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HOLIDAYS OF BANKS'
HAVE TWO CAUSES1 Withdrawal of Gold by Eu rope and of Currency in U. S. Blamed. BY MARK SULLIVAN. The Immediate cause of the New York and other bank holidays inaugu rated Saturday had two parts. On Friday, gold was withdrawn from the New York Federal Reserve Bank in such quantites as to raise a reasonable ques tion whether the Nation's monetary gold reserves might be depleted if the pace of withdrawal should be kept up. These withdrawals reflected fear in Europe and at home, whether the United States Government can or will continue to keep its currency redeemable ! in gold Thus one of the primary ques tions which must be answered by Cong ress is whether the country will con tinue on a gold basis. The other immediate cause of the bank holiday was the withdrawal of ordinary currency of all kinds from Federal Reserve banks in New York and elsewhere in such quantity as to raise a question whether the Govern ment could supply the demand. The quantity of currency which the Goxern ment can safely give out and still stand ready to redeem in gold may be said to be roughly 10 billion dollars. The quantity normally in circulation is about 5 billions. Recently the amount j lias increased to more than 6 billions. Last week, more was taken out at the rate of about a hundred million dol lars a day. The cause of this withdrawal of ordi nary currency was both a fear and a condition. The bank holidays in the various States put bank deposits and checks out of use. In this condition there was need for currency. Thus the other primary requirement now Is action that will reopen the banks. Michigan Action First. To go farther back than Saturday, so far as any one event in the intricate chain can be called the first, it may be regarded as beginning with the Michi gan bank holiday in February. So soon as Michigan had been followed by Maryland, was apparent the movement would spread and would call for deci sion by Washington about appropriate action. The relation of Washington to the situation was made intricate, of course, by tne imminence of a chtnge of administration. To say that attempts at co-operation between Presdent and President-elect came to nothing would be true, but that statement standing alone would be misleading. There were repeated conferences between groups in- i eluding Secretary of the Treasury Og den Mil's and ether officials of the old administration and groups including Mr. Roosevelt's appointee as Secretary of the Treasury and his other advisers. I The two groups had complete mutual respect for each other's good faith. As . an incident of their meetings. Se-retary Mills agreed to cancel a trip to Cali fornia in order to help his successor carry over. Mr. Milk' important as- i Sistants were asked to remain in office 1 for some time, and freely consented. In the same spirit. Mr. Roosevelt asked Gov. Eugene Meyer of the Federal Re serve Board to remain in that post. The chief reason for failure of the c'd and new administration to agree on taking some step before March 4 was lack of unanimity of opinion abaut whit the step should be. It was not that Mr. Hoover's advisers had one pro gram and Mr. Roosevelt's another. The cleavages of opinion ran at right angles through both groups. From day to dav it became apparent that the ultimate program must proceed from the new President, for tlie reason that anything done about banking must fit into the new administration's financial and economic program as a whole. It was also apparent, that snv strp taken be- > fore March 4 wculd have to be carried out in its details after that date. This was aporeci'ted as a good reason whv Mr. Roosevelt should hesitat" t"> aeccrjt re ponsibility for a str>i until he should have power to carry it out. and to fit It into his .program as a whole. Bankers Differ in Opinions. Thp differences of opinion among financial advisers of both administra tions were duplicated by and to some extent caused by differences of opinion among leading bankers. Also the situa- I tion changed from hour to hour, and