The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-04-04
Selection Not Due to
Presence of Williams
on Board.
CITIES MAY FIGHT
COMMITTEE PLAN
Several, Disappointed in Not Be
ing Named for Federal Bank,
Expected to Organize in
Struggle for Redistricting
of Country-Designations
Criticized in Congress.

Washington, April 3.-Thcre was
avery indication here tonight that the
announcement OF the reserve districts
and cities by the reserve bank organi
patiou committee had given tho signal
Tor determined Htruggle upon the
part OF several clties, which were dis
appointed, to reverse the committee on
ehe deciaion, and bring about re-
districting OF tho country, or at least
. change in the reserve cities named
Under tho Irw, tho decision OF tho
organization committee Is not subject
20 review. except by the Federal Re-
serve Board. This board probably will
not be named b. President Wilson for
Several weeks, but, In tho meantime.
st Is believed that those disappointed
with the committees announcement
will bend every effort toward paving
the way for changes.
II WAS pointed out tonight that both
Secretary Of the Treasury McAdoo and
Comptroller Of tho Currency williams,
OF the organization committee, arc cX-
oliicio members OF tho reserve board.
and hardly could 10 counted upon to
reverse themselves. Tho Precedent has
given no intimatton az 10 who the
other five members Will be
Criticized In Congress.
m Congress to-day, and there were re-
ports OF keen disappointment from
several c'ties which were in the race
Tor reserve banks. and which failed TO
secure them. Three members of the
Senate Banking and Currency Commit
tee, two Republicans and n Democrat,
found fault with tho plan. Senator
weeks. of Massachusetts. who opposed
tho law vigorously for many months,
but who finally voted for Il, pointed
out that one bank was located IN
Georgia, the home State OF Mr.. Nc
Adoo; one in Virginia, the home State
or MT. Wiilia'ns, and two In Missouri
the home state OF Secretary Houston.
the third member of tho cornrnittec
lie questioned the proprIety OF these
selections. and made other criticisms or
the committees action
Senator Burton disapproved the In
clusion OF Pittsburgh in the district
ot which Cleveland IS the reserve
centre. and declared that 1t would be
Impossible TO make trnde turn west
ward from Pittsburgh TO that CITY
Senator Hitchcock pointed to the fact
chat Omaha had heen included in the
Kansas City district instead. OF the
Chicago district and said trade did
not flow that way.
Richmoud tnnnimons Choice.
Defenders of the committee snid to-
ntGht TINT there Uss Justification
for the charge that Il WINS Influenced
by any consideration other than the
trend of trnde and the bunking
advantages I'm cities chosen. In re-
TerrinE to the choice of Nichmond, II
was snid thnt. although comment vas
expected, becaune of the fnct the city
Is the home OF Mr.. Williams, the COM
snittee was unanimous, and Richmond
would have been named over Baltimore
and Warrington IL he had not been n
member.
60 far, no definite plans for any fight
against the committee have been nc
counted here, and there is practically
no way for such q fight TO he under
taken. except through tho reserve
board. 1t was suggested to-nighe.
however. that members OF Congress
might undertake to provide banks for
their districts by having tho number
OF authorized reserve cities increased.
Although various steps still must lie
taken before the new Federal reserve
banking system begins operation.
Treasury officials expected to day that
the twelve regional reserve banks
would open for business within three
months, and that the revolutionary
change In the nations financial ma
chinerv would be established within
that time. With the designation of the
reserve centres, the organization COM
mittee took the first decisive step to-
aiu pcIleCtloIl Oh Inc system.
Banks to lie Notified.
The first work to-day was official
certification to Comptroller of the Cur
rency Williams OF the selections, and
Mr. Williams began notifying 7.54S ma
tional and State banks which have ap-
piled for membership. 1t was the gen
eral expectation that member banks
In the twelve districts would imme-
diately begin preparing for tho estub-
lishment OF their reserve banks. Every
bank must begin payment of a sub
scription or per cent OF its capital
and surplus TO the stock of it's reserve
bank within thirty days after notifica-
ton.
In accordance with the law, as soon
rs member banks in n district have
subscribed the minimum amount OF
stock for reserve bank-S4, 900 600
five banks will be designated to exc
cute tho formal certificate Of organ
ization. After its receipt here, the re-
serve bank Will become n corporation
and entitled to begin business.
The next step will be the selection
of the boards OF directors for the r.-
serve banks.
There will be nine directors for eacn
bank three to be appointed by the
Federal Reserve Board and six select
ca ny member banks in each district.
Soon Launch New System.
Although the Federal Reserve Board
IS TO choose three directors I'm each
reserve bank, and appoint n reserve
agent for each bank. who is to act rs
It's rnouthpiece. tho organization com
mittee may perfect tho organization OF
reserve bank for all practical pur-
poses before tho reserve board Is ap-
pointed. and 1t is believed that the
committee will exercise this authority
Continued On Second Pase)