Iola Daily Register And Evening News from Iola, Kansas on March 10, 1933 · Page 1
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Iola Daily Register And Evening News from Iola, Kansas · Page 1

Iola, Kansas
Issue Date:
Friday, March 10, 1933
Page 1
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COMp. , TOPEKA REGISTER VOLUME XXXVI. Jfo. 114. Saceessor to Tho loin Daily R«i:ister, The IOIB Daily Record, and lola Daily Index. lOLA, KAS., FRIDAY EVENING, MARCH 10, 1933 The Weekly Register, EaUblished 1867. The loU Daily Rfscister, Eetabliihed 1897. SIX PAGES NO HOARDS OF GOLD KNOWN IN THIS VICINITY T Bankers Say No Run for Yellow Metal Precedes Banking Holiday PLENTY IN i^AULTS Banks Try, But Unable To Dispose of Coins To Depositors Oold—lonff the master key for almost any lock, and which now has become the "open sesame" to prls- . on cells for hoarders of it is >no problem to lola banks and ai>par- ently is-causing ho guilty consciences In this community. Local bankers, questioned, said lo- /riay that for months prior to th; ' rmcrRcncy which caused every bank In the nation to be cl<Med by prcsl- ' dcntial proclamation, the demand for the precious metal had sta>'ed at Its normal level—practically zero. There was no rush to the banks In the last two or three wjeekis by de: posltors seekJngf to close their accounts and take their savings in gold back to the family socks. And so far as either of the banks is aware, there Is not 4 full-fledged , hoarder in Tola or the territory from .which their depositor? come. Of course there are undoubtedly hundreds of dollars In gold coins . of various kinds distributed among the people of the county, the bankers say, but the coins are suspend• ed from watch chains or necldaces. or carried around in trouser pock- 1 ets as they have been for years. ! probably as good luck charms. Very ; little of it. they believe,. is cached away in some dark corner due to the fear that In other sections of the countrj' swept the people. ' Plenty on IliinC Hftd the citizens of lola : beer. , stricl:en with, the, hysteria, which resulted in the nation-wide banking holiday, many of themi perhaps to their surprise, would have had not the least dltficully in getting the full amount of their accounts paid ' to them in gold held in reserve by lola banks. In fact.' the. bants ; ,woiiId have been glud 'to give it to : - them. N9 exact figure was revealed which would represent the amount of gold 'actually held In lola, but one bank official said that the bans , with which he is connected has had on hand for several years a "considerable amount." He gaid that the >-eIlow coins had been reposing in the vault of the bank,;earning^no Interest, held there as a part of the cash reserve always on hand. He said that the bank had considered some time ago'of sending it to Kansas City but had decided to keep it here, considering that the bank would have to pay not only the shipping/charges bu'. the loss through abraalon. (Banks are credited only with the weight of .the gold they deposit with the government, not the stamped face value.) No Gold Coming In. Both banks, after reporting no run on gold recently, also said that there had been no effort on the part of iny depositor to return gold to the depositories, contrarj' to the trend now being reported in large cities of the east. One bank official, in running over the gold situation, recalled that his bank still held some of the geld it had on hand when it was a practice to pfiy employes of the smelters which flourished here a few .vears ago in gold. He said his bank had made efforts to dispose of that gold to depositors from time to time in the last few years, but to no avail. They didn't want it. Old Fashiohed People. He said, however, that on one occasion when a conven:ion" waa meeting In lola. checks presented by delegates, who were from the entire state, were paid In gold. .Their action, the banker said, caus- '^ed no little comment and mirth. "How far behind the times you are in eastern' Kansas." one delegate from Garden City said, "paying off in gold." ' That was some time ago and marked the last successful attemot of the bank to dispose of Its gold reserve.'Since that time, the offl: clal said,; eagles, double-eagles, and smaller coins have been trickling in a few at a time, until at presenc there is "more than we want" m the bank. "MEANEST MAN"STEALS VAtUED SELIC. Amoiig "meanest man" stories (or perhaps thoughtless child stories), here Is the latest: During tihe showing of "The Big Drive" at the lola theater, a display of war souvenirs was featured in trie lobby of the theater. One item in the display was a four-edged spike