Evening star., 1923-05-08
CAN RESERVE BANK
OPEN CUBA BRANCE
Southern Financiers Oppose
While Boston Men Favor
Idea-LoCaI Financial.
By !. 4. FLEMING.

There was a hearing before tn
Federal Reserve Board in Washing
ton yesterday OF considerable i'm
portance. the question under duscus
sion being the establishment OF
branch bank in Cuba by the Fedora
Reserve Bank, district No / Boston
Opposition came largely from tn,
Federal Reserve Bank OF Atlanta Ga
Gov. Harding Of the Boston Fedora
Reserve Bank, formerly governor
the Reserve Board. stated that New
England Industries did such largi
import business from Cuba that tht
reserve bank should be permitted Il
go into this market for the purpose
of buying. selling and collecting bill
Of exchange, acceptances by bankers
etc
He further expressed Willingness
TO permit the Reserve Board 10 die
tate conditions under which d branch
|. .lank can operate.
{. w. Kendall Of Jacksonville, Fla.
was not sure that a Cuban branch
should be established, but If IL wal
deemed advisable 10 do so, then i
should be branch of the Atlant;
Paul Warburg, formerly a member
of the Federal Reserve Board, made
the statement that during the wal
the board had refused TO establish
branch bank in South America.
Former United States Senator Hok,
tional Bank of Atlanta. opposed
strongly the branch bark PROPOSE
ton.
Present at the hearing wer'
h,
National City Bank of New York;
II. Case. deputy governor of the Al
lanta Federal Reserve Bank; j. X. OF.
ley. president of the Fourth Sationa
Bank of Atlanta: J. S. Reese of thi
Citizens Peoples Bank of Pensacola
Citizens and Southern Bank of Sa
vannah: Paul Trammel. controller o.
the American National Bank of Nash.
VILE. and c. w. Faircloth, presiden
of the National City Bank of Tampa
The question as TO whether thu
Federal Reserve Board may authorize
one of it's regional banks to open &
branch outside of the geographical
boundaries of the United States is al
interesting one. The board took th,
matter under consideration.
Coming at the same time that th'
question of branch banking by ma.
tional banks was under consideration
by the Supreme Court, makes il
doubly interesting proposition.
With twelve states. one-fourth o.
the total, fighting branch banking b,
national banks, the antis are much
stronger than when one Washington
banker appeared on the horizon al
about the only opposition.
Employees Large Buyers.
The employees of the Washington
Gas Company bought Gas SIS to abou
ia4 per cent, without the slightes
4 l.. -,
making the record sale at par net I,
| the company. Credit Ord Preston, 1
director of the corporation. for mucl
of the success that has attended THU
remarkable bit of financing. as Mr.
| Preston has been looking after th
affairs of the corporation during thu
illness of Howard S. Reeside, presi
; dent Of the company.
| Needs s36,O12,1OO.
| Secretary Mellon feels that tn,
| Treasury needs exactly $36.012.100 ad
ditional by Thursday of this week. A
least he has called upon all bank
having proceeds arising from the TIVE
Treasury issues sold March Is to pa!
| into their respective reserve bank
that amount of money, feeling tha
they have had the use of il lonl
enough on d per cent basis.
i Local List Active.
| The local list was fairly active IL
! small way. many of the transac.
tions being of small lots.
| The typesetters were both decidedl!
| strong. Mergenthaler advancing tt
| $50. while Lanston sold at 1878 early
| to a closing at 79A.
! Railway common slow at Sc. Capital
Traction steady at 99 Railway pre-.
: ferred soft at 74E to "a.
In the bond list Riggs Building SIS
iIong-term maturity. brought SO: Rail.
way As 7lIs; Railway general 6s
! 991s; Gas 712s. 103; Gas 5s. 1914, be.
/ ing a decline of about Il points from
recent high: Potomac General Is. 107
! A few shares of National Savingi
| and Trust stock brought $50, 351 and
| $50 ".