The Washington times., 1914-04-06

| actually handle a larger business than
the head office. The whole is neCes-
1 sarily larger than any of its parts.
Nine Subtreasury Offices.
Aproros of the consideration of the
regional bank locations, an official to-
day observed that the communities that
efel aggrieved would ultimately discover
that the locations of these main insti-
tutions are going to be less important
than now seems to be imagined. There
are, for example, nine sublreaSuries in
the country. all subordinate TO the
! Treasury in Washington Yet most of
| these. and perhaps all of them trans
act more actual business for the Gov
! self.
How many people could name, off.
! hand. the nine subtreasUry cities" IN
quired an official. They are the regional
business offices of the treasury. under
the independent treasury system, just
as the regional banks are expected to
be. in a lareg way under the new law.
Yet, they aer of very little significance
of importance in the cities where they
arc located.
Even among bankers. probably few
could tell where the subtreasuriaU are.
The cities possessing them-and none
has been added to the list in many
years-are Boston, New York, Philadei-
phia. Baltimore, New Orleans. St Louis.
Chicago, Cincinnati, ard San Fran
CISCO
Whether these subtreasuries will re-
main where they are now, is ques-
ton that naturally is being asl.sd with
much interest by the cities that have
| them. but that have not been assigned
| regional banks.
viii the subtreasuTy at Baltimore
be removed to Richmond? VIII the
one at New Orleans be moved TO At
lanta? Will the one at Cincinnati be
transferred to Cleveland. which gets
Che regional bank for Cincinnati's dis
! trict?'
Problem of Business.
These questions have not been an
; swered by the organization committee
as yet, simply because It has not got
along to determining that question. It
| is very well understood that the pur-
| pose Is ultimately to transfer 10 the
| regional banks the greater part of the
business now done by the subtroasu-
| ries. in the receiving end disbursement
Of government funds But the fate of
| the subtreasuries is yet TO he decided
| The problem Of giving business
enough to the regional and branch
banks to enable them to earn enough
| in ordinary times to pay their way
| has been recognized from the be-
ginning as a very distinct one. The
| Federal Reserve Board may order
funds thus transferred from one re-
gional bank to another: and on funds
! thus transferred the Federal board
| may fix the discount rate.
But in ordinary times. where there
| is no necessity for extensive shifts
of this kind, and when the volume
of circulation will provide small re-
I turns to the regional banks on their
discounts. the revenues to these in
stitutions will not likely be large;
| certainly not for considerable time
of come. Therefore. comes the de-
STABILITY of giving the regional and
branch banks something to do to en-
| able them to earn their bread" This
aspect of the problem adds interest
| to the suggestion that they may be
given the function of handling clear
ances, which would be one way to
| enable them to earn something.
Protests Continue.
Protests against the locations OF
the regional banks continued to come
in today. and II is more apparent tha n
! ever that there will be some animated
| discussion of the organization COM
| mittee's work in and out of Congress.
| The committee declines to be worried.
feeling confident that its full justi-
| fcation will be found in the compila-
! tion of banking statistics which was
| Washington Times OF Sunday. At
| the Offices of both Secretary Nc
| Adoo and Comptroller Williams to-
| day The Times analysis and eXposi-
ton of these data was highly com
! plimented.
The deeps that have been stirred by
| the disappointments of various cities
are illustrated by telegram received
| by Secretary McAdoo today from New
Orleans. After reading it. the Secre-
| TO- nhcr lnr mont
was unnecessary; the message carried
its own story. Its text:
Unanimously Adopted.
William q. McAdoo,
Chairman, Reserve Bank Organi-
Zation Committee. Washington, u. c.
At q meeting of the citizens OF
New Orleans held tonight, the fol-
lowing resolutions were unanimously
adopted by a rising vote, and /. as
chairman of the meeting. was in
structed to wire them to you:
Now. therefore, be it resolved
that the. confidence of this com
rnunity in the entire proposed
banking system as d system found
ed on an earnest effort TO meet the
needs OF the whole people. without
regard TO geographical location or
political affiliatiOn, and admins
tered by impartial heads without
bias or partisanship, is rocked ana
rent TO its very foundation stone:
that this community sees in a
money power thus utilized in ITS
inception to pay political debts and
forge political fetters menace 10
this republic far more overwhelming
than that which threatened the
United States of Andrew Jackson.
and caused the dissolution of the
Bank o. tho United States tEat this
community forsees the up-bJild-
ing in this country Of ours of
plutocracy having at it's command
the vast financial resources of tho
| government. using those resources
| TO increase il power and TO rnain-
tain its sway, aplutocracY deaf to
reason. blind 10 justice, scOruful or
rights; that this citizenship now
rises to crush In It's infancy such
| al octopus. and demands without
delay a congressional invcstiga ton
| oc the methods used and OF tho
| influences brought to hear upon the
| reserve bank organization commit
| tee. and relocation Of the re-
serve districts and cities in occOrd-
ancc with the just requirements
! of the business OF the country and
the provisions of the currency act;
| that this community dc!nauls in no
| uncertain terms that the reserve
! bank organization committee ce
| taught once ani for all time that
81 s# G ~