The Key West Citizen Newspaper, March 14, 1933, Page 1

For 53 Years Devoted to the Best Interests of Key West Associated Press Day Wire Service VOLUME LIV. No. 62. Reopening Of Banks Help Earthquake Long Beach, California Business Resumed Quake - Ridden City; Another Slight Tremor Today (By Associated Press) LONG BEACH, March 14. —New born business life stirred this quake-ridden city today with an echo of Friday’s devastating earth shocks still in the fears of the populace. All banks which could complete necessary repairs opened. A few opened yes- terday and allowed with- drawals of $15 per person, but all restricions were re- moved today. Breadlines shortened as bank openings enable many persons who had funds tied up in institutions to obtain money to buy food. The thirty-ninth tremor was felt early today, but it was slight. SUGGESTION BY ON LEGISLATION WOULD INTRODUCE. MEAS- URES AT NEXT SESSION TO INCLUDE KEY WEST IN GASOLINE ALLOCATION State Senator Arthur Gomez has interested himself in several matters pertaining to proposed legislations which he feels would be very beneficial to Key West and Monroe county in the event that same were enacted by the next session of the state legisla- ture. 3 Among the measures that Mr. Gomez would have introduced is that of inclusion of cost of Key West’s boulevard in order that it may share in the gasoline alloca- tion money. now being paid Mon- roe county, Another matter would be the inclusion of the boulevard in the state highway system for future maintenance, and also the con- solidation of city and county gov- ernments by the passage of a constitutional amendment or other legal measures to the same effect. | RED CROSS ASKS FOR FUND TO AID QUAKE SUFFERERS SENATE DEMOUCRATS IN CAUCUS TODAY VOTED TO SUPPORT ROOSEVELT'S ECONOMY PROGRAM (My Avscctated Presa) | WASHINGTON, March) 14. j The house today took up consid- | eration of the Cullen beer bill un-/ der unanimous consent with a view | to vote after three hours’ debate and under procedure precluding amendments, Senate democrats, in caucus, voted to support President Roose- velt’s economy program but left the way open to amend it. { An attempt to bind 58 demo- erats to the bill as drawn failed when members asserted they wish ed to be free to vote for changes. The American Red Cross ap- pealed for $500,009 contributions for small home owners and others without resources who suffered in the California earthquake. i ; still unliquidated, since the Bank \of Italy will Sufferers In ROYLEWINON TRIAL TODAY IN CRIMINAL COURT CHARGED WITH EMBEZZLE- MENT OF FUNDS; SPECIAL VENIRE OF JURYMEN DRAWN TO HEAR CASE With the entire first venire of jurors exhausted, another special venire of 12 jurors was issued to- day for the trial of Roy Lewin, charged with embezzling $600 from the Orange State Oil com-; pany. When the court adjourned at 1 o’clock the panel was incomplete but it is expected that shortly af- ter the session which was resum- ed at 4 o’clock this afternoon, those needed will be qualified. At the opening of court this morning, with Judge J. Vining Harris presiding, the accused filed an affidavit of insolvency. This was followed by the presentation’ of 20 witnesses to be summoned (hs bamssdenalProeet for therdefense. The prosecution = i ookcradaned 9 = NEW YORK, March 14. Attorney Wm. H. Malone, for) Expansion of the currency the defense, then filed a motion F to quash, alleging certain technical| oes not necessarily mean defects in the information. Hel/jnflation of the was answered by County Solicitor J. F. Busto. Judge Harris then] money supply. considered the information and] ‘This is because bank deposits, With cretontinces. motions not currency, constitute the bulk From then until court recessed|°f the money. Bank deposits at at Tf o’clock’the time was taken up}the calling of the bank héliday trying to secure a jury that could|were about $40,000,000,000; he eal ek Pe adn money in circulation, including the box: J. P. McDermott, Charles cuenent ys about $6,700,000,000- S, Lowe, Armando Bermudes, This is a total of $46,700,000,000, Lawrence Higgs, Jr., Benjamin E. Distinguished From Inflation If this sum were increased be- Russell, Benjamin F. Roberts, Eddie} yond the nation’s economic needs Joseph W. Thompson, Weatherford, Grover C. Albury,|or increased artifically, there Joseph A. Johnson, Jr., Cleveland | would be inflation. Dillon, Thomas Knowles. In the present situation cur- rency expansion is planned only to IT, the extent necessary to satisfy the demands of bank depositors. Thus, if, on the reopening of the