Daily capital journal. (Salem, Oregon) 1903-1919, 1914-01-29
SAN FRANCISCO WILL
GET CENTRAL REGIONAL
BANK Of PACIFIC COAST
Evident at Seattle Hearing No
Other City Has Chance to
Secure It.
SEATTLE MAKES CLAIMS
Urges Big Trade With Alaska and ori.
ent But Has Little Business With
Idaho and Oregon.
SEATTLE MAKES CLAIMS
UNITED PRESS InAsup WIRE /

UNITED PRESS LKASHD WIRE
Seattle, Jan. 29.--While Secretary
McAdoo took the pains to inform the
audience which crowded the federal
courtroom when the regional bank hear
ing was begun this morning, that no
significance should be attached to any
question propounded by him or his col
league, Secretary Houston, it -as evi.
dent that the whole Pacific coast is to
be included into one district, with the
central regional bank located at San
Francisco. The proposed plan to EN-.
brace Washington, Oregon and Mon
tana, into one district, received severe
jolt when M. F. Backus, president of
the National Bank Of Commerce Of Sc.
attic, and representing the Seattle
Clearing House association, was com.
PEELED to admit that there is but little
trade relations in this state with idaho
and Oregon, and less with Montana. A
further serious setback to the plan of
the local bankers, commercial bodies
and state officials was experienced
when it developed, from the questions
prOpounded by the organization com.
mittee that if even all the four states
named were included in one district,
the capitalization of the national banks
would only total $43,OoO,OOO and would
arefore be able to supply only $4,000,
900 Of the necessary $4,OOO,000 under
the terms of the law
Backus impressed upon the committee
however, that the state banks had al.
ready manifested a willingness to CO.
operate and to join as members Of the
regional bank, and that they would
easily furnish the remainder Of the mon.
ey.
Governor Lister was the first witness
and he was followed by P. H. Behrens,
an Alaskan pioneer, M. =. Backus and
Eugene II. Wilson, a Tacoma banker.
The hearing will be continued this af.
ternoon, and the committee will leave
for Portland tonight.
seattle's Claim for Bank.
Chief stress was laid by all the
speakers in behalf Of Seattle q claim for
central regional bank, upon the en-.
ormous business transacted with Alaska
and the orient and the future posi-.
bilities, as they will be developed by
the opening Of the Panama canal and
the building Of the Alaskan railroad.
Governor Lister carefully reviewed
the tremendous growth Of the state
of Washington and the Alaskan trade;
read letter from Governor Strong OF
Alaska, in which the latter advanced
seattle s claim to the bank by the fact
that more than 70 per cent Of tho bust.
ness Of the territory was done through
Seattle, and referred to letters from
Governor lIaines Of Idaho and Governor
West Of Oregon, in which they urged
the location OF n bank In the northwest
"But they did not namo the city,
did theyi' asked McAdoo, laughingly.
The governor also assured the commit.
tee that there would be no hindrancc
from tho bank examiner In allowing
state banks to become members Of the
federal reserve bank organization.
Backuss the first banker to address the
committee insisted upon an answer, and
toned.
San Francisco Would Bo Second Best.
ITO what extent are The reserves Of
Montana, Oregon aud Idaho held in
seattlef" McAdoo asked.
Baclus was unable to reply.
"lf It develops that Seattle could
not have a regional bank what would
be your second choiceln
Backus said he had no choice, but the
committee insisted upon an answer, and
3ackus replied
The committee questioned Backus on
ho reserves held by seattle IN eastern
banks ana their relation to the business
carried On between Seattle and tho
cities In which those reserves woro
held. It developed that Seattle does
greater business with Minneapolis, 81,
Paul and Chicago, than with New York,
bu, that tho latter city holds sixty per
cent Of Seattle's reserve money
"1sn't II an illogical conditional
asked McAdoo. "IIow do you account