Missouri Valley times. [volume] (Missouri Valley, Iowa) 1874-1931, 1914-01-08

POOR IMPRESSION
MADE BY BANKERS
McAdoo and Houston Are Not
Favorable to Locating Over
sI1adowinq Bank in
New York.

New York, Jan. S.-Despitc the APP
parent opposition of Secretary McAdoo
of the treasury department. and Secre-
tary Houston of the department of ag-
riculture to the pro. of New York
bankers for the esto biishment here OF
a regional reserve bank of over
shadowing size the witnesses who APP
peared ct today's hearing of the fed
eral reserve organization committee in-
sisted almost unanit 4,usly that such j
bank WAS HeceSSarF.
From the long list of New York's
leading financiers who have appeared
before the committee, one conspicuous
name was missing. III WAS that OF
George f. Baker, who was perhaps the
closest associates of the elder j T.
Morgan and who is a director OF more
, important corporations than any
other man in the country Mr..
Bakers public appearances have
been rare. and instead OF COM
| ing before the committee in per-
son, he was represented today by his
son, George f. Baker. jr., vice presi-
| dent OF the First National bank. of
which his father is the head.
| Mr. Baker sided empiaticaliy with
the majority OF his predecessors before
| the committee.
Mr.. Bakers Views.
| u, :,
should be as large as it could be
made, to comply with the requirements
| OF making eight districts don't
| know that my suggestion meets with
general favor But IT would be better
to have the New York district include
New England and go far enough west
\ to include Pittsburgh. MY theory is
that this is the commercial! center OF
\ the country and whenever there has
been large exchanges it has generally
deNolved cn New York to develop
\ them
McAdoo, Shat it would be better te
have eight strong banks than on,
strong bank and seven weak onese"
II wouldn't cal the others weak.
said Mr.. Rakcr, but ! would not hav,
the New York district extended TO th'
detrimcnt OF the Others
The witness submitted list of eigh
districts which he said he would favor
if it We're decided to divide the north
east into two or more districts. III
such an event he would have the New
York district restricted to New York
Connecticut and northern New Jersey
Charles Sabin, vice president of tn,
Guarantee Trust company of New Yorl
said this city should have a regiona
bank sufficiently large to care for th
;busincss which naturally comes in thi
direction. He believed that to creat
such a bank this district should Include
New York. New England and possibl.
New jersey
Morgan on Stand.
ut seems to me- he said that tn,
capital will not be sufficient to handl.
; the business OF this section unless thi:
territory is incuded.
III q bank were established in T30s
ton. what territory would you assign
) to IT. asked Secretary Houston.
: Mr. Sabin would not consider th
: |division of territory between New Yorl
and Boston. but adhered rigidly to hi
, original plan
IF YOU haze bank in Boston h.
said. II would put q branch in New
York
j. p Morgan surprised his hearer
/ by saving he did not consider it inn
located in New York 1t might ~
. well be in Boston, he believed. Ih
important thin" he said was to hav,
i the bank which served the New Ynrl
i district nf sufficient size to comman'
the respect of HE business men an,
bankers OF AL countries. As to th
Iamount of capital in this bank, Mhirl
, Ii9any witnesses had said should b
li,rger than that of aiis member banN
q Mr. Morgan attached comparatiVel
. ilitte importance TO that phase Of til
matter
: 1T isn't so much the capital" ii
said as the assets the banls repre-
sents"
= Secretary McAdoo HANDED to NJ
Morgan a large sheet Of paper on whie
was an outline mar of the country an
lasked him 10 indicate on it nj q late
ltinie the points at which he though
resional banks should be placed an
the district they could cover NJ
Morgan said he fenred he would n,
have the time To 90 into the ll1atte
cxhaustively. He, neverthclcss. foldc
up the map and walked off with j
promising to do his hest.