Evening Star Newspaper, March 5, 1933, Page 1

WEATHER. (U. . Weather Bureau Forecast.) Fair today and tomorrow, slowly ris- ing temperature tomorrow; gentle to moderate northwest and north winds. Temperatures—Highest, 43, at 4 p.m. yesterday; lowest, 37, at 8 a.m. yesterday. Full report on page 10. EX — Entered as second class matter post office, Washington, D. C. No. 1,459—No. 32,450. NEW CABINET MEETS; WILL FIX DATE TODAY FOR SPECIAL SESSION Woodin Summons White House Parley of Reserve Officials and Business Leaders. ADMINISTRATION BEGINS TASK OF DRAFTING EMERGENCY LAWS Inaugural Address Presages Presidential Demand for War Powers, if Necessary. BY G. GOULD LINCOLN. Franklin Delano Roosevelt, sworn in as the thirty-second Presi- dent of the United States at noon yesterday, acted promptly last night to meet the most serious domestic problems that have existed in this country in almost 70 years. Immediately after Mr. Roosevelt had reviewed the inaugural pa- rade, members of his cabinet, previously having been confirmed by the Senate, were hurriedly sworn in at the White House and went into special session to discuss ways of dealing with the banking crisis. Out of this meeting last night came the announcement that Sec- retary Woodin had summoned Federal Reserve Bank officials and business leaders to meet him here this morning for a conference at the Treasury over the unprecedented situation, which has closed or restricted the operations of banks in 48 States. It was also disclosed that the new administration already was drafting emergency legislation, and a quick call for a special session of Congress as early as Wednesday appeared possible. President Roosevelt, it was said last night, will announce the date for the new session after a meeting today with congressional leaders. The new cabinet members assembled at the White House with the words of the President’s inaugural address still ringing in their ears. In frank and clear words Mr. Roosevelt had declared in one of the boldest public utterances of recent years that he would ask if necessary for war powers, only given the President of the United States when threatened by a foreign foe, to meet the emergency. Among Those to Confer at White House. Among those who will attend the conference at the ‘White House today are Vice President Garner, Senator Robinson of Arkansas, Dem- ocratic leader of the Senate; Representative Rainey of Illinois, who is soon to be elected Speaker, and Representative Bryns of Tennessee, who will have the post of Democratic floor leader of the House in the new Congress. President Roosevelt in his inaugural address announced his de- parture from the policy of lending and more lending of money as a means of bringing about financial and industrial recovery. He bit- terly denounced the financial leaders of this and other countries for existing conditions. “Plenty is at our doorstep, but a generous use of it languishes in the very sight of the supply,” said Mr. Roosevelt. “Primarily this is because the rulers of the exchange of mankind’s goods have failed through their own stubbornness and their own incompetence, have admitted their failures and abdicated. * * * Faced by failure of credit, they have proposed only the lending of more money. Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully for restored confidence. They know only the rules of a generation of self-seekers. They have no vision, and when there is no vision the people perish.” President Declares for Quick Action. The President declared for quick action, saying he was pre- pared to recommend measures that a stricken nation may require. In the event Congress fails to enact measures to meet the national emergency, President Roosevelt declared: «I shall not evade the clear course of duty that will then confront me. I shall ask the Congress for the one remaining instrument to meet the crisis—broad executive power to wage a war against the emergency, as great as the power that would be given to me if we were in fact invaded by a foreign foe.” Two safeguards, the President said, are required to prevent a return of the evils of the old order; there must be a strict supervision of all banking and credits and investments; there must be an end to speculation with other people’s money, and there must be provision for an adequate but sound currency. These are the lines of attack. I shall presently urge upon a new Congress in special session detailed measures for their fulfillment, and I shajl seek immediate assistance of the 48 States.” In some quarters it was insisted last night it might be a week, 10 days, or even two weeks before the National Legislature assembles. There was emphatic insistence that the President should not move in this direction until his plans had been fully matured. Various Measures Under Consideration. Meanwhile, discussion of the manner in which the present erisis can be met ranged from suspension of gold payments to guarantee of bank deposits, and included possible suspension