The evening world., 1913-12-24
NEWCURRENCyLAW
WORK IS TAKEN
UPBY NJ ADOO
With Secretary Houston He
Begins Selection of the
Regional Bank Cities.
NEW YORK ON THE LIST.
Other Preliminary Moves In
Sailing Federal Reserve
System Also Considered.
NEW YORK ON THE LIST.

WARRINGTON. Dec. A.-with ali the
D0wer Of . law fresh from the pen Of
Vsssidsnt Wilson behind them. secre-
nRy McAdoo and Secretary Houston to-
~ began working out details OF the
aetion's new financial system. The two
Cabinet members. acting az an organ
isation committee. will determine the
important preliminary moves to the
sctual installation Of the machinery
that 10 70 operate the Federal reserve
system
although the law provides that the
Swo secretaries shall Join With the
Comptrousr Of the Currency in the pre-
uminary work Of reorganization, the
once Of Comptroller 10 vacant. and II
has been decided that the two secre-
eariss. constituting . majority Of the
committee. may 30 ahead.
Later the members OF the Federal ~
serve board Of seven will be named by
President Wilson. The Secretary Of the
Treasury and the new Comptroller will
b members Of that body. and the other
hvs will be chosen from private life. II
selection for those Ave places II - not
Known In Washington.
BANKS ALL OVER COUNTRY ARE
SENDING APPLICATIONS.
The frst step to be taken by the Sec
rstaries will be the selection Of cities
whore Federal reserve banks. the back
bone Of the system, are to be located.
The law provides for not less than eight
and not more than twelve. The organ
isation committee 10 empowered to
employ counsel and summon witnesses
and papers. to go deeply IN the location
OF the reserve reservoirs. Its decision Is
not subject to review except by the
Federal Reserve Board.
IT 10 possible that before the ques-
ton OF cities Is decided the organiza .
tion committee will visit cities aux-
sested and base it's report on informa-
ton gained at first hand.
Cities that can hardly be kept of q
sentative list would include New York
Chicago. st. Louis, San Francisco and
New Orleans. with Denver. Atlanta
and Seattle or Portland. Ore. near the
top. . Philadelphia. Baltimore. Wash.
ington. Boston and several others are
asking for designation
The organization committee 10 en-
powered to prescribe regulations for
membership In tho system. Applica-
tons from all over the United states
have been flowing into the Treasury
for several days. An unusual flood,
the nrst duties OF the committee will
% a. 90 n 4,
acceptance.
National banks have sixty days ir
~hich to hle applications. but undel
the law can remain in existence FOL
ono year without Joining the system.
\oUTLINE DISTRICTS FIRST
THEN CHOOSE CITIES.
Secretary McAdoo said he expected 4
a6tually begin formal work on select
hg Federal Reserve cities tomorrow.
I'VE expect to consider the problem
!, the light Of what will most bench
De entire country and local interest
will no. be regarded" said he. "W
VII probably outline tho districts frs
and then choose the cities in each dis
tract where tho Federal Reserve Banl
wiz b located"
M. McAdoo did not know. he said
whether there would DO eight or twelv
districts. That point he regarded as on
Of the most perplex.ng before the or
ganisation committee. He espresso
eress satisfaction with the way Il
wosich the banks have responded to tn
~.
'sTuss law has been accepted" he sale
IN O thoroughly patriotic manner
have nSver had any doubt and hav
mono now. that most Of the nations
ranks of the country will enter the ne,