"DIFFICULTIES OVERCOME"

Taranaki Daily News, 13 March 1933, Page 7

"DIFFICULTIES OVERCOME"

EARLY OPENING OF BANKS ECONOMY MEASURE PASSED PRESIDENT’S ASSURANCE HEAVY CUT IN EXPENDITURE By Telegraph—Press Assn.—Copyright. Rec. 6.30 p.m. Washington, March 11. *The technical difficulties that operated to delay the opening of the banks, both State and national, have been finally substantially overcome,” President Roosevelt announces, “and banks throughout the country will be opened progressively on Monday, Tuesday and Wednesday mornings.” The new issue of currency will be in circulation on Wednesday at all banks officially approved as solvent and stable. The Presideiit will address the nation over the radio to-morrow night to “explain in simple language to all of you just what has been achieved.” To-day’s developments in banking and related matters include a continuation of payments by banks on a very restricted scale for the most necessary transactions. There are indications that the farm leaders will ask Mr. Roosevelt to become the “farm dictator” in order to cope with the emergency in agriculture. The passage of the economy Bill by the House and the continued redeposit of gold by hoarders in the banks of the country are' other features of the day. Large New York banks are preparing to resume virtually normal activity on Monday and Wall Street is expected to resume other financial operations gradually. There is little likelihood of the Stock Exchange resuming on Monday and other principal security and commodity exchanges are expected to follow suit. The Democratic membership of the •House of Representatives refused in a caucus on Saturday to be bound to support Mr. Roosevelt’s economy proposals. The House rallied behind Mr. Roosevelt this afternoon to pass his economy Bill, Republican support more than making up for Democratic defections on legislation empowering the President to slash ns*i a billion dollars off Federal spending on account of veterans’ pensions and pay on other rolls. The Senate Finance Committee -favourably reported, the Bill with a few minor changes, but the Senate Democratic leaders decided to postpone calling the Bill until next week. The prospects of the Bill in the Senate are doubtful in view of the apparently increasing opposition promoted by the veterans and Labour organisations. The vote in the House was 262 to 138. The Democratic caucus had failed by 14 votes to bond the party. The decision in the House followed two hours of sharp debate in which both parties were split, a stormy fight centring on the proposals to reduce veterans’ pensions. RE-OPENING OF BANKS? Mr. Roosevelt expects the re-opening 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 cases to determine the complete condition of the banks. No immediate payments of gold or gold certificates are to be made. The ban on exports and against hoarding stands. Mr. Cordell Hull, Secretary of State, said to-day that as soon as the banking facilities are settled the administration will begin diplomatic conversations with the various nations to form a basis for the success’ of the world economic and monetary conference. The campaign of silver advocates for aid ,to restore silver to monetary power was renewed to-day in the Senate by Mr. Key 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 Bill for which Mr, Pittman last session obtained the approval of the Banking Committee would authorise the purchase of 5,000,000 ounces of domestic silver monthly, silver certificates to be issued to put silver into use as an additional base for currency. BRITISH MARKETS STEADY. SOME UNEASINESS IN FRANCE. London, Malch 10. The latest developments in the United States money crisis have engaged close attention on the London stock markets. It is not expected that New York banking facilities will be 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 3J per cent, was unaltered at £99 ss. Home rails were firm, and German bonds, after early declines, finished steadier. Gold mining shares registered gains, and internationals were firmer.

A Paris message states that the heavy withdrawals of deposits and current accounts shown in the latest Bank of France return indicate the feeling of insecurity prevailing. Not since 1931 has £12,000,000 been withdrawn in one week. This resulted in a substantial increase in the note circulation. It may be taken as certain that in the event of a run on the banks the authorities will place an embargo on the'export of gold long before the legal cover limit is reached.