Evening Star Newspaper, March 6, 1933, Page 4

NEW YORK BANKS READY T0 RE[]PEN! Action Expected Tomorrow as Financiers Complete Scrip Plans. (Continued From First Page.) , with staffs standing by, but ex- change officials could reach no decision as to when trading could be resumed pending further developments in re- storing banking operation. The banking system bent its efforts toward perfection of a plan to resume modified operations to finance the Na- tion's commerce, pending the conven- ing of Congress for emergency legisla- tion on Thursday. Preparations were rushed to take ad- vantage of President Roosevelt's proc- lamation declaring a four-day bank | holiday starting today, but permitting the resumption of banking activity with clearing house certificates Ln‘pllce of currency. Huge supplies of certificates had al- ready been printed by the American Bank Note Co.. in denominations of $5, $10, $20 and $50, and every effort was being made to put the new system into operation as quickly as possible. The mechanical difficulties were enormous, but by Wednesday at least, or possibly earlier, it was hoped that bankg in a number of cities would be paylhg out the new “‘money.” Gold Windows Closed. In the meantime, gold windows at the Pederal Reserve banks, the Treas- ury and subtreasuries were closed. in keeping with the President’s proclama- tion, and all dealings in foreign ex- change and international dealings in gold, silver or currency were at a standstill in the United States. The principal foreign financial centers struggled with the problem of trying to resume international payments, which ‘were completely disrupted with official quotations on the dollar lacking. Some financial authorities were in-; clined to regard the United States as “technically” off the gold standard, al- though this was denied by Treasury Secretary Woodin in Washington. ‘The Wall Street security and com modity markets and the Chicago wheat pit remained closed under the second | day of the banking holidays proclaimed by the New York and Illinois Governors early Saturday. ‘The security and commodity ex- changes were not included in Presi- dent Roosevelt's proclamation and con- sideration was given in financial quar- ters to the desirability of resuming trading before the national holiday ex- pires. It was recalled that the New York Stock Exchange continued to| function during the banking crisis in 1907, when clearing house certificates | ‘were used. | If trading were resumed, and the| United States were regarded as off the gold standard, or likely to devalue its currency, financial experts argued that commodity and share prices should boom, but Secretary WLxxrm'.s emphatic denial that the country was leaving the gold standard tended to dash that theory. Given Special Status. A country generally is considered on & gold standard when its currency can be redeemed in gold on demand, al though definitions are varied, and in. volve many technicalities. Althoug! the holiday American paper money is clearly not redeemable in gold, some bankers pointed out that it was merely & special situation during the four-day holiday, such as exists on Christmas day or any other holiday in ‘which gold was not being paid out, so that it was idle to conjecture as to whether the country was technically "on_gold.” The situation differed from Great Britain's suspension of gold payments in September of 1931, for that was a definite suspension for an unlimited time, while the current suspension in this country is specifically for a four- day special holiday period, pending the enactment of a measure, as yet unre- ‘vealed, to restore stability. The British suspension of gold pay- ments was followed by immediate for- eign exchange dealings, permitting the pound sterling to depreciate sharply in terms of other currencies, which in turn decreased its purchasing power and brought an upturn in prices in terms of that currency. No enduring advance in commodity prices in terms | of sterling has resulted, because world eommodity prices have eontinued to decline. Sterling prices have remained | about unchanged, however, while prices in France and the United States are substantially lower than when Great | Britain left the gold standard. Suspending gold payments, however, does not necessarily mean a deprecia. tion of the currency. Germany has re- stricted gold payments to a degree amounting almost to suspension since her banking crisis in the Summer of 1931, yet with rigid control of foreign exchange transactions the level of her eurrency has been kept virtually stable. ‘When the international gold trans- actions in this country were stopped last Saturday by the banking holiday in New York, which was observed by the New York Federal Reserve Bank, which handles these transactions, the country still had some $4.300,000.000 of mone- tary gold. or more than a third of the | entire supply in the world. This was | well above the level reached as recently THE EVEN Secretary of Treasury Woodin is seen leaving the Treasury after a long Sunday conference with his advisers and prominent financiers, at which the bank holiday was discussed. Left to right are Secretary Woodin, Adolph C. Miller of the Federal Reserve Board, Prof. Raymond Moley, financial adviser to President