under the Fed- eral Reserve act, for periods of 90 days, of the reserve basis. Noth- ing came from the White House to indicate the President contem- plated the immediate suspension of gold payments, which would have the effect of taking the United States off the gold standard. On the other hand, there were those in high places who indi- cated they believed such a step was inevitable in view of the tre- mendous gold withdrawals from the banks. The suspension of the Federal Reserve basis would, in the opinion of some of the leading Democratic members of Congress, have bene- ficial effect, and would serve to make unnecessary an openly declared suspension of gold payments. Limitation of gold withdrawals, which is another way of phras- ing suspension of gold payments, and abandonment of the strict gold standard, will be avoided, it was indicated, if possible. Revival of the use of clearing house certificates in the present emergency also is being considered. Also, from some quarters, came the demand that all the banks be placed under the Federal Reserve system, there- by doing away with the present dual banking system, in which State banks remain aloof from the Federal Reserve system. This last plan has been advocated as a method of bringing about unified banking. stricter supervision, and the elimination from banks of deposits, so- called, of all business except short-term loans. Other kinds of busi- ness now transacted by many banks would be left to investment com- anies. b One proposal looked to the Gévernment guarantee of new de- posits in banks which would be merely for the use in checking accounts and for the purchase of Government bonds. These (Continued on Page 8, Column 5.) ¥ he WASHINGTON, D. C, WITH DAILY EVENING EDITION SUNDAY MORNING, MARCH 5, 1933—130 PA~T". Sy Star. * “From Press to Home Within the Hour” The Star is delivered every evening and ,Sunday morning to city and suburban homes by The Star’s exclusive carrier serv- ice. Phone National 5000 to start delivery. () Means Associated Press. FIVE CENTS TEN CENTS IN WASHINGTON AND SUBURBS ELSEWHERE ROOSEVELT SPEEDS ACTION IN CRISIS MULTITUDES ACCORD & B S President Roosevelt in the reviewing stand in front of the White House as the colorful procession signalizing his induction into the Nation's highest office passed before him. At the front of the stand with him are Mrs. Roosevelt, their son James and Admiral William V. Pratt, ranking officer of the Navy. —Washington Star Photo. ALL STATES ORDER BANKING HOLIDAYS OR CURBS ON CASH Financing at Standstill as U. S. Leaders Map Speedy Action. By the Associated Press. Banks in each of the 48 States were closed under holiday orders or were operating under restrictions as finan- clers, economists and Government lead- ers laid plans last night to bring Amer- ica back to financial normalcy. President Roosevelt flung the full power of his new office into the move- ment to revive a fear-stified national credit which he earlier yesterday had blamed directly upon the “stubbornness™ and “incompetence” of “the rulers of the exchange of mankind's goods.” From the busy White House went out a call by the new BSecretary of the Treasury, Willlam H. Woodin, to the officeres of the Federal Reserve system and national business leaders to meet with him here this morning. Mr. Roose- velt also summoned congressional lead- ers to meet with him today to decide definitely upon a date for a meeting of the new Congress. A call will go for- ward tonight for- this extraordinary meeting, expected to begin by midweek. Confidence Expressed. Industrial and financial leaders every- where expressed confidence national leg- islation would overcome the emergency. Reports were current here that Her- bert Hoover and Mr. Roosevelt had dis- cussed the possibility of a 50 per. cent Federal guarantee of bank deposits. Although restrictions prevailed in all the States, there were many communi- ties—even in States having banking holidays—where financial business was conducted as usual. In only one instance was a bank re- ported closed by force. That was in (Continued on 2, Column 1.) PUERTO RICAN FLOOD TAKES LIVES OF 20 River Yaguez Rises Seven Feet Under Heavy Rains and Pours Into Mayaguez. By the Associated Press. SAN JUAN, Puerto Rico, March 4.— Twenty persons are known to have lost their lives when the River Yaguez, flooded by heavy rains, rose 7 feet and poured into the town of Mayaguez last night, causing great property damage. The water supply was ruined, electric light service was halted, and most of the telephone lines were broken. Com- munication with Mayaguez was difficult, but the district attorney got through by telephone this evenihg to report that 20 bodies had been recovered and that the search for others was continuing. ‘The Yaguez empties into the ocean at Mayaguez, and at the mouth is the city’s shipping and wholesale business district. Hundreds of homes along the river bank were carled out to sea during the night. Some fear was felt for a mission maintained by the Presbyterian Mission Board in conjunction with which a church, a school and a dispensary are operated. Monte Blue Under Knife. HOLLYWOOD, March 4 (#).