Evening Star Newspaper, March 7, 1933, Page 3

SCRIP OF UNIFORM VALUEISU. 3. AIM lssue Here Probably Will Be ,in Denominations of $1 to $50. What is scrip? Stripped of all technicalities, it is nothing more than a legal substitute for the paper currency in general use be- fore the banks were closed by President Roosevelt's proclamation. In all probability, the scrip to be issued here will range in denominations of from $1 to $50 and will be printed on paper similar in size to the paper money to which we are accustomed. ‘The design, of course, will be differen but will be sufficiently distinctive character to eliminate danger of coun- terfeiting. The use of scrip should not be con- fused with the early systems of trade and barter in this countrs Shortly after the Revolutionary War, settlers in what is now Tennessee at- tempted to set up a State which they named Franklin. Shortage of money in this pioneer community led to wide- spread barter. A raccoon skin was deemed the equivaiont of a pound of sugar. Peach brandy was traded for flax linen. Such mediums of exchange were later decreed legal tender by the Legislature of the new State, the law fixing a definite scale of values, Values Varied in States. ‘The trouble with this system was that the trading valuc of the commodities varied in the different States. Ob- viously, a bushel of corn could be traded for less in a corn-growing community than in a Northern State, where the grain_was scarce. Probably the most important aspect of the use of scrip in the present emerg- ency will be the efforts made to give it a uniform value throughout the country. The Government, will seek to accomplish this by using the Federal Reserve Sys- tem as a master clearing house for the substitute money. The value of the proposed scrip, until it can be replaced | by the money now held in,the banks, | will be guaranteed by the resources of | each individual clearing house associa- | tion, through which the scrip will be issued, | In order to facilitate transactions in- | volving the use of small change, it is | expected that the banks will be permit- ted to convert limited amounts of scrip into pennies, nickels, dimes, quarters and half-dollars. Dr. Max Winkler, writing for the North American Newspaper Alliance, pointed out that the present plan for use of scrip in New York was employed there with considerable success in 1907. | Acceptable to Merchants. i He said it was hoped the action to be | taken by the New York Clearing House Association will allay anxiety occasioned | by the banking holiday and make possi- | ble the carrying on of business in New York despite emergency restrictions. Discussing the plans to issup scrip in New York, Dr. Winkler said: “It will be in denominations of $1 to $50, will be available for pay rolls and similar purposes, and will be ac- ceptable to merchants, business men and all others in place of currency. Its use will be of a temporary character, and it will be withdrawn from circula- | tion immediately the emergency is| passed. “For all intents and purposes, it will be equivalent to money, except that it will look different. Obviously, the back- ing will not comprise gold and_ silver, as is the case of United States Govern- ment currency, but will be in the form of the assets of New York banks, nota- bly the enormous amount of United States Government bonds held by these institutions. Inflation View Disputed. “In some quarters, it is contended that the issuance and use of scrip, to some extent, will constitute inflation, resulting—as inflation ordinarily does— in a flight from currency to com- modities and various other forms of assets which are not subject to a fixed return, including real estate and so- called equities or common stocks. “This view is untenable. To begin with, scrip is not issued without any backing, as is the case with paper money which is often printed by gov- ernments that resort to inflation, pay- ing no attention whether or not such increased currenc accompanied by a corresponding increase in Teserves. Scrip is issued merely against one's assets in banks and, for the time being, will take the place of actual currency, the withdrawal of which is prohibited. “Adequate provision is made for the withdrawal from circulation of scrip as soon as the present emergency will dis- appear.” MANILA BANKS PREVENT SPECULATION IN DOLLAR By the Associated Press MANILA, Philippine Islands, March 7.