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R ep rod uced from the U ncla ssifie d / D ecla ssified H oldings of the N ational A rchives Connecticut. National banking committee. Petition to review the assignment of the national banks of western Connecticut to the Federal reserve district no. 1 (Boston) and to alter the district bound aries so that national banks may be ihcluded in the f.R.district of Hew York. m Reproduced from the Unclassified I Declassified Holdings of the National Archives to t m i w u l rkskkvb bo&bp. In further support of the petition already filed with your Honorable* Body to review the assignment of the national Banks of Was torn Connecticut to the Federal Reserve District number on© of Boston and to alter the district boundaries so that the national Banks of Western Connecticut may and shall be included in the federal Reserve Bistrict of ¥&w York #2 we beg to present to you herewith such addi tional information and statistics bearing upon this matter that could be obtained to showed the preponderating amount of business of all of this section which naturally goes to Wew York and that the trend of all of our business banking and commercial is to Wew York and not to Boston. You have already had presented to you a petition signed by 52 member banka located in the below named counties ell west of the Connecticut River and representing all of the member banks of this section with the exception of twof who did not sign the petition. This change * if granted, would mean the setting off from the Boston District to the Wew York District of the Banks in the following counties and population except those parts of Hartford Oovmty and Middlesex County which are last of the Connecticut River. 4 3 § x ^ W-HO-h Vew Jlaren 2 5 "6 2 Mddlemex Hartford Litchfield Fairfield tj X? • -U7 L I County • • • » 337,882 45,637 250 182 70,260 245,322 Reproduced from the Unclassified / Declassified Holdings of the National Archives •* 2 ** The capital and surplus of the banks signing the petition® forwarded are $24,161,000$ their deposits are |6?,769,878.31* The capital and surplus of the two member banka not signing the petition are $1,900,000: their depoeita are #5,912,599.40, These figure# are taken from the report to the Comptroller of the Currency as of May 4, 1915* Before panning on to the arguments and reasons why we ‘believe thin section of Connecticut should be assigned to Wew York instead of to Boston we beg to explain that the Committee having in charge this important matter represents only the Rational Banks of this State and not the Connecticut State Bankers Association as the President of that Association, decided that this was not a matter for the Association to foster or support on account of the large number of trust Companies and State Banks members thereof, which were nonmembers of the Federal Reserve System, this CoEaftittee does, however, represent the member banks and was duly elected by them to further this project* In order that your Honorable Board should have full information of the trend of not only the banking but comaercial business of this section masher banks were circularised with the request for accurate information bearing on this important Reproduced from the Unclassified / Declassified Holdings of the National Archives ■m $ m point* and returns received from all but four very am&ll Banks so that the table on the last page hereof shows as clearly as feasible the actual business relations of these pointa between lew York and Beaton* It oan there be noticed that there ia folly tea timea aa much eoatmercial business of western Connecticut with few York aa with Boston. In addition, the ties both commercial,financial and social are almost entirely with Hew York* A H of our indus- triea and enterpriaea do a wary much greater mount of buaineaa with law York than with Boston a large number of whoa have office a and salesrooms in Hew York and very few In Boston* It is alee found from the reporta received froa the banks in this section that of the checks which they receive on deposit drawn on the cities of Hew York and Boston from 75 to 90^ are drawn on Hew York City and on account of the large volume and amount of these checks payable there it la imperative that they be sent directly to Hew York In order to insure prompt presentation and protest In ossa of non-payment. It la therefore a self evident fact that it will al ways be necessary for the banks of this section to keep accounts with law York which will mean the tying up of additional funda with but very slight returns, if anyt and which oan be made en tirely unnecessary if this section of Connecticut nan be assigned to the federal Beserve Matrict of Bew York* Reproduced from the Unclassified I Declassified Holdings of the National Archives • 4 the neceesl ty of still carrying large balances in Wew York will lock up to that additional extant the loanable funds