BANKING HOLIDAY

Hokitika Guardian, 8 March 1933, Page 5

BANKING HOLIDAY

THE! LIGHTER SIDE

MERCHANDISE AS CURRENCY.

United Press Association —J3y Electru Telegraph-Copyright.)

NEW YORK, March G. The. stock exchange lias decided to remain closed- until further notice. Mr Hoover has called for wholehearted support of his successor’s plan for meeting of banking and economic crisis.

Governor Lehman announced that he would, in all orobability, extend the New York banking holiday to conform with Air Roosevelt’s decree. He has a plan for making available to depositors of sound banks throughout the State, a circulating medium, which would permit the business of the State to continue uninterrupted. The plans of the New York banks for the .issuance of clearing house certificates is completed. Encouraged by the speed in which the United States Government is mapping plans for re-opening the banks, the financial organisations in several States had printing presses humming to-day, to the tune of millions in scrip. It is generally expected that this medium of exchange will he used to replace money at least through the national bank holiday, Four States have already expressed a desire to reopen their institutions. Two of them, New York and Arkansas, have already petitioned the Federal Government, Minnesota and New Mexico expect to d 0 so. Arkansas has asked to be allowed to re-open on a restricted basis. New York asked permission to- resume business with scrip. The New York Clearing House Association has already had more than 200 million dollars worth of scrip on the presses.

Quips, grins and tall stories are on the lips of Americans. Tales of millionaires beseeching; their butlers for a spare dime, or folk with hundred dollar bills, being snubbed by changeguarding clerks. From the top to the bottom of the social scale, people are facing inconvenience with grins. Mr Hoover, just out of White- House, found himself with only a. small amount of cash, but was getting along. Movie folk in Hollywood had their fun. Jack Oakie issued his own scrip reading, “Compliments of Jack Oakie, who owes you dollars, and hopes you will get it.”

One New York hotel sent a messenger t 0 the church to gather the contents of the collection plates.

The “Daily News” fixed it so that boxing fans could-pay for fifty cent tickets for to-night’s golden gloves semi-finals, by presenting merchandise instead of cash, anything from cans of tomatoes .to brassieres.

• CANADIAN STOCK EXCHANGE.

£ STERLING “SKY-ROCKETS.”

MONTREAL, March 6

The pound sterling sky-rocketed, quotations in. terms of the Canadian dollar being 26 at 1 p.m. The pound closed at four dollars 23 cents Canadian. Trading with European grain buyers on the basis of tbe Canadian dollar, will he as soon as possible, in consequence of the exchange situation. Trading was at a standstill when the corn exchange opened, because no quotation was obtainable o n sterling. Later, a quotation was received by cable. Then for the first time in history, direct negotiations were with London on the basis of quoting sterling in terms of the Canadian dollar.

There are no actual pound transactions in Canada. The spectacular rise of the pound is attributed here to its heightened reputation in face of the uncertainty in the United States. In addition, it is believed that speculators are feverishly buying the pound in anticipation of heavy transfers of American money to England when the banking holiday ends. The Post Office Department has announced that ail money order business to and from Canada, with any part of the world, has been suspended. Canadian financial exchanges and markets are working an usual. The Toronto and Montreal Stock Exchange directors made it clear that if any wave of selling from the United States appeared in Canadian markets, they would be closed, but with the exception of the weakness of gold shares, the situation seemed to have no effect. United States currency is generally being accepted through the Dominion at par, pending later revision of the exchange rate. United States tourists, accustomed to receiving premium, found themselves in a puzzling plight as Canadian institutions declined to cash cheques, or grant any premium on money. •;

BANKS OPEN FOR NEW DEPOSITS WASHINGTON, March 6.

The limited re-opening of the banks of the nation to accept new deposits that will he subject to withdrawal without restriction, w.as authorised tonight by the secretary of the Treasury, Mr Y, 7 codin, in regulations under the authority of the President’s bank holiday proclamation. The Treasury has emphasised that no relaxation of the restrictions otherwise imposed on the old deposits is intended.