Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-01-07

Adoo. that foreign banks would look
at one regional bank, in forming thelI
estimate or at the entire system OF
units under a coordinate board?
THAT depends upon the action OF the
co-ordinated board" Mr.. Morgan re-
Piled. He said that if the board could
show that the system was co-ordinated
foreign bankers would feel that they
were doing business with one COM
prehensive bank.
Secretary McAdoo handed to Mr..
Morgan an outline map of the coun-
try and asked him to indicate on 1t, at
q later time, the points at which he
thought regional banks should be
placed, and the district they could
cover Mr.. Morgan looked doubtfully
at the secretary and said he feared he
would not have the time to go into the
matter exhaustively. Nevertheless he
promised to do his best In the opin-
ion of Henry Bisallon, president OF
the Gotham National Bank, the mat
ter Of capital of the New York Re-
eional bank was not of primary i'm
portance. The national system of re-
gonal banks with a combined capital
of over 500, 100000 would be looked up
on, he thought, as one great banking
entity which stood behind each region
al bank.
Max May. vice president of the
Guaranty Trust Co, of New York
recognized as one of the foreign ex-
change expert officials of the country
was asked to what extent the foreign
business of the banks should be con-
sidered in framing the new system.
Mr.. May said this was most i'm
portant feature, inasmueh as it inyolv-
ed control of the international gold
movement.
How is the movement controlled
now?" asked Secretary McAdoo
Mostly, we lock the stable after the
COW is stolen" said Mr.. May. After
the gold has moved out of the country
the money rates go up to make them
higher than in Europe, where the gold
is flowing" He said that in his opin-
ion the new banking system would
prove effective in controlling the gold
movement.
NJ. G. Elliott, secretary of the COM
mittee, left tonight for Boston, to ar
range for the hearings of the commit
tee in that city on Friday and Satur-
day.
Although Secretary McAdoo of the
treasury department said today that
he had formulated no views regarding
the division of the country into re-
gional reserve districts, he gave a
strong intimation that he was opposed
to the creation in New York of a huge
regional bank embracing most of the
Northeast and 40 or SO per cent. of the
country's banking power Such bank
was advocated yesterday by New York
bankers at the hearing of the Federal
reserve organization committee, COM
posed of Secretary McAdoo and Sec
rotary Houston of the department of
agriculture
IF we put 40 or so per cent. of the
banking power into New York dis
trict," said Mr. McAdoo, I'VE would
be obliged under the law to divide the
remaining territory into seven dis
tricts that will be comparatively lean"
Mr.. McAdoo said the establishment
of two or three banks in the north
east-as, for example, at New York,
Boston and Baltimore-would not
dislocate the closely interviewer bus
mess and financial relations of the
northeastern territory. On the other
hand, he said, establishment of more
than one bank would facilitate the
course of exchange and mercantile
transactions between these Districts