Evening Star Newspaper, March 9, 1933, Page 1

WEATHER. (U. 8. Weather Bureau Forecast.) Fair and ocolder; lowest temperature ht; tomorraw cloudy New York Markets Closed Today. Entered post office, No. 32,454, second class matter ‘Washington, D. C. he Foemny WITH SUNDAY MORNING EDITION Star, WASHINGTON, D. C, THURSDAY, MARCH 9, 1933—THIRTY-EIGHT PAGES. L1 The only Assoc iated » () Means Associated Press. evening paper in Washington with the Press news Yesterday’s Circulation, 125,425 TWO CENTS. ROOSEVELT ASKS CONTROL OF BANKS WANTS REOPENING OF NATION'S SOUND INSTITUTIONS NOW AND AID TO QTHERS President Calls on Congress to Provide Additional Cur- rency, Adequately Secured, to Meet All Demands. FLETCHER INTRODUCES DRASTIC REVISION PLAN Quick Enactment of Program Is Urged—Chief Executive Says Measures Will End Present “Strangulation” of Banking Fa- cilities Throughout U. S. Note: The text of as much of the emergency bill as is mow available for publication will be found on Page A-6. BY G. GOULD LINCOLN. President Roosevelt called upon Congress today for the broadest powers to deal with the banking emergency for the benefit of the people. An hour after his mes- sage was read in the Senate, Sen- ator Fletcher of Florida, new chairman of the Banking Com- mittee, introduced the administra- tion's plan for drastic revision of banking. Action was delayed in the House by a snarl on organi- | zation. | In a message read in bo'.h‘ Houses the President asked: Control by the Executive branch | of the Government over all banks | with authority to open immedi- ately sound banks and to reor- ganize and reopen such banks as may need reorganization. Amendments to the Federal Re- serve act to provide for additional currency, adequately secured, to meet all demands for currency and of business. This additional currency is to consist of Federal Reserve notes, and is provided for in an adminis- tration bill transmitted to the Congress for its consideration. The President called upon Congress for immediate action on this measure. “A continuation of the strangulation of banking facilities is unthinkable,” said the President. “The passage of the proposed legislation will end this condition and I trust within a short space of time will result in a resump- tion of business activities.” “A New Relationship.” The President said he was confident the enactment of this legislation “will not only lift immediately all unwar- ranted doubts and suspicions in re- gard to banks which are 100 per cent sound, but will also mark the beginning of a new relationship between the banks and the people of this country.” Permanent legislation removing the evils existing in the banking system, the -~‘dent told the Congress, could no: drafted within the short space of . days since he took office. This permanent legislation he will send to Congress later. Two other measures which the Presi- dent regards as of immediaté urgency, he said, he would recommend to Con- gress “at an early moment.” What these two measures are he did not specify. Apparently he includes them, however, in his emergency pro- am. “Our first task,” said the President, “is to reopen all sound banks. This is an essential preliminary to subsequent | legislation directed against speculation | with the funds of depositors and other violations of traditions of trust.” Message 500 Words Long. In this way the President indicated the line which his recommendation for ermanent legislation dealing with the ks would take. He called attention that on March 3 banking operations in the United States had ceased. Declar- ing that it was unnecessary at this time to deal with the causes of the failure of the banking system, the President #said that the Government had been compelled to step in for the protection of depositors and the business of the | Nation. That step had been to close | all the banks. The President’s message was com- pressed into 500 words, one of the brief- est_presidential messages dealing with (Continued on Page 3, Column 1.) “JIMMIE” WALKER SUED FOR DIVORCE Former New York Mayor Charged With Desertion in Florida Court. By the Associated Press. MIAMI, Fla, March 9.