The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1933-02-28
u. S. WILL ACT
WITH CELEBRITY
TO ALLAY FEAR
Prompt Measures Pledged
to Avert Bank Crisis
in Nation.
BY RAY TUCKER
Times stan Writer

WASHINGTON. Feb. 29-Mem-
bers of the incoming and outgoing
administration today gave assur-
ance that the federal government
would cooperate vigorously in the
nationwide effort to check the
wave of fear which has led to
Withdrawals Of bank deposits in
some sections.
Following conferences between
Ogden L. Mills, secretary of the
treasury, and William H. Woodin,
Mr.. Mills successor, It was learned
that the Roosevelt administration
will combine a firm stand against
initiation and other radical meas
ures with a determined move to
balance the budget through I'M
precedented economies.
Roosevelt TO Ailay Fear
President Elect Roosevelt is ex-
pec.ed to announce a program in
his inaugural address designed to
allay fear He probably will elab-
crate on it in his message to the
special session Of congress.
To speed remedial measures, it is
reported the next President will
call the extra session much earlier
than had been scheduled--probably
as soon as the necessary delay or
fifteen days after his proclamation
permits.
Other encouraging signs were
seen in the probable termination of
Detroit's difficulties through Henry
Ford's assumption of bankers role,
the resignation of Charles E.
Mitchell as dominant figure of the
National City Bank of New York,
and declaration of r. F. c. heads
that they would use all their re-
sources to aid banking institutions
hard pressed for cash.
Expect Favorable Reaction
With the government standing by,
It is believed that other large de-
positors, like Mr. Ford, will give
greater cooperation and further
financial assistance where needed.
Since the crisis in Detroit con-
tributed to difficulties in Ohio, it is
hoped the effect Of the auto city's
improved condition will have a
favorable reaction outside Michigan.
Several witnesses before the
senate finance committee, including
bankers and industrialists, eX-
pressed confidence in the ability of
banks to pay out" when present
problems have been adjusted
THE United States" E. T. Weir,
Pittsburgh manufacturer, told the
committee, has reached that point
in liquidation where it can turn
about and begin to do business
again. But the present situation re-
quires quick and decisive action"
Quick Action Required
Meanwhile, congressional leaders
discussed several plans for strength
ening and improving conditions, al
though there also arose a demand
for passage of the Steagall bill, to
guarantee bank deposits.
1t has passed the, house, but
Democratic leaders have buried it
in the senate banking and currency
committee They point out that
national bank deposits totaled
$18,518, 100000 on Dec. 81, and that
any attempt to guarantee those
might destroy the nations. credit
here and abroad and impair the
market for its securities.
In some quarters there was adj
vanced the suggestion that the SEN
ate banking and currency committee
quit it's stock market inquiry for a
while. Some think the Mitchell
testimony did much to cause uneasi-
ness
But others believe the wisest
course is to continue They pointed
out that the investigation appar-
emily forced Mitchells resignation
and that this development may
calm worried depositors.