of these banks and will 'bo a detriment and a hardship not only to the banka but of greater loss to the business costaunity. It la also well known that Boston funds are not la demand In any part of thie aootlon and If any of the a m b e r banka happen to have a surplus of Boston funds their only recourse ia almost without exception to ha?e that surplus tranaferred to Wew York causing delay and expense. It may bo aaid that theeo cheeks oan bo sent to Boston and Inaediate credit secured with the federal Beserre Bank of Boston# Bren if this is so, it means a lose of 24 hours in the presentation of the checks which might mean at any tine considerable loss through delay in presentation, particularly as the direct and natural oourae Is to Hew York. It is also a fact that a very much greater volume of checks drawn on these banks are received in Hew York which also shows how much closer is the relationship existing between ffew York City and Western Connecticut than with Boston* the question of currency shipments and receipts naturally arises in connection with this matter as many of our banks either must constantly be supplied with currency or accusu* late a surplus ehloh they must ship away* Inquiry on this point r Reproduced from the Unclassified / Declassified Holdings of the National Archives - § m shows that practically all of the currency required by the banks of this section is procured in Wew York and that while the ship ments away are net large they are all to Hew York and net to Boston, toother factor to he taken into consideration is the greater activity of the business of the banks Is thle section with Hew York than Bostonf and we find that practically all requests for drafts made by customers are for Hew York funds, requiring draft* on Hew York and that rarely, if ever, are they asked for Boston funds, so that while the lew York accounts of all of these hanks are exceedingly motive* on the other hand their accounts with the Boston hanks are very inactive and with a very small number of drafts drawn per year* Furthermore all Clearing House settlemente in all of these cities where clearing houses are established have been for years and must be nade in Wew York funds which requires all of these banks to carry liberal balances in Hew York to cover any unusual demands on account of these settlements* Foreign Exchange is dealt in to a very large extent and as Hew York is the principal center for this and it oan be obtained at a better rate and very much quicker than with Boston all of this business goes to Wew York requiring lew York funds* The relations existing between the banking institu tions of western Connecticut and the banks of Hew York City have always been most cordial and most of the transactions carried on through personal contact resulting thereby in mutual advantage* Reproduced from the Unclassified / Declassified Holdings of the National Archives All of the *9 banks have always found the Wew York institutions a fruitful source of information and help in many ways that could not possibly be obtained in Boston and which in large measure is mad© possible by the close friendly and business relationship existing for so many years between then# Access to ¥ew Yerk City from weatem Connecticut is such easier, quicker and shorter than to Boston and the people of this section visit ITew York aany times during the year and seldomy if ever, go to Boston* It is quite possible, and in faot easyf for all of these bankers to reach Wew York, transact their business and return hone during business hours; while the trip to Boston is not only longer but on account of train schedules is an almost impossible one to make in one day and absolutely impossible during banking hours* Telephone connections form an Important part of the day1s work in every bank and this service is immeasurably quicker and in most instances cheaper than with Boston* It hasy we think, clearly been shown that if these banks are left in the Boston District they w i n still be obliged to have Wew York accountsf and naturally their sympathies, their friendships,their interests will always be with few York In stitutions and there can be no eensl&eratlons or facilities which Boston can offer that will draw thesi there* Under these circumstances it would seem that no arti ficial separation should have been made which would in any way in terfere with the continuance of these friendly business relations and the help which these institutions can give to these banks. Reproduced from the Unclassified / Declassified Holdings of the National Archives m We believe that another point to be taken into eon** a1deration la that to make the Federal Reserve System the un qualified success that it m a t and ought to he for the benefit of business and the country it will he necessary to have as mmny of the State Banka and trust Companies become member a and a part of the system as possible, and it