Oshkosh Daily Northwestern (Newspaper) - March 9, 1933, Oshkosh, Wisconsin ASSOCIATED PRESS AND UNITED PRESS The Northwestern SIXTY-SIXTH YEAR Phone 8000 Family Newspaper OSHKOSH THURSDAY EVENING MARCH HOME EDITION Phone 8000 PRICE TWO CENTS CONGRESS MEETS FOR BANK ACTION OPEN TOMORROW IN STATE PLAN Roosevelt Is Brief Urgent Crowded Galleries in Both Chambers Listen to Executive's Petition for Power to Re- open Sound Formalities Observed in Special Session powers for President Roosevelt took shape a few hours after the special congressional session convened today as its leaders heeded his plea for extensive authority over the nation's banks and to expand the currency greatly Our first task is to reopen all sound said the president in a concise special message He asked power to do so and to allow for reorganization of other institutions under federal supervision The legislation was introduced almost immediately in both branches calling for approval of all the president has done to date and to extend his wartime power so he can deal as he sees fit with hoarding transactions in foreign exchange and gold usages The outlook was if the law is en- acted by nightfall for his new proclamation to be under the new law carrying through the authority now being exercised over the bank holiday Upon hearing from him a counsel for utmost speed the senate ing committee in executive session labored through the complexities of a mammoth banking revision The aim was to get it ready for senate action by tonight and house leaders likewise were making preparations to expedite the emergency legislation there Young Teddy Out With the appointment of John H Holliday above of Missouri as I ing governor of the Philippines President Roosevelt terminated the tenure of office of his fifth cousin Governor General Theodore velt Holliday has been serving as vice governor of the islands House Passes Bank Measure This Afternoon senate recessed at p m until p to permit its hanking committee to conclude work on the emergency banking program moved this afternoon upon the petition of President Roosevelt to empower him to reopen sound banks and to authorize tremendous currency expansions Spurred by his call for immediate senate and house alike set about writing into law a revision of bank statutes among the most extensive in history Even while his brief message was being read to crowded galleries in both chambers the highest financial ami legislative authorities were at work behind locked doors putting the finishing touches on the As advocated by the president it would give him sweeping authority banking and gold movements in any emergency MUST SHOW SOUNDNESS It would permit only sound banks to reopen at once those un- able to show conclusively their soundness being administered ing reorganization by government conservators The stockholders and the troller of the currency would have to join in approving the tion before the bank could be turned back to its board of directors The would authorize issuance of new currency against government bonds notes drafts bills of ex- change and bankers acceptances Senator Robinson Democrat Ar- kansas the Democratic leader said the legislation would penalize hoarding But details were not im- mediately available Only the most scant formalities were carried through in senate and house as the membership of the Seventy-third congress waited to attempt to perfect the lation so it could be signed by night Representative Rainey of Illinois was formally elevated to the with the vote on party lines STAND AS ONE President Roosevelt and leaders of the new congress stood as one today in a campaign to thrust aside an immediate obstacle to normalcy scarcity of currency Their agreement reached in a get-together that lasted after mid- night was hailed by both as thing that would immediate reopening of a large number of banks The needed congressional sanction was promised later in the day Although full details were yet to P house of at p m today passed the velt emergency banking and sent it to the senate HE IS US mm Witnesses Called and Scene of Shooting is Pictured byi Them With the Defendant j Explaining What Was His Attitude of Mind be announced the outline of the currency plan was New money already in the ing will be issued and based on There will be no gold directly behind the rency but the soundness of the government obligations will be guaranteed 1 A continued federal check on gold 2 A budget balanced at tho quickest opportunity 3 Retirement of inherited cits 4 A drive to make gold hoarders loose their hoards by March 13 Continued on 2 JOSEPHUS DANIELS IS SAID TO BE INDICATED FOR NEW CHAIRMANSHIP iels of North Carolina secretary of the navy during the Wilson was understood in in- formed circles today to be slated for chairmanship of a new government group to include the interstate com- merce commission the shipping board and the aeronautics branch of the commerce department Pending the consolidation of the transportation ascncies indications have been that Daniels would be chairman of the shipping board in itself one of the smaller organizations in the combine Such a consolidation would bring together the major transportation agencies of the federal government It has been indicated for some time that of the sort was con- ROCKEFELLER