Wisconsin State Journal from Madison, Wisconsin • 1

HE WEATHER Fair tonight and Saturday. 'ot much Inge in temperature. Light north ad. A Fact-finding Newspaper 141, NO. 151.

94th Year. ickirk MADISON, FRIDAY, MARCH 3, 1933 TWENTY PAGES PRICE THREE CENTS 0 The Wisconsliteite Joima I 1 JJSf MS ft Wife VM Olnllnnrfn i ii i i nuuuu 'Jap Quake, Tidal Wave? Fires Take 19 BSBLives (Li 8 Missing, Mtes KM State in Splendid Spirit after Order for 1 4-Day Holiday Homes re Wrecked Retailers Ban nd Men The Governor's Order Viisspread Blazes Follow Earthquake to Bring Day of Terror to Coast Withdrawals Restricted in 30 of States Some Institutions Defy Proclamation, Open Doors; Leaders Confident as They Shape Program to Modify Suspension Period; 700 Affected oncy Checks; Talk HolidayPlans AN EDITORIAL I takes a lot of what F. Augustus Heinze called "guts" for a governor to Mayer Madison Will Ponder Discount Order Meet Payrolls; U. W. Students Get Food BULLETIN WASHINGTON (U.R) The majority and minority leaders of the house told the United Press today that no hanking legislation of national scope wnnld be attempted In the closing hours of the "2nd congress.

nT Tnlted Pfesa Thirty states and the District By MILES W. TAUGHX Preas Stflt Correspondent! TOKIO (Saturday) An earth-ixke, followed by a tidal wave tzi flres, took a total of 1,535 lives the northern coast of the is- of Honshu, it was announced dally early today. The an- -uncement listed 338 injured and .3 missing. An, official summary gave the totals: "-Hectare Dead Injured Miss'g -ate WSO 276 Ijb1 13 25 227 'mnrl 8 -i i.r.Vkaulo. 11 BULLETIN The Wisconsin public service commission this afternoon was considering an order to utilities companies to declare an extension on discount periods on bills coming due during the bank holiday.

Lieutenant Governor Thos. J. O'Malley, Executive office, State Capitol, Madison, Wis. I have sent a proclamation declaring a 14 day moratorium.for all banks and trust companies in Wisconsin to you for your signature. This action will protect depositors and is in the public interest.

While Wisconsin is less affected than other states in banking matters the seepage of deposits indicate the advisability of this action. Before advising this step, I conferred with financial leaders of our State and counselled with the members of the Banking Eeview board including Mr. Crowley. It is their opinion that this action should be taken. I have advised with national leaders yesterday and until an early hour this morning.

We have confidence that the -Jiext few days will see this problem solved. Conference, will -continue this afternoon-and -through -Saturday here at Washington. 'I appeal to the citizens of Wisconsin to evidence that same degree of confidence that has carried them through equally trying times in the past. A. Q.

SCHMEDEMAN, Governor. Madison rolled up its sleeves this morning and went to work on the problem of keeping the city's business wheels turning at normal sneed and its citizens fed and Modification of "Wisconsin's bank holidav before it has xua clothed. its allotted 14 days was the announced goal of banking officials City officials, bankers, merchants, A grand total of 2,963 houses Sorl nwav. 1.2 79 destroyed. 211 today.

and leaders in every line of business put their heads together In numerous conferences, formulating and 6.343 inundated. Small -washed away totaled 1,533, of Columbia today had restricted withdrawal of bank deposits. Roosevelt today formally denied New York reports that he proposes to issue a statement on finances today. Wisconsin, Utah, Washington, New Mexico and Georgia joined the states with special banking holidays during the jught after Idaho, had declared 'IS-aay moratorium Thursday. Kentucky Holiday Extended Kentucky's bank holiday, scheduled to end Saturday, was extended plans te -carry Ma cUson thrnsgbt 5 others damaged.

nr-i fttico nf Tokio and YokO' Tood stores were endeavoring to shaken violently, and plan systems whereby credit might be extended customers in whose great crowds, fearing a repetition of th. 1923 earthquake, swarmed through the streets In hysterical paying ability they have confidence. Safety Deposit excitement. until March 11 by executive order. Boxes Remain Open In Maryland the legislature passed on second reading an emergency Holiday Proclamation All Madison banks were patrons to have access to their bill authorizing the state banking commissioner to regulate bank withdrawals and assume manage safety deposit boxes but were ment of banks when necessary, closed to all other sorts of bust ness.

