The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1914-01-09
MORGAN INTERESTS
DEMAND GREAT BENK
Head of Firm Calls For Immense
Reservoir of Money.
NOT VERY MUCH CAPITAL.
That is j. p. Morgan's Idea of Size OF
Institution to Serve Northeast.
McAdoo Hesitate to Agree.

|
New York. Jan. u. p. Morgan
aligned himself today with advocates
OF reginola bank of commanding
size nthe district which is to include
New York Most OF the other wit
nesses who appeared at today's hear
Ing or the federal reserve origniza-
ton committee shared Mr. Morgan's
views arguing for the establishment
or regional bank I'm this territory
which would represent 40 per cent
or more OF the capital OF the entire
| national system.
Secretaries McAdoo and Houston.
who compose the committee, in
timated that they did not share this
view although both said they had
reached no decision.
Mr.. Morgan indicated that the in
vitation to give his views was some
thing Of surprise explaining that he
mad not considered carefully the di-
vision of the country into regional
districts. Mr.. Morgan said he would
not attempt to outline any detailed
plan.
FOR THE WHOLE.
I'm trying to see how the whole
United States is to be handled" he
/ T..
Mr. Morgan surprised his hearers
by saying he did not consider It i'm
portant that a regional bank be To-
Gated In New York. 1t might as well
be in Boston, he believed. The inn
portant thing, he said, was to have
the bank which served the New York
district of sufficient size to command
the respect OF the business men and
bankers OF all countries. AS to the
amount OF capital In this bank,
which many witnesses had said shoul
be larger than that OF any member
bank. Mr.. Morgan attached compar-
atiyely little importance to that phase
OF the matter.
''It isn't so much the capital" he
said, "as the assets the bank repre-.
sents."
Do you think" asked Secretary
McAdoo, that foreign banks would
look at one regional bank in form
Ing their estimate or at the entire sys-
tenn OF units under coordinated
board?"
DEPENDS ON BOARD.
THAT depends upon the action of
the coordinated board" Mr. Morgan
replied. He said that IL the board
could show that the system was CO.
ordinated foreign bankers would feel
that they were doing business with
one comprehensive bank
''The real idea" he said "is to get
the most convenient arrangement to
serve the whole reserve association"
Secretary McAdoo handed to Mr..
Morgan a large white sheet of paper
on which was an outline map OF the
country and asked him to indicate on
1t at a later time the points at
which he thought regional banks
should be placed and the districts to
be covered.
Mr.. Morgan looked doubtfully at
the Secretary and said he feared he
would not have the time to go into
the matter eXhaustively. He neverthe-
less folded up the map and walked
on with 1t promising to do HIS best
CAPITAL NOT THE POINT.
In the opinion of Henry BizaIion,
president of the Gotham National
New York regional bank was not OF
primary Importance. The national
system of regional banks operating
under the federal board having a
combined capital OF over 100000
600 would be looked upon, he
thought as one great banking entity
which stood bak of each regional
bank.
Edward Townsend president of the
Importrs and Traders National ban.
and j. H.Copperthwaite OF the New
York Merchants association adyo-
Gated establishment of large bank
here.
Max May vice president of the
Guaranty Trust Company OF New
York recognized as foreign exchange
expert was asked to what exten for
eign business of the banks should be
considered in framing the new sys-
TEN. He said this was an important
feature as IL involved control OF the
international gold movement.
How is the movement controlled
now?" asked SecTeatry McAdoo.
"Mostely we lock the stable after
the COW is otslen," said Mr.. May. "Af-
ter gold has moved out of the coun-
try money rates go up to make them
higher than in Europe, where gold is
flowing" He said the new banking
system should prove effective in con
trolling the gold movement.
M. G.. Elliott secretary of the COM
mittee left tonight for Boston to ar
range for the hearing OF the com
mittee there Friday and Saturday.
Lives With Hole i'm Heart
noItipnnra Ma