The Washington herald., 1913-12-25
WORK IS STARTED
ON BANKING
McAdoo and Houston Take
Up Details Of New Cur
rency System.
WILLIAMS TO GET PLACE
Believed Assistant Secretary Will Be
Named Comptroller and Third
Member Of Board.

The administration does not intend &c
Lose a single moment in beginning the
work of organizing for the new currency
svstsm while President Wilson was
hurrying southwark yesterday ior ma
holiday at Pass Christian. secretary NC
Adoo and Secretary of Agriculture nous
ton. constituting the majority OF lhe or
gapization committee under the new law
took up their task giving cohsiUei"O'
attention to details.
Of the Currency shall be a member OF the
organization committee. This ONCE now
ever has been vacant several months
Deputy Comptroller Thomas r. Kane ha'
been acting, but the new currency Ia"
makes no provision for the deputy 10 per
form the duties of the comptroller IN this
matter It has been generally understood
that John shelton Williams, Assistant
Secretary OF the Treasury, was TO o'
given this office, which with Its increase
in compensation to $1,000 year. anc
its added duties and responsibilities
makes it one Of the most desirable Wltnir
tho gift OF the President.
The original program contemplated tht
sending of Mr.. Williams name to tht
Senate Tuesday in the hope that he might
be confirmed promptly. Democratic lead
er. consulted with Republicans, however
and found that IL Mr.. Williams Is nomi
mated as Comptroller. the Republican:
will insist upon taking their time and
in looking very carefully into the quail
fications and fitness of the nominee be-
for, they will permit his confirmation.
Wilson to Have Free Hand.
President Wilson is to have free hand
in the selection of members Of the Fed
ri w will h2Va
preme control of the new currency sys
TEN. Anticipating that there might bt
enormous pressure brought to bear fol
support for this important position, bott
Democratic and Republican Senators have
entered into a gentlemRn's agreement thai
they will not make any recommendation
at all, no matter who tho candidates may
be. The whole responsibility will b'
passed along to the President.
The first important duty OF the organ
ization committee is to designate thu
Federal reserve districts and the number
into which II will be best to divide th'
country. Then the cities in which thu
reserve bank for that district shall bt
located. will be selected. The law con
fines the nuI Der OF reserve banks to no
less than eight. nor more than twelve
Secretary McAdoo said that he expected
to begin :he task formally OF selectint
the Federal reserve cities today. H'
emphasized the fact that these designa
tions will be made with utter disregard
for local interests and solely with view
to the general good and inability to cart
for the business OF the country.
Reserve hank for Capital.
The number of reserve banks to be des
ignated has not been formally consid
cred, although undoubtedly since th'
agreement by the conference on the slid
ing scale, the Secretary has given th'
matter much thought. II the system
begins with eight banks such cities Al
Boston. New York. New Orleans, Chicago
St Louis, Denver. and San Francisco can
not be overlooked. 1t seems assured tha
in either event Washington, because O.
its importance as the seat OF government
will be given one OF these reserve banks
Philadelphia, although a large city. i
adjacent to New York. and probabi!
would be within that reserve district. l
! twelve banks are organized at the be
ginning. such cities as Atlanta, Seattle
or Portland. and Philadelphia, will b.
considered.
The total number or reserve banks
| however. does not matter so much. be
cause Of the branches that arc to be es
tabIished, and these are the institution
that will be expected to take care Of tn,
purely local conditions.
Since the passage of the currency bill
practically as the administration wished
applications from banks in all section
of the country have been received at tn
Treasury Department, to enter the new
system