a step which might have been advisable In the forenoon became inadvisable in the afternoon. During th? tense hours Friday night, after the necessity for ac tion became imperative, there was de bate as between two broad plans. One was that the President, either Mr. Hoo ver on the morning of March 4 or Mr. Roosevelt immediately after noon, should declare a bank holiday by national action. The other plan was that the Governors of all the 48 States should complete what some 30 of them had already done. In the meetings of ad visers there were members of the old administration and members of the new favoriog each plan. The situation was made complex by the fact that as late as midnight Friday some leading New York bankers believed that a bank Teachers Wait Two Months for Checks, Then Bank Closes Br th» AfliocltUd Pr«M. GLOUCE8TCR, N. J.. March 4. —Eighty Olouceiter school teaeh era went unpaid throughout Jan uary and February, but flntlly prevailed on the Board of Idu cation to pay each of them $90 on account. Today they received their checkt—and the bank closed SO minutes after opening because the Governor proclaimed a bank holiday. holiday was unnecessary and inadvisable either by the State or the Federal Government. A broad cleavage of opinion from the beginning was between those who felt that the whole burden of action should be taken by the Government, and thoee who felt the banks themselves could and should handle the aituation themselves by setting up mutual mechanisms through their clearing house associa tions. Action by the clearing house associations is still favored vigorously by some of the most powerful Democrats in the Senate and elsewhere who are among President Roosevelt's advisers. FRENCH WRITER ORDERED TO QUIT PRUSSIAN SOIL Veteran Correspondent Accused of Sending Report That Nazis Started Reichstag Fire. By the Associated Press. BERLIN, March 4—Camllle Lout re. for 15 years Berlin correspendent of the Paris newspaper Petit Parisien, has been ordered to leave Prussia for two months after having been charged with writing that the Nazis were guilty of incendiarism in the Are which badly damaged the Reichstag Building last Monday. M. Loutre denied that he made such a report and also claimed that his newspaper had consistently favored Franco-German understanding. Authorities at first expressed a desire that M. Loutre leave within 24 hours, but then conceded him time to arrange his personal affairs. M. Francols-Poncet. French Ambas sador to Germany, visited Foreign Min ister von Neurath yesterday and ex pressed the French government's dis pleasure at the contemplated expulsion. FOR ONE WEEK ONLY BRAKE RELINING SPECIAL FORD-A $ J 75 CHEV. •30—'32 GENUINE RAY BEST OS LINING USED Above Prices Are Complete and la elude Htgrh-Quality Material. Labor and All Adjustments. COMPLETE HYDRAULIC SERVICE GENERAL BRAKE SERVICE 903 N St. N.W. . DE. 5483 i HO CONNECTION WITH ANY OTHI* WASHINGTON MORI M 1™, «•* ■ Ready With the New "Jigsaw" Another reason why It's "LANSBURGH'S for bags" Whether you've succumbed to the jigsaw puzzle craze or not, you'll be captivated by this bag! Its initials fit into a frame exactly like a puzzle. Just fit the letters and they interlock. Made of calf, patent leathers or silk fabrics in lovely new shades of grey, beige, navy, white, black or brown. STREET FLOOR—LANSBL'RGHS. RUSSIAN-ITALIAN IRADE WILL HALT Two-Year Experiment of Fascists With Soviet Com merce Ends in Regret. ROMS W).—Italy's 2-year experi ment of trading with Soviet Russia hu ended In regret and a determina tion not to renew it. Her decision to denounce the prefer ential duties section of the commer cial treaty of 1934 and her refusal to renew the trade agreement are definite expressions of dlsiruntlement over the fact that— Russia got the lion's share of the trading, and Italy Is left holding the bag with half a billion lira in promis sory notes. In the two-year experiment Russia bought machinery, dyes, ships, air planes, motors, tractors, marble, wine and fruits sent In Italian bottoms. The ships brought back Soviet