Carolina watchman. [volume], March 10, 1933, Page 8, Image 8

About Carolina watchman. [volume] (Salisbury, N.C.) 1871-1937

Image provided by: University of North Carolina at Chapel Hill Library, Chapel Hill, NC

                
Banks Can
0
Now Issue
Under Law
Would Total
Three Billions
Glass-Steagall Bill Gave Authority
For Issuance OF Bank
Notes
Do Not Believe Use Of Scrip Will
Become Necessary At Present
Time
Banks of the country can issue
$3,000,000,000 in new currency
without the shifting of a single
comma in present laws.
This realization emerged forcibly
from a profusion of talk about
banks, money, and scrip, and more
especially from President Roose
velt’s belief that general resort to
scrip will prove unnecessary.
Authority for most of the huge
expansion in cash has existed for
more than a year, has been used by
the banks to a limited extent, and
can be used further when members
of the Federal Reserve system and
national banks choose.
It was given in the Glass-Steagall
amendment to the Federal Reserve
act and in the Borah rider to the
Home Loan bank law, amending
the national banking act.
commercial caper usea
Originally, Federal Reserve notes
had to be secured by a 40 per cent
gold minimum and 60 per cent in
eligible commercial paper. The
Glass-Steagall resolution permitted
the substitution of government ob
ligations for commercial paper,
which the depression made scarce.
When the resolution was enact
ed, member reserve banks had $2,
920,000,000 in currency outstand
ing. In the treasury and with the
Federal Reserve agency to secure
this currency was $2,060,000,000
in gold, or more than 70 per cent
of its value. Then there also was
$1,000,000,000 backing in com
mercial paper.
On March 3, 1933, after the
Glass-Steagall amendment had
been effective approximately a year,
outstanding Federal Reserve notes
totaled $3,865,000,000 and were
secured by $2,180,000,000 in gold,
or more than 5 5 per cent of their
value, $1,032,000,000 in commer
cial paper and $662,000,000 in
government bonds.
Had More Gold
Then besides, the reserve member
banks had $220,000,000 in gold
which could have been used to se
cure more currency, making an
aggregate of $2,400,000,000 in
gold.
This meant that by usiig this
$2,400,000,00u as thf 40 per cent
minimum gold security and put
ting up $3,600,000,000 for the 60
per cent requirred in commercial
paper and government bonds, mem
ber banks could issue an aggregate
of $6,000,000,000 in currency, or
more than $2,000,000,000 in ex
cess of outstanding notes.
Jisiae irom this huge hgure, na
tional banks still could do some ex
panding of their own. They have
authority to circulate national bank
notes up to the total value of their
capital stock.
Needed U. S. Paper
Formerly, for every bank note
circulated, the national banks had
to put up at the treasury a like
amount of two per cent govern
ment obligations—consols or Pan
ama canal bonds. On this basis they
had issued $666,000,000 in bank
notes out of $1,600,000,000 in to
tal capital stock. They still could
have issued $934,000,000 in na
tional bank notes but were limited
by the scarcity of two per cent
obligations.
Then last July the Borah provi
, sion extended the circulating priv
ileges to government bonds bear
ing up to 3 3-8 per cent interest.
In less than a year national banks
increased their note circulation
$156,000,000.
But that leaves more than three
quarters of a billion in capital stock
of which they still can take ad
vantage to issue more currency
whenever they want.
"That woman seems soured fox
life.*’
"Yes, she married once for love
and once for money, and she didn’t
get either.”
| HRiGRAPflS
Reading Time : 3 minutes, 10 seconds 1
GRIM REAPER KAYOF.S
GENTLEMAN JIM:
James J. Corbett, one*
time heavyweight cham
pion, idol of every young
ring aspirant, fought a
courageous but losing
^ fight with death.
i LZJ wear. f&*
| THREE MUSKETEERS OF REPEAL; Democratic leaders
;i$ shown as they discussed the repeal victory in Washington
§j on February 20th. Reading from left to right they are—
!§ Representative Rainey, Illinois, Vice-President Elect Garner
and Representative McDuffie, Alabama.
