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March 09, 1933 - Image 1

Resource type:
The Michigan Daily, 1933-03-09

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The Weather
Snow flurries and much colder
Tlnrsday. Friday partly cloudy
and continued cold.


Bitt a


The Union's Problem of Fix
ing Prices; Complete Guarante
of Bank Deppsits

VOL. XLII No. 114




Free Hand
President To Issue New
Proclamation Continuing
Control Of Gold Supply
Expects Grant Of
Dictatorial Power
Leaders Of Two Parties
Promise Co-operaion
With Presidential Plans
WASHINGTON, March 8. - W) -
The Govrminent worked busily to-
night to complete its plans for a
controlled expansion of the currency
as President Roosevelt drafted a
message to Congress asking power
to continue his command of the Na-
tion's banks until the present crisis
is passed.
Meanwhile it became apparent that
the banks of the country can issue
$3,000,000 in new currency without
the shifting of a comma in present
laws. Authority for this huge ex-
pansion has existed for. more than
a year, it having been given in the
Glass-Steagall amendment to the
Federal Deserve Act and 'in the
Borah rider to the Home Loan Bank
haw, ,mending the National Bank-
ing Act.
Ask Emergency Sowers
The approach of the end of the
four-day holiday brought word from
the White House that Mr. Roosevelt
would issue a new proclamation to
make sure of his grip on the National
gold supply until Congress can act
or the banking chaos is transformed
to order.
In his first message to Congress
tomorrow Mr. Roosevelt will ask for
emergency powers to continue his
leadership in finding the solution.
w leg'i latti is required for
emergency currency that is planned,
that, too, will be asked.
It was mado emphatic in circles
during the day that this additional
currency, which is regarded as es-
sential during the crisis, was not a
printing-press-money proposition but
would be based on "sound" standards
of monetary practice.
Talks With Advisors
The President did not begin writ-
ing his message until tonight, after
he had completed his talks with ad-
visers and officials who have been
drafting the emergency program.
While the Government has aban-
doned the plan for use of a National
f system of clearing-house scrip-
paper based on the assets of deposi-'
tors in the closed banks-it is ready
to permit this use in localities where
the emergency requires, reserving the
power to cancel such permission at
any time. The President has definite
ideas in mind about the uniform
banking system which he wishes to
prevail and about the extensive reor-
ganization by which he desires to
guard against any future banking
The Seventy-third Congress, dom-
inated by Democrats and pledged
to support President Roosevelt's pro-I
posals, assembles tomorrow in extra-
ordinary session to enact the new
Administration's emergency banking
Preparing to meet the excutive's
demand for speedy action, both

Senate and House Democrats and
Republicans rushed their organiza-
tion plans today.'
Co-operation Promised
Leaders of the ,two major parties
at both ends of .the Capitol have
promised co-operation on the Roose-
velt emergency prgram
Within about two hours tomorrow,
the organization will be, completed
and a joint congressional committee
will be dispatched by the two
branches to the White House to noti-
fy President Roosevelt that the new
National Legislature is ready to do
Either late tomorrow or early Fri-
day, Mr. Roosevelt will send his first
message to Congress. It is expected
by Congressional leaders to be limited
to the banking crisis and a request
for the widest authority possible to
cfect cconomici and balance the
Federal budget.
Or anization of the i aVt was
completed partially at its special scs-'
sion beginning last Saturday and
-- i r 11r-.< A h 4h n nn- - i n

Important Cog

-Associated Press Photo
Rep. Henry T. Rainey, of Illinois,
who is assured of the Speakership of
the House ,will in his new capacity!
be a vital factor in obtaining Con-
gressional co-operation with the
plans which the President will sub-
mit today.
Socialists Enter
Local Elections
For First Time

