Full text of Decision of the Reserve Bank Organization Committee Determining the Federal Reserve Districts and the Location of Federal Reserve Banks Under Federal Reserve Act Approved December 23, 1913

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DECISION OF THE
RESERVE BANK ORGANIZATION COMMITTEE
DETERMINING THE FEDERAL RESERVE DISTRICTS
AND THE LOCATION OF FEDERAL RESERVE
BANKS UNDER FEDERAL RESERVE ACT
APPROVED DECEMBER 23, 1913
APRIL 2, 1914

WITH STATEMENT OF THE COMMITTEE
IN RELATION THERETO
APRIL 10, 1914

WASHINGTON
GOVERNMENT PRINTING OFFICE

DECISION OF THE RESERVE BANK ORGANIZATION COMMITTEE DETERMINING THE FEDERAL RESERVE DISTRICTS
AND THE LOCATION OF THE FEDERAL RESERVE BANKS.
[Under the Federal Reserve Act approved December 23, 1913.]

The Federal Reserve Act directs the Reserve Bank Organization
Committee to "designate not less than eight nor more than twelve
cities to be known as Federal reserve cities"; to "divide the continental United States, excluding Alaska, into districts, each district
to contain only one of such Federal reserve cities and to apportion
the districts "with due regard to the convenience and customary
course of business." The act provides that the districts may not
necessarily be coterminous with any State or States.
In determining the reserve districts and in designating the cities
within such districts where Federal Reserve banks shall be severally
located, the organization committee has given full consideration to
the important factors bearing upon the subject. The committee
held public hearings in eighteen of the leading cities from the Atlantic to the Pacific and from the Great Lakes to the Gulf, and was materially assisted thereby in determining the districts and the reserve
cities.
Every reasonable opportunity has been afforded applicant cities to
furnish evidence to support their claims as locations for Federal
Reserve banks.
More than 200 cities, through their clearing-house associations,
chambers of commerce, and other representatives, were heard. Of
these, thirty-seven cities asked to be designated as the headquarters
of a Federal Reserve bank.
The majority of the organization committee, including its chairman
and the Secretary of Agriculture, were present at all hearings, and
stenographic reports of the proceedings were made for more deliberate
consideration. Independent investigations were, in addition, made
through the Treasury Department, and the preference of each bank
as to the location of the Federal Reserve bank with which it desired
to be connected was ascertained by an independent card ballot
addressed to each of the 7,471 national banks throughout the country which had formally assented to the provisions of the Federal
reserve act.
Among the many factors which governed the committee in determining the respective districts and the selection of the cities which
have been chosen were:
First. The ability of the member banks within the district to provide the minimum capital of $4,000,000 required for the Federal




3

4

DECISION OF RESERVE BANK ORGANIZATION COMMITTEE.

Reserve bank, on the basis of six per cent of the capital stock and
surplus of member banks within the district.
Second. The mercantile, industrial, and financial connections
existing in each district and the relations between the various portions of the district and the city selected for the location of the
Federal Reserve bank.
Third. The probable ability of the Federal Reserve bank in each
district, after organization and after the provisions of the Federal
Reserve Act shall have gone into effect, to meet the legitimate demands
of business, whether normal or abnormal, in accordance with the
spirit and provisions of the Federal Reserve Act.
Fourth. The fair and equitable division of the available capital
for the Federal Reserve banks among the districts created.
Fifth. The general geographical situation of the district, transportation lines, and the facilities for speedy communication between
the Federal Reserve bank and all portions of the district.
Sixth. The population, area, and prevalent business activities of
the district, whether agricultural, manufacturing, mining, or commercial, its record of growth and development in the past and its
prospects for the future.
In determining the several districts the committee has endeavored
to follow State lines as closely as practicable, and wherever it has
been found necessary to deviate the division has been along lines
which are believed to be most convenient and advantageous for the
district affected.
The twelve Districts and the twelve Cities selected for the location
of the Federal Reserve banks are as follows:
DISTRICT No. 1.
The New England States: Maine, New Hampshire, Vermont, Massachusetts,
Rhode Island, and Connecticut, with the city of Boston as the location of
the Federal Reserve bank.

This district contains 445 national banks which have accepted the
provisions of the Federal Reserve Act. The capital stock of the
Federal Reserve Bank of Boston, on the basis of six per cent of the
total capital stock and surplus of the assenting national banks in
the district, will amount to $9,924,543.
DISTRICT No. 2.
The State of New York, with New York City as the location of the Federal
Reserve bank.

This district contains 477 national banks which have accepted the
provisions of the Federal Reserve Act. The capital stock of the
Federal Reserve Bank of New York, on the basis of six per cent of the
total capital stock and surplus of the assenting national banks in the




DECISION OF RESERVE BANK ORGANIZATION COMMITTEE.

5

district, will amount to $20,621,608; and if there be added six per
cent of the capital stock and surplus of the State banks and trust
companies which have applied for membership up to April 1, 1914,
the total capital stock will be $20,687,608.
DISTRICT No. 8.
The States of New Jersey and Delaware and all that part of Pennsylvania
located east of the western boundary of the following counties: McKean,
Elk, Clearfield, Cambria, and Bedford, with the Federal Reserve bank in
the city of Philadelphia.

This district contains 757 national banks which have accepted the
provisions of the Federal Reserve Act. The capital stock of the
Federal Reserve Bank of Philadelphia, on the basis of six per cent
of * the total capital stock and surplus of the assenting national
banks in the district, will amount to $12,488,138; and if there be
added six per cent of the capital stock and surplus of the State banks
and trust companies which have applied for membership up to
April 1, 1914, the total capital stock will be $12,500,738.
DISTRICT No. 4.
The State of Ohio; all that part of Pennsylvania lying west of district No. 3;
the counties of Marshall, Ohio, Brooke, and Hancock, in the State of West
Virginia; and all that part of the State of Kentucky located east of the
western boundary of the following counties: Boone, Grant, Scott, Woodford, Jessamine, Garrard, Lincoln, Pulaski, and McCreary; with the city
of Cleveland, Ohio, as the location of the Federal Reserve bank.

This district contains 767 national banks which have accepted the
provisions of the Federal Reserve Act. The capital stock of the Federal
Reserve Bank of Cleveland, on the basis of six per cent of the total
capital stock and surplus of the assenting national banks in the district, will amount to $12,007,384; and if there be added six per cent of
the capital stock and surplus of the State banks and trust companies
which have applied for membership up to April 1, 1914, the total
capital stock will be $12,100,384.
DISTRICT No. 5.
The District of Columbia, and the States of Maryland, Tirginia, North
Carolina, South Carolina, and all of West Virginia except the counties of
Marshall, Ohio, Brooke, and Hancock, with the Federal Reserve bank
located in the city of Richmond, Ya.

This district contains 475 national banks which have accepted the
provisions of the Federal Reserve Act. The capital stock of the Federal
Reserve Bank of Richmond, on the basis of six per cent of the total
capital stock and surplus pf the assenting national banks in the district, will amount to $6,303,301; and if there be added six per cent of
the capital stock and surplus toi the State banks and trust companies
which have applied for membership up to April 1, 1914, the total
capital stock will be $6,542,713.




DECISION OF EESEKVE BANK OKGANIZATION COMMITTEE.
DISTRICT "No. 6.