grain, oil, graphite, manganese, Iron, itMl ana lumber. At the end of the first year Italy found she had Imported $29,000,000 worth and sold $14,000,000. In the second year the adverse balance was cut to $5,000,000. Italy Paid in Cash. Moreover, Italy paid largely In cash. The Soviets paid mostly In credit, run ning from 9 months to 52 months. Most of this paper Is still unliquidated, since the Bank of Italy will not redis count It. The notes that have expired have been promptly paid. But the ac cumulation of paper when they want cash annoys the manufacturers. Lastly the Soviet purchasing agents came to Italy and bargained with Italian manufacturers as competitors. The Italian purchasing agents could buy only through the Moscow government and at set prices. England will not pay Its subsidy to grand opera this season. AMATEUR SEAMEN HAVE LONDON CLUB Men and Women "Go to Sea" Once Each Week in Rendezvous in Business Section. , LONDON (N.A.N.A.).— In the heart of London's business world is the "Little Ship Club," a haven where the 750 members, bronzed and cheery men and fresh-faced girls — m their dally lives they are Insurance men, shipping clerks, stock brokers, typists and bank clerks—come to learn all about spin nakers and mainsheets, cleats and gafls, figure-of-eight knot* and rolling hitchea, and, In fact, all that appertain! to the art of sailing and motor boating. You may Join the club whether you command a proud 40-tonner or tack timorously In a Thames dinghy, and among the members are men and girls who frequently pilot their craft across the North Sea. There are about SOO ships manned by club members and I •very Bummer the club holds a North Sea race from Brlghtllngsea to Ostend. One night a week at the club Is given aver to knotting, splicing and rigging, when Hlglty Halllday, a naval architect ind the club's honorary Instructor, dem onstrates the mysteries of the bowline ind the sheepshank, and, by means of the full-sized cutter rig erected at one and of the club room, shows how on* nay reduce sail or splice a wire. Ordinary language is abandoned when one enters the club, and to Interpret snatches of conversation by the usual rules may be a perilous adventure. If, for Instance, you hear a pretty girl re mark to a friend: "I brought the old girl round and tried to get ner hitched up with a nice steady boy—one of those nan-o'-war chaps—but she simply lifted her nose and ran clean past," you must be quick to realize that "boy" should read "buoy" and that the "old girl" In the ease is probably a handsome little calling ship. (Copyright, 1(13.1. by North American News paper AllUnce. Inc.) Foreigners Catch Jiguw Craze. Many foreign firms have asked for information concerning jigsaw puiiles from American maufacturers. THEATER PLANNED FOR PUNCH AND JUDY Children to Be Entertained at Play time in Gardens Surrounding French Palace. PARIS (NAN.A.).—The Senate hM found time, amid it* graver labors, to think of the hundred* of ehlldren who •pend theft- dally playtime In the gar deni unrounding the governmental pal ace and has decided to build a fine modern theater there for "Punch and Tudy" to give their Immortal show when the foundation atone was laid the other day the future audience took a hand in the proceeding* and helped tli. Justin Godart, vice president of the International Union of Marionettes, along with the ceremony by mixing a bucketful of the foundation cement. The children claim to know a lot about the new theater, too, for there are whisperings among them that there Is to be an organ, and even a involving •tag*. , M. Robert Deaarthys. ft muter hand with marionettes, has been ehoeen from a dozen candidates as the motive power for the historic "Oulgnol" drama. These candidates gave exhibitions of their •kill la the Senate Itself before the se lection was made. (Ooprrltht, 1833. by North Amtriaaa Nrwi nptr AllUuM*. Inc.) Watch, Clock * Jtwilry i repairing; ELECTRIC 4 Mmd Grandfather CLOCKS i A Spteitlly A TRIBBY'S< 615 19th Stiwti — Next I» Ktilk'i. Estimates Furnished M*t. Jt29* NO CONNECTION WITH ANY OTHER WASHINGTON STORE m 1™, 8™ and E