The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1914-01-24
LARGEST BANK WILL
enter RESERVE
SYSTEM
OFFICIALS OF NATIONAL CITY OF
NEW YORK CAUSE SURPRISE
BY ANNOUNCEMENT.
LARGE INSTITUTIONS COMING IN
But Few Banking Houses Of Maeni-
tude in Financial Center Have Not
Applied for Membership-Hearing
At Kansas City Concluded.

New York, Jan. 24.-That the Ma
tional City Bank, the largest insti-
tuition Of it's kind In the country, in
all probability will enter the new fed
eral reserve system, was learned
from officials Of the bank. This put
at rest rumors recently current to
the effect that the National City Bank
contemplated surrendering it's federal
charter and merging with the Corn
Exchange Bank, the largest state in.
stitution. Such an institution would
create a state bank of which the COM
bined resources probably would over
shadow any regional reserve bank
that might be established at this GEN.
ter.
1t is probable that no official state
ment will be made until the return Of
Frank A. Vanderlip, president of the
City Bank, who is in Paris comforting
with James Stillman, the chairman
of the board of directors.
Financiers not affiliated with the
City Bank expressed surprise when
informed of its intention, chiefly be-
cause of the opposition to the cur
rency bill maintained by some of its
leading officials. Moreover, the un-
dertakings said to exist between the
bank and the Treasury Department
at Washington gave rise to the belief
in some quarters that the bank was
considering seriously the organization
of an institution which would enable
it to become formidable competitor
of the new reserve system.
The difference between the City
Bank and the Treasury Department
began with the expulsion from the
department of a woman employee oi
the bank who for years gathered sta
tistical matter in the department for
the City Bank.
That the City Bank strongly favor
ell the so-called Aldrich central bank
idea was indicated by President Van
derlip before the national legislators
Later, as the Owen-Glass bill assum
ed more definite shape. he expressed
the opinion that It was so per cent
good" while stiff ob1ecting to some
Of it's provisions.
1t was the opinion of other bankers
that the attitude of the City Bank as
sures the entrance OF virtually all
other national banks Of Importance
In this section OF the country, where
opposition to the law has been mos
pronounced. Talk Of a revolt from
the national system, by reason of the
enactment of the new law. has con
verged largely around the City Banl
! and other banks with which 1t was
known to possess influence through
stock ownership by officials of the
bank and ,interlocking directorates
Some of the largest national banks o
this city already have applied fol
membership, including the Chase Ma
tional, the Park National, the Fourtl
National and the National Bank o
Commerce. This leaves very few
banks of the first rank yet to be hear,
from.
| One OF the chief causes Of opposi
tion on the part Of New York bank
TO the new federal system has beel
the belief that they would be depriy
ed Of the power of keeping funds o
out-of-town institutions, which aggrs
gate hundreds of millions of dollar
and the handling Of which has bee
extremely profitable. Under the neV
system, these funds will be diyerte
to the national banks. ~
Opposed to New Orleans.