bayonet, a type used for a time in the French infantry and quite a rare rellp at the present time. It was owned by Iver Fowler of lola, who picked it up on "Dead Bton'si HIU" during the Verdun off en-, sive and who values it greaUy as a souvenir. He lent it to the theater for this display. The bayonet was taken from the theater by someone. Mr. Fowler thinks possibly some youngster took It for a plajrthlng because it has no commercial value whatever. It has a great sentimental value to him, however, and he Is offering a $10 "no questions asked" reward for its return ito the lola theater where the reward will be paid. It has a white metal handle. REGISTER SCRIP IS CIRCULATING Emergency Money Passes Many Times in Course Of Week's Business With bank openings deferred at least until the first of next week, The Register plans to meet Its payroll again tomorrow with scrip similar to that issued last Saturday. Almost aE of the scrip issued last week is already In circulation In lola stores,—and It Is "in circulation" to a surprisingly literal degree. Most of it, doubtless, remains in the liands of those who first accepted it in exchange for merchandise, but an extraordinalry number of pieces have had a rapid and extensive tour. In one case a dollar of scrip was given by a Register employe to his milkman; the mUkman traded It to a grocery- store for food; the grocer offered It to a farmer in exchange for eggs and the farmer was glad to take It; he paid admissions to the picture show wlt^i It and the picture show man brought It to The Register the next day in part payment of his week's advertising bill. In five days this one piece or scrip served as a medium of exchange for six transactions and returned to the point where it was issued. The experience has showed that the i^uance of the Register scrip has been a convenience in many ways, and to many people. It has made it unnecessary for Register employees to ask merchants to open a charge account with them. It has saved the merchants the annoyance of opening such accounts and doing the necessary bookkeeping. And it has done a tiny part m relieving the currency! situation. Incidentally It has constituted a remarkable illustration of Van wide acceptance and free use that would greet any general issue of bank or clearing house scrip when and if It niakcs Its appearance In this community. DEATH GOES TO ZANGARA FOR KILLING ITALIAN SENTENCED FOR SLAYING OF ANTON CERMAK ASSASSiN FLAYS JUDGE Zealot Denounces Court As a Capitalist and A Crook Gold Pouring Back Into Bknks by the Millions Conscience-Stricken Hoarders Flock to Depositories to Ease Their Minds and Improve the Backing: of the Government's Currency With Coin, Jewelry, Bullion. Miami, March 10. (AP)—Oiuseppe Zangara, zealot and assassin, today was sentenced to death In the elecr, . _ trie chair for the murder of Mayor Ing waterfall into government cof- New York, Mar. 10. (AP)-Gold was hot today.. ' It burned fingers, seared conr sciences, and stung hoarders Into sudden action. By the thousands, all over the country, they scurried to banks to purge themselves of the yellow stain which, the government I^B decreed, ^iU be a passport to prison. In vanity bags, steel chests, troust ers pockets and armored cars it poured in—stacks of double ewes, $5 pieces that dangled on last yuletide's tree, big bars of bullion. Fear, revlvhig confidence, aroused conscience, and newly acquired knowledge were sending It tuc^Ung back, bankers said, like a glitter W. L. AUERBACH DIES Former lolan Was a Son of theltate WUIiam Anerbach. I Martin Fnneral Tomorrow. The funeral of Mrs. A. H. Martin be hel*In the Waugh funeral home at 2:^0 p. m. tomorrow. The day was unintentionally omitted from the account of the death in yesterdays issue of The Register. WEATHER and ROADS FOR KANSAS: Partly clondy tonight ami Saturday; somewhat warmer. Temperature — Highest yesterday 51; lowest last night 17; normal for today 43; deficiency yesterday 8. Excess since January 1, 457 degrees; this date last year—highest 25 and lowest 7. Precipitation for the. 24 hours ending at 7 a. m. today 0. Total for this year to date 3.80. Excess since January 1, .22 inches. Relative humidity 7 a. m. today 90 per cent. Barometer reduced to sea level, 30.49 inches. Sun rises 6:41 a. m. Sets at 6:22 p.. m/ Kansas Weather and Dirt Roads. Emporia, Manhattan, Ottawa, Cof- feyviUe. Topeka, clear; roads good. Arkansas City, Wichttii. Pittsburg, Salina: Clear, (oads good. Lawrence W. L. Auerbach, son of the late William M. Auerbach who for tnany years operated a grocery store on South Chestnut opposite Washington school, died yesterday in Wichita according to