The Wichita Eagle from Wichita, Kansas on March 10, 1933 · 1
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The Wichita Eagle from Wichita, Kansas · 1

Wichita, Kansas
Issue Date:
Friday, March 10, 1933
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"7" ’ I- V ‘ v fV'Kb v'” ‘ M r ' ’'If‘'J -fc 4r--i '? ' I ' ' 1 ‘ V: ' ' 1 ! : - : i :: 1 :' ’ 1 V$fe ' I f 'iUfe '' : f t ’ A 1 1-i S- T-S i k 25930 Electric Meters Tb f uoBkr -- mt jfcsMcnt Icetrivcttrs la mehlte toiuiittH UM aiunker at fcnpM borne Xt U ttfluttd ii 1U at tha Wichita homes lULHsctno aitni do hot take a newspaper TheVEsgle Circulation Covers -I Ue- City like s ' Blanket Character Endures The Basle Circulation Ukc Olbraltar stands Finn Our friends remain ion) and constant reading k supportlns thp paper of their choice Orer 85 So of the Wichita homes takinr n newspaper read The Wichita Eagle I j ' i- ‘ "- f 4 - ' VOLUME XCV Prices In the City 3c Outside City 5c WICHITA KANSAS FRIDAY MORNING MARCH 10 1933 TEN PAGES NUMBER 78 Yr-? f ' iK - i: r M-- - i V h" ft'- LJ 4‘ a ik ' IV: - i iS-l- " n ! h - A: feu i-l i ii’ — ! Henrys Outclass Wangling: Wes! Texas Teachers to Enter Semi-finals :a- PLAY TULSANS TONIGHT Chicagoans Down Pasadena Majors Stage Unas i i Ilosa Out Hutchinson ft ’ ' i 'I J : KANSAS CITY March 9 -f (AP) — j An all-Midwest semi-final battle between ' three members -of the Mia-souri Valley A' A U league and the Rosenberg-Arvey team oPChicago was assured as (he result of quarter-final play of the National A A ' U basketball tournament here tonight The ilast chance of a "foreign” rquad 1 to achieve championship heights went glimmering in the last of the night's clashes when the Rosenberg-Arvey aggregation won J handily from the Pasadena Cal - Major 34 to 28: Other victories were' chalked up it 'for Use Wichita Kan Henrys three-A time-defending champions the Tulsa OUa Diamond Oilers and the Southern Kansas Stage Lines of Kansas City The' Henrys took the measure of the gangling West Texas Teachers '(k 37 to 17 thd Tulsa team experienced 'lt ‘SUghfe difficulty with Phillips unl-I fj-'-versity of Rnid Okla and won 30 : to ' 17 and the Southern Kansas Stage Lines uncorked a rousing last Half rally to dispose of the Hutch inson Kan Renos 23 to 18 vjY - Th HenryS faever were pressed in y y ousting the West Texas team In the ' quarter-final round tonight They by 20 to 9 at the end of the first the champions -offset the height advapta of the Texans 'with a (Continued on Page 6 bdlumn 11 ' LAST GERMAN SfATE SURRENDERS TO RULE Of FASCISTS' REGIME Bavaria’s Government Resigns to -Make Way for Nazi Officials Threat of ' Revolt Evaporates BERLIN March 9— Oft— Bavaria 'Vi’-'the last antl-rlfad strdnghold in Germany capitulated tbdayr giving the National Socialists of Chancellor Adolf Hitler control of all 'German Hi states X ' Ocn FTanz voxy Epp prominexxt In ' If ad circles flew from Berlin this afternoon after appointment as fi 'federal commissioner for the state V and immediately’ assumed office ' At once ftlie Bavarian government hearted by Premier Held resigned: and the diet was summoned to meet Saturday for the election of a new state government General Yon Epp assumed office at the request of Premier Held’s government thereby making it unnecessary for him to present federal credentials Threaten Revolt Previously the state government had threatened to resist forcibly any attempts at usurpation of police Vwers in the territory Thli was the reason for the general’s trip by plane for he hoped to guard against the' possibility of arrest at the Bavarian frontier Earlier Dr Wilhelm Frick min-Istemf interior ihad appointed federal police commissioners all National Socialist followers for Wuqrttemfcerg Saxony Baden and Schaumburg-Llppe Only a few hours before the cap-the Bavarian state Ernst Roehm Nazi chief had demanded of his party that b V itulatlon of government vi stprm in the I Premier Held resign Anti-Semitic Feeling Grows ' The antl-Seixiitic campaign ap-l peared to be growing today spread- tag to Berlin Kassel and other cililes AU the Jewish merchants In An-- naberg aa well as a number of ’ Socialist and Communist leaders 't- were arrested by Nazi storm troop- ’ers The number included the man-f - ago: of an electric company - National Socialists gathered before r -a large department store In Berlin : and chanted in unison "Don't buy i from Jews!” and another group appeared before the boerse building and demanded the resignation of a Y Jew who is ’ the chairman of the boerse executive committee GARDEII tlTY' ISSUES VS SCRIP OH UTILITIES ‘lijaABDnr errv -search -J City commissioners here today or- dered