Indianapolis Times, Volume 44, Number 259, Indianapolis, Marion County, 9 March 1933 — Page 1

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REOPEN SOUND RANKS AND EXPAND U. S. MONEY, ROOSEVELT’S PROGRAM

CONGRESS WILL RUSH LAWS TO REOPEN BANKS Sessions Will Continue Till Midnight if Necessary to Complete Work on Financial Legislation. BILLIONS WILL BE ISSUED Gold Embargo Will Stay on and War Will Be Pressed Against Nation’s Hoarders. Congress meets, speeds action on Roosevelt hanking plan. Government leaders predicted reopening of most banks Friday. No scrip will he used as emergency exchange. Gold embargo stays in force and hoarders' names will he turned over to authorities. Chase National hank, New York City, will divorce security from general banking business, indicating drastic reform in financial world. Ranks can get new currency by depositing longtime securities with federal serve hanks. Indianapolis hankers prepare for reopening, on more definite word from Washington. City firms make arrangements to meet pay rolls Saturday. BT LYLE C. WILSON Vnited Press Staff Correspondent WASHINGTON, March 9.—Congress met in extraordinary session at noon today to create millions of dollars in new currency to enable banks to reopen. The currency issue plan is the beginning of President Roosevelt’s counter-attack on depression. Days and nights of conferences have produced an emergency currency bill designed to permit wholly solvent banks to reopen Friday morning.

Senate leaders planned to sit until midnight if necessary to enact the Roosevelt bank bill. House leaders promised prompt action as soon as the house is organized. Both senate and house convened promptly at noon. Rainey Elected Speaker Representative Henry T. Rainey (Dem.. 111.) was elected Speaker of the house, a mere formality, ratifying the action of the recent Democratic caucus. Vote for the Speakership was: Rainey, 302; Snell <Rep.. N. Y.), 110; Kvale (Farmer-Labor, Minn.), 5. The senate proceeded immediately to organization and elected Senator Key Pittman (Dem., Nev.). president pro tempore. The house chamber was jammed with members, the huge Democratic majority overflowing into the usual Republican benches. Mrs. Roosevelt sat in the President's gallery. She and a companion busily plied their knitting needles as they watched the floor. Presently Mrs. Roosevelt's yarn gave out and she rolled a fresh ball of the white yarn from a fresh skein. Delay in Senate Her visit was' unusual. Dignitaries usually choose to visit the senate galleries to see congress in action. Senate Majority Leader Joseph T. Robinson told the United Press early this afternoon that it probably would be necessary to delay senate consideration of the Roosevelt bank bill until 4 p. m. He said, however, he still hoped for final action by tonight. The Roosevelt program would throw at least $3,000,000,000 of new federal reserve notes into circulation if needed. More Is Available More could be added by slight modifications expected to be made In existing laws. Some $11,000,000,000 of government bonds could be used as the basis of emergency issues. The President's advisers worked toward dawn on the final draft of (Turn to rage Three)

Page One News Stories on Inside Pages

Stability, not inflation, is nations need, says Professor R. A. Seligman, noted economist. Page 3. All factions in congress back Roosevelt. Page 3. A girl s gossip started crash in 1907 panic. Forrest Davis’ series. Page 2. Courage and brains routed 1907 panic, Dr. Harry Elmer Barnes says. Page 11. Rockefellers wage war on Morgan group to separate commercial and investment banking.

The Indianapolis Times Partly cloudy tonight and Friday; slightly colder tonight with lowest temperature about 20.

VOLUME 44—NUMBER 259

Will and Way Stranded by Bank Crisis, but They’ll Get Back to Li’l N’ Yawk.