NEW * STRATEGY ON THE SARTORIAL
FRONT brings a sprucing up for prosperity
when employees of the New York, New Haven
and Hartford Railroad, below, are required to
wear starched^ white coJIars, black barathea
ties, black shoes and socks. Improve the sur
face and you improve efficiency, H. J. Reynolds,
railroad official, tells conductors as he displays
the correct, neat white linen to be worn instead
UoS the colored tie and soft collar shirt held by
one of the trainmen.
IW O U L D - BE
ASSASSIN ON
TRIAL: Guiseppe
Zangara with char
acteristic gesture
answers Judge's
questions at his
trial. Zangara's at
tempt on life of
President • Elect
Roosevelt drew an
80 year sentence.
ALLURING KAREN -
MORLEY, Metro-■
Goldwyn • Mayer I
player, who will atari
in screen thriller “The?
Mask of Fu Manehu,”K.
pictured in volupti
i pose.
AQBTAR <5F THE CULINARY ART:
Frances Lee Barton, broadcasting from
her radio kitchen in General Foods Cook*
ing School of the Air. Mother of sight
children, Mrs. Barton has ample oppor*
tunity to practice at homo what she
preaches oyer the radio. g
Merchants
Assisting
Customers
{Continued from page one)
financial clouds will soon begin roll
ing away to herald an era of bet
ter times. The country is strong
for the new President, it is indicat
ed everywhere, and Democrats and
Republicans are joining in promis
ing the President their suport in
the inauguration of the "new deal.”
Few appeared worried yesterday
over their money in the Salisbury
banks. Most persons felt confident
they would get it back soon and the
principal difficulty was the lack of
some sort of circulating medium
that would provide for the supply
ing of groceries and other imme
diate needs. Many persons advo
cated the issuance of script to re
lieve the temporary shortage of
currency.
Hoarders Come Out
Many merchants reported would
be purchasers of small items had
presented greenbacks of large de
nominations. Frequently it was
impossible to change the bills and
in some cases sales were lost. These
'large hills, they presumed, had
either been drawn from the banks
or brought out of some hoarded
cache. - '
One business man reported he
had done a good day’s work collect
ing his accounts. He accosted per
sons owing him and offered to take
checks in payment. Many checks
were given him, he said.
i_
jS. C. MOTORISTS GET
I EXTENSION
Chief highway commissioner.
Ben M. Sawyer, of South Carolina,
has announced that motorists of
that state may operate their cars
with 1932 license plates "until fur
ther notice,” pending expected ac
tion of the legislature on license
measures this week.
MEN WANTED for Rawleigt
Routes of 800 Consumers in cities
of Salisbury, China Grove, counties
of North Cabarrus and Nortl
Stanly. Reliable hustler can stari
earning $25 weekly and increase
every month. Write immeefiately
Rawleigh Co., Richmond, Va.,
Dept. NC—0—121—S.
President Is
Given Wide
Bank Power
Continued from page one
to spur employment.
The following outstanding events
have occured during the past
week:
1. Inauguration of Franklin D.
Roosevelt as president of the Unit
ed States.
2. A national banking holiday
beginning Monday and running;
through Thursday was proclaimed
by President Roosevelt with sub
sequent . modifications.
3. Mayor Cermak oT Chicago
died as a result of gun shot wounds
inflicted at the hands of Joe Zan
gara in Miami.
4. Governor Ehringhaus declared
a bank holiday in North Carolina
extending through Monday, Tues
day and Wednesday, after he was
given absolute banking powers by
the legislature in an emergency
bill.
5. Scrip is being issued in num
erous localities because of cash
shortages.
i 6. Legion pledges unstinted sup
port to Roosevelt.
| INCOME TAX DON’TS
I DON’T prepare wour return with
out first studying the instruc
tions on the form.
DON’T procrastinate. Early as
sembling of data permits a
careful consideration of all tax
problems. . ,
DON’T destroy the memoranda
from which your return was
prepared.
DON’T omit explanation when
such information is essential to
an intelligent audit. Attach
memoranda to your return.
