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March 08, 1933 - Image 1

Resource type:
Text
Publication:
The Michigan Daily, 1933-03-08

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The Weather
Partly cloudy Wednesday, fol-
lowed by rani at night; Thurs-
day snow flurries.

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Editorials
False Prophets Hinder Con-
structive A c t i o n; Spectator's
Proposal To Abolish Fraterni-
ties.

VOL. XLIII No. 113 ANN ARBOR, MICHIGAN, WEDNESDAY, MARCH 8, 1933

PRICE FIVE CENTS

Roosevelt
BankPlan
Is Devised
State And Local Clearing
Houses Authorized To
Issue Scrip Certificates;}
National Plan Possiblej
Strong Banks May
Open Immediately
Congressional, L e a d e r s
Promise Quick Action!
On Relief Proposals Of
President And Cabinet

T
ll.... L. Ti .. ".., ...-. Ti'..::. 7-I.. .. ' !Y1] C 6 e/" !1. l1 !\. Yle .Y1 flk 7rYe _ I "1 "'l 7 .r"'ti r r -YY' w _ _

i-priir 'atiur e r or,imii

fJ.J00J rostponement tO(i Crisis
"i t'(l I 'I ! l1't 1'Y1AP_

In Fraternities

Issue Ready
Full Amount Secured By
Cash Deposits, Stocks,
Government Bonds

Meets Denied
Yost Expects Swimming,
Track, Wrestling Meets
To Be Held This Week

-/

end Sororities Averted By
Re-Opening Of Trust Funds

I

Five Per Cent Draft Sloul Know Final 'Further Cut In
Allowed Depositors Decision By Today Union Taproom
Scrip Expected To Clarify Michigan Teams Ready To Prices Possible
Difficulty; Comstock Go To Urbana And

Usual Business
Is Transacted
B y University

Merchants Will Continue
Extension Of Credit To
Those Houses 'Willing
To Give Co-Operation'
Attempt At Uniform

G

WASHINGTON, March 7.--(A')-
The nation's banks were put on a re-
stricted operating basis today to al-
low the transaction of the normal
functions' necessary to human exist-
ence as President Roosevelt and his
cabinet devised a plan to be made
effective after the holiday.
-Conditional authority also was
granted for state and local clearing
house associations to issue certifi-
cates to be used as scrip during the
period. This was made subject to sub-
stitution of a national scrip plan.
Keeping a close grip, meanwhile, on
the nation's gold supply, President
Roosevelt studied a system for com-
plete opening in the near future of
thestrong banks of the country and a
gradual extension of the plan to other
institutions that prove their sound-
ness.
. Leaders Promise Action
Continued support for the Presi-
dent in his emergency action was
echoed from Capitol Hill where lead-
ers. promised quick action on Thurs-j
day for whatever he proposes. The
drive in Congress for legislation guar-
anteeing bank deposits to a degree
gathered momentum.
E Every emphasis was given in the
day of bustling activity to making
sure of relief for the people so far
as protection of the gold supply from
hoarders and foreign raiders wouldI
permit. Institutions were open for
limited business. Each institution
may exercise its usual banking func-
tions to such extent as the situation
shall permit and as "shall be abso-
lutely necessary to meet the needs of1
its community for food, medicine,
other necessities of life, for the re-
lief of distress, for the payment ofj
usual salaries and wages, for neces-
sary current expenditures, for the
purpose of maintaining employment,
and for other sinilar essential pur-
poses."
Roosevelt in Conference
Remaining at his desk through the
noon hour to eat his lunch, Mr.'
Roosevelt went into a two-hour con-
ference with his cabinet at 2 p. m.

.
I

-AssocIated Press Photo
Adolf Hitler, Nazi leader and chan-
cellor of Germany, is confronted with
a, (lark future, according to Prof..
James K. Pollock. Large minorities
not in sympathy with the Hitler gov-
ernment may prove an opposition of
major importance, he believes. j

