the revival prove slow and uncertain.” May Promote Own Interests. Recommending purchase of Govern- ment bonds, Senator Robinson said “those who have- idie funds, which they have feared to use, may promote their own interests, and the public welfare by purchasing these Government sccurities. e national budget will be balanced,” Senator Robinson predicted, “and the ublic credit maintained even though Increased taxes are required and addi- tional sources of revenue must be found. Government bonds, Treasury notes and certificates can be acquired at just reasonable prices. They rest upon the honor and the wealth of the Nation, ‘They will be paid. Why should any one keep his money in lock boxes or in other places where it is worse than useless?” A hopeful picture was painted by the Arkansas Senator as a possible result the end of hoarding. “Ours is still e best land in all the world,” he said. “We must do our utmost to keep it so— to maintan these institutions which un- derly happiness, peace and comfort. fl woot = ::\unfi:;e ducoum(ed ver 3 are groping in darkness. They are entitled to re- ceive the sym| and aid, which can of business aectivity may | finance industrial or commercial opera- tions. “In our credit system banks have for years done business on just this basis, and have performed a most important service in providing for the credit needs of their communities. When depositors suddenly call for unusual amounts of cash far in excess of ordinary require- ments, this system receives a severe shock. The banks must obtain addi- tional cash, and in order to do that must borrow from their Federal Re- serve banks. But debts are apt to worry bankers as they worry individuals. “Being in debt to the Reserve banks makes them reluctant to lend to their customers, and even inclines them to call in some of their customers’ loans or to sell their investments. This is the process of liquidation, and it is apt to be cumulative once it commences. ‘The withdrawal of cash from banks for hoarding has greatly hampered the banks of the country in the perform- ance of their important functions. A responsible banker faced with the lurk- ing possibility that he may be subject to the insistent demand to provide his depositors on a large scale with cash to be locked up in private hoards is re- luctant to extend credit freely even for legitimate business uses. Hoarding has undoubtedly been a major factor in the inability of our banking system to func- tion fully in this emergency, and has, in fact, been one of the primary causes of the later phases of the business de- pression. Return Flow Indicated. _“The program of financial reconstruc- tion has done much to re-establish con- fidence, and in recent weeks there has been evidence of a return flow of cur- rency back into the hands of banks. Wken this occurs the process described above is reversed. The banks receive cash for which they have no immediate need and deposit it with Reserve banks. There it is credited to the depositing banks’ account and can be used to pay off the bank's indebtedness, if it is in debt, or to increase its reserves. On the basis of these reserves the banks can lend several times the amount involved and serve the needs of many customers, who can then proceed with their busi- ness plans, increasing employment and helping toward the return of prosperity “Currency dollars when returned through the banks of the country to the Federal Reserve banks become reserve dollars, and reserve dollars are high- powered dollars, which in the right place can accomplish a great deal to- ward increasing business activity. But these same dollars buried in the ground can do a great deal of harm to the country’s economic life. “As a matter of enlightened self-in- terest, every one who holds these idle dollars should put them back to work through the placing of deposits with sound banking institutions or through the purchase of sound investments. I cannot assume to advise as to which method should be selected “But the Treasury Department is making available for purchase by the holder of idle dollars a special obliga- tion of the United States Government. | He or she may turn over the currency to the Treasury Department through the Federal Reserve banks and receive in return a promise of the Government to repay the funds on 60 days' notice with interest at 2 per cent. Thus the holder of currency can substitute for an obligation of the Government which bears no interest an obligation of the Government which fl‘" him 2 per cent interest. True, he has to walt 60 days should he desire to have the certificate Tedeemed, but in the meanwhile there should be a ready market should he desire to sell. These obligations are being offered for the special accommo- iation of those who have withdrawn and are holding currency. It is to them that the Treasury makes jhis appeal. Mature March 15, 1933, “These certificate will be dated March 15, 1932, will bear interest from that date at the rate of 2 per cent per annum, will mature on March 15, 1933, and will be redeemable before maturity at the option of the holder at par, plus accrued interest, upon 60 days' notice. The certificates will be issued in de- nominations of $50, $100 and $500, will be payable in United States gold coin of the present standard of value, and will be exempt, both as to principal and interest, from all taxes, except estate ‘fatth and the performance of the part of thequmore fortunate plwm ‘ "" should p2 P only be derived from the exercise of good and inheritance taxes. “Any bank in your community, I am confident, will giadly sccept your sub- scription, or may forward it di- rectly to the eral Reserve bank of your district, which is the fiscal agent THE EVENING STAR. WASHINGTON, D. C. MONDAY, MARCH 7. 