Evening star., 1933-03-06
PAY ROLLS TO Be
MET, SAYS W0OD|N
Scrip and Cash Both to Be
Made Available Dur.
ing Holiday.
Continued From First Page.)

out any money, the Government Mint
1t Philadelphia was operating as usual.
Twenty dollar gold pieces and pennies
were being minted.
Rainey Calls Caucus.
Representative Rainey, the next
Democratic caucus for Wednesday to
set up the controlling Ways and Means
Committee for the special session on
Thursday.
The governors OF the New York Stock
Exchange appointed . special commit
tee to decide II the market should re-
open tomorrow.
Governors OF the Omaha Grain Ex-
change voted to open the market today.
trading on the basis Of Chicago May
option, settlements to be made on the
May price basis when the Chicago
futures market opens.
Everywhere the attitude of the people
was one of "watchful waiting"
The President, in his proclamation
issued under the wartime powers con-
tanned In the trading with the enemy
act Of 1917, halted absolutely the flight
of gold from this country and from the
Treasury and the banks.
Two Courses Outlined.
At the same time he authorized the
Secretary OF the Treasury. under the
Presidents approval and under such
regulations as he may prescribe, to PSI
NIT the banks to perform ANY or all
of the usual banking functions"
Two courses were outlined by the
President in mis- proclamation which
are expected TO be followed by the
Treasury Department in the issuance
of regulations permitting modified
banking
The first was to direct require Or
permit the issuance Of clearing house
certificates or other evidences Of claims
against assets Of banking institutions"
The second was Ito authorize and
direct the creation in such banking in
stitutions of special trust accounts for
the receipt Of new deposits" subject to
withdrawal without any restriction. to
be kept separately in cash or on de-
posit in the Federal reserve banks or
invested in Government obligations"
The second proposal is designed to
bring boarded money back into the
banks and to reinspire confidence IN
the banks.
The hope was expressed that the
| Federal Reserve Banks would remain
open and arrangements could be made
with them to obtain cash needed. Om-
cials of the post ONCE were In con-
ference with the Federal Reserve Board
in regard to this matter.
At the Treasury Department checks
drawn on the Federal Government, for
whatever purpose, were today being
paid in cash
Discussing the situation at the Treas
ury Department, Mr.. Woodin pointed
out that the Presidents proclamation
was issued late last night, under date
of March 6, and that there were many
details which had to be worked out 20
that pay rolls can be cared for.
Every community has . different
idea Of how things should be handled,
he said There will be mediums OF
exchange to care for all necessary
things. We hope to have everything
fixed today"
Given Broad PowerA
The Secretary said, too. that issuance
Of clearing house certificates to be used
in the place of cash would be local in
each instance, and that the same would
be true Of scrip. There was insufficient
time, he said, for the Government to
issue q uniform scrip. However, he in
sisted that some medium Of exchange
would be available within . short time
to the entire country. Efforts would
be made Immediately to work out .
plan by which checking accounts would
be workable and this medium Of buSi-
ness could 60 forward.
The Presidents proclamation Of the
bank holiday gave to Secretary Woodin
practically unlimited powers to limit
the bank holiday or to make the shut
10 ~
While the Presidents proclamation
placed an embargo on gold and pro-
hibited the earmarking Of gold for for
eign account and in effect put an end
to payments in gold for the time being.
Secretary Woodin emphatically de-
clared that the United States has not
been taken of the gold standard.
Suspension Of gold payments was
held in some quarters practically to
have the effect Of removing the gold
standard. But 1t was pointed out that
the suspension Is temporary, and that
nothing has been done really to disturb
the gold standard.
Can Extend Holiday.
The banking holiday proclaimed by
the President runs through Thursday,
the day on which Mr.. Roosevelt has
summoned the new Congress to meet
necessary, using the same powers grant,
ed him under the trading with the
enemy act, the President can extend
the holiday, with such notifications
as he deems At.
President Roosevelt, however has In
preparation legislation dealing with the
banking situation which he will submit
Immediately to the Congress on its
opening. The congressional leaders are
planning to expedite the consideration
of this legislation.
The President sat down in conference
with the Governors Of States today to
talk over the banking situation. These
Governors had come here for the inaug-
ural celebration Saturday, and the
| President met with them in the White
House soon after he had returned from
the Capitol where he attended the iu-
neral services for the late Senator
Thomas ]. Walsh of Montana In the
| to have been Attorney General in the
Roosevelt cabinet.
President Roosevelt has indicated
that the new Congress will be called
upon to deal first of all with emer-
gency banking legislation. Later Will
come permanent bank reform legisla-
ton.
/ The emergency legislation. It Is ex-
pected, will be rushed through both
/ houses of Congress.
| Senator Robinson Of Arkansas, Demo-
cratic leader said that he expected
/ the emergency legislation to authorize
the use of clearing house certificates
| by banks that are in moratoria, to the
| extent Of their liquid assets. He added
that it would look. too, to the segrega-
| ton Of new deposits.
IT has heey, urged in aOune 0larterS