—Monte Blue, film actor, underwent an opera- tion ‘for & minor ailment at a hospital here today. His condition was satis- factory, attendants reported. Blue re- turned recently from & personal ap- pearance tour, situation. HODVER VL STAY EAST WITHI CAL |Cancels Voyage to Panama| and Remains Nearby for Possible Counsel. By the Associated Press. NEW YORK, March 4.— Herbert Hoover tonight began again his life as a private citizen—with the high tower of a New York hotel changed for the White House—but with the fanfare still clinging to him here. Expecting to slip quietly into the city, the ex-President instead was met by & throng and a military band playing the long-familiar “Hail to the Chief.” Mr. Hoover came directly from his special train to the Waldorf-Astoria Hotel, where he has taken a tower apartment and where he expects to re- main for several days. He dined to- secretary for many years, Lawrence Richey, before turning early to rest, tired from the long strain of his office and the strong emotions that marked his departure from Washington. The ex-President, nevertheless, was provided with a special switchboard and was prepared to receive telephone messages from former Secretary Mills and others of his former financial aides, who remained in the Capital. Richey told newspaper men that Mr. Hoover intended to deal only with per- sonal matters during his stay here, but it was learned authoritatively that one reason for th: cancellation of his pas- sage to Panama and the Pacific Coast was & desire to remain in the East in the even his counsel might be desired. Mr. Hoover was to have sailed tonight aboard the liner Pennsylvania. No new assage has been booked on any later gont. and there was a possibility that he might travel West by land rather event of & boat trip, Mr. Hoover would not take time off for a fishing expedi- tion in Panama en route. Mrs. Hoover and Hervert Hoover, jr.. along with former Secretary Wilbur of (Continued on Page 5, Column 1.) COMMUNISTS' LEAD MARCH OF 8,000 IN CHICAGO Dn‘mnlmfinn Is Noisy, but Or- derly—Large Mass Meeting Is Held in Park. By the Associated Press. CHICAGO, March 4—Eight thousand unemployed, marshaled by Communist leaders, paraded through Chicago’s Loop for the second time within five months today in an orderly but noisy demon- stration. The marchers, flaunting scores of banners, paraded 8 to 12 abreast to Grant Park, where a large mass meeting was held. About 750 policemen lined the route of march. At Grant Park, Karl Lockner, secre- tary of the Unemployed Council, ad- dressed the crowd. Police Commissioner James P. Allman ted the crowd at about 10,000, P marking his departure from officlaldom | Local Bankers Meet Today The Executive Committee of the Washington Clearing House Aso- ciation met last evening, it is understood, and discussed the local banking A meeting of the association has been called for 10 o'clock this With restrictive measures or bank holidays in effect in every State of the Union, it was pointed out that any action to be taken for the District of Columbia would be by the con authority of the new legislation signed yesterday by President Hoover. The controller’s action would be based on consideration of local conditions as they are affected by the national situation. It was sald in authoritative circles last night, however, that it would apparently be a physical impossibility for the local normally with all the money centers of the Nation temporarily tied up. troller of the currency under banks to function GERMANS 10 PICK REICHSTAG TODAY Hitler to Retain Power in Spite of Outcome, Nazi Speakers Assert. By the Associated Press. row engages in the strangest election since the founding of the republic, in 1918. ‘The citizens have been asked to pass judgment upon & new orientation of German politics, yet the government parties and government leaders have used every opportunity to tell the pub- lic that no matter what verdict the bal- lot will indicate, Germany’s new politi- cal course which began January 30 with the ascendancy of Chancellor Adolf Hitler remains unchanged. From the Rhine to the eastern bor- iders of the republic hilltop bonfires night alone with his son Allen and his | goreq tonight, while torchlight parades | were staged in every city and hamlet. Authorities in East Prussia expressed a desire to ring church bells symbolizing the end of the campaign, but objection was voiced by church officials. Chancellor Hitler carried his last campaign tour to Koenigsberg by air- plane. * Seven Persons Killed. The latest compilation of reports from various parts of the republic showed that seven persons were killed in po- litical disorders incident to the al day's campaign. There were fatal clashes in Essen, Hamburg, Cologne and Duesseldorf. The dead included mem- bers of Chancellor Hitler'’s National So- cialist party, Communists, one member of the Centrist party and a Reichs- than by sea. Richey said that in the | pann erman. ‘The government's position regarding (Continued on Page 8, Column 5.) TUG BLAST KILLS ONE Bydney Clark, Critically Burned, Formerly With Wanderwell. SAN PEDRO, Calif,, March ¢ (#.