—Mrs. Janet Allen Walker today sued James J. Walker, former mayor of New York City, for divorce in the Circuit Court of | of Dade County. She alleged L. Mrs. Walker has been spending the ‘Winter in Miami. ‘The former New York mayor went to Text of Banking Message . First Task Is to Reopen Financial Institutions, Presi- dent Says—Asks Federal Reserve Act Amend- ments to Meet Demands for Currency. RESIDENT ROOSEVELT'S message to Congress today follows: To the Senate and House of Representatives: On March 3, banking operations in the United States ceased. To review at this time the causes of this fallure of our banking system is unnecessary. Suffice it to say that the Government has been com- pelled to step in for the protection of depositors and the business of the Nation. - Our first task is to reopen all sound banks. This is an essential preliminary to subsequent legisla- tion directed against speculation with the funds of depositors and other violations of positions of trust. In order that the first objective— the opening of banks for the re- sumption of business—may be ac- complished, I ask of the Congress the immediate enactment of legis- lation giving to the executive branch of the Government control over banks for the protection of deposi- tors; authority forthwith to open such banks as have already been ascertained to be in sound condi- tion and other such banks as rapidly as possible; and authority to re- organize and reopen such banks as may be found to require reorganiza- tion to put them on a sound basts. I ask amendments to the Federal reserve act to provide for such ad- ditional currency, adequately se- cured, as it may become necessary to issue to meet all demands for currency and at the same time to achieve this end without increas- ing the unsecured indebtedness of the Government of the United- States. 3 I cannot too strongly urge upon the Congress the clear necessity for immediate action. A continu- ation of the strangulation of pank- ing facilities is unthinkable. The passage of the proposed legislation will end this condition and, I trust, within a short space of time will result in a resumption of business activities. In addition, it is my belief that this legislation will not only Ilift immediately all unwarranted doubts and suspicions in regard to banks which are 100 per cent sound, but will also mark the beginning of a new relationship between the banks and the people of this country. ‘The members of the new Congress will realize, I am confident, the grave responsibility which lies upon me and upon them. 1n the short space of five days it s impossible for us to formulate completed measures to prevent the recurrence of the evils of the past. This does not and should not, how- ever, justify any delay in accom- Pplishing this first step. At an early moment I shall re- quest of the Congress two other measures which I regard as of im- - mediate urgency. With action taken thereon, we can proceed to the con- sideration of a rounded program of national restoration. (Signed.) FRANKLIN D. ROOSEVELT. DISTRESS' DEMAND LIGHT ATD. . BANKS Limited Payments Relieve Tense Situation in Some Instances. : ‘Washington banks were paying out “distress money” today to all depositors who convinced the officials they were in dire need of funds. The new rule was put into effect this morning on recommendation of the ‘Washington Clearing House Association, in a statement issued last night, based on the Treasury regulation relative to payments for food, medicine and other relief purposes. The demand for this money was sur- prisingly light up to noon. There were no lines in the banks; in fact, very| few more customers in the lobbles than | visited the banks yesterday to cash Government checks, make change, pay notes and do other banking business already permitted under modified Treas- ury holiday regulations. The limited payments, however, re- lieved a very tense situation for those who did need cash. Many gave sighs of relief as they took their money from the tellers’ windows, although they were pald in comparatively - small amounts. Each customer had to fill out a form | certifying that it was absolutely neces- sary to meet personal needs that he withdraw from his account the sum which he requested.. With this signcd certificate, he presented his personal check at the window and got his money. The money was paid out in varying amounts, $5, $10, $15 and high as $25. Some banks limited the sum to Others_were more liberal, but in all cases the limit appeared to be $25. In some banks the officers passed on the “dire need” of the depositors, while the tellers decided the question in others. In all there was a disposition to be as helpful as possible to each depositor. Money could be withdrawn from savings accounts, as well as from checking ac- counts. The question arose as to how often a depositor could call for these “dis- tress funds” It was a hard question to answer. Not too often seemed to be the bankers’ view. ‘Bankers ascribed the lack of any rush for necessities to the fact that the banks have been cashing checks on the Gov- ernment since Tuesday. This has made the sflus’t;m much less tense than in other citles. The Clearing House Association reached the decision that the local banks should meet emergency needs of their depositors by