Madison retail merchants tem without closing them. When it porarily will not accept checks in payment of accounts or for cash close every bank in his state for 14 days. The Wisconsin State Journal believes Wisconsin is fortunate because Governor Schmedeman and his associates had that intestinal stamina. Economics is based on a partnership between men and money Men represent energy and initiative. Money represents the means and the" tools of industry.

Economic prosperity is based absolutely upon this. partnership, of and Tnoney, but thefiT'ean be no economic prosperity unless men and money both are working. While we have a thing known as the "strike," almost invariably widespread lack of economic prosperity comes when money "strikes" ceases to work. That's the situation in Wisconsin, in America, and in most of the world today. Money has "struck." Men and women have a certain cowardice, and that cowardice is translated to their treatment of money.

And when man's cowardice is translated to his treatment of money, money "strikes." Every unemployed man in Wisconsin wants to work today, is eager to work. He can't work, because money is hiding out. Money is on "strike." There is more money, more resource, more product, more labor which means energy in the United States today, than in any previous time in its history. Still, we are paralyzed because money is sequestered. Money isn't an edible, one can't wear it, we call it a "medium of exchange," but the fact is that money is man's tool, and in the modern, complex, scientific organization of society, man can't function without his tools.

And so today men are seeking jobs which no one can give passes its third reading, as it is expected to do today, Maryland'a bank holiday will be ended. Bankers and financial authorities The holiday proclamation w.as issued early this morning br Lt.GoY. O'Malley at the order of Gov. Schmedeman who is'at Washington to attend the Roosevelt inaugural. "We hope to effect a plan to open the banks within three or four days and to allow withdrawals in whole or at least 1 in part," Arthur C.

Kingston, banking commissioner, said. Kingston and members of the banking review board were meeting in a closed session this afternoon. "We are trying to perfect a plan that will make the situation better for business and particularly to enable employers to meet their payrolls." Walter Kasten. president of the First Wisconsin National bank, said. "I doubt whether the holiday, will last two weeks." Keep Confidence, Plea Godfrey W.

Augustyn, president of the Marine National Exchange bank, said he was "sure some adjustment will be made before the end of two weeks." "This is a national affair, not a local one," Augustyn said. "It is a situation brought about by the people themselves one trying to withdraw his money to the detriment of the other and because of this some step had to be taken to stop it. There is nothing to worry about. People must keep their confidence in the banks." Not a Business Holiday The holiday does not apply to business in general but only to banking, according to an opinion today by Atty. Gen.

Finnegan. "While the proclamation declares that 'each and all of the days beginning Friday, Mar. 3, and ending at midnight on purchases because the practice would create expense, and confus met Thursday night in Washington ion for everyone concerned, they and New York discussing measures to prevent the heavy withdrawal of cash from states which have not declared moratoria into those which have. Comments Withheld No statements indicating possi ble action were made. It appearing that because of the moratoriums declared in other states, rumors have been, and are being circulated as to the stability of banks within the State of Wisconsin which have resulted in large withdrawals from many of the banks in the state, and it appearing that a similar situation exists in many other states and that substantial part of said withdrawals are not for use in commerce but are being placed in safe deposit boxes or otherwise hoarded and thus withdrawn from legitimate business purposes, and it further appearing that such unwarranted withdrawals if allowed to continue will prejudicially affect the depositors and creditors of all banks in this state and the community at large and the Banking Review board having determined that an emergency exists in the affairs of all banks in this state which if allowed to continue will adversely affect the depositors and creditors of all of such banks and has directed that all banks be closed for a period of 14 days to-wit: From and including Friday, March 3, to and including Thursday, March 16, 1933, in which determination and direction I unhesitatingly concur.

Now therefore, Thomas J. O'Malley, acting Financiers offered no comments Electric lights failed in Yokohama, but little damage was reported. The modern industrial cities of Kobe and Osaka escaped seri-'iis damage. Towns, Homes Engulfed One of the hardest hit towns Kamaishi, 300 miles northeast Tokio, in the Iwate prefecture. 9 than 1,000 of the flimsy, bam- and paper constructed houses a swept away there by tbeti-C 1 wave, and 3,000 more were de-ttrcyed bv fire that broke out to ccr.irlete the destruction, to police reports.

T. tidal wave engulfed the of Minanogoway in the Mi-yiti prefecture, where 1,246 houses vri. i reported under water. S. Envoy Escapes A'-I telegraph and telephone lines norti of Sendai, Oomorl and Hakodate were down, and officials cf the Japanese home office said at leasA 500 houses had been istroyed in those towns, either ty tie earthquake or tidal wave, r- li the destructive Are that fol- Clark Grew, American esador to Tokio, was visiting jranoshita, north of Tokio, his family.

