Evening star., 1914-04-11
CRITICS WILL ANALYzE
STATEMENT BY BOARD
Renewal of Objections to the Choice
of Reserve Bank
Districts.

Members of Congress and others who
have criticised the federal reserve bank
organization committees selection Of
bank cities and its definition of reserve
districts were discussing today the state
ment of the committee in defense Of its
position. They plan to analyze the state
ment before making any further efforts
to have the committee reconsider its Sc
lections
Considerable opposition has developed
in Congress and from representatives in
cities which sought reserve banks but
were unsuccessful in their efforts to get
them. The committees statement was
issued in reply to these criticisms. Mem
bers of the committee hoped today that
their answer would convince critics that
they acted in the best interests of the
country in their choice Of the bank re-
serve cities.
Reasons for the Selections.
The reasons which actuated the COM
nittee in selecting Atlanta and Dallas
against New Orleans; Richmond in pref
erence to Baltimore. and Kansas City in
stead of Denver. Omaha and Lincoln,
Neb., were set forth in great detail in
the statement.
Discussing the choice Of Richmond, the
committee pointed out that banks in
South Carolina, North Carolina and Vir-
ginia preferred that city to Baltimore
or Washington, and declared that it was
thought unwise to locate another re-
serve bank close to the one decided upon
for Philadelphia 1t was pointed out
ALSO that sworn statements to the con-
troller of the currency showed January
! 13, 1914, that the national banks of
Richmond were lending twice as much
| money in the district eventually created
| as Baltimore and Washington combined.
In defending its selection of Richmond
rather than Baltimore or Washington,
| the committee said. in part:
Preferences by States.
North Carolina, South Carolina and
| Virginia preferred to be connected with
Richmond. West Virginia was divided in
| its preference; Maryland and the Dis
trict of Columbia, of course, desired Bal
timore or Washington. In the poll of
| banks made directly by the controller S
! office Richmond received more first
| choice ballots than any other city in the
| district, 167 against 12S for Baltimore, 30
| for Pittsburgh. % for Columbia. s. G.;
| 81 for Cincinnati and % for Washington.
D. c. OF the remaining y votes. -
| were for Charlotte. n. c., and for New
| York. Leaving out the states of Mary
! land and Virginia, Richmond received
| from the rest of the district three times
| as many first-choice votes as were cast
for Baltimore.
| District No. is composed of the states
of Maryland, Virginia, West Virginia lex
cept four counties). North and South
Carolina and the District of Columbia.
| These states have always been closely
| bound together commercially and f1nan-
| cially, and their business dealings are
| large and intimate"
Tabular Showing.
| By tables the committee shows that the
/ capital and surplus, individual deposits
| and loans and discounts of the national
banks of Virginia, including Richmond.
largely surpass the national banks of
Maryland, including Baltimore.
| 1.-THE capital and surplus of Virginia
national banks 1t said, ''are 80 per cent
greater than the capital and surplus OF
the national banks of the states of
Louisiana and Mississippi combined. in
. GLIDING the city Of New Orleans. while
the loans and discounts by the national
banks of Virginia are more than three
times as great as the loans and discounts
in the national banks of Louisiana, in
cluding New Orleans