Roosevelt, and A. A. Burll. [ | —Underwood Photo. Credit Arrangements Lib The spirit in which the bank holi- day is being met throughout the country is shown in the following dispatches, assembled by The Star and the North American Newspaper Alliance. NEW YORK, March 6 (NANA)— New York has bowed to the edict of a bank holiday with a friendly acqules- cence that surpassed the hopes of the | most_optimistic. Despite the forebodings of managers of restaurants and places of entertal ment, no one walking along Broadway would realize that eery bank in the State is closed. There is money, and plenty of it, and it is being spent with the same nonchalance as that of the normal Sunday night throng, composed mostly of men and women who work hard during the week. ‘The restaurants catering to the man on the street, who spends perhap; $2.50 once & week for supper for twb, with dancing and a floor show thrown in, have the usual patronage. On Satur- day night they were jammed. Crowds Throng Movies. Every theater offering a good movie in the Times Square district did as much business as usual and an audit showed phencmenal Saturday receipts. There is no trouble in changing large bills at the box offices, and while one manage- ment with two great theaters offered to take checks on New York banks in payment for tickets, not one was offered during the day. Thunderous applause greeted the news reels showing President Roosevelt mak- ing his inaugural address. Night club managers. while maintain- ing a gay air, would not predict what would come after midnight, but insisted the night's receipts .were good. The problem of checks, particularly those involving additional cash, troubled them, on a cash basis. ‘The problem of change for bills is considerable. The smaller cigar stores and neighborhood shops in most question. Pennies, usually upon in large numbers, are welcomed by a “well, it's money. Checks Practically Worthless. Checks are practically worthless. At hotels or stores, old patrons may se- cure $5 or $10, if fortunate, but the attitude of a cashier is that of one re- ceiving an I. O. U. Women with accounts at stores or- dered their foodstuffs in larger amounts than usual. The small merchant, fear- ing to lose an account, saw his stock with which to pay the wholesaler. There was surcease for those in bet- ter circumstances when the depart- ment stores operied today. Large ad- prominent New York department stores, urged all customers to come and trade lavishly, and charge everything. Their attitude is the one concrete evidence of the value of credit, and theirs will a8 Jast June. Confidence Necessary. Bankers point out, therefore, that once confidence is restored, the United States has much more than enough gold to function as before on the in- ternational gold basis. In ordinary times gold is used only as the inter- national means of settling balances. But for the first time in a generation, the recent banking crisis prompted Americans to seek gold coin, and even gold bullion, and in the last week mil- llons of dollars in the yellow metal were pald out by the Federal Reserve banks, and put into safe deposit boxes by hoarders. aggravating the severe | drain of gold abroad. ‘The recent reduction in the Federal | Reserve bank's gold reserves would not have been particularly serious, had it not come at a time when currency in circulation was rising at an unprece- | dented rate. The reserve system must. | factyrers, indicating the belief that this | as a general rule, maintain a 40 per cent gold reserve against its notes, so with each dollar of gold that goes out is removed the backing for $2.50 in currency. The reserve ratio of the system, when last reported as of the! close of business on Wednesday, was | 531 per cent. or well above the 40 per ' cent minimum, although since then and the close of business Friday the | ratios of the New York Reserve Bank ' alone and some of the others are under- | stood to have slipped under the 40 per cent level. The Federal Reserve act provides, however, that the reserves may be permitted to run below 40 per cent under special arrangements. COMMITTEES ANNOUNCED ' €ard Party to Be Held March 17 in Montgomery Club. Special Dispatch to The Star ROCKVILLE, Md. March 6—Mrs. Frank Marshall, chairman of the Gen- eral Committee on Arrangements, has announced the following committees for the card party to be held in the Mont- gomery County Club here the evening of March 17 under auspices of the Aux- iliary of the Henderson-Smith-Edmonds American Legion Post of Rockville* Decorations, Mrs. Helen Weedon and Mrs. Louis J. Ryan; tickets, Miss Lucy Smith and Mrs. Hugh Thompson; re- , Mrs. A, Guy Watkins and Mrs. J. Lob:!hnd N hla‘g Chauncey M. Grubb an . Berl 3 | be the harvest if bills are paid. Meanwhile, there is no confusion. There is evident a certain brotherhood that New York has not seen since the war. Every one is in the same boat, and willing to help another. Mingled with a lilting, “what's the use of worry- ing?” thoughts turn to when the banks will—or will not—open. California. LOS ANGELES, March 6.