Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-01-14
Advantages of Nations Capital
Presented by Committee
of Business Men.
AN INSTITUTION HERE
OF VALUE TO THE SOUTH
Suggestion That Washington Be
Made the Center of Federal
Reserve District.

ton today appeared before Secretary
McAdoo of the Treasury and Secretary
Houston of the Department of Agri-
culture. comprising the federal reserve
bank organization committee. to urge
that one of the regional reserve banks
be located in the District of Columbia.
The principal argument advanced by
the speakers in favor of Washington
is that if located in the National Cap
ital a regional reserve bank would be
under the direct supervision of the
federal reserve board. 1t was urged
that Washington be made the center of
federal reserve district. including a
part of Pennsylvania, part of New
Jersey and Delaware, Virginia, West
Virginia. North Carolina and the Dis
Irict OF Columbia.
Questions were asked by Secretaries
Houston and McAdoo as to whether the
interests of Washington would not be
served just as Well if the regional reserve
district We're located in Baltimore or
Philadelphia and a branch bank eStab-
iished here. Secretary McAdoo explained,
however. that the organization committee
had not yet reached any conclusion
Representatives of Baltimore We're be-
fore the committee this afternoon
Those Who Appeared for This City.
were District Commissioner Newman, w.
II. Saunders, D. ]. Callahan, r. P.
Andrews, H. Fl. Mckee, John Joy Edison.
John B. Larner, A. G. Clapham. George
w. White Charles ]. Bell, B. F. Saul,
John Poole and w. H. Singleton. John
SHELTON Williams. assistant secretary OF
the Treasury, and Senator r. L. owen
of Oklahoma were also present.
Secretary McAdoo opened the hearing
by pointing out that the only question
10 be discussed was the location of the
regional reserve banks.
II. H. Mckee. representing the Clear
ing House Association of the District,
vas the first to be heard After few
preliminary questions from the MEM
oers of the committee, he gave detailed
account of the arguments of the WASH
-ngton business men.
Mr. McKee's Argument.
MIR. Mckee said. in part:
The powers granted the federal re-
serve board indicate that it will have
to be thoroughly acquainted, not clly
with the operation of the system as
a whole but with many of the domestic
details of each federal reserve bank.
Therefore. if one of such banks be
located in Washington directly un-
der the vision of the federal reserve
board. that supervisory authority can
is being carried on, note how the bank
serves the purpose for which it is in
tended and decide from personal con-
tact and observation what rules and
regulations are needed to bring all
such banks up to d high state of efh-
cheney.
The system that is about to be put in
operation is a new and untried one among
the great nations of the world. Its opera
ton will be watched keenly by foreign
powers. Its success and We assume that
il will be successful to a marked degree,
will inspire the confidence of other ma
ions in our banking and monetary sys-
tenn Therefore, a federal reserve bank,
frought to a high state Of efficiency un-
Ter the direct supervision of the federal
serve board here in the Capital city
y the nation. can be watched, studied.
and its efficiency appreciated by the Tor
.igr representatives stationed here. as
well as by members of Congress and nu-
rnerous visitors of prominence from other
parts of our country who come to Wash
ington to study and learn by personal OBJ
servation something about the machinery
Of government. Such bank in wash
inSton would be continuous object les
son to students of finance.
Federal Authority Supreme Here.
The District of Columbia is federal
territory in which the power OF the fed
eraI government is supreme and exclu-
sive. No state laws conflict with the
statutes enacted by Congress and no ira
ditions of any right or power save that
OF the federal government intervene to
raise question of doubtful authority.
In short, there is only one jurisdiction
here. one central source of power Legal
questions which may arise in connection
with the work and powers of the federal
reserve bank located here can be sub
mil tod 70 no.
pealed to the Supreme Court of the Unit
ed States and precedents established
thereby for the guidance of the conduct
of other federal reserve banks.
Mindful of the object to be attained
by the designation of a federal reserve
city we submit plan for federal re-
serve district, composed of all that part
/ OF the state of Pennsylvania east of the
18th meridian of longitude; all of that
part of the state Of New Jersey south OF
the 10th parallel of latitude, and the
states of Delaware. Maryland. Virginia
| West Virginia and North Carolina and
the District of Columbia. This distric,
TO be tributary to the federal reserve
bank of Washington.
This territory has population of. ap
proximately, 12.O00,Oo0 persons. Nearl.
every form of industry. trade and com.
merce is carried within its borders
1t has three large seaports, the tota
commerce of two of which, viz, Philadel
phia and Baltimore, amounted to nearl.
III lJt.b. II Is ITdtefSeQ II
every direction by not less than eigh
large trunk line railroads and man.
smaller lines which bring every city
town and village within easy reach o
Washington.
Total Of Bank Resources.
The capitalization of the nationa
banks located therein is approximatel.
Sl20OOO.OOO; their surplus. Sl23,O00,OOl
and total individual deposits S777, ,OO.OU
"A federal reserve bank in Washington
based on the tributary capital and de
posits mentioned, would have s14,OOO,CO
subscribed capital. s7.Oo0.OOO paid-in cap
ital and $4O.O00.OOO deposits.
State banks and trust companies il
the territory mentioned have 100
capital and surplus and $72O.OO0O0O de
posits, and as some, il not many, of sue
banks will enter the. system, the capita
and deposits of the federal reserve ban
of Washington will be increased to tn
extent that such banks accept the provi
sions of the law
Figures compiled from the publishe
reports of the thirteenth census sho
that the territory mentioned is rich
agricultural, mining and nanufacturin
(Continued on Ninth Pagel