The effects of the were slight in that vi- damage to shipping was ted. The tidal wave swept boats at the port of Miyako, acores of fishing boats were at Fukishima. on the proposal of William G. Mc-Adoo that the New York stock exchange be closed temporarily. Exchanges in California were closed Thursday after a bank holiday had decided this morning when the merchants' bureau of the Association of Commerce held a meeting to discuss the banking holiday.

C. W. Anderes, bureau chairman, presided. Michigan merchants, it was announced, found acceptance of checks caused confusion when a similar situation existed in that state about two weeks ago. In event a bank later is placed on a waiver plan, they said, the checks directed to it must be recalled and new ones issued.

Committee Named Checks which were in the mail and intended for payment of last month's accounts will be held in abeyance by the merchants, it was decided, until some settlement is made by the state banking department. Receipts of the checks will be acknowledged. After much discussion among the 200 merchants who attended the been declared there. Washington reports indicated there was little change of emerg ency legislation to protect banks being jammed through before the new administration takes over af fairs Saturday. President Hoover What Bank Holiday Means Afo money can he withdrawn from deposits in Checks cannot be written against hank deposits; Creditors temporarily will he unable to collect debts; Cash or credit must be used for all purchases; Safety deposit boxes may be visited a usual.

(Continued on page 5 column 6) H.Cummings Gets Walsh Thursday, Mar. 16. 1933, are legal holidays. such declaration Cabinet Post meeting, a committee was named to work out details of merchant cooperation and report to another meeting at 11 a. m.

next Tuesday. W. H. Hommel was appointed chairman of the group which in inese Quake prded Here cludes Milton B. Findorff, Joe Jananese earthquake was (Continued on page 4 column 1) WASHINGTON (U.R) The temporary appointment of Homer Cummings, Connecticut, to be attorney general was announced today by Roosevelt.

governor of the State of Wisconsin do hereby declare that each and all of the days beginning Friday, March 3, and ending at midnight on Thursday, March 16, 1933, are legal holidays and that during said period and on each of said days all banks in this state shall be closed. This order and direction is subject to rescission or modification whenever I determine that said emergency no longer exists. TESTIMONY WHEREOF, I have hereunto set my hand and caused the Great Seal of the State of Wisconsin to be affixed. Done at the Capitol, in the City of Madison, this second day of March, in the year of Our Lord, one thousand and nine hundred and thirty-three. THOMAS J.

O'MALLEY, Acting Governor. Mr. Madison Shakes Baby's Bank; Students Exchange Food for Food 'ded here as the heaviest shock ttted by the University of Wis- Bankers Here seismograph since its in-Ition about two -years ago. Cummings will fill the vacancy caused by the death of Sen. Thomas rector Joseph A.

Sharpe said Confidentandl J. Walsh, attorney general aesig nate. Plan State Funeral iisturbance began at 11:31 a. -sday and lasted for iV hours, maximum swing of the record-light beam was six inches. Eager to Open I had estimated the distance of Jisturbance as 5,800 miles, would bring it about 400 I north of Tokio and in the a near the island.

for Walsh Monday Body to Be Sent to Helena Confidence in the stability of Madison's banks and surprise at the moratorium were expressed to is followed by qualifying language to the effect that 'and that during said period and on each of said days all banks in this state shall be closed'," the attorney general stated. Only Banks Affected "Preceding the declaration part of the proclamation is statement giving the reasons for the proclamation and it is clear from that that the purpose was only that banking institutions be closed for the period declared as legal holidays. "That such is the purpose of the proclamation is also evidenced by the communication from the governor to the acting" governor in which, amonp other things, it is stated that the governor has sent to the acting governor for his signature 'a proclamation declaring a 14-day moratorium for all banks and trust companies in Spirit Splendid Theodore G. Lewis, executive secretary, was in conference with Gov. Schmedeman this morning over long distance telephone to Washington.

He informed Schmedeman that the people of the state are accepting the moratorium with splendid spirit. Bank representatives from various parts of the state, who were called by Lewis, confirmed his view. "The holiday order means the complete shutdown of all banks in the state," Kasten pointed out in his statement, "We have no alternative. We must stop right where we are. However, we will commence immediately to shape our program for reopening." Action Protects Depositors All the banks were placed on a holiday through a proclamation issued by Acting Gov.

