Evening Star Newspaper, March 24, 1933, Page 3

STATEBANKINGBILL SENT T0 PRESIDENT Non-Member Banks Given Right to Borrow From Federal Reserve. By the Associated Press. President Roosevelt's signature was all that was needed today to make law & bill giving State non-member banks the right to borrow from Fedecral Reserve Banks during the banking emergency. Congressional action was completed | yesterday, and Vice President Garner| and Speaker Rainey were authorized to sign the measure while Congress is in | py recess so that Mr. Roosevelt may act before Monday. The non-members must comply wlth[ the same conditions as member banks. | They must post adequate security, be certified by State banking officials as| sound, maintain reserves the same as| member banks and undergo a thor-/ ough examination by the Recerve banks. | Glass Sounds Warning. { Securities given for loans would be eligible for new currency issues by the Reserve banks. | The bill was passed by the Senate| yesterday after'a day of debate, marked by a warning from Scnator Glass, Dem- ocrat, of Virginia that to open the Reserve system funds to non-members without the same restrictions required of member banks would hasten the “wreckage” of unsound institutions. Less than half an hour after passage by the Senate the House, which had| been in recess waiting for the Senate to act, concurred in_amendments. Senator Adams, Democrat, Colorado, during the Senate debate tried to strike out the “thordugh examination” re- quirement, but was unsuccessful. This condition, he said, imposed a “limitation so heavy that rediscounts to non-member banks will be practically dmpossible.” Glass, along with half a dozen other Democratic and Republican Senators, attacked the Adams proposal. Steagall Defends Bill. Class sald the “examination” re- | uirement was written into the bill by | resident Roosevelt himself. Under the | Adams propes:], he argued, “thousands of insecure banks might avail them- selves of the facilities of the Federal Reserve banking system, and havimg so done it might result in their wreckage sconer perhaps than otherwise they would be wrecked.” Although Adams and others claimed few banks would benefit under the bill because of the length of time required for examinations, Chairman Steagall of | the House Banking Committee told the House it would afford relief to thou- | sands of State banks “now under a handicap.” INUTE YSTE Y Can You, SOIV% I Dr. Fordney is professor of criminology at # famous university. His advice 1s often sought by the police of many cities when conironted with particularly baffling cases. ‘This problem has been taken from his case- book covering hundreds of criminal investi- gations. Try vour wits on it! It takes but ONE MINUTE to read! Every fact and every | clue ‘necessary to its solution are in the story itself—and there is only one answer. How good a detective are you? Officer Hellum's Oversight. BY H. A. RIPLEY. HE broken wires of the window screen where a bullet passed through caught and held the lace curtain when Ann Good- ward clutched it as she fell to the floor in a faint. When she regained consciousness Officer Hellum was stand- ing beside her. . “I heard my husband put the car up, professor, He seemed to be unusually long at it ex- plained Mrs. Good- ward. ,“Suddenly g there was a shout (m —then the report i of a gun! Iranto = o the next room for A my husband’s re- \1% volver, rushed back here to the win- dow and saw him lying on the grass. ‘That's all I re- member—1I fainted!" “She’s got her story all fixed,” re- marked the officer in an undertone to Inspector Kelley. “Why didn't she rush out the door instead of coming back here if she was going to her hus- band's assistance?” “Good point, Hellum. Well ask her! . “I—I—" stammered the excited woman in reply to Kelley's questions. Just then Fordney entered the room after meking an examination of the y. “Only one shot hit him and that passed clear , through,” he said. *“I found no foot prints or sign of a strug- gle. Apparently the man was taken unawares. Hellum walked over to the professor and hesitatingly offered his cpinion. “It's my belief, sir, that she shol her husband. There certainly wasn't any cne around when I ran up!” Fordney shook his head in disagree- ment. “I don’t think she did, son” ‘Turning to Kelley he remarked, “You might examine that gun, but I'm con- fident you'll find it hasn't recently been fired. I believe Mrs. Goodward is tell= ing the truth!” WHY? (Solution on Page A-16.) 'SPECIAL NOTICES. TRUCK FOR HIRE. LOCAL AND LONG-DIS- rates. 