The Waterbury Democrat., 1933-03-08
BY RAYMOND CHAPTER

 United Press Stan CorrespOndegt)
 Washington, March S.-(UP)- Action to speed resumption of nor may banking and put new drive in the battle for recovery was ex- pected from the Roosevelt admin istration to-day.
 Officials were considering a pos sible 11-th hour change which may result in supplies of special cur rency being made available through the federal reserve system instead of through groups of banks in the form of scrip.
 As far as could be learned, no decision was reached over night.
 Meantime, all banks were free to operate to a limited extent. They were given permission to finance payrolls and purchases of food, m edicine, feed for animals and other necessaries, to make change, and permit access to safety deposit boxes.
 One of the major questions still left undecided was whether re- sumption of checking privileges would be permitted against old &C., counts. New accounts accepted since the holiday began are subject so far as the federal government is concerned to full checking priv ileges. Checks writetn on old &C., counts before the holiday may be put through if cash does not have to be paid. But no ruling has come authorizing banks to resumt checking against former deposits. There was some confusion In various parts of the country among those who did not understand that all of Secretary Woodin's modifi- cations in the holiday wer epermis- sive authorizations. Banks were under no compulsion to reopen or to resume limited activities.
 Secretary Woodih. in other words. has told banks. what they may do provided it does not conflict With state restrictions. For instance, eh says a bank may reopen to meet payrolls. But if governor has ordered his banks to remain entire ly closed, that regulation would have to be followed.
 Banks in most places were re- opening on the limited basis per- mitted by treasury regulations. ?
 Congress prepared to convene to- morrow ready to yield quickly to President Roosevelt's wishes as 1t would to a dictator.
 Quick action looking to a limited guarantee of bank deposits was ex- pected.,
 Confessional confirmation of the gold embargo and other phases of the banking holiday was likely.
 President Roosevelt informed leaders he, hoped congress could enact emergency legislation in three days and recess Saturday un- til late in April. s.,.
 There were suggestions that an issue of national government scrip or special currency be substituted for proposed local clearing house certificates.
 This resulted in halt in plans of some cities to use their own scrip. The New York legislature has created a special corporation to issue scrip. Governor Lehman was skeptical of the practicability of clearing house currency. The new corporation will not issue scrip until it is definitely determined , that none will be put out by the federal government.
 The District of Columbia Clear , ing House association last night al- so deferred decision regarding Is. suance of scrip until the federal government makes its final decl- sion.
 Bankers here believed the Rich-- mond Federal Reserve bank would soon begin limited rediscounting Of commercial paper and thus supply ample funds for local needs with out scrip of any sort being neces- sary, following much the same sys- tenn as was authorized last night for the New York Federal Reserve bank.
 Under authorization already issued, banks on Friday may begin using scrip issued by their clearing houses unless in the meantime Sec retary of Treasury Woodin rescinds his authorization, right which he has reserved.
 Some are urging that local scrip plhans be abandoned and that instead the government issue a special form of currency sup ported by government bonds and other assets of members of the federal reserve system.
 For several days there have been reports of unusual activity at the government bureau of printing and engraving where federal currency | is manufactured. It was denied | the plant was working on scrip.
 Tentatively. plans were to go | ahead with local issues of scrip unless an alternative decision were l made. Ip order to make possible any 11th hour switch. the launch ing of scrip was authorized for Fri wife lost their lives in the earth | quake at Yokohama, September ,,