Evening Star Newspaper, March 12, 1933, Page 4

ROOSEVELT LAUDED FOR BANK REFORM Won Victory in Week Marking 100th Anniversary of Jack- son’s Triumph. BY FREDERIC WILLIAM WILE. | One hundred years ago, to the week— | in March, 1333—Andrew Jackson, at/ the outset of his second term in the White House, was in the midst of his ferocious and _eventually _triumphant | campaign to abolish the Bank of the United States. Today—March, 1933— another Democratic President, Frank- lin D. Roosevelt, is tilting at the bank- ing situation, but not from the same motives that inspired “Old Hickory,” nor against the stubborn and bitterly par-! tisan opposition which President Jack- son had to combat. Today's Democratic Chief Executive is battling for banking | reform in the name and with the un-| limited authority of the entire coumry.i The peace-time annals of the Union are searched in vain not only for a parallel to the drastic financial dicumr-l ship vested in PFranklin D. Roosevelt, but to the whole-hearted unanimity with which it was granted and the popu- lar enthusiasm that accompanies its enactment. Partisanship has vanished as completely at Washington as it dis- appeared during the World War. Act- ing through their chosen representatives in_Congress, the American people are rallied around the commander in chief who assumed command only a week ago, ready and eager for his leadership. | Wins Publi¢ Support. It is President Roosevelt'’s bold and prompt initiative in teking leadership that has most stirred the imagination of the Nation, judged by the communi- cations deluging the White House and members of Congress from those unfail- ing barometers of American public opin- ion—*“the folks back home.” The folks have kept the Washington mailbags crammed with letters and the telegraph lines hot with messages ever since “F. D. R.” called for “action, and action now” in his inaugural address en Marci 4. The letters and telegrams received by the President himself and by mem- bers of the House and Senate vary in terms, but agree in tone. The burden of the word they bring is one of grati- tude that the Government, at last, is doing something tangible, something concrete, and something unmistakably drastic, to tackle the depression. Mr. and Mrs. Average Man have let Uncle Sam know that they are less concerned with what is done or how it is done than with the certainty that something is now going to be done. When the House and Senate on March 9, at the end of seven and cne- half hours, counting from the time President Roosevelt’s message asking for hroad power was received unti! both branches of Congress had acted =f- firmatively, created him national bank- | ing dictator, they nioved in responce to an almost unprecedented tidal wave of public opinion. Less than four full days had elased since the President, as the first official act of his administra- tion on Sunday, March 5, proclaimed ~ banking holiday to last until March 9, inclusive. There was the audacity of resourceful leacdership in the proclema- tion. Mr. Roosevelt did not weit for congressional authority to close the country’s banks for rehabilitation pur- poses. Discovered War-Time Law. He personally, it is reliably stated, dis- covered that a war-tl.ae statute of Oc- tober, 1917, being still in force, gave him all the power needed to take a ctep whizh instantly won the approval not only of the banks, but of the millions of their depositors and customers, de- spite the total derangement of their business and daily life inevitably con- nected with so unheard-of a recourse. The people not only took it uncom- plainingly. They assented to it with positive enthusiasm and unalloyed good humor. If some magical form: of tele- vision had existed, whereby Franklin Roosevelt could have climbed to the top of the Washington Monument and envisioned the whole country, he would have seen 130,000,000 Americans throw- ing up their hats and dancing with joy, not because their economic troubles are over—for they decicedly are nct—but because the bugles have at last signalled the advance against the foe which has beseiged the United States since Oc- tober, 1929. Summoning the new Seventy-third Congress in special session, President Roosevelt strengthened his hold on pub- lic confidence, and it became a foregone conclusion that both houses would lose no time in voting him virtually any- Backs Roosevelt REED SMOOT. ROOSEVELT PROGRAM IS BACKED BY SMOOT Urges Far-Reaching Authority for President on Return to Salt Lake City. By the Associated Press. SALT LAKE CITY, March 11— Reed Smoot, for 30 years a Senator from Utzah, came home today, & private citizen, warm in his indorsement of President Roosevelt’s program involving dictatorial powers and stringent Gov- errment eccnomy “We are in a war against the eco- nomic conditions of the world,” he said in a ncwspaper interview. “The Presi- dent must have far-reaching authority.” Smoot reiterated previous statements that he will devote himself to his duties as a member of the 12 apostles of the Latter Day Saints’ Church and his personal affairs. “I have had numercus offers of $25,- 000-a-year positions, but I'm through with the East,” he asserted. PSR N FARM UNION BACKS ROOSEVELT’S STAND Exemption on Payment of Chattel Debis and Cut in Freight Rates Asked. By the Assoclated Press. OMAHA, Nebr., March 11.