1932, U. . OFFERS PAPER OF SOL0000) Treasury Certificates to Be Issued in Short-Term Financing Program. The Treasury was in the market to- day to borrow $900.000.000 more to help carry the Government over the March financing period. Secretary of the Treasury Mills in a formal statement last night explained that the offerings are in Treasury cer- tificates dated March 15. One issue will run for seven months bearing 3' per cent interest and totaling $300,000.- 000 and the other for one year bearing 3%, per cent interest and amounting to $600,000,000. The financing program has no con- nection with the issue of “baby” bonds. the 2 per cent certificates of indebted- ness to be put out in small denomina- tions for the President Reconstruction Committee organization as & means of luring hoarded money from its hiding places. Tax Receipts. Dwindle. The issuance of the certificates on March 15 was made necessary by dwindling Government receipts and the maturing of $623.891.500 in cer- tificates on March 15. Taxes which must be paid that day on 1931 income are not expected to total more than $200,000.000, about & third as much as during the boom days of three and four years ago. The sale of the certificates will make a total of $3,300,000,000 of securities sold by the Government in its financ- ing since the beginning of the fiscal year last July 1. About half the amount, however, went to retire maturing securities. In September the Treasury sold $1,100,- 000,000 of paper, while in December it floated $1,300,000,000. Its operations for the fiscal year, including the sale and retirement of Treasury biils, certifi- cates of indebtedness, Treasury notes and other forms of paper have resulted in issuance of securities totaling $6.321,000,000 and retirement of $4,997,- 000.000. There has been during the period an increase in the public debt of $1,324,000,000. Forced io Borrow. Sharp decrease in the Government’s receipts from all sources, led by the de- cline in income tsx payments, has forced the Government to borrow. For eight months of the fiscal year the Nation had a deficit of $1,781,000,- 000 with no hope of checking the drop to any great extent until June 30, even with additional funds to be raised through increased taxation. In the eight months income tax col- Jections totaled $658,121,000, as com- pared with $1,171,000,000 in the same period of the preceding year. Miscel- laneous internal revenue dropped $34,000,000 to $345,000,000 and customs receipts fell off $11,000,000 to $247- 000,000. i ———— The of the United States Government. circular describing the certificates may be obtained from your local branch of the Citizens' Reconstruction Organiza- tion or from the banks. ““This offering should not be confused with the Treasury's regular March pro- gram of financing, which will be an- nounced tomorrow morning. The Treas- ury obligations offered in that connec- tion are intended to provide for the current needs of the Government as distinguished from the specific demand which the special 2 per cent certificates e intended to meet. They will bear a higher rate of interest, but will not be subject to redemption on 60 days’ noti¢ by the holder. “In closing may I congratulate Col. Knox and the Citizens' Reconstruction Organization on the fine public service they are rendering. I urge you all to give them your active support and co- operation. They are fighting your bat- tle and mine on one sector of a very broad front. We have it within our power to strengthen the whole battle line against the forces of depression. They can and will be overcome if each and every one of us will but recognize a high sense of responsibility to his cémmunity and his country and meet his or her own daily problem with characteristic American resourcefulness and courage.” Gen. Dawes spoke as follows: “I am speaking directly to you who have withdrawn money from a bank and now hold it in the shape of cur- rency. “So far as this campaign is con- cerned, it is you whose action will count—no one else. The money is yours. You had the right to draw it and you have the right and power to keep 1t in any form you please. Under ordinary circumstances what you have done would be a matter of your own concern only and the business of no- | body else, but because so many other people at the same time have done the same thing you now occupy a new rela- tionship to the existing business de- pression and unemployment in the United States and have incurred a new and inqividual responsibility. “No matter whether you have now in* your possession $10 or $10.000 in coin or currency, you and others like you combined possess about $1,000,000,000 of hoarded money, and belong to a most powerful financial group, upon whose actions In response to the Presi- dent’s call largely depends the return of prosperity to the United States. “If you decide to keep this money in some other safe form rather than in currency