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Falri^iX-13-liu 1914.

Law Reporting Company, Official Stenographers

I i TlSr

i t l i t&# G •, Fc^ru ry 13th, 1 14.
The Or0M!*s&U«9! CemffiUeo w % puf«u»nt te rotioo





Tli# s«orst r r ef tfao f n t f w f ,
Tb« ^*'ir^t" rr

A trler&t rc.

The r * 7 troll#r ef the 'Nirrwtoy.

J . r . ft®, PriildCBt ll«d S»* 1 f te
8 I I

a J

F? at try -iwl

§M dt% 0* or. He - i 1 Br.r k#

Clsisrir^ 8 upi Aa#eoirttior »r*d (Shrator cf

~ IU m L. M CRI» Ex-Pro#io#nt AUssta * h mb*r of
Cfssrsor '6 .
JOHB £. OTTLST, Tloo-Preslaont Frurtfc H tier* 1 3 n.<
P r iila tn t C lM rU t Rruie S«9||« i • A ierleoi
BwiNr* 1 H todlatlon*



lw r l« i» V a tlm l


. :4 ea-i", r ;

- r ? - .•*
P?- i

i .

U«*fc«r Currcr.ey t a e | « i l «

. COLES. Tioe-Prs^idor t




kmrimm Br^rrt**

tr 1 B*r* *i*uTru*it


Ccr, C- *i< f .

Utlt R.

Preaidar.t A t lu ts Ch**bar et

CHAP. S. BARHCTT, Pr««id«at T zrw r*' Onion.

eUTBt t . m t O , Pra«i4«»t I t U n U Asrloultttral Varka.
O'CAE S1.8A9, Tic*-Pra*la«r I Fulton B g U W Cotton
a . S. W K B I W , Pittateur*fc Plate 01 M
m r «

C '^ W ,

R. J .


I f r r n r R « r l lr.*ur-n3« tfmpmny.

?t .ta im nx * •

B-.slnr.d llutusl U f a

B u n in a * C o *p «f.
I t r m i SAKDSRS. Ctolrrai ef Jelr.t Com 11t»e.
.* . J . ADA MB, Plsdw nt Hot*l, Bir iit«tMa, Ala.


. m n m i ,


o*. « .c .

THOMAS PURBF, «ocm t ry I * . C m .
F. D. KoKXULAI, ac f . 1! th f t . , Atlanta, 0 .
JOSEPH P. ORAT, 6 T»nr.ih, Q*.
KILtiF 8 . LAKE, Pro*U«ct Cltisana Feuthanft Bulk.
J . H. HARSH, 6C1-S A».Tnjrt a U * .,B l n s l n A * a , Alii.
01,1V*-' H. -'MKK, 1


jr .

8c. SCth St.,Blr«iir,~b

P O R 9T Ea R 4,S M X r a t
S *

* » « .,

J . w. D O K m i T . l&Ql S a w * * I t * . , Birr



Sr-.inffc**., Ala.






t f

J . D. H08OTBER6RR. 1013 Cr«so«nt Aw»..Bln&ln«te», A U .
B. T. TAYWR, CcltjR&l-, P.C . The South C rclln*
B unker* A • • e o l a t i o n ; Tte Co lim b 1» C le a r in g
Roue* A o n c a l' t i e r ; Th« Bar.k cf O c b a H a ,

CHARLES 4 . 8KTTH. President c: °en*te sad Ct.
(m m r .
* . A. JAMES, Oereral A«*e»blT of Scvsth C*rclli,a.
C . H . HUPTCW, C hatt»*M »**e, Tear..

ntAVS H.

i n , Chattanronv, V im .

3 . P . HASKTRt,

m tm
M. V ,

C h a t ta n e o fp , T e n n .

f . w m m tr,

irO ,

P r M l d M t F i r s t fc t lo n f l m .nk @f

C.C .

The 8©©rat ry ef the Treneurys Qer*tl©fBon# f l e t w eeae to

Thl« Ccwettteo la ©h*r*ed with the duty under %tm

feaeral R e » e m lot ©f diYidin* the country intc n©t 1**#
then ©ii$it nor mors than tw©lT© Faderml Beaerv© Dint riots,
&&d t© ltcate within each en© cf this e Fed*m l Ree©rr© lank*
fh# U « n i u l r * « the C w »itte« in — M a y I W « dltiii^R cf
the orwtry to ha©# d m nflurt to the ecuf«»i«»oe m d onet sary tturte of triielneea* Hiat wo desire tr «et those f*ote
whioh relate tc the oenvonieno© mid owe ternary ooureo of


sad w© are eblifed te aek iwtlenen who appear ¥•«*

| fere ua te oenfin© the«eelwee re U r p l y m paeeiale te
facte. We are oblisea te exolude or: tory ae far ae preeible,
not tt*t we objeot to it, but eimplr beee»®e » • here not tba ■
tine te l i s t m te it . There ere a great many people wbe
wrj.t tc be ho nr-, sad «« hatre te adhere to the line ae
oleaely ae poeeible*
Ir thlp ooweotien wo d.eire te ©oil your attention to th©

fact that thie ia a Tory eerioua and iapartittt eaonewlo
2ft U i H i i * with it, th© Oawaitt©© ia e&li#©d te
oeneidar th© q^i«ation in i te bro*daet national a©pa*t, We
mmmmt allow looni o©nalA«raU*n® ©f prides or rf proetiai to
tmZtmmm the action of th© Coer it tee, And while w© ap. reel- |


th# notur 1 rlfilry that ix iit i between nriftni cl tie* tc
»*o*re the hcner, ® tc apeak, e f haTinf or# ef these
Federal liaecrYn Banite lee*tea within their eerperat# H a & i a §
n*T*rthelee* # we deelre rent lessor whe

preach the eabjeet

te diemite It »ere fren the atma&ffint ef the diatrtefce
theneeleea; became the IspertM t thin* le the ImfiMW «et
ef the eeuntry late the*e dietrlcte, m d i a yen esnsot X*f
rut tori dialttct witheut hnwine iori regard te it* rel? tienehlr tc the cthar p»rte ©f the cmntry, *e li>

tc Hat* well

al*e«t*4 » ! • * • u, <> that aubjact, which •h«'w th*t in tba alat
Iri it ar aalects<-, omnlaerr tl«n h-a IM«B nivcn %t th# psrtiU «


of the rearming** ef the country 1st* aletrict®, te

th t the rel* tlen^hiy auiy appear*
There »ri « atnsb^r ef eltiee tc be he era hare, *n 4 In

ei these oaeee we Ilka ta have eertain p itlenes eeleot-

#4 aa epckeeren fer the cl Viet mad life te hawe the# U n ited ,j
a peeetble te ffeMt tfcat w ill put ia the whel# m m

« • far

briefly ana eempeetly. I think it weul<i eenre eur purj eee
o e ^U r i f Atlanta should preeent her caea firat, ac we ehall
tell on Atlanta*


Orr$ I

i n* Atlanta.

k*ll*fe9 ie *t the head ef the list ae represent*

rr/TEMErr or j . r . era.
Th© 8©cre4 ry ©* thii Treasury* Hr. Orr, will yeu ©tr t©
y«mr n©«©, H c U m i i and ©eoupatlon for the i or it
Mr. 0 rrt J . K. Orr, Pra©id«nt ©f the ft«d Seal 8h*© Vm &.
tery m a C
#£ t < "

r a n of th© J< list CTm^itiee en Rafi<-n«l Bank©,
,*ir. - f* u*?« |ti«©ifttl«ft *nd

cf Ccwwra©*

Tha Sacra tf ry of th© Traaauryj Tns tanaw th© p relU a a«fr c n U n f th© Comltto©. If you haw© «©•« wl©w« to pr««©ntf
»© ©tumid b* rl^d to h r tb*®,
Mr. Orr-

*© d#atr*d, * r . S*©r3t»ry, to ©peak Ju«t © word

at flrat a© t© th© rorlcc lieelf, **d I *®au*e th? t you
wruld Ilk© to know what w© haw© 1b mind lr ad^r©o©lisf ©or
fM nvte t© tfer I »

a© hp»Ye outlined th© f©¥©n Stato© of

T©nn©©©o©# forth mid South Carol lr**, Alabawa, Qmrgb*


rlda ©ad m«©l©©ip] l.
Th© Socret ry rf th© fr«.n*uryj If**# you a »&j?
I r . Orr:


Thu SaortVry of tis© Tr©a«uryi It 1© inelndad in thl©
IN okT
Hr* 0 r 9 § # S | is inolud©d In thl© fcrefc.
print Ju * ^

V© ha©« a &ln©~

irr tiir t* t# uv;8lr« tc ©ay that w© wi#h

tc invi te ycur attintion tc tkli rtflos & • f thrift ftfid ti
I ftfu particular fointe ir. relation thereto. if* ha to ‘ een
tel4 that there b* *e beer, : rcBerted nose viewe which would
ongfeet that f H «n e n &l Ban* should net be [U oed In thie
aeetlon Ileeaiise we are terrene re lait«a4 ef lendero. I
tLinX It was Mr - B^rriEnr. who o&ie th’ t a nilllonalro, be
ueed te think, wee a nun who h*d f million dollare, but tfcst
he had obanff»4 M e opinion, end it wen 14 be e wsn who oonla
ewe e n illie » teller*; end we be wo i ^ o n l million dollar
banks ir* the ©outre ef thie re in oft*
It feae alee keen eeld « i ar


a one-crop oi«ti«nfm U In

answer to that w© offer you the report* whioh will be protented later by enr wi treeoee, otaeeinff thfl^t ee pra^tAoelly

* tt" M w • * *
b ,l “
nonay crop jraotleally every aenth in the year.
Wo eapeot tc prowo by theee witneee • that


* • *
W! * X

proeent th- t thie re floe In end of i tee If Jnetifiee, und we

I hope in ycur


in ion will nerit, f Rerienel Be tv ecaowhere

In it© ipeo®rephleel eon ire • Wo eenour fully in an opini©n
e x | i e i M 4 ,2 believe, at the ft . &oui© he*rirr,thet terri­
tory ohculd not bo outlined aitc«»tb^r by tho bankin*
uueineee done in it by my one eeotlon, but rmihor by **ho




o m r H sad trend ef it® oewnsrosf *nd ws »re vrlllln* It
©take «nr ohanees oa th* ® m insse ef thr t principle
< r
As yon aoubller*, this U r r l U r y repress*ti an*cevsnth in pspnlatlon and one-ninth in farm ; rodnot*, th*t
o*in* th* •▼era** ef one-slghth. If you dssids t * eenfin*
thsss dank* tc sight, it mmld fs&lify ue te be on* ef th*
*1 «*it b&mke,
I think ytu *111 afltroe that we are net bulldlnf for s
4&y, and the possibilities ef this ssotion mxk all th&t is
in it s i l l cone out in our *Tidsno«9 and so hops will

I *111 *poak nysslf juiit a word on th* eoneroinl
•id * of it , no perhw j * I hair© been laors elsosly related te
tfc&t than any other. I h&v* bad tsbnletSd for the business

* 1


miliar the orllactions or the cash rs-

osiptt during the twslvs nonths of ths yssr. I, syaelft s*e
*rs*tly floated and sonssfcat sitrjrlssd to find that, takinf
shat vs eall th* *r r in f period

fnm January until *ay# it

't t a m m m m *m mf ft* nor o n l etf a i f i l . mad that oesfti
m ,w m rn


J . I . Orr

134 p%r ©eat.


Sr yen will m s w© ter# nc pmrtimlmrlf %m

j atmrn ©* aolleoticna, ^hiefc 1« w « U y different fre» the


‘ ,r

r ♦ ar


y • r-

We will prenemt in a brief thie ©a*# evident cor,in?
fr©» fire 4l©tlaet *aa r?f-r .«ante.tiwe lln a of trads, the
*rlr*>ipal artlelee of ©easere© whieh are handle4 by At lent <u


fte Seeretary ef

%hm fr«?«uryt

T®© i n

©peaklafr ®er©

i rtienlarly wltferef erene© te this efeee trade ncnrt
Mr. Orr:


Tht eho© figure* are what I really know abeut,

we will ale© hare them frcw the gr^oery trade,4ry jgeeae,

1 hardware &»* aillinory. I fear# act the fl#tr©ef tnit they

*111 be in the briefe. I aa le4 te Relieve the average will
act wary wery amch frc® It.
The Comptroller

f the Cur im iy t te thie tte • * * yen

; efenk eft
Mr. Orr: Teaeeeee, Icrth


I thi


Smith (ferellna,— yee. I

that la the «ap.

The C«iftroller of th. Cwrranays Ten de net tl>l>
eea torn K.ntuekyT
Sr. Orr: Bet Ker.aieJty, trot far.n
baead Mi the a-van atetaa najied,
f Carolina, Qarrtrla, Flerll*. Tannaaaae, Alabama and Hlaalaal

Tim Saorotary ef the Tr«%*urys Are yea *elis* te *4dr**«
y c u rn ir tr this benlin* eapilal?
Mr. Orr:

* e , air, Jtt**t the otsn re ial «14» ef It.

epeelter fell win* re will touch



that. A* to thecc ^wr-

ciel «i4e ef It we vlih te »sy thi%, thr t while I aa not
pr#farad and ©tmnei tell you auah t hetit the haakiaf btieinee«f
cm Ui« ratter ef i i m m ,
ly n u n

th# « e »a r a a of Atlanta practical­

tills region* cr a seed part ef It, like tha £ew.

We h&we racerae iheminr that a; p m i M t e l y 90*000 iMircheat«
ill thie territory trad * in Atlanta* Te
res auaitere* rj.

rtn rM

t th*t ^vluenoe

via I sc „ reeanted te yeu,ehew-

int exactly the nu*tt»er in e«oh «t*te. In reuad *m*b*ret half
•: u

i r ■ iei


<r *ia, w

The Secretary ef th- Treaaurys



Whst art the aattr® nuaber

ef aerohaate ia the entire territeryt
lr . Orr: 14 ,
the*. f*-w, we

i Im w

. ee that we have ewer #© ptr aant af
that StOO ef theee are in forth Carolina,

10,000 in Sciith Carelira, 43#C W in ©eerrie# 13»O06 in
AifttMK* M W 16,000 lr. th, rer.alnlr.>t

r t » U l , 41»ld»4

tetveaa thaa, *e will ehcw th#*t we de a Imnlmm whi<ifc ie
•otually ta b u late

* d *111 is*er.t,<l, ef §145,000,POO m

J . I . Orr



ftlM h&ee eaether eouree of fcoelneee fre* tut *ea-

u fM tu rt—
The Secret ry of the Trweewryt Tcu are sh ak in g n w cf
all the diiQlr.r ee ef AtleataT
lr* Orr: Tit*
T u In n W y
fc i

th* Trtm rjri All the different llnee ef

Mr. Orr; All Uie dif 6rent llnee ef fcuetnaee.
Tbe Secretary ef the Treasury* Dcalirr with thie territeryt
Mr, Orr: Deal !mm with tfel* territory which m m il tlm

ffc* a&mfeetwrefv * *« » t * dr - hueinea* ef tyffwifr

laately tl«T,0Oe#O0O, safcljew * tetel r.f eoaethin* eeer
|300#ODO#O M «
lew, *e venture th# epialen thr t e bm k placed «m*wiser# in thie eeetier., U m re fere, weald de nc t© the
-dcnv^nlence ana tc the noneal trenu ef trede. And we asfce
m e further et&teaeot, *®d that le thie, mad tfc^t ie ell I
e& p l Q | te eey: If §,000 mrohm%m ef Merth Carolina end
10,000 ^re h e a te ef South H n U m t in th*t dene iatereenree

■kltii s< M t bet*e«t> the M r t t d l


A tl*


th, M*r*h&£t ana th* whrle»*l*r, hn»e errtlrmewely <i«n« &»*- )
l*eee fcr »eny year*, end thet fcaeineea le erewinf? efcch

J . t . O rr.


yaer, t Us ini it wenlu be a m e |rtpe»lll«fi and m eafa
i r i M l f l t V lay dew*, that tH»«i aerehsnta end it e M
people will net r;>fiaae tc taka *en«y in their tlatt ef b h 4 ,
thrcufti their own ban * by the way tf a Oowenment bant
that feapfene te be lee*ted even eouth * r ecutfewe«t ef then*
We have witneeeee, e*«h ©ne ef vital ia ftcn cr lee# exl»r% In hi a 11a#, The next eitnee® will be Mr, Wil»er
L, Sc ©re # ehc r*fcr«ee«ite the Cbaatber cf Censeroe and hi#
Mi te tier: of the will eabraoe prt-bebly a wider
aoefe ef ltf isnd with year perwleai«r. I will be fled te m ■
ewer any queatirne er to preeent Hr. Meere,wh£, in a aere mem
frebenelve way# will oever ttia aubjeet*
The Seerct ry «f the Treaewryj One aesent, Mr. Orr. Tm
•peal ef the mmmmt ef bMelneee Atlanta dees In thin diettiot.
Mr. Orr: Tee,
Tfee Secretary ef tbe Treaeuryi Wfeat peroentaf# ia tfc&t af
Ihe entire buateaee dene in the diatriett
Mr, Orr:

I 4c net know tfcr.t we have any fifuree th> t

*<ml4 give th&t.
Tka faeretary ef Hie Tr*aeur : Cpit you <pt tajr figure*
®n that subject,te we aay

eea* idea ef the ftrM rta§»
...... •

J . X. O rr.



ef th® bu«ir«®B ef the district whiah I# done through Atlrnt?
Hr. Crr: I do net knew ttet thire 1® a»y toMlatioa af
11* t.

® r®t cur c m figure® atthi&tlo frc& eur ew* be eke .

Thi *aorat ry ef Agriculture: ?U® 1# a n l a U f «


Mr. Orr: Y-:% I



Tha 8t«r «U r y ef Agricvl tur«: Tc wh-1 txtcsl oar you shew


tfcat Atlanta d«Rtnaie® thi® ragle® 70* tow# laid ®wtf
Mr. Orr:

I ur net

th 't we mcula ac tfcattftfct» that

I it 4 « t m t « « tlM rtfien; but I

toe- this, m t

it® ce«*


mmrm i® ^ensiumtly miming in tkat regie,. I te aw th t i® sjr
ew» e ip s r im e *, and frets the w a e r ef representative® th t
it t&fcee eseh jrt r t® lucre ae ®ur reprnean tat I an in th®
Tfe# Seeret ry ef th# Treasury* Utet would yet. ®ay it th®
ry wmmrm ef 9eelnesea frr ii)®iaa««t ®f l«r t‘ ''arellnaf whara ae-a seat of lerth Careli*>a»e Mi»ln®®® re# te
what pert ef th

Mr. Orr:

oeuatry 4a?® it reia te seat?

lerth C r n iln a weuld prebably eee*#and scwarding

tc tii# a M eet* u iated rala#whi~h %® a way we hawa already up*
i sat a little bit,te tha extant tfcgtt we haw® »evie wf* thara—
; iMit ^peeking generally urn traditionally, we might say,
lerth Careline* ® toteinese weuld naturally run mp tee*rue

J . Z. Orr



f Baltin©re t n . lew Tcrk.
Th* *©oretary ef th* frmmmryt Dlerer*riin^ tradition,end
ocnoidarlr.r actual faoi?, w
fessr© doce It <o acstT
Mr. Orr: I htve tcld 1 m Sf0O© nerobante 4# bueinoflfi thin
way. Tharo or© probably th t nany nor© a*roha»to oh© do
th® ether way.
The 8©orot~ry of Agriculture: Ik thoee 6 §000 do all their
duein*a« thie way?
Mr* Orr; I should tl ink net.
The Saorat ry af Agriculture: And ikfti ehould ycu e&y ef
South Caro U r * ?
* r . Orr; Ti - •« - Carolina lmair.«saa ia sore X a r ^ ly
latad te Atlanta*
The Secretary of Afrioulturo * Should you eaf that the
U r p r p*rt «*f it® nom al trsde ia with Atlanta, with

r- *

-If rs?

Sr. Orri without any definite information on that, Wrm
SocreV ryf I eH*i4 venture the ©pinion that it wf*©# that we
diviii# fairly nqunlXy th© b uin sas of South Ctrclln*.
Til* tM retrry of Afrtoelt* rat

What ehould you aay of Ten-

Mr* Orr: Tmnsaaott* not a© mi eh so. Th* eaati m part of


J. L




*fee4lm*!ness willi Atlanta

Th* Ssor«t ry of A^rioul ture: Ana msa|??ei|>£i.
Mr. Orr:

K l M iu ip p l 30 ! te l&rssly se# I think.

Itie Secretary «f Aigri matures

Kora ee than with lew

lr. Orr: Oemmtrelally, X shculd think »r.
Ttie Secretary ef Agrioiilture: Have yets any fact# te base
th? t opinion ent
Mr. Orr: I c , sir, ether Hym the representative else ef
the heueet Aelnr business free Atlanta ana fret& We* Orleans
In mmmm terrltery.
The Seor; tary ef Agrimattire: Te« hsive net isny o— peri sen

*ith lew Oriecaie te ehcw whlcrh dcninetee Mississippi?
m . Orri we f e m net.
Hm Secretary ef Agriculture: few, the inti metier* « • > u In
Ie» Orleans fre* V ie * people w%s tlmt the trend ef


ir «erx.-#rce tit t m n i i ftnr OrU»as«
Mr. Orr: * -11, wh? t iid yen pvt la ct# Louie?
Tfce teeret* ry ef Asrisialturei Well, we *et eery little

fre* Xieeleeli


Mr. Orr: Without t e ft lif it, effhrml I *htm14 say ft.tints
«cnlu reelly hnvs s lr r*»r sferre ef the- om^mrm cf Mleelee-

J . £. O rr

1 ,1




n lew Crleaae*

The Secretary cf Agriculture: How about Atlanta?
Mr. Orr:

Ac between lew Orleana and —

The Secretary cf **rl culture*

i t . tcuia and ItUftta*

Kr. Orr: ^ e ll, St. Louie, cf coureo, le a Irrmr s*rket
and probably ite volume ef buelneee sight be l*rm r in Hiesieeippi than Atlanta. X rather tMnk it *culd, taking all
of ite U n i t ,

The Secretary ef the Treaeur?: Tcu

ue a tctal, I

boliovs, ef tlir ,0 0 0 ,0 00 in thie territory.
Mr, Orr: Tee, eir.
The Secret' ry ef the Trsasury? You *ave the number cf
serchante in st**; of the eta tee, but what voltuee of business
le done in i°rth Carolina, have yeu the tabulation?
Sr. Orri I think we >awe eoae, Sr. Secretary.
The Secretary ct the Treasury! Ard in the different eta tee*

ft you are goin f tc outsit a brief with all thie data, we
will wait for it.
Sr. Orr: X will anewer yeuen any ess or two that yen
The Secretary of the Treasury! Ia Via ground to be cower­
ed by another witness?


J , K. Orr


Mr. 0rr: Yes, air. Mr. Wllsar L. Moore 1« o ir.< tr eovar
fc r
The Seortst ry of the Treasury: Taklne the ehoe bueineae,
which you represent particularly, wh*t percenta*!* ef the ehoe
buelneee d e o In thin entire territory le done by yeur fir®
e rs
or dene by *tlanta in thie territory? Hoe t*r do yen>ate thie entire territory In the ehoe buelneee only?
Mr. Orr; That tread® or onefe sodoety*
The Secretary ef the frmevryt lew be ins 1— edoet for the

memmX$ and In order to draw otst the facte—
l r . Orr: Yes, «lr. I should cay im Georgia that Itlaste
uc&lnatee the buelneee two for cue*
The Secret* ry of the Treasury* » e l l f I eay wh» t percentage

at the whole ehet? buelneee done in the State of Qerrgia, for
iett&aae, le done by the ehoe err.came In Atlantal
lr . Orr* I ohsulA eay 8C par sent, easily#
Th« Controller of the flfcrriigyi Two for «*e weuld be
M » 2 / l percent*
Mr. Orr: Y 8, 63-2/3 *eroent. le will m&mp% the wtemd*
Tha Secretary ef the Treasury*
eta tee?

Row r-beut theee other


J. f,



O rr

Hr. Orr: In Soyth Carsllna I ehculd w y tlfti wo die close
tc l » l f the buelneee. In Al&baasa I should say we &1&—
The CcwptrcXler cf the Currency: Dr you sern te say y«i
think Atlanta doc a as such buelneee In South Carr U n a as
Beaten ana Virginia and St* Lculet
Mr. Orr: I think »c, without a doubt, yea, air.

Tie Secret ry ef ths Trsasurys Xr ths shea line.
Mr. Orr: I*

-e ahos line, y»e, sir.

The Cea^jtrailer ef the Currency: Tru ®ep.n *s amsts as
all ethere combined?
Mr. Orr: lr ths .h e . l l n . I should think *c. I kno» .<■ i»

I m i l It a reaem bis aessrtlsft far Ssuth 0&rell«a

&j%d I am fults poeitlwe abr t it In Alabasa.
The Secret ry ef ths TrsaSiryi But you have «e facta tc

indisats ths sonaitlomfi?
j Mr. Orr: l e , air, we have


facta baarlnr out ths bual-

nets *s a whole tr ths buelnsee sf ether tmrkete, only In tc
j tnr u

w*r r *F r s » « V it lT S . thr<m*fc lift territory *'»“ * * •

wslsars cf buelneee th? t they de, Is concerned.
the Secretary cf ths Treasury: Ars ycur rs$rsss*t*tl»isa
in ths rspsrts they glvs ysu, sptiaiets sr peaciniate?
Mr, Orr:

Weil, t ey are a combination*

J . K. Orr
Wiljsar L. Me ©re


the £aorst*ry of the T tacuryt T ? t *ould

its a lire,

Mr. Orr: T* ®y are opti^inta always on the first ef the
r,en th «htB thoy wunt to araw.
The Saoret ry of Use Treasury:

Thank yeti.

*s will hoar

froa Mr. MeSra.

tTJLTSKTOf Of H U ’ R L. r'OI'T.
Tha liarftiry cf tha Traiisury: Plasma stats your



asldaaaa and aooup-.tion*
Mr. Mrei e: ^ii»or h. Moors, Praeidant e f tbs Seuthom
Ststoe 1,1fo Xnsurioioa flaftpaffp *»d Ex-PrssldsRt ef tha
Atl&nta ntisttbarof Con* arcs.
Ths Bsorot* ry of ths Trs^s^ryi Vh* t ie you rapraasnt st
this haarln*, Mr. Moara?
Mr. Meoro:

I raprsaant ths oort erotsl ralstlo&ahly of

jttlaat* in whst ws doalfaata *s tha asaifeaaatam llatrlst*
Tha Saarstery ©f ths Trsasurys Tou sra eddrsssinr yeur-


sslf new to thin partlasX&r district*
Mr. Meara: Te this partiaul^r district, yaa# sir.
Tha 9aarat&ry ef the Treasury: T u «*y prooood.
Mr. Hcoro: In prssactln* tho aaaaar el al ralatiemahlf of

to shat ws a s s i s t s aa tha aeatteaatam district,

I aa prcapted by the inter; ret? tion ef the riewe of CeȤreee
r.e I eee them* **hen they authorised the eot~b li*hrsnt ef met
leee than ei ft.t banka end m army as twelve, evidently, they
teek intr ccnelder* ticn the vaetneee cf cur country snd the
fact ttat the cecande

requirements ef various eoeticna

ere net identical*
The State® included In the territory which we cntlino
at the ecutheaeterr. aectien, while harmealem* *nd well bal­
anced ae an. cocncafc unit, wary In Indue tr lee, » i t l a eucoerc­
ion cf orcpe* the market perlede ef which fella* m i
J at «r the year round.

there are, however, reqwirecente and

ccnei-ernticr.n which In acac reelect* are peculiar tc thie
f eeotlen.

Th« fWmdanantal principle ef the new law le a

aamea trail aim mef reeorvee *nu elasticity ef the ovrroney* It
e« erne t© ae—
The Secret ry i f

the Tcaoury* lew, upcn these jartioulrr

fo«turcef euppoee you emit that and m te the faots thftt
j we r e t i r e , feaotatse th t le an interpret*ticn w# are bcuna te
cake for *ur*elwee,
lr* Icerei Well, the law smile for the lecatleo cf bemke
tc be based U|*en csmvsmlsetss nad the one ternary funiree ef

ee«*erss. We have

rraneed the sootfceaeterF aectlcn tc fit


W i l * r L.


Into this requirement. We have Atlanta, net beI cauee It le our own city, but because ef ite pecfgra, hie&I
rna oosueroial rslr tlenehip tc the territory. Acoeeelblllty
•sens ocnvejLlerec.

The paramount porpeee le public eervlos*

We present «e an exhibit s asp showlnv ths reilway fasllltlas
f#nd nail fesllitiss* Ten will find that the simps of the
^srrltcry le such tliat the extreme* ean be reoehed free.
Atlanta in frcs twelve te fifteen hours.
Ths oemmaroisl relationship le &sstemetr»ts4 by our
than* slsarln*pi m u by our postal receipts. It seems te «s
these two f tens alone are a fair test. The development ef

rueourcoe and eoraacrce ef a eeetlrn le follosed by k n l l A f
fund financing.

farm and factory $redmets « f thie section

lamnsnt to the sum of two billion d^llare. The pSfmUUtten
It about t&irte n and a <t*isrter million. Were than fe X of
n Jf
Um merchants listed in the ccmn.erelal arsnol » in thie


section buy toe^e In Atlanta*


Jobbers and manufacturing

;-#f*snte delnr business in Atlanta sell §360,000,000 e year In
this district. The mamufastmrsrs swonts with fcssAffusrte re In
cur elty representing the inpertent industries In ths United
£t%tee do a bueiness ef >160,000, 00. This le dons by *onceme here sho are non-reeldsnie .and vhe have no ssmttnSttSal

_____ ______ _


f i l i t r L. Wesrs


interest in Atlwata, Our local nanufr etursre, »ere 548 in
this oountjr, according to tho census, vinufnoturs a
r*riety of articles number inf nearly 500 %nd did s business
rrur years

of $43,000,000.

rate of about six por cent,

They are increasing at ths
we eetiaate that prsbaWf

this lac t ye? r they did a buelneee ef |E ,


Thie ia ths headquarter* for ths railway eystore
operating ia tbs territory tstween ths Ohio, Potestc ana
Mioeiseii pi Siwsrs*

Railroads are impelled by business

reeeons in ths location ef thsir tas&psrtsrs*

Thie le

tn. i cf t) e telephone, tslsarapfe *n4 express •©aspanles*

Tha bank inf ftcllitiee will

broi.ffct to ycur alien-

t on by the features repreecntinff the baaJtlaf lettrestt*
Tfes import nt question ef cotton will be touched n on by
Mr. MoOcrd, aa tc the peculiar cmdi if <*ne in thie section,
as to the demand for ucnoy in the spring to plant ths crops
and ir ths fall »T.d early winter non the, when it ia mrfcstsS*
The arse cf this seoticn is 332,149 square * il e e ton#ninth of ths territory cf ths Onitc<s ctstee. Ths psfulatle®,
ft I st U i ,

le ia #803,4 3, cns*a«Tcr.t)k cf the tJnitau ft tee*

Th® faru produete, $ 1 ,1 1 4 ,0 0 0 ,0 0 0 , ome-eeeenth of the United
ft»t#»j th# faetery proUuau | l ,1 8 ,0 C *,0 0 0 , one tw«ntl«th

- - - ■— ...
.- -

....... .... -

_i ----- --------.

nrii. i ii
r riM

riim r




ti tfcs Uni Mo. Sint «•
Tha Stor«t ry of tbs Trs*suryt Hrv* yss tl» p » r c « U | i sf
V at from Qecrgls?
Mr. itesrs: T«tt ws ksws th»% m mrM m % %f stmts*. T&ts
U r U f will &• su iKittsd to y<m ia full, sc thf i you <m» h#^<*
U m c sa arisen® a
jc p
Th. Secretary of tha Trananry: Th t «*y ba file * na wa
Hr. K era: TJ.<&. at)tl

V.u M M U



h»*a baa» warkaA e»t a ..a * * U C

•meruit.' t •

u.r-rs - .T, M

h a w gattan

tha oa*Maar.ial ralatiMaaWI*rj<i tha tiu •■r f *
it >



tr illnr in thia oity. by tha * t l r n u Cra^it » « n .' i * M d » « w

in thia oity, NMl tfc t h a . baaw ahaeta- by tha Aaerisaa Austlt
C K ry.
l .J
Tfaa Mamfaotnrara "ipnta, «1 th haad<jtt»rt.r* in M lant, —
Thu Saerat-ry ef the Tra- ai.ryt ®r« ®rr b»a b r « * t


th*t f*o t, h-a ha M l !
Mr. hoar*: T ;« , it i* i»ol«Ua4 in thia brtaf hara. I j M t
rjal if! ea.ll ycur » tta> tiart ta ahrt ia bain. 4ow. aaaaiaraial^JT
m s tha ax ter t ef Atlanta.'a ooasaarea in tfc. aavan atataa «r
the a»nthaaatar» AiatrSet, a* a . M i w i . i t , by th* f*#l
Umt 83, 74* aer stoats 4#ia?r S»si»*«s i» tfcsss status h*ss

Wil*«*r L« Me©re


bougf t gced« in Atlanta during the past fir* y**r« frr» &
minority ef rur rbolcs Is a f.lsrs.
Ths S so rstry of ths Trs‘*s*>ry: Do you nsan 88,000 for ths
tvs yssrs rr psr snnw*7
Hr. Xosrs; lo , thst «cny aorohftnts trads in Atlanta and
i rs llstsd le ths osaasralsl assnslos. Tha fust Is shown bjr
tha sard Ir is * of tbs itlsnta Crsdlt Mans* tsssoiatliR, cs»posaa sf 170 BSrOh&nt* tw m f i f t a P i n who haws eot^Mnsd
thsir inf ere at Ion for mitu*l bsnofit. Ti*c l«iif*rs r*f thsss
fines ana sssiymntss scntsir* ths nm ss of 92,140 norehisntft,
of who® 88,743 ars Iso tad in ths ssuths*st«ra diitrlet wsrs
d4strllttt*4 as folls^si





I3 f 167


s tei4


z9m z

Sooth Care lin a ,

1C ,360

garth Carolina,


This is osrtif1*4 tc by ths A»sri w n t

soi-nte* U s cards in ths Crodi t Fans1 Snd@x*
Ths Ssorat ry of ths Trs**ury; Bkw Is t k t diwidsd in
dsllart and
Federal Reserve Bank of St. Louis

sssits thrcu*ho-ut th# district?
............................................................................... ---



Tilaor L. Moore

Mr. 8»erii I 4# not


th©*© fliptr©© ar© available.

Ttis, th® M r f h l i t t ' n4 taMfaotertra *<*s*nt© nra frl'fsr. fc«r©«
The Sttr t ry of the Tra~©ur?: Tsk© it by ©tat#©.

Mr. Heor©: In Cecrgr! , th©r© *»© § $44,0 00,^00# Bierohante
and M H f ^ s t t r t r t «ad —
Th© 8©©ret ry cf th© Tresaury: In fiv© years?

Mr. K«*©roj Thl* 1© tak©n frr © © y©*»r, #44,000,000 *©rft
j ©bant© Bnd manufacture r©, ©ad wannfaotur©r© areat©,
< 13,000,000, aaJUnr > tcial tf §63,000,000.
Alabama, $S, 200,000 iwsrerani© and nnnufasturera, am
*. r.ufaoturer* «Tcrta, |8, 0 0 ,COO, ffaklt.r * tetsl cf ««»•t this* over tl4,



Florida, merchant© *n& mmmf&o%urmr^9 §3*000,000, mrjnsf&otnr©r© a®»nt©, t§,#00#0@©t or a t©tal of #9,000*


South Carolina* merchant© aaA aaaaf »et«r©r©, §4,000,000, j
1 tt»mfeeturar» ngenxa, $ 4 ,9 7 1 ,fOO, or * total ef 18,000,000,
Jtcrth Carr'linn, aerefcaata and

ivnuf?.eturere, 12,883,000,

j »• r.u. * tur ra a«s»n te, 13,101,000, i> * t#t«l nf i£ ,7«5,000.
Tom*©©©©, a*reta»t© and uawfaottirtirs, §3,008,000,


» p i t « f # 4,446,000, total, tT,&X5,000»
Kt©at©©lij>l, K#r©banta rna a©tmf*otvr«r©, fl,fS S ,0 0 0 ,
aaaMia*tur©r« n am ta, *3 ,0 t r #C00, total, |3,$2?,G u0.

T ilmar L. Mcer«


Un»- a tribu ted, | 6 ,378,000, aoroh'u&te and — i f meH f t r i ,
@00 BMHiffoturer* a^inte, total tia,f?S,©00*
Unking a total in the never etatea rf ncrchante snd
*a:nu i3tur«r* §74,308,000, aam fiotartrt a*mnte #51,784,000
or • total of $1 *6,1 77,000.

rare and Jebf»#ni tlareuffcout thia »eoti<*,

tha l a f o r ^ t i a i m hare be in ? compiled liy a minority, be ©muse
s« war# W ftlii to m% all of t1ae le irivo ua tha information,
| find »&ny of Um t do not like to do tfcftt, ae they consider
tb**t their private inf emotion —
Tij* - rr cf the Traaeorys Let e . a«k yeu, yen «t*t.
t'tha cuEoar tf M r H u a t i iemltnr In AUnjnta. h | p n « th*

earna aw rodent d«sla with tfcre* or four houee# in Atlanta;
ia bo counted aa three or four norohan.e?
Mi*• Haora: I urvvarat^nd not. It bee t* ar ohecked out, I
Mr. Orr: Tha ®ard la taken for am^fe merchant tti tha
<cuaoa ha bvya fr«a are chocked en that n rA «


Tbc Secret*-ry of th

Traeeuryt But in oak in * up tha total

f m ttoulu alrply count bis one, no natter bow many ho 4«ali
Mr. Orr: T«««


¥il»er L . Moor*


Mr. Mcore: That la, wo hnve retime fro® only 219, only

I. I «r o»bi9 J# the l A f e m i l t t

hsve raoeiwed f r « theft*

T'*r% ar# alec In l l l i s t t , 46& Krimfficturera a<?mis MXlifti
f r m har^ fcr b
jdj -reaidant concerns, and ini hewe r t ln n iA
fro* 150, er 31 per eer.t. Thoae total retvrr e I read tc yen
5 a few n a i a f


fro* thrt m ille r f i r t n l i p cf hcueea.

The Secret ry of the Tre*eury: Ar*d you hnrm r ft ruree
tlwst ocnTiy a» 1 1 m ef tbo tetri wolur# rf



tiieae eowar&l f,t test
Mi** M c m : I i a * g | M th t will


> practi**ally i»*:e*«i&lt

• * We hare feta, of sooraa, aaad tt#na tlcnt ra^h

lirae a* rfi#fur§ti# Mwgffteterwt f f i i i t i and. farm and « p l~
oult»r*X product® and all cf thie ^e hnve by Maiaratlwe date.'
The Secretary cf the Traaauryt Tern hare it in tha &ri*f
thar , hare you?
Mr. Moor-: Y« , sir, we haws th/t. for inatanoa, hare ia a
I 3«efticn #f f a m velu t l m of Issnu# and iaprowerente for
1S1C ae ccm* reu with 1S8G*
T a S cr tPjry cf th* Trtaaeryt Well, th t ai<4i% be filed,
i> fcu .o *e emmet aarry theee f l o r a e in cur he*do«
fcr. Moere:

/ua tha m in e cf t*alve la-din* arejre in tha

aiatrl t,anah aa e*ttea,eern,wfce?t, oate, tobacco, hay,

*0 1 $

r'rila e r L . Moore

pete tees, rice, flaxseed and bwekwh**t. And ihers is shewn
the increass in j apulation in sr ch l U U
ef I M O to 1910.

froa ths period

There is als<* the production ef pig iron*

* • &a*a *Xi thoss osapnraA.

Ths values of tha ■inoral out­

put and t; s lufdsr out, ana in addition tc that we rise hava
data along tha linos cf ths oetten arep and ths com crop
r*d iha ethsr s trioulturrl . roduats«
W# ?rran®*d those in asBpar&tias 4sta baames as l*sa
you nsr. U s .a n would oanaldar not fer ted ay cr fc r ths past,
but alse would feava a vision fcr the future, and in arranging
ths laaatloa -f those banks you would take that into omalderatien*
The Secret ry ef ths T «usury! All th t a~y be filea na Sft
* 1 >it te yrur U atisen y ,
Mr. Eesrts Tc,s.
Tfee Secretary of ths Traasuryi Tcu ai*fct fit* us ths
sparer te vsluc sf thess products far ths district, if you

it t bi latad tfeara. Te* statad that ths • #rlaal tural

preduo* s wsrs cr&r a billion dollars nnd ths awaaf « utlil it
praiiista ever a billion dollars, aa 1 rene&bsr it.
Mr. Ileerss Tea, t«c billion daliart w*a th* sua total ef
*hs f ns ind » %nufj ctu rad products.


‘ ’


W t


W llm r t • Hears

Tfca Secret
Mr. tfeere:


4 30

of th« T r ^ n ryj

These ws have I


That is sufficient.

I say. *©4 ths in*

j eret®e iif persist ion cf these at tea *nd the increase In masufaoturea by thc«e etetse aai the inert^M ef creps# tftklnr
intc c c n i i w r ticn tht orop ccr-aiticn and the—*
Ike Searet 17 cf the frts auryt Tee# yeu fe*re referred tc
th *#


filed aa year a x M M t .

?' ~ Cor; trailer rf tha Currency: T

t 1* rr inore5it cf

~ir y**-re cr Is that the etetaaeat of the whel#
Mr. Hears :

I de net Mtteia *e hr?# aoared tbe^s ur.

Mr, Crr: 1 t! Ink the fliurti thiv 100 per eant«
The Secretary rf th. T

Doubled ir. ton ysar*?

Mr, Orr* D e u l M In ten years in these st*tee,
Mr. V^eray ffeer

ia aaa lfel»| I wist* tr call yeur attaa*

' U f a %e* ana tte t is the aaqueues rf crepe 1® thsse esc tier®,


ft t is til# or©** *e rsise in w is r s l , sucii &« the grate mid
•c item ora pa*

Then we

S i? dean late Florida with th§

f citrus crc-p, ihr t it six t# t^elsa ? II lien d c lla r«~
Tka Seor: t-ry cf tha Treasury: Shear us the ret*tier, if
yen have it, tha v&laft ef it*
Mr. Mr era 2 Vegetables, # 40,000,000. S H d l fruita*

i & §mc>€’ Q—


WiJjB^r L. llcor*


fba S®Qr*,% rf ©f tfcA "r#f »ury: Tfc*t weuld nrt be ©f wry
laich v&lue. If yen ear. nhev us ih© rot*ti«sr* m s th* vftltff
lr, ret tier, *a wmll nn by inertht, 1% mmy he « f neme servia#
Mr, Uccr&: W» ha rc nct the% pr*pr r«d*
?h,‘ B^orftiry cf the Treasury: Will yet prtpan t r % m *
*ub»it thr. t?

OecT r:

The or»je lnalof.te the tin *. Fcr

aitr, e cre^a In Flerlaa oco« In lr. th* winter.

Tb« Scorti&iy cf the Trtsiurji I uadAr*t»rd thmt# tout if
yeu will p r t i i n it •hc^lr.jr th* rot^ticm mm al«e the value

*y ftCG-feA*

, .


Mjt# Kc fir#I Wt vinh tc ©all ycur Attention tc wfe*t «r call

fra*M |> ftrtlnt

m b

* s»A «*f>tt*l n u l l i i i l v i r i ,

fere ?c in * fao i lnaio t« thA pretent AtstuA *md p u t
«r®*th or U * eeutha»aterr. 41a tr let. At te the fvtura,there
j le u> aocncale *r»irltjr ferelr.n

•m saerjay ir.te this n *.

elon Crom the tarrltery north, e*at fjad m a t ef it. The r«turn tc the f-rnsr for hi*

«wd l»b^r ere * * a t * r

In the u u t h Atlantia l U t a i than in any eth«r p*trt ef the
ccurtry. Th« j,reprrtio» of tho lr.T«atmar>t In land aa u
retume for hi a preuu

a In the aevth m ? r .tlc at# tea, the

* • * * • f'*r “ r* * • l3 £ .*4 , u *


« ,* »w

*** ere; value

Wiiie r i . Me ore
John K, Cttley

f«r %ere


2%9 feeing 80 ; er oent, nad that ie hi*fcer tom

1r way ether eeotion, next te it be in f the lew Engl wad
et~-tee, *hioh ie 56 per oe&t. We eiBply eubalt that te y n
t< l i i i r t e whJtt ie the po*eibility of *rewth in the future
ef thli eeetirr., end attm^tix*# people to It.
The Searet ry rf the Treneuryi Thet ie all* tlmmk you.

The Secret ry of the Treaeury: will you etate your x » M t
re eider oe end oeeup»tleat
Mr. Ottley: Jofaa I . Ottley, VI oe-Preeider, t ef the fourth
l«ti€ttal Bank*
Tbe Secretary of ttv, Treasury* Wl.m d© ye* repruee*tit Vr«

on% the Cleeriaf Hou«# OeeoRittee, ae

m e cf the Joint Ceeetitte*e to preeant this o^ee for Atlanta.
The Secretary ef the Treaeury: Yet? are aothc rl««4 to epeak
for the Clearing Houee, are yeuf
l r . Ottleys Tee*
Th# Sears V ry ef the Treasury i H te you m y oredertiele
whiot* you wish to euteeit < may resolutions of the Cleerinf
Mru$m f

Jchn T . Cttley


Mr. Ottley: / * tc my i Verity?
T i * or t ry cf th
M* *

free** rv: T o.

tl*y: I c t sir. H #rlutlena harts b

i ;&etec by ths

/ tl?nta Clearing Hcuae 4 f U f tint a Cerri ttea to t e m with
a feint Co? It tee of ths Atlanta f*hmsb*r cf Caspar*** and
thfet Joint Corjgltteo, ef whl f * r . Orr ie Chairman* if yru
: &a*|r*—
The 8*eret ry of th4 Trar.aury* Tcm te»*a beer ohoaea by the
Jrint Committee to r#prea*»t theae be&lea her*’ ?
Mr. Ottley: Tea, a irf In connectlrr, w i ^ other aertlersn
who will ftp c r*
Th© SeereVry of the Treasury: Teu Knew th* problar w
hnr® bafore ua, and if you h a w any fac a, we will be Tory
rlaa to recoIra them*
Mr. Cltluy: The Fra aidant cf Prlnoaton University, no*
Fraaluant of the United State*, In an admireaa before th©
srloaa Bankere1 Aaa«oi»tIon at Denver, In ISC®, laid down

. *'i:

i, i


t mil th* paapla af I M i awaatry ere *r.tlt-

*<I»ftl banking f cilltiea. Th* ;-r«*«nt cmrrei cy law,

with ita prevision for th* eat bliaha^nt ef Federal Reserve
Saait* ia the realization ef what than e#«t*ed but an idlt

*t an*


John K. Cltley


The 1» * urdr ubtcdly 9 H ) t M | U U i rivin* tc the peesle i f
all eeotlcne cf the United ftatee the larraet p ctible ben•f i l e derivable fr<m the ejerr tie© cf eueb banke. fhle 1n~
vclvee * die tinetvdly t rritcrial dietribution ef the
oentre»j or, In etfc *r worde, it m ee eitttee eueh & divii*if»
ef the oeui try ir tc reficnc, ae will five eneh n g l M ^
individual ei «ni, ic *

free r g§*grft,fe&cal et ndpcist.

rbe i n d i e i U 4 rericn ie then tc be served by « Beeerve
Bank lec&tcu *ith in its eonfim s, et etieh n point ae will be
prever* bctv

*ra hieelly oentml sn4 ec^L&roially adequate*

Let tie oensiaer, firet, the aivieicn inte r *0 e *« # I
eubrnit th© ;x$>eftitlcn that a •rtticn*, In order tc t?#mire
the M sievm advant®«i cf the new eye tern, ehen'd be terriU ri lly erftf ot.
I f , within eueh a reflcn the natural reerurece are euofc
fe te sake pe^et&le a diversity of e^tlvitie?, sctmeroial#
agricultural, Kininw end naimf aeturln§, ec «b<& the better*
Oeciarr, hifjr liy, it eppe rw logleol that there eheulo. be
©rented a »euthe#,»tem r <ricn# tc embrvm $ e y, the eeven
States et forth Carrlina, South Carolina, Oeorela, flc rlda,
Alabama, Mifteieelp^i ana Itomeeeee. Itr aeete the deeired
reoyire®e»te in joint cf *ec*r? hie* l ocap&otnese mid pfep»

Jt hn K Ottley



aloftl outlln*. It it eueh »n *ren a* I haye d » .
" 1!>ua ln

tc it# aeurotia er wealth. I* in an Ideal

illustration cf & territory In which agricultural, Kinln*
mufaeU3rln<» tu&x ocBBarolr.l intersets flourish,
M - I oall your attention tc tha fact th't if only
then* Citiaa r«c<-*nlsed und*r th* cld *y*t*£ ea mercy nentera
b* aolcotau i* Hegicjiel Bant Citiaa, tha tar rite rial dlrUion

ft th* country ur.qusatieR Uly ccnt*apl.^t*d by the La* cannot
l»a aohiorsaT

VouXa th* epirit ^f th* Act 'ce reelleetf by alt

*iulnr th* oourtry Inte wed-e-ehaped *11 ad a ruinln* very thin
at tha cen .ert Would it net wxjueatlonably further th* ln ent
ef the taw tc blTia* th* country into *elld, ' ar*sa,
•rob of th*** te be aenred by a Federal Ra nerve Bank? If ae
( r.u I


th t tha l o H o ef the elale la ra-dily a parent)

or ^.tirn tf th# ••u t h iR it t m rerion, e*«p#e#d ef the
1114,1 ttatee n»«ea9 it a forefexi# e#»t#lit#i#R,
AtgCX^nta i# th#

hi##a s#nt«r ef this Semthe&eterr.

ft«fl#ft—.* f 9t of «hloh you liifi e#«lftr d m e M t n lien,
Jtlaata 1# th# o c ^ r o l . 1 mn%&r ef th# Set then*terr Hesien—
* at teaeet I be. 1st . yo^ will eensldar lroer.toat*b]a t f u r

ht: rir«c

^ #via#nc# : rucent#d*

A mci5#nt #in^# I a. oka cf the resources cf thi# recle*u

________ __


Jch* X* O ttle y


C t wrce I * inclined to fellow r tun 1 law*. Bsnkljur fcllewa
ctreer?** The t o H t i r ef bafikln^ 1* eh«rlnff« and it la
with Atlanta1a bank ole&rln'*® I
ted utter tier*.

1th te er*»r *e your Interes­

The bank olearin^ rf Atlrnta for 1913 wars

J7 5,604,193.
In this senmotlon I will etate th*t ib* cue test its
Atlanta cf 'ler.rlrg la c**ah cett le^eis t dally and nc c&afe ef
oaah here in check. I alec wish tc atate in th t ccr*?i3cticn
th t there la nc artificial seana, that la, no free collec­
tion, to Inauca the collection of cut of tcwr check* axoept
w - t naturally owae In; th® un lfom collection eh&rm being
©tue# both tc *ruatosrere iad b; nke.
The Secret ry of the Tre euryf Whnt Ac yens %nf o bank
Mr* Ct,tl«y: Ve pay three per cent If a certain asount 1*
kept hare* We pay nothin* I f they keep a snail w « B t .
Ths Secr^ti ry cf the Treneurys Teu e.ny you fcawe nc free
checi ccllectioneT
Kr. Ottleyi i c .
The Secret ry ef the Tre*eury: What do you cJrreef
Mr. Ottley: Te tihrrm, ~h*n a a r n t i * re aarcalted cf
l&OO »na cTor, esi#-*lghth; If ttttder ISOOp a larfer aeounti

in fact,

It la 2

cent a a hundred up tc f500# but any number

Jciaa •. O t U e y

4 -3 7

cf C! *ek* 3*« t»« -reupsd m u tre* ted *> ntAinf «.

th* I* 00.

Th# S>cr*t ry cf th* Tre *ury: Is th t unirorial «



fems u r n t all th* ban** in JUlaataT
Hr. Ottleys T **.
Th: St oret ry of th* Tr*r\*ury: But yew it pay three p*r<*mt


oil ^ la n e e 0 ?
Mr. (Htleyf Yeet n
| neoe*

pry three per eent,

n 4 %% % %m d«a»ed

ry IVr th© reaecn it aete ti *» ef feet tc the ciolleo-

r el r f ;S »

the feet th*t Atlanta le net e reserve

cen;« r •
Tie 8aaret ry cf the Tr« ,*ury: D

your b - k elerrin"* lr;<n

"lud* the olanrlr.f* cf th* otPteT
Ur. Ottieyi I will

m m

tc that. I he,we It fttlly oewerw4 1u*t

Th# $ cret ry cf the Tre-eury: V ry well*
M . Ottley; the bank Qlmnrinm ef Atlanta for 1913* were
1 * 2 5 ,6 0 4 ,1 ^


it m s i fcr a el ty whe«e p»pul*tl<%

hy tha United St tee Ceneu* ef 1910, wae 164,893. The 1913
^ ••r ia ife ere twelve tl»ee ae large ae these ef 1893*
iollewinP table ehewe the alear2n*e ef le^in-r sou them
eltlee, incltadlnif eltiee located in eewen af the etntee
^jstlcmd in the district outlined__


K Ottley


Tha Saorct ry cf the Tre eurys Ia thia table &ad« fcpOK tha
| atM iTn^t 1 ? . fe* you hawa In Atlanta.? If act, tha c r ' riacna
o .*.art cf nc w*_lue.
Mr. O t U o y : Mr, S~er#t ry, I h im thrt ac re red. I anti~
oip&ted thrt th t xcda fe aekad* tr* the olearinre of
Atlanta, fcr 1313, tha mm ef f i t s ,§15,43® haa baen deducted,
j representing country chcoka collected throu^ Clearing
I Bone* In erdnr u> m^km correct ceaiptriecn. *•* thcao c«ptriaona arn after h* ing deducted th# |l?8,000,000 collected

t rru?& cur Clearinr Beuce*

e l^ r in m


cf ths prlBalftl cities I will juet touch

f «!«-• briefly, Atlanta headlu* *ha l i .t of any -sity in tha



Tl.< Sccr*t ry r f th* Tnaturyi Jv*t

it in rcur.i

i“i *ur«e*
Mr* d l t k y t Atlanta*a clearlnge were i&$8,000,000 in 1913*
*fc4t 1® an Inure a ee of 513 par M a t frasi 1903 to 1S13. I
will not trouble you tc mention the other feints, but Just
by cctt;.r*riaori will mention ene cr two. Salwa^ton,
v£-IS,000,000, Urnvhla, 1431,000,000, Richmond, |41§#00c,000,
I Fcrt Worth |41fc ,OOC,COC and ae an.

Alst , A tl n ta, ?ieide fro* hawing tha l a r i a t clearing,
jhar ineraaae
Federal Reserve Bank of St. Louis

in the lact ten ye era ia ahead a f any city in



Jeha I . Ottlay


thia territory ^M a h it r«* ayplie.*nt frr tha lcettirn ef me
^ r ; » t‘
?x*d i t


lu cre



Ccwp t r a i l e r


a llie s


nt* **j rf incrs* **a b

ahfta* e f any e t h e r o l t y ,



tba C u r r e n c y :



. r

that are
O ttley :

a k in *



Cfcattanrafra b ^ i n ^




34? j- r ©ent«





dc yev

Bnnk lr.

cenaider the
that t rriteryT

t h a t we h a r e l a i d out?