word announced by relatives in lola today. He had been sick but a short time Known to his many friends in lola as "Bill," Mr. Auerbach had bten connected with the grocery store which his brother C. L. Au^bach now operates. He was bom In lola and spent the greater part of Us 27 years her^. He moved to Wichita and married Miss Maybelle Wells there, and at the timie of his death was employed as a meat cutter by a Wichita concern. The Auerbachs had no children. He leaves his mother, Mrs. Addle Auerbach, and a sister, [Mrs. May Rice, In lola, as well as his brother. He had two sisters. Mrs. Rhoda Murray, Springfield, Mo., and Mrs. Irene Etohr, Allentown, Pa. . The funeral will be held Monday at 10 a. m. in the Cochran and Hammond chapel in Wichita. lola relatives were not advised as to where burial will be made. PAIR ADMITS OTHER CRIMES Pittsburg Robberies Done by Hamby and Cairo!. Cops Say. Pittsburg. Kas., Mar. 10. (AP)— PoUce here announced four Pittsburg holdups in recent weeks had been solved by confessions of Billy Hambj, under life' sentence at Leavenworth, and Jerry Carroll, facing a charge of mui^er in tlie slaying oflE. J. Morris Of Erie, Wash- biun college student; last Monday near Tonganoxle. Hamby pleaded guUty to fu-ing the shot that killed Morris. Hamby and Carroll, police said, confessed to robbing a bakery, a drug store and a grocery store here which was held up twice. . Mrs. Snyder Weds Again. Cannes, France, March 10. (AP)— Mrs. Theresa CNeil Snyder, daughter of {the late James E. O'NeU, witness in the Teapot Dome oil inviEsti- gation] was maMed recently in Cannes to James R. Taimay of Amsterdam, it ;was learned today. Taunay, who is 24i Is twenty years youiuier tbfin bride and is promr inent on the Riviera JBS a teniois player. Anton J. Cermak of Chicago In his futile attempt to kill President Roosevelt. Sentence was passed at 10:31 a. m. by Circuit Judge Uly O. Thomp- jjon who read the sentence from a prepared statement ending 'KWR. "and may Ood have mercy dri your soul." There was a flurry in the court room after sentence was passed as Zangara denounced Judge Thompson and shouted "You give me electric chair. "I'm no afraid that chair. "You're one of capitalists. "You is crook man too. Put me in electric chair. "I'm no care." Rushed From Court. Deputies rushed Zangara from the court room as he shrieked the last sentence. Spectators were held in the court room until after the prisoner was removed to the elevator carrying him to jail. Under the Florida law the execution date will be fixed by the governor of the state and officials of the state penitentiary at Rallford. Judge, Thompson's sentence ordered that,Zangara be confined in Dade county jail until his removal to Rallford and that he be kept there until the governor sets the week of execution, the hour and day, to be set by the prison farm superintendent. Before passing sentence. Judge Thompson said: "I want to thank the spectators for their splendid decorum and officers of the court for their conduct of the trial. "But what seems more important at' this time ts the firm conviction that the congress of these United States should pass legislation for confiscation of all firearms Illegally owned. Pistol Laws Denounced. "Assassins, roanTing at will through the land—and they hav« killed three of our presidents—are permitted to have plstrils. "And a pistol in the hands of the ordinary person Is a most useless weapon of defense. "No one (ion foresee what might have happened had Mr. Zangara been successful in his attempt." After being brought into the court room. Zangara laughed frequently as he talked with Louis F. Twyman, chief of his defense counsel. As in his previous court hearings, he was guarded by Chief Deputy Ouy Reeve. Other deputies stood between the ItftHan and-the crowd that packed the court room. Zangara conversed with newspapermen at the press table Immediately behind his chah-. "I feel happy as anybody here," he said. "I have milk for breakfast. I have shave. "I'm no scared about anjlhlng because I'm sure I right. If the judge puts me in the electric chah- I tell him I no care. "I tell him he's capitalist and he's in same bunch." Albert E. Raia, one of his attorneys hfljlted Zangara's good-natured and spoke at length In fcrs. Fright—which drove much of it into socks and vaults—was helping chute it back Into Uncle Sam's keeping; fright (salutary and wholesome this time) at the prospect of ten years in prison and a 110,000 fine. V ' One estimate predicted a billion dollars in hoarded gold would be outbursl Italian jaa court was called to order. Mayor Cermak died last Monday In Jackson Memorial hospital as a result