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Roosevelt Warns Invoke War-Time Power As Hail To Meet Crisis 250,000 Inauguration; Two-Day Holiday Declared For Virginia's Banks Pollard Cites Pressure; Federal Reserve Heads Summoned by Woodin Action by en Only After Banks in New York Are Closed by Temporary Holiday Order Is Preceded By Discussion Bankers AdvisReserve ed Moratorium Forced by Outside Influences Crisis Over S. in A mandatory bank holiday in Virginia for Monday and Tuesday was last night by Governor proclaimed while in Washington atPollard, tending the Roosevelt inaugural ceremonies. this power, GovIn exercising Pollard said his action was ernor taken upon the recommendation of Reserve banks of the the Federal district. "Since making my statement of Friday night," the Governor's an"there have nouncement been unforeseen developments New York and in other financial centers of the country where bank holidays have been declared. night Governor Pollard Friday necessity day view of Virginia's law permitting banks to restrict withdrawal of deposits, subject to approval the State Corporation Commission Pollard's statement last night, in reference to the New York bank holiday development, which included closing of the New York Stock Exchange and Cotton Exsaid: "This new development changes the and imposes an undue burden upon the banks of Virginia. "While Virginia has statute which under less critical circumstances would meet the situation through application of the banks to the Corporation Commission, the machinery incident to the operation of this law would cause delay which must be avoided under existing unprecedented conditions. "In order, therefore, to relieve the banks of the necessity of making separate applications with the recommendation of the Federal serve banks of this district, declaring legal holiday operative for Monday and Tuesday. March and through the State and binding all the banks." Governor Pollard's announcement of the two-day banking holiday came few hours after Richmond bankers conferred at the Federal Reserve Bank of Richmond, the conference being attended by M. Bristow. State Banking Commissioner, and Assistant AttorneyGeneral Collins Denny Jr. Virginia remained one of the last States to declare banking holiday. and the closing was forced upon banks because of the pressure outside influences, was learned last night. Most Virginia banks maintain balances in New York City. The sult of the closing there was that New York corporations with deposits here drew on Virginia banks, which in turn saw part of their funds tied up in New York. The strain on Virginia banks began with the declaring of bank holidays in Maryland, West Virginia, Kentucky and Tennessee, neighboring States, and the closing of large bank in Washington, Despite this ring drawn around the Old Dominion, this State maintained normal banking until the New York closing precipitated crisis which caused member banks of the Federal Reherve Bank Richmond. in the interest of their own depositors, to recommend State-wide closing for two days. The New York holiday was proclaimed for yesterday and tomorrow. Reopening of New York banks Tuesday would clarify the Virginia atmosphere, as well that of other States, was stated last night by local banker. considerable sum was withdrawn yesterday from banks, but there was action suggestive The American Bank and Trust Company applied the agreements passbook contracts savings accounts the extent of limiting withdrawal savings account deposits without notice $10. learned yesterday that the Federal Reserve Bank during the past ten days has lent Continued on Page Seven. Call for Discussion of Bank Situation Comes Just After New SecreGoes Into Office tary