Evening star., 1933-04-06
HOARDED BILLION
in GOLD DEMANDED
Presidents Order Fixes May
IL as Date When Fine and
= Prison Penalties Effective.
BY the Associated Press.

Gold hoarders have about 81 ,000,-
100000 in metal and gold certificates,
and President Roosevelt wants this
turned back to the banks by May l or
the Government will take action
His executive order, which placed the
National gold supply under a license
sy:tem to carry out legitimate trade
needs, directs those holding more than
500 in gold or gold certificates to give
1t up promptly.
If they don't. they face a penalty of
a $4,000 fine or 10 years in prison, or
both.
AT the Treasury, it was said that
since the National bank holiday was
proclaimed there had been no demand
for gold, but the amount still tucked
away by hearderS was unduly large.
On Mr. Roosevelt's behalf, it was said
that the chief purpose of his action
was to restore to the Nations reserves
all the gold that remains hidden.
The Presidents order authorizes the
Secretary of the Treasury to issue IL
censes for obtaining gold for industrial
requirements, expectation for trade and
other legitimate needs. The unlicensed
gold must come in before May /.
Step Declared Proper.
! Secretary Woodin said in state
inent last night: T.,
! "The Presidents order requiring the
turning in of boarded gold, and at the
same time providing that gold shall
be available for all proper purposes. IS
an expected step in the process OF
regularizing our monetary position and
furnishing adequate banking and cur
rency facilities for all customary needs.
Such an order was in contemplation
from the time of the passage of the
emergency banking act. As the Presl.
dent indicated today. whiie many OF
bur citizens voluntarily and helptuliy
turned in their gold there were others
who did not so respond.
I'm fairness, the conduct OF all tcNi-
zens with reference to gold should pe
the same in this emergency and this IS
assured by the order. Those surrender
ing gold of course. received an equlVa-
lent amount of iother forms OF currency.
land other forms of currency may be
used for obtaining gold in an equivalent
amount where authorized for proper
purposes.
: "Gold held in private boards serves
no useful purposes under present CIR
icumstances. When added to the stock
of the Federal Reserve Bank 1t serves
as a basis for currency and credit. inns
further strengthening OF the banking
structure adds to its power OF service
toward recovery.
Licensing for Business.
"a vital provision of the order is that
authorizing the Secretary of Treasury
to issue licenses for gold for proper
business needs not involving boarding.
Applications viii be passed upon as the
facts in each case warrant.
Regulations governing the procedure
of the Treasury under the new order
are in course Of preparation
The Federal Reserve Board last FRI.
day announced, the country's monetary
gold stock on March 20 amounted to
S4,272, 900 600, a decrease OF 81 16so00s0 600
as compared to the amount a year ago.
But in the three weeks since the ma
tional bank holiday the stock of gold
had increased S28. .O00,6 600.
The board also announced the Fed
eral Reserve Banks ON March 20 held
gold reserves of $3,441 ;996, ,000, an in
crease of approximately 10000 900 in
the week and Of 1888 900 900 since
March g. In the first week of March
the banks 1os5 2osOoe. .ooe in gold.
Texf4of Executive Order.
The text of the executive order fol-
lows:
'Forbidding the boarding Of gold
coin, gold bullion and gold certificates.
by virtue Of the authority vested
in me by. section (B) OF the act OF
October g.. 1917, as amended by sec
ton OF the act of March 9, 1888, and
titled an act to provide relief in the
existing national emergency in bank
ing, and for other purposes in which
amendatory act Congress declared that
a serious emergency exists, I, Frank
lin D. Roosevelt, President OF the
United States Of America, do declare
that said national emergency still con-
tinues to exist and pursuant to SAID
section do hereby prohibit the hoard
ing of gold coin, gold bullion and
gold certificates within the Continental
United States by individuals. partner
ships, associations and corporations and
hereby prescribe the following regu-
1ations for carrying out the purposes
of this order:
Section l. For the purposes Of this
regulation, the term boarding means
the withdrawal and withholding of
gold coin, gold bullion or gold certifi-
Gates from the recognized and custom
airy channels of trade. The term per
SON means any individual, partner
ship, association or corporation.
Exceptions Listed.
osection 2. All persons are hereby
REQUIRED to deliver on or before May j,
1888, to a Federal Reserve Bank or a
branch on agency, thereof or to any
member bank of the Federal Reserve
System, all gold coin, gold bullion and
gold certificates now owned by them
or coming into their ownership on or
before April %, 1893, except the fol-
lowing:
such amounts Of gold as may be re-
ouired for legitimate and customary use
in industry, profession or art within a
reasonable time, including gold prior to
refining and stocks Of gold in reasonable
amounts for the usual trade require
ments of owners mining and refining
such gold.
Gold coins and gold certificates in
an amount not exceeding in the aggre-
gate 500 belonging to any one person;
special value to collectors of rare and
unusual coins.
Foreign Gold Excepted.
"Gold coin and bullion earmarked
or held in trust for a recognized for
eign government or foreign central
bank or the Bank for international
Settlements.
Gold coin and bullion licensed for
other proper transactions not involv-
ing boarding, including gold coin and
bullion imported for re-export or held
pending action on applications for ex-
port licenses"
Section 3. Until otherwise ordered
any person becoming the owner of any
gold coin, gold bullion or gold certifi-
Gates after April %, 1888. shall, within
three days after receipt thereof, de-
liver the same in the manner pre-
scribed in section 2; unless such gold
coin, gold bullion or gold certificates
are held for any of the purposes speci-
fed in paragraphs (A), OBJ or co OF
section 2; or unless such gold coin OF
gold bullion is held for purposes speci-
fed in paragraph Cd OF section 2 and
the person holding it is. with respect
to such gold coin or bullion, licenset
or applicant for license pending action
thereon.