—Business continued as usual in Manila today while banks, under the authority of Secretary of the Treasury ‘Woodin, took steps to fcrestall specula- tion in dollar exchange without re- stricting trade. Bankers set an arbitrary dollar rate of 1.9925 pesos, which represents a dis- count of % of a cent, pending resump- tion of free®xchange. They also tenta- tively sold sterling at the gold par rate, $4.87 with the proviso that whatever rate is later determined shall prevail. Bank withdrawals were reported mormal. Governor General Theodore Roosevelt, jr., pointed out that the banks had more than enough cash available in their vaults and the insular treasury to pay all deposits. Sugar, motor fuel and cattle feed may be made from wood by a new process in S SPECIAL NOTICES. WANT TO HAUL FULL OR PART LOAD TO burgh_and all NATIONAL DELIVERY ASSN. INC.. Nat. 1460. _Local moving _ N Y. ave. Nat._ FOR ECONOMICAL ELECTRICAL REPAIR service call the Electric Shop on Wheels. Inc.. and a complete shop will be brought to Jour door. Wis. 4821 ANNIVERSARY SALE DURING She S hromium bronze frame $70_valu ‘5307 Conn. sve. WE BEG TO ANNOUNCE WE HAVE JUST been appointed agents for the high-grade Kelvinator refrigerator. priced {from $116.50. Terms from $10 per month. DeMol & Co. 12th and G sts. n.w. g TO NEW YORK, MARCH 4: TO PITTS- burg. March #: to Philadelphia. March 6, BMITH'S TRANSFER & STORAGE CO.. 1313 You_st.n.w. LONG-DISTANCE, MOVING BETWEEN ALL Eastern poirts.” “Service since 1896.” & Btorage Co. 1117 b "LBS. CLOVER 0 Ibs. SI 7 e B OR ombs, SAGE. 90c: s1.' Call 0. West_ O _am. s WE WILL SELL FOR _STORAGE _AND other charges. on March 15th, 1 a m., one Buick coupe. engine 171760 1682434 Nash sedan, ensine . serial R-75900. EICHBERG AUCTION SALES, INC. ___1927 R 8t. N.W. FOTICE 1 REBY SERVED THAT STU- debaker sedan. engine No. EW 5, left at our arage. will be sold at Weschler's Public Auction on Saturday, March 11, 1933, to satisfv a lien for_repairs and storage. COLUMBIA MOTOR SALES, INC.. 51 Eye st ne o CHAIRS FOR BRIDGE PARTIES, OR _RENT, SUITABLE FOR banquets, Wweddings and STORAGE CO.. 418 10th st n.w. Metropolitan 1844 “TO PROVIDENCE, R. 1 TO NEW YORK ‘TO_NEWARK. NEW JERSEY SMITH'S TRANSFER & STORAG! 1313 You st. n.w ROOFS REPAIRED —so that they STAY REPAIRED. Our ARCH E CO., ECONOMIC PARLEY $0.€.176822 Tioo} samec, 1o Commition will eadurme the $10,0 in 1873. Civil War period. The National City 0 the Order of BEARER — ... }};uq. Gommtlee of the }hw 'fla Aol Gowell snonths a/a ute, the Borough of TIVE CENTS THE EVENING STAR, WASHINGTON, D. C. TUESDAY, MARCH 7, 1933. Types of Scrip Money Which May Reappear OF NEW YORK, ' - Copy of a clearing house certificate which was used generally in 1907, during the administration of Theodore Roose- velt, after a long period of falling prices. e G B el Ul e sccurelicd en aceotdence sl the - flictendings of @ At oo wlih this 4 Z will e teccived in Sfloyment %Mflfll P74 Ilc'?’énfli‘rp e /‘4 e THOUSARD DOLLARS, fuw any' AMonke Ascoistion, untid Sovemts 1, 18]3. On e sutrender of thie Coribante by e depvaitivg Benk stove Smouet a1 8 permet ou e | obiigation of said Beok, hid by tha, 50 suruler o propertiouste Sheme of the coflaieral mcurios Dekd (horwer, Thia Crrifonte ey 2110 50 rrderemed prior 10 1he 10 of Nevember, f donred. (%&mét 204, /J/ tA 00. Facsimile of the form of a $10,000 loan certificate issued by the Loan Committee of the New York Later issues differed from this only in the omission of the restrictive date. Sery. Scrip money of a type which appeared in Oxford, Pa., and served as a satisfactory medium of exchange during the | few oeh, DECR 0 807 rth :@lcaring ’fiomq 1mri|ficn. ‘(,),.;NBD ..4444} . $10,000. 