MJOOO In municipal utilities certificates Issued and will pay city employes and local bills In cer tlflcates redeemable In the paymen of water light and electric powC -‘bills - - : r Thr city ooUects about 8006 - ? monthly in utility bills and officials believe the certificates win hands rapidly Local bankers chants And professional men- haj agreed to accept the certificates par value j Tbey win be issued denominations of $1 and $5 Favors Extermination CARSON CITY NEV March S-(AP)— While Reno has depended' on divorce for prosperity Us mayor has looked toward marriage as a possible escape from "starvation” Assemblyman IUrry Dnnseath todays asked unanimous consent to Introduce a bill uonsored by E L Roberts Renow mayor to permit mayors to perform marriage “I’ve got to have something like this or IB starve" the mayor Was quoted ” ‘ “I object" promptly interrupted Earnest Brown also of Rno "Let the mayor starve" The bill was not Introduced T AX PLAN Kansas Senate and House Will Seek Compromise on Bill in Conference RATES DIFFER WIDELY Upper Chamber Approves Proposal for Half per Cent Levy on Safes TOPEKA March 9— (AP)— The senate approved tonight after lengthy discussion and considerable amendment a fees and salaries committee bill which provides redactions in salaries of county officers on a scale generally ranging from 5 to 17 per cent : As approved the bill is subject to further amendment and debate when it comes up for third reading tomorrow If passed the measure will go to the house TOPEKA f March 9 — (AP)— The proposal for enactment of a graduated state income tax law appar-L ently was headed tonighti to a conference committee for an ironing out of ferences between the house £ o1” and senate over rate sched- ules and the question of allowing a property tax off - V N Chairman Morse (R) of the house assessment and taxation committee said he would ask the hekise to nonconcur In Senate amendments apd to send the bill to conference As passed by the house the bill proposed a schedule of fates for individual nietr Incomes ranging from 2 to 6 per cent and : a flat 3 per cent rate on corporation net incomes The senate however substituted a 2 per cent rate for corporations and an individual income schedule ranging from 1 to 5 per cent In another amendment the senate! provided a'1 taxpayer could deduct! from his income tax taxes paid onT his homestead j thousands Attend Burial Opinion was expressed by Chair- i man Coffman (R) of the senate' assessment and taxation committee (Continued on Page 10 column 3) R F C AUTHORIZES $1112000 RELIEF WASHINGTON March 9 The Reconstruction corporation late today authorized seven emergency relief loans totaling more than 1112£00 for use during March and ApriL The loans were divided as follows: Iowa $82990 for nine political subdivisions North Dakota 231079 for j lisp in 23 counties Montana 4400 for use in Teton county West Virginia 45504 for Gilmer and Webster counties Georgia 79712 for Use in six counties Missouri $29740 for seven political subdivisions and Washington $639-250 for use in 17 counties Wrote1 Ransom Hotes DENVER police said Carl w Pearce 36 (above) confessed writing an the ransom potes sent to the millionaire father !of Charles Boettcher n wealthy young broker who was kidnaped for $60 000 ransom Pearce was one of six person held on federal charges In the cas&— Associated Press Photo InllLl SEEK i2 Roosevelt Yill Wield Ax on Vets’ Compensation and Federaf Salaries TACKLES JOB RELIEF Will Ask $500000000 Bond Issue to Employ Half Million Men WASHINGTON March 10 — (Friday) — (AP) — President Roosevelt will ask congress today for blanket authority to wipe a half billion dollars from the federal budget in cuts in veterans’ compensation and salaries Tomorrow (Saturday) he probably will lay before the new congress a proposal for a 500000000 bond issue to be spent in employing ap-t proxixnately 500000 men in reforestation flood control power development and vast internal improve-1 ments Astonished congressional leaders were kept at the White House until after midnight last night listening to the far-reaching program and talking it over General support was Indicated but no general agreement was sought or reached Proposals Urgent The president showing no signs of weariness from his strenuous days issued no statement Jsut made it known that he regarded the two new legislative proposals as urgent He also believed splendid progress was made last night The bill to go before congress at noon today puts the authority inj the hands of Mr Roosevelt to make' the reductions he contemplates There are limitations however The salary reductions Tor