Tlie States of Alabama, Georgia, and Florida; all that part of Tennessee
located east of the western boundary of the following counties: Stewart,
Houston, Wayne, Humphreys, and Perry; all that part of Mississippi
located south of the northern boundary of the following counties: Issaquena, Sharkey, Yazoo, Kemper, Madison, Leake, and Neshoba; and all
of the southeastern part of Louisiana located east of the western boundary of the following parishes: Pointe Coupee, Iberville, Assumption, and
Terrebonne, with the city of Atlanta, Ga., as the location of the Federal
Reserve bank.
This district contains 372 national banks which have accepted the
provisions of the Federal Reserve Act. The capital stock of the
Federal Reserve Bank of Atlanta, on the basis of six per cent of
the total capital stock and surplus of the assenting national banks in
the district, will amount to $4,641,193; and if there be added six per
cent of the capital stock and surplus of the State banks and trust
companies which have applied for membership up to April 1, 1914,
the total capital stock will be $4,702,558.
DISTRICT No. 7.
The State of Iowa; all that part of Wisconsin located south of the northern
boundary of the following counties: Yernon, Sauk, Columbia, Dodge,
Washington, and Ozaukee; all of the southern peninsula of Michigan,
viz, that part east of Lake Michigan; all that part of Illinois located north
of a line forming the southern boundary of the following counties: Hancock, Schuyier, Cass, Sangamon, Christian, Shelby, Cumberland, and
Clark; and all that part of Indiana north of a line forming the southern
boundary of the following counties: Yigo, Clay, Owen, Monroe, Brown,
Bartholomew, Jennings, Ripiey, and Ohio, with the Federal Reserve bank
located in the city of Chicago, 111.
This district contains 952 national "banks which have accepted the
provisions of the Federal Reserve Act. The capital stock of the Federal Reserve Bank of Chicago, on the basis of six per cent of the total
capital stock and surplus of the assenting national banks in the district, will amount to $12,479,876; and if there be added six per cent of
the capital stock and surplus of the State banks and trust companies,
which have applied for membership up to April 1, 1914, the total
capital stock will be $12,967,701.
DISTRICT No. 8.
The State of Arkansas; all that part of Missouri located east of the western
boundary of the following counties: Harrison, Daviess, Caldweli, Ray,
Lafayette, Johnson, Henry, St. Clair, Cedar, Dade, Lawrence, and Barry;
all that part of Illinois not included in district No. 7; all. that part of
Indiana not included in district No. 7; all that part of Kentucky not included in district No. 4; all that part of Tennessee not included in district
No. 6; and all that part of Mississippi not included in district No. 6, with
the city of St. Louis, Mo., as the location of the Federal Reserve bank.
This district contains 458 national banks which have accepted the
provisions of the Federal Keserve Act. The capital stock of the




DECISION OF KESEKVE BANK ORGANIZATION COMMITTEE.

7

Federal Reserve Bank of St. Louis, on the basis of six per cent of the
total capital stock and surplus of the assenting national banks in
the district, will amount to $4,990,761; and if there bemadded six per
cent of the capital stock and surplus of the State banks and trust
companies which have applied for membership up to April 1, 1914,
the total capital stock will be $6,367,006.
DISTRICT No. 9.
The States of Montana, North Dakota, South Dakota, Minnesota; all that
part of Wisconsin not included in district No. 7, and all that part of Michigan not included in district No. 1, with the city of Minneapolis, Minn., as
the location of the Federal Reserve hank.

This district contains 687 national banks, which have accepted the
provisions of the Federal Reserve Act. The capital stock of the Federal Reserve Bank of Minneapolis, on the basis of six per cent of the
total capital stock and surplus of the assenting national banks in the
district, will amount to $4,702,925.
DISTRICT No. 10.
The States of Kansas, Nebraska, Colorado, and Wyoming; ail that part of
Missouri not included in district No. 8; all that part of Oklahoma north of
a line forming the southern boundary of the following counties: Ellis,
Dewey, Blaine, Canadian, Cleveland, Pottawatomie, Seminole, Okfuskee,
Mclntosh, Muskogee, and Sequoyah; and all that part of New Mexico
north of a line forming the southern boundary of the following counties:
McKinley, Sandovai, Santa Fe, San Miguel, and Union, with the city of
Kansas City, Mo., as the location of the Federal Reserve bank.

This district contains 836 national banks which have accepted tho
provisions of the Federal Keserve Act. The capital stock of the
Federal Reserve Bank of Kansas City, on the basis of six per cent of
the total capital stock and surplus of the assenting national banks in
the district, will amount to $5,590,015; and if there be added six per
cent of the capital stock and surplus of the State banks and trust
companies which have applied for membership up to April 1, 1914,
the total capital stock will be $5,600,977.
DISTRICT No. 11.
The State of Texas; all that part of New Mexico not included in district No.
10; all that part of Oklahoma not included in district No. 10; all that part
of Louisiana not included in district No. 6; and the following counties in
the State of Arizona: Pima, Graham, Greenlee, Cochise, and Santa Cruz,
with the city of Dallas, Tex., as the location of the Federal Reserve bank.

This district contains 731 national banks which have accepted the
provisions of the Federal Keserve Act. The capital stock of the
Federal Reserve Bank of Dallas; on the basis of six per cent of the total
capital stock and surplus of the assenting national banks in the
district, will amount to $5,540,020; and if there be added six per cent




8

DECISION OF KESEKVE BANK ORGANIZATION COMMITTEE.

of the capital stock and surplus of the State banks and trust companies which have applied for membership up to April 1, 1914, the
total/capital stock will be $5,653,924.
DISTRICT No. 12.
The States of California, Washington, Oregon, Idaho, Nevada, and Utah,
and all that part of Arizona not included in district No. 11, with the city:
of San Francisco, Cal., as the location of the Federal Reserve bank.

This district contains 514 national banks which have accepted the
provisions of the Federal Reserve Act. The capital stock of the Federal Reserve Bank of San Francisco, on the basis of six per cent of
the total capital stock and surplus of the assenting national banks in
the district, will amount to $7,825,375; and if there be added six per
cent of the capital stock and surplus of the State banks and trust
companies which have applied for membership up to April 1, 1914,
the total capital stock will be $8,115,494.
The committee was impressed with the growth and development of
the States of Idaho, Washington, and Oregon, but on the basis of six
per cent of the capital stock and surplus of national banks and State
banks and trust companies which have applied for membership, that
section could not provide the $4,000,000 minimum capital stock
required by the law. With the continued growth of that region it is
reasonable to expect that in a few years the capital and surplus of
its member banks will be sufficient to justify the creation of an additional Federal Reserve district, at which time application may be
made to the Congress for a grant of the necessary authority.
It is no part of the duty of the organization committee to locate
branches of the Federal Reserve banks v The law specifically provides that "each Federal Reserve bank shall establish branch banks
within the Federal Reserve district in which it is located." All
the material collected by the committee will be placed at the disposal of the Federal Reserve banks and the Federal Reserve Board
when they are organized and ready to consider the establishment of
branch banks.
Reference is made to the Map of the Districts and to tables A, B,
C, D, E, and F Mreto attached.




W. G. MOADOO,
D. F. HOUSTON,
JNO. SKELTON WILLIAMS,

Reserve Bank Organization Committee
/ n . C, April 2,




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Map showing the
Location of the Twelve

Federal Reserve BanKs
and the Boundaries of the
Twelve Federal Reserve Districts
as determined by the
Reserve BanK Organization Committee

Q
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TABLM A,—Showing iuhenpitms




to iioek of federal resefve bariksby national tari&i, S'iaie banks, and trust companies? with area and population of each
district.
fPAET 1.1

National banks March 4,1914.

Districts.
District
No.

Including State banks and trust companies that have applied for membership up to April 1,1914.

Federal reserve cities.
Land area
in square
miles.1
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago....
St. Louis
Minneapolis..
Kansas City, Mo..
Dallas
San/Francisco
Total

61,976
47,654
40,449
72,693
152,931
233,821
171,306
194,767
433,281
,450,831
430,329

683,852

2,973,

Population.1-

Number of
banks.

Capital and
surplus.

Num6 per cent
ber of
subscription, banks.

Capital and
surplus.

6 per cent
subscription.

6,552,681
9,113,614
7,932,065
8,326,668
8,519,310
8,677,288
12,348,767
8,747,662
5,195,886
5,671,051
5,797,970
5,089,304

477
757
767
475
372
952
458
687
£36
731
514

$165,409,043
343,693.437
203,135,631
200,123,060
105,055,023
77.353,221
207,997,941
83,179,348
78.382.081
93.166,912
92.333,673
130,422,921

$9,924,543
20.621.606
12.488,138
12,007,384
6.303.301
4.641.193
12.479,876
4,990,761
4.702,925
5,590,015
5,540,020
7.825.375

445
478
758
769
484
382
967
469
687
839
737
529

$165,409,043
344.793.437
208,345,631
201,673,060
109,045,223
78,375,971
216,128,363
-106,116,764
78.382.081
93.349.612
94,232,073
135.258,231

$9,924,543
20.687.606
12,500,738
12,100,384
6.542,713
4,702.558
12,967,701
6.367,006
4.702.925
5.600,977
5.653,924
8.115.494

91,972,266

7,471

1,785.252,291

107,115,137

7,544

1,831,109,489

109,866,569

1 United States census of 1910.




TABLE A.—Showing amount due to and due from hanks, amount of individual deposits and all deposits, also cash in vault, for all national hanks
in each Federal reserve district as of March 4, 1914.
[PART 2.j

District
No.