B;i T'liitcri Press CHICAGO. March 9.—Ten residents of New York, marooned at the Palmer House by the bank holiday, solved the problem of their return Wednesday by the aid of H. H. Wilhite, hotel credit manager. Brought together by Wilhite, they pooled their resources and chartered a Great Eastern bus for $l4O, leaving at 7:30 a. m. with a guaranteed that they would arrive in New York by 9:30 a. m. Thursday, Three of the ten were women. Os the others four were salesmen, and had to leave their sample trunks for want of space. STATE MAYOR DIES OF AUTOJNJURIES East Chicago Executive’s Fiancee Hurt in Crash. By l nitetj Pres* EAST CHICAGO. Ind., March 9. —Thomas O'Connor, 39, bachelor mayor of East Chicago, was injured y in a train crossing auuobile wreck near here today in nich his fiancee, Rachel Evans, an East Chicago school teacher, slightly was injured. Mr. O'Connor died in St. Catherine's hospital here of a fractured skull several hours after the crash, which occurred at the Sumner avenue crossing. His automobile was struck by a New York Central train. STORK'S STILL BUSY Dr. Myers Digs in His Pocket to Take Care of New Arrivals. Dr. Charles Myers of the city hospital has anew role today. His official title may be "Personal Aid to Dr. Stork." Six senior medical students who act as visiting doctors Wednesday exhausted all gasoline in their cars. Because of banking situation, they had no money to buy more. “I happened to have a little ready cash on hand, and made them a personal loan,” Dr. Myers said. "In spite of the bank moratorium, there is no holiday where babies are concerned.” *

Capital Says: ‘Perhaps a Leader Has Come!’

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From a United Press dispatch from the White House. "... sat the President . . . Sturdy-shouldered, smiling, calm, talking pleasantly, with an occasional humorous sally, he was a picture of ease and confidence.”

NEW BANK ACTS AREJUJLINED Drastic Changes Will Be Made by Decree of Roosevelt. By United Press WASHINGTON, March 9.—An authoritative digest of the emergency bank legislation to. be proposed today by President Roosevelt was outlined to the United Press as follows: 1. Validation of the emergency decrees issued so far by President Roosevelt and the treasury. 2. Re-enactment of Section 5 of the trading with the enemy act, including all necessary authority to prevent hoarding and authorizing control over gold reserves in the United States. 3. Grant of authority for such control over all banks as may be necessary for protection of both depositors and credits, and providing for prompt reorganization of nonliquid banks on a sound foundation of permanent liquidity. Would Amend Reserve Act 4. (A)—Amend the federal reserve act to permit direct loans to corporations and to individuals on collateral of United States obligations. (B) Extension,of broad powers to the federal reserve banks to loan to member banks on sound assets not now eligible as collateral for such borrowing. (C) Authorization for the federal reserve to issue federal reserve bank notes: (1) Against obligations of the United States owned by federal reserve banks. (2) Against notes of corporations, partnerships or individuals secured by United States government obligations. (3) Against bank notes secured by sound assets. Must Prove Solvency This program was interpreted in one well-informed quarter as meaning that when banks are reopened only those 100 per cent solvent will be able immediately to open their doors and all others would be required to reorganize by writing down their assets to whatever lower level may be necessary to make the assets represent actual values. It is understood that banks will be permitted to open under a licensing system and that without the federal license symbolic of liquidity no bank will be permitted to resume ordinary banking business. Under those circumstances, it was believed that federal reserve member banks would be able to open first, since their condition is known intimately to federal authorities. I

Watch Stars Spring is on the way and now is a good time to start the pastime of star gazing, if you're not already a fan. It's far more interesting to watch the constellations if you know something about the geography of the heavens. David Dietz, on The Times editorial page, Friday will ell you. in detail, of the wonders of the heavens, as they appear for the rest of this month. Watch for it Friday.

INDIANAPOLIS, THURSDAY, MARCH 9, 1933

City Banks Wait Signal for Business Renewal Financial Leaders Retain Attorneys to Decide Course to Follow on Reopening. Agreeing with President Roosevelt’s plan of reopening sound financial institutions, Indianapolis bankers this afternoon considered their immediate program of preparation for this event.

