The sun. [volume] (New York [N.Y.]) 1833-1916, 1914-01-06
reserve bank in New Orleans. for the

reserve bank in New Orleans. for the
reason that the territory 1t would serve is
of similar character in its agriculture ana
industry. The bank would annually feel
a concentrated demand upon its resources
that would make it's position insecure.
Mr.. Nanderlip. applying this principle TO
New York, said that as New YORK IL
practically the United States SO far as
representing all business activities is con-
cerned he did not think II was necessary
to give New York large extent OF ter
ritory or capital in order to get diversity.
Paul NJ Warburg suggested that the
country should be so divided that its eight
or more reserve banks could be operated
in four general groups Mr.. Warburg
said that the minimum number OF eight
banks was highly desirable. He said that
In view Of the thin resources Of the West
II would be necessary In order to obtain
balance among the banks to break up the
northeastern territory into three sections
consisting of New England. New York
and Pennsylvania
The desirabiiity Of having concentrated
strength could be secured. thought Mr..
warburg, in spite OF thus weakening the
strength of the united Eastern section by
n method OF administering the banks In
four zones, the first including New York,
New England and Pennsylvania. the
second the two Southern districts. the
third Chicago and the middle West and
Mr. Wlrburg outlined system or ad-
ministration to secure cohesiveness and
effective mobilization by which the gov
ernor of the Federal Reserve Board should
supervise the gold and exchange opera
tons OF the banks the vice. governor have
under his special attention the North At
lantic regional bank by far the most i'm
portaM one. the other three Presidential
appointecs administer each OF the three
remaining groups OF banks and the two
Cabinet officers on the board have general
supervision.
Most Of the discussion OF the day CEN
tired on the territory the New York reserve
bank should include. All but one banker,
William Flanagan OF Mount Joy. y. j..
who wanted New YorN skipped entirely
as reserve bank centre. agreed that
New York should he the centre of this
district. General agreement was also ex-
pressed that eight should be the minimum
number of banks.
Charles A. Conant advocated the most
sweeping proposal for the New York In.
stitution In a plan for one bank to take
In all the territory northeast OF the Po-
tomac. including Pennsylvania, with
branches ut Boston and Philadelphia.
Mr.. Hepburn advocated one strong bank
for the North Atlantic States. but said
that II this territory had to be divided
II would be desirable to include Pennsyl-
vania with New York and make New
England separate bank territory.
Mr.. Hemphili thought that II the North
Atlantic region had to be divided. three
divisions were desirable Mr.. Virgin sug-
gested reserve banks in New York. Chi
cago. St Louis. one in the South. one in
| the Northwest, one In the Southwest one
| on the Pacific coast and one in the terri.
tory between Chicago and New York.
Mr. Cannon advocated the principle of
accessibility to territory served In divid-
| ing the districts. with no reserve city more
than fifteen hours distant from any
| part of As territory. He limited
the New York district to New York. New
| Jersey. the western halves OF Connects
cut, Massachusetts,. Vermont and Penn
| sylvania east OF Altoona. He said that
| "A bank in this territory would have an
approximate capital of S35. O00. 900.
| Mr.. Nanderiip thought "A bank at Bos-
ton would be necessary. and though he
| had not made UP his mind on other