Evening Star Newspaper, March 10, 1933, Page 5

ROOSEVELT GIVEN | CURRENCY CONTROL Power Invested by Congress Extends Beyond Bank Management. Congress has given President Roose- 4elt not only full control over the banks of the Nation, but management of its currency as well His is now the power to decide which banks shall open. and to what degree, and which shall keep their doors shut. His is the authority to decide how far the currency of the country shall be expanded over the broadened base pro- vided by the emergency measure. His Secretary of the Treasury has been empowered to demand that all citizens and corporations surrender to the Government whatever gold coin, gold bullion or gold certificates they may possess. His Controler of the Currency has the power to use a sur- geon's knife on cancerous grawths within separate banks, instead of hav- ing to resort to the guillotine or keep hands off. Banks Left Out. To some extent the extraordinary legislation left out in the snow the ma- jority of the Nation's banks—that is. the banks formed under State charters which are not members of the Federal Reserve System. To these, most of them unit banks in small communities, the bill, however, has made available a new ‘warming system by which some of the frozen assets may be thawed, by which they, too, indirectly may get a share of the new circulating Reserve Bank cur- rency or. in extreme cases, sell new capital stock or borrow from the Fed- eral Reserve banks on promissory notes backed by Government obligations. So far as the pocketbook of the ordinary citizen is concerned, the most powerful provision in the bill—as many observers interpret it—is that ‘which provides for currency expansion. From now until such time as the Pres- ident may proclaim the emergency a an end, “any notes, drafts, bills of ex- change or bankers' acceptances” de- posited by the Federal Reserve banks with the Secretary of the Treasury will be good enough stuff upon which to issue paper money—not dollar for dol- Jar—but to not more than 90 per cent “of the estimated value of the prof- erred securitv.” These circulating notes, the bill provides. shall be re- deemable “in lawful money of the Tnited States.” Against direct Govern- ment obligations presented at the Treasury by the Federal Reserve Banks the new circulating notes may be is- sued dollar for dollar on the face value of the Government securities. Help Non-Members. Indirectly, those provisions will help non-member banks as well as member banks out of the present financial freeze. The non-member banks may discount their paper with correspond- ents which are member:, and the latter may then rediscount the paper with the Federal Reserve banks One of the most evolutionary—if not revolutionary—provisions of the bill is| that which provides that banks may rebuild or strengthen their capital| structures by the issuance of preferred | stock. Hitherto the capital structure | of almost every banking institution in; the country has consisted of common stock. surplus and undivided profits. But from now on any national bank may, with the Controller's approval and by majority vote of those holding | a majority of shares, issue preferred stock to such an extent as the Con- troller may approve. This can be done on five days' notice. The holders of such preferred stock shall be entitled to 6 per cent cumulative dividends and will not be liable, as are the holders of common stock. to assessments to re- store capital impairments. With the approval of the President| and the Secretary of the Treasury, any | State bank or trust company, as weil | as any National bank, “in need of fands for capital purposes. either in connec- tion with the organization or reorgani- mation” of such institutions. henceforth may request the Reconstruction Finance Corporation to subscribe for their pre- ferred stock. The measure authorizes the R. F. C. to comply with such requests. thus| making that organiza¥ion a purchaser and seller of securities. as well as a lender to corporations in distress. The act permits the R. F. C.. with €he Treasury's approval. to sell such preferred stock of banks in the open market. Amount Increased. “The amount of notes, bonds. de- bentures and other such obligations which the Reconstruction Finance Cor- poration is authorized and empowered to issue and to have outstanding at any one time under existing law. the measure read, “is hereby increased by an amount sufficient to carry out the provisions of this section.” To the member banks “in excep- tional and exizent circumstances.”