ESTS IN IE Proposal By Aldrich Chase Bank Chairman Proposes Reform to Break Power of the Overloads of Finance Compel Changes in All New ler interests were lined up the Morgans and other powerful croups today in seeking a way out of the bank crisis Winthrop W Aldrich chairman of National bank largest in the world proposed last nicht a drastic bank reform program which in effect would break the power of the overlords of finance Aldrich brother-in-law of John D feller Jr anci former attorney for major Rockefeller interests is re- as a spokesman for the oil family Aldrich's program would disrupt the board of directors of almost every major bank in New York in- his own and would force absolute separation of commercial banking and investment banking It would prevent from un- foreign loans or tic industrial and thus re- move all temptation for a cial banker to encourage tion IN LONG STATEMENT The Aldrich program was an- in a long statement which j revealed that Chase National was I preparing to divorce its investment affiliate the Chase Forbes corporation largest bank investment affiliate in the Thus Chase follows the lead of the National City bank which announced a similar separation of bank and securities affiliate Tuesday night Under the proposals of Aldrich the entire method of operation of firms as J P Morgan fo Co would have to be changed Since the Rockefellers always have been primarily rather than bankers the move was regarded as a sharp intensification t t i t I I I fci I IH If J t F bv President Roosevelt of thr ferine frequently Daniels of The Raleigh m months News and Observer was of tbe navy while Franklin o j Roosevelt was assistant secretary Judge Uly O I Thompson today took under ment the imprisonment or Giuseppe Zangara who pleaded guilty to charges of ing Mayor Anton J Cermak of cago when his attempt to kill ident Roosevelt failed The judge said he would pass sentence row morning at 10 n m Miami gara today pleaded guilty charges of murdering Mayor Anton J Cermak of Chicago when his j mad attempt to assassinate dent Roosevelt here Feb 15 plea was entered by j Louis F Twyman chief of the counsel appointed for him after Zangara himself had said in re- sponse to a query as to guilt State Atty N Hawthorne I want to kill the president I i want to kill all kings and dents Zangara apparently started on a lengthy discourse but was i halted by Twyman j The latter said his client would j plead guilty to the first count of an j indictment returned Monday by a special convened grand jury if the second count was dropped The first count charged Zangara with killing Mayor Cermak as he j tried to kill the president The ond charge premeditated murder of Mr Cermak Tom Armour of Miami was called j as the first witness as Judge son heard evidence according to Florida law before passing sentence j on the assassin Zangara already has been j to RO imprisonment on i his plea of guilty to charges of at- j tempting to murder the president and three of the persons his bullets struck j ARMOUR TELLS Armour his story of Ing to divert aim when the latter fired his live in Bay Front park j The second witness Miss Dixie Herlong a court reporter testified about taking statement delivered she said in a reasonably the night of the i ing said Herlong that lie attempted to kill President because he didn't like presidents and ists Sheriff Dan of j ty the shooting and I capture and stated he wanted to kill President j Roosevelt because he was a ber of the capitalistic I I believe he had no connection j with any criminal gang in the j sheriff sakl Dr R C j dent of Jackson Memorial hospital j of Mayor mnk up to his death and said the bullet wound caused his Zangara himself took the stand after stale closed its rase j I'm 33 he born in Italy I here iO aero find live in Nev I live here Text of the President's Bank Revival Message to Special Session Today U text of President Roosevelt's message to the special session of congress To the senate and house of On March operations in the United States ceased To review at this time the causes of this failure of our hanking system is unnecessary Suffice it to say that the government had been com- to step in for the protection of depositors and the business of the nation Our first task is to reopen all sound banks This is an essential preliminary to subsequent legislation di- against speculation with the funds of depositors and other violations of positions of trust In order that the first opening of banks for the resumption of be I ask of the congress the immediate enactment of legislation giving to the executive branch of the control over banks for the protection of de- authority forthwith to open such as have already been ascertained to be in sound condition and other such banks as rapidly as possible and to reorganize and reopen such banks as may be found to require reorganization to put them on a sound basis I ask amendments to the federal reserve act to provide for such additional currency adequately j cured as it may become necessary to issue to meet all j demands for currency and at the same time to achieve I this end without increasing the unsecured i of the government of the United States T cannot too strongly urge upon the congress the i clear necessity for immediate action A continuation