itself, you will render an in- estimable service to our country and to the welfare of all our pesple, including yourself and yours. With this $1,000,- 000,000 hoarded money back in the sound banks of our country as a basis of credit snd increased = purchasing power, the country should be assured of a return to prosperity in a reasonable time. As long as this currency is out of circulation we must remain as a people for an indefinite time under the terrible hardships of an unprecedented business, industrial and commercial stagnation, with all its consequent human misery. “The primary purpose of this cam- paign is not to sell Government bonds of small denominations to raise money for the Government, but to get hoarded money into circulation in order to re- vive business and employment and bring back normal conditions of living. Where the bonds can be sold for cur- rency which has been hoarded the sale puts this money into circulation and at work again. But where money is al- ready in the banks, and is therefore circulating and at work, when you pay for the bonds by checks on a bank and not in currency the money in circulation is not increased and the real purpose of this campaign is not subserved. If. therefore, you buy Government bonds to carry out the purposes of this na- tional effort. pay for them in currency. Remember that the man or woman who is in & position to put back & sum of hoarded money in & sound bank or buy a Government bond with it is directly contributing to & return of prosperous conditions. You are all suffering from this business depression, and all will benefit if it can be checked. “You are now asked only to do a common sense thing. But it is more than this; it is a duty to your country and_your countrymen. “The President of the United States this evening has called upon you for action. He has speken to you in terms of your duty to the United States—our own country, which has given to all of us our opportunitiessin life and whose protecting flag is the symbol of the pride and reverence of a great people—our own country, Which we so love and honor and for which in time of war we have ever been ready to give even life itself. To you &s an American citizen in this time of t distress it is your country which now ap- ?uu. No appeal thus has ever led or will ever fail.” Hoover’s Appeal to Hoarders Declaring That 1dle Dollars Are Being Returned to ,Circulation, President Calls on People to Continue Participation. The address of President Hoover last night over both major radio networks signaling the start of the Govern- ment's drive against hoarding was as a great lift to the whole of our eco- nomic progress. Seeks Support of AlL Hoover’s Radio Plea Spurs DRIVE OPENS HERE ACAIST HOARDING Efforts—First Letters Enter Contest. “The Citizens’ Reconstruction Organ- 2 | folldm: | ization, which has been fcrmed at my Nation Rich in Spirit. | “It has been the spirit of its people that has made America great. Other regions and other people have enjoyed as great national resources as those that we possess, but it was the spirit of America that made this the richest and most powerful Nation on earth. For more than two years our people have paid the penalty of ov tion; but. far greater than ti have suffered from economic forces from abroad that fundamentally are the reflexes of the great war, a situa- tion for which our people had 1o blame They have stood their ground with grim courage and resolution. “But this is no occasion to discuss the origins or the character of the economic forces that have developed over the last two years. Fighting a great depression is a war with de- structive forces in & hundred battles | on a hundred fronts. We must needs fight &s In & great war; we must meet these destructive forces by mobilizing our resources and our people against them. A thoroughly non-partisan patriotic program of reconstruction is in prog- ress. The Government has exerted it- self to the utmost to give a sound, stable basis to the Treasury, to bank- ing. to industry and to agriculture. The Government alone cannot produce pros- perity, but it can liberate the inherent resources and strength of the American | people. The people themselves must | apply those resources and exert that strength. Time for Offensive. “The time has now arrived for a new offensive rally in the spirit that has | made America great. The battle front today is against the hoarding of cur- | rency, which began about 10 months | age, and with its growing intensity be- came a national danger during the last four months. It has sprung from fears | and apprehensions, largely the result of | foreign and domestic causes, which now no longer maintain. But it had grown to enormous dimensions, and had con- tributed greatly to restrict the credit facilities of our country, and thus di- rectly to increase unemployment and depreciate prices to our farmers. “I pelieve that the individual Ameri- can has not realized the harm he has done when he hoards even a single dollar away from circulation. He has not realized that his dollar compels the bank to withdraw many times that amount of credit from the use of bor- rowers. These borrowers are the local merchants, the local manufacturers. the local farmers, and their borrowings are the money they use to buy goods, to pay wages and the cost of keeping | their business