The border vidette., 1933-03-25
ECONOMIC HlGHl,GHTs

At the moment all the news
has necessarily been obscured by
the bank situs ton. A brief re-
sume seems TO be in order ct this
time.
Holidays started with the clos
ing Of all Michigan banks by
order of the governor, in order
to prevent the potential collapse
of Detroit's largest banking 10
stitutions. Reverberations from
this took the form OF unusually
heavy Withdrawals ia other
states. A bank holiday was de
clared in Maryland. then ia Cali
fornia, Oregon and Washington.
Within q few days the holiday
took in q heavy percentage OF
the states. Restrictions varied
in strinRency. In most instances
banks met payrolls, permitted
Withdrawals OF sizable sums
when good cause could be
shown, aud the withdrawal of
small sums to meet current
needs. 10 few instances per.
centage ENTHUSIASTICALLY 5
per cent Of the total on deposit
we're permitted.
The Presidential proclamation
came as no surprise. Rumor
was that it had been foreseen
weeks ahead, aud bad been de-
layed until the new Administra
ton could take charge, in the
belief that this would have q
stabilizing effect on the public
morale. That seems to have
been the case.
The federal proclamation WAS
extremely stringent. providing
that all banks should be closed
during the holiday; that all tran
sactions except those specifically
ordered by the Secretary of the
Treasury, should be suspended; ];
that no bank could accept de
posits, make loans. transfer
credits abroad or deal in foreign;
that the Secretary Of the Trea
sury might take control of the
issuance of clearing house certi.
feates during the holiday, etc.
Heavy penalties were provided
maximum of $4,000 fine and
ten years in priSOn-fOr viola.
tion.
Talk of Federally backed scrip
became widespread, and at one
time the Administration stated
that some move in this direction
would be made. Later, it was
announced that no Federal scrip
would be issued. Banks con
tinued to meet necessary with.
drawa!s. In q few instances
local scrip, good among local
merchants. was issued.
Culmineting event was the
Presidential announcement that
all sound banks would be opened
for business as usual on Monday,
Tuesday and Wednesday, March
l3-1o-those in the II Federal
Reserve citids on the first day,
those ia cities with Federal Re
serve branches on the second.
those elsewhere on the third
The problem thus resolves itself
toto finding a solution for un
sound banks. minimizing 90 far
a. possible losses to depositors.
Stricter banking regulatory laws
are inevitable.
Daring the first week OF the
holiday, money In circulation
rose to more than $6 zoe, 900. coo,
the greatest OK 2ansion in history
and a new high. Monetary gold
stocks. OF the country declined
SIG 100000.
Excellent sign was the public
attitude. II was, on the whole,
serene and confident. The holi.
days were accepted casually
even humorously. There was
no panic. no disturbance. Prac-
'icaliy universal support Of Ad-
ministration policies was heard.
The belief is expires sed on
every hand that the holidays
were the final event in preparing
the way for recovery. Senti
ment is that the bottom has
actuallp been reached. that the
! up climb, slow as il will be, is at
least in sight.
Interesting and important
phase Of the situation is the Ad
ministration's drive against gold
| boarding. The amount of gold
thus held is unknown. but those
in g position to estimate believe
it to reach almost unbelievable
heights. Various means for
4