Federal reserve cities.

Total due to
banks.

balance
Total due from Netdue
to
banks.
banks.

Net balance
due from
banks.

Individual
deposits.

All deposits.

Per
capita
deposit.

Cash in
vault.

o
M

w
M

Boston
New York
Philadelphia
.
Cleveland........
Richmond........
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City, Mo.
Dallas.
San Francisco
Total.

$125,363,123
863,414,285
214,326,384
186,273,482
71,963,378
39,603,415
441,078,660
131,446,049
80,671,243
146,742,582
51,172,553
120,188,341

$125,087,628
192,806,668
189,222,922
170,831,707
72,983,655
61,442,028
278,661,678
92,813,994
104,873,520
134,726,219
78,083,730
122,927,748

$275,495
670,607,617
25,103,462
15,441,775

2,472,243,495

1,624,461,497

924,493,749

26,911,177
2,739,407

$500, 636,637
1,191, 533,728
718, 185,010
654, 985,827
317, 659,065
215, 744,303
811, 307,271
241, 740,690
389, 088,959
365, 978,140
252, 490,607
444, 274,574

$631,356,974
2,061,858,058
937,181,166
851,157,633
399,579,841
262,318,818
1,265,208,464
378,858,307
475,684,697
521,318,350
307,130,732
573,243,051

$53, 354,398
226 359, 715,324
118 77,909,120
102 75,287,748
47 25,524,694
30 18,752,412
102 1.50,414,811
43 40, 866,167
92 34, 917,883
92 44, 118,906
53 25, 979,225
113 60. 077,300

76,711,751

6,103,624,811

8,664,896,091

94 966,917,988

$1,020,277
21,838,613
162,416,982
38,632,055
24,202,277
12,016,363

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TABLE B.—Number of national banks on September 9, 1903, and^ August 9, 1913, with increase or decrease; also amount of capital stock and surplus,
loans and discounts, and individual deposits (in thousands), with amount and percentage of increase or decrease.
Number of national
banks.
1903 1913

Hew York, U. Y....
Chicago, 111
Philadelphia, P a . . .
Boston, Mass
Pittsburgh, Pa
San Francisco, Cal.
St. Louis, Mo
Cincinnati, Ohio
Baltimore, Md
Cleveland, Ohio
Minneapolis, Minn..
Kansas City, Mo...
Washington, D. C...
St. Paul, Minn
Richmond, Va.1
Indianapolis, Ind....
Atlanta, Ga.i
New Orleans, La
Louisville, Ky
Denver, Colo.
Houston, Tex
Portland, Oreg
Omaha, Nebr
Dallas, Tex
Seattle, Wash.2
Fort Worth, TexA..
Columbus, Ohio.....
Nashville, Term.1
Spokane, Wash.2
Birmingham, Ala.i..
Des Moines, Iowa
Charlotte, N. C.i
Columbia; S. C.i..
Savannah, Ga
.,
Memphis, Tenn.i
Lincoln, Nebr
,
Kansas City, Kans,..
1

Nonreserve cities,

Increase
or decrease.3

1903

1913

$173,185
38,625
45,630
46,836
45,200
11,238
25,910
14,405
18,926
15,372
6,120
3,855
6,102
5,036
2,970
5,860
2,330
5,790
6,497
3,250
2,350
1,250
3,820
2,168
1,460
1,865
3,270
2,389
890
815
1,060
1,167
750
975
1,600
559
1,470-

$249,305
69,050
62,065
48,081
48,514
44,880
29,140
20,350
19,760
14,400
13,710
11,650
11,165
9,600
9,484
9,410
8,600
8,230
8,225
7,538
7,050
6,675
6,560
5,900
5,560
4,950
4,673
4,198
4,172
3,114
3,055
1,850
1,825
1,600
1,590
1,330
800

Increase
or de- Per cent.

1903

1913

s

Individual deposits.

Loans and discounts.

Capital and surplus.

Increase
or de- Per cent.
crease.3

1903

1913

$450,732
125,352
122,387
118,670
86,146
21,860
46,752
32,320
32,191
27,656
13,590
27,085
18,699
14,990
9,688
18,033
8,703
16,675
10,540
29,691
6,794
8,619
14,608
5,915
12,297
3,934
12,582
6,132
6,366
5,367
2,803
2,435
2,002
703
6,869
2,649
" 2,306

$636,544
202,335
182,437
171,327
113,796
88,894
61,380
38.459
44,547
46,110
42,930
40,600
26,319
29,712
24,391
22,790
20,842
20,611
20,766
35,587
22,597
23,751
27,731
18,918
28,931
11,707
21,597
14,759
16,436
9,604
6,669
4,421
5,062
1,358
4,276
4,717
2,765

Increase
or de- Per cent.
crease.3

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$76,120
30,425
16,435
1,245
3,314
33,642
3,230
5,945

$631,565 $936,908 $305,343
44
181,416
329,024
147,608
79
142,378
218,746
76,368
36
33,003
2.7 156,869 189,872
14,716
7.3 115,086 129,802
113,959
86,301
27,658
300
109,161
89,312
19,849
13
41.3

834

4.4

-972
7,590
7,795
5,063
4,564
6,514
3,550
6,270
2,440
1,728
4,288
4,700
5,425
2,740
3,732
-4,100
3,085
1,403
1,809
3,282
2,299
1,995

- 6.5

683
l,07f)
" 625
- 10

771
—670

2 Not a reserve city in 1903.

124
203
83
91
219
60
269
42
26.6

132
200
434
72
172
281
165
43
76
370
282
190
58
143
64
- 0.6

137
-45.5

53,443
41,543
63,703
47,222
60,945
49,155
55,281
20,898
69 673
38,735
26,834
14,343
34,188
14,870
34,732
11,372
28,420
17,850
26,856
10,128
24,467
17/389
25,553
15,800
29,212
15,292
25,612
6,923
21,947
5,880
32,810
16,020
19,816
6,388
25,857
8,616
4,803 - 15,507
17,429
11,639
17,335
7,850
16,056
4,847
9,697
4,629
13,485
5,071
6,364
3,354
7,311
2,029
3,339
2,090
5,523
7,990
6,314
3,040
4,263
4,225
3

48
81
53
21
13
313
22
29
35
24
164
80
89

11,900.
16,481
11,790
34,383
30,938
12,491
19,318 • 1 3 0
23,360
207
10,570'
60
16,728
165
7,078
41
9,753
61
13,920
91
18,689
270
16,067
273
16,790
105
13,428
210
17,241
200
10,704
223
5,790
50
9,485
121
11,209
230
5,068
110
8,414
166
3,010
90
5,282
264
1,249
59.7
-2,467
-31
3,274
107

38

1

$185,812
76,983
40,050
52,657
,27,650
67,034
14,628
6,139
12,356
18,454
29,340
13,515
7,620
14,722
14,723
4,757
12,139
3,936
10,226
5,896
15,803
15,132
13,123
13,003
16,634
7,773
9,015
8,627
10,070
4,237
3,866
1,986
3,060
655
-2,593
2,068
459

Minus (—) shows decrease; other changes show increase.

41
62
33
45
32
308
32
19
38
67
216
50
40
99
152
27
140
24
97
20
233
176
90
220
135
199
72
140
158
79
138
83
153
93
-37.7
78
20

02

w
o

g
CS3

o
o
o
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1




TABLE 0.—Total loans and discounts by geographical divisions, made by national banks in the cities named as of January 13,1914. Compiled from
special statements submitted to the Comptroller of the Currency.
New England States.

Eastern States.

Southern States.

Middle Western States.

Western States.

Pacific States.

