The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-05-10

Comptroller OF the Currency Williams,
the Baltimore committee. through
counsel. fled request for rehear-
ing In refusing the request the or
gantzation committee makes the point
that the law specifies that the deter
mination OF the organization commit
tee is not subject TO review except by
the Federal RESERVE Board when or
ganizcd.
w c. Elicit. secretary Of the re.
serve bank organization committee
has made public the following reply
on the part of tho committee refusing
Baltinore'S application for rchcar-
ing:
REPLY OF COMMITTEE
TO HtLTIMORI'S PETITION
Washington. May .. 1914
The reserve bank organization com
mittcc has denied the request OF the
Baltimore committee for n review o:
the committees action In desicnatinc
richmond as the Federal reserve city
for the Fifth District. The letter of
the organization committee stating its
grounds for "A denial of tho reouest
{" as follows:
Washington. May /. 1914
Cans Harmon. Counsel to Balti-
more Committee.
Sirs.--On behalf of tho reserve bank
organization committee beg to ac
knowledge the receipt OF your letter
or Aprl %. and to advise you that
tho same has been submitted TO. and
considered. by the committee.
You request on behalf OF the region
nj reserve bank committee OF Baltimore
% That the decision OF the reserve
rank organization committee des,g-
mating Richmond az the Federal re-
serve city for district No. 3. be reviewed
by the committee (2) That pending an
Application TO he made bv your COM
'nittce TO the Federal Reserve Board.
when organized. for n review of the
committees decision. that no steps lie
taken by the committee In the matter
OF the organization of the Federal re-
serve bank Of Richmond
In response TO your first rcuueat
Your attention Is directed 10 that part
OF section of the Federal reserve bank
act which provides that
the reserve bank organization COM
mittee shall designate not less than
eight nor more than twelve cities to
be known as the Federal reserve CT
ties and shall divide tho Continental
United states, exclusive Of Alaska. into
districts. cach district TO contain only
one OF such Federal reserve cities. The
determination of said organization
committee shall not be subject to re-
view except by the Federal reserve
board when organized"
The committee has already filed tn,
ccrtincate required ny law with the
Comptroller of the Currency, desiy-
mating the several Federal reserve CT
ties and defining tho gcographical linn
its OF the district to be served Ac-
cordinEly the matter L. no longer In
Its hands. and under the clear proyi-
sions OF the act It's determination Is
renewable only by the Federal reserve
board when organized.
In response to your second request
that the organization committee defer
the organization of the Federal re-
serve bank of Richmond until Balti
moro has submitted its appeal to the
Federal reserve board when organized.
! am instructed TO direct your ntten-
ton TO that part OF Section of tho
Federal reserve act which reads as
follows:
When tho minimum amount OF capI-
TAI stock prescribed by this net for tho
organization Of any Federal reserve
bank shall have been subscribed and
allotted. the organization committee
shall designate any tlvc banks of those
whose applications shan have been
received 10 execute n certificate of or.
can:zation, and thercuDon ,hc ban';s
so DESIGNATED shah. under their seals
MAX" IN organization certificate which
sail specifically state etc"
am also directed to direct your at
t'"'''' 90 'hit part OF section OF the
Federal reserve act which reads rs
follows:
When the organization committee
shall have designed the cities in witch
me Fedora! reserve banks are to no
nrEnnizeh. and fixed tho geoe:anhical
limits Of the Federal rcserv- district.
every national bank association with
in that district shall be required with
in thirty days after notice from the
Ns,rl
the capital stock OF such Federal bank
III sum equal t. & per cent of the
PAID up capital stock and surplus Of
such bank. one-siX Of the suhscription
TO lac PAYABLE ON call Of tn. or,:Lnlza
tor committee or of the Federal Re-
serve Rpard one-aINth within three
months." etc
Pursuant to this provision OF Sec
ton :, The organization committee gave
notice on April To all national banks
which have sisnifed their intention Oh
entering the Federal reserve system
mat the aDOl'cotions provided for
stock in the banks for their respective
districts should be hled with the com
hitt'e within thirty lays. rs PFC
scriLch by law. The time ,iE.it Viii.
accordingly. expire on May 3, and. ac.
corning TO the mandatory provisions
or section 4, above referred to, the
committee is required to DESIGNATE five
banks to execute the original certIfi-
cate. and is not empowered by any
provision of the Federal reserve act
10 waive this oblration nj the reuues,
OF the representatives of amy city
Your petition for review VIII H.,
called to the attention Of thr Federal
RESERVE Board as soon as that body
has been organized. II is nct prob-
able that the committee viii all 70,
he payment OF any installncnts Of the
subscriptions to stock OF any Federal
reserve banks before til" orL:niznt,on
Of The Federal Reserve Board but IN
dci It's Interpretation OF the soc,icn re-
fcrred TO. Its duty to proceed with the
organization of all Federal rescrv.
banks is mandatory and not di.,rr
NCNlrN. and. aCCOrlinulv vnuc -nnnnrt