Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-01-06
Experts Tell Committee on Or
ganization Of New Currency
E. System That Such an Insti-
tuition Is Demanded,
WOULD TAKE IN ALL
NORTHEASTERN STATES
Claim Is Made That Establish
meot of Big Enterprise Is
Necessary to Command Re-
Spect Of Europe,

New York Jan 5.--1'he task Of set
ting up the machinery which is 20 put
IN motion the new banking system of
the country was taken up here today
hy the federal reserve organization
committee consisting Of Secretary Nc
Adoo of the treasury and Secretary
Houston of the agricultural depart
mcnt on this committee deVolves the
responsibility Of mapping out the re-
gional reserve districts and locating @
bank in each To aid il in reaching
its decision the committee today be-
can series OF hearings which VIII
be continued three DAYS more in New
York and subsequently In other im-
portant financial centers Of the coun-
try.
A number Of New Ynrk's leading FL
rancers gave their opinions on the
subject today. Frank a. Nanderlp,
president Of the National city bank,
said he thought the committee would
find it impossible to work out a plan
that would fulfill all requirements.
1T presents almost an insolVable
problem said Secretary McAdoe,
when Mr. Vanderlip had been given
his opportunity 20 speak upon the
manner in which the regional reserve
districts sho I'd he drnwn.up
II think that is what yoh are ia
cing,' said Mr. NanderNp Oversight
fand control spell the whole story OF
this law If we get the proper over
sight and control. the hW win work
F in spite Of its defects # we do not
it will not work.
The majority opinion OF the wit
nesses favored the creation ia New
York of a regional bank Of such mag
nitude that It would absorb 40 10 50
Der cent of the $1,000 010 capital
available for the entire system Of the
country Such a district would in
ciude New York, New England. New
Jersey Delaware and part of Penn
syvania.
I Secretary McAdoo suggested that
such huge bank here would over
shadow the other regional banks, of
which. according to the law. there
must be at least seven, Tho reply was
made that a bank of such size was
needed here in order that it might
( command the respect of European
bankers and hold It's own with the
great individual banks in New York
Establishment Of large bank in
New York was advocated by Francis
J. Hine, president of the Chase Nit
tional bank Walter Ffew. president
of the Corn Exchange bank. Charles
a, Conant. financial expert. A. Bar
ton Hepburn. chairman of the Chase
Rational bank: Alexander J. Hemphill.
president of the Guaranty Trust COM
pany; James G. Cannon. president of
the Fourth National bank. and others.
Mr.. Nanderips idea was that the
importance and Influence of the New
York banks would give them such a
position that il was Of parativelY
little Importance how much territory
outside the metropolitan district was
included
Dr. H. Parker Willis, of New York.
who was adviser of the banking and
currency committee of the house Of
representatives during the time the
currency bill was before It., was the
chief opponent of the plan for the cree
alton of "a huge bank here DR. VIII
lis expressed the opinion that each of
the regional banks should be strong
and self-supporting, and said that to
allot to the New York district 40 or
50 per cent Of the working capital of
the system would be out of harmony
with the purpose of the law.
There are no uumistakable con-
siderations" he said which dictate
that one bank should be vastly SUI
perior in powers. The capital of these
banks is relatively a matter Of minor
importance"
Secretary McAdoo asked the opin-
ions Of the witnesses as 70 what cities
other than New York should be
chosen for regional reserve banks. The
common opinion was that II the New
York area be restricted to this imme-
diate vicinity, banks would be estab-
lished in the east in Boston and Phlla-
delphia or Washington. other cities
referred 10 most frequently were Chi
eago, 81 Louis, san Francisco, Cleve-I
land OF Cincinnati. Denver and At
lapta