—Having endured with cheerful fortitude the three-day bank holiday first decreed for Californja by Gov. Rolph, this city awalts with optimism the future devel- | Jes opments of the situation, with news of the extension of the holiday until Thursday. Plans pending for the issuance of scrip by the Los Angeles Clearing House Association have the widespread in- dorsement of merchants and manu- method will be a chief factor in keeping business and employment on an even keel. Scrip issuance is contingent on State legislative action on banking affairs, but there is a general feeling of confidence that it will be an affec- tive way of coping with the emer- gency. There is no lack of confidence in Los Angeles banking institutions and the sentiment generally is that on the steps taken and contemplated will come a materially improved condition in business throughout the State. The appearance of principal btisiness dis- tricts over the week end indicated busi- ness as usual. Credit extension and cashing of checks whenever possible are sustaining the spirit of courage and hopefulness. Geergia. ATLANTA, March 6.—For the most part, bank patrons_in Georgia are ac- cepting the holiday’ philosophically. One couple who. in anticipation of the holiday, had withdrawn $7,000 in cur- rency from an Atlanta bank, put it back the next morning, before the Gov- ernor's moratorium proclamation was issued. The banks were scheduled to reopen tomorrow, but yesterday Gov. Talmadge extended the holiday to run through Thursday. Kentucky. 5 LOUISVILLE, March 6.—Although business has bgen slowed down appre- ciably by the sank holiday, the people situation calmly. March 1 a and it was expected they would function | | large cases decline to change a $5 bill unless | the purchase is of considerable size, | and anything above $10 is out of the frowned | running low, and no cash coming in | vertisements, sponsored by nearly all | ‘that to the bank holiday Holiday Cheerfully Met eral in Financial Centers. Theaters and Night Clubs Do Rush Business. Problem of Small Change Is Considerable. |could be cashed. The board of edu- | cation stopped payment on $2.000 sal- | ary checks so the restricted money available might be prorated. | Credit is being extended freely to | known customers and many firms accept checks for the exact amount of purchases. All utility com- panies have been accepting checks as usual. There is plenty of small change in circulation. Bank employers have been ordered to advise depositors on individual problems. such as insurance premiums, instalments and taxes. | Banks have been accepting new de- | posits and segregating them into trust i funds for unrestricted checking. As a | resul:, new deposits have been noted. The majority of Kentucky have been restricting withdrawals on other than new accounts to 5 per cent. Gov. Laffoon has extended the original four-day holiday through March 11. | Massachusetts. | BOSTON., March 6.—Boston faced the bank holiday situation without any fuss and even with a kind of smile. The public'. peychology was amazing. No crowds or even groups gathered around eithgr the banks or the news- paper bulletin boards. as occurred - in the crash of 1929 ang again in isolated | bank closings at the end of 1931. There_were. of course, minor incon- | venlences, such as a lack of small coins. | Change yas short. A newspaper row restaurant refused to ghange $100 bills. In the absence of banking, trade and business accommodation fell back on personal credit. Old customers of | grocery stores paid for groceries with checks or were allowed to charge the amounts. Hotels took checks for the amount of the bill—no more. The larger stores agreed upon a policy of accepting no checks whatsoever. The theaters and night clubs did th largest business in weeks. Ohio. CLEVELAND—Cleveland accepts the bank holiday cheerfully. Depositor: thronged the downtown banks the firsi day of the restriction on withdrawals long lines stood before the cashiers’ | cages drawing out the small part of deposits made available. Reliable esti- mates were that $5,000.000 was drawn { that day, with no diforder and very | little complaining or bad temper. The next day banks had little mor than their usual crowds, and with drawals were estimated at about a | | tenth of the day before. The excite: | | ment was mostly over. Retail business announces that “usual | lines” of credit will be maintained. One | of the theaters promises that checks | for tickets. though drawn against ac- counts not immediately negotiable, will be_accepted. With_hardly an_exception, busines: and industry of this city met the firet | week's pay roll of the emergency in | cash, generally by building up funds in | new bank deposits, specifically ex- | empted from the restrictions of the | emergency bank laws. Most Cleveland banks started th: holiday by limiting withdrawals fron all accounts to 5 per cent of the total | balance. Limitations of 1 or 2 pe | cent were in effect at a few banks. South Carolina. CHARLESTON. March 6.