going. “One hoarded dollar deprives some wage earner of at least some part of his pay. Multiply this simple example by nearly a billion and a half dollars of idle money now hidden in the coun- try and you may get somewhere near a true picture of the enemy of our na- tional security that we vaguely call ‘hoarding.” It strangles our daily life, | increases unemployment and sorely af- | flicts our farmers. No one will deny | that if the vast sums of money hoarded in the country today could be brought into active circulation there would be ! | economy request, under the leadership of Col Knox, is seeking the support of every voluntary organization any every indi- vidual in the country to bring out of hoarding these great sums of money which have been withdrawn from the active channels of trade during this past 10 months. They have summoned the leadership of thousands of public- | spirited men and women. “Already we have evidences of the progress of these efforts and that the hoarding of money has stopped. The tide has turned and some of these idle dollars are finding their way back into the channels of trade. But we must continue until we haye won all along the line. This movement affords an opportunity for all cur people to par- ticipate, to do so within the t of our country, which are traditions of individual effort, of cc ge, of energy, idealism and public spir “Col. Knox is this evening sounding a call to the mighty power of the Amer- ican people, a call to service for the common gocd of our country, a call to protect the individual home by means of assuring the safety of the Nation as a whole. I gladly add my voice to this call to voluntary duty. I do it with more confidence because I have wit- nessed the most heartening exhibition of its patriotic power here in the Na- tional Capital. Proud to Bear Witness. “I am proud to bear witness to the capacity of the people's representatives in the presence of emergency, to their co-operation, to their loyalty, to their single-minded and effective action in this joint effort to restore economic stability and prosperity. | “To join in this effort and to respond | to this appeal becomes a measure of your faith in our country. It will be the touchstone of your loyalty and of your sense of individual responsibility for the welfare of the whole community. It is your opportunity to prove again | that the private citizen of the United States in the exercise of his own inde- | pendent judgment and his own free will, coerced by no authority save his con- science and moved only by his own patriotic pride, can be counted upon to meet every emergency in the Nation's and to rout every foe of the Nation's security. | “The word ‘depression’ is an accurate | but an obnoxious one. It is intensified by fear and apprehension and by the | loss of faith and courage. The true basis of wealth and the creator of pros- perity are the industry and resource- | fulness of the people when inspired by vision and sustained by faith. | Call to People’s Faith. i “The summons tonight is a call to the faith of a people, not to faith in some rosy panacea or pretentious | theory. but to their intelligent faith in themselves and in their individual re- sourcefulness and enterprise and to the sense of responsibility of every man | to his neighbor. “The safest risk in the world is a share in the future of the American people. The American people have at this moment one of the greatest oppor- tunities in their history to show an assured confidence and an active faith in their own destiny, which is the des- tiny of the United States—and by that faith we shall win tiris battle.” | GILBERT HURT IN CRASH | Rentucky Representative and Wife | Not Seriously Injured. Representative Ralph Gilbert of Ken- | tucky and Mrs. Gilbert were painfully but not seriously injured yesterday when an automobile in which thcy were rid- ing overturned on a Kentucky road between Shelbyville and Frankfort, ac- cording to a message received today by Chairman Norton of the House Dis- trict Committee. Because of the accident Mr. Gilbert notified Mrs. Norton he would be unable to return to Washington in time to attend a hearing of the District sub- committee on insurarce and banking tomorrow at 10:30 am. The commit- tee will consider the pending bill to require insurance companies incorpo- rated under the laws of the District to maintain headquarters in the city. — Steam Burns Woman. Marian D. Butler, 42, colored, was burned on the forehead by steam when a heating pipe in a house in the 1700 block of T street broke this morning District’s Heroes in the World War Compiled by Sergt. L. E. Jaeckel. 8 recorded in the official citation, George W. Hamilton, captain. 