banks, TWO-YEAR EXPERIMENT CAR- HOW as a means of making up in part and in the form of bank deposits, expanded and yet have a substan' By J. R. BRACKETT same $2,000,000,000 would be withdrawn from bank deposits YOU AND YO nation’s and the total of all money—bank — KEY WEST, FLORIDA, TUESDAY, MARCH 14, 1933. .NEW MONEY, GETS INTO for the shrinkag: indicated above. tial backing. in the nation’s to The sketch below deposits and money in circulation —would be the same. Currency expansion might be inflation if the government sim- ply issued it and distributed it to the public. This would be net ad- dition to the money supply. How It Circulates The new money now planned gets into circulation just as money always does normally, The banks of the country go to the Federal Reserve banks and are given monéy whet they give the Fede: Reserve the required government bonds. The banks give out this money to those of their depositors who demand it, In time the de- positors may be expected to rede- posit the money. Then the banks will take the money back to the Federal Reserve and get their se- curities again. Inflation need not be artifical- ly induced in the sense of printing currency. It is easier to inflate credit, which is inflating bank de- posits. a In 1929 bank deposits were $55,200,000,000; money in circu- lation, $4,700,000,000, a total money supply of $59,900,000. A large part of the bank depos- its had been invested and re-in- the people withdrew $2,000,000, money in circulation would — in- crease to $8,700,000,000, but this RIED ON WITH RUSSIA-RE- SULTS IN ITALY HOLDING NOTES INSTEAD OF CASH NAVY RECEIVES MANY BIDS FOR (Ry Associated Press) ROME, March 14.~—Italy’s two- year experiment of trading with! Soviet Russia has ended in regret | and a determination not to renew it LIEUTENANT TELLMAN WILL SOON RECEIVE ORDERS TO DELIVER EQUIPMENT SOLD AT LOCAL NAVY YARD Her decision to denounce the preferential duties section of the commercial treaty of 1924 and her refusal to renew the trade agree- ment-are definite expressions of | disgruntlement over the fact | that-— | Russia got the lion's share Practically all of the equipment, ef ,coal, coal hoisting the trading, and Italy is left hold-) trucks, furniture and other items| ing the bag with half a billion lire ‘im promissory notes, In the two-year experime Russia bought machinery, dy ships, airplanes, motors, tracto marble, wine and fruits sent in| will be sold to the highest Italian bottoms, The ships brought | gers. back soviet grain, oil, graphite,! manganese, iron, steel and lumber. | 2 be At the end of the first year, ™e"* appeared in The Citizen, Italy found she had imported | calling for bids on this assortment {offered for sale by Lieutenant H. t!A. Tellman, U. S. N., ing officer at the naval station, bid- command- Some weeks ago an advertise- $29,000,000 worth and sold $14,-/ of items and within a short time} 000,000. In the second year the) bids bega It was not adverse balance was cut to $5,- long hairs tikka bead bean veceic- 000,000, t every item adver- Moreover Italy paid largely in sik Rab stag a cash, The soviets paid mostly in were local. eredit, running from 9 months te : 52 months. Most of this paper is coming in. part of the ite approxima e n pounds and incl Rot rediscount it. large amount of scrap iron and have expired have/ other junk that is at Dry Tortugas. y paid. But the Many erings are consid- of paper when they t is said, and nnoys the manufac-! < to The appraised at $73,000. nt Tellman said today 500,000 a The notes th been prom accumulation want cash a turers, Lastly the soviet agents came to Italy and bar. gained with Italian man as competitors. The It chasing agents could through the Moscow and at set prices, purchasing ITS EQUIPMENT apparatus, | entire, (My Associated Press) WASHINGTON, March Speaker Rainey told newspaper- be passed by the house before ad- journment tonight. Senate leaders likewise plan to expedite legislation requested by President Roosevelt. his signature at least before the week is out. : “We've got votes,” Rainey said, explaining he meant democratic }leadership could muster a two- | thirds house majority if neces- ‘pension of rules. | House leaders sought jaround 4 o'clock. ‘PLANNING FOR | REPLACING BUOY The | ; Rounces t Hil Tampa Bay, Florida, 29, which was moved about feet west on M fac tate dredging operations, will be a vote Bay, buoy No. oro t}replaced in its proper position. ax i soon as practicable, sii may go too far, with the re- men today that the beer bill will) Capital expectations appear to! be that the bill will be ready for} ouse department an- UR MONEY Before And After Currency Expansion CIRCULATION: “|. BANK ‘TAKES US. BONDS AND OTHER COLLATERAL TO FEDERAL RESERVE. 