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March 07, 1933 - Image 1

Resource type:
The Michigan Daily, 1933-03-07

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The Weather
Rain or snow Tuesday; Wed- strue
nesday partly loudy. Gua

C lcar Field For Recon-
tion; Action on Federal
rantee of Deposits.

Roosevelt Easing
Holiday; Gold Still

Locked In
President Declares One C
Object Of Bank Tie-Up
To Permit Formation Of
Circulating Me(lium
Confident Public
Will Honor Scrip
Issue Of Clearing House
Certificates May Serve
As Money During Crisis;
Woodin Modifies Plan
The national banking holiday was
relaxed tonight by the Roosevelt ad-
ministration to open the institutions
for new business and emergency pay-
ments on foodstuffs.
Keeping the precious gold supply Willia
of the nation still carefully locked in the treas
the vaults against orders and foreign program
raiders, President Roosevelt devoted banking
himself today to easing the strain on-
the moneyless populace.
In his only public expression, he W o
told the conference of governors as-
sembled in the east room of the
White House that one objective of By
the "banking proclamation was "to
provide some form of circulating me-
dium for the country in addition to
the outstanding- currency, because a
large part has been put into hiding." Londo
He added, "I have confidence the
public will accept that circulating Dev4
medium." Bla-
To Issue Certificates
By tomorrow is expected a system (I
for clearing house certificates which Marke
are to serve as the medium of ex- through
change during the crisis which the 'by the,
President expets to end completely banking
by cmergency legislation in the Con- L o n d
gress meeting Thursday. velopme
As the hopeful nation rallied of symp
around the President in public ex- Minister
pression of confidence, his secretary Parliamei
of the treasury, William H. Woodin, Majesty'
promulgated the modifications de- called fo
signed to loosen the channels of and tra
monetary exchange. America
His string of regulations opened to penent
withdrawal the deposits placed in favorab
banks after they had been placed by Pais-
state or other orders prior to the rsaidsthe
Roosevelt proclamation. nervous
dollar w
Calls on Public cies cas
Mr. Roosevelt's address called for nominal
public support of the order opening, lar. The
the banks for new deposits subject ned to n
to withdrawal upon demand and get mon
without restriction. Rome-
"We should provide some method," tourists
he told the governors, "by which dollar ch1
banking can go on with new cash ing $30
coming in. It is proposed through favorabl
the treasury department that every Tokyo-
bank will be authorized to open new tions we
accounts, and the money so deposited changes
can be withdrawn at any time. The ya were
only way in which that money can dealings
be kept absolutely safe beyond per- bonds. 1
adventure of doubt is by issuing hama an
methods to keep it safe-first, keep- ity mar
ing the money in cash the way it is operatio
put in; secondly, depositing it in the Berlin
Federal Reserve Banks; and third, satisfact
purchasing government bonds with ard in A
it." The Bou
The guaranty placed on these de- business.
posits in the Woodin order opening
banks for new deposits stipulated Reeve
that these accounts be kept separate- Ac
ly in special trust funds under the
rules laid down by Mr. Roosevelt. Belief
New Relief Measures be susta
Other relief measures announced the nat
by Mr. Woodin included authority to voiced y
banks to make safety deposit vaults I Reeves,
accessible; to make change, but with- ence dep

out paying out gold or gold certifi- "The
cates; authority to cash checks said, "h
drawn on the treasurer of the United 11powersC
States, but not in gold or gold cer- With TI
tificates; and to return all cash and suppose
checks received for deposit or collec- a state(
"Of co
tion after the last closing business Of aC
hours and not then entered on the 'we aree
books. try'ener,
The drive for an appropriate modi- "Yet,"
fication of the banking ban occupied a crisis
almost the complete attention of Mr. must lie
Roosevelt and his secretary of the power su
treasury in the long day of confer- "Ther
ences. declared
The emergency banking legislative that pr
program, however, appears to be tak- deny su
ing form. It is expected that Con- commit
gress Thursday will approve quickly Profes



