New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-02-19
McAdoo and Houston Re
port Country Enthusiastic
Over Bank Law.
DELAY IN NAMING
OF RESERVE CITIES
Plans Made. However, TO Have
the Treasury Provide Funds
for Moving Crops.

Washington. Feb 1S.-The federal re-
serve bank organization committee PACK
,, Washington after a five weeks UP
,hrousb the country. in statemen: Is
e,e5 tonight announced that It's seiec-
ton Of federal reserve cities ana oe"n'-
ton Of reserve districts would not oe
made until careful consideration nad oeeh
given TO tho information accumulated oh
the TIM. The statement said the com
r,ittee. Secretaries McAdoo and Houston,
found the country prosperous ana iearhe'
that bankers and business men are erca'
d, interested I'm the new banking system
and confident OF its success.
In supplemental statement MT NC
Adoo declared that he hoped the new sys-
,on would he established In time 10 take
care ~ crop moving contingencies next
oar but that ~ e were not the Treas
NV Department would stand ready to
MACE its funds again at the disposal OF
business men.
The committees statement reads
We have spent practically from Janu-
arv 10 the present time in hearing me
views Of business men and bankers on
the problem of dividing the country INTO
not less than eight nor more than t"eiVe
districts and OF locating in each distric,
tho main office Of a federal reserve bank.
Of the two questions the division OF the
country into districts is the more tmpor-
tant and difficult
The committee has hold hearings in
eighteen cities and has heard from ever
community Of consequence in the sections
hot
Currency Bill Lauded.
In every section Of the country the
committee has found practically undnl-
nous conviction among bankers and bust
ness men that the new currency bill VIII
bring about most beneficial changes In the
business Of the country; in fact, the COM
mittee heard no one speak who did not
say that the measure was great step IN
advance.
The fact that the nations banking re-
sources as whole make enormous ad-
vances every twelve or fifteen years, ap-
proximately doubling in each such period.
was made evident. and, while this IS true
Of the country as a whole, it was shown
that certain sections are advancing with
more rapid strides than others, and that
the country is fundamentally exception
ally sound and strong economically.
The facts and figures submitted 10 the
committee in every part of the country
show amazing growth and strength and
disclosed a condition Of financial. indus
trial. commercial and agricultural sound
ness and prosperity that leaves no doubt
MS 10 the future.
The committee was impressed by the
frank admission OF bankers throughout
the country that the present banking sys-
tern not only encourages but actually
has created striking artificial conditions
of banking.
with practical unanimty the opinion
vas expressed that the new measure will
restore normal conditions. with great re-
sulting benefits, that the present system
not only furnishes no protection in times
Of real stringency. but also. even in times
OF great prosperity. especially when there
are bounteous crops makes it impossible
10 meet the conditions, and that there
has been presented the singular contradic-
ton OF having bankers thrown into fear
Of a panic by the emergence OF wealth.
Prosperity No Longer Peril.
The bankers were unanimously or the
opinion that the establishment of this re-
serve system will no longer make our
prosperity peril and that ii Will relieve
them of apprehension and distress In
those circumstances and give confidence
and stability 10 business generally
The committee has finished It's survey
in the field. II has yet 10 make examina-
ton OF important documents and data
and cannot render any decision until it
has thoroughly examined this material.
II can come 10 no conclusion about any
part OF the country until it has formed
its conclusions for every part Of the coun-
try, since the districts are necessarily in
terrelated and interdependent. II cannot
OF course, decide the location Of head
quarters banks until the districts are de-
0ned.
Already practically all the capital rep