The Key West Citizen Newspaper, March 15, 1933, Page 1

Associated Press Day Wire Service VOLUME LIV. No. 63. Banking System Now YOU AND YOUR Functions Qn Almost Normal Scale Again New York Stock Exchange| FIRST. Reopened Today For First Time In Twelve Days (By Associated Press) The nation’s banking sys- tem began functioning on almost a normal scale again ‘today as the third day of President Roosevelt’s pro- gressive plan for reopening of financial _ institutions found activities extending to! virtually every section of the country. Hundreds of smaller in- stitutions joined the throng of larger banks which re- pened during the past two days in twelve Federal Re- serve district cities and in 2650 clearing house centers. _ ‘The New York Stock Ex- change reopened for the first time in twelve days, and an initial wave of buying swept Prices of many leaders up _from one to four points. Other exchanges also re- sumed trading. The Internal Revenue Bureau announced the time for filing income tax reports ‘was postponed from mid- night tonight until March 31, with a stipulation that taxpayers who wait until after midnight tonight must pay six per cent interest for the two weeks’ period on one fourth of their full tax. Thirty-one additional Florida banks, members of the Federal Reserve in 29 cities, were added to the list of institutions to resume business, and within a short time it is expected all of the: state’s banks will be operat- ing again. FOR MRS. CURRY ep aliasdigacs 91RD HERE AT EARLY HOUR THIS MORNING Mrs. Cinderella Curry, age 79, #ied this morning 6 o'clock at the} cation of an accusation that he | Volume slackened appreciably. NATIONAL — BANK HERE OPENS | DURING MORNING DEPOSITS FAR EXCEED WITH- DRAWALS AT INSTITUTION; IMOST BUSINESS THAT OF CASHING PAY CHECKS Within 45 minutes after the First National Bank opened for} regular business this morning em- ployes were busy handling the many patrons who made their de- layed deposits. Withdrawals were so few as to be practically negligible. 3 Most of the money taken from the bank during the entire day, consisted of that drawn by em- ployes of the F. E. C. and other institutions that pay employes by check. William R. Porter, president of the bank, did not expect a reply to his request for license to open! before later in the week and was agreeably surprised when last night he was advised by telegram authorization to open as the license was granted. Simultaneously with the tele- gram to the bank The Citizen re- ceived the following from the As- sociated Press at Jacksonville: “Southern banks to which licenses for reopening to- morrow were issued tonight, included the First National Bank of Key West.’ Opening of this bank for the regular program of business is in line with the schedule outlined by President Roosevelt and Secretary of the Treasury Woodin which provided that sound banks in 250 cities having recognized clearing house associations would be al- lowed to ‘open Tuesday. The schedule for Wednesday went into the smaller communi- ties with banks that were known to be sound, and by the end of the week almost all banks which are sound and solvent are ex- pected to be on a working basis. The First National of Key West was one of the first to be notified in the smaller communi- ties mentioned. INVESTIGATION HARRIMAN CASE BY GRAND JURY BANKER ARRESTED YESTER- DAY ON ACCUSATION MADE THAT HE MISUSED. FUNDS OF OVER MILLION (My Associated Press) NEW YORK, March 15.— | Joseph Harriman, banker, arrest- | ed in a dramatic sickroom, seene | | yesterday, faced the prospect to-' trading wore day of a quick grand jury investi- | No. 3- By J. R. BRACKETT (By Associated Prean) NEW YORK, March 15. —No major country in the world has a_ banking sys- tem comparing in complexity with that of the United States. It is to the simplification of the system that most of the plans in congress are directed. Advocates of revision hold that the present complexity makes lax supervision of some banks inevitable and al- lows them to perform functions which are dangerous to the de- positors’ money. May Reduce Bank Total There were some 18,000 banks when the bank holiday was called, but President Roosevelt, under! wide powers given him by con- gress, may reduce this total, since it is planned that only banks, known to be sound will be opened. A bank, says the dictionary, is} “an institution for lending, bor- rowing, issuing or caring for money.” Such a definition in- cludes almost every institution} which handles money. The public; looks upon a bank as an institu- tion which takes money for check account or pays interest on sav- ings accounts. At the top of the nation’s bank-} ing structure stands the Federal: Reserve system, with 12 banks for the 12 reserve districts of the country, commanded by the Fed- eral Reserve board in Washing- ton. These are bankers’ banks for about 6,000 members. The mem- ber banks borrow from the re- serve banks, get currency from them, and keep reserves in them. National banks are required by law to be members of the Fed- eral. iReserve system. National banks obtain their charters from the national. government and are supervised by the government. 