CLARA’S MARRIAGE
RECIPE
New York.—Clara Bow has a
new prescription for husband and
wife to remain happy. She ad
vanced it when she arrived from
Europe with her husband, Rex Bell
- "Every night,” said the red
headed screen star, "before going
to sleep, you must both, say:
"I’m sorry, dear.
"Then you’ll both sleep jvell and
there won’t be that jealous, hostile
hangover the next morning.”
Brown Insurance
Agency Buys Out
Maupin-Link Co.
The Broiwn Insurance Agency,
which has been in operation here
for the past 18 months, with John
D., and H. H. Brown as owners,
announces the purchase of the
Maupin-Link Insurance Agency,
which has been operated’ by W. C.
Maupin and J. F. Link for about 18
months.
The Brown_agency will move
from present quarters in the Law
yer’s building to 207 North Main
street in the Ford- Hc\fel block,
where the Maupin-Link concern
has conducted its business.
Mr. Maupin, who has been in the
insurance business here for around
30 years, will continue in this line
of work with the Brown agency,
and will retain an interest in the
firm, it is announced.
GAS TAX DATA
The American Petroleum Insti
tute supplies informantion about
gasoline tax which is worth think
ing about. For example, say your
car runs twelve miles to the gallon
of gas, and you pay a tax of 2q a
gallon.
The toll is:
One cent for every 6 miles of
travel.
A 3-cent tax equals 1 cent every
4 miles.
A 4-cent tax equals 1 cent every
3 miles.
A 5 -cent tax equals 1 cent every
2.4 miles.
A 6-cent tax equal^ 1 cent every
2 miles.
Every one of the states has a
gasoline tax, the rate varying from
2 to 6 cents. The average rate for
the country last year was 3.3S
cents.
New York consumes the most
gas, but its revenue from the gaso
line tax is less than that of Texas,
because the rate in New York is
2 cents, whereas in Texas it is 4
cents. Ohio, with -a 4-cent rate,
collected more revenue than any
other state.
The institute says that it si not
oposed to a reasonable gasoline tax,
provided the revenues are used for
road purposes only, but it insists
that the tax should be in proper
relationship to the price of gaso
line.
New Chevrolet
To Be Displayed
Papers To Carry Bulk Of Advertis
ing Of New Line To Be
Introduced Saturday
The Chevrolet Motor company
will introduce an entirely new line
of passenger ears Saturday, accor -
ing to information received' here
yesterday from Detroit.
Announcements concerning the
new cars will appear almost exclu
sively in display columns of news
papers because of the unequaled ef
fectiveness of newspapers in get
ting an important sales message to
the public, it was announced.
The company is optimistic ove'
prospects for the sale of these cars,
it was declared. Officials feel that
a satisfactory present market ex
ists for any worthy product rightly
priced ancT ably advertised and mer
chandised.
H. T. Ewald, president of the
Campbell-Ewald company of De
troit, said: "This policy at this
time seems to me most construc
tive. No organization so consisten
tly conservative as Chevrolet would
make such a move without feeling
that the outlook justifies it. Such
aggressiveness on the part of th
largest producing company in the
world’s largest industry must give
business men everywhere additional
confidence and courage.
"As I am quoted in Editor and
Publisher, "The best thing that ad
vertisers can do to restore confi
dence is to show confidence them
selves. The best evidence of that
confidence is the presence in news
paper pages of continued advertis
ing copy that by its very persist
ence shows an abiding ffcith in
those institutions on which all
business is founded’.”
PATTERSON ITEMS
, _ X—
Mrs. O. R. Moose mtertained a
number of ladies at afJBdting last
Tuesday. ^ Those prA^nt were
Mesdames W. J. McCoV^le, J. F,
Litaker, J. L. Suther, A.' W. All
bright, O. W. Litaker and "Grand
ma Moose” •
Rev. E. R. Trexler and wife
took supper with Mr. and Mrs. J.
L. Suther and family March 1st.
Mr. and Mrs. O. R. Moose mot
oifed to Concord Friday, March 3.
They toolt~Mr\~Moose’s mother to
another son’s where she will visit
for a while. Mrs. J. L. Suther ac
companied them and spent the
week-end with relatives.