- trailer ©f th* Currency: 7 «it that


*&ak of*

Mr. Ottley: Thore ic Atlanta «a i Saranr^h end Birain****
and Chattaaeefpi and Columbia. That m w r n th® ll»t aa

Thc Saerat«ry cf th# Tre&etiry: Teu did net #rive u« tha
* • » * QlearJn** in that* ether oa*pstltiwa oitle*.

O ltley :

I w ill


~lnd to r i r a than tf y r u . Itlai t a f

b W # O O O tOOO| an i n area** of 312 per seat* Th* e le ar in jai
cf C a T a n r a H w «ra t380#000,000, w it h »n l * e r e * « e tf 4 3 ; ar
cen4 .

H r»ln #&t»,

#173,000,000* er an l n e r e a » a ef 175 per

01 ttar.eo«9 $136,000,000, an lM r*a *e ef £4? p ar ca n t*

Oelaabla, fS7 ,0 0 0 ,0 0 0 , th# I n o r a a * * there mat be I n * avail*
ad la, that la , ^ a c o u l d n e t a ee u re tha b*ek f S «u re e ta m&Me
i t U| •
A aid e

from tha * l * & r i n ? e , te i h e v t h * a a t i T i t y a f Atlnxttava b u a l a a a a ,
Federal Reserve Bank of St. Louis

tha a e t u e l b a n k i n g f l o r a s


oo ap ll**



Jrhn T * Ottley

! the Clewri»g Bcuii banka w@r


oosiolidiUd by the Chamber ef

nmmrom for the laet ye?»r «n4 tt«unud te 1^,179,



It te n< teworthy thr t Bre&etreet re.rnrt* the '‘lee rin g fer
13 with Kciw Orlttti or the ecothwest with a leere&te




percent ona Richmond en the nertbenet


per M n t

. with rja la art a eo fer A t U i t a , between thona twc celr, e. ef
■• 1 , er cent.
Another way of D m * ?tititics cf Atlanl&fe buelx.eee
» m be net#4t te thfct Atlinta1e ole&rin t& for the retie tc
f y
r in^eelte ef 3G*a per aent, that ie§ 30.3 tim e &e
ee her **ej’ceit«| Blmln|Shaiif S«l per cent, Sfcveimah, I8tf
| per oerit, Ch*tt&nce$e, T .l per cent. Theee cover the ol tlee
- t « re •M a t t in g cilice.
The cerp.erceef AU %nta w*e rf e*if ficient a a p it B it ,
her c? 11

ci 11 tiee cf euch cc.nwenience# ee te v^nrnt cur

| Cl#«riA| Hru*<t in 10OS In idoftlnt the pl*n of eiaarin*
-Irect the State* ©f Ooergla, 1 lg

tad Flerl&m, t k m

of th# Stntee iuif^#tia «e prep rly belcnrtnr te thle
fie tier,, which neene thrt Atlanta d- ele direct with 1062
bej&L* In % ee tJsree State* in thle capacity elcne thrcmi£i~


Cle* rir r Reuse*
Atlanta wae the eeeend city in thle ccurtry te adept

j ti*e ey s ter

cf clearing ©ewitry &e*fce direct <&n4 tca*y.







with th# #*cipticB ef B c i i n ,
system cf its kind*
weuli be

1ms th# «est ctsg&ete

This orgu^stiioe and trained force

t the d ie p a a l of & Federal tank when needt*d te

carry out this ferturo at contemplated in ths Law. fuln ess
.r*ne*oted with Augusta, ^ c c i., *«wmnnafc, Biratngbse, Mcnt§oeery,

Azmi aton is handled lr, the usual wr.y,— cm ths

reeiprocf.l basis* All other c?»eh iters on towns te ths thrss
Stat «

rs ole red direct, the aaeimt beirir in 1913,

#1^6,915,436*34 «

Ssdvstiag this aaiotmt Is wee the mm sf

fc tt,0 S S ,7 6 6 .3 1, a frs t;r frluie t! r that listed in any
ether Southeaetern City. This eu» is practically equal te
the total elearin.f* cf Cclu&bln, Ch* rise ton, Chat an* c m ,
B lr K in ^ ft tina Jacksonville; also practically t ^ u l to tbs
ocfcalBatt o l s e r l n ^ cf lii. shrills sad Sawnah.Atlanta1s suitability »s a slcarinir center le forcibly
illustrated by th# fact that two ef the r e t e s t publict*il~
ity cor per tirne eper tin* lr. the ior' h thus e® loy it.
The ^satora Union clear* throng its Fiscal Asent in
thie city 4854 p*int# ir the State* of l l t t e M , Florida,

08 rr*ia, lerth Carclir.n, «>uth C*rrlin», H n l N l p p l *nd
•re*.->a (the M T »r 3t*t«* en^meetad «e i Southeastern
* 'rtrr»

to thnlr


e d i t i o n , ter.XneYj end Tirsrini*. Incident

thou rf racittanoe, caniy a eae.ll srrtlen of

Jcim X. Ottley



| thie bueinteo i a« 8 t .rev <j rur clusstrln^t.


Tha Scut ho nr. Ball T l l t p t o i

Telegraph Conr^ny clears

306 points ln Alab»r r t Florida, Georgia, Vorth Carolina
South ©are lima*

(five ©f tfe# saven states cf tt*

c<i ’ hv s te m r ~itr).
I tubalt,

«pntlsr* n, th*t this ass of Atlanta as olenr-

inr headquarter* by tve s» h astute snd wall cr^nl»#4
ccr^TBt CBS, is trngLfrle etidenoe of har seoeselMllty rnd
the ©f Ksr facilities*
It 1« pair tad out by tom® oitSoa reacts fro® the ©enter
ct the region desired thst they lend boss aoney in portions
of thia region-*

Such suss as they dr lend, ho^SYsr, are

trifling ©©ap^red to aaxiaaa borrowings far err


I law Tcrk is tha real ronay mrfcet fcr this Southeastern
■ ' & cr"

Tfco Kcvlng cf our act ten ar.d rthar i ^ w i aoiitharn

I crop* ra ulres at N r U i n H u e u

a lj*r«* Mwvrt rf re

c »h, -aa t c acitis lit ie fit t i a n a Wrrwrer*
While we are on th* t e ^jeot I would juat ilka tr say a
ftr^ # th t in tha utesinf of thee© orops the point I siah to
at-’ set, si a till* i« In bahalf ef Atl*j>tc, but ep-sftkinf

* * luestlen of * re«rlftn *e m t U a a d , a oesrnot *raa

j rather th n a l«in#»dr**B out srot Hire a

s> s

str in g ia tha


John K* Ottley


f et th t It is not eo *ueh a queeticn ef orsdit in the fail
cf th* y*&r, but It is a queetlon of sr *h.

When it eo**e to

th* qu*eticn rf Borin* th* ore; $ w* dr not r.**d credit, w*
nsec c**h«
Th© Secretary of th* Tren*ury: You cannot *et a»*h with*
rut ereai t, can yc?u?
Kr. Ottley:

I t , but th*r* 1* euch * thin* ** he Ting

credit without fe win g th* * » • %
to ■ m tc

*snd it i* vmmm**mtr§ fer m

it at th s ti®*.

Th* Seoret ry of th Tr***uryt But you s»u*t tevt crcait

Mr. Ottl*ys Y **, but *t th* * u *

tla* th* *r*dlt d*** not

*»*w *r th* requirement of th* oa*h«
Tto 9**r*t ry cf the Tr*a*i ry: IT .


»r* Ottley* In thl* m m m oUm , I may m y th-1 under th*
ci“ *y*te® it ha* ha o nc**«ie? ry to ©r*at* b©rre*lnr **p&»-»
ity with th* rn*ej*»i*#d ®os*y ©*Bt*r«, m d in order tc 4*
*c hi ry re«orTtm haws hr,4 tc !> 1*4 «»d in bank* in th*
* * rth »»* • p»t. A So uth s* tern R fion wr.uld • URinat** thle
n@o*»*it|r# &##*»** our ro*enre* and *r*4it eemirity would
b* on th* sround, *o to *p#*k.»



matter ^f irf rrtu. tier* I

tc jpt

Jrfcn Zm Cttley




thee* ilguree frt« the entire Clesrinr Wcm t b%n>«, but did
I net fttootid, but I tr ke It tb»t thee* fi «mree repra er.tln*
one bank niitft be ef to&e lafenrntlen tc y?*u "entleaea * •
it eculi be probably typloal.

Fcr the ytar 1B13, whlsh in

thie pirtl«il&r eectier., ~ue tc a ehcrt octten ore? lr. 1*13,
the 4w aUi fcr »cney wr»e atrcn»@r 1b thie particular eectirn
thrn uaual, th. b ill* payabl. fro® tha Fcvrth Kt.Uer.r.l Bank
awentfpea fcr the year, whleh re I eay, «ae eji *xtrer«ly he-vy
year, the a m , In reund flfuree, cf #381,000,
The Secretary ef the Treneury: 0- ycu eeusit ae M i l e p y®ble Ckverneient de ceite er ejeeial depeel te?
Mr. Ottley: Ic , el-. That ie Juet berrewed *eney,
The taerat- ry ef the Treasuryt Tfcet ie a bill

^yable, ie

it net?
Mr, Ottley: f i l l , we aewtt— I im perfectly willing te
ad&it It le a liability the mam aa nay ether depceitB, but
I tean in the eenee cf a bill payable, the aerey uue tc cur
Miyake by —
Tha Soorat ry of th. trae.m ry: I as .paaliinf i bout th*
*j-oi%l u «;o ill« » 4 i .
H‘ . Ottlay:

Tat, I *oe. | r , ** 41a net lnolud. t h u In

; thia. *01», Elite, tha

Thoy » r . bill* paya&l.,

. f du* fro* re *.n r. * « n t a ,



Jchn K. Ottley

tak ;n thrcup*

the y



*459, 00.

D a free eaet rr,

*nd weeterr* banks, the m i cf f& 8, 000, net r « i « m


| J e fro® ether b^r i , ir.cludlr ~ al o t lh n s m e collection?*,
the «un ©f $ 3 5 8 ,CC :.


you have the fact that while we wars f berrowinf

unity, sfd when I any that, I ^ecn th* t applies tc


In thie territory, we le u acre wmmnj tc cur reserve a«*e»te,
^ r a d ic a lly twloa ©war on an evaraew, than they loan to ue*
Th# Seor^t ry of the Tre; miry: Well, th t ie rather typleal rt that oenAitien Ureu*hcut the country, ie it not?
Ur, Ottley: Tee, I expoot tbat i® or rraot, but I juat
tl u- t the00 f i ^ r e e nicht illuatr*te thrt joint.
The $a#rat rv c

the Trs « ry: T^e.

Mr. Ottlay: Sow, you asked the

ueftion, yoi m

l daitire

to 1mem the relarwe* that arw carried, md if you do, I
hav# t ias he e«
Tha Sa®rat*ry of tha Treaat;r?! Tou *ray atata th«a«
Mr. 0* tley: Tha reaarvee carried, end thle la ew pilad
*'rcr. the aaeaelldatl an —
Tha Secret^ ry of the Traaatry: Thie i* * oaaipoaitw at?* toRent of the Cl staring Hou#et
Mr. O^tltyi
lew Terk,

Thie la » cor. aaita eta tenant, yea*

feS ^ar aant, S*eton 3 par cant, Phi lad el h i* , 10


Jr .a K. Ottley


p;r cent, Cfelosfa, 7 per cent; Cincinnati, 3 per cent; Hew

a, 1 per Baltimore, 6 per oer.t; Lnjlsrllle ,T ef

1 per sent; St. Louis, 4 per oer.t; Plttebur**, X jar oentj
Albany, leee than 1 per oent} Cleveland, .36 rf X per oent}
Detroit .X
.3 ef X

er <e t; InilenapeXie, .3 p< sent; Krnaae City,

ar cent anu '"-el-lrrten, 1 .8 per oent.


f the Currency! By all the m*vata banket

ttr. OttXeyi t^e.
The Secret ry ef th* Tre*e ry: D14 yea nrlye Rlotacedt
Mr. Ottley; to.
The Seartt ry cf the Treneuryj

Tru do net o».rry "jnythlr.r

In HloJUitcr.uT
Mr. OttXey:

In the an M r * ef a reeerve, ee te net. The

juelr.eeo with Rlohu.ona —
The Conj.treXXer cf the Currer.iy: Hiohiiend le net a reeerve
cl tyt
Ur. OttXey: *o .
The Seorst ry ef the Treae' ry: I be* y e w p^rden, that le
crrreet. It le ret a r.ieerre city. If*.re you anythin" elae te

I i
Ur. Ottley; |< , air, I think that le a ll.
Th» ccaj trrlijr cf the O a r m e y t I think it ~ould be In


r. cttley

tcr •e tin*? IX M • Ottley couXd till us whist amount of mnry
Atlanta new lenu» to lerth and South Carolina end h n M i t i i
ana theee ether » t a U » which you t u m s i ehoula be inclu *od
lr* thie Bee rwa Region*
Mr. Ottley: Practically none, Mr. W i l l i e * .
OpKptrollsr ri the Ctirren3y* And it would be a new

Jr -?r
. .« #

»„his &eotlcsi should coise to AtXAnta to borrow,

th**.t ^c\ila oo a new branch of thi business?
Mr, Ottleyt Tee, Xr. th t connect ion T will etrte th t
un&®r present oon&itime Atlanta h*e not undertaken to
oi e,,- te for b®; kini? tjuelneee ©uteit&e of Q*;or wl ^ •
of j #
Comptroller of the Currency! Tou epeak of the airount ©f
acnoy *hieh the Atlanta b»nke borrow fron the othsr banfce*
j 01 coure®, th t

er*»e on bllle payable end, ro-^itcounte,

Th. I i * ti.e direct loan, What proportion do ycu euppoee the
direct l e i M bear to the indirect lc«ne, th t ie f bills re| oeiwaole without *ndore#B£ute, or lo*ne isode with bonXe in
he central reeerte oitiee? For example, enrri-td with the
rr„i*iLs r , .

ii-.uiwid^Kl direotore

f th© b n; e# in other

WOI ,4 #indirect le^ne cf th? t nature? In eo
rr.e e t M i the indi­
rect 1© no largely eaoeoc the direet lo-ne, ae yru teow,*i* x
jwae wondering i f that w«e the he ■ or net*

J^fcn K. Ottley


Mr. Ottley: I will epeak fcr tfc* b«nkwith which I * * wm
n*otad# *nd u

tho be*t of ny knewied**,

epeakin* fcr

thee I «p ,E)c f . r n il, ~
r.d th* t it the a cunt of ®orey corir
|rrw#4 oy th# banks 1» A U a i t i nxid ehcwr. by th#ir dlreot
lean* r o f r < m t « to th* ontir* borrowing cf tha Atlanta bfenk*.
Th» ban. with whieh I m oewn*cted#

a* I »*y, •jaafctnr

ifr th* c tb *r % it is net the prrctio* tc carry is y indijn
root loan*. In fact, tha pet:li*hed et t*m*at* cf the b*ak*

^ r


Tfea Cca;trfllar ef th* Onrr.nsys R«fX*et the tru* Maul t i« M f
Mr. Ottl yi R>ifl**t the true ©cnciltlcne, ye*, eir*
Th* ®@cr@t ry cf th« fr*a*t ry: ©t yeu practise ©t * 1 1 ,th*
|sailing cf

’ecuritioo in ordar tc teotire adw*MSSy with m

um*rr tana in

that you ea» p*roh*«* thorn be> at a ^iren

Mr. Ottl«y: F

4c nc t*

Tfc* So«r©t ry cf th* Trsassrft tru de nett
• Ottley* I* , air,
Tha C*cre t ry ct th* Treasurys Thor* *tre w&rlsse <3***tlefie
fcer* that yeu have net * wared, but I prs*mm they will be

y ssk* of the cth*r 'i t n * i M i «
Federal Reserve .Bank of St. Louis


of sapt tall sat loaf


Join E. Ottley
Retort F. Ma~ ox


Ths c or«t nr cf th* Tr*«.ury: Te«, and dapeRlt. r'nd ether
M • Ottley: V . Mf * .cx f * • the fljfuroe on thr t.
Thit 8#oret*ry ©r the Treasury*

Let ue here Mr. Maddox

s « i i 9 than.

The So ore t ry of the ~reasurys Mr. Maddox, will y©u etat©
your mure, reeldenoe *nd occuprtlon?
Mr, ] ddox:

Robert r. Meddex; Vice-Preeldent of the

* erl e x V e t t m * Bank, a p j e r i n g a e on© of the witmeeaee for
tha Joint Co.*a It tee of the Atlanta Clearing Motive jetoel&tle*
*i*d the Atlanta Qheiber of Conneraa*
Mr, Chairman and **ntleFsen, I have been requested to b^if
to ycur

ttentie® the oe«*>ln<d reeoureea of the banke of thie
s outlined*

I will be tin by #4win g you a eeneolldatcd

t tenent of the Atlanta Clearing H*u*e j»*eeiat4on, ae that
would probably be of lntereet te ftm*

Th* entire oapital etrek of the Atlanta G U artn* Hnrne Aeocl lion, which ie lM y t i i 4 ef elx national banke and m e
©te te b n k i®,


Th* Secretary of AirlouUurax

Will you eeparete that &•>

R . F . Meddox


tween et&te and nationaIt
Mr. Mftadcx: Tee* I have consolidated It and did net f i n
it in detail*
The Suoretfjry of the Treeeuryt

There le only one et te

Mr. M*»udex: There le only one et*te banv# which hee a
©apit I f t 1500,000 aa& a eur; lue ©f £&CO,DCO.
Tha Secret ry ef /*viculttire5
Mr. M d**ox:

And a total ef —

Of f 1,000**00%

Tha Secret ry of the T.oM uryj That 1* th* t f U l fcr all
the banket
Mr. Maadcx: Th* total capital etrak ©f the Atlanta banket
The Secret ry of the Treaeuryi Including thie bankt
Mr. Hadwox; Including thie bank.
The Contro ller

f the Currency: Including bmke not in

the Clearing Houeet
Mr. Madden: He*
The Oo«ptr©ller ef th* Currency! It ieee not Include thaa?
Hr. Maddox: He. The total capital eteck of the bank* in
t e Atlanta Cletrinc Rewire A*^eolatlaa, ceeipeaed of eix nahtien 1 nuu one etr te la&k, le 1 5 / 00,000. The w r In* tmd
undivided prefit* of thoee bank* ie t£,65!<,000*


H • F* Ifa **ox


Hew m
nxiy bnnks eutsid#

Th# Ssore t?.ry of the ?r#rav;ry:
#f the Cl#arinf Hru##t
• Maudox:

There * ra t**o cr three rery sftall cns, ^nd

net lsfertset*
T1' • Comptroller rf th# Currency:

Trust eea varies?

Mr, fli&tost Tee, #lr, tout they i net carry lar§i i«pit
oelt#, Th:

combined olreulatlen of th* national banks In

th* Clearing Hou*a 1« 23,739,000, are ne bills
jie In the dsarinir House brnks. This etatsamnt 1# mad# up

of Febmr ry 6th, 1914%
T # tot il d#rosite cf the Atlanta Olsarln* Eeu*e bank#

is !3o ,3 3? f159.

Their r##smro#s urm as fellow#: Th«ir les*#

sa& discount# a*py#gr te *50,000; bond# *»
jiv other #ecurities
*6,CGw,0COi real H U M ,

# 1,300,000; due frcw. b«nka

f c .8 1 7 , 000; cmeh in Tr-ults 13,343,000, aakinr our total

rtsturses cf v6©,4S3, 000»
The Secret- ry of the Trsesvrys ffav* you a l U t n w t ef the
inii n n i — y
Hr. U 4 ex: I r.-iU th t first.
The Secret ry of the Treasury:

1 did n^- set tfe; it«*s

ef 4 m te tanks. What was thatf
*• . Maddox: Th* t is wider ths herd ef deposits.


K. F. Maude*


Tha Secret ry ef the ?r*a*ury: Yeu included it all in


I eonaclidatad it te rake it ae brief a a pee-

I will new call your at ter; ii on te the et^tenent ef tha
rteovrcae ef the baak* in thin propeaad region. In this
ration there are 5HC national b niriThe Qm% troll®r cf the Currency* Tou observe* state linaa
Hr. Maudext

Tee, S30 m tlrnal ban a, with f$4,280,000

eurplua ef § 3 0 ,0 0 % 0 t 0 anddepeeita ef $376*000* CO.

In the prcpoe<*d r e ^ o n there *re ellflbie etate banka
t ^ r t l tin I 1391, with a total capital eteck ef |9S#357,000
ana total surplue ef ?47,000,C00 end tetal depeal^ta ef
$347,000,000; makinr the combined capit* 1 ef tNiee banka,
lill Hank* with a total capital ef #156,000,000, tetal eur­
plua cf 178,000,000 and total depeeite ef f«£3,000,000.
The Secret-ry ef th® Treasury* Have yeu any flturee ae te
the ineligible etate bank*?
Hr, Igauuox* I *111 read thea new. In th* region ; re* eacd
thasre are 1340 ineligible tank* with capital eteck of

*a7,u ,.c,0C0,#ur. l- ef 14,000,000 .-w da; e«lta tf I l 2 2 , ; x , 0 0 a


R. F. Vaddes


Tha C«*i troiler cf tha Currency: On what b*eia do you
prcnource %hm i n e l l ^ b U T
Mr. Kaadcx:

Ontter the Reserve i i t .

Tha Secret? ry cf the Treasury: Tbe queeticn cf e e p it «V
1 set! on?
Mr. Maddcx: The question cf o?;.l t&iie&tion. I will i l t H ,
ycu reril««ter, cf r u r « ^ , knew %t % in thia territory thsra
f*rc & l-r*e nusbc-r *f country oanXa— ir Georgia
fir ce, tha require.* c&*.l te bo p*id la la $S5#


but they may operate with 60 par cent paid in, or tlS.OOO,
i.u v

y f re opor tii g <n thr t Diaia very Xsr^ely.

The Secretary of the Treeeuryt The raa&inder being eubjeot
te oellT
Mr. Meddcx: Tee. In feet, In Georgia there ere 990 brake
with late then the required $85,000 capital etoe* required
urier the lot.
The Secretary of Agricul teret fhet ie the a tat a lew with
respect to thie retter?
The Secretary ef the Treeeuryt Mrde e V te banka under the
law rf thlit etnte aubaoribed to the federal Ree*rre ayeteat
Ifr*. fedaox: Tee. I hewe e brief on the reel one, and with
ycur pemleel<m~-»
 The Secret

ry of the TreaeurT: We night touch on th?t e


K. F.

11 til# latsr.


Yru say proo#«4 with yemr armaaert in It*


1*“. M *4c*t X think It in T«ry t l « l y ,
iibly ceaa In & • wo 11 new

It Of.n prcb-

R* *ny ether plaoe. I h£T«

tfldana# frcm tbs bast «uitoritlt» I seuld obtain frc«
e ah «t tc in Ihi re H e n .
IU 1 IB I:
A. T w'



ry, So

rlnvcr a-r.t rf Bunkc; »%y»9

*1 knef ef nc Icpti b rriar vfcioh weuld pn# «nt th© ®tate
Sank© cf £1&&&sa frtm inis ring tfe® fM sn tl Ummnm fyster. 1

w# j , 6

-sr# Atlanta* ft&tc Bank Exialmrt

•Hy #|4nlen t lit l Urn 1 * * 0 . ri^ht ef %hm n « t # »Uftkl ©f
Georgia, te m % r Ff4ifKi a«» rro Eyctcm i« tfa^t I <
net think etsr ft*tc Lewc wouli b*r cuoh notion en the
part cf ax.jr St*t« Bui

nhioh cay a •lru tc jrin klw *y»-

l« * . W 4 1 « « • h»T» i itatat* «hlah rrohiijlt« mm mi>prrmtitn fre^ « i u t *tc ok ir, nmoUtttr ©orper lien, I 4#
net think it a ^|li«« te the l iiH l ir bu«ln#e«# fit l«e«t
it fen* never fcto* ne construe* in thin State, ~m In ry
©pinion will net be.

f belles* ear Itatt Wmk9 h^wm %tm

ri f t te cubsiorlfcit for steek in tt* 3y»t«*«

Tba law «r»

R . F . lU u rx


acted by Con *r«ee i revldee fcr their participation in it,
ora there will be no objection free thie Der*rt»ent if the
Brnke chocss tc exercise th t j r iv ilo *e ,w
Mi s s i s s i p p i *
Mr* The® e H. Di-ikeor t Secret ry, Miteleel pi
Banker®1 A»»'cl-tion, J ' c vecnt
w i i r t t u i l f t f ef m r preeant le^e ie that a general
i rohibltion exlete — »
the Secret- ry ef the TraaMryf A new law hae jnat bean
paeeed In MHaei « ippl which »iw#« aapXe authority*


p u n th t*
Mr. Mai~cx: forth C^rclin&t The Corpor^t!©® Oemmtwwlm,
by k J* Maxwell, R&leiipi, eayes • ! am directed to adwlee
th t the Corporation Con i eel on doee not kno** of ??ny legal
terrier that will prevent the State Sanke of Icrtfc Carolina
fro* centering the Federal Roeerve Syeter .*

' 1 /:

B. J.Rhiyre,©, ttote Bank Ixaif inert
*1 an of tht opinicn there le ne legal Sorrier pre~
j venting State Bank* fror, entering the Federal R@«erwa
| tO B M K l
Federal Reserve Bank of St. Louis

L. Hutten, Isthville, Superintendent of Bankas


B . F • Msiudex


•Thu Attcrn&y Qen«ral cf Tenneeaoe, Hen. Frank M. Thettpeen,
fcz:*, at th® request rf this Dep*rtrent, rendered an opinion
on the subject ef State B«*nks subscribing to the capital
stcok of Regional Bra I s , and is rf the opinion th»t there
ie no ioppl barrier to such action.•

T. Stoott, Ots^ irellert

•Tiorida has no law interfering with State Banks join­
ing the Federal H«eer?e Syetei *■
I ■ er fore take i t , Mr. Secretary end ppntlemem, Uset
«e err* i rr m&d on the eesuaptle» thrt there is nr lejpdl b rrler in this region &§einst the ctrte Banko jrlninr the i f a tee*
Krw# in regard tr the ea; ltal etrek rf e Reserve Bank
located in this region, ehould all the national banka Jein
the system, t - trial erjrit *1 subscribed would be ft,885,000.
Shculu all of the e 11*1 bio State Banks Jrin, the oepital would
5 e f 1 4,1 0 0,00 0.

fhe deposits by the national banks alone in

a Beserre Bank in this region, ^©uld be $13,791,000, and if
all the eligible state banks should Join, th® depoeito would
^e S3l,146#C00* In etfcsr werde, we hawe a mrj&wmm possibility
rf s e&#it*l stock cf §14,000,000 and a combined deposit rf
____ Reserve Bank of St. Louis


R. F. lia .cx


fw* Sc err t ry cf the Tre?eury: It la better tf raareoe
your ar^t* er.t u; on tbs b^ei®
th t le t

f th® * i n i i m here, beemu»e

m e cart ilr.ty in the el tuition.

Mr. Maaaox: T e.
Th® IttrftAry ef th® Tre aury:

That ie, th® national bm\k

w&mbrnhlt <ilon , for the pmpe®#® cf diiiouselcn*
M«*. Maid ox: Y r.
Frc«& th® ftbmre flffuree we relieve th t th® bank® In the
®tat®« r?antion@a wotila u n ^ e t i o t u bly prorlae the OftpiUl
required under tha Federrl Beearwe let for ® Reaer^e Bank
to h® loo ted In tfei® territrry. The national. b' n- hew®
with jm ctlo al unanimity ®l**iifi®d their uselre te snter
th® naw tyitts, nnd while th® State Bunk® ee«®i to be *wrtehfully waiting*, w® b®llav® ® lurn® number will e^on r ails®
the benefit® te be derived «»d take fdffmta*a of the epportvnlty tc beccsce »c&bera*

fhm real ebjeot of loo t! r . the Regional leeer ® Banks
ie te; eatobliah a more a « O M « iU ® »ark®t where banka ®ay be
able to rtH id lM lt their bill® a&4 te M e t quickly th® d®-%
usnd Cor as& ®urr®n«f durinr the ®®a®on&ble i®riod of
ih® year, without the doubt < it® availability which h a
ixlet®d in th® jp t.

It m m m

te be aNtermll? & i r « u that it will b® d®«irabl®

? '

ft. F. M aude x


core than a ni<*}.tfe travel frca the outlying pelnte where


tc h a w th® new bsnkinr can tars at points thr t will be not

busineaa la belnr dona by tmniar b?*nka. In the East, where
oorrnwiior ticn ia easy, pepul tion aense, and the dletricte
necesse rily smaller, the o-ee it comparatively simple, *nd wa
reeomlz& the difflcu&ie« your comittee will prrb&bly have
in dividing the ccuntry into ei»^t or sore districte,
cf which w ill be coneer d a i l y etren?, bankInr interc-uree
eeey, dtaaad for lonn* divereified, end the eectlen ee*re•* to

to the e a t i s f s i o n of ita people.

Wa believe thst a refion ccneietint of at least a portion
of the States we mention would cess aa near fillin g the object
of the b ill, considering all ita phaeee, ae any other dletrict
which nay be aesi«nr ted In tha United 9tatae.

el leva that the Or irani nation Ccnsrittee will be siero

.r lined \r ic r

\ the pceeiM lity af a readjustment and .

Improvement ef Nunkln* fscllliiea under the new system
rethar than be miaed by the foroed trend ef banking under
• ©Id eyste .
In normal year% e t a under the old currency bill,there
* »e a sufficient amount of currency to conduct the commerce
cf our country, and ever] at present thers ia no particular
Federal Reserve Bank of __. Louis
_____ St.





? •

4 049

M a l t , e x

uer.rnd fcr i a»;i tier; 1 m rrm o v. It ie tnerefcre a p r«nt
th? t tmaer ths* operation rf the new currency b ill, there
will r#rliy be but little need fcr additional currency,!e
unuer the p c e r cf the F U e r&l Etitrtt Berra, the surplus
funds ef the eererrl r *ieni*l b nki m*y be diverted rnd
ueed where, cost needed.
While the r-twjc® we have ©ut lined h^s m^nj diver* if led
lln # of buelneee, we reee«g»l»e th* t fer a t m months in the
y : r * * *&?

regarded ae * borrowing diet riot, ffcie we dr

M % believe le a reflection u on Ite eet i U i t w u t , b t
r tfcer


r«u ent in ite frvrr.

It , unaer the eld system, the l i w u l l t fund® rf cer~
1 l n **ericng were f e r o e «
to m efe

the o '.h e r r s v e n s

ie n e t u n r e

e o n r b le

ay 1- 3k o f d e * * n d

t e s u p p o ts

F e d e ral Reserve Beaks

tr be

- rccii ti


fin d





th o *e r e f i c n a

f ir ,* e a p l e f a e n t ,

th* t the a e p e e i t e

le?*. teu i n




these r e g io n s w i l l


In e » h e r r e prions*

It w«ui4 be ?aaeet lapc&eible tc ee divide



oetii try inte el e t er twelve regions where the supply ef
■oney would *t all U n i equal the ddM »| fer lean*. fM e
f B , - ® ■*

Nl ^

Con frees when It fave the He serve t a l i

tne right te open market operatiene,sBd *ave te the Federal

R. r. Xftiuox


Reeerre Be=ru the rl<*ht te «»« th® eur lu* ef ets« aletrie* tc ®c t tb?* u m

j XI c 6#« '

In «a#tti#r district.

Th# tctal lc-n© and diaocunta of th# latienfl Banks,
* »3bc<»s by t i.* report tc *h# Conptroller on Oetcber £1,191S,
* a $6,36C,B7?,00€. Of thia a*our,t only £1S,&16,34? wore
r t A U w m t fer

Bank*; m d only 183,943,895 waa

bills ; :y ble of Br tton*l Banks —
Th« Secretary cf th# Tra-auryj The @ #tat#isants, unTortur.mi#lyt do net raf la at tlw I m

#ondi tlana at all, b#o#ua#

t ey do not tall th# indlr#<it borro*in*"» of tfea b*nka, «rhi?h
re v;ry 1 r ~: In acrno ##etionn.
Mr. ifcduaar: ^a 414 not eontlcn th»t, * r # Pa or t* ry, *> #
o*»»t, rs ¥r* Ottlay h- atmtad, th t Mttfli i« tmtetia in
thle ^ rtisulnr r flrn*
Tha s#er#t ry #f tr# Tr*##urys B*;t you pro #p#&ltin* of
tha whol# country, *4fid 1 #ay that not too mi eh isj ortmo# la
to b# &tt*chea to theau
Mr, Maddox; I a* frank to m y I did not know it#
Tii# Cor trrller rf th# Currency: ^feat did you nty w#ri
tli# total bill# payable?
Mr. Maadex: T

total M il# pajrabl# w#r# t&*,942,696 r#-

pmrt*s* to th# ©o®| troll r Octcoor 31#t,

flS,00€,C CC re­

1 . F . Madd**


discount* m a k i b t a l bill* payabl* cf all latlonal Bank* ef
le ** than 1 ,6 per w n t r f the total loan* ef VatitliJtl Bank**

time the TJhlt*d ctale* h*d on d*r**it In

ft. tIona1 Bank®, lMlidiii«f j:o«t*l •aria** deposit® aad de­
c e i t * ef dleburetn* officer?, tU l,< *t,£ 15,Iit ether werde,
th* United pt«t«i had cn d*re*it in th® Waticnal B&rk®

* I l ,000,0 00 mere than the entire aiacunt th* national Bimke
jhaik I cuna it naoeeemry te berrew%
The Comptroller ef th* Currency: If th* United 8 tat** h* d
art had Uust icrcy on d e c e i t -1th th*r, their l*an* would
hi ▼ Da#n twl*5e r.e lrr«e»
Hr. I*

Tie *

If the Federal Hescrwe Bank* had been in cp*ratlon at
thie tima, p r e t « in * they would have had a Oapital ef
1100,000,000 &ad depceite ef §500,000,000 made up exclueive-.
ly fro* th* m i e M l Bar ®, they would h a w had, after
^©uucttnf the «xla reeerre required ae&lnet d*peelt», a loan*
*fcl* fund of

, 000,000 or core than four time* th* amount

r e t i r e d to eu ply tha nec*eeary leans to the lational mm!**,
lefewinf *325,000,000 fe. ogem market *p*r tlcne*
the Socratfcry of the Tre *ury*

Ir t k t *tf t*m#nt hew much








a a a e x

fevcrn»ant d e p o e i t e have ycu s e e u a ^ ,
Mr. laudcxx

I b e * pardon,

The S e c r e t a r y ef

r c m


a t all.

th? Trereury: T c u are *l»i ly epeaking ef

the reeervee w h i c h the R^eerve B einks w o uld held?
Mi*. Kft.dox: T a.
Ths S e c r e t a r y of
the® for


Mr. Maddest

the Treasury:

Of c^uree, ycu ar© tremtlni*

p u n oee of thie statement es a

c« b c r


elr* My cbje*t ie te a h a * ~

The Secret ry cf the Tre eury:

I see y o u r point,

but I

juet w a n t e d te ha aure that f u n d e r s t o o d the practise*
Hr. M a 4 ~cs:


total a a c u n t of bills p-ayahl* amu r -

aiecountfc of the R a t i o n a l Bunk* in the Statae sur*eeted aa a
ai s t r i c t fcr the Sou t h e a s t cm Octcber 2 1 , 1 9 1 3

'- m r .x lm m

T r

the ye*r)

J u d f i n * by the past,

§£ 3 ,8 0 1 ,0 0 0 *

it le reneonrble tc j n s u a e

'■bout half cf tha y e a r tha b a n k s of thie
it n e e e t e a r y
to UP S

th*t fer

section wil l net fin*,

to call h e s v l l y u: cn the regteftal bar < for re-

but fcr ths o t h^r half, a e y f ind it con eniant

the d i s count privilege freely,

m d

e v a ilable d e p e e l t e of the S e g l C M l Bank*
p osits oould

than be tranefe

re c e n t l y eo wisely done,

(which is

even beyond the
G overnment ae-

red te thie region,

ae w a a

or the F e d e r a l Reserve Bc*rd ©i«fct

ii* f • tb

. rx


find it adwleable te hay# the «ur lue funde ef ancther
re rion f oat the dsn&nde her#; and la#tly, the now currency \
ocul* be iseued, which a«tr»stically retire when the d e a n *


fer it oaaeed*


We admit that thin eectien ha# but little idle money.

Slnse the r r ,

the reconstruct icn of the South ha® required

j.a l l our energy end all cur aa^ltnl. Tha rapid derelcjaent

cf cur fa *#, our f? stories, cur, eur Cities



ht* called fer avan itera o»{ lt*l than cur

ban*# ooul- miftly; sand uislike ecu* cf «ir rlo; er or ®era
i lnl.hsu •eeticnr., cur baaka hare net been fcroc-d te re seetien

ft r t elr bla lo ne.

Figure e and f M t « haw© been ehown, and, will be pretam*
tad lat ir, illustrating tht# wonderful iprwrth ©f the South,
lie ilvsrelf led Industrie#, «nd what the •Atlanta Spirit* ha#

aon& fer tho (kite City ef the So th; alee the accessibility ©
A* 3 n v: frca all paint# in th# rerien eu*'*e§ted. The apograph

tcel location rnd railroad fsolliti## cf thle City haw# >#en
the aaac# of our merchants dewelcpinf a r#mrkabl# trade
with eurreunainr atafe a, which 1# but a fereranmr cf tha
eenvaniencs saw benefit a Heesrr# Bank in M l eats would $e
V %h

b-cki ©I thle ra^on*


R. F. Maddox


We dc net believe that it will be the wisdom ©f your
hcnorable committee to consider where the banke of this
r gioii have borrowed in the poet or eo much inportasio® ae
fro® what ctnwenisnt ranter thea® bank® may bo nuppliad in
th© future.
Under the old resume, the Banka cf the nation were dependent uj cn & eisifle and uncertain money center, %nd the
ration *«a a slave to th® ayetem.

When President Wjieon

tti lined the new Curreney Bill the ehaeklee which bM& ocunu
the o&rvkir. * bueineee in narrow limitation® fell ^aisnder,
nd the | eople received it a® the Emancipation Proclamation
of a Sew Freedcm frcn currency panice*
The Southeastern States we hove eureeeted a* a re??ion
ixnaar the new eyet«® ore throbbing with new life. It® pec le,
while true to the tradition® cf it® peat, p.r® justly proud
of the prosperity of ita preeeat, They are Xeyal to the Vatisa
snd aauntl«e® in t eir demecr? ey. Mo ether section of the
country Hr® riaen obove *uch advereitiee tc eueh ©©mr*er©ial
ieport^noe • In the vei** of ita men and women there flew®
the pure at Anglo-faxon bleed to be found in any part of thie

For what we hawe a cere 11shed in th® peet, we %®k

ycur help in the future.

8 . F. Ka-uc*



Octroi f. lias store K&tienal bankia* capital thm my
Stmts In the re fieri »urf etea; mnd Jttl nta ban acre Sfttloae1 bankin 7 capital than any City la tha States included. If
jtlanta »aa thit raiAen 1» wiver; f Federal Be*erre Bonk,w®
c.*a face the future with renewed strength m d a$pr#aei* with
confidence the continued development of our eeotien to the
credit rf tic Hew South

ni tr the *lcry ef the Hr. irn.

The Secret ry ef the Treasury: The banka re are befiiuiiag
tc ftdait that now# art they, lr. Mftddcx?



The Secretary ef Agricul ture* Huit reeecn have yea fer
thinkirf thr t Miecieelppl deeiree te be included in thie

Mr, M&iiciexx we hare r»e particular re*era tc beliewe that
Mleeleei^pi deeiree te m t e r thie r»fitt,Kr« Btir i tary#
ether than the f*ct th*t we believe Atlanta could eerve
Misr.i ei, ;.i with a R a ^e n a l Sank in thie city.
The Secret ry of Afjrioulture: few, euppoee Mieeiesipri
thinke otherwise?
Mr, Katies*

Timt will be decided* it neeaa to ref by y<ntr

Honorable Cem ittee,f * tc whish section c-uld ^ervs it beet.
Secret4 ry of Agricultures Of ©curse, I aek whether we
are tr( b* Glided by the views of l i M i i a l | | i or those cf


5 . F. Maude i

40? 8


io x : I taka It fcr w an ted, Mr. Sttrtiftrf, tfc*t It

wcula be Ic^e eiale te diwid* thif» ceur.try •ig b t er

tweXw* ririoni whiah weuXd b* satisfactory te •r e r y ^ i y .
The 8 c ©t ry ef the Tr«u eury: I unaerstanA th*t,but I a s
just ^aklr ^ yru e s that joint, ether thin’** baint? etsue.1, which
we weuid have te feXlcw, Kiaei**lpi 1 *• riew* er Atlanta1*
The Secretrry ef the Treasury? About wh t should be itme
a ti &is 1 si ,1*
Hr. WtvMcxt

e will leer* that te you «t»tle’'*n te decide.

Tbe Secret? ry ef th* Tr*a* ry: T?*at ac yen thinfc ^e sheuXd

ith it nrw? 8i

e*e mpelpnipi 1 erSd *fce ~ n t e d A tlm ta ,

which t!«w do yeu think should prevail?
Mr. Jti« a :

W j would anrae with her#

T e Secret ry ef Anri culture:

8upp*s* *h# ■ ntod lew

M . M


ri - t die « r e with her.

The Secret ry cf Agrlcikltur*} T«*. few, what hare yeu den*
with lew Orleane in thi* arranfNNftt?
Mr* Hftidcxt You r«e*in a* te the aiwisirn ef the country
mtc re d e n * ?

H. F. Snadex



The Socret ry ef > - riculture:

Tee, t h a t de yeu «v»«ni8t we

with law Orlaara?




W ell, M r . 8 « t r i t & r y # we hare net efreed ujren

partioular eub-diwitien ef the United Stetee, tat in a

<*erarsl way —
Th# S e c r e t a r y of A g r ic u l t u r e : But i t ie wery i»p e r t n t th-t


»e«eth lr4?.
M »uucx; T e e ,

a bank i n

couth m

A t la n t a


in a

m n a r f 1 way we have

a n d a b a n k in


Texee w e u ia eerve


th le

territo ry .


ry o f A ~ rC ulture *

Y cu pot le w O r le a n e



M r. Slaui e x : T e ,

e ir.

The Seeretary of the T r e e e u r y : 0e you think le w O tIccm '
natural ccuree e f trade ie weetwsrd?
Mr, Ifeaduoxs Hr,
Th* S ^ c r t r ry ef A g r i c u l t u r e s
y v io le n c e


t h in k i t would dc

tc lew O r le a n e te attach i t

te B a l i a s or

H o u eto n?

Vr. MMdex* Kc, I ac r t

know thet it wculd.

T - Secretary ef A«fi uiture:
h ,.

Th» law req u ire ue te h»re

regard te the oourec of trade •

lew, —


H« fm Iffcl OX

Mr. MaadcJi? I ehctilu. think Hew Orleans would bo core in­
clined tc St, Lculo.
Th* Saoret.ry of * *rieul- urel


Tru ldsv* ub Vc t.rndle tha

i rcblen.. Tew h*v» aalaeted rm nrea cf trhlah Atlanta 1*
ti»e oon'.ra. I n , utet f scat Torjr.easae. H; re y^u «r.y evldsoa
that Tarncaaae aaaira# te t « sttaohed tc itU n ta f
I * . Utm&rx: Erst Tarjaaaaes h a rstfa r indented thalr
w i l l !npj*eee tc ooBM tc thia territory.
The Sooret* ry cf Agriculture j

What i» t>e @xtent cf h r

lfidioaU out
fcr. Saddest

flit Chamber of Qmmmrm of XhoxTllle,Ytom.9

hae ericreed Atlanta.
The Secret'ry of A T l culture: Ary cthor?
Hr. f e d d r XS j de net think any othor ©cn*eroial bray.
Mr. Orr; cr e i m l U r bank* up in the oowtry hare*
The S e o r e t & r y
h erself,




Apr j m s lt u r o : M e a p h le , o f t e u r w e , p r e f e r s

aeeend c h r io e lo Hew O r l o m , l o w , h av e

ycu a a y t k i s f f m

H rrth C aro lin e



be a t t a o h a d


t h a t the ban*:*


d e s ir e

Mr. m
nuaest I unckeretani the banks In Hcrth Carclinr are
-iviuca *« t n-here they really want t- *»©
850011 w w n r n t a i B t frc» th-t section.

haTe nrt hid

R. Y. feddas


Tho cseret ry rf A«Tl<mlturet Sc f&r a® we hare h^d any
indlaatione, they draire te be attacked tc a b%r>* te th©
nc rth cf Hcrt)


Mr. Maddoxz Ii juet sc happens, Mr. Saoretsry, th t the
aei ersl iapreaeion of thie eeetien that we should have a
Re^icnal Reserve Bank has er.cours ~ s; acme elty in praotieally
*11 of our neighboring etrtee to apply for it, *nd for that
ret ecu it has bean difficult

cr Atlanta tc «»et m |


rente free thw etrtee hawing a sjity within the boundaries
' plyin» for it t h m i i w ,
?ia Seeretr ry *f Arrieulturs: a t I am thinking of the
r▼eiaent ef trade. Xerth Carolina at Yfteh&nftan represented
to us thrt und*sr no olreuitetsaeee did ehe wieh to be attached
tc m y bank tc the eeuth. Th~t her whole sours# ef tr de was
tc the northeast. You have no fro® Hr rth C^rolinat
Mr. M*uuox: 8c,
Hie Secret fry of Agricmltnre* Rave you any from South
Mr. Maddest He.
Th® fearstary ef Agrirtiltitres
tor* that their court

cf tr

They represented at Washing*

e eae towards t e north.

Mr, Maddoxj I t; ink it will be coneeded th t the eouree


B* F* Maadex

cf %be who « aouth he* been trendinr ncrtr .
Tli# t t e r iu r y cf

Th* t l« » h


«nd Flcriaa. What h*Te yen t ^ t Flcridf an- Alabama
Udtirs tc be att eh^d te Atl*mtaT
Mr* Ifeuur x:

eever«*l M u i

In Jackacwrtlla bay®

dr.rnau /itl-nts s»d M «« r « l bw V« in eth«r p»rte rf florid*
hnv* endor<i«<t

Atlant». Js.ok«cnylll«, « • T w P rh*re Vrcr*

I- • boat , r * ; l i ' nt up tr yo*t»r«i>'T»
Tha S«cr«t rv et i*rloulturfc: T«s.. T<

h»t 4e«»

Atlanta handla ive e itm s fruit trade cf Flerida?
Mr, Maadex: We handle a §r#t t deal ef it, I think* tfereu**
thle aity; r;ct ee imeh in a &%rkii f wry as prtb bly In » pur«

ohaeins and distric tin g cf tba oitrae fruit frcs Atlanta,
The Seeratry ef A*rimalt\xrei Aaauain* fer the eske of
further diameeion that Atlanta wruld be a^tiefaot^y and
that this dietriet would be aatiafaatery tc these atates,ie
it ycur jvdfrm t that thi* diatrict la ncninally independent

Mr* M&ddcx: It i f net.
The Seeretary ©f A®rlnttltnr« t

Mr. Ms*dcx:

I f ! • dependent?

Tea, air.

Thu Seeretary ©f th« freaauryt fareallyt




B . F . Waddnx

¥r. V&idox:

I Should *ay not.


Th* district is not able to

finance itself through th# year.
Ths Secretary of Agriculture:

You spoke cf the rediscount

««greg*iin& # ^ ,0 0 0 * 0 0 0 .
'.fr# Vaddox:


that is national bank a,

«. by ths Com

trcllsr* s reports, and tha tie about the m?ximua of the year.
The Secretary of Agriculture:

.hat is the national banking

Mr. Vaddox:


And I want tc mgfo— i m

the fact, if

you will pardon ms, thst sc far as I know, that actually
represents —
The Secretary cf Agriculture:
a fsw questions now,

I f you will justlst m ask

as ycu hare made your statement.


»ay not know of any other indirect rediscounts in this city.
That has been stated.

Be you know as tc the facts in the rest

cf this district?



The Secretary of Agriculture:

It was tintiM ted tc us else-

where that there were considerable indirect rediscounts, and
fur Thermo re than individuals ’*nd groups of indiTlduals borrow*
ed heavily from other sections of ths country directly and
not through the banks of this ssction,

row, looking at all

I p jb

B , ? . Vaddox


those thinre, you say this sietion is normally dependent?
Hr. v^ddox:

i think so.

The Secretary of kgriculturs:

Do you think Um theory of

this lew suggests thst *e crests s district which is normally


Hr. "addox:

It would depend to the extent* I should say,

of the dependence?
The Secretary of Agricultural

Do you interpret the lew to

mean thst w« shall deliberately ere a s

a district that is

dependent end should be aid sd in no rial times from outside
of the district?

Would it be best for this section to do so?

You want a district that

ill rire legitimate business in

normal times the sid it deal es?
vr. Vaddox:

Well, 1 sail referring to a nontal year

rather than a normal, period of ths year.

During the season

from July, we will t*ay, until October, the banks of this sec­
tion borrow heerily.
Isst year borrowed

For illustration, the Atlanta beaks
|t>,000,000, but they paid erery dollar

of it back the first of November, and thmy only borrowed It
for 30, 60 or 90 days,

I do beliere th *t this region during

thst pt»riojJ *ould no t be dependent upon itself.
The Secretary of Agriculturs:

You think it would be da-


p jb

IU P . *'addox

slrabls I f 11 were


poaeible to establish a district that

would be normally indpendent?
Mr. Maddox:

You ia*.an by the word •normal* the year round?

The Secretary of JWpriculture:
legitimate buelnsss
Wr, v**ddo x;

To take care of fell the

demand* of the district,

At all times during the year?

The Secretary of Agriculture:

normally, under noimal con­

The Secretary of the freeeury:

Would it be preferable if


it te possible?
f r , Maddox:


« fr&nk te say I do not know, because I

conatrus the »ct •.« prorldi«i far th»t conti ~
The Secretary of the Treasury:

But regardless of your con-

struct ion, end speaking of it t an economic end f imdanental
principle, would it be better, if possible, to create a dis­
trict which could normally take care of Itself than not to
I de so?
Ifr. XTaddox:

I should say yes#

The Secretary of Agriculture:

Prom that point, you t«*

that this district is normally e borrowing district, that ls9
it is normally sot Independent $ would it , in your judgment,
be better to relate some of thsse states to cotmnunitibs to





the northee*t th at are more independent, connectlnr % lending
end, i f possible, wi tit a borrowing end?

Whet would be the

beet for the cowauni ty?
The Seereisry of the Treasury:

So aa to create more or

leeeof an equilibrium the year round under normal conditions,
leering the other resources *hich the act provide* for resort
in case of emergency,
Vr, Vaddox:

I vhink it *ould be rather difficult to con­

nect thie region with enF other particular region which would
hsve perhaps an excess uaount of funds availsble to lie
loaned in thie region at the lias*
The Secretary of the Treasury:

That is not the question,

Aeaumlnft that i t could be done, ie it desirable?
Mr, Maddox:

Equally balancing all the year round?


ehould esy it would, yes, sir.
The Secretary of Agriculture:

To the extent to which it

could be done it would be preferable, eould it?
Hr, ¥addox:

Yea, sir, I should eay it would,

of course,

the wouat of money borrowed in this region varies.

At thi >

tl»* of the yesr, for instance, money is very plentiful,
| Hoe, i f we hid this ~e#on extended into a very heavily lendtag section, I do no t know ih .t that would h .ip the •ltu.tlon
Federal Reserve Bank of St. Louis

fllv '


R* P. v addox


bt *11 tiroes*
The Secretary of A^riculturs:

You underetand if we create

a district here there ie m>in** te bo nothinr added to the reeourcee of th et dietrict in normal times.

Your Regional

Bank hat s certain percentage of the capital
and reeorves.

*nd deposits

How, the point ie9 whether euch a district as

you suggest *ould hare ths capital and other resources to
take care of the normal nueds of business, and i f not, would
that he a good dietrict to create.
Mr. Maddox;

I believe the Reserve Bank in this district

with the capital I have outlined, with a very small assistance
ss provided in ths h i l l , by the United States making deposits
in this region, would take esre of the normal demand for
money that this particular region could not supply.
The Seeretary of Agriculture:
Mr. Maddox:

Has it done eo to date?

I do not know the total deposits of the United

Status Government in this section.

The deposits during the

crop moving season were o f great assistance/
the Secretary of Agriculture:

In other words, you ars

eu&geetinn a dietrict that would he normally dependent on
outside aid.
Mr. Maddexf

X am fraSk to esy that we have been for *

' ......... .......... ......... ... . ....... . ' ........™ ... ~~ .....~
~~ T


R . y . Iffcddox


rrcat many years dependent, la this »ec -ion of the country.
The Secretary of Agriculture:

Bo you think that is ths

thln& to do for this section?
Hr. Maddox:

Well, 1 1 is hard to answer that question with­

out considering the assistance we could get and ehere it
would cone from.

Of course9 if we are to eliminate the

assistance from any other regions, or if we are to eliminate
the assistance from ihe United Status Govt. rodent t I should s«or
The Secretary of Agriculture:

The theory of the law conte»»

pistes assistance in emergencies, but the theory of the law
also seems to contei^lete that the Committee should lay out
districts which in normal times would he self-sufficient.
The Secretary of ths Treasury:

That isf m self-sufficient

as poasibls.
Y t . ,faddox:

I w u l d h a w to leave that question to you

gentlemen to deeids.

Our Cs— f ties has discussed that


ter in • great many phases, Mid ws ars frank in sayinr t*at
of course at times of the year ths South, as you know, has
borrowed he airily for 50 years9 and in the development of
our resources we have required a *reet deal of capital and
have been cos^pellud to mss our capital as has been «ho«i to


R* T ^sddox




you* over end over e^ein very repidly* vsry much more sc then
; In other sections where the deposit* ere lerger end the dsn^nd
for loene le not quite eo greet.

We believe thet e region

in the eoutheset with the see stsnce prodded under the
operstion of the ?ederel Reserve Act would be self*suets*in*
in£t eo to spesk.
The Secretary of Agriculture:

It could not be s«if-sustain-

ing if it hid to heve ssslstence.
Mr, Ifsddox;

It *ould be self*sustaining in eo fsr es the

set provides thst the deposit of United Sts tee f talc's might
be rasde,

I ©ten it

*ould not be required to rediscount.

The Secretary of Agriculture:

We went to csrry out this

lsw to the best of our sbillty end do the very best thing
for eech section, end ws wsnt to get from you same ides es to
whether ws should be doinr the r l ^ t tiling by cresting e
dietrict of thie kind, which you esy is normally dependent.
Hr. intddox:

I expect thst this district ie perhsps mors

dependent than sny you gentlemen hsre had sitedtted to you.
The Secretery of the Treesury:

You hove Just ststed thet

under the conditione ^itiich heve p revelled for i&sny ye ere 9
you heve hsd to depend upon somewhere else for money?
Mr. Maddox:

Yss, sir .


R . F . irsddox

The Secretary of tho Tressury:


How, under the exit ting

system, I us speskin& of the system without this set toning In
operation —
Mr# ¥»ddox:

I understand.

The Secretary of the Tressury:

You h w e h d to depend on

the yoluntfeiy sssistsnos or the whim of somebody else to
lend vou mcney .#hvn >cu m<edod it*
Mr. ¥sddox:

Yea, eir.

The Secretsry of the Treasury:

You did net kno* whether

you could &et it or net.
Hr. Ifsddox:


The Scoretsry of the Trsssury:

The object of this *ct is

to el ter thst situation to this extent,

thst by laying the

country out into districts, ^hidi ss fsr ss pr%cticshle ere
self~s staining,
frc» the

thst you c&n ret, se s matter of ri^it,

resources of thst system the funds need d to *cet

this nstional demend*

I f you ley out s district whidh hss

not thoes resources, in ^hich you here not fret confidence,
then you still have to depend upon enforced sssistsnoe is
eone direction.


m e fundw&ental for this CesMittee

in guarding ite action, is it not better thst we should,
in considering vhe entire country, se fsr ee practicable.

