The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-02-18
RESERVE REGIONS SELFREuANT
THAT IS IDEAL FOR DISTRIRU.
TlON OF REGIONAL SYSTEM
TERRITORY.
Many Towns CT Importance Will
Not Have Headquarters, But Will
Be Supplied With Subsidiary In
stitutiOns-Atlanta and Chattanooga
Present Their Claims

Atlanta Ga, Feb. 13.-ArgumentS
urging the establishment Of regional
reserve banks at Chattanooga and At
lanta were presented to the organiza-
tiOn committee of the federal cur
rency reserve system at q hearing
held here today. The claims Of Bir-
mingham, Columbia and Savar lah
will ne presented tomorrow, after
which the committee will leave for
Cincinnati.
For the first time since it's organi-
cation the complete personnel Of the
committee was in ATTENDANCE, John
Shelton Williams, comptroller Of the
, currency. having joined Secretaries
McAdoo and Houston here.
1t was clearly brought out at the
hearing today that the committee
will endeavor, as far as possible, to so
district the country that each re-
serve region VII be absolutely self
reliant. Secretary McAdoo said the
law practically made it mandatory
upon the committee to do So
! The spokesmen for Atlanta, who
outlined a region comprising Georgia,
North Carolina, South Carolina, Flor
ida, Alabama, Tennessee and Mis-
sissippi, frankly admitted that this
district was not self-sustaining the
year round. They said Il was neces-
sary in the fall of each year to bor-
row from outside sources. This aid,
they explained, was expected to come
through fei-ral deposits in the re-
serve bank.
Mr.. McAdoo declared that this was
not the purpose of the law; that it
was enacted in behalf OF the entire
people, and it was the purpose Of the
committee so to place the reserve
banks thae they might be of greatest
aid to the people. He added that if il
were necessary under normal condi-
tions, for one region to depend upon
another, the very purpose of the act
would fail
Robert F. Maddox, vice president
of the American National bank OF
this city, explained to the committee
that the problem the entire South had
faced ever since the war was that the
growth and development Of the sec
ton had required more capital than
could be locally supplied. The dems &c
for loans naturally was greater in the
South, he added, than in the older
sections Of the country where deposits
were in excess Of loan demands.
Secretary McAdoo said the commit
tee fully appreciated this condition
and that it was to meet such condi-
tons that he and his associates were
striving SO to district the country as
to bring the South in touch with re-
serve funds which it could draw upon
each year as a matter OF right
In the past he said, you have
been dependent upon the whm Of
/ outsiders as to whether or not YOU
would get your money to supply your
needs in the crop moving season.
Can't you see how important it is if
we are TO get the full benefit intended
/ by the new law, to so locate the banks
that each section of the country will
/ be self-sufiicient, self-contained and
self-reliant""
Some of the speakers suggested il
would be difficult to district the
country just at this time so as to
find region wholly self-reliant and
able to take care OF its own borrow
/ ings.
Members OF the committee intimat-
ed that the problem of providing for
the South was one Of the most diff
cult they faced
Several Of these who testified to-
day were asked whether branch re-
serve bank located in their city would
fully meet the demands of the i'm
mediate vicinity. 1t was admitted
flee, provided the branch banks had
the same power as the headquarters
bank III each region.
Lay aside self-pride and the pres
tiGe that would come to your city
through the establishment therein of
II headquarters bank. and wouldn't
the branch bank meet your needs"
suggested Mr. McAdoo, Especially
when you know that branch banks
have the power to draw on the head,
quarters bank in your region and that
the money is in the headouartcrs
haAk, whether it be located in Wash
ineton or Raltimore?"
che secretary added that he men
toned these cities only for the sake
Of argument.
l'y their questions and remarks 20
witnesses members OF the committee
ma le 1t plain that one of their prob