1816 Flor- ida ave. n.w. 28° 1 1s, WHEN 1 NEED AN ELECTRICIAN, slways call the Electric Shop on Wheel Inc. They are prompt and reliable, Wis. 48 SPECIAL RETURN: ATES ON FULL and part loads to all points within 1,000 miles; padded vans: guaranteed service: cal moving also. Phone Nat 1460. Ni DEL. ASSOC., INC.. 1317 N. Y. ave. LONG-DISTANCE MOVING BETWEEN ALL Eastern points. “Service since 1896." Da- vidson's Transfer & Storage Co.. 1117 H st. n.w. _Nat. 0060. HARRISBURG, PA. 19 YORK... .. To- T "MARCH 30 MARCH 24 MARCH 25 8] & STORAGE CO.. 1313 You St. N.W. AT s THE FOLLOWING CAR TO BE BOLD ‘Weschler's Public Auction on Saturda ch 25, for charges: Nal:_nudm license T-8930; left by Mor- CALL C, INC., 614 H st. n.w. RROW'S_SALE FURNITURE, ETC. —T OMOI at Weschler's Auction, 915 E st. n.w. in- cludes suites for every room in the home. secretary and office desks. antique sofa and clock, Oriental scatter rugs, Easy washing machine. pianos. etc. Gas Range Repairing Complete Service. Lowest_Prices THE DALY-HOPPER CO.. INC. 1802 11th St. N.W. ‘Nort] YOUR ROOF, TOO —cal tight—{ree from rul 2 DSens or ve W make ~ of repairs. B0 | created under the regulations of the | GBSl Banks Reopened Majority of the Federal Reserve Members Are Licensed. ~ By the Associated Press. Reports from the 12 Federal Reserve districts last night reflected the re- opening of a large majority of member banks under license of the Treasury as provided by presidential proclama- tion. The reports, by districts, for member banks only, showed: \ HOARDERS RETURN HALF BILLION-GOLD Board Reports Decnése of $661,000,000 in Money in Circulation, Federal Reserve | py tne Associated Press. Numnae eS| More than a half billion dollars in Beston . 367 296 | 8old has poured back into the Federal Fhiladelphia 583 | Reserve banks during the last two Cleveland 467 ' weeks. Richmond 276| As President Roosevelt’s proclama- Atlanta . 267 | tion against hoarding and the emer- Chicago 433 | gency tanking law’s threat of prosecu- St. Louis 295 | tion for the crime became more widely Minneapol 460 | circulated, Federal Reserve banks re- Kansas City. 692 | ported their gove reserve had mounted llas .. 531| to $3,192,322,000, the highest point San Fran 435 373| since February 15, when the reserves New York (all but 150 of approxi- mately 800 cpen). DEPOSITORS RUSH NEW DETROT BANK 1$6,567,207 Taken in Within First Hour as Institution Begins Operation. By the Associated Press. DETROIT, March 24.—The First bank created under the new Federal regulations—the Nationzl Bank of De- troit—opened to receive commercial de- posits today, and within one hour $6,- 567,207.51 had been deposited. The largest deposit was $4,000,000 by the Chrysler Corporation. ‘With nearly 300 persons jamming the Icbby of the bank, occupying quarters of the First National Bank-Detroit, the opening w2s a gala event. Scores were in the depositing lines before the bank opered, and many expressed disap- pointment when they were informed that only commercial accounts of $200 or more would bz accepted today. The first deposit was for $1,000,000, by check presented for General Motors by M. L. Prentiss, treasurer of the corporation. The General Electric Co. deposited $500,000 by check, and a flurry was created when four stalwart guards shouldered their way through the crowd to deposit money bags con- taining $500,000 in cash for the Kroger Grocery Cc. Called Historic Event. Addressing the bank staff prior to| the opening, Donaldson Brown, vice| president of General Motors, said: “You are taking part in o historic event, the opening of the first bank President of the United States.” Smiles, handshaking, greetings to old | cusgomers, 2attended the opening, as | junlor officers and employes of the two | old banks—the First National and the Guardian National Bank of Commerce —retained temporarily for duty, began accepting deposits. The new National Bank was char- | acterized by Alfred P. Sloan, president | of General Motors, as “the most liquid | bank in the United States.” The bank’s first published statement bore out his assertion of its liquidity, for it showed assets of $25,000,000, of which $24,325,000 is cash and $675,000 is in Federal Reserve bank stock, and no deposits. Will Buy Assets. For the time, the bank is only ac- cepting deposits, but negotiations are in progress for purchasing the more liquid assets of the inoperative First National Bank-Detroit and Guardian National Bank of Commerce, which it is designed to supplant. Avowed plans are to re- | lease a part of the approximately $500,- 000,000 deposits in those banks, prob- ably 40 per cent, next week. Mr. Sloan's characterization of the boenk as 2 “Detroit institution” appar- ently was intended to answer criticism of the one-bank plan. That contro- versy