of a bullet wound in the abdomen. The mayor was shot while he stood;near the automobile occupied by Mr. Roosevelt. Zangara's aim at the president was deflected by spectators. Zangara already was under sentence of 80 years for conviction on charges of attempting "to kill Mr. Roosevelt, Russell Caldwell. Coco- but Grove, Pla., Miss Margaret Kruis, Newark. N. J., and WUUam Slnnott. New York policeman.! The latter three were slightly wounded by Zangara's bullets. The Italian has not been tried for shooting Mrs. Joe H. Gill, prominent Miami society woman, wounded In the abdomen. Mrs. Gill continues in a critical condition at the hospital but her physicians say they believe she will recover. CIVIL CAMPS TO HOUSE JOBLESS President to Offer Far- Flung Plan to Relieve , Unemployment Washington, Mar. 10. ,(AP)—President Roosevelt has vh-tualiy ready for submission to congress a. far- flung unemplojTnent 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 Bainey told newspapermen such a project would be part of the chief executive's proposal for a 500 million dollar bond Issue for public works probably to be dispatched to congress tomorrow. The camps would be located at points strategic to public construction, reforestation and reclamation projects,; said, and the men enlisted would be fed and housed sad given compensation of not to exceed $1 a day for their work. Mr. Roosevelt already has outlined his ideas ' for one extensive project centering arbund Muscle | Shoals and has others in mind. The camps, Ralney said, would be patterned In part after the unem- plo >Tncnt camp In New York state In which the president Is Interested. It holds well over 1,000 men. The camps would be strictly civil In nature and military traUUng would not be employed, but men could be dismissed for Infractions of camp rules: A plan Initiated previously by Senator Couzcns (R. Mich.> to open citizens' military training camps on a year-round basis for approximately 80,000 homeless and unemployed youths between the ages of 15 and 21 was defeated In the closing hours of the: last session. President Roosevelt's plan was described as providing tliat any of the men employed In the camps" and ha \'lng dependents would be required to send part of thehr small compensation to contribute to their support. They would be allowed to obtain discharges at any time they could obtain better joas. Ralney said today that although the total outlay for such a plan would run around 500 million dollars, only around 200 million would be needed for the fu^t j-ear. It would, he said, take many men off city doles and relieve unemployment congestion hi the cities. back in a few days where it is mpst useful, reinforcing the rock of gold oa which the currency is reared. It was believed, in the absence of Official figures, that perhaps 200 inUUon dollars pf gold has been restored to the federal reserve system throughout the country this week. At St. Louis, Governor William UcMarthi of the eighth district said more than hall of the $U50,000 ifrithdrawn(last week, was returned this week; ^$636,000 of it yesterday. At New York recovery of gold Idnce the first of the week totaUed «6 million dollars. Of this 30 milUon dollars poured Into the federal reserve bank yesterday. As In other reserve districts it Included gold returned by Individuals and turned in by member banks In accordance with Treasury Secretary Woodln's regulations. At San Francisco the reserve bank statement showed an Increase of more than 19 million dollars in gold reserve during the week ended Wed- nesdoy. The reserve was sufficient to back all federal reserve notes outstanding nearly 70 per cent. At Chicago, bank officials said a "noticeable amount" had been re^? ceived and they expected an Inpour to begin today. The Chicago Tribune said that between February 24 and the president's proclamation withdrawals from the reserve bank soared to from 4 million dollars to 5 million dollars dally. At Philadelphia. $727,000 in gold was returned to the reserve bank yesterday, making a total of $lj055,- 000 since the start of the holiday. Hoarders with bulging suitcases struggled into banks. Others asked that trucks be sent to their homes. Many expressed shame, for their action. Everywhere the government prepared a drive to punish persistent hoarders. The reserve board called for the names of all who got gold in the past two years. Gold trinkets and bullion were being exchanged at U. S. assay offices for cash. Some folk even tendered gold teeth and watches. The federal reserve system passed out federal reserve notes for gold and gold certificates. The penalties against hoarding are heavier than for many