permitting limited T O caie orms were resterday. e cel | Zaopwdym make records which would | show the Treasury Department that only the umilv/ded amounts authorized were being paid customers. The Clearing House Association, in its communication sent to all local banks, again recommended that “every in the District of Columbia meet the needs for cash in order to facilitate the receipt and handling of food and food products in this city.” Reports to the clea house show that all the local banks have permitted withdrawals of funds for this essential community pur- pose. The vital question of permitting pay roll withdrawals from local financial in- stitutions was still unsettled today. The | (Continued on Page 3, Column 2.) e e FRENCH BARE ‘RED’ GROUP 20 Apprentices on School Ship Are Interned for Probe. PARIS, March 9 (#).—The discovery a Communist group in the Prench schoolship Armorique was announced today by the ministry of marine. HOARDING REPORT 10 COVER 2 YEARS Federal Reserve Calls for Ex- tended List of Gold Withdrawals. By the Associated Press. The time to be covered in the report of withdrawals by gold hoarders was broadened by the Federal Reserve today to extend to the past two years. ‘While Treasury officlals were working out the plans that will be followed after the passage of the emergency measure sent by President Roosevelt to Congress today, word went from the Federal Re- serve to its member banks calling for the report. The time originally- designated to be covered in the report of gold with- drawals had been from February 1 to| tion either to publish them or take more drastic action. A tax on with- drawals has been suggested by some. Another worry put before the Treas- ruy today was the manner in which foreign diplomats may obtain funds for the conduct of their embassies. A re- quest to see what could be done about it was transmitted by the State De- partment to the Treasury. o CONFERENCE CALLED ON INSURANCE LOANS Continuance to Be Taken Up by New York Official and Companies. By the Associated Press. NEW YORK, March 9.—George S. Van Schaick, State superintendent of insurance, said this morning that he would hold a conference with insur- ance companies today to consider con- tinuance of granting loans 6n insurance policies, Another matter that will be taken up at today’s conference is the clause in State insurance laws controlling the suspension of the privilege of surren- dering policies for their cash value. Van Schaick said that up to the present “no ruling has been made by this department on those points.” MONEY CIRCULATION GAINS $906,000,000 bank | Total Increased to $6,545,617,139 in February—Gold Figure Higher. By the Associated Press. Circulation of money in the Untted States increased $906,000,000 to a total of $6,545,617,139 in February. Gold in circulation increased from $478,837,314 to $571,337,850 and the per capita circulation of the country jumped from $45.06 to $52.23, the highest per capita circulation since October 31, 1920, while the tohld ch\&nflm was highest on record up to that time. The total money in the country in- creased from $9,694,125,276 at the end of January to $10,275,195454¢ at the end of February. The ml!‘o!d of the country dropped from $4,543,030,918 at the end of January to $4,379,268,999 at the end of February. Of the total gold, Twenty apprentice sailors composing the group, which was uncovered dur- and has not yet ret fipe immediately after his resi 2 ica. ing recent naval exercises, have heen interned at Brest, where examined by & dlaclpnnmm the Treasury held $3,291,684,172. Radio Programs on Page C-3 TREASURY SHAPING COURSE FOR BANKS UNTIL EMERGENCY LAWS TAKE EFFECT Virtual Wartime Restrictions Keep Out Callers, Except Those Actually Engaged in Working Out Plans. NO OFFICIAL COMMENT ON REOPENING TOMORROW Action Depends Largely on Roose- velt's Recommendations, but Agreement With Congress Lead- ers Is Expected to Permit Large Number to Resume Business. By the Assoclated Press. Hedged about by virtual war- time restrictions which kept out all callers except those actively engaged developing the plans they have under way, Treasury offi- | clals went ahead today with the | | work of charting a course for the | Nation’s banks until the special ! legislation enacted by Congress | can go-into effect. | With the convening of Congress into special session today, Secre- tary Woodin continued his confer- ences with financial and monetary | leaders, maintaining throughout his close contact with President ! Roosevelt. | Despite Secretary Woodin's or- ider that all inquiries regarding the new banking regulations be directed to the regional Federal | | Reserve Banks, questions con- tinued to pour into the Treasury. In the rush there was little time for officials to reply to the numerous in- quiries that streamed in upon them from newspaper col dents and through telegrams. Most of these had {to await the regular daily conferences with Secretary Woodin, set for 11 a.m. and 4 pm. Officials Decline to Comment. rem‘l:‘!