—Leaders of the Naticnal Farm Union, meeting in | tage executive session here today, adopted a resoluifon commending President Prank- lin D. Roosevelt for “his courageous stand in this national crisis” and placed themselves on record &s “most heartily agreeing with the position he has taken.” The resolutions indorsed ths Frazler bill providing firancial aid for farmers and asked for a moratorium exempting the payment of chattel debts until such time as “our financial house can be placed in order.” Freight rate revisions were urged in another resolution and passage of th: ‘Wheeler bill for remonetization of silver was advocated. John A. Simpson of Oklahoma City, president of the union, presided over the meeting. Delegates from Illinois, Wisconsin, Minnesota, South and North Dakota, Iowa, Nebraska, Kansas, Colo- rado, Missouri and Oklahoma attended. FARMERS’ SHORT COURSE PROGRAM ANNOUNCED Two-Day Scheols on Horticulture Will Be Held March 16 and 17 at Fairfax. Spectal Dispatch to The Star. FAIRFAX, Va., March 11.—The first horticulture short course for Fairfax County, the third of a series of two-day scheols conducted by State experts, ar- ranged by County Agent H. B. Derr, thing he asked for, either in the form of autocratic authority or legislation. By its swiftest major action on record, Congress did both. Under the unre- stricted power granted him, the Presi- dent extended in full force, until fur- ther notice, his bank holiday proclama- tion of March 5. Before doing so, he signed an emergency banking law, passed by Congress a few hours earlier, providing for the issue of temporary currency in the form of Federal Re- serve Bank notes to replace about $4,000,000,000 of frozen or hoarded money—the “sound, but adequate, cur- rency” for which he called in his in- augural address. Dictatorial Powers. The bill, in addition, invested the President with dictatorial powers in a - financial crisis and authorized pthe controller of the currency to appoint & “conservator” to take possession of any bank when necessary for the ben- efit of depositors and creditors—the fulfillment of another inaugural pledge to deal h:lgaroua‘lg' thw“i: evil-doing “money changers e temple of our civilization.” 2 The details of the torrent of presi- dential proclamations_ Treasury orders, bank regulations, gold restrictions and related acts of Congress are destined, for the most part, to remain so much Greek to the average man or woman. President Roosevelt at one of his in- formative press conferences during the past week laughingly confessed a good many of these measures were “Greek” to him. What everybody, of course, is interested in is when his bank will re- open and the ordinary wheels of busi- ness life will be set whirring again. But what perhaps interests the aver- age citizen even more than that—more than the early relief of his own indi- ‘vidual money requirements—is the as- surance he believes he and the rest of the country now have, that the bank- ing business of the United States henceforward is going to be on the square. He 1is .] ded that the stock-jobbing and bond-jobbing days of American banks and bankers are ended, and ended forever. He is convinced that the “weak sisters” among the ‘banks of the country are doomed—that many of them who were operating last week will never be found operat again. He sees wildcat banking by men who never should have been licensed to enter the banking business gone where the woodbine twineth not. He sees gold-hoarding outlawed as.a !elomnvflg punishable from now on. He ks the day has dawned when money deposited in banks is money safely intrusted to persons with a right of the people’s funds. Prankl] gm it, to the epoch- of the past week. (Copyright, 1933.) Florida Banks to Open. TALLAHASSEE, Fla., March 11 (®). —Gov. Dave Sholtz and Controller J. Lee today a all State banks in jext week and allowing to &mfion a maximum of 'S5 per cent their deposits in cash and 15 mer cent'in scrip. & plan for ! under this Plorida will be held 1n the Farmers’ Club rooms here, March 16 and 17. The speakers on orcharding problems will be Prof. A. H. Teske, horticulturist from V. P. Prof. N. A. Eaton, assist- ant entomologist, V. P. I; Prof. R. H. Hurt, entomologist, Piedmont Experi- mel;n:‘ ‘ghfl:g. y ie _speakers will include: . L. B. Dietrick, vegetable crop specialist, V. P. L; Dr. H. H. Zimmerly, director of the Virginia Truck o ment Station, Norfolk, Va.; Dr. Harry G. Walker, entomologist, from the Vir- ginia Truck Station; Dr. Harold T. Ccok, plant pathologist from the same station. The first number on the after- demonstration agent. County Agent H. B. Derr will outline the “Live at home and live well” cam- paign which State extension workers are pushing this year. An effort will bs made to have at least 300 families in Fairfax County enter this vegetable | 8rowing and canning campaign. _— GOLD BEING RETURNED One Citizen Brings $10,000 Into Richmond Bank. RICHMOND, Va., March 11 (#).