U.S. FINANCE CRISIS

Hokitika Guardian, 8 March 1933, Page 5

U.S. FINANCE CRISIS

EUROPEAN CONCERN

nf' CONFIDENCE IN MR ROOSEVELT. (United Press Association—By F .ectric Telegraph—Copyright) .-LONDON, March 7. TJhe boldness aihd .promptness of President Roosevelt’s/ action lias - surprised Europe. There is a feeling that the. United States has produced the \ right man to deal with the crisis. While London interests-are affected, ! they have..remained calm, bntothey are by no means inactive. Lengthy conferences lnwe occurred at the British Treasury. The Barak:of England 1 -'is"in constant telephonic com niun i cat io n with the United States Treasury 'and bankers. Public .interest acL-clay long has been intense, with a -widespread hope that good may come- out ..of the evil of America’s present difficulties, •nod faicaJitate a : esalutik&i those that Europe hadi so long endured. The “Times” i answers the question of whether America:, is ;off the gold . igtapdard with - Both .“yes*’ and “no.’' ) It certainly cannot be said America is on gold or any stanadrd so long as banking and exchange operations ; are prohibited by law, _it says, but when the banks re-open ofi Friday,-' ori maybe after a further extension, - -the gold standard, will become effective again, unless, indeed, some other* 'decision* is taken in the interval'; but any'imch* development'is unlikely. -!i '' ' The “Daily' Telegraph”; says it would be rash to assume America will not soon revert tothe'gold standard, for out of &6D million* worth of gold in her vaults l , only 140 million sterling is held on. foreign account: Britain abandoned gold owing to heavy foreign withdrawals. America lias 'less fear from the foreigner that from''her own citizens.

BANKING FUNCTIONS PERMITTED

f MEETING THE PAY-ROLLS

WASHINGTON, Mp-ch 6. Six banking functions, permitted under the hanking holiday, were announced by Mr Wood in, U.'S, Treasurer, including’ provision's for handling by the banks of-drafts for food-ship-ments, their transportation and delivery, free access to safety deposit boxes, and authorisation of Fed&ral ■Reserve. ' All other banking institu-t-’ons can make change, but are forbidden to pay out gold or gold cerfci.fi- , cate& in the process. All 'banking institutions are permitted to cash Vcheques drawn on. the Treasurer of theUnited States/ also limited''/'currency'' other - than gold, ■or gold certificates. upon request/ are authorised to return, without restriction, all cash, cheques, and other items delivered for ; deposit, or collections which were receiled after the last closing of -busiboms, and not entered on the bank books.. All banks-are,-author-ised to . accept payments in '.cash, and,, any other form of payment acceptable •to them on account of . .no settlement of obligations due to l tbe banks from customers.' The objective, of ,the _ authorisations is to make sure, that j”’' payrolls will bo met as soon as.possible, r aTl d that food supplies will he available lo all communities. Mr -Woodin. said that the. pay rolls of the United State* must be-met. If necessary, the restrictions nilaced unon banks is issuing cash would be lifted to oermit payment. \. t , iVfr Woodin explained that, where \ possible all nay rolls would.be met by dlearing 'house certificates .or scrip 'iirsued by local banks, but where no such exchange means was available, he authorised the issuance, of cash. Sunport of Mr Roosevelt’s banking proclamation jvm? shown to-day ,by a conference of S-tate Governors. Several persons were injured to-day, in' fighting between the police and the unemploved: when the officers broke u,p a demonstration. FRENCH CHAMBER MOVE, . P 4RIS,. March 7. In view of the American crisis, tbe French 'Chamber to-day will be asked to accept M. Bonnet’s -.hundred million sterling funding loan, enabling the Bank of .France to have m free, hand in derim~ with fereiom exchange.