| with no further eligible and acceptable essets available for rediscounting with the Federal Reserve. the new Congress has thrown out still another life-line. It has provided that a Federal Reserve bank, under rules of the Federal Re- serve Board, “may make advances to such member bank on its time or de- mand notes secured to the satisfaction of such Federal Reserve Bank.” To insure against abuses of this life- waver, the act provides that notes of-| fered against such advances shall bear | interest at least 1 per cent higher than: “the highest discount rate in effect at, such Federal Reserve Bank on the date ! of such note.” The emergency act offers succor not | only to the banws. but under certain | unannounced conditions, to individuals, ! rtnerships. and corporations of all, nds—provided they have government obligations to put up i “Subject,” the measure says, “to| such limitations, restrictions and regu- lations as the Federal Reserve Board may prescribe. any Federal Reserve bank may make advances to any in- dividual, partnership, or corporation on the promissory notes of such individual, | partnership, or corporation secured by direct obligations of the United States. Ninety days will be the limit on these tatter advances. for which the interest Tates shall be fixed from time to time by the Federal Reserve banks making such loans. By looking through a new pair of yosy spectacles at securities which, un- der the old laws did not look good enough for rediscounting purposes. to- day’s Congress automatically improved the standing and the degree of liquidity of hundreds of bank portfolios. One of the factors that brought many banks to the door of the refrigerator in recent ‘weeks, it was remarked last night at the Treasury. was the fact that “the Re- construction Finance Corporation al- ready had taken over nearly all of their good assets” as security for loans. Through the kindly eyes of the new measure, many a security that looked weak and immobile last week will ap- pear strong enough to walk into the Federal Reserve Bank and get itself swapped for brand new money. For the Federal Reserve Board now has dis- cretionary authority to approve the re- discounting of paper, that, by law, pre- viously was ineligible. New Strength Seen. Purthermore, sound banks, which have written off their capital after taking loss after loss in the years of the great shrinkage, henceforth, when they seem to merit it, will be given the op- portunity to acquire new strength by issuing preferred sto:’ and selling it to the Reconstruction Finance Corpor- ation. ‘The act rushed through Congress ‘:&erdly validated® the action of the sident in declaring a national emer- gency on his second day in office. It: suthorized the President in any period of national emergency to regulate or prohibit as he mev see At all banking i a conservator to such bank. EVENING Secretary Woodin was a most interested spectator at the White House last night when President Roosevelt signed the emergency banking legislation rushed through Congress yesterday. —A. P. Photo. and foreign exchange business. It con- ferred upon the Secretary of the Treas- ury, whenever he should deem such action necessary to protect the Nation's currency, the power to require every one to deliver to him their gold coin, bullion and gold certificates. The pen- alty for violation of this—and all other provisions of the act—is, upon convic- tion, 8 maximum fine of $10,000 an maximum_sentence of 10 years' im- prisonment. In extending the controller's power the act gave him more control, not only over national banks, but over State banks as well. Whenever he shall deem | it necessary, in order to conserve for the benefit of depositors the “assets of any bank,” the controller may appoint The con- servator would take charge and enjoy all the powers now conferred upon T ceivers. The bank would resume bus ness only when the controller became satisfied that it might safely do so. Or, it he saw fit, the controller could permit limited withdrawals by de- positors. Moreover, he could permit during the moratorium the receipt of new deposits. which would be segregated from the rest and either kept on hand in cash, invested in United States Gov- ernment securities or deposited with a Federal Reserve bank. Plans of Reorganization. Henceforth, in any reorganization of any national banking association oper- ating under a plan which requires the consent of depositors or stockholders, or both. the reorganization shall become effective only when the controller ap- proves and when the depositors of 75 per cent of the deposits or the holders of at least two-thirds of the capital stock, or both, shall have consented in writing to the plan of