The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1913-12-29
SUCCESS OF LAW
SEEMS ASSURED
Many Banks Notify Officials OF
Intention to Enter New Re-
serve System.
CAREFULLY STUDY TERMS
Division of Country Into Dis
tricts Is Next Important
Step.
Special to The rimes-Dispatch. ]

Especial TO The TimeS-D lSpatch.J
! Washington. December aS.-A hum
dred or moro Of letters and kilograms
from banks throughout the country
reached the Treasury Department to-
day. They were casually inspected by
Private Secretary Cooksey. and will
BIO properly entered tomorrow. They
are voluntary declarations of inten-
tions to enter the new currency sys-
! tenn.
| While the promptness with which
national banks have communicated
with the department Is encouraging
and presagcs the complete success Of
the new system, exaggerated reports
have boon sent out from here concern
ing the action of banks throughout
the country. Instead OF the 1000
banks reported up to the cioso OF bust
ness last night, exactly 438 national
banks and thirty-two state banks and
trust companies had communicated
with the organization committee. sig
nifying their purpose to enter the new
system. This would indicate that the
majority OF the banks are studying
tho new law and acting in accord with
the conservatism that usually charac-
terizes the conduct of the ge
bank official.
Not So Many state Hanks.
Treasury officials would be better
pleased II State banks and trust COM
In some OF the States. It Is question: BILE
whether. unless State lars are
changed, institutions holding State
charters can become part OF the new
system. II was pointed out to-day In
New York, the law forbids a bank or
ganized under n State charter from
holding any stock ip a corporation. In
order TO obtain the benefits os tho new
currency system and become "A member
bank. the State banks of New York
would be required TO subscribe to the
capital stock Of the reserve banks In
the same proportion that national
banks arc required to subscribe. Legal
inquiry probably will be instituted to
ascertain IL stock IN 4 reserve bank is
stock that would come within the pro-
hibition OF the state laws
The division Of the country bv IN.
organization committee into eight. ten
or twelve Federal reserve districts will
involve knowledge ard consideration
OF the currents of commercial and
financial centres other than of mere
geography. There Is a strong dispo-
~ NOiicidci geography,
the new law expressly provides thai
In fixing the districts State lines need
not be needed. and account shall be
taken OF trade movements
Natural Barriers Influence.
1t is pointed out tho natural bar
riers of lake, river and mountains have
Influenced trade currents. as have the
artificial barriers OF State lines. Bos-
ton dominates New England CONNER
cfally and financially. except Connect
cut. which. for some reason, has at
tached itself 10 New York Chicago
dominates Northern Illinois and Iowa,
but St Louis has tho supremacy In
Southern Illinois. ST. Louis has at
tempted In vain to wrest from Kansas
CITY the control in the West St Louis.
on the other hand. absolutely domi-
mates south through the Mississippi
Valley. where 1t comes into conflict
with New Orleans
The difficulty of selection increases
with the number until there is danger
that the number of districts may be
unnecessarily multiplied as the result
of city rivalries This is the first great
question the organization committee
has before IT, Its determination will
not be reached until the return OF the
committee from the trip that is to be-
gin January ., and which will continue
throughout the next two months