government workers and officers are to be based on the cost of living standard The cuts may not exceed a total of 15 per cent That total Is to include the existing pay cut of about 8 1-3 per cent However the system are wiped out entirely and a “new deal” is due on salaries Limit Pay to Service Disabled As for the veterans it is to berRoosevelt at Bayfront park here siipulated that persons entitled to pensions or compensation are to be (those whose ffiS&MIttv originated those whose disability originated while in service For veterans now receiving compensation for disability not originating in service only the permanent and totally disabled are to be con - tinued on the present! basis HELENA MONT March 9— (iP) —In a little valley emerging from historic Last Chance gulch and stretching before white-topped mountains United States Sen Thomas J Walsh was buried here today Thousands who had followed his climb from the humble beginning as a young lawyer to outstanding fcank in the bar of the nation and through a sccre of years as senator paid horn age to his memory in St Helena cathedral and about the state's cap-itol today The body arrived here by train early this morning from the national capital It was taken to the capltol to lie in state From the state building it was removed to the cathedral for solemn requiem mass celebrated by the Rev James G Tougas pastor of the St Helena parish for absolution by Bishop Edwin V O’Hara of Great Falls and a eulogy by the senator’s old friend Monsignor Vic tor Day administrator of the Helena diocese During the services hundreds of citizens unable to gain admission clustered on the terraces and side walks surrounding the cathedrals As the throngs pressed toward the street the body was taken to Its final resting place in Resurrection cemetery there to lie beside the body of the senator’s first wife Elinor McClements Walsh who died in 1917 GETS LIFE FOR MURDER OF WIFE TWO CHILDREH I KINGFISHER OKLA March 9 — (JP) — Life imprisonment for slaying Ills family of three confronted H a Wheeler young Roxana farmer tonight A Jury convicted Wheeler of killing his 23-year-old wife whom the state alleged he married against his wUl and their two children Naomi 3 and Louis 1 The bodies their skulls crushed were found in the ruins of their home destroyed by fire last fall PASS MORTGAGE HOLIDAY SACRAMENTO CAL March 9— (jp) — The state legislature passed an urgency bill today providing for a 60 day moratorium on foreclosures of mortgages and trust deeds on homes and farms It becomes effective as soon as signed by Gov James Rolph Jr THE EDITOR SPEAKING: Briefly this is what happened in Washington yesterday: The currency is to be expanded with Uncle Sam watching the gauge to see to it that the pressure does not get too high EMERGENCY BANK BILL IN BRIEF WASHINGTON March 9-A— Here are the emergency banking bill’s principal provisions: TITLE ONE Approves and confirms all previous proclamations and orders of President Roosevelt and Secretary Woodin Invests in President Roosevelt and makes applicable to peacetime emergencies the tremendous World war powers of regulation over transactions In credit currency gold and silver Including foreign exchange Maximum penalties for violators are 10000 fine and 10 years Imprisonment Empowers Secretary Woodin to require delivery at the treasury of all gold and gold certificates held by anybody in the country Authorizes President Roosevelt without Invoking the war powers to fix restrictions on the banking business of federal reserve members TITLE TWO Authorizes the comptroller of the currency to appoint a conservator for any national bank or District of Columbia bank whenever he considers It necessary to conserve the bank’s assets Enables the conservator t5 set aside for withdrawal by depositors on a rateable basis snch amounts as the comptroller says may be used so safely Permits the comptroller to allow banks under conservators to receive new deposits which would be segregated and subject to withdrawal without restriction Permits the reorganization of national banks upon the approval JUDGE MUST DECIDE ZANGARA’S PENALTY FOR CERMAK DEATH r - - i n - ian mete Uut Lleatn or Life Imprisonment Today As-i sassin Beams During Plea1 r ° of Guilty MIAMI FLA March 9— &-Giuseppej Zangara pleaded guilty today tof charges of murdering Mayor Aiton J Cermak of Chicago In his pldt to assassinate President February 15 Circuit j Judge UlyO Thompson said he would pronounce sentence tomorrow Under Florida law the Italian-born briclfiayer must either be sentenced to! die in the electric chair 'or to life imprisonment the latter depending! on the judge's