Total loans.
Amount.
§920, 804,000 $36,819,000
New Y o r k .
303, 498,000
Chicago....
2,055,000
219, 044,000 3,789,000
Philadelphia...
190, 973,000 145,411,000
Boston
126, 358,000
785,000
Pittsburgh
U04, 696,000
San F r a n c i s c o . . .
63,000
104, 006,000
St. Louis
1,240,000
67, 237,000
Kansas City, Mo
15,000
60, 763,000
Cleveland
385,000
59, 435,000
Baltimore
278,000
58, 021,000
Minneapolis
55, 084,000
660,000
Buffalo..
52, 290,000
313,000
Cincinnati.......
47, 985,000
Los Angeles
38,018,000
155,000
St. Paul
125,000
35,721,000
Richmond
125,000
31, 536.000
Omaha
11,000
27, 790,000
Washington
120,000
26;916,000
Atlanta
26, 452,000
Louisville....
25,032,000 U5,442,000
Providence.
24 486,000
85,000
Seattle
23,950,000
778,000
Albany
23 659,000
Houston
21, 446,000
Portland, Oreg
21 202,000 16,019,000
Hartford..
19, 731,000
10,000
Dallas...
19,677,000
New Orleans
18,031,000
Nashville..........
17, 437,000
Brooklyn
69,000
7,977,000
xvLemphis
«...

Percent.
4.00
.68
1.73
76.14
.62
.06
1.19
.02
.63
.47
1.20
.60
.40
.35
.40
.04
.45
61.69
.35
3.25
75.55
.05

Amount.
$654,822,000
7,027,000
188,594,000
18,137,000
119,999,000
1,125,000
3,769,000
304,000
3,566,000
50,893,000
332,000
49,061,000
2,145,000
935,000
1,306,000
1,619,000
567,000
26,620,000
277,000
77,000
4,674,000
568,000
22,134,000
205,000
47,000
1,384,000
214,000
171,000
25,000
16,659,000
6,000

Per cent,

Amount.

Per cent.

71.12 $86,843,000
2.31 17,736,000
86.10
9,398,000
9.50
4,779,000
94.97
598,000
1.08
30,000
13,593,000
6,419,000
5.87
186,000
85.63
6,891,000
.57
25,000
89.07
314,000
4.10
4,017,000
1.95
20,000
3.43
187,000
4.53 33,473,000
1.79
200,000
95.79
915,000
1.03 26,117,000
.29 25,342,000
18.67
536,000
2.32
161,000
92.42
180,000
.87 23,391,000
.21
15,000
6.53
1,059,000
1.08 19,123,000
.87 19,477,000
.14 17,735,000
95.54
17,000
.07
7,913,000

9.43
5.85
4.29
2.50
.47
.03
13.07
9.55
.31
11.59
.04
.57
7.68
.04
.48
93.71
.63
3.29
97.03

95.80
2.14
.66
.75
98.86
.08
5.00
96.92
98.98
98.36
.10
99.20

Amount.

Per cent.

$116,424,000
257,427,000
16,013,000
19,731,000
4,410,000
1,130,000
80,208,000

38,101,000
56,303,000
1,359,000
52,657,000
4,858,000
45,699,000
231,000
32,157,000
489,000
2,172.000
81,000
397,000
1,026,000
3,586,000
1,444,000
721,000
25,000
382,000
2,301,000
251,000
20,000
271,000
562,000
58,000

Amount.

12.64 $12,668,000
84.82 11,358,000
7.31
580,000
10.33
1,419,000
3.49
382,000
1.08
25,000
77.12
4,701,000
56.69 21,804,000
208,000
92.66
2.29
6,000
90.76
4,745,000
8.82
150,000
87.40
56,000
.48
90,000
84.62
2,751,000
.1.37
5,000
6.89 28,212.000
.29
24,000
1.47
5,000
3.88
7,000
14.33
436,000
5.89
244,000
3.01
85,000
.11
38,000
1.78
8,000
10.85
287,000
1.28
130 000
.10
1.50
3.22
5,000
.73

Per cent.

Amount.

1.38 $13,228,000
7,895,000
3.74
670,000
.27
1,496,000
.74
.30
184,000
.02 102,323,000
495,000
4.52
594,000
32.43
115,000
.34
8,000
.01
262,000
8.18
.27
41,000
.11
60,000
.19 46,709,000
7.23
1,462,000
.01
10,000
89.46
260,000
.09
139,000
.02
.03
1.74
358,000
1.00 21,984,000
.35
52,000
.16
.04 20,994,000
1.35
152,000
3,000
9,000
125,000

Percent.
1.43
2.60
.30
.79
.15
97.73
.19
.01
.45
.07
.11
97.34
3.84
.03
.83
.50
1.43
89.78
.22
97.89
.72
.01
.05
.72

NOTE.—The above statement has been compiled from special statements made to the Comptroller of the Currency showing all loans in the United States. Foreign loans are not
included. The differences between this statement and the abstract of Jan. 13,1914, are made up of foreign loans, bonds loaned and other minor items.
The above classification by geographical groups, which has been observed in the reports of the comptroller's office for the past 18 years, is as follows: New England States:
Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. Eastern States: New York, New Jersey, Pennsylvania,' Delaware, Maryland, and District of
Columbia. Southern States: Virginia, West Virginia, North Carolina, South Carolina, Georgia, Florida, Alabama, Mississippi, Louisiana, Texas, Arkansas, Kentucky, and Tennessee. Middle Western States: Ohio, Indiana, Illinois, Michigan, Wisconsin, Minnesota, Iowa, and Missouri. Western States: North Dakota, South Dakota, Nebraska, Kansas,
Montana, Wyoming, Colorado, New Mexico, and Oklahoma. Pacific States: Washington, Oregon, California, Idaho, Utah, Nevada, Arizona, and Alaska.
* $7,457,000less than abstract Jan. 13, which included report from branches.

2 Includes $1,075,000 not localized.

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TABLE D.—Showing banh and trust company credit balances with the national banhs in some of the principal cities of the United States; also showing
amounts loaned by the national banhs in the same cities to their correspondent banhs; also bought paper and collateral loans to noncustomers of the
lending banhs, securities owned, and cash reserve in vaults, as of dates named.
Amount loaned
to all banks
Bought paper,
cent stock-exchange
and trust com- Per
Bonds and seloaned
panies on bills banks
Reserve in
loans, etc., curities (excluJan. made
payable, and
sive of bonds vaults (specie
by
naCities.
rediscounts, in- 13,1914,
for
circulation)
tional
banks
to
and legal
to bank
cluding indiheld by nanoncustomers
tenders),
rect loans with deposits
tional
banks,
throughout
the
Jan.
13,1914.
Feb. 14, United States, Jan. 13,1914.
guarantee of
1914.
directors, etc.,
Jan. 13,1914,
Jan. 13,1914.
$742,386,939
$59,107,399
7.96
$263,803,618
$165,827,533
Kew Y o r k . . . .
$313,586,128
278,824,567
25,663,706
9.20
29,716,830
Chicago......
31,734,647
88,732,480
173,584,687
6,859,243
3.95
38,289,408
Philadelphia.
37,837,529
43,280,798
97,136,156
3.80
3,695,480
47,402,893
Boston
19,958,013
32,661,707
-15.78 — 16,840,657
— 90,430,968 —14,271,230
6,326,699
St. Louis
— 26,880,206
.,382,363,317
7.92
505,141,319
109,597,058
396,053,406
261,684,421
Pittsburgh...
— .89
—79,314,345
— 710,415
—24,301,181
•—16,808,600 — 37,565,648
34.36
Kansas City, Mo.
54,835,438
18,844,099
4,035,117
8,703,544
4,869,204
7.19
San Francisco i . .
45,859,188
3,296,431
17,859,369
18,683,813
13,850,432
.70
Albany
39,528,280
276,052
8,340,938
4,756,442
1,815,045
36,746,820
1,163,551
3.17
Cleveland..
6,684,800
10,025,546
6,177,657
32,593,282
6.00
13,281,317
Cincinnati
1,955,816
8,859,630
7,675,667
31,316,864
8.37
3,649,749
Minneapolis
2,620,504
7,365,849
2,449,329
8.04
27,421,904
9,120,902
2,404,815
8,715,311
Baltimore
4,989,093
31.12
18,533,959
2,675,002
5,768,762
4,596,702
Omaha
3,507,878
8.44
16,290,131
5,212,186
1,374,958
8,178,093
Los Angeles
2,267,638
16,002,069
4.95
8,036,166
792,594
6,425,836
St. Paul
12,637,337
12,616,553
14.79
1,366,532
1,865,678
3,596,044
Houston
1,685,948
11,750,499
18.76
5,525,095
2,204,727
3,322,604
1,879,833
Louisville
11,388,536
.96
13,297,773
109,557
4,471,788
3,298,005
Buffalo
10,970,068
14.85
2,444,639
1,629,449
2,276,451
4,257,528
Richmond
8,427,674
6.79
5,437,032
572,100
5,387,374
1,574,059
Portland, O r e g . . . .
7,518,865
8.02
4,937,661
602,937
4,654,524
3,064.295
Seattle
7,229,470
15.70
5,587,233
1,134,102
2,830,769
1,234,109
New Orleans
6,237,357
22.21
1,293,061
1,385,687
2,546,927
587,558
Dallas
,
5,536,719
20.91
91,632
1,158,622
1,164,930
489,888
Nashville
5,516,705
31.07
9,790,823
1,714,076
4,053,193
3,266,983
Washington...
4,436,974
20.12
1,408,350
892,612
1,855,427
865,180
Atlanta
5,684,913
4,017,811
10,000
4,322,537
.25
4,124,955
Brooklyn
128,081
2,377,836
496,006
1,189,721
20.86
458,088
Memphis
6,336,469
1,804,614
1,983,787
125,000
6.30
13,518,890
Providence
1,367,390
1,348,465
9,850,001
835,334
Hartford
The cities included in the above list are all either central reserve or reserve cities, except the cities of Buffalo, N. Y.; Providence, B . I.; Hartford, Conn.; Richmond, Va.;
Atlanta, Ga., Memphis and Nashville, Tenn., which are not reserve cities.
1
Does not include loans and deposits from banks, in other cities, of branches of Bank of California, N. B. A.
Amount on
deposit from
all banks and
trust companies throughout the United
States/Feb.
14,1914.