reorganization. Fifteen days after such a bank has been turned back to its board of directors the deposits received during the period when a conservator was in charge shall cease to be segregated and will have to take their chance with the rest. The measure makes no direct move toward a unified banking system. It greatly enhanced, however, the compar- ative advantages of a bank’s belonging to the Federal Reserve System. Some of those who studied it predicted that it would serve to bring the system many a State bank that ih now out of it If this drift should become strong. the result, it was observed, might even- tually be a unified banking system in tue United States. There still might be State banks as well as national ban But they would all be under the redis- counting wing of the Federal Reserve—a | shelter to which, in the 20 years of its existence, less than one-third of the Nation's banking institutions have yet been drawn. {DEMANDS FROM NEEDY FOR SHOES CONTINUES Help of Citizens Asked by “Old ‘Woman Who Lives in a Shoe.” Deluged with demands for men's and children’s shoes as the city faced an- other cold snap, the Old Woman Who Lives in a Shoe” who supplies free footgear to the needy, today issued an appeal for Washingtonians with serv- iceable shoes to turn them in at the office on Seventeenth street near H. Representative Harlan of Ohio will speak in behalf of the organization over station WMAL tonight. George Emerson, manager of the of- fice, today reported that he was co pletely out of both children’s and men's shoes, and scores are being turned away hourly. “There is particular need,” he de- clared. “for children's shoes. We are having a large number of children sent us by school teachers, and the young- sters, in some cases, have their feet right on the ground. There is danger of serious illness to some of them if we _cannot provide them with shoes.” There is always need, he added, for men's shoes, the supply never seeming to meet the demand. WHEAT DRIVE IN CHILE WOULD AVERT SHORTAGE Government Orders Provincial Of- ficials to Make Extensive Campaign. SANTIAGO, Chile (#) —Fearing fu- ture food shortages and the necessity of using some of the Central Bank’s badly- needed gold for purchases abroad, the government has ordered provincial offi- cials to make an intensive campaign for more wheat. The administration hopes to have 1,652,840 acres sown in wheat for next season, a figure far above present acre- age. ‘The government announces that it will fix & minimum price, and that if any farmer, is unable to sell his wheat the commissariat of price control will take over his grain at that figure. President Arturo Alessandri’s farm colonization plan also is expected to aid in the increase in production of wheat. He hopes to have both collectives and co-operatives functioning before the next season. PRIVATE MINT ACTIVE Counterfeit Australian Coins Being Made in China. SYDNEY (#).—An all-Australian four-cylinder motor car will shortly be ducing huge quantities of almost perfect counterfeits of Australian silver coins. Three Chincse who were found with counterfeit «3.ns have been deported. but anxiety has been increased by the | fact that_the police in giving evidence against them revealed the correct for- mula used in Australia’s coins. With his knowledge the pirate mint can pro- duce lect money. A dojiar's worth of Australian coins :fin be made from 14 eentg worth of Iver. NEW BILLS T0 1SSUE INNORMAL FASHION Emergency Currency Will Flow to Public Over Bank ! Counters. By the Assoclated Press. American citizens will receive the new money which is to be put into circula- tion, under terms of the emergency bank legislation enacted yesterday, through the normal channels of cur- rency circulation, Treasury officials have announced The new currency will flow out to| the public over the counters of the| banks in exchange for checks and in| the normal routine of banking business, just as all currency has been paid out | | the past, it was explained. Security for New Bills. The new bills will go from the Bu- reau of Engraving and Printing to the banks of deposit through the 12 Fed- eral Reserve Banks, to which they will be issued by the Treasury in exchange for Government bonds, notes, drafts, bills of exchange and bankers' ac- ceptances. The notes will be given the Reserve banks to the full face value of the United States obligations turned in and to 90 per cent of the “estimated values” of the notes, drafts, etc. The Reserve member banks will put up similarly acceptable assets with the | Reserve Bank of their district in ex- change for the currency they need. In exceptional cases