Imperial Valley press., 1933-03-06
LEGISLATURE
MARKS TIM:
On FINANCES
Holds Up Moratorium Legisla-
ton Pending Announcement
Of Plans By Government.
WILLING TO COOPERATE
Governor Calls For Support OF
President By All Citizens To
Avert Serious Trouble.

SACRAMENTO, Cal, March g.
EUPi-Emergency bank legislation
in California was held in tempor-
ary allegiance today while legisla-
tive leaders awaited further word
from the national capital.
Governor Rolph said he felt no
thing should be done for the time
being. He added that whatever
steps California takes should CO.
incide with the federal program.
Consequently, it is necessary to
withhold action until the federal
banking plan is made known.
Senator j. w. Mckinley, chair
man of the senate banking COM
mittee, expressed similar views.
1t was considered likely that the
legislature would temporarily "pi-
geon-hole" emergency bank legis-
lation and proceed with other mat
ters.
The governor urged fullest CO.
operation with President RooSe-
welt. He planned to issue procla-
nation expressing this sentiment
later in the day.
State Treasurer Charles c. john
son and State Controller Ray Ri
ley emphatically advised that no
steps leading toward issuance OF
scrip should be taken unless it CO.
incides with the federal scrip plan.
II advocate immediate passage
of legislation by the legislature to
coincide with steps taken by the
federal government, johnson de-
clared. I'VE must be in accord with
the national government in this cri-
SIS
The treasurer felt the state bank
superintendent should not be
clothed with absolute authority
over scrip issuance by state banks.
The authority should rest jointly
with the state finance board, COM
posed of the governor, treasurer
and controller, and the bank sup
erintendent, he said.
Riley said if state and federal
plans were not in absolute accord
with respect to the issuance OF
| scrip, there would be general dis
| counting of scrip.
"We should enact legislation
which precisely duplicates the fed
eral plan," he said. mo other plan
is logical at such time.
Oppose Private Scrip
individual localities and states
should not be permitted to issue
scrip as they wish. The plan should
be uniform. Otherwise, you would
have the scrip of one community
being discounted by another and
! vice versa.
California must realize it can
not alter the national system. We
must also remember there is a
dual banking system--state and na-
tional. If emergency legislation af-
fecting national banks were not ap-
piled to state banks there would be
inevitable failures of state banks
Representatives of banking in
stitutions and members of the leg
islature were preparing legislation
which would halt the issuance OF
scrip by individual business con-
/ Germs. Reports that numerous con-
| Germs had already started circula-
ton Of their own scrip led to the
fear a variety of scrip would re-
suit in defeating the purpose OF
banking scrip. Value would be in
determinate and would cause var
ious percentages of depreciation,
members said.
Opinion among legislators and
bankers was that the state legisla-
ture should await federal regula-
tions before attempting to enact
any state measures. Undoubtedly,
they said, congress would take up
| Thursday at the special session
! congress would take up Thursday
consideration of regulatory laws
Should Thursday not see the pas
sage of the bills continuance of the
nationwide holiday was anticipated.