Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-03-07
PRESIDENT LIKELY
TO ASK ADDITIONAL
POWERS IN CRISIS
Program Expected to Include
Legislation on Withdrawals
After Holiday.
TRUST FUND DEPOSITS
PROBABLY WILL COME UP
Permanent Measures to Be Urged
Believed to Contain Many Fea-
lures in Glass Bill.
BY G. GOULD LINCOLN.

BY G. GOULD LINCOLN.
With the orders Of the Secretary of
the Treasury making possible again
operations by the banks absolutely
essential for the conduct Of imperative
business, attention turned today to the
legislative program which President
Roosevelt will submit to Congress, which
meets at noon Thursday.
The Presidents program. 1t is be-
lieved, will have two parts-one emery
ency legislation and the other perma-
nent banking legislation designed to
strengthen the banking system and to
put an end to practices of banks which,
it is charged. have been responsible In
part for the present financial tie-up.
The emergency program will. 1t Is
believed on Capitol Hill, provide any
additional legalization of the acts OF
the President In the emergency that
may be necessary. Recognizing the
fact that it may be necessary for the
banks to limit Withdrawals Of deposits
even after the banking holiday has end
ed, the President may ask legislation
to deal with that matter. There may
also be legislation needed to permit
the banks throughout the country to
carry out the plan for new deposits.
establishing trust funds, which may be
withdrawn by the depositors without re-
striction and which must be kept with
in the banks in cash. deposited in Fed
eral Reserve banks under special &C
counts Of the depositing banks or used
to purchase Government bonds.
Scrip Legislation Possible.
It has been suggested that If there
is to be any attempt at Government
guaranty Of bank deposits, so as to
add to the confidence Of the people In
tse tS Ssnss ssUe s e E saa ruaf
anty would, it Is believed, bring mil
lions Of dollars now boarded In safe
deposit boxes and hiding places back
into the banks and into circulation.
Legislation also may be recommended
dealing with the use Of clearing house
certificates as mediums of exchange.
When 1t comes to the matter Of per-
manent banking legislation, it Is be-
lieved that President Roosevelt will IN
his recommendations to the Congress
adopt many of the features Of the bill
presented by Senator Carter Glass OF
Virginia and which was passed by the
Senate in the session Of Congress just
closed, but was pigeonholed in the
House Committee on Banking.
Vandenberg Works on Bill.
Senator vandenberg. Republican, of
Michigan. has been working on the
draft of a banking bill for a couple of
days Basically his measure provides
for a drastic separation between the
liquid and non-liquid assets of the
banks, with Government guarantee
of a year of the liquid assets. Senator
Vandenberg in the last session of Con-
gress sponsored a bill for the Govern
ment guarantee of time deposits. with
agreement that time deposits must be
left on deposit for specified time. His
new measure is intended to meet the
present emergency and to aid In the
restoration of confidence In the banks.
He has submitted his proposal to the
Treasury Department for Its considera-
ton.
Democrats of both Senate apd House
have not only promised quick action
on the Presidents banking program,
but they have taken steps to make
such action possible. Meeting in party
caucus yesterday afternoon, the Senate
Democrats by q vote of so to 3 adopted
a resolution making majority caucus
action on bill or resolution binding
on the Democrats. Democratic Senators
would be able to excuse themselves
from following such caucus action only
by declaring that the action was against
their conscientious judgment or In vio-
lation of campaign pledges. No such
binding rule has been imposed by the
Democrats since the days Of the World
War. In the House. the Democratic
thirds vote of the members.
Speedy Action Pledged.
The action of the Senate Democrats
as we'll as of the House Democrats,
gives assurance to President Roosevelt
that administration measures will have
both speedy and favorable consideration
in Congress. Republican leaders in
Congress have asserted their intention
and the desire of the Republican men,
bers to cooperate in every possible. way
to speed legislation designed to relieve
conditions in this country. Only three
Democrats in the Senate voted against
the binding caucus as proposed by the
Democratic leader. Senator Robinson OF
Arkansas. They were Costigan Of Colo
RADIO, Long Of Louisiana and McGill Of
Kansas. r..
The House Democrats will meet in
caucus tomorrow to perfect their Or
gaflization with the election of the
members Of the Ways and Means Com
mittee, the Democratic Committee on
Committees and take such other action
as may be necessary.
Both houses Of Congress will, there
fore, be in complete readiness to re-
ceive the recommendations Of the Presi-
dent on the banking situation and to
act Immediately. Senator Fletcher of
Florida is in line for the chairman
ship of the Senate Banking and Cur
rency Committee. On the House side,
Representative Henry B. Steagall Of
Alabama, the present chairman Of the
Banking Committee, is expected to re-
rhoir y,oon