Evening star. [volume] (Washington, D.C.) 1854-1972, 1914-01-06
Secretary McAdoo DiscIoses
His Views of Suggested Re-
ui0naI Reserve District.
PLAN WAS RECOMMENDED
BY GOTHAM FINANClERS
Progress of the Hearing on New Gov
eminent System-Merchant
Gives Views.

NEW YORK. January 6.-Although
Secretary McAdoo Of the Treasury De-
partment said today that he had for
mulated no views regarding the divi-
sion of the country into regional re-
serve districts he gave strong init
nation that he was opposed to the
creation in New York of huge re-
gional bank, embracing most Of the
northeast and 40 or SO per cent of the
country's banking power. Such a bank
was advocated yesterday by New. York
bankers at the hearing of the federal
reserve organization committee, COM
posed of Secretary McAdoo and Secre-
tary Houston of the Department of
Agriculture
IF we put. 40 or 80 per cent OF the
banking power into New York dis
trict." said Mr.. McAdoo, I'VE would be
obliged under the law to divide the
remaining territory. into seven dis
tricts that will be comparatively lean"
Mr.. McAdoo said the establishment of
two or three banks in the northeast
as, for example. at New York. Boston
and Baltimore-would not dislocate the
closely interviewer business and financial
relations of the northeastern territory.
On the other hand, he said, establish
ment Of more than one bank would
facilitate the course of exchange and
mercantile transactions between these
districts. But. the Secretary added. he
had no definite views. and did not wish
his remarks to be construed as meaning
that the committee had decided for or
against a large northeastern district.
Views Develop at Hearing.
Mr.. McAdoo's tentative ideas were
brought out in his examination at today's
a ring n he of irving It
Bush, chairman of the currency commit
tee of the Merchants Association Of New
York. Mr.. Bush said the business and
financial connections of all cities in the
northeast with New York were SO close
that it would be advisable to include this
territory, or most of 1t. in one district.
He suggested that the western boundary
be placed far enough west to include
Pittsburgh and Buffalo.
Boston, he thought, could be served
better by being included in the New
York district than by having regional
bank Of its own. and he believed that
unless the committee decided to consti-
the northern boundary of the New York
district should extend to the Canadian
border. The southern boundary should
extend to include Wilmington. Dell Mr.
Bush said. II bank We're established al
Baltimore. Otherwise this district should
include Maryland and the District OF
Columbia.
Another Division Suggested.
Edward E. Page. a New York mer-
chant, thought that the districts should
be divided according to the classes of
mecantile paper handled in various sec
tions Of the country.
AS the regional banks are to redis-
count PAPER. he said IT woull he necec.
sary for the governor of each bank tc
be familiar with the paper Of the district
in which his bank operated He there
fore suggested that the regional banks be
located at points which are recognized
centers for the handling of mercantile
paper originating in various sections OF
the country. He named ten cities in
which regional banks might be estab-
lished-San Francisco. Denver. st. Paul
or Minneapolis. Kansas City. St Louis.
Chicago. Atlanta, Boston, New York and
Baltimore.