decision Zangara) apparently childishly pleased by the publicity he has received sin) his attempt to kill the president resulted in the fatal shoot-! ing of Bgsyor Cermak and the! wounding of four other persons sat contentedly through the hearing today except for the time he was on the witness stand Brags of Deed i ‘I want1 to kill all presidents and kings” hei reiterated in response to questions jof Judge Thompson and from his attorney and State's Attorney N I Vernon Hawthorne He tried) to tell his life story from the Witness chair “I try tp get the head man” he ers and Ewell Brookshire will plead guilty March 14 the date set for formal sentencing of Hinkle County Attorney Clarence Bowie said Pete Baxter another man charged has never been apprehended Homer Bramble still another charged escaped Three others held for a time as accessories in the robbery Robert Ethridge Claude Roberts and Floyd Garrett turned state's evidence Former Murray Partner Ethridge and Roberts testified in Hinkle's trial that the" defendant formerly a law partner :at Lindsay of Col Cicero Murray npw oil field proration officer at Oklahoma City met with them in the home of Moman Pruiett Oklahoma City attorney shortly before the bank was robbed and planned the robbery Corporation Commissioners! Their testimony was to the effect Order Reduction in 26 that Pruiett and Hinkle were to fur’ (Communities OKLAHOMA CITY March 9— (Jf) — Sharp cats in gas rates in 26 communities Served by the Lone Star Gas company and Its distributing subsidiary the Community Natural Gas company were ordered today by the Oklahoma corporation commission Effective today the Lone Star was directed to reduce its gate rate on gas famished the Community Natural Gas company from 40 cents to 30 cent per 1000 cubic feet and the ten pr cent reduction was ordered passed along to domestic consumers The orders were signed by Chairman Paul Walker an Commissioner Jack Waltion Comjnissioner E R JACK WAJQODa vOtuuilSSlOZjcr ! ' Hughes tljie Republican member rf the regulatory body did not sign them ! The commission found that the $150 change for the first 14)00 cubic feet of domestic gas consumed was: discriminatory and ruled it should be Reduced to 75 cents The company Was given until April 1 to comply with this change Walker iald the gate rate reduction the 'bumertip reduction and the discount ruling should make an average rate per 14)00 cubic feet to the consumers affected of 58 Vi cents Towns stared are Hollis Walters Elmore City Durant Hugo Frederick Marietta Manitou Maysvllle Mountain (Park Paoll Pauls Valley Purcell Ryan Snyder Sulphur Tip-ton Waurlka Achille Caddo Davidson Davisi Hastings Loco Wayne and Wynnewood The Weather KANSAS— tGeneraDy fair not quite so cold 1 west and north central Friday Saturday nnsft-somewhat wanner OKLAHOMA— Generally fair Friday and Saturday of the comptroller and as the case may be either of depositors of 15 per cent of total deposits or holders of two-thirds the outstanding capital stock or both TITLE THREE Provides for the issuance of preferred stock by national banks and for the purchase of preferred stock of national banks and of state banks and for loans upon the security of snch stock by the Reconstruction corporation whenever Secretary Woodin with the approval of President Roosevelt considers it necessary to 1 supply funds for the organization or reorganization of snch banka TITLE FOUR Authorizes the issuance of Federal Reserve bank notes "redeemable in lawful money of the United States" They would be issued to the value of 100 per cent of government obligations deposited as security and to the value of 90 per cent of the notes drafts bills of exchange and bankers' acceptances deposited as security Permits Federal Reserve banks to make bank note advances to member banks on time or demand notes secured to the satisfaction of the reserve bank but not ordinarily eligible This section has a maximum time limit of March 3 1935 Authorizes Federal Reserve banks to make 90-day bank note advances to any Individual partnership or corporation on promissory notes secured by federal obligations TITLE FIVE Appropriates $2000000 for expenses in carrying out the act CONVICT LAWYER AS “BRAINS” OF BANK THUG GANG T - WASHINGTON March 10 — (Fri- Henry Hinkle Jr Formerly) — (pi — Secretary Woodin in a Law Partner of Cicerostatcment today said It would Murray Given 20 Years th 'lle of the treasury to r i 0® ine P°ucy Pl in“ treasury w for Lindsay Robbery r on Senator Carter-Glass of Virginia 'steps to secure information through PAULS VALLEY OKLA March oPmake aBDlSaUon fo? reopening who helPed moId the measure told proper