— Gold and gold currency continued to pour into the coffers of Richmond banks today in the face of the new anti-hoarding law. One citizen brought $10,000 in gold ::‘30 s.o one bank and another brought The majority were bringing in gold in small amounts, Roosevelt’s Text Full Statement Outlining Program for Reopening U. S. Banks Given. (Continued From First Page.) could be worked out and before the ac- tual currency could be in the bank when the doors opened. The Constitution has laid uj me the duty of conveying the condition of the country to the Congress assembled at Wi I believe I have a like duty to convey to the themselves a clear ?lct\lle of the situation at Wash- ington itself whenever there'is of any confusion as to what the Gov- ermnment is 3 ot S a0, 0, St e as ‘Wi during the last two days since the pas- sage of this act it is my intention, over the national radio networks, at 10 o'clock Sunday evening, to explain clearly and in simple lai to all of you just what has been achieved and the sound reasons which underlie this declaration to you. The fact that banks will be opened plan does not mean that any one should draw the inference that the banks o] Monday are in any dif- ferent condition as to soundness from the banks licensed to open on Tuesday or Wednesday -or any subssquent daX, PROSPECTS BRIGHT THE SUNDAY STAR, WASHINGTON, .D. C, MARCH 12, 1933—PART 'ONE. INU.S., SAYS OCHS Publisher -in Full - Sympathy With Roosevelt’s Banking Program. By the Associated Press. WEST PALM BEACH, Fla, March 11.—America is recovering from a “wild debauch of frenzied finance, crazy speculation and insensate greed,” but “never has the country had brighter prospects ahead than at present,” Adolph S. Ochs, publisher of the, New York Times, sald here today on the eve of his 75th birthday anniversary. Mr. Ochs, 2lso the owner of the Chat- tanooga, Tenn., Times and for 30 years & member of the board of directers of the Associated Press, will spend the day in quiet observance with his wife and; Mrs, Arthur Hays Sulzberger, his daughter. “I am in full sympathy with Presi- dent Roosevelt’s program that only the Federal Reserve Banks issue currency and that based on liquid assets of !he‘ banks. mobilize the go'd of the country | and meintain the gold standard,” said the dean of American newspaper men todav. “There is no need of gold currency in | this country, and what we have, as we have plenty, should be held to preserve our credit throughout the world. Get Rich Quick Epidemic. “Never in its history was the United States so rich, so strong, so powerful | and with brighter prosoects ahead than | it is at present. We have -barely scraped the soil of our opvortunities. our {llimitable rescurces, our industries and inventive genius. “We are for the present recovering from a wild d*bauch of frenzied finance, crazy speculation and insensate greed. Everybcdy seems to have lost their renzes of the resoonsibility of wealth and a get-rich-quick epidemic swept th~ comtry. “1 think the situation is now wel' | understood and we are sobering up and rainfully getting our house in_order. The tragic experience we are having will 1t in educating the people that | cera Caution and conservatism is as neces- | sary in economics as in physical health, | Mr. Ochs said. “The Ten Commandments and the, Sermon on the Mount cannot be ig-| nored or forgotten.” the publisher de- | clared, “and should be our guide and philesophy of life. Other Depressions Recalled. “gSpontaniety and ideslism, so fright- fully dorment, will be awakened for| the peace and comfort of our children | and if so. it will be full compensation | for our tribulations.” | Declaring he had lived through other | periods of economic depression and then had seen the country *chastened | end better for the experience” Mr. Ochs said healthy minded and indus-| tfious men of todav would gain know!- | edge and experience that they couli “Evel is rupond]n, ni i Pralwmvon‘l 5 ey | President’s The_impression President Roose- ‘made ] Star and the North American News- paper Alliance. BOSTON. Frederic S. Snyder, president of the Boston Chamber of Commerce, said: “So far as I have learned the details, President Roosevelt's emergency bank bill appears to be sound, ‘E:mluble, feasible and adapted to present emergency.” LOUISVILLE. John T. Moore, manager of local branch of Federal Reserve Bunk; ld to $292,400, whi the returns in gold and gold certificates gg;gnogo;be last three days have reached NEW YORK. Elisha Walker, partner, Kuhn, Loeb & Co.—"T have nctvL:t had time to study in detall the provisions of the new law. The im) nt thing, how- ever, is to have the banks reopen as promptly as possible in all cases where they are sound and solvent. With an issue of new currency under control of the Federal Reserve Bank and under the rules promulgated by the Federal Reserve Board, the public may rest a: !uxer% ebh‘gc they will be properly saf board of the National City Bank—“The lan seems to me sound and James G. Blaine, president of the Marine Midland Trust Co—*“President Roosevelt's _em cy bank bill will command the undivided support of the entire country. It is conservative, sound and constructive.” J. Stewart Baker, chairman of the board of the Bank of the Manhattan Co—*I think it is a fine t%t the President and the new a - tration have taken a firm stand against all such schemes as Government - antee of deposits and have rmission for the issuance of miscel- anecus clearing house scrip. It is & great achievement to have devised the means within the normal note issuing machinery for meeting any demands for currency. The Government's plans, so far as I know them, are jeous and realistic and deserve the ful cgu— sible support. With leadership such as this, it should not take us long to sur- mount our present . Samuel H. Golding, chairman of the Sterling National Bank & Trust Co.