TABLE E.—Statement showing population, capital and surplus, individual deposits, and loans and discounts of all national hanks, as of March 4, 1914,
in the 37 cities which ashed to be designated as Federal reserve cities.
Location.
1. Boston
2. New York
3. Philadelphia.....
4. Cleveland
..
5. Cincinnati,
6. Columbus
7. Pittsburgh
8. Wheeling.
9. Baltimore
10. Washington
11. Richmond
12. Charlotte
13. Columbia
14. Atlanta
15. Savannah
16. Louisville
17. Birmingham
18. Montgomery
19. Chattanooga
20. Memphis..
21. New Orleans
22. Chicago
23. St. Louis
24. Minneapolis......
25. St. Paul
26. Kansas City, Mo
27. Omaha
28. Denver
29. -Lincoln
30. Dallas
31. Fort Worth
32. Houston
33. San Francisco...
34. Seattle...
35. Portland..
36. Spokane
37. Salt Lake C i t y . . .

PoDulation.i

Number Capital and
of banks.
surplus.

670,585
4,766,883
1,549,008
560,663
363,591
181,511
533,905
41,641
558,485
331,069
127,628
34,014
26,319
154,839
65,064
223,928
132,685
38,136
44,604
131,105
339,075
2,185,283
687,029
301,408
214,744
248,381
124,096
213,381
43,973
92,104
73,312
78,800
416,912
237,194
207,214
104,402
92,777
i United States census of 1910.

$47,896,000
248,505,000
62,215,000
14,400,000
20,350,000
4,685,500
46,714,000
. 1,700,000
19,205,720
11,365,000
9,314,392
1,850,000
1,887,500
8,600,000

1,600,000
8,280,000
3,300,000
2,515,000
2,975,000
2,140,000
6,730,000
69,050,000
29,140,000
13,710,000
9,887,081
11,660,000
6,570,000
7,545,000
1,330,000
5,900,000
4,275,000
7,125,000
45,185,000
5,596,500
6,780,000
4,175,000
3,482,500

Per
capita.

Individual
deposits.

$71 $176,088,004
52 771,724,999
40 184,643,392
25
40,479,025
56
39,154,843
25
21,853,183
88 120,260,088
40
4,331,394
34
42,553,451
34
28,491,402
73
25,705,866
54
4,578,573
72
6,398,138
56
24,348,912
24
1,443,161
37
20,430,574
25
9,995,561
x
6,115,197
66
10,109,930
16
7,511,216
20
16,857,832
31 211,558,247
42
61,685,925
45
45,453,532
46
35,788,142
47
40,415,210
53
27,258,869
35
34,124,272
32
4,439,212
64
18,551,847
58
11,629,158
90
25,013,951
108
95,756,484
23
29,498,646
32
22,595,277
40
16,156,830
37
11,103,182

Per
capita.
$268
161
119
72
108
120
225
104
76
86
201
135
243
157
22
91
75
160
226
57
50
97
90
150
167
162
220
160
101
201
159
317
230
124
109
155
120

Loans and
discounts.
$200,480,934
1,082,272,650
232,906,822
62,588,735
55,761,638
17,169,907
124,568,231
4,915,613
60,312,953
25,405,554
35,593,044
6,785,057
7,322,262
26,038,731
3,244,938
27,999,427
10,449,274
5,658,213
11,565,519
7,014,359
17,285,254
335,820,233
102,138,744
57,973,491
37,437,913
66,205,054
32,848,397
28,022,377
6,066,192
18,622,564
12,632,408
25,923,087
120,287,608
23,948,338
20,173,774
13,985,084
11,791,043

Per
capita.
$299
227
153
112
153
95
233
118
108
77
279
199
278
168
50
125
79
148
259
53
51
154
149
192
174
267
265
131
138
202
172
329
288
101
- 97
134
127




TABLE F.—Statement showing population, capital and surplus, individual deposits, and loans and discounts of all reporting banks (National, State,
savings, and loan and trust companies), as of June 4,1913, in the 37 cities which ashed to be designated as Federal reserve cities.

Population.*

Location.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.

Boston
ITew York
Philadelphia
Cleveland
Cincinnati
Columbus
Pittsburgh
Wheeling
Baltimore
Washington
Richmond
Charlotte
Columbia
Atlanta
Savannah
Louisville
Birmingham
Montgomery
Chattanooga
Memphis
New Orleans
Chicago
St. Louis
Minneapolis
St. Paul
Kansas City, Mo.
Omaha
Denver
Lincoln
...
Dallas
Fort Worth
Houston...
SanFranciscp
Seattle.
Portland

670,585
766,883
549,008
560,663
363,591
181,511
533,905
41,641
558,485
331,069
127,628
34,014
26,319
154,839
65,064
223,928
132,685
38,136
44,604
131,105
339,075
185,283
.687,029
301,408
214,744
248,381
124,096
213,381
43,973
92,104
73,312
78,800
416,912
237,194
207,214
104,402
92, 777

37. Salt Lake City.,
1

Number
of banks
and
and trust Capital
surplus.
companies.
60
142
100
35
39
21
83
11
55
36
26
7
9
28
16
18
11
9
10
22
19
88
44
33
20
30
14
31
15
13
18
13
45
32
22
18
18

United States census of 1910.

$100,779,114
563,221,701
177,448,741
41,635,100
31,813,107
7,099,000
130,037,145
4,949,393
47,952,469
29,161,731
16,810,955
2,680,000
2,365,318
15.313,448
8,129,605
15,100,297
6,685,620
3,396,762
4,294,114
7,346,214
20,532,500
151,882,559
^72,222,500
20,731,391
11,260,845
-17,415,500
8,165,000
11,489,551
2,042,000
9,997,000
6,667,724
13,599,100
73,623,325
11,567,020
12,097,718
7,660,876
7,838,696

Per
capita.

Individual
deposits.

Per

capita.

Loans and
discounts.

Per
capita.

