Evening star., 1933-03-12

authorities applied naturally to these
institutions which are not members Of
the Federal Reserve system.
"The Secretary Of the Treasury" his
statement said. will not permit any
member bank, State CT nationa', to open
In any such Federal Reserve city unless
opened for normal business en- an un-
restricted basis, except so far as af-
fected by legal contracts between the
banks and depositors with respect to
Withdrawals or notice Of withdrawal" ="
Woodin's Statement.
Secretary Woodin, in his statement
addressed last night to the superintend-
ents Of banks of each State, said:
LAS announced by the President this
afternoon, a definite program for the
reopening of banks throughout the
country has been determined by the
Secretary Of the Treasury. In accord
ance with this program the Secretary
OF the Treasury is prepared upon ap-
plication through Federal Reserve banks
to issue to banking institutions which
are members of the Federal Reserve
System, whether national or State, 10
Gated In each Of the IL Federal Reserve
bank cities licenses to open Monday
morning. The Secretary Of the Treasury
will not issue licenses to any member
bank, State or national. located outside
those II cities to open before Tuesday.
State authorities having super
vision over banking institutions located
at such cities which are not members
Of the Federal Reserve System are re-
quested to cooperate by permitting
such banking institutions to open for
business on Monday morning In all
cases where they find them qualified to
do so on the basis indicated in previous
telegram Of March 10.
The Secretary Of the Treasury will
not permit any member bank. State or
National, to open in any such Federal
Reserve city unless opened for normal
business on an unrestricted basis. ex-
cept so far as affected by legal contracts
between the banks and depositors with
respect to Withdrawals or notice Of
Withdrawals.
Ready to Issue Licenses.
"In accordance with the announce
ment Of the President, the Secretary Of
the Treasury Is prepared upon applica-
ton through the Federal Reserve banks
to issue licenses to reopen on Tuesday
morning to Federal Reserve member
banks located in any city having an
association, and upon like application
licenses to member banks located else
where for reopening on Wednesday
morning.
LAS previously stated, however, the
Secretary Of the Treasury will not per-
NIT the reopening Of member banks,
State or National, on any Of these days
except on an unrestricted basis as indi-
Gated above.
1T must be understood that the re-
strictions IN the Presidents proclama-
ton against the payment of gold. gold
certificates or bullion or payment of
currency for hoarding purposes and for
eign exchange transactions will apply to
ell banking institutions, member and
non-member, State or National, until
further notice" -
7''f Confers with Glass.
Before issuing his statement last
night, President Roosevelt conferred
with Senator Glass Of Virginia. He
had given much of his busy day to
conferences also with Secretary Woodin
and finance experts in working out the
program.
Yesterday brought a violent demand
In the Senate and pleas at the White
side the Federal Reserve System to re-
ceive temporary benefits allowed
through the system under the emer-
gency banking act.
Leaving the White House, Senator
Tydings Democrat) of Maryland, said:
Il found the President sympathetic to
giving every deserving State bank the
considerations to be given the institu-
tions that are members Of the Federal
Reserve System"
A vitriolic Senate debate also showed
Senator Robinson of Arkansas, the ad-
ministration leader, standing firmly
against the persistent demands for Fed
eral guarantee of deposits.
"As result Of such action" he said,
'the Federal Government would be
threatened Immediately with bank
Tuptcy and ruin. It means the imme-
diate ruin of Government credits. You
would never sell another Government
bond at par"
Senator Long, Democrat, Louisiana,
and Robinson, Republican, Indiana, led
the attack for amendment of the emer-
protection to State banks outside the
Federal Reserve System.
Improvement Seen.
Later, after a talk with President
Roosevelt, the Louisiana Senator said
about the banking situation: "It Is get
ting better hourly" He added, how
ever, that with his amendment the
emergency banking law "can be a sal
walton, but otherwise 1t can be a
wreckage."
The outlined views of President
Roosevelt called for simultaneous re-
opening Of the sound State institutions
outside the Federal Reserve System
with the sound banks in the system.
Hitherto the Treasury has taken the
position that the State banks would be
able to receive ample funds and pro-
lection through the orderly process Of
business with correspondent members
of the Reserve system.
Meanwhile, the IL Federal Reserve
banks opened yesterday to assure the
projection of money into the member
banks to facilitate the limited trans
actions carried on over the week end
and the opening of sound institutions
ON a full basis early this week.
To make sure Of the Governments
regular quarterly reflnancing program
on March Is, Secretary Woodip yes
terday authorized all banking institu-
tions to buy and pay for any United
States Government obligations which
may be offered for sale.
During the round Of debate In the
Senate, Senator Glass introduced his
banking reform bill which the House
did not act on last session, to be used
as the basis for the permanent bank
ing reorganization program to be pro-
posed soon by President Roosevelt.
Guarantee Fund Proposed.
Chairman Fletcher Of the Banking
Committee proposed bill to set up
$500, ,000, 900 fund for the guarantee Of
bank deposits. The fund would be Gre
ated by an original appropriation OF
$l00, ,o00, 900 and supplemented by as
sessing all deposits S cents TOR each 500
each quarter.
senator Adams, Democrat, Of Colorado,
an amendment to the emer-
aency bank law enacted to permit ad-
yances by Reserve banks to State and
member banks on their time or de-
mand notes secured to the satisfaction
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