R. T. tfwldox



l«a out these dis tricts, so thst ia aom sl condition** they
1 «litil be self-sustaining or self*contained?
Wr. ^fcrddoA:

I should answer thst by raying that the bene*

fit -hie region would derive, would be shared by the benefits
in the regions which lent -his section sssistsnce.

In other

*»rds9 i f thers should bs9 es ws presume there will bef s
1 srgs sraount of surplus funds in some of the regions that
you will necessarily lay out, it will be very reasonable to
exp set there vould be no violence done to s region ehlch could
absorb it ,
Ths Secretary of ths Treeeury:

In fchoee esses w* have to

rely upon one of two things, either ths voluntary assistance
from another district with the permission of the Federal
Reserve Board, or ths compulsion of ths Federal Reserve
Board, upon the vote of five cf ths seven members,


under the circumstances, and that contemplates an emergency*
you could not get five members sf the Reserve Board to de­
clare that such an emergency

existed as *ould justify the

Board in compelling another Federal Reserve Barit to come to
ths sssistance of s weaker one?
Hr, ''addex:


comes to the point I would like to get

s littls light on, i f you sre st liberty to ^j^piain it*



R. 7 . ’ '*ddox


whether or nol open market operation*,


explained la the

b i l l , would not relieve that *i ttiout the action of the
Reeerve Board?
The Secretary of the Treasury:
hee to dewonetrate.
vr. ” addox:

That is s setter experience

We could not settle that here,

In other ^orde, i f a Reeerve Berk in e rich

eectlon with e large amount of money idle, could not uigtgt
ia op a market operation** ia this region without the action
of ths Vederel Reserve Board requiring it/do so.
The Secretary of ths Treasury:

That m i # t not be effecti e,

j it mi^ht not be sufficient.
The Secretary of Agriculture:

The competition of other

sections wight interfere.
The Secretary of the Treasury:
toudi ths point with us.

Then again, that does not

Should ws teke the s chances of

relief in coneidcrin^r the fundamentals of our problest
Should we not,

as a matter of fact, try to make these dis­

tricts as far es practicable self-contained units, coordinated
through this Seders' Reserve Board; sad is it not to ths


interest of every lection in this country, if it *ants the
maximum benefit under this act, to have ths country so laid
out into districts, re^ardlses of the wishes of some partlcu*


H. F . Veddox



lex couaunity?
Mr. Ifsddox:

I us trying M snswer It without tfie d«sire

of this particular coraraumty, but
lag for Atlents.

s region, end not spesk-

Tho point that I tried to eneeer s moment

ego wee in tho losing out of thio greet country into eight
or twelve regions, you will necesserilyk I think*. ley out
some regions thst will heve surplus funds in ths Regions!
^enk to us©.

Howf we elbif that there is no Yiolence done

the conwerce of the country if one region during s few
won the of ths yeer could use thst money %dreat*geouely»
The Beeretsry of Agriculture:

But you sre eugg&etin^ thst

the mechine rr crested for operstion in sn emergency b© used
The Secretory of the Tressury:

And to put emergency

mechine ry in 10 uee in normsl conditions.
Hr. Maddox:

The d if f e r e n c e between the wount t h * we

would hsve to lend from our Begional Benk end ths myjim&m
etaount w# would re quire is not over five or six million dollsrs.
The Secretory of the Tressury:

But you do not teke into

consideration the *nomous borrowings outside of the nstionel
b&nk@t ^fiich ere not rejected in sny of those ststements.
The Secrotsry of Agriculture:

You heve no t given us ths


R . * . Fadddx

etate bank borrowings.

Mrm l<addox:

Ho, but I was referring u> Ui« Beglontal heserve

I 3*nk in this diatrict,

tubecrib^d to only by the national

bank#. »nd that bank would take care of the national banks
1b this region with e srssll Margin of five or aix ?aillion
The Secretary of the Treeeury:

But your

problem ie to ley

out theee die trie te eo they «rUl take care of the regions a*
far ae practicable.

It ie not a qu**s tion of the national

banks alone, but of servinr the people of the dietricte.
The Secretary of Aj^riculture:

The question ie f whether it

ie poeeible to lay oat a region with stronger resourcee, if
it were poeeible

to combine to eome extent a lending region

ith a borrowing region.

Would your farmers and buelneee men

and other* bo la a stronger poeitlon or not?
The 3eeretax? of the Treasury:

Should not we lsavtn weak-

neee with strength wherever we can?
Mr. ''addox:

That wee eur idea in hoping we will get that

aaeietance from some of the stronger regional banks.
The Secretary of the Treasury:

I think i t la a f»n «reatsl


misconception 4 f the apt to *<•# ** aut i JieXJUuu
d i .t r l c f

m U tte M ~ .




K. ? . Maddox

fr. V&ddox:

ap p ly

Wot not til the time, but et cert el n seeeone


th e


s»ble to

th in k



this Reserve Bank «ouI d be *hle end


The Comp troll e r o f
put ia Borth


th e

of the rediscounts

bills peyttte.

¥r. ITeddox, I s«e you here


South Cerollne

m l

end h e w

left out Hew Orleene

end Loulelene,
Mr, V&ddox:


The Comptroller
eeet o f





Fleeleslppi Hirer,



Orleene end Louleieae

though you eey thet the di­

rection fend tread of bueineee le s*etw*rd#

Ia other words,

Korth end South Cerollne would be working ewey from Atl&nte



would be

towerd Atlente*

w oxfclag

thy eee it

you put in Horth and South Cerollne end left out Hew Orleene
end -het portion of Louie ion* eeet of the iflssiselppi Mwer?
Would it not be n o n neturel for


bueinse& o f



end eeetera Louieiere to trede with e Regionel llmk In
Atlente thm It would be for Sorth end South Cerollne, with
their established trede connections?

Ur. ^Midox:

The Vioeleelppi Blwer prob ably controls the

cowaorce of thet emotion, end ruanlnn north end eouth we did
not think it could be eeelly diverted thie w*y#
The Coapt roller of the Currency:

la regexd to the quest lone

R. y. V&ddox


e^iich th# B ic n t ir l e i bar* jutt been asking you, *»s to the

'hich you h w s bsesi borrowing* you hive not in %our

replies laid any sp ecial caphseis on the fact thst you %rs
carrying in your banks * t the present time, s l»»rgs amount of
money in the centr&l reserve cities, Hew York and Chicago,
Mr, "*ddox:


The Comptroller of the Currency:

And perhaps

some in

St, Louis,
Mr, vaddox:


The Comptroller of the Currency:
Ottley showed thst the average

How, I think thst Mr*

borrowings amounted to less

then or about one half of the sverege balance which he carried
in Mew York.


Yes, thst is s very strong point,

Ths Comptroller of ths Currency;

Is it not true thst the

balances heresfter which you sre no * carrying for your pro­
tection in New York end Chicago may be carried in Georgia or
la At^snts?
Mr, ^addox:

Yes, sir.

The Comptroller of ths Currsncy:

So as to provide

a pro**

taction, end they will be quite *s available or mors avail*
&ble hers than they would be under the present conditions

in lew York

and ths Central Reserve



R. ?• W*d4ox

Mr. ^sddox:


Yes, &nd the '.mount —

The Controller of the Currency:

Another thing.

It it not

true th*t b greet desl of the money is at present shipped
ew*y fro* Georgia by country b*nke end by others th&n ycur
Atl%nte banks, which you hare referred to?
Wr* Kfeddox:

Yes, sir.

Ths Comptroller of the Currency:

And kept there, which under

s different ststs of things, would he kept in the Stste of
Vr. Maddox:

Yss, sir.

It is well known that nearly every

bunk of l*portsnce in the south has kspt < n account in Hew
York, fcr two rests one \ one tc prowl ds exch mg u **nd another to
provide s bc*eisfo* credit.

Sow, with * Keserve Bank Iocs ted

wherever it mmy he, it will nsturelly create titfht or twelve
per pSints which will he svsilsble

ell over ths United States,

and we believe thst the deposits made in the Ressrve Bank
in Atlanta, for instsnce, would be very such 1 srger then the
basis of


vs h f
*ve me^s, because the es excess re*

Serves we are now carrying in the north would, ss you heve
suggested, be csrrled In Atlanta end ths deposits vsry much


R . P . Mr*ddox


The C om ptrailer o f th® Currency:

# h > hav© you Lo say

as to the d e s i r a b i l i t y o f p ro p in q u ity &e opposed to


w e ll b * l **nced reg io n i to whet e x te n t ^ j u ld propin<*uity
e f f e c t the f * c t th et e bank miirht be dependent in i t s e l f ?
In o th e r words, th ere would lie r e g io n s e t some d is ta n c e which
would n a tu r a lly o f f s e t the e x c e s s demands Which you hvre say
f r o * the s e c t io n through h e r e .

Would the f% ct thet A tlanta

m&uld be so much n ea rer to t h i s country o f f s e t th et d is ­
a b ility ?



hirtk I could answer th e t , Ifr. C om ptroller,

by ea y in r th e t any f a c t in t h is region during b u sin e ss wi th
a R eserve r **nk tn A tla n ta would be v e r y much more con ven ien t­
ly served in the fu tu r e than it has been in the p * e t , ^ i th

lo e n e made in th e e a e t .

The S e c r e ta r y o f the Treasury:
t r i c t , Mr.

In la y in g out t h is d is ­

addox, *h e t s s s m p t io n have ;ou made aa to the

number o f d i s t r i c t s in to which the country efaould be d ivid ed ?
Hr. ' nddox:

W have fig u r e d th a t ten would be a very good

number, Mr. S e c r e ta r y .
The 3e«r*t*ry « f th« Tr**«ury:

And thi* 1* i*ld out on

tlie th eory t^aA « • «otild have ten?
Wr. w addox:


V e i l , i t i s f l e x i b l e , i t co u ld f i t in w ith

R. P . Meddox


eight t i g h t , ten or tw elv e, hut It would p rob ebly nork out
wi th ton.
The rsecretery of - Tra&eury:
our experience
end we '.vent
te llin g


die trie t e .

you to etock to
whet y o u r


d iv ie io n



w ith benke








m uch

little b it more

fo u n d

certain ty





le y in # r o u t


th ie


fle x ib ility

th o ee

freeiate e i r :h t r b e e e u e e y o u h e v e

to kno^r w?»et the o t h e r

Mr. ffeddox;


eee i o p t i o n e ere in


th e


Kow we


d ie tric t,

d ie trio te



' f e l l , I w i l l t e l l you b r i e f l y ; I do not know

th et I cen epeek fo r e l l o f the c o n a it t e e , beeeuee th et
m e tte r , %e you know, i e e t p r e e e n t even v ery indefinite,
I kn o^, you gentlem en hwre g iven no in d io e tio n
ee to th e number you w i l l d iv id e th e country in t o , enr. fo r
th e t reeeon our general id e e wee th e t there ehould be —
The Seeretezy of the Treeeury:

How meny d i e t r i c t e , on

the theory of t h i e one?
,;r* |f&ddcx:
Hr. Orr;

Ten, wee i t n o t, Ifr. Orrt


The S e c r e ta r y o f the Treeeury:

Where ere the

wb*t v/oe your id e e eb ou t the o th e r n in e?

o th e r n in e ,


R* P. ''feddox

Hr. ^?*ddox:


You m mi the cities?

The Secretary of

- Treasurys

W«ilf you atay s t a t e the

cities, i f you h*»ve them.
Ifr. Haddox;

Boeten, lew York, Washington, Atlanta, Delias,

3 t . Louis, Chicago, Denver, San Francisco

«nd S t . Paul or

ranees City.
The Secret & ry of the Treasury:
Ur, Keddox:

Yss, eir.

The S ecretei^r o f th e T reeeury:
Mr. ^& 4 dox:

St. Paul or Kansas City?

Ho» many doee th&t Eiake?


The S e c r e ta r y o f th e Treasury:

Hare you prepared a map

ehowinfr the b ou n d aries o f th eee d ie t r i e te ae ycu h eve thea
ia mind?

Mr. Faddox:


The S ec r e ta r y c f th e T reasury:

You m i^h t take eome o f

th e se c o p ie s o f maps s*nd you may subm it th a t on o r b efo re
the f i r s t o f r*#rch to the Coaaaittee in W ashington, o u tlin g
the d i s t r i c t s you hs*d in mind,

so we aay s e s eh at r e la t io n

they hmr« tc t h i s d i s t r i c t , and in d ic a t in g in each the r e se r v e
c i t y and sdso in each the c a p it a

and r e so u r c e s o f the banka,

in each one o f the d i s t r i c t s .
I f A tla n ta sh ou ld n ot be the head q u arter s fo r s


reserve bsrifc, wh *t would be your second choice, Mr. Meddox*
wht* is the second choice of your Clu&ring House Association?
Kr« Vsddox;

For what region?

The S ecret& ry c f the Tre«aiury:

For * r e g io n embracing

Mr. Mfoddcx:

I aesn for uhat district?

The Secretary o f the Treasury:

A district Including

rgl*y f n dietrict; shf»t would be jour seoond c h o ic e fo r
t jf

any p r a c t ic a b le


d i s t r i c t o f wfti dh G eorgia vould f o r * s p&rt?

«* believe tha»t Oi&t t**nooge for those

seven st&te3 could sc rrd this district very sdv&ntegeously.

The Seerstsry of the Treasury:

You ^ u l d fevor Chftttenoog*

ss your second choice?
Jfr* Uwldox:


It is more accessible to Atlanta than

any other c i t y .

The S e c r e t ^

o f th e T reasury:

Aftmniiig th a t the d i e t r i c t

#ent eastw ard fu r th e r to v ir d s Richmond, o r nren in clu d ed the
d i s t r i c t o f Columbia, wrhat would be y«ur c h o ic e then?
I'r* Meddo a :

W^uhingt on.

The S ecreta ry o f th e T reasury:

And you think the n a tu ra l

trend o f your business is no re in th e t d ir e c t io n ?


Hr. Maddox:


Then what?

The Scoretary of the Treasury:
Mr. irt,ddox:

Then towards Chattanooga?

Yes, sir.

The Secretary of Agriculture:
in that district.
!fr. Maddox:


New Orleans included her

What ..ould >ou think of what?

Well, we would not like to he put in a district

with Hew Orleans,
The Secretary of the Treasury:
Mr, Maddox:


Why not?

do very little business with Hew Orleans

The Secretary of the Treasury:

Then it would do violemve

to the ordinary course of your business, would it not?


thst ths ides?
Mr, iraddox:

At present, yes, sir.

The Secretary of the Treasury:

of course you are aware that

this Act provides that there shall be branches located in
these different districts*

Would not ths needs of tftis

section be served adequately, assuming of course,

that » district of sufficient strength was created, and thai
the headquarters bank was at some other point than at Atlanta,
would you not be well served with a branch bank at Atlanta?
Mr. Fsddox:

That would depend upon the facilities o f ths

R. J , T


branch bank, end I do not know what the facilities would b«,
Hr* Secretary,
Th* Secretary of th* Treasury:

You ore familiar with th*

provisions of th* Act ite elf requiring that branches shall
be ** tubllshcdf and th at they shall be roanaged by a Beard
of seven dl actors who shall possess th© suxu. qualifications
as thee* c f th* Federal Reeerve Bank Itself.
tend tc localise

How that would

to a larger degree the operations of the

branch bank than tho ini cf th* Federal Reserve Bank in th*
coswualty in which it i* *ltuet*d.
Mr. vaddox:

Would the K**erv* Bank be localised in it*

The Secretary of the Treasury:

I say the branch would

b* more localised is it* operations than th* headquarters
bank, necessarily.
Ur. ^addox:

I do not know how far that operation would

The Secretary of the Tr*a*ury:

The power of the reeerv*

bank of cour**t could be exerted at any Elvefjt b.:%uicht and
whiles the branches would be governed by tha g e n e r a l policy
adopted by the headquarters bank* nevertheless in tha Better
of local r*-discount* arid loans, the whole purpose of th* Act

R. ? . 'r


la to confer that powsr and largs discrstlon on the local
Board; otherwiss ws would not creats a loc%l Board,

Bow lookingi

at it as a practical banking question, i f you could not hare
the headquarter© bank here, would not the needs of this
section be very well served by having a branch bank?
Hr. Maddox:

If the branch bank

»*as strong enough to

aocomoiate ths nesds o f ths locality in which it sras
located, I ehould think i t would.

feature, I Inanrine?
would be the s f

It would here the exeh w

In other *o rde, s check on the brandi
as a check on ths Regional 3%nk, would

it not?
Ths Seeretary of \he Treasury:
nr. waddox:


And circulation at par.

The Seeretary of ths Tressury:


You are going

to hat® par ring of exchange between these reserve banks by
ths provision of ths Act itself.
The Secretary of Agriculture;

It would be bound to here

its proportional strength of the Regional Bank.
The Seeretary of the Treeeury;

I f the Regional Bask wear#

here >ou could not get i t all, you could only get >our
reasonable shars.
Fr. vaddox:

Is it contemplated that the Regional Banks


R# F . vaddox


will have sufficient deposits from ths regions where thsy
ere located to take cere of the demands by the member risks?
The Secretary of Agriculture:

That is - questioa as to

the laying out of the distrifits.
The Secretary of the Treasury:

fhet relates back to ths

constitution of the district itself, sad there is where the
import sice o f the problem arises.
Jfr. Vsddox:

I sss the difficulty.

The Secretary of the Treasury:

Of course, ths power of

the headquarters hank could b« exerted at §«y branch* the
full pever, i f it was not reqyirsd somewhere else.
Vr. traddox:

I believe the breach beaks are geiag to be

of great assistance to the system, but it all depend*


seems to me, as te the insert Mice of the breach baak and its
ability to ^erre the district #iere it is loceted,
THe Secretary of the Treasury:

As s practical baaker, aad

a practical mea, Mr. Maddox, look lag squarely ia the face
the purpose of the orgaaisatioa of these reserve banks, they
ere organised for the purpose of holding the ressrve power
of the beaks of the dietrict#

Hoe so loag ae the reserve

bank Itself ie at aa acceesl ble point, so that resort may
be had to it by the metsbsr banks Mheaevmroccasioa rcquiras,


H. ym Faddox



and so that the buaineas may be expeditiously conducted, how
much importance do you attach to the U c t U t a of the headquartere bank in any particular city ia anybtiietrlct?

I will

as:T th* hood quarters bank, aeide from who question of local
d^elrs and pride and ths desire for prestige?


I believe the branches of the reserve bank*

can T e made to serve the districts in which they are located

e^irllj as well i f they are *iven the e w e power ae the
federal reserve banks.

And as you Pay, of course you muat

admit that apart from the desire tc have the headquarters
b*nk In • portlciCUr city, I ballcve the operation of the
bill in the future, ae you gentlemen will Make rules to meet
the conditions,

rill be vsry ecceeeible te the localities

and be very convenient for them*
The Secretary of the Treasury:
ths other s t a t i n

the district,

I f you could not deal sith
take the State of Georgia

slone, would it not be poaaihle for you te get soma line
upon the re~dl acounting done by the state and national
banks in this state, at the time


Mr. ,r%ddox:


The national banks report te the Comptroller*


H. ? . 1'sddox

Th# Seeretary of the Treaaury:


We h w e got thetf but th#

#t*te bank* hj*» an inqoortant factor* *nd ## would like to

b i « &# get it .

kno# #eoethinfi *h©ut them if it i#


¥ssv #irf they borrow a good dehl of money.

jjhi Se®r#t#ary of th# Treasury;
develop %s much information alom
Of course,
it n


Aad if# would lik# to
thet line as i# possible.

thi# Committee ha# th# power to get thst inform#*

h hed th# tine; we could subpouae wltaesse# *t a

compal th# production of book#, wad it may be thet we m#y
c *11 ipoa the state bank# to fu m i #1 or supply euch ia fo x w
net ion j hut la eo far ee the iafomatioa could be voluntarily
•upplie l9 it would fc#ve time end would be of value.

Woul d

you geatlcnen undertake to get such information*
l r . viiddox!

With plee#ur«.

We will do our beet.


of the elate# have different #y#t#m# of reporting those

I should think th# &upcrlnt»aaent of Bank#

in the states could probsbly get it .
fhe Sworetery of the Treaaury:

Take the state of Georgia

lonitt dealing with you# Peaking Commissio*er, ##e i f yon
cannot get thet inform*tioa.
Wr. „%ddox:

I cm give you Oeorgi# now.

The 3i»or#tery 0f tb# Treasury:

What we particularly would

R. 1*. v*ddox


like to get la the t o U l borrowing* of this *t*ts in txcees
of the evtlltble

lending power of the etet#, &nd the seme

tuon we *>re •<!drc to other *tetes«

Thcue ere very

important factor* t bcceuee if - count ry is to get the benefit
of this Act in the hi^hcei dcgreev *> d thet i* v>het .«* weistj
w^et we w*r*t ie to get the maximum benefit of thi* seseure for
ell th* people of the country, ri|»rdlfiti cf the rival ty of
the rcasnuni ty, ‘rnd

v* went ?,r* the fecte which will

th* Casmlttst; ene t n iM t it to rer#ch en intelli gent

conclusion — i f yen o«*n £*t those feet* end send then to us
in wb*hinf!tonr we should be vexy glsd to heve the®.
» r . weddox:

We 4 1 1

try to fret them.

The Secretary of the Trvssury:

You spoke s aeaent e&o of

the borrowic? in thi* district of th* netion&l benks elons
being something like | 2 3 ,000,000.
t?r. tt^ddox:


Th# Secretary o f the Treasury:

Bid you include in thet

the speoiei government depoeits?
^ r . Viddox:

Fo, s ir, !

aot think so.

We eerry thet,.

»s j'ou of course km % oh our books ea e deposit.
The flscret.ry of the Treesury:

You do nut cerry it e* e

M i l p*ysbL*f although it ie In feet.

R* F . Vaddox

' t # *'addox:

TiSf sir.


Wo notes were given for it .

Th# 3s«rstaxy of the Treasury:

of course, we could supply

th at ourselves.
!*r. v*ddox:
io 50,000.

The Atlanta banks, I believe, received

I do not think %hat the additional amount — Mr*

Wlili^sme probably knows the waount, but I do not think it

42,000,000 altogether.

t h e Comptroller of the Currency:
fh© Secretary of the Treasury:

# $ ,5 0 0 ,0 0 0 .
Ice much of the reserves

*hich you ke»?p in Hew York do you consider

you ke«p there

for exchsnge purposes only.
Mr. v %ddox;

I think Vr. Ottley9s figures shoe we keep fifty

odd per cent of our total reserves in Wew York.
The Secretary of the Treasury:

How *ueh of that zovtte you

aay is required for exchmi*e purposes?
Mr. vaddox:

Perhaps half of it at present.

*h* Secretary of the treasury:

In view of the provialone

Jof tMa b il l , the parring of exchanges between these Federal
Reserve Banks, dc you think it is going ta be necessary to
keep such exchange balancea in the different cities in ths
Mr. Maddox:

I <© not.

R . F . ¥addox

The Secretary of the
vision of the 1 aw




*d v a n ta g e




loo k

up o n

th at p ro ­

o r not?

A very <?r«*t f
*lvente#C| »ot only m applied to


Hew York bat other 1 *r£e centres*

Secretary o f the Treasury:

tu n o ijp itlo n


l£r. 1faddox:

wfiich y o u

t*e fe rre d



a moment




a§£o,very h a p p i l y ,

Thank yeu.

Tha Secretary of the Treasury:


There sre provisions ia

\ct, on p%£& 11, Section 13g and I rill read thie, be-

cawee I vent to address the question to your Clearing House,
providing: th*t, "Upon the Indorsement ef any d f ita member
banks, siith m **iv*:r of demand, notice and protest J*y such
bank, *ny federal Reserve Bank r a discount notes, drafts,
a *y
wid bills of exchan/** ,rifein~ out of actual co«aercl*l traneactions, th?*t ia,

notes, drafts and h ills of saoofeaogs issued

or dr**n for agricultural, industrial or cosnercial purposes,
or th* proc :eda of ihleh h»ro been need, or ere to be used,
Tor a u c h


< **te ra d n e

e lig ib le


*o r d ie o o e t n t ,



the Federal




Heaerve B o a rd


w ith in



th e m e a n i n g o f

p ro v isio n s in


to h a v e




th is

r i^h t

A ct**

s i c ti o n

w h ich I


R. ? . Maddox

not read.


Wo should like to h mm the Atlanta Clearing House

uonkxdur thet question and eubmit s jsemoran'lina of their tIqws
ee to ^n*t

^ould he e proper definition ef coerwrciel psper

*ri thin ths meaning of this Act.
Mr* Vaddox:

We wrould be very glad to.

The &*eretary « f the Tressury:

And slso to so&gest st

ths ssae tine stenderd forms of notesv bills end drsfts
which might be employed in the operation of the Faderal
ite»«rr« «yatamt with • Tl«w u

naJcinf uni fora, so fur aa

practicable, the character of theee transaction*.


ehould eleo like you, if yon here any cosKtrcial paper which
is of s peculiar character, th at relstes te this district, tel
hers reference made to it , and s description made of such

The reporter will giro you this whole question.

Fr. Maddox:


Of course, yon gentlemen know thet the

loens mode in this region, or ssy perhaps in ths south, ere
for s longer time —
Ths Secretary of ths Treeeury:

Yon mcy coTer all that in

your memorandum.
Mr* vaddox:

But ws will endeeror te do so.

That applies

more to the small etate banks or benks in small towns deal


R. y. Wsxldox


i ing directly ri th th* fana^r Uu«i the city banlia.
The Secretary oT tha Treasury;


fail information

l f ;-ou ea - to oovcr in Ib^t bri. f t \r «h*uld b* ^lad tc hare.
How Section 16 on p*»£e 1 9 1 contains & further proT i c l*»n; T ehall emit n»tiding to >ou tha provi«ia»e relating
to -ho r*. qiii rin£ ►.'•at Federal Roccrre 3at*ka aha 11 x « f i i T « on


t i i frorr i tr.ber ban & , and gc tc shut *ar*gii*jjh
< *

which p r w i ^ e c

that •The Pe 4c rail Bsccrv* fshftUl iaake

Mi l £
’.wuul£> tc f > >
’< m imi to tint rt£Ulationa gcTaruing the
ixMiift? oi fttnde i»m choices therefor tiu»u6 j?ei**rel haeerre
'bt&n>■* and th eir brt»nchttt *n£ a«*} as ita dreereticn cxtroiae
t < function*) c f a clearing hcuae fcr »uch Federal Reserve
fc *
hanka, or racy designate a jfs?d*ral iUaeinre Bunk tc ^xcrcicc
euch functio n#,

wid may also require each auch bank tc

exercise the functions o f a cleerinpr f c r ite <aeart>ir b a n k a ."

Koi? Ur. Ottley referred tc your clearing house ayetea
htr$ t^T country banks*

Tc ah*old ha glad tc hare you ewtait

a memorandum with ycur «tigg<*etlone aa tc how that prori dLon
of th* last as*y bast be effectuated, and alee give ua ycur
euggestiona aa to ths character of chargee ^hich ycu think
ahould bo made between the Federal Eeeerve Bank and their
hr anchoc fey handling thcee traa^actitfna.

a p

w p r a 1


p jt


B . 7 . I'cddcx

vr. }*add©x;



We *ould b« very glad todo so.

The oecret&jy of the Treasury:

The reporter will give you

the so question*?, m you will furni eh ttt I f pond blef by the
fir s t of
vr. Jfaddox:


Secretary of the Treasury:

In speaking of choice*

here, supposo that rou were related tc a district including
Koatueky, *hat would he your view about I-ouisville &s the
headquarters for ths bank?

Wo had a map filed by Louie-

villa, for Inst nee, embracing Georgia.


Your question as I caught it wee how Atlanta

'♦ould like to be thro-aa

into a region m th Louisville?

The re eretary of the Treasury:

Ho, I eayr Louisville

filed a map which ensbraoi-d the states o f Georgia and Alabaaa,
Cud A ia southeastern section.
ware created,

low aeau minr sach a dietrict

«ould you prefer tc hare Louisville the head­

quarters of th^t

or Feahville or Birain^ham, or «hat

city woul* bs your first choice under those circiaaetencee?
Hr. ya4dox:

Of thoea thr e cities?

The Secretary of the Treasury:

Of those three citiee,

j *hich weald be yjur fi rst choice?
Mr. Vfiddox:


Kaabrllle ?r Louisville?

R. F. Keddox

Th# Secretary of the Trueeur,/:
Mr* *?eddox:




Th© Secretary of the Treasury:

Or Birmingham, I had three,

Louisville, Nashville er B irminnham.
¥r. Vbddox:

Bixminrham #ould be nore convenient then

F &sh rH le.
The Secretary of the Treasury:
Mr. W^ddcx:

You prsfer Birmingham first?

To Nashville.

The Secretary of the Treasury:

And whers vrould Louierill®

stuck up In the matterof choice?
Mr. Weddox:

Ve have not considered Louieville st *11 as

possibly beinp related to this region.
Ths Secretary of the Tre&eury:

But assuming that it was,

now whet would be your view of thet %s between Birmin^hem,
Louiavilie end Neehvillu, whet would be your second choice?
Mr. Maddox:


Tht Secretary of ths Treasury:

You said Bizmin^ham first,

I understood.
Mr. "feddox:

B i n g h a m .would bs my first choice of those

thres cities, Weehville eeeostd and Louisville third.
Ths Secretary of ths Trsssury:

I may say hsre, gentlemen,

that it must not bs inferred that the questions /hich m ask

R. IP. ffsddox


the witnesses *r« indicative of sn* opinion on ths part of
the Commit t«s or so indie sting eYsn s trend of thought or
o f mind.

Ve hare to sek these questions in order to bring

out ths f b o u , end 2 other significance must be pi yen to
our line of questions then thst.


Thet is *11, thank >ou.

p jh


Kr. Orr:

A. VcCord


Vr. Secret try, our n u t witness is Ur. VeCord.

B ram san or jqs.
The Secretary of Agriculture:

a. lieooD.

Vr. McCord, rItx ths re-

porter your full ^«»e, oddreea end occupation, for the re­
Mr. VcCord:

Joe. A. VcCord, Vice-Preeldent of the Third

National 'm k 9 Atlanta, Go.
The Secret nry of Agrlcul ture:

Mr. McCord, you know the

problem § • i i boo b tn • toted; wo would be glod to know your
Mr* McCord:

Yoof oirf I hove given some study to it, but

I at not o profeaaionel.

I hod studiod the problem come.

The Seeretary of Agriculture:

a»e would be very glod to

hove ony Tlewe you may be able to give ue.
Mr* McCord:


thle first 4ueetion, Mr. Orr, our Chairman,

hoe eaked me to enewer —
The Seeretary of %riculture:

Mill you apeak o little

b it louder, Mr. McCord, ao these gentlemen con hear you.
Mr. ’ cCord:

I aey, Mr. Orr, our Chairman* aaked me to an ewer

firet the <^cetionp impounded to Mr. Weddox.
Veddox possiU y You
it .
Federal Reserve Bank of St. Louis

I think that Mr.

*isund«rstood ons figure, . r one point la

o r e »skin,- h i» *s to the nom sl conditions, end


J* A. IfcCord


I think Ifr. Maddox ?
~ad that confused with abnormal conditions^
In my opinion I bull ere thst this territory thst ws h me laid
out hers, undsr ordinary normal conditions, will largely ticks
csrs of itself.

The Secretary of Agriculture:

Will you define tfhat you mea*

by ordinary no raal conditions^


Yeaf sir, I *111.

Thera comss s certsin period

of the year when we hare to movu these enormous crops.


time is sn abnormal condition.
Ths Secretary of Agriculture:

Well, your definition of nor­

mal or abnormal has ref erenow to the normal movement —


movement of the communi ty?

yr . UeCord:

Yes, sir.

The ‘^crtitary 0f Agricul turs:
erence to ths general

Usually these terms have ref#-

conditions prevailing ov r the country

creating a difficulty or a lack of difficul ty in *eeurinr fi­
nances for undertaking.
Hr. McCord:

Yea, I w i n *ppl> it in both ways.

Ths Secretary of Agriculture:
one other question.

Well, allow me to ask you

Are not the M g movements of your In­

dus tries here, in certain seasons of ths year, always abnormal?
*fr. McCord:

Wo, sir.

Ya«s t « « r * U r y oi A&rlcultures

Are met your normal ao*$-

aenta dlifioneiL

cCor u

$©, sir, no ,ir, tbsy are not.

Tha Secretary of A#rioulturs:

Doss it not ft*;pan svsry

ysar tbat yru bare those norms! abficraal seveiMmts?
Hr. MoCordi I say * • bave abnormal aotsaente at oortaln
periods of ths ysar.

Tiiw Sscrstary of Agricultures

Ks*»lng tbat Uu requirement*

lor tills station of toe country arr & aoraal stats?
Hr. McCord: Ho, sir.

Tbs Secretary of Agriculture:

It bafftftft every year,

l o w 1! it!
Mr. MoCcrd: *o» sir.
Tbs Secretory of Agricultures T o w big «o?e*enta of irsii.
Mr. MuCordi


big novsaonts ooa* svsry y«»r, but tbe

condition of ths bmnfcs to bumtain it Is


Tho Secretary of Agriculture* lould you say tbat it is
usual for tbs bmks located o*sr Ui« tsrrltory tbat you aav*
napped out to bs dsfsndsnt on outslds assistance to finance
tbs cropet
Mr. McCordi I e*y so, oaospt In aae or t«o aontbs of tbs

I say tbat Is the abnormal condition *s to tl*„,



J* A* McCord


in the abnormal condition m to the crop,


thbt ie the aboormf*!

condition as to the businsss.
The Secretary of Agriculture:

Bat the normal condition

ie that you are dependent on outaide assistance at some per*
Mr* cCord:

At that particular period, we are*

The Secretary of Agriculture:

In the discussion of ths

general term of normal or abnojbiijI# s I said, it has reference
tc the conditions and the atatc of the country,

m to

whether there it depression or the reverse*
'fr. McCord:

Yaa sir*

I have prepared, Mr. Secretary, a

statement madu up froi the calls of the Comptroller, and the
figures are made up at intervale in e*ch period, say, com

mincing with 1907 — I forget the exact dates, but I h are them
*eref and I will submit them —

*hich shows the conditions

of the banks in thia particular territory for 10 out of 12
man tha of the year, at different periods*

Nojr, these were not

selected for any particular results, but just simply taken
on a scratch book to make a statement —
The Secretary of Agriculture:

Before you get through with

that* i* that with «axdueive reference to the national banka?
Hr. McCord:

Ko, sir,that takes in the atate banks in this



J. A. VcCord

4 0 3 8

state, and I may state, one or two of the cities — other
cities have like conditions —»
rtfhe Secretary of Agriculture:

You realize i t is * much

larger problem thsn ths mere system of state banks or
national banka?
Mr. McCord:

I do.

The Secretary of Agriculture:

That ws have national and

state banks?
Vr* McCord:

That is true, because thsre ars othsr opera­

tions that have to bs coxtsidsrsd.
The Secretary of Agriculture:

Generally cominr through

either agency?

1 r0 VcCord:

Yes, I understand that; Trust Companiesand

other properties outside.
The Secretary of Agriculture:

We ?*ould very such appre­

ciate it i f you could co-operate with Mr. Kaddox in giving us
all of ths infonsation you can.
Mr. McCord:

I will do ©o with pleasure.

The Secretary of Agriculture:

Well, I did £ot mean to

interrupt you so long.
Mr. McCord:

How shall I proceed mith the subject assigned



JT A. VcCord

The Secretary of Afxleulture:
Mr* McCord:


Yea, air.

Thi® formidable array of document a &r* net *11

intended to be aubraitted, hut they ere merely coplea.


le the greater producer of value of &ny coaaodity in tha
Southeeatttrn atetee —

thet ia v the territory thet ia being

outlined —
The Secretary of Agriculture:
Mr. McCord:

Mill younflle thet with uaf

Yea, eir9 but en ebetract of it 1 will

giv« you with reading the *hale of it .
the Mlaeieaippl Hiv*.r;

,ry to

growa Beat of

7,544,927 balea ia the report of

thi a year* a crop to J&n. 16 th.

V&lucd at #65.00 per bale,

it ia $565,00 0 ,00 0 .00 , tekinj? one aixth of ell the aoney in
the United Stetea to pay for it .
thi a.

The exaot

Qeorgie releed 3 0 . of

center of thie production, Mr. Secretary

end I r. Cocaptroller,

la in 64

a few ailea Wortheaat of Macon.

railea of Atlanta, at Bock,Ga.,
The exact gaographical center

of thia ecae territory la at ?r
orel*nd, £*a., 45 allea Meat of !

I f you will ellov Me, I *ould like? to read thie. I

w U l rire It in eba tract ea conciae *a poaalble.
The Secretary of Agriculture:
waa thi• ; i f

m ara going to file thia paper, the reporter

need not take It .

The only point of ay inquiry


J . A* McCord

Mr. McCord;

it is reiy ahort, %nd I

with It in h few minutes.


/ill $zt through

Atlanta la the central city cf

this cotton bel t, tkken fro* a numerical, ? well as from a
geographical point of view.

Cotton is purchased in taaell

towns snd money p a ren ts are necessarily made at ihoee to#ne.
Buyers classify, mark for export, and ship from interior town

end cities to ships id« at ports, henoe the hanking facilities
should ho nearer the center to benefit the greatest number of

There are

compress points in Georgia, where cotton

is concentrated and export bills are ieeued*

Two million,

one hundred and twenty-six thousand, eight hundred and three
bales we estimate was the compress crop this year*

I have

figures from ths compress Companies shoving the location of
thess cos^rssses and the accounts compressed at each point.
Other states hare similar concentrating points, but as all of
t^sss will equalise, Georgia is token because it is ths cen
or pi Total state, in ths region we suggest.

To locste s rs-

serre bank at a port would not serve the interior as •well as
i f located nearer the producers.
would not uerre the whole section.

To locate at any extreme
Currency mey be shipped

to any town or city ~
The Secretary of the Treeeury:

Why not, now?


J . A* McCord

¥r. McCord:


I wrUl *ret to that in the next sentence.

C r*u

can "be shipped to any town or city on any main line of

railro ad in the seven

Southeastern states, from Attaiti, Ga.v

aft-r five o'clock in the afternoon of one day, and delivered
by not 1 eter than ten O'clock next laominr to the farthest
point in these states —

these seven states.

The Secretary of the Treasury:

Suppose you had a branch

bank hers located in Atlanta, loaded with currency, you could
ehip fro» the branch just «s easy?
Mr* UcCord;

I grant that, with the facilities, the branch

could serve the purpose as « t U ae the; bank itself.


value of cotton to m locality can be estimated if you will
allow me briefly to state it by illustrating with two counties

in Georgia.

In one county they raised this year 52,551 bales,

and in another county, §2,59*? bales.

Mow, the value of that

one crop of cotton is jsors than ths rstum for taxation of
those two counties, in each county,
this vast aesount of wealth came into

^hile it is true that
locality,itis also trus

that nearly all o f it went out for ths purchase of fertiliser*
supplies,food »nd cl© MLne for the prdducers of thie enor­
mous wealth; hcnde the necessity of financing a conrnity
thus situated*

Ths counties cited here are Burks


p jb

md Laurens.

J . A, WoCord


It requires mors m tual money to produce th«

co t Ion crop than i»ny ef %he loading crops of ths Uni tod States,
because of the necessity of ths hand cultivation and gathering,

md the tenancy system.

Farmers, merchants and manufacturers

require an extension of credit to produce it .

These credits

can best lie served md investigated fro® some central point
better than from any border point of the territory.
The Secretary of A^rlcul turs:

There, afrain, ***• ’ cCord,

isn*t that an argument mainly for the strong district?
Mr. McCord:

I couldn't pay It was, booanao the credit must

be investigated, and I believe, I'r, Secretary, that this dis­
trict will balance itself largely when you hear ths balance of
ths report that I have.
The Secretary of Agriculture:

Well, in the second place,

would not the directors of the branches kno« intimately the
credit arising in the district?

Some gentlemen his suggested

that the directors of the reserve b m would not know the
credits arising over the district.
Mr. McCord:

I m frank to say that he is about right on

Ths Secretary of Agriculture:

Why should they know it any

better i f located at one plaoe rather than at another*

J . A. ' eCo rd

Mr. VcCord:


The cent: al location, Mr. Secretary, would be

easier and nsort accessible for getting information.
Ths Secretary of Agriculture;

The directoes of the reserve

bank are not local.
Hr. 1 cCord:

I understand that, Mr. Secretary, but the point

I make is this, it would be eaaier — we will take any section,
for instance j it would be easier for K»shville to get credit
fro* Kentucky, Tennessee &nd Berth Georgia than ot rest credit
in South Georgia and Florida.
The Secretary of Agriculture;

Bo , ou think the reserve bank

is going to be p*»rti «A in its operation?
Wr. McCord:

Hof I ds not.

The Secretary of Agriculture;

Than, why could you serve in

one esse better than th* other?

Vr. McCord;

I think branch banks will largely answer the

question of serving the territory —
The Secretary of the Treasury:
Mr. McCord:

And will solve the probles*?

Yes, sir.

The Secretary of the Treasury:

Thst was the purpose of ths

Mr. McCord:

Yes, will *olve that problem

The exportation

of cotton, to my knowledge, has restored nem al conditions la


two money panic*, vis:

A. McCord


in ld93 and in 1907.

The value* al­

ready Btatwd air* for th* crude product, hut w* must not loa*
t-i.;ht of the f ct that * constantly increasing proportion of
thie product i* being manufactured into y a m , cloth and other
needs of trade and commerce *i thin the territory suggested by
u* for thi* banking district.

The Stateof Korth Carolina man*

ufacturoe into

more bale* of cotton than grow*

on her soil.

vheee product*

Georgia manufacture* into y am and cloth one

third of her entire crop*
The state* nan d in t|il* territory, for which we a*k a
regional bank, manufacture th© following
• tatee, r is :

number of bale* by

Uorth Carolina, 076,000 — giving it in round

number; South Carolina, 775,000; Georgia, 64a,OOO; Alabama,

and Tenneesee 81 ,000.

United 3t*te* census.

The*e are figure* from the

For the State of Mississippi** hare

not the bnited Statu* cen*ue, but it i* reasonable to supposs
it *?ould be 100,000 bales,


Alabama msnufacturing 299,000

bale* on one side and Tennessee H I ,000 bales on the ether.
When thus miaiufactured, it is estimated to be eerth
2» cents per pound, equivalent to #125.00 per bale, or giving

b .o lal -njith of $547,000,000.00, in round numbers.

The fi­

nancing of these mills takes an enormous staouni of credit.



Tv e banka located in thi* territory have done * gr*mt deal of
thie; banks under ttate charters handling vast amounts of it*
The necessity of sioney and credit t© finance the crops of this
territory can host be illustrated by dividing the year on
Sept. let, when the movement of the main crop (thet ie, cot­
ton), commences*
The first demand the City banke here ie from interior
^enke for currency to etert the movement of the crop, thet ie,
in the purchase of advance bales, with which to get iaoney to
pay the lehorer for the pothering of the crop, and of the
cotton seed mill induetriee for money to buy the first cotton

the value of which product

is ueed in paying for pickin r

of the cotton; both of these come on the city banks about
Sept. 1st, and continue until the first of December, at *hich
time there is i l u l l , end then again starts up about Bee*
15th, running through to Jan. 1st*
Th* next demand we have for money is from ths cotton
mille and the cotton manufacturer, who begin to make their
loans about the middle of October, continuing to the first of

They want these loans April, May and Junu.

When we have supplied the country banks and the oil
mille, then cosss ths demand fro* the fertilissr menuf*


J . A* FcCord

4 X06


s t e r t i n ^ in * sa y , about th e f i r s t o f December, con tin u in g to
ths first of Pebruiaryj their request is for acooflssodetion
until June and July; #s have thus serred thssc isnedlate
Th^n, as they begin to turn ts us

coraencing with the country

ddTanees o & d «

banks p a y in g back

Xosns in October and Borsaber, ths oil mills wad

e h o lessle


i*ic h

throu*rh the susser
ro w in g p e r i o d


rs tu r n s


to rs-i n v e s t

c rcd it


u n til





p o ssib ly





f e r t il iz e r m anufacturers;

this other line of
I the


lo a n ed



our other





bo rro w ing


an d




th s dem and

th e M o vem ent



o f the

largely frsas


a g a in ,

crops i





the r e f e r s ,



The erops of ths Southeastern territory esTe red by


upon ts finance


country banks



c o iio a m llls,

saile d


coses from


Our greatest

sp rin g ,

th s


c o n t in u in g



sn d J u n e ,

b e n e fit o f

that is, the wholesale






banka movement for

w h o lesale m erchants

f&n &s




fo r

w h e ir


.manufacturers from ths middls of Je©u%ry until May
gives us money &nd



J. A. IfcCord

the states askec for this

re g io n % 1



s h o w &n

annual pro­

duction in d o l l * r e o f 1114 m il l io n s ; manufactured products

bll kind®, in this seme territory fo r th# steae period,

r*mount to 10 1 2 m illio n *.

These fig ures sh o w am ount of c r o p s

fend manufactures f o r the year 1 9 0 9 ,


and heve doubled in tea

I t might be added here that the banking i n t e r e s t s ,

coming *leng by the sid e o f these two great problems, these
great eoounts o f money, are about 9*15 m illions —

i s n 't i t ,

M r. Copper?
Mr. Copper:

Klrht hundred and f i f t y iiillio ns.


It rill,


therejftore, he seen that m ney and

credit in this Southeastern tsrritory is very equally balanced
between the crop movement sad that ©f the manufacturers.

It $ §

also shown ihefc this money is kept in constant use during ths
enti.e p erio d o f ths ye s r .

The admitting o f stats banks to

the reserve bank, and the liheralisinr of ths Istional ^ank
Act hy saotion 1 3 of the Federal Reserve Act, will materially


in the financing o f theee various products.
x om the preponderance of evi ence given above, and fur-

niehud by the other speakers, it is shown that s reserve bank
of sufficient c o i t a l would result from your selection of
Atlanta, and we believe that a great amriber of our larger stat t


A. I'cCord


banks will enter the eye tern as boon as the rules are pub­
lished, end

be location named.

The Secretary ©f the treasury;

We thank you very much, Mr.

Mr, Orr:

Is Mr* C. S. Barrett here?

the Secretary of th© Treasury:

Well, we will hear from Mr.

Brown for s moment.

The Secretaxy 0f the Treasury:

Mr. Breast* give your full

nmae, your oc e l a t io n and your residence.
Wr. Brown:

J. Epps Brown, Vice-President of the Southern

Bell S Telegraph Company and of the Cumberland Telephone &
Telegraph Company, residsnee, Atlsnta, Go.
The Seoretary of ths Treasury:

Kr. Brown, we desire to

know some thing about ths Ion# distance telephone facilities
of this region.

Whst sort of lines hsre you from here t©

Mr. Brown:

Hopper metallic lines.

Ths Secretary ©f the Treasury:
Washing ten?
Mr. Br©wn:


Havs you good service to

« . %tp« Brown

The Secretary of the Treaeury:


fan you talk to Baltiaore,

Philadelphia nnd Mew York also?
Hr. Brown:

Too, air.

The Sccrota&y of the Treeeury:

Good service to those


Mr. Bram:

Y e e t el r.

The Secretary of tho Treeeury:

Ho* is it to tho City of

Kew Orleans?
Hr. Brown:

FI rot 01*ai«

The Swcret&xy of tho Treeeury:
Mr. Brown:

First Cl m&.

Tho Secretary of Us* Treasury;

Mr. Brown:

To Mr*inghac^?

Fire* class.

The Secretary of the Treeeury:
*r* Brosnj

To Chattanooga?

First cleee.

The Secretary of the Treeeury;
Mr. Brown:

To Knoxille?

First d o e a.

The Secretary of the Treeeury:
Wr. Brown:

To Kaahville?

First elese.

The Secretary of the Treeeury:
Mr. Brown:

To Louisville?

To Jeckeonville?

First olaee.

Th© Secretary of the Treeeury:
trict thorou^ily?

You cover thie whole dis­

a io

J* £fc>ps Hr© m

V.rm Brown:

In feet, we cen telk to eny point fro* here to

Boston, Chicago, or way point t«et of the Mississippi Blver,

md usny points West of the Mississippi RiTar, to all points
in £ouisi*n&, Florids, ae for m Temps —

the «hole territory

is s net work of first d e s s long distance lines*
The Secretary of the Treasury:
Mr* Brown:

Yss, sir*

The Sucretery of the Treasury:
Mr, Brown:

Bo >ou reech Chicego?

And Cincinnati?

Yss, sir*

The Secretary of the Treeeury:

I s^en, «*ith ^ood effective

Mr* irown:

With efficient service*

We cannot, Mr*

le Adoo, with the lines of ths taericMi Telephone k Telegraph
Company *hich cover ths entirs United Ststes Ei»st of the
Bo cJq Mounteins?
The Secretary of ths Treasury:

I think it is only feir t©

say thst ss far ae W^ehinrtcn is

concerned, I expect to uss

your line tonight, end edviee you to be prstty csreful ss to
whet ycu say (laughter)*
Mr. Broen:

I f you «fill p em it » « , I will say that ths

weether just no w is plsying havoc with us,
ginning to


It is just be*

J .

Epps Brown

The Secretary of the Treasury:


How many wires hare you to

Vr. Brown:

Offhand I could not answer you that, sir, but

aaipie facilities to £anile all ths traffic.

In point of

fact, we have an internal organisation which studies care­
fully, frea month to month, the gross amount of traffic offer­
ed between points, whether they be short distance points or
long distance points, and facilities ars provided always in
ample time to cars fcr ths inorsase of that traffic, so ws
Oan handle the business vith the leaat amount of delay#

The Secretary of the Treasury:

Ho?s far do weather ccr^i-

j tlons impair the efficiency of the service?
Mr. Brown:

It is not so much a question of distance,

Ur* UcAaoc, as it is of the kina of weather com)itlens.

The Secretary of the Treasury:
Mr. Brown:

Atmospheric conditions?

Well, atmospheric conditions, only m sc far as

they involve electricity, electrical storms or electric atcrms,
cut a figure*

In other worde, on a cloudy day, you c ua talk

}uet as well as on a bright o un-shiny day, unless then* has
jbsen some electrical storm somewhere In the territory that has
put out of commission eo*s part of this circuit*

Just now

ws ars suffering from a slset storm Ik a}l direct lone.



J . Epps Brown


have just been getting reporte this afternoon, and under
thoss co ruU.ions, the linos arc completely broken do*n«
The Secretary of the Treasury:

But the normal service ia

Mr. Brown:

First Class.

Ths Coaptrollsr of ths Currency.

How long does it usually

take to get Washington?
Mr* Brown:

We have a can right here whose special Job it

is to look at tar those things and he could bset answer


The Secretary of the Treasury:

well, about how long would

you eay?
Mr. Brown:

I should eay ordinarily within 30 or 35 minutes.

Ths Secretary ef ths Treasury:
Mr. Brown:

It takss as long as that?

Ths greatest delay involved in handling long

distance aeesages is getting the party called and not in
getting in touch with our office at the other point .
The Sscretary of ths Trsaeury:

Ie it praotioable t© get

private wiree between Atlanta and Washington, or with
Mr. Brown:

We have through eervice.

Ths Beerstary of ths Trsasury:

In that ease, of courss.

J. fppe ?*rcwn


the call would be practically inetantansoust
Mr. Brown:

Wsll, ws get our connection with the other end

very promptly, but there are three offioss involves between
here ana Washington.
The Secretary of the Treasury:
Mr. n -own:

Fcr instance, thi

On a prorate wire?
office rings Charlotte,

Charlotte ringe Lynchburg and Lynchburg rin^s Washington.
The Secretary of the Treasury:
Mr. Brcwn:

Tou mean on a private wire?

Tee, of course, it ie net practicable fcr

tnie office to ring WaeMngton that distance.

If the party

called in Washington ie right at the telephone, or in the
fccuss, I seen, then vo get prompt connection.
The Secretary of the Treesurt:

I m epeaking of the tlae

required tc ring the bell in Washington.
Mr. Brorn:

I should sstlaats t?.o olnutss.

Ie I said,

though, who is more familiar with thet particular detail end
can glWe you the information «ore accurately.
The Secretary

f the Treasury:

rcu are epeaking, ef course,

of private lines when you say two oinutee?
Hr. Frown*

Tee, eir.

Tne 6aor*tary 0f tha T ra a a ry :

That 1 . a i l , tfc&nk you.

Hot., Mr. Orr, i think. In *taw of tba nunbar of .lt la a to Da

Kpps 8rc*n


hoard from and the number of other witnesses you have here
for Atlanta, who are going to speak upon subjects which we are
■ore or less familiar with in a way, that it will be bettsr for
thess witnesses to tils their briefs with the Comalttee, and
they will, of course, be given consideration at the proper
time* unless tnsre is certain particular matter you still
want to bring before the Committee, we should prefer rfor it
to take that courss*


It has been stated here that ws appear, as it wsrs,

without a friend, even at court, but ws have a witness hers
from J cksonville, F la ., Mr. Giles Wilson—
Th Secretary of ths Treasury:

I am afraid that same suggca­

tion has hsen mads tc us in every city ws havs visited.
will h^ar from Jaeksonvills, of course.


I w&s speaking of

ths A‘ lanta witnesses themselves — those lceal gsntls&en,
and will yon see that their briefs arefiled with the Com­
mittee so ws ®my considsr them?
Mr. Orr:

Tee, sir, I w ill.

Tne Secretary of the Treasury:
name and address to tbs reporter.


Mr. Wilson, give your full

G. L. Wilson

Mr. Wilson;

Oilee L. Wilson, Vice-Preeiient of the Florida

National Bank, Jacksonville,


The secretary o£ tha Treaeury:
Mr. Tileon:


What do you represent?

I as hare aa a delegate fro* the Jacksonville

Clearing Hcuae Association*
The Secretary of the Treaeury:

With authority from tfeea

to apeak for the Clearing Hcuae?
M*\ Wilaon*

Tea, air.

The Secretary of the Treasury?

How sany banka are &e*.bere

of tha Clearing House?
Mr, w i i a o n :


Tha Secretary ef the Treaaury:
Mr. wilacn:


The Secretary of the Treasury:
Mr. wxison:

How s&ny national oan*e?

And eight state banks?

yss sir*

Ths Secretary of the Tressury:

Mr. M leon , what are your


views on thle question?
Mr. Wilson:

The Clearing House Association rsfused to en-

dorse any particular City for a Regional Bank, but did axprees
a choice for a region or district within which they #ould ltluj
to be *5*mbers#
Federal Reserve Bank of St. __.............. ......

0. L. Wilson


The Secretary of the Treasury:
ideas about that*
fr. n i e o n :

We would like to bare your

Have you a sap?

I have not a a&p, but I have the outline

enclosed here and the resolution that was passed yesterday
afternoon sy the Clearing Houss, or day before yeeterday afte moon, I believe it was.

