Full text of Mimeograph Letters and Statements of the Board : Cir. Letter From Governor, Federal Reserve Board, July 12, 1917, re Naming by Board of Additional Reserve Cities, Number X-271, Volume 6, Page 2620

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Ex-Officio Members

W. P. G. HARDING, GOVERNOR
PAUL m . w a r b u r g , v ic e Go ve r n o r
FREDERIC A. DELANO
ADOLPH CL M ILLER
C H *R l 4 SSf a . HAMLIN

W ILLIAM G. MCADOC
SECR ETAR Y OF THE TREASU R Y
C H A IR M A N

JOHN SKELTON W ILLIAM S
com ptr oller of th e

FEDERAL RESERVE BOARD

Currency

WASHINGTON

H. PARKER W IL L IS , S E C R E T A R Y
SHERMAN P . ALLE N . A S S T . S E C R E T A R Y
A N D F IS C A L A G E N T

ADDRESS REPLY TO
FE D E R A L R ESERVE BOARD

July 12, 1917

Dear S ir:
The Federal Reserve Act empowers the Federal Reserve
Board "to add to the number ot cities classified as reserve and
central reserve cities under existing law in which national
banking associations are subject to the reserve requirements
set forth in Section 19 of this Act; or to reclassify existing
reserve and central reserve cities, or to terminate their desig­
nation as such."
A committee of the Board has had under consideration
for some tins past the suggestion that certain cities which are
now the domicile of"country banks" should be given the status of
reserve cities.

The committee has prepared a list of cities as

shown on the list enclosed herewith, which might, by reason of
their population, be classed as reserve cities.

From this list

of 27 cities, the committee has recommended that 8 cities be
named as reserve cities, to wit:




Buffalo, N. Y.
Toledo, Ohio.
Peoria, Illinois.
Memphis, Tennessee.

Jacksonville, Florida.
Grand Rapids, Michigan
Evansville, Indiana.
Oakland, California.

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2

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In all but on© of these 8 cities, amounts due to
banks exceed 23 per cent of the total deposits.

In the city

which constitutes the single exception - Buffalo - the bank
deposits aggregate only 13.4 per cent of the total, but the
sum total of these (more than $12,000,000), the population
of the city and its importance as an industrial center, would
seem to justify the reclassification proposed.
You are requested to bring this letter to the atten­
tion of your Executive Committee or Beard of Directors, and to
acquaint the Board at your earliest convenience of the consensus
of opinion regarding the proposed action, at the same time mak­
ing any suggestions which you may deem proper.




Very truly yours,

Governor