Silver Fox adorns New Coats 5 of Matelasse Crepe.». featured for one day only— Special at ,;Regal silver fox . . . broad, richly silvered skins, dramatically set against matelasse crepe, the material whose embossed surface gives the blistered effect. Coats done with meticulous perfection . . . well-bred type garments with a definite air about them. For one day, at $35. Left: Lovely matelasse crepe with new monk's hood cape for misses 14 to 20. Right: The deep, flattering cape is bordered with rich silver fox. Black matelasse wool coat; siies 14 to 42. Also sizes 38 to 44, with the aristocratic pouch collar for chic matrons. LANSPUBGH'S—SECOND FLOOR Bags They'll wear for Easter For the matlasse crepe coats above there could be no smarter concomitants than these matelasse bags! Other bags too—all the important new styles, greater values than ever for the price! Every improvement in inside workmanship—zip pers, double-vision mirrors, gleaming satin linings in matching colors, and other niceties. Leathers: Finest grade patent leath er, paca pig, silk grain calf; in bright red, black, navy, grey, brown, beige and ?>ure white. Matlasse land plain crepe abrics; in navy, grey, black, brown, beige, yellow, hyacinth and white. STREET FLOOR—LANSBURGH'S • New Shapes • New Leathers • New Values Wear an Armful of Cellini Bracelets 50c Plenty Special Bracelets of silver or gold colored metal, so cut as to glitter like precious ' stones. 10 dainty rows of ; metal, held fast by a tiny bar. The Fiesta has bands of pastel enamel between the rows of metal; choice of coral, canary and tur quoise, navy or Eleanor blue enamel. 18 - Row .Cellini Bracelets in silver or gold color, $1. STREET FLOOB Join the NAVY see what's good in the world of fashion NAVY Sheers NAVY Chiffons NAVY Crepes Women and little women! All our fashion strength is behind this cruise. Wonders are accomplished in deft, adroit tailoring to your particular specifications—though you're short, not shaped like a maypole, nor so very young. Other shades in I6J/2 to 26/2; 36 to 46—but it's perhaps "The Navy Forever!" you'll like. Gamsay crepes, satiny underneath. Soft sheers, red. white and blue, or tucked all over. Crinkled crepe wrap-arounds. All so very glamorous! Left: Navy chiffon with row after row of fine tucking in the top. Grace* ful surplice closing. Right: Heavy silk crepe in navy, with a pin-stripe of white. It's slender ixing and very smart. SECOND FLOOR—LANSBURGH'S. After the "Bawl" Is Over— True, our Inaugural Bawl is over; the "tumult and shouting e died" . . . but LANSBURGH'S never let a baby down, and here we are with some "new deals" that are bigger and better than ever! yU9 and $1.95 Sweaters 79c Exceptional values! Coat or slip over sweaters for infants and tod dlers, 1 to 3 years old. All wool; some hand sewn and embroidered. Pink, blue and white. Specially Priced Dresses and Suits Dresses with panties or bloomers, deep hems, in solid color broadcloth or prints. Boys' fine broadcloth or linen and broadcloth suits: solid colors or white blouse with colored pants. 2 to 6. $1.00 to $1.95 in a Tots'Dresses. ITC (With Bonnett) Very special! Dress and bonnet sets from Nannette. Some with panties. Made of sheer materials; trimmed with contrasting colors. 1 to 3 sizes. 79c Vanta Shirts of cotton and wool or all cotton. Single or dou ble breasted. Fine quality. AA,-* 6 mos. to 2 yrs ■ Vanta Knit Gowns of cotton, with draw-string hem and waist band. Infant to 2-vear sizes.. 69c Vanta 50c Teething Bands of silk, wool and cotton. Shoulder bands with pinning tabs. 'lQf* 6 mos. to 2 vrs 59c Overalls A A and Coveralls. T'T'C Ideal play clothes, with front or back fastenings, long legs. Made of blue chambray; trimmed with contrasting colors. Sizes 1 to 6. Vanta Knit Training Pants of excel lent quality. French leg. 1 to 4 yrs. 38c, or 3 for $1 Ideal Body Waist in sizes 1 to 6 years. A regular 50c value, now...38c or 3 for $1 $159 Silk oo Underwear OOC Silk slips and combinations. Choice of tailored or lace-trimmed styles. White and'flesh. Sixes 2 to 6 years. FOURTH FLOOR—LANSBURGR'S