flared anew last night with Po- lice Commissioner Jemes K. Watkins repeating his charge that the city was being “sold out” to Eastern capital and Rev. Father Charles E. Coughlin de- fending the plan as the soundest solu- tion of the city’s “financial paralysis.” Father Coughlin, who said he spoke with _authorization from Washington, said Detroit was being given a “United States bank” that “cannot fail.” Hopes to Withdraw. In a statement last night, Mr. Sloan sald he was “hopeful that as soon as the situation was stabilized it would be possible for General Motors to with- draw, transferring its investment to others to carry on this particular re- sponsibility and duty to the commu- nity.” Yesterday afternoon, the General Motors president confered with Henry and Edsel Ford at Dearborn. No an- nouncement was made, but it was un- derstood the Fords were invited to par- ticipate in the capitalization. James McEvoy, chief of the G. M. C. legal staff, will serve as acting presi- dent of the new bank, which opens in the quarters of the First National Bank, at Woodward avenue and Cadillac square. ML A e Brighton, England, is lowering its taxes by renting grounds and rights for carnival attractions, refreshment stands and similar enterprises, its revenue from sthls source last year totaling $56, were $3,200,158,000. The amount was an increase of $181,545,000 in one week and came on top of an increase of $327,000,000 the preceding week. While the gold piled up in the vaults of the banks and the Treasury, the Federal Reserve Board in its weekly statements reported that money in circulation had decreased $661,000,000 to a total of $6,608,000,000 coming on top of a decreass of $269,000,000 the week before. $885,000,000 Returned. In the two weeks, the report showed that depositors had returned nearly a billicn dollars, or $885,000,000, to the banke of the country from which it had withdrawn during the panic of late February and early March. While the gold and currency both were moving to the Government's vault, a report showed Federal Reserve notes in circulation had decreased $186,000,000 and that the new Federal Reserve bank. notes put out as emer- gency currency were being used in only four Federal Reserve districts. In ali, | only $9,269.000 of the new currency was in circulation with $5,000-in the Boston_district, $8,614,000 in the New York district, $619,000 in the Cleve- land district and $31,000 in the St. Louis district. As confidence in banks of the Nation increased, the total deposits jumped to $2,154,849,000, an increase of $31,000,- 110,000 in the week and an increase of $203,000,000 in two weeks. Credit Volume Declines. ‘The report of the Federal Reserve Board showed the daily average volume from Federal Reserve Bank credits de- creased $528,000,000 as compared with the preceding week to $3,108,000,000, | while the total reserve bank credits on March 22 amounted to $2,887,000,000, a decrease of $638,000,000 for the week. The report showed that against the total of $3,916,342,000 of Federal Re- serve notes in actual circulation, the Treasury and Federal Reserve agents held $2,563,443,000 in gold, while the total reserve of the banks amounted to $3,371,217,000. During the week the total of dis- counted bills dropped from $1,232,316,- €00 to $670,869,000, bills bought in the open market from $403,316,000 to $352,309,000, certificates and bills from $1,008,937,000 to $983,386,000 and mu- nicipal warrants from $5,644,000 to FARM RELIEF PLAN CRITICIZED BY REED Former Missouri Senator Also Hits Threat to Punish Gold Hoarders. By the Associated Press. ST. LOUIS, March 24—James A. Reed, former United States Senator from Missouri yesterday criticized President Roosevelt's farm relief pro- posal and the threat to punish gold hoarders. Reed said it was the first time he “has had” to criticize the new Presi- dent, and expressed regret at the “necessity.” Clesing of all the banks may have been justified, Reed Said, but it was a violent and unprecedented action. “But when it came to threatening people with fine and imprisonment for keeping their own money in their own pockets,” he added, “it occurred to me the Constitution had about been stretched to the breaking point.” Reed predicted the farm relief plan would have a detrimental effect on all lines of business. “It is unsound in economics and vio- lative of the Constitution of the United States,” he said, and added that the proposed bill would “destroy the free grain market of the United States, which is absolutely essential to decent prices.” He said the present farm bill is “even worse” than the one creating the Farm Beard. gt LR MAN LOSES TROUSERS And Also