Evening star. [volume] (Washington, D.C.) 1854-1972, 1933-03-04
new YORK HOLIDAY
NATIONAL IN SCOPE
Financial Leaders Declare
They Expect a Quick Re-
turn to Normally.
BY the Associated Press.

BY the Associated Press.
NEW YORK, March with the
aid of . bank holiday, described as
likely to be national in effect, leaders
Of this giant metropolis, heart Of the
Nations money system, faced the fu-
ture coolly today, and expected quick
return toward financial normally.
A high banking authority, soon after
a two-day holiday had been proclaimed
by Gov. Herbert H. Lehman. shortly
after 4 am, said that while the holiday
was not technically national in scope,
its effect in general was likely to be
such.
One important effect, the same au-
thority pointed out, would be the stop
ping Of gold Withdrawals. both local
and to other countries, since the Fed
eral Reserve Bank in New York was to
be closed. A hundred million dollars
in gold had left the bank in recent days
scheduled for foreign account, and an
unestimated amount had been with
drawn by citizens.
Federal Reserve banks in other affect
ed districts, the same high authority
pointed out, would also close, and ex-
changes in other cities might be ex-
pected to cease business with the New
York Stock Exchange.
Lehman Comments Little.
While there came no official state
ment explaining the closing of the Fed
eral Reserve Bank, which Is not a part
Of the State system, the high authority
said 1t would close because there would
be no banks for it to do business with
Gov. Lehman had little comment to
make after making his proclamation
Asked If he considered a two-day holi-
day sufficient to bring back normal
conditions, he said:
II hope so"
He said he had not had personal con-
tact with officials at Washington. but
had communicated with the Capital
The conference that preceded the
dramatic holiday announcement in the
hours before dawn was one of the not
able meetings of financial history. Be-
sides members of the Clearing House
Committee, others of the Nations fore
most bankers attended, collection of
big names representing the most potent
forces in the banking life of the coun-
try.
Bankers Are Silent.
Thomas Lamont, principal partner
of j. p. Morgan & Co., left the meeting
with nothing to say. Similarly silent
10 ~-sc Of "a
New York Federal Reserve, biggest in
the country and the greatest gold repos-
itory in the world; winthrop w. AID
rich, president of the Chase National
Bank, largest commercial bank in the
world: James Perkins, chairman of the
Federal Reserve bank said he would
have no statement, but that Gov. Leh-
man would. The Lehman statement.
proclaiming today and Monday as bank
holidays, followed.
Gov. Lehman explained the necessity
of the holiday as due to the burden
placed upon New York banks by holt
days throughout the country. The &C
ton was taken, he said, with the adj
vice and recommendation Of the Fed
eral Reserve Bank of New York"
In Illinois Gov. Horner called the
holiday at the request of bankers and
the Federal Reserve Bank Of Chicago
after "a day of unprecedented with
drawals."
In New York Gov. Harrison of the
board of the National City Bank, sec
ond largest commercial bank in the
world. Joseph A. Broderick, State SUI
perintendent of banks, also attended
All left the talking to the Governor,
himself a noted banker, who stressed
in his official statement that it was the
spread of "hysteria and the restrictions
imposed upon the banking facilities OF
the country through measures adopted
In so many States" that forced the dras-
tic action by putting such great bur-
den ON New York banks.
"This Is time for GOODNESS and lead
ership," he said, adding that he was
confident the splendid spirit Of the peo-
pie of State and Nation would be main
tanned.
until early this morning it was my
hone" the Governor said in his procla-
nation, that it would not be neces-
sarv to interrupt the continuous opera
ton of the banking system Of New York
State.
"The spread of hysteria and the re-
strictions imposed upon the banking
facilities of the country through meas
ures adopted in so many States have
at last placed upon the New York banks
a burden 50 great that it has finally
rendered drastic action imperative here
"Therefore, at meeting late THU
evening. the Clearing House COMMITTEES
of the New York Clearing House, with
the advice and recommendation Of the
Federal Reserve Bank Of New York. has
asked me to proclaim q banking holiday
lasting until the close of business Mon
day, March 6.
II make this proclamation with com.
plete conviction that the best interest.
of the people Of the State are being
served thereby. This is time for cool.
ness and leadership. The people OF thi:
state and of the whole Nation have
shown q splendid spirit to date In meet.
ing all the trying problems Of the de-
preston. I am confident that this spir1
will be maintained.
"The interval Whic h these holidays
AFFORD should give responsible officials
the necessary opportunity to consider
the situation calmly and to prepare tn