Indianapolis Times, Volume 44, Number 261, Indianapolis, Marion County, 11 March 1933 Edition 02 — Page 2

PAGE 2

ROOSEVELT TO KEEP IRON BANK RULE FOR LONG TIME

VETERANS’LOBBY IS RANGED AGAINST PATRONAGE WHIP IN ROOSVELT ECONOMY SMASH Soldiers May Find Plum-Seeking Congressmen Hard Nuts to Crack; Hard-Hitting President Is Holding Edge. BY RUTH FINNEY Time* Staff Writer WASHINGTON, March 11.—Two mighty political forces—patronage and the veterans' lobby—are ranged against each other today in the fight for federal economy. Veterans and their friends in congress do not like the plan to give President Roosevelt power to cut compensation, allowances and pensions. But President Roosevelt is not dispensing jobs until the legislation for which he asks has been passed. Two opposing groups of constituents thus are bringing pressure to bear on members of congress. And the party whip, as well as patronage plums, is being used on the side of economy.

As it stands now, the President’s measure will save something like $525,000,000. Some $400,000,000 is to be taken from veterans, the rest from government employes. It is to be taken at once, without waiting for the end of the fiscal year, so that approximately onefourth of this sum, or $131,000,000. would be applied to reduction of the 1933 deficit, now estimated at more than a billion dollars.

Presented by Douglas Veteran organizations would prefer to have congress vote a flat percentage decrease in their benefits rather than give the President wide discretionary powers in making cuts. The President's plan, carried to congress by Budget Director Lewis Douglas, would give the chief executive power to determine, regardless of existing legislation, what, degrees of disability shall be pensionable, when wars since the Civil war actually began and ended for the purposes of disability claims, how many days’ service shall be requisite for a pension and what Resumptions shall be included. It would limit domiciliary care of veterans with non-service disabilities to those permanently * disabled; would eliminate all non-service connected allowances to emergency retired officers, and would reduce pensions of veterans and widows on account of the Civil war and earlier wars by 10 per cent. No Time ifimit Fixed The flat percentage cut favored by veterans would leave existing law as it is, and open the way for resumption of the present annual billion dollar payment on account of veterans. The administration bill fixes no time limit for the reductions it proposes for veterans. Federal pay cuts would be limited to one year. They would amount apparently to a 12 per cent cut with no exemption for low salary classes. Indexes of the cost of living prepared by the national industrial conference board and the bureau of labor statistics indicates a drop of 17 per cent in the cost of clothing, food, fuel, light, housing and sundries between the first half of 1928 and the first half of 1932, but while the bill sets up this comparison as the basis of the wage cut it limits it to 15 per cent. Congressional estimates that about $126,000,000 will be saved indicate the cut will be no greater than 12 per cent. Interest Rate Hiked Administration leaders hope that issuance of new currency and the passage of drastic economy legislation will enable flotation of securities, at the March 15 refinancing, at lower interest rates than those prevailing. This would make possible a considerable additional rate acceptable to purchasers. President Roosevelt in his Friday message to congress urged “the necessity of meeting great refunding operations this spring" as a reason for immediate passage of the measure giving him power to cut expenses. The government has been forced recently to borrow at 3■''* per cent, contrasting with rates of a fraction of 1 per cent not long ago. When this saving is added to the $525,000,000 saving estimated from the economy bill the limit of administration retrenchments, at the present, time, almost will have been reached.