—Operating | under moderate restrictions designed to prevent drainage of cash resources into other States where banks are closed and to conserve resources for conduct- ing business against withdrawals for hoarding, banks of Charleston func- tioned Saturday completely in all busi- ness relations and cashed checks for such sums as were considered actuallv needed by individuals. Other South Carolina banks followed Charleston’s ad. The State was among the few doing | business on a. cash basis. Depositors | were allowed to withdraw sums to cover | immediate needs. Checks from outside | were not accepted. Two banks in Spartanburg announced | they would observe a holiday until pas- sage of Federal legislation for banking relief. The National Exchange in Chester closed “until urther orders from the contreller of the turrency.” | Otherwise the banking -situation in the State appeared good. Pay were met in cash. ‘Wisconsin. MILWAUKEE, March 6.—Merchants are planning liberal extensions of credit during the moratorium to business moving. The churches in Milwaukee mnounmfi collection ht-n'mfld | not_be ur e moratorium. The wncomlnmgo‘t{ldny. proclaimed for 14 days, followed slow runs on banks in several parts of the State, particularly in the Milwaukee area. Financial leaders believe the situation will adjust itself quickly. The situa- tion in this State is ascribed to na- tional tenseness and not to any ab- normal local condition. (Copyright, 1933, by North American News- papér Alliance, Inc.) MANILA BANKS OPEN \ Operations Resumed With With- drawals at Normal Level. MANILA, March 6 ().—Banking operations were resumed at 10 a.m. to- day as usual, with withdrawals normal, pending resump! of in the chief monetary centers abroad. Drafts on American banks were sold, business | banks | ‘besle‘ed by millionaires without the Bank | stores urged customers to make full but with provisions covering delays due An- Amerien,~ NATION CARRIES ON AS CASH VANISHES People Take Good-Humored View of Situation—Look for Scrip. BY RAYMOND CROWLEY. By the Associated Press. NEW YORK, March 6.—Quips, grins and tall stories were on the lips of | Americans today as they went to a well they had not tapped since war days. It was a well of extra resourcefulness, of ingenuity, of good humor. Human life, in spite of the shortage of cash, was finding ways of carrying on—as it | has & way of doing always. Even before President Roosevelt, | clothing himse}f with the powers of & wartime law, took quick steps prepar- ing the way for scrip, the idea of scrip was racing through the country, and communities in many scattered sections were arranging to have it printed. Large Bills Useless. Tales of millionaires beseeching but- lers for & spare dime. of folk with $100 | bills being snubbed by change-guarding | clerks went the rounds. Ladles who | used to talk about their operations now !had & new topic—of how that nasty | 8rocer would not give them change for $20 when they bought a 10-cent can of beans. Prom the top to the bottom of the | soctal scale people facing inconvenience ' grinned and bore it. Former President | Hoover, -just a few hours out of the White House, found himself with only & small amount of cash—but was getting long. | -Gov. Pinchot of Pennsylvania had | Just 95 cents in his jeans, but there was | gasoline enough in the gubernatorial | motor to carry him back home from ' | Washington. The movie folks in Hollywood had their fun. That wag, Jack Oakie, | issued his own scrip, reading, “Compli- ments of Jack Oakie, who owes you blank dollars and hopes you get it.” At Dallas, Tex., Bernice Claire and | Alexander Gray, musical comedy artists, arranged to pay their hotel bill by sing- ing for other guests. Like millions of ome;:l, they have money—but it is in nks. A New York hotel, finding itself short of cash, sent a messenger to churches 1o gather the contents of collection lates. Business on Broadway boomed as some theaters accepted checks for tickets. Subways had a plentiful supply of nickels for the time being, but were considering what to do about scrip. You can't put it in a turnstile. Railroads, hotel and airplane lines, in many cases, took checks from well | known customers. A Pasadena hotel, rice of a shave, started to print its own scrip. Telegraph wires hummed as people sent cash to relatives. New Yorkers laughed when a naive business man complained that his bank should have warned him it was going to close, so he could draw out a little change for his till. But in a Chicago suburb & bank had done just that. John M. Nichols, president of the bank which advertises that “When plainer statements are made we will make them.” said: | “We've been telling people who asked bout the possibility of a moratorium to come in and withdraw funds to tide them ove A lot did, and then thanked us.” Automat managers debated a weighty problem—how to prevent people from changing $5 bills into nickels and then going out without eating. Police in many cities arranged to allow people ; to place their money in station houses for safekeeping. Charge Accounts Solicited. In New York the Daily News fixed it 30 that boxing fans could Fly for 50- cent tickets to tonight's “golden gloves” ; gemi-finals by presenting merchandise Instead of cash. Anything from cans of tomatoes to brassieres was good—all , the cash the fan had to have was a nickel for the tax. Many departm ent | use of charge accounts. ' “Prince Michael Romanoff,” other- wise known as Harry Gerguson, ex-| its rolis | presser, watched the situation with in- terest. “A great many people’s checks,” hehnporudwhlvetddlm:o}mt hotel cashier, “are now as s those of a great many others.” - 'U.'S. EMBARGO ON GOLD TO AID CANADA’S MARKET Dominion to Make Direct Pay- ments Instead of Usual Trans- fer Through New York. By the Associated Press. TORONTO, March 6.