Evening Star Newspaper, March 7, 1933, Page 4

BALTINORE BANKS = WILL1SSUE SCRP : Nine Regulations Promul- gated by State Commissioner Under Emergency Act. | Br 8 Staff Correspondent of The Star. BALTIMORE, Md, March 7.—Issu- ance of scrip in Baltimore was planned by the Clearing House Association of the city as soon as Federal regulations and the New York banking situation Permit, it was announced today, 5 State Bank Commissioner John J. Ghingher proclaimed nine regulations | for Maryland's banks. % They parallel closely the rules pro- mulgated yesterday by Secretary ‘of Treasury William H. Woodin, and were igsued “by authority of the emer- gency banking act of the General As- sembly of Maryland, appraved March 4. and in conformity with the regula- tions fssued by the United States Treasury Department.” g Provisions of Regulations. Gov. Ritchie and Attorney General ‘William Preston Lane joined Mr. Ghingher in approving the State regu- Jations, which provide That the present directors, - officers and employes of every banking institu- tion accepting deposits and doing busi- ness under the laws of the State are designated to continue to cdnduct the business of their respective. institutions. ‘That all transactions of each banking institution shall be completed and the books closed as of March 4, the e date of the Maryland emer- gney banking act. - No withdrawals from present deposit accounts of any nature whatsoever will be permitted until further notice, “but any banking institution may cash United States Government checks pro- vided no gold or gold certificates shall be paid in cashing-such checks. Upon “adequate security” Maryland banks may muke loans so that persons engaged in the business of supplying the community with food may pay in cash for the shipment of foodstufls. All banking institutions may admit customers to safe deposit boxes, make “change, accept deposits “in special trust,” and accept payments in settle- ment of obligations payable at or to such institutions. Charles E. Rieman, president of the Baltimore Clearing House Associatjon, said $15,000,000 worth of certificates | are being printed in Philadelphia for distribution here as soon as possible. Explains Scrip Operation. Explaining how the scrip would work, he said: “If a man has $1,000 in a bank he will be able to draw out the entire $1,000 in the form of clearing house certificates which can be used in trade, Jjust like currency, but they will be redeemable only in bank credits.” Bankers in the counties around. Washington sald today they were un- | familiar with the operation of scrip and were uncertain how it would affect them. Despite the national holiday declared by President Roosevelt, Gov. Ritchie continued the holiday in Maryland with day-to-day proclamations. FOOD PRICES ADVANCE AS HOLIDAY BEGINS Public Warned Against Hoarding| Vegetables and Meats as Quotations Go Up. By the Associated Press. CHICAGO, March 7—A warning against the hoarding of focd was sound- ed today by Chicago dealers after a slight rise in the prices of perishables and meats, resulting from the bank holiday, had sent housewives scurrying to markets armed with baskets and | PO ready cash. Such a lPollcy, grocers and butchers said. would send prices soaring to un- necessary heights, in view of the fact that the Chicago area had enough sup- plies on hand to carry it through the moratorium. Retail meat prices were repbrted from 2 to 5 cents higher and.eggs and but-, ter a fourth of ® cent & dozen 2nd a! half cent a pound, respeétively, in ad- vance of last week's average. The holiday had a reviving effect on qguotations at both the grain and live | stock exchanges. Cash wheat at Chi- cago advanced from 2 to 2Y cents and corn from % to ¥ higher, in view of an order announced by trade directors that transactions in cash grain in Chi- cago would stop tomorrow morning. A decision of the Chicago Live Stock Exchange to close trading this after- noon might be rescinded, Charles Schultz, president, said, depending upon advice received ffom ‘Washington as ‘to payments of shipments by packers. POLICE AND COURTS LENIENT IN CRISIS Minor Traffic Violators Get Sus- , pended Sentences—Time Al- { lowed for Paying Fines. The Police Department and Police ourt are trying to make things as easy as possible during the banking erisis for those who have trouble putting lup collateral or paying fines because \their money is tied up by the bank tholiday edict of President Roosevelt. i Late yesterday Maj. Ernest W. Brown, superintendent of police, ordered all station clerks to accept checks of the American Automobile Association or the American Motorists Association in pay- ment of collateral in traffic violation cases during the emergency. In Police Court the judges took a lenient view of minor infractions. Judge Gus Schuldt suspended sentences in about 50 traffic cases, and insisted on fines and jail sentences in only about half a dozen of the more serious ones. Judge Ralp Given, presiding in the District branch, announced from the bench that where he imposed fines and there were no serious circumstances, he would allow persons who had monu{l in & bank a week or 10.days to meet their fines, FINE FOR HOARDING PROVIDED IN BILL *Pennsylvania Measure Seeks Re- 1. moval of Money From Safe Deposit Boxes. By the Associated Press. HARRISBURG, Pa, March 7.