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March 07, 1933 - Image 6

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

Disclaimer: Computer generated plain text may have errors. Read more about this.

- T~lE'Mr - A) A1lI V_

Nation Jokes,
Lautlis Aboi
Scrip Used I Mi1Iionires
Borro Fromii BuI1(rs;
F1hoove r Short On Cash
NEW YORK, March 6-i P-Quip',
grins and tall stories were on the
lips of Americans today as they,
wcnt to a well they had not tapped
nce war days.I
It was a wcll of extra resourceful-
nes%, of ingenuity, of good humor.
Human life, in spite of the shortage
of cash; was finding ways of carry-
ing on-as it has a way of doing.
always.
Even before President Roosevelt,
clothing himself with the powers
of a war-time law, took quick steps
preparing the way for scrip, the idea
of scrip was racing through the coun-
try, and communities in many scat-
tered sections were arranging to haver
it printed.
Millionaires Borrow Money
Tales of Millionaires beseaching
butlers for a spare dime, of folk
with $100 bills being snubbed by
change-guarding clerks, went the
rounds. Ladies who used to talk about
their operations now had a new topic
-of how that nasty grocer man
would not give them change for $20
when they bought a 10-cent can of
beans.
From the top to the bottom of
the social scale people facing incon-
venience grinned and bore it. For-'
mer .president Hoover, just a few.
hours out of the White House, found
himself with' only a small amount
of cash-but was getting along.
Gov. Pinchott of Pennsylvania had
just 95 cent's in his pockets, but there
was gasoline enough in the guber-
natorial motor to carry him backf
home from Washington.'
The movie folks in Hollywood had
their fun. That wag, Jack Oakie,
issued his own script, reading: "Com-
pliments of Jack Oakie, who owes
you (blank) 'dollars and hopes youl
get it."
To Pay by Singing
At Dallas, Tex.,.Bernice Claire and
Alexander Gray; music$A Cmedy ar-
tists, arranged to pay their hotel bill

Millions Learn To Use Scrip
As Banks Issue New Currency

Noted L'

Ica

NE' YORK, March 6.-.P'-What
is scrip,. how does one get it and how
does one use it?
The answers to those questions
were being learned by millions today
as bales~ of the freshly-printed emer-
gency, currency were prepared for
distribution.
Clewring House scrip, being pre-C
pared by the New York Clearing
House, Association, consists of paper
certificates based on bank deposits.
They are issued by a group of banks,
rather than by one banking insti-
tution.
Will Cash Checks
Although details of the certificate
plan announced Sunday by Mortimer
Buckner, head of the Clearing House
Association, have not yet been made
public, it was believed the new me-,
dium of exchange would be paid out
by the banks in lieu of. the old. A
depositor appearing at a bank to cash
a check would be given the certifi-
cates to the full amount of the check.
It would also be the money in
which pay checks were cashed, and
it would be accepted by merchants,
landlords, railroads, and others in-
stead of the old currency. Bankers
said that since the scrip would. be
accepted for deposit at parity by all
clearing house members, it would
serve as a satisfactory medium of ex,
change.
Range From $1 Up
The certificates, which represent
actual deposits, will be issued, it was
believed, in denominations ranging
from $1 up. It was the understanding
here that banks, when they reopen,
might be permitted to pay out frac-
tional coin-that is coins ranging
by singing for other guests. Like
millions of others they have money-
but it is in banks.
A New York hotel, finding itself
short of cash,,.sent .a. iessenger to
churches to gather .the contents of
collection plates. Business' oW Broad-
-way boomed as some theatres accept-
ed checks for tickets. Subways had a
plentiful suppiy of nickels for the
time being,, but were considering
what to do - about scrip. You can't.
put it in a turnstile.

