The evening world., 1914-01-06
M'AD0O AGAINST
PLAN TO LOCATE
GREAT BANK HERE
Won't Permit New York'S
Institution to Overshadow
Other Reserve Stations.
BANKERS MAKE PLEA.
Propose Plan to Have Bank
Here With Half Banking
Capital of Country.
BANKERS MAKE PLEA.

That the eastern section % tho
United states will be divided into three
reserve bank regions was strongly In
tinated this morning when the second
day Of hearings by the Organization
Committee OF the Federal Reserve
Board. provided for under the now
Currency law, was begun. Repeated
questions by Secretary OF Treasury
McAdoo and Secretary OF Agriculture
Houston showed plainly that the Or
sanisation Committee Is not favorably
disposed TOWARD the plan of establish
ing In New York u great reserve bank
with enormous capital and territory
which would overshadow the other
seven regional banks.
The hearing was resumed at 1910
o'clock IN the Chamber Of Commerce
Hell. the attendance Of bankers being
lees than on Monday. owing to time
designations made by tho committee for
the benefit Of those who will present
their views.
irving r. Bush, Chairman OF the FL
nance Committee Of the Mercantile A..
Docistlon OF New York. proposed that
New York be made the centre OF q ter
.rftery embracing the New England
States. Pennsyivanla ana States as far
south a. virginia. He argued that all
this territory was served directly by
New York City and that any division OF
the district would Inconvenience the
merchants aud manufacturers.
NEW YORK WOULD HAVE HALF
the BANKING CAPITAL.
Secretary McAdoo Immediately asked
him u this would not make New York's
reserve bank embrace half the banking
capital of the United States. and II
this would not cause the other banks
TO- lose all value as compared with the
New York regional bank. He admitted
that this was true. but declared that the
amount Of capital for tho New York
bsak was Of minor Importance. ~ the
bank here would make this city nation
ally predominant. regardless OF the re-
serve bank.
Repeated questions by the two secre-
tariss indicated that the committee will
carefully consider Boston. New York
and Philadelphia or Baltimore IS re-
bervs centres. with the New York dis
trict taking In little territory outside
the city and . part Of Connecticut.
This plan. Secretary McAdoo said.
would facilitate the exchange of checks
and would minimize delay. Secretary
Houston also intimated that to make
New York's reserve bank q monster In
Stkvtion would again make the money
centre OF the country The place that
has always been the financial point OF
sensitivensss due to no email extent to
abaersnal conditions created here by .
mAssinG Of the financial interests.
OUTPUT OF NERO hANpleE HERE
f TWO BILLIONS.
4r. Bush said that New York's output
NJ merchandise was two billion dollars
/ year. with 5000 factories, and there
fore required great capital. Secretary
Houston called his attention to the rs1a.
tions Of the reserve banks. which would
hermit Of the transfer Of FUNDS when.
svsr. needed.
0awin d. Page Of the Merchants As.
Socaation followed Mr.. Bush in q care
!ully prepared and analytical argumsnt,
pns Of the strongest yet presented. show
ng that local pride was the most i'm
sortant reason for giving any city q re-
lervs bank. As any railroad centre
Mould be . good location for . regional
leutre He advocated Baltimore. New
Iork and Boston a. Eastern centres
and. Atlanta In the South.
Henry Goldman. head Of Goldman,
)ais . Co.. international banksrs. ex-