Address as to Where Wife Lives. If Henry George of San Jose, Calif., can find his trousers, he can also find his wife. George has asked a local stage company to return to him a pair of trousers he left on a bus. In a pocket, he said, is a card with the address of his wife, who recently moved to Los Angeles. Wooden Legs Loaned. ‘Wooden legs furnished injured work- men under com tion laws become the property of the State of Oregon and will be reclaimed by the State at death, a law passed by the Oregon Legislature provides. WE'VE WISHED LUCK to every President from Chief Magistrate. Buchanan to our present Then we’ve returned to our business of supplying Washington with the best hard coal we could find. clean Famous Reading A how well we are doing TODAY. Marlow Coal Co. 811 ESt. NW. Try some of our Super- nthracite and you'll learn our job. Call NA. 0311 NAtional 0311 Dependable Coal Service Since 1858 FORMER PRESIDENT AT his son Allan. are demanding the attention of Private Citizen Hoover HOME IN CALIFORNIA. Mrs. Hoover. -A. P. Photo. HODVER DISCOUNTS FEARSOF ATTACK Asks Police to Disregard Armed Man’s Attempt to See Him. By the Associated Press. PALO ALTO, Calif., March 24.—For- mer President Herbert Hoover today asked police to disregard as far as pos- sible the visit to his home Wednesday of a man with a loaded revolver, but authorities continued surveillance of | the man, William Campogiani, 55, for- | mer wrestler. Campogiani, according to the guard who stopped him before he entered the | Hoover property, offered to check the gun with him during his proposed visit | with the former Executive, and ran away while the guard was telephoning for police. Officers Keep Weapon. The ex-President’s visitor no longer has the revolver. Authorities took it away from him yesterday after tracing him to his Burlingame home. He has lived in the community many years, | doing odd jobs and janitor work. ! The visit to the Hoover home, he ex- | plained, was to inqure whether the former Executive had received all the things Campogiani says he bought for him while he was in Washington, and | to ask for a job with the Secret | Service. | He carried the revolver, he declared, | bscause he had $50 with him and was | afraid of robbers. | Police said they were satisfied Cam- | pogiani, who is 55 years old and has a reputation as a neighborhood character, meant no harm. He was carrying the | weapon, they said he told them, as a | protection against robbers. “For years I've been giving people | money with which to purchase pres- | ents for Mr. Hoover when he was President,” they said Campogiani told | them. “I wanted to see him and ask | if he got the wine. fruits, vegetables | and other delicacies I ordered sent him. | And I was going to suggest he give me a job in the Secret Service. I'm big, strong_and a wrestler.” APPLY SUPEI To Tread-Worn TIRES Gusranteed_ Sate—conemieal .40-1.50-3 75, K225 ETH BROS. 1220 13th St. N.W. Metro. 0764 RUSH PRINTING EXPERT SERVICE HIGH GRADE —NOT HIGH PRICED BYRON S. ADAMS I Never Dusgaooms™ Latest published reports of the critical District of Co- lumbia ‘Health Department again award Thompson's Dairy this coveted honor. That actually makes three times the last four months! INDEPENDENT 4, WASHINGTON DAIRY SCHOOL HEAD STABBED Student Held in Attack on Nor- wood High Principal. NORWOOD, Mo., March 24 (#).— Wayne Shannon, Norwood High School principal, was stabbed three times with a knife yesterday in the school’s study hall and Lawrence Bruton, 16, a student, was placed under arrest. Bruton, held in jail last night at Hart- ville, was said by Wright County offi- cers to have complained to Shannon of the grade the student received on a history paper. Shannon was taken to a hospital where his wounds were reported critical. — e Optician Without Training. During bankruptcy proceedings in Cardiff, Wales, Sydney Morris, 23, ad~ mitted he had opened a chain of op- ticians’ shops in Wales and England and had 26 consulting rooms elsewhere, without having any knowledge of the business. 