I Financial leaders were ready for a meeting of the Indianapolis I Clearing House Association, to be I called when the legislative program ; : in Washington is completed. ! Members of the association said | they had turned all messages from the treasury department over to j law firms for interpretation. If the | meeting is held, the attorneys will outline what they believe to be the local banks’ powers under orders from the national capitol. Plan Is Praised Bankers throughout the city and state praised the national program outlined by Mr. Roosevelt. They termed it a proper and far-reaching step in realigning the nation’s monetary needs. "The President's plan sounds like a far-sighted program.” said George l C. Calvert, clearing house secretarymanager. “It is a step toward centralization of banking authority in the federal government and rigid supervision, absolutely essential if | deposits are to be guaranteed.” The President's program should | help the banking situation materiali ly, in the opinion of Luther F. Symons. state banking commissioner. “Mr. Roosevelt proposes a drastic program,” said J. p. Frenzel, Merchants National bank president, “but I think he will be able to work it out. The big question in my mind is whether he can get his proposed legislation through today.” Bankers were interested particularly in plans of the government to issue several billion dollars in additional currency to relieve the financial paralysis resulting from freezing of bank deposits. Financial institution records have been arranged for opening on short notice. Firms In Quandary Indecision left local business and j industrial firms in a quandary as to how they will meet payroll problems Saturday. A few more fortu- j nate firms have sufficient cash on 1 hand to meet them. Others will pay by check or I. O. U.'s. The checks will be held by employes until the situation clears. Clearing house officials estimated that it would require only twelve to; twenty-four hours for the new currency to reach Indianapolis banks after it is released in Washington.) The money would serve to ease the pay roll situation, if received before Saturday. Indianapolis’ condition hinges largely on reopening of the Chicago Federal Reserve bank, since it is l necessary to be able to clear the flood of checks issued on out-of-state banks before the exact status of local bank deposits can be learned. May Increase Prices The mild inflation which would result from releasing additional cur- , rency may result in slight increase in retail prices of commodities, it was predicted by business men. Officials of the Kroger Grocery j Company in Cincinnati announced (Turn to Pa*e Three)

BY RAY TI CKER, Times Staff Writer WASHINGTON, March 9.—A cynical capital which has lived through many black days and sympathized with many overburdened Presidents today looks on in amazement at the way Franklin D. Roosevelt is bearing the strain of the nation's greatest financial and monetary crisis. With the eyes and hopes of the country centered upon him. and the money marts of the world awaiting his decisions, he acts as if the temporary breakdown of a creditor nation's banking system were all part of a day's w'ork. Not once during sleepless vigils devoted to conference and action has he lost his head or temper, or exhibited weariness. In a capital still shrouded, somewhat ironically, in gay inaugural bunting, he goes about as if detached from the struggle against mighty but unseen forces. So much so that he seems to be moving through a role and speaking lines made for him by the skilled hand of a dramatist. His confidence has affected his associates, including voluntary recruits from the Hoover regime like Ogden L. Mills of New York. It has cheered his cabinet. Next to Mr. Roosevelt the most serene individual is William H. Woodin, the composer-secretary of the treasury. Sitting cross-legged on his desk at important, if impromptu, conferences with bankers and the press, he speaks so softly that cries of “louder” come from the rear of the room. He found time at 3 o'clock the other morning to intervene when roughneck guards refused newspaper correspondents the right to wait in the treasury yard. “Go away,” he said in a gentle voice. “Leave these gentlemen alone.” When callers suggested that he was on “a hot spot,” he reached down, rubbed his hand across his chair and replied: “No. it's not hot.” His face pleasantly lined from habitual smiling, he sprinkles his discussion of temporary and complex expedients to keep trade alive with gentle witticisms. A strange fellow, indeed! At the White House, at the treasury and on Capitol Hill the two men's attitude has become infectious. In a city where only the traffic lights seemed, to be operating on schedule Monday, it has brought cheer and confidence and activity. This transformation is the more vivid because it contrasts so sharply, so colorfully, with the somber atmosphere that shrouded tire White House through the decade that began with Warren G. Harding's death and the scandals of his administration. Thus there seems nothing superlative nor sentimental in the utterance of a senator, not given to effusiveness, who said, half to himself, half to those about him: “Perhaps a leader has come!” From midnight Sunday, when Mr.' Roosevelt issued his historic proclamation, through the crowded hours of the days and nights of this week, numerous episodes symbolize his and the people's attitude. Despite his other burdens, he made one decision in characteristic (Turn to Page Two)

