SAMVA USA chart: the bank holiday of 1933

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Dear friends,

 

As part of documenting this information, I have turned the post into

a blog.

 

http://cosmologer.blogspot.com/

 

Feedback welcome on this list!

 

Best wishes,

 

Thor

 

 

SAMVA , Cosmologer <cosmologer wrote:

>

> Dear friends,

>

> A list member sent me off list information about this event and I

did some research and discovered that banking activity ground to a

halt from March 3-14, 1933. Below, please find a description of the

event (a bit long, but revealing) and then an analysis of the

transits. I have also attached the transit chart and a table of the

transits at that time. The SAMVA chart " nails it " again!

>

> Best wishes,

>

> Thor

>

>

> The Banking Holiday of 1933

>

> Prologue

> In March 1929, some bankers had begun to exercise caution in

lending to speculators, and the rate for " call money " soared to 20

percent. The market took another tumble but then recovered after

Charles E. Mitchell, chairman of the National City Bank in New York,

announced that his bank would loan as much money as necessary

to " avoid a general collapse of the securities markets. " In September

1929, the economist and educator Roger Babson predicted that, " Sooner

or later a crash is coming, and it may be terrific. " His words caused

the market to skid, but share prices quickly recovered. On October

24, 1929 ( " Black Thursday " ) investors panicked after the stock ticker

fell behind. The market went into a free-fall as brokers and

speculators scrambled to unload their holdings for whatever price the

shares would bring. On October 29, 1929 ( " Black Tuesday " ) another

wave of panic selling sealed the market¢s fate.

>

> Signs of weakness in the U.S. banking system bad begun to appear

long before the stock market crashed. A statement issued in 1930 by

the Comptroller of the Currency, the primary regulator of national

banks, noted " the failure of 5,600 banks in the past ten year

period. " (Bank failures had hit 775 in 1924 and 976 in 1926.) Banks

in less prosperous rural areas were particularly vulnerable. But in

the aftermath of the Crash, the banks¢ weakness became more

pronounced, prompting President Hoover to press for reforms.

Congress, too, gave banking reform a high priority, as did the

banking industry. Unfortunately, the parties were unable to agree on

all appropriate course of action. A few proposals were mulled by

Congress, but no substantive measures were passed during 1930 or

1931.

>

> By some estimates more than one-quarter of the US work force was

unemployed at the end of 1932. The Great Depression didn¢t really

loosen its grip on the U.S. economy until 1940. But the Bank Holiday

of 1933 marked a turning point. Federal action strengthened the

financial system, restored public confidence in banking, and helped

to dispel the sense of hopelessness that had

> begun to pervade every aspect of daily life.

>

> The Banking Holiday (Crisis)

> By March 3, 1933, the mounting toll of bank closures and failures

had forced bankers and their regulators to recognize the need for

decisive action. The directors of the Federal Reserve Bank of New

York adopted a resolution requesting the Federal Reserve Board in

Washington, D.C., to urge President Hoover to proclaim a nationwide

bank holiday.

>

> George Harrison, of the New York Federal Reserve Bank, reversed his

opposition to a statewide bank holiday after meeting with Governor

Lehman and tile New York State Superintendent

> of Banks. representatives of the Clearing House Banks of New York

then gave the proposal their qualified support (provided that the

record show they neither sought nor directly requested the action,

and Governor Lehman declared a statewide bank holiday, effective

March 4, 1933. The governors of Illinois, Massachusetts, New Jersey,,

and Pennsylvania soon followed New York¢s lead.)

>

> On March 4, all twelve Federal Reserve Banks kept their doors

locked, and banks in 37 states were either completely closed or

operating under state-imposed restrictions on withdrawals. (Despite

the gravity of the situation, Kentucky¢s bank holiday proclamation

reflected a certain tongue-in-cheek charm. " While the people of the

state of Kentucky are suffering from a general depression, they may,

perhaps, in comparison with the people of other states, have just

cause for thanksgiving, " declared Governor Ruby Laffoon in a

proclamation that created four days of " Thanksgiving " as a pretext

for closing Kentucky¢s banks.) All that remained was for the

President to order a nationwide bank holiday, but neither President

Hoover nor President-elect Roosevelt appeared eager to take that

step. Hoover¢s defeat at the polls had left him dispirited and

seemingly incapable of rousing himself to call for such drastic

action. And the Democratic majority in the House

> of Representatives showed little inclination for cooperating with

a lame duck Republican President. Hoover did, however, send Roosevelt

a ten-page handwritten letter describing the gravity of the banking

crisis and urging the President-elect to issue a public statement on

the matter. But no statement was forthcoming. Roosevelt¢s advisers,

Who had no clearly defined strategy of their own for dealing with the

banking crisis, were willing to remain vague until after their boss

moved into the White House.

>

> Expectations ran high on March 4, 1933, as Franklin D. Roosevelt

prepared to succeed Herbert Hoover. Americans fervently hoped that a

change in Washington would lead to a change in the country¢s economic

fortunes. More than 100,000 people crowded onto a forty acre site

near the U.S. Capitol to hear the new President take the oath of

office and deliver his inaugural address; millions of others huddled

around their radios.