11,000 Independent Banks Although many state banks be- long to the Federal Reserve sys- tem, some 11,000 state banks ‘are independent of any national sys- tem, being supervised by state authorities only. Despite the greater number of banks not affiliated with the re- serve system, its member banks contain about two-thirds of all bank deposits. Savings banks are supervised j The Key West Citizen ——— For KEY WEST, FLORIDA, WEDNESDAY, MARCH 15, 1933. The Nation’s Complex Banking System epee THE NATION'S BANKING STRUCTURE a. @000 BANKS , MOSTLY NATIONAL UNDER FEDERAL RESERVE SYSTEM. 2. 11,000 STATE BANKS. 3. 1,000 SAVINGS AND PRIVATE BANKS. ® The United States Federal Reserve system, directed by the Federal Reserve board at W. mgton, provides 12 ‘bankers’ banks” to buttress 6,000 affiliated banks (map) scattered over the country, approximately one-third of the total of 18,000 banks operating before the banking holiday. by their states. Most savings! ly to the management of estates banks are mutual; that is, all pro-| and trust funds. Lately, how- fits go to the depositors instead; ever, commercial banks have of stockholders. They are rigidly, taken over trust functions, and regulated as to type of invest-j trust companies have taken over ment. commercial functions. Private banks usually do not re-| Proposed banking reforms en- ceive as much legal supervision.) visage the inclusion of all state They are. banks which accept only; % large deposits, and which float ian ablogal- beaks: i6tp a..qnare | snitied system, Some plans pro- curities. Both state and national banks, Pose establishment of a new sys- jtem of depository banks which often maintain savings depart- ments, and through affiliates sell) Would hold funds for a fee. securities to the public. There is} The United States government eae {maintains the postal savings proposed legislation in congress to} banks, which pay a low rate of take this function from state and! interest. It has been proposed national banks, the institutions in’ that these banks provide checking which individuals, business and) facilities. industry keep their money and on Life insurance are banks to the which they make their checks. extent that they invest the pub- A few years ago trust com-jlie’s money. Building and loan panies were distinct types ofj associations also perform this banks, confining themselves large- function. STOCK MARKET OPENS UP WITH BRISK TRADING STOCKS WHIRL FROM ONE TO SEVEN DOLLARS HIGHER IN ACTIVE BIDDING CAR- RIED ON TODAY (My Associated Press) NEW YORK, March 15.—Back from bnking markets received an enthusiastic today. Stocks whirled from $1 to $7 hich-| wars, security welcome in Wall Street er in a strong active opening and clung tenaciously to top prices as | on although the | committee approved the Senate Will Get. House Beer Measure Tomorrow WAAR TOR tarnl INSTALL ENGINE IN TENDER POPPY 15.+The senate finance ALL VESSELS OF LIGHTHOUSE SERVICE IN PORT TODAY house 3.2 percent beer bill without record vote aim-| t ing to have the senate get All of the lighthouse tenders at- to it tomorrow. tached to the Seventh District are | in port today. This is said to be! The only change made|* very unusual occurrence as these vessels are kept continually fe the move attending to their duties in maintaining lighted aids . | to navigation and buoy work. amendment to legalize | Today the Poinciana is having in the house bill was an Roosevelt's Employment Program To Put Many Of Country's Idle To Work a WIDE PROGRAM TO REBUILD TURKEY messages to congress, REACHES DECISION IN ECO. NOMIC REBIRTH TO DIVIDE COUNTRY INTO ZONES WITH DIFFERENT UNITS By PRISCILLA RING will send probably tomorrow, on emergency farm and i unemployment measures for im- mediate action. The employment program calls for recruiting of the idle in cities for immediate work on reforesta- tion in all sections of the coun- try. . The farm plan will be a one- year experimental proposition looking to acreage control with a view to increasing the value of farm products, Democratic leaders at the capi- tal have given the president as- surances that great party ma- jorities in both branches will work for expeditious enactment of both proposals. Under the latest farm relief (Ry Assoviated Press) ANGORA, March 15.