Curtailment Of
Senior Honors
IS Considered
Literary College Would
Alter Award Methods;
Committee Appointed
Revision of the present method of
graduating students with honors will
shortly be under consideration by a
committee of faculty members of the
literary college, it was announced
yesterday by Dean John R. Effinger.
The dean was authorized, at the
March meeting of the college faculty
last Monday afternoon, to appoint
such a committee. Under the present
method, a student may be graduated
with distinction or with high distinc-
tion, on a basis of his general scho-
lastic standing; or, on recommenda-
tion of a given department, he may
be awarded distinction in that de-
partment. The proposed measure
would eliminate the first two meth-
ods in favor of the third.
"It was thought," said Dean Ef-
finger, "that we have gone beyond
the stage where an, honor rating on
the basis of high grades is of any
value. Outstanding work in a given
field of interest, it was believed, is
more meritorious."
The faculty also approved a plan
proposed by the Committee of the
University Council on Co-Operation
with Educational Institutions, where-
by the literary college will appoint
three members of a University com-
mittee which is to consider possible
restatement of requirements for ad-
mission to the University. The com-
mittee will be further composed, if all
schools and college approve the proj-

Considers State Issue Chicago By Auto Cafeteria Will Continue To'
Meet Any Drop In Food
DETROIT, March 7.--(.P-Detroit Rumors that Western Conference
Clearing House Association officials t r a c k, swimming, and wrestling Cposts With Reductions
tonight announced that Detroit banks meets, scheduled for this week-end,
will issue $26,000,000 in scrip by Mon- had been indefinitely postponed on Further food price reductions in
day morning. The decision came fol- account of the financial situation, the Union taproom in addition to
lowing an all-day session with bank were denied "with reservations" late those made recently are possible, ac-
and civic leaders present. last night by Fielding H. Yost, di- cording to a statement made yester-
Cash deposits or government bonds rector of athletics. day by Paul Buckley, manager of the
will guarantee one-third of the scrip He said although he had looked for Union.
issue, with the remaining two-thirds communications from Major J. J. Prices in the cafeteria have been
secured by stocks listed on the New Griffiths, commissioner of conference cut several times since last Septem-
York stock exchange. The issue rep- athletics, about this point, he had re- ber. Mr. Buckley said, the last reduc-
resents five per cent of the profits in ceived none. However he added that tion taking effect March 1. If food!
all Detroit banks at the time they today would be the logical time for prices go any lower the Union will
closed on Feb. 11. such a communication and that he accomodate itself to the new stand-
Following communication with Sec- would spend the whole day in his of- ardshstated.
retary Woodin's office at Washington fice awaiting any message. bhe special dinners, which at the
early this morning, Detroit banks "The question as to just how we are now 40; all pies, vegetables and
continued to release five per cent will get together enough cash to take 1fruitsare now eight cents instead
of depositors' account on demand, the swimming and track teams to f1 0; individu meats wee recentl
as they had been doing prior to Sec- Chicago and the wrestling team to reduced three cents and other prices
retary Woodin's rules announced un- Urbana had not been decided. We hae beere d nhprprint
der President Roosevelt's proclama- will probably scrape up all the avail- these. d
tion. able cash from the department and 'We are now operating right on
Accord was reached upon the scrip as we are going to travel by auto, it the arn Frank euenzeghtman
issue following a session of several will not take much," he added. ager of the taproom, said yesterday,
hours. A group of civic leaders, head- As Michigan is favored to win both and we will not reduce food prices
ed by Mayor Frank Murphy, was the swimming and track meets, a any further unless the cost goes

I
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I

Operating Needs Insured Plan fails At Parley
Indefinitely; Holiday Has
Little Effect On Schools Chapters Slash Operating
Expenses In Attempt. To
Conditions of University finances,
and regular transaction of University Conserve C a s h; Await
business remained essentially un- ! Scri-) Deficits Reported
changed yesterday, according to John
C. Christensen, controller and assist- 3v THOMAS CONNELLAN
ant secretary of the University. Fears of having to close board de-
Mr. Christensen reiterated that the Fpartments in fraternity and sorority
University will remain open and fol- houses were allayed yesterday sith
low its curricular activities without the opening of "trust fund" accounts
any change. "As a state institution," and the announcement that local
he pointed out, "Michigan enjoys se- merchants would continue to extend
curity from the ordinary pressure credit "if the houses were willing to
which may be exerted by creditors co-operate."
on small private businesses. There is Mi
enough coal in the bins now to last o llars tied up by the second
the University until July 1 and every dbanking holiday" had access to this
other operating need is insured in- money yesterday as the banks opene
definitely.''nthe trust funds, and other houses
The cashier's office continued to is- thihtrustxfusadtherchuses
sue checks during the early part of souiceshaderexhated their cash nre
the bank holiday in payment of Uni- sore we
versity bills and at present the only with local merchants.
A meeting last night of representa-
problem facing Cashier Harold A. tives from fraternities, sororities and
Mills is the handling of these tem- ecat aldt rn ot
porarily useless checks. The situa- merchants failed to bring forth a
Lion is being slowly worked out how- uniform plan of extending credit, and