4th Printing Nation-wide demand such as the bookstores have not known for years sprang up before noon on Monday, the publication date of > LOOKING FORWARD the new book by FRANKLIN D. ROOSEVELT First Printing (before publication) 3000 Second Printing (before publication) 3000 ‘Third Printing (before publication) 10,000 Fourth Printing (day after publication)10,000 The Program for The ““New Deal"” $32.50 everywhere John Doy T I4 0 O BANK T0 CONSIDER NEW CHARTER PLAN Potomac Savings Stockhold- ers to Meet in Alexan- dria Late Today. Stockholders of the Potomac Savings Bank planned to approve plans for re- organizing the institution into the Po- tomac National Bank at a meeting early this afternoon in: Alexandria, at the offices of Caton & Caton, 111 South Fairfax street, legal headquar- ters for the bank, a Virginia corpora- Plans for the reorganization have been progre to essing rapidly, according George V. Offutt, president, who is conservator of the Potomac Savings Bank. At a meeting of some of the depositors held last night at Holy Trin- ity Parish Hall, in Georgetown, many business men of the community ad- dressed the meeting, ressing their ‘confidence in the 3 opinion that it was needed as a com- munity institution. presided. Club to Buy Stock. John Paul Jones, president of the Georgetown Progressive Business Cluly told the meeting of the action of his club earlier in the day, voting to in- vest all the club's surplus_funds in stock of the new Potomac Bank. The stock is selling widely, Mr. Offutt ex- plained today, at $50 a share, $30 of which is for capital stock and $20 for surplus. Mr. Offutt expressed appre- ciation for the action of the business ERBERT HOOVER returned to his Palo Alto, Calif., home as & private | slab and_for the wramesions voln citizen after nearly 20 years of public service. He is shown In front of | business. meen of - Gecesormrn nt th his house on the Stanford University campus with Mrs. Hoover and | meeting last night. Two of the former White House pets, Pat and Weegie, The motion of the club to invest their funds in the new bank stock was introduced by Frank H. Rowe, secretary- reasurer of the Georgetown Realty & | t Insurance Co., and was seconded by Percy C. Klein of Wisconsin Motors, Inc. Mr. Jones relinquished the chair to urge adoption of the resolution. A majority of the members of the club already had made individual sub- scriptions. Bank Officer Pleased. B. Agee Bowles, vice president of the Potomac Savings Bank, when notified of the action of the club, said: “It is a rource of profound gratification that the young, progressive business men of ‘Georgetown, who are bound to be well informed on what is going on in this community, should not only subscribe t> this stock issue in their individual capacity but likewise do so collectively.” Mr. Bowles raid subscriptions to stock had been coming in from Washington proper, Maryland and Virginia. The Industrial Savings Bank is | hoping to obtain a national bank char- ter, according to W. H. C. Brown, pre: {ident and conservator. bank, which is now the only colored bank- ing institution in the city, has been in business at Eleventh and U streets since 1913. Walter 8. Carter is chair- man of the rd. This is time to Diamond, is guarant everl ginning to invest in Perfec Diamond. e tle for - your carton. Gentlemen: Cheese. Look For The Schwarts Gold Chas iz Son is an investment that ing. Then, too, the prices . PAY ONLY your pr:um'-r CASH $ WEEK e et s g pays for it perfect Dia- and wear it while monds. at once A wearing Clip the Cou- Ppon Tonight —and drop it in your Chestnut Farms Milk bot- . or in the mails . . . Chestnut Farms Dairy Please send me a free sample of Chestnut Farms Creamed Cottage Name...coocersoesccsasncesosnsscein ARG § & Jodvon s s vt e ssasinsw Phone..ovesssecss MEXICO ORDERS INCREASE IN PAPER GOLD COVERAGE Presidential Decree Also . Halts Further Minting of Silver Coins. By the Associated Press. MEXICO CITY, March 24.—A presi- dential decree modifying the banking laws of Mexico in view of “world crisis necessities” to forbid the coverage of paj nmmeedmrdrqy etary R oy by the secre of Consolidation of the monetary sys- tem and stabilization of the exchange were declared to be the motives of the change. The state- ment said there would be no attempt f'o” stabilize the peso at an artificial 1 The Bank of Mexico will combat speculation by buying and ex- change futures, thus enabling business men to calculate accurately with re- gard to their disbursements. DIVIDENDS ALLOWED New York Insurznce Companies Can Now Pay Policyholders. NEW YORK, March 24 (#).—The State superintendent of insuramce, George Van Schaick, yesterday iswued an order withdrawing -his prohibition against declaration of dividends to policy holders of life insurance com- panies, which he promulgated in an cmergency ruling Mareh: 14. ‘The order suspending the payment of dividends to stockholders remains un- Devise New Bridge Beam. vised a new type of I-beam bridge to reduce the time needed for detours in bridge repairs and replacements. | | 1 Guarantee of Real Root Juices *; ! Make 40 bottles of § delicious and health- ful Hires Root ¥ Beer from 1 bottle of Hires Root Beer Extract. Costs less than 1¢ per glass. 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