—Econom- ie rebirth for Turkey, this is what Mustapha Kemal, maker of migh- ty reforms, is now promising his young republic. His recent tour of inspection, by sea and by land, has already brought forth the major decision to divide Turkey into economi¢ zones, each of which will consti- plan the bill does not include price| tute @n admistrative unit. The fixing. It does make a provision|Present administrative divisions, for leasing on a broad scale of}called vilayets, each of which has marginal lands to take them out|its governor and separate budget, ‘of production. * wan jit be scrapped to give’ way” CRIMINAL COURT PROCEEDS TODAY such factors as agricultural and mineral resources, industries, com- merce, and means of transporta- tion will guide the map-maker’s FROM ALL INDICATIONS APPEARS THAT TRIAL ON CHARGES OF EMBEZZLE- MENT WILL BE LONG hand. «+ To Exploit Mineral Wealth Along with this reform the Kemalist government is launching a big drive to discover and exploit Anatolia’s largely untouched min- eral riches, A new law reducing government taxes and transport charges will lower the price of Turkish minerals 50 percent a ton. Heretofore the exorbitance of these charges made foreign min- eral cheaper in Turkey than the local product. IT From all signs the case of the State against Roy Lewin, charged with embezzling funds of the Orange State Oil Company, will! lia’s mineral resources, reports a wealth of chrome, copper, lead, and antimony, and advises government exploitation. To make possible the exploita- be a long drawn out trial. Late yesterday afternoon jury panel was completed, the| following comprising the body. J. R. Russell, Charles W. Rich- ards, Hilary A. Crusoe, Christ Knowles, J. P. McDermott and Charles S. Lowe. One witness was called for the | prosecution late yesterday after-| Kemal's “policy of steel” re- noon and his testimony was not! fuses to bow to she world erisis. all in when court was recessed’ The government, far from aban- until 10 o'clock this morning. doning railroad construction, is When the trial was resumed! now negotiating with foreign —_ most: of the time was: o¢- groups for the construction of an cupied by arguments of the at-jittortant new line 279 torneys relative to a diserepancyl jong. to connect Sivas. and in dates as shown in the bill off). .cum. particulars furnished by the] adother “rebirth” rosecution. | Kemal’s e: 0 | his matter was decided= by] MAmnl® enemaemapats ef } Judge Harris in favor of the de-)-rurkich economy and finance. An fense and the examination of the! American; Robert Vorfeld, is al- witness proceeded. This con- the from the rich Argana mines, the government is emitting a six mil- lion dollar internal loan to build a railroad connecting Argana with the Fevzi Pasha-Diarbekir line, The “Policy Of Steel” Er- measure is foreign jready working on the reform of An English expert, engaged by: the government to study A‘nato- manganese, tion and transportation of eopper miles} jexperts to reform and build up| 58 Years Devoted to the Best Interests of Key West PRICE FIVE CENTS MONEY Thirty Killed, Two Hundred Injured By Tornado Sweeping Tennessee-Kentucky Sections Three More Earthquake Shocks \Of| Distinct Na- ture Recorded In Cali- Te floods, heavy snows an after grumble of the uake, beset several s¢ of the coun- try today. The forty-third earth tremor since the series started last Friday, was felt at Los Angeles today with three distinct shocks. It was preceded by a loud rumble at Huntington Park. Long Beach police said the city hall was violently jar- red. Brick fell from build- ings already partially wrecked. A tornado tore from the Mississippi River to Cumber- land Mountains along the Tennessee-Kentucky border. At least 30 persons died and more than 200 were injured. mated at more than $1,000,- 000. The Monongahela and Al- legheny Rivers, swollen by rain, were swept more than three feet above flood level at Pittsburgh. A steamer sank and other vessels were ripped from moorings, water commerce disrupted, and damage spread along the shores. Snow fell in New Hamp- shire with eight inches re- corded in the blizzard. SISTER AMBROSE LEAVES KEY WES TOOK PASSAGE ON FLORIDA LEAVING FOR TAMPA LAST NIGHT Sister Ambrose, of Sienna, sis |ter superior at the Convent of |Mary Immaculate, who has been lconnected with that religious in- stitution for almost 20 years left last night on the Florida for Tampa. She was accompanied by Sister Lourdes, provincial of the Order of the Holy Names of Jesus and Mary, who was visiting at the con home of her daughter, Mrs. Harold) misused funds totaling $1,383,000, | Gibson, 