r

i

called in to be advised as to the de-
cision reached, and the public an-
nouncement followed within a few
minutes.
In addition to the Mayor, Council-
man Frank Couzens, Corporation
Counsel Clarence E. Wilcox, William
J. Norton, the Rev. Father E. J.
Hickey and .Ralph C. Wilson. attend-.
ed the brief joint session.
The decision of the Clearing House
Association was expected to clarify
the banking situation considerably.
It will provide a form of exchange
which will take the place of checks
in commercial transations. Detroiters
have been accustomed to transact 90
per cent of their business by check.
The issuance of State scrip may
result from several meetings held in
Lansing Tuesday. Decision as to such
an issue rests with Gov. William A.
Comstock, who returned from Wash-
ington Tuesday.
No progress in the attempt to ef-
fect release of upstate banks' re-
serve deposits in Detroit's national
banks was made by Gov. Comstock
during his visit to Washington.

cancellation of the contests wouldi
make a tremendous difference in the
year's record.
Nelson Kellogg, athletic director of
Purdue, is the chairman of the com-
mittee that would determine this
matter. He has called a special meet-
ing of the athletic directors of the
Big Ten tjmneet .in Chicago Friday,
but Mr. Yost said "he wil have to act
quickly if we are to cancel the meets."
Mr. Yost was unresponsive about
the possibility of further curtailment
of athletics by the athletic directors
at their special meeting. "No one but
Mr. Kellogg knows what topics are
to be discussed," he said.
Coach Yost denied that this com-
mittee would lay further demands
before the faculty meeting concern-
ing post-season football games, as

down, as this would necessitate a re- ever, and in most instances check
duction in quality." holders have been asked to retain the
paper until a definite and general ac-
Diack Denied Right Lion can be taken.
T p F 'University business, like that of
To Run For Mavo' every institution in the nation, will
be affected by the expected action
City of the federal government and plans
CiyAttorney Wa'illia n La4ird ea- _d te utrmsneesrlhig
terday ruled that Archibald Diack, fthe future mus necessarily hinge
'33M, who received one vote for the on that action, Mr. Christensen said.
Socialist mayoral nomination, the . l
only ballot cast on that ticket, could PossObility of Law
not ben.Includedon the ballot for .
the general election in April. He said CubClosing Denied
that the law required a candidate to ;
receive 15 per cent of the votes cast Current rumors that the Lawyers'
for any office on his ticket in his Club is about to close are denied in a
voting district, and that he must re- statement posted in the club lobby
ceive at least 10 votes. by Prof. Grover C. Grismore of the
In the sixth ward Republican con-Law School, director of the club.
test for constable, none of the four La*col ietro h cu.
recipients of votes qualified. It would Professor Grismore's statement is
have been necessary for a candidate as follows:.j
to receive about 35 votes to qualify. "It has come to our attention that
F. J. Glen, tailor, received two and there are various rumors in circula-
Edwin Smith, Prof. 0. J. Campbell tion that the Lawyers' Club or its
of the English department and Glenn dining room is about to close. All
Winters, '34, one each. There is, then, such rumors are wholly withoutt
no Republican candidate for con- foundation. The Lawyers' Club has7
stable in the sixth ward. The vote no intention of closing any of its
cast for Diack and for the constable departments.
candidates will not be included in the "Neither is there any reason at
'. i rnn' 1n ornruenAh fuuiec yi.. !'L Lt, preent to-ear-thtsuch. cours

it was finally decided to let each
house take up the problem with its
creditors.
Houses Cut Expenses

amendments to the resolution that
awaits the latter's May meeting.
LeserParts
in JiG*, Cast
1M d~ i ' ~ bK A

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Fraternities and sororities slashed
operating expenses yesterday in or-
der to conserve their cash surpluses
to tide them over until the financial
condition of the country is stablmzed,
It was the general consensus of opin-
ion among those present at the meet-
ing that some form of scrip would be
available to carry on business in Ann
Arbor by the end of the week.
Regular customers of independent
grocery stores and meat markets were
able to make purchases on a credit
basis yesterday and from all indica-
tions will be able to do so for the
next three or four days, if they make
some cash payments.
Grocers said that although they
were willing to carry charge accounts
for houses which had been prompt
in paying their bills, they would be
forced to drop those which had been
deliquent.
Rumors that several houses had
closed their board departments Were
unsubstaniated late last night. It
was the consensus of opinion among
the merchants at the meeting that
several of the weaker houses would
be forced to close their doors.
One House $7,000 in Debt
One house was reported to be $7,-
000 in debt for house expenses alone,
and plans were going forward last
night among the merchants to call
a meeting of representatives of the
fraternities, the University, and mer-
chants to investigate the financial
standing of all houses.
A local accountant also reported
he had been forced tb stop handling
the accounts of two fraternities, and
said that he could see "no hope for
them continuing."