2.FEDERAL RESERVE GIVES MONEY FOR BONDS.” 3 JS.BANK GIVES MONEY,TO DEPOSITORS.{ Controlled currency expansion as distinguished from mere “printing press” money is looked to tal money, both that in circulation indicates how currency may be point, that is, where there was a credit inflation. A bank’s deposits are increased ltargely by loans. Thus if Mr. A deposits $10,000 in the bank, the jbank may lend $5,000 of it to Mr. B. Mr. B redeposits it, and the bank’s deposits are now $15,000. If the bank lends, say, $2,000 to Mr. C, which is also redeposited, the deposits now are $17,000. This process on a_ nationwide sult that money :is...diverted- to speculation and bad loans are made. When Deflation Begins When the speculation gets out of hand and the bank attempts to {collect bad loans, deflation sets jin, and the reserve of the policy described in the foregoing begins. If the loans are held down, there is no inflation, or, at least, the’ inflation is not harmful. Thus inflation of credit may be good or bad. In 1928 there was credit in- flation, but it did not go beyond the nation’s needs. Inflation or deflation of the credit supply is always going on according to the needs of busi- ness. Likewise money in circula- tion varies in time, but not so vested beyond a safe point; to a widely as credit—bank deposits. Claims Beer Bill Will Be Passed By House Prior To Its Adjournment Tonight COLONEL L. LEA AND SON FACING | TERM IN PRISON |ARRESTED ON CHARGE OF VIOLATING STATE BANK. ING LAWS; SENIOR LEA { NASHVILLE PUBLISHER { (My Associated Frese) 14.-Colonel Luke Lea, |publisher and former North Carolina for violation of jstate banking laws. jarrested today. | The arrests were made on The Kep West Citisen PRICE FIVE CENTS Forty-One Killed, 70 Injured ~ During TheatreFireln One Thousand Or More Banks Reopened Today (jy Associated Prens) At least 1,000 banking United States reopened for normal busi- federal stitutions throughout the ness today under and state licenses. Approximately 340 reopened yesterday and many more will resume business tomorrow. Today's total included federal reserve members, state and com- mercial institutions not members of federal reserve; savings banks and private banks. In addition many other banks are operating under restrictions pending official approval by state and federal agencies. Practically all of Florida’s 123 state banks, not members of fed- eral reserve, and at least 11 ‘na- tional or others which are mem- bers of federal reserve opened to- day. State banks are operating un- der restrictions laid down by the state banking department, allow- ing 5 per cent cash withdrawals and 15 per cent additional in scrip. Secretary Woodin at Washing- ton said bank deposits were ex- ceeding withdrawals generally in cities where banks were being re- opened and that the “era of fear” has completely passed. > At about the same time the senate banking committee was ap- proving the Robinson bill to allow state banks to borrow from fed- eral reserve but with the under- standing that the measure is not to be pressed if it is found the present laws have met the needs. With banking facilities restored to virtually a normal basis in New York and many other cities, Wall Street’s interest turned toward re- sumption of trading in security and commodity markets, perhaps by Thursday. KEY WEST MAKES GOOD SHOWING IN EXPORT MATTERS BUSINESS HANDLED — JANUARY PERIOD AMOUNT- ED TO $304,123; maxes| GOOD MARK IN IMPORTS ' In a statement of the value ot| merchandise exported and im-} ported into the state of Florida as} issued by the collector of cus-| toms at Tampa for the month of | January, 1933, Key West is shown} to have exported goods to the | amount of $304,123 for that pe-!ship Cristoforo riod. In the matter of imports, this city also made a very favorable} showing in comparison with the other cities making up the district The report follows: Exports Tampa onus 331, } Key West | Jacksonville Pensacola Fernandina Miami Boea Grande 4716 610,220 | 18, 1 CLARKSVILLE, Tenn., March | 4 palachicola Nashville /st. Augustine United] West Palm Beach jsary to pass the bill under sus-|States senator, and son, Luke Lea,) panama City jJr., are facing a prison sentence| Fort Pierce 147,104 They yore Totals warrant signed by Governor Mc ; Tampa A tau governor. ' NOTICE The regular communication Dade Lodge No. has been postponed until -. 