—"A hurried consideration of the new bill indicates a purpose to promptly segre- forward-lool bank runs. The President has this in mind, and he is acting wif a courage, decision and speed which is refreshing and most reassuring.” Willlam H.,Gray, jr., president of the Central Hanover Bank & Trust — “The prompt action of the administra- tion squarely meets existing conditions. It is sound and constructive, It pro- vides a solid foundation for the re- covery of ess.” Paul Thompson, president, Corn Ex- change National Bank & Trust Co.— “We need a boss. I thoroughly approve of President Roosevelt’s plan. It time for our country to get behind our leader. When the country realizes there much to restore confl = Walter K. Hardt, pi nt, Integrity Trust Co—“I think President Roose~ velt’s idea of making additional assets of banks availal rency is the desirable feature of his message. Howard A. Loeb, chairman of board, Tradesmen’s National Bank & Trust Co. —"“The ideas contained in President Roosevelt's message are very good. Hav- ing selected him for leadership, we should give him all the power he de- sires to achieve the result for which ST. LOUIS. William H. Danforth, chairman of board, Ralston Purina Co., member of board, New York Life Insurance Co.— “Emergency legislation is imperative at the moment. With every confidence we have in our President at this time, prompt, decisive emergency legislation such as this will put us on the upgrade. ‘The bill will restore confidence and pre- vent destructive hoarding, and congl:’lau are fundamental to economic Tevival Frederick D. Gardner, industrialist and war‘time Governor of Missoun— “We are moving on the road to re- covery. ‘This bill should re-establish confidence in our banks and remove the dead weight of fear that has been and s business activity. banks, which I believe are essen- tially sound, will soon reopen under conditions that will leave no question mmzmmd‘o!curgeophuwmk solvency. Business t will pick up, and I believe will gradually improve from that point.” by North American News- Alliance. Inc.) RETAILERS HOPEFUL capit~lize to their “everlasting advan- “The world,” he sald, “is on the eve| of astonishing developments in science | and industry. The inventicns and de- velopments of the last 75 years will be far surnassed within the next score or | more of years. | “During my lifetime, there has been introduced and placed in practical op- eration—to mention onlv some of the most important—the Atlantic cable, elestric nower and light. the telephone, automobiles, racio. wireless, airplanes, tclevision, manufacture of steel. water. | gas, paper made of wood, the web nrinting press. the linotype, stereotyp- ing. reinforced concrete, concrete roads. “A)l these and other important de- velonments in science, surgerv and medicine were unknown when I was born. All will be further developed in the next few years. Maldistribution Blamed. our production, but rather in under consumption and maldistribution. We shall cast aside and scrap much that is now in use to be replaced by new and more perfect implements for the convenience and comfcrt of mankind and for his remunerative and enlarged employment. So, you see, I am an op- timist on my 75th birthday.” Mr. Ochs expressed sadness “of the calamity that has struck Southern Cali- fornia.” Mr. Ochs was born at Cincinnati, Ohilo, March 12, 1858. < BOSTON BANKS GET FLOOD OF CHECKS Thousands Dated During and Prior to Holiday Proclamations Are Received. By the Associated Press. BOSTON, March 11.—Banks of Bos- ton, still functioning under the holiday banking restrictions, today received thousands of checks dated during and prior to the proclamations relative to the suspension of business by all banks. Acting under a notice issued by the Boston Clearing House Association, the banks undertook to clear up much of the work entailed in handling the checks in an effort to have as much as possible of it accomplished before the opening of some banks for regular busi- ness next week. ‘The Federal Reserve Bank of Boston recefved hundreds of applications from banks in the first Federal Reserve dis- trict (New England) seeking licenses to open and resume business. Also many non-member banks have expressed a desire to join the reserve system. It was_expected that non-member banks would be permitted to draw money through member banks by posting proper security. Boston banks continued the release of pay rolls and necessities-of-life funds in small amounts. The Federal Reserve Bank announced yesterday’s receipts as $1,272,659 in gold coins and $849,060 in gold certificates. DICTATORIAL CONTROL IS URGED IN GEORGIA Governor Asked to Sign Special Legislation Under Plan to Reopen Banks. By the Associated Press. ATLANTA, March 11.