Evening star., 1933-03-10
TREASURY STUDIES
BANKS CONDITION
Riuid Restrictions Remain in
Force in Conformity With
Proclamation.
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Continued From First Page)
Secretary said sound banks would be
opened Just as soon as possible"
He declined to be more specific.
THE main thing is we have way
10 open the banks" said the Secretary
as he entered taxicab to return to
the Treasury
Press Conference Delayed.
After his return to the Treasury.
Secretary Woodin became engaged in
additional regulations and his press
conference was delayed for more than
an hour.
Meanwhile, hundreds Of inquiries
streamed into the Treasury, seeking in
formation as to the procedure by which
banks should proceed to gain permis-
sion to reopen and for interpretations
of various phases Of the new banking
law No immediate answer was forth
coming
A statement came from Woodin q
little later announcing that an Executive
order or a Treasury regulation would
be issued shortly. prescribing a method
for the guarded reopening Of the banks.
Under the plan, the Federal Reserve
member banks would be permitted to
open only under license from the Sec
retary of the Treasury
Each bank must file an application
for such license in its own Federal
Reserve district
The Secretary said the banks would
be permitted to perform all normal
banking functions except as otherwise
prohibited.
Woodin also announced that the
proper State banking authority in each
State would be permitted to authorize
the reopening of State banks for their
usual banking functions except as other
wise prohibited.
Woodin Explains Situation.
Early today, Secretary Woodin an
nounced that the emergency banking
act. rushed through Congress yesterday
and giving extraordinary powers to the
President, makes possible the opening
of banks on sound basis. backed by
an adequate supply Of currency"
He said the Treasury bill will not
authorize any bank re-opening before
tomorrow, but already has taken steps
to secure information through proper
authorities as to the condition OF the
various banks Of the country"
Another purpose OF the delay Is to
permit the issuance Of what Woodin
called IAN adequate supply OF cur
rency" to meet the demands. Still
another. said Senator Glass of Virginia,
is to give more State banks an op-
portunity to come to the shelter OF the
Federal Reserve system
The statement of the Secretary issued
r The s emergency banking legislation
passed by the Congress today (Thurs-
day) Is a most constructive step toward
the solution Of the financial and bank
ing difficulties which have confronted
the country. The extraordinary rapidity
with which this legislation was enacted
by Congress heartens and encourages
the country.
This legislation makes possible the
opening of banks. upon a. sound basis
backed by an adequate supply of cur
rency. Through this law the banks which
will open will be placed in position to
meet all demands. This assurance
should restore confidence and create the
foundation for forward movement In
business activities. -. 1.s.
TT will be the policy of the Treasury
to permit as rapidly as possible the
opening Of sound banks. There are. OF
course many thousands OF such banks
which will promptly be restored to the
performance of their normal functions
"The Treasury has already taken steps
TO secure information through proper
authorities as to the condition OF the
various banks of the country and i'm
mediately invites from the banks the
applications for reopening.
while much information has already
been assembled, the completion OF the
information and OF the arrangements
Of the banks for resuming their func-
items takes some time. It has therefore
been decided not to authorize any re-
openings before Saturday. March H..
,"It is obvious that it will not be
possible to act upon all Of the appltca-
tions even by Saturday. Regulations
covering reopenings and also other sub
jects governed by the legislation will
Immediately be published"
Congress Expedites Bill.
The House at 2:55 pm. yesterday
began consideration Of the bank bill.
It passed 1t at 4:05 without voice in
dissent. The Senate took up the
measure IS minutes later and passed it,
70 to 7, at 1928 1t was signed by the
Speaker and Vice President and on the
way to the White House by 1855 and at
1886 Franklin D. Roosevelt" was
written on it, making law Of "a bill to
provide relief in the existing national
emergency In banking, and for other
purposes
Ninety-four minutes later President
Roosevelt used the powers this law
granted and issued his proclamation
extending the holiday.
Even before that there were prepara-
tions to put into effect the provision
of the new banking act for a currency
expansion. Secretary Woodin started
the work and then went into a confer
ence with Treasury officials that lasted
nntil a m