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Show News Review of Current Events the World Over Congress Passes Legislation Asked l.y President to End the Banking Crisis Japanese Complete the Conquest of Jehol. Hy I'.nWAKD W. riCKAKD rxrANSION of the fiinviicy to the fxtt-nl of hilllons of dollars will result from the leislali.ni which I'rcsliloiit Uoos,-vclt iiUecl of the r-m$ i-jfwvi extraordiuarj session ' N N f conitress and which V' was t'liaci imI within , few hours allor the new c o n it r e s s was ; . cnven.Ml on Thurs- day. March !. The new currency Is hascd - ii, i on pld hul on f . ; the liittii assets of 1 V-clV ,lu" l'.'itds. The ilan b "V t?- v:i devise d in ter 1' iti; hours of confer-Sec confer-Sec y Woodin . ,, . , 7 en--e hy the President. Seer, lu rj of the Treasury William II Woodin and n number of Itnaucial advisers ad-visers of the administration, and It was the mair feature of their solution of the hanking crisis thai was par ulyzliit: the nation The oilier chief points in Hie legislation legisla-tion which the I'residciit called for In his brief but spirited message were: Continued suspension of tt'dd pay-uients pay-uients and embargo on expnris of jtoltl. Clothing of the I'residen' with the powers of a financial dictator. Continuation of the national hank lUit holiday, wholly or ill part, ponding complete reopenin;: of the banks. I.eita li-at ion of the bank holiday proclamation of March 5 and all measures meas-ures adopted hy the treasury to carry it into effect. TVcause the new currency Is not hacked hy gold It Is called federal reserve re-serve hank notes to distinguish it from federal reserve notes which are hacked by gold. To what extent if auy. Inflation of the currency will he. produced hy this increase In the volume of money was cne of the big questions Involved In the lioosevelt plan. That Inflation will be the consequence conse-quence was a conclusion widely reached In financial and commercial circles, with the result that a leap upward up-ward of commodity and security prices was looked for the moment the exchanges ex-changes reopen. The act creating the new currency liberalizes the provisions of the Glass-Steagall Glass-Steagall act by allowing banks to Issue notes with no gold reserve behind them. The notes thus Issued are bailed only by United States bonds In the same manner as national bank notes issued by national banks. It further fur-ther liberalizes section 10a of the federal fed-eral reserve act as amended by the Glass-Steagall act so as to enable banks to obtain currency on "liquid assets" of a character not previously eligible One of the effects ol the legislation will be to produce a unified banking system. Only member banks of the federal reserve system are able to avail themselves of. the privileges afforded af-forded by this legislation to convert assets previously Ineligible Into currency. cur-rency. State banks ure compelled to Join the federal system In order to obtain ob-tain the funds that will enable them to reopen. Another foreseen eftect Is the weeding weed-ing out of weak banks. Institutions nnable to furnish liquid assets for currency cur-rency will be unable to reopen. Others will be able to remain open to the extent of their liquidity pending at least a recovery of general public confidence con-fidence in banks. Legislation to stop hoarding also was considered by congress and measures meas-ures for reaching and punishing the hoarders of currency whose withdrawal of deposits brought on the panic and caused the closing of the banks were discussed by the administration and leaders of the senate and house. As a preliminary move In this direction the federal reserve board at the Instance In-stance of Mr. Roosevelt, sent telegraphic tele-graphic orders to all federal reserve banks to furnish by March 13, lists of persons who have withdrawn gold since February 1, and bad not by that time redeposited their gold withdrawals. with-drawals. FOR days there was considerable confusion con-fusion concerning the banking situation situ-ation mainly because of differences between be-tween the President's proclamation and the orders issued by governors of various states. This was especially true in New York and Illinois. Day by day Secretary Woodin Issued orders or-ders modifying those in the government's govern-ment's proclamation closing down all bi.nks, but there was much misunder standing of his regulations regarding limiting opening of the Institutions. Clearing houses were busy holding meetings but failed to live up to their name by clearing up the situation and the hanks were uncertain of both their powers and their responsibilities. In many cities and towns banks were ipon tc carry on limited activities activi-ties that were required to provide food, foodstuffs and medicines and for the meeting of pay rolls. Throughout the country preparations were made for the issuance of scrip, pending the receipt of the necessary authority from Washington. Secretary Woodin. however, ruled against scrip, though he sanctioned the issuance in various localities of