Prof. Roy Sellars Is
Ticket; Three Other
ulty Men Will Run


The outstanding feature of the
city election campaign. which. began
with the conclusion of Monday's pri-
mary votc is the introduction, for
the first time, of a third party upon
the scene. The Socialist party, which
was organized here a year ago, has
entered a slate of candidates for al-
derman posts, but are pr senting no
ticket for major city offices'
Four members of the University
faculty are candidates for soffice in
the election. They arc Prof. Walter
Sadler of the engineering college,
who defeated George Whaley, in-
cumbent for the Republican alder-
man nomination in the seventh
ward; Prof. Roy Sellars, of the phil-
osophy department, candidate for
the same office on the Socialist
ticket; Prof. William Paton of the
economics department, who is run-
ning for re-election as alderman ona
the G. O. P. slate in the sixth ward;
and Prof. Waldo Abbot, Democratic
nominee for supervisor in the sixth
ward. Robert Campbell, Republican
candidate for mayor, is a former
treasurer of the University. Charles
Orr, Socialist nominee for alderman
in the sixth ward, is a graduate fel-
low in the economics department.
The contests for the major city
offices are as follows: Mayor: Robert
Campbell, Republican, vs. Rolla Fri-
singer, Democrat; President of the
Common Council: Edward Lucas,
Republican, vs. William H. Murray,
Democrat; City Assessor: Herbert
Crippen, Republican, vs. William C.
Gerstner, Democrat; Justice of the
Peace: Jay H. Payne, Republican,
vs. Louis Gomberg, Democrat.
C tiianioWill
Address S. C. A.
Forum Today
"Roosevelt and the Problems of
His Administration" will be the sub-
ject of a talk by Prof. Paul M. Cun-
cannon of the political science de-
partment when he leads the Student
Christian Association forumn at 4:15
p. m. today in the lecture room of
Alumni Memorial Hall.
This subject, forum sponsors said,.
is a timely one and the predictions of
Professor Cuncannon relative to the
steps to be followed by the adminis-
tration during the next four years
arc expected to be of vital concern
to many students.
Widow Of Taylo
Dies lIn California
Word was received here yesterday
of the death of Mrs. Mary Brown
Taylor, widow of Prof. Frederick
Manville Taylor of the University
eonnomics rpnd.ntment nt her hnme

Governor Of
Jehol Is Seized
And Executed
Desertion From Province
Last Week Main Factor
In Easy Jap Conquest
Chinese Coluniis +
Boibed From Air
Last Pass Through Great'
Wall Falls Into Bands'
Of Invaders After Battle
PEIPING, China,. March 8.--A)--
The arrest and execution by the+
Chinese of Gen. Tang Yu-Lin, whoj
governed the Province of Jehol until+
that territory was seized by the Jap-
anese, was reported here today.
A reliable source said that Gen.
Tang had been seized at Hsifengkow,
a pass through the Great Wall.I
Troops of Marshal Chang Hsiao-;
Liang, who has just resigned as thej
principal North China military com-
mander, made the arrest, it was said.'
These troops were commanded by
Gen. Wan Fu-Lin, who governed
Heilungkiang Province in Manchuria
until the Chinese regime there, head-
ed byhMarshal Chang, was ousted
more than a year ago.
Gov. Tang fled from Jehol City
last week and since then his where-
abouts have been uncertain, His d-
sertion was one of the factors as-,
sisting inthe easy conquest of the
province by the Japanese. The Jap-
anese had predicted that when the,
proper time came Gov. Tang would
give it to them.
JEHOL CITY, March 8.-()--Jap-
aflese airmen today bombed Chinese
columns retreating from Kupeikow,
last pass through the Great Wall to,
fall into the hands of the invaders.
The retreating troops fled in the
direction of Peiping, 05 miles to the
southWest. Gen. Tadashi Kawahara's
Sixteenth Japanese Infantry brigade, I
which occupied Kupeikow halted
there for the time being. The Japan-
ese have said that they do not in-
tend to push on to Peiping unless it
becomes necessary for them to pro-
tect their nationals in the ancient
James Watkins
Will Address
Sunday Forum
Police Commissioner Of
Detroit Will Speak On
Personal Experiences
James K. Watkins, '09, Detroit po-
lice commissioner, will discuss "My
Experiences During the Last Two
Years" at the first Union Sunday
afternoon forum to be held at 3:30
p. m. Sunday in the North Lounge+
of the Union.
This meeting will be more infor-
mal than the meetings held duringc
the first part of the year, John W.
Lederle, '33, Union president, said+
yesterday. After Mr. Watkins' talk a
general discussion will be held. +
The speaker will bring out the
place of the college man in relationj
to the war on crime, Lederle said.
Mr. Watkins is former president1

of the Union, a member of Michi-
gamua, and a pominent lawyer. He
is, according to Lederle, "One of the1
most successful police commissioners
Detroit has ever had, particularly
noted for his sane position on the
liquor question."
Noted Zoologist7
On'The Big 1A

