New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1914-01-08
FAVOR GIANT BANK
TO STEADY MARKET
Witnesses at Reserve Board
Hearing Strongly for
This Plan.
NEEDED TO ASSURE
EUROPEAN BANKERS
Raker Thinks Institution Here
Should Take Care OF All
New England.

reserve bank in New York city. the
centre OF district so large that the bank
vould have n preponderance OF capital
o,or all crhers of the reserve system.
baa heen stated 10 he the only way In
which the existing currency system can
be changed TO prevent future money
disturbances and inspire the necessary
confidence Of European bankers.
This is the idea which has been CON
veved to the organization committee OF
the Federal Reserve Board in the three
DAYS hearing ended Yesterday. Although
q few of the foremost bankers have MIN
in1ized the necessity for mere bulk OF cap
ital as j. +. Morgan and Frank \. van
derlip have done. those representing the
rank and file" OF the city's biggest banks
have declared uniformly for huge IN
stitution I'm New York City with the
others only large enough to serve their
respective territories.
Both William McAdoo. Secretary Of the
Treasury, and David F. Houston. Secre-
tary of Agriculture. however, have lndi-
Gated that they see no reason why the
New York bank should be large. with
the first of the hearings In the cities OF
the country at an end, their inquiry ap-
parently is based upon the opinion tina.
the federal reserve chain of banks is to
act as a unit under the direction or the
Federal Reserve Board, of which Mr.. Nc
Adoo is to be chairman. and that the re-
sources OF all the reserve banks. rather
than of those of one. would be the feature
to give financial strength and dignity TO
the new currency system.
George F. Baker, jr.. yice-president oil
the First National Bank. and son OF the
chairman of the board of directors Of that
institution, was the first to appear yes
terday at the Chamber of Commerce be-
fore the organization committee.
Il think that the district around New
York where the reserve bank for the ter
ritory naturally would be located he
said, should be as large as is common
surate with a division OF the country into
eight districts. / think the New York
bank should take in all OF New England,
New Jersey and Pennsylvania. If that is
not possible, New York, New Jersey and
Connecticut, at least should be included
The principal reasons for large New
financial propositions in the North At
lantic States come naturally TO New York,
and that in times OF necessity one bank
in this district could act more promptly
Ethan banks in Boston, Philadelphia, Bal
timore and other places. ! don't think.
though, that the New York bank should
be so strong that it would weaken the
others"
The desire to have strong bank here
was shown not to be exclusively Wall
Streets when Joseph B. Martindale, pres
ident of the Chemical National Bank. APP
peared. The statement that the Chemical
National was purely commercial bank
suggested that Mr. Martindale's ideas
would be at variance with those of the
financial district. His stand for bank
of large capital. however. was even more
emphatic than those OF others.
The great financial centres Of this
country he began. ARE New York, Chi
cago and st. Louis. and they will remain
so. Strong banks are very necessary in
these cities, and they should draw from
a large territory.
Eight banks are too many. Since the
law provides for eight, however, tire 9TH
. ers might be located as well as anywhere
in Atlanta. New Orleans San Francisco,
Minneapolis or st. Paul. and Washington.
with the latter the headquarters of the
Federal Reserve Board.
THE New York district should include
all Of New England. New York, Penn
sylvania. New Jersey, Delaware and
Maryland. Boston and Philadelphia should
have branches Of the New York bank"
IL must remind you, Mr.. Secretary" he
said. that / have always been believer
in centralized power. New York. having
demonstrated its financial supremacy and
heing hound 10 hold IL must haue q larce