The Birmingham age-herald., 1914-04-05
Offers No Explanation for Regional Bank Cities
 Selected
DECLARE CRITICISM
 HAS POLITICAL TINGE
Selections of Richmond and Atlanta Chief Points of Dispute-Charge of Playing Politics Met by
 Counter Attack

Washington. April 4.-Alembers of the reserve bank organization committee coli- tinued silent today. although criticism of their selection of reserve cities and their divisions of the country into banking dis triets was still heard in Congress
 No official explanation was forthcoming in defense of the committees choice of cities. but an official view here was that some of the criticism has a political tinge. Defenders of the committee declared to- night that no matter who had been charged with the responsibility of setting up reserve districts, they would have reached Fundamentally the same eonclu- sion as the committee
 Apparently the most vigorous crciticsm has been directed toward the choice of Richmond, Va. in preference to Bati- more or Washington, and of Atlanta tn- stead of New Orleans It was said, how ever, by those familiar with the commit tees deliberations that the trend of trade from the south is north and eastward, and not toward New Orleans, and that in consequence Atlanta is more strategicaliy located for a reserve bank.
 In defense of Richmond it was argued that closer business relations with the south prevail thore than in Baltimore or Washington.
 Poll Considered
 one Tact that was brought out tonight was thatoa poll of all the national banks which had signined their intention of en- terng the system was taken into consider alton in naming the cities. In every dis trlct but one d majority of the banks favored the city chosen by the committee a reserve center.
 Some surprise was expressed at the critics who dwelt upon the fact that the New York district does not include Jersey City and Newark and some nearby con- neetcut points IL was recalle tonight however, that the fact that these cit zs are put in the Philadelphia or Boston dis triet Nill not prevent theif having about the spjne relations with banks in New YorlSf as al present. About the onls difference will be that their reserve funds will not be kept in New York. In this connection it was said that under the present system more than S300 oo0,o ,o1e of reserves from small banks throughout the country Is usually on deposit in four banks in four great cities. In times of stress, as in 1907. much of this great sum Is out in call loans. When crasa comes it was argued the small banks are likely to find themselves unable to get their reserve funds from these cities.
 Another Reason
 IL was largely to cure such condition. 1t was said that the districts were de- signed to be nearly alike in captaiza- tion of reserve banks possible. with the idea that there shall be no such con centraton of reserves in the future.
 The charge that tho committee was playing politics In its selection was met tonight with the assertion that if politics had been factor the committee would have been inclined to give a bank to I4in- con. Neb.. the home of Secretary Bryan. 10 Louisville, where Senator James was anxious to see one located, and to Den Yer, favored by Senator Shafroth, who gave aid to the administration in the fight for the currency act In Congress.
 No formal protests against the commit- tees selections reached the treasury to- day. but several teegrams were received from commercial organizations and busi- ness mon in cities which failed to get banks. commenting the committees choice.