The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1913-12-25
CITIES SEEK NEW
REGIONAL BANKS
FORICURR[NCY PLAN
Many Applications Be-
fore Organization
Committees.
BANKS IN A RUSH
From all Over Country Re-
quests for Membership
Are Pouriog In.

Washington, ID. C.-With all the
power of the law fresh from the pen
Iof the president behind them, secre-
taries McAdoo and Houston today
began working out the details of the
nations new financial system.
These two cabinet members, act
ing as an organization committee.
will determine the important prelim-
mary moves for the actual installa-
tion OF the machinery that will op-
crate the federal reserve system. The
first step to be taken by secretaries
is the selection of the cities where
the federal reserve banks. the back
bone of the system, are to be located.
The law provides for at least eight
and not more than twelve. 1t is
possible that before the question of
the cities is decided. the organization
committee will visit the cities sug-
gested and base its report on the in
formation gained at first hand
Many Cities Want Banks.
The cities that scarcely can be
kept off a tentative list for the new
banks include New York, Chicago,
st. Louis, San Francisco and New
Orleans, with Denver. Atlanta and
Seattle or Portland, Oregon near the
top Philadelphia, Baltimore, Wash
ington, Boston and several others
are asking for the designation
The organization committee is en-
powered to prescribe regulations for
mbership in the system. Applica-
lions from all parts of the country
have been flowing into the treasury
department for several days and there
is an unusual number today. The
national banks have sixty days in
which TO make application.
Begin Selections Tomorrow.
Secretary McAdoo said he expected
actually to begin the formal work of
selecting the federal reserve cities to-
morrow.
we expect TO consider the pro-
blem in the light OF what would most
benefit the entire country, and local
interests will not be regarded" he
said. we will probably outline the
districts first and then choose the
cities in each district where the fed
erai reserve bank will be located"
McAdoo said he did not know
whether there would be eight or
twelve districts. That point he re-
garded as one of the most perpleXing
before the organization committee.
Wilson Signs the Bill.
Washington, ID. President Will
son signed the Glass-O Owen currency
bill at G:D1 last night in the presence
oi his cabinet, the congressional com
mittees of banking and currency and
the democratic leaders in congress
generally.
With IL few strokes of the pen the
president converted into a law the
measure to be known as the Federal
Reserve act, reorganizing the ma
tion's banking and currency system
and furnishing, in the words OF the
president, machinery for free and
elastic uncontrolled credits, put at
the disposal of merchants and manu-
|facturers for the first time in so
|years.' "
Applause ran through the cere-
mony as the president, after affiXing
his signature, delivered speech
characterizing the desire Of the ad-
ministration to take common coun-
sci with the businessmen and the
latter's efforts to meet the govern
ment's advance as a constitution
of peace"
The event closed a day of rejoic-
ing as congress had recessed for two
weeks, the first time since convening
| in April.
! Democratic leaders were jubilant
having completed two large pieces
of legislation, the tariff and cur
rency reform, in nine months.
AS Wilson took up the pen, he eX-
pressed his admiration for the men
who made it possible for me to
sign this bill, as he put it.
Il think we owe a special admir-
alton to the patience and leadership
skill and force of the chairmen CT
these two committees; and behind
them stood the committees them
selves, exercising that degree of
security and careful thought which
undoubtedly redounded to the bene-
| fit of the bill itself