Cheer Up Reassuring Cable Sent to Wife in Europe Calls for Ingenuity. By United Prr&a CHICAGO, March 9.—James Waller Roberts feared that his wife, who is spending the winter in Europe with their two children, would be worried over reports of financial conditions in this country. He decided to send her a reassuring cable. He dictated the message to an operator. His final words were: “And the money will be good.” The operator looked up suddenly and asked: “When?” Both laughed, and the operator counted the words. There were only twenty-three. “You can send two more for the same price,” she reminded Rogers. “Tell me a couple,” he answered. “Cheer up!” she suggested. “That’s fine, cheer up,” he repeated. “I wish I could.” she answered. Hourly Temperatures 6a. m 26 10 a. m 28 7a. m 26 11 a. m 29 Ba. m 28 12 (noon).. 27 9 a. m 28

Mourning Thousands Pass Bier of Mayor Cermak

BY ROBERT T. LOUGHRAN l nited Press Staff Correspondent CHICAGO, March 9.—An unemployed workman who spoke his grief in broken English led the saddened multitude of Chicago citizenry that filed today through the city and county buildings, where the body of Mayor Anton Joseph Cer- ; mak, victim of an assassin who intended to kill President Franklin D. Roosevelt, lay in state. Crowds choked the streets as the cortege approached. The bronze casket was borne inside the building where the man who had been an immigrant boy and who was to die a martyr had been for two years the militant leader of a troubled city. ( It was placed in a bower of som- , ber beauty on a catafalque draped ! in velvet. Marble columns support- j ing the rotunda formed proscenium ; arches for four vistas into the shrine. On the bottom of the cas- j j ket was the wreath of lilies sent by : the Franklin D. Roosevelts. About I ] the shrine were floral tributes from \ kinsfolk, organizations, societies and l friends. i

CERMAK KILLER PLEADS GUILTY Zangara Immediately Put on Trial for Slaying of Chicago Mayor. Bp United Press MIAMI, Fla., March 9.—Giuseppi Zangara. diminutive bricklayer, pleadeed guilty today to a first-de-gree murder charge on the fatal wounding of Mayor Anton J. Cermak of Chicago, whom he shot in an attempt to assassinate Franklin D. Roosevelt, then President-elect, and immediately was placed on trial in Dade county circuit court. The first witness called was Tom Armour, Miami, who held Zangara until police took him in charge after he fired at an automobile bearing the Presiden-elect here Feb. 15. Zangara already is under sentence of eighty years in prison on four counts of attempt to assassinate in connection with the bungled attempt to kill Mr. Roosevelt. The assassin's plea, specifically, was that he intended to shoot Mr. Roosevelt, and that in the attempt he did shoot and kill Cermak. He denied intent to kill the Chicago mayor, but under Florida law his plea constitutes a plea of guilty to murdering Cermak. During the testimony, the prisoner seemed far more interested in the telegraph instruments immediately behind him. than in the testimony which all believed would send him to the electric chair. The defendant was questioned by the state’s attorney when he appeared before Judge Uly O. Thompson. He stood tapping his foot, his arms folded as the charge was read to him. “Do you, Joe Zangara, plead guilty or not guilty?” “I wanna shoot President, kill all capitalists—l gotta do—l no like Presidents,” was the reply.

The first to look down on the I mayor's drawn white face was ; Philip Russo. He had waited at : the entrance since 5:45 a. m. He gazed at the features for a moment, j broke into tears and turned away. “I never did see our mayor before,” he said, haltingly. “But he j was good to us common people when we had work. He was good when we lost our jobs. It is a bad thing he must die.” Within a few minutes after 10 i a. m„ the beginning hour of the I farewell, at least 100.000 persons j had gathered to pay their last re-1 spects. Never in Chicago's history j had the populace manifested such I universal grief and respect. The way led from the Washing- ! ton street entrance through a cor- j don of 500 policemen wearing white gloves to the catafalque. On either j side the casket were two firemen as honor guards. They were relieved later by two policemen. Friday the way leads in solemn procession to the Chicago stadium for funeral rites and thence to Bohemian National cemetery, where the second of Chicago’s mayors to be assassinated will be buried among j countrymen of his native Bohemia. 1