Q

B
$150 $661,950,254
. 118 2,866,351,069
114
592,533,612
74
271,693,217
87
98,178,794
39
30,498,790
243
350,298,872
118
18,845,965
190,679,440
85
88
72,552,236
131
35,371,126
78
6,616,642
89
5,894,711
98
28,371,032
125
20,622,523
41,437,599
67
50
23,182,608
89
6,018,942
15,166,950
96
23,343,841
56
70,854,415
con
QQO
Oo<6, Ana
fttfo, aaa

105 -205,443,737
68
78,258,930
52
40,490,496
70 —66,562,431
65
28,038,694
53
57,371,171
46
7,253,010
24,808,891
108
90
14,375,274
26,551,714
172
176
313,153,942
48
67,527,325
58
56,805,140
73
25,821,751
84
33,623,153

$987
601
382
484
270
168
656
452
341
219
277
194
223
183
316
185
174
157
340
179
209
oia
-299
260
189
268
~~~226
269
165
269
196
329
752
285
274249
362

$561,625,627
2,306,503,682
413,298,566
188,499,403
88,845,791
24,186,704
291,668,678
16,802,317
118,912,253
63,012,066
50,004,572
9,242,936
8,511,384
33,494,035
28,061,700
38,701,079
21,494,705
7,756,141
16,355,760
24,442,321
64,845,722
690,799,087
—233,385,655
82,720,056
42,322,465
91,686,871
-—34,989,699
41,365,143
8,696,240
27,517,338
16,861,831
32, 775,530
281,447,424
48,963,007
44,132,644
23,235,697
30,676,029

$803
483
266
336
244
133
547
405
213
190
393
271
326
216
431
172
162
204
366
186
194
315
—-339
274
197
370
--282
194
198
299
231
415
675
206
213
223
330

o

§
w
>
W
o
Q
>

a
o

3
H
tel

ON APRIL 10, 1914, THE FEDERAL RESERVE BANK ORGANIZATION
COMMITTEE MADE PUBLIC THE FOLLOWING STATEMENT RELATING TO ITS DECISION OF APRIL 2, 1914, DEFINING THE
BOUNDARIES OF THE FEDERAL RESERVE DISTRICTS AND
DESIGNATING THE LOCATION OF THE FEDERAL RESERVE
BANKS.
WASHINGTON, D..C, April 10; 1914,
Congress imposed on the committee the duty of dividing the
country into not less than 8 nor more than 12 districts, and the
location of a Federal reserve bank in each. Thirty-seven cities asked
to be chosen. The committee could select at most only 12. Necessarily 25 cities had to be disappointed.
Following its policy declared at the very outset, the committee
refused to be influenced by the purely local and selfish claims of cities
or individuals, and discharged the duty imposed upon it by Congress
after exhaustive investigation and study of the entire country, with
unbiased minds and according to its best judgment. With so many
conflicting claims, somebody had to judge. Congress constituted
the committee a court and gave the Federal Reserve Board the
power of review. Disappointed competitors should seek a remedy
through the orderly processes the law prescribes.
Considerable comment has been occasioned by the failure of the
committee to create districts suggested by New Orleans, with New
Orleans as the location for a reserve bank; by Baltimore, with Baltimore as the location for a reserve bank; by Omaha, with Omaha as
the location for a reserve bank; and by Denver, with Denver as the
location for a reserve bank.
The committee realized that the division of the country into districts was far more important and complex than the designation of
the reserve cities, and that the latter duty was subsidiary and relatively simple, waiving considerations of local pride or prestige. In
arranging the districts the consideration of the character and growth
of industry, trade, and banking, no less than the traditions, habits,
and common understandings of the people was much more intimately
involved.
It became clear, in, the hearings, that comparatively few people
realized, or seemed to realize, what the act was intended to accomplish; what the nature and functions of the reserve banks were to be;
and how little change would occur in the ordinary financial relations




17

18

STATEMENT OF RESERVE BANK ORGANIZATION COMMITTEE.

of the communities, the business establishments, and the individual
banks.
Critics of the decision of the committee reveal misunderstanding
in these directions, and either do not know, or appear n,ot to know,
that the Federal reserve banks are bankers' banks and not ordinary
commercial banks; that they are to hold the reserves and to clear
the checks of member banks, make rediscounts for them, and engage
in certain open-market operations. As a matter of fact, the ordinary
every-day banking relations of the community, of business men,
and of banks will not be greatly modified or altered. The purpose
of the system is to remove artificiality, promote normal relations,
and create better conditions under which everybody will transact
business.
Every city can continue to do business with individuals, firms, or
corporations, within its own limits, or in its own region, or in any
other part of the Union or the world in which it has heretofore done
business.
Reserves are to be held in a new way and in new places, so far as
this act controls them, but banking and business generally will no
more be confined within districts than heretofore, and it is simply
misleading for any city or individual to represent that the future of
a city will be injuriously affected by reason of its failure to secure
a Federal reserve bank. Every city which has the foundations for
prosperity and progress will continue to grow and expand, whether it
has such a reserve bank or not, and well-informed bankers, especially,
are aware of this.
The facts which the committee had to consider will throw light on
its decision in reference to these cities.
NEW ORLEANS 7 CLAIMS.

New Orleans selected a district extending from New Mexico to the
Atlantic Ocean, including all of Texas, Louisiana, Mississippi,
Alabama, Florida, Georgia, and that part of Tennessee south of tha
Tennessee River.
It was represented by Texas that it would do great violence to her
trade to connect her with New Orleans. It was claimed, and evidence
was submitted in support of the claim, that her trade was with her
own cities or with Kansas City and St. Louis. In a poll of the banks
of Texas made by the Comptroller of the Currency, 212 banks expressed a first choice, 121 a second choice, and 30 a third choice for
Dallas. No bank in Texas expressed a first choice for New Orleans,
only 4 a second choice, and 44 a third choice. The whole State
protested against being related to New Orleans.
The banks of Alabama generally desired to be connected either
with Birmingham or Atlanta, only three expressing a first choice for




STATEMENT OF RESERVE BANK ORGANIZATION COMMITTEE.

19

New Orleans. The banks of Georgia desired to be connected with
Atlanta, none expressing a first or second choice for New Orleans,
and only 12 a third choice. They represented that it would do violence to them to be connected with a city to the west and claimed
that their relations were mainly with Atlanta or cities to the northeast. Of 44 banks in Florida 19 gave Atlanta as their first choice,
19 as their second choice, and 5 as their third choice. Only 5 expressed a first preference for New Orleans, and these were in the
western corner, 4 a second choice, and 3 a third choice. No bank in
Tennessee expressed *a first or second choice for New Orleans, and
only 2 a third choice, while 7 expressed a first choice for Atlanta, 14
a second choice, and 13 a third choice. Generally speaking, the only
banks which desired to be connected with New Orleans and expressed
a first preference for her were 25 of the 26 banks reporting in Louisiana, and 19 of the 32 in Mississippi. On a poll made from the
comptroller's office of all banks expressing their preference as to the
location for a Federal reserve city, 124 expressed a first preference for
Atlanta, 232 for Dallas, and only 52 for New Orleans. The views of
the bankers were supported by chambers of commerce, other business
organizations, and by many business men.
It will thus be seen that if the committee was to give weight to the
views of business men and bankers in the section of the country
affected, to consider the opposition of the States of Texas, Alabama,
Georgia, Florida, and Tennessee, and to be guided by economic considerations, it could not have designated New Orleans as the location
for a reserve bank to serve either the western or the eastern part of
the district that city asked for. The course of business is not from
the Atlantic seaboard toward New Orleans, nor largely from the State
of Texas to that city, and if Dallas and Atlanta had been related to
New Orleans a better grounded complaint could and would have been
lodged by them against the committee's decision than that made by
New Orleans.
Some of the banking statistics which the committee had to consider
throw light on the problem^ It should be borne in mind that the
committee could consider primarily only the statistics with reference
to assenting banks. In this section of the country, as in most others,
the assenting banks Were the national banks. In March, 1914, the
capital stock and surplus, loans and discounts, and individual deposits
of the national banks in the three cities named, as shown by the sworn
reports to the Comptroller qf the Currency, were as follows:
Capital and
surplus.
Atlanta
Dallas
New Orleans.. „..




..

......

„.

$8,600,000
5,900,000
6,730,000

Loans and
discounts.
$26,038,000
18,622,000
17,285,000

Individual
deposits.
$24,348,000
18,551,000
16,857,00a