from pennies to half dollars-to meet;
the need for change.
Pending authoritative statements,
it was the belief that bankers were
working on a plan for a uniform
standard of co lateral throughout the
country. Tn this way, New York scrip
could circulate in other cities and
vice versa. Thus it appeared that the
new money might be acceptable at'
or near parity throughout the na-
tion.
Reca} 1907 Crisis3
Bankers recalled the crisis of 1907,
the last occasion on which scrip cer-
tificates were used here. They were,
in effect, liens or obligations against
the assets of the banks. In New York
they were used primarily for pay-
ments between banks, but in other
sections they circulated just like
money. When the need for them dis-
appeared they were retired as fast as
they were deposited in banks.
More details about the scrip were
expected shortly. Buckner's state-;
ment, issued Sunday night, said only
that the Clearing House Association
had adopted a certificate plan to be
put into effect "when, as and if the
present emergency demanded it."
Country Demands Paper
The Bronx plant of the American,
Bank Note Co., hummed with activ-
ity as demands for scrip came from
many parts of the country. Pleas for
quick shipment of the certificates to
villages and big cities burned up tele-
phone wires.
"We want $20,000,000 in fives,
when can we have them?" a voice on
the wire would demana.
"Not before Wednesday or Thurs-J
day," would be the reply.
Orders from private firms for scrip'
in which to pay, employes also came
in. Everyone -was talking scrip. Every
one was asking- questions about it.
Not all of. them could be answered
definitely .i riniediately, rut in' gen-,
dral it' may be said .that Clearing
House certificates are a new kind ofI
money, usable as such in the ordi-
nary transactions of business. Dur-
ing the duration of the :emergency
they are riot' cashed, however, and,
thus they do not deplete bank funds.

Will Address
S(11oo Group
Columbia Professor Will
Leadl Discussion1 Before
Parent-Teacher Club
Dr. Goodwin Watson of Columbia
University, called one of the out-
standing students of character edu-
cation in the -United States, will
speak at 8 p. m. tonight in Paten-
gill Auditorium of Ann Arbor High
school on "How Should the School
Curriculum Contribute to Character
Development."
All members of the community
interested in character education
have been invited to this address by
Dr. Watson. The meeting is being
sponsored by the Central Parent-
Teacher Association Council, of
which Ezra C. Shoecraft is president.
The city Parent-Teacher Association
has issued invitations to other or-
ganizations in the community to at-
tend, it was stated.
Part of the evening's entertain-
ment will take the form of a panel-
jury discussion with Dr. Watson as
the leader. C. H. Hemingway, Rev.
E. W. Blakeman, Neil Staebler,
George Burke,.Dorothy Buckley, Mrs.
John W. Bradshaw, and Elmer Mit-
chcll will be on the panel, it was
said. Rev. E. C. Stellhorn will in-
troduce the speaker.
Organization to insure character
education, analysis of, traits funda-
mental to good character, and meth-
ods to be used in insuring the great-
est amount of character education
from a given experience will bc-taken
up during the program.
Fi For Fish-Fleas,
Finds $9,700 In Bonds
CHICAGO, March 6. - (Al) -The
prize tropical fish of Roy. Van Heck
were hungry, so he went fishingin a
drainage canal for a'species of water
flea of, which his fish are fond.
Imagine his surprise when he drew
in his .net and found $9,700 in gilt-
embossed bonds; as well as a number
of fleas..

-Associated Press Photo
Mrs. John N. Garner, wife of the recently inaugurated vice-Presi-
dent, is shown packing her trink in preparation for the journey to
Washington for the -inauguration.'

secretaries of state.
Henry Morgenthau, jr., .of New
York,,chairman of the farm board.
Former Representative Wiiliam F.
Stevenson, of South Carolina and
T. D.. Webb of Tennessee for the Fed-
eralHone Loan bank board.
The senate adjourned after acting
on the nominations.

i

r Ck Wsr 'urned By Nation; Cu ings Appointed Attorney-Genera
--AssoclItec1 P'ro P1

I
Loto

J

Franiklin . Roosevelt is seen taking the oat iof office surrou nded by a Crowd of dignitaries who had come to Washington to witn s
this important cerenrony. To the left may b sea Chief Justice Hughes administering the oath and to the far right can be seen llerbevt C.
Hoover, now a private citizen.

Anton J. Cermnak, mayor of Chicago, died yesterday as a result
of wounds inflicted by an assassin's bullet intended for Franklin D.
Roosevelt.

.J1n iy _

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