The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-04-04
TO Define BANK DISTRICTS.
WORK OF RESERVE COMMITTEE
NEARLY COMPLETED.
Waning of Regions Awaited With III
tense Interest by Bankers Through
out Country-I'oard May Change
Districts and Cities Whenever il
Chooses.

Washington, March 30.-After
three months of consideration the
reserve bank organization committee
secretaries McAdoo and Houston
and Comptroller Williams-charged
with laying the groundwork for the
new currency system, is about ready
to define geographically the limits of
the federal reserve districts into
which continental United States is to
be divided for banking purposes
and at the same time name the cities
in each district, where reserve banks
are to he located. 1t is the general
expectation here that the announce
ment of these conclusions will be
made about April l, for the commit
tee is known to have reached a point
in its deliberations where little re-
mains to be done.
The committee has taken precau-
tions to keep it's conclusions secret
and has announced that any state
ments made previous to their official
publication are merely speculative.
Despite this fact there has been great
interest here in the doings of the
committee and volumes talked by
those in official life who are now en-
tirely within the inner circle.
Opinion is not unanimous among
those persons as to the number of
banks to be established. The law
permits the establishment Of not less
than eight and not more than IL
banks. There is apparently little
ground for believing that the com
mittee will name only eight cities and
will select the full number allowed.
The expectation seems to be quite
general that there will be at least
four cities on the Atlantic seaboard
In this section Boston, New York and
Philadelphia have been mentioned
many times and Richmond and At
lanta, Baltimore and Washington
have been put down on many of the
unofficial lists.
Between the Allegheny mountains
and the Rockies the prophets are not
so definite, but many Of them agree
that Chicago, st. Louis and Kansas
City are practically certain to be
chosen, and many of them add Min.
neapOlis, Cincinnati and New Orlean.
or Dallas, Texas.
Persons who have figured thei,
lists largely on resources Of the nat.
ional banks which are to become
members OF the reserve system be.
lieve only one bank will be located or
the Pacific coastal San Francisco
They point out that in that territory
there are now only banks with suffi.
cient capital to subscribe to the stock
Of one reserve bank.
Under the law, each reserve bank
must have a capital stock of $4,000
600 and each bank must subscribe tO
make this capital per cent Of its
own capital and surplus. If the banks
becoming members can not subscribe
sufficient amounts to make up the s4.-
600. 900, the stock of the reserve bank
is to be subscribed by the public.
1t is assumed here that the commit
tee will not launch the new system in
such way that any bank will be the
centre Of a district which can not
without public subscription take up
necessary reserve bank stock. Those
who use this argument are inclined to
believe that the committee for this
reason may establish less than IL
banks.
There has been doubt in the minds
of some persons as to the number of
banks to be set up in the Sough. At
lanta. New Orleans, Richmond and
Louisville have been active in an at,
tempt to secure a bank, but the COM
''iSeSS mas DccH IcIllIlUCQ DN Otn 'arS
that the South east OF the Mississippi
is still borrowing country Accept
ing this statement as true. some per-
sons in their prophecies have limited
their lists to ten. They declare that
this would allow for natural expan-
sion in the South and permit the es-
Enlistment Of bank there later.
fact that has not been emphasized
IN the unofficial reports is that the
feler; reserve board which is to
manage the new system has authority
under the law to change the districts
and the cities whenever il sees 1T,
although it seems at present unlikely
that the reserve board could change
the organization committees entire