Evening journal., 1914-01-10
WILMINGTON IS
SOON TO KNOW
BANKDISTRICT
May HaVe to Clear Through
Either Philadelphia, Boltl-
more or Wilmington
WASHINGTON HEARING
ON SUBJECT NEXT WEEK

Special to THE EVENING JOURNAL. /
WASHINGTON, d. c., Jan. 10. r
Whether the banks of Wilmington, /
Del. will clear through a Federal /
reserve bank established i'm Phila-
delphia, Baltimore of Washington
will be decided in this city at hear
ings to be held from January ~ a.
II. If the banks of Wilmington no.e
any preference in the matter 1t VIII
be necessary for them TO make their
showing between the dates mentioned.
If they prefer 10 clear through
regional bank in Philadelphia they
can present evidence showing thar
the natural flow Of money in their
city is towards Philadelphia. and thai
it would be a wrench to put the COZ
lections and clearings under the
jurisdiction OF a bank at Washing
ton
Washington. Baltimore and Phila-
delphia are pulling strongly for one
OF the banks. 1t is admitted that
IIIIE VIII DC Il uUAAh ia OA' " '--~~r
three cities. and the chances favor
Washington because the Treasury De
plrtment feels that it would be better
TO have q bank in this city where the
Federal Reserve Board can keep It's
fingers on the pulse OF the nations
finances.
No matter how many Federal Re
serve banks there may be there win
not be enough to so around. Cities
like Wilmington which are not likely
TO get a regional bank, will not be
inconveuionced. however. Tho profit
OF having one OF these banks is much
overrated.
For the information of WilmiI gtoI
bankers and business men it shoul'
be explained that there has been 1
general migapprehension as TO wha
a Federal reserve bank will be
Bankers all over ,he country hav'
been writing TO the Treasury Depart
ment. in an effort to obtain a compre
hensive statement of the situation
The bin saws the banks shall be give
the title of the city in which located
as the Federal reserve bank or en-
ego. and the organizing force is IN
structed to designate Federal reserN
cities. Practically the Federal re
serve banks. so far as any one city
concerned. the conferces say, WI
consist of a board of directors wh
will represent the Federal reser'
district rather than the so-ealle
Federal reserve city.
In choosing these directors the Dl
provides for the grouping OF bank
according to capitalization so that e
three class A 'iroctors, represents
five of the member banks, viii be me
from small as we'll as large bank
The evident purpose is TO give con
try tanks representation. Inc lhI'
class b directors will be chosen
the banks but must be from the RAM
of men engaged in industry, agricu
ture or business pursuits, and tn
cannot an come from the big city
the district. There is more chan
that they would all come from pom
in the district outside of the city
The three Glass d directors viii
,nnointed bv the Federal Reser
s Board The board of directors OF
federal reserve bank will thereto
NOT REPRESENT the designated Fedci
reserve CITY. but the Federal reser
IS district. It viii undoubtedly have
ntiice as headquarters, but 1t VIII
pcryise the conduct Of several bar
inc houses located most convenien
TO serve the district
Ii New York, Philadelphia and Plt
burgh happened to be IN the sa
Federal reserve district each
have a branch bank and there
he no distinction between them.
the operations of the Federal rese
banking houses familiarity with 10
business and credit conditions is
dispensable. No city will have
banking house that will represent a
thing more than the financial act
ties of its own locality. When
system has finally developed the $
fem of branches will doubtless
extended down to the point OF ag
cies in the smaller cities in the +
eral reserve district and all
branches and agencies taken tog'
err will form the Federal rese
bank The misleading feature in.
hin Is the conveyance of the idea
the Federal reserve system is TO
operated by cities instead OF by
tricts.