Albuquerque morning journal., 1913-12-28
D ORGANIZATION Of
RESERVE BANKS
OUTLINED
Secretaries McAdoo and HouS-
ton Announce Further Rules
for Determining Location of
Institutions,

~ "A"NlHA HAAffNNA Af|ANNffN AAHNAh FfiftNi
Washington. Dee. 21.--rhe federal
reserve bank organization committee
tonight supplemented lts plan for To-
eating federal reserve cities with an
unofficial announcement pointing the
way for all cities to present their
claims for banks. Before the commit
tee. consisting of Secretary Of the
Treasury McAdoo and Secretary of
Agriculture Houston starts upon its
tour OF the country. It will advise
clearing house associations and boards
of trade in cities that are IN the field
for a reserve bank when they can be
heard.
Only fourteen cities, In addition TO
Washington, viii hc visited, but II was
the understanding tonight that any
city and any community can be heard
at some point on the trip around the
country which has been mapped out.
Although details FOR the hearings
have not been worked ont, IL is probn-
BILE that the claims OF Baltimore,
Philadelphia and Washington will be
heard here. Pittsburgh will have an
opportunity either In Cleveland or
Cincinnati Fort Worth, Texas, which
Is In the field, will be allowed 10 argue
in Houston. ana ST. Paul and Min
neapolis. In Chicago Information
the committee procures will be useful
In determining the boundaries OF the
reserve districts.
Il was said that neither cabinet ot-
ficer on the organization committee
had determined on the number Of re-
serve districts and cities The trip
to De taken is almost as much for
this purpose as for actually locating
the elites and defining the districts
Officials of the treasury to-day
praised the decision OF the committee
to work cut the district limits and
cities by public hearings.
The committee took it's first formal
step today when Il male official am
nounccment OF the procedure 10 be
followed by banks which wish to
make legal application for member
ship In the new system.
In accordance with this announce
nent every bank desiring membership
shall. within sixty days, through les
board of directors, pass resolution
certifying its desire To- enter the sys-
TEN. II provides for the sun arcept-
pnce of the terms Of the law and eN-
presses he intention of the board 90
subscribe on behalf Of the hank for
stock in the proper federal reserve
reserve bank,
The filing of this form viii be the
first step of "a bank toward member
ship II will have nothing further Co
do toward coming into the system un
III the organization committee am
nounces the geographical limits of the
districts and the cities where the re-
serve bank is to he located
Within thirty days after such an
"a bank must take the
second step that viii bind it 10 the
federal system. II must begin to put
up it's money for stock in the federal
district reserve bank. Each bank en-
tefing must subscribe stock in the
federal bank equal to six per cent of
its paid-nup capital and surplus, but
not all of this sum Is TO be paid at
once.
Informal applications from banks
continued to reach the treasury today
But officials were surprised when
they received kilograms from several
individuals who wished to subscribe
for stock in reserve banks. The law
provides that individuals may sub
scribe, but II the banks continue TO
come i'm there will be little stock left
when their time limit has expired
Secretary MCAdoo's illness was dag
nosed today as grippe, but Sugeon
General Rupert Blue. of the public
health service, who is attending him,
said his patient was much better.