grave felonies. Bankers expressed conviction they would be enforced. The "Wg hoarders" would be sought especially, they said. One man phoned a New York bank yesterday. He said he had $700,000 In gold and wanted instructions on how to get rid of it. He got the Instructions. The "little fellows" were just as Jittery. Folks who had kept gift gold pieces as souvenirs parted from thcni with a sigh. MRS.CARNER DIES widow of Ch-ll War Veteran Long- Time Resident of County. Kansan On Committee. Mrs, Margaret Carncr, widow of O. W. earner, a veteran of the- Civil war, died at her home, 824 North Buckeye, yesterday after a long period of declining health. She was in her eighty-sixth year. The funeral will be held at 3:30 p. m. tomorrow in the Waugh funeral home and burial is to be made in the family plot in; Highland cemetery. The Rev. N. J. Aalborg, pastor of the Seventh Day Adventlst church of Chanute will conduct the service, assisted' by the Rev. Harry Crane, Methodist minister from Mulberry. Kas. Mrs. earner was a resident of Allen county for 66 years, coming here with her husband from Illinois, and settling on a farm near BrohsoA. Later they moved to a farm west of lola and finally retired to spend their last years in the town. Mrs. Comer was bom in Jefferson county. Ohio. During her most recent illness, Mrs. Camer wais cared for by her PRESIDENT READY TO CUTCOSTS ROOSEVELT DEMANDS POWER TO BALANCE BUDGET QUICKLY VETS OFFFIRST Salaries Next in Line for Deficit • Ending: Economies PROTESTS mMEi )IATELY Soldier Organizations Op- liose Wide Discretion Chief Asks Washington, Mar. 10. (AP) —President Roosevelt (^Ued upon congress today for dictatorial power to reduce veterans costs and federal salaries, promising that if it complies, "there is reasonable prospect" for a balanced budget within a year. The Democratic phalanx of house and senate, though not without dissent, set out at once to do his bidding, expecting thereby to have hundreds of millions saved the treasury that the president told it will have piled up a 5-bllllon-dollar deficit by Jime. "I am pointing a definite road," declared Mr. Roosevelt, and asked that he be Allowed to take It "at once without even waiting for the beginning of the next fiscal year." Even before the message could be read to senate and house threats of a determhied dispute were evident. House Democratic leaders arranged to bind theh: preponderant majority In caucus to get the bill through by Wednesday, if pos^ble. Senate Adjoqms. . On the ^nate side, Robinson of Arkansas, 'the Democratic leader, said the senate would recess until tomorrow after receiving the mes- Washington. March 10. (AP)—! daughter,. Mrs. Maranda Warring. Speaker Rahiey today appohited Representatives McDuflle of Alabama, Milllgan of \ Missouri, and Woodbum of Virginia, Democrats, and Taylor of New York and Mc- Gugln of Kansas, Republicans^ as the special economy Committee to handle a bill to give President Roosevelt the power to slash government expenses. She also leaves three other daughters, Mrs. May Whitlow. Wichita; Mrs'. Opal Stauffer, and Mrs. Maude Gay, Arlington, Calif. One- son, Thomas Camer, lives in Martin, N, D. Mr. Camer, who was a member of an minois regiment during the war, was 85 years old at the time of his death two years ago. • Text of Presidents Proclamation Extending Natiotial Bank Holiday Repeai Machine Approved. Topeka. Mar. 10. (AP)—The senate approved today, without a record vote, a bill outlining procedure for nomination and election of dele­ gates'to a convention to consider ratification or rejection of the Blahie resolution to repeal. the eighteenth amendment. There was little discussion of the measure and no one voted against approval of the bill. Cattle Market to Open. Kansas City, Mar. 10. (AP)—The directors of the Kansas City livestock exchange this afternoon voted to reopen the public markets here tomorrow morning, after receiving a notice frbm banks handling packers accounts they would begin handling the proceeds of sales in the usual way, under the treasury ruling of March 6.