—Charles Mc- Crea, Ontario minister of mines, said | today he thought the embargo placed | on shipment of gold by the United States would act as a stimulant on the Canadian market. One ing authority said the em- bargo would necessitate direct payment of Canadian debts to the United King- dom rather than transfer of funds through New York, which has been cus- tomary. - British debts to Canadian concerns would have to be similarly | routed, he said the change could be mnsdenvlmnut difficulty. banl pel PAY ROLLS TO BE MET, SAYS WOODIN Scrip and Cash Both to Be Made Available Dur- ' ing Holiday. (Continued Prom First Page.) out any money, the Government Mint at Philadelphia was operating as usual. ‘Twenty dollar gold pieces and pennies were being minted. Rainey Calls Caucus. Representative Rainey, the next Speaker of the House, summoned & Democratic caucus for Wednesday to set up the controlling Ways and Means Committee for the special session on Thursday. ‘The governors of the New York Stock Exchange appointed s special commit- tee to decide if the market should re- open tomorrow. Governars of the Omaha Grain Ex- change voted to open the market today, trading on the basis of Chicago May option, settlements to be made on the May price basis when the Chicago futures market opens. Everywhere the attitude of the people was one of “watchful walting.” The President, in his proclamation issued under the war-time powers con- tained in the trading with the enemy act of 1917, halted absolutely the flight of gold from this country and from the Treasury and the banks. Two Courses Outlined, At the same time he authorized the Secretary of the Treasury, under the President’s approval and under such regulations as he may prescribe, to pN- mit the banks to perform “any or all of the usual banking functions.” Two courses were outlined by the President in nis proclamation which are expected to be followed by the Treasury Department in the issuance of kre(ullflonl permitting modified ny 'nu'nm, was to “direct, require or rmit the issuance of clearing house certificates or other evidences of claims against assets of banking institutions.” The second was “to authorize and direct the creation in such banking in- stitutions of special trust accounts for the receipt of new deposits,” subject to withdrawal without any restriction, to be kept separately in cash or on de- posit in the Federal reserve banks or invested in Government obligations.” The second proposal is designed to bring hoarded money back into the banks and to reinspire confidence in the banks. The hope was expressed that the Federal Reserve Banks would remain open and arrangements could be made with them to obtain cash needed. Offi- cials of the post office were in con- ference with the Federal Reserve Board in regard to this matter. | At the Treasury Department checks drawn on the Federal Government, for whatever purpose, were today being peid in cash. Discussing the situation at the Treas- ury Department, Mr. Woodin pointed out that the President’s proclamation | was issued late last night, under date of March 6, and that there were many details which had to be worked out so that pay rolls can be cared for. “Every community has a different idea of how things should be handled,” he said. “There will be mediums of exchange to care for all necessary things. We hope to have everything fixed today.” Given Broad Powers. ‘The Becretary said, too, that issuance of clearing house certificates to be used in the place of cash would be local in each instance, and that the same would be true of scrip. There was insufficient time, he sald, for the Government to issue a uniform scrip. However, he in- sisted that some medium of exchange would be avallable within a short time to the entire country. Efforts would be made immediately to work out a plan by which checking accounts would be workable and this medium of busi- ness could go forward. The President’s proclamation of the bank holiday gave to Secretary Woodin practically unlimited powers to limit NG STAR, WASHINGTON, D. C, MONDAY. MARCH IG. 1933. Epoch-Making Bank Conference Ends Bank Proclamation Text President Roosevelt, in View of National Emergency, Orders Bank Holiday From March 6 to March 9, Inclusive, Throughout the United States. full text of President Roose- velt’s proclamation on the bank- ing situation follows: ‘Whereas there have been and increas- ingly extensive speculative activity sbroad in foreign exchange has re- sulted in severe drains on the Na- deposif period of respite be provided with a view to nflmtflu further hoarding of coin, bulllon or currency or spec- ulation in foreign exchange and per- mitting the application of appro- te measures to protect the in- terests of our people; and Whereas it is provided in section § (B) of the act of October 6, 1917, (40 statute of limitations 411) as amended, “that the President may investigate, regulate, or prohibit, un- der such rules and regulations as he may prescribe, by means of licenses or otherwise, any transac- tions in foreign exchange and the export, hoarding, melting, or ear- marking of gold or silver coln or bullion or