Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1914-01-08
Hearing to Determine Location
Of Regional Reserves Con-
cluded in New York City for
Present,
THREE CENTERS FOR
NORTHEASTERN STATES
Boston and Baltimore Probably
Favored No Pointers as to
Denver and It's Competi-
tors,


tay uopHiae JOURNAL SPECIAL LttsEp wiRel
New York, Jan Z. The federal re-
serve organization commlite today
concluded rs hearinas lu New York,
having devoted three DAYS to aseer-
tanning the views of New York bank
ers concerning the task o. setting up
the regional reserve districts provided
ia the new law and selecting the cities
in which the banks are to be placed
The committee. consisting OF See
retary McAdoo OF the treasury dee
partment. and Secretary Houston Of
lie department of agriculture, VIII
procecd tomorrow to Boston, the next
point In us journey TO the financial
centers of the country. where hearings
win be held on Friday ana Saturday.
After the hearings here had been
concluded, Secretary MeAdoo was ask
ed whether he had been impressed
by the arguments advanced almost
unanimously hy New York bankers
who have appeared, In favor of estab-
lishment here or a regional bank Of
such size that It would overshadow
an the others
Il hope" said the secretary smil-
ingly. that / am not as green as !
look"
AIR MeAdoo would say nothing
more further than that the commit
tee had reached no conclusions. Those
who attended the hearings believed
the most probable solution Of the
question. in the light of evidence so
far adduced, was the placing Of three
or four regional banks on or near the
Atlantic seahoard. instead Of having
one large district centerlng In New
York and including New England and
part or all OF the middle Atlantic
states
The cities mentioned in this connoC-
ton were New York, Boston, Balti-
more and Atlanta Washington ana
Philadelphia also were mentioned. but
Il was the opinion Of a majority OF
the witnesses that Baltimore was en-
titled to preference over either of
these cities Washington was objected
Ito because no large commercial inter
csts center In that city, although some
of the Witnesses said il would be Of
advantage TO establish bank there to
be in close touch with the federal
board
Arguments in favor Of Baltimore
rather than Philadelphia were based
on the supposed adyisahility of more
equal geographjcai distHihution OF The
regional banks, II heing thought that
New York and Philadelphia were In
too close proximity TO have each a
bank II was said also that Bali-
more, hy reason of its location, and
foreign and domestic trade affiliations,
would serve better than Philadelphia,
the state Of Maryland, Virginia and
West Virginia and other territory
north of the section which may be
attached 10 Atlanta.
As for the remainder of the coun-
try, the most commonly expressed
opinion was that banks should be es-
tablished at Chicago. 81. Louis san
Francisco and New Orleans. Many
other cities were mentioned for the
remaining banks. but the opinion of
witnesses was widely divided as TO
the preferable ones Denver, omaha,
st. Paul, Minneapolis Spokane. Seat
tie. Los Angeles, Kansas city, Cleve-
land Cincinnati. Dallas. Texas Hous-
ton, Texas. and Pittsburgh, were sug-
gestcd.
Today's hearing brought out the
same trend Of opinion among New
York bankers As was evident from the
outset, that the New York district
should embrace a large section of the
northeast including New Eagland,
some Of the bankers said that tho
New York territory should extend
south 10 tho Potomac river and west
to the Alleghenies or beyond. The
reasons most often advanced were
New York's financial pre-eminence
and the necessity Of having a bank
Of sufficient size TO handle the large
business of this territory and COM
mand the respect of Europe
Secretary MeAdoo's reply was that
the new banking system Of the coun-
irg would be co-ordinated under the
federal board, which would stand be-
hind each regional bank. and that the
regional banks would assist each 9th
er IN times of need Viewing each
bank as an integral part of the sys-
tenn with It's huge total Of resources.
he said, the matter Of capital Of the
New York bank was not entitled to
the emphasis which had been laid
upon it.
Mr. MeAdoo expoundcd his views at
length today TO witnesses who ox-
pressed opposition to features Of the
law. Some OF the witnesses said
frankly that they We're In favor Of one
central bank, but the secretary dc.
Tended tho plan Of having regional
banks as against this idea,