Thie is an outline of the district

hat naa 00m advooated by a number of banka on the North
Atlantis Coast up as far as Hlch&cnd, and it says that the
Jacieonvilie Clearing Association rscoasends to the organisa­
tion eoaaittee the adoption of the following region to be eerv*
on® of the regional reserve banks;

District of

Colusbia, Southern Weet Virginia, Virginia, Morth Carolina,
South Carolina, Eastern Tsnnsness, Eastern Kentucky,
Georgia , Florida* Ths ilovi resolution was unaniaously adopted
at a meetinr of the Jacksonville Clearing Association, Feb*
11th, 1014, at which every asaber bsak was reprssented*
The Secretary of the Treaeury:

Well, havs you any ldsa

|ae to what would be the first choics of jaeksonvills for
tas location of that reserve bank?
Mr. Wil«©n:
this seating,

We atteapted to arrive at that dsslsion at
lut were unable to do eo, there being a tie vets.


of the Treasury:

Well, what twe eltiss

G» 1*• ” llson

Mr, ril«*cn:


The cities of Atlanta and Savanr.&h for first

The Secretary of the Treasury:

What would be the second

choice, io you think?
Mr. Wilson:


The Secretary of the Treasury:

How ?ould you regard Wash­

Mr. wllson:

We *oul,l prefer Richmond.

The Secretary of the Treasury:

Well, would you consider

Washington the third choice, or the fourth?
Mr. 7ilson:

Hoj 1 think the Atlanta advocates would pre­

fer Hietmona second; would prefer Savannah or Atlanta first
and Hichaond second.
Ths oecrstary of the Treasury:

Would Washington he third,

you think?
Mr. Wilson:

That point hae never been discussed, but I

don't thina we would lock particularly with favor upon having
a regional bank in Washington.
The Peerstary of the Treasury:

What is the general course

of your trade and eom&sree?
Mr. n i e o n :

The greatest volur.e Is north and Kast —

Sortneast, along the Morth Atlantic seaboard, and ta^t is shy
Federal Reserve■ ■ of St. Louis

4 lid

0. L. Wilson

we designate thie particular region with which we would like
to be identified.
The Secretary of the Treaeury:

where 1c you keep ycur re-

•<* rvef

Mr. Wilson:

Chiefly in Hew fork and Philadelphia, and so&e

The Secretary cf the Treaeury:

What le the percentage that

you keep in Hew TcrkT
Mr. *iinon:

I «xpeet that ie probably 40jt of our total

reserve — in Mew York City.
Tbe secretary of the Treaeury:
Mr. ^ileon:

How aucfc in Philadelphia?

Perbape 35" *

The Secretary of Agriculture:

Are your relatione with

Philadelphia pretty intimate?
Mr. M l e o n :

The relatione of my particular bank are,

The Secretary ef ths Treaeury:

What ie the eenti*ent of

the City iteelf, so far as you have been able to aecertain
it, or have you sade any effort to aeeertalnT
Mr. Wlleon:

We have aade no concerted effort to aeoertain.

We at one tiae thoueht of putting in anapplicatlon fro»
Jacksonville to eecure a regional bank at Jaekeonvllie, but

A o a e little lnveetigatlon, we decided it would be ueeleee
! .« take up vour, time for a hearing, ae we did
Federal Reserve Bank of St. Louis

G. L. Wilson


not feel, fro* th* general course of eurrsnay or the present
course of trail*, that we ^ould have * reasonable hop* to ob­
tain it, so, *t our aesting day before yesterday, w* with­
drew any such possible, ana decided elasply t* recomend this
particular region In whiah *e would like to be included, but
we w*r* evenly divided a* to flr*t choice forthe City in that
regl n.

that region, however, include* all of th* citi*s

that are applying fro#* th* **aboard; ftlohaond, Atlanta and
Savannah, all throe of tho«« cities.
Th* Secretary of Agriculture:
received by several other cities#

Florida ha* been hoepitably
Kew Orleans included

Mr. Jilaon:
clonal nank.

Florida doss not want lew Orleans for a reThe trend and course of our trade* is not

Wsstward, and w* do not want to be in a region that *ould take
us Westward bayond the Mississippi River.
The Secretary of Agrieulture:

Louisvllls has also ineludsd



We dc *t want


The Secretary of Arrieul >ure:

*h&t w a* your main thought

in th* *ugg**tion of th* Atlantia Coaet line district?
Mr. Wilacn:

Bacauae tia* ia where the voluae of our bua-

G. L. Wilson


iness is translated; it ia where m know momt of the people
and soot of tlia peopls know us and we ara fsaillar with thsir
conditions and they ara familiar with ours, and aost of our
bua in a a a i a done with, through or by the®, or coas froa that

Tha Fecretary of Agriculture:

Did you have in alna a n y

thing about ths diversity of Industrlss in tha district?
Hr. Wilson:

We considered it ©oaswhat in this way, tbat

in ths region outlined in t is resolution, tliat would give us

national banks, capital stock and surplus, of about ons
hundred and five a lii ion dollars, the present national banks;
that would give us a good substantial regional bank which
would aaterially inorease by such number of state banks as
would join at present or later on.

Then the deposits fro®

all sources would also aakc a handsoae line of deposits, which
ws haws figured would aaply supply the credits and nseds of
that particular territory; a portion of the territory as out*
lined is a non-borrc* inf section, while o thef portion® are
heavy borrowing sections#

Taks Virginia, southern Vest

Virginia and a s a a U part of tastsra Kentucky and Eastern
Tsnnssass, ami largely ths state of Florida, are non-borrowing

sections of

that district.

Ths osavy borrowing parts ars

G. L* M le o n


Bor th Carolina, South Carolina, and Georgia*

la other worda,

trie 11 rat naaed atate would contribute aore capital to the
regional bank than their need, and the othet etatee nould put
in leea capital*
The Secretary of Agriculture:

*ould you ob^eot to inclu. ing

Maryland in that dietrict?
Mr* M le o n :

So, I don't think we would*

Tha Secretary of Agriculture:
The Secretary of the Treaeury:

* r . Filaon:

Row «ould you like Baltimore
In that oaee*

Baltimore, I expect, woulS b@ very daairable,

but Richmond ie nearer*
The Secretary of the Treaeury:

Suppoae you had a branch bank

in Atlanta, under thoee eiroumataneee, don*t you think you

woula be very well served thea?
Hr* Vi1 eon 2

I have been unable to get any information aa

to what the function© of the branchea are to be*
The Secretary of the Treasury:

te tried to explain that a

f©w momenta age*
Hr. Wilaon:

Well, I Juit arrived, after a ninotean-hcur

trip fros Jacksonville; I Juat got into the hall a few aosente ago, aad I d i . not hear, that, eir*

The Secretary of the Treaeury*

The Act make* it mandatory


L. ?ilscn


that the reserve banks in thw district shall establish branch
banks —
«r. Wilson:

Yes, sir, I know that.

The Secretary of the Treasury:

And that the branch banks

shall be. governed by a board of seven directors, possessing
the same qualification* as those of the Federal Reserve Bank

In fact, ths functions of this branch bank *ould

be governed by directors who are acre local to the ccasunity
ssrvsd than ths reserve bank itself would bs, because those
j directors would have to be drawn from the entire district, and
so long as the branches are provided with adequate facilities
to perform the functions for which they are designated, for
instanas, of currency and re-discount of papers —
Mr. Tilson:

And clearance checks?

The secretary of the Treasury:
os an


Clearance checks, which way

function, wouldn*t you get, in that cass,just

the sane fa cilities’
yr. * Ison:

If thcss functions wsrs attacred to the branch

banks, yes, and we hops that we sight have a branch in
Jaeksonvills, on those terms.
The Secretary of the Treasury:

The object of the law, of

course, is to relate thoss branch banks as intiaatsly as

G. L. ^ilaon


poesible In the entire dietrict to be served*

We do not

usually find a Pity that ie willing to accapt a branch b-na,
but we are always impressed with modesty*
Mr. rilson:

well, I will get in Jacksonville^ first ap­

plication now*
Ths Secretary of Agriculture:

We had in mind, rather

than thedistrict itself, the oourss of trade and ths strength
of the distrlstr
Mr* ^ilson:

That is, so far as our Clearing House Assocla-

ticn acted, Mr, Houston.

The individual banks, of course,

have thsir rersonal preferences, some of them very decided,
but as to ths Clearing House, we could set no other action
than the endorsement of a specific district in which we would
like to be included*
The Secretary of Agriculture:

Well, we probably have on

file the expression from the individual banke*
Mr* Wilson:

And hsrs is an expression from an indivi ual

bank right hsre, but it is pursly an individual s&prsseion
and not the Clearing House sxprssslon, signsd by ssven

We have sent in our expression alrsady, from ths

organisation there.
Richmond is second.

Wow, Atlanta is first choice and


.. .....

0 . L. wiisea

Tha Comptroller of the Currency:


I would like to ask

whether you think the banks in Florida would prefer to be
attached to a district to include the Carolina*# Maryland and
Virginia on one side, or whether they would prefer to be inI eluded in a district to include, say, Georgia, and Tennessee,
Kentucky, Alabama and Mississippi*
Mr. ?11son:

Ws would prefer ths Worth Atlantic territory,

Mr, Williams.
The Comptroller of the Currency:

Would you prefer that,

even though Atlanta might have ar gional reeenre bank?


poee you should have one district embracing Maryland,Virginia,
Worth and ?cuth Carolina, with a bank at Washing ton, and a dis­
trict embracing say, Kentucky, Tsnnesase, 0 orgia, Alabama
and Mississippi, with a bank in Atlanta, which you think
your banks would prefer to be included in?
Mr* Wilson:

Would you ekip the State of Georgia entirely

to put Florida with it , or couple a etrip of s^orgia to sake
it contiguous territory to get Florida from the CarolinaVirginia dietrict?
The Comptroller of the Currency:

That would bs skipping,

of courss,
Mr, Wilson:

Unleea you included a etrip of the coast.


0. L. M l*on


T *# Co*ptroli#r of th# Currency:

Assuming you #kip

8avannahj »imply attaching Florida to th# Carolina-Waryland
The £ecret&ry of th# Tr#a#ury:

In c it in g Georgia, of cour##?

T i# Coaptroll#r of th# Currency:
Mr. wiito r f

lo, not

inclu ing Georgia.

I believe — I aa #tatlrvf however, only »y

pereonal opinion — I believe in that oaae they *cuid prefer
perhap# to hav# Atlanta frith the regional bank, under too##
The Comptroller of the Currency:

You would rather have

Atlanta than to he with th# Carolina# and Maryland district?
vr. Wiieon:

I beli :ve they wculd.

Th# Comptroller of the Currency:

Suppose that other ai#-

trict should have Pichaond, would you pr#f#r Atlantal
Mr. ?il#on:

Atlanta or Richmond?

Th# Comptroller of th# Curr ncy:
Mr. vil#on:


I think you will probably find a pr#f#rsace #*-

pr##s#d for Atlanta, bocau## of it# nearne## to Florida.
Th# Secretary of the Treasury:
Mr. Vilaon.

That i# all, thank you,

Mow, Vr. Orr, ifyou have eo®# #*kibit# fend

u&en t#;y ou «ay offer th#a».
Mr. ^frt

w# hav# th### bound exhibit# — A. B. A C.




J. K. Orr


Tbs Secretary of

Mr, Orr:

the Treasury:

Wfeat do they represent?

Kndoree^ente received from over the terri tpr>

fro® Dtiiue and individual endorsements.
Tba Secretary of the Tre*«ury:

Tftey wero •o ile it « i, I prs.

Mr, orr:

^ s ll, ia4idsntally.

The Secretary of the Treaeury:

Veil, how do you m

lnc i ion tally,

te have heard that you are a visiting committee

trow. Atlanta,

*e uo not know whether that le incidental or


'r, Orr:

tel , in no e cases, it was incidental.

tr.e pa op a think so, tnyhov*

I mean,

These were solicited first by

a letter, a copy of which I think ie in here, and then only
three or four of the larger cities were vielted by me&bere
of the committee.
The 8 ere tary of the Treaeury:

Then you proM bly have the

answers to the letters and telegrams sent cut*

low, the com­

mittee will receive the^e exhibits in each instance, only Wiiere
the inquiry accompanies the answer.
Mr, Orr:

The compiler was instructed to do that and I as

j led to believe that tiuy are hare.
The Secretary of the Treasury:

If « • see they are there,

------ 1

m T ^ w .m m W k - ~


then we will receive them.

I&g it i uniform la t t e r addrea aed

to all of thaa?

Ye.*, a i r .

Mr. O r r :

Tha Secretary of the Treasury:

W&e thara any aubae^uent so­

licitation whan an taivtr did not ceae diractly?

You e e e , the

value of tha ie exhibits dapcn.4« entirely upon our buying tha
full story.



Thara was f i r a t aent out a general

a ir.

latter a i i r l y asking tha banks to ^oin tha s y s t e a .
lo llo p e d by anothar l a t t e r ,
thmm i f

thay jo in e d

That was

eigned by our committee, aeking

tha system, ws would be vary glad tc have

think o f us in thair prayers*

j tha& k in d ly

Tha S e c r e ta ry of tha T rea su ry :

W all,

you h,.tra copias of a ll

thaaa things?
Mr. O r r .

Thaaa s o li c it a t io n s ars in hare with

fhs Secretary of the Treasury:
i auppcae you c a l l
M r. O r r :


th aa ,
a ir,

tha answers.

Tha various tickler*. I

that you aant out?
aoet o f our members are p r o h ib it io n is t s .

Tha S e creta ry o f tha T rea su ry :

W e ll, ws w i l l l e t them be

Mr. O r r :


' Ind

I w i l l say that me expect
tha b r ie f e of a l l

te prepare in booke

the p a r t ie s which each a e a b e r ’ s

J. K. Orr


nai* printed upon the book, eo you will have the* ae fleaeant
The Secretary of the Treasury:

We thank you, but «e do

not ne@d to have the muses of the aeabsrs to carry away a
pleasant souvenir of Atlanta*
as an additional evldense*

However, we will taits the*
1 way say further th*t U ,

between thie ani the first of March, Atlanta develope any
additional fasts which you wish to have oonsidsrsd, you a ay
fils thsa with ths Co&mlttes at Washington nsnd they will be
The Secretary of the Treaeury:
hear froa Chattanooga, next*

Chattanooga, Tsnn*, ws will

Who will be heard?

P ?A ?FV rWT or IffTWFLL S A I I B ^ .
Trie Secretary of the Treasury:

Give your na&e to the re­

porter, Senator*
Mr* Sanders:

Iswell Sanders, Chattanooga, Tenn*, Chainaan

of joint ccmp.ittee of Chattanooga Clearing House Aeeociation,
Chattanooga Chamber of Coamsrcs and Chattanooga Manufacturers*
Ass elation*
Ths Secretary of the Treaeury:

Senator, you know the prob-

lea here; we will be glad to have you present the viewe of


I* Sanders

Chattanooga on this subject*
Mr. Sanders:

toll, gsntleaen, I •imply wish to say that

tho Chattanooga delegation wishes to prssent to you a district
In which they would like to live and do business, and ws rould
present that as a district with varied industries, and produc­
tions and also a district with mall facilities necessary for
ths proper conduct of business*

We will ask to havs a brief

rsad to youmhlch Is short, but which ws think covers the

It will then be followed by some elaboration, per­

haps, or by one of our hankers, and also by one of our other

Vs have not sought any endorsement from any

other city, but we wish to present this matter in rather
a different way free what it • * « • • ether citiss havs pursued*
is wish, as I hsvs statsd, to pressnt a district, and then
we will ask you to conoidsr Chattanooga as a proper place for
a bank for that district, or any other district that nay bs
out out in the central south*

Vow, with your permission, we

w ill ask ths Secretary of our committse to read the brief, —

j Hr. Cantrell.
The Seeretary oX the Treaeury:

1 do not

b * s4

ea lntrodue-


J. B. Cantrell

tion to Hr. Cantrell*
of Chattanooga*


We used to fiffct each other at the bar

Tour full naae for the record, to the re­

porter, Mr* Cantrell*
Mr* Cantrell:

John 6* Cantrell*

Chattanooga, Tenn*

X ar an attorney at

I have aeelated the joint coaaitnee

of tne Chattanooga Clearing Houae Association, Chattanooga
Chaaber of Commerce and Chattanooga Manufacturers* Aae ela­
tion in outlining eome of their eucgeetione on thie a object
as to a district and ao to the cl ixe of Chattanooga*
Tho Beoretary cf the Treaeury:

Have you a »&j>, Mr*

Mr. Cantrell:

We have a sap and a special brief, but we

did not expect to be heard thie afternoon and Mr* Boekine,
one of our weejbers, hae gone for thsa*

w« expected to be

heard about 10 o* clock in the E o m ln f*
The Secretary of the Treaeury:

Well, jus* proceed with your

briefs sad the sap aay be sabalt‘ ed as soonae it cose#*
Mr, Cantrell:

I have s brief which I *111 follow very

cloaely, which le signed by the Chains an of our joint coasittee of theee associations, by Mr. Basksns, Preeldent of
Cnattanooga Clearing, Houae Asaoclation, by Paul J* Kruesi,
Preil ent Chattanooga Chamber of Coaserce, M. E. Teaple,


J . H* Cantrell


j ?r«iident Chattanooga Manufacturers' Association, Frank A*
lelaon, Manager Gla ring House Association, and myself as

I will say that we have some figures in ths brief,

but we also have some tabulated statistics that ars net here*
T,iese figures were compiled by Mr, Kelson, the Manager of our
Clearing House Association, who m s unable te be here*
Hr. Ran ers:

He *111 be here in ths som lng, however*

The Secretary of the Treasury:
Mr. Cantrell:

Well, they may be filed*

They will bs filed*

Daitting the address

and heading, it is in the form of a brief, We have a heading
here — in the matter of the location ef a Federal reserve
ban* for the suggested district or terrltory,s$bracing South­
ern Ohio, Kentucky, Tennessee, Western Worth Carolina,Georgia,
Florida, Alabama, Mississippi and that part of Louisiana ;
East of the Mississippi River, or any district embracing
Central south*
The Secretary of Agriculture:
Mr. Cantrell:

Read that again, please

Ths suggested district embraces Southsm

Ohio, Kentucky, Tenneasss, Western Worth Carolina, osorgla,
Florida, Alabama, Mississippi and that part of Louisiana lying
East of ths Mississippi River, or any district Embracing ths
central south*


J , H, Cantrell

Tha Secretary of tha Treesury:


You taka the *hole of



Ur, Cantrell:

Tea air#

low, on the aub^ect of reserve die-

trlota, we eay ( resting) ; we aeeume that neeaaaity the firat
task of the committee—
The Secretary of the Treaeury:

The assumption on which you

proceeded with the laying out o£ the dietrict prcvidee for how
•any dietricte?
Mr, Cantrell:


We have a echeme of the whole United

IStates in which our cone: it tee concurred (reading).

We sc sues

that neocesarily the first task or the cosssittee, after these
hearings are over, will be the determination of the geograph­
ical« of the reeerve districts, a© as to best e e r v e the
people of the entire country, that th# federal reserve cities
will then be respectively located eo ss to best serve the intereata of the people ef the reepectivc dietricte.
We sesuxe further that, in ourlining the reserve dis­
tricts, ths location and ne^ds of the lsrgsr center of population r ill have to be considersd, but thst, after the aietricts are ones outlinsd, the particular city

will be

designated as the reeerve city for any particular dietrict
| will

be tha particular city rhiofc la moat apeedlly


J* B. Cantrell


and conveniently asssssibls to tbat entire district* At the
regional reserve bank in any particular district will have
the eaes amount of capital ana ths suae deposits, in wnatever city it aay fe located, it follows that the question of
accessibility to ita particular district will bs ths primary
question in date raining ths location of each reserve city*
This being so, ws think it *111 appear that Chattanooga is
ths aost logical and aost eonvsnlsnt location for ths reserve
bank for ths above suggested district which would embrace
tee territory th«*t I have noised above,

Anti, *hsn the noodo

of this section, in corrnec tion with ths re^uircaents of ths
sn irs country, ars considersd, ws bslieve it *ill bs found
advioabls and highly advantageous to fix the geographical H a ­
lts of one district substantially as here indicated*
ths eight su&gestsd districts are as follows:


baasd on shat

to be the concensus of opinion of businsss oen through­

out ths country, and upon the facts brought cut at the various
hsarings which have ba n giv n by your coar.lttsc, ws aseuas
that the country should at present bs dlvidsd into eight re­
serve districts, which should bs designated and outlined ap­
prox mate ly aa follower

Rsserve City: 8 os ton*
Maine, few Haapahire, Vermont, Masos-


J . H. Cantrell


ciiu-etls, Rhode Island and Worthsrn Connecticut.

Reserve C ty:

Hew Tor*.


Southern Connecticut, Rev York, New

Jersey and Wortnera Pennsylvania.

Rsscrvc City:

Baltlscre, Washington or Richmond.

Southern Pennsylvania, Deleware, Marylana,

District of Colusbia, Virginia, West Virginia, »1441e and
Fast^m North Carolina ani Kiddle and Eastern «outh Carolina.

Ressrvs City:



Michigan, Wisconsin, Minnesota, SerU-

s m Ohio, Middle and northern Indiana, Middle and Northern
Illinois and Iowa.

Peserve Cl yi


Southern Ohio, Kentucky, Yennssase, Wes­

tern forth Carolina, Georgia, Florida, Alabama, Mississippi
and that part of Louisiana ;ytng Eaet of ths Mississippi

Reserve City:

fit. Louis or Kansas City.

Southern Indiana, Southern Illinois, Mis­

souri, Arkansas, all of the Louisiana West of the Mississippi I
Rlvsr, Texas, Oklahoma and Kansas.

Reserve City:



J . H« Cin tro li


Nebraska, Srth Dakota, South Dakota,

Montana, Colorado, Bow Mexico, Arizona, Utaii, Wyoaing and

Heserve City:

San Francisco.

District: California, llevada, Dragon, taehingtonf
ion, we have tho national bank capital and surplus of said
eight districts as above outlined, and the capital of the rs~
serve banks in tbs respective districts would bs approxl*ats»
ly as follows.
The Seeretary of the Treasury:

tsll, five us only ths

Chattanooga district — the proposed district.

You need

not five us the others.

Mr. ran trail:

The Chattanooga district, that is, the & U

district, would havs t1 4 3 ,3fc1,000.00 of capital and surplus,
national banks, and t 9 ,5 3 5 ,660 ressrvs bank capital.
The Comptroller of the Currency:

That is only ths national

Mr. Cantrsli:

Yes, elr.

The Secretary of the Treasury:

that would bs the rsservs

of the reserve bank — what ressrvs would it bold!

Hsve you

got those flgurss?
Mr. Cantrell:


I believe 1 havs ths® in ths tab Is that

J . H . Cantrell

we did not got hero*


Ve have given aoro particular stu i$ to

the eeotlon of the country Fast of the Miseisaippi Hiver, to*
| gsther *i th what n i e s to he the settled trend ef opinicn in

I that territory as to what would be the most practicable di­
vision of the saae into Federal Heserve districts, and we
are convinced that *n approxlaate divlelon as abov


w ill give the best poeelble results and will bs eminently fair
and just to

11 ths people affected.

the fifth dietrict, it outlined as abovs indicated,
would be ideal, in location, else, population, and divereity

of products*, and would fum leh a siost admirable coablnation
of practically all the elements ooncededly desirable in the
formation of a reeerve district*
It would ransonlss with ths other districts which sess to
be necessary for the acccMsaiodation of the Eastern, northern

sad Middle West section* of the country, snd would be of
average else.
It would include the great ®anufacturlng and trade center*
and great grain and stock producing ssctions of Southern Ohio
and Rorthsm Ksntucky, the great wining, aanufaeturing and
agricultural Industries of Southern Kentucky, eaetem Ten­
nessee, Western forth Carolina, lorth Carolina, and Ncrth


J . H . Cantrell

Alabama, the great tobacco and stock raising sec ion of
Kentucky and Kiddle Tennsssss, the vast cotton fields of
Georgia, Alabasa, Mississippi and W sstsm Tsnnsssss,


sub-tropleal fruits and products of Florida and F&stem
Louisiana, and the grsat coa ercisl and trade interests of
Msw Orleans on the South as a balanos to the like intsrests

of Cinelnnatl os the northern sad of ths proposed district*
And yst, with all this almost unlimited varisty of products
maturing at various seasons of ths year and giving assur^nos
that, within such d istric t, ths re would be a steady and uni­

form demand on the ressrvs banks for sonsy throughout tbs
ysar, by locating such rsssrvs bank at ths bast and most aces ssibls railroad centsr in ths osntral section of t. < ilstr-ct,
svsry important and material part of ths territory coula oe
reached by s a i l depositsd after the closs o£ ba king hcurs
ons day and rsceived at ite destination at cr before thu
binning of b nking hours ths ns*t day.


This ^ ill bs show

mors in detail on the sap of the said propossd fift h dis­
trict and adjacent territory which will be presented with this
b r ie f.
the Secrstary of the Trsssury:

Instead of rsadlng your

b r isf in sxtanse, ws havs it hsre already for consideration,


J . H. Cantrell


euppoa* you juet eu?~arl»e the point* briefly .

Mr. Can trail:
Chat tanor fa*

Fall, wa aake four points in favor of

Firet, tbat it ia an actual and natural gate­

way between iorth and south and Eaat and Weet, and would be
the place, for the bunk in thie dietrict.
The Secretary of the Treasury:

On tha queetion of accee-

eibility and railroed traneportation facilitiee generally,
*e do not need any light, beeauee we are all aery f&eiliar
with that*
Mr. Cantrell:

The second point ie that nine linea of rail-

roa« canter at Chattanooga.
The Secretary of the Treaeury:

Tou eee, the reading of fig-

uree ie not of value, beeauee you cannot carry thes in your

The point ia to gat then in the record.

Mr. Cantrall:

Our third point 1 . i t . aceoaaiblUty. That

ie .hewn in det&il b a r ..

It ia the headquarter. of the south-

• m Kxpreaa Company, which ia practical evidence. We have a
letter here fro* the Vioe-Preeident of that company givlnf the
roaeone why they loeated there.
T*»e Secretary of the Treaeury:

te ll, that ia in tha re-

I cor<i» we will conaider that.
Mr. Cantrell:

Slowing that they located there, that t ay



J* H. Cantrsll.

originally bad two headquarter* —
Ths Secretary of the Treaeury:

Well, that r latee eoiely

to tfie queetion of aoceeelblllty and treneportation facilities.
Mr, Cantrell: And then we ehow that the Interstate Cocaerce
Coaifiieelcn hae recently — that ie, In October, 1913, located
ite headquarter® there for the valuation of common oarriere
in the nine eta tee of Ohio, Indiana,—
The Seeretary of the Treaeury:

fe ll, that le about the ease

territory you gave?
Mr, Cantrell:

Very aucl

the ease territory.

The Secretary ef the Treaeury:

lev, the bueineee of the dis­

trict ie a very vital queetion.
Xr, Cantrell:

well, the next point, you will notice here,

shows that Chattanooga le the bueineee equator of the dietriet $ that

le, about the center Worth and South; and we have

here the value of far® producte north cf Chattanooga and
eouth of Chattanooga, the annual far* producte* the manu­
factured prouucts, the national banking capital and the nation­
al bankdspoeits, on each side of the line, wits Chattanooga
alsost in the center.

Thie was figured as carefully as 9 0 cel

ble by Mr, Me1eon, the Manager of the Clearing House Associa­

He sent over it and corrected the flguree as such as

J . R. Cantrell


possible, and they will probably be in the appendix that we
will have for the brief*

then the next point ie that chatta»

no of a ie no re accessible than any other city of the Central
South to regional banks which say bs located in other reservs

I f rsssrve banks should bs located at Memphis,

Chicago, St, Louis, Kansas City, or anywhere north or west,
ws eould communicate with thoss other regional reserve banks
quicker from Chattanooga then any other plase that would be
| a suitable location in this tsrritory that vs suggest, or in
any territory including the Central truth.
The Secretary of ths Treasury: low, ars you prepared to speak
upon ths cat ter of bank features or problsms that we have asksd ths other cities about?
Mr, Cantrell:

I sm not*

I havs simply put in shaps the

iusas of thie committee*
the Secretary of the Treasury:
Mr* Cantrell:

■# \
Ths general features?

Tss s i r ,— ourlined as agrsed upon and sug-

gsstsd by msmbers of this Joint committee, representing the
ideas of the Clearing Rouse Association, the Chamber of Com­
merce and the Manufacturers* Association of Chattanooga, Vs
show other advantagss in favor of Chattanooga, but they ars
msrsly argu tentative*





..... ............ - ..... ..... .......................

J. F. Cantrell.

The 8ooretary of the Treasury:



We thank you, Hr* Cantrell*

We will have the next wltneee.

fi e Secretary of the Treaeury :

Tour naae and occupation foi

the reccrd, Mr, Preeton.
Mr, °reeton:

T. F, Preston, Banker.

The Secretary of the Treaeury:
Mr. Freeton:

What bank?

President ot the Hamilton Sational Bank and

also of th. haailton Tru.t and Savin*. bank.
The Secretary of the Treaeury:

Are you an officer of the

Clearing House?
r. Preeton:

Wo, not an offioer, but I repreeent, in a way,

the Clearing Houee at Chattanooga.
The Secretary of the Treaeury:

Tou are authorised to speak

for the Clearing House?
Mr. Preston:

Tee, sir.

The Secretary of the Treaeury:

How a any banks are there

in the Clearing Houee Aeeociationt
Mr. Preeton:

Fivej three national and two etatej th*t ie,

that ara active aesbere.
The Secretary of tke Treaeury:

How *any outside,

? • H. Preston

Mr. Preeton:


I think flwe or six outside. All of then have

clearing houea privilege#,
Tfte **cre tary of ths Treaeury:

Are there any national hanks

outside jOf the Clearing Hcuee in Chattanooga?
¥r. Free ton:

Ho, sir; they are all inside.

T&e Secretary of the Treasury:

You eay proceed to supple-

*ent your brief with any additional light you ean give ue.


We are particularly anxious to be located in

a strong district.

*e have given more attention to the die­

trict, and '# felt that wfien ths district was lcctaed, the


City that would be designated for thle reserve bank would bs
merely Incidental.

We want a territory that Is as far as

poesibit self-euataininy.
illustrated by an analyeis

The trend of our busl ess le best
of one day* a business, which 1 will

give very briefly, of a fsw cf ths larger banks of Chattanooga*
On Fsb.

th, the First watlonal Bank handled, in foreign lt««fc,

t3 ?4,OOC.0 0 . Of that, 54* was within this d i s t r i c t ;! ^
on tne state of Tsnnssese— that is, outside of Chattanooga,
appro*laately 17^ on Georgia and approximately ten on
Alabama; the other in varloue points,

fow, about 4 0

of that

*as outsids of this territory, largely on the City of Hew York,
®ut we havs great difficulty in Chattanooga and always keep

T* F. Praaton

S.w Tork I*o-


i f «e had all our reserve In lew Tcrk,

it tould •'« aoon in denande for exchange and eoattered

or or the country.
Tne r oretary of th. Treaeury:

la that b.oau.e New Tork

exchange paasea at par aore freely than an* other azchar.get

Ur. Proston:

Tea, sir.

Tra Secretary of tl*a Traaaury:

you have it for th&t

purpoaa «or« particularly*
Mr. Praaton:

Tea air.

Th. Secretary of the Treaeury:

Tith the parring of .xchange

between these re.enra bank, that altuatlon would be entirely
Mr. Praaton:


The Secretary of the Treasury:

you would Juat ae eoon have

a check on one .action of the country aa another?
*i*. Preeton:

If it le parred. Sow, thie repre.ente I t . . .

that we have collected In the City of Chattanooga and In a
radlue of about 50 nliee,

it doee not Include the collectlone

on large city banke away from there.

An aaalyels of the

oi.elneee of the Hamilton national Bank to eose extent eh owe
the ease thing, except that It la hardly a. aucfc in detail aa
‘ hat.

It .'ow e *388,-00.00 that day, #13,000 of lteae on



T. ft. Preston


Georgia and about a Ilka aaount on Alabama,

fa tmX teat

on account of tha trend of our business being from the south
to tha Horth and East, that ws ought not to include altogether
a Southern territory.
The Secretary of the Treaeury: Von, how nuch of Ohio did you
Incorporate in thie dietrict — the whole of the state?
Mr. Preaton:

Ho, air, only about half of the etate of

The Secretary of the Treaeury:
Mr. Prea ton:

Mo air, I think only about half of the state.

The Secretary of the Treaeury:
Mr. Preston:

Did you take in Coluabue?

How such of Indiana?

lone of Indiana.

Tha Secretary of the Treasury*

You Included Lcuietille and

Cincinnati both?
Mr. Preaton:

Yes, s ir.

Ths Secretary of the Treaeury:

there ia the trend of ycur

Mr. Preaton:

It is towards Cincinnati, going lorth.


haws a grs-t deal of business, however, towarda Atlanta, — to*
warda Georgia.
The Secretary of the Treasury:
Cincinnati than Atlanta?

Is sore of it towarda

T. P. Preston


Mr. Preston:



Z am inclined to think it is, yes, sir.

Tno Secretary of the Treasury:

How is it towards the East,

towards Richmond, Washington and Baltimore?
Mr. Preston:

We have no connection of any consequence with

Richmond; very little with Baltimore and Washington.
Ths Secretary of the Treasury:
Mr. ^rsston:

How is it with Louisville?

Very little with Louisvllls.

The Secretary of the Treasury :

Where do you keep your re*

serve new?
* Mr. Pres tor.: Principally In lew York and Cincinnati.
rhe Secretary of the Treasury:


How xumh in each?

Mr. Preston: I should think, speaking for the banks as
a whole, 50* probably in lew York and the rest scattered.
The Secretary rf the Treasury:
Mr. Prsstcn:

How muoh in Cincinnati?

Probably ten or twenty per cent; a very little

in Louisvllls and a little in St. Louis and a little In Baltimore.
The Secretary of the Treasury:

Well, what would be your

choice outside of Chattanooga 00 ycur first choice outside of
Hr. Preeton:


«oul,i be—

The Seeretary of the Treaeury:

In this district, as you hav*


T. H. Preeton


laid it out*
Mr. Preston:

Speaking for ths Clearing House, I think

they are about equally divided between Atlanta and Cincin­
nati .

Either point would serve us acceptably*

The 8ecr«tary of the Treasury*

Ifow, suppose it were

Atlanta, what is tbs drift cf business fro* Cincinnati to
%lr* Pr8»ton:

Well, I coulin*t answer th*t definitely.

There is a good deal of business be ween the two points, j
j should think.
The Secretary of the Treasury*

Wculd it be doing great vio-

lsnce to ths ncraal course ef trade and ths courss of general
financial business tc rcvsrss that •ovementt
M . Preston:

>ss, it would — if you reverse it.

The S«icrotary of the Trsasury:

You prsfer Cincinnati, you

think, fir s t, and Atlantaeccond?
Mr. Prsston:

*e ll, i think our Clearing Houee is about

equally divided.

Ify personal preference would be Cincinnati

first and j tlanta second.
Ths Secretary of ths Trsasury:

You do not want te be put

with Louisville at all?
Mr. Preston:

fo eir, we do not want to be connected with

T .


R .


Louisville at all*
The Secretary of the Treaeury: Why not?
¥r. Preston:

Wall, t e trend of our buelneee ie not that

We have very l i t l e in common with Loulevllle.

Tfte Seoret ry of the Treaeury:

Would you not get Juet ae

good fa c ilities , though, in thie district ae you aavs laid
it out, with the reserve bank at Louieville ae at Cincinnati?
Mr. Free ton:

Possibly eo.

The Secretary of the Treaeury:

As you have eta ted in your

argua&tn, however, it ie not so auoh the location of the bank
l t « l f , but the district is t^e crucial point?
¥r# Preeton:


Prooeibly we would get Juet ae gocd ser­

vice *1 th Louisville as Cincinnati, through the trend of our
buslnsss is not in that direction.
The Secretary


the Treaeury:

Tou r*ay proceed.

I inter­

rupted you.
Mr. Preeton:

Another reason why we laid out thie particular

territory is that ws know the credit conditions eoaewhat
in tn .t territory, for inetance, St. Louis, St. Louis*s

or na it ions might bs equal, better or worse, but we do not know
that. We believe that with branchee located at different


T. K. Preeton

4 X 4 8

• action*, it le not *c auch Importance where the central
bank 1* located — I Bean, the regional bank.
The Feer«tary of the Treaeury:

Suppose it wae sc related

to the eaatem dietrict— I aean thie Atlantic coaet dletriot,

Soae euggeetion hae been a ada here, I think from the

Florida people, ae tc a dietrict of the Carolina*, Virginia
and Maryland and perhape the District of Columbia; that would
be your choiee then aa to the reeerve city?
Mr. Free ton:

* e l l , either Washington or Bal iaore, under

thoee condition*.
The Secretary of the Treaeury:

Tcu would wfer that to


Hr* Preeton:

Tea sir, we have no railroad connection, no

through connection with Richmond.

We have little in coaron

witt Richmond.
The Secretary of the Treaeury: Would that do violence to the
no real trend of thinge tc be related to waehington or Balti­
Hr. Preston:

Well, I don*t hardly think you could put it

that etrong, but it vould be out of our no real course, in a
The Secretary of the Treaeury:

Tou consider it aucH prof era-

T . R. preeton


ole to go to Cincinnati; the time is vary much the aarsc, la
it not?
Mr. Preeton:

Somewhat tha aaae.

Our itaaa leaving Chatta­

nooga thie afternoon would ha in Cincinnati for clearance to­
morrow aoming*
The Secretary of the Treaeury:

ae to Baltimore, or not?

Do you know whether that ie

.It would he a little longer to

Baltimore, would it?
Mr. Preeton:

A little longer. Of couree money ie artifi­

cial to Mte extent, accumulating in the center*•

S t ill, we

would like to have Cincinnati ae tbat centere in thie die­
The Secretary of the Treasury:

You think that the lending

end would add etrength?
Mr. Preeton:

I do, yee, air..

The Secretary of Agriculture:

What ie your objection to

the dietrict that $ tlanta euggeete — I believe It include a
#r. Praaton:

Well, X don* t believe it ie ae etrong a die­

trict ae the one tfiat our committee hae outlined.

I don»t

believe it would fit in with the reet of the territory, eo
I acceptably.

______ _______ „


Tm H* ?ro«ton


Ths Secretary o f th® Tr«a®ury:

0© you hair®

m map, no®,

which sttows the dlTleioa of the entire country into dietrloteT
sir. Preeton:

Ko e ir , but we heve a liet in the hrlef.

The Secretary of the Secretary:

But you did not keep a nap

of it?
Hr. Prea*.ont

No eir.

We didn't know the trend of

buelneee in aoae eeotlone. hut our ooeeltUe epent e great
aeal of tiae la getting “P what they thoufht would be eight

acceptable dieleione of the Dnlted Sfctee, and naaed the fifth
one me Chattanooga aa being about the con ter J juet about
J.uch oueineea

Borth of the line, uelng that aa the equator,

ae there la 8outh.
T a Secretary of Agriculture:

Tou think you would got t

better balanced •elf-euetaining dletrlot Borth and south, than
Eaet and WeetT
■r. Preeton:

That la the way we feel about It. That would

be true in thie aection.

I don't know ae to eoae other.

of the eueceae in the else of our reeerte bank would de­

pend upon the Clearing Houae functione we thought would be
p a r fo n e d by thie regional ban .

I thlak a great aaay of

the etate banka want to eoae in , but they are luet waiting to


T.B .Presto n

* * • the practical side of it,


but they *ill cca« into it, a

very largo percentage of the*,
Th« £scret«*ry of Agriculture:

What is your lac


that —

ths lac of your etate?

Ur. Preston:

A state bank can coas in.

The reeervee cf

our stats banks in Tennssses ars about squal tc thcas of our
national banks*
Tiit Secretary cf Agriculture:

la ths s eny affirmative

provlelcn in the law?
Ths Secretary of the Treasury:

The Attorney General has

rendered an opinion on that question.
Mr. ?re»eon:

Tee sir, hs has rendered an opinion on that.

The 8screi*»r> of the Treasury:

Ur, Prwst n,

Tou h#«ri th® questions,

that eere adireesed to to* Atlanta Clc«irir.c Houeel

Hr. Preeton:

Yss sir;

Th* Secret^ry of ths Treasury:

We wculA liks for you*


cencidsr thsa as addrssesd to ths Ohuttanoog 0 1 sarin* loucc
*lac and th* reporter will &ivs you copies of those questions

iike to hare a brief froa you at ths earliset possi-

bit »oa#r.t, by the first cf larch# if possible. If you carrot
c%a»lctc it by that tias, then 1 st it ccae in ae soon after
th *t ae f*\ 0 *4. #


T.B. Preston




?s will os very glad to do so.

The Comptroller of the Currency:

May I inquire who else

recosaonds thie particular district bssidee th# bank# of

Mr. Preston:

The Chaeosr of Cerasrce, which represents —

The C
cti»ptroll er cf the Currency:

I eean to eay, cuts ids

of Chattanooga itself.
Mr. Preston:

Well, I don't knew taat m

Ie have not solicited these things.

one in particular
I presuae ws

could havs goiter* s great a*ny, if we hnd solicited thea.
The Coup roller of the Currency:

Have you any reason to

think this wtuld bs an ac sptable district to any of the
other iaportant citiss of this district!
Mr. Preeton:

Ts&, answsring only frca the general trend of

trade, ws are inclined to think that it wtuld bs acceptable
to a great irony of then.
Ths Comptroller of the Currercy:

Which of thea, do you

Mr. Preeton:

Take Vashvllle, Knoxville and Atlanta.


Just stated, I dcnft think Birairghaa would ©bs objection­

Bireirhair wruld net be objectionable to us».




fb© Ct ff>ptroll©r of tb© Curr©roy:
• M d CiUfll

Wow How About Wulowlllo


Mr. ?r*etc«:
do not

m i

Those larg.r oltlee, aelde frwt their pride,

.h y they ehould object.

the Cce.ptroller of the Curr«r.cys

But ycu have r.© re** on to

tbink tfc«y would prtfir tbatt
Mr. Priiton:

Worn wb&t#v«r.

Tl * s*«rotary ©f tfe© Troaoury:

Tcu or* opoafcl/.f of t&o

district it«©lf# and net •© *uoh the location of tb© r©««rv©

T^u ©iaply mggoot that tfai© priaarlly i» a *©od

Mr. °r«»tonj

f« «uM ©*t It an * good district.

8oorotary of th© fro* wry:

Ai d tbor. you would Ilk© to

j oo* Quitffenocga haw© It?
Mr. ^rootons Y*s©, ©ir.
Hi® $oorotary of tb© Tr©a ury:

But hou or© willing it

•feouid fe put wb*r«y©r th* no«d© ©f tb© district ©©mid
[ boot b© ©©rvodt
• P r,,to n :

T*«. of c cu r..,

if the henk le to be located

J 1*; . >«n«v center, of stttfee, Ch&ttaaccg* d . . « not .tend .
.h o », out 1 1 the o . of th. territory 1 . to he coneldered, we think It doee.


T .R . ?ra ton

Tha Sacratary of thaTraasurv:


Don't you think, Ur.

Praaton, with tha a atab 1 lain, u nt of branch banka at thaaa Im­

portant points in thaaa diatrlcta, that tha ayatan itaelf couJft
ba ao im i«*taiy r e U t id that you could gat axcallant aarvica whathar thia raaarva bank ia in ona co uunity or anothar?
Mr, Praaton:

I do.

Tha 8a ora tary of tha Traa ury:

Wa thar.k yov, Mr. Praaton.

It ia no# half paat five, and unlaaa you gai.tiaaan fro*
Chattcocga hara want to gat away tonight, wa will adjourn
until tea; orrow and raauaa o Chattanooga in tha aorning, but
*e will ayit yoi- convanianca.
Mr. Watkina:

I would prafar that, ao far a» I at concarnad

Tha S«crat*ry of tha Traaaury:

Wa don’ t war,t to hold

tha Chattanooga dalagation hara, if youdaaira tc ba raliavad.
»Mr. Watkina:

I vouftd prafar to ba haard in tha aorning.

The Sacratary of tha Treasury:

Thar., wa will adjourn until

toaorrcw aom irg at 10 o4olock.
Wharaupon, at Si3C o'clock P .M ., tho coaaittaa took a

r%ceaa until toaorrow aorning, Fab. 14, 1S14, at 10:00

£• Watkins



Atlanta, Ga., Saturday, Fsb. 14, lb14,

Th# Ccasittes met, pursuant tc adjournment,
at 1 0 SCO o’ clock A. k.


Th# S#cr#tary cf th# Tr#aeury: Mr. Watkirs, w# will h#ar
fro* you now*
Mr, Bar i#r#:

The Ccaaitt## will r#call that on y#at#rday

we did n t h^v# ecr*.# tables in cur nri#f.

Th&y have sine#

| oa m 1x4 and w# now band tnm tc you.
Th# 8#eretary of tha Tr#a*ury:

Thank you, air.

The Secretary of th# Tr#a*ury:

Mr. Watkin#, «av# your

and add r#a& to th# stenographer.

Ur. Wat kin a:

E. Wntkir.c, lawyer, Chattanooga, T#» a.

The Secretary cf th# Tr#aeury:

You know our probl#*, w#

would H k # tc hav# your view# on it, and I will aak you to
#p#ak a little lou1#r so th### g#ntl#a#n c r hear you; they
awill want tc hear what you have to say.
Mr. Watkins:

Gentle#en, wh#n th# Act of Con&ree# was passed

providing fcr the regional backs, th# business organisation
J of Chattanocg& — th# three business organisation, appointed, j



a coaaltt.e of three e*ch.


The Chair**n of these

ccapieed th* central coa*ittee.

Thecertral oea»ltt*. IB M

dlately w*rt tc work tc study out and undsr.tand a* nearer **
po**lbls th* provisions of th« Act of Congr**a, ard it b.oaa*
apparent to thi* o o w itt** tkat it was an sxtsr.siv* ey*t*«.
not d*p*ndir.g upon any on* di»triot, out dapanCIVC


proper s.d*lr ietraticr. of th* la* for all th* people of th,
•h o i* country.

Bo*, to do th i. — I « • « .

of .hat *a* n . c . a r y ,
Boncrabl* C os.itt**,

tc fora ar id**

th.y followed th* ta«rtag* of Tour

that you have giv*n th* peopl*


v&rlou* plio**, »*d eaw *hat th* diff*r*nt ..c t l c n ..
f a r .r .t


district* in th* country, d.*ir*d, anJ th*r. with

infcraatlor. th*y had,
showing sight

d if



th* * vent to work to prepar* a aap

d ie trio ts,

dividing th* territory into


district*, thinking th .t eight was p rhpas a preferable number.
Xr: fact, it 1 . *a *i*r to incr*a** the*. than to deoreaee th*

In order tc do th*t, as ycu perhaps


observe fro.

our aap, they l i l off • * Atlantic **abo«*i dletrict, e*rrt*-|
ponding to *c*e extent with a aiailar district or. tne Pacif ic

That left th. C*r.tral South lying bst*eer. th* Kieslsa.-

ippl River and thie Seaboard district, and, by the *«y, in
•or* instanoss, th.y stralghte»ed th* linea and took eoae


£ • Watkine


part cf th© Ft ate cf Wortfc Carelira, perhaps.

They case tc

•he oofiolvilon th«~ the ae relations between tha at ate a in
thla eecticn of tha cour try wai such tfe^t thay ought tc ba
thrown ir tc the ease dietrict ir order to sake thia district
self euetainin£, and thay took that part of Louisiana lying
aaat of tha Missleeip i Blver, and a third, or a portion of
tha atata of Ohio, euch portion aa would ba dee&ed proper
upon a acre critical wxaftixi&tlon and investigation, that purl

of tha state of Oh la,

the southern part of the etate cf Ohio^

and added to thie diatriot, th*t tne


thought-the banka re,

I tear*, when I eay they-that the barkere thought would per­


a district that would be self euetaining. Of ccuree

I, ae a lawyer, aa not faailiar with exactly what would sake
a dietrict that would be eelf austainin^.

Kow, therefore, we

reepsctfully to this hcncrable coa&ittee our vies on
the whole sohe&e, net on thr district in which Cha tt <noc*a
ehould ^*11 alone, but on the whole territory, for tine
reason th t thie honorable Coaaittee will have tc look to
that when you eoae tc make up the district.

Wow, we do not

kjgow what asrit there ie in our suggestion, but to us, it
strikes us that it le the beet diepceition ttiat could be
of it. It glvee ue t&e central south h~re, e&br&cin** a a


Z .Watkins

ufacturir* *nd air.ine dl.trloti it g i » « « • • »

d i“"

TheStcretary of tfet Treasury:
your b r l.f,

All that


i« it not - t h . . . fact. and figur.s?

Kr. Watkin.:

fe l l . I »

*ot going into the figure. at *11. |

on th*t.
Thi S*er.tary of th. Tr.a.ury:

Wh - w. would xiae to know

i . t h i., i f rou willpardon * . for int.rrvpting you.
Mr. !*•tkir,• :

Te», certainly.

Th. 6.or.t»ry of th. Tr.a.ury:

Tou hav. laid out a dis­

trict here and you bav. .t » t .d your r.aacn. for that.
Ho» « . would like to know .hat paramount advan tag. Chattanooga
ha. o*.r

my oth.roity in thi. d i .t r lot,** that .hould

te creat i a* th. h.adquart.r. fcr this bank.

I f it ha. a»T

superior fcdyartag.. c n r any other city 1 » th. district,
. uid l ik . to h*v. that fact brought cut.
Mr. ’ . i t . is k


It ia tb. .cu-tor or e«»tral part of tt»t

T h .r . 1 . a popuiation north of Chattanooga that

is alallar tc th. populatlor .cuth of It —

j, a. -r. fia, rv.
Tha Secretary of tht ?r«eaury.

fall, ell of


ar* in h«ra, ar« tfe«y not?
Hr. W tk in .:

Tee »ir.

£ic.MT amntioning that to •hew
I a* a « p i y *«*



you th. r.a .e n why it b iU m o *. up th. di.trlct.
Th. Sacr.tary of th. Treaeury:

Tc. only point X aa *ettl»i

at ! • thie. .c far ae any r&ct« that have a lr ^ d y been teetlfied tc ar. concarned, I don't think it ie worth , t u . to
cover that ground a^ain, but any new or additional redone
showing Chattanocga* * paraaourcy. we would b. glad to h a *..
kr’ W“ * U r ,,:

**H »

you are faaiilar «ith th. fact that,

ut of th. eta*. of Virginia and paaeing through th.

|*U t.« of Kentucky, Tenneeee, >orth Georgia and Alafc«aag

*°r *

M r . thar. 400 a i l . . ,

it i , Cn. of the f i n ..t

M n t r M districts in the Uni tad Stats* anyahsr*.

It is th*

pr*at *»tcr* hcu** cf *salth of thi* country. Bow, Chattanooga

"r th* Vdry

not the csntral point, flD* ons visw

0 * it; that is, it i* m t in th* middls of th* district,
>ut cn acccurt of th* apprcach** tc it, it is th* only plac*
t could b* easily »>ppro*ch*d frcs a n part* of th t dis­
Th* 8e„r«tnr’ of A^riculturs:

To wh*t sxten

dee* that

trads csntsr ther* now?
Mr. Watkinsz

Well, I m m M not stats ths facts and figurss.

i* t. a v#ry largs extent* perhap* second in


E .W a t k ln .

*16 0

th* district*
Th* Beerstarv of Agricul^urs:

Tc wh ; t sxtsnt wou i.d you »ay

Chuttan or ga is ths industrial and financial capital of Uiat
Mr, Watkins:

You »®a

with rsfsrsncs tc othar placsst

Ths ,8sorstary of A^riculturs:
Mr. Watkins:


Well, I would say that it wculd taks ths

second placs.
Ths Sscrstarv of Agriculture:

Which would taks ths first?

Mr. Watkins: Perhaps Birmingham - I think that Birair6ha&(at this point thsrs was a flash light sxplcsion brought afco*
fcy sctf fool photogra fesr which ir.tsrruptsd ths procssding.)
Mr. *atkins: Wow, 1 s t 1® sesj what was ytur question?
Ths Sscrstsry of Agriculture:

To what extent is Chattan. o§

ths industrial and financial capital of that ssction?
Mr. Watkins:

Wei 1, you taks upper sast Tenneesss, ainc

is very largely up thers, and ths copper interests also.
Ths 8scrstary of Agriculturs:

To wh^t sxtsnt doss that

center thsrs stors than anywhsrs slsst
Mr. WAtkins:

Well, with ths conveniences, with th* roads

leading directly through there —
Ths Sscrstarv of Agriculture:

Does it handls that tradst


E .W atkln*

Hr. Within*:

*o, .i r ,


th*t tr d. i . ohlufly b o d ied Is. th#

Tn# S#cr# tary of A&ricvltur#:

What is th#rt lr ycur ar*u»

Liiit that m u ld not apply with #qual or *roat#r #tr#n*th to
oc&6 other city?
Th# 8#cr#tury of th# Treasury:
Mr, Watklr s:

In that district?

Th# Secretary of Agriculture:

Mr, Watkins:

In th# district.

T s sir.

*sll, nothirg, sxc#pt th# Kentucky di#trict-

in passing through down, to th# south, all that trad# ct*#s
through Chattanooga.
Th# S#cr#tary of Agriculturs;
Mr. Wtttki* #:

W#ll, s iarg# portion of it is, sir*

fh« Secretary of Ag,ricultur«:
Ur. t t h in .:

I# it handlsd th#r#?

Ro, elr.

tior la handled h .re.

The l,vr*.r pcrtlor T

I ooiidr-'t say th.t th. larger por-

I *. uld .ay, ho»e*er, that psrhape *

larger portion of it than any other, piae# south 01 Kentucky*
Th# 8#cr#tary cf th# Tr#asury:

What city ir, th# district

•ouid you say was th# do*ir.ant city of th# a#nt.ral trad# -nu
interoours# with th# #ntir# ar#a?
Hr. W thine:

with reg*rd tc ehatt

Tb* Secretary of tt>. Treaeury:

All of th. general ciure.



of buainecfe— th. g .n .r »l flnanc. arid bu»ir.«»» ttirou^h «t
th# district.
Mr. Watkine:

Well, I think —

Tb« 8ocr.t-.ry of th. Tr.a«ury:

Teu say Chattanooga 1*

**ccnd; ®tate wh®r« th® flrat i * #
Mr. Watkin®:

I think that 1® th® aoet corveniint.

n&t %hm largaet i n voluae.

It 1®

Biraingha* 1® larger in volua®

cn account of h®r Iron.
Th® Secretary of Agriculture:
Mr. w tkin®:

How about Cincinnati?

Well, Cincinnati i® a very large city. I

•xpect, fro* a ccaaarclal ®tandpoint, Cincinnati and I®w
Crl«an® both ar* larg®

than any other two cltiea in the

The Secretary of Agriculture:

Which would be the larger

ccffffitrcial canter, Chattanoog or LouiavlUe?
Mr. Watkins:

£ell, Louiavilie 1® the larger cc&aerclal

it would cot b® the larger cocjtercial center of thi®

- strict, aa I conuei v. th® purpoae of the law, becauae it
ia net aa ccrv^r lent a plac® aa Chattanooga would be. Wow, I
waa going tc auggeet that it 1® 300 *11®® to Cincinnati and
about 50C rilea tc Wew Or lean®.
a ni&ht *e run.

Either plac® 1® reached dur~

Mow, if it wae th ught b«at to do ao,



I **Ch 0f

CCUld h* "

in that » J
•™ r ,



* *

in that di.triot and

acooiu.odat« * 1 1 th. people iB th. di.triot. Ho.- I

if ycu , U 1 p , ralt


t(J , U4geilt> j 4oll, t 6#g

» P i . • i ere., chad d u rin g t h . h o u r. M i m
to t h . a f t .m o o n

an d

tha f c u .in ...


th .

th .

9bj ' ^

bu ainaa.

fo llo w in g a o m i n g .

would aah. any d i f f .r .n o . r it . a . 500. . U . . or 50

W 1" '

80 far M

that i . concerned.