currency * * © Whereas it is provided in sec- tion 16 of the said act “that who- ever shall willfully violate any of the provisions of this act or of any license, rule, or regulation issued thereunder, and whoever shall will- fully violate, neglect, or refuse to comply with any order of the Presi- dent issued in compliance with the provisions of this act, shall, m conviction, be fined not more $10,000, or, if a natural person, im- prisoned for not more than 10 years, or both, ¢ * *v; Now, therefore, I, Pranklin D. Roosevelt, President of the United States of America, in view of such national emergency and by virtue of the authority vested in me by said act and in order to prevent the . hoarding, or earmarking of gold or silver coin or bulllon or currency, do hereby laim, order, direct -and declare t| and t from Mon- day, the sixth day of March, o Thursday, the ninth day of March, 1933, both dates inclusive, there shall be maintained and observed by ali banking institutions and all branches thereof lccated in the United States of America, includ- Eerlod all banking trans- actions shall be suspended. During such holidsy, excepting as herein- after provided, no such banking in- stitution or branch shall pay out, export, earmark, or permit the withdrawal or transfer in any man- ner or by any device whatsoever, of any gold or silver coin or bullion or currency or take any other action which might facilitate the hoard- ing thereof; nor shall any such banking institution or branch pay out deposits, make loans or dis- counts, deal in foreign exchange, transfer credits from the United States to any place abroad, or trans- act any other banking business ‘Wwhatsoever. During such holiday, the Secre- tary of the Treasury, with the ap- proval of the President under such Tegulations as he may prescribe, is suthorized and empowered (A) to m’mlt any or all of such banki) titutions to perform any or all of the usual banking functions, (B) to direct, require or permit the is- suance of clearing house certificates or other evidences of claims against assets of banking institutions, and (C) to authorize and direct the creation in such banking institutions of special trust accounts for the re- ceipts of new deposits which shall be subject to withdrawal on de- mand without any restriction or limitation and shall be kept sep- arately in cash or on deposit in Pederal Reserve banks or invested in obligations of the United States. As used in this order the term “banking institutions” shall include all Federal Reserve banks, national associations, banks, trust companies, savings banks, building and loan associations, credit unions, or other corporations, partnerships, associations or persons, engaged in the business of receiving deposits, making loans, discounting business jpaper, or transacting any other form of banking business. ‘INSURANGE CHECKS MAILED AS USUAL Policyholders at End of Grace Period Need Not Fear Losing | Policy if Funds Are Tied Up. [ | By the Associated Press. | NEW YORK, March 6—Bank holi- days in the various States are mot af- fecting the payments of the life insur- | ance companies to policyholders md‘ beneficiaries, it was said yesterday by‘ the president of one of the leading life | | companies. | | Checks are going forward as usual, it | | was said, but the companies cannot "ulmue their immediate conversion | into cash in regions where holidays| | have caused a temporary suspension of | banking operations. { Policyholders who have reached the end of their period of grace before pay- | ment of premiums need not fear the loss of their icies, it was asserted | by another cial, regardless of what may happen in the banking institution, unless it is determined that they have or had not sufficlent funds to credit either in closed banks or un- | cashed pay checks to meet the pay- ments at the time of the occurrence of | any personal emergencies. e HOLIDAY IN VIRGINIA their | afford the greatest possible protection the bank holiday or to make the shut- | down of the banks complete. ~ While the President's proclamation | placed an embargo on gold and pro- | hibited the earmarking of gold for for- | eign account, and in effect put an end to payments in gold for the time being. Pollard Signs Four-Day Legal Sus- pension by Banks. ALEXANDRIA, Va., March 6 (®.— Gov. Pollard today signed a procl | LAID TO U. S. BANKERS Secretary Woodin emphatically de- clared that the United States has not been taken off the gold standard. Suspension of gold payments was held in some quarters practically to! have the effect of removing the standard. But it was pointed out that the suspension is temporary, and that nothing has been done really to disturb the gold standard. Can Extend Holiday. ‘The banking holiday proclaimed by the President runs through Thursday, the day-on which Mr. Roosevelt: has summoned the new Con to meet at noon In special session. If it be necessary, using the same powers grant- ed him under the trading with the enemy act, the President can extend the holiday, with such modifications as he deems fit. President Roosevelt, however, has in preparation legislation dealing with the banking situation which he will submit immediately to the Congress on its opening. The congressional leaders are planning to