U.S. FINANCE CRISIS

Hokitika Guardian, 10 March 1933, Page 5

U.S. FINANCE CRISIS

BANKING REFORM

MEASURES CAREFULLY STUDIED.

(United Press Association—By Electric

Teiegrapn—Uopyngh t,;

WASHINGTON, March 8

The advjjjoilicy of extending the United .States 'Danking lio-iday is strongly indicated as it wall he the subject of discussion at a. conference of the Congressional leaders that was summoned at White House by. President Roosevelt oa Wednesday night.

London’s comment on the American crisis is pending the meeting of the New 'Congress. “The ‘Financial Times” says: If the proposals cabled fom New York represented those being submitted to Congress, the President has cut through the tangle, with a scheme that is sound and straight forward, though it will have its .painful reactions. President Roo’sevelt early on Thursday predicted an immediate resumption' of hanking activities throughout the United States as the result of the enactment of an Emergency Bill, the speedy passage of which is pledged to him by the Congressional leaders. President llOcsevelt, in a statement said: ‘‘l have been in conference with members of the Senate and tlie House, I ha-ve talked over with them measures which have been carefully studied and prepared, which immediately relieve the situation, and will at otnice sU ,-rt bilking op edition l throughout the entire country.”

POSTAL SAVINGS TO CIRCULATE.

GOVT. GUARANTEES ISSUE,

i Legislation that is intended, to put into circulation one billion dollars which is now in the Postal Savings system is being drawn up ' for subinksionon Thursday, if possible, to the extra, session of Congress.

President Roosevelt remarked : ‘‘l am gratified iat the outlook.” Senator Robinson, the Senate Leader said: “The Bill will result in the opening of a Jarge number of banks on Friday.”

The details are not reported but it is understood that they are centred upon expanding issues of Federal' Reserve Barak note's, based upon 'Government obligations. The Treasury lias threatened to pubash the name? of the gold hoarders Permission lias been, withdrawn from N-'W York State to issue State-wide •crip. ;

] DEPOSIT BANK SPECULATION

PLAN FOR THE PREVENTION

WASHINGTON, March 8

From New York, Mr Winthrop W. Aldrich, the President of the Chase National Bank, which is the largest Commercial Bank in th© world, and in which the Roekfellens are heavy stockholders, has issued a sensational statement, advocating a sweeping banking reform, ch.lcu:llat©d to reduce the present overlords of the New York money market to a position of relative imootence. He has suggested the complete divorcement o,f the commercial ar.d the investment phases of banking, which is a direct thrust at the J. P. Morgan firm. He would forbid private bankers to be directors of the banks of deposits. Such -positions several cf the Morgan partners now hold. The divorce would force all of the commercial hanks into the Federal Reserve System.

Mr Aldrich has also announced that his banks own sJeeurites affiliate, the Chase'-Harris-Forbes Corporation, would sever its connections jwith the Chase Bank. U:M

Yesterday the National City Corporation 1 , whose securities affiliate was a storm centre in the recent -Senate investigation, made a similar announcement. A RETRENCHMENT POLICY. WASHINGTON. March 8. High Government officials, to-day, said that Mr Roosevelt will ask Congress, this week, to grant him the widest authority possible under the Constitution, to effect immediate economies in Government cost. The request will especially be directed at veteran's’ romp: nsrtion. Under the President’s plan, it is stated that lie would ask for -authority to review all cases relating to veterans, and power to merge major departments, and cut t-lile statutory appropriations. RETURN TO REAL MONEY.,

WASHINGTON, March 8,

Rpp'TOGentative? of the principal grain exchanges in the United States asked for a modification of # the banking rules to permit the immediate reonhiing of their nwiTkots to both cash and future trading, ow the grounds that food supplies might otherwise be seriously d itsturbed. Mr Wocdin. said te-dav, that actual currency would he circulated throughout United Slates, in fta-ce. of serin nr clearing house certificates, under a I’vlau being formulated. He made it dear that He formal! pUn for perip nr c+ber medium r- c exchange issue, was being p 1 ■ ■■*?vV. n pel.