Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-03-07
WOOD|N TO ALLOW
BANKS TO REOPEN
Scrip Issues Also Authorized
by Secretary to Begin
on Friday.
CONTINUED From First Page.)

SELCleulcuL OOCS uOt ulNOlFC AAC poy
ment OF money or currency.
Under the authority conferred upon
the Secretary Of the Treasury by the
Presidents proclamation Of March 6.
1888, declaring q bank holiday. the
Secretary Of the Treasury announces
that any bank having a branch in
foreign country may deposit collateral IN
the United States to secure advances to
such branch in foreign country. pro-
vided such transaction does not involve
any transfer of credit from the United
States to a foreign country and any
bank having q branch in an insular
possession Of the United States may
deposit United States Government Sc
curities or other collateral for similar
purpose when under the Presidents
proclamation advances Of local cur
rency in the insular possession may
lawfully be made"
The four regulations issued this
morning, making a total of II so far,
are effective Immediately.
Continues Conferences.
Secretary Woodin continued con-
ferences with Eugene Meyer, governor
of the Federal Reserve Board: former
Secretary Mills. George L. Harrison.
governor of the New York Federal
Reserve Bank, and q host Of private
bankers now in the Capital to assist
the STRENGTHENING out OF the situation
and to act as banking advisers to
Treasury ohicials.
While these were proceeding high
Government official said the Treasury
was expected to issue another regula-
ton authorizing bank depositors to
withdraw one.third Of their money.
From other sources, it became known
that this assurance had been given the
Post once Deartment in connection
with an order 1t issued yesterday gov
erning the acceptance OF checks Tor
stamps and mail matter.
The department directed postmasters
to accept checks Ito an amount within
the limitations that may be fixed by
the Secretary Of the Treasury from
time to time governing withdrawal
of deposits"
Until a Treasury order comes au-
thorizing release of some OF the de-
posits. It was explained. checks may
not be accepted by postmasters.
From the Treasury, word came that
regulations probably would be issued
soon approving clearing house asso.
ciation plans for the local issuance OF
clearing house certificates or scrip.
Cabinet Meeting Delayed.
This regulation, however, was ex-
pected to reserve the right to revoke
the privilege in any case where 1t was
found that the action was neon
sistent with the policies OF the Treas
1Iry and Government during the present
banking emergency.
President Roosevelt today glanced
hurredly through an accumulation OF
mail and kilograms before again devos-
ing his attention to the banking Crisis.
The Chief Executive remained at the
White House most Of the morning ana
the cabinet meeting was postponed until
afternoon. Stephen Early, one OF Mr..
Roosevelts secretaries, said TINS was
done ITO suit the Presidents conven-
fence"
Through Early, the Chief Executive
Expressed his qualification" at the tssu-
ance by former President Hoover IN New
york OF a statement urging cooperation
and support for Mr.. Roossvelts poncy
in the banking emergency.
Mr.. Roosevelt planned during the day
to begin drafting his message to the
special session of Congress, which meets
day after tomorrow. Although ne has
already formulated the outlines OF the
proposals he will make, 1t was said at
the White House that he had not yet
had time to begin work on the message
itself and intended to devote q consider
able portion Of the day to 1t.
Woodin Sees President.
Mr.. Roosevelt made his schedule 50 as
to be able to see congressional and
financial leaders in connection with the
emergency.
Secretary Woodin called at the White
House shortly after 10 o'clock and later
went to the executive offices for brief
talk with Louis Howe, one OF the Presi-
dents secretaries.
woodin said on leaving there was
nothing new"
A little later. the Treasury issued the
scrip regulation. 1t provided. for the
clearing house associations beginning
Friday
The issue would be permitted against
sound assets Of clearing house associa.
lions or similar organizations and would
be prorated among their creditors or
depositors.
The condition attached to the ALL
thority was that it could be revoked in
the event it was found inconsistent with
a broader plan now being considered,
but the details Of which were not dis
closed.
The certificates scrip or other me-
diuns Of exchange provided In the regu-
lation would not be issuable by clearing
house associations until Friday, or after
the expiration Of the Presidents proc
lamation closing banks.
Scrip Regulation.
The regulation, the twelfth issued by
the Secretary 50 far, read:
Clearing house associations and
other associations organized to provide
an adequately secured medium Of tenn
porary exchange, are hereby permitted
to issue certificates against sound assets
of banking institutions, such certificates
to be deliverable by each institution to
its creditors and depositors on . pro-
rate basis, provided, however, that no
such certificates shall be issued before
Friday, March 10, 1888. without the
consent of the Secretary Of the Treas
ury addressed to the clearing house or
other association proposing to issue such
certificates, and further provided that
this permission may be revoked in the
event that national plan to meet the
existing emergency Is proposed by the
Secretary, of the Treasury II in his
opinion the success Of such plan
would be inconsistent with the opera
ton Of the certifi,ate plan"
Another regulation-the thirteenth
provided authority for banks to continue
acting as trustees and administrators
and to register stocks and bonds. but
not to pay out cash in such transac-
tons.
Secretary Woodin said that the cour-
age Of the American people in meeting
this sit..ation was no surprise to me"
mo other country would have taken
the situation so calmly" he said. THE
manner Of our people has been won
derful and q great incentive to the
people working out the situation. It
has been stimulant to all Of U.s."
At the Capitol, Eugene Meyer and
Floyd Harrison, his assistant, conferred
with Senator Glass, Democrat, Of VII
nina over Mhe banking situation, but