Santa Fe new Mexican. [volume] (Santa Fe, N.M.) 1898-1951, 1913-12-24
RESERVE CITIES
NOW Being
SOUGHT
SECRETARIES McADOO and HOUSTON
ACTING As ORGANIZATION CON-
M|TTEE, START TO WORK TO
NAME CITIES where RESERVE
BANKS WILL pc LOCATED.
TENTATIVE LISTS ARE
NOW Being PREPARED

washington, u. T., Dec. 24.-Wlth
all the power of a law fresh from the
! pen of President Wilson behind them
Secretary McAdoo and Secretary
! Houston today began working out de
tails Of the nations new financial sys
| TEN.
! The two cabinet members, acting as
an organization committee will deter
mine the i'~ aort;.nt preliminary moves
to the actual installation of the ma
chinery that is to operate the fedora
reserve system.
| Although the law provides that the
two secretaries shall join with the
comptroller of the currency in the
preliminary work OF reorganization,
the Office of comptroller is vacant and
ii has been decided that the two secre-
taries constituting a majority of the
committee, may go ahead.
Later the members OF the federal
reserve board of seven will be named
/! by President Wilson. The secretary
OF the treasury and the new comptrol.
Ter will be members OF that body and
the other five will be chosen from pri.
vate life. If President Wilson finally
has made his selection for these five
places, it is not known in Washington.
The first step to be taken by the
secretaries will be the selection OF
cities where federal reserve banks,
the backbone of the system are to be
located. The law provides for not less
than eight and not more than twelve
The organization committee is empoW'
cred to employ counsel and summon
witnesses and papers and to 90 deep
ly into the location Of the reserve res
ervoirs. Its decision is not subject to
review by the federal reserve board.
It is possible that before the ques-
ton of cities is decided, the organiZa-
tion committee NJ visit cities sug'
gested and base its report on informa'
tion gained at first hand.
Cities that can hardly be kept Off
a tentative list would include New
York Chicago, St. Louis, San Fran
cisco and New Orleans, with Denver,
Atlanta and Seattle or Portland, Ore
son, near the top.
Philadelphia. Baltimore, Washing
ton, Boston and several others are
asking for designation.
Secretary McAdoo said he expected
TO actually begin formal work OF select
ing federal reserve cities tomorrow.
I've expect to consider the problem
in the light of what will most beneht
the entire country, and local interests
will not be regarded he said. I'VE
will probably outline the districts and
then choose the cities in each district
where the federal reserve bank Will be
located"
Mr.. McAdoo did not know, he SAID,
whether there would be eight or
twelve districts.
Applications for membership came
today from banks in Seattle, Denver
Portland Oregon, San Francisco, KOS
well, New Mexico, Peoria, ILL.,, Pomo'
ma, Calf, ST. Joseph, Mo-: Palouse
Washington, Muskogee, Okla, Ard
more. Okla, and JeferSOn Clty' ho'
among other cities.
Applications in Already.
New York, N. Y, Dec. 24.-Three OF
the 36 national banks in New YORK
have already signified their intention
to take out federal charters under the
new currency law. They are the han
over National, the Gotham National
and the National Reserve bank.
Practically all other national instf
tutions of the city and state, 1t is ex-
pected, will take similar action soon;
but some are holding back pending
advice from counsel. Others deem
definite action unwise unless ratified
by their stockholders.