Gargoyle And Technic
1sme Call Fm-T rvnJIN

There was no statement and no hint ect, of two members fror
that there would be one before he gineering college, one from
sends his message to Congress Thurs- cation school, one from the
day noon. pharmacy, one from t
The President linked his discus- school, and one from th
s.ions today very closely with the gov- school.
ernment reorganization program by The committee, said Dean
which he intends to balance the bud- will consider either a simp
get as a former bulwark to national ment of the entrance req
credit. or actual changes. "These
.Lewis Douglas, his director of the tatives," it was explained
budget, was the luncheon hour visi- report back to their severa
tor. He was preceded by Swagar inasmuch as each schoolc
Sherley of Kentucky, with whom he with the approval of the
has been working on the reorganiza- Regents, has the right to:
tion setup. It was believed a tempo- its own entrance recuireme
rary program was submitted by them.
Late in the day, Frank F. Hines, di-
rector of the veteran's administra- Sharfm an C
tion, was called in.

g uc i c111 1'Cil X 1 v LK 5report to be submitted by City Clerk presentoferhasuhacre
n the en- Women Are AarrhedrForrFred Perry to the Common Council will be necessary. Members of the
ithe edu- A call for try-outs for the Gargoyle I lmior'Roles In 'Love ;Thursday night, club may rest assured that before
college of business staff was issued yesterday Tchg o m ay kind s re ade a
he music by Charles M. Rush, '33, business On The Run' chanoesdTanetimeanym w are made, at
e nursing manager. All freshmen who are _________n tie, bmoedthatite
scholastically eligible are invited to Additional members of the cast, On IMarital Rxelationshipsspreading of all such unfounded ru-
n Effinger, meet at 4 p. m. today in Room 100 besides those in leading roles of "Love I mors will cease, since they simpl
le restate- of the Student Publications Build- on the Run," the 1934 musical revue. The second talk on marital rela- 'tend to create unnecessary unresi
uirements, ing, Maynard Street, Rush said, have been announced by Russell Mc- tionships, scheduled for this evening, tend disconrentsa
represen- Students in the Colleges of Engi- Cracken, of the Play Production has been cancelled due to the inabil- an iscontent."
, "are to veering and Architecture who wish staff, director of this year's play. ity of the speaker to keep his ap-AT
I faculties, to tryout for the Michigan Technic, Mary Ann Mathewson, Charlotte pointment, it was announced yes- RP SILENT ON CHARGES
or college, official publication of the two col- Simpson, Elizabeth Griffith, Jacque- terday afternoon by the Student Prosecutor Albert J. Rapp, who re-
Board of leges, will report at 7:30 p. m. today line Favran, .'Ruth Campbell and Christian Association, sponsor of the cently cleared Claramon M. Pray
determine in Room 3046 East Engineering Jeanette Detwiler have been named series. The next talk will be given former county clerk, of the dishon-
ants." Building.for the six major roles. Those to have March 17 by Dr. Howard Cummings, esty charges which were being circu-
minor parts in the personnel of the local physician, on "The Physiologi- lated about him yesterday refused to
show are as follows: Charlotte John- cal Aspects of Marriage." reveal the exact nature of the charge
onfident Of Upturn son, Harriet Jennings and Alice
Goodenow will be cast as the "De-j
al Financial Situation pression Sisters," or the "ThreePollock Gravely Concerned Over
I aeDorothy Ann Williams willO
1 play the part of Virginia, and Jose-~G rm n
11 1'utur Of GrmanUnder Na'zis
seem, the economic rehabilitation and business phine Woodhans, the part of Sue. OtheF tnre Ger
nt acuterecovery.Others in the cast are Katherine

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e
e
Y
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7,

In Nation

Several houses demanded cash for
.one week in advance from their mem-
bers for badhls claiming it was
the only possible way they could con-
tinue. Others were urging the mem-"
bers to pay as much as they could.
on their house-bills and in that way
keep their credit good.
Housebill items--room rent, dues,
meals. taxes- wrya#-. -t4,... -'