- I? "YOd MISS TSK REGISTKB CALL U7 OR m Washington. Mar. 10. (AP)—The text of President Roosevelt's proclamation extending indefinitely the United national banking holiday: I By the president of the States of America A proclainatlon: Whereas, on March 6, 1933. I, Franklin D. Roosevelt, president of the United States of America, by proclamation declared the existence of a national emergency and proclaimed a Ijank holiday extending from Monday the 6th day of M^h to Thursday the 9th day of March, 1933, both dates inclusive, in order to prevent; the export, hoarding or earmarking of gold or silver coin, or bullion or currency, or speculation in foreign exchange; and Whereas, under the act of Mardi 9, 1933, all proclamations heretofore or hereafter issued by the president pursuant to the authority conferred by section 5 (B) of the act of Octot>er 6, 1917. as amended, are approved and confirmed; and Whereas, said national emergency still continues, and it is necessary to take further measures eirtending beyond March 9,1933, In order to accomplish such purposes: i : ; Now, therefore, I, Franklin D. Roosevelt, president of the uhlted States of America, in view of isuch continuing national emergency and by virtue of the authority vested In me by section 5 (B) of tlie act of October 6, 1917 (40 Stat L.. 411) as amended by the act of March 9, 1933, do hereby proclaim, order, direct and declare that aU the terms and provisions of said proclamation of March 6, 1933, and the regulations and orders issued thereunder are hereby continued In full force and effect until further proclamation by the president. , In witness whereof I have here- imto set my hand and have caused the seal of the United States to-be affixed. Done in the District of Ck)lumbia, this 9th day of March, in the year of our Lord one thousand nine hundred and thirty-three, and of the independence of the United States the one hundredth and fifty-seventh, r (SEAL) I FRANKLIN D. R<X>SEVELT. By the president: Cordell Hull, Secretary of State. sage because the bill was not ready for introduction. The new legislation, as recommended by Mr. Roosevelt will lay down broad principles for pensions and other veterans benefits, but will rest with him the important authority over administrative details. He will aim to slash costs caused by compensation for non-scrvlco connected disabilities. "We are unanimous." he said, "in upholding the duty of the government to care for those who suffer in Its defense and for their widows and orphans." American Legion posts and other veterans organizations flooded the members of congress with protests against moving at this time to grant such wide powers as sought by the president; but Democratic leaders expressed confidence he would have his way eventually. Such quick action by the new administration apparently caught American Legion ofBcials off guard. Details in Donbt.' Desperate efforts were being made by them this morning to ascertain details of the proposed bill, which they understood was to be presented to congress this afternoon. Telegrams were dispatched to various state legion departments lu-ging opposition to giving "dictatorial authority regarding veterans' legislation to the president. At the house of representatives. Representative Patman (D. Tex.), proponent of veterans benefits and cash payment of the bonus, told newspapermen "we know certain cuts can be made but we want them made by the veterans .committee which has been studying the problem and knows where reductions can be made with Justice." "We are gotag to oppose any attempt to put sue ha bill through today." Patman said, "and will Insist that it be referred to a committee. We are hot gohig to stand for any act on service-connected disabilities." Patman said hp thought the entire veterans bureau could be abolished to ad\'antage. As to salary cuts for federal em­ ployes, the president sought repeal of the present furlough plan and proposed a flexible authority for himself to adjust such compensation. Hugh Slashes Coming. At the capitOI, Speaker Ralney told reporters the president expected to reduce government costs between 600 and 700 millions, if congress gives him the authority sought. As to the present billion-dollar outlay annually for veterans, Mr. Roosevelt was said to expect to reduce it over 279 million dollars; reduce salaries about 135 million, and to effect savings in reorganization^ of bureaus in excess of 200 million dollars. A bill for the new powers for the chief executive was being drafted under direction of Lewis Douglas, new director of tiie budget who resigned today as a member of the house from Arizona. Once It was ready. Senator Robhisoh of Arkansas was to sponsor it. Immediate on hearing the presidential message read the senate recessed until toniotTow to allow completion of the legislation. Boytse Htxc^iattic leaden ve- lOLA BANKS MAY BE OPEN TOMORROW : There is a possibility that lola : : banks will be open tomorrow to : : conduct business under rules : : prescribed by the federal and ; : state authorities. It was learned : : from an authoritative source late : : today following announcement : : that the 12 federal reserve banks : : in the nation will be allowed to : : do business tomorrow. : : it was