The times-news. [volume] (Hendersonville, N.C.) 1927-current, 1933-03-06
CONGRESS MEETS THURSDAY
IN SPECIAL SESSION FOR
ACTION ON BANK PROBLEMS
Roosevelt and Advisers Prefer Action
to Halt boarding Be Regarded AS
Modified Bank Holiday, Rather Than
National Moratorium.
BY RAYMOND CLAPPER
United Press Staff Correspondent

WASHINGTON. Mar. 6. (UP).
A modified national bank holiday
extending through Thursday was
declared by President Roosevelt
in proclamation last night.
He ordered all banks to suspend
payments of gold and other forms
of currency now on deposit. A
special session of congress has
been summoned to meet Thursday
noon to consider banking and
financial legislation.
A system of clearing house GER
tificates was ordered under the
supervision Of the various federal
reserve districts to obtain virtual
national uniformity.
Stephen Early. White House
secretary told newspapermen tina;
Secretary of Treasury Woodin,
former Secretary Ogden L. Mills
and members of the federal re-
serve board care standing by at
the treasury ready to put the ma
chinery in motion to make this
effective"
Every effort was being made to
facilitate the prompt issue OF
clearing house certificates. Deci-
sions regarding details of issuance
were expected to be rushed at the
treasury department to speed up
issue of the emergency money.
The secretary of the treasury is
empowered to authorize that new
deposits made after the modified
holiday went into effect may he
accepted and preserved in special
trust accounts which shall be sub
ject to withdrawal on demand
without any restriction or linita-
ton. Banks must keep such funds
separately in cash. or on deposit
in federal reserve banks or invest
them in obligations of the United
States government. .,
The proclamation covers all
banking institutions which include
by the definition within the proc
lamation itself, all federal reserve
banks, national banking associa-
tions, banks. trust companies,
savings banks, building and loan
associations, credit unions, or any
other corporation, partnership, as
ISOLATION or persons, engaged IN
receiving deposits, making loans,
discounting business paper or en-.
paeine in any other form OF
banking.
PROCLAMATION ALL
INCLUSIVE AS DRAFTED ,
The proclamation was drafted
to be all inclusive in preventing
further paying out or ear-nlarKlng
of funds now on deposit. 1t pro-
vided against paying out, export
inp ear-marking. withdrawing or
transferring in any manner Oh
currency now held.
Dealing in foreign exchange or
transfer of credits from the. unl,
ted States to any place abroad
also was prohibited during the lie
of the proclamation. :.
The order was predicated upon
tho increase in boarding and
heavy withdrawals Of bank funds
, and the draining from abroad Oh
These conditions had created
President Roosevelt said, ma
tional emergency.
"There have been heavy ana
unwarranted Withdrawals OF goid
and currency from our banking
institutions for the purpose or
boarding." the proclamation stat
ed.
"Continuous and increasingly
extensive speculative activity
abroad in foreign exchange has
resulted in severe drains on the
nations stocks of gold. The con,
ditions have created a natlona!
emergency"
The president further explained
that he regarded a period of res
pite as being in the best interests
of all depositors. 6
at is in the best interests OF
all bank depositors that a perlon
of respite be provided with a view
to preventing further boarding OF
coin, bullion, or currency or
speculation in foreign exchange
and permitting the application OF
appropriate measures to protect
The interests of our people,
The secretary of the treasury
was given authority with the ap-
proval of the president to remove,
entirely restrictions on lndiViduai
banks at his discretion.
This was provided to permit
banks in the insular possessions
and extra liquid banks within the
United States to operate as usual
if permitted.
The proclamation was dated at
1905 a. m. Monday.
President Roosevelt and his adj
visors are understood to prefer
that this action be regarded as a
modified bank holiday rather than
as a national moratorium.
1t was designed to check devas-
tating Withdrawals of cash. but
to permit creation of temporary
emergency currency and to allow