Newark evening star and Newark advertiser. [volume] (Newark, N.J.) 1909-1916, 1915-05-04
RESERVE BANKS
HERE TO Be IN
N. Y. DISTRICT
North Jersey Institutions Re-
ported to Have Won Out
on Appeal.

Newark bankers heard today that
the Federal Reserve Bank Of North
ern New Jersey may be withdrawn
from the Philadelphia district and
placed in with New York by the Fed
eral Reserve Board this week. The
proposed change is one that Newark
bankers, with bankers in other mu-
inequalities in the northern end Of
the State, have been fighting for since
the Federal reserve act went into ef-
feet.
The question of the change has
been in the hands of a sub committee
of the board and it is understood that
a accommodation that the change
board. 1t is said the members of the
board who considered the report are
in favor of the adoption of the re-
port
North Jersey bankers in their argu-
ments to the Federal Reserve Board
last spring in support Of their plea to
be included in the New York district,
declared that Secretary of the Treas
ury McAdoo's arrangement, however
consistent with the purpose of the
reserve act, had given little thought
to their own convenience and to the
natural trend of their banking busi-
ness.
Representatives of the Philadelphia
Reserve Bank, while they oppose the
suggested change as not being neces-
sary, did not make what was re-
garded as a determined fight against
It.
Newark as Reserve Point.
1t was suggested by the Philadel-
phia bank that the interest of the
North Jersey banks would be served
just as we'll if a, branch reserve bank
were established at Newark as if this
territory were included in the New
York district. The reserve bank asked
that If the change be decided upon
by the board, the territory in Western
Pennsylvania be taken from other dis
tricts and added to the Philadelphia
district, in compensation for the lost
Jersey territory. 1t Is understood,
however, that the present disposition
of the board is against making any
compensatory changes in the district,
on the ground that the resources of
the banks of North Jersey are not
considerable enough materially to
damage the strength of the Philadel-
phia district If the change Is made.
Decision in the North Jersey mat
ter has been delayed to await the
return of Governor Charles S. Ham
lin. who has been on a six weeks
tour of the reserve cities of the Pa
cific coast and southwest
There is q strong expectancy that
Secretary McAdoo and Governor
Hamlin will make a determined fight
to prevent the boards adoption of
the sub committees report. 1t is be-
lieved that If this report is adopted,
it will be done only when Secretary
McAdoo has exhausted his resources
in an attempt to defeat it.
Slap at McAdoo.
The change, IL it is decided upon,
will be regarded as amounting to a
little less than a slap at Secretary
McAdoo and Comptroller of Currency
Williams, who constituted a. majority
of the organization committee of the
board, which relineated the reserve
districts as they how stand.
The action of Secretary McAdoo
and Comptroller williams in clipping
North Jersey from the New York dis
trict and attaching it to Philadel-
phia was regarded last summer as a
part of the set plan of these officials
to minimize in every possible way the
Importance of New York city as u
financial centre.