Mrs. G. F, Houck entertained
a number of her friends and rela
tives at her home March 2nd.
present were Mrs. J. F. Goodma: .
of East Flat Rock, Miss Margaret
Houck, of Salisbury and Mesdames
R. L. Allbright, Sam Corriher,
Annie Sloan, J. L. Suther and J.
S. McCorkle.
Mrs. J. S. McCorkle had as her
guests last Wednesday, Mrs. J. F.
Goodman, Miss Margaret Houck,
Mrs. Angie Miller, Mrs. G. F.
Houck and Mrs. Annie Sloan
The P. T. A. met Thursday
night at the Patterson hall with a
fairly large number present. An
enjoyable program was rendered.
The sixth grade won the picture
for having the largest number of
parents and friends present.
Mrs. W. W. Yost entertained a
group of friends at her home last
Friday. A bountiful, dinner was
served to those present.
Mrs. Florence Correll and Miss
Mary Allbright visited Mrs. A. W.
Allbright last Fridav
Saturday night, March 11, will
be community night at the Pat
terson hall. Every one is welcome
to attend.
G. A. Freeze butchered six nice
hogs last week.
SEEKS SPIRITUAL RETURN
Vatican City.—The hope that
God’s graces during the holy year
would bring a spiritual return to
Mexico, Spain and Russia where
"shadowy sects, shameless enemies
and decriers of God undermine
foundations of Christian life, raise
a banner against God and without
God,” was expressed by Pope Pius.
GARNER’S SON ON JURY
Uvalde, Tex.—A jury which in
cluded Tully Garner, son of
Speaker Johii Garner, returned a
verdict of guilty in th trial of
Lawrence Latta, Del Rio, Tex., on
charges of murder in the fatal
Shooting of his estranged wife.
Latta was sentenced to two years
in prison.
Will Chicago’s 1933 World’s Fair
—A Century of Progress—introduce
a new style of dress inspired by the
exposition’s modern architecture?
Recently seven of Chicago’s most
prominent architects sat down and
designed a dozen women’s costumes,
calculated to express the spirit of
the exposition and its daring and
dynamic architecture
The results, first worn at the fash
ionable Red, White and Blue club’s
supper dance in the Hotel Sherman,
made such an impression that no
one will be greatly surprised if next
spring finds shop windows blossom
ing forth with Century of I’rogress
designs, featuring metal cloths,
bright colors, and geometrically
simple lines. ,
Five of these costumes are shown
above. Left to right, are: Miss
Sue Willman wearing a brilliant
grass-green creation trimmed with
black patent leather and set off by
black patent leather hat and shoes;
Miss Jane Harris, in white crepe
evening gown trimmed with sequins,,
short black velvet jacket faced with
red satin and black velvet hat to
match; Miss Kay Ross, in two-piece
tomato-red and black-ribbed' wool
en suit and hat of same material:
Miss Connie Domarus, in yellow and
white satin afternoon dress, black
patent leather coat and hat; and
Miss Bea Reynolds, in silver-gray
woolen dress, set off by two shades
of brilliant blue and panel of white,
and hat to match.
The architects who designed the
dozen costumes which may set a
style revolution are: John Root,
Alfred Shaw, Ernest Grunsfeld,
Samuel Marx, Abel Faidy. Louis
Skidmore and Walter Frazier.
■A.CITY and COUNTY
?IVEWS BRIEFS?
__
MRS. G. C. THOMAS
Mrs. G. C. Thomas, of North
Shaver street, died March 4; after
a long illness. Surviving are her
husband and several children, N.
M., G. H., and H. M. Thomas, Mrs.
C. J. Blalock and Mrs. Herman
Cutting, all of this city, and Miss
Edna Thomas of Charlotte. Also
surviving are three sisters and three
brothers, Mrs. F. M. Iddings, of
East Spencer, Mrs. H. LI Sigman
of Winston-Salem, Mrs. R. A.
Dodd of Ottawa, Illinois, H. A.
Meadows of Chatham, Va., L. M.
Meadows of Catawba, and E. L.
