Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1914-04-11
FEDERAL RESERVE BANK COM.
MiTTEE ISSUES STATEMENT
DEFENDING SELECTIONS.
TELLS WHY VARIOUS CITIES
WERE GIVEN PREFERENCE
Declare Critics Reveal Misundsrstand.
ins-New Orleans Lost sseauss
Fewer National Banks Applied For
Membership From Adjacent Terri.
tory-eemssne Had 70 Judge.


selection Of bank cities and
its definition of reserve districts We're
discussing today the statement OF the
committee in defense Of Its position.
They plan to analyze the statement be-
fore making any further effort to have
the committee reconsider its selection.
Considerable opposition has de-
veloped in congress and from repre-
sentatives in cities which sought re-
serve banks but were unsuccessful in
their efforts to get them. The commit
tees statement was issued in reply to
these criticisms. Members Of the COM
mittee hoped today their answer would
convince critics that they acted i'll the
best interests of the country in their
selection of the bank reserve sites.
s The reason which actuated the COM
m:ttee in selecting Atlanta and Dallas
against New Orleans; Richmond In
preference to Baltimore. and Kansas
City instead Of Denver. Omaha or Lin
coin Neb.. are set forth in detail.
Committees Defense.
The committee last night issued a
statement defending It's choice OF re-
serve bank cities and definition OF re-
serve districts. 1t was the first onic'al
answer made to criticisms voiced IN
congress and heard from cities which
sought reserve banks but failed to get
them. For the first time some OF the
data used by the committee in reach-
ing it's conclusions were made public.
Particular attentions was given to
the committees reasons for choosing
Atlanta Ca. and Dallas, Tex. In pref
erence to New Orleans; for selecting
Richmond. Va. instead of Baltimore
and for naming Kansas City instead OF
Denver, Omaha or Lincoln, Neb The
committee called attention to the fact
that since thirty-seven cities were ap-
plicants and only twelve named, twen-
ty-fve had to be disappointed.
with so many conflicting claims"
said the statement. Somebody had to
Judge, Congress constituted the COM
mittee a court and gave the federal
board the power to review. Disappoint-
ed competitors should seek a remedy
through, the orderly process the law
prescribes. .a
I Hold Critics Misunderstand.
"Critics of the decision Of the COM
mittee reveal Misunderstanding, and
either do not know or appear not to
know that the federal reserve banks
are bankers banks and not ordinary
commercial banks; that they are to
hold the reserves and to clear the
checks OF member banks, make redis-
counts for them and engage in certain
open market operations. As mat
ter of fact, the ordinary every day
banking relations Of the community, OF
business men and of banks will not be
greatly modified or altered.
t"Every city can continue to do busi-
ness with individuals. firms or corpora
tions within its own limits or In Its
own region, or in any other part OF
the union or the world in which 1t has
heretofore done business.
Reserves are to be held in new
way and in new places. so far as this
act controls them, but banking and
business generally will no. more be
confined within districts than hereto
fore, and it is simply misleading for
any city or individual to represent that
the future of,a city will be injuriously
affected by reason Of its failure to
secure a federal reserve bank Every
city which Eas the foundation for pros
.perity5 and progress will continue tc
grow and expand, whether It has such
a reserve bank o. not. and we'll In
formed bankers especially are aware
of this" &r
How New Orleans Lost.
The statement showed that the COM
mittee's poll OF national banks apply
Ing for membership in the system
favored Dallas and Atlanta over New
Orleans in that part Of the south and
southwest which was included in the
districts decided upon. 1t showed that
the capital and surplus Of national
banks in Atlanta was greater than In
New Orleans while In Dallas It was
less. but that In both Dallas and At
.lanta the loans and discounts and indi-
vfdual deposits were greater than in
the Louisiana city.
- Iowa Supreme Court.
Spec.a! n, Times -R Republican.
pes Moines. April 1.-the iowa su-
preme court today handed down the
following. opinions: -
( Flickinger VS.. Price, appellant. Pot