Omaha daily bee., 1909-05-28
JAMES STAND UP FOR ONAHA
Application of South Omaha Bankers
for Reserve Center Opposed.
BLOW AT BOTH CITIES STANDING
C~Iearinss, wOuId Re Quoted Sep
arateIy, Money Now kept In
Omaha would Go East, say
Bankers I'm TellinR why.

II South Omaha is made a reserve center
by the treasury department it will be the
most severe blow to Omaha commercially
which the city has receive in years, take
thousands Of dollars from the South
on aha banks TO the central reserve cen
tiers of the east. cause Omaha and South
Omaha bank clearings to he quoted separ-
ateiy in all parts OF the country and other
wise have the same effect as though st.
Joseph or Sioux City gained some big
commercial advantage over Omaha.
This is the view. which looks gloomy
but IL taken by not only Omaha bankers
but business men, Of tht attempts OF
| South Omaha bankers to secure the des-
~ignation OF the city as a reserve center and
which is actively opposed by omaha bank
ers now in Washington.
II all centers about the question whether
Omaha should be consolidated with South
Omaha or not. II this could be done,
the South Omaha banks would have the
advantaea they now seek of being in q
a city designated as a reserve center.
In the opinion of bankers and business
men TO now designate South Omaha as a
reserve city would be a bad thing for both
cities. The Omaha Clearing House assoc
citation would be minus the members from
South omaha. though the commercial and
financial interests are so irseparably con-
nected that no business man would think
OF questioning the right to quote the clear
ings of the Omaha and South Omaha banks
together. and thus make the Omahas a
financial center in reality as well as In
name.
Money Goes out of Omaha.
The South Omaha banks now carry large
accounts in the Omaha banks, but do not
carry balances In the central reserve cities
of New York, Chicago and st, Louis Tor
reserve purposes. II South omaha Is desig-
mated as a reserve city, the South Omaha
banks. so bankers say, will transfer their
accounts from Omaha banks to one OF the
central reserve cities.
This becomes necessary in the conduct of
the banking business and the handling OF
reserves. The national bank out in the
state Of Nebraska Is required to carry Is
per cent of it's deposits 'in cash or due
them from banks in a reserve city" THUS
a national bank at Columbus may have
only 10 per cent cash, II one OF the oman
national banks owes It an amount equivs-
lent to 15 per cent OF its deposits.
The Omaha banks carry balances in the
central reserve cities and handle the bust
ness of the South Omaha banks the same
as banks out in the state or In this terri
tory, thus making IT unnecessary for the
South Omaha banks to put up thousands
Of dollars for reserves in the cities OF New
York, Chicago or st. Louis.
Not Altogether selfish.
The opposition of the Omaha bankers to
the movement started by the South Omaha
banks is not altogether selfish. II is said
TO have some patriotism in II also. They
do not believe IL is a good thing to have
two reserve cities SO close together. and
believe the success of the South Omaha
bankers will be a severe slap at Omaha,
while giving no great advantage to South
Omaha except to enable the banks there
to get some accounts from out-of-towr
banks.
c. F. McGraw vice president of the
Omaha National bank; Luther Drake, pres.
ident of the Merchants National, and Vic.
tor Caldwell OF the United States National
are among the Omaha bankers now in
Waebip0ton