The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1914-04-07
NO POLITICS IN CHOICE
of Bryan, James and
Shafroth Failed To Land Be-
cause Competing Cities
Were Better Qualified
Choice of Richmond AssaiIed
and St0utIy Defended
by the Associated Press }

by the Associated Press
Washington, D.. c., April 4.-Mem-
bers Of the Reserve Bank |
ton committee continued silent today. |
although criticism of their selection |
OF reserve cities and their division Of
the country into banking districts still
was heard in Congress.
No official legislation was forthcona-
inS in defense of the committees
choice of cities, but an unofficial view
here was that some of the criticism
has a political tinge.
Defenders Of the de-
clared tonight hat no matter who had
been charged with the responsibility
OF setting up reserve districts, they
would have reached fundamentally
the same conclusion as the commit
tee.
Apparently the most vigorous crit
ciSm has been directed toward the
choice Of Richmond, Va, in prefer
ence to Baltimore or Washington, and
Of Atlanta instead of New Orleans.
1t was said, however, BY those familiar
with the committees deliberations,
that the trend OF trade from the
toward New Orleans, and that in on
sequence Atlanta is more strategically
located for a reserve bank.
Richmond Choice Defended.
In defense of Richmond, it was ar
gued hat closer business relations
with the South prevail there than IN
Baltimore or Washington. One fact
that was brought out tonight was that
a poll of all the National Banks which
had signified their intention of en-
tering the system was taken into on
I sideration in naming the cities. In
every district but one a majority OF
the banks favored the city chosen by
the committee as a reserve center.
Some surprise was expressed by the
critics who dwelt upon the fact that
the New York district not in
clude Jersey City and Newark anC
some nearby Connecticut points. L
was recalled tonight however that the
fact that these cities are put in thu
Philadelphia u Boston district viii
; not prevent their having about ths
: same relations with banks in New
! York as at present. About the onl,
: difference will be hat their reserv,
! funds will not be kept In New York.
i BulWark Against Panic.
In this connection 1t was said tina
: under the present system more thai
. $500, 600, 900 of reserves from small
> banks throughout the country is usu
ally on deposit IN tour banks in fou
great cities. In times Of stress-a
in 14O7-much Of this great sum i
out in all loans. When d crasl
= comes, it was argued, the small bank
are likely to find themselves unabl
a to get their reserve funds from thes
cities.
d 1t was largely to cure such a con
n dition, 1t was said. hat the district
g were designed to be as nearly alike i
a Capitalization Of reserve banks as pos
# sible with the idea that there shall b
. no such conceptration Of reserves
II the future.
r Politics Not Considered.
e The charge that the COMMITTEES va
t piaying politics in its selection wa
Al met tonight with the assertion that
) politics had been a factor the CON
r m:ttee would have been inclined I
give a bank to Lincoln, Neb.. TIA
home Of Secretary Bryan, to Louis
Vile. where Senator James wa
anxious to see one located. and I
a Denver, favored by Senator ShafEotl
ID who gave aid to the administration
,e the fight for the currency act IN Cor
re gress.
A. No formal protests against the con
st mittee's selections reached the Trea.
ury today. but several kilograms wei
received from commercial organic
,e lions and business men in cities whIc
OF failed to get banks. commenting Il
- oHoSo0