The Mitchell capital. (Mitchell, Dakota [S.D.]) 1879-1918, 1914-01-08
DECLARE
o BIG BANK
NEW YORK WITNESSES BEFORE
CURRENCY COMMITTEE CON.
TlNUE TO DEMAND GIANT
INSTITUTION.

e YORK Clty.-DtSplte the APP
parent opposition of Secretary Nc
Adoo and Secretary Houston to the
proposal of the New York bankers for
the establishment here of a regional
reserve bank of an overshadowing
size, witnesses who appeared today
at the hearing of the federal reserve
organization committee, insisted al
most unanimously that such a bank
is necessary.
From a long list of leading finan-
ciers who appeared before the com
mittee II conspicuous name was
missing, that of George f. Baker,
Of the elder j. p. Morgan, and a
director in more important corpora
tions than any other MAJ in the coun-
try. Bakers public appearances are
rare and SO instead OF coming in per
son, he was represented by his sou,
George +. Baker, jr., v~ice-president
of the First National bank. The
younger Baker sided emphatically
with the majority of his predecessors
before the committee.
Don't you think" asked Secretary
McAdoo, that it would be better 10
have eight strong banks than one
strong bank and eve weak ones?'
II wouldn't call the other weak
said Baker, but l wouldn't have the
New York district extended to the de-
triment of the Others"
Previously Baker had given an OPP
inion that the New York reserve
bank should include the territory
from Boston to Pittsburgh.
Morgan for Big Bank.
New York City,. p. Morgan al
|ligned himself yesterday with the
advocates of a regional bank of com
manding size in the district which il
to include New York. Most of the
other witnesses who appeared at tn,
hearing of the federal reserve organi
cation committee shared Mr.. Morgan:
views, arguing for the establish.
ment of a regional bank in this ter
ritory, which would represent Al
per cent or more of the capital o
the national system.
Secretary McAdoo of the treasur,
department and Secretary Houston
of the department of agriculture
who compose the committee, init
mated that they did not share thi
view. Many of their questions Dor,
upon the feasibility of making TIL
regional districts more equal with
perhaps, three banks in the north
east. instead Of one.
Mr.. Morgan's appearance befor
the committee was a surprise t
those who were attending the hear
ing and banker indicated that til
invitation to give his views wa
something of a surprise to him, a
he had not been requested to appea
until shortly before the hour speci
fled.
Explaining that he had not consid
cred carefully the division of TIL
country into regional districts, MI
Morgan said he would not attemp
to outline any detailed plan. le
I'm trying to see how the Who'll
United States is to be handled" Ii
Explained. That's all I'm good for.
Id New York or Boston.
Mr.. Morgan surprised his nearer
by saying that he did not conside
1t important whether a regional ban
were located in New York. 1t Nigh
as well be In Boston, he believed. Til
Important thing, he said, was to hav
the bank which served the Me-
York district of sufficient size t
command the respect of the bushes
men and bankers of all countries. A
to the amount of capital in thi
bank, which many witnesses had sal
should be larger than any membe
bank, Mr.. Morgan attached appa1
emily little Importance.
lit isn't so much the capital" Ii
said, "as the assets the bank repre-
sents."