20

STATEMENT OF RESERVE BANK ORGANIZATION COMMITTEE.

Even more significant are the statistics of growth from September,
1904, to March, 1914.
CAPITAL AND SURPLUS.

Atlanta
Dallas
New Orleans....

..

..

..

<

. .

September,
1904.

March, 1914.

$2,410,000
2,676,000
6,250,000

$8,600,000
5,900,000
6,730,000

„

Percentage
of
increase.
256
120
8

LOANS AND DISCOUNTS.
$10,329,000
7,653,000
20,088,000

Atlanta.......
Dallas
New Orleans.

152
$26,038,000
18,622,000
143
17,285,000 Decrease 13

INDIVIDUAL DEPOSITS.
$9,931,000
7,157,000
19,425,000

Atlanta.......
Dallas..
New Orleans.,

145
$24,348,000
18,551,000
159
16,857,000 Decrease 13

The loans and discounts in the national banks of New Orleans at
the time of the report, March 4, 1914, were less than those of the
national banks of either Atlanta or Dallas.
While the committee could not figure on the resources of other than
assenting banks which are in this section, the national banks, the
following statistics of all reporting banks, including national banks,
State banks, and trust companies, as of June 4, 1913, were regarded
as significant and were given consideration:
Atlanta reported capital stock and surplus $15,313,000, or $98 per
capita; Dallas $9,997,000, or $108 per capita; and New Orleans
$20,532,000, or $60 per capita. Individual deposits, per capita,
Atlanta, $183; Dallas, $269; New Orleans, $209.
The loans and discounts for all reporting banks for the three cities
were as follows: Atlanta, $33,494,000, or $216 per capita; Dallas,
$27,517,000, or $299 per capita; New Orleans, $64,845,000, or $194
per capita.
The committee found that the total loans and discounts made by
national banks in the cities named in the 13 Southern States on
January 13, 1914, were as follows:
Atlanta.
Dallas
New Orleans

.
„

$26,117,000
19,123,000
19,477,000

while the total loans made by the national banks of Dallas throughout
the entire United States on the date mentioned exceeded the loans
made by the national banks of New Orleans.
Special reports, made under oath to the Comptroller of the Currency
also show that on February 14, 1914, the credit balances of the banks




STATEMENT OF RESERVE BATs K ORGANIZATION" COMMITTEE*

21

and trust companies in the 13 Southern States with the national
banks of Dallas exceeded in amount the credit balances of all banks
and trust companies in these same States with the national banks of
New Orleans.
In view of the comparisons and criticisms from New Orleans in
connection with the designation of Dallas, Atlanta, and Richmond,
and the omission of New Orleans and Baltimore, the following table
is instructive:
National bank statistics for States of Texas, Virginia, Maryland, Georgia, Louisiana,
and Mississippi as of March 4,1914.
[According to sworn reports made to the Comptroller of the Currency.]

State of Texas (including Dallas)
State of Virginia (including Richmond).
State of Maryland (including Baltimore)
State of Georgia (including Atlanta)...
State of Louisiana (including New
Orleans).
State of Mississippi

Area
(square
miles).

Population, census 1910.

265,780
42,450

3,896,542
2,061,612

12,210
59,475
48,720
46,810

1,295,346
2,609,121

28,267,420
24,479,735

83,217,376
51,382,061

91,326,942
61,852,579

1,656,388
1,797,114

12,128,866
5,168,192

32,000,521
17,045,324

34,804,354
13,669,200

Capital and
surplus.

Individual
deposits.

$76,785,584 1197,663,338
29; 732,696
90,887,858

Loans and
discounts.
$215,114,326
107,410,063

From the above statement it will be seen that in each item, capital
and surplus, individual deposits, and loans and discounts, the national
banks of Virginia, including Richmond, largely surpass the national
banks of Maryland, including Baltimore.
The capital and surplus of the national banks of the State of Virginia are 60 per cent greater than the capital and surplus of the
national banks of the States of Louisiana and Mississippi combined,
including the city of New Orleans, while the loans and discounts by
the national banks of Virginia are more than three times as great as
the loans and discounts in the national banks of Louisiana, including New Orleans.
While the capital and surplus of the national banks of Georgia
largely exceed the combined capital and surplus of the national banks
of the States of both Mississippi and Louisiana, the loans and discounts made by the national banks of Georgia exceed by $13,000,000
the loans and discounts of all the national banks of Louisiana and
Mississippi combined, including the city of New Orleans.
The capital an-d surplus of the national banks of Texas amount to
four times as much as the capital and surplus of the national banks of
the States of Louisiana and Mississippi combined, and the individual
deposits in the national banks of Texas also amount to about four
times as much as the individual deposits of all national banks in
Louisiana and Mississippi, the only States from which New Orleans
received as much as half a dozen votes as first choice for the location
for a Federal reserve bank.




22

STATEMENT OF RESEKVE BANK ORGANIZATION COMMITTEE.
KANSAS CITY DISTRICT.

The region' in the middle and far West presented problems of
difficulty. Careful consideration was given to the claims of Omaha,
Lincoln, Denver, and Kansas City, which conflicted in this region.
Denver asked for a district which included Idaho, Montana, Utah,
Wyoming, Colorado, New Mexico, and the eastern two-thirds of Arizona and Texas, Kansas and Nebraska west of the one-hundredth
meridian, and the Deadwood portion of South Dakota. The district
gave approximately-the minimum capital provided by law. Of the
territory included in this district Montana unanimously requested to
be connected with Minneapolis or Chicago, saying that she had little
or no trade relations with Denver. Idaho desired to go to Portland
or San Francisco; Arizona preferred San Francisco, and the greater
part of New Mexico asked for Kansas. City. Western Texas,
Kansas, and Nebraska unanimously protested against going to Denver. Kansas desired Kansas City; Nebraska preferred Omaha or
Lincoln; and Texas wanted either a Texas city or Kansas City or St.
Louis.
In the poll of banks, Denver received 136 first-choice votes, of
which 112 were from Colorado and 12 from Wyoming. With Montana, Idaho, Arizona, Texas, Kansas, and Nebraska in. opposition,
it was clearly impossible to make a district with Denver as the location of a bank. Part of the territory asked to be assigned to San
Francisco and the other part to Minneapolis or Kansas City.
Omaha asked for a district embracing western Iowa, all of Nebraska,
part of South Dakota, part of Kansas, Colorado, Utah, Wyoming,
Idaho, and Montana. All but eight of the banks in South Dakota
insisted upon being connected with Minneapolis; Iowa desired to go
to Chicago; Kansas practically unanimously voted for Kansas City;
Montana protested against any other connection than Minneapolis
or Chicago. The preferences of the other States have already been
indicated.
Of the 218 banks which expressed a first preference for Omaha, 181
were from Nebraska. The committee had to consider the State of
Oklahoma and part of Missouri in connection with this region, and
in district No. 10, 497 banks expressed a first preference for Kansas
City; western Missouri, Oklahoma, and Kansas, and part of New
Mexico, especially asked for this connection. Thirty-seven banks in
Colorado gave Kansas City as second choice and 26 gave Omaha.
It seemed impossible to serve the great section from Kansas
City to the mountains in any other way than by creating a district
with Kansas City as the headquarters, or to provide for the northwestern section except by creating a district with Minneapolis as
headquarters. The only other thing that could have been done
with Nebraska under the conditions which presented themselves




STATEMENT OF RESERVE BANK ORGANIZATION COMMITTEE.

23

was to relate her to Chicago, and this seemed,to be inadvisable in
the circumstances. The Kansas City banks serve a very distinctive
territory and will serve it more satisfactorily than St. Louis could
have done. The relations of that territory on the whole are much
more largely with Kansas City than with any other city in the
Middle West with which it could have been connected. It will,
of course, be recognized by those who are informed that of the
four cities Kansas City is the most dominant banking and business
center. The following statistics as of March, 1914, will throw light
on the situation:

Kansas City
Omaha.
Denver
Lincoln .

Capital and
surplus.

Loans and
discounts.

$11,660,000
6,570,000
7,545,000
1,330,000

$66,205,000
32,848,000
28,022,000
6,066,000

Individualdeposits.
$40,415,000
27,258,000
34,124,000
4,439,000

The statistics of growth during the nine years from September,
1904, to March, 1914, are significant:
CAPITAL AND SURPLUS.
September,
1904.
$3,900,000
3,880,000
3,325,000
768,000

Kansas City.
Omaha
Denver
Lincoln

Percentage
March, 1914. of
increase.
$11,660,000
6,570,000
7,545,000
1,330,000

199

$66,205,000
32,848,000
28,022,000
6,066,000

86
102
98
58

140,415,000
27,258,000
34,124,000