—A mass meet- ing of Georgia bankers and business men here tcday adopted a plan for ma State bal on a limited wal basis at the end of the naticnal holiday Monday and asked to sign iegislation for 1. The plan for recpening was advanced by R. E. Gormley, State superintendent of banks. It pi that withdrawal of deposits be ted to 5 for a period of 30 days. fter that “I do not belleve our trouble lies in{ i ON TRADE OUTLOOK iDepartment Store Heads Cite Good Business Despite Bank Holiday. | Encouraged by the trend of business during the last week in the face of the | banking holiday, ‘Washington retailers lnvrllted with optimism the resumption of trade under more normal circum- stances this week. The unfavorable trading conditions of the last week in some instances pre- a in the volume o! es, & number of merchants admitted. But business held up remarkably well, they said, taking into consideration the . In one or two cases de- partment stores reported an actual in- crease in daily business, comparing cer- tain days of the week with correspond- ing pe: of & year ago. ua%l.nl &?mment fl:wru M yesterday y paid y cesh. Business houses whmx had laid plans for the usual Spring sales of merchandise announced no deviation from these plans. Result Is Surprising. W. W. Everett, vice president and general manager of Woodward & Loth- rop, sald: “We were gratified and flwed over the way business continued spite of adverse conditions. had been told a year ago business would have gone on as well as it has with all the banks in the city closed, we would have thought the prediction to0 optimistic. We expect week will bring the re-opening of the banks and a resumption of normal business.” A. C. Case, vice president and gen- eral manager of the Palais Royal, said: “Business has been surprisingly good. I am sure it will increase during the coming week.” depprmant ore. B B, Purpunder lepartment store, B. B. s president, said, has shown an increase during the last week over the corre- sponding week of 1932. Additional de- since last year. Gold;mhh. general has, in fact, been quite encouraging. considerable improvement Gol;'&‘"' vl.lx:n.n, merenl manager of lenberg’s dej store, asserted: e e s far above our expectations. The out- Lo & chaer oy one.—The opentag , is & ‘one. gg new accounts has exceeded in num- viously.” Opened. Frank R. Jellefl, president of the firm of Prank R. Jelleff, Inc., declared busi- ness at his store has been good this week. “Many new accounts have been opened,” Mr. Jellefl said, “and we are hopeful for favorable conditions in the near future.” Phillip King, sr., member of the firm of King's Palace, said: “Business pro- ek ‘e reopening of the ‘week. should see marked additional activities in the sto\‘e:w 2 N The Hecht Co. reported a 30 per cen increase in business Priday, the opening day of the anniversary sale, as com- pared with the opening day of a similar sale & year ago. “Up till Thursday we held our own with year,” Charles B. Dulcan, sr., vice president and - eral merchandise manager, d BANK HOLIDAY EXTENDED Decree to March 18. the percentage of withdrawals would not be uniform, but would be governed individually by the conditions of re- spective banks as determined by the superintendent. Colorado May Use Scrip. DENVER, March 11 (/).—Unless for- M(Idenue to do m‘ b’c:l‘:n zedml Tr% partment, lo banks :;ym Monday morning on a scrip basis, Gov. Edwin "(): Johnson :ld today’nz a telegram to Secretary 7 telegram sald: “Public ne ities de- mand that permission be granted for It we | cert; partments have been added to the MJ | Mississippi Superintendent Issues|R NEW YORK BANKS READY 10 OPEN More Than $200,000,000 Gold and Certificates Re- turned Throughout U. S. By the Associated Press. NEW YORK, March 11.—The big New York banks, with billlons of as- for a resumption of virtually normal athington. prrgramof starting the program o the institutions 1n the 12 Federal Reserve bank cities first. Wall Street expected to resume its other financial operations gradually, however. No action was taken by the Stock Exchange toward resuming trad- ing, and it was reliably reported there was virtually no likelihood of starting Monday, although some quarters thought trading might commence later in the week. Other principal security and commodity exchanges were ex- pected to take the lead of the Stock Exchange. Gold Flow Continues. Gold continued to pour intc the heavily guarded Federal Reserve Bank 28 nervous hoarders flocked in to give up their metal in return for paper cur- rency. Coin received today was the largest yet, $16,000,000. Anotukllg &Tm w::g received in gold , aggregate res- zfil‘a:ledth&:e‘;k $108,000,000. It was e total of hoards thus poured back into the banks all over the country this week was well over $200,- 000,000, and on the accepted theory that & dollar of gold makes a base for $10 of {ential credis cxpansion ot mere then e more than $2,000,000,000. The Federal Reserve Bank received its first shipment of the new Federal Reserve bank notes issued, as part of the currency expansion plan embraced in the emergency banking act. The amount of the shipment was not dis- closed, but it was expected it would be idly ber banks as issue currency, make rediscounts and perform other normal service for its 2 members today, and received gold from lines of hoarders until nearly 6 pm, although the windows usually close at noon on Saturday. Applications Unanimous. All of the New York banks - derstood to have made ua‘n“menm:o ber the total for any like period pre-| .. insactions, o Shetoticn ot e ote supesta of the State = ml“hmflmbfld:l’“ntllk:::l to State and savings banks in the city to resume Montlay would be issued as soon as the Federal Reserve had au- thorized its members to reopen. Meet- T '-heshlew an e offices of make final preparations to unprecedented stoppage of busi- this great financial center. Yetwdaybsl.vg,og:c kng ‘was brougl for preceding = ST. LOUIS RECEIPTS LARGE. ST. LOUIS, March 11 (#).