Pro gran

-Associated Press Photo
m H. Woodin, secretary of
;ry, has issued a seven-point
for relaxing the stringent
regulations now in effect.
rld Affected
Holiday In
[nited States
an Markets Watch
elopiiments As Paris
ies Public Nerves
Dy The Associated Press)
ts and money exchanges
out the world were affected
declaration of a national
holiday in the United States.
o n-Britain watched de-
its with universal expression
athy and confidence. Prime
Ramsay MacDonald told
ent that "no action by His
s government seems to be;
i' at the present time." Banks
wvel agencies took 'care -'of
ns in England who were de-!
on dollar checks at a very
e nominal rate of exchange.
-French officials and bankers
trouble in America was "a
illness of the public." The
as unquoted. Tourist agen-
Led travelers' checks at a
rate of 24 francs to the dol-
American Aid Society plan-
relieve Americans unable toI
iy from home.
- American residents and
were permitted to exchange
becks and drafts not exceed-
at a rate only slightly less
e than last week's quotations.
-Foreign exchange opera-
re suspended and stock ex-
in Tokyo, Osaka, and Nago-
closed except for limited
in Japanese government
Taw silk exchanges in Yoko-
ud Kobe and other commod-
kets, except rice, suspended
-Financial circles expressed
ion, saying the gold stand-
kmerica apparently was safe.
arse opened with hardly any!
. Dollars were not quoted.1
s Says Roosevelt
ts Under War Power
that President Roosevelt will
ined in his action restricting
ion's banking activity was
yesterday by Prof. Jesse S.
chairman of the political sci-
President," Professor Reeves
as apparently acted under
conferred by the 'Trading
he Enemy Act'-which pre-

Camphell Wins
Over Neelands
In Mayor Race
Perry Renominated For
City Clerk With Large
Majority; Whaley Out
Dean Sadler Gets
Council Nomination
Socialists Nominate Diack,
For Mayor With Only
One Vote Cast For Him
Robert Campbell, former treasurer
of the University, received the Re-
publican nomination for mayor in
the city spring primary yesterday.
defeating John Neelands, merchant
and member of the Ann Arbor board
of education by a vote of 1,283 -to
966. Mr. Campbell carried every pre-
cinct in the city. He will be opposed
in the general election in April by
Rolla Frisinger, contractor, Demo-
cratic nominee.
Fred Perry, incumbent city clerkI
was renominated by the G.O.P. in a
three-cornered race. He received a
total of 1,418 votes. L. L. Griffiths,
secretary of the Taxpayers League,
ran a poor second with 414, followed
closely with 411 by Claramon Pray,
former county clerk.
Dean Walter Sadler of the engi-
neering college ousted the incumbent
alderman, George Whaley, in the
race for the Republican nomination
in the seventh ward. The vote was
615 to 253. Dean Sadler carried both
An unusual feature of the election
was the nomination of Archibald
Diack, '33M, as Socialist candidate
for mayor with only one vote, cast
in the first precinct of the seventh
ward. In the sixth ward confusion
resulted in the Republican constable
race when F. J. Glenn, a tailor, re-
ceived two votes, a plurality. Glenn
late last night declared le would re-
fuse the Republican nomination, a
he is a Democrat. The nomination
may now go to either Edwin N. Smith
or to Glen R. Winters, '34, each of
whom received one vote. Winters is
a night editor on The Daily.
One vote was also cast for Prof.
0. J. Campbell of the English de-
partment. Professor Campbell, a
prominent Democrat, is expected to
decline the nomination.
Louis Gomberg, '31L, running on
stickers, received the Democratic
-nomination for justice of the peace
with 59 votes. Harold Golds received
four votes. Ten were sufficient for
nomination. In the second ward, Her-
bert L. Kennett defeated Fred G.
Moehn for the Republican nomina-
tion for supervisor, 207 to 128
Charles N. Harmon won from Floyd
Hamacher for the G. O. P. constable
nomination in the third ward with
157 votes to 141. In the fifth ward.
the Democratic nomination went into
default when no names were written
on a blank ballot.
use of Scrip
Proposed By
McDonald Bill
LANSING, March 6.-O i-The is-
suance of scrip for general use I