— George Page, 37, was killed-and Sydney Clark, 41, was critically burned in a gasoline explosion which destroyed the $50,000 tug Anachubuma of Vancouver, British Columbis, at Fish Harbor late today. Clark formerly was engineer aboard the yacht Carma, where Walter Wan- derwell was slain by a mysterious gun- n last December, 50-foot tug broke in half and sank. It was owned by B. J. Akerly of Vancouver and was under Panama reg- Acting Governor’s Home Bombed. CAMAGUEY, Cubs, March 4 () —A of Fato Don, = Arturo governor S Gamsged, e of house was BERLIN, March 4—Germany tomor- | FINAL ‘LAME: DUCK SESSION ENDS AMID TOUCHING SCENES Adjournment Takes Colorful and Prominent Figures Back to Private Life. By the Associated Press. ‘The last of the “lame duck” sessions of Congress, with a record of failures surpassing that of accomplishments, ex- pired yesterday to make way for & Democratic-dominated national legisla- ture that probably will meet in extra session this week to combat the Na- tion's financial troubles. Adjournment came in the House at 11:20 a.m., with Speaker Garner's fare- well address and in the Senate at noon when Charles Curtis of Kansas ended four years in the Vice President’s chair to yield his gavel to the Texas Demc- crat. ‘The end came amid impressive scenes in both chambers, with Garner deeply | moved over leaving the House where he {served 30 years, and with Curtis solemn |at ending 40 years service in Congress. Shortly after Garner was inaugurated as Vice President in the Senate cham- ber, and Mr. Roosevelt took the oath as President before a crowd of thou- sands in front of the Capitol, the Sen- ate met in special session and confirmed the new cabinet slate. Glass Vouches for Woodin. Confirmation was delayed when Sena- tor Couzens (Republican, of Michigan) questioned whether William H. Woodin, the new Secretary of the Treasury, had divested himself of his holdings in the enterprises with which he has been as- sociated. Senator Glass of Virginia, who declined the Treasury portfolio, vouched for Woodin, explaining he had informed the New Yorker of the law requiring that the holder of the post not to be engaged in commerce. ‘With the passing of the seventy-sec- ond Congress, colorful and prominent figures in the national life went. Among those were Senators Smoot of Utah, Watson of Indiana and Moses of New Hampshire, stalwart Republicans of many years service. Out of the House went Rej tatives La Guardia of Ne'du?t, 3 bfluhn: R!?uboum inde- pent and Hawley of Oregon, co- :\;g‘t,mwlthSmootolmeMflbmo! Several major pleces of legislation, submission of prohibition repeal, broad authority for President Roosevelt to (Continued on Page 4, Column 3.) ROOSEVELT LIKELY TO GO TO CHURCH TWICE TODAY President and First Lady Invited to Patriotic Service at Cathe- dral in Afternoon. President and Mrs. Roosevelt prob- ably will attend church twice today. It was announced several weeks ago they would be present at service this morning at St. Thomas’ Church, Eight- eenth and Church streets, and, while no formal comment has been made, it is understood that they may ac- cept the invitation of Right Rev. James E. Freeman, Bishop of Washington, to worship at Washington Cathedral this afternoon. At the latter a special patriotic serv- ice commemorating the inauguration of Mr. Roosevelt and Vice President Garner will be held at 4 p.m. many em- in official life, members of the diplomatic corps and mrun:;:;u of the Army and Navy ? STIRRING TRIBUTE TO INCOMING PRESIDENT Impressive Scenes Mark Crowded City’s Reception to New Chief Executive of Nation. INAUGURAL ADDRESS GRIPS 100,000 IN VAST CONCOURSE 24,216 Marchers Join in Largest and Most Colorful Parade in History of Inductions. Franklin Delano Roosevelt yesterday became the thirty-second President of the United States. An epic chapter in American and world history developed in the few brief, solemn hours of a gray Washington morning. It reached its climax In the eloquent challenge which the new leader of the world's greatest Nation spoke as he looked down upon an ocean of faces of his countrymen from the Capitol. It was such an inauguration, marked by an emotional intensity and expectancy, as America has known only once before. From dawn to twilight, the hours were crowded with dramatic events. Only the first induction into office of Abraham Lincoln offers a likely parallel to the events of yesterday. The President-elect awoke in his hotel suite yesterday morning to find his far-flung fellow countrymen looking toward him with an almost childlike appeal, as the economic crisis had deepened and darkened overnight. Franklin D. Roosevelt rose to the emergency—how well only the verdict