1875, doate e dmed learing house —A. P. Photos. CHANGE IS SEEN Fundamental- Subjects De- clared Altered by U. S. Banking Crisis. BY CONSTANTINE BROWN. A complete change in the funda- mental subjects to be discussed at the coming Eccnomic Conference is ex- pected in diplomatic quarters in Washe ington as a result of the present bank- ing crisis in the United States. The countries which have been off the gold standard for the last 18 months believe that to diccuss, under the present circumstances, a return to the gold basis would be futile. The economic crisis, which has been virulent throughout the world for the last two years and has been now ac- centuated by the crisis in the United States, has proved amply that a re- distributicn of gold is essential. But gold, it is sald, cannot be re- distributed arbitrarily. It must be the result of a freer interchange of goods and commodities. The balance of pay- ment of such an exchange is then made in gold. Revamping of Tariff Laws. Consequently, it is stated in author- zed quarters, the principal object to be achieved at the coming International Economic Conference must necessarily be a thorough revamping of the present tariff laws and trade agreements. The latter have lately completely broken down and have not helped world trade in the least. It is no longer the ques- tion whether Great Britain or any other country will return to the gold standard. This is now of little con- sequence. But the important thing is, if the wheels of the economic life are to be set in motion again, to come to agreements whereby the raw materials or the manufactured products of coun- tries can be freely interchanged. For this reason the tariff question will be of paramount importance at the economic conference. Tariff walls surround every country in the world. These tariffs have been set up within the last five or six years first of all as a fiscal measure, to in- crease the revenue of depleted treas- uries. Their effect has been nil as far as revenue is concerned and have harmed the economic structure of the countries which have applied them. Then, there are tariffs which have been imposed to protect a nascent in- dustry. The results of these tariffs have been that the consumers in these particular countries have suffered by paying higher prices and the protected industries themselves have proved un- economical. And finally there are re- taliatory tariffs, which are admitted by ali economists to be harmful to those who impose them and those against whom they. are imposed. Harmful Results. The net result of these tariff wars which have been waged throughout the world in the last decade has proved more harmful than a phvsical war and their effects sre being felt in countries which normally would have been ex- tremely prosperous. It is a new peace conference which the world is exvecting today, it is said in responsible quarters. and that veace conference will be held when all the pations of the world gather to discuss their economic nroblems. Tn the light of this situation, the debt ouestion and the return to the gold standard armear as insienificat as the cuestion of how many euns will b2 de- | stroyed bv nations involved in wars at the end of a war. Drbts and gold. it | is stated in responcible quarters, will | have to be disenesed as a corolarv of an eventual tariff agreement. but their solution can come only if the princival thorough work is bound to hold in any stress of weather. Send for us. Feel safe. ROOFING 933 V St. N.W, 'OMPANY North 4423 nations can come to an understanding to break down the restrictions on inter- national trade. . el Can VYou Solueyh. - Dr. Fordney isprofessor of criminology at a famous university. His advice is often sought by the police of many cities when | confronted with particularly baffling cases. This problem has been taken from his case- book covering hundreds of criminal investi- | gations Try your wits on it It takes but ONE | MINUTE to resd: Every fact and every | clue necessary to its solution are in the story itself—and there 1S only one answer. | How good a detective are you? An 0ld Racket. BY H. A. RIPLEY. “You, gentlemen,” said Prof. Fordney to members of the bankers’ association, “must be more alert if you are to squelch the many bank rackets now flourishing. “For instance, I was standing third in line at the First National Bank yes- terday morning when I noticed a man dressed in morning clothes, standing on the opposite side of the room, pick up a blctter that had just been used by a wealthy wo- man. “While I was watching him the man in front of me had spread open his newspaper and ‘was intently pe- rusing it. Glanc- ing over his shoul- der, I noted the headline. ‘Check Forged by Means of Blotter” As I 'was reading the ar- ticle the phone in the cashier's cage rang and I heard Wilkins, to whom I always make my deposits, say in an ex- cited voice, ‘In the safety deposit vault? T'll take care of them immediately, Mr. Newins.’ “Apologizing to the man at the window, and calling to me, ‘Be with you in a minute; he was gone. Again I turned o watch the gentleman in the frock coat. He was still apparently studying the blotter. My curiosity was aroused and I had just stepped out of line when the cashier returned and yelled that his cage had been robbed. “While there were almost a hundred people there at the time, the robber would have made his getaway had I not signaled to a guard, who nal him. “It's an old trick.” “You're right, professor,” interrupted a member, “and I fnow how it's ac- complished.” DO YOU? (For Solution See Page A-14.) In a recent month 239 cases of cruelty to, or negligence in care of, animals were dealt with in Glasgow, Scotland. —_— Keep Internally CLEAN Feel Good! Enjoy Life More! Don’t run the risk of personal neglect. Hex- ol promotes good health by combating con- stipatton and eliminating poisons from the inte: 1 tract . . d pleasant to taki When you need a good lazative or cathartic, don’t ing oils or upsetting pills. Depend upon Hexasol, a physician's § prescription that has been lsed and recommended for more than a quarter of a cen- ry. Hexasol is reliable, fe and pure. Agreeable to take, due to the nicety of i Get a generous bottle for only 60c today at our mearest drug store. Hexasol must bene- it you or your money back. The First Thing in The Morning for Health IEXASOL, Ploasant Saline Lazative WITHDRAWAL LISTING REQUEST IS STUDIED Maryland House Resolution Asks| Naming of Those Taking Out Over $10,000. By a Staff Correspondent of The Star. | ANNAPOLIS, Md., March 7.—The| Rules Committee of the House will meet this afternoon to consider a resolution calling upon_the bank commissioner to | | furnish the Delegates with a list of all | persons who withdrew more than | $10,000 and all officers and directors of | banks who withdrew more than $1.000 | from Baltimore banks and trust com- | panies during the 10 days prior to the first Maryland bank holiday on Feb- ruary 25. It "also asks the names of all persons who have been allowed to withdraw funds since the holiday began. gate Thomas D'Alesandro of Baltimore introduced the resolution. Cotton Market Closing Extended. NEW YORK, March 7 (#).—The board of managers of the New York Cotton Exchange voted today to keep the market closed “until further notice.” By a new law Spain will establish settlers on expropriated lands. We Can Not On You the Finest % Z 2 7% 7 7 M) 2% Gentlemen: % Chestnut Farms Cream Cheese. Name Address AP oosnine 7 Z Phone. .. 7 N\ 2227 = Please send me a free sample of Chestnut Farms Dairy Phong_POtomac 4000‘ U.5. 1S EXPECTED TOSTAY N GOLD EE: Woodin’s Repeated State- ments Regarded as Clear Expression of Policy. BY MARK SULLIVAN. ‘The intention of the Roosevelt ad- ministration is to keep the country on the gold standard, and all the steps now being taken have that end in view. Secretary of the Treasury Woodin's repeated insistence that the United States is not off the gold basis is a clear expression of intention not to abandon the standard. As such, Mr. Wocdin’s attitude is of the highest im- portance for the future. It will be re- ceived everywhere as an expression of policy on the part of the new adminis- tration to the effect that the United States will stick to the gold standard. There are persons who say, or imply, or hope, or fear that we shall remain cn the gold basis, but at the same time reduce the size of the gold dollar. There has been no expression of any intention to do this. Persons who vaguely predict this cite as one of their reasons a phrase in Mr. Roosevelt's in- augural address in which he said: “There must be provision_for an ade- quate but sound currency.” That sen- tence has caused