The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-04-28
RICHMOND NAMED
AS RESERVE CITY
New Recognition of Importance
as Banking Centre Is
Awarded.
WILL KEEP MONEY IN SOUTH
Reserve City System to Be Aban-
doned When New Law Is
Three Years Old.
WILL KEEP MONEY IN SOUTH

a; the request OF the local national
banks, Tho Comptroller of the Cur
rency Yesterday issued certificate
designating Richmond as Il reserve city
under the Federal bankim. act APP
proved March 3. 1887 and amended in
1903. ~ virtue of the designation
Richmond national banks enter At once
into the privileges and become subject
TO the requirements of the national
banks In the fort%-sevcn other reserve
cities Of the country.
The DESIGNATION of Richmond as Il
reserve city followed conferences held
last week between a delegation Of local
bankers and Comptroller john SHELTON
Williams. The plan was discussed a
a meeting held in WaShinptou last Fri
day with John Kerr Rranch, -. j.
Sands. Richmond II. Smith, Julien II.
Hill. W. Meade Addison, and George
i. Sc2y composing the Richmond dele
cation. The certificate raising Rich
mond to reserve city rank WAS signed
aud delivered yesterday by the Conn
troller after conference with Mr.. Hin.
In banking circles the designation of
Richmond as reserve city Mas re
Earded yesterday as new asset of
tho first Importance. Immediate bcnc-
tits are expected from the fact that out
of-town banks VIII NOW be enabled
to carry reserve accounts with ma
tional banks In this ciiy. Up 10 the
u'Sle mutton o. richmond, baltimore
and Washington We're the only re-
serve tiles available TO this section.
VIII Keep Money in south.
Bankers said yesterday that large
sums of money now sent by Southern
| banks To Northern reserve cities VIII
be diverted to banks in Richmond.
] Many banks in Virginia and THE Caro-
, ilnas that would naturally prefer to
carry their reserve accounts in Rich
/ inond, II was pointed out, have hereto
tnre been compelled TO maintain their
balances in cities farther north he
I cause Richmond was not n reserve CITY
The fact that Richmond viii shortly
be the seat OF a Federal reserve bani.
VIII stimulate the Capitalization OF
independent reserve accounts in Rich
taond banks. Banks in the Fifth Re
serve District. it WAS pointed out ves-
tcrday, would and il profitable To keen
permanent reserve balances in Rich
'nond since such balances. while draw
ing the usual interest, could be casfl,
transferred To their accounts with the
Federal reserve bank when the neccs-
Sity arose. The member banks would
lhus ," enabled 10 reduce materially
the size Of the balance they would have
10 carry with the Federal reserve bank
which VIII pay no interest
80 Connection With RcgionnI Bank
Tho designation OF Richmond as n
reserve city has no connection with
its recent selection by tho organiza-
ton committee as the seat OF one of
the twelve Federal reserve banks. I'm
der the present national banking syS-
| tenn there are three central reserve
cities-Ncw York. 81. Louis ana CHI
cago. and, up TO yesterday. forty seven
| reserve cities.
a ccrtifcate designating Atlanta n
| reserve city was issued yesterday at
the same time that Richmond was ele-
! waited TO that rank. OF the twelve Fed
4 eral reserve cities. Richmond and At
4 lanta, were the only two that were
| not ut the time Of their selection al
/ ready reserve cities. The designation
! Of I.ichnond and Atlanta raises to
/ total number OF reserve cities in the
! country to forty-nine.
| Under the terms OF the Federal re-
] serve act the whole system OF central
/ reserve and reserve cities viii be abol-
\ ishcd three years after the twelve Fed
I cral reserve banks are organized. 1t
I is the purpose of the government to
I merge all the reserve functions in the
system provided for in the recent act.
! ii was felt by local bankers that Rich
| mond's designation as n reserve city
J even though only for three years
would contribute materially 10 its inn
/ portance a. :: centre of finance
| In accordance With the provisions of
the national banking laws that affect
| reserve cities tho eight national banks
of Richmond will hold in reserve %
Der cent of their net dcpcsits--12 -
per cent in cash here and the remain
1 ing u 1-2 per cent in any one or al!
Of the three central reserve cities.
Pesidcs Richmond and Atlanta, which
were raised to that rank Yesterday the
reserve cities Of the United States are:
Boston. Albany, Brooklyn, Philadel-
phia. Pittsburgh, Baltimore. Washing
ton. Savannah, New Orleans, Dallas,
Fort Worth. Galveston. Houston, San
Antonio, Waco. Louisville. Cincinnati,
X Cleveland. Columbus, Indianapolis, De-
iroit. Milwaukee. Minneapolis, st. Paul
Cedar Rapids, Des Moines. Dubuque
Sioux City, Kansas City, No.; st. Jo-
seph. Lincoln, Omaha, South Omaha
Kansas City, Kan: Topeka, Wichita
Denver. Pueblo. Muskogcc. Oklahoma
city, Seattle, Spokane, Tacoma, Port
land, Los Angeles, San Francisco and
al1c l,liL