U.S. FINANCE

Hawke's Bay Tribune, Volume XXIII, Issue 74, 9 March 1933, Page 7

U.S. FINANCE

EMERGENCY MEASURES FEDERAL RESERVE TO THE RESCUE. PROVISION OF ESSENTIAL FUNDS By Telegraph—Press Assn.—Copyright. (Received 9, 11.30 a.m.) New York, March 8. With the Federal Reserve system of opening its colters to facilitate the provision of necessities and with the regu. lations being clarified in regard to banks in many localities, the country was prepared to-day for a more general lightening of the burdens of the emergency holiday through the cashing of payroll cheques and the providing of funds for essentials. A distinct stirring of business in the banks inspired fresh hopes of an early lifting of the cloud of uncertainty. With the Federal Reserve banks beginning for the first time this week to provide member banks with currency for necessities, the scrip idea began to wane. Because many banks are not members of the Federal Reserve system ft appeared that the scrip plan might develop on a local basis in many communities. New York Slate was ready' with its new emergency Certificate Corporation to develop this form of emergency currency. SCRIP PLAN DISCREDITED. The Secretary of the Treasury, Mr Woodin, said fo-day that actual currency would be circulated throughout the United States in place of scrip or clearing-house certificates under a plan being formulated. He made it clear that any formal plan for scrip or some other medium of exchange issue was being abandoned. APPEAL BY GRAIN EXCHANGES. Representatives of the principal grain exchanges in the United States asked for modification of the banking rules to permit the immediate reopening of their markets to both cash and futures trading on the grounds that food supplies might otherwise be seriously disturbed.