State Legion Protests Adjutant. Ollie H. Davis of the Indiana department of the American Legion has sent the following telegram to Senators Arthur R. Robinson and Frederick Van Nuys, protesting the national plan to slice compensation: "The Indiana American Legion objects strenuously to granting the President authority to repeal or amend existing veterans’ law without the approval of congress. In view of testimony presented at the* last session of congress there is no good reason why veterans should be descriminated against or national defense impaired for the sake of so-called economy in government." MIDNIGHT DEADLINE, M'NUTT SIGNS 21 BILLS Chain Store Tax Bill May Die Through Pocket Veta. With midnight the deadline for signature of bills, Governor Paul V McNutt signed twenty-one measures before noon today, and said that others would receive his consideration this afternoon. Possibility that the chain store tax bill might be allowed to die by pocket veto was indicated after sev- j eral delegations had visited the Governor to urge against his signing the measure. The Governor's answer to the groups was, "I want to be fair in this matter, and I will consider it I carefully." He hinted that the pocket veto might be used. A house bill permitting interest from Barrett law payments In Indianapolis be placed In the special. assessment delinquency fund was among the bills signed. In the Air Weather conditions at 9 a. m.: South southeast wind, 12 miles an hour; temperature, 25; barometric pressure, 30.30 at sea level; celling, high, overcast, unlimited; visibility, - 16 miles; field, good,

CITY BANKS MAP REOPENING PLAN Renewal of Business Early Next Week Expected by Officials. (Continued From Page One) working out specifications for two classifications of state banks. It is expected some state banks will be given less restrictions than others when reopening is permitted. John C. Kidd, state insurance commissioner, announced a partial moratorium on insurance cash loans. Loans will be limited to 20 per cent of the cash surrender value of the policies, with a maximum loan of SIOO. News that the reserv# banks had been ordered to reopen this morning was received by the bankers Friday afternoon at their second clearing house meeting of the day. Functioning of the federal reserve system will give local banks opportunity to clear thousands of checks on banks in other cities and to determine exact status of accounts of local depositors when checks on local accounts held in other cities can be cleared. Not Sure of Policy Bankers here are uncertain what policy they will be forced to adopt when they open for business. In newspaper dispatches from Washington, Treasury Secretary William H. Wocdin indicated federal reserve member banks which reopen must open 100 per cent, which was taken to mean that they must abandon percentage withdrawal restrictions. At the same time, the secretary was quoted as saying that the banks must not release funds for hoarding. With bales of the new currency in hands of the federal reserve banks and being shipped out to member banks today, discussion of the issuance of scrip here practically had been abandoned. The new currency is being distributed to banks pledging acceptable securities as collateral. Meets Insurance Men State banking commissioners have been authorized by Woodin to pass on soundness of state banks and grant authority to reopen. Their banks are being considered in alphabetical order, Symons said. McNutt today will hold a second conference with a group of insurance men on problems arising as result of the bank holiday. The conference was understood to relate to a proposed moratorium on loans and cash surrender values n policies. When the local banks reopen, it is expected they may permit unrestricted checking, but they may limit the amount that may be withdrawn in currency. When the banks reopen, it was said, depositors will be asked to make out three separate deposit slips. Three Slips Required On one slip they will list cash deposits. On the second will be listed checks drawn on accounts in other local banks. These checks will not be credited to the depositor's account, for at least two days, to permit clearing. The third slip will contain a list of checks on out-of-town banks. These checks will not be credited to the accounts in less than four days, and in some cases not for a week or ten days, because of the fact that clearing of checks will be slow for a time, due to the holiday accumulation. It was announced today that the Pennsylvania railroad has authorized its agents, conductors and dining car stewards to accept scrip in payment of services given by the railroad, until further notice. HUEY LONG AIDED BY ROBINSON IN REVOLT Black Day Forecast by Kingfish if State Ranks Are Neglected. By United Press WASHINGTON. March 11.—Senator Huey Long (Dem., La.) warned the senate today that if the nation’s banks are opened without adequate protection for state banks, “it will be the blackest day the United States ever had." The Kingfish resumed his battle in behalf of state banks with a sarcastic attack on Senator Glass Dem., Va.), to whom he implied a pride of authorship in bank legislation that prevented acceptance Thursday night of the Long amendment to bring state banks directly under federal protection. Senator Arthur Robinson (Rep., Ind.) interrupted to indorse Long's condemnation of the bank bill and to insist, that protection be given state banks. Fractures Leg in Street Fall Edith Raymond, 54, of 118 East Vermont street, was the first victim of the city's March snow today when she suffered a fractured left leg in a fall on slippery pavement at New York and Pennsylvania streets. .She was taken to the city hospital

Expects to Add to Saloon Relics After Dry Repeal

•‘A V.y

The Rev. Herbert E. Eberhardt, superintendent of Wheeler Rescue Mission, and souvenirs of pre-prohibition days, including back-door of Old Elm saloon.