Michigan pending permanent bank-
ing arrangements was proposed in a
bill introduced in the House tonight
by Rep. Elmer B. McDonald (Rep.,
Port Hope).
The measure provided that all
banks, with the approval of the state
banking commissioner, be empowered
to issue scrip in $3 denominations.
Against the scrip the banks would
pledge their unemcumbered assets,
aside from currency. They would be
allowed to issue paper up to 100 per

Officials Spike Early Vacation Rumor;
Fraternities Facing A Crisis As Credit
Suspension Threatens Food Supplies

Board Departments May
Be Abolished; Wholesale
houses, Chain stores To
Discontinue Credit
House Managers,
Grocers To Meet
10 Houses Trading With
A. & P. Seek Credit At
Indepwendenlt Stores As
Cash Surpluses Dwindie
Board departments in a majority
.f fraternity and sorority houses will
be discontinued within three days
unless credit is obtainable from local
grocers, according to statements made
>y house managers yesterday when'
.t was learned that wholesale houses
and chain stores were refusing fur-
ther extensions of credit.
Several local merchants said they
would continue to give credit to reg-
i.lar customers for the present, but;
a meeting of house managers andI
grocers will be held at 7:30 p m.to-
lay in the Masonic Temple to decide
>n a definite policy. Although the
grocers are not bound by the deci-
sion reached at tonight's meeting, it
vas the consensus of opinion yester -
fay that the decision of their asso-
: iation would. be followed.
A & P Halts Credit
'Forty fraternity and sorority houses
aad charge accounts at the Great At-
.antic and Pacific Tea Co. store on
,ast Liberty Street. The store refused
;o make any charge-account sales
/esterday, having received orders
rom its headquarters in Detroit that
t was to accept cash sales only. How-
wver, it was the belief of the store's
nanager that credit would again be
:xtended as soon as scrip was puts
nto use in Detroi ,.'
Student waiters in fraternity and'
orority houses will be thrown out of
,ork if the board departments close,
mnd the majority of them will be
:orced to go home unless aid is grant-
;d them by the University.
Many fraternity and sorority bills
.or the month of January were not
)aid, according to records in the gro-
:ery stores, as checks issued by the.s
iouses were not put through the
;fearing houses because of the state
)ank holiday.
Fail to Collect Bills
Although most houses have suflici-,
:nt funds in the banks to cover their
:urrent bills, local grocery store man-
igers claim that they cannot extend
;redit much longer if present finan-
:ial conditions continue after Thurs-
lay. Out-of-state wholesale houses

The League, Union
The Board of Regents has established the policy that University
organizations should not attempt to undersell local merchants. Under
normal conditions this policy has worked successfully.
But these are not normal conditions.
At the present time, few local merchants are in a position to take
credit from students. They have allowed students to run up bills
in their stores for almost a month and have finally reached the ends
of their ropes. They would like to nelp but they find it impossible to
co-operate any further.
This means that students cannot eat at restaurants and that fra-
ternity stewards cannot obtain food unless they can pay cash.
As fraternity and sorority dining rooms close, as independents
find that they cannot eat in restaurants, they naturally turn to the
Union and the League, the' stuflent clubs.
These two organizations have made commendable moves in
extending credit to students who are out of funds. They have said
that no student shall go hungry while there is food in either building.
This shouldukeep many men and women in college who might other-
wise drop out.
But the two student clubs should go even further. They should,
for the time being, cut prices to rock bottom. If necessary they should
go into debt. The important thing is to tide over the crisis students
wh- have very little available funds, to help them along until the
banks reopen.
The League has established a co-operative eating club. This is a
forward step. The Union, if possible, should follow this example and'
by so doing, keep Michigan's students from going hungry.

