Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1913-12-27
MANY CITIES PREFER THAT RE.
SERVES BE HELD IN OTHER
CITIES OF DISTRICT.
SEE ADVANTAGES WHEN
DEPOSITS ARE ELSEWHERE
Certain That New York, Chicago, San
Francisco and ST. Louis Will Be
chosen-Other Locations to Be Dc.
termined With View Of Meeting Bus
ines. Requirements.
rspec,al Correspondence

washington, Dec. 27-The list OF
cities for location of reserve banks, &C
cording to preferment now seems 10
be as follows: New York. Chicago. san
Francisco and ST. Louis. in the primary
group: Boston, Washington. Portland,
Ore and Minneapolis; Cincinnati.
Pittsburg or Philadelphia, and some
Texas city: Atlanta, Ga, or New Ut
leans. Probably only eight banks VIII
be named at first.
In making up the list the comm"see
is facing serious problem III piacins
the reserve banks in the natural lines
of trade. as will be necessary 10 Inc
success of the law. 1t is easy to name
, four. but beyond that number most OF
/ the city banks would prefer to be mem
j bers If a powerful bank and nave
branch in their own city than nave
smaller reserve bank locally, because
when they need accommodation tnes
can 90, it more readily from large
bank.
Determining Factors.
The factors that must determine To-
cation of the banks are general geo.
graphical location, population, natura,
courses of trade. transportation anu
CAPITAL. According to this classlnca-
; ton the territory west OF the ~M1ssis- :
sippi river would not have one more
bank under an eight bank system IMAM
under a four bank system. After great
geographical divisions have been de-
fermined the next question Is popula-
ton and resultant capital essential 90
make no tho required 81, eee, eeo. the
center must be fed by natural lines OF
trade and transportation. which -
found invariably to COW east except
west of the Sierra Nevada mountains.
The difficulty in the central west 10 20
find one city that can accommodate
sufficient territory that could not De
better served by one OF he Msslsslppi
cities. In the east where popuiatlon
and resultant business make the ac'
cunt la.ion Of capital easy, the cities
are SO near together that they wouio
rather deal with Chicago or New York
than with a bank in smaller city.
Denver Out Of II
minneapolis bankers. for instance. II
IL known, would rather deal with
Chicago than with q reserve bank IN
their own city for the same reason
Boston would rather deal with New
York. but Minneapolis will probably
get a bank because the far northwest
is naturally served there. Denver PROB
q bly will not get bank because INC
natural course Of trade in the territory
II serves Is toward st. Louis or Kansas
City. The reserve city must be on the
eastern boundary Of the territory II
serves because trade flows east.
It is doubtful II New Orleans VIII
get a reserve bank because the capa-
tai in that territory Is limited-iees
than in the Atlanta, Ga. territory. New
orleans serves only the cotton growing
section where the money is needed al!
at once by all patrons and that ter.
rftory would therefore be better served
by a city in another section. Washing
ron Is selected tentatively to serve the
sout, because it IL the terminus OF ne
southern railway systems and ID the
first logical point to arrest trade tnas
naturally flows to New York.
Many Don't Want In.
To summarize, then. 1t seems that
most Of the cities Of the country that
have been mentioned as reserve bank
centers will on second consideration.
! prefer TO have branch banks and be
| members of reserve banks in the prin-
cipal centers rather than have smaller
! reserve banks located locally. Th'
| banks will be placed for the interest
! not of the city where placed but OF the
| territory to be accommodated.