where the member banks have no such assets the Reserve Bank may make them advances on time or_demand notes satisfactorily secured. The amount of currency issued is normally regulated by the volume of bank withdrawals. As the demand for ! cash is now considerable and as gold | certificates are not to be paid out for | the present, the requirements for new money are calculated to be considerable. Cash Payment of Obligations. Another method of putting money into circulation is for the Government |to pay its obligations in cash. Rela- tively small amounts ordinarily reach | circulation in this way, however. and there has been no indication that this method would be adopted in the pres- ent situation. The bill also will put the new money !into circulation by order of the Secre- tary of the Treasury, by exchanging it for gold and gold certificates. either bank reserves or private hoards. The | measure gives the Treasury specific au- | thority to call in such reserves or hoards | whenever it decides the situation de- | mands it. Penalty is provided for any one not complying. | Turin Guarantees Spaghetti. | TURIN, Italy (#) —A diploma from the newly established cooking school at the National Gastronomical Academy | here will be accepted anywhere in Italy as & guarantee that the holder is a mas- ter in the art of preparing spaghetti. The school specializes in Italian dishes. EISEMAN’S SEVENTH AND F ‘ STYLISH ALL-WOOL NOTHING DOWN Just Pay $6 IN APRIL $6 IN MAY $6 IN JUNE Excellent values at $18. Strictly | all-wool materials, smartly tai- lored. New Spring shades of, grey, tan, brown and blue. |BARGAINS AT $18 STAR, SHINGTON SIMPLICITY MARKS HISTORIC SIGNING President Smooths Hair and Uses $1.50 Pen for " Bank Bill. 2 BY. J. RUSSELL YOUNG. It was with a $1.50 fountain pen, and only after he had paused a second or two to smooth down his ruffied hair at the request of Mrs. Roosevelt, who stood behind his chair, that Franklin D. Roosevelt last night signed the bill, rushed through Congress, making him the financial dictator of the Nation. ‘The President was in the happiest sort of a mood on this dramatic and historic occasion, and laughed and talked with those about him as he was affixing his signature and for & few minutes afterwa Owned by Miss Cook. The pen made famous on this oc- | casion belonged to Miss Nancy Cook of | New York, an old friend of Mrs. Roose- velt, who is & house guest at the White House. As it was being handed back to her by the President after the sign- ing. Miss Cook assured him that she would always keep it as one of her most treasured possessions. He smil- ingly replied, “At Albany I always charged 10 cents for using a special | pen.” One of President Roosevelt's char- | acteristics when he is absorbed in an important matter, is to run his fingures through his hair and to frequenty pull | at his thinning forelocks. Last night, when all was set and ready for the sign- |ing. and just as the semicircle of cameramen at one side of the room were awaiting the word to “bang away,” Mrs. Rooseveit, who had been looking on up to this moment with a proud and happy smile, happened to glance at her husband’s mussed-up hair, and her face changed from one of jubilation to woe. Quickly she rushed to her husband’s| side. Holding up one arm at the time | as a signal fo rthe photographers to | wait, she called out loudly: “Franklin, | | please fix your hair!” Roosevelt Laughs. ‘The President laughed, but endeavored to comply. His efforts at arranging the locks was noticeably indifferent, and Mrs. Roosevelt not being satisfled, called to Secretary of the Treasury Woodin, who had just entered the room: “Come quick, Mr. Secretary, and help him smooth his hair.” The slightly bullt cabinet member, who hasn't had much sleep since he took over the Treasury portfolio, and who is commencing to show it, was most obedient and went through the mo- tions of helping with the President’s locks, chuckling all the while. | Then followed the flashing of lights| and the clicking of the cameras. After | about the second flash & fuse blew out, but this did not effect the flluminatien of the room. It was merely the wire upon which the camera lights were at- tached, but this was quickly fixed, and the photographing continued. The President actually signed the bill at 8:37 p.m. Once again he selected the oval room, which opens up into his own sleeping quarters, and which he has been using &s a combination work room, library, sitting room and loung- ing room, for history-making incident. It was in this room that he so hurriedly had his cabinet sworn in on Inaugura- tion day, in which he has since held his