1401 Pine street. Fun-| Federal authorities indicated | { eral services will be held this aft-)Harriman’s case will go before | ence but their advance relatively ernoog 4 o'clock at the Fleming| the federal grand jury before! subdued most of the leading com- Street Methodist church, Rev. J./ March 28, the date set for his ar-| 5 T. Coulljette officiating. The} raignment. : notably New body wag placed in the church at] Harriman, chairman of the} York cotton exchange and Chi- 2 o'clock, | board and former president of the | The survivors are four daugh-| Harriman National Bank and} ters, Mix, Harold Gibson, Ke apany is charged with| pitts will not resume until tomor- West; Mra J. D. Vernon, Miami’ ri Mrs. A. JGook, Mulbery; Mrs. F. D. Copping, St. Petersburg. ‘RELIEF One son, Donald J. Curry. sisters, Mrs, Mary customs’ administration. Another|vent since February 27. | American, Wallace Clarke, now in. They will go from Tampa te tent with same limitation se will apply to beer. Speaker Rainey said WRIGHT AND COBB congress probably will LEAVE CITY TOD. stay i i til the: A rket, United States| SY IN session unt i Steel, American Telephone, Amer-| administration farm re-| ican Can, Dupont, General Motors, |, Standard Oil, New Jersey, Penn-jlief and unemployment {Program are enacted. modity markets, cago board of trates. The grain STRAND THEATER The Home Town Theater Today Double Feature id line favorites of the stock! such as West; Lowe, Mra, Yohn Watkins, Mrs, Exekiah Curgy; two brothers, Wil- liard = Sai . Miami; Mack Saunders, Key West. There are! also 18 gram@children and 11 great granc mn. i The pall Knowles, E Pierce, - Curry, Robert Qeorge Watkins, William Cullingfjrd and Allan Knowles. The qQopes Funeral)t Home is in chat of arrange- ments. fen ve |sylvania Railroad and Atchison| Railroad opened from $2 to $3 i 3 AT OWN CONVENIENCE for Aruba, D the assistance Motocarlin William R. BI are BROADWAY BAD Matines, 10-18; Night, 15-25< Rendaimaiix wie toe promin-| Wine and fruit juices of | the engines overhauled, the Poppy} tinued up to a few minutes be- [is having a new engine installed,| fore court was recessed and 35 i .|and repairs are being made that! o'clock to be resumed at 2:30,) 3 pie eos a tof is 3.2 percent alcoholic con | will keep her out of service for! when cross examination by thel eet. neni ce oe and after a short vis several weeks, and the Ivy is defense was begun. eek, ek hich ‘ara Stabalahs: al-; it at @ convent in that city will standing by awaiting orders. | That the case promises to be a) 0050) and alcoholic drinks, salt) !eave for Albany, N. Y., where jlonger one than was at first be-| 04 sugar. ee [Sister Ambrose will join other — ie or on the fact that|" cuch is the new vogue for for-| members of the order and étart pee ie te Deuedin aca i experts, that one—a Ppiage % Co journey to South Africa where has even been engaged to ad-ithey will begin work among the | ike sumber for the defense. | vive on means of transforming ME netives. ECR ERY OI | Olympus, Broussa, into Turkey's) “rn, cam SON BORN AT HOME, 2° snr ov Wm. H. Wright and R. D. Cobb, } nema teeter who have been here with J. Rice/ ‘ARMENIANS NOW TO | Scott, left this morning for Fort} OF A. DAVIS. RR. Lauderdale to meet a committee! td { GET SOVIET HELP | there tonight relative to putting} j (hy Associated Press) z Relief sailed above previous closing quotations. jon baby bonds and coupons. | Mr. and Mra Alvin Davis, Jr.) ERIVAN, Soviet Armeni 5 aftcnien | Tee peamge of skakeas Mb] Me: Cobh i af Cobb Brok, woelgg ee ne Aivie Dearie, Je) on SE Abo LAO, ni] Oe AE OF SR West Indies, to! the house afforded an opportun-! of the substantial bean and tomato|s seven pound boy on March 10 in| Menians, mostly skilled workers, | See Page 3 for Reader on This the Beigian |ity for a bullish display in the so-| CHICAGO.—Because Sam Bar-| farming firm# in Broward Coun-| their home at 29th Terrace, Mi. have returned from Greece, France Picture called wet stocks, ger of this city had a job he was/ty. Cobb Bros. have about forty-! ami. land Bulgaria to which they emi-| The American dollar had h-| allowed to serve a ten-day jail sen-' five acres im garden truck under News of the happy event was grated several yeart ago. A ape-! terms of Ex night, in the meantime) cultivation this season. Messrs jreceived by Mr. Davis’ parents, Mr. cial government commission has especially those still on | taking ree meals a day reg-| Wright and Cebb will return tojand Mra Alvin Davis, Sr. 703| been formed to provide with shel-| gasis. ularly with his wife and children.’ Key West next Monday. Fleming street, Key West. ter, food and work. ‘ jthe tanker to New Or