authorities u to the condi-9 — £) — Accused as the “brains” of i reEmTsaid th treasury 'newspapermen upon leaving the ex-jtion of the various banks ’Of the the gang of robbers that looted theL- -tf ecutive mansion shortly after mid- country and immediately invites National Oant or Untaay and fo aatotho tat uSTwa rouSd tta compel0 “ mny tat' banks “L'H2“kSSSi“-!!225 tlon of asaembllng Uu Information of actlon' PrKad'nt Bocrt as the man who robbed three men in Oklahoma City Henry Hinkle Jr was convicted by a district court jury today and sentenced to 20 years in state’s prison He was the second man convicted in the robbery which occurred late last year approximately 18000 being taken by six men who escaped in an automobile leaving a trail of nails that led to their apprehension by the Garvin county sheriff's force Buster Murphy was convicted three weeks ago and given a 15-year sentence Trio to Plead Guilty Three others charged in the rob- £ 2SVES Islanders May Need Months to Wipe Out Chinese Remnants Near Great Wall CHINCHOW MANC H U R I A March 9 — OP)— Victorious in its invasion of Jehol whose capital it now holds the Japanese army has turned to the task of driving out the remnants of China’s defenders along the Great wall This may require several months as it did in Manchuria but a general attack has been ordered 'for tomorrow Meantime reports of scattered engagements continue There was a battle yesterday south ojf Lingyuan and another in the vicinity of Wukungfu General Hat-tori’s infantry was reported to have seized the two passes through the wall at Fanchlakow and Lengkow Chinese at Kupeikow farther west were reported to have attempted unsuccessfully to recapture CHICAGO March 9— OF) — Can- the pass there solidation of the First National bank Jehol City deserted by all but its ish two automobiles for the robbery While the alleged robber gang were in Oklahoma City Hinkle was arrested on ho$lUp charges which still are pending Bowie and Pruiett would not be detained evidence being insufficient A C Vansickle of Oklahoma City and two other alleged holdup victims testifying here identified Hinkle as one of the men who victimized them i PiwmI 1 Tw inn Twitat jD Q FrlJUP"°? JTrufl & Savin and the First Union Trust 8c Savings bank of Chicago its state bank affiliate was announced tonight by Melvin A Traylor president' r Assets of the First Natlonsl Chicago's second largest financial institution were increased to 700-000000 by the move Traylor said the consolidation was "in view of recent developments andj — the prospect that banks which ere DltftfIF members of the Federal Reserv- ItlUrtUUUR System may enjoy wider privileges" The First National assumed all deposit liabilities including savings accounts of its affiliate The announcement by Traylor said federal and state authority had been received and that the Fir 1 Union Trust 8e Savings bank will continue its trust business BOTTLING AUTHORITY DIES KANSAS CITY March 9— VP)— Charles M Settler president of a bottling company and considered an authority on the industry died here today at his home Roosevelt Proclamation WASHINGTON March 9j— (AP)— The full text of the proclamation issued tonight by President Roosevelt follows: 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 bank holiday extending from Monday the 6th day of March 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 March 9 1933 all proclamations heretofore or hereafter issued by the president pursuant to the authority conferred by section 5 (B) of the act of October 6 1917 as amended are approved and confirmed and Whereas said national emergency still continues and It is necessary to take further measures extending beyond March 9 1933 Bln order to accomplish such purposes: Now therefore I Franklin D Roosevelt president of the United States of America In view of such continuing national emergency and by virtue of the authority vested in me by section 5(B) of the act of October 6 1917 (to Stat L 411) as amended by the act of March 9 1933 do hereby proclaim order direct and declare that all the terms and provisions of said proclamation of March 6 1933 and the regulations and orders issued thereunder are herqpy continued In full force and effect until further proclamation by the president INITIAL REOPENINGS OF BANKS ARE SET FOR THIS SATURDAY Secretary Woodin Invites Institutions to Make Application Inquiries Nearing Completion open sound banks of the country as and of arrangements for the banks to resume their functions would take some time It was therefore decided he said not to authorize! any reopenings before Saturday March 11 He said regulations governing re-1 openings