5th Regiment, United States Marine Corps, 2d Division, Amer- ican Expeditionary Force, re- ceived the Distinguished Service Cross for extraordinary heroism in_action with the enemy near Bois de Belleau, Chateau Thierry France, June 6, 1918. Capt. Ham- ilton displayed the highest type of courage and lead- ership when, on the first day of the Chateau Thierry battle his command was under decimat- ing fire of machine guns from the front and both flanks. FZ: All of his officers _,~ but one and most - of his non-commis- ~ sioned officers hav- ing been killed or wounded, he passed up and down his front lines and, by his personal bravery, inspired his men to valiant and suc- cessful combat under especially difficult conditions. Oak Leaf Cluster. While in command of Company B (49th Company), 5th Regiment, United States Marine Corps, 2d Division. dur- ing the attack on Hiil 142 at 3:45 am, June 6, Capt, Hamilton led his company to its objective, While his company was engaged in digging in, 12 enemy ma- chine gunners stealthily approached and proceeded to set up their guns for the purpose of firing upon Capt. Hamil- ton's company. He discovered the enemy before the guns were in position, and, in company with a non-commissioned officer, gallantly rushed upon the enemy, attacking them with a bayonet, dis- patching several, dispersing the remain- ing men and capturing their machine guns The undaunted bravery and sol- dierly conduct displayed by Capt. Hamil. ton served to inspire the men in his regiment with increased determination and incited them to heroic endeavors. Residence at appointment, District of Columbta, Capt. Hamilton remained in the serv. ¢ = ice and transferred to the Marine Corps aviation branch. He was killed in a crash at Gettysburg, Pa., June 26, 1922. His father, Charles A. Hamilton, resides at 1860 Calif street. (Copyright, 1932 Thousands Watch Eclipse. MELBOURNE, March 7 (#).—Thou- | sands of Australians turned out today | to watch an annular eclipse of the sun which began at 5:35 pm. The greatest extent of the eclipse was visible in the State of Victoria. Britain’s yard, or three feet, is de- fined as the distance between two gold plugs on a bar of iridio-platinum kept v the London Board of Trade. AT ALL PEOPLES DRUG STORES | letter and $25 to the third best letter. | the Stimulated by the radio program last night in which national figures led by President Hoover appealed to the Ameri- can people to cease hoarding, the local campaign here in the National Capital swung into action today to put idle dol- lars to work All banks of the District of Columbia were offering the new “baby bonds” for the first time, They invited also to their checking and savings accounts money which hitherto had been iaid aside in strong boxes. under mattresses, buried in the ground or otherwise placed into enforced idleness. The first let began arriving at the offices of The Star which is offering $100 in gold to the author of the best | 100-word account of the reasons why hoarding was stopped. Fifty dollars is to be paid the writer of the second best Names of the writers are to be kept confidential until the victors are an- nounced. Indorsed by Leaders. This contest today received the en- | thusia indorsement of Dr. George | C. Have president the FPed- ion_of Citizens ssociations, and Harry King, president of the Washing- ton Chamber of Commerce “I am in favor of using all forms of publicity for putting this idea before public,” declared Dr. Havenner. “The correspcndence stimu'ated by The St-r's campaign offering prizes for the best letters should help to spread the idea of anti-hoarding in a very definite manner. I am in favor of the use of all the mcdern channels of publicity—the press, correspondence and radio." The Federation of Citizens' Associa- tions, Dr. Havenner recalled, unani- mously adopted a resolution by James G. Yaden, Saturday night, throwing the indorsement of the federation be- hind the whole anti-hoarding cam- palgn here in the city. Delegates to the federation were urged to carry the idea back to their constituent citizens’ associations, many of which meet in he next few days. The federation acted after the reading of a letter from | Newbold Noves, chairman for the Di trict of Columbia area of the Citizens' Reconstruction Organization, King in Hearty Accord. President King of the Washington Chamber of Commerce declared he was | “heartily in accord” with the general campaign under way here, and espe- | clally The Star’s prize contest for best | letters on anti-hoarding. The movement was indorsed by the board of directors of the Chamber of Commerce at the last meeting, Mr. stated. a very weagerful proposition,” atever hoarded money there is here in the District of Columbia uuglkll. to come out of hiding and go to work." Discussing the process of purchasing one of the new “baby bonds,” C. H. Pope. president of the District of Co- lumbia Beankers' Association, explained how easy it is to buy one. “Merely take your idle money into bank or trust company in the v." Mr. Pope explained, “and ask your banker {o get one for you." These baby bonds went on sale to- day, Mr Pope explained, but are sold on ‘order, and the bonds themselves will not be delivered until soon after March 15. Subscriptions Entered. Anyone can go to his own bank, or. if he is not accustomed to doing busi- ness at a particular institution, he can go to any bank, Mr. Pope said, and “enter a subscription” for one of the bonds, either of the $50, $100 or $500 denomination He can pay down his money, get a receipt from the bank,! and then call around shortly after March 15, and receive the new baby ner, | for the | Jacksonville, bond, with its two coupons attached One definite advantage of the litt @ bonds, or Treasury certificates. as they are more technicaily designated, is their liquidity, according to Mr. Pope are easily converted back into cash by giving the Government 60 days' notics Otherwise the bonds run for one y from March 