The Birmingham age-herald., 1914-02-14
Birmingham, Columbus and
Savannah Will Be
Heard Today
admit DISTRICT is
NOT SELF-SUSTAINING
Spokesman for Atlanta Says 1t Is
Necessary to Borrow Outside
Money-COmmittee Seeks
Self Reliant District

Atlanta. February 1s.-Arguments
favoring the establishment of the re-
eional reserve banks at Chattanooga
hnd Atlanta were presented to the or
enDixation committee of the federal
currency reserve system at a hearing
" hich began here before that body to-
Hay. The claims of Birmin CHAM, Column
,in and Savannah will be pressed to-
morrow, after which the committee VIII
cave for Cincinnati.
For the first time since its organiza-
tion the complete personnel of the COM
mittee today was in attendance. John
Skelton Williams, comptroller of the cur
rency, having Joined Secretaries McAdoo
hnd Houston here
1t was clearly brought out at the hear
ing that the committee shall endeavor
as far as possible to district the country
hat each reserve region will be absolutely
self-reliant. Secretary McAdoo said the
faw practically made it mandatory upon
the committee to do so.
Not Self Sustaining
The spokesman for Atlanta, who out
lined region comprising the states of
Georgia, North Carolina, South Caro-
lima, Florida, Alabama, Tennessee and
mississippi frankly admitted that this
District was not self-sustaining the year
ound. They said it was necessary. in
he fall of each year, to borrow from out
side sources. This aid, they explained,
kno ad to tpb RI
posits in the reserve bank.
Mr.. McAdoo declared that this was not
he purpose of the law; that it was en-
hcted in behalf of the entire people. and
was the purpose of the committee SO
10 place the reserve banks that they
might be of greatest aid to the people.
He added that if it We're necessary, under
normal conditions, for one region to de-
bend upon another, the very purpose of
he act would fail
Robert f. Maddox, vice president of the
american National bank of this city, ex-
planned to the committee the problem that
he entire south had faced ever since
he war. The growth and development OF
he section had required more capital than
could be locally supplied. The demands
for loans naturally were greater in the
south. he added, than in the older sec
:
n excess of loan demands.
Appreciates Conditions
Secretary McAdoo said the committee
bully appreciated this condition, and it
WAS to meet such conditions that he and
bis associated were striving so to dis
rict the country as to bring the south in
ouch with reserve funds which it could
Draw upon each year as matter of
light.
In the past, he said, you have been
dependent upon the whim of outsiders
(is to whether or not you would get your
money to supply your needs. especially
n the crop season. Can't you see how
important ii is. if we are to get the
ull benefit Intended by the new law, SO
10 locate the banks that each section of
The country will be self-sufficient, self
contained and self-reliant?"
Some of the speakers suggested it would
be difficult to SO district the south, just
BIT this time, as to find region wholly
self-relant and able to take care of its
bwn borrowings.
Members of the committee intimated
hat the problem of providing for the
south was one, of the most difficult
hey faced.
Branch Bank Sufficient
Several of those who testified today
we're asked If a branch reserve bank
y ere located in their city the demands
II the immediate vicinity would be
ully met. 1t was admitted that such
IN arrangement would suffice, provided
he branch banks had the same power
as the headquarters banks in each re-
sion.
Lay aside self pride and the pres
-ige which would come to your city
through the establishment therein Of
4 headquarters bank and would not
l. 4. Il
2ested Mr.. McAdoo, especially when
you know that branch bank has the
oower to draw in the headquarters
oank in your region, and that the
money is in the headquarters