—A fine of $1,000 or three months in prison is provided for money hoarding under a bill offered in the Pennsylvania ? House last night by Representative Ed- win C. Emhardt of Philadelphia. The measure provides that banks may require persons renting safe de- posit boxes to remove noarded money and refuse access to the boxes if the renters decline. All new and present box renters would required to fill out questionnaires hich would reveal hoarded . lse statements in the uld Troubles of Brown With High Hat Are Repeated by Farley *And now comes Postmaster General Farley with high-hat trouble. Arriving at the White House yesterday, the tall Mr. Farley exhibited a dent in his topper and explained that the damage resulted when he entered a taxi. “I am changing taxis,” he at- firmed. ‘Walter Brown, Postmaster Gen- eral under President Hoover, re- cently came in for wide publicity when he told the House Appro- priations Committee he bought a new official car because he could not wear his high hat in the old one. COUNTRY AWAITING FEDERAL GUIDANCE Gold Embargo Necessary to Conserve Metal as Basis for New System. BY DAVID LAWRENCE. A nation calmly waiting the guidance of Government in the biggest emergency since the war and a President movi vigorously and aggressively to mobllize the banking facilities of the country into an orderly attack on the problem of debt adjustment—this is the picture of the first days of the new administra- tion. From all over the country come ex- pressions of confidence that plans in the making will be patiently worked out in the hope of an carly resumption of banking operations, The unity of the people is a matter of deep satisfaction here as it is realized that all the cir- cumstances are new to the present gen- eration and that without a medium of exchange business can hardly proceed. Holiday Provides Time. What the bank holiday has done is to provide time. Already the regula- tions being issued by the Secretary of the Treasury reveal the plan of gradual return to normal, but it will take several days before Clearing House certificates can be issued and the machinery set up for partial withdrawals of old deposits. Technically the gold pasition of the country may give the academicians plenty of opportunity for debate, but the fact remains that the gold supply has been conserved and that the strong arm Government stepped in to prevent exhgustion, If anybody has any doubt that the emergency proclamation of an embargo was” necessary, let him’ find out what was happening at the windows of the trongest banks in the last few days of the past week., The withdrawals were too heavy to be withstood by any insti- tution, and the gold demand, foreign and demestic, wes insuperable, It wouid have forced America off the gold standard in a few days. As it is gold has beenrretained as a basis for setting up a new banking atructure. The dollar is still the dollar of the gold standard, but the bullion is locked up till eredits and debits can be figured out on a basis that will b> accepted by everybody as sound. In e large sense i the Government is auditing the banks | and reclassifying assets so that every body will' know what values really are. | Congress to Act This Week. This reorganization was inevitable, but everybody wondered how it could be done lawfully. Reccurse to the old statute known as the trading-with-the- enemy act has been suggested again and again and it did afford a_basis, though lawyers will still argue whether *11t really covered a peace-time situaticn. In any event Congress Thursday of this weeic will have an opportunity to pas confirming legislaticn before the hol day is over and this will tend to pre- vent futuye litigation on the points in- It is possible that the broad s of emergency possessed by & President under the Constitution might be invoked as suficient ground for the ection taken, but 211 doubts will be cleared away by action of Congress and meantime the emergency has been met. ‘While Government officials have been working night and day and conferences have been going on at the Treasury and wel ( the Pederal Reserve Board almost con- tinnouxly, with stafls on hand ready to execute orders and draft regulations, Washington has externally been calm, and the moment the new President got into action a feeling developed that de- cisive strokes would be taken. All indications point to a reopening | of the banks on a checking basis by the end ‘of this week, but the impounding of the gold supply will continue till confidegce has returned. (Copyright. 