Wheeler Mission Head to Exhibit Collection at Open House. Repeal of the eighteenth amendment is looked upon by one collector of oddities as .an ample opportunity to add to his collection of souvenirs from the saloon days. The collector is the Rev. Herbert E. Eberhardt, superintendent of the Wheeler City Rescue Mission, 245 North Delaware street. He will show his collection of souvenirs to the public when “open house’’ is held at the mission during the fortieth anniversary week of its founding, April 24. The mission formerly was the site of the Old Elm saloon which gained its name from the huge elm tree that shaded its front door. Visitors to Be Welcome The back door of the saloon is in possession of the mission and Eberhardt. There also are bottles, a blackjack, and smoking tobacco taken from drunks during the saloon days. A bronze tablet on the wall of the mission's auditorium marks the spot where the Elm saloon's bar was located. Visitors at the anniversary celebration will be shown the bronze tablet, and permitted to inspect the four-story brick structure at 245 North Delaware street where thousands of homeless men have been housed and fed. Services are held at the mission nightly. ’ Foresees Gain in Drunks Eberhardt forecasts that repeal of the eighteenth amendment will increase the number of drunks applying to the mission for aid, in addition to augmenting his collection of bottles and saloon accessories. Officers of the mission are Harry W. Krause, president; W. C. Borcherding, vice-president; Royer H. Brown, treasurer; Eugene C. Foster, secretary; Isaac E. Woodard, Charles A. Reeve, J. M. Milner, Ed Jackson, Wallace O. Lee, Fred M. Dickerman, Harper J. Ransburg, Edward Dirks, Robert Nipper, William E. Osborn and Henry Ostrorn, directors.

HEAR ARGUMENTS IN BOUNDARY LINE SUIT Williams Likely to Dissolve Order in Perry-Decatur Controversy. County commissioners next week may decide location of a boundary 5 line between Perry and Decatur : townships, It appeared today after ' arguments on a restraining order in superior court two. j Judge Joseph R. Williams indi- | cated he would dissolve the tempoI rary order, which restrains the county board from fixing the line. However, Williams overruled a demurer filed by Perry township against Decatur's suit for injunction, to prevent action by commissioners. Climaxing almost a year's fighting over the boundary, Decatur filed suit last week, when it was reported commisisoners were to fix the line to place the $12,000,000 plant of the Indianapolis Power and Light Company in Perry. Both townships want the plant within their own boundaries for taxation purposes. Emsley Johnson, Decatur township attorney, today argued the Decatur schools would have to close, if the township is not allowed to collect on the power plant. He asserted the tax rate is based on property valuations including as'sessments on the plant. MRS. BOULDEN BURIED Services Held for Widow of Former Attorney, Legislator. Funeral services were held Friday for Mrs. Laura B. Boulden, 65, at her residence, 2542 North Alabama. She died Wednesday night. Burial was in Crown Hill cemetery. Mrs. Boulden wni the widow of Asa H. Boulden. former attorney and member of the state legislature, who died three years ago. She is survived by a daughter, Miss Vesta V. Boulden, and a sister, Mrs. Martha Mendenhall of Cincinnati,

THE INDIANAPOLIS TIMES

SENATOR DAVIS IS UNDER KNIFE Suffers Acute Attack of Appendicitis Flying to Pittsburgh. By United Press PITTSBURGH, March 11. United States Senator James J. Davis was reported resting comfortably in a hospital here today after an emergency operation for appendicitis. Senator Davis suffered an acute attack of appendicitis while flying to Pittsburgh from Washington Friday night. Arriving in Pittsburgh, he immediately consulted a doctor, w T ho advised the operation. He was taken to South Side hospital, where the operation was performed at 1 a. m. His condition was reported as satisfactory later.

