New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-04-04
LOCAL BANKERS
DISAPPOINTED
Too Many Cities in New
Reserve System,
They Say.
NO MOVE 70
ENJOIN ACTION
Federal Board Alone Can Mod
ify the Plan An
nOunCed.

The chief criticisms OF New York bank
ers yesterday on the selection OF Federal
/ Reserve districts by the organization COM
| mittee were the number, the fact that
| New Orleans was not named as "A reserve
centre. the cutting off of the nearby Jer-
sey and Connecticut banks from their
close relations with New York, and the
choice Of Richmond. the home Of John
\ SHELTON Williams. as the location for a
regional bank. Remembrance of the in
fluence Of Mr.. Williams in the councils OF
the administration. however. left little
doubt in the minds of the bankers why
the Virginia capital was chosen
Officials of the national banks were
guarded in their utterances regarding the
wisdom of the reserve organization com
mittees decision. but trust company ex-
ecutiyes, who for policy's sake were not
confined to stereotyped expressions. were
outspoken in their denunciation OF the
selection of the maximum number of re-
serve banks allowed under the Glass
owen bill and other features of the COM
mittees report
"In the first place. the number is en-
tirely too large" declared Otto 4. Ban
nard president of the New York Trust
Company. IL would rather have one large
boat than twelvo small ones in storm.
Four districts would have been the cor
rect number for the entire country. The
districts have been bounded without any
regard TO financial or commercial require
ments. IL is purely a political and geo.
graphical allotment.
Jersey City and Hoboken have to go to
Philadelphia, and Stamford and Green
wich, Conn, have to go to Boston, where
as New York is the natural commercial
centre for those communities. The politi-
cal nature Of the distribution is apparent
in the selection of Richmond instead Of
Baltimore or Washington and the leaving
out of New Orleans, which is the COM
mercial and financial centre Of the South
ern States
Alexander J. Hemphll. president OF the
Guaranty Trust Company. also expressed
disappointment that New Orleans was not
chosen as n reserve centre. Regarding
the choice Of Richmond, he said that it
made one of the best representations in
statistical figures and arguments, but
thought Baltimore would have been
preferable That New York was able to
obtain all its own state Mr.. Hemphill con-
sidered fortunate.
Among the heads of national banks who
allowed their views TO be quoted was
James S. Alexander president of the Ma
tional Bank Of Commerce. which cele-
brated its seventy-fifth anniversary yes
terday. lie said:
81 feel that smaller number OF Federal
Reserve banks than twelve is preferable.
l think, however, that the organization
committee Of the new system. with the
fun data before it, has done the best
possible under the circumstances. I con-
slider that the division as made is rea-
sonable'
L. A. De Lima, president Of the Bat
terry Park National Bank, defended the
organization committees selections as
very good.
Il am not so sure, however" he added,
that the elimination OF New Jersey from
the New York district will prove TO be the
wisest thing. New Jersey is across the
street, and associations would have made
the linking Of part of the state with New
York seem advisable, and also portion
Of Connecticut"
At the First National Bank il was said
that a policy Of "watchful waiting" was
/ being followed.
"The personal organizations and the
/ policies adopted by the Federal Reserve
} banks" il was added. ARE of so much
more importance than the mere geograph-
icsl lines or the location of the cities
/ themselves that they compel the earnest
attention of all financial men. The only
/ thing TO do is 10 make the best OF the sit
uation and to see that the men at the
/ head Of the institutions are broad gagged
and of large financial experience"
Connecticut and northern New Jersey
banks would have preferred 10 be in tho
New York district" commented A. Bar
ton Hepburn, chairman of the Chase Ma
tional Bank, but there seems 10 be dis
position 10 keep New DIRK back"
Reports yesterday that an attempt
would be made to enjon the reserve or
ganization committee from putting into
effect its selection Of reserve banks were
ridiculed The only body that will have
the power to change the location of the
reserve districts will be the members OF
the Federal Reserve Board. What they
! Il - c5.,trsa &c still mathematical