most important conferences, and in which he has written his several proclamations and his message yester- day to Congress. This room was used by the Hoovers as an informal sitting room, and it had not been put in shape in the matter of furnishings when Mr. ‘Four Plead Guilty and Get 5 to 5 D. C.. FRIDAY, Roosevelt picked it out for the scene of his activities. Therefore, this room has not yet been orderly arranged. The President been too busy to be bothered about straightening things and | refurnishing. This was especially mnoticeable last night. Unhung pictures were _‘m about, leaning against the walls. were several wicker baskets on the floor containing books and other bric-a-brac. On the top pile of one of these baskets was the famcus tsil of Gloster, a relic of & famous race horse owned by the President’s father. Two or three of the marine prints, so greatly prized by Mr. Roosevelt, brought on to the White House from his Hyde Park Home, been hung, while several cthers were seen leaning against the wall, ready for hanging. Behind the President's desk was the flag of the United States and the President’s flag. ‘Throughout this dramatic and historic incident, however, there was an ex- tremely homelike atmosphere. This was in the form of a delicious aroma | of liver and cnions wafting up to the room from the kitchens in the bese- ment floor of the White House. Present at Signing. Besides Mrs. Rcosevelt, the Secretary of the Treasury and Miss Cook, the others in the room for the signing were Representative Claude V. Parsons of : 1ilinols, chairman of the House Enrolled | Blils Committee, who brought the bill after it was rushed through Congress' to the White House; South Trimble, clerk of the House; H. Newland Megill, employed in Clerk Trimble’s office, and | Garrelt Whiteside, clerk of the Senate | Enrolled Bills Committee, and about a | score of mewspaper correspondents and | the cameramen. As Representative | Parsons presented the bill to the Presi- dent he remarked that Congress had established & record in this case in passing the bill so quickly. Mr. Roose- velt congratulated the Representative, saying at the time: “So it was really & record? That way wonderful.” | Mr. Roosevelt’s work for the evening | was nct over, howeyer, with the disposal | of the signing of this document. Im- | mediately after this was out of the way he entered upon the task of writing his proclamation extending the bank holi- day, and efter that, even though it was growing late, he :at down for a long and important conference with a large bi- partisan group of Senate and House leaders. KIDNAPERS SENTENCED Years in Sing Sing. NEW YORK, March 10 (#).—Four | men on trial for the kidnaping of | Ernest Echoenig, a Pleasantville, N. J., | bootlegger, pleaded guilty in Brooklyn County Court yesterday and were sen- tenced to from five to twenty-five years each in Sing Sing. They were Arthur Graef and John Nevins, policemen, and Max Geller and | Leonard Gawelcyk. both of Brooklyn. | Frank Miller pleaded guilty to second degree assault and remains to be sentenced. Czech Pi}liun{e;c a Babel. PRAGUE ().—Seven languages are spoken in Parliament here, Czech. Slo- vak, German, Hungarian, Russian. | Ruthenian and Polish, and there are stenographers for each group. Omly one deputy speaks in Polish, but a Polish stenographer is on_the pay roll. UNITED STUCCO PROCESS Will renew and waterproof stucco and pebble dash in the original or selected colors, eliminate cracks and other defects at no greater cost than painting and is_durable. Home Improvements GEORGIA™ 3400 STONEBRAKER Agt.. United Specialty Const. Co. PareDelicious ANDICS This week we offer you two mare exceptional CANDY SPECIALS. Every piece is pure, fresh and wholesome . made in a modern sunlit plant, cheap candy . Fresh! Crisp! Homemade Peanut Fresh, made of pure country molasses and simply “chock-full” of tempting, tasty peanuts that have been carefully selected and roasted just right. Prepared and packed un- derstrictly sanitary con- ditions. crisp brittle, Hershey’s Broken Milk Chocolate 2 1bs. 15¢n. . . but GOOD candy cheap! tasted more delicious candies at twice the special low price your money will be gladly refunded. of choicest ingredients. NOT If you have ever Brittle 1 Oc POUND for 27c Pure, rich, delicious milk chocolate. ..a prod- uct of the famous Her- shey (nocolate Company. Broken in convenient sized lumps. A whole- some and nutritious con- fection...give the chil- dren all they want to eat s healthful. MARCH 10 ITALY TO ELECTRIFY HALF OF RAILWAYS Full Plan for Next Five Years, Just Made Public, Shows Formidable Undertaking. MILAN, Italy (#) —“White coal” flowing down from the Alps and Apen- 1 ent program of hydro-electrification is completed. ‘The full plan for the next five years, Jjust published, reveals the government's determination to continue the electrifi- cation of these projects: ‘The two main lines from Milan to Regglo Calabria, in the toe of Italy, one passing through Bologna-Florence, the other through Genoa-Pisa. The line across the north from Turin to Triesi. ‘The roads from the port of Genoa to the Alpine passes of Simplon and St. Gothard, thus giving Switzerland, Aus- tria and Southern Germany fast train communication to connect with the new fest liners, Rex and Conte di Savola. nines will drive 41 per cent of the Several smaller projects bring the Italian rallroads when Mussolini’s pres- Right Reserved to Limit Quantities Phone Dlstrict 5215 “ALL OVER TOWN” —the better to : serve you! total mileage to be electrified to 2,725, FRE LUCKY STRI OLD GOLD . *% A—S of which 1,646 miles are double-tracked. Added to the 1,250 miles already elec- trified, this will bring the total to 3,975, g{‘.‘u per cent of all the trackage. in y. This_kingdom calculates she saves 700,000 tons of coal yearly by using hydro-electric power. Since all the coal she uses must be imported, this assists her foreign trade balance. Trucks lnkm. STOLKHOLM (#). — An estimated 1,000 trucks in Sweden have tanks for | producing charcoal gas as motive power. ‘The government reduces taxes on and helps finance such trucks because use of charcoal is a direct aid to Sweden's timber industry. Startling OFFER/ E Cigarettes One Regular Pkg. of 20. . .Your Choice of KE . ..CHESTERFIELD... .. CAMEL . . . PIEDMONT ... SWEET CAPORAL ... REVELATION ... TWENTY GRAND ... WINGS, .. Wi Given With Each Purch 50c GILLETTE BLUE BLADES Package of F INNERS CROWN of 39 ive Blades . . . A “NEW DEAL” in smoking enjoyment and shaving comfort at a very special price that cannot be ignored. RICE! lnteresting Story of Sauinds Check Your Daily Needs! Painful Corns! E-~Z Xorn Remover After other methods have failed end stubborn corn and callous keeps coming back Just spread E-Z Korn Remover on the annoving corn or callous with handy little glass rod. No burn, no’ bandage, plaster or bother, pain or fuss . . . out it comes. ony J Sc ” Meguiar 15¢ Pks. Lux Flakes 9, 2 for 17¢ af fine lauadoring. Pre- e el iethen. 49« Ballantine's Malt is hop-flavored d in_vacuum full and Federal t Cans. . tins, assuring strength, purity. orand is dark . he Jersey brand ‘is lignt Graham’s Milk of Magnesia 50¢ The standard #f pur- ity. Acid conditions of the mouth and stomach aquickly respond to the use of Grahams Milk of Magnesia. Sweetens the stomach and acts as & mild laxative, Regain Your Lost Energy! NUTRAVEN TONIC $1380r$2.757 Recommended petizer for adults and stomachic tonic. Agreeable to the taste . . . prompt and reliable . iree from olly substances “and fishy taste. Contains malt ex- tract. wiid ccherry. | hypo- phosphites of iron. m and other tested ingredients. WILDROOT Hair Tonic an as a 38¢ Size. .. 29- 37 63 s 60c Size. . $1.10 Size. .. ABSOLUTELY FREE! One 75c box Hopper's Super-Cling Face Po der with each 60c jar of Hopper's Youth Cleansing Cream. $1.35 value for 60c Fletcher's Castoria To quickly introduce the latest face powder sensation, Edna Wallace Hopper's Super-Cling with the emolient base, we give you for a few days only one 75¢ Youth Cleansing Cream, the Save On Daily Needs! $1 Bayer Aspirin, 100’s. . . . 65c Barbasol Shaving Cream. 35¢ Italian Balm Lotion. . . . 25¢ Carter’s Liver Pills. . . . .. $1.25 Creomulsion, for coughs. 60c Danderine Hair Tonic. . . . 30c Edwards Olive Tablets. 50c Gloco Hair Dressing. . . 30c Groves L. B. Q. Tablets. 50c Iodent Tooth Paste. 50c Java Face Powder. . $1 Listerine Antiseptic. 85¢ Kruschen Salts . . . $1 Marmola Tablets. . . 65¢ Mistol Spray. .. ... 60c Musco Rubbing Oil. 50c Pebeco Tooth Paste. BOST The Smoker's Friend} Protects Teefh by removir tobacco stain sately -59¢ -33¢ TOOTH PAST I "EROICE Toolt Brich WITH THE PURCHASE OF A 50¢ TUBE OF T One of these popular Peopies Choice Tooth Brushes will be given FREE with each purchase of a regular 50c tube of Bost Tooth Paste...a $1 value for only 3%c! Ends Saturday night. box FREE with each purchase of a 60c jar of Hopper's “low melting point” cream that liquefles mstantly and goes deep into the pores, removing all dirt. Pocket Watches 98c An attractively designed time- piece with a re- liable move- ment. Aluminum French Fryers 49c¢ Comes complete with wire drain. Playing Cards 49c¢ Double-Deck Fountain PENS Alarm Clocks 79¢ Will awaken U, 00 time ese alarm ve dg