FRISDO REGION BELIEVED SAFE Little Danger of Quakes Spreading to Area, Says Expert. By United Press PALO ALTO, Cal., March 11.—San Francisco, once destroyed by earthquakes, w r as believed safe today from any shocks radiating from the Los Angeles district by Profesor Bailey Willis, noted Stanford seismologist. Professor Willis reported that seismographs at Stanford, Berkeley, Mt. Hamilton and Golden Gate Park recorded no activity of the San Andreas fault, cradle of all San Francisco disturbances. POLICE TRAP TWO IN GROCERIES THEFT Follow Boy to Cousin After Cache of Loot Is Watched. Traced through the arrest of his 13-year-old cousin, Felix Moralls, 29, of 824 South West street, is held on vagrancy charges pending investigation of alleged thefts of groceries. Police arrested the boy after he returned Friday to the hiding place of a sack of groceries under a loading platform at Schnull & Cos. warehouse, Sand street and Kentucky avenue. Frank Heuser, 1422 Herschell avenue, an employe there, told police he saw a boy and a man conceal the sack earlier in the afternoon. Police waited nearby until the boy returned. When the boy was taken home, Felix Moralls was arrested there on description given by Heuser. A quantity of tobacco and groceries also were found in the house, police said. The cousins denied any thefts, claiming the boy had found the groceries. RUTLEFTgROUP TO MEET Mayor Sullivan to Talk on “Butler and Indianapolis."

Butler Luncheon Club will hear an address Tuesday noon in the Columbia Club by Mayor Reginald

H. Sullivan on “Butler and Indianapolis," with Lawrence Vollrath as toastmaster. Henry O. Goett, city clerk, will be special guest and will introduce the mayor. The meeting will be the club's fourth since its founding in November. Alumni committee members in charge will be Vollrath. chairman ; Miss Doro-

Vollrath

thy Ragan and Mr. and Mrs. W. Brewer Graham. Invitations have been extended to all alumni, former students and friends of the university.

