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# EARLY U. S. ACTION
# PLANNED ON BANKS
New York and Illinois Declare
Holidays-Only Four States
Unrestricted.
(Continued From First Page.)
Connecticut took similar action, bring-
ing to 43 the list of States in which
restrictions on withdrawals are opera-
tive in some form or another.
Only Montana, Colorado, North Da-
kota and South Carolina remained
without restrictions at noon today.
Delaware's banks were open, but the
State Legislature has already taken
emergency action.
These developments had brought from
Representative Rainey, the next Speaker
of the House, the prediction that "an
extra session of Congress will be called
at the earliest possible time." He said
he felt that early next week, possibly
Tuesday, would not be too soon. Pre-
viously Rainey had told House mem-
bers-elect to remain in Washington.
Others at the Capitol said the session
probably would begin Wednesday.
The Federal Reserve Bank of New
York was closed with all other bank-
ing institutions of that State. The
Federal Reserve Bank at Philadelphia
also closed, under a holiday declared
throughout Pennsylvania by Gov. Pin-
chot. Later in the day the Minne-
apolis Federal Reserve Bank suspended
business.
The closing of the New York Federal
Reserve Bank meant the tying up of
its huge gold reserve for the period of
the holiday against withdrawal by either
domestic or foreign agencies.
In discussing the banking relief pro-
gram, Senator Robinson said:
"We do not know just when it will
be completed, but it will be expedited
all possible. The details can not be
announced right now but you may be
assured there will be no delay."
Wagner Plans Action,
Previously Senator Wagner, Demo-
crat, of New York, had told newspaper
men he would carry immediately to
Democratic leaders an appeal for imme-
diate emergency banking moves. In-
formed at his hotel here of banking
moratoria in New York and Illinois.
Wagner said he would appeal this morn-
ing to Democratic leaders to begin
working out a program and some time
this afternoon would call on Mr. Roose-
velt with the same objective.
A bank holiday, he said, "is the only
thing to do" to meet the emergency
of the banks themselves, but he added
quick steps are necessary to enable
them to reopen and continue opera-
tions.
Harvey Couch, Democratic member of
the Reconstruction Finance CorpoΠ³Π°-
tion, was the first White House caller
this morning. He said after a brief
conference with President Hoover he
had discussed "matters incident to the
banking situation," but declined to give
details.
Couch conferred last night with
President-elect Roosevelt.
Officials in Conferences.
High officials both of the outgoing
Republican and incoming Democratic
administrations were in conference
most of the night. Secretary of the
Treasury Mills said afterward the
Hoover administration would have no
statement, but that governors of the
Federal Reserve banks in Chicago and
New York would have announcements.
Demands Impossible.
The hours between midnight and
dawn saw banking officials in many
States struggling with the problem,
made acute by the flurrying of nervous-
ness on the part of depositors.
As a statement by the New York
Clearing House Committee put it:
"The unthinking attempt of the pub-
lic to convert over $40,000,000,000 of
deposits into currency at one time is,
on its face, impossible."
The statement added that the condi-
tion clearing house banks is such that
"they could, through the facilities of
the Federal Reserve Bank, pay on de-
mand every dollar of their deposits,"
but that withdrawals throughout the
country as a whole have increased so
that a "halt" is necessary "to enable
the proper authorities to consider and
adopt remedies to meet this situation,
not for New York primarily, but for the
Nation as a whole."
Only a few States remained today in
which restrictions on withdrawals had
not been invoked.
No Holiday in Virginla.
In Virginia, Gov. Pollard said no
general banking holidays would be de-
clared because the State's laws already
protect the banks and their depositors.
In Maryland, the General Assembly
early today approved the emergency
banking legislation without a dissenting
vote in either House. Gov. Ritchie
signed it this morning, but said that the
banking institutions of the State will
not reopen Monday.
The resources of the Reconstruction
Finance Corporation earlier had been
made available to hard-pressed, but
solvent banks in States that have
imposed moratoria on withdrawals.
This was one of a number of de-
velopments yesterday that included
introduction of legislation to allow
postal savings checking accounts and
to confer upon the incoming admin-
istration sweeping authority to main-
tain the security of deposits.
Reconstruction Corporation officials
said their policy called for lending in-
stitutions if the loans were well
secured enough money to pay the
percentage of deposits that could be
withdrawn, provided the banks did not
have the funds immediately available.
It was emphasized this was not a
new departure, but was simply the ap-
plication of regulations decided upon
for individual instances in the past
to a situation spread into a number
of States.
Pinchot's Statement.
Gov. Pinchot of Pennsylvania here
for the inauguration issued the follow-
ing statement:
"Because of the declaration of a bank
holiday in New York, Illinois and most
of the other States, similar action in
Pennsylvania has become unavoidable.
"Were our banks to remain open, the
demands upon them would impose an
impossible burden.
"Therefore, upon specific recom-
mendation of Gov. Norris of the Phila-
delphia Federal Reserve Bank, I hereby
declare a bank holiday throughout
Pennsylvania on Saturady, March 4,
1933, and Monday, March 6, 1933."
Exchange Statement.
A statement issued by the Govern-
ing Committee of the New York Stock
Exchange said:
"The Governing Committee at a
meeting held this morning in order to
give full effect to the banking holiday
declared by the Governor of the State
of New York directed:
"First, that the exchange be closed
during such holiday:
"Second, that members and firms
registered on the exchange be pro-
hibited from making any contracts for
the purchase or sale or the borrowing
or lending of any securities, and also
from permitting their offices or facili-
ties to be used for the purpose of mak-
ing or carrying out any such contracts;
"Third, that all deliveries be suspend-
ed on all member contracts, except on
such contracts as may be cleared by or
settled through the Stock Clearing
Corporation, and that in such cases
deliveries shall be made as the Stock
Clearing Corporation shall direct
