Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-06-12
AS HEAD
Of RESERVE BOARD
Thomas B. Jones, Chicago
Lawyer, Practically Chosen
by President Wilson.
LIKELY TO BE NOMINATED
TOTHE SENATE MONDAY
Treasury Officials Believe New
Banking System Will Be in
Operation by August l.

Thomas B. Jones. a Chicago lawyer,
former member Of the Princeton Univer-
sity trustees and a personal friend of
President Wilson. has practically been
selected for governor Of the federal re-
serve board. It was said unofficially today
that his nomination would go to the Sen
ate Monday.
With the nomination Of Mr.. Jones the
names Of Paul NJ. Warburger Of New
York, w. P. G. Harding of Birmingham.
Ala; A. c. Miller Of San Francisco. and
E. c. Simmons Of St. Louis. to be men,
bers of the board, are expected to go to
the Senate.
Secretary McAdoo and Controller Of
the Currency Williams will be ex-ofhcfo
members.
1t was definitely stated at the White
House that the President would an
nounce formally the personnel Of the
board Monday.
Mr.. Warburg and Mr.. Harding are
bankers; Mr.. Miller Is an economist and
at present assistant secretary OF the
interior; Mr. Simmons Is a merchant.
Mr.. Jones, as well as being a lawyer, Is
a student and expert in finance.
With the appointment and organization
of the board, the work of actually Or
ganizing the countrys new banking and
currency system will get under way.
System to Be Ready August 1.
Treasury Department officials are still
of opinion that 1t will be possible to
have the twelve federal reserve banks
in operation by August 1. Demand Tor
money to move crops, 1t ID said, how
ever, has not been such as would sug-
gest that there will be any great strain
to be relieved by the reserve banks.
Oklahoma and Kansas are now har-
vesting their wheat. and indications are
that it will be a bumper crop. But
banks in the wheat section are not
hard pressed for money. This condi-
tion is attributed by Secretary McAdoo
to the passage of the federal reserve
act. which will make it possible to re-
discount commercial paper.
Practically all the rest Of this month
will be required for the selection OF
directors of the federal reserve banks.
The institutions which have stgnifed
their intention to be members Of re-
serve banks thronghont the. Unite4
of the A and B classes. Each reserve
bank will have three directors OF class
A and three OF class b, all named ~
electors selected by the various MEM
are then to be designated by the federal
reserve board, and must be men with
banking experience.
Call for Subscriptions Deferred.
The organization committee has not
made any call upon member banks as yet
for the initial one-sixth Of their sub
scriptions to the capital stock of the re-
serve bank to which they wish to belong.
1t is not likely that such call will be
made until after the federal reserve board
is confirmed by the Senate and actually
takes up its work in Washington.
Much detail work awaits the federal re-
serve board after it assumes Office. Sec
retaries and assistants to the members
must be selected and a complete system
Of reports for the reserve banks must be
worked out.
Directors of each Of the reserve banks
will work out their own organization for
the most part. But the time between July
1 and August 1 will be short in most of
the reserve cities, as no quarters have
been provided and the physical equipment
of the banks will cause some delay.
1t is pointed out by Secretary McAdoo
and Controller Of the Currency Williams
that the federal reserve banks will in no
sense be general banks. and consequently
their functions will be wholly unlike those
Of the ordinary city bank. The federal
reserve banks will be bankers banks.
They will hold reserves and clear the
SHSGhS VI 4ACAOCA DoLhSs i2AoAC ACAAo-
counts for them and engage in certain
open-market operations which will have
little effect on the regular banking opera
tions of the cities In which the federal
reserve banks are located.
One of the first duties which Will fall
upon the directors of the twelve federal
reserve banks will be the establishment
Of branches necessary to accommodate
the business of the various districts.
Branches will be operated by directors
named by the main bank and the federal
reserve board. No limit has been placed
upon the number of branches which each
federal reserve bank may establish.
Reserve Bank Cities.
San Francisco, Kansas City, Minneap-
oils, st. Louis Dallas. Atlanta, Chicago.
Cleveland, Richmond, Philadelphia, New
York and Boston are the twelve cities in
which federal reserve banks will be estab-
lished.
The district which San Francisco serves
comprises the states of Washington. Ore
gon. California, Nevada, Idaho. Utah and
Arizona Treasury Department officials
believe the directors Of the San Fran
cisco bank will find 1t necessary to estab-
lish number of branches to accommo-
date such scattered territory.
In a district such as New York city
serves which comprises only the state of
New York, it is not believed the reserve
bank directors will find 1t necessary to
create a large number of branches