New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-06

diversity Of products contributing TO each
reserve bank II is one OF the most diff
ficult problems that the mind has ever
engaged in"
Mr.. Nanderlip. when asked what other
cities he thought should be designated
mentioned Boston. although ne added
New England could he served as salts
factorily through branches OF the New
York bank other cities lie mentioned
were San Francisco. Omaha or Mime
apoHs St Louis. Chicago and Atlanta.
Tie promised TO have data submitted
showing the flow of checks and drafts
from banks i'm one section of the country
10 another
Paul NJ. Warburg made the suggestion
that for the purposes OF operation the
country be considered as divided into
four districts. one OF the North Atlantic
Coast and the others the South, North
west and Pacific Coast. He thought
there should he three reserve banks in
the North Atlantic district and the rest
I'm the others.
Among the advantages Of this suGges-
ton, he thought. would he that the gov
crnor OF the Federal Reserve Board
would have charge of the gold and gen
eral exchange operations OF the banks.
while the vice governor could have direct
control OF the North Atlantic district,
which would be the most important OF
all. The three other Presidential ap-
pointecs could direct the operations OF
the other districts, leaving the Secretary
OF the Treasury and the Controller of the
Currency TO have general supervision OF
the entire system. Interest rates would
probably be uniform in the four divisions
as a result. and this he thought to be i'm
portant.
The smaller the number Of reserve
banks, according to Mr.. Hepburn, the
greater would be the beneficent effect OF
those established. The New York bank
he thought, should be the headquarters
for great section, and that bank should
compare favorably in capital with the
other banks of the city, and, If possible
be strong enough 10 dominate them.
1T would be foolish" he said. Ito eH-
pect the reserve bank TO fix the rates oil
discount and interest If il was smaii
compared 10 the others.
Chicago, San Francisco and New Or
leans were the cities he suggested as the
best possible central points for the rest
of the country. but for convenience. ne
thought, branch banks should be estao-
lished in these territories.
James G. Cannon, of the Fourth Ma
tional. had prepared beforehand a map
embodying his ideas New York, he said
81 ID,,1r NFhi
serve territory including New YORK.
PENNSYLVANIA, east of Altoona, the west
ern section OF Connecticut, Delaware.
Vermont and part of Massachusetts.
Branches. few in number. should be es-
tablished at distance which would allow
them 10 communicate with the centrai
institution in eighteen hours, the Tune
between the closing and opening of the
national banks.
Charles A. Conant. a financial writer,
declared that it was necessary to min
imize the number of institutions.
THE largest district" he said, should
be established in New York and should
include the entire country OF the North
east Atlantic Coast north of the Poto-
mae" He read statistics TO show the
financial strength Of this district.
The committee will resume Its hearings
tomorrow morning at 10 o'clock. and VIII
continue them for two days. From there
ii will go 10 Boston in a special car. after
which sixteen of the larger cities of the
country are TO be visited. In the organl-
cation committee is vested the work OF
designating and establishing the federal
reserve banks, and which the Federal
Reserve Board Will form whatever
branches may be decided upon.