The Sentinel=record., 1914-01-06
ORGANIZATION COMMITTEE OF CURRENCY SYSTEM BEGINS
 WORK IN NEW YORK.
GOTHAM WANTS A BlG BANK
Committee Evidently Does Not Pro- pose to Allow New York to Domin- ate the New Currency System with Monster Institution.

New York, Jan. 5-The task of set ing up machinery to put in motion the new banking system of the coun- try was taken up here today by the federal reserve organization commit tee, consisting of Secretaries McAdoo and Houston. On this committee un- der the new law devolves the resnon- sibility of mapping out regional re- serve districts and locating a bank in each. To aid it in reaching it's decision the committee today began here a series of hearings which will be continued three days more in New York and subsequently in other finan- cial centers of the country.
 A number of New Yorks leading financiers were heard today. It quickly developed that it proabbly would be impossible to satisfy both New York and the rest of the coun- try. Frank A. Vanderlip, president of the National City Bank, said he thought the committee would find it impossible to work out plan that would fulfill all requirements. Tt presents an almost insolva5le problem" said Secretary McAdoo, when Mir Vanderlip had given his opinion as to the manner in which the regional reserve districts should i be drawn up.
 q think that is what you are fac ing" said Mir. vanderlip. Tt is one of the most difficult problems think that ever faced Oversight and con- trol spell the whole story of this law. l If we get the proper oversight and control, the law will work in spite of its defects. If we do not, it will not work"
 The majority of the amendments favored the creation in New York of regional bank of such magnitude that it would absorb 40 to 50 per cent of the $106, ,000 GOO capital available for the entire system of the country. Such district would include New York, New England. New Jersey, Del aware and part of Pennsylvania Secretary McAdoo suggested that such huge bank here would over shadow the other banks, of which, according to the law, there must be at least seven. The reply was made shat bank of such size was needed here in order that 1t might command the respect of European bankers and hold its own with the great individ- ual banks of New York.
 MT. Vanderlfp's idea was that the importance of New >ork banks would give them such a position that it was of little moment how much outside the metropolitan district was includ- ed
 Dr. H. Parker Willis of New York. who was adviser of the banking and currency committee of the House of Representatives while the currency bill was before it, was the chief op- ponent of the plan for the creation of huge bank here. Dr. Willis said that to allot to tine New York district 1 40 or 50 per cent of the working capi- tai of the system would be out of i harmony with the purposes of the 1 law
 There are no unmistakable consid- eratioes," he said, which dictate that one bank should be vastly superior in powers. The capital of these banks is relatively a matter of minor i'm portance."
 Secretary McAdoo asked the opin- ions of witnesses as to what cities other than New York should be chos- en for regional reserve banks. The common opipions was that if the New York area be restricted to this imme- diate vicinity, bank should be es- abolished in the East, in Boston and Philadelphia or Washington. Other cities referred to most frequently were Chicago. St. Louis, San Fran cisco, Cleveland or Cincinnati, Den yer and Atlanta.