Evening star., 1933-03-05
NEW YORK BANKS
RUSH CERT|F F|CATES
Method Used in 1907 Crisis
Expected to Be Used for
Reopening.
BY the Associated Press.

Reopening.
BY the Associated Press
NEW YORK, March Appropriations
were rushed today by the New York
Clearing House banks-with deposits of
more than $4,000, 900 ,OOO-to resume
banking activity on Tuesday by the use
OF clearing certificates. the method
successfully invoked IN the crisis OF
1907
Mortimer N Buckner, chairman of
the Clearing House. said after a meet
ing of the members, that the certifi-
Gates. which would be used in lieu of
currency. would be printsd over the
week end and that details Of the plan
would be announced later.
Federal approval and cooperation
was considered necessary in some quar-
tiers. however, for the successful in
auguration Of the plan, and Gov. Leh-
man, who proclaimed the New York
holiday at 4 am. today. said that no
definite plans had yet been made for
dealing with the situation after the
two-day holiday terminates on Monday.
Sees National Scope.
Asked If the banks would reopen on
Tuesday. he said, Il hope So"
He said, however. that the problem
had new become national in scope.
Until 1 know what the Federal pro-
gram and policy is going to be, it IS
difficult for ME 10 express an opinion,
he explained
In the meantime the Clearing House
program to print the certificates was
understood to be going forward. and 1t
was said they would be ready in vari-
GUS denominations, probably ranging
from S. up, for distribution on Tues
day unless prevented by Federal or
State action.
The presence of Daniel E. woodruff.
president Of the American Bank Note
Co., at the Clearing House meeting was
regarded as significant, inaSmuch as
his company prints most of the secu-
rity certificates used in Wall street.
and 1t was assumed that it might be
called upon TO print Clearing House
certificates
No definite announcement of the
Clearing House plan of action was ex-
pected before tomorrow night and pos
sibly not before Monday
Meanwhile. Police Commissioner Ed
ward P. Mulrooney took extraordinary
precautions against robberies and dis
orders.
He Cancelled the days off Of all police
officials. ordered every detective in the
department on duty tonight. detailed
extra policemen to every station house
to be available as guards for merchants
or others with large sums of cash on
hand and ordered reserve squad of
dozen men for every precinct starting
Monday. as precautionary and emer-
gency measure"
There were no disorders tonight.
Refuse to Close.
At least two New York City banks did
not observe the holiday proclaimed by
Gov. Lehman. At the Sterling National
business was conducted as usual through
the half day, and officials said the bank
would be open on Monday. Joseph Pull
bermacher its president, said he did not
consider the proclamation mandatory on
national banks in condition to meet pay
roll requirements.
The National Bank Of Far Rockaway.
on Long Island, also remained open, its
president, John r. Burton, explaining
the news Of the Governors message did
not reach there until after the bank
had opened
The larger of New York's department
stores reported a normal Saturdays
business with checks accepted in lieu OF
cash in most of the stores. The checks.
however. had to be made out for no
more than 81 over the price of the pur-
chase as no change for more than 81
was given.
Checks were still being accepted by
the collectors Of internal revenue for in
come tax payments, and 1t was an
nounced they would continue to be ac-
tod ha ho y1H
The holiday was taken calmly by
New Workers today as they went about
their business and contrived to get
along on what pocket cash they had
on hand.
Business houses, with the exception
Of financial institutions. were open as
usual and some of the large depart
ment stores reported shopping crowds
were unusually large.
The bank holiday was, Of course,
the main topic of conversation. The
word quickly spread and not many per-
sons showed up at the closed bank
doors. Those who did, saw signs which
read: Gov. Lehman has proclaimed
or were told Of the situation by attend
ants. and quickly dispersed.
Crowds gathered in front Of few
savings banks early in the day, but
there was no disorder and as soon as
those who had gathered, many OF them
foreigners had been made to under
stand the situation. they left.
Down in Wall Street, the clerks who
found themselves with three-day hol-
iday on their hands, were in somewhat
of festive mood and the flags flying
for the Inauguration helped to make
the famous street appear less austere.
Everywhere there was goodnatured
discussion of how much one had in his
pockets and how he planned to appor-
tion it over the week end.
What to do about checks was a per-
picking problem. Most of the stores
accepted checks, with certain restric-
tions. for merchandise. Friends with
extra cash on hand and neighborhood
merchants who would cash small checks
were much in demand
The banking situation was quickly
reflected in newspaper advertising. One
store announced Your charge account
is as good as dollars" and added If you
haven't one. come in and open one"
The telephone company said its bus
mess was booming. not only with calls
for information to financial institu-
tions and newspapers, but also with
long distance calls connecting the
financial district with all parts OF the
country as well as many foreign capl-