Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1914-01-12
CLOSING DAY OF
BANK HEARINGS.
Second Session on Question
Of Locating a Federal Re-
serve Bank in Boston-.An-
alize Division of Country
Into Districts.

Boston, Jan. 1.-THE second and
closing days session of the hearing on
the question of locating a Federal Re-
gional Bank in Boston was held Satur-
day by Secs. McAdoo and Houston at
the Chamber of Commerce, with only
a small attendance present.
The first witness, G. w. r. Hartman,
discussed in an analytical spirit the
division of the country into districts
for bank purposes under the new cur
rency law, advocating a much simpler
method than that used by the express
companies or the parcel post, each of
which he said required a volume near
" as large as a city directory to work
the system.
He showed a set of maps in which
the country was divided into $50 sec
tons and then he analysed the district
plan of Charles p. Blynn, Jr. He ar
sued that states are divided on polit1-
cal lines. but that trade movements are
governed by geographical considera-
tions, involving rivers, lakes, noun
taii!s.
After declaring, for example, that be-
tween Montreal and New York City
England, he continued:
In making my plans, I have arriv-
ed-discarding the methods of divid-
ing on state lines-at nine regional
groups, based on the transportation in
fiuences to which each region is sub
ieet. 1t is possible to eliminate all
guess. BY plotting on your maps your
information as you receive 1t, you Will
be able to see the mountains of finance
as we'll as the mountains OF nature.
the depressions of the country as well
as the blank spaces in the money
world"
Mr.. Hartman said that he was anx-
ious to eliminate guess, to appeal TO
fair play, to avoid any such mistake
as the Minnesota rate decision. But he
said never a. word on the direct SUBJ
ject of a bank in Boston.
Gordon Abbott of the Old Colony Trust
Co. called attention to the fact that 1t Is
practically impossible to keep the spirit
of the act and to make eight banks ap-
proximately of the same size without
placing one in New England. II none
were placed there the great bank in New
York would mean six very weak ones
McAdoo he said he did not think 1t prac-
ticable to make all the banks equal IN
size, but thought that so far as 1t was
practicable it should be done
w. D. Higgins also submitted plan.
His figures were all from the controllers
report for 1912, comparing them with the
figures for 1892.
He placed Connecticut with the New
York district, but upon reflection, he
said, would amend this so that only the
western part of Connecticut would be In
the New York district.
w. r. whiting started in by declaring
that he believed the regional bank for
New England had been decided upon be-
fore the committee came here at all, and
the hearing had been a waste of time.
He gave way to E. Moody Boynton,
who said In part
There has never been any question
that here one of the largest banks of the
republic will be established and expand
Here where the wealth and the popula-
ton equal the Dominion of Canada,
where 81 600, OOO, 900 of investment wealth
and larger amount of business unite
from six states in this great commercial
metropolis, they should all be united with
one great regional bank
Pres. John NJ. Graham of the Interna-
tional Trust Co. asked whether If his
bank comes into the system any change
in name will be necessary
Sec McAdoo said that that subject had
not been considered, and up to now no
change is necessary
Charles G. Allen of the Portland Ma
tional Bank said he wished to see bank
in Boston rather than one in New York
At present he collects through both AL
bany and Philadelphia, but should ex-
pect to change this if bank is placed
in Boston.
He would not agree that bank in New
York would improve the present situa-
ton.
The hearing was closed.