expedite the consideration of this legislation. The President sat down in conference with the Governors of States today to | talk over the banking situation. These Governors had come here for the inaug- ural celebration Saturday, and the President met with them in the White House s00n after he had returned from the Capitol where he attended the fu- neral _services for the late Senator Thomas J. Walsh of Montana in the Senate chamber. Senator Walsh was to have bee'nblnAthty General in the Roosevelt cabinet. President Roosevelt has indicated that the new Congress will be called upon to deal first of all with emer- gency banking legislation. Later will come permanent bank reform tion, ‘The emergency legislation, i is ex- flecud, °?fll be rushed through both ouses of Congress, Senator Robinson of Arkansas, Demo- cratic leader, said that he ex&oeud the emergenc; lgbllum to authorize the use of clearing house certificates by banks that are in moratoria, to the extent of their liquid assets. He added Positive proot thal owr charges are reasonable is shown tion declaring & four-day legal holiday | for Virginis. that not only should these new deposits | be segregated, but that there should bea | Government guarantee thrown about, | thereby bring money out of hoarding. The question largely depends, accord- ing to one of the Democratic Senators interested in banking legislation, how great these new deposits might | be. If there is to be no great volume | of them, then little would be accom- plished, he said. Governors of States are at liberty, of course to ask the Secretary of the | | Treasury for permission for the banks | in their States to open, and the Gov- ernor of New Mexico, Seligman, was ex- pected to make such a request. Indi- vidual beanks could make similar re- quest, it was said. | Yesterday, President Roosevelt's first | [ full day as Chief Executive, was a crowded one. Before midnight two | | proclamations of vast importance were | ssued by the President; the first, which came in the afternoon after the Presi- dent had conferred with the congres- | siona] leaders, Democratic and Repub- | lican at the White House, called Con- | gress into special session on Thursday. The second, which was made public shortly before midnight, declared the | Nation-wide bank holiday. During the day, President Roosevelt met not only with the congressional leaders but also with the members of his cabimet. The President in his inaugural ad- | dress had pledged himself to exert war | powers, if necessary to meet the situs- tion. He had already familiarized him. self with the provisions of the trading with the enemy act of 1917, and it was under its powers that he placed a ban | on the flight of gold, and called & halt | on banking generally. In his proclamation the President said { there had been heavy and widespread | withdrawals of gold and currency from the banks for the purpose of hoarding, and that there had been also great ac- tivity abroad in foreign excl , Te- sulting in & severe drain on the Nation's old stocks. Secretary Woodin had the assistance 1ast night of Ogden L. Mills, who until Saturday was Secretary of the Treas- {ury in the Hoover administration, and department. in the figures to the right, giv- ing the setusl prices paid for our last 1,000 compicts adult funerals. To Make Sure of lelorrso—.rvio.. Rcmombor to Call NAtional 5512-5513 Joseph Gawler Sons, Ine. Established 1850 1750-52.54 Pennsylvania Ave. N.W. LADY ATTENDANT CREMATIONS o0 | provision regarding the ALL POLICE ON DUTY | DURING EMERGENCY Maj. Brown Continues in Effect| Cancellation of Leaves [ and Days Off. ‘ For the protection of banks and business houses during the present fi- nancial crisis, Maj. Ernest W. Brown, | superintendent of police, toflay issued | orders for additional duty by all police- | men, continuing in effect the order | against days off and leaves of absence, | passed to cover the inaugural period. Policemen on beats where banks are | located were given special instructions | to pay particular attention to the fi-| nancial institutions and to call for as-| sistance should depositors appeer in | large enough numbers to suggest the poasibility of trouble. The metropolitan police force will be kept mustered to its greatest possible strength, it was announced. In addi- tion to giving up all leaves, the police probably will be called upon to perform extra duty, particularly at night, to! to_business houses. Maj. Brown's order for extra duty will remain in effect indefinitely, it was | stated, and will not be rescinded until conditions are again normal. - DISHONEST DOLLARS Father Coughlin Charges That Constitution's Provisions Have Been “Rewritten.” By the Associated Press. | ‘The charge that modern bankers have ' “rewritten” the Federal Constitution's coinage of money, and that as a result “we are dealing with dishonest dollars,” was made by Rev. Charles E. Ccughlin, pas- tor of the Shrine of the Little Flower, Royal Oak, Mich., yesterday during &' radio address. Father Coughlin accused bankers of having rewritten the constitutional pro- | vision which reads “to coin money, to' regulate .the value thereof and to fix the standard of weight and measure" to | now read “to coin money and ‘fix’ the value thereof.” i As a result of “fixed” gold, Father Coughlin said, “the measure of our dol- lar, which was supposed to contain 100 pennies, has fluctuated until today it contains 170 pennies.” THAT 7;455& _ Do as 3,00 dedl BRITAIN WATCHES U. . CONFIDENTLY London Banks Ready to Aid Americans Affected by Holiday. By the Associated Press. LONDON, March 6.