DETERMINED TO PUT COUNTRY ONJTS FEET President Ready to Weed Out Good From Bad in His Drive. BY RAY TUCKER Times Staff Writer WASHINGTON, March I.—ln order to clean.up the nation's banking system, state and national, President Franklin D. Roosevelt will retain dictatorial power for a Ion" time, despite expectation of partial reopening of banks within the next few days. Under the Fletcher-Steagall act just passed at his request, he can continue as banking czar while treasury regulations permit the nation's banking mechanism to function. But it is the President’s plan virtually to liquidate the nation's banks through federal and state authorities, to weed out the good from the bad, and then present a program for permanent reconstruction. Mr. Roosevelt will take advantage of the present situation to renovate and then reform national and state institutions, and to carry out his inaugural pledges. Had it not been for the emergency, he might not have been able to reach state systems; but now he can. Now Is the Time to Act The power invested in him by congress may point toward strengthening and possible unification of the forty-nine banking structures of the country. The success which has met the chief executive’s moves in the legislative and financial fields has convinced him that now is the time to act. The speed with which congress enacted the currency expansion measure and continued his war-time power, and the popular reaction, lead him to believe the nation is behind him. Reforms proposed by leading bankers, including those advanced by W. W. Aldrich, head of the Chase National Bank of New York—the world's greatest banking institution —indicate that former foes of even minor changes now are ready to go along. System Near Collapse In short, the nation may be facing as revolutionary an alteration in its banking system as it did when Woodrow Wilson and Carter Glass (Dem., Va.) created the federal reserve system twenty years ago. Although reluctant to admit it, it is conceded in official quarters that the system approached collapse under the strain of changed industrial and financial conditions. Measures to enable banks to reopen and perform normal functions during the period of real reform already are under way by means of treasury regulations. Any bank, no matter its condition, may reopen at once to handle cash for such humanitarian purposes as pay rolls and life’s necessities. Treasury officials expect state authorities to see that this regulation is complied with, .but not overstepped. The twelve federal reserve banks, which are the main reservoirs of the system, were authorized to open today for distribution of new currency and conduct of usual operations in their districts. Member banks of the reserve, acting through the federal reserve banks of their districts, may obtain a license to resume all business from the secretary of the treasury as soon as national examiners are satisfied as to their soundness and solvency. State banks may resume full operations when they have convinced state banking authorities that they are solid. Although complete jurisdiction over state banks rests in Secretary William H. Woodin and the controller of the currency, and, theoretically, they must obtain treasury licenses, federal officials will accept and act on state authorities’ recommendations. Standards for solvency of state banks are the same as for national banks. * Must Win Clean Bill It may take several days to reopen either kind of banks, although some probably will swing back their doors on Monday. Banks so opened will operate on a basis of 100 per cent withdrawals on demand. Despite queries by bankers, there iis no indication whether, in the near future, some banks may be allowed to do business on a 50 or 75 per cent basis, as was resorted to before the President’s proclamation. Apparently "his question awaits settlement. It is in this thorough examination of national and state banks that the instruments for renovation and reorganization rest. No bank of any kind can go back into business until its assets have been examined, and it is given a clean bill of health. Some will go into the hands of federal conservators created in the new banking bill, and reopen after careful inspection, while others never may reopen. SEEK SEWING WORKERS Red Cross Unit Official Asks Volunteers for Emergency Task. Mrs. William H. Coleman, head of the Red Cross sewing activities at 110 South Meridian street, today issued an appeal for additional workers at the shop to complete emergency work. She said many women who have been sewing in units have disbanded because their quotas have been completed and would desire to continue their activities by enlisting for work at sewing headquarters. Forty-four thousand garments heve been completed and fifteen thousand yards of cloth remain in stock, much of which is being made into special sizes for needy families in Marion County.

ANNOUNCING SCHIFFS BIG NEW OUTLET SHOE STORE 109-111 S. Illinois St. (Former Shoe Market) Other SCHIFF Stores >*o. I—ms W. Washington So. 2—2.59 £. Washington

Spirit of Anti-Injunction Law Flouted, Say Liberals

Use of Federal Judges and Receiverships Is Charged. By Scripps-Hoxcard Xetcspapcr Alliance WASHINGTON, March 11. The spirit of the Norris-La Guardia an-ti-injunction act is being flouted by some employers, according to labor leaders and Civil Liberties Union spokesmen. Attention is being drawn to an attempt to evade its spirit, first, in the use of federal court receiverships and judges in breaking labor strikes and, second, in appeal for injunctions in state courts instead of federal courts as formerly. In New York the Irving Trust Company, acting as receiver for the Foltis-Fisher chain of restaurants, is asking Federal Judge Bondy to punish for contempt certain striking members of the Food Workers’ Industrial Union. This is the first attempt since the anti-injunction act was passed to exjoin a strike by means of the old weapon of federal court receiverships. Similar practices in the depression of the '9os caused bitter labor disputes. The Civil Liberties Union is interceding in the hope that Judge Bondy can be persuaded to uphold the Norris-La Guardia provisions at least to the extent of providing jury trial for contempt. Since Judge Bondy is custodian of the property, and has named its receiver, he is considered a partisan against the strikers. In Annapolis, ex-Congressman F. H. La Guardia, one of the authors of the anti-injunction act, told the Maryland legislature that states must co-operate to make this act effective. He said that a scant eleven states have state anti-injunction laws, and that employers now are seeking injunctions in the state courts to evade the terms of the new law. He urged that all states pass such anti-injunction laws to block the widespread use of state courts for unfair anti-union injunctions. The American Federation of Labor also is urging its state affiliates to press for such state laws.