1033.) B 3 DEPUTIES VOTE FOR WAR ASUNCION, Paraguay, March 7 (). —The Chamber of Deputies last night unanimously approved & formal decla: tion of war against Bolivia in the Gran Chaco border warfare. The Senate previously had given its assent to the proposal. For months Bolivia and Paraguay | have fought over the Gran Chaco, with many casualties on both sides. ‘The administration of President Ayala was, by the legislative action, authorized to declare war when it deems such a move feasible. BARGAI { NG STAR, WASHINGTON., D. C, T STUDIES D. C. PLAN Limited Business Along Lines Set by Treasury Is Permitted. (Continued From First Page.) Severe burden on the local financial institutions. The moratorium is giving the banks here s needed opportunity checks and learn if they had been paid before all the States went on some form of restricted banking. ‘The difficult bookkeeping situation is now being cleared up very rapidly as the clerks have no interruptions while gommercial accounts cannot be drawn upon. The banks will soon know the | exact balance of every customer, if they | do not already. This has been one of the most help!ul factors resulting from the President’s holiday proclamation. Some depositors were taking so-called “hoarded gold” from their safe deposit boxes, All the banks reported that this was being done, only enough been taken out in most cases to meet living ex- penses. \Now that the banks can g0ld, the only gold available es, Recommendations Made. Today's partial reopening of banks was based on recommendations made by the Executive Committee of the Clearin House Association, following modu‘lus regulations by Secretary Woodin, issued | late yesterday. Shortly after 10 o'clock | 1ast night the Clearing House Commit- g’n ks:nv. thesg, recommendation’s to all | L That the . responsible executive officers read the inclosed regulations of the 8ecretary of the Treasury carefully. | 2. That safe deposit departments be opened, beginning March 7, 1933, for the transaction in that départment of business fn’ the ususl manner. 3. That change be made at tellers' windows as authorized by the Secre- tary of the Treasury. “4. That for the accommodation of customers, checks drawn on the Treas- urer of the United States be cashed at | tellers’ windows. “S. That your bank accept payments fll! out no in strong in cash or any other form acceptable ! to it on account or in settlement of obligations payable at or to your bank. “6. That the facilities of your bank | be extended to assist in transactions in- | 2 We Would Be Delighted to Have You Open a Charge Account For 57 years this business has grown and prospered because of the confidence of the public on the | s high quality of our merchandise and its fair and nominal prices. | in us and we have tried to show our faith in them by extending the most generous credit terms. emphasize the fact again that we deem it a privilege to be able to extend the most generous\erms to all who desire to buy furniture, rugs, drapes, jewelry or anything that we may have to offer. volving food or feed products in ac- cordance with the regulation of the Becretary of the Treasury. | " “It is important to note that no bank is permitted to pass out or permit the withdrawal for any purpese of gold or gold certificates. “It is further recommended that | trust departments be kept open for the | purpose of consultation with, and the | giving of information to, customers, but | no transactions not permitted under | regulations issued by the Secretary of | the Treasury shall be carried on by trust departments. Real Estate Acitvities | t is also recommended that bank- ing institutions having real éstate de- ! partments keep said departments open for the purpose of the receipt of rents, | the care and preservation of properties | and the transaction of all ordinary real | estate buciness which does not partake | of a banking nature as prohibited by the proclamation of the President, “The adoption of these recommenda- tions involves, of course., the opening of the doors of your bank. “There is inclosed, among the regu- | lations above referred to, one relating to the acceptence and segregation of new deposits, which will be payable in whole or in part, upon demand. It is the view of the Clearing House Com- mittee that the method of conducting this business and the setting up of rec- | ords therefore, require careful study be- | fore definite recommendations can be { made as to the time when this service can be established. The committee ! therefore urges each pank to give care- | ful consideration to the provisions of this regulation in order'that it may be in a position at as early a date as pos- sible to offer this additional service to the public. The committee believes that uynder this regulation it is desir- able that there be uniformity as far as | possible as to the opening of this serv- |ice. As pramptly as we can do so we | will nsmit to aii banks our recom- mendations for the commencement and transaction of this business. “Your attention again is called to the fact that: “(a) in making change; “(b) in cashing checks drawn on the | Treasurer of the United States: ¢) in assisting in transactions in- ng food or feed products; | “(d) in permitting the withdrawal in whole or in part of new and segregated deposits; and ‘or “(e) in any other transactions, your bank must not pay or permit the with- draws] of any