much talk. Whether Mr. Woodin is strictly ac- curate when he says we are still on the gold basis today is a matter for meta- physical debate. It is true that it is not possible today to take a dollar to the Federal Reserve bank and get a gold dollar in exchange for it. That could be done last Priday and at any time preceding Friday, except, of course, on Sundays and legal holidays. That readiness of the Government to give Efld for paper is what constitutes be- g on the gold standard. Those who insist we are still on it argue that in- ability to get gold for paper today is Just like being unable to get it on Thanksgiving day or any other holiday. What vvet s‘r.e hudxllyi. according to this argument, is merely an exte: holiday. i $4,000,000,000 in Gold Available. We shall make progress toward un- derstanding our present state by ex- amining the steps through which we got here. The immediate cause of President Roosevelt's closing banks on a national scale was the action of Gov. Lehman of New York in closing the New York banks the day before. The largest immediate cause of that in turn was the New York Federal Reserve Bank. 3 To understand why the New York Federal Reserve Bank wanted a holiday, it is necessary to be elementary about the A, B, C, of our gold standard. Speaking very roughly, cvery paper gold would sustain about 10 billions of paper and other currercy. We have in lation less than seven billions. Conse- quently, we are still safely on a 40 per cent _reserve basis. s What happened in New York last week, however, and to some extent elsewhere, was a double attack on the cents in gold withdrawn diminished by $1 the amount of paper and other cur- rency tha!, could be sustained. At the very same time, the quantity of paper and other currency taken out was in- creased very rapidly by natural demand due to tying up of bank deposits by in Michigan and elsewhere. rency sent to the interior consumed, 80 to speak, 40 cents in gold in the Federal Reserve System. Move Stopped in Ample Time. ‘To sum up, increase of paper cur- rency increased the need for gold to sustain it. At the same moment with- drawal of gold for hoarding diminished the quantity of gold available to sustain i P v iom permitted to e process 8o on long enough, we should have been off the gold basis in a serious way. The ess, however, was arrested in ample e. The Government still has up- ward of four billions in gold, and that is enough to much more paper currency than is now in circulation, more than has ever been in circulation and more than is likely to be. For the immediate future, a first problem is to keep the gold reserve as large as it now is. For that purpose, President Roosevelt's proclamation forbids with- drawal of gold for hoarding and forbids shipments of gold abroad. The next step is to avert the necessity for more paper currency. ‘To accomplish that, clearing house “scrip” is going to be put in eirculation in large quantities. ‘This scrip will be a substitute for cur- rency. ‘These two ere now practically ac- complished steps. They would seem to take care of our remaining on the gold basis. The wholly different question still remaining is to get all the banks open again and to get them functioning on a normal basis. This problem is now under intent consideration. The steps for this purpose will probably be ted to Congress as & program on Thursday. (Copyright. 1033.) e Collar Button Never Lost. H. 8. Russell of Bathampton, Eng- land, has announced that he will not sell his faithful collar button. It Is only of bone and it cost only 2 cents, but it never had disappeared in the 51 years he has owned it. Russell bought it from a street peddler in Cheapside in 1882, and has used it ever since. USE YOUR CHARGE ACCOUNT AT 3 THE During the present business emergency all of our patrons are assured of the institution's traditional hospitality and unrivaled service in ’ @ THE PRESIDENTIAL DINING ROOM @ THE MAYFLOWER COFFEE SHOPPE @ THE MAYFLOWER NEWSSTAND Smoking Supplies, Magazines, Newspapers, Books @ THE MAYFLOWER FLORIST We will do everything in our power to keep business on an even keel ly Serve Quality CREAMED COTTAGE circu- | tr CHEESE But Will Send You a Free Sample