4,439,000

31
73
22

127
73

LOANS AND DISCOUNTS.
Kansas City
Omaha
Denver.
Lincoln

$35,598,000
16,218,000
14,146,000
. 3,820,000
INDIVIDUAL DEPOSITS.

Kansas City.. .
Omaha.
Denver
Lincoln..

$30,730,000
15,728,000
27,798,000
3,283,000

35

The loans and discounts of all reporting banks and trust companies in Kansas City on June 4, 1913, amounted to $91,686,000,
exceeding by about $7,000,000 the total loans and discounts of all
banks and trust companies in the cities of Omaha, Denver, and
Lincoln combined.
The loans and discounts of the national banks alone in Kansas
City also exceeded the sum total of the loans and discounts of all
national banks in the cities of Omaha and Denver combined.
The great preponderance in the movement of trade in district
No. 10 is to the east. In order to place the Federal reserve bank for




24

STATEMENT OF RESERVE BANK ORGANIZATION COMMITTEE.

that region in Denver it would have been necessary to disregard
these facts and the opposition and earnest protests of banks, both
national and State, throughout the district.
THE RICHMOND DISTRICT.

The committee named as cities for the location of Federal reserve
banks New York, Chicago, Philadelphia, St. Louis, Boston, and
Cleveland. In population these are the six largest cities in the
United States; their geographical situation and all other considerations fully justified their selection.
San Francisco and Minneapolis were the first choice of the great
majority of the national banks in their respective sections, and
their financial, industrial, and commercial relations and other factors
entitled them to be chosen. Their selection appears to have evoked
no criticism, but to have received general approval. Conditions
relating-to the Kansas City? Dallas, and Atlanta districts have been
dealt with.
For the territory from eastern Georgia to the Pennsylvania line,
the committee, after fully considering all the facts, decided to create
a district with the Federal reserve bank at Richmond. South
Carolina and North Carolina had protested against being connected^
with a bank to the south or west. They said that their course of
trade was northeast. It seemed undesirable to place a bank in the
extreme northeastern corner or at Baltimore, not only because of
its proximity to Philadelphia, but also because the industrial and
banking relations of the greater part of the district were more intimate with Richmond than with either Washington or Baltimore.
The States of Maryland, Virginia, West Virginia, North and South
Carolina, and the District of Columbia had to be considered. North
Carolina, South Carolina, and Virginia preferred to be connected
with Richmond. West Virginia was divided in its preferences;
Maryland and the District of Columbia, of course, desired Baltimore
or Washington. In the poll of banks made directly by the comptroller's office, Richmond received more first-choice ballots than any
other city in the district—167 against 128 for Baltimore, 35 for Pittsburgh, 28 for Columbia, S. C, 37 for Cincinnati, and 25 for Washington, D. C. Of the remaining 21 votes, 19 were for Charlotte, N. C,
and 2 for New York. Leaving out the States of Maryland and Virginia, Richmond received from the rest of the district three times
as many first-choice votes as were cast for Baltimore.
District No. 5 is composed of the States of Maryland, Virginia, West
Virginia (except four counties), North and South Carolina, and the
District of Columbia. These States have always been closely bound
together commercially and financially and their business dealings are
large and intimate. The reports made to the Comptroller of the Cur-




STATEMENT OF RESEKVE BANK ORGANIZATION COMMITTEE.

25

rency on March 4, 1914, by all the national banks in each of these
States show in every essential respect that the business of the national
banks of Virginia, including Richmond, is greater than the business
of the national banks of Maryland, including Baltimore, or any other
of the five States embraced in district No. 5, as appears in the following
table:

Virginia
Maryland
West Virginia-.
North Carolina
South Carolina
District of Columbia

Capital, surplus, and
undivided
profits.

Loans and
discounts.

$33,544,631
31,390,057
18,209,346
13,527,086
10,332,439
12,685,411

$107,410,063
91,326,942
56,789,538
44,051,033
28,860,456
26,253,432

Total individual de-

•190,887,858
83,217,376
61,421,332
36,051,154
23,330,916
29,520,853

Advocates of New Orleans have criticized the decision of the
organization committee and have given out comparative figures as
to New Orleans, Richmond, and other cities which are incorrect and
misleading. An analysis and study of the actual figures will be
found instructive and can lend no support to the claims of New
Orleans.
From the sworn special reports recently submitted to the Comptroller of the Currency, it appears that the national banks in Richmond were lending in the 13 Southern States, on January 13, 1914,
more money than was being loaned in those States by the national
banks of any other city in the country except New York. The total
loans and discounts in the 13 Southern States by the four cities referred to are as follows:
Richmond....
Baltimore
New Orleans
Washington

.°

$33,473,000
6,891,000
19, 477, 000
915, 000

The figures also show that in these portions of district No. 5 outside
of the States of Virginia and Maryland the Richmond national banks
are lending twice as much money as all the national hanks in Baltimore
and Washington combined. They also show that although Richmond
is not a reserve city, the banks and trust companies in the 13 Southern
States had on deposit in the national banks of Richmond on February
14, 1914, $9,876,000, or slightly more than the banks of this section
had on deposit in the city of Baltimore, and four times as much as
they carried in Washington, although these two cities have long
enjoyed the benefits of being reserve cities. That southern banks
should carry larger balances in Richmond, where they could not be
counted in their reserves, rather than in Baltimore or Washington,
where they could be counted, is suggestive.




26

STATEMENT OF RESERVE BANK ORGANIZATION COMMITTEE.

The figures show that the capital and surplus of all reporting
banks—national, State, and savings, and trust companies—per
capita, in Richmond, as of June 4, 1913, was $131; in Baltimore, $85;
in Washington, $88; and in New Orleans, $60, while the loans and
discounts made by all banks and trust companies in Richmond, on
the same date, amounted to $393 per capita, against $190 in Washington, $213 in Baltimore, and $194 in New Orleans.
The amount of money which banks and trust companies in the
various"partsof the country carried on deposit with Richmond, a nonreserve city, on February 14, 1914) amounted to $10,970,000, or
nearly twice as much as the balances carried by outside banks with
the national banks of Washington, which on the same day amounted
to $5,516,000, and one and one-half times as much as they carried
on the same day with the national banks of New Orleans, a reserve
city.
The statistics furnished the organization committee show that on
March 4, 1914, the capital and surplus of the national banks of Richmond, per capita, amounted to more than twice as much as the capital
and surplus, per capita, of the national banks of either Baltimore or
Washington, and three and a half times as much as New Orleans,
while the individual deposits of the national banks of Richmond
amounted to $201 per capita, against $86 for Washington and $76
for Baltimore and $50 for New Orleans. The loans and discounts
in the national banks of Richmond on the same date were reported
at $279 per capita, against $77 for Washington, $108 for Baltimore and $51 for New Orleans.
Especially significant are the following statistics showing the growth
in capital and surplus, loans and discounts, and individual deposits
of national banks in the four cities named:
CAPITAL AND SURPLUS.

Richmond
Baltimore
New Orleans

September,
1904.

March,
1914.

. $3,115,000
6,215,000
18,262,000
6,250,000

$9,314,000
11,365,000
19,205,000
6,730,000

Percentage
of increase.
199
83
5
8

LOANS AND DISCOUNTS.
Richmond
Washington..
Baltimore
New Orleans.

$12, 946, 000
15, 018, 000
48, 755, 000
20, 088, 000

$35 593,000
175
69
25 405,000
23
60,312 .000
17 285,000 Decrease 13

INDIVIDUAL DEPOSITS.
Richmond
Washington..
Baltimore
New Orleans.




$11,257,000 ' $25, 705, 000
128
42
20,017,000
28, 491 000
4
40,910,000
42, 553 000
19,425,000
16, 857, 000 Decrease 13

STATEMENT OF RESERVE BANK ORGANIZATION COMMITTEE.

27

In other words, the figures show that the national banks of Richmond were lending on March 4, 1914, twice as much money as all
the national banks in the city of New Orleans, and 40 per cent more
than all the national banks of Washington.
In the original decision of the committee the various economic
and other factors which entered into and determined the committee's
action were enumerated and need not be repeated here. This
statement is made for the purpose of disclosing some of the details
which influenced the Committee's findings.




o