gold or gold certificates. “This is important! “Yours very truly, SCRIP, NOT SCRIPT It's “srip,” not “script.” Dictionaries define scrip as & certifi- memorandum, schedule or list, | cate, | usually applied to a paper issued in | lleu of something of value. Script is defined as writing, especially in distinction to'printing. Both come | from the Latin “scribere,” to write. N FARE? PENNSYLVANIA RAILROAD FARES ARE ROUND-TRIP NEW YORK $3.50 *Coaches reedy for occupency 11.30 7. w. PHILADELPHIA $3.00 WILMINGTON :z 75 R 3.00 CHEST! K BALTIMORE $1.26 ITTSBURGH $6.00 EASTERN STANDARD. TWME SUNMDAYS, March 19, 2,96 Lw Weshingon *12.15, 7.50 & u. S io Cley SUNDAYS, March 12, 26 Lv. Washington 7.50, 10.00 & m EVERY SATURDAY end SUNDAY Coaches ealy, all reguler woins SATURDAY, March 18 Lv. Washingtén 11.00 LOW ROUND-TRIP WEEK-END PARES TO ALL POINTS PENNSYLVAN TRADE MARK A RAILROAD Importer’s Sale of a Magnificent Collection of High Grade Oriental Rugs - REGISTERED in all sizes AT PUBLIC AUCTION within our galleries 715 13t Tomorrow, Thursday and Friday, at2P.M. h Street , Mareh 8th, 9th and 10th, 1933 Each Day WITH 2 Special Even Se: and Thursday, ng ons—Tuesday, March 7th, March 9th, at 8 P.M. Each E On Exhibition Up to Hour of Sale Each Day rare Ml’l Silk to trace back thousands of thesel CLEARING HOUSE WORKERS ARE PAI BY VARDUSNEAKS Some Employers Issue Small Checks to Take Place of Currency. By the Associated Press. NEW YORK, March 7.—Devices of one kind or another have been adopted by leading business concerns to meet pay rolls, supply customers, reimburse merchandise creditors and in eral to maintain normal operstions the {1‘“ of the banking holiday restric- ons. ‘The General Electric Co.,, one of the largest employers in the country, is solving the Kroblem of workers' wages by issuing checks in small enough de- nominations to as currency with l:hopknp'n an other trades people, the company snnounced. Every day pay day for General Elec- tric employes at some plant or other, and in consequence the company is finding it necessary to issue & vast amount of checks. ‘There were several additions todav to the list of important distributing companies that have taken steps to in- sure sn uninterrupted flow of goods and supplies to their customers pending removal of the banking impasse. Will Allow Discounts, ‘The . foliowing telegram was sent to the district sales offices of the General Foods Corporation by James F. Brown- Jees, president, yesterday: “Continue to solicit business from customers of good credit standing on basis of open account or cheek subject to collection. Cash| discount allowed to all who costomarily discount. Assure your customers we will co-operate to the full limit of our ability. Jullus Kayser & Co. manufacturers and distributors of women's wear, an- nounced they would continue to ship on orders on their regular terms, with rl{; t these terms subjec imposed may mark the low point of the depre: gg Silver Dollars And Large Bills Circulated Again By the Associated Press. KANSAS CITY, Maich 17— Street car operators re they received more silver mug‘ than they had seen in months. Grocers said much of the old large-sized currency came over their counters. sion which business has been snxiously awalting since the end cof 19290 was suggested in a statement by A D. Whiteside of the Dun & Bradstreet, Inc., credit agency. Hopes for an early recovery situation, said Whiteside, lie “in the country’s monchudn position brought about by the liquidation of inventories and drastic reductions in operating ex- penses, Advance Small Sums. It was reported that certain firms’ with pay rolls falling due yesterday and today had decided to hold up dis- bursements until bank scrip was re- leased for circulation. To tide over amployes who were acutely in need of funds these firms advanced small cash payments, it was said. To avold a too great draft upon its cash resources the New York Telephone Co. redeemed checks for only a part of the salaries due and requested the workers to hold the checks for the remainder until the banks reopen. It was estimated that the amount of the | checks redeemed in cash were for about one-third of tll]\! total amount of the regular pay roll. egum of the larger pay rolls due yesterday were met in cash. These in- cluded the Pennsylvania, New York, New Haven & Hartford and Lehigh Valley Railroads. The amounts dis tributed by these companies, however, covered only sections of their teri tories. ‘The American Telegraph & Tele- phone Co. has & large pay roll due on Thursday and officials were quoted as "hoglng" that arrangements could be made for bank cashing of the pay thecks in scrip. The company is pre- pared to meet emergency needs of its employes unpble to obtain funds in the usual channels, it was understood in official quarters. ‘Twenty-two countries had “World Thrift day” celebrations this year. Fhe fulius Lansburg from the present abnormal| ARCH_ 7, 1933. QUICK RESTORATION OF BANKING SOUGHT Finance Executives Believe Nation-Wide Basis for Business Is Need. By the Associated Press. NEW YORK, March 7.