Meadows of Kimball, West Vir
ginia.
The funeral was conducted Mar.
5 th at 2 o’clock at Long street
Methodist church, and interment
was in Chestnut Hill cemetery.
DR. J. B. MARSH.
Dr. J. B. Marsh, native of Lill
ington, but for the past 20 years
connected with Salisbury drug
stores, was found late Saturday
night slumped in the seat of his
parked autonj^bile, a vidtim of
heart disease with which he had
suffered for some time. When he
did not arrive at home at the usual
time, Mrs. Marsh phoned friends
jand they immediately began a
! search which ended in finding bjs
body in his car where it had been
parked. Death had evidently come
as he entered the car and placed
the key in the switch. Surviving
is the widow who before marriage
I was Miss Annie Moran of Eliza
beth City. The funeral took place
from the home on Wiley avenue
Monday afternoon at 3 o’clock.
CORONER’S JURY FINDS
LIQUOR CAUSED DEATH
Jesse Finney, 3 3-year-old mem
ber of a field artillery unit at Fort
hragg, died from drinking alcoholic
liquors, and there was no contri
butary negligence by any party or
parties, according to the verdict a
coroner’s jury rendered after in
vestigating the death of Finney in
the Salisbury city lock up. A board
of inquiry from Fort Bragg con
sisting of Capt. R. E. Lee, .Lieut.
T. E. Deshaso, and Lieut S. M.
Beavans, came here to assist in the
investigation, and Capt. Lee sat
with Coroner W. L. Tatum during
the investigation. Capt Lee also
performed an autopsy on the body.
Finney was here on leave of ab
sence, and was locked up Saturday
evening on a charge of drunken
ness.
Church Giving Hit
By Economic Slump
Protestant church giving in the
United States and Canada is con
tinuing the decline that began
when boom times ended.
Last year it dropped 12 per cent
under 1931 for the greatest loss
snce the peak was reached In, 1928,
statistics gathered by Harry S.
Myers, secretary of the united
stewardship council show.
His figures are based on reports
from 25 denominations comprising
a membership of approximately
23,7000,000.
The total amount contributed
for all purposes last year was
$418,621,531.84, a decrease of
$75,064,362.42 as compared with
1931.
In 1928, the last full year of
business prosperity, contributions
reached $532,368,714.80. The
next year they fell off $17,000,000,
dropped $7,000,000 in 1930 and
$32,000,000 in 1931.
The four-year loss was 21 per
cent, with last year’s 'exceeding the
total of the preceding three.
Contributions per member aver
aged $19.02 in 1932; they were
$23.30 in 1928.
By far the largest part of the
gifts last year went for Congrega
tional expenses, $338,302,278.'93,
or $14.56 per capta, being listed
under this item. The rest was
spent for missionary and other
beneficient work.
I
With a total of $82,758,499, the
Methodist Episcopal church led the
others in the amount given, being
followed by the Presbyterian church
in the U. S. A., with $50,428,881.
In per capita gifts, however, the
United Presbyterians led, averaging
$28.09. Then came the Reformed
church in America with $28.52.
All the Canadian denominations
listed were above the average, the
Quebec contributing $27.81 per
member; the Presbyterian church
in Canada, $21.60 and the United
Church of Canada, $23.27.
Northern groups apparently
fared better 'than southern, the
northern Baptists, Methodists and
Presbyterians having per capita
averages, respectively, of $19.61,
$21.13 and $25.75, as compared
with $3.27, $12.14 and $23.61 for
the southern branches of the same
denominational families.
Other per capita averages were:
American Lutheran conference,
$16.02; Brethern, $9.46; Congre
gational-Christian, $21.61; Disci- .
pies of Christ, $8.99; Evangelical,
$22.75; Augustana Synod $19.52;
Evangelical synod of North Ameri
ca> $19.62; Lutheran Synodical
conference, $17.29; United Luth
eran church, $18; other Lutheran
synods, $9.56; northern. Moravians,
$20.53; Protestant Episcopal
church, $20.15; Reformed church .
in U. S. $17.41; and United Breth
ern m Christ, $13.93.
ia