The evening world., 1914-01-07
Tell McAdoo and Houston In
stitution Ought to Have
Predominating Capital.
HEARING IS FINISHED.
Financiers Fear Metropolis May
Lose Prestige Unless Their
Plan Is Adopted

The organization committee OF ue re-
eionai reserve banks provided under the
Currency law. which began Its first
hearing In the United States In the
Chamber OF Commerce OF this city on
Monday morning. heard the last of the
New York bankers give reasons a. to
the desirability Of establishing a reserve
bark here this afternoon, and Secretary
MoAdoo announced at $50 o'clock that
the New York hearing was concluded.
n was thought. until the unexpected
announcement was made, that the hear
ing would continue through tomorrow.
The committee. composed Of Secretary
Of Treasury McAdoo. and Secretary Of
Agriculture Houston. viii leave for Bos-
ton tonight to begin n hearing there on
Friday morning.
| Al the conclusion Of the hearing Sec
retsry McAdoo was asked:
viii the committee follow the sug-
Ecstion Of the New York bankers and
establish n bank Of great capital In this
city,"
II hope we are not as green as we
look" he responded. laughing.
That the bankers OF New York are
practically banded together 10 influence
the organization committee to establish
a monster central bank In New York
City which would overshadow the other
regional banks Of the United States.
became even more apparent to-day
when q dozen prominent fnanciers tes-
tified that Il In essential that New
York's bank should have a capital Of
not less than S20.000.O00 under the 3
per cent. plan.
Such a bank would require q terri.
tory embracing banks capitalized at not
less than @67b. 900 900. which approximates
One-third Of the total banking capital
Of tie United States. No other Of the
seven remaining regional reserve banks
could have even ons-half 20 great
territory, and the New York financial
centre would continue to be the dom.
insttnE influence Of America. despite
President Wilson's plan TO make each
Of the regional banks an influence to-
ward equatxing the financial districts of
the country.
bankers WANT NEW YORK TO
| VOIO pteSVI0e.
Many Of the persons gathered at the
Chamber Of Commerce believed that
much OF the stress laid upon the desira-
bility Of q great bank. In effect a CEN
trad bank. In New York was inspired
more by tho local pride of financiers.
who wish the city to retain It's position
as the financial centre VI America In
every respect. though each person who
presented his views to the commit. zee
declared that he was inspired solely by
desire to facilitate the handling of for
eign exchanges. the greater part OF
which 20 through this port.
ALL WANTED TO HAVE GREAT
BANK HERE.
Bankers appearing before the commit
tee this morning were practically unani-
nous In upholding the plan for . great
hank In New York. though Secretary
McAdoo strove 70 impress upon them
that each OF the regional banks would
|. have all the resources of the other seven
and would In that way form the strong
,, est banking power In the world.
George +. Baker jr.. Vice-Prcsident
Of the First National Bank OF New
York. declared that II was not essential
that New York's bank should far ex-
ceed those In other sections OF the
| country. though he personally favored
4 q bank with $25. 100000 capital on 4
per cent. basis. which would embrace
, q territory OF approximately SA25.000.
, 600 banking capital. or the banks OF
= New York city. Newark. Jersey Cit,
3 and a part Of Connecticut. This Is The
= plan apparently favored by secretar!
McAdoo. who bases his capitalization
on the 3 per cent. basis. which woul
I give the New York bank . capital o
! Si?,6OO,00
g Secretary Houston. who on Monda
s referred to the abnormal accumulation
4 ot easily disturbed wealth In New York
: again spoke OF It to-day when exam
I lining Joseph w. MArtindale OF tn
v Chemical National Bank. who favore
I what would be In effect u central ban
II for New York. From his remarks
was evident that at least one membe
) OF the committee will not favor tn
establishment OF a prspondsratanx IN
. stitution In this city.
SAYS COMMITTEE SHCULI
WORK FOR ENTIRE COUNTRY.
Fred ], Kent. vice-President Of III
Bankers Trust Company. disturbe
Secretary Houston when he remarke
that II was no more proper to divid
up the financial strength OF the cour
try than II was to try to make IN
Northern States raise cotton. but this
4 what the committee should be doin
= was to work for the good OF the whol
country.