First . . ! You will marvel at the freshness, the full flavor and delicacy of Chestnut Farms Creamed Cottage Cheese. Made daily right here at our World’s Model Dairy—and there is no more zestful or savory Lenten dish; no limit to the appe- tizing menus that may.be prepared so easily. Drop the coupon in your Chest- nut Farms milk bottle for your free sample tomorrow morning . . . or clip it and mail it tonight! Chestnut Farms Dairy ed Cottage (4 The coupon at the left will bring you a generous sample without charge! S Rasding 41 1 Chestnut Farms MILK R(ecommended by Washington Physicians for its PURITY. SAFETY and SUPERIOR QUALITY Potemac 4000 for Service A-3 " BANKS CASH CHECKS NEW YORK, March 7 (Special) — Most of the banks here would cash checks today for depositors of their in- stitutions for small amounts. In most instances such checks were limited to $25 and were intended “to meet the individual's immediate needs for such items as food, clothing, and tion. Such checks were “cash- ed” for currency. neither gold certifi- cates nor gold being paid out. Fur coats in Security Cold Storage at $2 for the season are secured from all danger, and the cost is more than eaved by lengthened life, lustre and usefulness. Compag 1140 15th Street Without Cash During This Emergency Bailey’s Budget Basis waives any cus- tomary down payment to enable both old and new customers to make immediate purchases without the slightest incop- venience , , , balance over & period of months. 12-Tube Low Boy $59.99 1501 Fourteenth St. N. W. 670 Pennsylvania Avenue S, E. 709 Ninth Street N. W. 910 H Street Northeast . 1549 Seventh Street N. W. REAL P INVESTMENT PROPERTY Management of the property offered to purchasers without cost for three years. We offer the following: $1,750—Brick house, 5 r. and b., west section. Rented very cheap at $18.50 per month. $5,750—Brick store and apart- ment; hot-water heat; seperate entrances. WHITE TENANTS at $67.50 month, Tenants furnish own heat. $8,000—Four brick houses in downtown section; in perfect con- dition. All rented ‘at $102 a month. $6,000—Store and apartmeht on business street; brick building. $2,250—Six-room and bath brick house in good condition; latrobe heat and elec. Rented to reliable tenants at $28.50 a month. $7,000—Two stores, two sple and large shop in rear; northwest section. Income $106 a month. $7,500—Two - family flat, near 13th and Spring road; five rooms and bath each; hot-water heat. Rented for $82.50 a month. $5,500—Large brick house ar- ranged as three apts. All rented Rented to separate white tenants at $75 a month. Tenants furnish at $85 per month. No expenses. heat. Deep lot. A Phone Call Will Give You Full Information On Any Of The Above. AY DIAMONDS WATCHES SILVER 1505 H St. Na. as usual Your promise is still good CHAS. SOHWARTS & SON : RTZ & S TERMS, is solicited. -y USE YOUR CREDIT NO MONEY DOWN Pay Small Weekly or Monthly Amcunts for All Purchases 2% 2 \ LOOK FOR THE SCHWARTZ GOLD CLOCK ON SEVENTH STREET iiz&:Son HOME OF PERFECT DIAMONDS 708 Seventh St. N.W. Protect Public Health By Checking Dangerous OUGHS Due to Colds Coughs and colds are dangerous . . . as well as annoying to yourself and others. Check energy-sapping coughs at their inception. Protect the health of your immediate family and prevent the spread of cold germs. A e s nofe colds. Hall’s is a scientifi- cally compounded prepara- tion containing, amongother beneficial drugs, creosote, :v;:ln'ch nwdicahl :uienci con- lers a great healing agency for imitated bronchial fracts ca from coughing. Hall’s does more tl siop the cough; it goes directly to the seat of the trouble by entering the blood stream . in this brought prompt, safe relief way cold germs are checked in cases of coughs due prevented. ), s THalliexvecrorant Promptly and Safey Stops COUGHS due to COLDS, " AT ALL DRUG STORES 38¢,60cAND $2 Most of us are prone to look with indifference upon the necessity of “breaking up” a cough at its begin- nang. A cough duetoacold is perhaps not alarming at first . . . but if allowed to continue it lowers your vitality, saps your strength and makes you essy prey ofmeny dangecou illnesssss For more than 25 years Hall’s Expectorant = has )