15, with interest at 2 per cent. ! away in any kind of a box. whether it is a hidden tin box or a safety deposit box, are losing interest every day.” Mr Pope explained. By taking this cash out of hiding and placing it a bank, checking account, in a say- ings deposit, or in the new baby bonds they will place the money in use. the case of the baby bonds the ner | will have a Government obligation | backed by the Government itself, guar- { antceing payment of interest While estimating that not a great amount of money is actually hoarded away in this city, Mr. Pope and the D. C. Bankers' Association are vigorol | 1y behind the anti-hoarding dri | working for its su restoring prospers “Baby Bonds” Fxplained. The “baby bonds,” it was explained by Newbold Noyes. chairman of the Committee for the District of Columbia Area of Presicent Hoover's Citizens' Re- construction Organization. are offered investment of idle funcs. but not to draw money out of banking ac- counts. For instance, he pointed out it would mean only ss of interest to the depositor to take funds from any sound investment or savings accour where he was receiving more than the per cent and place his funds in a aby bond," paying 2 per cent. The new security offered through the Presi- dent’s anti-hoarding organization ha the double advantage, however. of bot security and liquidity, making it attrac- tive. It is pavable at par and accrued interest to the holder on 60 days' no- tice to the Government Meantime, theaters of the city began flashing on their screens a message of anti-hoarding to the thousands who at- tend daily these places of entertainment. The first of a series of radio talks will 80 on the air tonight for the campaign, over r{;‘dlg sm}:mn WJSV. H. L. Rust jr, will be the speaker, beginni 9:30 o'clock. . . o ‘Tomorrow night, there will be three radio addresses, Newbold Noyes, over WMAL, at 7:30, during “Radio Joe's’ radio time: Edward F. Colladay. over | WRC, at 7:45, and Samuel H. Kauff- mann, over WOL, at 7:15 o'clock. 1 PARTY LEAVES PALATKA PALATKA, Fla, March 7 (P)—Ac-| companied by members of her party, | Mrs. Herbert Hoover, who is making a | tour of Florida scenic spots, left here today by automobile for Green Cove Springs and the Penney Farms, an agricultural development near that city ‘The motorship Sequoia, which car- | ried the party up the St. Johns River to Sanford Saturday, will proceed to where 'Mrs. Hoover and her party will board it for a trip down the east coast to Miami. Mrs Hoover spent last night aboard the boat here. Down Go Prices on CIGAR Camel ..... Old Gold. .. Lucky Strike Chesterfield Piedmont .. Carton of 200 Any of These B Our suggest that you come ear! special low price. ETTES Packages of 20 Cigarettes 13c 2 for 25¢ 1 rands. . stock is limited on these cigarettes so we ly for your supply at this We reserve the right to limit quantitfes and refuse to sell dealers. They | “People who have put actual money | In | | owners MILLION: WORKERS FIGHT HOARDING Drive Opens to Put Idle Cash Back to Work to End Na- tion-Wide Slump. GO, Ma 1e Ci zation began to can tion today to sell the Gover the people and put idle dollars back to work in industry and com They sang a song bs and of better busine and a big talking point was an offer- ing of United States Trea: suit most returning interest notice ch 10 v emplo idle dollars,” Cha said of the drive I T do not wish to_employ normal ways, the United rnment will give them work and interest, t0o.” Although the war against opened in earnest today the wecks ganization during which appeals through the press, the radio, the mails and posters were ade, many hoarded dollars have und their way into banks from places of hiding, Knox said. The psychology of the people has been changed. Where $300.000.000 had been withdrawn by depositors in January before the citizens' organiza- tion came into being, the first three weeks in February saw $100.000,000 of the money come back to the banks, Knox said, and there was every reason to believe at least an equal amount was replaced in the last week of the month. “We have only begun and the suc- cess of the drive will be measured by the extent to which we establish the fidence of the people, rekindle their ith in the future of the country and restore their normal financial habits,” he said. P.-T. A. Meeting Postponed. FALLS CHURCH, March 7.—The Falls Church Parent-Teacher Associa- tion has postponed its meeting sched- uled for tomorrow night until next ‘Tuesday. 0. E. S. Chapter to Meet. HYATTSVILLE, Md., March 7 (Spe- al) —A meeting cf the Ruth Chapter, 0. 7, Order of the Eastern Star, will ‘rt held tonight in the Masonic Temple here ment X ight If their in G hoarding B throughout It's hard to judge value on first sight DON'T RELY ON SHOP-WINDOW APPEARANCE i Every man knows the 4 wide difference there is between razors - yet on sight you can’t distin- guish a good razor from a poor one. With cloth- ing, too, it's hard to judge the quality of materials until you wear it. Don’t rely on shop-window appear- ance. To be sure of your money’s worth select a Kuppenheimer suit, now at much reduced prices. No re- grets ever followed a Kuppenheimer purchase. See the new styles. KUPPENHEIMER TROJAN WEAVE SUITS $50 Other Handcrafted Suits, $24.75 to $75 CROSNERS 1325 F STREET CHARGE ACCOUNTS INVITED (QUALITY by KUPPENHEIMER|