Gargoyle's March
Issue To Be Given
Away Free Today
Free circulation - that is Gar-
goyle's solution to the financial crisis
that has left hundreds of students;
temporarily without money for lux-
uries. As a result of the new policy,
a copy of the March issue of the
campus humor magazine will be given
entirely free of charge to every stu-
dent who applies at the stand in the
center of the Diagonal today.
When Gargoyle came off the
presses yesterday with the money
and credit situation apparently sev-
eral days away from a solution, edi-
tors of the magazine called a con-
ference and decided on the radical
measure which will place the maga-
zine in the hands of every student on
Copies will not only be given away
on campus but will be distributed
free of charge to all fraternities, sor-
orities, and League houses, according
to an announement prepared last,
night by Edward S. McKay, manag-
ing editor.
McKay emphasized in his state-
ment the fact that no strings are
attached to the offer. "You don'tI
have to sell fountain pens, turn in
empty cartons, sign a contract, orj
endorse cough medicine to get your
free copy," he said. "Just ask the
salesman for it, and it's yours."
The sudden decision grew out of
a general scarcity of funds resulting
from the extended bank holiday, and
it is doubtful if the policy will be
continued next month. The editors
declared that they wanted Gargoyle
to reach its regular readers today
regardless of the ability to pay.
Special features of the issue,
drawn up under. the supervision of

Merchants Of
City Continue
Giving Credit
Charge Accounts Allowed
To Fraternities In Good
Repute Before Holiday
Situation Eased By
Payments Of Cash
Orders For New Svpplies
Placed By City Grocers
With Money Received
Cash payments to grocers-in part
or in full-eased the credit to fra-
ternal organizations yesterday and
houses with good credit standing
prior to the "bank holiday" were in-
formed that they could charge sup-
plies with independent merchants
for another week.
Fraternities and sororities have
co-operated much better than was

expected, according to the grocers
who were able to place orders forI
new supplies with the money that
they received yesterday.
Some Black-Listed
Several houses which were put on
the "black list" can obtain supplies
on a cash basis only, it was learned.
Names of the groups were not dis-
closed but it was stated that they
were behind on their bills before the.
"bank holiday" began.

Michigan Authors
Of Economic Plan

Bank Holiday Brings
Money Out Of Hoarding
Seventy bills of the old "blanket"
variety withdrawn from circula-
tion several years ago, all in $20
denominations, w e r e presented
yesterday to an Ann Arbor auto
dealer in payment for a $1,400 car.
Hoarded dollars, many in the
old large size, are appearing con-
stantly, local merchants report.
Families fearing a general food
storage have caused an unpreced-
ented increase in business reported
by chain stores, because a general
"stocking-up" process is now un-
der way in the city. Repeated
radio broadcasts, however, have
declared that a food shortage is,
an unlikely prospect anywhere inI
the state.
ov. ostLock
Demands Action
On Bank Bills
Appears Before Session
Of Boh Chambers With
Sharp Criticism Of Delay
LANSING, March 8. - (/) - Gov.
William A. Comstock appeared per-
sonally before the Legislature today
to demand immediate enactment of


To Washington

rrv-- v ']. LtnYrm c .11,+ nrli+rir Aiiriri'r i

the temporary absence of McKay, Fraternities which have been
include articles by Gurney Williams, forced to closec down in the past have
formerly a staff member and now as- usually left accounts with local mer-
cna~rl~roi-c, i rots LwpuIh 1-nlu

sistant editor of Life, and John S.
Marshall, also a former staff writer.
A new depa'rent, listing the best
of the current radio programs, is also
Local Summer
School G rantS
11 .t.t
To Be Cut Out
Board Of Education Votes;
On Slse Nec sttd
By Mill-Tax Amendment!
Elimination of the summer school
appropriation and removal of mar-
ried teachers from the regular teach-1
ing list were voted by the Ann Arbor
Board of Education last night as the!
first steps in the program of drastic
slashes necessitated by the passage
of the 15-mill tax limitation amend-
The board decided, in a vote of six
to two, to either make the summer I
school, in the senior and junior high
schools, pay for itself, or to abolish
the session entirely. The decision be-
tween these two steps will be made
at a later date. If it is decided to
continue the summer session a tui-
tion fee will be charged for each
class elected by the students. Th,3
decision was opposed by trustees T.
R. Peirsol and Elizabeth Slack, who
maintained that the supervision
given the students at the session was .
Since the expense of maintaining
the personnel is by far the largest
part of school expenditures, the
board agreed that cuts in that direc-
tion would be necessary, and that
married teachers should be the first
to go. However, it was decided that
they would not be eliminated entirely
but placed upon the permanent sub-
stitute basis. The edict affects 12,
To Lecture
Whnal"I 011"I

