MORE REASSURANCE

Hokitika Guardian, 7 March 1933, Page 5

MORE REASSURANCE

* U.S. BANK CRISIS NATIONAL FEELINC IMPROVED. (United Press Association —By Electric ' Telegraph—Copyright) NEW YORK, March 5. . A ’ greater ' feeling' of reassurance ' throughout the nation seems to prevail 'following.’the- past 48 hours’ sett- ) - sational developments, in which' ’ the ).new President inaugurated a national bank holiday,'• winch 1 was effected l'almost .simultaneously,. . _ '* Throughout ’ the day Mr- '-Roosevelt conferred with-Cabinet and banking officials, and appeared to -be forming remedial measures along generally the same lines. Firstly, Mr Roosevelt jifioclaimed a special session of Congress, convened for Thursday, and let'it be known he would have a. definite plan

for presentation;. , ! iv No official announcement of the nature thereof is made, but the following main points hav© been discussed:

f . Continuance of the bank holiday until / after Congress eriacts general banking legislation; the' lifting for 90: days of the 40 per cent gold reserve-behind the Federal Reserve botes; the formulating of a system of insurance scrip- by the Treasury through the Reconstruction Finance Corporation temporarily to take the place of currency, and permit tho maintenance of bank deposits.’

AN ADMIRABLE BEGINNING

ROOSEVELT’S FIRST STEPS

LONDON, March 6. The “Times” says': President Roosevelt madean admirable : ' ’ beginning, with high, resolute, military breaths in every line of his* - speech, which is.instinct with confidence..^that' th© action- promised - would be - successful to set America on the w'aiy'rto re-

j overy, in itself a neessary 1 Y tion to a world recovery. If Mr Rposev volt’s courageous words . afe - followed by r -equally courageous * action, ' they may lead th© : whole world " back to sounder and mere secure prosperity. , The ‘ ‘Financial Times”; siys: Mr , Roosevelt has tq face a situation utterly unlike that which Britain was confronted with eighteen months agb. The confidence was v implicit,- f and enabled them to face cdmposedlj r ’even the'suspension of the ' gold standard.- Mr Roosevelt has-.to deal with a naton ; which,'to a.; great extent, bias lost be-

lief ( in its banking system, "and eyien to some extent in its national cury rency. Federal backing for all. deposits will certainly involve-the" 'country' in an ultimate 7 loss, which cannot be at present ascertained.

REACTION ON CANDIAN TRADE.

flphe only reaction to Canada of the modified banking holiday in the United States is likely to be a general slowing up of trade with that country for a few days, so Mr Morris Wilson (general managter of the Royal Bank of Canada) stated. V The “Toronto Mail and Empire,” V -in an Ottawa despatch, said: “If the / pound sterling and Canadian dollar are brought closer to parity, it may solve * the Canadian domestic financing pro- . blems for the Dominion and the provinces, and result in' the flotation of a Canadian loan of perhaps two hundred .million. dollars in Britain within the next few months.”

CANADIAN BANKS POSITION

TORONTO, March 5. _ “Canadian banks are likely to be carrying some of the American banks before we are through,” said Sir John 1 Aird, president of the Canadian Bank of Commerce, commenting on the happenings in the United States banking circles.” It is absurd to suggest there is any likelihood of a Canadian bank holiday. Our, banks a re not; affected adversely by the United States banking situation, he declared. BANK HOLIDAY IN CUBA. ■ HAVANA, March 5. President Pachada had issued a decree for a four day bank holiday throughout Cuba. NO DEALINGS IN THE DOLLAR. (Received this day at 9.30 n.m.) LONDON, March 6. , The London Exchange has ’resumed dealings in all foreign 1 currencies, ex--1 cept dollars. ,