The Sentinel=record., 1913-12-28
BANK ORGANIZATION COMMITTEE INVITES APPLICATIONS FOR
 RESERVE BANKS.
MUST PRESENT THEIR CLAIMS
Commercial Organizations and Clear ing House Associations Requested to Present Applications and Furnish Necessary Data.

1 Washington, Dec. 27-The federal
 reserve bank organization committee
 tonight supplemented its plan for To-
 eating federal reserve cities with an official announcement pointing the
 way for all cities to present their
 claims for banks. Before he commit | tee, consisting Of Secretary of the 1 Treasury McAdoo and Secretary of
 Agriculture Houston, starts upon it's
 tour of the country, it will advise
 clearing house associations and
 boards of trade in cities that are in
 -he field for a reserve bank, when and
 where they can be heard. The com
 mittee will suggest that representa-
 tives of such organizations be sup. piled with all the facts each city
 wishes to produce in it's favor.
 Only fourteen large cities in addi-
 ton to Washington will be visited,
 but it was the understanding tonight 1 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 out, it is prob able that the claims of Baltimore. Philadelphia and Washington will be
 heard here. Pittsburg will have an opportunity either in Cleveland or Cincinnati Fort Worth, Tex, which Is in the field will be allowed to argue in Houston, and S.. Paul and Mime apolis in Chicago. Information the committee procures from these cities will be useful in determining the boundaries of the reserve districts.
 It was said tonight that either cab inet officer on the committee had de- termined upon the number of reserve districts and cities. The trip to be taken is almost as much for this pur- pose as for actually locating the cit ies and defining the districts. Treas ury officials today praised he deci- sion of the committee to work out the district limits and cities by pub lie hearings. They said that already scores of telegrams had been received asking for a hearing in Washington, on the supposition that the work was to be done here By holding hearings in many cities the committee hopes to avoid trouble and save time
 The committee took it's first for nal step today when it made official announcement of the procedure to be followed by banks which wish to make legal application for member ship in the new system. In accord ance with this announcement every bank desiring membership shall within sixty days through it's board of directors pass a resolution certify ing it's desire to enter the system. The resolution is to be signed by the cashier of the bank and forwarded to the committee. It provides for the full acceptance of the terms of the law and expresses the intention of the board to subscribe on behalf of the bank for stock in the proper fed eral reserve bank.
 The filing of this form will he the first step of a bank toward member ship It will have nothing further to do toward coming into the system un- tils the organization committee an- nounees the geographical limits of it's district and the city where it's reserve bank is to be located. Within thirty days after such announcement a bank must take the second step that will bind it to the federal system It must begin to put up it's money for stock in the district federal reserve bank Each bank entering must sub scribe to stock in the federal bank equal to per cent of it's paid up cap ital and surplus, but not all of this sum is to be paid at once.
 Informal applications from banks continued to reach the treasury to- day, but officials were surprised when they received telegrams from several individuals who wished to subscribe ! for stock in reserve banks. One ap plicant wanted to get S20,000 worth of stock, another wanted $l0.O0O
 worth and another s5000. The law provides in certain contingencies
 that individuals may subscribe, but | If the banks continue to come in there will be little stock left when their time limit has expired.
 Secretary McAdoo's illness was diagnosed today as grippe, but Sur