i of the strangulation of banking facilities is unthinkable j The passage of the proposed legislation will end this i condition and 1 trust within a short space of time will result in a resumption of business activities In addition it is my belief that this legislation not only lift immediately all unwarranted doubts and suspicions in regard to banks which are 100 per cent sound but will also mark the beginning of a new between the banks and the people of this try The members of the new congress will realize I am confident the grave responsibility which lies upon me and upon them Jn the short space of five days it is impossible for us to formulate completed measures to prevent the re- currence of the evils of the past This docs not and should not however justify any delay in accomplishing this first step At an early moment I shall request of he congress two other measures which I regard as of immediate urgency With action taken thereon we can proceed to the consideration of a rounded program of national D Roosevelt New Envoy to Spain Use of Scrip Is Made Legal Two Kinds of Wisconsin Emergency rency Provided For by State Legislature One From Clearing House and the Other From State Board Appointment of Claude G ors New York editor writer is to Spain only awaits the sanction of Madrid according to authentic Washington reports Bowers a former resident of In- diana was keynoter of the Democratic convention which Alfred E Smith At 2 o'clock ths afternoon the local banking situation way still without a definite procedure for tomorrow and although it was expected momentarily that tions would be forthcoming from Milwaukee and from Washington Louis Schriber president of the First National bank said that banks here were prepared to cooperate in ever program would be agreed upon but he said that banks here have no authority to make independent plans Since Milwaukee is the center of banking in Wisconsin Oshkosh and other points in the state will watch ments there he said and intend to follow whatever tions develop there whether it be scrip plan or otherwise Milwaukee he pointed out is dependent upon the ations in Chicago and New York and also to the instructions issued from Washington Wisconsin Summary Has Law for Planned Use of from a on providing for the issuance of scrip by the state of Wisconsin to provide a medium of exchange in the present banking emergency was enacted into law day The provisions of the Section new sections arc added to the statutes to 220.20 Bank scrips in emergencies Whenever the governor shall de- termine that an emergency exists in the affairs of the banks which in the interests of the depositors and creditors and the general welfare of the states requires the banking ness of such banks to be conducted in whole or in part on a credit ba- sis the banking review board may authorize the commissioner of ing to print and issue for the transaction of the banking of iuch banks during such cy Such scrip shall be allotted to tho state banks and trust companies on such terms and conditions as the banking review board and tho com- missioner of banking may deem ad- and shall be secured such assets of the banks as the board and the commissioner find to be ad- equate to insure their redemption at par when the banking review board shall find the use of scrip to be no longer necessary The banking re- view board and commissioner of banking shall adopt rules and lations governing the distribution of scrip to the depositor and other of the banks and trust FURTHER AUTHORITY Tile banking review borad and the commissioner of banking shall also have authority in emergences to authorize clearing house tions to issue for the use of member banks upon conditions anci under rules and regulations proved by the and the com- missioner No clearing house association or trust company shall issue or distribute to its and other creditors any scrip except by the review and the of banking on tive digest of the emergency bank legislation to be proposed today by President Roosevelt was outlined to the United Press as of the emergency decrees issued so far by President Roosevelt and the treasury of Section 5 of the trading with tho enemy act including all authority to prevent hoarding and authorizing control over gold in the United of authority lor such control over all banks may be necessary for the protection of both depositors and creditors and ing for prompt reorganization of banks on a tion of permanent liquidity ACT 4 Amend the reserve act to permit direct loans to ations to individuals on col- lateral of United States obligations Bt Extension of broad powers to the reserve banfe to loan to member bunks on sound assets not now eligible collateral for such borrowing C Authorization for the federal reserve to issue federal reserve bank ili obligations of United States owed by federal re- serve Against of corporations partnerships or individuals secured by United States government gations Against member bank notes secured by sound NO SHAKY ONES This program was interpreted in one quarter as ing that when brinks are reopened only 100 per cent solvent will be able immediately to open their doors and all would be re- quired to reorganize by their to whatever er level may be necessary to make the assets represent actual values It if