chiants unpaid~ according to several
grocers, and caution is being taken
in giving those houses which are on

the border line credit. One merchant eergencybanking andrelief meas-
stated that he could reduce his prices reyS.
to the fraternitics considerably if his Aressc
accounts could be guaranteed. "We tAddressieng an :joint"cnve t oref
try to be careful," he said, "hut there he Heuse and .enut re te
are som who ae able to put it r Lislature"ust rise to the
are;Dns yry y 'e adesteo ut itovez'"crisis." His words crackled with criti-
o t cism as he charged the House pri-
Sorority Management Better vate corporations committee had de-
The management of sororities is layed the McNitt substitution bill.
much better than that of fraternities, His face stern and his speech vehe-
according to 10 men who do business mcnt, he contended the Senate must
with both groups, and merchants are pass the measure at once so that the
more willing to extend credit to the work of reconstruction may begin.
former. House mothers are able to The governor ordered the joint
run the houses more scientifically session on the eve of a public hear-
than the stewards which are put into ing of the McNitt bill, where opposi-
charge of fraternity finances, it was tion to its enactment was expected
stated. to develop. The galleries and floors
Only one house has been reported 'were crowded. The governor had no
to have closed its board department prepared message, but his informal
and it was understood that the speech was a lashing demand for
members have been contemplating action. The McNitt measure, which
giving up their charter for some would confer upon the banking com-
time, although they still maintain missioner and the governor broad
connection with their national or-,. dictatorial powers, is in the Senate
ganization. banking committee. It can not be
voted upon by the Senate until Sat-'
urday, because of a constitutional
Dorllitories Unaffected - time limitation. The governor left no
By National Moratoriun doubt that he desires the bill passed
then, so it may become operative the
"There will be no decrease in any, first of next week.
of the menus of the dormitories on "There are two things that must
campus because of the present fl- be done," the governor said. "Emer-
nancial crisis," stated John C. Chris- gency legislation must be passed and
tensen, controller and assistant sec- ncy eslation must be
retary of the university yesterday. thereserves ofn'urebanhs ruservbs
'The dormitories are connected with released. We can't get the reserves
the university, and when the credit until the legislation has been enact-
_. A,- ,...1. .,,1- ~il nnl -hrA1C ."~

Believe That Three Were
Called To Aid Roosevelt
In Banking Solution
Advocate Federal
Trip May Mean A doption
Of Their Proposals At
Special Session
Three Michigan professors, mem-
bers of the committee of five eco-
nomists that recently drafted and
forwarded to Washington a plan pro-
posing Federal bank deposit guar-
antees, arrived in the capital yester-
day to consult with government offi-
cials, it was learned last night.
Although no one connected with
the University would make a state-
ment concerning the purpose of their
trip, it was understood that the three
men, Professors I. L. Sharfman and
L. L. Watkins, of the economics de-
partment, and Prof. R. G. Rodkey,
of the business administration school,
were summoned to Washington to
aid the government in solving the
banking crisis.
Their presence in the Capital may
indicate that the Federal govern-
ment is considering the adoption of
their guaranty policy, it was stated
by authorities.
Recent Radio Address
Pederal guaranty was advanced as
"the only remedy" for te present
situation 10 days ago in a radio
broadcast by Professor Sharfman in
behalf of' himself and four col-
leagues, including Professors Wat-
kins and. Rdkey and De C. 1.
Griffin .and Prof. W. A. Pton, both
of the School of Business Admils-
Professors Sharfmian and Watkins
left for Washington Tuesday night,
but their departure was not learned
of until yesterday afternoon
Conjecture regarding instigation
of the conference, about which de-
tails were lacking, centered about
Sen. Arthur H. Vandenberg. Sena-
tor Vandenberg's recently-advanced
plan of a 75 per cent Federal deposit
guaranty has been termed "futile" by
the five professors. Rumor generally
predicted that the conference would
be either with the secretary of the
treasury or directly with President
Roosevelt, but no information on this
point was available.
President Alexander Q. Ruthven
said last night that he was unable
to throw any light on the purpose of
the trip. He stated that the profes-
sors had requested his permission to
leave Tuesday.
Sharfman Optimistic
Before leaving Tuesday Professor
Sharfman issued a statement in
which he said "the banking outlook
is more promising And orderly
and equitable and promising devel-
opments than at any time since the
processes of demoralization set in."
Professor Sharfman based this assr
tion on the. premise that "the bewil-
derment of the past several wees
has given way to resolute action;
local difficulties have been subjected
to the national crisis; the new ad-
ministration appears to possess the
courage and intelligence and the
power and support to achieve . . . a
strong national banking system"
"Piece-meal" emergency financial
measures were attacked ald a 100
per cent Fiederal guaranty~ of all
bank deposits was advanced in the
original address, which ws formally
forwarded to Washington delivered
over the facilities of the 'University
Broadcasting Service.
Repeal Ratification