clearing house certificates against sound assets of hanks for use as an emergency circulating medium. Despite all the confusion and incon venience, the American public remained re-mained fairly calm and appeared to have conlldence In President lioosevelt lioose-velt and his advisers. The general feeling was that the vigorous new Chief Keculive would he able to devise de-vise competent measures for temporary tem-porary relief of the situation and to force their adoption hy congress. Following the enactment of the legislation leg-islation for the reopening of the hanks the President asked congress for authority au-thority to cut an estimated $."iiKt,(HKV IHH) out of government expenditures by cutting government salaries up to la per cent, and hy drastic reductions In payments to veterans. It Is expected ex-pected that Knottier $'JiKi,(HWl,IKHI will be saved by the reorganization and combining of many government departments, de-partments, authorization for which was passeil 111 the closing days of the last congress. DEMOCRATIC membership of 313 In the house of representatives gives them tin unwieldy majority, and the certain consequence Is Intra party . wrangling. At present . the control seems to he In the hands of ; Speaker Henry Palney .' and two allies. Ploor - , Leader P.yrns and ' .""J j I llepresentative Cullen, -N , leader of the Tain-i Tain-i tv- -' many delegation from .. ; New York. Opposed I to Lhem Is a faction - headed by MeDuliie of Alabama, who sought Speaker y,ilHv (o e plot.Il,,1 Ra'ney speakou. It was said several of the Alabaman's most active supporters were quietly Informed that they would be punished by being shifted shift-ed from Important committees to minor assignments. Senator James Hamilton Lewis of Illinois was elected whip of the Democratic Demo-cratic majority In the senate, and Senator Joe Robinson of Arkansas was chosen to be senate leader. Also party authority was made stronger than it has been for many years. The caucus agreed that the vote of any future fu-ture caucus upon any measure recom mended by the President should be binding upon all except those who excused ex-cused themselves from voting for cause. It was further agreed that a simple majority. Instead of the more customary two-thirds majority, should make the action of the caucus binding bind-ing and that two-thirds of the whole number of Democratic senators should constitute a caucus. The caucus further chose Senator Kendrick of Wyoming as assistani leader. Senator Key PittmaD as Demo cratlc candidate for president pro tern pore, Edward Halsey as candidate for secretary of the senate, Chesley W. Jurney as candidate for sergeant at arms, and U L. Riffle as secretary to the majority. rl'RING Its brief special session that convened on Inaugural day the senate confirmed these appoint ments by the President : Prof. Raymond Moley of Columbia as an assistant secretary of state. William Phillips of Massachusetts, as undersecretary of state, who will be directly In charge and accountable to Secretary Hull. Wilbur J. Carr of New York, reap pointed as assistant secretary of state Henry Morgenthau. Jr., of New York member of the federal farm board. William F. Stevenson of South Carolina, member of the federal home loan bank board. T. Dwight Webb of Tennessee, member mem-ber of the home loan board. FOLLOWING out the campaign plan devised by Lieut. Gen. Kuniaki Koiso, the Japanese armies virtually completed 'he conquest of the province of Jehol. The Chinese .-wgo;..-; - governor fled and all je the Chinese troops were forced out after . x a last defensive strug ? k , gle at Koupeikow, a ? i pass In the Great -:f . m-Wall. m-Wall. Japanese planes -vj first bombed the Chi ' ' nese positions there, js-" '.,, and then General x-s, Kawahara's brigade took the place. The ' . , Japanese thus com Gen" Kunlaki pleted the seizure of Kols 2."0 miles of the Great Wall, extending from the inner Mongolia to the Yellow sea. The Chinese tied toward Peiping and the confusion and fright in that city led the authorities to establish martial law. The Japanese said they would not push on to Peiping unless forced to by reprisals against their countrymen country-men In that city. Marshal Chang Hsueh-liang was severely criticized for the loss of Jehol and resigned as mill lary overlord of North China, accepting accept-ing the blame and asking that the na tional governmttnt relieve him of all posts. .Maxim Litvinov, foreign commissar of Russia, bluntly informed the League of Nations that the Soviet government would not participate in the doings of the league committee set up to handle the Siuo-Japanese quarrel. I.'VXPItKSSIN'd his "cordial npprecl-' npprecl-' utlon" for the work done In tho Philippines as governor general hy Col. Theodore Roosevelt, the president accepted that i;eiillenian's resignation, lie reappointed John II. llolllday a vice governor ami the MLssourlan will be acting governor general in til a man Is chosen for (hat dace. It Is almost certain that llomlT Cuuimlngs will got the plum. Mr. Cummlngs was made attorney general In the new cabinet