The Waterbury Democrat., 1933-03-06
War Powers Given
 President On Banks
Continued from Page l)

He is attempting to do three things:
 1. Stop bank runs and the drain of gold.
 <. Provide emergency money in ghe form of clearing house cer- tificates which will enable indi- yiduals to transact their normal business.
 3. Permit resumption of actual use of regular currency by allow ing exceptionally liquid banks to resume normal banking after ob- taining special permission, and by allowing banks to accept new de- posits which may be withdrawn on demand without restriction.
 Under direction of their respec- tive federal reserve district au- thorities, banks shortly will begin issuing clearing house certificates. These will be in small denomina- tiong. It was explained by officials that business houses would find 1t to their own interests to accept the certificates the same as regu- lar currency.
 Virtual national uniformity in the certificates will be obtained through federal reserve supervi- sion, although the clearing house of each locality will issue it's own emergency money. Isolated banks not members of clearing houses will deal with their own federal reserve officials. Z
 House and senate leaders began conferences to-day to draft legisla- ton and set the machinery for swift action when congress con- yenes Thursday.
 Heavy and unwarranted runs on banks and drain of gold through foreign demands made this tempo rary action necessary, it was ex- plained. It is intended to protect the interests of bank depositors.
 Carrying out with a far-hung sweep his promise of instant ac- ton, President Roosevelt calmly signed the proclamation in his sec ond floor White House study, "as of 12:05 a. m. to-day" Actually it was signed about II D. m. last night.
 Few strokes of a presidential pen have carried such power to reach out to change the daily af- fairs of even the remOteSt house. wife, going about her family mar keting.
 For the average man and wo- man, new kind of paper emer- gency money will replace tempo rarily the familiar backed paper which has been regarded as this worlds goods in the most real form.
 Though some cities took similar action 25 years ago in the 1907 money panic, this is for millions of persons the first experience with the harsh reality which substitutes the paper of banks for that of Uncle Sam.
 Stepping into the presidency with an unprecedented crisis on his hands President Roosevelt act ed with startling speed to meet 1t in an unprecedented manner.
 He signed the eventful procla- mation after long, busy Sunday crammed with feverish confer ences. He was sitting calmly in his quiet study. Thick carpets hushed the foot steps of advisors moving swiftly in and out,
 Secretary Woodin, q small smil- ing man wearing q blue shirt, sat in q deep divan. Attorney General Homer Cummings, tall, thin, with wide eyes, peercd through his glasses as President Roosevelt asked him about various questions which arose regarding the procla- mation. Secretary of State Cordell Hull, thin-faced, spare Tennessean, sat with his long legs crossed asily.
 Behind the plain desk, Uttered with few papers and telegrams, looking across under the shaded desk lamp, sat the president. in blue serge business suit. Sturdy shouldered, smiling. calm. talking pleasantly, with an occasional hu- morous sally, he was q picture of ease and confidence.