Daily Kennebec journal., 1914-02-19
Return tOWashingt0n
To Issue Statement
==SeleCtiOnS to Be
Made Later.
Found Bankers Interested and
Very Optimistic.

washington, FeD. 1o.-lHe feueIdi
Reserve Bank organization commit
tee back in Washington after a five
weeks trip through the country, in a
statement issued tonight, announced
that it's selection OF federal reserve
cities and definition of reserve dis
trict would not be made until careful
consideration had been given to the
information accumulated on the trip.
The statement said the committee,
Secretaries McAdoo and Houston.
found the country prosperous and
learned that bankers and business
men are greatly interested in the new
banking system and confident OF Its
success. In a supplemental statement
Mr.. McAdoo declared he hoped the
new system would be established in
time to take care of crop moving
CONTINGENCIES next year, but that II II
were not, the treasury department
would stand ready to place its funds
again at the disposal of business men,
Statement by COMMITTEES.
The committees statement said in
part;
"The committee has held hearings in
Is cities and has heard from every
community of consequence in the sec
tionse Of the country that it has visit
ed
III every section of the country,
the committee has found practically
unanimous conviction among bank
ers and business men that the eurren-
CIV bill Will bring about most benefielai
changes in the business of the coun-
try: in fact the committee heard no
one speak who did not say that the
measure was a great step in advane.
The committee was presented every
where with overwhelming evidence OF
tn enormous economic strength OF the
country and of the rapid progress OF
every section.
1.-The fact that the nations banking
resources as a whole make enormous
advances every IL or Is years was
made evident: while this Is true OF
the country as a while, 1t was shown
that certain sections are advancing
with more rapid strides than others
and that the country is fundamentally
exceptionally strong and sound eco
nomicallv. The facts and figures sub
mitted to the committee in every part
of the country show amazing growth
and strength and disclosed eondi-
ton of financial, industrial, CONNER
sial and agricultural soundness and
prosperity that leaves no doubt as TO
the future.
THE committee was impressed by the
frank admission of bankers throughout
the country that the present banking sys-
tenn not only encourages. but actually
has created striking artificial conditions
of banking. With practical unanimity,
the opinion was expressed that the new
measure will restore normal conditions
with great resulting benefits, that the
present system not only furnishes no
protection in times of real stringency. but
also even in times of great prosperity.
especially when they are bounteous CROPS.
makes II impossible to meet the condi-
tions. and that there has been presented
the singular contradiction of having
bankers thrown into fear of panic by the
emergence of wealth. The bankers were
unanimous of the opinion that the estab
lishment of this reserve system will no
longer make our prosperity peril and
that 1t will relieve them of apprehension
ard distress in those circumstances and
give confidence and stability TO business
generally.
The committee has finished its survey
in the field. 1t has yet to make examina-
tion of important documents and data,
and cannot render any decision until 1t
has thoroughly examined this material.
1t can come to no conclusion about any
part of the country until it has formed
its conclusions for every part of the
country, since the districts are necessa-
rily inter-related and inter-dependent. 1t
cannot, of course. decide the location of
headquarters banks until the districts are
defined.
Already virtually all the capital repre-
in. A number of state banks have applied
for national charters and many have ap-
piled for membership in the federal re-
serve system. In every state in the union
which the committee has visited It has
heard expressions from governor. banking
commissioners and others to the effect
that where there is any legal disability
against subscription by state banks that
disability would be removed, and the fur
ther expression that state banks which
were eligible would very generally seek
TO enter the system
TOLLS EXEMPTION BATTLE