—Gold in back. into umdxmm““ hm Federal Reserve .O.h Receipts totaled $1,190,470, of which ”"’m"&.w St. Louisans. past three days, the Reserve Bank here and its 15 ' addressed is a strong central authority, it will do | ong t ble for issuance of -:ur-I sets, had their machinery set tonight! & Erojecfita; loi money into the ‘Yesterda: . | activity at the Treasury an ‘House. LICENSED DISTRICT BANKS 10 REOPEN National Holiday to End This Week Under Reosevelt Plan. (Continued From Pirst Page.) Treasury sald no licenses would be i:. zued to any bank located outside thost 12 cities to open befcre Tuesday. His czll for the co-operation of State authorities applied naturally to thcse institutions which are not members of the Federal Reserve cystem. “The Secretary of the Treasury,” his statement said, “will not permit any member bank, State cr nationa’, to open in any such Federal Reserve city unless opened for normal ess cn &n un- restricted basis, except so far as af- fected by legal contracts between the banks and depositors with respect to withdrawals or notice of withdrawals.” ‘Woodin’s Statement, | Secre ‘Woodin, in his statement night to the superintend- the is ared upon ap- i plication through RX:-E Reserve to issue to" institutions which are members of the Federal Reserve | Bystem, whether national or State, lo- icatefl in each of the 12 Federal Reserve bank cities licenses to open Monday morning. The Secretary of the Treasury will not issue licenses to any member bank, State or national, located outside those 12 cities to open before Tuesday. “State authorities having super- at such cities which are not members of the Federal Reserve System are re- quested to co-operate by permitting !such banking institutions to open for ibuaineu on Monday morning in all cases where they find them qualified to do 50 on the basis indicated in previous telegram of March 10. “The Secretary of the Treasury will not permit any member bank, State or National, to open in any such Federal Reserve city unless opened for normal business on an_unrestricted basis, ex- cept so far as affected by legal contracts between the banks and depositors with | respect to withdrawals or notice of withdrawals. Ready to Issue Licenses. “In accordance with the announce- ment of the President, the Secretary of the Treasury is prepared upon applica- tion through the Federal Reserve banks to issue licenses to reopen on Tuesday morning to Federal Reserve member banks located in any city having an active and recognized clearing house aseociation, and upon like application licenses to member banks located else- where for reopening on Wednesday morning. “As previously stated, however, the Secretary of the Tredsury will not per- mit the r of member banks, | State or National, on any of these days except on an unrestricted basis as indi- | cated above. “It must be understood that the re- strictions in the President’s proclama- tion against the payment of gold, gold certificates or bullion or payment of currency for hearding purposes and for- | elgn exchange will apply to {ell banking institutions, member and non-member, State or National, until further notice.” Confers With Glass. Before issuing his statement last night, President Roosevelt conferred with Senator Glass of Virginia. He !had given much of his busy day to conferences also with Secretary Woodin and finance experts in working out the program. Yésterday brought a violent demand in the Senate and pleas at the White House to permit State institutions out- side the Federal Reserve System to re- celve temporary benefits allowed through the system under the emer- Ixzncy banking act. Leaving the White House, Senator Tydings (Democrat) of land, said: “I found the President sympathetic to glving every deserving State bank the { considerations to be given the institu- tions that are members of the Federal Reserve System.” Senator Robinson of Arkansas, the ad- ministration leader, standing firmly zgainst the persistent demands for Fed- | eral guarantee of deposits. “As a result of such action,” he said, “the Federal Government would be | threatened immediately with bank- ruptcy and ruin. It means the imme- diate ruin of Government credits. You would never sell another Government bond at par.” Senator Long, Democrat, Louisiana, and Robinson, Republican, Indiana, led the attack for amendment of the emer- gency banking act to extend greater protection to State banks outside the Federal Reserve System. Improvement Seen. after a talk with President Roosevelt, the Louislana Senator said j about the banking situation: “It is get- ting better hourly.” He added, how- ever, that with his amendment the emergency banking law “can be a sal- vation, but otherwise it can be a wreckage.” ‘The outlined views of President Roosevelt called for simultaneous re- opening of the sound State institutions outside the Federal Reserve System with the sound in the system. Hitherto the Treasury has taken the position that the State banks would be able to recelve ample funds and tection through the orderly process business with correspondent members of the Reserve system. Meanwhile, the 12 banks opened yesterda! Federal Reserve y to assure the acilitate the limited trans. actions carried on over the week end and the opening of sound institutions on a full basis early this week. To make sure of the Government's regular quarterly refinancing m on March 15, Secretary We yes- terday authorized all banking institu- tions to buy and pay for any United States Government obligations which may be offered for sale. During the round of debate in the Senate, Senator Glass introduced his banking reform bill which the House did not act on last session, to be used vision over benking institutions located ! BANK APPLICATIONS A vitriolic Senate debate also showed | pro- ; tem,’ of member | and Detroit Post Office Guarded by Troops Iln Bank Holiday V. ast Gain in Postal Sav- ings Business Brings Fixed Bayonets. By the Associated Press. DETROIT, March 11.