BLOOD AND SKIN GIVENJOR GIRL Jobless Carpenter Offers Self to Save Life of Burned Child. After examination of nearly forty persons Friday, physicians at city hospital were preparing today to replace the seared and scarred skin on the body of 10-year-old Kathleen Carroll, 504 Dorman street. Through the sacrifice of James Strode, 2602 East Washington street, an unemployed carpenter, Kathleen will be given a chance for recovery from burns suffered nearly four months ago. Strode’s blood and skin was found compatible with that of Kathleen. Classification No. 1, in which Kathleen’s and Strode’s blood falls, is rare, physicians said, and his was the only found suitable of all persons examined. The operation will be today or Sunday. Approximately nine square inches of skin w'ill be required. When informed he had been selected. Strode said: “I’m glad. I hope that I can help that little girl get well."

TROOPS CALLED IN SAN PEDRO LOOTING Governor Rushes Aid After Warning by Radio. By United Press SACRAMENTO. Cal., March 11.— Looting broke out in San Pedro, badly damaged earthquake center, early today, and troops of the National Guard were ordered rushed there by Governor James Rolph Jr., when he was informed that civil authorities were unable to cope with the situation. Governor Rolph was informed of the alleged looting in a radio communication from Major Harris, of the California National Guard at Long Beach. Major Harris said he had the One Hundred Sixtieth battery of guardsmen assembled and the Governor ordered the troops dispatched Immediately. Colonel Paul Arndt, Sacramento, was placed in temporary charge of military affairs by the Governor. FIRE SPREAD IS FEARED Extinguishing of All Flames Asked by Long Beach Chief. By United Press LONG BEACH, March 11.—The chief of the fire department early today asked Long Beach residents to extinguish all fires, explaining that a city-wide fire might follow the disastrous earthquakes of last night.

The Strong Old Bank of Indiana The Indiana National Bank of Indianapolis

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DANCE CHAIRMAN

j; "' s: kSS' l Wi

Mary Ann Adams

Mary Ann Adams is chairman of the committee arrnaging a St. Patrick's dance to be given at Little Flower Hall, Fourteenth street and Bosart avenue, Friday night. Other on the committee include: Vincent Concannon. Louis Kelsch, Tony Kennington, Walter Lenahan, Bernard Smith, Viola Binder, Mary Healy, Mary and Julia Qualters, Irene Widolff, and Dorothy Wilks. Music will be furnished by the Indiana Vagabonds and the dance will be in cabaret style, with a floor show.

INDIANA SAILORS ON WESTCOAST Eight Hoosiers Stationed With Battle Fleet at Scene of Quake. Two Indianapolis young men and six others from Indiana are stationed with the United States battle fleet at San Pedro harbor, near Long Beach, the center of the quake zone. Gerald T. Davis, 3321 Ruckle street, is assigned to the U. S. S. West Virginia., and William M. Klee, 5145 Broadway, is stationed on the U. S. S. Nevada. Both are secondclass seamen. Local navy recruiting officers said there are thirty-two ships in the fleet and that 30,000 men are assigned to them. Lieutenant R. J. Townsend, in charge of the station in the Occidental building, said he had no reports from the quake area. Indiana men included in the enlistment are: E. W. Engil, South Bend; H. E. Meadows, Paragon; Paul Lamaritine, Richmond; J. T. Lord, Evansville, Arthur Hencke, South Bend; L. R. McQuiston, Terre Haute, and Edgar L. Moore, Kokomo. CITY POLICE RADIOS CATCH QUAKE NEWS Short Wave Sets First to Pick Up Reports. Although they were among the first recipients of news of California's earthquake, most Indianapolis police officers kept on policing Friday night. Short wave sets of the police cars brought in the police department broadcasts of Los Angeles and other California cities. There, police were ordered to every section of cities where there was danger of buildings collapsing as the tremors continued. They were pressed into service for first aid and in clearing debris. One of the first police calls from a California station was received by patrolmen Howard Sanders and Emanuel Bauer. It said: “All police squads stand by. Two hundred persons reported trapped in a falling building." Patrolman Otto Murphy said his police car radio brought in some news of the catastrophe, “but we were pretty busy last night and didn’t bother much with the reports." Sergeant John Eisenhut reported that he had received some reports from the west coast. He said there was no information on casualties, but a series of orders to aid in stricken areas. Other officers said they heard “some of it,” but found sufficient to do in Indianapolis and were unable to listen to the reports for any length of time.