Enter' i! Second Class Matler at Post off joe. Indianapolis

PRESIDENT TO FREE BILLIONS IN CURRENCY Action to Provide Additional Funds Through Amending Federal Reserve Act Is Asked. MUST SAFEGUARD DEPOSITORS Executive, in Terse, Smashing Sentences, Points Out Objectives to Restore Nation’s Business. BY FREDERICK A. STORM United Tress Staff Correspondent WASHINGTON, March 9.—Legislation giving him blanket power over banks for protection of depositors and amending the federal reserve act to provide additional currency was asked by President Roosevelt in his emergency message to the special session of congress today. The additional currency, he said, should be adequately secured and as plentiful as necessary to meet all demands. But, he insisted, it should not add to the unsecured indebtedness of the government. First objective set by President Roosevelt was reopening- of sound banks. He asked legislation which would: 1. Give the executive branch of the government control over banks for protection of depositors. 2. Authority to open banks ascertained to be sound at once and other banks as rapidly as possible. 3. Authority to reorganize and reopen banks requiring

such treatment. The emergency program was urged ahead of everything else, in the brief 500-word message, one of the shortest ever sent on a major matter. "I can not urge too strongly upon congress the clear necessity for immediate action,” President Roosevelt said. His message was terse. Sentences were short and stripped of all decoration. Each phrase headed straight at its objective. Passes Over Causes He did not pause to describe the causes leading up to the drastic proclamation issued Sunday midnight to protect depositors and the nation's business. “Our first task is to reopen all sound banks,” the President said. “This is an essential preliminary to subsequent leigslation directed against speculation with funds of depositors and other violations of positions of trust.” President Roosevelt omitted all details from his message, desiring to strike broad and heavy blows at his objective. He dealt with the additional currency plan in one long sentence: “I ask amendments to the federal reserve act to provide for such additional currency, adequately secured, as it may become necessary to issue to meet all demands for currency, and at the same time to achieve this end without increasing the unsecured indebtedness of the government of the United States.” Warns Inflationists This was construed as a warning against mere printing press money, which merely would bear a promise to pay. President Roosevelt apparently intends to insist that every single federal reserve note issued shall be put out on the strength of collateral —gold backing, government bonds, some form of commercial paper, real estate mortgages or bonds. Throughout the life of the federal reserve act, federal reserve notes have been based on short-term commercial paper and gold backing Proposed legislation will make longterm notes available. Oil Dealers Meet Here Russell Williams, Indianapolis, co-manager of the Bonded Oil and Gas System of Indiana spoke to approximately 150 delegates from Indiana, Illinois, Michigan, Ohio and Kentucky, at the first annual sales conference at the Severin Wednesday.

Toil Overtime No holiday has been declared by judges in The Times U. S. jigsaw puzzle congest. While it has been necessary to check thousands of entries, the judges expect to be able to announce the winners in a few days. Watch The Times for details.

HOME EDITION PRICE TWO CEX T S Outside Marion County, 3 Cents

Text of Address

The text of President Roosevelt’s speech follows: TO the senate and house of representatives: On March 3, banking operations in the United States ceased. To review at this time the causes of our banking system is unnecessary. Suffice it to say that the government had been compelled 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 action directed against speculation with the funds of depositors and other violations of positions of trust. In order that the first objective —the opening of banks for the resumption of business—may be accomplished. I ask of the congress the immediate enactment of legislation giving to the executive branch of the government control over banks for the protection of depositors; authority forthwith to open such banks as already have been ascertained to be in sound condition and other such banks as rapidly as possible; and authority to reorganize and reopen such banks as may be found to require reorganization to put them on a sound basis. bub I ASK amendments to the federal reserve act to provide for such additional currency, adequately secured, as it may become necessary to issue to meet all demands for currency, and at the same time to achieve this end without increasing the unsecured indebtedenffss of rhe government of the United States. I can not urge too strongly upon congress the clear necessity for immediate action. A continuation of the strangulation of banking facilities is unthinkable. The passage of the proposed legislation will end this condition and I trust, within a short space of time, will result in a resumption of business activities. In addition, it is my belief that this legislation will not only lift immediately all unwarranted doubts and suspicions in regard to banks which are 100 per cent sound, but also will mark the beginning of a new relationship between the banks and the people of this country. BUB THE members of the new congress will realize. I am confident, the grave responsibility which lies upon me and upon them. In the short space of five days it is impossible for us to formulate completed measures to prevent recurrence of the evils of the past. This does not. and should not, however, justify any delay in accomplishing this first step. At an early moment I shall request of the congress two other measures which I regard as of immediate urgency. With action taken thereon, we can proceed to consideration of- rounded program of national restoration.