Evening star., 1933-03-14
SECRETARY WOODN
SEES END OF FEAR.
Declares Public Has Demon.
strated 1t Has Regained
Confidence.
Continued From First Page.)

using the reopened banks as banks
were intended to be uSed-aS q con-
| venience in paying their bills and safe
guarding their funds. In other words,
the country understands what the ad-
ministration Is doing and Is showing its
confidence-that means everything"
Permanent Reform Planned.
The Secretary apologized for being
unable to answer some quetsions, saying
too many things were In the formative
stage.
Permanent legislation to reorganize
the banking structure and vigorous
! prosecution of law violators turned up
ton were uppermost in administration
minds today.
Happy at the public reception of his
plan for the progressive resumption of
normal banking operations, President
Roosevelt saw introduced in the Senate
bill to do some Of the things he sug-
gests.
He let it be known, too, that he had
instructed the Justice Department to
follow evidence taken by the Senate
Committee when it resumes its inves-
tigation and to prosecute law violators.
Mr.. Roosevelt was said to be working
today on a message to Congress on a
banking program designed to prevent
situations similar to that which has
kept him SO busy in the 10 days since
his Inauguration.
New Currency Circulated.
Thus, the President was preparing in
two directions to carry out his inaugural
address statement that there must be
strict supervision of all banking and
credits and investments; there must be
an end to speculation with other people s
money" He believed he already had
made good on the pledge in the same
speech "for an adequate, but sound cur
rency," for it was new currency that
enabled many of the licensed banks to
reopen.
Exactly what his banking message
would recommend remained to be SEEN
He has, however taken considerable ad-
vice on monetary and banking matters
from Senator Glass, Democrat, of Vir-
ginia, SO interest centered on the bill
Glass introduced.
1t would. SO its sponsor contends.
block speculation with deposits and boil
ster national banks by requiring closer
supervision. This bill was referred yes
terday to Senate Banking Subcom-
mittee. headed by Glass, which ap-
Other Proposals.
There was some discussion of the
Presidents attitude toward the bill by
Senator Robinson and to those of Sen
ator McAdoo, Democrat, of California,
to establish an insurance fund for the
protection Of depOSitors, and Senator
Gore. Democrat. of Oklahoma, to per-
NIT Federal regulation Of State banks
The Senate Committees inveStiga-
ton, said Chairman Fletcher after a
talk with President Roosevelt. will for
a time concentrate on private bankers
engaged in the investment security
business. trust companies dealing in
practices of the Stock Exchange.
Lively Business Upturn.
The American dollar displayed q
strength on foreign Bourses that sur
prised spectators, the price in some
instances rising above that which pre-
vailed before the bank holiday.
Many cities reported lively business
upturn, it being noticed especially in
department stores and in an increase in
advertising in newspapers by retailers.
A large New York department store
"apologized" today in advertisements for
yesterday for certain sale articles. A
special sale of loW-priced leather shoes
started at $50 o'clock in the morning,
and more than 10000 pairs were sold
within a few hours. The store said
that twice as many could have been
sold If the store had expected any
such army of customers"
Hundreds of banks in more than ESQ
cities Of the land were authorized TO
open today. in line with the plan of
President Roosevelt which called for
the progressive opening Of sound
banks" Banks permitted to open today
were those located in cities having rec
ogniZed clearing houses. an exception
being the banks of the II Federal Re-
serve Bank cities, where openings were
authorized yesterday.
In addition to banks in clearing house
cities. institutions in smaller cities we're
In some instances permitted to open
today. provided their applications for re-
opening had had time to receive the
attention of designated officials.
More to Open Tomorrow.
Additional banks will open tomorrow,
and progressively throughout the week.
In all cases certain Treasury Depart
ment restrictions prevail. The one re-
peatedly emphasized is that no gold or
gold certificates are to be paid out.
The new currency, issued under the
emergency banking legislation initiated
by President Roosevelt last week. al
ready is circulating, adding its impetus
to business revival. They are in ap-
pearance almost identical with Federal
Reserve banknotes which have been a
main source of the Nations currency
for years.
The clearing of checks-a vital bank
ing service to the Nations business-will
probably be on countrywide basis
before the end OF the week. Approx
mately 80 per cent of American business
Is done by check. and clearing houses
everywhere were prepared today to ex-
pedite this work
In New York City, through which
much of the country's commercial credits
pass, the clearing of checks between
banks in the Federal Reserve cities was
resumed yesterday. Checks on banks in
$50 clearing house cities were being
cleared today and tomorrow the clear
ing of checks will be on a Nation wide
basis
The reopening date Of the stock ex-
change and of various commodity ex-
changes which take their cue from it,
has not been set, but it is expected to
be soon Members of the exchange at
present are permitted to deal in United
States Government bonds. There was
only light turnover in these bonds
yesterday. with modest advances shown
in the price Of some long-term issues.
"Gold Squad" Organized.
Although the period in which holders
of gold may return it to Federal Re-
serve banks has been extended until
Friday. the Government does not in
tend that an opportunity shall be af-
forded hoarders to make away with any
of the metal. A special gold squad"
Of police has been organized in New
York to watch all outgoing passenger
ships to prevent the carrying out Of
gold. Each passenger will be asked to
sign an affidavit to the effect that he
carries no gold. Persons suspected OF
being hoarders will receive special
scrutiny.
The State Department (which issues