Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-03-04
EARLY j. s. ACTION
PLANNED ON BANKS
New York and Illinois Declare
HoIidays-0nIy Four States
Unrestricted.
'(Continued From First Page.)

tulcISSlCy dCllUu.
These developments had brought from
Representative Rainey, the next Speaker
of the House, the prediction that IAN
extra session of Congress will be called
at the earliest possible time" He said
he felt that early next week, possibly
Tuesday, would not be too soon. Pre-
viously Rainey had told House men,
bers-elect to remain in Washington.
Others at the Capitol said the session
probably would begin Wednesday.
The Federal Reserve Bank of New
York was closed with all other bank
ing institutions of that State. The
Federal Reserve Bank at Philadelphia
also closed, under holiday declared
throughout Pennsylvania by Gov. Pin
chot. Later in the day the Mime
apolis Federal Reserve Bank suspended
business.
The closing of the New York Federal
Reserve Bank meant the tying up of
its huge gold reserve for the period of
the holiday against withdrawal by either
domestic or foreign agencies.
In discussing the banking relief pro-
gram, Senator Robinson said:
I'VE do not, know just when 1t will
be completed, but it will be expedited
all possible. The details can not be
announced right now but you may be
uIGO tIlClG Will NC III uCldy.
Wagner Plans Action.
Previously Senator Wagner, Demo-
crat, OF New York, had told newspaper
men he would carry Immediately to
Democratic leaders an appeal for imme-
date emergency banking moves. In
formed at his hotel here of banking
moratoria in New York and Illinois
Wagner said he would appeal this morn
5,,rv 70 in ~ in
working out a program and some time
this afternoon would call on Mr.. Roose-
welt with the same objective.
A bank holiday, he said, lis the only
thing to do" to meet the emergency
of the banks themselves, but he added
quick steps are necessary to enable
them to reopen and continue opera
tions.
Harvey Couch, Democratic member of
the Reconstruction Finance Corpora
ton, was the first White House caller
this morning. He said after a brief
conference with President Hoover he
had discussed matters incident to the
banking situation but declined to give
details
Couch conferred last night with
President-elect Roosevelt.
Officials in Conferences.
High officials both of the outgoing
Republican and incoming Democratic
administrations were in conference
most of the night. Secretary of the
Hoover administration would have no
statement, but that governors of the
Federal Reserve banks in Chicago and
New York would have announcements.
Demands Impossible.
;rI,k ~
dawn saw banking officials in many
States struggling with the problem,
made acute by the flurrying of nervous
ness on the part Of depositors.
AS a statement by the New York
Clearing House Committee put it:
The unthinking attempt of the pub
lie to convert over $4,000, 100000 of
deposits into currency at one time is,
on its face, impossible"
The statement added that the condi-
ton clearing house banks is such that
they could, through the facilities OF
the Federal Reserve Bank, pay on de-
mand every dollar of their deposits,
but that Withdrawals throughout the
country as a whole have increased SO
that a "halt" is necessary ito enable
the proper authorities to consider and
adopt remedies to meet this situation,
not for New York primarily, but for the
Nation as whole"
Only a few States remained today IN
which restrictions On Withdrawals had
not been invoked.
No Holiday in Virginia.
In Virginia, Gov. Pollard said no
general banking holidays would be de-
clared because the States laws already
protect the banks and their deposltors.
In Maryland, the General Assembly
early today approved the emergency
banking legislation without dissenting
vote in either House. Gov. Richie
signed it this morning, but said that the
banking institutions of the State will
not reopen Monday.
The resources of the Reconstruction
Finance Corporation earlier had been
made available to hard-pressed, but
solvent banks in States that nave
imposed moratoria on Withdrawals.
This was one of number OF de.
velopmentS yesterday that included
introduction of legislation to allow
postal savings checking accounts and
to confer upon the incoming ADMIN
istration sweeping authority TO main
tain the security of deposits.
Reconstruction Corporation officials
said their policy called for lending IN
stitutions-if the loans were well
secured-enough money to pay the
percentage Of deposits that could be
withdrawn, provided the banks did not
have the funds Immediately available.
It was emphasized this was not a
new departure, but was simply the ap-
plication of regulations decided upon
for individual instances IN the past
to a situation spread into a number
Of States.
Pinchot's Statement
Gov. Pinchot Of Pennsylvania here
for the Inauguration issued the folloW-
ing statement:
because CT the declaration of bank
holiday in New York, Illinois and most
of the other States, similar action IN
Pennsylvania has become unavoidable.
Were our banks to remain open, the
demands upon them would impose an
impossible burden.
Therefore. upon specific recon-
mendation of Gov. Norris OF the Phlla-
delphia Federal Reserve Bank, hereby
declare a bank holiday throughout
Pennsylvania on Saturday, March 4,
1888, and Monday, March 6, 1888"
Exchange Statement.
A statement issued by the Govern
ing Committee or the New York STOCK
Exchange said:
1.-THE Governing Committee at a
meeting held this morning In order to
give full effect to the banking holiday
declared by the Governor OF the State
OF New York directed:
First, that the exchange be closed
during such holiday;
Second, that members and firms
registered on the exchange be pro-
hibited from making any contracts foI
the purchase or sale or the borrowing
or lending of any securities, and also
from permitting their offices or facili-
ties to be used for the purpose of max
ing or carrying out any such contracts;
Third, that all deliveries be suspend
ed on all member contracts, except on
such contracts as may be cleared by Or
settled through the Stock Clearing
Corporation, and that in such cases
deliveries shall be made as the Stock