College Unions
Cut Prices ToI
Assist Students1
University Clubs Slash
Eating Costs; Many Are,
Operating At A Loss I
;'larcollegiatc News Service)

Ruthven Issues A Direct
Denial; Dcclares There
Is Not A Possibility Of
Dean Asks Students
To Consult Him

Officials Vow
Students Will
NotGo Hungry
Organizations Will Give
Meal Tickets To Those'
With Funds Exhausted
Students will not go hungry as

Shirley W. Smith Says
University Can Go On
Indefinitely In Spite Of
Existing Conditions
A vigorous denial of rumors which
spread rapidly over the campus yes-
terday to the effect that the acute
financial situation might force the
closing of the University or an early
spring vacation was issued by Presi-
dent Alexander G. Ruthven last
"Rumors have been brought to my
attention," the President said, "that
there is a possibility the University
may be closed. These rumors are en-
tirely without foundation in fact, and
there is no intention on the part of
University authorities to close the in-
stitution. They are considering plans
to meet any emergency."
No Justification
"The University will be able to
conduct its essential activities indefit
nritely, in spite of existing condi-
tions," declared Shirley W. Smith,
vice-president and secretary of the
University, last night. "There is no
justification for idle talk to ,he con-
According to Vice-President Smith
the coal, lighting, water and all other
operating necessities of the Univer-
sity are definitely insured. "Strictest
economy is being practiced and nce-
essarily spending by some, depart-
ments has been almost completely
curtailed," he continued, "but the
basic functions of the University will
go on."
Talk of students leaving town as
a result of the shutting off of credit
by boarding houses and fraternities
led Dean Joseph A. Bursley to issue a
warning urging them not to go away
rashly nor to surrender to hysteria.
Credit Stopped
Boarding houses, restaurants, and
1 fraternities which have been extend-
E ing credit to students have been
forced to ask for cash because of
the discontinuance of their own
credit by wholesalers, and hundreds
J of students are faced with the blank
necessity of getting food to cat.
"Under these circumstances many
students are apt to go home precipi-
tately when later developments may
make them bitterly regret such hasty
action," Dean Bursley said. "Before
any student decides to go home I
should like to have him come in and
talk over his situdition with me."
Dean Bursley admitted that if
stringent credit forced the closing of
fraternities on a large scale the en-
suing problem would become more
difficult to solve, but he urged that
students confer with him before giv-
ing up. "The situation will become
much worse if we surrender to hys-
teria," he said.
There was no spcial meetingr of
the Regents yesterday, President
Ruthven said last night, and none
has been called yet,

With the banking holiday sweeping long as there is- any food left at the
the nation and completely tying up Union and League, according to
available funds, student unions on statements made yesterday by offi-
in a n y campuses are desperately cials of both institutions.
slashing food prices, operating in'regular customers of the two or-
many cases at a loss, to keep hun- -
dreds of students in college. ganizations have already been given
At Indiana University the univer- credit, Miss Alta B. Atkinson and
sity cafeteria has just made it pos- Paul Buckley, managers of the
sible to buy a meal of soup, one vege- League and Union, stated last night.
table, meat and gravy and pie or ice All students who can show that their
cream for 18 cents. I funds have been exhausted will be
$1.25 a week will pay for the meals given meal tickets in the future on a
in a student co-operative house at credit basis, it was learned.
the University of Iowa. Fraternity and sorority members
John Jay Hall, the student union will not be given the same privilege
at Columbia, has just cut their 65 as long as their board departments
cent dinner to 40 cents and added continue, but if they should be forced
a 25 cent luncheon to the 50 and 35 1 to close it is probable that the
cent lunchs already established. League and Union will feed them on.
22 cents a day will pay for student some terms to be settled by each
meals at the University of ,Oregon if group, managers of both organiza-
a plan now under consideration, de- tions said.
vised by the home economics depart- -
Several restaurants were forced to


:ave credit to local grocers during the ment, is put through.
)4ichigan bank holiday, but with Str-oi; PVC8SUIT isbing brought
?resident Roosevelt's proclamation to bear on the student union at the
;arty yesterday, practically all corm University of Minnesota to reduce te
>anics have refused to accept any or- ; prices of food in the restaurant. The
.lers not accompanied by cash. prices at thenrestaurant are now
A large number of houses failed to comparable to those in the eating
:ollect their February house bills and houses of the town.
i still larger number of students will
>e unable to pay the March house
)ills. Students have nearly exhausted Holiday On Contracts
:heir cash, according to reports. I- T111Tc 1.-.


cease extending credit yesterday, and
one manager who has been feeding
150 students daily since the begin-
ning of the bank holiday had to re-
iuse all charges yesterday. Others
may take the same action today, it
was intimated.
Both the Union and the League
have large supplies of food in store
and wholesale houses had not cur-
tailed their credit late yesterday.