—Concerted Nation's money arteries to finance ordl- nary bread-and-butter business were hastened in the third day of America’s momentous banking holiday today. And a nation which had developed & highly organized and effictent system of settling 90 per cént of its business with bank checks, found that once disrupted, the highly complex procedure was not easlly restored. True, bankers pointed out, scrip or clearing house certificates have been used in this country before. In the pre- war crises, banking groups in various cities quickly organized and issued the supplementary medium of exchlnfi But today, with so much more of t| country's business conducted on & na- tional * scope, many executives feel banking business must be restored quickly on a national basis. Operate Throughout U. 8. Most of the leading corporations in the coutnry today do business in almost every State. Therefore, form of emergency scrip used in Kansas City, say, must be so drawn as to be redeem- able by a furniture manufacture in Grand Rapids, unless the manufacturer is prepared to extend almost unlimited credit to distributors in Kansas City and other points. ‘Therefore, the banking problem is being dealt with nationally, in so far as possible. Individual cities and States are working on separate schemes. while Wash! authorities are trying to piece them together. Gov. Lehman has worked out a State-wide plan for New York State, while the New York Clear- ing House has developed a New York City plan, which may piece in with the | State pl At the same time, Gov. efforts to transfuse enough life into the | FRCE Lehman explained that his State plan ht be absorbed by a national plan. { banking sauthorities are par- ticularly anxious to avold is a sort of foreign exchange market in the funds of various cities, commanding various degrees of premiums or discounts, which would make business costly and uncertain. . Seek Future Policies. But while Americans concentrated finance more readily the ordinary day- to-day business of the land, the finan- clal world at large watched develop- ments intently, concerned less with the emergency measures, but in the hoj of finding clues to the policies to pursued when the emergency is past. For the suspension of dollar trad- ing has removed from the international markets one of its most important ts. While the pound sterling long international standard of value, the British suspension of gold payments in September of 1931 robbed it of its sta- bility, and the gold dollar became one of the chief measuring sticks in foreign exchange dealings. While American blnki.nf authorities | mostly insist that our holiday on gold | payments has not removed the United States from the gold standard, Wall Street international banking quarters find that many Europeans are finding |1t diffcult to interpret the action here, Poffman € | @leaners ; 1534 Pa. | | 703 12th We especially soli tomers to call or phone our For many years this plant the leaders in America. upon the emergency measures to| 1d the distinction of being the | and are insistently asking what we pro= pose to do about gold payments after the holiday expires. * French Franc Uncertain. The American holiday on gold pay- ments, it was apparent in European foreign exchange dealings yesterday, has aroused uncertainty over the French franc, the other leading gold currency, for the switching of funds from French francs into pounds sterling developed in large volume, although the pound is siready off gold. As a maiter of fact, it is this timid fluid capital surging back and forth between capitals, according to some banking authorities, which has made the maintenance of the internatiorsl gold standard so difficult in recent years. The banking crisis in this country, some economists feel, may not only hasten better bapking regulation here, | but may prompt more vigorous efforts at’ the forthcoming World Economic | Conference to make the international gold standard more stable. On “Gold-Dust” Basis. JUNEAU, Alaska, March 7 ().— | Alaskan merchants ‘prepared to go on a “gold dust” basis today. They resur- rected old scales to do business with prospectors who had quantities of the ! metal in its original state. SPECIAL NOTICE From the 0., Inc. and Byers ATLANTIC 4000 Ave. S. St. N.W. it a continuation of patronage from all whom we have served before—and also invite new cus- credit department and open regular accounts at this time. has stood in the forefront with The daintiest as well as the sturdiest materials are cleansed with ‘equal thoroughness and care. OQur customers have shown their faith We The Julius Lansburgh Furniture Co. 10-Pc. Genuine Walnut Dining Room Suite We" just received our second carload of these wonderful suites They are elsborately carved, carefully constructed of genuine walnut veneer over lwood, maassive construction—richly highlightec. Ine] ludes an extension table, inclosed server, buffet, china cabinet and 6 upholstered seat chairs to match. $10 Delivers This Suite—Balance in Small Amounts No Interest Charged for Credit Furniture (5o, Entrance, 909 F St. Service That Satisfies