NATIONAL HOLIDAY

Hokitika Guardian, 7 March 1933, Page 5

NATIONAL HOLIDAY

FOR BANKS IN TT.S.A.

A COMPLETE GOLD EMBARGO.

(United Press Association —By F.ectric Teiegraph—Copyright; WASHINGTON, March 5. President itoosevelrb has proclaimed a National bands, huuiday until March 9th'. There will be a complete gold emoargo during tne holiday. President Roosevelt to-day issued a call fo-r the new Congress to meet in an extraordinary session on Thursday at noon to deal with the present emergency. It is stated the essential first oueinests of Congress will be the .present banking financial situation. Government officially who conferred" o-n Sunday with President Roosevelt had expected him to take aci-ion under the wartime law to close the banks for a week .and to impound all currency under the Treasury.. The law under which Mr Roosevelt would then aot is l the Trading with the Enemy Act, passed during the Wilson Administration. This measure empowers the President to- close the banks and bring th© currency into the-Federal Treasury, and it applies to gol-d, silver'and paper currency. Meanwhile the officials are understood to be preparing to meet the emergency by th© issuance of clearing house certificates based on bank deposits, so that business may nro-ceed meanwhile.

MOVE TO PROTECT THE BANKS.

AND FORCE OUT HOARDED

MONEY.

WASHINGTON,, March 5

The Presidential action to close all the United States banks until March IB to force the hoarded money out of hiding and to prevent exports of gold was predicted on Sunday night by intimate adviser© of President Roosevelt, after a series of conferences. The proclamation was expected before business opened on Monday; issued under the War Time Trading with the Enemy Act. This is described as empowering the President to- close the banks and damp down on gold experts. The purpose of the contemplated move is said to he protection of tho banks and bank deposits until the new Congress on Thursday can take action and relieve the situation.

Another objective is outlined as the end of the money hoarding movement, which is said to have grown to immense .proportions in recent weeks. President Roosevelt on Sunday night issued a proclamaTon taking absolute command by the United States Government of the nation’s gold supply. The proclamation -prohibits tho hoarding of coin or cmrenoy, and places an embargo on gold and .silver exports.' It prohibits the earmarking of American' gold by foreign nations, and declares s. national holiday for banking until 'Thursday, and also to bridge the time till Con grass meets, national regulations for the issuance of clearing hofise certificates.

Immediately upon the issuance of the proclamation, Treasury officials prepared to put into effect certificates to give the nation a temporary medium of exchange. The proclamation is interpreted by some financial authorities ns a- temporary suspension of the gold standard, but cully -for the period of the banking holiday, ex lending through Thursday. “A. VERY WISE ACTION.”

One leading authority said: “It b a very wise action,” which would terminate a drain on American gold abroad, which had reached serious proportions. It would at the same time give Congress time, to enact stabilising legislation of a. more permanent nature. In the meantime the banking organisations are ready to issue hundreds of millions of dollars in clearing house certificates, which together with the currency already in circulation, would permit the transacting of- adequate business during the period of emergency. ! The Secretary to the Treasury, Mr Woodiu, amplifying Mr Roosevelt’s proclamation, said, emphatically, that the United >States is not off the goM standard. “Any Isuch iinteupretation upon the Presidents’ pronouncement is a grave mistake,” he said; adding that it was a state of “managed currency.” In this connection, he called attention tn Switzerland, which, lie said, is on the gold standard, but forbids the exportation of gold. He stated that’ as one of the features of the plan is designed to stop gold boarding, he felt it within the purview of the Secretary to the Treasury to exercise broad powers, but that nothing along this line had been worked out.

Postal savings funds will be temporarily inaccessible, due to the closing of all banking institutions except isolated ones.