" ure D l Cgsator 'Udreteecniin hyculd
Fraternities and sororities which er extreme cony
have been delinquent in paying their LANSING, March 6.-(A')-Gover- continue for some time with their
)ills will be refused credit in all nor Comstock is urged to issue a present supplies.
3tores, according to statements from proclamation declaring a moratorium "The Union has been as lenient as
individual grocers, and in any event on contractual obligations in a con- possible," Mr. Buckley said, "and wei
will be forced to close their board de- current resolution introduced tonight are -trying to help the students as
partments within the next week, it in the Legislature by Sen. Ray Der- much as we can. Although we are
:s expected. ham (Rep., Iron Mountain). not encouraging chaige accounts, we
- -- -have extended credit in cases where{
W.1students have run out of funds."
Should Make rgust tun "The League has been taking care
ER7~-~ ilfluSof its regular customers," said Miss
Atkinson, "and we will continue to
1a y es do so. Although we cannot extend
A vilabe, ommissioner Sa s credit to everyone, we will help those
women who are out of funds."


that the United States is inc
of war.k
ourse," Professor Reeves said,
not at war-there is no coun-'
my' to the United States. 1
he continued, "let there be.
sufficiently grave and there j
somewhere a governmental
ufficient to cope with the cri-
e is now." Professor Reeves
. "a crisis even graver than1
esented by some wars. To
ch powers *now would be to'
ssor Reeves quoted Woodrow +

cent of the amount of government
bonds on hand, 90 per cent of state1
bonds, 70 per cent of the face of

Cermak Funeral Rites
Will Take Place Friday
CHICAGO, March 6,-(/'-A sad-
dened city planned a martyr's fu-
neral for Anton Joseph Cermak to-
night as mourning civic leaders wor-
ried over selecting a new helmsman
for Chicago's government.
In the massive Chicago Stadium,
crepe-draped in contrast to the gay
colors and blaring music of last sum-
mer's political convention, 30,000 will
attend Friday the last rites for
Mayor Cermak.
Six months ago the man whose life
was ended by an assassin's bullet in-
tended for President Roosevelt came
home from a European vacation ne-
cessitated by a nervous breakdown.
Kusoff Is Sentenced To
Prison By Judge Sample
Less than 12 hours after he was

farm and home mortgages, from 301 William L. Walz, president of "The ruling, as published by the
to 70 per cent of the face of local the Ann Arbor Savings Bank, last Associated Press, was as follows: 1Horowitz Responds To
governmental unit bonds-depending night said that the local banks " 'Deposits heretofore received by .
upon the tax delinquency in the unit I would "probably"' conirm with any banking institution pursuant to Applause With Encores
-and 40 per cent on other securities. the opinion of Rudolph Reichert, agreement or legislative authority Cs
The scrip would be retired by the state banking commissioner, to providing for segregation and for re- Contrary to his usual custom,
state treasurer either in currency or permit the withdrawal of the payment without restrictions may be Vladimir orowitz, Russian pianist,
with new scrip. Each bank issuing trust funds established since the paid on demand.' last night responded to insistent ap-
paper would be required to post an termination of the original "Com- "This permits banks in this state plause by the audience, and played
adequate deposit with the state to j stock holiday." having availed themselves of the gov-
protect the scrip. Each piece of scrip I crnor's proclamation in reference to Appearing in the ninth Choral
would be negotiable 25 times, and Trust funds should be immediately trust deposits to resume business in Union concert, Horowitz, who has
each endorser would attach a one- available to bank clients throughout conformity with the governor's pro-, been called one of the three greatest

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