The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-01-06
GOTHAM ASKS HALF
OF ENTIRE CAPITAL
Wants Federal Reserve
That Would Over
shadow Others.
COMMITTED FACES
SERIOUS PROBLEM
First Hearing Is Held, and Finan-
ciers Present Claims for Dis
trict That Would Include
Five States and Leave Little
Money Available for Re
mainder of System.

New York, January 8.-The task of
setting up machinery to put in motion
the new banding system of the coun-
try was taken up here to-day by the
Federal reserve organization commit
tee. consisting of Secretaries McAdoo
ana Houston. On this committee un-
der the new law devolves the respon-
stbility of mapping out regional re-
serve districts and locating a bank in
each. To aid IL in reaching it's de-
cision the committee to-day held a Sc
ries of hearings which will be con-
tinued three days more in New York,
and subsequently in other financial CEN
tres of the country.
number of New York's leading
fnanciers were heard to-day. It quick
ly developed that II probably would be
impossible to satisfy both New York
and the rest of the country. Frank A
Vandcrlip, president OF the National
City Bank, said he thought the commit
tee would find 1t impossible to work
out plan that would fulfil all re-
quirements.
Problem Almost UnsoIvnbIe.
1T presents almost an unsolvable
Mr.. Vanderlip had given his opinion
as TO the manner In which the regional
reserve districts should be drawn up
Il think that is what you are facing"
said Mr., Vandorlip Oversight and
control spell the whole story OF this
law If we get the proper oversight
and control, the law will work, in spite
Of It's defects. If we do not. 1t will
not work"
The majority of the witnesses fa-
vored the creation in New York of n
regional bank of such magnitude that
1t would absorb 40 to so per cent of the
s106,000.000 capital available for the
entire system of the country. Such a
district would include New York, New
England. New Jersey, Delaware and
part of Pennsylvania.
Secretary McAdoo suggested that
such huge bank here would over
shadow the other banks, of which. ac-
cording to the law, there must be at
least seven. The reply was made that
a bank of such size was needed here,
in order that it might command the
respect of European bankers and hold
its own with the great Individual
banks In New York.
Mr.. VanderlIps idea was that tho
Importance of New York banks wouL
give them such 4 position that 1t was
of comparatively little moment how
much territory outside the metropoli-
tan district was included.
DIR. Willis Opposes Plan.
DR. III. Parker Wills, of New York,
who was adviser OF tho Banking and
Currency Committee of the House of
Representatives while the currency
bill was before IT, was the chief op-
ponent OF the plan for the creation OF
a huge bank here Dr. Willis said
that to allot to the New York dis
trict 40 or so per cent of tho working
capital of the system would bo out Of
harmony with tho purposes OF the law
Secretary McAdoo asked the opin-
IONS of witnesses as to what cities
other than New York should be chosen
FOR regional reserve banks The com
mon opinion was that, if the New York
area be restricted to this Immediate
vicinity, banks should be established
in the East in Boston and philadelphia
or Washington. Other cities referred
to most frequently were Chicago, st.
LOUIS. san Francisco. Cleveland or
Cincinnati. Denver and Atlanta.