>

> Roosevelt¢s words were calculated to buoy public confidence, and by

most acconnts they succeeded in doing so. He began by declaring

his " firm belief that the only thing we have to fear is fear itself--

nameless, unreasoning, unjustified terror which paralyzes needed

efforts to convert retreat into advance. " He blamed the economic

collapse on " the rulers of the exchange of mankind¢s goods [who] have

failed through their own stubbornness and their own incompetence,

have admitted their failure and abdicated. " For emphasis he

added, " Practices of the unscrupulous money changers stand indicted

in the court of public opinion, rejected by the hearts and minds of

men .... The money changers have fled fiom their high seats in the

temple of our civilization. "

>

> Although the address was short on specifics, Roosevelt identified

two immediate objectives: putting people to work and " strict

supervision of all banking and credits and investments. " immediately

after the inaugural ceremonies, the new Administration and the new

Congress began to grapple with the banking crisis. The Senate swiftly

approved Roosevelt¢s cabinet choices, and later that afternoon the

entire cabinet was sworn in during a single ceremony at the White

House.

>

> The following day, cabinet members joined with Treasury and Federal

Reserve officials to lay, the groundwork for a national bank holiday,

and at 1:00 a.m. on Monday, March 6, President Roosevelt issued a

proclamation ordering the suspension of all banking transactions,

effective immediately. (The bank holiday proclamation was based on

drafts originally prepared by Treasury and Federal Reserve Board

officials for President Hoover).

>

> To the Senate and House of Representative (from President Roosevelt)

s:

> On March 3, banking operations in the United States ceased. To

review at this time the causes of this failure of our banking system

is unnecessary. Suffice it to say that the government has been

compelled to step in for the protection of depositors and the

business of the nation. Our.first task is to reopen all sound banks.

>

> Emergency Banking Act signed into law by President Roosevelt at

8:36 pm on March 10, 1933.

>

> The Emergency Banking Act was never intended as a comprehensive

reform bill. Its two main purposes were to stop the erosion of public

confidence in the banking system and to establish a mechanism for

reopening the closed banks. To those ends, the Act gave the

President tremendous World War powers of regulation over

transactions in credit, currency, gold and silver,

> including foreign exchange. " It also empowered the Secretary of the

Treasury " to require delivery

> at the Treasury of all gold and gold certificates held by anybody

in the country [in exchange for dollars]. " (The prohibition against

U.S. citizens buying, selling, or holding gold -- other than jewelry -

- was not to be repealed until 1974.) These measures stopped the

outflow of U.S. gold reserves and put a halt to the domestic hoarding

of gold.

>

> On March 13, only four days after the emergency banking legislation

went into effect, member banks in Federal Reserve cities received

permission to reopen. By Marcia 15, banks controlling

> 90 percent of the country¢s banking resources had resumed

operations, and deposits far exceeded witbdrawls.The immediate crisis

bad begun to subside, but government officials, Congressional

> leaders, and most bankers recognized the need for a major overhaul

of the U.S. banking system.

> Favorable reaction to the Emergency Banking Act had created

momentum for comprehensive reform, audjust three months later, on

June 16, [1933] President Roosevelt signed the Banking Act of 1933,

more popularly known as the Glass-Steagall Act.

>

> After Glass-Steagall, the Roosevelt Administration completed its

reform of the banking industry, with the Banking Act of 1935, which

strengthened the monetary and regulatory system by granting the

Federal Reserve greater independence from the White House, the

Congress, and the banking industry.

>

>

> The astrological dynamics

> Ra/Ve period is operating in the SAMVA USA chart.

>

> Jupiter and Sun are the general indicators of banking in SA mundane

astrology. Jupiter rules finance and the Sun vests the banks with the

authority of the state. In the SAMVA USA chart, Jupiter as 6th lord

of financial stability becomes the functional indicator of debt

finance. During the banking holiday crisis Jupiter in transit at 26°

Leo and 2nd house was exactly afflicted by natal 8th lord of

obstacles, Saturn at 26° Scorpio. Transit Saturn was also exactly

afflicting natal Ketu and houses 7, 9, 1 and 4. This aspect adds to

the energy of sudden breakdown. Transit Ketu and Mars in Leo and the

2nd house were conjunct and also exactly afflicted by natal Rahu,

suggesting crisis for the government. Last but not least, transit Sun

and Rahu were transiting the 8th house of obstacles, were they were

afflicted by natal Ketu, also adding to disruptive energy and

problems for the government. Finally, Venus as 4th lord of collective

harmony was also transiting

> the 8th house, adding to the strain of the situation.

>

> Interestingly, as soon as transit Jupiter moved out of the aspect

of Saturn, the banks reopened their doors. This is considered a

pivotal moment in the decade long crisis, in that the recovery of

finance was a crucial step in getting the wheels of prodcuction and

commerce moving again.

>

> --------------

> Source: Closed for the Holiday - The Bank Holiday of 1933

> The Federal Reserve Bank of Boston.

> http://www.bos.frb.org/about/pubs/closed.pdf (20:26 GMT on January

16, 2008)

>

>

>

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