The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1933-03-24
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National Topics Interpreted - TYIffTTIIN
by William Bruckart AIkudThf
National Topics Interpreted
by William Bruckart

through which the nation is passing IL
Illustrates better than
Real Danger language the deli
Not Realized cacy of balance that
exists In norm al
times in the country's financial struc-
ture and the money that we use In
daily life. An object lesson has been
furnished also In the methods devel-
oped by the federal government to deal
with the problem, for those methods
show clearly how misstep or a slip
would wreck all that has been accom-
plished. including restoration of pub
lie confidence
1t has been, and continues to be. an
ordeal by fire or whatever metnods
they used of old as test, for Presi-
dent Roosevelt and his secretary or
the treasury, William 81. Woodin. Thus
far, Mr.. Woodin has retained his sense
of humor. and it appears due to that
fact alone that he has been able to last
under the strain of the perilous period.
AS time passes since the memorable
night of March 5, when the President,
by proclamation, closed the countrys
banks. and when he called the con-
gress into extraordinary session. 1t be-
came more evident that the country
could not know the real danger OF the
situation at its worst. That accounts
for much Of the secrecy experienced
during the several days succeeding
March 5, when the treasury was un-
able to tell fully what was happening.
There had to be a period in which to
survey the situation and consider as
quietly as frightened men could, what
the best course was.
In other words, to save the banking
structure from wreckage and hold the
currency of the nation up in the faith
| of the people, drastic action was re-
| quired.
1t became evident Immediately after
the decision had been reached to close
the banks until legislative remedies
could be enacted, that the most diff
cult job lay ahead. The banks could
be closed with ease, but they could not
be opened with the same celebrity. So
a group of earnest men, government
officials, bankers and economists. set
to work to find out the way.
Those men recognized that public
confidence was shaken. 1t had been
disturbed by isolated cases such as had
occurred in Michigan and in Maryland.
These had resulted In hundreds of
thousands of people rushing to the
banks to withdraw their money. That
was natural. Whether 1t was right
or wrong to be hoarder does not fig
ure here. The condition happened,
and in order to reopen the banks, there
had to be a measure Of confidence re-
established.
Here is where the emergency bank
ing legislation enters the picture. 1t
proposed to make sufficient funds
available so that the banks could have
all of the cash they needed to pay Out
when their depositors called for it. On.
less the banks could do that, there was
no use to reopen them; If they could
do that. nearly all of us were made
to feel that there was no necessity fol
taking our money out Of the bank, ex'
cept, of course, the money that we had
to spend for food and clothes and or
binary expenses.
Secretary Woodin several times has
expressed his amazement at the calm
Il dem amor of the
People Calm American people II
In Crisis the crisis. He sait
he believed that M
other people in the world would have
accepted the situation with the same
philosophical calmness and under
standing that marked their attitude IL
the circumstance of Presidential or
der that closed all banks at ont
stroke of the pen. 1t made solution
of the problem much easier. OF tina
there can be no doubt He counselet
further patience until things are nor
NAL.
1t may be several months befor
banking. as we have known 1t in nor
NAL times, will be operating again. Blu
that should not be discouraging. TIL
banking operations that are not goin'
to go forward as they used to will b
of the type that does not interior
with the bulk of the folks. Ordinar
transactions can even now be carrie,
out through the banks without tn
slightest hitch. The story it tells
one of accomplishing what many oh
servers here feared were insurmount
able difficulties when they first arose.
There was much that was not writ
ten for the metropolitan press in tn
stress of the perilous week of March
Things happened so fast and the dar
yers were so grave that many traine
newspaper correspondents found then
selves at a loss to present tn
picture. They were handicapped, @
course, by the secrecy that the off
. .ials found necessary and consequent
" there was confusion. Hence, 1t ar
GEARS likely that some months mus
alapse before there can be an analyst
: If the circumstances. At least, ther
must be more time before we can lear
, from the experience of those event
J what the lessons were and what ca
ne done to prevent recurrence of til
: hangers and the unwise moves, If ther
we're such in the decisions of the az
4 ministration.
, Sound money advocates have e.
! dressed much fear over the emergenc
> banking legislation that was enacte
: by congress with speed that has bee
> eoualled only In war time. 1t is tru
that the law is nothing but wide ope
| imitation. None denies it, anywher
: The sound money group, however, al
) nnt co fearful of the law as the