The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1914-01-10
REGIONAL BANK HEARINGS.
j. Il. MORGAN CALLS FOR M
MENsE RESERVOIR OF MON.
EY IN EAST.
Not Much Capital But Heavy Assets
That IL j. y. Morgan's Idea Of Size
OF Institution tn Serve Northcast--
McAdoo Seems to Hesitate About
Agreeing.

size In the district which is to include
New York. Most of the other Wit
nesses who appeared at today's hear
Ing of the federal reserve organiza-
tion committee shared Mr.. Morgans
views arguing for the establishment
Of n regional bank in this territory
which would represent 40 per cent.
or moro 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 a surprise, explaining that ne
had not considered carefully the di.
vision OF the country into regiona.
districts Mr.. Morgan said he would
not attempt TO outline any detailed
plan.
I'm trying 20 see how the whole
United States Is TO be handled" ne
explained. That's all I'm good for"
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 i'm
portant thing. he said. was to have
the bank which served the New York
district OF sufficient size TO command
tho respect OF the business men and
bankers OF all countries. AS to tn,
amount Of capital In this bank.
be larger than that Of any member
which many witnesses had said should
bank, Mr., Morgan attached compsr-
se1n -a1>1ss S~spcsssnesst 10 tkatsphass
OF the matter.
1T isn't so much the capital" nc
said. "as the assets the bank repre-
ssnts"
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 a coordinate board.
That depends upon the action Of
the coordinated board Mr.. Morgan
replied. lie said that II 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
II. ut n 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 ne
would not have the time To go into
the matter eXhaustively. lie nevcrthe-
less folded up the map and walked
OF with II. promising to do his best
In the opinion Of Henry Bizalion.
president OF the Gotham National
bank the matter OF capital of the
New York regional bank was not Of
primary importance. The national
system Of regional banks. operating
under the federal board and having a
combined capital of over 800, OOO,-
600 would be looked upon, nc
thought. as one great banking entity
which stood back of each regional
bank.
Edward Townsend. president OF the
Importers and Traders National bank.
and j. II. Copperthwaite of the New
York Merchants association advo-
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 extent for
'sh DuSlhcSS ol the DankS ShouId bc
considered in framing the new sys-
tern. lie said this was an important
feature as IL involved control of the
international gold movement.
How is the movement controlled
now" asked Secretary McAdoo.
Mostly. we lock tho stable after
tho COW Is stolen" said Mr. May. AT
ter gold has moved out of the coun-
try money rates go up to make them
higher than I'm Europe. where gold is
flowing" He said the new banking
system should prove effective in con
trolling the gold movement.
NJ. @. Elliott, secretary OF the com
mittee. left tonight for Boston To ar
ruugo for the HEARINGS az tho cnp,