is our firm belief that should this section not be re-assigned to Hew York these institutions will not affiliate with lt,andf if they do not Join it means that in many ways they will have the advantage of the national Banks and will enjoy privileges and benefits which will be a detriment to the national Banks and undoubt edly to some extent injure their business! so that so far as possible the business of these banks should be protected and they be allowed to do business with the financial center which is their natural and most beneficial one. Ever since the beginning of the National Banking Sys tem these banks have always transacted the majority of their banking business with lew York which its their natural eenter and to *hieh mostly all business of a financial as well as com mercial nature automatically flows. To try, therefore, to change this natural flow and trend to an artificial and forced point seems, if we may be allowed to use the simile, like trying to make water flow up hill* If loft in the Boston Bi strict these member banks can never derive the benefits from the system which they ought to because It will be unnatural, inconvenient and Reproduced from the Unclassified / Declassified Holdings of the National Archives 0 burdensome* m Banking and buslm m will always fellow the path of least resistance and it cannot be gainsaid that in this ease their path leads to Hew York, no matter what artificial barriers are erected to change or prevent it. It does not seem, therefore, that if, as we believe we have shownt 90$ of our business is with Waw York and that practically all of oar business relations are Identified with Hew York that these banks should be left in a district where their financial and business interests are almost nil and its transaction unnatural, expensive and uneconomic and to that extent to prevent and deny these banks the privilegee, advantages and benefits of the Federal Reserve System which they never oan derive unless re-aasigned to the Hew York Mstrict, to which they naturally belong* She intent of the law as we understand it, is to be a benefit to, not only the banks of the country but its system of finance and to correct and put upon a substantial basis our cur rency system j but if the districts are not to be made according to the natural currents of trade and an artificial segregation and boundaries made, it will largely defeat the aims sought and make the law largely inoperative in those seotions which are not joined to the districts where they naturally and rightfully be long, and where from time immemorial their business has been transacted* fhis committee, therefore, respectfully requests that r Reproduced from the Unclassified I Declassified Holdings of the National Archives $ m this question Ini very carefully considered by y o u r Honorable Board and scan* redress afforded these banks in the section indicated* Ve bespeak your most careful deliberation and sug gest an oral hearing if it be thought vis# or necessary and that we shall be only too glad to send repre sen tatire s of these banks to attend any such hearing on any date you say appoint. Respectfully submitted, HATIOHAL BAHKItfG 0 Q t f K « U Of OOTO. HAHBf V# IKITO liS, Chair®*** Merchants National Bank, Wew Haven, Conn* H8HKY I* SP1SRHTt lational Exchange Bankf Kartford, Conn* L* B, J>0Wlt Connecticut lational Bank, Bridgeport, Conn. Reproduced from the Unclassified I Declassified Holdings of the National Archives statistical Sheet compiled from ^formation furnished by the national Bank* of intern Connecticut, County Popula- ttm to time tc Telephone !Currency > of Bking, % of Com* 1 Visits of Visits of Character lation H.Y. T Boston CommunShip Repre Keprewith with of Pop sentaHew York lew York senta ic a t ion ments ulation tlves to tives to lew York Boston 90-99 ftever FairA ll to 75-100 245322 50 min & to 7 quicker 1 to 2 Mfg, fie ld or from and times a wit Vi one utes to hours Commuting week Mew York 2 hours Direct Cheaper excep none except to tion and Farming direct Boston 4 towns that »*Y . seldom Hart* ford 207973 2f to 3 3* to 4 quicker and hours hours Exclu sive of Direct Direct Cheaper to 7 towns Bast of Jf#Y* ct.Kivei All to or from liew York none Boston 76-100 75-90 Frequent lever to once a ly year m g. Insurance Farming i Litch field Mid dlesex Hew 70260 37400 Exclu sive of 3 towns East of ct, Kiver 337282 Haven 4| to 6 Quicker and hours Cheaper In direct with one exception to JU.Y. 3 hours 4 hours Cheaper Direct Direct to 3 to 4 hours Direct H#Y# H to % hours 3 i to hours quicker and Cheaper to M»Y* All to or frofii Mew Yori none Boston 75-90 All to or from Hew York ; none Boston 8b All to or from £ew York none Boston 60-90 j 70*75 Occasion* ally Two fre quently Jiever Frequent ly lever Mfg* farming *»g. Farming 85-95 75-90 1 to 3 times month lever to once a year ***. Jfexwiag i ,
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