Local Banks To Await
Federal Action On Scrip
Banking officials in Ann Arbor have
discussed the possibilities of issuing
local scrip, but intend to wait and
see what the federal government does
before printing the new currency, C.,
J. Walz, president of the Ann Arbor
Clearing House Association, said last
night.1
While waiting for governmental ac-
tion, the local banks will continue
under the same plan in effect for
over a week, he said. People will be
allowed to withdraw five per cent of
their total accounts and to write
checks on their "trust funds."
Mr. Walz said he believed federal
scrip was preferable to anything
printed locally, for the federal cur-;
rency could be exchanged between
nfim ie nal sri ' se would ba e

"Paradoxical as it may
I banking outlook. in the nre

stage of the emergency, is more
promising of orderly and equitable
and constructive developments than,
at any time since the processes of
demoralization set in," said Prof. I. L.
Sharfman of the economics depart-
ment in a statement issued yester-
day.
"There can be no denying that the
situation is critical," the economist
stated," and there can be no denying
that it will exert most far-reachingt
effects upon our credit structure and'
economic life. But the sources of re-
assurance are potent and numerous.
The bewilderment of the past sev-
eral weeks has given way to resolute
-fnnrr ho rnnf>',, of nr.- f ,n' n

'The-immediate need is for the re- MacGregor as Kate, Emily Campbell
establishment of a medium of ex- as Joan, Lillian Dietrick as Marge,
change, so that commercial and in- Ruth Latchaw as Tom, Betty Lyons
dustrial enterprise may resume its as Dave, Lucille Lucas as Alan, Betty
functioning; and those in authority Bergener as Jim, Else Sparre as Dick,
are straining every nerve to provide Myrtle Cooper as Spike, and Eliza-
such a medium with the utmost beto as Jer ty s
promptness, designed as far as pos- Additional roles are the "Dolly Sis-3
sible to be free of the artificial bar- ters," Jean Henning and Katherine
riers to trade which would spring { MacGregor; "Finklebein," Marion
from lack of parity between the cer- Foley; "Billy Divine," Mary Fitzpat-
tificates of a variety of issuing units. I rick, "Madame Galli-West," Margaret
There is every reason to believe that Beckett;Porter, Jean Van Cleaf;
such action will be taken by Congress Landlady, Mary McCarthy; Landlord,
as soon as it convenes. Mary Monks; Headwaiter, Barbara!
"More permanently, it will be Rose; "Kathie," Helen Gray; "Franz,"
necessary to establish a strong na- Lucille Lucas; Cabaret Singer, Geor-
tional banking system, probably with gia Giesman; and Russian girl,
some sort of deposit guarantee and Esther Kouchnerkavich.
--h - - .. f. ~.,IThe nersonnel of all dancing and

By C. hART SCHAAF 1
Grave concern as to both the do-
mestic and international future of
Germany was expressed yesterday by1
James K. Pollock of the political
science department. Professor Pollock
bases his anxiety on the fact that I
even though a majority of Germans
indicated theii' approval of the HitlerJ

aaai, , u- were cuG to a niini-
inet," he said, "and since 44 per cent mum in number of houses yesterday.
of the vote was cast by this party, Many houses cut their board bills 10
Hitler may well be expected to see to 20 per cent until the situation
the fact reflected in the membership clears up.
of the governing group." The chain stores continued to ac-
Such additional Nazis, Professor cept cash sales only, according to re-
Pollock said, could not replace the ports late yesterday afternoon. As
present nationalist members, Hugen- soon as some form of scrip is put
berg, Von Papen, Seldte, Von Neu- into use, however, it is believed that
rath and Von Krosigk, since Hitler they will return to their former sys-
has promised President Lindenberg tern of charging to fraternities aJnd
that he will retain these men, sororities.
Complete Transition ___r__tes

government in last Sunday's elec-I
tions, there is still a very large and]
powerful minority utterly irreconcil-
able to it. .

Professor Pollock termed Hitler's I The other victory of the Nazis Sun-
victory Sunday "smashing," pointing i day, in Prussia, where they were
out that it will continue the Hitler elected to 204 of the 530 seats in the
cabinet in power indefinitely, and I Prussian Landtag, was commented on
said that if the Communists are ex- by Professor Pollock as of equal sig-
cluded from the Reichstag, the Nazis nificance with the all-G e r m a n

Scout Aquinto Decoratedi
For Rescuing Two Boys
Boy Scouts from Washtenaw and
Livingston counties assembled at St.

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