and other' subjects governed by the emergency banking legislation would be published immediately The statement of the secretary issued early this morning said: “The emergency banking legisla- tta paased 'by’ the congrem today (Thursday) 1? a most constructive step toward the solution of the fi nancial and banking difficulties which have confronted the country The extraordinary rapidity with which this legislation was enacted by the congress heartens and encourages the country f “This legislation maxes possible the opening of banks upon a sound basis backed by an adequate supply of currency Through this last the (Continued on Page 10 column 4) JAPS OPEN ARDUOUS Rl FANIIP R A MPA IRM ULLnllUl unllll nIUll old men and children Is completely in the hands of the army Administrative officials from Manchuria already have taken ovCr the functions of government a!nd the city walls are plastered with pasters proclaiming the government of Man-chukuo under the protection of Japan to be a paradise on earth IS SPEAKER Editor of The Eagle Addresses Women’s Club at Oklahoma City OKLAHOMA CITY March 9— Victor Murdock of Wichita -made the chief address here tonight at the banquet given by the Town Club in celebration of the National Business Women's Week An elaborate musical program preceded the speakers who were besides Mr Murdock Mr J F Owens Mr W M Harrison and Mrs Jewel Chapman Mrs CrelghtorJu Brown Burnham was toastmlstres& The dinner took place in the Hotel Hiltniare TO OPEN SOOti llElDEEt PLAN Federal Officials Rush Preparation for Resumption of Functions After Congress Passes and Roose- ’ veil Signs Financial Measure in Record Time H0LI0AY EXTEHDEMS RETAILS ARE IROIIED OUT House Shouts Unanimous Approval of Legislation hot Senate Approves Proposal Only After Brief 1 1 but Bitter Fight by Vote of 73 to 7 WASHINGTON March 10 — Friday) — (AP) — An extension of the national banking holiday- “until further proclamation” — a move designed to rally the nations sound banks for opening — was in force today at President Roosevelt’s command as he wielded the extraordinary one-day-old emergency powers granted him banking act i Secretary Woodin as he left the White House early this morning announced the treasures policy would b' "to permit as rapidly as possible the 'opening of sound banks” The banks he added will be invited to apply for permission to reopen In order to insure that all banks upon opening "will be placed in a position to meet all demands” he said it has been decided by the administration “not to authorize any: reopening before Satirday' March 11 To Expand Currency The treasury secretary’s words climaxed a day and night in which one swift development followed an- under posslble to “come to the shelter of the federal reserve” It would allow also the determination of how many banks should be reopened 1 Studies Banks Woodin a short while later announced the treasury already had ascertained the condition of a great number of banks throughout the country and had Invited them to make application to reopen In some quarters this1 was Interpreted as meaning that banks would be reopened only as they made specific application to the treasury “This legislation (the emergency banking act) Woodin said "makes other in a tumultuous succession possible the opening of banks upon Even as President Roosevelt signed a basis backed by an adequate sup- his holiday-extending proclamation at 10:10 p m last nighti huge preparations' went forward to put into effect the currency expansion proviso of the new emergency banking act The bill was rushed through con- gress within eight hours after the chief executive had called for action in a special message — and signed by him at 8:36 p m last r nlght almost immediately upon his receiving it — the emergency act pro- '"ides also for almost dictatorial powers to open sound banks and re - organize others I Learns lo Believe Signs WASHINGTON March 9— (AP) — Huey Long today found i "No admittance" sign meant Just what It said Wheh the hanking committee was studying the Roosevelt emergency bank Mil behind closed doors the self-styled "Klngfish” —not a member of the committee — nonchalantly opened the door and walked in lie came out about two minutes later however remarking' to newspapermen rather angrily that Senator Glass "doesn’t know as much about this bill as I do" NEW CURRENCY TO REACH PUBLIC THROUGH USUAL BANK CHANNELS WASHINGTON March 9 — JPi — them advances on time or demand The new money provided for in to-: notes satisfactorily secured ' day’s emergency bank legislation will) The amount of currency 1- nor-flow out to its users normally to be mally regulated