—Great Britain's policy today was “business as usual,” while the government here watched with sympatheitc interest the firm steps with sympathetic interest the firm steps tration to deal with America’s domestic banking problem. The exchange market in London will continue to deal with all currencies with the exception of dollars. Transactions in dollars were rendered impossible for the time being because delivery of dol- lars cannot be obtained during the American banking holiday. London benks have arranged to sup- ply American travelers who have letters of crodit in dollars with sterling for their immediate use.’ The British cabinet met at No. 10 Downing street at 10:30 am. It was stated emphatically this session dealt with the disarmement crisis at Geneva and not with the American financial situation, which is considered purely a domestic rather than international pr:lem. a consequence of the -United States embargo on gold in the absence of the dollar in the exchange rate, bul- lion brokers today fixed the price of 80ld on the basis of the French franc 8t 190 shillings 7 pence per fine once, against 120 shillings 8 pence on Friday, It was rumored government and ex- Chl{lle‘ ll}lljth;hues were endeavoring to control the Paris exchange rate aro 88 francs to the pound. o S DOLLAR STILL UNQUOTED. Holders of American Currency Creats Big Demand on Franec. PARIS, March 6 ().—The dollar was still unquoted today, but trading in other foreign exchanges continued, with considerable offers of Dutch guilders, German marks and Swiss francs. Bankers said this apparently was being done by interests needing French francs and unable to convert dollar credits. Parls American banks were advancing customers three-fourths of exchange on dollar checks. Tourists agencies were cashing travelers' checks at the nom- inal rate of 24 francs per dollar. The American Aid Society, anticipate ing financial stringency of members of the colony unable to receive money from America, will meet tomorrow to discuss relief possibilities. The society transported two Americans to London, 'l;‘i"e :'I-I.n;].s I'r‘reh:wlltmg them epo! Tom other world cities follow: Berlin—The Reichsbank fixed the dol- lar rate at 4.18 marks, slightly up. g].enkAt:Qe‘Xpnsser the conviction that rican d‘gfl gold standard is in no me—Foreign exchange markets were closed and the stock market was down. The unofficial dollar rate was 18;; lire. adrid—Financiers express plete faith in the Umtegres:d urged the maintenance of mn'd‘l.rd. The dollar w Pesetas, as compared with 8 a - tion on Saturday. e Amsterdam — Stock market prices were up, little affected by the Ameri- can situation. Holland, still on the gold standard itself, was certain that the United States would not abandon gold The Bank for International Settlements was Iittfé affected by con- ditions in the Statés, for most of its bu:g;:m “1“’hom in sterling. lenna—The government instruc all banks to cash no checks or dm‘;&g on American institutions for the time ing. 2 Lisbon—Banks discontinued dollar transactions. i g — Gold ohannesbur, down under heavy selling. Cairo—American tourists were incon- venienced. Their checks were worth 7 51&5(211 less to the dollar than on Fri- _ ay. Tokio—Foreign exchange transactions were suspended and the markets were closed except for quotations on gov- ernment bonds. The silk exchanges here, at Yokohama, and at Kobe also were closed, but the rice exchange re- mained open. Shanghai—The dollar was down 3313 ;ael.w as compared with 29 on Satur- ay. Havana—President Machado issued a decree closing all Cuban banks and exchanges. San Juan, Puerto Rico—Gov. Bever- ley declared a three-day bank holiday and announced that the insular govern- ment is considering the issuance of scrip. Montreal—Canadian banks accepted the dollar at par but American visitors experienced difficulty obtaining funds elsewhere. Toronto—The stock exchange and the Standard Mining Exchange re- mained open. but the authorities an- nounced that if any distress selling from United States sources appeared, the exchanges would be closed. com- atcg, but the g-l4 down ‘) shares were Bethesda C. of C. to Meet. BETHESDA, Md., March 6 (Special). —Bethesda Chamber of Commerce will hold its monthly meeting in the County Building here tonight at 8 o'clock. FREE! 50¢ Toothbrush see below ists urge —=get this revolutionary new WORCESTER SALT TOOTHPASTE ‘Whea men gase at you, do they thrill to smile—or ary mow discovery, Worcester Salt Tooth- paste. It brings you all salt’s tremendous bemefits in mew, convenient, mouth refresh- TOOTHBRUSH OFFER. As a special offer to this revolutionary new discovery, orcester Salt Compasy (America’s oldest refiners of pure salt) wil) send you, FREE, & fine toothbrush, worth S0f retail, ¥ you pin this od—with your address—to the empty container from your first tube of Wercestar Salt Tooth- paste and mail to Dept. 90, Worcester Salt Co, 61 Thomas Street, New York City,