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CONGRESS MEETS THURSDAY IN SPECIAL SESSION FOR ACTION ON BANK PROBLEMS Roosevelt and Advisers Prefer Action to Halt Hoarding Be Regarded As Modified Bank Holiday, Rather Than National Moratorium. By RAYMOND CLAPPER United Press Staff Correspondent WASHINGTON. Mar. 6. (UP). STATE TRUST A modified national bank holiday extending through Thursday was declared by President Roosevelt CO. OBSERVES in a proclamation last night. He ordered all banks to suspend payments of gold and other forms of currency now on deposit. A BANK HOLIDAY special session of congress has been summoned to meet Thursday noon to consider banking and financial legislation. Prepared to Meet DeposiA system of clearing house certors' Demands in Full; tificates was ordered under the supervision of the various federal Acts Under Orders reserve districts to obtain virtual national uniformity. Stephen Early. White House OPEN HOUR DAILY secretary told newspapermen that FOR MAKING CHANGE Secretary of Treasury Woodin, former Secretary Ogden L. Mills and members of the federal reAlthough it was prepared to serve board "are standing by at meet demands of depositors in the treasury ready to put the mafull. if necessary, the State Trust chinery in motion to make this company was closed today in coneffective. formity with orders issued by Every effort was being made to President Franklin D. Roosevelt facilitate the prompt issue of and Gov. J. C. B. Ehringhaus. clearing house certificates. DeciThe orders were issued from sions regarding details of issuance Washington and Raleigh and were were expected to be rushed at the a mandatory. They declared treasury department to speed up three-day holiday, with possibility issue of the emergency money. that the holiday will be extended The secretary of the treasury is if uniform regulations governing empowered to authorize that new reopening can not be worked out deposits made after the modified before Thursday. holiday went into effect may he Meanwhile, and until further accepted and preserved in special notice, the State Trust company trust accounts which shall be subwill be open from 9 until 10 ject to withdrawal on demand o'clock every morning for makwithout any restriction or limitaing change and for the accommotion. Banks must keep such funds dation of safety box holders. separately in cash. or on deposit A telegraphic copy of the statein federal reserve banks or invest wide order was posted on the them in obligations of the United doors of the State Trust company States government. before opening time this morning, The proclamation covers all but the doors were open and a banking institutions which include few persons entered to discuss the by the definition within the procsituation with officials and emlamation itself, all federal reserve ployes of the bank, all of whom banks, national banking associawere at their posts. To these pertions, banks. trust companies, sons and others, the officials exsavings banks. building and loan plained that while the bank was in associations, credit unions, or any fluid condition and could have reother corporation, partnership, asmained open, meeting whatever sociation or persons, engaged in demands that might have been receiving deposits, making loans, made by depositors, they had no discounting business paper or enchoice in the matter. gaging in any other form of The order to close had not been banking. anticipated here until Saturday PROCLAMATION ALL night when a conference of state INCLUSIVE AS DRAFTED bankers with Gurney P. Hood, The proclamation was drafted state banking commissioner. deto be all inclusive in preventing cided that interests of bankers further paying out or ear-marking and depositors alike would be best of funds now on deposit. It proserved by declaring a holiday vided against paying out, exportEvery state in the union had ing. ear-marking. withdrawing or clamped restrictions on banking transferring in any manner of operations, and after New York currency now held. had declared a holiday, thus closDealing in foreign exchange or ing the federal reserve banks and transfer of credits from the Uniother large money markets, there ted States to any place abroad was no other avenue open to also was prohibited during the life North Carolina and other states. of the proclamation. Here in Hendersonville, extreme The order was predicated upon confidence was expressed in the the increase in hoarding and stability of the State Trust comheavy withdrawals of bank funds pany. When the bank closed for and the draining from abroad of Saturday afternoon and Sunday, stocks of gold. officials fully intended to re-open These conditions had created, today for the regular routine of President Roosevelt said, a nabusiness. Since it was organized tional emergency. two years ago. the assets of the "There have been heavy and bank had been kept in unusually unwarranted withdrawals of gold liquid condition. and currency from our banking of When it became known Saturinstitutions for the purpose day night that a state-wide holihoarding," the proclamation statdav probably would be declared, officials of the State Trust com ed. "Continuous and increasingly uany asked that this bank be exextensive speculative activity empted, but it was explained that abroad in foreign exchange has such an exception could not be resulted in severe drains on the made. nation's stocks of gold. The conBelief was expressed here today ditions have created a national that when the banks are re-opened after the holiday, withdrawals emergency The president further explained be limited and perhaps other reg that he regarded a period of resulations applied. pite as being in the best interests Hendersonville business, meanof all depositors. while. like that of all other com"It is in the best interests of munities in state and nation, is all bank depositors that a period crippled by the lack: of exchange of respite be provided with a view facilities, and thousands of indi to preventing further hoarding of viduals are trying in good spirit coin, bullion, or currency or to get along with little or no speculation in foreign exchange of money in their pockets. and permitting the application appropriate measures to protect the interests of our people. The secretary of the treasury was given authority with the apB. and P. Women proval of the president to remove entirely restrictions on individual banks at his discretion. To Observe Week This was provided to permit banks in the insular possessions and extra liquid banks within the Special Meeting of Club Is United States to operate as usual if permitted. Tuesday Night The proclamation was dated at 12 :05 a. m. Monday. The Business and Professional President Roosevelt and his adWomen's Club will meet Tuesvisors are understood to prefer day evening at 8 o'clock with that this action be regarded as a Miss Winnie Hogsett on Flemmodified bank holiday rather than ing street. This meeting is in as a national moratorium. observance of National Women's It was designed to check devasWeek and the Public Relations tating withdrawals of cash, but Committee of which Mrs. P. N. to permit creation of temporary Timmerman is chairman, will emergency currency and two) to allow have charge of the program