by the volume of paid over the counter of such banks bank withdrawals As the demand for cash is now considerable and a& gold certificates are not' to be paid is are opened in exchange for checks just as all past currency has been paid out Behind that simple act however is the process by which the bills flow from the treasury’s engraving plant to the banks of deposit The bills will be issued to the 12 Federal Reserve banks by the treasury in exchange for government bonds notes drafts bills of exchange and bankers’ acceptances The notes will be given the reserve banks to the full face value of the United States obligations turned in and to 90 per cent of the “estimated value” of the notes drafts etc The reserve member banks will put up similarly acceptable assets with the reserve bank of their district in exchange for 4 the currency they need In exceptional cases where the member banks have no such assets tiie reserve bank may make BIG STREAM OF HOARDED GOLD POURS INTO FEDERAL COFFERS By VICTOR EUBAN& 4 t AiMn-'atei Pre Fnanrlal Writer! NEW YORK March 9—UPy— Golden treasures after playing truant on a hoarding holiday crept back to the secure vaults of the Federal Reserve bank here today Beginning Monday it was unofficially estimated that close to 504)004)00 in gold coin and gold certificates had been received by the central bank from member institutions or persons either conscience-stricken or fearing public exposure and confiscatory taxation who felt that paper currency was the safer under the circumstances Most of this -huge sum was brought back yesterday and today Afoot by taxicab and limousine the hoarders came singly anjl In pairs Some had guards and some had none They carried suit-cases brief-cases canvas bags and old shoe-boxes bulging with the yellow metal whose recent heavy withdrawal from circulation was- largely responsible far the subsequent fl- the ® ply of currency Through this law the banks which will open will be placed in a position to meet all demands This assurance Should re- store confidence and create the - foundation for a forward movement in business activities "It will be the policy of the treas-ury to permit as rapidly as possible the opening of sund banks There J are of course many thousands of such banks which will promptly be ! restored to the performance of their i normal activities '“rh tiniinr i The treasury has already taken had completed when he retired early today a drastic plan for lopping half a billion dollars from goyem- ment expenditures It will be presented to congress today by special message as a step toward a - balanced budget and a movement to back up the extraordinary banking actions of yesterday with a balanced budget Senators and representatives of both ' parties conferred with him upon it las night Speed May Continue Today Thus there appeared possible for £oday another such swift' moving series of events as took place yesterday When the-president’s special mes-( Continued oh Page 9 column 4) 'out for the present the requirements for new money are calculated to be considerable Another method of putting money into circulation is for the government to pay its obligations In cash Relatively small amounts ordinarily reach circulation in this way however and there has been no indication that this method would be adopted In the present situation The bill - also will put the nw money into circulation by order of the secretary of the treasury by exchanging it for gold and gold certificates either bank reserves or private hoards The measure gives the treasury specific ‘authority' to call In such reserves or hoards whenever it decides the situation demands it penalty is provided fix anyone not complying nancial crisis and almost unprece- j dented banking suspension - Not only did a stream of rather shame-faced individuals line up before the Federal Reserve hank windows with sums of yellow coin imaging from loo to 5000 and more hut trucks bearing gold and certificates from member banh kept the reserve accountants busy The banking contributions which were - the-beaviest ware principally threw re- ceived from depositors Individuals got f ederal reserve notes in exchange for their gold while-the bankf either J ' made the trade for 'eurrency or had the amounts credited to their bal- The majority of persons turning In their gold today both to the Federal Reserve bank and member' Institutions were those who ?had: withdrawn balances and converted them into coin during the pastifevr weeks At thefsamei'time- ltviwas said that' same gold appeared J that : (Continued on Fage ll'celumn 7)1 -1 ? 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