The Washington times., 1914-01-08
REG|ONALBA
TO Be LOCATED.
|NWASH|NGTON
OFFICIALS SAY.
New System Probably Will Be
Inaugurated, With Institu-
tions in Nine of the Big
Cities.
By JUDSoN C. wELLIvER.


II is probable that Washington will
bs the seat of one OF the regional re-
serve banks provided under the Glass
< ven currency measure.
The new system is likely to be started
with nine Of these institutions, located
ss fellows: Boston. New York, Wash
s1gton, New Orleans, Chicago, st.
ouis, st. Paul, salt Lake City, San
rsncisco.
This. in brief. is the opinion OF the
people best posted to know the minds
Of the men who led in making the leg
Is alton, ard of those who have the
J eIIninary administration of it in
ensrge.
II these representations are correct,
Washington is almost certain to have
ore of the banks. It is stated that the
Treasury authorities feel that one in
tltution ought to be located here, and
t7at they have in mind to assign TO
to Washington institution the terri
Try comprising Maryland, District of
Columbia. West Virginia, Virginia and
North Carolina
Ample Capital Here.
This territory has banking capital
rlple to entitle it to one of the in
p tutious; that is, enough to give the
- sionaI bank minimum Of Si,OCo00G
{ pitsL A computation tentatively per-
red to mumine this point made
C. Gar that there would be sufficient
banking capitaI. even If a considerable
proportion of the State banks and trust
companies should not enter the new
s. stem; but in this territory it is he
lievec that most of these will come in,
snd that the Washington institution
III be assured at the start of COM
fgrtably more than the St,006,0O0 mini
mum. and with the State institutions
coming in, will bring this figure above
8 600 COO. possibly to $6,00O,G,6.
~ between Washington and Balti-
more, it is explained, Washington is
Iikely to be favored by the organiza-
-ion authorities because it is the Ma
lional Capital. The desire to have a
model institution Immediately under the
roservation of the Federal reserve
hoard has been the potent argcment in
ravor of Washington, and is likely to
rIore than counterbalance the fact that
Ialtimore is the more important COM
uercial and financial centSr.
Distribution Is Difficult.
As far as the proceedings of the or
sanitation committee of the Federal re-
-orve board have proceeded, they have
-Iggested some Of the difficulties Of
-.t operly distributing the regional
n-nks. 1t was pointed out today that
-rlF York must be provided with a
I.0werful bank, of large capital, because
r-om New York are carried on the
-ansactions in foreign exchange. and
= 50 the dealings in gold for import and
NpOrt. The reserve bank at New
ork will be expected largely to dOmi
ate these transactions: and in order to
10 so. il must be strong enough in capi-
Il and resources to bring together
e cry considerable volume Of foreign
The question whether the regional
ipsnk in each region ought to be
Strpnger, in actual capital, than any
her bank in the same territory. is
riousIy regarded For sentimental
eyons many students Of the question
II that it is important that the regions
u SO organized that the regional bank
shall in every case be possessed of a
larger capital than any other bank in
he territory. They point out that.
especially in dealings abroad, this con-
5tlon would establish a larger conf
dence in the new system.
Must Show Resources.
against this, it is urged by some that
& ne mere capital showing of the regional
anks will not be as important as their
e tatement OF resources; and il is con-
sded that a long time will have to