Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1923-05-05
Hearing Monday
to Establish Cuban ;
Branch Fed'l. Reserve

Washington, May 4-The Federal
Reserve Board will hold it's sched-
uled hearing Monday on the appli-
c alton of the Boston Federal Re-
serve bank for permission to estab-
fish a Cuban branch, it was an
nOunced tonight by Governor Girls
singer. At the same time. he made
public a telegram addressed to
Chairman J. A. McCord, of the Allan
ia bank. which said the board saw no
reason for postponing the hearing as
had been urged by Senator Harris, of
Georgia. John X. Ottley, a director
of the Atlanta bank, and others.
The telegram reported that the
board had received several kilograms
from the Atlanta bank district pro-
the Boston banks application, all Of
them contending hat to grant the
application and permit the Boston
banks entry into Cuba would be an
infringement on territorial rights of
the Atlanta bank. The latter has
about forty million dollars in cur
rency in c:rcula ton in Cuba. and, it
was asserted. to bring a change
would greatly handicap it.
Mr.. Crissinger's telegram made it
clear that the board would deal with
the question so that the Atlanta
bank would not suffer and declared
that the alarm which seemed to pre-
vail throughout the Atlanta district
was due to misapprehension.
The messake explained also that
the hearing had been called for the
purpose of getting further informa =
ton with respect to questions in
connection with the proposed agency,
but more particularly for the pur-
pose of determining whether such an
agency would result in unfair COM
petition with member banks dealing
in Cuban exchange" The hearing
will determine likewise. Mr.. Crissin-
ger said, in event an agency of the
Boston bank is authorized, what the
precise scope Of it's operations
should be in the buying, selling and
collecting exchange.
1t is understood that the move
of the Boston bank for Cuban
branch was actuated largely by fire.
quently expressed desires of New
York and New England financial and
commercial interests for some more
direct means of dealing with the
Cuban markets. 1t was, reported that
score of prominent New York fin
ancierS would support the Boston
plan and members of the Reserve
Board said they expected many of
them would attend the hearing to ex-
plain their position.
Boston. May ITO wage New
Englands fight to 'etabslish an
agency of the Boston Federal Re
serve Bank in Havana. Cuba, a group
of Boston bankers will leave for
Washington Sunday. The delega-
ton will consist of: Alfred L. Rip
ley, Alfred L. Aiken, Daniel G. Wing
Charles G. Bancroft and Governor W.
F. G. Harding and Chairman Fred
eric H. Curtis of the Boston Federal
Reserve Bank.
The bankers said they did not wish
to set up a branch of the local Fed
eral Reserve but merely an agency
to deal in cable transfers and bank
ers' acceptance. They estimated
that such an agency would be able
|. to handle from $150,000.000 to $4,000.
OOO, 900 of this business annually and
claimed that the. agency would not
interfere with the Cuban banks OF
branches of American or foreign
banks. T1ese banks they argued
would be able to save considerable
interest now spent on transfer
charges.