29th. f By order o A. G. LUND, Worshipful Master. r who recently honored a re-|Key West ition from the North Carolina! jacksonville Pensacola Fernandina Miami Boca Grande of | Apalachicola i4, F. & A. M.,'St. Augustine March | West | Panama City | Port Pierce | Palm Beach Fotale— | main here for about which it will sail for Madeira. grow without trimm: CAMERA MAN LATE IN EFFORTS FOR GETTING SCENES NEWS REEL MAN WIRES CHAMBER OF COMMERCE TODAY TO ARRANGE TAK- ING PICTURES OF ITALIAN SHIP The Paramount News Reel men are as a rule on the job and everywhere, but somebody in Florida has been “asleep at the switch” or has been doing @ Rip Van Winkle stunt and been read- ing old news to catch up with the real reel news. One of these cameramen gent a telegram to the Chamber of Com- merce this morning from Miami asking the secretary to arrange for some pictures to be taken of the officers and men on the Italian training ship Cristoforo Colombo, He asked that the men be sta- tioned in the rigging of the ship, be seen at their sports, also writ- ing letters home and in fact doing the many things that officers and sailor men do while enjoying a “vacation” in port foreign to thieni. : As soon as these scenes are ar- ranged for the cameraman he will come at once to Key West and “shoot” the works. The chamber will probably ad- vise that to get these shots it will be necessary for the cameraman to take an airplane and while hov- ering over the Colombo send a wireless to have these scenes ar- ranged and then do his “‘shoot- ing.” Since the Colombo arrived in this port on February 24 the only United States port touched by the; ship in her voyage, sailed on the morning of March 4 for Hamilton, Bermuda, to remain one week and then sail for Punta Delgada, Azores Islands, the advice of the Chamber of Commerce will be un- derstood as the only logical reply that can be made. TRAINING VESSEL | REACHES BERMUDA ITALIAN SHIP COLOMBO AR- RIVES AT HAMILTON YESTERDAY (Hy Ansocinted Prensa) HAMILTON, Bermuda, 14.—The Italian naval a training} Colombo, with) ton harbor yesterday from Key West, Fla., the only Asaectadal port that the ship visited during} its itinerary. The vessel will re-| week after) The vessel . sailed from Key] West on March 4, after having te-| that port on February 24. SOME HAIR GROWTH | FOREST PARK, IlL—Five} policemen of this city who have) not been paid since Sept. 15, have! decided to let their mastaches! ing antil id | draw pay checks. STRAND THEATER The Home Town Theater Today Double Featare BROADWAY BAD See Page 3 for Reader on This Picture ——she—— ANIMAL KINGDOM Matines, 10-18¢; Night, 15-25< jed one day | When this will be will e Mexico Twenty Of Spectators Trampled To Death; Short Circuited Wire Causes Blaze (By Associated Press) GUADALAJARA, Mexico, March 14.—For- ty-one persons were killed and 70 injured in a thea-. ter fire at Ahualulco near here. The fire was caused when a high tension wire short circuited. Twenty spectators were trampeled to death and the remainder electrocut- ed. There is a_ possibility that others were slightly injured which may _ be shown after a complete survey of the situation has been made. were rendered every pos- sible aid by those going to the rescue following the disaster. TWO OF DETROIT BANKS AWAITING ORDERS T0 OPEN IN HANDS OF FEDERAL CON- SERVATORS; TWO OTHER INSTITUTIONS RESUME BUSINESS TODAY i (By Asnociated Prows) DETROIT, March 14,—De- troit’s two largest banks, the First National Bank of Detroit, and the Guardian National Bank of Com- merce, today were in the hands of federal conservators pending 4d velopment of a satisfactory per manent plan to provide the city with adequate banking facilities In the meanwhile the Detorit Savings Bank aud the United States Savings Bank were ready for business under authorization announced by the Federal Reserve jcadets aboard, arrived in Hamil-} Bank of Chicago. RELIEF WORKERS: ARE PAID TODAY 14) mained there since its arrival at/ AMOUNT DISTRIBUTED IN AC- TIVITIES REACHES $1,211 The first payday for employe: of the Emergency Kelief Coun of Monroe, since the bank + torium, is being handed out today Those being paid are the three day men and the amount being tributed is $1,211 dollars. These (are the funds that are available a+ this time Other funds are expected with- in a brief time and these will be paid to those men who have work Notice will be given when this money ix received. After the two day men have re ceived their wages the monies dag the one day men will be paid. not be known for several days, but «: |soon as received the men will bu i notified.