The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1914-01-29
CAPITAL OF
BANKS NOT
SUFFICIENT
Visitors Told State Institu-
tons Would Cooperate
With National.
ALASKA is DEFENSE
Bankers Tell Committee of
Vast Bulk of Business
With the North.


While Secretary OF the Treasury
McAdoo took the pains TO inform
the audience which crowded the
federal court room when the Seat
tie regional bank hearing was be-
run this morning, that no signifi-
canoe should be attached 10 any
questions propounded by him or by
his colleague. Secretary Houston OF
the agricultural department. il was
consistently evident that the whole
OF the Pacific coast is 10 be includ-
ed into one district, with the CEN
trail regional bank located al San
Francisco.
The proposed plan 10 en-
brace Washington, Oregon.
Idaho and Montana in one dis
trIct received jolt when M.
r. eaekus. president Of the Ma
tionsl Bank Of Commerce Of
Seattle, and representing the
Seattle Clearing House assoeia.
tlon. was compelled TO admit
that there 10 but little trade re-
iatIon In this state with Idaho
and Oregon, and less with Mon-
tana.
A further serious setback to the
plan OF the local bankers, CONNER
'cial bodies. and state officials, was
experienced when IL developed.
from the questions propounded by
the organization committee. thar
even IL all the four states named
we're included In one district. the
, capitalization Of the national banks
would only total $4,000 900. and
would therefore be able to supply
only $2.500. 900 OF the necessary
S4.o0o,000 under the 6e6 terms OF
the law.
State Banks Would Go In
Backus impressed upon the CON-
mittee. however. that the state
banks had already manifested
willingness to cooperate and to
join as members OF the regional
bank. and that they would easily
furnish the remainder OF the
money.
Gov. Lister of Washington was
the first witness heard. He was
followed by p. NJ. Behrens, an
Alaskan pioneer: NJ. F. Backus. Sc
attic banker. and Eugene T. VIII
son. a Tacoma banker.
The hearing will be continued
this afternoon, and the committee
will leave for Portland tonight.
Emphasize Alaska Business
Chief stress was laid by all the
speakers in behalf OF Seattles
claims for a central regional bank.
upon the enormous business trans
acted with Alaska and the Orient.
and the future possibilities as they
will be developed by the opening OF
the Panama canal and the building
OF the Alaskan railroad.
Gov. Strong Writes
Gov. Lister carefully reviewed the
tremendous growth of the state OF
Washington and the Alaskan trade.
and read a letter from Gov. Strong
OF Alaska, in which the latter ad-
vanced Seattle's claims TO the bank
by the fact that more than 75 per
cent OF the business of the territory
was done through Seattle.
He also referred to letters from
Gov. Haines of Idaho and Gov. West
OF Oregon in which they urged the
location of bank In the Northwest.
But they did not name the city.
did they?" asked McAdoo. laugh
ingly.
Backus Is Questioned
Backus, the first banker to ad-
dress the committee, was the most
closely questioned
To what extent are the reserves
of Montana. Oregon and Idaho held
in Scatter" McAdoo asked.
Backus was unable to reply.
IF II developed that Seattle could
not have a regional bank, what
would be your second choice?"
Backus said he had no second
choice. but the committee insisted
upon an answer. and Backus re.
piled:
San Francisco would be second
best"