The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-04-11


reserve bank organization committee
tonight Issued statement defending
its choice OF reserve bank cities ana
definition OF reserve districts 1t was
the first official answer made to critl-
cisms voiced in Congress and heard
from cities which failed to get reserve
banks For the first time some OF the
data used by the committee In reach
ing It's conclusions was made public.
rartieular attention was given to the
erence to New Orleans; for selecting
Richmond instead OF Baltimore, and
I9r bsnvnt 4aminG ai KSms1s o;nsn City Instead q
The committee called attention 10 the
fact, that since thrty-seven cities were
! twenty .iivc had to be disappointed.
Somebody Ind To Judge.
Wi,h SO many conflicting cla Inns"
| judge. Congress constituted the COM
i,n,dttee court and gave the Federal
Disappointed competitors should seek !.
remedy through the orderly process tho
law prcScribcS
Critics of the committees decision
reveal misunderstanding and other do
no. no. know. kG. or appear not to know. that
crs' banks and not ordinary commerciaI
banks; that they arc to hold the re-
serves and to clear the checks of mem
ana engage in certain open market op-
1iiiations. as n matter of fact. the or
th,n"fH, thn IN, eNGrHua% banking relations or
altered. u
Every city can continue to do busi-
ness with individuals. hrms or corpo-
rNtions. Within It's own limits. or in
us rs. own T.ni region or in any other parts OF
has heretofore done business
Husincss Not Couhned.
-. heserFes are 70 be held in now
act controls them, hut banking aud
roStnaG ouStness S,Gheirally VIII no more bo
fore. and 1t is simply misieading for
any city or individual to represent that
the future OF city Will DC injuriousIy
/ cure "a Federal reserve bank Every
city which has foundations for pros
perity and progress Will continue TO
grow and expand. whether 1t has such
reserve bank or not, and wcll-inform-
cd bankers. especially. are aware OF
The statement showed that the COM
mitteos poll OF national banks apply
Ing for membership favored Dallas and
OF the South and Southwest, which was
Included in the districts decided on.
II showed tina, the capital and surplus
greater than in New Orleans while in
! Dallas it was less, but that in both
greater than in the Louisiana city.
why HiclmOnd Won.
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 bauii close TO Philadelphia. It
was pointed out. also, that sworn
Currency showed on January Is, 1919
that Richmond national banks were
lending twice US much money in tho
district eventually created as, Balti-
more aud Washington combined:
In support OF its choice OF Kansas
City. tin, committee said that Montana.
Idaho, Arizona. Texas and Nebraska
opp2sed Denver. and that most Of tho
statement. 10 scrve the great section lon
any other way than By creating q dis
trict with Kansas City AS hcadquar-
THE loans and discounts of all re-
porting banks and trust companies In
Kansas CITY on June 4. 1918, amounted
100000 the total loans and discount,
the cities of OMAHA. Denver and Lin
Movement of trade In district No.
10: is to the east. TO place the Fed
Denver. 1t would have been necessary
TO disregard these facts and the opDo.
sition and earnest protests OF banks.
both ma ational and State--throughou
the district"
Why New Orleans Lost.
me committee devoted most OF ita
part: "
New Orleans solicited district ex
tending from New Mexico to tho At
lantic Ocean, including all OF Texas.
Louisiana Mississippi. Alabama. Flori'
da. Georgia and that part OF Tennessee
south OF the Tennessee River.
IT was represented by Texas that IL
would do great violence TO her trado
to connect her with New Orleans II
was claimed and evidence was submit
ted in su2port OF the claim that her
Kansas City and ST. Louis In q poii
OF the banks OF Texas made by the
Comptroller OF the Currency. 212 banks
bank In Texas expressed a frst choico
l for New Orleans. The whole State oro.