{l;r blnkxdwuulddbe rmitted to morrow depended ely u) | gdesldmt dRooseng’s recomnrl:nsaum: ay, and no official would comment } on Nt;xe x_s:rr‘ljdsng nc?on. w was forthcoming on h State and Federal banking setu?nmg | would be co-ordinated, but many as- | sumed that Congress would give Federal | authorities full power over State as well | as Federal Reserve and national banks. ; The first change that came from the department today was the issuance by he Federal Reserve of instructions to This was a broadening of the instruc- tions issued yesterday for reserve banks to send in the names of all persons who had withdrawn large since February 1. ©° Sounts of gold Record Kept By Banks. The banks of the count; a record of all persons w!tlgr:u o k:‘s-t able sums of gold du years. o fnaite yo Just what action will be the list is sent to Wnshinggngn: lx‘leol: been announced, but it was. pointed out that officials would be in a position to make public the names of persons they suspect of hoarding or secretly export- su]:;ge n“x;ougts of gold. a » if compiled, w - tain the names of all r‘;erwns 3'1'::-7172- drew gold 18 months ago when Euro- pean withdrawals took $750,000,000 of (Continued on Page 3, Column 4.) CULLEN WILL PRESS 3.2 BEER MEASURE Assistant Democratic Leader Will Introduce Bill Immedi- ately. b By the Assoclated Press. Representative Cullen of assistant Democratic leader, k:nuynoefe: today he would introduce immediately and press for action the bill to legalize and tax 3.2 per cent beer which died in the Senate last session. The New Yorker is a member of the Ways and Means Comi handied the boer bill sponecred po session by Chairman Collier. pell'cce‘:;“ml t;:uie l:go:nlued beer of 3.2 alcohol coni taxed it at $5 a tm'x'el.t % ekt and - | expect the Appropriations Committee 1111711 Concres: THE CAPITOL CARROUSEL. CONGRESS 10 6ET NEW D. ¢ BUDGET |Recommendations Also to Be| | | | New budget recommendations both | for the District appropriaticn bill, which failed because the House refused to approve the conference agreement, and the independent offices appropria- tion bill, which was given a pocket veto.by President. Hoover, will be sub- mitted to Congress at this session, ac- cording to Representative Buchanan, Democrat, of Texas. Under the seniority rule, Buchanan becomes chairman of | the Appropriations Committee. | It is anticipated that Pl’t&(dent' Roosevelt under the extraordinary | powers given him by Congress to re- | the Government establish- | ment and to cut off the various | agencies, will do away with a number of independent offices for which ap- g:‘l(;pnlnom were included in the last Made on Independent Offices Bill. If such cuts are shown in the budget recommendations it is confidently pre- that this will signal the first big fight in the House as to whether the absolute authority granted to the Presi- dent will be supported by the vote in Congress. Chairman Buchanan said he did not to start work for some time on either of the hold-over appropriation bills, DETROIT FACTORIES PAY WAGES IN CASH | | Auts Manufacturers Place Hun- | dreds of Thousands Currency in Circulation. By the Associated Press. DETROIT, March 9.—Hundreds of | thousands of dollars in currency was placed in circulation today by Detroit’s automobile factories, through 100 per | cent cash payments of weekly wages to employes. Although the companies did not dis- close the amounts of pay rolls, most of the larger ones reported cash payments in full of wages for the past week. The Ford Motor Co. and General Motors Corporation announced they were continuing to meet pay rolls in full with currency. The Hudson Mo- tor Car Co. said employes were paid today in full, the money required for the week’s pay roll, totaling approxi- mately a quarter of a million dollars, hay been provided In advance of the national banking holiday. All motor companies reported they were continuing production, although ::m:.:;ld operations were on a restrict- — Air Services Gain. CHIOAGO, March 9 (#).