Show t news review of current k events the world over congress passes legislation asked by president to end the banking crisis japanese complete the conquest of by EDWARD W PICKARD elbe EXPANSION of the currency to the extent of billions of dollars will result from the legislation which president roosevelt asked of the extraordinary session of congress and which was enacted within a few hours after the new congress was convened on thursday march 9 the new currency Is based not on gold but on the liquid assets of the banks the plan was devised after long hours of confer secy woodin ence by the president secretary of the treasury william el wooden and a number of financial ad of the administration and it was the main feature of their solution of the banking crisis that was paralyzing ohp nation the other chief points in the legislation which the president called for in his brief but spirited message were continued suspension of gold payments and embargo on exports of gold clothing of the president with the powers of a financial dictator continuation of the national banking holiday wholly or in part pending complete reopening of the banks legalization of the bank holiday proclamation of march 5 and all measures adopted by the treasury to carry it into effect decorse rei ause the new currency Is not backed by gold it Is called federal reserve bank notes to distinguish it from federal reserve notes which are backed by gold to what extent it if any inflation of the currency will be produced by this increase in the volume of money was one cne of the big questions involved in the roosevelt plan that inflation will be the consequence was a conclusion widely reached in financial and commercial circles with the result that a leap upward of commodity and security prices was looked for the moment the exchanges ch reopen new currency liberalizes the provisions proTIs lons of the glass act by allowing banks to issue notes cotes with no DO gold reserve behind them the notes thus issued are backed only by united states bonds in the same game manner as national bank notes issued by national banks it further liberalizes section loa of the federal reserve act as amended by the glass act so as to enable banks to obtain currency on liquid assets of a character not previously eligible one of the effects of the legislation will trill be to produce a unified banking system only member banks of the federal reserve system are able to avail themselves of the privileges afforded by this legislation to convert assets previously ineligible into currency state banks ure lre compelled to join the federal system in order to obtain the funds that will enable them to reopen another foreseen effect Is the weeding out of weak banks institutions unable to furnish liquid assets for currency will be unable to reopen others will be able to remain open to the extent of their liquidity pending at least a reco recovery of general public confidence in banks legislation to stop hoarding boarding also was considered by congress and measures tor for reaching and punishing the boarders hoar ders 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 bouse As a preliminary move in this 11 direction the federal reserve board at the instance of mr roosevelt Koo sevelt sent tel telegraphic orders to all federal reserve banks to furnish by march 13 lists of persons who have withdrawn gold since february 1 and had not by that time their gold withdrawals dra wals foit olt days there was considerable consi demable confusion concerning the banking situation mainly be because becaas caus of differences between the presidents proclamation and the orders issued by governors of various states this was especially true in new york and illinois day b day secretary woodin wooden issued orders modifying those in the governments proclamation closing down all binks but there was much 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 banks were uncertain of both their powers and their responsibilities in many cities and towns tons banks were pan pen tt carry on limited activities that were required to provide food foodstuffs and medicines and for the meeting of pay rolls throughout the country preparations were made tor for the issuance of scrip pending the receipt of the necessary authority from washington secretary woodin bo however weer ruled against scrip though he be sanctioned the issuance in various localities of clearing house certificates against sound round assets of banks tor for use as an emergency circulating medium despite all the confusion and incon veni lenience ven lence ence the american public remained fairly calm and appeared to have hare confidence in president roosevelt and his advisers the general feeling was that the vigorous new chief executive would be able to devise competent measures tor for temporary relief of the situation and to force their adoption by congress following the enactment of the legislation for the reopening of the banks the president asked congress for authority to cut an estimated out of government expenditures by cutting government salaries up to 15 per cent ceat and by drastic reductions in payments to veterans it Is 19 expected that another will be saved by the reorganization and combining of many government departments part ments authorization for which was passed in the closing days of the last congress membership of democratic din in the house of representatives gives them an unwieldy majority and the certain consequence Is intra party wrangling at present the control seems to be in the hands bands of speaker henry rainey and two allies floor leader byrns anil and 91 N representative cullen leader of the tammany delegation from new york opposed to them Is a faction headed by mcduffie of alabama who sought speaker vainly y to te be elected elc tel rain rainey y akeo it was salt said several of the most active supporters were quietly informed that they would be punished by being shifted from important committees to minor assignments senator james hamilton lewis of illinois was elected whip of the democratic 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 caucus upon any measure recommended reco by the president should be binding upon all except those who excused 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 and that two thirds of the whole number of democratic senators should constitute a caucus the caucus further chose senator kendrick lck of wyoming wyomia as assistant leader senator key pit pittman iman as democratic candidate for president pro tern tem pore edward halsey balsey as candidate for secretary of the senate