after the death of Senator Walsh, hut It Is taken for granted that this appointment ap-pointment Is only temporary. Lewis Douglas was formally appointed ap-pointed director of the budget und was busy with the drastic economy plaim he has been formulating for several weeks. This able young man from Arizona believes he can cut u billion dollars from the four-billion dollar annual an-nual federal tax hill, and It Is needless to tuy the public Is cheering him on lu his efforts. CHICAGO was thrown Into mourning mourn-ing hy the death of Its mayor, Anton An-ton J. Cernuik, who succumbed to complications resulting from the bullet from Zangara's pistol when that assassin as-sassin tried to kill Mr. Roosevelt In Miami. Cermak's body was taken home from Florida on a special train and lay lu state In Chicago's: city hall for n day and night, many thousands passing the bier to say farewell to the man who had made himself leader of the Democracy of Illinois. His funeral In the Stadium was a stupendous ceremony cere-mony and the procession was the longest long-est ever seen In the city. Zangara was promptly Indicted In Miami am arraigned on the charge of first-degree mur "er. and there was no doubt as to what lb" outcome of his trial would be. TIlOcX.H It was generally admitted that the world disarmament conference con-ference In Geneva was In a had way, the llrltlsh started to make a last effort ef-fort to revive It or at , least to salvage some thing from Its work With this In mind ' ' - ; Prime Minister Mac Donald and Sir John 5 . j Simon, foreign score f. ' ' j tary. went to tlo j Swiss city to see what ? , ' , j could he done. The I m - - j denied they had nn t - definite plan of ac . . . . '.df tlon. but thev hoped , v. i Premier to get Premier Dala . . tiler of France and Chancellor Hitler of Germany together to-gether on some arrangement that would prevent the utter breakdown of the conference. Sir John Simon said befon leaving London that one of the first Issue's he and Mr. MacDonald would take up In Geneva would be the fact that no other nations had followed Great I'ritain's lead In Imposing an arms embargo against China and Japan, which, as he remarked, "leaves P.rlt-ain P.rlt-ain In a situation which cannot be allowed al-lowed to continue." The British recognized that the financial situatlor. In the L'nlted States might well delay any disarmament disarma-ment action and certainly would cause postMinement of the war debts conferences. con-ferences. In the latter matter, however. how-ever. Sir Ronald Lindsay, British ambassador, am-bassador, did find opportunity to talk with President Roosevelt's advisers. FIRMLY seated In power by victory In the relchstag elections. Chancellor Chancel-lor Adolf Hitler now plans to rule Germany without parliamentary aid for about two years. His National Socialists Social-ists hold about 44 per cent of the votes In the new reichstag and the Nationalists, Nation-alists, his present allies, have S per cent. The election passed off quietly Instead of being the bloody affair the foes of the azis had predicted. The chancellor believes that democracy is a failure in Germany and now has the legal tools to annihilate it. There were many Indications that the country coun-try is on the way to restoration of the monarchy One superficial sign of this was the rapid disappearance of the (lags of the republic, the flags of the Nazis and of the old empire being substituted. sub-stituted. Hitler, however, feels that the restoration must be postponed until un-til conditions are Improved, and In this the monarchists agree with him. An evidence of the trend toward conservatism con-servatism was the order of Hermann Goering, Nazi minister without portfolio, port-folio, suppressing the nudist movement. move-ment. WHEN congress appropriated fS,440.CH.iO for the annual expenses ex-penses of the bureau of prohibition enforcement it stipulated that none of the money was to be spent on wire tapping or the purchase of liquor as evidence. These provisions do not become be-come effective until July 1. but Amos W. W. Woodcock has ordered them Into In-to effect now. pointing out that "cases made contrary to them now prohanly will be tried after these provisions become be-come law." The result of the order, Mr. Woodcock Wood-cock said, will mean a comp'ete change In enforcement methods o?d ''will cause this bureau to ope. i;o almost al-most exclusively against the miivr.'ac-turers miivr.'ac-turers and transporters" of lijuor. This, naturally, is good news ts the operators of night clubs and speakeasies. speak-easies. THREE days after completlna his ninth consecutive term in the house of representatives. Will It. Wood of Indiana died quite unexpectedly ii New York. He was about to sail on a two months' cruise of the Mediterru nean for a complete rest after his lorn and arduous lalHirs in Washington Mr. Wood was one of the most activi and inlluential of the Republicans it, the house and in the last congress was chairman of the appropriations com miltee. He was seventy two years old . 1933 Western Newspaper L'dIoq. |