The herald and news. [volume] (Newberry S.C.) 1903-1937, 1914-01-09
COMMITTEE STARTS HEARINGS.
witnesses in New York Tell Houston
and McAdOo What They Desire.
Wish Separate System.

WISH separate system.
New York, Jan. 5.-The task Of
setting up machinery to put in mo-
ton the new banking Of the country
was taken up here today by the fed
eraI reserve organization committee,
consisting of Secretaries McAdoo and
Houston. On this committee, under
the new law, devolyes the responsible
ity of mapping out regional reserve
districts and reaching its decision the
committee today began here a Sc
ries of hearings which will be con-
'tinued three days more and subse-
Quently in other financial centres.
A number of New York,s lead
ing fnanciers were heard to-day. 1t
quickly developed to-day that it pro-
badly would be impossible to satisfy
both New York and the rest of the
country. e. A Vanderlip, president
of the National City bank, said me
thought the committee would find it
impossible to work out plan that
would fulfill all requirements.
Hard to Solve.
cit presents almost an insolvable
problem said Secretary McAdoo,
when Mr.. Vanderlip had given his
opinion as to the manner in which
the regional reserve districts should
be drawn up.
81 think that is what you are fac
ing said Mr. Vapderlip. "It is one
OF the most difficult problems, 1
think, that I ever faced. Oversight
and control spell the whole story of
this law. If we get the proper over
sight and control, the law will work,
in spite of it's defects. If we do not,
it will not work
The majority Of the witnesses ia
vored the creation in New York Of
regional bank of such magnitude that
it would absorb 40 or so per cent. of
the s1O6,OO0,OOO capital available for
the entire system of the country. Such
district would include New York,
New England, New Jersey, Delaware
and part if Pennsylvania.
Would be Too Big. i
Secretary McAdoo suggested that
such a huge bank here void over
shadow the other banks, of which, &C
cording to the law, there must be at
least seven. The rapiy was made that
a bank of such size was needed here
in order that it might command the
respect Of European bankers ard hold
its own with the grea; individual
banks in New York. Mr Vanderlip's
idea was that the importance of New
York ba.lks would give them such a
position that it was of comparatively
little moment how much territory out
side the metropolitan district was in
cluded.
DR.. H. Parker Willis of New York,
who was adviser Of the banking and
currency committee of the house
while the currency bill was before
it was the chief opponent Of the plan
for the creation of huge bank here.
DR.. Willis said that to allot to the
New York district 40 or so per cent.
Of the working capital of the'new sys-
TEN would be out Of harmony with
the purposes of the law.
Capital UnimpOrtant.
There are no unmistakabIe con-
Biderations," he said, which dictate
that one bank should be vastly supe-
ror in powers. The capital Of these
banks is relatively a matter Of minor
importance
Secretary McAdoo asked the opin-
ions Of witnesses as to what cities 9TH
er than New York should be chosen
for regional reserve banks. The COM
mon opinoin was that il the New York
anm hs .F@tFsatad to this z1Rrnedlata