said that both banks : : are not only willing but "anxious" : : to open their doors, and will do : : so at the first moment permitted : : by the authorities. : If they are opened tomorrow : : or Monday, it was expected to- : : day that they would be directed : ; to make loans secured only by : ! direct obligations of the federal : : government. All other bushiess : : would be transacted imder close : : supervision and under the strict : : regulations of the state banking : : authorities. : ranged to bind their great majority by caucus, with the aim of passing the bill by eariy next week. Senator ftoblnson told Senator McNary of Oregon, the minority leader, that President Hoosevelt would send a third message In as many days to the extra session tomorrow. He did not say what it .vouId> contain, but It is understcud It will embrace recommendation.; for a broad unemployment relief program touching Muscle Shoals, reforestation and other projects looking to. the employment of at least 500,000 men of all ages. Speaker Rainey said that President Roosevelt "believes that with the savings he can effect and the passage of the beer bill, that the budget can be balanced." Revenue of about 150 million dollars annually Is expected from the legalization of beer. The Message in Foil. ' The text of President Roosevelt's economy message follows: The nation is deeply gratified by the Immediate response given yesterday by the congress to the neces-. sity for drastic action to restore and Improve our banking sy.stem. , A like necessity exists with respect to the finances of the government itself which requires equally coiu-ageous, frank and prompt action. For three long years the federal government has been on the load toward bankruptcy. For the fiscal year 1931 the deficit was 462 million dollars. For the. fiscal year 1932 it iwas 2,472 million dollars. . For the fiscal yeex 1833 it probably will.exceed 1,200 million "dollars.. For the fiscal year 1934, basecj on the appropriation bills passed byithe' last congress and the estimated revenues the deficit will probably exceed 1 billion dollars unless immediate action is taken. Thus we shall have piled up sn accumulated deficit of 6 billion dollars. With the utmost seriousness i point out to the congress the profound effect of this fact upon our national ecpnomy, A Factor In Collapse. It has contributed to the recent collapse of our banking structure. It has accentuated the stagnation of the economic life of our people. It has added to the ranks of the un- = employed. Our government's house- Is not In order and for many reasons no effective action has been taken to restore It to order. Upon the unimpaired credit of the United States government rest the safety of deposits, the security of Insurance policies, the activity of hidustrlal enterprises, the value of our agricultural products and the availability of, employment. The credit of the United States government definitely affects these fimdamental human values. It, therefore, becomes our first concern to make securp the foundation. National recovery depends upon It. Too often in recent history liberal governments have been wrecked on rocks of loose fiscal policy. We must avoid this danger. It Is too late for a leisurely approach to this problem. We mUst not wait to act several montlis hence. The emergency is accentuated by the necessity of meeting gr^at refunding operations this spring. We must move with a direct and resolute purpose now. The members of the congress .nnd I are pledged to immediate economy. I am, therefore, assuming that you and I are in complete agreement as to the urgent necessity, and my constitutional duty Is to advise-you as to the methods for obtaining drastic retrenchment at this time. Polnthig the Way. I am not speaking to you in general terms. I am pointing out a definite road. The last congress enacted legislation relating to the reorganlatlon and elimination of executive agencies, but the economies thus to be effected are small when viewed In the light of the great deficit for the next fiscal year. They will not meet the pressing needs of oiu- credit situation. Provisions for additional saving is essential, and therefore I am asking the congress today for new legislation laying down broad principles for the granting of pensions and other veteran benefits, and giving to the executive the authority to prescribe the administrative details. U. S. BANKS TO BE OPEN TOMORROW TWELVE IN FEDERAL RESERVE TO DO BUSINESS OTHERS BY PERMISSION Treasury Takes First of Steps Necessary to End Holiday : Washington, Mar, 10. (AP)— Secretary Woodln announced today the 12 federal reserve ,, banks will be