The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-02-14
Law Makes This Course
Practically Mandatory
Upon Committee.
CLAIMS OF CITIES
ARE PRESENTED
District Outlined for Georgia
Metropolis Admitted to Be
Not Self Sustaining the
Year Round-Problem Of
Providing for South
Proves Difficult.

Atlanta. Ga, February l3.--ArGu-
Inents urging the establishment OF re-
gjonal reserve banks at Chattanooga
and Atlanta We're presented to the or
paniZation committee or the Federal
currency reserve system at q hearing
which began here before that body to-
day.
The claims OF Birmingham. Ala: Co
!urnbia, S. c.. and Savannah. Ca. will
hc pressed tomorrow, after which tho
committee VIII leave for Cincinnati.
For the fret time since it's organixa-
lion tho complete personnel OF the COM
mittce to-day was in attendance. John
shelton Williams. Comptroller of the
Currency, having Joined Secretaries
McAdoo and Houston here
II was clearly brought out at the
hearing to-day that the committee will
endeavor az far as possible 80 TO dis-
,rict the country that each reserve
region will be absolutely seIf-reliant.
Secretary McAdoo said the law practi-
cally made IL mandatory upon the com
inittoe to do so.
The spokesmcn for Atlanta, who out
lined a region comprising the States OF
Georgia North Carolina. South Caro-
lima. Florida. Alabama, Tennessee and
Mississippi, frankly admitted that this
district WAS not self-sustaining the
year round They said II was neccs-
sary. In the fall OF each year to bor
row from outside sources. This aid.
they explained. WIS expected to come
through Federal deposits III the reserve
bank.
In behalf of Entire People.
Mr.. McAdoo declared that this was
not the purpose OF the law. that it
was enacted in behalf OF the entire
people. and II was the purpose OF the
committee SO TO place tho reserve
banks that they might be OF greatest
aid TO the people. He asserted that
IL II were necessary, under normal cou :
ditions for one region to depend upon
another. the worry purpose OF the act
would fail
Robert +. Maddox, vice president of
the American National Bank. In this
city, explained to the committee Ihe
problem tho entire South had faced
development Of the section had re-
quired more capital than could be
locally supplied. The demands Ior
loans naturally were greater in the
South, he added, than in the older sec
tions OF the country where deposits
were iii excess of loan demands
Secretary McAdoo said the committee
fully appreciated this condition. and
hat II was TO meet such conditions
that he. and his associates were striv-
ing 80 to district the country as to
bring the South In touch with reserve
funds which II could draw upon each
year rs a matter OF right.
In the past he said. you have
been dependent upon the whim OF out
siders. as 10 whether or not you would
get your money to supply your needs
especially in tho crop-novinE season
Can't you SEQ how important IL is, IL
we are TO get the full benefit intended
by the new law, SO TO locate the banks
that each section A>f the country will
r. - ataY1 ..1 = f,..,, .
self -relia"'2" r"
some cs~sne speakers suggested IL
would be difficult 10 district, the South
Just at this time rs TO find n region
wholly self-rcliant and able to take
care OF It's own borrowings
Problem Is Difhcult.
Members of the committee intimated
That the problem of providing for the
south was one OF tho most difficult
they faced.
Several of those who testified to- -day
"cre asked II n branch reserve bank
were located In their city the demands
OF the immediate vicinity would be
fully met? 1t was admitted that such
IN arrangement would suffice. provided
the branch banks had the same power
rs the headquarters bank in each re-
gion.
Lay aside self-pride and tho pres
tige that would come to your city
reserve bank. and wouldn't q branch
bank meet your needs?" suggested MIR
McAdoo. especially when you knew
that branch bank has the power tc
draw on the headquarters bank in your
region. and that tho money Is In the
headquarters bank. whether it be 10.
coted In Washington or Baltimore?"
The secretary hastened to add thai
he mentioned these cities only for thu
sake OF argument
BY their questions and remarks to
witnesses, members of the committee
made II plain that one Of their prob
lens was to connect up group of So
called dependent States with n grour
of States. SO independent as to make
the entire region Independent under al
normal conditions. The committee
made 1t clear, however, that no deci-
sion OF any sort, either as to cities OIL
districts. would bo made until after
the return to Washington and a full
consideration "of tho mass of written
testimony which is being collected.
Richmond Second Choice.
Giles l.. Wilson. vice-president OF the
Florida National Bank at Jacksonville
told the committee tho Jacksonville
only on district evenly divided be-
tween Atlanta and Savannah with
Richmond, as second choice. He also
formally applied for a branch banb
for jacksonville.
Newell Sanders, former United States
Senator from Tennessee, followed Mr.
Wilson, presenting the GLAZING of Chat.
tanooga. for a reserve bank. j. II
Cantrell, Chattanooga attorney, sug-
gested a district comprising Southern
Ohio, Kentucky, Tennessee. Western
, North Carolina, Georgia, Florida, Ala.
bRma, Mississippi and Louisiana eas
.of tho Mississippi River. r. r.. Pres.
ton, Chattanooga banker, was the las
! representative to appear for ;fennos,