Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-03-09
TREASURY SHAPING
COURSE FOR BANKS
Virtual Wartime Restrictions
Exclude Callers, Except
Those Aiding Plans.
(ContinIed From First Page.)

gold out Of the country in about
month. ...-
It would also show where more than
$200,000,000 In gold went during the
month Of February in addition to the
amount that was earmarked for export
to foreign countries.
Diplomats without Funds.
Another worry came to the Treasury
from the State Department.
In response to requests from foreign
diplomats for means Of enabling them
to get needed funds from banks during
the temporary holiday, the State De-
partment disclosed that it had asked
the Treasury what could be done.
The letter to Secretary Woodin by
Secretary Hull said he would appreciate
it If way could be found to permit
the banks to pay out needed funds to
members of the diplomatic corps.
The letter also suggested the advis-
ability OF making . dispensation sufn-
GENTLY broad to apply to foreign ccnsuls
IN different parts of the country.
Undersecretary Phillips said the mat
ter had been brought to the attention
of the State Department by diplomatic
missions In Washington and added the
State Departments action was simply
one Of courtesy.
The funds were reported needed by
certain Of the embassies and legations
for running their expensive establish
ments.
An agreement between the President
and the leaders Of the new Congress,
reached in a get-together that lasted
after midnight, was hailed by both as
something that would permit immediate
reopening Of large number OF banks.
Currency Plan Outlined.
The outline of the currency plan was
this:
New money, already in the making.
will be issued and based on Government
obligations There will be no gold
directly behind the currency. but the
soundneSs of the Government obliga-
| lions will be guaranteed by
| /. A continued Federal check on gold
q A budget balanced at the quickest
opportunity.
8. Retirement of inherited deficits.
4. A drive to make gold hoarders lose
their boards by March Is.
! S. The fact that the Government
bonds themselves are redeemsble in
! gold.
The people who sat in the meeting
! when this plan was agreed Upon saw no
question but that these things would
prove the soundness of the money.
| Senator Carter Glass of Virginia. one
Of of6cialdom's outstanding advocates
of sound money" was among the con-
ferees who approved this step.
Robinson's Comment.
The reactions of the congressional
leaders to the bill Mr.. Roosevelt pre-
sented was expressed by Senator Rob-
| inson of Arkansas, Democratic leader,
in these words:
I'VE have gone over a tentative draft
Of the bill and considered 1t with some
care. 1t Is the opinion of all in the
conference that the bill will be passed
day. and will result in the opening OF
a large number Of banks on Friday"
President Roosevelt's statement was:
Il have been in conference with men,
bers Of the Senate and House and have
talked over with them a measure which
has been carefully studied and pre-
pared. which will Immediately relieve
the situation and at once start banking
operations throughout the entire coun-
try. I have been assured that there is
every prospect Of the immediate passage
OF this legislation on its introduction.
am gratified At the outlook"
As part Of the program Mr. Roose-
welt wanted, and was told he would
get, power to continue his control over
gold; he was assured. too. that Con-
gress would give him the sweeping pow
ers he wants to reduce expenditures to
equal income. Payments on the public
| debt would be the next step.
Preparing Long Time Plan.
All Of these things are contemplated
to meet the immediate emergency.
When the emergency period has passed
the emergency program will be set aside
for longtime plan the President Is
preparing.
This plan will be submitted to the
Congress within two or three weeks.
Beyond indications that it will call for
more strict Federal supervision of
banks. possibly leave closed some finan-
cial institutions that are unsound and
| perhaps establish q system Of guaran-
! teeing deposits, there have been no In
timations as to what 1t will contain.
Most OF the Presidents friends say
simply that he will call for a complete
reorganization Of the banking system
that would prevent occurrences Of the
present difficulties.
Eventually oficias apparently hope
bankers will take advantage Of the
rights they have under existing law to
] expand or contract the currency as con-
ditions demand. Around $4,000 0OO. 900
, in new money could be issued under
| existing law, even without Mr.. Roose-
! velt's latest proposal, but the bankers
had not been exercising their privileges
| with enough speed. Consequently, this
latest step was proposed.
SCRIP MOVE IN ALABAMA.