The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-08
NEW YORK MAY LOSE
CHIEF RESERVE BANK
Financiers Think McAdOO and
Houston Oppose Domi-
nance Here.
NEXT HEARING IN BOSTON
Cabinet Members Leave City
To-day--"Not Green"
Says McAdoO.
NEXT HEARING IN BOSTON


abruptly ended yesterday their hearings
on the organization OF the Federal Re-
serve. They stopped one day ahead Of
time and left tho conviction In the minds OF
bankers that they would not recommend n
big reserve bank in New York with 40 or
50 per cent OF the oountry's banking re-
sources. as proposed by a majority Of tho
Hnnnciers here.
Were not az green a. w may look"
close OF the hearings to a question
whether the organization board had
finally determined that New York was TO
have n reserve bank Of unqucstioned pre-.
eminence IN resources.
Joseph n. Martindale. president Of tho
Chemical National Bank. was ono Of the
witnesses examined yesterday.
Mr.. Martindaie, as representative Of an
Institution doing an exclusively CONNER
cial business. was thought 10 be an op-
ponent OF the Capitalization OF power In
New York. bu; he turned out TO be one
Of It's strongest advocates.
Thinks Eight Banks Too Many.
Mr.. Martindale spoke for n bank at
New York to include all OF New England.
New York. New Jersey. Pennsylvania.
Delaware and Maryland. Eight banks. he
felt. were far too many.
Il have always believed in strongly
centralized power" he told the Seore.
have n large capital. he said, because Of
the great commercial business hero and
the enormous borrowing IN New York by
commercial houses all over tho country.
lie disputed the suggestion OF Secretary
Houston that undue inducements were Of
fered to attract money here. According
to his experience. he said. New York
banks had not taken advantage Of high
cali money rates 10 the de,r.ruent OF their
customers. but had taken care Of Gus
toners In abnormal rs well as normal
times.
III money or credit r. required In Mo-
b'le Il will go THERE he said. When no
longer required there II will flow 70 some
other financial centre
Mr.. McAdoo advanced against Mr.. Mar.
tindnie's argument; for a bank OF supreme
power here the statement that centraliza.
ton OF reserve banking power under the
bill was 10 be secured primarily through
the Federal Reserve board. Mr.. Martin
dale replied that the power OF the board
must be handled very prudently and con-
seivat!vely II it Is 10 wora for the good OF
the system.
supports Nj. Hines Views.
Genrya l. pakar II ylce.nra..de,t NJ
the First National Bank, though per-
sonslly in favor OF n bank for New York
Of a size 20 include New England and Penn
syivhn,a. said that he supported a letter
presented by President H.He OF tho bank
that advocated reserve institution here
10 include only New York, New Jersey
ana Connecticut. which would have q
capital OF s2s.300.0oo. lie felt that the
advantage OF one large bank IN New YORK
was 70 insure expedition and quick action
wheG necessary.
Others who urged a large bank a, New
York were Charles II. Sab.n. VICE pres.-
den; OF the Guaranty Trust Company
Charles y. Dickey OF Brown Bros. & Co..
George c, Van Tuyl. Jr., Superintendent
OF the state Banking Department: Fred
l. kent. y.ce-prasldent OF the Bankers
Trust CompanyI Robert NJ galloway.
president OF the Merchants Nationa! Bank,
and William Woodward. president OF the
Hanover National.
II realize that some banks must be
weak" said Mr.. Woodward in supporting
his view, but that 10 because of the
weakness OF the law. The law should not
have provided for more than four reserve
banks
Henry Clews wanted a strong New YORK
bank. but advocated three banks on the
Atlantic seaboard. one AZ Boston. one at
New York and the third at baltimore,
lie called the currency law AS perfect a
Iiece OF legislation AS could be obtained
under present conditions"
Charles Hoyt, secretary OF ths Con-
necticut Bankers Association. said that
all but seven OF eighty-eisht banks tina.
servo bank ut New York,
President Irving T. Bush OF tho Bush
Terminal Company In a statement yes
terday said: "Many seem to think os
New York as tho seat OF money power,
which they dislike and suspect. and forget
that Il n the greatest nlanufa curing city
In the United States and handles 90 per
cent. OF the export and import commerce
OF the entire country. These facts II UNI
derstood will be a sufficient reason for
est q bl!shing In New York n Federal re-
servo bank large enough to ratisfy every
one"