Las Vegas optic., 1914-01-06
LEADING FINANCIERS TALK
THEY URGE THAT so PER CENT
OF MONEY BE KEPT IN NEW
YORK CITY
MATTER is THRESHED OUT
EVERYBODY INTERESTED is CIV.
EN- A CHANCE TO EXPRESS
HIS VIEWS

%fDW ~ Ah3 jan VI AAAAAAOAt1u RCNAC
tary McAdoo of the treasury depart
ment said today that he had formu-
lated no views regarding the division
Of the country into regional reserve
districts, he gave strong intimation
that he was opposed to the creation
in New York of huge regional
bank embracing most of the northeast
and 40 or so per cent of the country's
banking power.
If we put 40 or 80 per cent of the
banking power into New York dis
trict,9 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.. MoAdoo said the establishment
OF two or three banks in the northeast
as for example, at New York, Bos-
ton and Baltimore, would dislocate
the closely interviewer Igness and
financial relations Of the northeastern
territory. on the other hand, he said,
establishment Of more than one bank
would facilitate the course Of ex-
change and mercantile transactions
between these districts
At today's hearing of the commit
tee Irving T. Bush, chairman OF the
currency committee OF the Merchants
Association Of New York, said the
business and financial relations OF
all cities in the northeast, with New
York, were so close it would be adj
visable to include this territory, Or
most Of it, in one district. He sug-
gested that the western boundary be
placed far enough west to include
Pittsburgh and Buffalo, and he believ-
ed that unless the committee decided
to constitute a separate district of
New England, the northern boundary
Of The New York district should ex-
tend to the Canadian border
The southern boundary should ex-
tend to include Wilmington, Del. Nh
Bush said, if hank were established
at Baltimore. Otherwise this district
should include Maryland and the Dis
trict Of Columbia.
Morgan Attends Hearing
The appearance OF ]. P. Morgan
created stir in the committee room
when the hearing was resumed after
the noon recess. Mr. Morgan said
he had not studied the problem be-
fore the committee, except in a gen
eral way.
q haven't looked into it as much
as l should have done, ne said, IF
had known that was coming here.
However. I am moderately familiar
with the federal reserve act"
Secretary McAdoo asked him the
usual questions put to each witness
as to his qualifications to give eyi-
dence, and Mr.. Morgan smilingly de-
scribed himself as banker. He said
he could not attempt to outline to the
committee any plan for dividing the
country into regional reserve dis
tricts. He thought, however, that
there should be three regional banks
on the eastern seaboard, three in the
middle Of the country and one on the
Pacific coast. AS for the district
which will include New York MIR.
Morgan said, the essential feature was
10 establish regional bank Of large
size, particularly with a view to COM
manding the respect Of European
bankers. He thought that the three
eastern banks should be in Atlanta,
Washington and New York.
Where would you put Bostong"
asked Secretary McAdoo,
4 woulG put Boston in the eastern
district Mr.. Morgan replied "or
you might put the headquarters In
Boston with q branch in New York