T ,


retary of Agricultur.s Ycur princippa point 1 . a .r .ly

j that t h . a i i U n * e n t e r and not ac n k

th. trad, o.nt.r e n ­

ter. there, hut it oan be nor. e’ .ily r*aohed.

Mr- * tki» j


th t 1. true, but th. id .* we bar. l*

J that in the organi.aticr of thee. bank, you will lock to
tie futur. » . * . n

a , to th, prassnt cf thm

tle G* ° r* *ry oi tb* Tr«,i*ury:

How, Mr. W&tkin., bar.

you M y additional light you oacgive ue on Chattanooga*t au-


- e diatriotT

i0WK t0 U -’ '

w. ar. bound to eort of hold you

■ tt»t 1 . the aaterial H M ,

' I

»8 ii, n. thing — i don’ t know that there ia


lug »ore than th. aubj.ct. that ha». been diaou.a.d in
b r i .f , whioh I did not .x p .o t to go into, .aocpt one thing
to .ay,

that w. hive a di.triot that h*a t.l.phonio

oo» aur. lea tier with .eery part of it. and a great portion of th*


E. Watkins


ooaasreial businsss of this day is dost e n r tits tslsphcns*
Ths Beerstary of ths Trsasury:

Hen, »s havs got all of

thcss facts.
Mr* Watkins:

^sll, I thought, psrhaps not sr. th*t subject.

Ths Gecrsiary of ths Tre uury:

Is*, « i h 4 a tslsphcns

s.anager hsrs ysotsrday who tsotified as to th t.


I asan, you didn’ t havs it — wall, ysa. How,

with Cincinnati on one snd and Hsw Orlsans on ths othsr, it
occurs to us that ths squitable thing tc do would bs to locats
a bank in ths osntsr bstwssn ths two, and thsr, as su&^sstsd
awhlls ago, if it is nscsssary, that ons or both of ths*
should havs a branch bank. Ths qusstion a*y bs asksd, why
not givo ons of thaws ths rsssrvs bank and Chattanooga a
branch bank, but you can't rwaoh Hsw Orlsans froa Cincinnati
in a night's trip; it would taks 36 hours — it would tais
34 hours tc aaks th# run, but it would fe 36 hours out of
! businsss; whsrsa®, it would only be 1- or 13 hours out of

businsss froa Chattanooga in ctarunication of ths branch
bank withit, and, ths rs fors, ws say that that is a vsry strong,
I rsason.

Ws do not know wfcat would bs ths policy of ths ad-

Ministration, ws don't know what will bs ths policy of ths ad-



I.W atk in s


ainietration with regard to those branch bank*.

to do not

know whether you wiXX door thea proper or not, but «e say
if you do dtfow tfeor proper and for the proper accoaaodalion
of the peopXe, and think it better, why that would be a handeoae way tc handXe thie dietriot.

Theee are the two ex&reae

The Seorstar

of the Tre ^sury:

We thank you, Mr. W tkine.

' e wiXX t,ivo that ccneideration*

Hr. Bandera:

I would Ilk. to e»y, Mr. Secretary, that wo

»«ry such approclota the privilege of being h ard here, and
the courteous treats ont that we have had, and it it tume out
that we have been of any assistance or heXp to you in «*kin*
a dietriot hero in the central south, we will be vary cmoh
pXeaeed, and if it tum o out you think it wioe tc aako
Ch, ttanocga a bark city, ;e ehalX be deXi^hted.
Th«Secretary of the Treasury:

We thank ycu, Mr• S-xdere*

Sow, we wiXX hear the cXaiu of Co v. bi *, S.C.

wt wiXX

here froa Ur. CXark firet.
Mr. Stevenson:

Mr. Secretary, Mr. Clarfc is unatoidabXy

detained fr m being here*
The Secretary of the Treasury:
b a liv e .

Thie is Mr, Stevenson, I

* .F . ~t.vcn.OB



Tee, *lr, fret, South Carolina..

The Secretary cf the Treaeury:

Give your naae tc th© r*»

porter for th* record,
Mr, Ftev«r.ecn:

W. F. S t m m c n ,

from Che raw, S .C ., occu­

pation; occupation, layer and hanker.

I a h*re at the

direction cf tlic Legislature of South Carolina.
Th# Comptroller of the Currency:

Tcu are epeaker of the

Houae, are you not?
Mr. St«veneer.:

I a* not.

I have been, but th<*t wae ecu©

ti*e ago, but the Legislature designated ae to take the
pi ce of the speaker who cculd not cc&e at thie tiae. I daaire tc etate that the Pr^eident of the Sta e B&nkere Aaaociation, Mr, W illianscr, who was to have preeented one of the
prircipal brief a in thie natter, was. taken very ill Indeed
this aom ing and will not be a .le te appear, but hi# brief
will b

r«ad by mother gentleman.

He aaked ae to etate that

if it was entirely agreeable tc the Conaittse, if the
Cc s i t tee ehould have a aeeting in Washington, that he would
like to app#*r pereonally fcr a few to an ewer aay
quefeticr.§ the C esittee Eight desire tc aak.

W.F. 8tev<3nacn

The Secretary cf th# Treaeury:


W#ll, i£ any questions should

b# d# aired, we w ill, of ccurs#, o# (.l«i4 tc gi*# hi* th.*t op­

The bri#f, however, will be filed, of ccure#, and

w# wi 11,1 v# it Owneid#ration*
Mr. St#venaon:

He will probably deeire tc ravie# that

and h%v# it sore p#rf#ct to praitnt wh&t: b-flia* it.
The Secretary of the Treasury:

low, St^venaoR, addre##

jrcura«lf tc th# particular rtattere before ut.

Ha r you in

■lad a diatrict cf which Columbia i# to be th# center?
Mr. Stavanaon:


#ir. we diesre to ad vecate a district.

The Secretary of the Tr aaury:
Mr. Stevenson:

Hava ycu a aapt

We have rot a *sp apecially prepared,


I have, * b* in * directed to c, ne here, wLIch sas only day
Mef re yesterday, narked cut a rap, ar.5 on that aytp which w#
| have is the district which we ar* advocating*
The Secretary of the Tr
Mr. SttiV^naon:


?l&*ae describe it*

That differ lot ccn-:iata of the District of

Columbia, Virginia,

a v«ry small part cf the South-

j eastern p *rt of Wo&t Virginia, which ic n turaUy tributary
j to Virginia, HcrtL Carolina, South C r* lira, Southeaatern Geor­
gia and Florida.

Th vt is the district which we think ia the

natural diatrict In which we fall.

Our r^aoen fcr that


T .F .St*v enacn


district is tint th* thscry of this law, as has bear. abundantly
indicated, is th t each district should be eelf-suet&inisg,
and we thi ok that the figures which will be presented by
ethers, will show that this would be a se If-sustaining dis­
trict; that each district, inorder to bs self-sustaining,
necessarily rust bs a district wade up of a di varsity of in­

A district nade up entirely of cotton growing statss

would want to borrow at ths ease 4iae, and necessarily thsy
all would bs fiushsd with scney at the saae tine, and there
»culd be no equalisation of matters.

Therefore, we have pre-

eented this district which has ths cottongrowing territory,
it hae the citrus fruit and phosphate territory, it has ths
trucking territory all the way up the coast, it has ths ainerals of Virginia and the lurber,grain and live stock of Tirj ginia and lorth Carolina, and it ha a a great aany diversified

In certain parts of this dietrict, especially

Kurtn Carolina £nd Virginia, the season of th« year whentfcey
ars borrowing fro* our country, the cotton country is lending;
j on ths othsr hand, the thirg le reverted, and when our coun­
try is borrowing, why£ t m m sections havs aoney to lend.
That is a reason we advecats this dietrict frof a financial
atandpoint, and thsn fro* a trade standpoint, it is a district


v.F. Stevenson


th t is naturally brun t together in eatters cf trade.


question on yesterday wae raised ae tc the i*.o cuntile traie of
this destrict.

Spaaking for South Carolina, especially

eastern South Carolina, I represent a fir* which h&ndlee possibiy


larger amount of cosmsrclal collections than my othsr

legal fir« in the eastsrn part of tbs stats, without
ing to blow our own horn or .inythin& like that.



.hoe trade, for Instance, which was brought up on yesterday;
I venture ths assertion that in that ssotion of South Caroli­
na, the collecti ns for shoe houses ars pretty ns&rly ?5^
of the City of Lynchburg, which gives a visw of the diasnsiens cf thi shoe trade.

While the collections that fall into

the hands of attomsys do not always indicats the amount of
trads, but it may indicate that the Lynchburg people are
aors Ui fortunate in crsating bad debts than othtsr peopls,
still thegensral rule is that there ia a certain percentage
of all these salss — comaertfial sales by whoiisals hcusss,
th t *s* into the hand® of attorneys, no matter where they
cone froa;

then, as tc the mailing facilities and transport

tation facilities,

it is hardly neosssary to discuss that with

th i. Cor al-tea.
Th. E e c r . t a r y of As.rloi.ltur*;

W h s t elty s>r* you s u ^ *




Mr. St#vtneon:
is practically i

Coluc bi a, 8 .C.


The City of Columbia

th«* banter of th. t diatrict. Then aa have

other iinss, cf ccuras, to Charleston arid tha port — t»o
line a, the coast Th

Secretary of Agriculture:

?e are entirely fasillar

with th*t.
Mr. Stevenson:

Tee, and it le not necessary tc diecuee

These railroad f cilitiea of Columbia for aaiiing pur*

poeee and all that are familiar to thie ecrmltts* espec­
ially to a msabsr of it who has been very largely concerned In
the dsvelop&ent o? 'hose facilities.

Ae tc the diepoeition

of the etate banks, I desire to eay that, nc withstand­
ing I h ari a report on yesterday that was a*da aoae weeks - c
that there wsre 1 -gal difficulties In theway, thsre was no
power under cur Legislature for a stats bank to taka stock
ia this institution until a wssk ago, I looked into it, and
Introduced , syself, a ceaeure in the Legislature ehicfc became
a law on yestsrday, and which givee the& e*prese authority ts
do so# and In the Legislature, «hich has a large number of
country bankers lr* it, th t measure was giver preference over
everything, ar d 1* Is ths unanimous desire, I think, of the

stats oanke of South Carolina, who ars now arranging tc b&corns



aaabera of thia ayataa..


It will, hoavar, daptnd ao&i,what

on the loc tlon of th® central hank jjr d tha aanr ing of that
hank, aa tc whether thay will or net.

Speaking for tha inati-

tution whicu I raprtaanti —• at a aaating at about a week a*o
whan our atock was increased to tl~£,000. froa t&0,000.,
tha atcckholda a una nlaoualy directed tha diractora, whan it
wa© daauad abaclutaly Judicious, to m % ar this ayataa.
Tha Sacra tar % of tha Treasury:

You do notM tt by th, t,

do, you, Hr, S t t f W H n , that you would not jcinthe ayataa if
j thia diatrict ware laid out and reserve* sere located at
| atR« oih^r poiflt than at ColuabiaT
Mr. 8tavanaon:


air, not at all.

Tha point which wa »ake

ia that it dapanda to a car tain extent on tha locatlor of tha

cei tral bank, aa tc ita proper coa&unic ticna with tha banka
of thia atata and with tha p raonr al of c urea of tha people
in it, aa to whather thara will ba unanimity on tha part of
tha bankers who ara eligible tc enter,— whether or not
they will entar.
The St. era tar? of tha Tr aaury:

C*n you atata offhand what

parc^r.ta&e of tha banka of South Carolina — the atata bank*,
ara eligible urdar thia Act?
Mr. Ete eraon:


A vary large pwrcent. I ah uld aay 75 or bQ$

W. F.Sttsveneon



of them. The. re are quite a number of b&rics under
| 2 5 ,000 capital, but in the whole aggregats, they are rather
a stall ptrccnta e.

The tendency la to put the capital!**lion

to at least f~3,S99 although we have no law requiring
th t.

He*, as to one oth&r feature of it, and th*t ie the

orly other feature that Ideeire tc present, eo far ae we are
concerned, ae to the location of a bank in Columbia,

At a

j, the Ccr*ittee will e«e that th it will be pretty
| nearly thecenter of borrowing inthat dietrict.

With th© lo ­

cation of the bank, the Bo >r* of Direc ore there will keep
ths Beard ftore nearly in tov ch with the financial ccnditione
of the b rrowing conetituency, 1 think, than if it wsrslocatsd elsewhere#
The Secretary of the Treaeury:

How oar, that be, as, under

the law, the Director > are to bs drawn froir the entire dis­
trict, and chceer in the earn er prsscribeiby the Actt
Mr. Stevenson:


it is gererall e - posed that the locafi

tiori of the regi nal bark will be eo»v*k*t the center of the
whole bualnsft, and while they are drawn froa eleewhere, they
I woold naturally be aore in touch with conditione contlgucue
to the location cf the bark. Otherwise, there would be very
little occasion for ue to dispute about where the bank ie tc






Boa, these ars +ht general representations as tc that

f tier
The Secretary of the Tr asury:

Tew thin* the Beard of Direo

tors, even though drawn froa the dietriot, would ultimately
beeoae affected by the local environments?
Mr. Stevenson:

They woull ultimately btco&e aore faailiar*

| I should thirk, with thedietriet aore nearly contiguous to
^here the bank is loo ted.
The Secretary of the Treaeury:

Well, you are faailiar, are
you n< t, with the provisions of ths A^t about the brsneh barks
anJ ths dirsotors of *he branches and hew thsy are chosen?
Mr. Stevenson:

T e sir, I aa faai*iar with it, but I have

not stutlsd the bill as eoae of ths aeshe s of the delegation
here have, because I had no ids* of coming here, and it was
only at the direction of the Legislature that I e *ae, but I
thiti that the suggestions which have been aade, that the br«*a$h
banks w ill, to a considerable extent, localise, and that thsy
will be considered aore local than the r«gi nal banks, of
ocurss a ppeals toae as a reasonable proposition.

Sow, we are

very deeply concerned as to th* district in which ss ars
plaoed, and *e think that a dietrict-created on these lines

^ .F .


The Cosp4roller of the Currency:


You did not Inc ude


8tevi <eon:

We did ?,ot.

Th* Siorttary of

he Treasury: You would net object tc

Maryland, would you!
Hr. S;«v»ii«on:

*e would object tc U^ryl^d or West Virginia,

an cb;ectioa to ta*t, but as to tha queetion of second

1 clioice which hae been asked, I think the unaslsous second
cacios ol %km state uf South Carolina, or til* ba*JUre of
^vuth C~ro^ir,a, would be Bli-haoiid; tbat ie, so iar as 1 have
been able to ascertain*
The Secretary of the Treaeury:

Hoe wtuid you regard



Washington has been very li tie considered,

because our people have always regarded Washington ae


|4oiiinatea by a p o l it ic a l senii&ent, and when ws start to buy
goods or a <ke b a l i n g arrange»«nte, we go to Richmond cr ^uap
to Baltimore or P hilad elp h ia or lew Yora, and the . we drop

yack there to see the Cor greeessn and find cut *rh t is dej in * p o litic a lly ;

but there are p ractically no bankers in

Sou-h C-rolira that even have a speaking acquaintance with
any bankers in fashing ton, and our fe e lin g about that is this.




withcut any ant agonies, t< WaeMr,, ten cr any reflection on the
f^ct tb t it is * political center, our feeling about thie par­
ticular territory. «r * it ie frcn an experience oi' fifty
yeurs of practical hostile sentiment politically to that par­
ticular territory, & r \ we h v* very nstuaiiy acquired the
ides, th

in bualrsse r.att:r«, a < in polities! natter*, too,

**t have vary little to expect. We are beginning tc feel that

we *re po*-* it hr a& up tfctre at the present tlr.e, (laughter)

that la strictly in a political *ay.
The 8tor«Ury of the Treasury:

o*t, assuring that a fund

gs- ir, Washington that was available to the banters and to ths
people oX »his territory,

you *culdn 't hav» any k.ors trcuble

g etting am; see to that t w A ir* Washir gton than ir. any other

city ir th* iSibtrict, *cuIJ ytuT
Mr, Stevenson:

I apprehend not.

The It c r iU r v o* 4hi. Treasury:

As a tatter of fact, ths

tritsd 8tat s Treasury holds a little aonsy, and I observe that
w hs » ws proposs to 1st tbs b*nke throu hcut the country h*ve
ao « of 1%

they were juwt as w illing to take it as if it

»« frvm sr where else, and ee*aed a little aore w illing
1o ♦ake it out cf Washington,
Mr, St ever son:

T ey all see* t© find the ror d tc Washington


f .F . Etc?inscn


very proapt3y.
The Secretary of the Treaeury: Bow, waiving all aentiaentai
ct reideraliu/

ae to poiitifce and considering it ssricusXy, arid

regarding the prcblsa ae an scoroaic one, with a r t s e r v e bank
in t U s dietriot tc which reeort may be had in tiae cl necessity, or for any other rsascn*hXs purpoee, by the baiite in that
district, who cc a* hthe re to rediscount paper, car* you eee any
aore objection to Washington froa that point of view than to
Kichaond or tc BaXtiaors, or to any other city of the dietrict?
Mr. Steveneon:

I apprehend not.

There is one consideration,

one reason, I take it, that Washington has not be considered
is ths fact that it has been considered by tns peopXe as a
political center, and cur experience as banksrs has been tfeat
when it ccaes to mixing up political Batters, it Is a very
unsatisfactory condition.
Hie Secretary of the Tre sury:
act on CcXuabiaT
Mr. Steveneon:

Doesn't that argument re-

Isn't that a political center?
W«II, eir,

in a very saaXX way.

The poXit-

ical center see^s no* to have shifted up into the cotton
®i XX section in the norther?. part cf the stats.

T&e poiiticaX

center is in Spartanburg and GreenviXXe at the pressnt tiae.


These two counties dowina'e ths state.


As to th t setter,

ho^*v» r, th# loc^tior in that liatriet is a matter cf minor
import roe,


my viev rf


He*, Ur. iUlli&aoonU

r*p«r, th® paer which lt would have re^i, will he presented
to you by Mr. Plch*ri I. Uhtj. in^, of South Oro liu A .

Tr# Hecre

?ry c f th?* ^i ' q. wury;

Thank you, Mr. St«T«n»oa.


The Be art. 1 r> cf

he Treasury:

Give ycur f u l l avp.*, pleaee,

a ir .
Wr. v ^ n i n g :

Rich.rd I . Manning. I && first and fo r — sat

! a firatr, but inriioder tally President ©f ths Bank of Sustir.
Tha Secret* ry cf the Treasury:

Ycu are a farmer, but not a*

Hr, M rrirp,:

Fct fmagrSoulturlet.

***h Seoretary of th* Treneury*.

I beiieve there is a broad,

distinction betweer the two.

Mr. Harming:

Ten t ir, tfc* farmer n.akee hio aoney, I b ee

lleve, or the f \rm and spend i t
r akee h ie »on*y ii

u-.w and spends it on the fara.

The Secret ry of th s Treasury:
definition ir. the record agfcia.

in town, and the a g r ic u lt u r is t

I J u s t wanted tc $et th a t
I wanted to find out if it ie


ft. I.Manning

universal throughout th# ccuntry.
Mr. jwir in$:

Mr. Be ora tar;*, I h,.v# juet been M ktd tc tali#

far. V U i l s s m 1! pi ac a, who is* d t U l m d by sickneas, and to
read th« bri f which ha h *d prepared fcr ytu.

Mr. Stavenson

has ai.rt.ady gone into sca»a of tha cat tor# which war# touched
on here.
The Secretary of the Tre;aury:

How, I would suggest aiaply,

in order thr*t %a say ret rapaat or cover thesa&e ground, that
you touch upon any points in thi* brief which have net been
covered by Mr. Stevenson.

Mr. Manning:

lr reply to that, air, I vculd eay that Mr,

V l i n i t M D has outlined hare the oa«e of the South Carolina

Ir their first *eeting, they endorsed strongly the

propoaition to get a north and ecuth district.


there w%s another nesting of the bankers held at which there
fire 130 banaa represented.

At th *t aeeting they reiterated

tueir desire to be in a ncrth and south diatrict, and added
that thsy wanted Colu bia as the regional ban* city, and it
is these two points which ws dssire to present to this Ce»! *ittee.

te realise the importance of the question which you

developed yesterday cf a district being a self supporting



1 . 1 . Harming

The Secretary cf theTre»eury:
Mr. Manning:

A* far ae practicable.

As far ae practicable.

Of course, we are

in an agricultural coaru ity whichof neleeeity ie a large

We have not yet reached that point cf development

hwere we are able to lend tc cur neighbor® tc any great extent#
but we are obliged to uee our funds for the development
of agriculture primarily* and the dc&ands on the banks for
money ha* been eteadily increasing one, earning tc the a opt­
ion of the policy of lending to the fare ere as far as it is
practicable to do so, and furnishing ther money at a low rate
of interest — at a lo* a rate ae practicable, and to take
the*, out of the hards of the coMiseicn aerch&nte.

It is for

this reason, that their money comes in only in the fall of
the year, a«d it makes* cur line of borrowing very heavy during
the spring and eunr er aonihe.

Mr. Williaaeon here h^s gotten

> t wo districts, and in one of these districts he has sheen
i t the tetal reeerouce e of the national banks in th t die“lot are abeo utely inadequate for the needs of the dia*lot in the matter of reiieceunts. dietrict, ae he has

itlinwd it, sir, comprises the states of lerth Carolina,
uth Caroling Georgia, Fieri da and Alabama.
TheCoeptreller of the Currency:

He puts in Georgia said


Fu I.Manning


lesvee ot t Virginia?
Mr, Manning:

Tee, air.

In th t diettict we find that the

total resource* of the bak would be something over twelve
Billion dollara, while the rediscounts of the national bank*
in that district during the past season amounts to something
over twenty-six million.
The Secretary of Agriculture:

Doe© that reflect the total

value of rediscounts,
Mr, Manning? It does not touch His stats hanks at all*
TheSecretary of Agriculture:

lor the borrowing outside?

Mr. Manning|

Thit is confined simply

Hone whatever.

tc the national banks.
The Controller of the Currency?

When you speak of re-

sources of twelve B i l l i o n , do you mean
Mr, Manning:



C&pitsl deposits and government deposits.

The Comptroller of the Currency:

Whst would the capital

Mr, Maiming;

I will just give ycu the figures, eir.


approximate capital and surplus of all the national banks in
these states is 170,000,000,

The approximate deposits

are ^170,000,000. and the customary rediscounts of these
*>*nka during. August and September was f 26,^00,000, at


B. Z. Manning

rats® ranging fro* 4 to fi£«


Tha paid %m capital cf tha re­

serve bank ef auoh a district weul I ba §2,100,000.


dcpoeita, b.ised upon one half cf th® sieaher back©1 reservss
being placed with the reserve bank, would ba 110*300,000.;
ids aggregate capital and surplus of these tanks being about
4# of ths total capital and surplus cf all the national banka
lr* the country, 1* la reasonable to suppose that ahout 4jt
of tbs toai United 6 latea deposits would also bs placed
with that bank*

Aesuaine all the United States deposits to

aggregatct150*000»0C0» • ths share of thia particular re­
serve bark would be 16,000*000.

The funds awailahle for

rsdiscounte or invefctaente would bs as follows:

ca ital,

*3,100*0000, 65^ of th© tct*l depoeite $10,530,0*0, taking
a tctal of :*l ,6 3 0 ,0 0 0 .

Ina oeuch ae the rediscounts are

t«6#000,000, it will be seer at cncs th** t the resources of

m bank would be entirely inadequate to the nee^a.


»s ccas alter gol g ovar thie situation, to see what district
we would like to be in, recognising the fact, and a U i i n i it
f rankly, that we are a very large borrowing e t a e ,

that we

want to he linked up with sons atatsa where tbe deposits
ars larger in proportion to their rediscounts.

To do that,



B. I .Manning


I ®f ccur*e, «« go into a north and scuth dietrict, and, as
tr. Hievenecn suggested to you, the dietrict that we have fixed
vi a.< beir,t

* uld beet eupoly the general needs of that

territory, #oul i t* one half of West Virginia, or a portion
of W*st Virginia,

the dietrict of Columbia, Virginia, lorth

South Karolina, Georgia and Florida*

The Coaptroller of the Currency:

I think, Mr. Stevenson did

not inciuds Georgia.
Mr. Stevenson:

I included scutheaet Georgia — froa

Au*u*ta across,
fer. Marring:
of the st*».

That left out Atlanta and ail the Western part
I won11 0c ir to the fi uree here, as ee pro­

pose to file this hrief with you* but I will state that on exaair.atien you will find that the reecurcee of the national
baake in the territory would tor* than equal the deaande of
the territory for rediecounts.

Wc*, that does not take into

account the eta4e banks at a ll, but the proportion would be
practically the sa*e, and ws feel that it is eiaply a questicn
of tiae w
fce* the state banks will c ae into this ayetea. I
wie.n to say, ae far as the bank I represent ie concerned,
that we a*ready had a aeetityg of the stochholdere which


thoriaed the Board of Directors to take steps to go into


w r


system as soon as the rules are laid down, and other conditions!
are known. We feel that we have every deelre to eee the systmm
succeed, and reall&e that the ®ere banks ocmo if to it, the
safer the eystes., and the more sure the systm will be of suc­

, aa to the questic" ©f location, I want to say this,

and impress on you gentlmer this fact, that the question of
the H e tr lc t is — I will use Mr. Bryan** words — the para­
mount matter in cur minds, but that along with that we realise
that, located ae we are in South Carolina and with the advan­
tages which Columbia presents, we want to subrit tc you
that a reserve tank lo ated at Columbia would fill the needs
ar.d facilitate the business, we beli we, in that territory.
1 h*ve here a statement, which I willfile with you, shewing
the mail facilities and the pro©,: ♦ness with which that part of
the business would be transacted.

Of course Columbia, taking

in Florida as the southern point,— ycu can see hew nearly
t < center of th district it would cc*e, but I will file with
you the dstate&ent which shows that. Wow, Mr. Williamson wishes
further to iapress upcr. ycur attention tile fact, that with
the advantages cf Ccluntia which we wish tc submit, the reserve bank will not depend or cf dependent on any Im&sdiate
10031 condition for ca i*al or deposits.

These will be the



1 ••»*# whether it be at Key test, Colui bia, Washlngtor or any
other point in that dietrict; ths t the reserve bank© will not
largely aa a dearin g house and for the nup - of

unds to

banka onl/ and th *t probably over 9Qi of ite business will be
th rough the nails,and practically all of it will be fro*
other banke and the government, and for these re aeons a csntraJ.
I location and it# Rail facilitie# with ability to aaite prompt
j clearinta with reference tc econoay in tim*9 which i# a great
waving, not only of interest, exp re##» etc., but safety, ahoul<i
largely goven the location. If ths*# presiises are correct,
j the ei^e of a city and it# financial strength will add noth­
ing to the alvantag# of location, but that proa;tness, celerity
and di#patch surely w ill, and th&t these ar# tbe principal
advantages of the loc ticn, and we herewith #ubnit tbe sail
facilities of Columbia a# ccupiled on thl# sheet, which I will
just filed with you*

*A# a barker, * #ay# Mr. Willifeaeon,

j *1 *now that #ach incoming and outgoing aall is taken advatag#
cf, and I herewith mbmit the average tia es of delivery
t rarsit of certain cities in ccapatison — Columbia, A tlan ta,
Bick*ond and Savannah.

Again we wish to present this idea,

I that one cf the purpce.e cf this bill 1 . tc <Uc«r-trall»«,
that pl«elr.K tha clearing hcue. and th. depot fer th. supply



R , I . Manning


aon ey a n d c r e d i t

wealth of the


in the d i r e c t i o n c f the a g g r e g a t io n o f



a c o n t i n u a t io n

o f the p r i n c i p l e


cl the idea, that the a-oner c e n t e r s a r e e t i l l to c o n t r o l .

m ic «,

I t.a

the pre&iuss paid for life inauranee f r o »

Scuth C a r o lin a ,
a ao u n t

th d h e l d

i n v e s t e d ir


C a r o lin a ,

*ission«rs‘ r e p o r t f o r

Jo i



1 0 , 0 0 0 , ie 0 0

as shown b y the Irw u r a n c e C ft-

1 8 1 3

an aaount nearly e q u a l to the

of ail the e t a t e banka i n South C a r o l i n a ,

foreign securities.

ed i n

in v e e t a e n t a w a it in g d i s t r i b u t i o n ,

# £ 7 , 0 0 0 , o f0 w0h ic h


oa i t a l


the S o u th Atla* t i c

^ i t h the


We concede that the b a n k in g c a p i t a l


la v e ry s s a i l in c o a p a r is e n

to tha n o r t h o f t h e a ,

cu ltu ral w ealth,

the a o s t

to be inveet-

bu t

how about the a g r i ­

im p o rtant and fo u n d a t io n o f


jtather w e a l t h , and ws r e s p e c t f u l l y c a l l you r a t t e n t i o n to the

th^t the future w e a l t h and the hope of t h i s country l i e s

ji» the f ret few inches of i t s s o i l , and th a t South C a r o l i n a

sm allest

of cur a g ric u ltu r a l


v alue

its products,



and fo r

ran k s t h i r t e e n t h

1 9 1 3aade



in c r e a s e c f


He sajrs in conclusion, • the south, w it h


the P t t s s i C an al a n d t h e v a s t r e s o u r c e s of the

o p e n in g

jlss t h ,


has tu rn e d i t s f a c e to w ards t h e r i s i n g sun and tc the

ifttturs w i t h



possibilities, *


1. Manning

The Secretary of th. Tr. .ury:

Mr. Manr-lr*, wh.t would b.

| your .socni ch. Ice - th. ..cond choice of the South Circling
o^nksrs, wh *t city ir this district?
hr. Manning:

Mr. McAdoo. I wculd ilk . to be perfectly frank

■1th ycu on that.

Of a. vree, we are looking only to

Cclii^i* at theprs&snt*
Secre tar

of the Treasury:

I understsnd tbi t, but as*ua~

ling you had to face another alternative, shat nuld you say?

Well, I would asy frankly,

town Suatc ; ,


that, take ay

forinsiancs, there ie a diversity of op in*

l0n 0n thit aatter- There ie one bank th&t desires Washington.

e r®

cnc k*«k

wants Sew Tsrk^ they want to be linked

$ith that center#

The rest cf the banks prefer

Richmond as ths second chcics*
| The 8eoretary of th. Tr**.ury:

Ho. do you r.gard AtUntat

Well, saw ,sir, ws ars very frier, dly indsed

fith Cut r
-°lfchb©re down, but th i. 1 . a h u .l n ... propel(

which ia nor. far reaching thar, a aer. .entlM ntal f.el-

Ir.g for way one locality that way.

Atlanta would be ab.o^ute- I

ly °Ut 0t th* lin" cf the trend of our b u . l n . . .. To .how you
kt" 11 w<uld a ^fect u. lc our coll.ctlon. with point, l u t of
Spartanburg and O r w n » l U e , — th. oonn.ctlon. a r . .uch that

B .I .Manning


it take® too much time tc get her® and toe auch tiae to get

The bank I an connected wit* , during the y^ar, ex-

pr i n s for oottoe bueineee over fl7 9QOO. not to be exact*
jlow, ee get that aoney at preeent during that eeaeon,
i which ie the only eeaeon we have, but we eend fer the cur­
rency ae needed, and ecaetiaee f m

Charleston, generally from

Columbia .nd aleo from Fichmond and Baltimore.

Hew, if we find

that the aacurt cf cot tor cowing in in that wagon trade ie very
large cnanyday, eo th t our currerey Ivors down at the
cloae of bueineee, we car, wire even aefar forth ae B Itiaore
for currercy, and h*ve it there for the next aorning to meet
that tr-ide.

We do an encrsoue bueineee in that territory;

we handle about 70,000 bale® cf cottor. feoa wagone, and of
couree, that ie all to b e paid for in currency, and it take*
I a very large volume of aoney.

He*, *ith Atlanta, there ie no

J ray inwhichwe could ^et th it aoney even ordering it at the
»»• « tl»a, for. £4 hour, latar, and of ocura., at that aaaaoc
j of tba year you ara just cbUged to ha»* tbe currency, and
there ie no way of predicting what the trade of any day ie
going to be.

That ie a v^ry important aatter.

Sow, the fact

ie that tur ite* © are nearly all — our cut of town iteae
nearly all north ande et.

We h *ve a very *m>ai per-



K .I.If inning


csntags of anything thit v« have to collect fro* thi:> viettrs
ecu; try, ncthir £ to th* we«t of here.
The Secretary of the Treasury:

Tcu did not include Maryland

ir. that dietrict, 1 belitvs.
Mr. panning*

fo sir, I did not.

Trie Secretary cf *hs Treaeury:

Su pose that were included*

hoe would you look upon Baltimore— me between Bichaond and
Baxtieore, I would say.
Mr. U
*> ir&z

Well, personally, no#, I would eay -

The Secretary of tMc Treasury:

Well, considering it ae a

buelneea prcpceiticn; th it ie the only way you can lock at

Mr. d u r i n g :

Why, certainly* really, I do not thin, there

ie very auch difference,
the two.

eo far ae we are concerned, between

There ie, however, thie, that B ltiaore

i ute ue ore a*ilin& day further off.


Of course, cur mail

**oull reach Bichaond by the afternoon, or if aailed in the
afternoon, would rtoch Bichaond the next m byfive
o'clock, everything entering tinto the business, cf th*t day*
« h * r * a , with Bultiaore, it is 10:30 or 11 o'clock and that
mail is not answered until the day after.

Anyone who has teen

in the bankir/ busirwse knows wh^t the value of a day is,

R. I .Manning


both in the matter of * ring of interest and tise.
Tb« Seor tary of the Treasury: Ho* ib<.ut Wa»hi. gtcr., bov
•ould you vie* WaehirgtonT
Mr. Manning:

Well, ws feel, frankly, that as long as the

present ad*iniat at ion is there

it wculd be satisfactory

1 and we would have a very friendly attitude to Washington, but
eerie* aly, I do not feel - w* do not feel that the capital

of the country should be the place for this banking institu­

In the first place, none of our business relations fere

ith Washington.

We do scarcely any business through there

<*nd we »r* not thrown with th* bank* or bank* there.
The Secretary of the Tr*a*ury:
tions tha

Well, ccn*trui g the func-

thi* bapk i* to per fore, *bicn, as ycu understand,

is oenfintd to redi counts and certain ether specified things
. mentioned in the bill, and as h^vin*, relations with a nun ber
of tha bunks in thedietrict, would it rot serve your | urpose
just abwut as well in Washington or Baltinor* or Richmond,
for that matter?
Mr. Manning:

I will *ay, frankly, th^t I think it could,

eoept aa I said before,

that with our view of the matter,

taahingtor, oeing the center of all political association*,
affiliation* and influence*, that • * feel Just in a sentiaan


R . I • fcann ing

4 1 *0

tal way th t it is beat net to have business aixed up with
The Secret*!" of the Treasury:
consideration, of course.

W e n , th t ia a sen ti sen tal

The directors of this bank, where*

evur located, are to be drawn froa the entire district*
Mr. Manning:


The Secretary of the Treasury:

So you would have the sa&e

directors, no matter where the hed bank happens tc be locat­

Vr. Mai ing:

Tes sir.

The Secretary of the Treasury:

It would be no more sus­

ceptible to any other influence in one cos&unity, I ifcagins
than in another.
Mr. vanning:

We are not inimical to Washington, but we

simply have not had any occasion for association in a business
way there with those people and of ccurse you will be influ­
enced by that to a certain extent.
The Secretary of Agriculture:

Didn't you include Wa»hir*&tur*

in this districtt
Mr. Manning:

Tes sir.

The Secretary of Agriculture:

What would they say about

Columbia, wouldri*t thsy sake the same argument aa to


4 i'j i

Cc I u k M a Y
Mr. y 4 i ln&:

Welx, I iupjoee at present tuey aii^ht.

At the iai« ti*e, I den*t know that that would t e ae far
rt clir.w cut*id* cf South C rolira ae in the etate.
The Secretary ©f the Treaeury:

Ae h e been remark d, the

political ar^uier t reacte on Ooluinbla ae well ae on Washington*
beo*u*« you hate got a etate o&; ital and it ie euppoeed to he
the headquartere of a good deal of political activity.
Mr. jarring:

Well, at the preeent *c&er t, the political

influence is not exerted aa a very potent factor cf our life*
The Secretary of *he Treaeury:

Did you giv<* the capital

of thie bank — I waa out *t the aoasnt.
Mr. panning:

Tee »ir, it ie in here, and I have it in the

brief which I w illfile.
Th* Secretary of the Treaeury:

Th t ie all for ycur* Mr.

Wh* 1,* the next.

The Secretary of the Treaeury:

Give ycur full naae «nd reel-

aarce tc therepcrted for the record, pleaee,
kr. Taylor:

B. F. Taylor, Columbia, 8 ,C ., banker and aan-

uf acturer, representing the Cclu bia Clearing Houee Aeeocla



tlcn, South CSrolina Bark.r. Association and the Bark cf
Coiuahia, E.C.
Th„ Secretary cf the Trc>u,ury:

ire you Proaident cf the

Banker. Aa.oolation cf South Carolina?
Mr.. Uayicr:

No »ir# I an Bicritnry of a coitsittee th«kt *

I eae appointed by the Association t© appear before you

|e & tle a e n ..
The Secretary of the Treaeury:
Kr. Taylor:

Have you the resolutions?

They have been filed with Mr. rillirotson'e

I h^ve the ori ir^l here* though.

Tha Seer.tary of the Treasury:

What do they cover, r.h t

ie the authority?
Mr. Taylor:

The authority ie to appear before you gentleaen

lim t M i n t e r t of Coluabii, firet for a regional bank north
acuth, and eeccnd for Columbia.
^Tfee Secretary of th« Treasury:

You seen for a dietrict

north and ecutht
Mr. Taylor:

Yae eir, for a dietrict.

The Secretary of the Treasury:

Have you enyfacte in addi-

tiom to «fea% Mavs been presented by Mr. Vililaafton, Mr.
Mourning ~nd Mr. Stevenson?
Mr. Taylcr:

I think eov kr. Secretary*

I have ec&e figures

E. '*.Taylor

fcer* showing t h . o a p lt a l and the ' orrowing of th* b » i 4 * of
tn l.

t e r r it o r y .

J u » t r ugh_y,

without t c ln * into the d e t a il * .


I will eay thet the district that we laid out


Eorth Carolina, South Carolina,Tile Secretary cf the Treaeury:

That ie the ea&e dietrict

that h*e been described?
Mr. Taylors

Tee, sir, thmmmm that has beer, mentioned.

*ita that dietrict, th* ci i U i of th© r gi nai ban*, epeaking fro® the national banks alens, would be if, 166,000*
Jdepoeite, on th# b«***ie of $f.
The Sacra *arv of the Treasury: What reeourcee «ould the
bank haveT
Mr. Taylor:

Thu resources under this w uld be

j|?#000#000, practically, of vo emaent depoeite,
fife,000,000 r u t r w
sre a«aber^.

depoeite fro* the respective banke that

Th'*t would aive a total of 131,156,000, and

the reserve ot such a bank thet would be required te be
kept ingoli,

*ould b* f 10 ,8 0 0 ,0 0 0 ., leaving for loane

1 *0 ,3 5 0 ,0 0 0 .

*ry of the Treasury:, ie on the assumption

ycu ha e $7,000,000 governsent depoeitsT
ir . Taylor:

Yes sir, now, that bank in th* t s&*»s period




foul A borrow,


ccor tir.g tc thie et**tea.«jnt cf June I4t&,

Ifcli- th«t la tha only one I bad available when I aade uy thife«*
Tha Secretary cf the Treasury:
useful, ia it?
Mr. Taylor:

He air,

Well, th. t le net very

that ia r t very useful.

I nave

anotber one aa of Auguet 9th .
The Secretary cf the Treaeury:

Have y u got the Oct. *let

Mr. Taylor:

I have net the Oat* 21et etatesent^ but I have

cr.v th * is ec ree than Oct. Slat*
The Eecr^tar
Mr* Taylor:

of the Treaeury:

Well l«t ue t*ke th«t one.

All ri*jht, we will take that cne.

Under that

ocn !i tier we wculd have practically the eajre reeourcea,
1104,000,000 capital fret the banka of thie dietriot.
The Comptroller of the Currency:
Mr; Taylor:

Anguat Bth, I think.

Whit date ie th t?
One hundred and four

ailllon capital the n .tlcnal b&nke, one hundred and eightyone thou-and depcaite, 1306,445,000 — the ree.uroea
would be 120,300,000, with a total borrowing of $3^,430,000*
The Seeretary of Agriculture;

Th t ie the national banke

B .C . Taylor


Tee eir.

the U atrict,


How, that 129.000,000 borrowing
■ ..........


I think, it very abnormal•

Secretary of tho Traaaury:

These are borrowings of tho

The national banks only.


Mr. Taylor:

—........................................................... ..........

nati nal banks only7

The Snort tary of th# f r t a n r y :

H^ve you any idea how

*uch additional borrowing thart ia in the district hers
on it.

T««, X havs it hare, if I am ,.ut ay hands

Where the national banks ncrrowed 3€ of thiir

capital, the eta*e banks borrowed 15< cf their ca Ital, so
that will give ycu the ratio.
The Seer: tary of the Treasury:

What does it amount to

ii dollars.
Mr, Taylor:

It aammta, in the state banka, tha saae day

the nation 1 banka borrowed $15,000,000, ths state banka
borrowed $3 4 ,0 0 ^,0 0 0 .
I&e Secretary of the Treasury:

How auoh is the bcrrcwin*

of the etate banke reflected in the borrowing of the national
Hr. Taylor: Very directly, eir.
The Secretary of the Traawury:

Have you any ideal


B.F. Taylor

Mr. Taylor:



I think I car give it to you in an -

in* wnce froa own U c i .
The Secretary of the Trt^aury:
Mr. Taylor;

I sean in the district.

I haven't figured that out accurately, hut

1 can tell you ay experience.



|» :

With ay bank, we borrowed

♦100,000 in lew Tork, $200,000 borrowed, eo you eee
that SOJ& cf what the etate backs borrowed would be borrowed
in thie dietriot.

lew, Mr. Secretary# if all of the etate

banke were to eoae into thie ctncem, I figure there would
♦ill be ample reecurces to take care of the district.
The Secretary of the Treasury:

If every etate bank would

co&eln, you Kean?
Mr. Taylor:

I iidn1t separate thcee that were eligible

and those that were not, but if all of the state banka in this
district were to eoae in and becoae ae&bere of the ro^i^nal
bank, there would be aaple resouross, in ay opinion, to take
care cf the neede of the peak point of borrowing.
The Secretary of the Treasury:
Mr. Taylor:

Yes sir,

Have you the figures on that?

I have thea before me, but didn't

think ycu would want tc bother *«*ith thea.
The Secretary of the Treaeury:

Tou are inc uding all eligi-


ole state banka?
Mr. Taylor:

W eir.

u o
The Secretary of the Treaeury:

Well, then, you figure®

would not be of zuch value.
Mr. Taylor:

Ko elr, they w. uld not be of isueh v l u e .

The Secretary of the Tr.aeury:

Whit le the eeoond choice

ot the Columbia bmkere if thie reglvn&l bank e&uld he loc^t• d in eose other city in the dietrict?



I think Richmond le the unanimous

pinion of the bmnkere of S&itth Carolina*
The Secretary of the Treaeury:

How do you feel about

Mr. Taylor:

We do not bueineee with Atlanta.

It le a hard

thing to get anything over te Atlanta and b*ck in a reason­
able tiae.
The Secretary of the Treasury:

You mean it ie a hard

thing to git eoaething b«ok frcm Atlanta?
Mr. Taylor:
A U lin U .

Yea, eir, hard to get e aething b ok from

For in tanci, you Juet take it thie way, under the

railroad achedulee fro* Columbia to Atlanta, it le two
fhcura ahorter to come to Atlanta thar it ie tc go back. That
1 . Juat aa lllu.trstlon cf ho. the tfelag work, fro* thi. aide.
............... ..
Federal Reserve Bank of St. Louis



H. P .fayIo r


but ws ars not fs*ilar with Atlanta and ws do not do business
this way.

Atlanta is © nsidcrei a wsstsm city, it doss

feutlr.est. with Kor, tucky and Tenr.eeee, out that eide, .aid v.ry
• » * W peroeitaae of the Carolina ^i»lna» 1* dona ia Georgia.
The wholse trend of our buelneee. #c f w a . barking 1. ccnern-

• 3, io northward.

I drn't think we ever to Atl .nta to

The State of Georgia borrowe ten Billion dollire.

South Cii ii lr,» ’ l*e Billion end KOrth Carolirafcur nllllon,
out, of course, w. realise fully tbat th t would have absolute*
ly no effecton the regional bank, that you oculd locate a
14' harletra or East Point or any other place, ar d the rej eouroee wouIS be the ea*e; you ceuld borrow ju t ae w eU fnta
Atlanta ae froa Rlohaond or Coluabla* Savannah or any other
jpoir* in the dietrict, but we feel that the tail facilities
" |,!

h‘ nat>ural tendenoy of travel and w#rv thing else ie

*w*y frc* Atx*rta, as far as ws ars ounc^msd.
T;;c Fscretary of Agricultural
hr. Taylors

How about Savts&aiiT

Veil, Savarnah, eo far ae Columbia iteelf ia

concerned, would be a vary good point.

We oan re..oh thee by

nuaber cf tralne each day, but for the whole dietrict, I
on't think Savannah m Id be near as practicable ae eoce


B. F.Taylor

The Secretary of the Treasury:


The whole trend of business

ar.d the cu tcaary course of buelneee ie

le It, or

north, I meant
Mr. Taylor:

At preeent, but I hare giver thie matter a

great deal of tfccught, and I dclnre thie matter of the trend
of hutireee ie one th t le very complicated, For instance, I
aaked a friend of alne wh ^t was the trend of buelneee, and he
say* It ie the way the o&rav ne move.

Well, that ie vtry

true, hut we are not handling cotton' we are not handling coal
or iron, we are banXsrs and thie ie a hanking proposition
^nd it doesn't fcaXe any difference to us ho* the caravans
move, what we w nt to know ie, ho« the paper movee, which
reprtesnta tcney tc u©.
The Secretary of the Treaeury:

Well, that h*ia relation

to tra ;e m i otmacros, doe an* t it?
Hr. Taylor:

If the balsnce of trade le in fivor of the

south, it se&as to ae the paper movse scut;;, it doesn’ t nove

The money movee south.

way, hut it a ay net

Th© paper aovee along that

by the tail rcuts.

l t eh ip cotton

from Savannah to Tlvsrpocl, hut we do not aend cur mmil doc­
uments by ship.

Eo the trend of busines*., the trend of

do counts and the trend of the movement of aonsy ie entirely


B .F . Taylor


different fro* the trend cf the aoveaent of ccaaGdltlee, in
• f opinion, m i the question is a question of banking.


trand of trad* ie tha way tha greateat vcluw cf aoney aovee.
T&* Becretary of Agricultural

fh t wculd be ycur

attitude towarde Baltimore?
Mr. Tayl©r:

fa ara vary friendly toward# Baltimore and

I thinkthey could eerwe cur needs aa wall aa Bicfcaond, except
they are a few h ura difference in tiee.
Th« Secretary of Agriculture:

Would it eten&then the die*

trict to irclude Maryland?

Ur. Yaylcr:

I think it wouli.

At leaet the Weetern part

of Maryland. Z haven't been able to figure out a dietrict,
Mr. Secretary, for Pen; sylvan 1a— I dent know whether you
^ntleaen hare fitured m e fer that or not — without in~

' in& at leaet tha eastern part of Maryland.
The Secretary of tha Treaeury:
The Secret*ry cf Agriculture:

We th mk y u, Mr. Taylor.
Do you want tc file your

figure at
Mr. Taylor:

If yru want ae tc file theik. Mr. ftaott aaked

ae to etate tc yov that he waa detained ir. Waehington on aecount of a aeetin ; of the Vational Chaaber of C ; aerce in which

B. F. Taylor


he is tornt kind of an officer.

T^e Secretary of Agriculture:

Give your name and what you

repreeent, Mr. Wataon.
Mr* Vfcteeitf

K. J . Watson, CoMK&aaioner of Agriculture

and Ceii*L@rco and Industries of South Carolina.
The Sscrstary of Agricultural

Hava you any additional

information on thi a point?
Mr. — taons

Gentle? an, as far as I an. concerned, I am not

h ' r 3 ai s banker.

I at: here vary largely representing the

turing and basic agricultural inter sets of isy iiu..e li&te

eection cf the etate.

The natter I want to call your atten-

tc ia t. ' - i.ost of the evidence and discussion seec&s to
deal with this entire satter fro® the standpoint of luo&l en­

In u y humble Judgment, we ought to look at

this m tte r from a larger view point, ae hae been mentioned
er3 a great many U s t « , ae the trend of trade, and I have
tried, coiuing over here with m e

oom ittce, to lock at thla

matter with a wie^-to the opening of the Pana&a
Ti e Secretary ofAgri cultures


That has followed us all the


S. J . Wfctscn


*ay a round froa Boaters snJ la pursuing us still.
Mr. Tat sen:

X just mnted to su&geet that if you deairs

i t , X would ask the privilege of filing & brief later on on
that particular subject; not f i m a standpoint ef sentiment;
but froia a standpoint of pure hard figures as representing the
ootton belt territory ef ths Atlantic Coast.
an* south region.

We want a north

Cotton is cur principal product, sni it is

a proluct that amounts to so tuch to the nation at large.
A government ~ap X had the other day, showing ths amount of
cotton consumed an! turned into a»nufaotured products, showed
that South Carolina, Worth Carolina end Georgia are ths
three states in the South that manufacture m ire than 50C#00C
bales of cotton annually*
The Secretary of the Treasury:
haw* you

We would be very

glad tc

lie your bvief, Mr. Fatecn*

Mr. Wat non:

X thank you, sir, X will be fclad to do so. lew,

we want to get the banking situation so arranged that we are
not compelled absolutely to ge te Vew Tcrk —
The Secretary of Agriculture:
Jfir. Watson:

Well, this bill erranges that*

We believe that with the woluBie of this


down here in this territory it amounts*ftnough to give
recognition to thi® portion ef the country.

low, so far as


..... I

K. J . mitacm


the territory it concerned, I would like to call your atfcention to a fact a):own by tht 1910 flgurtt that you will fin V
I think it waa issued by your department, Hr, «atsc»— inths
cotton crop report for 1910.

The productive power of tht

states wt ure asking to be put into thia territory runt up
to tha annual


of |61^tl#3f000.00

exclusive of live otocka

o f

agricultural product f

forth Carolina now it conaussina

SQC,CG0 Sales of cotton and South Carolina it eon tuning prao*
tioally 800,000 bales, ani wt art sen ling tut f n t that terri
tory to-ethlng over two Uiillion bales of exports in cotton*
Thst a three states, therefore, are in a position and ought
to be, in

Julgi ent, kept together*

Bit district is ar­

ranged on a north and south basis, largely an the scatter of
tranaportatlcn; tha transportation lines running north anl
Ilia Seeretary of the Treasury:
Mr* Watson:

Ve are familiar with that*

I woult like to call your attention further

to the fact that hat been brought tut here by other witnes^s*
for the state of South Carolina this filming, that is, fro&
the standpoint of Atlanta, it is almost impossible tc get
acroee between the two aain north ani south lireet linea*
one laailng to lew Orleans ani tha other leading to Florida*

S. J . Tat son


One reason we are trying to embrace Columbia is thie, that
the port of Charleston la necessarily going to be used
sooner or later#

The railroad world le looking to it new*

It le only IBS miles away from Columbia, and we get good red),
connection and m i l facilities,

low, those are the princijpaa

Iroints I V ink worthy of coral leratlon.

Aa to the rest of

the cour.try, « * take the view that I f xe could sa-.gest
to you a ja-aotioal co&posit* district, starting with the
coast line, that we are concerned principally and prlntrily
with that, with & flaw to the development that is coining in
future, and net entirely that ©f the present - a condition** I
The Secretary of Agriculture:
Ur * Wat iieni

f il l you file your brief?

I will be glad to*

ah i*iq:ul s f A m m r of
Lr. Taylcrt


f . tailor,

I Juat want to add a worl to s r testimony thefcb

I f thie eeetien of Georgia, that section ef Georgia which is
iuore tributary to South Carolina and Bichosond, *ere included
in the district which is proposed, with Au^ueta and Savannah
following the trunl llnee down to Florida, it would very &uch
i&pr< ve H e financial stanUng and financial statement of the
dietriot in question, but that would throw this, the largest


B. F. Taylor


borrowing p&rt, ten million dollars of borrowing, Into one
U s t r io l; whether that would be advisable or not, we have not
figure! out*

T\9 Secretary of th# Treasury:

You would rather unload that

on aoi e one else?
ifr. T '.ylor:

Ws woul! rather unload that on Chattanoc a*

Mr* St even eon: I would like the privilege of withdrawing
thie brief of Mr* WilllH&son* e, beeauee he arill want to file
a perfected brief aasd a good deal of the natter that ie
i ri ,tcn ir. hare he will hare to have.
T e Secretary of the Treasury:

Tou aay withlraw it, but

we ask that it be submitted lst^r in triplicate, and by
the flret.o f March.

J . F* Gray


T e Secretary of the Treasury:

You ®ay state your nsyaa*

real lence imi occupation.
Mr. Cray:

My naiie is Joseph F. Gray.

For the purpose of

thie hearing I represent the Savannah Clearing Houae Asaociation ani the Savannah Chaatbsr of Co&r eree, the business m
citiser-s of S‘'vanna^ generally•

I should like to etate* Mr. Chaiman and gentle&en*
for the >esiefAt of the reoor 1 and for your infor*~aticn,
that I htvt had about 23 years of trn'saportatien experience
in this State, cast of that ti&e in an executive position*
and I hair. beam on. of th. Railroad S o u l sal on era of this
atr.te, ar ! h to hnd ocoaaion to stu
iU tlo ns in thie state

th . econcnic ccrt—

nl in this section.

I do not

pose here as any DocSfcr of Philosophy, Econotay, or any
Professor of Econccice, but 1 think I have a fairly correct
general ilea of the economic and cot* ercial conditions of
thie section*
How I have act, as it were, on the other side cf the

table In oaso. of this MTt »o often that I bsliuT. I know
Juot What you g a n t lm n want at th. outset.

You M u l l ilk*

J . F. Gray


to have a


state tha main point# of hi* argument, and I

«*u gainy; to *tat* that now, ani say to you that this ar^u*.ent i * builded logically along theas lines, an! that ia
this, I mn join* to endeavor to shot* that th* economic
necessities ani th* economic opportunities and possibilities
of th* acutheast section deuani thst thi* Feltral Bank b*
loomtei ir the southeast.

I a & going to try tc shot* you in

the second place that Georgia, being in the centre of the
southeast territory, her soonoric necessities, re^uire&.ente
an i possibilities and opportunitie# being the greatest,
entitle Coorgia to hare this Federal Beserve Bank*
1 q £0 in& to endeavor to show

you in a*?e thirl place

that at the port of Sarsmah the larger ro to e of the basic
cccc erco of this section funnel isos.

X &*a going to show you

that Savannah ae a port handled in and out ir ports and
exports and other basic con.. erco, i f you please, of greater
volume than any other part on the South Atlantic, ana as a
aatter of fact, tore than i^cat or then combined.
I want to show you finally that 8av&nnah aotually
finances tc a larger extent a larger relume of that baeic
oowsroo than >ny ot> ar pert in the southeast eaction or anjr
other city lit the southeast sestisn*

J. F. Gray


lew, Mr. C h a i m a , that it a r entire argument, and I
want to nay right new that I as th# only spe&eewacn for

w® have net cost# here loa led with fact# #r

figure# er andor##fei#nts.

Th# gentleman ah© will fellow m


have no speeches, th#y *yr# siirply here to answer any ^sest*
ion# that you &ay aak

wiring on hank#.

