BOOMING BUSINESS

Hawke's Bay Tribune, Volume XXIII, Issue 76, 11 March 1933, Page 7

BOOMING BUSINESS

ROOSEVELT’S CAMPAIGN

ATTACK ON VETERAN’S PAY.

LOAN FOR EMPLOYMENT

By Telegraph—Press Assn.—Copyright (Received 11, 10.30 a.m.) Washington, March 10. The Presidential proclamation kept rigid the restrictions clamped tightly to-day about the operations of United States bunks until possibly Saturday. President Roosevelt used the power that Congress had just given him by extending the holiday until a further proclamation. This means that for the time being the banks can do only what they have been doing for the last few days—enough business to prevent food shortages or to keep people from going without pay.

His second attack on the United States economic crisis finds President Roosevelt calling on Congress for authority to effect a 500,000,000

dollar slash in veterans’ costs and Government salaries, and his swift developing of the emergency programme brings forward a proposal for a 500,000,000 dollars’ bond issue to be used in employing approximately 500,000 men in internal improvements.

The cut in veterans’ costs would amount to between 330,000,000 and 400,000,000 dollars from the present annual billion dollars. Senators and Representatives have been deluged with telegrams of protest from veterans’ organisations and a big scrap looms, but Democratic leaders express confidence that the President will win out.

Without doubt, the amount finally issued and put forward as revivifyig monetary transfusion will be more than two billion dollars. The Federal Reserve system will be the agency by which it will be started on ns mission of booming business. President Roosevelt asked Congress to-day for authority to reduce veterans’ compensations and Government employees’ salary, to take effect immediately. pointing to the prospective Treasury deficit this fiscal year of one billion two hundred million dollars. The President demanded emergency action for balancing the Budget. “The very stability of our Government itself is concerned,” he told Congress, “and when that is concerned the benefits of some must be subordinated to the needs of all.” Permanently and totally disabled vet. erans would not be touched, he said, or veterans whose disability is traceable to service origin, but the President would be given full authority to fix the rates of compensation for thousands of other veterans not m these classifications, but receiving allowances. AUTHORITY TO RE-OPEN BANKS. DATE NOT ANNOUNCED. (Received 11, 10.45 a.m.) Washington, March 10. The United States Treasury this afternoon began to dispatch numerous telegrams allowing certain backs to reopen, but no announcement was made made as to the names, locations or times. President Roosevelt had previously signed an executive order making possible the resumption of early banking operations in substantial volume under the close supervision of the Treasury. Under the order the Secretary of the Treasury was given authority to issue licenses to Federal Reserve member banks to reopen, applications for licenses to be filed with the District Federal Reserve banks. State banks that are not members of the Federal Reserve will be allowed to reopen after obtaining approval from the proper State banking authorities. FIRST STEP TO REOPENING. A GRADUAL PROCESS. (Received 11, 12.20 p.m.) Washington, March 10. The Washington Reserve Banks are directed to make loans secured by the direct obligations of the Government and to conduct such other business as is necessary to make sure of transactions by the banks for necessities. This is the first step in the plan for the complete reopening of sound banking institutions. New money legalised by the Banking Act is being rushed to banks in various sections of the country to allow them to open. Mr Roosevelt expects the reopening of the banks on a gradual basis in all probability on Monday. He asked the people not to become concerned if a bank did not open on Monday or Tuesday; it would require time in some instances to determine the complete condition of some banks. No immediate payments of gold or gold certificates are to be made. The ban on exports and against hoarding stands. Mr Hull said to-day that as soon as banking facilities are settled, the Administration will begin diplomatic conversations with various nations to form a basis for the success of the World Economic and Monetary Conference. GREAT UNEMPLOYMENT PLAN. (Received 11, 11.45 a.m.) Washington, March 10. Mr. Roosevelt has virtually ready for submission to Congress a far flung unemployment plan for enlisting 500,000 idle men into a civil corps similar to the army and placing them in camps in various parts of the country. Speaker Rainey told newspapermen that such a project would be part of the President’s proposal for a 500,000,000 dollars bond issue for public works, probably to be despatched to Congress on Saturday. Mr. Woodin announced to-day that twelve Federal Reserve banks would reopen on Saturday. THIRTEEN MILLION UNEMPLOYED. (Received 11, 10.30 a.m.) Washington, March 9. Mr. William Green, President of tho American Federation of Labour, said to-night that unemployment rose to a peak of 12,700,000 in January, and probably went higher afterwards. The increase for January over a ycni- ago was estimated at 2,400,000. He said i

that the bank crisis would unquestionably increase unemployment. “Business cannot recover until these unemployed go back to work by hundreds of thousands,’’ he added. SILVER CAMPAIGN RENEWED. (Received 11, 11.45 a.m.) Washington, March 10. Hollowing the President’s economy message the House Democratic leaders arranged to bind their preponderant majority in the caucus to get the bill through by Wednesday if possible. The campaign of silver advocates for aid to restore silver to monetary power was renewed to-day in the Senate by Mr. Kay Pittman (Nevada), who reintroduced two bills he sponsored last session and a. third authorising the Government to buy 250,000,000 dollars worth of silver in the open market. One of the earlier bills would allow Britain to pay up to 100,000,000 dollars of her war debt in silver, with a maximum allowance per ounce of 45 cents. The other, for which Mr. Pittman last session obtt:ined the approval of the Banking Committee, would authorise the purchase of 5,000,000 ounces of domestic silver monthly, and silver certificates would be issued to put silver into use as an additional base for currency. BRITISH VIEWPOINT. FIRST STEP COMMENDED. (Received 11, 10.30 a.m.) London, March 10. Financial writers generally commend President Roosevelt’s plans as a first step. The “Financial News” says: “It is not yet known what provision the President will make for the export of gold; in other words, for the maintenance of the gold standard.” The “Telegraph” says: “A fact of immediate importance is that Mr. Roosevelt does not intend to travel beyond the limits of recognised financial prudence in coming to the rescue of the banks.” The improved tone noticeable on the London Stock Exchange yesterday was generally well maintained. British funds were firmer. South African mining shares were less active, but maintained yesterday’s advances. The London Bankers’ Committee decided not to resume dealings in dollars until the bank holiday in America was officially ended, but business in other currencies will be transacted as usual. LONDON STOCK EXCHANGE. EFFECTS OF THE CRISIS. (Received 11, 12.30 p.m.) Bugby, March 10. The latest development in the United States money crisis engaged close attention on the London stock markets. It is not expected that tbo New York banking facilities will bo sufficiently resumed to permit exchange dealings in dollars before next week. Dealings in all other currencies proceeded normally. Business on the Stock Exchange was limited, dealers being hesitant, but the markets finished with a steady appearance. War Loan 31 per cent, was unaltered at £9!)J and home mils were firm. German bonds, after early declines, finished steadier; gold mining shares registered gains; intci tuiliuniils were firmer.