The Washington herald., 1913-12-27
RESERVE Plan
HEARINGS SOON
CONTINUED FROM PAGE ONE.

determining the boundaries of the pro-
posed districts and the location of the
Federal reserve banks:
Il. Geographical convenience, which IN
wolves transportation facilities and rapid
and easy communication with all parts
of the district.
- Industrial and commercial devel-
opment and needs of each section which
involves consideration OF the general
movement of commodities and OF busi-
ness transactions within the districts and
the transfer of funds and exchanges of
credits arising therefrom.
: 80 The established custom and trend
of business, as developed by the present
system of bank reserves and checking
accounts In laying cut the districts and
establishing the headquarters for reserve
banks, every effort will be made to pro-
mote business convenience and normal
movements OF trade and commerce.
Political considerations will not be
permitted to influence the committee in
determining these important questions
Immediately after he had dictated this
statement, Secretary McAdoo went to his
home and to bed. He had a slight fever
and his general physical condition is not
of the best. 1t was stated by his private
secretary that Mr.. McAdoo probably will
remain in bed for several days.
May spend 100000.
! The committee is authorized to employ
counsel and expert aid in making the
forthcoming investigations at a limited
cost of SO, 200.
; 1t will be the general policy of the
committee in defining the reserve dis
tricts to make each district self-sup-
porting in the sense Of being able 10
supply its own seasonable needs, under
ordinary conditions.
1t is realized that the Federal reserve
board will have the power to order one
district to discount the paper OF another
district, and in this way mobilize the re-
sources of as many districts as may De
necessary to meet the demands OF a crop
movement, or other special need. But In
so far as is practicable each district
will be so defined as to be independent.
Following up this policy, the commit
tee will regard the fl: ing of boundaries
for each district as matter of much
more Importance than the designation OF
the reserve cities themselves.
The designation of the cities will be
a secondary problem to be solved after
the boundaries have been fixed, for 1t
will be comparatively easy to mobilize
the resources of each district at the re-
serve city once the territory from which
this city can draw has been determined
The ten districts which may be regarded
as the possible units of the new system
are: The New England district domi-
mated financially by Boston; the Eastern
district, dominated by New York; the
Southeastern district, including Pitts
burgh. Philadelphia, Baltimore and Wash
ington: a Southern district dominated by
Atlanta; another Southern district. with
New Orleans or Houston. Tex, as CEN
trail points: a district dominated by Chi
cagO: d district dominated by St Louis:
a district dominated by Denver: North
western district, dominated by Seattle and
Portland. Greg; a Southwestern district,
dominated by San Francisco and Los
Angeles
The opinion has been advanced that the
system could be strengthened by the
of one or even two of these
districts. thus bringing the total down to
eight. which is the minimum number pre- |
sCribed by law.