opened tomorrow. , They are directed to ' make : loans secured by direct obllga- • lions of the government and to conduct, such other business as Is necessary to make sure of the , transactlonj? by banks for ne- :. cessitiea. This is the first step in a plan for the complete reopening of - all banking institutions at once. - Washington, Mar. 10. (AP) — President Roosevelt today gave hla secretary of the treasury power to .'allow the reopening of the nation's banks under close supervision of the government and Immediately word went forward for some banks :tb resume business. In an executive order designed to speed opening of the banks, Mr. Roosevelt outlined' the procedure banks shall follow to obtain licenses from the treasury. The banks when they reopen will conduct all usual business but the restrictions prohibiting hoarding Will continue. When reopened there wIU be no restrictions on withdrawals of de- jjosits nor upon "checking accounts but treasury officials declined to set a definite day upon which a considerable number of Institutions will resume normal operations. Applications to reopen are to bo Sled with the federal reserve banks In each district by theh- member banks and, upon approval by the secretary of the treasury, the licenses will be Issued by these banks. yixat Stay Open. ; In outlining his own plans for action under the executive^ order, Secretary Woodln said It must be ascer« tiUned that banks allowed to open =would be able to remain open before yoenses were issued. ; State banks will be permitted to open after the proper state authori* ties have approved theh- applico- iions. : The executive order maintained the clamp upon the movement of gold that the president laid down In bis original banking proclamation Of five days ago. In the wake of the statements by Woodln and the executive order, Word came that new money legalis­ ed by the banking act of yesterday Was brtng I rushed to banks In dlffer- pnt sectlohs of the country to allow them to open. Secretary Woodln said after the Issuance of the order that "immediate action has been taken which will make possible the resumption of banking operations In substantial volume at a very early date." The treasury department timied over i to the department of Justice the question of what action shall bo taken against persons who have hoarded gold in the emergency. The Why of Law Against Hoards We are imanimous in upholding the duty of the goverjiment to care for those who suffer in its defense and for their widows and orphans. The application, however, of this great principle to large numbers of people Involves coinplicatlons —so great that it is almc^ impossible to draw legislation with sufflclent, flexibility to provide substantial Justice hi varying situations. i The proposed legislation states the prlndples and, limited by them', pier- (Contisaed on Page 9, CoL j2); New York. Mar. 10. (AP)—Oold~ a word almost relegated to a few lurid pages of history books, and tales of adventures, buccaneers and bad men. And noyr, in a generation which had almost given up the use of gold coin. It looms large In proclamations from the White House. (jongress enacts a measure under which a man who hoards this metal, acting merely as prudent people did in olden times to preserve their wealth, may be fined $10,000 or put In prison for 10 years. Why? ' Chiefly because the world has become so rich that it has outgrown gold as a haven and a storehouse of wealth, and must use it only as a measure of wealth. And if in the excitement, individuals try to hoard it, they take away our standard of value. As the nation's financial and business structure is now organized, it needa Its gold as much as a tailor needa his tape measure. The necessity for conserving gold has seemed particularly paradoxical in the United States, whe.n otu" monetary gold stock, as reported yesterday, was $4,243 million, or more than a third pf all the mone- tarj' gold in the world, and mw^ more than that held by any other natloii. The gold would have been niore than adequate, banking authorities expain, if it had been permitted to functjion normally. But it was being rapidly drawn out of the federal reserve banks, where it backs our currency, and put where it was no' longer useful, save to individuals. The normal minimum gold reserve for federal reserve notes, our <dilef form of currency, is 40 per cent," so each $1 of gold taken out removes the backing for $250 of currency. Kansas ]Uay Bare Hoarders. Topeka,; aiar. 10. (AP)-,Wlth Uttie debate, the house adopted today a resolution to expiose the identity of btwrdeis of curreaey.

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