Bill In Legislature
LANSING, March 8. - /P)-- Advo-
cates and opponents of Michigan's
ratification of the Prohibition repeal
amendment argued here tonight at a
public hearing in the House of Rep-
resentatives on the Heidkamp bill.
The Ileidkamp measure ,which has
passed the Senate, provides for the
selection at the April 3 election of
100 delegates to a ratification con-

of the school is still god, here is
no reason why the houses for women
or men connected with it should be
forced to cut their menus for finan-
cial reasons."
According to Mr. Christensen, the
Law Club is included in. University
i controlled buildings, and the rumor
that it would close for lack of funds
is obviously false.
Inez V. Bozorth, director of Mosher-
Jordan Halls, stated yesterday that
credit would continue to be extended
to residents, and that no one was
being pressed for debts owed to the
Will Continue Menus
Miss Bozorth said yesterday, "we will
continue to feature the same menus
that we have in the past. The dor-
mitory secures its supplies through
the purchasing department of the
university, as does the University
Hospital, and installs them far ahead,
so that now, in the present situation,
we are not forced to ask local mer-
chants for extension of credit. The
purchasing of food for this dormi-
tory, as well as the others on the
camnlpus, is taken care of by the Uni-
vcirsity authorities."
"Our aim is to maintain health,"
I shcontineid "The meals are suf-

'"The Iouse committee took too
long to release the McNitt bill. The
members of the committee knew the
state faced a crisis. I believe the
committeeddallied. The bill now is
before the Senate. It requires imme-
diate action."
Mayan Expedition
LandsAt Honduras
Word that L. C. Stewart, of the
Museum of Zoology, and C. L. Lun-
dell, of the University Herbarium,
had landed in Belize, British Hondu-
ras, on the first leg of their four-
month expedition into northern Gua-
temala, was received here yesterday.
The expedition is being made as
part of a biological survey of the
country where the ancient Mayan
civilization once flourished, in con-
junction with the Mayan project of
the Carnegie Institution. Mr. Stewart
and Mr. Lundell will proceed into
the interior in a few days.
Socialist Club Sponsors
Briggs Strike Discussion

Histories of celebrities among cap- secrets and enabling them to be
tive animals, the result of many j shown on the screen.
years of intimate observation, will be I The group of pictures to be shown
elated at 8 p. m. today when Dr. tonight includes the big cat animals,
Raymond L. Ditmars, curator of the such as the lions, tigers, leopards,
New York Zoological Park, presents and jaguars, many species of bears,
an illustrated lecture, "The Big Ani- the Nile and pigmy hippopotamus,

The appearance of Dr. Ditmars
will mark the finale of the 1932-331
Oratorical Association lecture-series,
which has presented Lowell Thomas,
'UU 'f Vc'ntc Wml nhi,','nt Ti''grlt'vi-

giraffes, zebras, deer, antelope, and
Dr. Ditinars began his career as a
boy, working under a noted ento-
mologist in the American Museum of
Nnitm 1 -Tistnrv_ in Nonm V,-, 'ite C I

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