The Washington times., 1914-01-08
A REGIONAL BANK HERE.
problem

On another page The Times publishes today fore
cast of the probable conclusions of the Organization
Committee in charge of preliminary administration
of the Federal system. 1t is stated, what
is regarded as the best authority available at this
time, that Washington is altogether likely to have
one of the regional banks and that this decision will
De reached because of the wish to maintain sort
of model institution here, in immediate touch with
the Treasury Department
1t has been apparent to The Times from the be-
ginping that of the regional banks nghtfuly
ought have its seat at either Washington Balt
more. Baltimore naturally claims on the ground Of
its larger financial and commercial interests. Against
this is the fact that Washington is the governmental
headquarters, and that the Federal Reserve Board,
its headquarters here would inevitably want to have
one of the regional banks under its immediate OBJ
servation.
There has been, throughout the discussion of the
currency legislation, some criticism on the ground
that the Federal Reserve Board, in charge of the
whole system, going to be isolated from the sys-
TEN itself; that the board would be here in Wash
ington trying to ru lot of units scattered through
out the country, under plan that looks to divorcing
the banking business more than from the Treas
ury There has been some justification for that ar
gument and the most effective possible answer to it
would be, found in the creation of a regional bank
here -
Nothin; will be so important to the members of
the Federal Reserve Board as knowledge Of exact
business and monetary conditions throughout the
country That information can best be secured and
insured by being in Immediate constant touch with
regional bank Through it the board will know at
all times the tendencies and developments in trade
1t will be familiar with the daily offering of CONNER
cia paper, the needs of the markets in general the
feeling of the business community.
No such intimate observation would be possible
in any other way 1t is plain enough that regional
bank should be located here, and that it should repre-
sent large enough territory to give its experience
significance. That is just what would be the case,
if to the Washington bank were assigned the States
of Maryland, Virginia, West Virginia, and North
Carolina, and tn. District of Columbia. 1t would
be difficult anywhere in the country, to find in so
compact an area wider diversifcation of Interests:
financial commercial, and industrial, in the Baltimore
section; shipping and commercial in the Hampton
Roads region mining and industrial throughout West
Virginia. diversified agriculture in Maryland and
and Virginia. with pretty accurate reflection of the
conditions of the cotton bet coming in from southern
Virginia and North Carolina. And with all this di-
versifcation and miscellany of interest the region
also represents everything from the conservatism of
regions that have been developed from the time of
Jamestown down to the newest oil, mining, and in
dustrial areas of southwest Virginia and West Vir-
ginia There is every conceivable kind of business
and commercial interest within this region
to be served There is every stage and
condition of development, ready for observation and
analysis
Washington's territory ought to have reserve
bank the reserve bank of this territory ought to be
in Washington and the Reserve Board ought to have
the privilege of bank under its immediate atten-
ton Those three reasons seem to settle the matter