New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-10
FIVE STATES ARGUE
FOR BOSTON BANK
All New England Seems
United Except Part of
Connecticut.
HUB SYSTEM OF MAKING
COLLECTIONS PRAISED
McAdOo Tells Bankers Problem
Is an Economic One In
Broadcast Sense.

OCuoSs
Boston, Jan. s-Bankers from FIVE New
! England states and a part Of Connecticut
/ indorsed the idea Of a regional bank in
this city at the hearing here to-day be;
/ fore Secretaries McAdoo and Houston,
the committee on reserve bank organiza-
/ ton Objections to the plan came from
Hartford and New Haven, while SPRING
/ field. Pittsfeld. Rutland and Burlington
were not heard from.
The committee heard forty witnesses
and will hear more tomorrow. Tho
greater part OF the testimony appeared
TO be cumulative, majority OF the bank
ers believing that the district should in
clude all New England. j. II. O'Neill,
president OF the Federal Trust Company.
favored going outside New England and
taking in the northern part OF New York.
Maine and New Hampshire bankers
were strongly in favor OF a regional bank
here. and two from Brattleboro and
Bethel, Vt. also believed that this city
should be the financial centre. although
| they admitted that Western Vermont was
somewhat affiliated with New York. Rob
ert W. Taft, OF Providence, said that nve
out of eight banks IN his city favored
Boston, one was strong for New YORK.
while the other two were neutral.
( Nathan A Gibbs OF Norwich, Conn,
| insisted that the Boston system OF col
{ lections was far ahead Of New York. He
! said that less than 30 per cent OF the
banking business Of his city was with
| New York. but W. II. Stevens, OF Hart
| ford. said that the sentiment in South
western Connecticut was all for New
York as the regional centre. On the other
hand, A. L. Ripley, vice-president OF the
Merchants National Bank of this city.
said he knew the financial condition In
New Haven and Hartford, and he thought
he could convince bankers there OF the
desirabiity OF making Boston the centre.
Governor Walsh Speaks.
lust before the close of the afternoon
session Governor David |. Walsh spoke IN
favor of Boston. and opposed cutting on
any Western Massachusetts, cities from
the district He said that perhaps South
western Connecticut should be included
in a New York district.
In opening the hearing Secretary NC
Adoo said that while the committee rec
ognized that there was a friendly contest
between different sections for the estab-
lishment of regional banks, It was obliged
TO consider the problem an economic one
in the broadest sense, and for this rea-
son was investigating the general indus
trial conditions in the various districts.
The greater part of the forel.' non ses-
sion was occupied by o. VI. ". SpEasue'
professor of finance and banking at ha'-
ward University, who held that Boston
should have a regional institution rather
than a branch OF one in New York, be-
cause bank here would MAINTAIN
steady low discount rate. The establish
ment In the northeastern section OF the
country OF one large bank. such as was
suggested at the New York hearing,
would he said. be unworkable and con-
trary TO the spirit of the act.
He said there should be at least three
banks between Maine and Florida, and
four if the total of twelve authorized are
established in the country. He thought
Boston should have a bank for Maine,
New Hampshire, Vermont. Massachu-
sets. Rhode Island and a part OF Con-
necticut with branch institution AZ
Hartford.
one bank should be in New York. he
said. but he declined TO name the place
where the third Eastern bank should be
located.
Questioned by Secretary McAdoo re-
garding conditions in Vermont, Professor
Sprague said that in a financial way Bos-
ton had lost touch somewhat with tho
outlying sections Of New England.
New England Banks Satisfied.
The .ttitude OF the Boston Clearing
House Association was presented by
Thomas =. Beal and Alfred l.. Ripley.
both of whom favored a central bank
here Mr.. Ripley said that the banks in
New England were satisfied with the
present method OF free check collections
. | hap