—A vast in- crease in business done by the Postal Savings Bank, necessitating the carry- iing of unusually large amounts of | oney, gave Detroit something new to i talk about this week—soldiers guarding | the post office. Under an arrangement described by Acting | “voluntary,” 24 soldiers from | Wayne, the Detroit Army post, were detailed to duty at the main post office and various branches as an extra pre- &-ufim lhu; nlqulrdhoeflgr:ncy carried luring banking y. Col. Russell C. Langdon, ing officer at Fort Wayne, said that the soldiers “are being used to protect the main post office, all branches and any transfer of funds where their pres- ence is deemed necessary.” yone! when they first appeared, but they soon came to be accepted as a matter of course. Officials would not comment on when the military guard would be withdrawn, but that is expected as soon &s resumption of normal banking conditions brings' the postal. savings business down to ordinary levels. Postal officials said withdrawals by postal savings depositors in most in- stances were only for current expenses. No 'l;estrlcuom were placed on pay- ments. MARYLAND INVITES State Commissioner Requires i Institutions to Meet Federal Rules. | Special Dispatch to The Star. plications from State banking institu- tions to reopen on a 100 per cent basis i were invited late today by John J. Ghingher, State bank commiesioner. The invitation was extended only to ithose State banks and trust companies | that are not members of the Federal | Reserve System. Bankers here pre- | dicted that all, or nearly all, would apply and leave to Mr. Ghingher the responsibility of determining the ones whose positions were sound encugh to reopen in full. Mr. Ghingher qualified his invitaticn to the effect that none would be per- | mitted to reopen unless it could meet the same ements which Federal r banks must meet to cbtain permission to 'n on a nor- mal basis. What those requirements are, he said, he did not know as yet, no { instructions having been forwarded to him from Washington. National banks and State banking ipstitutions that are members of the | Pederal Reserve System must apply to | the Federal Reserve Bank of Richmond for permission to reopen. Heads of such institutions here said that all have applied or will apply and leave it to the Federal authorities to determine | whether they are qualified to reopen | on a 100 per cent basis. They also pre- j dicted that, because of the physical | dificulties connected with the rapid | distribution of the new Federal cur- | rency. only Federal Reserve member banks, if any, will be open in full Monday. {TYDINGS SEES AID FOR STATE BANKS ' Senator Expresses View After Con- ! ference With President—Amend- ! ment Abandoned. After a conference with President Roosevelt today, Senator Tydings, Dem- ocrat, Maryland, said the administra- tion, under the broad powers of the emergency banking legislation, will be able to extend State banks relief equivalent to that given national banks. As a result of his talk with the Presi- | dent, whom he represented as being in full sympathy with the needs of State | banks not members of the Federal Re- serve System, Senator Ty decided {to abandon his plans for offering an amendment to the banking act widen- ing its scope to take in State banks. He confidence means would the new currency to banks in this class as well as national and member banks. A way also can be worked out, he said, to prevent the provision of the | Maryland constitution makihg subscrib- ers to bank stock subject to double liability being a barrier to subscrption to State bank stocks by the Reconstruc- tion Finance Corporation. “The President is sympathetic to giv- all deserving State banks ev con- s ition that is to be extended to members of the Federal Reserve Sys- " Tydings said. stitutions to buy United States securi- ties. Chicago wdl“ :::e Yo;fmclty yes! y Pre ons under which firms could meet pay rolls and otherwise gave latitude to trans- actions regarded as necessary. Chicago banks gave employers access to 25 per cent of their pay roll ac- counts, while some in New York made no percentage restrictions. continued to pour into the Federal Re- serve banks. In addition, there were ::z:mana of petitions for Reserve mem- as the basis for the permanent bank- |in reorganization m to be pro- ?{):ed soon by President Roosevelt. Guarantee Fund Proposed. banks State authorities. y was another of intense the White ac- Bocbreua ‘Woodin, usually d A-{nhnt m on the on hile, ctie restrictions ne Dbanks Postmaster Peter Wiggle as! Fort 4 perument whether uj BALTIMORE, Md., March 11.—AP-' expressed | be worked out to permit distribution of , Financiers Laud Bapk_ Bill Drastic Provisions for,Sirbng "Central Power and Segregation of Insolvent Intsitutions Regarded '+ as Forward Steps. VIRGINA TOBASTEN OPENING OF BANKS Applications for Licensés Made—Further Word From Washington Awaited. 