The Washington herald., 1914-04-04
RICHMOND ON THE MAP.
Newspaper Comments on Selection Of
Reserve Bank Cities.

B. C. Forbes. in New York American.
The start made by Messrs. Williams,
McAdoo and Houston in lnaugurating
the country's new banking system Is not
altogether inspiring. For these main
reasons:
1. Too many reserve cities-twelve-
have been selected.
2. Intimations are made officially that
this number-the maximum allowed un-
der the present law-will be increased
later.
.. The inclusion Of Richmond. the
home city OF John Skelton Williams, and
the exclusion OF more important centers
in that territory. reveals petty personal
politics rather than statesmanship.
Financial interests have complained
ever since Williams went to washington
that the Treasury Department has been
run. not primarily for the benefit OF the
| country, but on partisan, pin-heeded
lines. dictated by personal considerations.
| Richmond is NOT natural reserve
city. Its clearings are not half those oil
New Orleans, for example, and are Tar
below those OF Galveston and Houston.
Moreover. It is not a great railroad cen
ter. 1t is not booming industriousiy like
so many other Southern cities. Now,
however. that Mr.. Williams has succeed
ed In LAYING an enormous territory un-
der tribute TO tits reserve banks capt.
/ tai will be much larger than several
others-Richmond may prosper at the ex-
pense of neighborIng cities not fortunate
enough to have a favored son at court.
The organization committee errs
grievously in encouraging agitation for
increasing the number of reserve banks.
Its break will foment constant clamOr
for the realignment Of the country's re-
serve districts. Besides the principle Is
wrong WRONG in capital letters.
My firm belief is that the course map
ped out by the present powers-that-be
can lead to only one elimination, namely,
| the abandonment of the multiplicity of
district reserve banks and the establish
ment Of one commanding central bank
That is the scientific solution OF our
| banking problems. and sooner or later
science must triumph over politics and
partlsanship.
| Meanwhile the regional system will be
given a fair trial. Even those who op-
posed IL most vigorously will rally to
its support. Several changes will be-
come necessary very shortly after the
| machinery has been started-of that there
Is no doubt among those who can see
clearest and farthest-but the best will
May ! let the cat out Of the bag
as to New York's intentions?
The aim of Washington. you know.
| has been to put New York under its
| thumb banl1ngwise. The whole idea
has been to so draw up the new rules
that the Federal Reserve Board would
have the whip hand. 1t will appoint a
| representative to oversee the running of
each reserve bank. But the local bankers
and business men on the bank board
| will have the naming Of the official
| who will actually run the bank, and
New York is to appoint to this position
| one of its very ablest bankers who
will not be a figurehead. but will be
| the real head OF the institution. WASH
| inGton's representative will. in practice,
| be chiefly ornamental.
John Skelton Williams may put Rich
mOnd on the banking map. but neither
he nor any one else can wipe the me-
| trOpolis OFF il.