X aratct her# ae

a banker but more aa a etulent of the economic cor liticm# in
thi# eectloa,

Mr. tan#, th# Precident of th# Citiaena and

cat? orn Bnofc# will follow me tai*ediat#ly, and i f you haw#
sny * u##tiors a# to hanking, plea#® iir®ot th m to fetaw


you have any ^u^stian# o th# general #ubJ#ot, I will sti leaver
to a *m m r the •
How w i t h t h a t |? r #11x4. n a r y c t e t a u c n t —
TNI Secretary of Agriculture:

Could you shew us th# dis­

trict you haw# in aind, before you begin*
Th# Secretary of th# Treasury:
Mr. Cray*

B M a you a


?##, air, X haw# a ®a* here and X want# I to &ak

you whether you eared to haw# #oia# of the ndnor oonaideration!
in thi# whole subject Usouse#! befor# thie fiip i# introiu c e d «
Th# Secretary of th# Treasury:

We would rather have the

wap first, because that i# th# concrete thing to which ycu

J . F. Gray


arm ad ir*j* .4ng youraalf,

Mr» Otuyt


show* in a £«neral v m th* territory

* • hav* sal acted, comprising th* 3 tat** of South Carolina,

W*rth Carol inn, Georgia, fieri 4a ani Alabaaa.

It ha.* ba«t

au ££***•£ that south *a*t Term*****, including th* citi@* of
Chattanooga ani Inoxvill*, sight properly b* included la
this territory*

Ifcit w* unl*r*tand it i * 4s*lratils

t# r*©og~

n i* * *tat* U n * * ani boundari#* wherever it i# po**ibl* to
i# *o.

Th* map *hloh you hair® b*f*r* you shows

jttrtatiofi f*eiX ltle*, rail and « H « r ,

th* trana*

I will n*t go into

that in lotail.
TH* Secretary of t'^e Treasury*

Mr. Gray:

f#»# sir.

We are faoillar with that*

I *l|ht mil ymr attention to Just

on* little point her*, th* im ^mr of port* in th* Unit*-!
King ton and Continental murope to which mrsummk ha* direct
sailing* ©f freight *hip*.

Z io not m a l it i * worth A i l * |

to disou** thi* point t*h*th*r two bank* doing bu*ine*s with on*
another nr* SC a^il** a^art or 300 mlXm apart.

In the «att«*

of aaii trnnspcrtation it i * juat an overnight proposition,
an4 I aa sutMtting figures to ahow you on that ba*i*
Savannah i * in ready &oo*s* and oofc^ynioatifin with th* antir*
territory, and a* a ssatt*r of f&ot, froa a practical etani*

J . T. Gray



point, «« oan aanr. th* territory Ju»t about aa easy a* airy
other city In it*

ittt not tttR nm^uMTf tor u# to itftti a y we have

etlooted that tec tier.

On# of tht reaaone 1# that in order

to c«t m section in thie eouthe^at territory# you have
to have several atate#,


The other reason i», that in this

section you get th© minlmm capital! anti on re*|uire& by law
for a Feloral banlu

Tht combine! capital an! surplut of the

national bania in that section le about #06,000,000, eix per
cent of ahlch woultl give you the z*£ntmsm of #4*000*000
capitalisation re^uire4 by the law.

My information ia that

tht total resources* capital ani surplus ani d e c e its of the
ititt banxt of Georgia* Florida, Alabaiaa* Hortb and South
Carolina, art about $4^0*006*000#
Right here* Hr. C airman ani gentlemen, the consensus
of opinion to far at I have bean able to gather it ammg the


ban* ere of thia section ia that eoener or later all of the
S iB
etate banka art tewing lw# because of the #u;re^e ^ ivantagt
to thtte to be taken care of in time# of etrtan.
Bearing in isinA always that thie entire eoutheaet it
lietinctively agricultural territory* tht iistriot that wt
havt selected ie just about a# wall balanced a territory at

J . T. Gray


you couli got*

That lo you a e jn byuall

tl a Controller of the Currenoy:
M M M fdt
Mr. Orey:

Well, 1 mean that it hae in it as graet a

iety of inluairle# a# you could got.

The Cox stroller of tho Currency:


Tou have th# agrloul-

Tou lo not raf$r to the

time tho aoney la needo4?
Mr* Gray?

That la a banking gueation, ani 1 am not going

to unlertafce to ane*«r banking qpeotlono*

Vo have an ©opart

Tha Co s t r o ll or of Iho Currency:

But that io a right

largo part of tho «*h©le f rope ei tie*# ia it nott
Lir* Gray:

Too, it ia*

lhat I moan 1a in thia g>oiw t

P l a t u up hero you havo tho cotton Mill inluatry •*£ the
ooOttnacal aeal inluatriea and tha iron induotry of jUaba**—
Tho Secretary of th© Treaeury:

W# are pretty familiar with

that, Mr. Cray, i f you will ©*eu*e na, for eparring you tho
nooeeaity of covering oli grounl, *e have had that Alvarsi-

fioatien brought out by other witneeaea, a*i,l w# have all
t' roe lira t in it, *o *e are all familiar wits- it.



J . F. Gray


Mr* Gr ./:

Yes. I will introduce here an ether
u p is I n U n l d to dhow the territory we have
the o&ele eom^eroe originates.

map. Y*&e
selected where

Far instance* belcm the red

line on thie map* I will not give yeu the linee* it ie
apparent here* ie cotton and below thie bl&ek line ie the
itaval etoree and below the blue line ie the l*lp&er.
low it ie needless for me to repeat «hat so *an$; have
eaid here* that the trsnd er m m t c i in this entire section
is towards the nerth m i east or abroad through the porta.
Speaking generally ef the relative importance of the South
Atlantic * orta —
The Comptroller of the Currency:

Does that rafer to

Alabama too?
Mr. Drays


information on the subject of A1 abaca is not

as oomplete its it is on the other states.

I say it is w®

impraeaion, or rather shat I think ab<«iut it that the trend of
co**.arce even in Alabama is north ani oast and foreign
through the ports* but that eanaerce ie divided,

the Controller of th® Currwcy:
Mr. Cray:

Just one minute.

Is it not largely weatt

I say be mistaken as te

Alabama* but I want to give you ir$ impression,

the oecmiTM)

of Al&basa 1© divided with the ports of Hew Orleans, Mobile,


O’. F . Gray

Vcn-.vicule., 3 *


*- i Morfcli. on the othur ai Ss. *«»*

I lo not know Juat to ehat extent the ooiu-oroe of Alabftsa
n>OT9* through th # South Atlantic iorte, but I do inow froa
i: y 4raetical e*iiorl«ws« in transportation there i» on* thing*
cotton, t h a t r o Y 9» froa Alabaaa through saranrah, frost euoh
point* aa Montgomery, Opelika and Anlalueia.
Th* Oewptroller of the Currency:

J aa* apeaking of coal

*n ! iron.
U r. Orayi

Tw» m y be right aa te tfcat mrtmmt of coal

ani iron being to th* peat.
tc M n tie n

In that connection I would U i »

ie t et ttT |M * of eteal rail* n<©Tine frofc Eir..inr

hat to South A f r i c a t! rcu.;h Savannah.
Th* Secretary of A. riculture*

What p»rt of Vi* ocwj-arcc ejf

thle an tire aeotion ia foreign cotaerceT
Ur. Cray:

I « i l i treat that ,ueation a little bit l s t «


i f you e ili wait.
T a Beerstary*/
Ur. Gray:



3, eaklr.j generally of tro r#l«tiTe Mac srciul

in.ertance of Georgia, of «folch Savannah la the great sea­
port, ae oeapared with the other four atatea in the aection
aoloctet, suffice ia to eay hers, that Georgia in all of
t^e folio*!-* particulars, aa* ely, *<apaar* milee of area,







population, Kileage of rallreate, factory capital, factory
pro tocte, sinera! products, fans capital an i farm produote,
exceed each and every

or #

of the at*tea WfcflHO, with the

exception of iU.neral product e, in which Alabama }eade
because of her deposit* of coal and iron ore, ar i ef factory
capital and products, in which Georgia yield* the palm to
Borth Carolina.
I have analysed tve pretaote in oaoh one of those
five atatea# and I will net trouble you wit!* that as%*ly*is.
X have stated what thie eemar^e eonslots ef in thie brief*
I have enleavarsd to ehow you *hat the trend of that oewaarofr
ie .

Generally speaking, atrieulture is the chief iaduetry

and the larger part of the population ie enraged in agricul­
ture, and the trand of buelneee le, ss I have stated, to the
north and east aftd abroad through the porta*

So X w x H not

give you the details for Worth Carolina, South Carolina,
Fieri 1a or Alabama*

I *o want to give you a few details for

I want to eay with retard to forth Carolina ports—

The faarotary ef the treasury *•

Tee ai*ht *u*~ari»e the

important points*
Mr. Qr^yt

Ye<i» 1 e» !oin?$ that ae 1 &o A l ^ S *


Wiliaincton nor Sarffelk are s e p a r able *it'ti Savannah ia


... . " -


J . T. Gray


Charleston io%& not be*/in to oo^pare with

Savannah aj a port.

W )- regari to Florida* there are one
it ?

or two thing* I want to toil you.

In th® fir at place, tht

exports of any or all cf tht porta of Florida are conaidarably ieae than these of Savannah*
The Secretary of the Treasury*

Wliat are the total oxports

of Savannah?
Mr. Gray: $104*GGG*0J0.

I util &et to that in a minute.

With regard to Florida* it now pro luces a ore naval »tores
than any other state in this section; as you <*ill probably
re^e^ber, the industry started in Korth Carolina m i moved
southnar 1.

But notwithstanding the fact that Florida

pro tuoee thie naval stores crop, it is marketed and it is
fin a m «t in Savannah* to the extent of about $1^*500*000.
The Comptroller of the Currency:

What per oent would that

probably bet
Mr. Gray:

I think the total naval stores is about

#33*000*000; about one-third, i f y#u please,

fhe reason why

Savannah finances and uarkete the naval stores* notwitlistanling
it is grotm in another state* ie that: We are the primary
naval stores market cf the world.

We fix the prioes on

naval stores fer the entire world. Savannah furnishes the


J . F . Grey


oocan torsjMfii to r*ove the crop. It ia an unprofitable propo­
sition to ship solid cargoes of naval otcree, because the
ocean rat* woul

be too

Cotton t c ~

-J sr r&te,

and t^erefore the logical Iblwi to Ao ia to load >our vessel
partly with ootton and fill out with naval stores, to get
the benefit of the lo^er rate on your naval stores, ani as
Savornah is the second cotton port in the Unite! States,
she furnishes the tonnage for the ootton ani Aaoidsnta^y tor
the naval stores, and therefore oontrols ani f I tw pv *# Ifc#


export* of naval stores, notwithstanding the laajor production
is in the neighboring state of Florida.
The Comptroller of the Currency:

As cotton takes a higher

rate than naval stores, Why ^ould it not be logical to send
the high priced cot*, o 11ty down tomrde the low priced
cot, odity bearing the lowest freight rate, naval stores?
Mr* Grays

State that again, Mr. Williams, please.

Controller o f the Currency:


cotton a e l a n d s a

higher freight rate than naval store*, shy s o u ld it not be
better to send the ootten do m to F e m a n l i m i n s t e a d of the
naval store* up to Savannah?
Mr* Gray:

I aok*WVlXl• i* not a ootton market* Jao*aon»

J* ?• Gray


Till#*# pro!uotion of oottcn —
TV a Secretary of tha Treasury:
Hr. Orny;


r «li, n t n

flort ’a*s prohuticn is

largely in 3sa IsXani ootton. Mil it ia not ons, two, three,
aa cottar*d to tha uplani crop ahioh ia tributary to tha Port
of Sararnah.

I think tfiat ana era your question.

juat a banking proposition.

If Jacksonville were She ootton

port, tha question might ba in orier.

j on ths stan’


It ia

Tha gentleman who

trim Florida yeateriay was a Eighty good

Th# only objection I had to his* w m that he aeet^ei

to be book#! up to Atlanta.

Ho p l a i n s ! the trend of

oe®*-erce from Fieri ia*

I 3ii&ply w i t to &*^ke thi# point:

The peculiar outline

c. Florida, it i« peninsular in Cortu, which cor fines l a o i s a ^
Tille* a activity largely to the etate of Florida, and
8&vant*h"# location enables her to serve Floriia better than
any other pcint.

have answered the *#i@«tion here about the treni of

cw.*v#irce free Alabama,

There ie no oocaeien for By going

into that again*
.,ow ae to Georgia, I want you to lieten to thia.


the five jtataa Savannah has aelecte.l aa har fsieral Reserve

............................_ _ _ .... ...............



J . F. Gray

Bank o a c tio n , I reeerrtd Geo rg ia for iJUouasion last,

because o f her paramount importance froi* practically every
atan i p o m t free. which thia entire «*ue.jtion can be oonaidare 1.
Agriculture ia Georgia1a principal induatry, and employing
thrai>-fifths of her population, and cotton ia her chief cro#*
The Secreta ry of the T rea eu ry :

We are very familiar with

thoae s t a t i s t i c s , Mr. Gray.
M r. Gray:

Very w a l l .

L e ) ua ate i f

there is anything

a p e c ia l i n there that I want to bring cut.

While it la true

that a part of the ccwa^erce o f G eo rgia Korea to and froa the
X o r t h and Zxmt and abcoad t'rough the ports of Horfolk and

C' nr le a ton, the overwhelming part o f it goes through the port
o f Savannah.
The Secretary o f A g r ic u lt u r e :
M r . G ray :


Where la i t h a n d le d , abroad?

and a la r g e part to the eastern Bdlla.

Th# S ecretary of A g r ic u lt u r e :

What percentage o f the

t r a d s of t h ia w hole a action i s exported?
M r. Cray:

O f the b ia i c coiar^erce?

Tho S ecretary of A g r ic u lt u r e :

I a e a n the to ta l e©cr.erce.

t o h a r e to co n sid e r the w ho le.
T h t S e creta ry o f the T re a s u ry :

Domestic and fo r e ig n

J . T. Cray


The Seoretary of Agricultures

Ze not the export foreign


trail of thi a country negligible compared with the doKeetleS
Mr. Gray:

I wouli anawer that in thi a way, and I have it

covered a little further down, if you will pandit


to get

to it.
The Secretary of Agriculture:

I m trying to get youtt

Ur. Grays

Yei, I will get there in a minute.

in my ay atea sir J want to get it out.

turn that

I have this

I want to aay right

export toueineea ie |104,0OO,0O0.


gives her th» aeoond rank in all the porte on the Atlantia*
ehe ao®e® next to He* York, and aiLong the entire pert® of the
United Statea her rank la fourth.
8peaking about ootton, it sight intereat you all to
know that we get cotton not only from Georgia, Florida,
Alabama, forth and South Carolina, but from Arkansas,
Oklahoma, Miesissippi, Tennessee, and even aa far weat aa

I had occasion te gat that for th# purpose of thie

brief a few lay a age.
The Secretary of Agriculture:

Bow ©any balee do you

Mr. Grays

The reoeipta are about 2 ,5 0 0 ,0 0 0 balee, in round


J • ?• Gray

The Secretary or Agriculture:

What percentage of th*

ootton produced in thee a atatea ia ahipped abroad?
Mr. Gray!

I do not know, Mr. Secretary, I have not got thfct
Of tha entire eecticn selected t y Savannah

aa there;,ion to ba earvod by a Federal Reaerve Bank, with
hea 1quarter a at Savannah, Qoorgia ia the ao*»t iiaportant, not
only froa tho standpoint of baalc coaaierce, but practically
in every other reepect.

Savannah aa a port handlee for tho

a action a larger volume not only of tho basic ooaLcroe, cut
coso/orco of every other kind, than any ether port that aervea
tho aoction, and really sore than i.oat of the other porta
Savannah# through her banka, her cotton

an! naval

atorea faotora, her lumber aarchanta, h r fertiliser jsanufaoturera and her buaineja aen generally, ioee more than
any other port that aervea the section, or than any other
individual city in the aoction, to finance the u.a&ing m i
markoting of tho baeio cosaer.o of tho eecticn .
The s e c tio n isay be aakod here, to ahat extent loea
Javannah finance the baeic oomorco of thia aoction.



J . f. Oray

question is certainly a pertinent on#.


Th# financing of

cotton, luwber ani naval stores *ml other oo^&erc# — export
an! loi^atic, and Import#, pa#aing through th# port of
3*vrarmah— In an! out — 1# Ion# tn ao m&ny varied way# —
by th# bank# in <jhip~3nt# of currenoy and loan# to interior
bank# and in livi tu&la, in purchases and sales of domestic
and foreign exchange, loan# to factor# (cotton, naval ©tore#
and lumber) and fertiliser mam faotunr#; and by the factor#
in oapital invested and in isoney borrowed which i# advanced
to the protucer#, and by exporter# through credit #stabii#h#d
for them in the Interior by the Savannah ban*#, or through
Ioann or banking facilities,

and by the fertiliser L&nuf&cti**

rer# ir capital inveated and in the value of annual output,
which is #old to the prolucera on time to be paid for when
tbe crop ia c^urketed — that we have found it impossible
to secure detailed atatietio# without duplication or posaibly
triplication, covering the amount of aoney turned over
annually in each class of businsa# or in each of ths wany
variel way# in which th# business is actually handled and

Besites, w# hav# n#v#r had occasion, except for

the purpos## of the present hearing, te need statistic# of


J . 7. Gray

thie character.

We are in # position, htwover, to laterime

with approxiniate accuracy, th# extant to which Savannah
fin&nc## th# b ,ic cot- eru# of tfci# section.
SftmrmaJi1# cotton receipt#, uaing th# figure# for
X©11-13 (X 9 M being a short crop year) w#r# *,3e*,l£ a belt®.
T > valu# of this cotton at thi# year*a price#, approxi­
mately tfQ.OG a bnl«, i# in round figure# $X££,C\)Q,0u-O. W#
know that Savannah firanccd either with actual ca#h or cr#iit
or o^erw i##, i*o#t of th# j^on#y n##i#l to iaa&# and uark#t
thi# cotton.
Savannah1# f#rtiXiaer iLanufacturcr# — to #ay nothing
ef Savannah*# bank# or cotton factor# or #*i,ortera - da m r *
than any interior banit or city, or probably csany of th#&
combined, to finane# th# cotton crop.
Th# Secretary of Agriculture*

m a t ar# the re#ourc«# of

th# Savannah bank#?
Mr. Ormyt

X will *#k Mr. Lane t# ana»#r that ^u##tion.

X understand in a general way —
Mr. X*&n#s

#4,C 0,000 capital ani#urjlu».

Tv# Secretary ef A ri culture j

Ani yet you #ay th#y

financed $166,000,000.
Mr. Grays

I #ay we flmnc#d aiare of that than any other

J . T. Cray



port or oi%y in % e southeast territory*
The Secretary of Agricultural

Including tho proSuction of

Mr. Gray:



Tho Secretary of Agriculture:

loo *hat percentage of it

do you finaneot
Mr, Gray:

1 hare alreaiy explained, Mr, Secretary, that

on account of tho sany varied waye 1b which
Tho Secretary of Agriculture*


Well* these little details,

you know, are vary important.
The Secretary of the Treasury:

1 understood


wae going to appear*
Mr, Grayi


The Secretary of the Treasury*

Su* pea e you proceed, and

we can ^et that inf o r a tio n fro© him*
Mr. Gray:

I as reliably inf ©mod t^at Savarmah Manufacture a

more fertilisers than any port or city in the south, hut mre
fertilisers than are tanufaotured at any other one point in
the v ori «.
The Comptroller of the Currency:

Tou n.ean to say it manu­

factures more than Charleston!
ter. Gray:


IX have not the figures, but I aa informed


J. F. Gray


that l i oorrtcta

T >sre m a a t i n

u* in fertilisers

thtn Charleston txcoeiei


Tht ^g^ragatt o&paoity o f her ftrtiliaer faotorit© it
approxiisattly 450*000 tent annually, whioh at $35*00 p«r ton
give® a value of $ 1 1 ,^ 0 ,0 0 0 — vary largt figure© ahen it
it ocnai iorel that tht total exptniiturea for f©rtili&er©
in tht five state© c f G e o r g i a , South Carolina, Horth Carolina
Aiabaua ani Flori da aggregate about J68,000,000.
Savannah f u m i t h t ©

fertilisers used

A*, aro ntly,

t n i finance© aor© than ont-aixth o f tht

In ths entire section, an! these figures le

not inoluie large imports of fertilisere that wove tvgrou^h
the pert ef Savannah lin o t to interior manufnoturere*
As nearly ae we oan ascertain it , the value of the
naval etoree orop which savannah fin a n c e s annually is about
# U ,5 0 & ,0 0 0 ~

striking figuree tihen taken into ooneidsratien

with the fact that the aff'.regate naval etoree production of
the five statee o f Borth Carolina, South Carolina, Georgia,
n .w —
fin a n ce©

Florida ie a littlo o*er # 38,000,000.


th e re fo re ovor ona- thirJ of the naval ©tore© crop

o f t h t ©outheadte
Tht purcha©©© o f

loi&«©tio a n i fo r e ig n txohange© by

S av an na* banJte ng,„rtgat© about

0 ,0 0 0 ,COG a n n u a lly .

J. ?. Gray

How I r . ChairMa ani gentlemen, I && going to ask you
to listen to this, beoaus* fcere is the moat important argu­
ment X have £©t.
Ths Most satisfactory and conclusive way, bevsever,
of determining ths extent to which Savannah finances the
gee- «r e of thie section is* to goneider her bank olaar.ngs.
In this connection, it should be uni r-jtood that in arriving
at the figuree given as ths bank ©1 earing* of Savannah,
at this time —
T • Secretary ©

the Treasury:

Let me suggest thi*. Thoie

bonk cla&rlnue are vary fallacious, and unless you are pre­
pared t© eub&it t* question and an analysis ef that, you had
better leave it out.
Mr. Grays

Mr. Lane ie rifht here.

Tne Secretary ©f the Treasury*

Suppose you let him deal

with it .
Mr. Cray:

Let me Just state the amount of it.

The 3ecrst£jry ©f the Treasury:

Because we do not **ant t©

duplicate this ground,ani the time is pretty eh©rt and we
have a muafeer ef ether gentlemen t© hear.


H r . Orayj

w .1 1 ,

t h . bank cl M ir in g * a r « $ a a o ,o ;K .,S i a ,


l r o lu ’in^ out o f town i t am. i t i a $ 8 0 ^ , 0 0 0 , 0 0 0 . Mil U r . t » " t


J . F. Gray

will give you th® rest of it.


Do you care to hoar about

a branch bankt
Tie Secretary of Agriculture:

Do you oaro to advocate one

for Savannath?
Mr. Gray:


All we Have to say abaut that la this.

Tho question hao often boon a eked whether, und*r tho theory if
thio law, with all thooo banke coordinated with one another

and tho strength of one being tho strength of all, whether a
branoh bank which has the m m power ef initiative, discretion
and decision that the Federal Bonk has, would oat isf act o n ly
serve us.

I f that hypothesis be correct, then the answer is

contained in the ^ueation, it would.

But there has been a

recurrent %uestion with us as to what the branch cam* would

do or could do, and what its authority wcul 1 be.
about the whole thing in this Tray..

We felt

We felt like asking you

thia sort pf a question, vshere would you locate a isain hydro­
electric power plant?

Would you not locate this plant at a

point on the stream where the banks oaae closely together,
forming a funr.el, as it were?

T te Secretary of the Treasury:

Well, we do not think the

analogy ia good,
E r. Gray:

Don«t you?

You might put it thia way* Suppose


J . F . Gray


you hare an independent country with th i a listriot, suppose
t) e point of iiiaiinent invasion, re will iay, ie at Savannah,
Are you going to put it in the centre of the territory simply
beeauee of centrality of location or where the pressure ia
the strongest?
The Secretary of the Treaeury?

We eay we do not think the

analogy applies.
Mr. Gray:

Tell now, answering the question of the Secrttary

of Agriculture, the point aoad » that relatively epeafclBg the
foreign coi.ii.erce of the southeast should not be given aa u&ich
weight in your conaid ration of thie matter aa the purely
loaestio c x *roe, I have no way of determining juat how the
o *),
purely ioneetio coi^roeree compares with the aggregate of
foreign oossserat.

I m y be siietaken, but I think ao far as

baelo oooaroe ia concerned, cotton, lumber ani naval atorea,
the aggregate value of foreign businase will exceed that
of do..antic business.

B*t be that a * it m y , it ia all the

• w e to the pro lucers of thJU aecticn whether it be dorueatlc
ooiac.erce or fcreicn oeas..eroo, it la all financed practically
in the M M


I mu not here to eay that the purely dooeetle
cji. ace, baa a t on a*nuf&oturlng# Jobbing, retailing, and


J. F. Cray


•o forth, lots not r«^uir« large am# ef »eney, but it lo##
not require that money in th# #auu# m y a# th# bsusio ceBaeree,
which oempriaes largely cotton, naval stores and lumber*Th#
aanufacturer, th# wholesaler or th# retailer 1# in a position
tc ieter. in#

is financial nee 1# well in advance.

T ea#

rnseds or# more or !•# # stable and continuous ani uniform.
Cot ten however, I# a oaeh orop.

It 1# oaih from th# tin*# it

l#ave# the producer until it get# to the eastern mill# or aoro
th# Atlantic,

When it begin# to s&ove —

Tha Secretary cf Agricultural

* • are entirely fsmiliar

with that.
Mr. Gray:


All right, Sir.

I fcight i-ertion here

that Ssvannah finie it i# not infrequent that she has to
handle cotton draft# of #1,500,000 a day during th# season.
It i# not an infrequent occurrence that her barute have to
wire Itv York fro® lay to lay to place vast su*s to th#ir
ora lit

i th which to i^nre th# orop.

The naval etore# orop i# practically a cash crop,
i *
between the factors m l producer# ant between the factor# and
th# exporter#.
T e Secretary of the Treasury:

You say a banker will b#

here to clear up #0©# of th### point#?


J . F. Gray

H r . Gray: Yee.


Juet t o repeat, there sure on* or ta o

thing* l *4ghi **mt to cover.

Mr. Will lame aeked a ^eetion

yeetcriay with regard to forth C&rolina, whether a city, my
up in North Carolina, would object to being cor.raotel with a
tank south of it or weull rather have a connection with a
bank north of it .

I hnve been in:preaeei with thie idt*v—

Tha Secretary of the Treasury*

You may file that ae an

Hr. Gray*

I am going to ask the privilege of perfecting

that brief an I filing t ^ree oopiee ef it.

In &newer to ISr.

W llliac*' <*ie»tior., I hare been ixupreeeed with thie fact,
that you were oor.frorted with * condition and not with a
th.cry m l that it 1 . going to ba i:»poaaible for you anywhere
in thia country to eatablieh aFsderal Bank region and at the
aaue tlma preusnre throughout that region what you oali the

trend of financial transactions.

In ether werde, you are

going to hava to do the vary beat you can do with thie
propoaitlon, and a* 1 a.a i t , thie la what you are going to
do with it , in a practical way.

You are going Jo piok your

aaotien and find out what part of that aoction or in what
part of it tha eoonosdo necessities and ippartunltlee are
tha graataat, and you are going to find out what port or


J . F. Gray

wh& t city fin&no** to tho largest axtont the T o l m *

of th*

oosstorot of that aection, and th®n you are going to put that
bank there, and you are going to eay to that aaction in the
extreme north, Oentlenen, wa hat a handled thie case in
aosoriance with tha law ani tha eoonocsic neceseitiea of it,
ani we have dona tha vary hast wa can and hera ia cur daalal#*
and your deoiaion will ba accepted graoefully and cheerfully.

How there ia Juat one other thought.
want to

aek ise what m eeoond choice ie.

I imagine you
I i n l i n e that

siueation haa been aekeJ, and by the way, I he** r w i the
otano -raphic repcrte of the hearing in »<uthlngton, Baltimore

and Hew Tork, and I imagine you have gotten a greal deal of
eoueeaent from that ^ e 3 tion all the way

to the Peoifio and baok again.


the Atlantic

I notice ac-a of them mve

dodged it —
The Seoretary ef the Treasury j We have not intended to sat
Hr. Orays

We hare been trying to get some facte.
I am going to anewer that ^uaatior. froa t>ia

I think I hare a logical anewer to it , a logical

anewer baeet on econooio facta.

I eay to you now, you hare

got to have on*>f theee federal Banke in the southeaet

How aeauiolng that that haa been proven, the neat


J . P. $ray.

question is where are you g:ing to locate the bank.
ia In tho centre of the southeast territory.


Her economic

necessities end opportunities and possibilities are the

Logically, in accordance with the economic

requirements of the Act, you are going to locate thie bank
in Georgia.

I havo given yon ay reasons why fevannah

should he selected ss s

point, because rhe finances to a

larger extent —
The Sicret*ry of the Treaeury:

hat is your second choice

thst is what we want to know.

Mr. Gray:

All right, ay second choice from the standpoint

purely o* hanking convenience and banking facilities, from
the standpoint of tha trend of financial transactions, it
would suit Savannah hankers to have this bank in ^ashin^ton,
from ay own personal standpoint, based on ay study of this
question, just as a student of commerce, and bearing in
alnd always that the fundamental purpose of this law is to
distribute re erves, to proaote basic commerce rather than
convenience of banking, I should say that this bank must be

in Georgia, whether it be in Savannah or Atlanta

VT: Myers: Wa have a njraker of Savannah banks represented

4Z Z Z
K. B. Lane.

bat Hr. Lane will be heard first.

The Secretary of the Tree wiry: State your naae, reside noc
and occupation.
Mr. Lena:

II111 b B. -ane; President of the CitIrens

Southern Bank, Savannah, Ca.
Tha S e c r e ta r y of the Treaeury:
4 !v e u s any a a *

Will you be &ood enough to

light on t h is subject, with emphasis on the

n a v , and if you oaa t e l l ue af the raae t ia e anj paramount
reasons why Sava nr ah should bo selected ae the headquarters

for t h e K saarve Bank, we should like to have thaa.
Sir. Leas: I a® not going to read a do• m e a t , hut X have
this here for reference.
If I understand the situation correctly, this bill was
peered creating the Federal Reserve banks for the purpose of
proswtins th* c m crolal credifc and the protecting of thst
credit after it has be* a one* put into existence, and I
believe that savannkfc Is the place for this hank to be
located. In order to carry out the two things oentionrd.

Tbm Secretary of the •Treasury; Tou think ycu can protect
that coaaierotal credit from :avannah better than frca any
other point in the dietrlBt?


X . B . Lane#

Ir* Luna; I think wa could*
Via tecrefcsry cf tfca Treeeunr:
» .

Give uc yoir re&acna.

«a&a; ^ e l l # air, ilnce the war betweer the state®,

£avsnr,ah hue revar had r. barking failure* while in all of
thi a territory there have bean ©any bank failure*.

Fee r e t a r }
th i;


Agriculture: favanrah ia not ^oing to

iarticular bank, you


Lr. Late: I cttferrtMid, hut I os t a i l i n g you why we have
not bad cn e , a n d it haa been due tc th e fa c t th a t we
baen ao buay furriahim acney to the tu rp en tin e fa c to r s and
Vl*e oottcn ftctora nrd the countiy merchant© beg benke t .at

a have r o t had tii- c t c got in to w iy s p e c u la tiv e schemea*
and our M&B*f has been txaed t * t r ic * ly i r d evelop in g the

a g r ic u lt u r a l nerds cf thta territory*

We have s*n y c o tto n

and tu r p e n tin e fac-orr wlic a re duing the rmae t h i n ^ , th ey
are p t i i n * t iio ir money into *h* i n t e r io r fo r the* purpoae
c f tanking t&aae crop®. If we haa net had tM r naa fo r our
nancy we aii^fctt have bee* t-awpta* * * § > 5nt:> sense s p e c u la tiv e

*r?he »r tc. ^akp d iv id e r * * far our d ir e c t o r s .

X b e lie v r i f

thi* hank «*re put in Pavemrh the nanagrerr of ti u
auvU g*t a bat cr lie* w
any other point.


ertdit ttecrrffc Savannah than at

4 £24


Um 3. Lane.

fha fear* ta ry of the Treeeury:

Wall why*:


ara drawn froa all over the dietrict.
Mr* Lana;

Yee, but that le thr beet place to gat inforsia*

ft 1b omr bank, we loan over two and a hall' all lion

dollars to country ba«3ce throughout Georgia , Alabaaa, Horth
end South Carolina, and the northern and of Florida, for the
purpoee of arcing thle orop*

Theee banka aend in their sotc


with their cuctoaerr notee, and we go to the cotton or
fortlliier factor who ■•lie tfceae people, and we get better


information about tha* e people, ta ts whether thay pay their
debts or not, than wa conld if we were not down there where
they hara a direct conmaction with the&.
The Secretary of the Treaeury:

?hee* praiticci end siethode

ere going to continue just the name in the future ae in the
pact, and this reeerve bank I f not going to altei tuat
situation a particle.
Hy* tana: I understand that, bat I thought that would ba
better p l*M # o r

tha® to g a t tfcir i a f e r a a t i e a .

The Secretary of the Iraaeury: How about the rei- of the

Here ir a large are®,

they sake the eame argument;

ae you da, whah you localise it.
Mr. I ernes But the people ef Savennrh aall direat to




B. Lem .

there operator®, whi^e the other® d o not sell to a® large
an extent.
The Secretary of the Treaeury:

But It lr a mere cueetl on

of re-dlaoount by banks with theee rererve bank®, wherever


Theae facte do not have the iia ortance aa to the

location of the reeerve bank that .^any people car a to think.
I2r* lane.*,

I think they can get better inforsiatlon there.

Th® Secretary o f the Treasury: Could not a branch do
j that 120ra effectively?
Mr * I*ane; lo.
The Secretary sf the Treasury;

I meen get the information

ab ut credits*
Mr* l«ane: Yes, you could get the ir.fonaation about credits;

y o u cor*ld have your representative there to get this inforaation.

The Secretatry of

Agrieuiture: Would there not be seven

representative® there?

Sr. ~**ne: Yer, air.

Then another point, I understand

this Fe&eral leeerve bank ia only to Cl count for ae bar
bank® and buy foreign exchange, am I correct?
The Secretary of th® Treasury; Bo, it -a® voriou® open
| narkat oprrationa.




Hr- Lam#: X thought it only had the right to lend a©nay
to a Mmbai baa;, and buy foreign exchange , or lend aoney te
eeoh other* in the event the other fellow get short.
The Secretary of the Treasury: it has various open aarkct

I f y u will read the Act yera will sec it if not

restricted to foreign exchange by eny aerns.
m t*

Lime* I f they are going to have foreign exchange,

Sevtnrah would be a very desirsble place for thie reason.
Yei gat yo r money out In the spring of the year tc sake th»
crop —
Tha Secretary of tha Treasury

Weald you not think a

branch in Savannah co ld buy that foreign exchange with some
degree of intelligence?
Hr* Lane: I think it could, yes, sir.
Tha Secretary of Agriculture:

hat do you think about

this district?
Mr* Lane:

I think that is a very uood district, with the

exception of 5orth Caroliha.

I think the trade of Borth

Caroline, with the exception of the cotton aeal business
ia more toward* the east.
The Secretary of Agriculture:

hat do you think froia the

pcint of view of its bela^ an i&dfepeadent distriot flnan-


........................... -......................... ...........................

U. B. Lane.


42 7

B. Lene.

E r # L e m ; I think it ir aatirely independent.

It could

be operated ae an independent distriot.
The Secretary of Agriculture: Tom think it cctild?
ir. Lane: Tee, air.
The Secretary of Agriculture; And it ia self-aufficlent?
Mr* tan#: Tea, air.
The Secretary of Agriculture: Except in atringency?
Hr' Lane: Tea.
7ae Secretary ef Agriculture: la it row aelf-auffioient?
Mr* lane: Of courae, we have to go to the eeat to borrow
aoney tc aove the cotton crop.
The Secretary of Agricultures To whet extent do you
cetlaete you have to re-diecount in thie dietrict?
* r . Lana:

I think wa would*

The Secretary of Agriculture: To what extent, I nsy?
'Jr. I^nes Coneiderably in the fa ll, during the moreaent of
the cotton crop, and i f you cannot get ehipping facilities:
Sometime# we have coneide able trouble in getting ships to
aove th© crop.

For inetanoe, the ocean ehip egcnta in

Savannah sent out


bales of cotton, and rent it to

Baltfcsoro an* few Tork, and it waa re- hipped from these point?,

J. 5 . L a n e .

and Sew Tork tot tic, benefit of th

The rate

feolllti.B for that

werr very high and shipe going into B*w

TOrk brin.ine in thie import ctuff had light height back. eo
they took thie ootton and re-shipped it fro» Sew Tork.
The Secretary o


Agriculture; Are not these etatcr you

ha»e included in thia uiatriot every year pretty her n



< borrowers?
ar', Laae: Tes , air, very ueaTy borroeera.
-he rooretary cf Agriculture; Ought we to create a diatrirt
that Is nom ally a hasry horrowiag diatrict?
ar. Tens: I think jom should.
Th® Secretary of Agriculture: Tou t Ink that it the pur­
pose of the law?


Tee, sir*

m e : ecret.ry of . ^ i « a t u r o : *e reed the Ian rather
" r . lene: I think you need to as;let thoee »hc .sake the
crop and sake thia difference in trade between thie country
and Xurope.
The Secretary cf Agriculture: Hon te the diatrict going
tc acocBplieh that i f it ie not atrong enough to take ctre
of it in norms! tines?



K. 3. Lane.

There Is an m ergency

Th© necretary of the Treasury

clause her* f bat the "eorotary ;aeens Should we lay oat
dietficte which ara normally iepenuer.t when we sight lay out
dietrlota ©ore independent?
Lane: We would oertainly hcve to go loaewhere to get
&o»ey to move the crop*:.

fhle bask laid out in thie distrfet

would not be able to do It.
The feoretary of the rreaaury: that do you thin of the
dlatrlct ae suggested by Columbia, going up to the District
of ColuBbia, and including those coast ftates; Is not that a
more logical and acre diversified dietrict?
*£. Lune: I do not think so.
| go lag throa&h there to

There 1® net enough business

arrant it unlee* you took ir, the

District of Columbia and dryland .


Tha Secretary of agriculture: lorth and South Carolina
tall us thalr businerr does go In that direction.

2t. Lane; Tee, but a lar^e quantity of South Carolina*a
I bualnaaa cones thrrsgh the Fort of Savannah.

2oae ban e ia

I Columbia m nd us ##0*000 of drafts s day in the cotton ceaecn


; and we chip then quantitier of money up there.
The Secretary of the Treasury:
keep their rerervee?

here do the favannah banka




t. B* Lone.

Mr. lane;

e h* ve to keep thea in the eeat, ao aa to aake

it avrliable.
The Seeretary of the Treasury: Which eitieat
hiledelr.hia and Bmr Y ork .


The Seeretary of the Treaeury;

-hat proportion?

Mr# Lane: lew York about T5 percent#
The Seeretary of the Treaeury: & M Philadelphia


Do you keep any in Baltimore?

Hr. Lane; ie keep aoae in Baltimore.

Certain interests

require as to een& bueineee through Baltimore.

thm Caere tary of thr Treasury;

hat ie the purpoee of

kecking it in Philadelphia, are there any extra inducements
held out in tha way of inter*at and free check collection®?
%»• : ane

Ho, it ir due to the exporter.

Mr* McFa&den,

the larger cotton buyer in the world, haying hie largest
office in lew York, rather than aell hie foreign
bills in lew York and other placer, he will «sany ti&ea buy
and sell thaa in Philadelphia, and therefore we have to hare
Philadelphia exchange*
fhe Secretary cf the Trearury: ^ith the parriag of
exchange you are rot ^oing to hare the ease necessity of
maintain in& reeerve balancer in Sew York.

H. 3* Lane

e do not keep mnsy In Hew Tork for

Hr. Last:

The ; eoretary of the treaaury; You keep it there for
reeervcr,, of oc urae


)ar bank le not e national bank, and therefor©

*a do ^,ot heve to keep a reserve in any particular city.
The Secretary of the rreeeury;

I war apeakin^ aore of the

national hanks.
Mr^ lane:

* • ar# a state bank, and we can keep It any

place # ao long aa we ke< p it in a bank a
Bavan ah in situated peculiarly becauae

Ite Secretary of Agricultures Haw many national banka
ha* e you In


Mr* Lane: Two, and ten atate.

1 aade a mistake in stating

the capital cf Savannah banka was only #4,
l ifc

4 ,v





C and the aarplua ie about the esae.

The Secretary of Agriculture; Hew many arc ir,the Clearing
Xr* Last: twa*
The Secretary cf the treasury;

Eav* you Bade eny eeti.ate

of the borrowing demand of thia diatrict at the y^zianzs

M« B. Lane.

period of the year?

?ttr cwn bank alone fo^etimee had to bo row

on© nillion or a Billion and a half*
The Secretary of the Treasury:

1 a® speaking of the

dietrict ee you here laid It out*
Mr* I m :

I do cot know, bat it will have to borrow


©iderable aoney*
Tha Secretary of th© Treaeury: Ton have not &one into
theae flguree carefully?
Er. Lane: fa*
fhe Controller of the Currency:

A b a matter of fact, doea

not that dlatriot Include the atatee that do the largeet
I borrowin&e in the United Statea, except fexae?
Lane; lee, 1 think ao.

They prodaae the wealth

which produce a tha bal nee of trade.

The balenoe of trade

betwe n thia country and Europe le -600,0 ' . " ‘CO a year* and
| that la produced by the balances which we produce sore than
that conaueed in thie country*


Are there any other bankers you wiah to hear

froa, from Savannah?
The Secretary of the Treaeury:

I think rot*

tha facta are pretty wall out in here.

I thin

u a

Er. l^yeraj

It there ie an? question you wish to ack which

her b e m xuumm?* rmdv I wo* Id he glcd tc answer it*
The Socretrry cf tfce freftanry*

I ciuj^at that y~n here

th«LO other gentleman forward any briefs they rsty *?ve to
tha Oo&^ittee r t Taahington, and they n i l he riven oon~
If* l.yert#: In that eerneotion


f e d indebted to you

for youx oor.aide ration.
She Secretary of tha treasury: lot at all*
Tha Comptroller of tha Currency: Do yo ; feel thst 1s the
best taction £*r Ca7*n ah, including the Cerolinse and
Georgia f
Ert Kyare; By all mmne.
The Comptroller of the Currency*

Ton wo .14 hold the

Carolina® with Georgia
M r/

aiyere; lee.

i’ll© Controller of the Cu ramoy:

Aad weald not terra an

1 eeev and west dietrict ae htfe been su^e^tod?
Mr. Uyeras lo.

tou referred to the witter of branch* s.

Of course. we dc not undcnteai that rery wall, hat under
I the preeent Sational Bank Aot I thouiJt **8 already had a
branch in Savannah.



K. Kettig

The Secretary of the Treaeury:
iffirrove on that.

e ll, we ere $oin& to

X do ret saeen to m j ire are gotag to

i j rove on it by putting a branch in Sevennah, but we are
goln& to improve the cyetea.
Jhr. Hyere: t e l l , do th* very beet you can for ae.
the Score tar r of the Treaeury: We will hear from Biraingha&% rext.
Xr« Harding; Mr. Kettig ie the Chairman ef our Clearing
Bouae Co-r'lttee, and will present our cree first.


The Secretary of the Treasury:

*ill you i tate year name.

reaidcnoe and <ecupetion
Mr* Fettig;

f . B. Kettig.

I ea in the hardware b o a ^ s e

ir Birmingham, ( nd I aa th© Chairman of the


Oosaaitter sent over by the Clearing Houae
The Secretary of the Treaeury:
who wish to speak for 3 tra in e es.

Mr, Ceaer ie not here.

I will anrounce the

*^e have no lift oi epea'kera*

The Secretary of the Treasury:

Ie ay list right, ::r.

Mr. Crawfox # M
r- Tilton, Mr. Ooser an6 M
ar* Kettig

l r . Kettig:

There are four gentlemen

Suppoae you tell m

4 2 45

1 . E* Eettig.

you want to tpeek for Birmingham now.

tie went to get an

idee of the amount of tioe thet 1 ® &oing to be required.
Er. *-ettig: ^e hoped to hero one prlnoipel speaker for
Bi rmlnehac.

< do not went te take up yoar ti:«e with a lot

of aeeleta a tat let ice that you are already familiar with.
Sirain£ha® Ip represented he e today by about 130 peole,
and we have t aitc e num er tf orators with ur *
The Seeretery of the Treasury;

Ton heard our remark© on

oratory yesterday, did you?
1 r. Kettlgs

lee, air, we heard that, but three 100 people

oame here not for the purpoee of epeekln , but to ahoa their
rep-eot and epprectation for this Ceamltte#, and we case here
to ehow we were in eeraeet in eektng for a bank for Birrain> ha .
We wanted to eak you to give Bintln^^am a eerioaa and
thcu&htfftl conaideration for thie bank.
the Secretary of the Treasury;

' e want to give Birmingham

every opportunity to be heeru fully, end thet is the roe ton
I am eugce: tin*, that we ahouli like to have a liit of the
wltneaaea. I f you have it*
Xr* Set Vig; l?e have no liet to aubmit.

ur principal

epeaker ie Mr. f* ?• 0 * Bardlne, who ie Freeldent of our


u* H* H a ttig *

whaabe r of

oniif ;*co# i&u also pre rider, t of oar principal

bank, the First fiat tonal.

gr- Eerdlag, as I heve eald. *111

b# our prlnelpel ipeaker, and w« think if ytm.gtn hla
sufficient t i : « , that he will cover the groand to our attte*
faoti.:^# and that w e will not have any other speakers, rej*r<

aentin& Btrainghaa, and for that reason, we ask yon to give
hlit all the tiiae that he requires, and we hope it will not
he necessary to have any other speakers•
Tha Secretary of the treasury:

Te do not want to limit

foti, of comrae, to Mr. Harding* and yon ta rt feel free to
Irodice all the information y a desire, and we will be glad
to haar it*
V f• Kattlg:

There are cone outside bankers whoa wa will

probably c a ll, who will te stify ae to their praferenae for
Birmingham, and any other ir,i oraation yon Fact, hat we think

Mr* Harding e&n do juttloe to the subject*

STATE .39 0 OF u. JN 0. BAZMMO*

The Secretary of the Treecury:

Give yoar fall naise,

addr*as and occupation*

Mr, Harding:

§* Harding. President, First Baticnal

Bank of Birain^haa, end President of the Birmingham Chaster

T 1 • 0 . Harding,

of Coaiaeree.

fhm Secretary of the Treaeury:

before yc« a tart, giro the

* * 01 1 ' ' d***i*iot Lbal yam era goiag to &ddre©



Jr. *iardin£; i wee hr e yesterday, %r* 3enretsryt and I
borned up my speech lacit night.
The -acre ary of t * Tree miry:

Ton brought it up to date?

warding; So, J aa- ! norm#*! it up.
ffcc Secretary of the treasury;
fcrtught It up.

I t h u cht you said you

i hope we dia nut Inti yc~*.

Earair^s fo, tir , y



Tha Secretary of the Treaeury;

Ea\e yc

thr^€ of those

^ i * • «tag; Ter, eir.

Te here thre

Thet thcwii tha actual railroad

of the large sspfe, and hire are three

of the email mape.
(The aapa were filed a oordlafly.)
The 'eoretery of the freaaury:

;«*c you aa;/ proceed.

Krf tarding: In m rciAaring t ie p o rtio n , gentlfiaen, wa

not erar ar,y ci. ^lea.

rlvate John Allan of Misfslsaippi,

when he woa In Cnn£:reee —
the So. ret a.-y of the Tress ry:

T<m are not ^oin*, to t.lJc


. C. llarding*

in o e , tc hope*
nJr. Herding; So, I will try not to.

iriva$e John Allen

tried to prove thet Tupelo wee the centre of the earth.


He know it wee the centre of the earth for every time

| he went out on the etref t he ss^r th© slcy line the £ame dieJ tance ell around M ; .

Sow thet ie a phenomenon yoa have

found in eom of the other cities on yoar trip.
The Pecretery of th* Treeeury: fa

have found that con­

dition exists in every city .
- r ^erdin^. I#e theight we woald not try thet.

Ve have

endeavored to ley cat e territory here vhleh is logical and
bee epeoial reference to thet section cf the Act which
s require® yoa to pay due regard to convenience and eusfcosaary
oourae cf trade*
Sew it occurred to ue that there ere certain natural
boundary lines, natural lines such ae the Ohio end Mississippi
rivers and there are certain well defined railroad grcupe in

the country.

We have * aopted another prinei-le in this.

I f W were going to build a dwelling hcrnse* a substantial
, dwelling to l»ve either eight er twelve living rooms in it ,
we would net tuild thet house with reference aolely to one
rt cm, hut we weald get en erchltect and have a comprehensive

42 49

i« G. Hard lu g.

plan and lay out *omethln£ with reference to all the room?:
we were going to have la the houre.

file diatrict, I

believe, fiti In with the adjacent districts and with any
other dlatricte w ioh can be outlined for the whole country.

lie have th ught a little bit ab ut that, and co^ld pr bably
dlacuEfc that if y u eared to have us.
.Ton ar# fan!liar with the reaoureee of that texrltery,
aa to the diveraificat on of * roducte, and eo forth, and 1
believe it ia ^oncrally accepted that it would be an mwlae
proporltion to tie up the ootton rfcatea together with the
logical centre at Haw -rleana, all in one district,
ao wa have ado. tad thia aa our achaae.

ccretary of the Yreaturys

Thia la the diatrict

propoaad by Lewisville?

%Tf Harding: Pretty ainch the aaaa.
The Sac rata ry of the Treae *ry:

I meen substantia ly.

Tha Secretary of Agriculture: Kaccept th t Loulavllle did
not i ncsudo Cincinnati*
Tha See retar” cf the Treasury: lo , but sun rtanti ally.
Hr. Harming: That ia aasoeptlble to alight modifications
auoh aa wooId not lapalr It.
Tha Comptroller of tha Cu rency: Yea.
Include Cincinnati?

Yours doea not


» • P . 0* Harding

M « B a rd in # , Ho. xor ir.ctfcnoe # if Florida and Georgia
desired to ally themrelvec to the cert, a line would be

drawn ir o n A u g u sta, G e o rg ia , cay down to the Chattahoochee
dyer and g iv e ua West Florida and the rerfc of that territory

would go e a t t , and it would ra th e r strengthen our diatriot
than otherwise, from the standpoint of resources.
The Secretary of t e Treasury: low what is the ospital
and reeouroee of the Federal iieserve Ban-: for thi a district

and as you here figured it out.
Hr: Harding;There are 652 national banka in the district,
and 1 have thee by statee, and the capital —
ths Secretary of th

Treasury: What ie the combined capital

end surplus*7

Bardin*;; The combined capital a nd surplus in tbat

district, which i n d u c e r

the law Orleans banks, is

a? £ , & l 4 #?90, tbst ie Cn the October Elat cell, ai d tha

surplus § 56,509,£ 59.99, end undivided profits of $22,266 —
The Secretary of ths Treasury; Give u s the oaidtal and
resources of the reserve bank based on the national b a n k
oeiitel and the surplus alone,

just aa e starter, and its

Ut 4 Harding;its ap: roxiiaato capital would be 5$,54 0 ,0 0 0


W, P. a. Herding


•Mid it would hara deposits cf about $17,000,000, that ie
exclusive of any gov rxment doped ts.
The ^ o r tary of th» Treasury:


what available resources

would It tat? for landing purroees?

¥r. llarding:

It «ould hare, as I imd*retan<i - it would

requi r* 35 per cent reserve against those deposits and it
would have snout $17,500,000 resources for lending purposes.
The Secretary of the Trtasury:

What is the extrema borrow­

ing d »a n d of the district, seasonal demand?


I have ths Cewptroller's report h*re of

national banice.
The Secretary ef the Treasury:
Mr. Harding J

October 21st.

Of what date?

Motes and bills re-discounted

#3,374,078,111, bills payable $18,174,243 —
The F«eret ary of the Treasury:

r<hsathing like


is it?
Mr. Harding:

something like * 2 2 ,0 0 0 ,OOL, and June 4th call

only shoved $17,0 00,000 .
TIm Secretary of tha Treasury:

But I an trying to get tha


Vr. Harding:

The roorotary

'Tell, I think tha
of the Treasury:

la about th* p«ak.
H«t « you any Idea hoe much




C. Harding


tha atata banka borrowed In addition to that, throughout

thi* diatrict?
Wr. Harding:

I can tell you for Alabama, on October 21 at.

I triad tc do no gueaaing about it .
r "laba' w * T

I hare tha exact figure*

h ? °tate Superintendent of Banks.


atata henkt in Alabama on October 21st hal re~diaceunt*
^1 ,2 6 6 ,0 0 0 and b ill* payable $5,030,000.
The Jo?apt roller of the Currency:


of that *aa

borrowed outaide of thia diatrict?

Wtm Harding:

I cannot ©ay.

The Comptroller of tha Curranc;*:

In !few Yor1 or Chicago


or elaawhere.
r* -*®rding:

I cannot tall you about that.

1 knew

Mnaingha* l.aned tho etate baaka, some national but
mostly atata banjus $1,22 9,000.
Tha Secretary of the Traaamry:

Hc<* much in*ir«ct re-

discounting do tho bank® in thia diatrict do?

Of oouree you

haoa to make a gueea at that, there is no noana of arc^rtainln,; it,

'in ijhe practice it Tory general, i* it not?

vr. Hardin^:

fe e .

I und'sratand tha iniireot re-dleccunt

ie « - re thoy tranafer papor on the guarant y of th; din-otoro
or aoll

bond, where they have an agreement of repurchoa.,




G . Harding

or *hara thay give eonw Bid a guarant >e.


I think th® national

banka havs ^ui t that, bujt tha state banks I believe do it.
1 do not beliave vary much of that i a done in TUminghaa,
possibly f b0^,000 in Birmingham.
Tha C
*«crer &iy of tbs Treasury:

Thera ie a good deal of

that dona throughout th*i country.
?fr. Harding:

I know tha re ie.

Tha Facretary of tha Treaeury:

And that ia a vary

uncertain factor in this queetion, and wa \wuld like to g»t
aa much light aa wa can upon it.
¥r. Harding:

It ia very diff-cul:

The ^ecrttary ef the Treasury:

to gat any light uj^on it

How «tuch borrottng do you

think there ie by individual® and oorpomtionr aateiia, not
reflected by these book atatenantef
of an approximation of that?

Gan you give any ©ort

In other words, we would like

to get as good an idea aa we can of th? borrowing demand of
thie district.
Mr. Harding:

I will call your attention ta the fact that

my estimate I may give you about the borrowings of the
banks would be

very largely a matter of guess.

If you will

confine that to the State of Alabama, 1 will try to give you
definite and specific information.




.. ,, ,,,,„

W. p. C. Harding

The R«oretary e f th* Tre«aury:
in your brirf.


You might incorporate that

,u t of oourae. . . hare to cenaide, th, dir-

t n o t , and the data « . would like to haro ought to rel.ta te
tha anti re diatrlct, aa boat . . can gat it.

But on tha

shewing ef tha national banka yen hare a borrowing dia riot
conaideraoly in oxceoe of i t . raaourcoa.

you etart o ff « t h

Mr. Jarriing:

That ie without reference to tha currsncy

and without raferenca to any government deposits.
The ""eorotary af tha Treaaary:

y*e, I ai eyeaking of the

no rami conditions.
'r. Harding:

let nw ^all your Attention, that the banke

of thi a dirt n o t at th * time had orer #16,000,000 geyem■en' dpjoaita, ao I f half e f that sore added te tha reaerre
br. nkaf t at would mike a balance.
Tha Teoretary e f tha Treaeury :

But It ehewlng the avail-

able rep-uroea you had th-re you did net count thaae davoaite
aa billa payable or ra-dlaaounte, did you?
Mr. Harding:

There ie another matter you did not aak no,

aa to the amount of money tneae banke. had on hand.

tutm bed pretty lerge raaerrea.

