The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-04-15
why BALTIMORE LOST,
RESERVE BOARD EXPLAINS SE-
LECTION OF REGIONAL BANK
CITIES.
Ncw Orleans, Baltimore and Denver
We're Opposed by Bankers OF Ter
ritory They Would Have Served.

tonight issued a statement defending
it's choice OF reserve districts. IT was
the first official answer made to crit
icisms voiced i'm congress and heard
from cit.-s which failed to get re-
serve banks.
For the first time some Of the data
used by the committee ir reaching its
conclusions was made public.
Particular attention was given to
the committees reasons for choosing
Atlanta, Ca, and Dallas. Texas, in
preference to New Orleans: for select
ing Richmond. Va. instead of Balti-
more. and for naming Kansas City in
stead OF Denver, Col. Omaha or Lin
coin, Neb. The committee called at
tention to the fact that since 81 cities
were applicants and only IL were
named, "a had TO be disappointed.
with SO many conflicting claims"
said the statement, somebody had TO
Judge. Congress constituted the COM
mittee n court and gave the federal
reserve board the power to review.
q remedy through the orderly process
the law prescribes.
Critics of the committees decision
reveal Misunderstanding and either do
not know or appear not to know
that the federal reserve banks are
bankers banks and not ordinary COM
mercial banks. that they are to hold
the reserves and to clear the checks
OF member banks. make rediscounts
for them and engage in certain open
market operations. AS matter Of
fact. the ordinary everyday banking
relations of the community. of busi-
ness men and OF banks will not be
greatly modified or altered.
Every city can continue to do busi-
ness with individuals, firms or cor
boretions. within its own limits, or in
1 its own region or - any othor part of
tho Union or the world'with which it
has h .retofore done business.
Reserves are 10 be held In a new
way and I'm new places. so far as this
oct controls them. but banking and
business gen jrally will no more be
confined within districts than hereto
fore. and II is simply misleading for
that the future OF city will be in
juriously affected by reason of it's fail
ure to secure federal reserve bank.
Every city which has foundations for
prosperity and progress will continue
TO grow and expand. whether 1t has
such n reserve bank or not, and we'll
informed bankers. especially. are
aware OF this"
The statement showed that the COM
mittecs poll of national banks apply
Ing for membership favored Dallas
and Atlanta over New Orleans in that
parr OF the South and Southwest
which was included in the districts
decided on. 1t showed that the capi-
tai and surplus of national banks in
leans. while i'm Dallas IL was less but
that In both Dallas and Atlanta loans
and discounts and individual deposits
were greater than I'm the Louisiana
city.
Discussing the choice OF Richmond,
the committee pointed out that banks
In South Carolina. North Carolina and
virginia preferred that city to Balti-
moro or Washington and declared it
was thought unwise TO locate another
reserve bank close to Philadelphia. 1t
was pointed out also that sworn
statements To the comptroller of the
currency showed on January 13. 1914,
that Richmond national banks were
lending twice as much money in the
district eventually created ms Balt-
more and Washington combined
In support of it's choice of Kansas
City the committee said that Montana.
Idaho. Arizona, TcaXs ana Nebraska.
opposed Denver, and that most of the
bankers of tentative district sug-
gcsted by Omaha preferred other
cities
The committee devoted most Of its
attention to New Orleans. II said in
part:
New orleans selected a district eX-
tending from New Mexico To- the At
lantic ocean. including all Of Texas,
Louisiana. Mississippi. Alabama, Flor
ida. Georgia and that part of Ten
nessec south OF the Tennessee river.
1T was represented by Texas that
II would be great violence To her
trade To connect her with Sew or
leans. IL was claimed ana evidence