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.MARCH 11, 1933

FLOOD OF CASH IS POURED INTO NATION'S BANKS Many Expected to Reopen Monday: Caution Given State Institutions. (Continued From Page One) fore their applications will be approved. Secretary of Treasury William H. Woodin announced. He authorized state banking commissioners to approve reopenings of state banks and cautioned them that he expected them to adhere to this same principle. Secretary Woodin indicated that reserve system member banks which reopen must open up 100 per cent. This was taken to mean that they must abandon the percentage withdrawal restrictions which many banks invoked before the holiday. To give the banks time to obtain additional currency before reopening, the twelve central federal reserve banks and their branches were ordered to open today and begin advancing the new currency authorized under the banking bill passed Thursday. Money Rushed lo Banks Bales of the crisp new money already have been rushed to the reserve banks from the bureau of engraving and printing here. Every hour of the day and night the presses are turning out additional millions of dollars’ worth. Federal reserve member banks immediately can convert virtually all their sound assets Into this currency. They can get SIOO of currency for every SIOO of go.vernment obligations which they desire to pledge with the reserve banks. They can obtain S9O of currency for every SIOO of other sound collateral. Pending reopening of the banks for full normal business, officials emphasized they may continue to release funds for pay rools, food, medicine, and other necessary household expenses, as prevously authorized. Administration officials felt gratified at the spirit in which many banks were taking advantage cf these authorizations and easing the inconvenence of the holiday on the public. Officials were graified, too. at indications of public co-operation in meeting the emergency. They noted with satisfaction that millions of dollars’ w’orth of gold was being returned to banks and postoffices. Thousands of persons stood in line in New York and other places to turn in hoarded bullion and gold pieces. As banks reopen, they will be under injunction to release no funds for hoarding. Evidence of any hoarding will be relayed to the justice department. Attorney-General Homer Cummings indicated that the department would be prepared to institute vigorous action against any one who violated terms of the President’s banking decrees. The emergency banking act provides a SIO,OOO fine or two years’ imprisonment for violators. Applications Are Relayed To facilitate the mecnanical process of handling applications for reopening, all state and national banks which are members of the federal reserve system have been directed to file their requests with their federal reserve banks. The applications then are relayed to the treasury, which has up-to-the-minute reports on the condition of all member banks. Because the treasury lacks data on non-member state banks. Secretary Woodin has authorized the forty-eight state banking superintendents to direct reopening of this class of institutions. The policy which will govern the reopenings was laid down by Woodin as follows: “It Is the intention of the secretary of the treasury to permit no (federal reserve) member bank to reopen at any time on a full 100 per cent basis unless or until the secretary is satisfied that such bank is a sound going institution. Must Avoid Risks “Any member bank not clearly within this category will not be opened unless or until further investigation discloses that it is a sound, going institution or unless or until a reorganization of some character will permit the bank so to be classed. “It is to be expected that state superintendents in granting licenses will take under consideration in determining their own policy the general principle to be adopted by the treasury as respects member banks, that in the interests of the depositors and of the country as a whole only sound institutions will be permitted to carry on all their usual fnotions, to the end that no bank shall be reopened for business on any basis that will run the risk of being forced to close again because of demands which it is not in position to satisfy.’’