• om« pf

1 know m carried Tory

reaarvea in time, puat than «e Mtp-ct to do agal


V . P . G . Harding


The Secretary of the Treasury.

Yes, but in speaking cf

t o government deposits here, I treat those ae deposit* or
bills payable.
Wr. Harding:

I treated them separately.

1 treated ths

individual deposit® and due to i ther national ban** and state
and privats banks as deposits, and combined then and put the

government deposits off to on* side as a se arate item.
The Secretary cf the Treasury:

They are not included in

the totals of the extreme borrowings er bills payable er re­
discounting thst was shown.
Mr. Harding:


Tho fecretery ef the Treasury:

Those figures do not include

any government deposits or any special government deposits?
Ifr. Harding:


Ths Comptroller ef the Currency:

What cash will be

ifcieaeed under the new reserve law?
Vr. Harding:

la our case we would release vrobably

2 ,0 00 ,0 00 , in one bank in liraingham.
The Comptroller of ths Currency:

Take the other states

of the district, how much do you suppose will be released,
prebably 1^0*000,000?
Ifr. Harding:

October 2lst, the banks in the district


W. ?. C* Harding


chewed $26,4X4,000 due from other national banks, and
$14,041,0^0 t a from private banks and banker®, and
ft e
40,546,000 due from approved reeerve agents.

There would

be a release of this $4 o ,000,000, would there not?


j course, these assets due from private and state and other
banks would be transferred, seme of it would go —
The Comptroller of the Currency:

What is the sum total

deposits of all sorts for tlat district, country bank® end
reeerve city bank®?
Vr. Harding:

Th*i suss total of national bank deposits in

that district, $345,000,000.
The Comptroller of the Currency.

I f there ir an average

release of six per cent, that would be about #,20,000,000.
The Secretary of the Tressury:

Sow proceed with your

Wr. Harding:

1 want to correct that*

It ought to be

$20,0 00 ,0^0 instead of $17,000,000 for that reserve bank.
That would be * 26, 000,000 available.
The Comptroller of the Currency.

Instead of being

#17,0^0,000 it would be how much?
\'r. Harding:

$2 *,0 0 0 ,0 0 0 .

The *ray I figure it, it is

just a self-sustaining district in normal times


tf* Pi C. Harding


«.«*d i f *a«t«rn 0«ergi . .h.uld be .limlmUsd, ths p repeal tl on
euld ba atrangthened.

era tary of tha Tr aweary;

Haw many dietricte hare

yea aeeuaed that the cauntry ehould ba di tided intat in laying
out thle district fer Birainujhsatf

I assumed there wcul d ht 10 er 11.

Tha f!acrata*y e f the Treasury:

Hava yau a nap ef tha whale

country aha wing tha division ef tha entire country Into
districts, ae you prepeee it?
Wr. larding:

T»e ei r.

Th* secretary ef the Treasury:

Hare you given ua the

Ata er the capitalization ef these diffarent dlatriete and
the resource® of reserve banka within thent
Wr. Harding:

1 would prefer te file that aa a brief.

Tha Secretary ef the Treasury:
Hr. Harding:


If you will, please.

hele preposition ie laid out throughout

the cruniry on tha baeie ef the natural territory, based m
railroad groupinge.

¥e # th ere are the Ha« Ingland etatee —

The Secretary ef the Treasury:

Without reference te

epitalilotion and resources?
r * har-iing:

and resources.

Y*s, partly with reference to cap italisatio n


W# P . C. Harding

Th# Secretary s f the Treasury:

Mr. Harding:


How n»ny district!??

It provides one district which ie earentially

adistrict free for open markat operatione, and which at all
tins* has a aurplua of funds tc act as an ad tc any district
which !*ay

be in diatresa.

Tha Secretary of tha Traasur/:

what ia tha total number

of districts?
wr. Kuril ng:


Tha Fee notary ef tha Treasury:

^ill you fila a memorandom

showing the capi tali satien and resources of each one of thoae
di st rtcta, along with that wap, in triplicats?
Vr. Harding:

ws till, and will fila the definite figures

on thia proposed district ws hav** laid out, in w'ich Binningham should be located,
The F~crataxy cf tha Treasury:

I f Birmingham were

not mads

the ressrve bank headquarters, what would be your second
choice within that district?
Mr. Harding:


Personally I would have no second choice,

becauae we are so centrally located with reference to that
district that any point in it would suit us.
Tha Secretary of tha Treasury:

Any point in it vould suit

P • C • Hardi ag

Mr. Harding:

4 259


Th* Secretary e f the Tr-asury:
Mr. Hmrding:

3ew 0rl, une?

O r l^ n e , Hemphi., Atlanta, Ch*t :anoo*a

• r Lom sT ills.

t t . Secretary of th. Treasury:

In tbat district?

wr. Harding:

«m -ould a , aeon hanre any place 1„ that

d .tr ic t, becaus. there

would be no occasion to hare a

w, hare rail re «1 iinaB radiating to «Tery point in

the district,

and are *lthin a f e . hou„

The Comptroller ef th8 CUrr„noy:

you .ould as 800n * , T.

rtde cf any p. lnt>


ypu ^


the best to serre th, whole district, not considering

yauraelvas alane?

*r . JUrdl g:
r '


the Birmingham Clearing House sometime

“d° Vt,,d * ra*PlUtlen « " * » « I<*uieTllle as second choice.

Ths L cuiorill. people wore down to see us and talked about
•hi trend ef trade being in that direction.

Th! C” Ptr*Il 9 r cf


That 1 . on the extreme

I * r . Harding:
* " 1#SiC ln U“ t

That in on t e extrsns north.

1 do

not see

kbout the trend of trade being

Lrthwmrd, because our trains run both -ny. on th e., rssds;


• P* C • HardLisf

thay kaul p a . , . „ ^ r. « d f l i g h t both way,.

* * u™


And x


relating te the trend ef trade which may be of

n’ -‘ it re ycu.
- -

•ork about i t .

Thee. are actual figurea and not any gueE8-

I cculd not g rt thie from all the bank, in

Birmngham, but I did take i t from the W r e t Sat local Bank,
and 1 « . « ,

it repreeenta about 40 per cent of the total

H a ltin .ro ,

for inetaace, 1 have « n Bt here for the

y e *r 1*13 of the total of i tema that we eent to different


oitiea and tha total that the different o ltiee aent ue


in^io ting i n eoae any the trend of trade and the exchange
cf buelneee between the tee p l a c e .

Vo. I here it natur­

that the oh Mice that Birmingham **uld r e t i r e from

• ther plncea re] re eent payment for good* or cemmaditiea or
labor apent In the Birnlnghara d ia tr ic t fo r material end nr

fcrth, and the check* theee other ptaoe* aend Birmingham
reprea.nt payment, they are making to Birmingham merchant a

amd © th-re for m aterlala and ooimaadiUee purchaaed in tha
B1 rmiaghan d i e t r i c t .


$ 7 2 3 ,8 5 1 i f what « . had to eend

Balt liter*.
Ths Secretary ef the Treaeury:

Wr* Hard lug:
 The Secretary

p©r what period?

per ene year#
of the Treaeury:

That 1 . ycur hank nloneT


W. P? C .

* * . Harding:

H a r d in g

Our bank alone.

Baltimore banka,


At th* came time the

foru of than* with whem we had dealings

there, oent us *4 ,8 1 9 ,3 4 1 .

That is abnormal in that par­

ticular case, becauee there is not any bank in Birmingham
which haniles all ths meat drafts from Chicago.

They ®ork

thin thing around to try and Bare exchange, am! about
* 3 , 0C0,000 *as meat drafts on Chicago.
The Comptroller of the Currency:

It ehould hare been cred

ited to Chica :c and not *Sal timer <,
¥r. Harding:


That ie abnormal for

is a normal proposition.
these are checks and


t hem.

Hoe here

The total items ire sent,

not collection items, but actual

cheeks — ee sent Boston checks and time loans which were
paid and went into the account, #2,104,468 in the year 1913,
and Boston sent us *63,795,

we deal *ith ten banks in

We get collections frcw th«m.

reason for that.

But there is a

In order to save exchange, Boo ten ships

around very largely through Albany and Philadelphia.
The Comptroller of the Currency;
Mr. Harding:

Unnatural channels.

The Secretary ef the Treaeury:
situation entirely.

Unnaturel channels?

That is an artificial


®r" ®*«ting:



C)UO' « ‘> “ » « » t Wat,
“ Monol
Oasn ltone to Chios** i „ 10, ,

*>* »t Bir*ln«h*,
“ A n tin g

« «


te # 7 , 0 . 4 , 5 9 0

h*oka a .

« *»


* ,


a n


‘ 0 ,lr S d * *

C M C 6* * *

'« ■

mth th° re* lBOlUdi-

* nd ths C * » M . „ t « i and c * * ™
• ther corronvendenta i

* lT° r,Uad — He™ .


“ » " * 1 <* alp0 h»Ta

#■ eur city, #.’. , S86,000. j
1,111 * *
/ w add tfiat ii aaa a« .

* • • • tat belong ta
n^ to Balltnoro and put th.* *
that create' -n
unnatural al tuatl on

Whi° h

cm. ry a T«jy xefr#a



- —


„ . .

- ~

“ ~~-



B0 U,'e ot ^

'euld sake #6 ^

excapt aa .



* « ■ * ■ •* * ’ . « 4 , 0 0 0 .

for our pig i _
iron and cast ir««
lroa Pipe which
and «0 buy
y 4* * l r *>nt products.

» • ■





, „ ^ w:

Mongo payB Ur


Up th®r«#

* '’ "** *


1 W * “ * in Blnrt«rhaW.a
C1_„, „
Cincinnati »a deal pith n T, baalto>
A ‘ ith
and th<?v > m »
“ <17770.OOC. Xkera 1 .
n In



normal condition
H *««ln«:


r. „


Kcw ^ .


thaw # 3 , 3 7 9 , 0 0 0

a *U ance i n our


c . Harding


faycr, baing on* bank doing probably 40 per oent of tha
total of 81,600,000 in one year,

w* »ont Clereland

$510,000 agalnet $ '8 0 ,0 0 0 thia eeaacn; email transaction*
*ay* ac

* i la rather out of our tarri t xy*

1194,000 agalnet 1200,000.


The automobile, come on bill* of

lading with draft, and are not included,
the Comptroller ef the Currency:

You eend then the crude

■atonal and they eend you the finished product*?
Mr. Warding:


Kaneaa City $*,79,000 agalnet $65,000.

There lo a hoary balance In our f«rcr there, but not aa great
as Indicate'1, becauee a groat many grain dragte cone bill* of
lading attached, and are not included.

Vo oent Loui*rtlle

ch »ko on thamfelToa for $5,867,000 and thay aent ue chaoke
on Birmingham and nearby polnte of $ 1 , ^80,000, a large
balance in eur favor out of LouiBville.
The Comptroller of the Currency:

Loulovi lie and Cincinnati

wr, Harding:


we eent >fe» Orleans #4,749,000 and

they oent ue $1 ,8 9 2 ,0 0 0 .

The bulk of ehat ae eent them «ae

cotton drafta and they eent ue ohocka in payment of sugar
and things of t'mt sort.
1 *111


to ife* to t£ separately, because all our

P. O, Harding

$2 61 ' Z

0U£ aXChangi ^

* 2 , 0 8 5 , 0 0 0 » ont them, « * !

Pald iR




Yerk- * * ! • * • ! » * •

y 80n “ Uc opjroxlraately
That id r in r •
iV n
II abnormal bacauea t w ^
# ^^u e a that rapreaemtc all
9 * * " ^“elwnd am all the
b u a la ... Bent th„ r ,



“ * •—


- —

* l"


- « .

« « «- r
» , « .
„ „ „ o >f ->r ( ^

««, . .

> i , ^ 6 2 ,0 0 0 and

„ u

they send ue # 1 ,^ 8 2 0 0 0

- v i

* ° ‘, « blanae against aa

• * 120, 000.


‘ 19 * hMTy


ef pig Iren a*j pil>e

»e iH^y a grod munj atulea and shoes fro*

It is our M * , eet ch, . 0#ntr#> ^

- J - l t y or the .hoe, in « .
•« t

to * .



. «


a great

|3>ii, ef0p0 l8 ^

they sent us ♦ ,.400.000, . ^

of * 1 , 10 0 . 0 0 0 .



traaaury operations, but Includes the operation* of
'’•uthern R a l ^ y , # 1 , 9 8 3 , 0 0 0 we * ent the», and «r

I 'M

fro™ the, .* 0 1 ,0 0 0 . . ^ . ao. la #ur


# 1, 100, ooo.
0ar * * * * * *


ami r ™ , rU l.

in O ,o r *l. are prtnclpally with


0 . Hardtog



in Vacaa, Columbus, Augusta, M m

and possibly one or two

othor point*, but they are the main ones.
f : gures here with Atlanta,

I hare tho

v doal with fir a banke in

*tlanta and tho fire banka in Atlanta do not send us exclus­
ively tho it-mo t * y haro in Bi mlnghara, ao they hare othor
accounts, and probably send other banka eons of these items
An^ Atlanta hna teld you they oolleot thalr raiscallaneoua
iteaa through tho Clearing House, do thet what we got f lea
Atlanta m e fer Blraingbara alone, and they handle a foe
iteoB -hut the/ oan collect cheaper than - a can ourselves.
.Tha Focretary ef tha Treasury:

that, ere the totals with

Hr. Harding;

# 2,949,000 is what we sent thea, checks in

this direction representing payments for pig iron and coal
that they bought orsr in our districts, and checke that they
sent ue, representing payment for the candy and oocc cola and



have ^3cu<jht in Birainghaza aaounted to

♦l,76fl,or0, a balance in trade in our favCr of $1,200,000.
Ths Secretary o f the Treasury:

We will take mi adjounasent

now until 2 :3 0 .

Whereupon, at 12:30 o'clock P.M. a recsss was taken
until 2 :3 0 P. M.

T "

W* p* • • Harding



J£t;30 |*# n#

COTTISOATIO* 0? FTATBraHT 0* W .p.o. M U M * ! .
Tha Pecr.t.ry of tha Treaeury:

Ur. Harding, you »ay

vr. Harding;

Vhan sr. took the I had ,1uet given tha

**cha*g,e between the banka in 3im inghaia *hich I repr-sent
and - -a banka in Atlanta for the year 1913.

the exchangee

between nimingham and Payannah, between that ».■*» bank and
three in

svannah fcr the earn year 1913, Mrslnghan sent

Savannah c h » k s amounting to #4,668,000 and favannah aent
■lmlnghaa cheoka amounting to #2,133,000, a balance of over
[ #500,000 in favor of Bimlngtam a . between thoaa point..
Coming took to this territory a lalnuta, gentlemen of
1« a map that I have had prepared giving
the principal itame f r o . the .U te m .n t of October Slat,


by 4t.t«e, ehortng the capitalization, eurplue and

d .p o .l t . and the loan, all placed there .here you can B9. lt
readily for each etate.

T h . 4 entlra«

who compil.d th i. ia

a go*d rfeal fonder of mathematioe then I am and he figured
• * it • good deal, and ha figured the centra o f th. banking
l-oror In thie dietrict at Ppringflald, in ^t. c i .l r Couaty,



• P « Qm Harding


between Chattanooga ar.1 Jttmlngham, about 26 m ile s from

I do net know fa t h e r he i . correct or not.

The Secretary o- the Trea«uiy:

no ycu consider hi* an

Qxpett in that mat tar?
» r . Harding;

Oh. he l . an «r,ort; he can tall you the

tr» cf the ootton production or anything *1 e o .
The 8acr*tary of the Traaaury:
ncial p0

r c

be dietriot.

I an 8J.eakin« more of tha
Bo ycu think ha is correct

in figuring it there?

Mr. Harding:

we. I would not think it .as in rpringfield.

X think it lr cloaer to Birnlnghan.
further. I -euld Il k , to reri.e my

Before I go ahead any

te the

eapi talization of the Regional Bank for thie prepared dirtrict.

I take it that ie a aery important matter, not only

I to those of u. aho deair* to eee a bank in tte ooutheaat,
tjMaa who dealra to see a bank located anywhere in tha
Hare io the population in thie dietriot laid out hare
rf eix etate., of orer 12.000.000 people according to the of 1J10.

A gaince at thie dietriot would l»ad anyone

to .uppo.e that aa were certainly entitled to a banking
centre in that territory:

It 1 . a w .li proportioned dietriot.

V. P. 0. Harding


4 2 6 8

It has get all the aeceseary requirements ae to diver sity ef
industries, crops and se forth.
that way.

Ths analysis of it reads

That i s what you want, is the figures; as I under­

stand from your remarks this taoming, yru *ant a district
laid out that would noma ly self-supporting.

Ths deposits

In tie r e s e m bank fer that dietrict, after deducting tho
reserve required by law to be held against these deposits,
would bo sufficient to enable that reserve bank, without
1 rsuing any reserve notes, to take care ef the normal red „ scounts and bills payable, as new shown by the banks in
the district
The Tscretaiy ef the Treasury:

^ell, wo hsve exprecred no

desire er opinio* on that matter, but we are asking for the
opinion ef others as te whether or

not it is a desirable

thing te do, and the most desirable.
Vr. Harding:

That is one thing I want to discuss with you,

and 1 take it that Mew Orleans, Atlanta, Chattanooga, Balias,

er Hi chinend er any ef these ambitious southern

cities that are anxious to establish financial independence
in the south do away with this having to run north every
tist to want a few dollars, as has been in vogue
50 or 75 years, are vitally interested in it .

Taking thie

W. p. 0. Harding


proposed district, I want te imphasize what I said thie

ws certainly would have no oh,1 *ction to haying a

lino ran from the Chat taboo cites river up to Augusts o as to
giva all o ' eastern Georgia arid eoetern Florida to a district
in Washington or Baltimore, and i f it suited them better,
it wsulu buit ue bitter, and vould strengthen our esse.
1 am going to give you the figures based on October
21st call, in relation to t at.
Tfca Secretary sf ths Trsasury:

That relates to the dio-

trict as laid out?
vr. Harding:

Yes *ir .

Capital and surplus of national

banks, Florida #10,600,000 —
The f^cretary sf the Treasury:
Vr. Harding:


The Pec ret ary ef the Treasury:

Just giro us the totals.

You need

I mean the total of all the

not itemize it by fttates for the dis­

Just give us the toms.

Mr* Harding:
$ 6 ,5 0 4 ,0 0 0 .

I think later on you may want it,
The capital et the reserve bank would be

Pep©sits exclusive ©f govsmraent deposits,

deposits that the national banks would be required to keep
with tha reserve bank/ on acco mt of maintaining their


~ . a r r . . , * 1 , . ,,5 ,o o o .

55 p<tr ^

raeerr9 ^

inst that>

- b , held by th, reserve b.nk, * 6 .0 .1 ,0 0 0 , ln, Tlt¥, net
d* P # ,1 f

!•« -

that dietriot. # 1 1 ,,9 4 ,0 0 0 .
I di eccunt.,

by . bank located »„y«h, re in
The M i l . puyable and re_

* theut r e f ,r e noe te t

(Ur-ot leone, a . ycu M y c» a

00nceal„d loane 6r ^

th «,, * * 0, 800,000.


that . . would be c r a r # 9 , 0 0 0 , 0 0 0 ehcrt ef being .elf-


the only »ay te « * • that .elf-mii-taining eould

be tc i .e u . yeur re.erre n et*, on the baei, ef that
♦ll.Soo.ono ef free depeei t., which would a l l . . y0U * , i eeu,
r.aerre note, ef #23.000.000.

thee, loane ef #20,800,000

®n o, tcb.r U . t are not at the h i * point.

I i»agine that

the h i * point . . . poe.ibly . „onth earlier than that, and
it:-,.-, wu.- h ,TC been about # 5 , 000,000 » w , 8ay abeut



2 5 000,000.

Tho .Mae condition will a p p ly to any group of eoutharn
a t a t ,. ,t that t l « . f the year.

The only , . y ! coul(, . . .

«ny diatrict. taking in th, eeuthcrn . t a t , . , to

- i f - u-‘ ^ n i n g ,

„u ld bo to .p lit the country up

I n t . ribbons north and routh, end in doing that you could
Ut fd ln

the expliait in .t r u o t i.n . * f thia Act, te fc.T.


W. p# o. Hording



to convoni<nc and th, natural cour*. of trad,.
I Wnt

to « h »

you hi* thin thlnp „ r te a p p a r ^ J y an

in ju a tir . to th *., atataa, tf tht t n a , iB ^dhnn i t0>


in*t.ine,, h . r , 1 . th, s t . t . of M e rid a , which would hay, to
« P o » l t ,1th th,
to th, 3y B t W

rW , n r , bank . 0,1 »culd hay, to contribute

.603,000; that i . , x „

“ P l U l 0?"

proportion #f th.

t a k «ould b , that amount.

h *v , to C p o .i t 51,500,000 ao i f

part of ,h , raa.ry,.

voul« b , F io n d a 'a contribution to th. < t , ^ i te.
! 2 ,300,000.

It would

Thai i ,

3o» th , a y ,n *g , borro*ing r ,qul n « , « . 0f th.

“ t W l btnk8 of
a r , ♦ 2,300,000.

^id *,

You a „

M i l a p^vabi, * „ r,-dl acounts,

th,y d,poa it what thair a v ,m r ,

horrcwlnr r a ^ l n rmrta a r ,, and yet on tim bk8lg „f th, lr

t in , would b , $600,000 ohort, bec,u8,

thay hay, a

flx^d capital in tTsm .
ar~ia' a contribution to th, oapinal atoci of th,

rnmnrv- b..nic . ould b , # 1,473,000 and «„j oa ita with tha
r , . , r y . btnJc would h , # 3,1 75,000, a total of # 6,000,000.
Th* a r « - a Fn b o rro w U g

I t-k, it,

^ u ir ,u ,n ta


ar, not far f rora $6,0 0 0 ,0 0 0 .

s ta t, o f 0 -o r tf.,
Th<y w .r .

#5,800,001 on th, Octob,r 21 at call, and n«y run to

10,0 0 at t i n ,., but I should auy # 6,000,000 aa an



C * H a r d in g


Alabaaa would caitriHi ta §560,000 to th, capital atock
t , , n w bank, -- Alahu-m national banka would hsr, to
put up $ 2 ,40 0,0 00 of dupo* It*.

Our b o d i n g In Aiabana on

th , 2 1 . t o f October waa approxinat-ly *3,000,000.

if ?OB

60,000 u,,d 98,400,003, tjjftt l8 6]30ut }£,400,000, and

* , *ould b , i n d , , , d ,i t , but lack up th , cupi al and w, would
b«i 5$t0 > ,


Mli.o laaippi would put up #300,000 and d ,

# 1, 000, 000.

S , c r ,t a ^ o f th* Trt.aury:

Tou would g .t a r,l * * *

of r^arvaa u n ^ r thla Aot> ho„ „ T, rf ^

w<nau C(rjp<Ml6at8

you in & a<t&ftur<9 for that.
*r. ilanil g:
>o-ia out.

I an oajlng to that, but r aa ahowin,; how it

J.iaalaoipj:l borrow an

of £1,500,000.

Th, city of O.w Orl^ana would put up §492,000 capital and
dapoai ta of # 1,300,000. a r ,r a g , borrowing r,quir,nantt

* r , 3 1 ,6 0 0 ,0 0 0 , aa ahown ly th, atatawsnt.

Th, Htat, of K,ntucjcv would contrifcut, 31,5',8,000 to
capital and 0: ,7 00,0 00 d * o a i t a , and t b a i r b i l l a p*vabl, und
rw-diacoun*. on Ootob,r 2lat, w h i * war, tw ic, a . grm t u .
thay war, on th, firat of Juna, war, on!;, # 2,4 00,000 .


V* P• G. H& rding


St-to or i^ntuoJty ia in an l s d T «,ul,nt pouitlon.

Tennnaan, -ould cm tribut, 31,128,000 to th, c o it a l
•took and # 5,700,000 d .j o .i i a , * bout th, sun, a .,
Ibut th,lr bills psyahl, and ^ i e o o u n t , in October w ,r,
1 3,80 0 ,0 00 .
Ju n ,.

* ,i r


M r h ,r 1„ Octet- r than t5»y „ , r, 1„
turn, d l f f ,r ,at than th, . t a f


So I f th, principl, Is to b , adopted that a;iy of tfr:s8
bania nuet b , built up on a priaa facl, ind,p,nd,nt baai.
without r , f , ,n c < to your r „ , r v , m>t,8 , T V - li™ th,
probl,>B i . inposs ibl,, to ^tabliaj, a br.nlc tn th, south.
Th, S o c r , ^ * of fc, i r ^ n r r .

Th, point i» thia:


C c a i t t a , h*3 to oena i*,r th, dlrto ton of th, country into
Idiatricta, und,r th* pra- ision of th, b m

U8 t#

hav, du, r , v-d to cony,nl,nc, snd th, euatcuajy coura* of
buoln t»s.

Ho- i„ considering th, probl,* fr«a that atwid,

polm aa * ,x i a . * : th r ,f a r a n ., *„ M

of ^

oth„r factor,

* hat » * * » » ’- U y » n t ,r into th, sttui'ion, aSatvia your
Juta-wt ae to th# f»da.T,,ntal* that , h w M s u id , ua.


und,rtni<- *0 lat tha country off into di*t rlcta that ar,

a» f * r “

PrM tlB»bl" , *» v i „ of all th, condition,, »,lf-

iuatalning or S,lf-contHincd in noroal t i» ,» or und,r nomal

V .P .O .

H a r d in g

42 74

conditions, or should wo e«illM » U l y create a lot of weak
uni te and a lot of borrowing unite so as to get tho naximusa
cf uni to in tho sy«tea

at tho bo .inning?

How ao a banker,

I would lik e ycur v i w on that.
Hr. H*reinr*

y opinion is you should not deliberately

create a nuaber of aistricts weaker than there is any necesoi ty of their being.

For instance, on the proposition we

heard yesterday, of putting Georgia md the Carolina*

h er, I think that ia a bt d * ropoait ion, that

ci«*aea a weaker

ist rlct than there is any use in making*

The Carolina® logically go east, they prefer to ro east*


three state® of G^or ia, Bouth Carolina and No-th Carolina
borrow no re aoney in proportion to thni r bank in,: po er than
any three spates in the union tha t are contiguous, and th ere
ia no uae in staking a district just to suit any one locality
that ia unnecessarily weai.
The Secretary of the Treasure:

Ia it you- view that as

far as p ructicable the Corsraittee ought to coabine a lending
end with a bo t
Sr. Harding:


win re end in creating thr»se districts?
That la ay view, and I believe you ehould

lay out the northern districts with reference to having sane
of those districts so strong in reserves that they are bound


V. p. g . Harding


to look :-ar loan, in eon* of thair aiatar



In th * south.
Th« S^ic m t a r y o f th* Treasury:

Is i t your Jud«B«nt tt*t

w« ouTftt ta hava & « aini^iua nuab^r of *nlts and makn th w
*» Btnong as pom*ibj.*tt or har*t tin msacisiun or eerv* int*rna*diat<* number of units?
Mr. Homing:

dy pnrBonai i c * . on th« subject was that

four would h»va b w n at ronger than ii ht, but th-.ra i 8 no
« • " di«eua»inK that.
at aight.

Congrnaa haa fix-id th < nininra nunb~

X b'lli'iTi *i, ht tanks could bn conatructnti that

would aarra d i.t r io t. that aoulc ba at n>nCnr.

I, I

do not know Just how tha c o n v m im w and courae of buainaaa
would com in tha ra, that la t h . only proposition, but I
baliawa thou,* it waa ‘ho intent of Conexna. whan tb,y
chang ad that nuabar — tha original b ill, aa I undarstand,
which puoaad tha Hous* pnoriaad for a i * t , and it waa <fcang«i
in confertoo* to not loss than
Tha Saer.tar/ of tha Treasury:

It #aa not la.a than

t n i v * in th* Hooan.
Hr. Harding:

Thara <ai aorna, for thay hawa avUantly

mntad tha Organisation Board to hava n a n discretion in th.
matt nr.


V . V. 0. Hording

Th- Be«r«tary of fee Tr-waar/:
purpose of the


That waa exactly the

Act, to give the Orrunlzation Coajittes sone

r. Hardin r:

T h e y ev id o n t ly respo n ded

to some sentiment

in the c o u n t r y v I c h m s p r o b a b ly s o u th e rn se n tim e n t, and
gave t h*»

counn ry no--, than i If h t /

w ith tfrs s e n tim e n t
e h ic h e n a b l e s

to b e e o n e a law at a l l

from the s o u t h a n a vrest.

fkr us I am

«m peculiarly farailiar

th* s o u t h , a n d I b e l i e ire the s- t inertf


th i* b ill

thinic i n j u s t i c e



to some f r i e n d s

c o n e ^n ed



m s larg ely

femlin# h ’sre, a n d I

In tf«w York, I should sc*y ac

I h~
ore n o caapla int to make re, arding

Sew Yo rxj they hays aimys treated me v nry n i w l y , tut
is a s e n tim e n t h ^ r e
w h ic h i a s a i d


in the south against they money power

to be lo c a t

ed in W a l l f>
tr»» et.


f^lt tnat

Hew Y o r k «^b g e t t i n g an a b n o m a l propo -tion o f the bullring
pow er

of t h is country, and that

ail propo ^tiou to i t s no m l


f i n .n o 1 *1 pow er waa out

cc an e rc ia l

felt there ought to bi a better balance*

power, a n d they
They felt that ths

same situation e x i s t e d to a less degree p e r h a p s in Chicago*



th is

money power ought to b e b e t t e r dis-

tributed oyer the country.
times inconvenienced*


They f s l t humiliated said some-

Know o f sm e meritorious cases tHat


W. P . 0 . Harding


have not b w n accommodated; I do not know whether it was
wilfully ©r t at the proposition was not s©und in the opinion
of the

(ewYoric b a k e r s ; but it is more or less huaili&ting

o r a iaan \
*ho Hires 10 *0 or 1500 miles away to fo to Hew
: York and feel that his whole deatirjy is in the hands of one


“ n *hoa he M a

up th ne.



And t’n j~>opl e in tte south would

prefer to have soae hoae baaka.

There are a rreat nany

people who do business in the ?i rut ‘lational Ban* ir,
Biminchita, count ty bant -rs, who would pay us six p«r cent
intireat on loans which wn aa.**

at tiaes , whin they

could get that aor.o worn/ in New York at four and a half
per cent, hut they feel thxt Hew York is a long any off, and
they Rp up there and the a«n they want to see i f viry biisv
and t -

Jo not get alapped on the hack properly, and th;y

cocie to ;Uminj'ha«, and they know us and m do not put on

any *ins with t <*», „nd they would rather pay ua the extra
ooney and do business clans by.
The S e c r e t a r y o f
senr« the


th*» Treasury:

Whut in y o u r j u d g m e n t w o u l d

reatit of the south best,

d i s m issing all senti­

a n d l o o k i n g at it r e a l l y f 10 m the standpoint of

security to thesouth, the aaximun of benefit and advantage
under this bill; what would he b-at, to try to create thesa


. 0 . Harding


dis triots, as I said before, upon the theory tbat *e should
combine a strong end with a **»ak enri, b;

running the dis­

tricts north and south, or lsying th* a out on the theiry of
a homogeneous ootton t^rritc rj or a homogeneous geographloal
territory, as has be m suggested V * f' reat many of the
cl*;i »a?

I isked th* question a stament ago in another form

and you ansvered it, but I put I t in still another fo m ,
because I want to emphasise it*
Ur. Harding!

Of course, the simplest fom would b^ to

have a north and south district in the proposed carrying out
of the theory that th re ms money to lo«oi in the nortfc ana
to be borrowed In the south —
Will $he-e be m much

The Corny-roller of the Currency:
oon*.y in the north h«rmfter?

Ur. /larding:

That m cannot te 11.

develop, i f givn a chuno*.
independent already.
for Birmin

?$aybe the south will

Take certain sections, they are

I think it makes a creditable showing

that we are in as Independent a position as

we are, wh ch I can show y u later on.

The hill provides

that the ?ededa L Reserve Board can permit, or I believe they
can coupel, is it not?
The Secretary of the Trmsu ry:

They may upon the vote of

V. P . 0 . Harding

five a a ^ « n


cotapei on** bank to re-discount for Another.

Sr. Harding:


Thi Secretary o f fs e Treasury:

That is looked upan as

ao m or leas of an emergency provio iom.

yr, JUruing: There is another proposition.

You - io tbs
o w

sentiment in Kashin;rtcn be tter than I do t t at exist eu ail
of this year*

Ws ail fee l, and I do no t bsii tt* th*^a is a


single hanker present in this room, and I doubt if tho re is
an int ellic*it business man present in this room but shat
feels that th" e s c ^ e from a p*,nic in 1915 was due te you,

I feel t u t

>ay, ana I bell ere that is the sentiment

gene m l throughout ths south*

(Applause) •

How when you war* in We# York at the beginning of
h y o u r h ea rin g , I understand there ms a good deal of talk

them about the necessity ©f establishing a dominant reserve
bank there, a v'try powerful bank*
cover a f^reat d a l of territory*
idea is a popular idea.

Bo te peopls wanted to
I do not balin ve Umt that

I do not believe it met — I have

no reason fo making so, but I do not balieve it met the
approval of

lie Organisation Co^imittea.

How if Hew York is

divided so that ths Saw 12nrrland States can be turned over to
Boston, and that is consistent with this railroad grouping

w. P . G. Harding


a * have tri»*d to f&low in laying out thia district hant,
a U Wow Ba&land ia a -a Ha von systasi and tha Boston & Uaine
with haa&£uartara in Boston, and o w y thing focussae in

Than if you will takn tha Hudson Hi Tar Yallay north

| of inm I rk anti draw a lina north and south, lattinf: it conn
about to Schonoetady, taidn^ in :fm York City and Long Island
you hava a hie hank thara, too.

It h, s not siuch loaning

powar, hut that bank can ba f mu for tha op «n narkat propo­
sitions, md thay will hava spar* monay to loan thaaa di&~
tricts in tha south shich lay ba na*idiiv cidditional halp, if
you should daan it advisabla not to r*sly too much on your
roaarva notaa, and I agraa with you fully it is not wall to
usa yiur anargoncy cu-rancy <wca*»t in caaas of amargancy,
a® * ar 48 poss ibla, b aci.usa i f you ara going to hseva an
^arr.ancc/ all tha tin *, w at ara you going to do whan thara
I is a sura-anoui;h aaargoncy?
Tha Hacr itary of tha ry:

Tha purposa of tha bill ia

to pravant aearganciis, and tha thaory is if tha country i»
prop rly laid out, you will not hava tiyoi*
ir. ila^viingi:

But I can saa no obj action to us in 9 your

r-'sanro not* a, i f you provido an wiount always for a margin.
ThAa district wo hava laid out only prov 1da a for an in auo

W* P .


of about h al


Q . H a r d in g

r e s e r v e not** a you h a v e a u t h o r i t y to i a a m ^

th *

The 8 « c m t u r y O f tha T r e u a u r y :
tric ts you have in your a in d ?

d iv id e d

Mr* f r a m i n g :


t ar<* the o t } i v dia-

H a v * y o u a map o f

aa y o u t h i n k i t

ou aht

tha e n tir e

to b * .

This I think ia n o t origin. 1 w i t h a e ; I aaw

it in a hanking journal and I aodif lad it in on# or two

arti csilara, and I have b*en figuring on i t a l i t t l e , a n d I

findnoat o f tha iis tri cts a r a a*»lf-au atwining, and that
th*re a r a two t h a t a r * not at c»?rtoln timwi o f t h a year,
and poaaibly t h r ^ a ; b u t thia is on tha baaia o f eleren, a n d
tha other a ght would ba aalf-auct&inlng.

Tha first ie a

praaunably w i t h head^uartens in B o s t o n ,

New R a g l a n d d i e t r i c t ,

xhat would ba aelf~auataining and would have a o n ^ to ajpara
to so

n other d i s t r i c t .

Hare ia t h i s abbreviated Haw York district, which
would certainly b *


aafaty valv*.

Her** a l o n g tha ahoraa


t h * G raa t Lakoa

doua cozl i* rca whi ch i a g r o w in g a l l

o f r a i l r o ada, y o u h a r a

P e n n sy lv a n ia and

th*? t i n a.




course o f tr a d e

r^thor tlun north and south In that snctlon.

Y o u h ^v w trunk

tha Haw Y o r k C e n t r a l

tha U l d i i g a n C a n t r a l

r u n n i n g aaa t und w e s t .

i a a t ranan-

and tha

Hiekl* Plata

ia aaat



thi north and



••u t h

y °U w i U ^


T ,r y C l«t«



Uy. b
O V ^r


&r*j Juafc f «



P. o. n * « i „ g


o r doH h

th* M « * " " * linos. * ow
r</ * * * t
4 wllieh iB o,rtainl/not

P O l U i c * i touch 1 t h

. f

th. City or

^ Bta‘,8a

x I s t now u n d i r a w
- a *rtifio ial


m ia tlo n

C01171 f rv

counter, u n you und«rGsand.

S ’c r , u r ,



T a k s th, ordinary co l ra« 0 , tr3tl

tinr-,,4 V
> « w

r™ ,

th, Troasury:

» .


y „a .
** *l»-


- i n ,..


‘ ” ■ * •« « *

’ Pk- 18 * /rood town
® U o f <uid T M , d 0 » d totn,lt
* a I>,troit an d a U

PW iinoitU r o f Michigan.




“ <•« of * , o t ,r
to slv„ t h ^ ,
* district o f
» ,


X .l d o u t
' " C " ° rt!W',8t ^
P W Sy l~ * ^ . - M
'*U r ° aC fUil ^
ftnd ^

O h io

and south?-n Michigan —



A ii

of O h l o ?

A U of Ohio and south m K f r i *


»Plit Ohio i f n s e , . ^ .
Th, 8 , 0 r , tary 0 f th, Tr,a)Iary:

° 0Uld
Ho> r ^

d istric t, that ia a u .
ar. Hardins:



I tri»d t, „

than n ,c ,ss *r y , hut at t h , saa, t in . r
J’ t b n 1


» stat, any nor,
th-n. n v b.

W .P . G. Harding


some little sxcressenc^s to be trim «id off.

?or instance,

St# Louis th**m f indicating).
The S ecret ry o f th* T r- *m urc

Just fin ish

that district

Mr. Harding:

That would make a very well proportioned

It look* a little odd at first until you study th*

rail n ad situation then*, *nd then leaving out political
s t a **, lin *a , the industrial situation in that district mak
that a well balanced homogenouos dist rict.

Here are ycur

agricultural operations in western Sew York and northwestern
Pennsylvania, ther* are some good agrlcultu al districts
there, and I believe there is some oil and coul in t t
la f.


and Michigan.

is all of Ohio with its varied industries,
That would give a chance for Colunbua,

Cincinnati or Cleveland to put in a claim for that district,
and it uee^s to ae Cleveland would be the logical censor*
You come to Chicago and you have the s :.-e situation
a *
existing there in a leas marked degrn* than exists in Kew

It is a big town with railroads radiating in every

direction, and it ie one of th* central reserve cities,
t h v have a big business thine.
Thf? Secretary of the Treasury:

I suggest i f you would



G. Hording


f i l e with us thres imps ^nd give u s, i f you w i l l , a tabu­
lated btaterne

of the banking capital and the reserves of

each o f the*# d is tr ic t s as you suggest lh*m,and f i l e i t with :
ths Conmittee , ww should b e glad to have it*
Mr. Harding:

I f you take in W isconsin, Illinois, Iowa

and In d ian a , Chicago would be self- sustaining.
make a r r ^ t

Th^n if you

district west of 'llnn^so ta, following tbs

Horthem P a c if i c and the G ^nat Northern Raiiroc.d out west,
th^ re is a district that some tines m y be a little bit short,
but o rd in a rily i t w ill be a self-sustaining d istrict.


you come in the central r*>up out o f S t. Louis and Kansas
City through Nebraska, Kansas & Colorado, the line o f the
Ubion Pacific and the U issouri Pacific, you hare another big

district ther«f and that is one that would be usually selfI

Then your p a c ific Coast is a vast territo ry , and i t ie
sparsely s e t t l e d , and I presume Kan Francisco is looking for
a ban& out there , and branches coul d be established

at the

other p o in ts .
The Secretary o f Agricultu *w:

Mr. Harding:

Vs h are fou r of the a.

The law not, only admits of branches but

the reserve banks sh all establish brunches.

Here is a

V . P . G. Harding


territory, K<tw Orintina , T e * .« , Oxlahoua, Arkanu^i ana we. ten

Louisiana, tJmt is an ertpi « in ltsslf.

The State o f Texas

covers nearly ten parallels of latitude from the south to
the no rth •— *
Th* S’i c r a u r / o f thi Treasury:

% > t about that dlst-ict

in resources <m po mrf
^r. Harding:

^ U ,

at th .


tiise that district,

I imagine, is likely tc have to b« nursed hy aoraebody else.
It ia goinu to b * ahort at certain tines.
The Seoretoy of th* 7 -usury:

Wh'im would you put the

reserve bank in that district?
*r * iU rii:,c:

thl d i s t r i c t .

14 «*«»■ to » ” D U l a . i s



railro ad

Thu S e c r e ta r y of the Treasury:

the lOKi - location

c e n te r .

You may file that nap ^ith

the tabulation of the different bania.
*r. Baraing; Y<*».

This district I h&ve

out h^r*

without r*fer«nce to Birain h«a in it, tim ruilroaus in
this aiatrict are a group unto th-wasel vee f with the exception
of a few lin<9& *hat run through.

*tw Orleans is a t^minalj

Memphis is a ternilnal for most ro^m and a division t^minal
for oth-ra; Evansville ia a division teralm l, and Louisville
ia a terminal and Cincinnati ia a t *r jinal.
Federal Reserve Bank of St.r m m

Thera are the

W. P. 0 . Hunting

r lv i r s .


You take the f m ight rntis out o f thi# d istrict

and you know your r*%m a n

to thi Ohio r iv * r , and i f you

go tin Miles beyond th i Ohio river you have to pay a ,ood
dial '*xt ra, beoiuse you go out o f thia territory.
yo-ir rat^s

to J?ew O r ii*n a

and M ississip p i

biyond thire yqu at rik * & d iffir e n t rate.

You git

rtvir p o in ts, and
And ivnn your

cotton —
Thi Secretary o f th» Tr^&eujy:


¥ell 9 m a n

fa-nilit*r with

11 roeid a It Ucit ion,

Mr. H& r<2in*~.

That leaves a district over hire on th*?


Atlantic Coast f a t I h<*ve not discribed.


Take Pennsylvania,

u * s i y f Delawaret usd I isa&ine that is b ig enough

territory th^re with enough ba wka in i t to make a good slsed
bank f o r it si If with aotai surplus capital up in th^ro*

T at

would lie*vi the C ity of W a s h in g on, Maryland, West V ir g in ia ,
Vi n?inia f Jforth and. South Carolina and possibly eastern
GOonsAa. and F lo r id a , i f th<gr wanted to follow those routes.

Tho Secretary o f the T riasu iy :

y*b >

is Mxi d istrict

which has been disc rib id by Savannah and Columbia.

^r. /landing:
There is &

I b ill - th** South<?m peopli are sentimental

ood deal of sentient in b u s i n g s , w run up

against that eviry day.

T h i n ari a great many customers

W. P . 0 # Ilarding


that do bus innoa wi th our bank in Bi nainjthaa whnra th^ra ie

no particular mason th-r should do buslnnss th nrw rathnr
than bank across thns

it, or vie n vnrsa, hut thuy aay

havn a li tti n pnrson.*l pr«fnrane«t and th* rn nay bn a lit tin
snntijannt about thn aattnr, ana you cannot gnt around it*
Thnrn ia a annt ii? sit in th*. south that nn ou&\t to h^rn 8«&t
ban s hnrn to sales us indnpnndnntf and thn iona snnna to bn

rally oryatallisnd that th*srn ou^ht to ^

two or

thron banks.
Tha Sncrntary of Sin Treasury:

It is not so auch ths

location of a bank in a city as to gnt th* ri$i t sort of a
d strict to givn thn smith tha rl^ht rnsourcas.
Ur* Haniinr:


Thm Sncrntary of thn Treasury:


vuaslion of local

pridn and p rast lgn I am parf nctly faniliar with, and I an in
sympathy with i t .

I understand tha south and I hava lived

in th * south in c it ins whara thnrn was grnat rivalry.


wn ara bound not t© «iOni*i #sr Hi at but to try and sue urn for
th * south thn thing it nnnds most, that is thn accession of
additional bunking pownr, in ordnr that its rasourens and
nacasjit ins nay bn oarnd for.
l r . Harding:

I understand.

I baliavn thn difflcultins


W. P. 0. Hurdling

o f y o u r Coraaittee h a v e b e e n en h a n c ed v e r y

sectio n


d in tric t




t h i e A c t , b y w h ic h ,


on e ,

and t h r ^ o ,

thn natax of th-! c it y i n

L o u isv ille ,


in s t a n c e , a n d



greatly b y on*

in s t e a d

of m aaberin g

t h i s Cossaittee hus

l i k » th*

thbt i a



r *» « r r « bank of

reason so aany

ambitious e i t i*s a r e d e s i r o u s to h a v * the b a n k .
The C o a p t r o l l er of the C u r r e n c y :

Th«? d i s t r i c t s may be

nunb r e d , but tlvs b a n k has to h a r e thr name of the c i t y *
»ir. Harding:

W ell,

for instance , i f it was a branch in

District ho. i , we would not mind it so much, but nany cf
them would obj ect to having a brunch of the Reserve bank of
Birmingham, for instance.
The Secretary o f the frsasuryi

Have you anything addition*

al to a dbnit?
Mr. H ardin g
Mr. S e c r e t a r y .

There is one thing I would like to i*ubnit,
I do not want y o u r C o a a it ^ e to f e e l , nor

any of these g*ntlesen,

that we have ooiae over froa B l m in £ h « * a

and submitted a plan for the district and asxed to b e cade
the lo <&t ion o f a reserve bank for t h a t d i s t r i c t ,

esling that

we huve a little one-horse two-by-four town over there
The Secretary o f


of any sucfci purpose.
Federal Reserve-----Bank of St. Louis


V e il,

we w i l l a c q u i t y o u

We find yo u are not guilty, w ith o u t

»• P. o. Harding

a r g u m

e n t .

( L


' : a r d i n ’ :





' M -'
Th" "
of count I hi

“bout clearings.




« th , U



•h&t d « r i n , i r t n o t t



inB 9



r te

i »

.« ~ t


o r

r l t v

o n l v
* .1

y o u



a a y


t r * u


& roed

People d o not know

t h e

S e c r e t a r y



t h e



, *

> •'ou *111 ad- t that
^ •a r in g a

nmt oim vA

lndl~ « ™
' H a rd in *:


• S flg
* ljS ^ly t Ti


Of n o r,*! ocBitttlona?

a to it that

* l r » S


- v _

* Th* Bimin/rh*a el4&rin*s
of Check, between h * ^ , .
*„ ooUnct


r* * « l t l n g t *la n c < a


o in; th^y ao nts$ ^ Y„

. ,

CJ* B r l » * '» .




•-/ -y.

There are no outaid. 1 u #

they a r e k e p t m * u




o.a.Ai, and th-re has been

- bnaa» t h . C i t y or JUn»ln (&mm the other day had to pay

- - .o o o , *i30> w o „

to ^

4 # " * lta t,i b"-“ nC* " in * £ h
1^* t-»
d a y , W 1 th„ ^
There 1 .

] •*





,0 .0 0 0 that

nt ^



*o pay thD*. notea, a i l
, ttch W n k a ch^ k ^ ttMn_
aot 8ho.

w h theyr ha*a giT, „ ^ I f

*” d B ° f° rth‘ ' ' "* W U l d * « "

d i^


* * « > .0 0 0


, & ^


shown that *ay.







W. ? . 0 . Hurding


Ho / aji to th* wluttu of busin*ss In Blm in gfcam we have
two national b*nks and five smte banks that ar* ra*rab* n


the Uearin^ nous* , seven cl*arin*f house banks and two
banks not n*ib-r s of th* Cl curing House.

Ws hay* rot capital

and surplus of —
Tii* S*cretajry of the T r^a a y ^:
Hr. Harding;

Y*s, w* have h*d ttet.

Hay* you all those figures?

Th^ S*c r* t ary of th* Tr***au ry:


You might Just a tat*

th* clearings fiv* ye~rs ago and 4lmt th y were this past
tr. H a r d i n g :

tut th«or

I do n o t r e a e n b e r w at
ter* $ 1 7 3 , 0 0 0 , 0 0 0

yolii£3* o f bu s i n * o s .

t h is


*er* f i y * y *a r a

p ast y e a r .

H *ro

i s th *

Th* b a n k s in B i n n i n g ham cont rol t h * i r

tr a n sa c tio n s pretty w e ll,

as I a t at*d b * f o r e .

Vs c arry a

numb r of r*a*ry* balances, inactive balances, and control

our oh -cks so they ar* s*nt to us direct, <
*nd wo got a little
exchange out of it, ana th* oth $r b^nka do th* sani* thing.
Wo control our chooks yery t * u


inactions through a typical bank, th*

Th* voium* of
rst National of

Binain tta , for th* y*ur 1910, th* sun total for th* year,

1 ,0 1 2,00 0,0 0 0 as against Biminrhaa clearings of


That does not rep resent oyer 40 p*r cent of



W. P. G. Harding

th a

to ^ii volun


s i n <*&, no X in f*1 that

voIuri* of

b us in < 1 i 3 : 1,3 0 0 ,0'K)«
7h4 8'?cr«tarj of 'ht Treasury:

you h^v« * lot of » tati*~

ileal cuta. tUars *«hi d you »lll of cou aa t i l a ^ i t h
Corral tta<s t k j.n exhibit to .'our tastiaony.

It will nob ba

vorth *hila to rc**r thaa# statictlca to ub•
thvi In •.v * \


Wa cannot carry

end i f you wll 1 flla thaa m will axazaina

th XI.
You a r* fiunili ir nith tha inc^aaa* of popu­
lation of Biraiindms? and th* buildtn c figuraa?
'a...* Cic r* v
^.ry of thn 'frmaurys


I do not think

B in ingaua i-ts ;.ryVcdy forf*t that.

Ir. Harding:

I rant to fitftto that Bimingha*i already has

d nliantal* cuteida of to mi for borrowing money.


loaned AlfcAawr* or country ban/t $ l t2£?,000 **nd had that
U ic': o u‘ a* on- t in *, ani our -atiaat * for all tha Birainghan
bank a *mn -1,200,0^0.

Th* ahip, ante of cu rrency by tha

’i rot national B.n c of Bimimrhaa to country b^nk corraapondante during th ootton aaaacn of 1912 t and that do ^ not
Includa m y tbat ea * ar.d got it thaa3 *lv*a, but include
fca out, $2,69 0,000 —

B cratary of th*% Treasury:

Those had






* T . Bar ding:


And ») ehipp-a in ua araInst that $ 3 , 0 0 0 , 0 0 0 .

All the Binainfthan hanlca shipped out *4,000,000 and ahippad
in whout # 8,0 00,000, and I can t e n you where it all c«,„

You know whem p»rt of it cam from, wr. Secretary.

Th* Secreta ry o f * e
_a *n

I r e a .u r y :

Ju a t p u ^ l n

i x h i b l t. because 1 1 ia la p o a sib le

fig u re s

in o u r h - a d s .

the record

to car-y th<»e

V« will refar to t h « and examine

rh” ^°®P1roll or Of the Currency:
Mid out # 4 ,0 00 ,00 0 .
hr. iU ruing:

You a hipped in # 5 ,0 0 0 ,0 0 0

That la an estim ate?

T * shipped in about # 3 ,0 0 0 , 0 0 0 .

'o v t r o l l er o f the Currency:

You aald

the Bi- ninghaa

b*nkts, I und irm taod*
M r. f i l m i n g :

And soma o f I t went out a Ter fce counter,

hut o u r ahipraeuto hy expreaa and r»glot»r««d n a i l were
$ 2 ,6 9 0 ,0 0 0 I ' m


the fir s t o f Sapt«d>er to t h e f l r a t of


8 . S. Broaddus


TB3TIM0HY 0? S. S. BROADDUS of D*icaturf A la ,

The Sncrntary o f A g r ic u ltu r e :

Vh&t do you mpr^sant,

Mr. Broaddus?
Mr. Broaddus:
in the

I go t a li ttls original reserve bajpc up

Tennessee Valley with 16 little branch s , and I

just represe nt thera; I had not expect *d to be called on,
so I didn't undertake to represent anybody else.
The Secretary o f Agricultu n :

That 1 n In the northern

part of the State?

Mr, Broaddus:

yec a i r , away up in the Tennessee V a lle y ,

| ri/tht th re (indicating on nap).

The S e c re ta ry o f Agriculture:

Yen s i r ;

what is your view

on t h i s subject, Mr. Broaddus.

Mr. Broaddus:

Ten yea ra acjo — the Tennessee V a lle y

B*»nk is 21 yean: o ld — the no at of the b u sin e ss was w ith

Tennessee p o in t s , Memphis, Cha ttanooga and N a s h v ille , but
in the l a s t ten yea r s , B irriin ^ m n has grown am azingly t and
the convenience and the ease o f doing the b u lk o f one’ s

b u sin ess in B ir a in h a»t *• d e a l w ith two of the Birmingham
banka and

eep the b u lk o f our b alan ces th e re .

The Secretary of Agriculture:


jfhidi Blmlnghaa «ould be the center?

Mr. 3 r


Yes sir, by all aear»*

ant a district of


3* H. Bro.idtius

The Sec retary of Agriculture;
points t }iat you desire to
Mr. Brooddus:


Well, have /ou any othftr
in this connection?

But i f not Birnin/dmia, then Cha*ta.nooga,

and along **ith one of the two, certainly Louisville^ the
great bul* of our business, of course, is no rthw&rc and
Louisville gets imLLs from ail over Alabama into to-norrow
morning1s business.
Th* Secretary of Agriculture:

Louisville would bn /our

thi rd choice?
Mr. B**oaddus:

Y^s sir.

The Secretary of Agriculture:
Ur. Bro oddua:

And Chattanooga second?

Yns air.

The Secretary o f Agriculture:

I oui by ilie thi rd j what

abo ut k e a p h i a?

Ur. B'oad.Jas:

Weil, I don't mat to say anything apainsl

b«t$»hie , hut Me?aphi3 is juat in the sane fix we t
we vant money. Ueaphis mnts it son* than we do.
The S ^ c r e t iry o f Afrricult am :

That is not th e situation

with reference to
Hr. Broaddus:

Woj Birmingham and Chattanooga both are in


funds i- tines when ?e need it*
Th« Secret ry o f Agricultures

Have you any ciuestions,


S . Broiiddue


Ur. Williams?

Ho s ir.

Th* S*cr*tury o f Agricult urs:

Shall I f i l * this as *n

exhibit ( inaicst im* nap)?
Mr. Sro&ddus:

I f you llkn.

Th* S cr^thry of Agriculture:

Mr. Harding:

w % t>iank you. v*ry much.

I would lik* to sak* th*. s tat«B*nt

to what

t h * deposits and banking capital at Birmingham ars.
Th* Coapt roller:

?h*r* is no objection to that.

Th* 3*crstary of A^ricultur*:
’ r. Haruing:

Mo &ir.

