Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-01-07
Does Not Think, However,
That 1t Makes Much Differ
ence Whether 1t Is Located
ii New York or Not.
M'ADOO AND HOUSTON
AGAINST PROPOSITION
Noted Financial Experts Con-
tinue to Give Organization
Committee Their Views on
New Currency Law


New York Jan. Sd +. Morgan
aligned himself today with the advo-
Gates Of regional bank of COM
mandng size in the district which
ii 10 include New York Most Of
the other witnesses who appeared at
today's hearing Of the federal reserve
organization committee shared Mr.
Morgans Views, alsuins fol The esr
adjustment Of a regional bank in this
territory which would represent 40
per cent or more OF the capital Of the
entire national system.
Secretary McAdeo, Of the treasury
department, and Secretary Houston,
Of the department of agriculture, WHO
compose the committee, intimated
hat they did not share this view.
Many of their Questions bore upon the
feasibility Of making the regional dis
iricts more nearly equal, with per-.
haps three banks in the northeast in
stead Of one.
Mr.. Morgon's appearance before
the committee was q surprise to those
who We're attending the hearing and
the banker indicated that the invita-
ton 10 give his views was something
Of surprise 20 him, as he had not
been requested 70 appear until short
ly before the hour specified.
Explaining that he had not consld-
cred carefully the division Of the
country into regional districts. Mr.
Morgan said he would not attempt to
outline any detailed plan.
I'm trying to see how the whole
United States Is 10 be handled he
explained. That's all I'm any good
for
Mr Morgan surprised his hearers by
saying he did not consider il impor-
tant whether regional bank were
located in New York. II might as
well be IN Boston. he believed The
Important 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 ana
bankers Of all countries. As to the
amount Of capital in this bank.
which many witnesses had said should
hc larger than that Of any member
bank, Mr. Morgan attached compar-
atifely little importance to that phase
Of the natter
IL is not so much the capital" he
sald' vas the assets the bank repre-
senls"
Secretary McAduo handed to Mr..
Morgan large sheet ef paper on
which was an outline map Of the
country and asked him to indicate on
Il. az later time, the points at which
ne thought regional banks should be
placed, and the districts they could
cover Mr. Morgan said he feared he
would not have the time to go into
lle matter exhaustively He never
lh'ieSs folded up the map and walked
oai with It. promising to do his best.
IN the opinion of Henry y. Bizal-
ti"h' president Of the Gotham Nation
n bank the subject Of capital Of the
sew York regional bank was not Of
urinary Importance The national
system Of regional banks, operating
phuer the federal board and having a
combined capital Of more than $780,
pVV'pOO would he looked upon, he
taonght as one great banking entity
Nhleh stood back Of each regional
bank
Max May, vice president Of the
Guaranty Trust company Of New
ofk' recognized as one Of the for
e'sn exchange experts of this coun- !
= was asked to what extent the for
eish business OF the banks should be
@ehsidered In framing the new sys-
'ein- Mr. May said that this was /
'i'os' important feature. inssmnch RS
,s involved control Of the interna
H'nal gold movement.
How is the movement controlled |
nov asked secretary McAdoo.
mostly, we lock the stable after
s'ie COW is stolen, said Mr.. May. |
',steF ;iie gold has moved out OF the
l'uhify the money rates go up 10 |
mike them higher than in Europe.
Mhefe the gold is flowing" He said
'aat IN his opinion the new banking
sssseln would prove effective IN con-
seliins the gold movement
Mess regional hanl; Of present.
,ssht strength is established in New /
aolk many Of the Ills Of the present /
system viii not be eradlcated. said
4ehfy Goldman of the New York
9.s'kingl house Of Goldman. Sachs ana
company
me New York regional bank. Mr.
,,to'anYn said. will not accomplish
sie purposes for which il is designed
'.''es2 Il is Of sufficient size 10 over
Yw iis momber banks. ono Of
" khief functions Of the regional
f.1 would be 70 rediseount CONNER
II laper for the member banks. thusl
II ~1enlhg The market for such pa
|I. iDd giving il LIQUID quality