of history can establish. When Washington awoke yesterday morning there was a deep solemnity in the air such as hardly had existed even the night before. This inauguration of the strong, stricken, new leader of Democracy was to be far more than the exulting triumph of a political party, far more than the pageantry of the installation of a new Chiet Ex- ecutive. It was to be the occasion of an event which was bound to have a high place in the history of the Nation. President Bears the Burden Alone. Everything depended on the President-elect himself. He alone could issue the challenge. He alone could wage the battle. He alone must bear the burden of the woes of a people on this gray day, with his countrymen gathered in their Capital city from the blue lakes of the Northern woods to the red mountains of the Southwest to do him great honor. Set and solemn was the face of Franklin D. Roose- velt as, surrounded by his family and friends, he left the hotel, doubtless to plead for a sharing of his burdens by a higher power in the semi-twilight of an historic church within a few step of the White House he so soon was to enter. The President-elect appeared to ride forth not as a prince to a coronation, but as a soldier to battle. His foe was elusive, ghostly. That foe was fear, and it was at fear he struck in eloquent para- graphs sharp and strong, like swords. After this the great inaugural parade which passed up historic Pennsylvania avenue was something of an anti-climax in the drama of the day—even with such incidents as that of the colorful and widely idolized Alfred E. Smith, walking humbly in the procession which did honor to the man upon whom had been conferred an honor which had been denied him. Family Makes Its Final Preparations. The story of this great day in the history of Washington and of America starts properly early in the forenoon in the Roosevelt apart- ment on the seventh floor of the Mayflower Hotel, where the Presi- dent and his family were making their final preparations for their part in the inauguration. These were the last brief moments which Mr. and Mrs. Roosevelt would know as private citizens for long years. There was much to be done. Visitors filed in an out—tech- nical advisers such as Raymond Moley, old friends who wanted a last word, some who wanted a last moment hand-shake. Mr. Roosevelt’s sons and daughter were hurrying back and forth. Mrs. Roosevelt in her blue velvet inauguration gown was very active, dismissing visitors, trying to keep her elusive family of children and grandchildren together. Her daughter, Mrs. Curtis Dall, was doing everything possible to aid her. One of the last to join the party was Mrs. James Roosevelt, mother of the man who was soon to become President. There was a last moment of anxiety for Mrs. Roosevelt. One of the sons, Mrs. Dall reported, was not yet out of bed and the party was almost ready to start. The little granddaughter was con- tinually appearing and disappearing. “You've just got to stick close to grandma,” the new First Lady was overheard saying rather sternly. The Roosevelts Engagingly Human People. She came out to talk briefly with last-minute visitors. She has a curious mannerism while talking, holding her forefingers against the sides of her forehead. It was such a scene of hurry as would be found in the typical large American family at the approach of a momentous event. These Roosevelts—great-grandmother, grand- parents—the President and his wife—parents and children are such intensely, engagingly human people. They emerged from the hotel to find the street filled with autos and the sidewalks with milling people. It had been so since dawn— since the red sunrise full of promise had been throttled by the threat- ening clouds. The family left the hotel at 10:10 a.m. The first sec- tion was solemn and symbolic—the brief worship at the historic St. John’s Episcopal Church across Lafayette Park from the White House. Before its altar many who had held the high office Mr. Roosevelt was about to assume had sought divine guidance in the Republic’s darkest hours. Thirteen of his predecessors are reported to have worshipped there at some time or other. But this occasion was unprecedented. No other President-elect ever has gone to divine service immedi- ately before inauguration. George Washington sought divine aid at St. Paul’'s Chapel, New York, just after being sworn, but Mr. Roose- velt had no other tradition before him when he chose to ask the help of Providence at the historic wayside sanctuary where so many of the great leaders of the past sought like assistance. It was his own wish to go as a private citizen, to participate in a brief program of praise and petition. Early in the morning there had been a suppressed stir about the church in anticipation of his coming. Some unnamed hand brought lilies and gladoli to place, in two vases, on either side of the altar. Other preparations were quietly made. While they were being (Continued on Page 5, Colupn 3) < : Al