Imperial Valley press., 1933-03-06
BY RAYMOND CLAPPER

WASHINGTON, March 6. UP
The entire nation went on four
, day modified bank holiday today.
President Roosevelt by an unpre-
cedented midnight proclamation
forbade banks to pay out gold, silver
or other currency.
In effect an embargo was placed
on export of gold.
Preparations were made to permit
banks to issue emergency currency
in form of clearing house certifi-
Gates. These will supplement regu-
lar currency so business can carry
on and people can buy groceries and
other necessities.
Congress was summoned to meet
in extra session at noon Thursday.
It is hoped emergency legislation
will be rushed through before the
modified holiday expires at mid
night Thursday night
President Roosevelts proclamation
allows Secretary of Treasury Wood
in, within his discretion, to permit
exceptionally liquid banks to resume
normal operations.
Mr.. Roosevelt acted under power
granted by the wartime trading
with the enemy act.
1.-The United States is not off the
gold standard" said Secretary of
Treasury Woodin orally shortly af-
ter the midnight proclamation was
issued.
This is the start of the real thing.
I think we're on the bottom and will
not go lower. If people have con-
fidence in the great leader in the
White House, the country will get
out of these difficulties quite read
ily."
Treasury officials sent Woodin
home shortly after midnight to get
a few hours sleep while they worked
through the night drafting the de-
tailed regulations for applying this
drastic emergency regime. These
were to be announced as soon as
they were approved.
President Roosevelt regards his
action as protective step to give
the exhausted banking structure a
breathing spell while congress fash
ions legislation to carry through the
crisis.
He is attempting to do three
things:
l. Stop bank runs and the drain
of gold.
2. Provide emergency money in
the form of clearing house certifi-
Gates which will enable individuals
to transact their normal business.
3. Permit resumption of actual use
of regular currency by allowing ex-
ceptionally liquid banks to resume
normal banking after obtaining spe-
cial permission, and by also allow
ing banks to accept new deposits
which may be withdrawn on demand
without restrictions.
Under direction of their respec-
tive federal reserve district authori-
ties banks shortly will bgin issu-
ing clearing house certificates.
These will be in small denomina-
tions. 1t was explained by officials
that business houses would find it
to their own interest to accept the
certificates the same as regular
currency.
NuUudl lldJlOlldl pllilOlHltby Ill
the certificates will be obtained
through federal reserve supervision,
although the clearing house of each
locality will issue it's own emer-
gency money. Isolated banks not
members of clearing houses will
Geal with their own federal reserve
officials.
Meantime house and senate lead
ers began conferences today to
draft legislation and set the ma
chinery for swift action when they
convene Thursday.
Heavy and unwarranted runs on
banks and gold drain through for
eign demands made this temporary
action necessary. 1t is intended to
protect the interests of bank de-
positorS
Carrying out with a far-flung
sweep his promise of instant ac-
ton, President Roosevelt calmly
signed the proclamation in his sec
ond floor White House study as of
1905 a. m. today.
Few strokes of a presidential pen
have carried such power to reach
out to change the daily affairs of
even the remotest housewife, going
about her family marketing.
For the average man and woman,
a new kind of paper emergency
money will replace temporarily the
familiar green backed paper which
has been regarded as this worlds
goods in the most real form.
Though some cities took similar
action 25 years ago in the 1907
money panic, this is for millions
of persons the first experience with
the harsh reality which substitutes
the paper of a bank for that of
Uncle Sam
Stepping into the presidency with
an unprecedented crisis on his
hands, President Roosevelt acted
with startling speed to meet it in