Thomas J. O'Malley at the request of Gov. Schmedeman. The holiday began this morning'and is to extend until midnight Thursday, March 16. The action was taken as a protection of the depositors of the banks, and was occasioned by the heavy withdrawals which have been going on in all parts of the state during the last few days.

day by bankers here as they an nounced compliance with the gov for Burial 1 hursday them because the tools necessary to perform the job (money) is unavailable. There had to be an end to this downward swing in which we have scraped the bottom phases of man's incapability. God doesn't make the mistakes, man makes them. The world has a cornucopia of wealth today, unavailable because man has put his tools away and locked the door. The Wisconsin State Journal welcomes the action of Governor Schmedeman.

We had to reach and pass a climax. Fear is a fugitive. It ran away with small sums and more small sums and larger sums. They went into safety deposit boxes, socks, and ticks. They went into postal savings, because somehow in America we do believe in the integrity, if not always in the ability of government.

And this seepage of the arterial blood of economic life has kept on until we have reached a stage where some arresting hand must be placed on the situation. Governor Schmedeman's declaration that recent withdrawals from banks is not money to be devoted as the tools of industry to the economic prosperity of the tountry, but scared money going into hiding, is unquestionably true. And so the governor chose the dictatorial road to a stoppage of this profitless outgo. In doing so, he has not cost any citizen, any depositor a dollar. Probably- he has saved them vast His means is not a cure-all but it is a step in the right direc- (Continued on page 4 column 6) ernor's order.

Some of them ex pressed eagerness to resume busi WASHINGTON U.R) A state funeral, to be held at the capitol ness. Statements of some of them fol next Monday, was planned today for Sen. Thomas J. Walsh. Memhers of the late senator's low: FIRST NATIONAL, T.

K. Hefty, family said the body would be sent president In compliance with the proclamation of the governmental to Helena, for Dunai, pron authorities closing all Wisconsin ment with a few rural students at the University of Wisconsin. Students were to arrange in advance to exchange pork loins, chickens, and eggs for meal coupon books. Banks were busy explaining to telephoning patrons that when a bank is not doing business checks cannot be cashed there, and perhaps not at stores either. About 25 traveling salesmen today discovered that they hadn't enough cash to buy rail tickets.

On second thought, one of them remarked that he might as well stay here because there probably "wouldn't be much doing" in the town for which he was headed. Newsboys this noon were still asking "cash." though one of them admitted he "might Brother, can you spare a dime cash money? It suddenly became the vogue this morning in Madison to probe the vase on the clock shelf with hopeful fingers, paw frantically through old clothes and even shake the baby's bank meditatively as Mr. and Mrs. John J. Citizen counted their money and eyed the calendar.

For some the 14-day holiday loomed merely as an amusing predicament until they could arrange to get an advance of cash from a friend or out of a firm's cash box. For others the suspension was more ous. Gasoline stations in some cases were still accepting small checks this morning and extending credit to familiar customers. One restaurant, Frank's at 821 University was planning a limited barter arrange ty Registration pses Saturday Registration for the primary Ction, March 14, will close in I office of City Clerk John W. hning at 5 p.

m. Saturday, rsons not registered will be able to vote unless they pre-lt affidavits signed by two holders. Mr. Fahning sug-Its that all those anes are not on the registry have it placed there at ie. All persons who have bene of age since the last elec-a must register and those have moved into another tcinct are also required to the change of their ad-sses to the city clerk.

Mr. Wing has re-arranged the istry lists according to the ndary lines of the new ds. banks, the First National bank of Madison, and the Central Wisconsin Trust Co. are not open for the transaction of business. The public is advised that pend ing further direction of the public authorities, the bank and trust company are not permitted to -lor- ably next Thursday.

Final services will be held in the Helena cathedral. A. R. Graham Improves After Blood Transfusion Condition of A. R.

Graham, director of the Madison vocational school, who was taken ill while attending the National Education assn. convention in Minneapolis, was reported somewhat improved today after. a blood transfusion at the Methodist hospital Thursday. He was brought home to Madison-and taken to the hospital by Supt. W.

Bardwell Wednesday night. transact any banking business whatsoever. Arrangements have been made to provide access to the safetv deposit vaults. COMMERCIAL STATE BANK, 0, Pannack, president We are in accord with this movement. It $600,000 Relief Fund Tied Up About $600,000 in state relief funds are tied up as a result of the moratorium, it was revealed this morning at the indusi (Continued on page 4 column S) Continued on page 4, column on page 4 column 8) 5 'I.