1By the Associated Press. RICHMOND, March 11.—Vir- |ginia State banking autborities tonight l't:g:'ed l:%w%kbu' to a limited ex- 3 ection of sound banks, S From the division of banking went formal notification to State banks, non- | members of the Federal Reserve System, that the division was ready to accept | applications for license to reopen under the terms of the Federal emergency act. This was as far as the movement went for the moment, however, pending further information from Washington. The corboration commission, under which the banking division acts, had not ascertained from the Treasury De- n its certification of a bank as sound the license would go directly to the bank from the Treasury Department, or whether the department |would euthorize the commission to license the bank for reopening. Banks Notified. ‘The notification was wired to all of the 233 State non-member banks in Virginia after an executive conference of bankers called at the offices of the corporation commission today. Applications in various forms came in so quickly that early tonight Banking Commissioner M. E. Bristow had not had &n opportunity to check the: number. The applications were being accepted from benks who want to opsn on & re- stricted withdrawal basis as well as those who want to open fully under the | provistons of the new act passed Thurs- 1day. | Most of the bank representatives at the meeting today manjfest an eager- ness to reopen, and many of them to | reopen fully. Acssistants to the banking' commis- sioner said ordinarily it takes about six ymonths to conduct examinations of all the State non-member banks in Vir- inia. e Members of the commis-ion tonight said they thought it unlikely that many, if eny, would open Menday. They said it is possible that it will become neces- sary_for Gov. Pollard to issue another proc:amation prolonging the holiday in Virginia. This, however, would be dependent jupon additional information from | Washingion, and how much could be accomplished over the week end, they said. Governor Calls Conference. Gov. Pollard asked that today's con- ference be called. Tonight, however, he was ill at the executive mansion, and attendants said he could not be | interviewed unless the necessity was (dke. Previously he hed said that he wanted to learn the viewpoint and atti- tude of bankers in all sections cf the State, as well as those in Richmond. The meeting was behind closed doors, and members of the commission, repre- sentative bankers, and attaches of the division of banking admitted at its con- clusion that little progress was in | the absence of information they desired Ifl'm.'ll the Treasury Department. MAJ. CURRAN LAUDS LOYALTY OF HOUSE |Says Swift and Patriotic Action in Suppert of President De- serves Gratitude. Maj. Henry H. Curran, director of the National Economy League, last night praised the action of the House in supporting President Roosevelt’s pro- gram of economy. “The swift and patriotic action of the House in supporting the President in the present financial crisis should awake everlasting gratitude of every American citizen,” he declared. “We are half way up the hill” he contirued. “Now comes the BSenate. The members of the National Economy League are urging their Senators to stand by the President. I am sure that the Senate will se> the House through in support of the President. “Whatever the lobby of the American Legion may be doing in its efforts to defeat the President of-.the United States, there is no Senator who is going to be afraid to stand up and vote ac- cording to his own patriotic judgment. “The credit of the Natlon is at stake. The very safety of the Nation is at stake. It is for the Senate to say.” ORGANIZE CLUB TO STUDY INTERNATIONAL AFFAIRS Students at Fredericksburg 8 Teachers' College Backed by Carnegie Endowment. Special Dispatch to The Star. FREDERICKSBURG, Va., March 11.—Under the auspices of the Carnegie Endowment for International Peace, plans have just been completed at.the State Teachers' College at Fredericks- burg, Va. for the organization of an International Relations Club. Twenty- two students at the Fredericksburg col- lege have met the membership require- ments set up by the Endowment and have had their names approved by the central organization in New York Oity. The Carnegie Endowment for Inter- national Peace has as part of its major program the establishment of clubs in colleges and universities for the study of international relations. these clubs, the Endowment hopes to educate and enlighten public opinion by munf the attention of students upon sonditions which prevail throughout the world, upon underlying principles of international conduct and upon prob- lems of internal law and or- ganization. Students of Predericksburg State ‘Teachers’ College who have been ap- : oved as charter members are: Alma , president; tary; Lula Lee Llewellyn, treasurer; Altstetter, Alice Belote, Ada Chapman, Coo) ellie Cregger, Alice per, N 3 Daniel, Lorna Drowne, Martha i George J. (|, 0. 0. F. HONORS FOUR, | 8 E 38 ] 2 7 h i i &1 ZR5 iR B : ?5 i 52 EE gg ] i 1 i i MEMBERS 50 YEARS e|Lodge at Lisbon Holds Public Ceremony—Books of Order Given to Quartet. Special Dispatch to The Star. MOUNT AIRY, Md., March 11.—Four men who have been members of Rain-