The Washington times., 1933-03-06
(Continued from PqRs ~


ing law authorizing the use Of
the clearing house certificates,
segregating new deposits from
old, and inSuring their retention
in only cash or Government
securities.
Thus all new accounts will re-
main 100 per cent LIQUID in the
banks.
This is not the time, Robinson
said, to attempt general over
hauling Of the banking structure.
That, he thought, could await q
quieter period.
Reports from all over the courl-
try indicated that while bankers
and business men were greatly
confused as to exactly what they
could and could not do under the
terms Of the Presidential procla-
nation, people generally accepted
the situation cheerfully and car
ried on as best they oculd.
Safety Boxes Opened
In some places banks refused
TO permit access to safety deposit
boxes. This resulted in the Trea-
ury's announcing that the deposit
boxes did not come within the
terms Of the ban.
Throughout the country, accord
ing to reports to the Treasury,
merchants were generally carry.
ing on and inviting the use OF
charge accounts to keep goods
moving.
The United States postal saw
lngs system conducted business as
usual, but it was the only or
sanitation functioning 100 per
cent in the entire nation.
The United States Treasury
limited its operations to the cash
. ing of Government checks and
the making of change. No gold
was given on the checks or in
change.
1--WE are going to open up
the banks"
So said Representative Stegall
(D) Of Alabama. chairman OF
the House Banking Committee.
The Administration program, he
said, would be divided between
emergency and permanent leg1s-
lation.
Examiners Probe Liquidity
Just how much scrip is to be
issued cannot be estimated at this
time.
Federal bank examiners were
put to work all over the country
today to ascertain the degree Of
liquidity. Upon that degree will
depend how much withdrawal will
be permitted when the banks re-
open Friday.
Trading in the dollar was vir-
tually banned throughout the
world.
The British government set the
pace by prohibiting all speculative
activity against the dollar.
High officials announced Brit
ain would act "only in the most
friendly manner" during the crisis
In the United States.
President Roosevelt invoke d
wartime powers in proclaiming
the bank holiday.
Three-F0ld Purpose
The object Of the holiday is
three-fold:
i. To "freeze" the banking
situation temporarily.
2. To provide and encourage.
through system Of clearing
Va House certificates, a new
circulating medium.
8. To afford respite during
which the country can get its
breath while remedial legisla-
ton iS being worked out for
the special session of the new
Seventy third Congress that
has been called to meet Thurs
day noon.
A presidential proclamation
calls the Seventy third Congress
into session Thursday to receive
a special message from the Chief
Executive.
Until the bank holiday ends,
there is an embargo on gold ship
! ments outside the country. and
the Treasury will suspend gold
p&ymSULS al QO1Gs
Gold Basis Holds
Technically. the United States
a. off the gold standard for four
days, although authorities con.
slider the point more technical
than actual, as the country still
possesses about as much gold as
IL ever did.
Secretary of the Treasury
Woodin said:
eve are not off the gold
standard. Amy such interpreta-
tiOn is In error. The Treasury
as merely closed for four days"
In q proclamation establishing
the four-day breathing spell, the
President declared it necessary be.
cause Of heavy Withdrawals and
boarding.
Powers to WOodin
The Presidential proclamation
repoSed in the Secretary of the
Treasury wide discretionary au.
thority to make exceptions, if in
his Judgment J. would not tend
to disturb the general situation.
"During such holiday" said
the prOcIamat ton, "the Secretary
OF the Treasury, with the ap-
prevail of the President and un-
der such regulations as he may
prescribe, is authorized and EN-
powered (A) to permit any or
All mR ~vHN1n hamkimw institutions