C«*pi t*l *nd surplus $7,000,000.00; deposits

4 28 ,8 0 0 , 000 »00 .
STAttt^ir O f MoL^Air m T O W (Poll City, Ala.)
Th*t S*cr<itary of Agriculture:

**r. Tilton, w* *ould

bn w«ry glad to i m r from you on this rsubi« t .
Mr. Tilton:

I haw# a littl* statement h*r* t - will

t&kn about fi\** minutss to mad, and I b 11*to it will
cov*r all th “ points t)mt haw* b**n inqjtirnd about from
th* d iff* rtwit w itnwn^s.
Til* S*cr*tary o f Agriculture:

T*ry W« U , pro o^*d.


McLean Tilto n

4r# Tilton:


If Bimin^ha-a is saad* fc * location of a

tarlon&l B*nk, tv
m* a-ciuion mo inettnti tixnd Alttu-im's
d«i»tin,v, fc ri to * scarcely 1 « > «xt<wit d*t«rala<w th«
caapoait ion of its t nrrit ory.

Th* o w r m t l o n

ai 11*8 with

lik«* forc^: if a logioniil h a n k ia locat*d at Atlanra or
^* w Gri*ans«

If thft latter, Alabama must go to F* w Orleans

wh*th*%r w* wish to or notf if tls* formert im nuat go to
Atlanta ho«iSQ*v*r wall grounded our objection# stay b*.
That this ia i ru« 1 ® indicated t£ th* lof
*ic of th* situation,
r^oo 0rit**d bo th by Atlanta and ? # Orlaana
T *w


wa» in eluded as a unit in *&ch of th*i r rs«p*fat iv* groups*
I b *li*v * I occupy a position which *nahl*s a * to vi«sw
tn^a* tarn* aup*>oa*d plana with a minunum of bias. I hav*
liv*d in Atlanta and I v ia U K*w Orl*ans also st as fra<j.u*ntly
*s I go te Biminrhim.

lu th* larg* ar*as, tributary

to thaaa c*nt*rs, I hav* a wiu* ao iuain tan c* Xiongst bank-? m
and a fairly corapr*$i*nsiw*
confronting th*ra.

knowl*dg« ef b ;sin*s* condi tlona

Speaking f » » this s ia n ^o in t , I b*-

ilsva th* Binainigbam has a nuab*r of advantages ccrapar*d
with th* attar two and ia f rn* also from a nutibir of
diaadvantag*s that r*raiar th*a* oth^r two imposr, ibl* in
■ f juOgn*nt.

Th* low Orleans plan links tog*th*r an *ast


McLean Tilton


and weat section of like clij»atef soil and rainfall, a
auction that is too largely concurred with a singl* crop.
Itg p racti cai eff < t is to divide tha cotton belt into

i ivio ion i f on* o f ihich raiaec th* great bulk of the

cut ton



pm far t h * c o t t o n b e lt a ranged in three

divisions, whioh ia

n e c e a a & r y w ith

the B ir a in .h a r a p l a n .

The Atlanta plan Includes th# State of Alabaoa ana tbs two


Tirol inas have violent and natural reaaona

agiUnat this .-rouping.
for /* v m

Their financial fac *s hare been

turn*a towards th*s e^st.

Thoir connections are

taatward, Hi chsiond, Baltimore, lev York and Boston.
Tha^a tiaa a r e s tr o n g aa decades of s e r v i c e car, make them.
I Th^y hare not looked tc (Jeorria fo r help b ec*.u»e Georgia

haa aim ys been kept aore than comfortably entertained In
toting h er own skillet*

Any grouping of the southeastern

atates that does not diaas ociate the rmrollnas from
Georgia is fundamentally unsound.

A r,rtniping which aaao~

eiatea these three Statea, and pilea Pelion on Ossa *ith
the addition of Alabama to th<*3, ia financial folly.
The Birain^bar« plan ia relieved of the cottcn growing
and raanufactoring load of tha Carolina* , juac the enormous

Ud>s«tn Tilton

crop r , (lu l ™ * ,n U

ot ?wta(>


Taking In Tannoaa,. and

j Kentucky to th, north, It f o m . a natural and hamoniOU3 d m * Ion o f atat,a wi th boundar 1,8 * t a b l i Bh.d by
I natur, i t a ,i f .

L-mpinr 0 y,r a .i d ,

runK, of la itud,, it

prison ta for your c « w i d , m t l « , . « , a r « of d i r * r » i f i ^ and
8i-cc*i«BiTi harvests, tog,th,r *ith nanifold mining and
raanu.'.»cturinz o p „*tio n a .
( 0f n° rth ttnd aouth

It ^cognises th, P r, ,n 4 T O C ,

of tray Hi art cosrmrc; it tak.a

oar, of » a t abould b » reasonably <c ,c t ,d »ith th,
op,nlnS of th, Panama Cabal.

The r.Kion i . not only w.ll

bitldn. d ..thin it.aulf, capabln of a, if a;pport, but it

with th, othor r-giona on <T,ry al
If th* nunb,r of r,giona you d,t«nsln, upon ia to b«

nor, t an ,i r h t , it w i U b , difficult to ov,rloolc a mgion
with Birmingham ua a c , :t,r.

But for o n ,, I aa r,ady to admit

b ,caus, hon,aty iap,la th, adaiation, that if th,

r ii- r of R ,g i.n a l banka ia ,t»*t only, i t la pc«aibl,
. .b,
(X S'iii not aay probabl*), that n,ith«r Bim in. ima,
Atlanta, BOr mw Orl *,„» b,cora,a a Hagional o™ t,r.


f » r ,, not as an udrocat, of Biminghan, but aa a citizon
of Alabaa*, it la of importune, to conai d,r w h,r, will
Alabaaa b , &aBi£n,d in that rr,n t.

It haa b « n

said thit


HcLean Tilton


the success of our govarnawt le explained upon the theory
tlfot errery citizen holds that the polar axis projects s<utam
| throui* his otfn huniet.

Onfortowtely, you haye not a

. f.clent nuab-r of financial axe# to supply the deraand.
Hor» cities are dcoand to disappaintn<nt than to happiness.

I f f ia ’ihe exercise o f your and. unprejudlced

Judgment, the proposal advanced ty Birain/'h&m, is not
r«»:ani«4 with favor, pernit an a tm moments to discuss
an alt *ma*;ive.
a;/ stud/ of this problem several truths appear self**
evident, to wit;

A properly balanced region is the primary problem.

matter ho# incanveni mt the cent m l point may be, br^snches
w i n correct this difficulty.

Be, ardlesa of how desirable the central point may

be, ite success will be Impossible without a well balanced
region to « import it.

Before a fin*«.l decision each region must be studied

in its relation

th all the others.

Ko r gion should be preponderantly atronr, none ex~

| cessively weak.

Width in latitude is more to be desired than width


McLaiji Tilton


in loncituda.

Sigfrt regions should ba sal acted at tly start t with

tha facility latar to increase, rather than atora wi th tba
dangar and humiliation of a reduction.

Existing linaa of cr**,lt, conmarcs and trayal a ra a

co-ordinating factor, not an axclusira factor.

HhM cotton bait must ba sav^rad in two, and prafar-

| ably thr*a divisions.
I f tli^sa ftmdaia^ntaJLs ba traa, tha fallowing a^ranga-aant
of groups is a logical s^uanca.

Boston for Haw Kn^land.

3 tat a alone.



Uaw York for HaVYork

Washington for Pa nnsylva rda , Haw Jarsay,

Daiawara, Maryland, tha Virginias, tha C&rolinac , Georgia
and yiori^a.


Cincinnati orLouisvilla fo r Alabama,

Mississippi, Tannassaa, Kentucky, Ohio, Indiana, and Michigan.

Chicu.go for Illinois and tha northjraat.

for Missouri, Louisiana and tbs southeast.
Rocky Mountain States.



St. Louis
Dam ar for tha

Ban ? ranci -C fo r ths

Pacific Coast.
To condansa a f aw arrruaants supporting this arrmrs*
mant obsarra:
That Haw England b u s t ba say wad from Ms
 Maw York


is to con’ inua paramount, and that

York unlass
th , sana r#«jion«

'........ ■


MofLssn n ito n


in j aj?|li©a with e ^ a l f oroe to Pennsylvania and Kew Jersey.

raait, wher? distances from ciroumfe 'eace to center ere
too greet, branches will overcome this objection.
That a Ftrional hank should be et Washingfton to enable the
Federal He serve Board to kcsp its fisher upon th© fi nun ox si
pulse of the nation.
Thet the ootton belt ie divided into three ssgments,
the Carolinas m d Georgia goin^ where they prefer,
U ba i® freed of the danger of a weak combination si th
them, Texas to


Thet C3iio»ro and St. Louie i«ra

iren «11 they provMI

thesselTe. entitled to end should b« 3»tis?ied.
Thet th. leigeat benk will here less thw twenty
millions capital, and the sm a lle st more than five millions;
estimated q a three per cent oash subscription from
' a l l onal



oet 450 banks, Government bank

capital six millions* Haw York 57? bsnks and twelve millions;
Wa sitingt n 1 7 0 6 banks and lh millions; Ohio Valley

banks and s e v e n millions Oovemment bank capital.

That th jroupine gives to each unit a well balanced
territory; borrowin * and lending sections; diversified
a rioulture, sssnufacturin ~ end ninin,;.


. ,-’V



Jl> 2

tfoLean tiltan

that i t



Ohio, In d ia n a *nd Mldhigen & b a r r ie r

between Hew York end C hicago, In ste a d of the prepondcratin fa c t o

to e it h e r ea stern or western m etro polis.

Thet i t

reoo n i s e s

no rth and south l i n e s

In conclusion:

the con stantly growing tendency to
o f t r a v e l,

cred it and c o n t^ rc e .

We are fortunate in having: this great

question in hands so able us yours*

I have triad to pre­

sent the case as the people Icnow you will decide it upon

the basis of broad Anericanisnu

Xo confine one*s horizon

to the weal or woe of a single c it y , be it lar^e or sn a il,
i s altogether too narrow *n<i s e l f i s h .

I t cannot be even

fa ir ly considered from the wider viewpoint of a single

Credit and credulity are the

which the sun never sets.

two kin-dons upon

The problem of credit is a

national problem, end we w ill rerret the ^ ay when i t i s
forced into narrower confines.

I f you decide against the

Birmingham j l m 9 then lat north and south clasp fin a n cia l
hands across the Ma son-en-Dixon l in
the financial destinies of sections,

c*uel war.

; link together

that were once in

God, with His sender* of tewj rature, ra in fall

and soil in ended thf se sections to unite in rainied matrimony
Wipe out, as this plan ifill do, tha last veetige of section­
al feeling, if , unhappily, my remain, and you will Five


Mcfcenn T ilto n


American e T ln m o l^ wrate. that will enable th, aouth to


t h . union « d the union to lead the world.

tk* ‘ W r

V° U * •

uliO re » m


of thi«


bo suro, country b j ker,>ud voup u*ft»
action *s tho n a t u r e eeoiaions

1 j.* ua y ^ r

or able, honast, prot-r.ooiTO, patriotic » « ,



th lr laral beat to *»te time vindicate your Jud^M nt.

The Secretary of tho Treasury:
irrain. * *

V . should i ik,



b e a r i n g House consider th. aueations wo

•o d n s o .d yesterday to Atlanta, about the effect of co»m it t


r on th . question of A m m m N ,

aa prorid.d

the b i l l } I woulc like for you to oonaider thoao

j lueetiona addressed alao to th. B im in e h m C l a a r U *
Hous.; tho a, ^a a tlo n a »U i be ,u p f li^t by th . r- port.r.

siA m m n or

* . H. i n m e .

-ar'.:ie cn of tho Committee, ?.a I stated bofo ■ we
{brought with ua quit, a number of orator., and „

hwa „

| C » » t de*l of statistiosl ami other information which
we will not submit and not ask you to liaten to, because we
taow your time is too roluable, and a , too* that you hare
already heard thoao

f , fatt, a . « .

° " J Wlt" 0Be f r °m


oaly put 0B

fee! ao atrone in the justice



Vdfcean Tilton


of our o«.usa and hanrs suoh m t h in Btmingiura, thst ws
•re willing to lsare the B im in t *® ease to the testimony
of one vitnoss froa Hirain.-iiMij I think he has oorared tho

Ur. Harding haa covered the ground in suoh a broad

and comprehensive way that hia argument is almost irresisti­

We thrnk you for yaur kind attention, and >e ooaaend

Birminjhna to your careful consideration.
The Ssoro*a*y of tha Treasury:


sap that, if

^liminriM* has any additional data that she wished to have
considered, it m y be filed with the reporter as exhibits
to ‘-r. warding** testimony.
Mr. Harding:

We will file * 11 »*ttere in proper shape,

in triplicate.
The f eoretery ef the Treeeury:

And they will receive at-

ten ties *t the proper tins,
Mr. Kit tig:

We will leave the Birmingham c*ee with

I you.

ihe following communication from JIB* H* £. BKKTT,
d ted Washington, r. u. February 12 th, l»14f addressed to the I
Qoraj.troiler of ths Currency was ordered incorporated in

the record:
com!ttoe at

To quote

r. Burke in his stet©!a©nt to this
"The first abject of th* or ani-

so tion oosamittee sho. Id be to oetoblish os mmy regions
os will be wholly selfrelient throughout oil season®.
In the performance of this task, the following objects
should be kept in mind:

First, to do th

least violence to

estoblishod oowoorciol currents, end relations and a©
forth ond so forth#*
Tfo wish to endorse Ond efiphosiso these vi^ws*

I hove

followed with much in te root the various suggestions for
districting- the entire country, ond there seems to bs a
renoral assent to tne i rxnciples laid down by Mr. Buikt,
but when it comes to outlining districts, many of those

osted, ore not ot all "self-rcli ant throuriiout all

seosons,1 and some do ?jrsot "violence to estoblishod
com wrciol currents ond relations**

Ss*ociolly is this

the case with some of th** districts in which it hes been
proposed to locate South Corolino.

Thet stote is not only

on agricultural state, but sixty-eight jM r cent of its
crops consist of ootton*

While its acreoge under oultivo*

tion is only five million,yet its crop yield for l f O * too sliown
S. - ■
in oensus rej ort of 1910, ses over one hundred and forty


w. H. K i t U g


two million dollars; ite net yield per acre being the
. re*test of any state in the union*
Georgia plents nearly t n million acres with a yield
of two hundred and twenty-six million dollars and sot ton
constitutes sixty-six and two-tenths per cent of its
Mississippi plants six million acres with a yield of
one hundred and forty^seven million dollars, and cotton
constitutes sixty-fire and four-tenths per cent ef her
Alabama plants seven million aor*s with a yield of
one hundred and forty-four million dollars and cotton
constitutes sixty and threa-tenths per sent of her
Texas plants over eighteen million acres with the yield of
two hundred and ninety-eight million dollars m d cotton
constitutes sixty-three and three-tenths per oent of
her orojs.
These are the great ootton growing states

M id


* j rovorticnate bank deposits and resources to manual pro­
duct ion are amongst the smallest of any states in the union*
the bank deposits of South Caroline are only eighteen



H. Kettig

4 5 0 7

Mississippi they are nineteen cants* Osorgia twentyt*e cents.

In the Hew aSagliaid states they are about

ninety cents, and in Stew Yori: owar ei laity cents*

A self-

reliant district cmnot be foissd out of th';se cot ten
states alone.

They Bust be separated m<l joined with

ota r sections where agriculture is not so predominant,
® d the hear!/ demand for money does not eoae at the suae
season otor the entire district.
.Vain the railway systems of the south have established
a north and south trend of trade along the Atlantic
coast, and hare as completely sewered business relations
east and

est as it has beien possible te do.

The products

of the west i*re brought to the coast via Hew York, Philadel­
Baltimore m d Mshsend and diat ibuted by boat or
rail to the States on the Atlantic coast. There is little

interchange of business between aeerria and South Carolina
except in the distribution of goods from tho port of
Charleston, and in s ch cases th

trend of money would

be from Georgia eastward in payment for these.

It is

said te be harder to get a bale ef ootton from the Central
Railroad of

*eorHk» for shipment through the port of




~h*.rleaton than for • camel to „a .8 through the ey® of
a no "die.

Certainly the fact 1 , that little cotton coae.

frow Georgia to Carolina except from Auguste m i vicinity.
To seperete South aarolina from Herth Carolina «nd
Virciaia and place h r in an eent Mid west district with

aserv* hank to tha west of har, would ha to do th*

-re*test joaeible yioi-no« to her established coiamwlal
currents and ral-.tlona.
- ti raly.

in f aot, it »o Id disrupt than

It would be of no

t *1 u *

to you to hay* us

indicate what the district a in othar part a of tha country
should he, because «

had not the information upon which

a* could baae it intelligently.
In ao far as our om state ia concerned, the banka end
b-ainesa interest, want to be included with Sorth Caroline
w d Virginia. \They would also llkt

to be included with

eastern 0«**gi» and Florida, bat tf the latter desire a dieLrio* b*rJl ^

'■•orCia at Alabama, or anywhere vest of the

rtavannah Hiwar, wo would ask that a district be fonaed with
**rjrlsnd, Dintriot af Jaluabia, West Virginia, Virginia,

arolina ,nd South Carolina.

Sudh a district wo aid

b« in with a capital of or*r ei* nillion dollars, and
deposits in encase of twenty ’aillion dollars.

The maximum

» . H. Kettig

430 9

| M i l . payable , f th, Rational Hank, of auoh a di.triot


reaohed fiftoen million dollar, in M i a ,
-illion dollar. in m s .


The „ ^ uro<, . f „

| 9 1 thou* any United S t .t o . >
TCJid bo .l* t y * f iy . w
o«nt of. twenty -Ullon dollar., or t h i r t y a i X U m 4 . ^
plu. th,


^ i t o l , that i . to 3 t y nineteen million dollar*.

The minioiaa projorUon of United States depoeite upon
•hioh «,<* a bank »ight « u n t , would bo .bout ton *iilio«

W« xne 6lxty-flT0 per oent of thie to the above

resource. and - would hare a total f

t-enty-flro « u U o » ,

tirm hundred thounand dollar., Qore than four million dol1 ars l„ exooee of ofcough to take oar* of evon the abnormal
deawitf of l M t August.
* • haro mlm, mode m m 1 * , liry a . to th. **t,n t to which
th' "*
s“ ut re,erTX ” « * •« »*uld expand the.« re.ouroas.
* • h w * no doubt th.t there i n ,

at all tiae ., be .o*e of

th e ., r e .»ire n o t., in <uroulation.

Of oouree, it ia 0f more

interest to a bank to p. t into oiroulation itn 01m notes

« y other, t h . i t . intei rest would be o^ryed by putting-

out re a. nre n o t * ., Seoauae they do not oount a . a port of
the oaah r ..,r r e .

It ie not praotioable to * * * , . T, a w

In t e llle n t | M . a a. to wh.t the amount would b

at the

l * * e .t ported., - h i * are probably January aa* j « » . , ^




H. K e t tir

4 3 10

h*v6 !a6d« Inquiries upon which I think I can safely nay
we qub oount on * demand ef from eight to ten millions of
currency for harvastlnjr the tobacco crop in July and
August f end es much aore for ga the ring the cotton crop in
th4* proposed district in September end October*

Some of

the fom r will be retiring itself however, es the letter
comes into use.
We ere entirely satisfied that such a district will be
wholly self-reliant during all seasons, and will do little
or no violence anywhere to established coastrcial currents
end relations.

To those n«ar the borders, there m g be

•oae in convenience in hevin • sose of the b&nlts we now

do business with in another district, but that cannot be

When It domes to the location of the reserve bank,

1 had best ;ive you the tabulated vote of one hundred
«**d seventy-two banks of the state on the cities of
Columbia, Richmond, Atlanta, Baltimore and Washington

i l L . . .. -

- -«d.

_ 3rd,










S Lohjaond



















It H i

' • **• b t t l g

be aeen that tha majority have vote* for their

•to capital city.

I f we exolude Colunbia, the rate shows

that Biohnond h a . a? l/*- «f tha rota, for first aholc,,

ror aooonc ahoioe; fialtiaore has 12/i, for first

nhoieo and lljt for ssoond ehoioo.

Tho oonHete sere ran oe

of businoas with 'Jaor^la is shown by no botes for
Atlanta as first choice, only tfk tor second choice
wad ? S> for 1* a t cJioico,
*x difet riot ) roi

&bovs contained MfcUonul hanks

with the following stetaa^nte in August 1914,

$a »tOOOfOOO


B ills


# • • ,0 0 0 ,0 0 0

$ 2 ,6 0 0 ,> > >


1 ,9 0 0 ,0 0 ;
3 0 0 ,0>)

"Piet, of Goluabie


T'est Virginia


0 7 .0 0 0 .0 0 0





North Carolina


31 , 0 0 0 , 0 0 0

3 ,* 0 0 ,

South Carolina


1 0 .0 0 0 .0 0 0

S , 700,00-0


Jii be » an that tho neuth Carolina Kational banks

are heavy borrowers in August, ana the state banks, — ny
of when would like to bnoo a

abars, borrow evon more in



4 3 1a

pro) ortion to their capital tlun the National Baiflcs.
raor^ia la alao one of the atatas whoae banka borrow very
hoerlly in ^gurt and Sej.terabc-r.

<«L1,100.00 in

Alabama ie still another.

Tha tiatrict of Columbia ami Teat Vlrpinia borrow v«ry
little and have ak«ch 1 arner banking capital to annual
* ro-iotion.

Virginia and iraiyland also add strength to a
Hence ve have aaked that South darolina, as well

Jarolina, be joined in such a district.

The nacre tary of the Treasury:

Those hearings are, of

c urae, public, end now, that thsse various d t i « s hare
been formally hoard, if there is anyone here who wishes
to 'j® heard, who can shed ttsw light on the problem, e e
.'ill hear froT. them, but we require sev light end not
repetition; anyone that ian uieet that qualification and
• dasires to be heard, the cojtroittee will be ^lad to hear
froa ih'Mm

Senator fsaith, we should he v? ry

haar frosi you.

glad to

We understood you wished to present some

matte sf to the coaraittee.

^e ator nmith:

sa il

(U.S. Senator from am.)

Hr. Chairman md Qmntlomn:

I am

veiy strongly convinced that, undsr this b il l , the soutfraastera

auction ahould receive a separata reserve district


S«n»tor Health

anc heve 6 reserve b«nk.


I want first to refer to *

I i w of thought brought out by questions froa awabers of
th: organ iz.- ion ooaaittee.

Persona who bore V a n before

tha ooasittee, I think put the southeastern section in

f is


I think » bank in the southeastern Beotian

would be self supporting
it i.iok-s twelve.

Th * b ill re ^.4 res eight bankss

Thero ere those who beliered that th

: eel system sas to here but one benk, end place ell the
aoney from ell the banks with the reserve in that one
bank upon the theory that in this say ell the funde of
the country oould be utilized svsrywhere, end of oourao,
if the country was self supjortin - the bank would be
self supporting.

3ut the lepieletion took a different

shaj«; it. required eight end allowed twelve, end the only
cireotion ,riven to ths organisation committee was that
they she Id consider convenience of the course of business,

m i the first thought ia the legislation was oonveolenoe s f
the course of business, and the abandonment of the idea
of one central bank and ths accept mi oe of the view that
-^ ' "

there should be not less than sight was at least lar.-ely
influenced by the desire to furnish convenience.
>0* , I say, that I consider that a bank in this saotion


Hebetor fteith

4 3 X 4

vault, be amply asif supporting.
The necreary of the Treasury:

Senator, will you kind­

ly tell us exactly what district you have in year rcind,
I m m the limitations of th
m n

dietrict, there have been ao

many j idi o pr sented here, referring now to the district
presented by Georgia.
Senator Smith:

Substantially, I don«t think —

The comptroller of the Currency*

Tou include the

Carolina s?


Not nee ss&rily, lorth Carolina.


Senator Staitlu

You don’ t include Kentucky and Tennessee?
I would not include a c rtain part of

I cntucky; 1 weuld not think of undertaking to pull
I*ouievil iu here.

1 think you would find any efforts to

bring LoulsrU le, substantially south of Louisville and to
a city not as larr* aa Louisville greatly resented by the
business interests of Louisville and 1 think it would be
justified in faellag that it was scarcely fair to pull them
out of their ordinary course of trade end course of business
and carry thesi to a saalltr city.

I refer to the district

ef Ssutfc Carolina, ^loric.a, Alabama, perhaps Mississippi,
probably Kissiseii p i ,

ast Xennes^se, .tosi&bly eastern


Ben*tor Smith


Nolrth Carolina, it is not ncoeswry for us to undert**ke to
fix tha exact limit* of the district; 1 wmm thi* south­
eastern section,
flic rec rotary of Agriculture:

You m an western Berth

Senator ifeu th:

Berth Carolina, I meant Western,

this r > thee stern section*
.~ u

I don't know how to treat

Orleans; it is a difficult problem, X may refer tc

that again later; the first thought I had in my mind ires
to !<nswr the s^ gestion that a reserve bank would not
end oould not be aa e independent smd self supporting in
this section.

I tm mire it can.

Th. g«oxet*x7 of %rl«ultur«j

V* m

tryint- to g*« th.

information on that.
Hens tor -mith:

Y* s, sir,

low, a misapprehension would

be draw i f you siajly consider the f gures fixed by the
b ills payable from the banks of this section during the
months of August, September, and October, part of July and
part of Horembar, the four borrowing months *wh*n the ootton
crop ooiaes upon the maricot.

lo aha ire acreinst this


f^aator ?*tith


sootlw the status of borrower* from otfc r section* by
reaeon of their total

b ill,

payable due to banks of other

sections during those four son tha i« entirely inaccurate
«id unjust.

1 think from ay own observation thst 7sc

of ‘ nose notos should be deducted to detensine th« actual
debtor states of this section; they her a th«ir reserve * in
th* eastern banks, principally is He* York; it is their
*a n ;y ; under this n * systsa, it would be in the resarve
bank they hare their deposits * 11 * banks in different
j verts of the country, kept there to maintain an exchange

*itk this new systcm ths reserve banx in this

motion »*uld handle their exchange and the necessities
for thorn deposits would mmse*
ton yost^rday first thi* juoatioa wka brought actire*

1 y to my atteation sad the firat htmker I ret ia Atlanta
I a deed to prepara for ae a statement shoving th«


relation with reference to his oan bank and 1 found that
| while the nominal in.-obt< on ss of his bank arora.-ed for
August, S t- omb-r, October ami Soveaber evidenced by its
J b ills

p ay able

h is



six hundred and thirt.^ninc

four hundred and seventy four dollara t^C3 9 . 4?4 )

b a n k h a d on

 a n t s
H 1 1 ,0 0 0

dsp o ait



and h ad


h a d on d e p o s i t

to it fro* reserve
with other



Ssbsto r flraith


outside of this section for exohenge purposes, 1 7 2 , 1 ^ 5 . 0 0 ,
asking s tot si of S4E3f000 thst it ^es oroditor s^stast

bm'km out aids of this ssction, s einst $639,003. thst
it wes * dob tor; so thst is point of foot, if ths bal­
ance was struck ss it would stand under ths nsw system,
sven durinp those four months, this one of the la r ^ s t
bsnks in our city was really s debtor only $16# ,000.
Of course this fact also is true, thst lost fsll the
treasuxy furnished money here end 1 think this bunk
had seme thing over

100,000 from the Treeeury.


ther feet entering in ss «n eleiisnt to dettxmlne th©
ststus of this section as s debtor section which should
be consider d, see thst this sees benk, during thet p er­
iod, hed on en avera v $45V ,520 duo it fro® other banks
in process of collection.

With the establishment of e

reserro benk in this immsdiete looeiity, oenveni nee to the
use of the bunks in this section, these collections would
be settled much more rapidly, and so large s sum would not
be thus used, snd essily the belence thet I gave you before
thet this benk wee s debtor outside of this section aould
be wiped out, end under tho condition in which it did
business lest ye*r, with the reserve benk h re, the one
hundred and odd thousand dellers thet it received frcm the
would cover ell thet it #oi&ld here been necessary



rt'_ ia

fenotor Sstfth


for the bfcnk to borrow eutsida of the saction.
How * . ; « r , I my th** * • » Tork la a debtor to thi a
auction * m
uati greeter portion of the year than we are

* debtor to No* Tork[ aight aontha in th* y «.r our aoction
c»*rriaa haawy dapooita in Xsw York, ond thoy pay intaroat
on tn-aaj four aontha in tha yaar, «* borrow from Haw York.

I f ,/ou bal&noe th

situation b*tw en ua, you find that

south I f mentfe, takia^ the months I have giren ymi, Hew
York usac more noney out of thi a section then m use out of
Hew York*

I don *t understand that this astern ooataaplates

thet eay reserve bank should b^ or m iz *& with th€ view of
carrying- the eati e b einess of the district i&ich it
serves the w


I thins this b ill was jlaaaed upon

a scheme te prevent that veiy thing or to render it unneces­
sary, ead I mink it succeeds entirely.

It must be

logically true thet pj*ea#ure upon different sections of

1 he country, with our vest ansa « d multiplicity of resouross, industries and enterpr ses, that that pressure will
vaiy during the year upen the different sectionn.

A busi­

ness m m with a legitimate amount of capital for his business

c anno t find it equally aoti vs the year through, and if ha

Senator >^mith


has not mere money in hie business than he e«a wisely
ueo, he finds periods in tha year when he must be e
borrower, so9 if the money of the district was normally
used sill the time, it is more t h « probable that in every
dietriot, some of the outside money from other parte of
the count ty oould desirably be used in that dietriot, ae
th# preeaure for money in any semtion v&riee during tb&
That 'mm the argument in favor cf the asmtrail Bank,


that if we had one central bank, as the pressure from the
various parte cf the country varied during tlie year,
that central bank, having all th© memej, would have it
fcr to put in thie section at one time and that in «i other
and that in another*

How, that scheme was rejected, and

1 think wisely rejected.

The plan adopted was to

localise the reserve banks, and to moke convenience.


special feature of convenience i s also stressed in this

But we now can borrow from Hew York in the

Fall when we nead the money, and we lend to l ew York whs*
Hew Tork needs the money; we have an individual reeerv*
bank in this section, whlcto for fi>ur months in the year
may n
th a n

d more money than it has; it will have more men y
it needs a part cf the year, and this system wisely

permits th* reservt banks to lews te each other.


Senator Stelth


3 think the sohe*. Involves the plan rAmtly of f .o U i t .t l a g
the aovoawt of aoney fro*

no eeo.ion of the country to

the other, ao t h * o n the currency end *on,y in our entire
country a .y he w v e i l * i . «

ttot „ rt 9f u , country ^

It ia most needed, end CUr re.ervs benk in thie noutheeetem
.action w i n for wore then helf of the yeer he able to extend
oen» tc reeerre banks in othor pert, of th* country, end ,


fi_< lean. for four menthe frets 'oeerre

bank. in other pert, of the Union.
money, the

I f they here the m u p lm

would ceeire to let it out, Mid it would be

* "* ryl°* t0 til“" * n i »ot e burden to ceny their surplu.
honey ) * r t of the tia. end p«y reasonable interest on it,
Just ea it will be *n aacoaraodetion to our re.erve benk .
jcrtion of the yshr to f o r n i * it te re.orvc banks in
districts thet need it , end -eoeive in return ths interest
that they will pays end with not 1 . . . than eight nor wore
then twtive, a . your judnaent determine. and m you find

working out ths entire sch ae, all of the bank.,

j^ * | * r t i * lar b«tk probably part of the y .e r nay call
fpon other ris r n bank, for

eajorery loa».j that I

4on*t think amount, to any bid — or .hould ceu.e the con­
clusion thet they er. not . . I f supporting.

Te did not



Senator f&aith


intend, thi® legislation does net intend to put a ahinese
well around e*cli

eeerve dietrict, end here it keep ell of

ite money within lie o*m diet riot; it carries, as au^;sted

by im £e oretery of the Treasury, facility far moresient from
° n" 1?<rt of %hi* ••tw tiy to the other, from reeerrs henk
to reserve lenk; it doee mother thing.


the bill

f ro;3 the Houeet the fund* of the Treeeupy, the f .ads

of the novf mraent were required to he placed, prorated
e xan*jet fell the hanks, with no discretion in the Treasury

to con rol th«e; the histoiy of the bill in

that provision put in by the House representstiv s was
etrioken in th* 8tBfttet and while it is net a part ef
ths written h story, it ie th

unwritten history that

tliis was done under the advice of the c&airman of this
^oard, and wisely so, for two reaeons.
The Secretary of the Treasury:
Senator ^aiith:

v* 11-

X beg your pardon, air?

Tha nacretary of the Treasury:

So ahead, senator.


reserve ay retaarka.
Senator Usith:

1 w in

vO tha statement that

say this, if the Secretaiy objects

t eea on his advice, I will say that

a number of us in the senate insisted upon his -irin^ us
his views, end we ware influenced by them; I don't mem that

Senator Sm ith

he undertook to preew hie rl?wa improperly upon ths 'enate,

but «e Bought them, end m found then v i e * .

Bow, why?

?or two re (.son3 j f i r .t , that the ".erernaent might hare i t .
funcia that tha f*orctaxy of tha Treaauiy sight ba able ta
plaoe th».aa funde not aato»-,tioaily everywhere, whether they
■•re needed or not,
they would do tha

;.t in the pert of the country where



Mow, Let* a see what would be tha condition of the

1 rea ; nr

oank in t M i dietriot.

I hw e sho *i you how ex*

•gp-orotod would be the vi w of ita borrowing requirement*
if vou charge eg’ainat it #11 tho M i l s payable «fcl«h it
jwoo-durin^ the four raontha of mowing tho ootton crop;
I aore oallod attention to the foot that all of the reserve
f thoao hunkM will ho in tha reserve ban* horef and l«r£?ly
available; of oourse, you underatand the limitation that
..the act oarri a, those fi gur*e ar# not nec aa&xiy to *oanti on
I haw»j oallod your attention to the additional facility ia
collections, m d the effoot that would have on reduaing
the amount that wo would ho oal led upon te a t for from

Of oourae 9 it is unnecessary for m

to siention the

faot that you ownot add up all the obligation® of the
banka of tha aouth, end concludj that that

ie all borrowed


JL-^ 3

Senator Oaith


from outside; the large pert of thst for our .w ill banks
ia be proved from tha bigger banks in th' aouth where we bare
borrowing eentere; A a t we want to aaeertain ia tha

| money fro r, beyond the limits of the protocol reserve

Mow, that brin - ua almost to the plaoe where wa could
handle ou.-sslves;


reserve bank hf>a tba ris-ht to box'-

row troa other reserve banka; of course, wa have the —
The Secretary of tha Tr asury:

On the affirmation of

the Board,
^enetor m t h :

On the nffirsmtion of the Board, yes, sir,

i*ad I a*prehend thet the B M i t , of oourse, would facilitate
the mobilising of funds from one part of the country to
th« oth r*

the hoard else is riven tho power by en affirsa-

U t o rote of five te seven te fere® it, but J m not
re-*rcine thet as important; it is a valuable but not
important, not a power that in all probability the Board
will sv*sr have te use*

It will be perfeotly easy fer the

reeerve bank to borrow anything in Edition it wants;
the facility of the ? enks to borrow i f they want to,
on their o^n hook outside durinr that period still exin s,
the cenj^tition eacists the eastern banks that
hare surplus aoney and the reserve b m ks here to make it # * * 4


Senator smith

They have been A l e to get what they



j ly, and thsr* would be no difficulty about their
handling *:h*mselv a, b t our reserve bank will exien#. to
uur res rr® %enks in th# ootton section and in the wheat
sec ion the sane kind of tr *tment and the aaias facilities
At will afford them, nhich the Secretary of the tr asury
gsve thmn last year during the crop moving period s, and
I think the whole schsne of the bill involves ths idea
that the reserve banka shall be pat in a position te
utilise the ourr ncy ©f the entire county by mobilising
it lo the point where it is most needed.
But the b ill don 1 1 stop there at all.

Xhs pever te

issue treasury notes or reserve aotes, is la this b i l l ,
and I don*t understand that it was jut th en simply as a
lir^ asrs] e to get out of the building* if it is on firej
I understand that it is tut there as a practical business
preposition, nett© wait fer entirely abnormal conditions,

o ~iset normal wants, and j.reveat abnormal oonditions 9

that, if tke currency of tho oouatxy was *»pla fo r our
reserve ban/., but if aurine th* cot ten snoving* season, it
needed acre money thm it had te accommodate the banks ia
this section, it touM easily obtain it fro^ other reserve
benks or would find its wants met by th® deposit aa the

iijm iM



mm* tor Smith


Treasury, that they the locution of a reserre i ^ n t of
tho Cor;mmo&t 113 that reserve batik with Treasury notes,
and with author!ty under th© direction of the res. rre
Board to rediscount tho paper of tha rose rre bank, 1
think thst facility was intended to siake possible, not
less t h « eight, end er©n twelre rose rre districts.
It is impossible , j m

could not locate two reserre dis­

tricts or aore then two which all the year would be entirely
fr te frca the need of some outside money; you can’ t locate
e district in the United States that has done businoee for

tha last fire years without some outside noneyj Few York
has not done business without it t and every jart of this
country at »mm period of tho year has a call for som*
I outside money f m

ether jortlons of the country.

Th* focreta^y s f the treasury:

I f you are addressing

i>ivun«nt j f your*, Sonotor, an tho *.a u nation thot
till* Consult toe has olroady dooidod that i t i s to do thot —
^onator teiths

1 m


The peareUry of the Treasury:
Senator Smith:

You are mistaken.

I don't boiler, tho Cownitt.e h*o, 1

;etei that at all; I m slat, ly presenting a U n e of

Senator Smith

bought whloh aeems to »

4s m

pertinent la aupport of rhst j

bellovc is ■ important to our eonalueiona.
Th, s e e n ery ef the Treaaury:
Jeoted thet r o e A

Ye«, ttri i Jttlrt

fop the reeeoa of

a ilin g ettention

f.fein to whet »»■ e»io aerc in the beginning of thie he'.ring,
thet the queationa brought out would he taken Into con­
oid; ration, end I didn't knew whether you ontaaded to
d »voloj) the erruaent or what your parpoee n > ,
s « e t e r s*ith:

* e l l , it wa.


end I jua t wanted to put the irguaant into the reoopd.
The Secretery of the Tr, a « q n

I aa g * * to


tnat yau have b««n ao eminently aucoeanful.
'8n* t0r ^ t h s

B o . gentlarxrn, there e „ to be eight

reserve district*, and I think tha Seat hern Cotton State*

ntltlttd te two of thea.


w be twalve.


believe it ia p o r t e n t to thia aeotion that they *a u ld
located here} we not only want to be the reoipienta
«C go ,d t raotaent, but wa want all tha eountpy to &tow

ia not o i ) l y • setter ef pride; we believe our

section is g v m ta * f .» t e r t h « any other aentlon of thia
country; w, beliave it * . going te oontributa a o « t h . i t .
j ert to the futu e c®

ireial production. of thia oountry,

■ «?v

... .........


Send tor Smith


and wa mint a chanca, w* waat recognition, wa want practi­
cal rscosmitioa and opaa r* cognition, I don*t t a U m


b ill would hava leased sxcspt by th« support of tha *
South, xn ond Vastarn Ssnators*

Tha 8 w « » },ut ia not loss

than twalTS rase rve districts, be os aso tin rsp.'sssntatiwss
know their sections wantad reoognitioa, m d thsy built it
on a plan that did aot rt|uir« s ll th.# year indepa&daaca
In any diet riot.

Th* Senate ?ln«noe Oaaaslttee, the

Renata Banking-* 'Airranay Committee, after a utubbom
fight, brought In a oomj.rtouoe * f eight; six vara fwr aight,
ond aia. were for four.

That waa amended if tar debate ta

not laaa than eight nor more than twelve, and it was done
to in aura tha routhsastszn section s rsserra district.
I t waa not baaed upon tha arpuaent that, with eight, you
'rugk t not bs able to riva it to ths Bouthaastsra ssotioatbut
wa added four wore that you might hare that additional
latitude, and that this section ad gilt bo guarded agaiast
ths possibility of s s«d it io a ahioh would foros you to
ignsr© it as aa InciapGadsnt rsssrvs district with a rsssrva
I want to five a few additional reaaoas ia sapport of this
outness tarn ©action:

It has ths larpsst stats la it


Senetor Saith


eest of tha Mississippi, Georgia; it hm the state thet
shews the most nerrslous growth in the psst ten yeers, in
sericulture, in diversified menufecturine» in oomneroe.
is in tho c enter of the

outhe* stern section*

in it the Ocwa®rci*1 Metropolis of th
of the South Best ern section.


It hee

South, in the eeate*

Let me just for e r&oaent

cell your ettention to e few fects very briefly; mrny are
ell in this record but just two or throe of th&«u

Yea cm

j u % e of the oeara rci el business e city does and the
section it servsa by the

ostal receipts; Atlanta ahow«d

for last ya-.r a ,3 2 6 ,0 0 0 .0 0 , law Orleans,
Louisville 3 1 ,1 6 3 ,0 0 0 TOO, atoaaond

1 , 1 «.2 , 000. 00 ;


m 7 . 0 0 0 . 3 0 j Nashvllls *6i> 3,000.00; Bir-nin,-ba«i $4kto,OOC.OO

and so on.
2 7 7 ,6 X 3 ;

feke tbs paresis pest; going out, Atlanta,

Haw Orleans * 4 7 ,0 0 0 ; Louisvilli

| » , 0 0 0 ; Kaahvllle

# 3 7 ,0 0 0 ;

'40,000-, B lxn l^h sn $ 3 7 ,0 0 0 ;



in Atlanta, t h i r t ^ t f e , I * f Orleans thlry-three, running
on down and giving Hir-ii* a m sixty-five, ehioh *es » stl**-

d id showing.
How, le t 's take th

growth; tha banking oaj.ital in

this city inareaeed 400% in ths last ten years, ths
deposits boo,. *nd thi d


Of course lew

Orleans still hss a larger banking cajital than Atlanta;

JL- 39

Saaptor f&aith


Atlanti* h M s aorta thing" & r & r twioa t h a btn k ln ^ capital of

Atlanta lias ol@ &rin a , I b a l i a r a , naxt to

Haw orlt.&nc, Hav o rl ana bank clea rin g * # ^ * 0 ,0 0 0 ,0 0 0 ,

|7£ &,OO OfOOOf Laularrilia # 7 1 6 ,0 0 0 ,0 0 0 , MaahTilla

* 1 * , 0 0 0 , 0 0 0 , Kaapfela # 4 * a ,0 0 0 ,0 0 0 , aooing aa dowi tp

Birmln^iiaa ^ 1 7 3 ,0 0 0 ,0 0 0 *
Jaw, there haa bean aoma

re a si on of opposition

in Southern Carolina to coming into a district a U t t la
?ost, but wiffli a e come to ths praotioal operation* « f tha
district, I think th y * 1 1 1 find %h

oonvani noa n p l i ,

hure au^ld he no aortiflaatioa to any city in South
Carolina, taoauaa thcra ian*t any city of South Carolina
in th

iiao fcuainsaa d a » a *s Atlanta.

| W8 ** 8° ^
aso c ia lly

That aaorgia would

* »«allar oil;/, and. a w u h amaliar ci ty
ooaeaorai ai ly and in jo in t of bank c le a r in ,,.

*nd *■ P*1* * ot postal reoolpto and In joint of «T«rythiniojtoopt its rala rol

ooouroea, hardly

n - da to bo otatod.

Tbat r.oulsTillo would raa->nt it io oqually trua.
"«s>**io -ould rooont it ia a n a l l y trua.


You oar brine •

a n d io r 01 ty to a largor oity without any aauoa of acuta
I f#ell" P . * *
em a a ro iaiiy ,
 i.eot a #

«*n*t o an y . big oity to a « ^ U , r clty
J m n ia g

th« m s J M l i t l a a

-iioaa later* ata ara in r o lv a d .

of th*





Senator Smith


Wow, I want to ©all yoar attention to th© fact that
thia southern metropolis, th© central distributing point
of tho couth, has been passed upon and ©stablished aa
such by th© Independent industries and enterprises of
the Union.

Where are the headquarters for th© insuraacs

companies doing business in the south?



Atlanta in the third largest insurance city in the United

I ae presenting the proposition of convenience

to the section; I am discussing the southeastern section as
entitled to a renerve district and findinr the p^int in the
southeast «liere the convenience meets the ©ants ef

Th© insuranc© companies considered this prfclem,

snd th©y located their buainess her©, not because they
had interests in Atlanta, but because Atlanta occupied
the strategic point of v*lue to the-e;

152 trains

cows in and go out of Atlanta every day.
The Secretary of the Treasury.

Senator do strsrs con­

venience and accessibility more than th© customary course©
of bueln©sp which the lsw requires us tc consider?
Senator Smith.

I think it comes first; I think the ousts*

^ary course of business—
Ths Secretary of th. Tr.»»ury.

It ia co njunct!*., I

Senator Smith


Senator Smith.


Y«i, hut it it riven first; now, I

think both are important, but I think the customary course
of business ie Tery difficult;

if you take our customary

couree of business, we all 150 to Hew York.
The focrstary of the Treasury.
Senator Smith*

Tor so- things.

Yes sir.

The Secretary of the Treasury. According to the
Senator Smith.

Yes, for money.

The secretary of the Treaeury.

That mey be true,

according to the etatistics.
Senator fciith. Yes sir.

Well then, if you take the

cus*oi*ry courss of b einess, I m presenting that.


is *he customary courss of businea® in insurance throughout
this entire ®outheasters section?


' V?


The third largest

Here is your customary courss of

business shown by the location here of all the great coierercial *t^sn€i«® doing their business through the south.
The Secretary of the Treasury.

It is a complicated

and nultiplsx factor, there is no qusstion about that.
5*naror P^ith.

It ie a qusstion on *tich you can»t lay

down any iron clad rule.


Senator Smith

The score tary of the Tr «asury.


It has get to bt considered

in its rensrsl ecSpe.
Senator Smith.

You hare got te werJc it out and adjust it,

but I a« Just presenting how the insuranee covpwies


treated this »holt southeastern section, shers thay sent
and Viers they had fixed the customary course of business.

Sow then, the telegraph companies put their headquarters
here, the telephone compsnies put their headquarters


I think it ie sefe to sey that thers are wore

I arenta of manufacturing plants and big enterprisss

in other sections of the Union there they hare busi­
ness in th* south, that hare located in Atleata, than
the b- usce of the cities of the south.
tlmore easy than enysrhere elee?
j country

Is n 't Atlanta

The business of ihe

to the South eomee to Atlenta, and is
from here, acting voluntarily, efter her in*

mastered the situation, and this increased end dominating
status of the city as the great distributing point, and
the manufactures of the country, sith their headquarters
hors, and the insursnce men with thsir hesdquarters here,
* " < th* r % U r o *d c o m m ie s maintaining hsedquarters here
illustrates the proposition that
. .. .
10ni that, for this southeastern


Senator Smith.


section Atlanta occupies tha central position with refer*
ence to tha courue of busineaa.

It is the eecogd ^ule

market, I am Just told, in the United States.
The secretary

the Treasury.

T o you refer to that with

Senator S^i th. I don * t know^ if I could heve ra way,
theee southeastern states would raise their om horsee
and their cm -rules and their om cattle, and nevar buy
a pound of

'eat or one sinsrle live stock frerc out this
I believe that ia coming; whan the Secretary

of Agriculture gets in the information he is going to
send to us and stimulates local endeavor, and with that
the power ef this section commercially will increase
*o w t

I an not going to detain this Board. The detailed

figure® you have filed with you by the representatives of
Atlanta and it iculd be ueelese for me to go over tha#

One thing I will mention indicative of growth,!

Have seen the figures for 1912, the buildings of Atlanta
far exceeded the new buildings in 1912 of any other city

in *h

no ath, three times aa much aa Few Orleans; Atlanta

went up to sone thing ever nine million dollars, Hew Orleane

Senator Smith

J T i


a little oyer three million; aa to commercial importance

and dominating atatua in the southam aection, where
Hew Orleana ia lar*r«r ‘ han Atlanta, Atlanta really, comereiAlly In tha course of business**A member of the Birmingham delegation. How about
ycur buiidin^a in 1913, Senator?
Senator Smith.

I haven’ t the figure* for that year.

A neither of the Birmingham Delegation.
Senator ftalth.

We can give then.

Oiva then.

A member of the Biminghwj Delegation.


$6 ,1 3 5 ,0 0 ; Atlanta 85 ,fM8,OH).
° nator f?mith*

I tm aurpriaed*

A ^snber of the Blr*iingha» Delegation.

Birmingham in

D-cember 1913, carried it to a point wore than Atlanta
and Richmond combined*
Senator Smith.

I haven11 haven’ t had time to verify thoae

figures; I am glxd, we feel kindly towards Birminghia.
A member of the Birmlnrhaa Delegation.

You overlooked

; the cenaua of 1910, too, didn't you, Senator?
Senator Smith.

It ia cne of our important outboaata.


Senator Siai th

The Psora tary if th



You are willing to annex

it, even, aren#t you, Senator?
Senator Saith.

Yea, sir, we are willing to give it a

1 ranch bank if it le necessary.
The Secretary of Agriculture.

When you began, you

stated you would return to Hew ^rleanet
Senator &nith.

Yes sir, I ecus back to Hew Orleans. I hare

I been surprised in investigating Mew Orleans conditions
at the small relationship it bears to the territory
around it.

I can hardly comprehend it; there business

•seas to t ! almost thair *n , and when you get only a short
distance off fro a I n Orleans, the business seams to eant
to ~ so.TS where elss.

I - not th. master of thst problem.

X *euld like to say this with reference to the looation
of ^tfionsl Rvtka, Just this much further; of courss,
Boston, V s . York, Atlanta, Chicago, St. Louis, San F ra n c is c o
a bank undoubtsdly between Wew York and Atlanta, Just
.here I don't know;

you could put b i g cities

into ^aiihington and they would not complain#
The Secretary of the Treasury:

I *as Just going to ask

you th!* question; of course, this is a very difficult
question, we hav# been more impresssd with it as we havs




Senator Smith


gon. ow.r th. .n t i r . country, it is not an


pwblea; th.

’latricta haw. b.en laid out h . r . , on. of t h e * augge.ted,
on. of tha suggested diatrict. Includes th. Diatrict of
rol .Bblt, Virginia, Sorth Carolina, South Carolina,
Georgia and Florida and perhaps Alabama; now, assuming
that auch a di.trict a. that w aa l a i d out,

shat .ouid b. your

what s o u l d ba y o u r aacond choice for inatanee,



Senator Smith. * . U ,

I haren't an, ..cond c h o ic .

- ' icr.tary of th. Tr.aaury.

X know you hare n't.

nwiator Pmith: I want th. aouth.ast.rn a.ction tc ha*.
a bank.
Th. of th. Tr.a*ury:

X understand that, but

we wili ba glad if you w i n be good enough to g iT. u. tha
bsn.flt of y ur beat Judffmnt really.
Senator Smith. Atlanta, arain, I eay.
Tha ceor.tary of th. Treasury.

My qusstlon waa. Senator,

what af tar Atlanta, would be your r.cond choice for th.
location of th. r .a .r r . bank in th. diatrict a . d.scrlbsd*
r.nator ftalth: Stat. your di.trict a«aln, ;l e a 0. , Mr.

wacrotary of th. Treaaury: Th. Diatrict f Columbia,


Senator Halth


Virginia, North Carolina, South Carol inc., Georgia and
?lerida and perhaps Alabama, suppose that constitutes the
Senator r&ath.

Tashin non.

The Secretary of the Treasur, :
Senator Smith:



The ^Secretary of the Treaeury:

How would you regard

Senator Smith:

I think Washington would he more satis­

The Secretary of % r i culture:

Let* a put the queetion a

little differently, Penatorj in m y district ia w h i&
eorgie might perhaps be included,

<hat would be your second

choice i f a city had to be taken outside of Oeor^ia?
*»i.nator *«ith.

I would be utterly unwilling I can see

£o district possible to be formed without Atlanta as
the reserve city, unless (Borgia is carried far to the
north to reach a city larger than Atlanta j I would natur*

a l l y feel that the rights of our people were disregarded
i f the metropolis of the south wsre tied te a smelled

p la c e .

8 « » t » r rsaith


of the Tressury:


Tsfes this district

whlali Hi rain h«a has aig-ested, «hich inoiudes Kentucky.

■ ■ 'ua 'I. thi
■ •■ t r

I bare no i articular oriticiaB upon


The pec re tary of tha Treasury:

Asa-jaing, Juat for tha

purv*M of illustration, aaeuaing that such a district as
that mm

laid out, what would be your seosnd choice after

f^eniitor Ssitfe:

I dcn*t think such s district could be

laid out, tou chn’ t |ut us in that district unless you pull
' - rhols of our business up to Louisville, or pull LeuiaTilla d o ® to Atlanta; you oan't pull Louiavill, to a placs
no larger than S ln U a g h m , and with no aors banking capital

mud no rrester cl* *rin*-s.
Tha Seer tary of the Treasury,

law Orleans is in thst

Fern.tor M t h :

Is *sw Orissas in thst district?

The "Qcrstsru cf the Tressury:
| Sens tor Smith:

Tss# sir.

That is swsy doati an ths oois^r.

Tho secretary of Agriculture!

fey I interrupt you to sap

that Louisville did lay out Just that district?
Sens tor Tnith:

And wanted Louisville?

The raoretaiyof Agriculture?

Yes, sir

Benetor BmXtt

| JXi

S e n a t o r Saitiu

I thia


thet is illogical, because

it r o a l d b# » la cfe of e i n ion coqtohI boo;
j ba

tntisf ied w i t h

T>ou4srill« w e a l d

thftt d i s t r i o t if T^oiiisvills were sssd*

thft reserve bftnk, b u t Louigrills <*ould re»e * t thftt district

if you sailed h r d o m

Secretary of %rfccul tur :



¥ ellf ahe s&id ss, she

admitted it*
senator rfcith.

I *w

a u r esit* wwUi; I didn't know it ,

ths adaiaaAon, but I ikscbj,; it .
Th* Controller of th* Currency.

Would you prefer t*

do busiaeaa with T .u i * y U l * next to Atlanta?
Sen f tor Saith:


Th# Qo^ptrollsr of tbs (kfiM M r!
eenstor ^ i t h i

Or Hew orlsas*, ehiohf


The C«m>ti«Utr of th* Currency:

I s»«m *s second

Sen*tor Snith:

1 cun have no ouch second choice, it iu


Th* secretary of the Treftsorys

We would like very troch

te know your second choice, senator?
Senator "tilth:

We would sever have vot**d for the bill

• t *11, i f « • had thoi^ht i t would put Clootie in *uoh * >t fiat,
Federal Reserve Bank of St. Louis

I want to say that the (T iT U t g * o f not l*aa thia

f?aaator Smith

4M 0

eight aor nore th#m t&ralve waa put an to thi a b ill in the
T?emooratie Caucua avowedly to protect us fro® each, &
Ths Saorotary of th


¥s thank you vtxy *uck

Sons tor*
Senator ^tith:

I a * w r y muoh obliged to you goatleiaea.

Ths ?e ere tar*/ of ta* Trsaaurys
‘ a t * hsre of Oha rl stoa?


Are there &ny re}.reseats*

floss# preserve ord; r for s

thsrs asy rtprtiMtiitlT s of Charlsstoa here?

"5sfors the Qoeraitto* a«youras, w© desire to aapraae our
I ajirsoiatioa of the groat eaxneataesa of tha ^dtaess^a aad
th ir iatersats sad also th*; valus of tha information they
hmm presented.

As I atafced s loam t *e *9 thii is »#t sa

easy problem, it is a vary difficult one, and aa are im­
pressed with its gravity aao responsibility resting upon
us, sad ws ahall give very earnest consideration aad very
impartial consideration to tha vievs that hav© bean aje»
preaned herf.
The Committse will now adjourn.

Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102