understood that bank will be open under a that without tiie feriera of to Approximately 100 Fac2 Danger of Spending Night Marooned on bago When Crack Appear Along West Shore More than 100 ho prosper of spending day on sudden in iee Ha yards all lie shore They saved from ex- euers brought Is shore and the fishermen to land Wednesday's break in the ice name unexpectedly the first itself at about 1 hourly after thai lime the U perceptibly under the force of a wind Many fishing are still nut oJi the lake many of them be abandoned to sink into the when the ice breaks up unless east wind comes 1111 in the nest days to shove the ice mass in close to lie west shore Practically the entire fleet of local iceboats is still out on the lake cut off now from sliore hy the open water One or two boats were dis- mantled last night and brought lo shore in parts on BOAT Work of tin remainder the fleet hurl been lor but oi liv whipped the I today as as down and I'M are more boat ers will their bring to shore that automobile Uy Kennel b Mopping Associated Press Staff Writer slate legislature today passed law providing for the issuance of statewide scrip to be used for money in the present banking emergency Unless action by the new congress now in session it is expected to reopen all Wisconsin banks under the new law tomorrow morning Leo T Crowley advisor to Governor Schmedeman announced Ultimately there will be two kinds oC scrip pledged by bank assets in circulation in the slate One kind will be the Milwaukee clearing house scrip which is to be issued in Milwaukee tomorrow The other will be scrip which the banking review board will issue to all banks outside of Milwaukee All will be backed by bank collateral It is probable that bank depositors at the outset will be permitted to withdraw only 5 to 10 per cent of their old deposits in scrip Crowley said except that a withdrawal as high as 50 per cent may be allowed on deposits of or less TO WORK OUT DETAILS The banking review board will hold a meeting at 2 p m today to work out details The scrip which the state will sue cannot be printed and prepared before next Wednesday In the meantime the banking re- view board will make arrangements with tho Milwaukee Clearing House association for a portion of its scrip money to be distributed to the banks Milwaukee so they re- open tomorrow The situation affecting Wisconsin depositors therefore is Old deposits which were in the bunks last Friday when the sin moratorium was declared can be drawn upon in scrip in the amount of 5 or 10 per cent of such deposits or any other amount the Include Support for New ey Program as Against posal for Inflation New Currency is Available Upon Good Security anri on the i e but thi lo south of li of not in One aeh i HIGH WINDS Will DIE DOWN BUT COLD Will CONTINUE IN STATE winds and in northerly and tho Michigan far gon in the vicinity jr tin minimum reported being 12 below at Superior A 24-hour blizzard blocked and delayed In the Michigan A tho temperature tumbled to below and the weather bureau holfi out no relief High wind werr general a of 42 an hour at the Rale was by a drop in to 10 in ray to th and H ob th 11 rato hour was ready today to pass President banking program calling for a controlled currency i inflation which may if j in new federal 1 reserve notes to relieve the present stringency late developments Reassured of support for their money program government predicted UK reopening of a majority of on Friday inflationary were won over to the plan In lasting uni alter midnight With the promise of ample secured by the i of tlie no scrip will be ro- an medium ol on I inmes ol bn turned over in 1 o ol with banking review board decides upon this afternoon Permission may be granted to withdraw old of or up to 50 per cent The making and withdrawal of new deposits will be on such basis as congress determines IN SHORT ORDER The legislature passed the scrip in short order this morning It was given a hurried reading by the finance committee to meet the emergency and passed the to 2 Immediately to tlie senate it passed that body 32 to 0 The was ent at once to ernor who was at his desk after conferences in Washington He will sign it today The two houses also passed a legalizing the moratorium declared by Governor last also prevent of u double liability nKaimi T on An important from i oy FAIR COLD oj W ol Sun Sun bank to divorce tho security Oay Rises SOLS Length from it's banking i March f to the of i By Associated Press i drastic reform throughout the Fair and continued cold tonight Friday fair with ly temperature in west and portions I oriel oi the gency banking northwest partly cloudy of all emergency and Friday decrees and of the Upper Michigan Partly cloudy vi the colder in extreme snow treasury near Superior Friday of the with slowly old act to to control Si with the on- prevent hoarding and reserves in the in portion Duily Observations Temperature Remarks Windy i Grant to the I I ni 15 Clear inent power to control all i Highest and 1 state through I r s Duluth tate commissioners ior of 12 below Havre Mont IS bank and closure of j below banks for tlie present Observatory for the F p m to Wednesday X to issue reserve bank t P m- 36 minimum 22 Precipitation of wind northwest One ayo fi on i th reserve of the of I