chesley W jurney as candidate for sergeant at arms and L L L cillie as secretary to the majority DURING its brief special session that convened on inaugural day the senate confirmed these appointments 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 lull cull wllbur wilbur J carr of new york tork reap pointed as assistant secretary lofstate of state henry jr of new york member of the federal farm board william F R stevenson of south carolina dollna ro llna member of the federal home ioa loan n bank board T dwight webb of tennessee member of the home loan board FOLLOWING out the campaign plan devised by gen bolso the japanese armies virtually ca completed the hu conquest of the province of beho the chinese governor fled and all the chinese troops were forced out after a last defensive struggle at Kou a pass in the great wall japanese planes first bombed the chi nese positions there and then general Kawa haras horas brigade J took the place the gen japanese thus corn com bolso 1 plated the seizure of miles of the great wall extending e X t ending from the hie inner mongolia to the yellow sea the chinese lied fled toward neiping and the confusion and fright in that city led the authorities to establish martial law the japanese said they would not push on to helping unless forced to by reprisals against their countrymen in that city marshal cho ghana was severely criticized for the loss of dehol and resigned as military overlord of north china accepting the blame and asking that the national government relieve him of all posts maxim litvinov foreign commissar of russia bluntly informed the llague LL li ague of nations that the soviet government would not participate in the doings of 0 the league committee set up to handle the sino japanese quarrel THE tern HE los angeles section of southern california covelli covering F an area from VL ventura tura on the no north ith an to S san diego on the south and extending inland for some SO 30 miles suffered severe earthquake shocks on friday evening march 10 causing deaths injury to more than and property loss running into the millions between and 1059 14 distinctly violent shocks had occurred the first one of which did the greater part of the damage and caused all the loss of life long beach suffered the greatest loss of life and proportionately the greatest property damage at that point 65 people were killed and 1000 injured at los angeles 12 people w were ere killed and some were injured other towns suffering severely and at which deaths occurred were watts 4 dead campton 13 dead santa ann ana 3 dead huntington park 12 dead san pedro 2 dead ton 1 dead bellflower 3 dead artesla 4 dead hermosa beach 1 dead garden grove I 1 dead walnut park I 1 dead norwalk I 1 dead fire in many bof of the towns and es specially pec lally ally long beach and los angeles added to the terror but fortunately the water mains were not seriously damaged and the firemen bremen were able to cope with the flames regular army troops at fort mcarthur were ordered to operate cooperate co with the police in preserving order and ships of the navy from san diego were dispatched to points along the coast to render old aid naval surgeons providing aid and medicines for the injured the governor of california ordered national guard troops to the scene to assist in the work of reicho and to maintain order it was generally admitted 1 that the world disarmament conference in geneva was in a bad way the british started to make a last effort to revive it or at least to salvage something from its work with this in mind prime minister mac bloc donald and sir john simon foreign secretary went to the swiss city to see what could be done they denied they had any definite plan of action but they hoped premier 0 i to get gel premier dala macdonald 1 dier of france and chancellor hitler of germany together on some arrangement that would prevent the utter breakdown of the conference sir john simon said befort leaving london that one of the first issues he up geneva would be the fact that no other nations had followed great britaina Brit ains lead in imposing an arms embargo against china and japan which as he remarked leaves britain in a situation which cannot be allowed to continue the british recognized that the financial situation in the united states might well delay any disarmament action and certainly would cause postponement of the war debts conferences feren ces in the latter matter however sir ronald lindsay british ambassador bas did find opportunity to talk with president Roosevel ts advisers fin FIRMLY seated in power by victory in the reichstag elections chancellor adolt adolf hitler now plans to rule germany without parliamentary aid for about two years ills his national socialists hold about 41 44 4 1 per cent of the votes in the new reichstag and the nationalists his present allies have 8 per cent the election passed oft off quietly instead of being the bloody affair the foes of the aels had bad 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 Is on the way to restoration of the monarchy one superficial sign of this was the rapid disappearance of the hags flags of the republic the be flags of the nazis and of the old empire being substituted hitler however hoever feels that the restoration must be postponed until conditions are improved and in this the monarchists agree agree with him an evidence of the trend toward conservatism ism was the order of hermann goering Goerl ng nazi minister without portfolio suppressing the nudist movement WHEN LIEN congress appropriated for the annual expenses 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 effective until july 1 but amos IV W woodcock has ordered them into effect now pointing out that cases made contrary to them now probably will be tried after these provisions become law the result of the order mr woodcock said will mean a complete change in enforcement methods and will cause this bureau to operate almost exclusively elusively against the manufacturers and transporters of liquor this naturally Is good news to the operators of night clubs and speak eadies days after completing his THREE ninth consecutive term in the house bouse of representatives will R wood of indiana died quite unexpectedly in new york ile he was about to sail on a two months cruise of the mediterranean tor for a complete rest after his long and arduous labors in washington mr wood was one of the most active and influential of the republicans in the house and in the last congress was chairman of the appropriations committee ile he was seventy two years old ft 3 western newspaper union |