Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1915-01-20
special TO the Evening star.

I
WASHINGTON. Jan. 20.-Charles
j. Rhoads. governor of the Federal
Reserve Bank, OF Philadelphia, to-
day argued before the Federal Re-
serve Board that the 1872 member
banks of northern New Jersey, north
of Ocean and Mercer counties, should
not be transferred from the PhIla-
delphia regional bank 70 the New
! York regional bank unless other ter
ritory supplying equivalent capital
and deposits is added TO the Phila-
delphia district. Baltimore bankers
recently asked TO be transferred from
the Richmond district to the Phiia-
delphia district.
In e. brief prepared by Parker s.
Williams, counsel, Governor Rhoads
states that in December last the 1872
Northern New Jersey banks had de-
posits in the Philadelphia regional
bank aggrega ting $S,164 900, and their
combined stock subscriptions amount
ed to s1,930,000 Their withdrawal
would reduce the total subscribed
capital Of the Philadelphia bank from
So, 525, 900 to SO. 577, 700.
He suggested that a trial be given
under the present apportionment, and
il the trial shows some change Is nee
/ essary for the accommodation OF the
| Northern New JERSEY bankers the es-
tablishment of branch bank in that
section, probably at Newark, would
meet every practical requirement.
A big delegation of New Jersey
bankers is here for the hearings be-
fore the board.
System Not Normal.
/ Their principal argument was that
re a Of hn nj q
disturbed when the New Jersey banks
were ordered to do business through
| Philadelphia instead of New York. 1t
was argued that from time imme-
mortal practically ell New Jersey
/ banks has maintained close relations,
because of proximity and natural
course of commerce with New York,
and with the exception of Trenton,
Camden and other cities near Phila-
! delphia, had had little relations with
/ Philadelphia bankers.
Bankers from Newark, Hoboken
J Paterson and Jersey City particu-
larly expressed opposition to their in
clusion In the Philadelphia district.
The New Jersey delegation declared
/ that section of their station did ten
/ times as much banking business with
! New York as with Philadelphia. So
| licitors from New York banks, it was
! pointed out, are already in this field
| seeking transfer TO them of many
| large accounts, with the argument
| that clearings through Philadelphia
| will mean a loss of time Of several
days.
Representatives Of the Philadelphia
| bank recognized the close relations
| between Northern New Jersey and
New York, but argued that section
was included in the Philadelphia dis
J trict to effect a nearer equality be-
1 tween districts. They asked that If the
section be transferred, other territory
be given to the Philadelphia district
| to make up for it.
Mr.. Van Dusen's Plea.
Walter NJ. Van Dusen, of Newark
representing the New jersey Bank
ers' Association, appeared for the
protestants. Other prominent New
] Jersey bankers and business men al
I the hearing were II. G. Parker, OF
| New Brunswick; W. J. Field of Jer-
! sey City; 1. 5. Haines, of the New
Jersey Bankers Association; B. H
Minch and others. Philadelphia was
represented by Parker S. Williams
who made the defense, and Mr.,
| Rhoads.
Mr.. Van Dusen opened the argu-
ment. He said that the New Jersey
protest differed from other protest:
recently heard by the board. II was not
a contest, he said, between cities fol
the location of a Federal reserve
bank. but rather the protest Of ar
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