—American Airways carried 5,598 passengers in | February, an increase of 75 per cent over the same month of 1932. L. D. Seymore, president, said air express showed a tremendous gain over last year. e T T T Ty The Rotogravure Section contain an unusually interesti; monies. [y of Washington. “The Sunday Star will be paid anywhere in the United at The Star office, Eleventh S Pictures of the Inauguration covering all phases of last Saturday’s Inauguration Cere- Waghingtonians will naturally wish to send The Sun- day Star to their relatives and friends who live outside for 15 cents. It is suggested that your order be registered- nue, well in advance. There will be a demand for this issue and orders uld be made immediately. of next Sunday’s Star will ng collection of photographs addreéssed and mailed post- States, Canada and Mexico treet and Pennsylvania Ave- Deposits Accepted By New York Banks Under Holiday Rule Special Dispatch to The Star. NEW YORK. March 9.—A few ot the leading commercial banks opened today, for the first time since Friday, to accept cash de- posits to be credited to regular. accounts. This activity was in addition to all previously per- mitted functions. Chase National Bank, in mak- ing this announcement, stated cash deposits are being taken at the discretion of officers of the bank and under restriction. Savings banks here expect to open tomorrow morning to trans- act such business s is permitted by Federal and State authorities. (Copyright. 1933.) MAGDONALD SEES DALADIER TODAY British and French Premiers Will Discuss Germany’s Threat to Rearm. By the Associated Press. PARIS, March 9.—French fears that Germany may announce it intends to rearm are likely to be one of the prin- cipal topics of the talks here today between Prime Minister MacDonald and Foreign Secretary Sir John Simon of England, and Premier Daladier of | France. The French seek to forestall such a possibility by a big power pronounce- ment against Germany. The British statesmen will meet Premier Daladier for the first time since the formation of the new French government. They will leave tonight for Geneva for disarmament conference discussions. Seek Five-Power Parley. It was understood here the British leaders . are seeking a five-power con- ference in Geneva to wind-up the dis- armament situation. A strong joint effort to obtain some practical results at Geneva is expected | to result from their conversations with ‘M. Daladier. Other international prob- lems are likely to be discussed but the | disarmament question predominates. A belief in British quarters that the disarmament conference is threatened with failuge is the reason why Mac- Donald and Simon decided to to Geneva, a London dispatch German rearmament would be in vio- lation of the treaty of Versailles re- strictions which limit Germany's army to 100,000 men and its navy to a pure: 1y coast defense force with a personnel of 15,000. Von Neurath Voices Threat. After the accession of Chancellor Hit- ler in Germany, his foreign minister, Baron von Neurath, said Germany's “patience was exhausted” because the Geneva conference has discussed “much too long and exclusively” France's se- curity wishes. He sald Germany may soon be compelled to express its wishes “more clearly.” For many months the conference has sought ineffectively to conciliate German demands for arms equality precipitated the withdra: from the, ¢onference for about four months. A Geneva dispatch last month sald the French project for disarmament, cn(lii.ng for lnteoan.:tlnng. m:‘m'::.!mm’ and new pa 3 appeared gfll" lost all probability of acceptance. $250,000 BLAZE Fire Threatened Entire Business District of Henderson. N, Ky., March 9 (#).—Fire origin destroyed Hen- $250, itened the entire prd and Lincoln Garage, and the grand MANCHUKUO RULE S SET UP IN JeH0L |Officials Follow in Wake of Army to Take Govern- ment Control. CHINCHOW, Manchuria, March 9 (#).—Headquarters of the Kwang- tung (Japanese forces in Manchuria) army is ordering a general attack tomorrow for the purpose of anni- hilating all Chinese troops still re- sisting along the Great Wall district inside Jehol Province. | By the Assoctated Press. | Following close on the heels of Jap- anese and Manchukuoan troops, who | have swarmed over Jehol Province the |last 15 days, Manchukucan rulership now is being established in the territory. | Manchukuoan officials have taken over control of villages and cities de- | serted by the Chinese in the face of invaders as far as the Great Wall sep- arating the province from China proper. Immediately following the fighting forces came “publicity wagons” and propagandist speakers who extolled the | advantages of Manchukuo. The Man- | chukuoan officials who took over the government of the cities and villages were not far behird. Over a stretch of 250 miles there were | many deserted villages, with 95 per cent |{of the buildings unoccupied, and with | only aged persons and children there- abouts. Meanwhile reports from Chinchow, Manchuria, told of an unsuccessful at- tempt by reinforced Chinese troops to retake Kupeikow pass t.hmu{.h the Great Wall. They were beaten back by | the infantry brigade of Maj. Gen. | Tadashi Kawahara. An_engagement south of Wukungfu, the Tokio dispatches said, resulted in 25 Japanese killed and 39 wounded The skirmish occurred during “mopping | up” operations of Maj. Gen. Heljiro Hattori. CHINESE ATTACK FAILS. | Troops Attempt to Recapture Great Wall Pass, CHINCHOW, Manchuria, March 9 | ). — Reinforced Chinese troops tried | today to recapture Kupeikow, the Great oo et = ehol 5 Japanese reports said the Chinese were repulsed easily by the Japanese infantry under Maj. Gen. Tadashi Ka- wahara, which occupied the pass at noon yesterday after a six-hour battle. NEW BATTLE REPORTED. ‘chln- Declared to Have Fled After | Heavy Casualties. | TOKIO, March 9 (#).—A battle be- tween Japanese and Chinese troops in Southern Jehol yesterday was disclosed in a war today. It listed 25 Japanese killed and 39 wounded in an engagement between a on of Maj. Gen. Heijiro Hattorl’s (Continued on Page 2, Column 1.) and| $1,000,000 FOUNDATION IS LOST TO STUDENTS Depreciation of Treat Estate Pre- vents Benefit Provided in Will. By the Associated Press. BUFFALO, N. Y., March 9.—Ellis Milo Treat, wealthy oil and gas operator, with dle West, who died here recently, created in his will a $1,000,000 foundation to aid o m&mmum. The will, il million dol- to foundation con! the condition of the estate at L= the campaign which has carried the | holdings in Pennsylvania and the Mid- | gold JOSEPHUS DANIELS EXPECTED TO HEAD TRANSPORT UNITS WHEN COMBINED Agencies Proposed for Con- solidation Include Shipping Board, I. C. C. and Com- merce Aero Division. REVENUE POST URGED FOR C. LEROY SHUPING Greensboro Lawyer Is Indorsed for Commissioner by North Carolina Delegation in House—Reorgani- zation Program Not Anticipated Before Several Weeks. By the Associated Press. Josephus Daniels of North Caro- lina, apparently the definite choice of the Roosevelt adminis- tration for chairman of the Ship- ping Board, was understood in some official quarters today to be | destined to head later a combina- tion of Federa! transportation agencies. The units which would enter this consolidation were said to be the Interstate Commerce Com- mission, the Shipping Board and the aeronautics division of the Commerce Department. The first two are agencies of Congress, not under the authority of the Presi- dent, though he appoints their directing officials. Such a consolidation, therefore, would have to be effected by leg- islation. For some time i® has been indicated that President Roosevelt intended to seek unifi- cation of the transport agencies. His recommendations for reor- ganization that must be effected by Congress are expected to be sent up within the next few weeks. Efforts Being Pushed. Daniels, publisher of the Raleigh ‘| News and Observer, was Secretary of the Navy under President Wilson while Franklin D. Roosevelt was Assistant Secretary. They have been intimately associated ever since. Although efforts are- being pushed to complete a governmental reorganiza- tion plan 8s soon as possible for pres- entat. to Congress, there is littie expectation that the complete program will be sent up for several weeks. Meanwhile, another North Carolinian, C. Leroy Shuping of Greensboro, was indorsed today for commissioner of Internal Revenue by the State's dele- gation in the House. Group Calls on Farley. Representatives, headed by Pou and Hancock, called on Postmaster General Farley, patronage dispenser, to urge Shuping’s appointment. He is & lawyer and managed the Roosevelt pre- convention campaign in North Carolina. Recently he has been active in raising money to pay off the Democratic deficit. Pending the consolidation of the transportation agencies, indications have been that Danieis would be a] mnrt:d chairman of the Shipping {BODY OF WILL W0OD ARRIVES IN INDIANA | Will Lie in State at Home of Sister Until Saturday, When Rites Will Be Held. By the Associated Press. LAFAYETTE, Ind, March 9.—The body of Will R. Wood, former Indiana Representative, arrived here from Washington today and was taken to the home of a sister, Mrs. Ed Morse, at Oxford. It will lie in state there until Satur- day morning, when the funeral will be held at the Trinity Methodist Episcopal Church here. Mr. Wood died in New York Tuesday. PLATINUM PRICES RISE DUE TO BANK HOLIDAY Gold Shortage Confronts Dentists. May Have to Use Palladium as Substitute. By the Associated Press. NEW YORK, March 9.—A sharp rise in the price of platinum has been at- tributed to the bank holiday. Because of the embargo on gold, a lative demand for platinum forced price upward from $21 a troy ounce to & point where bids as high as $30 were s was reported, as e office declined to here, makes bequests | work. several