View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

63D CONGRESS )

2d Session

SENATE

)

/ DOCUMENT

I No. 485

LOCATION OF RESERVE DISTRICTS
IN THE UNITED STATES
LETTER
FROM

THE

RESERVE BANK ORGANIZATION COMMITTEE




TRANSMITTING

THE BRIEFS AND ARGUMENTS PRESENTED
TO THE ORGANIZATION COMMITTEE OF THE
FEDERAL RESERVE BOARD RELATIVE TO
THE LOCATION OF RESERVE DISTRICTS IN
THE UNITED STATES

WASHINGTON
GOVERNMENT PRINTING OFFICE
1914

P R E S E N T E D B Y MR. HITCHCOCK.
IN

THE SENATE OF THE U N I T E D

STATES,

May

28,

1914.

Ordered, That the letter of the Reserve Bank Organization Committee submitted to the Senate on May 18,
1914, transmitting the briefs and arguments presented to the Organization Committee of the Federal Reserve
Board relative to the location of reserve districts in the United States, together with such accompanying maps
and diagrams as may be necessary, be printed as a Senate document.
Attest:
J A M E S M . B A K E R , Secretary.
2




LETTER OF TRANSMITTAL.
RESERVE

B A N K ORGANIZATION

COMMITTEE,

Washington, D. C., April 29,
SIR: The Reserve Bank Organization Committee has the honor to acknowledge the receipt of a copy of
the resolution of the Senate, dated April 14, which reads as follows:
jResolved, That the organization committee of the Federal Reserve Board be, and it is hereby, directed to send to the Senate copies
of all briefs and written arguments made by each city applying to the organization committee for the location of a Federal reserve bank,
together with the poll of the banks and the reasons relied upon by the organization committee in fixing the boundaries of the reserve districts and locating the reserve cities.

In compliance therewith there is transmitted herewith:
1. Copies of briefs, as shown by the list attached hereto, and written arguments presented to the committee by representatives of the various cities asking to be designated as Federal reserve cities.
2. An analysis of the poll of the votes cast by banks expressing the first, second, and third choices of the
respective banks as to the location of the Federal reserve bank, classified to show the result of the vote taken
by States, by cities applying, and according to districts as defined by the committee.
3. Copy of the decision of the committee defining the districts and designating the locations of the Federal
reserve banks.
4. A copy of a statement of the committee dated April 10, 1914.
The resolution above referred to calls for only a part of the evidence before the committee, namely, briefs
and written arguments filed by the various cities and the poll of the banks. In order that the full record may
be available, or such parts of it as the Senate may desire, there is attached hereto an index of the testimony of
the witnesses appearing before the committee at the hearings held, together with an index of exhibits and
papers other than the regular briefs filed at the hearings or with the committee by various individuals, organizations, etc.
To expedite compliance with the Senate's request, wherever printed and typewritten briefs and arguments
were filed in duplicate or triplicate with the committee one of the originals is transmitted. In many instances
only single briefs or written arguments were filed by individuals or organizations on behalf of certain cities.
These originals are not transmitted, but are described in schedule attached.
As it will involve some delay to make copies of all of such records, arguments, and briefs on file in the
office of the committee, the descriptive index referred to is attached in order that any further information
desired may be specifically called for, and such information will be promptly furnished upon request.
Respectfully,
W . G . MCADOO,
D. F.

HOUSTON,

JNO. SKELTON WILLIAMS,

Reserve Bank Organization Committee.
T h e P R E S I D E N T OF THE S E N A T E .




5




BALTIMORE, MD.

BALTIMORE, MD.
February 18,1914S I R S : At Baltimore's hearing before your committee on the afternoon of January 14, last, lack of time,
as also knowledge of the nature of much of the information desired by the organization board, prevented
such clear and detailed exposition of the matter at
interest as was desirable. In the light of the stenographic reports of the proceedings of the board since
the date named and in acceptance of the invitation
extended to submit in writing any further facts and
thoughts which might appear to bear an important
relation to the subject, this statement and its attached
exhibits are respectfully submitted.
In pressing our suit we have not urged nor shall we
urge sentimental arguments nor have we made any
appeal either to State pride or personal or sectional
friendliness in seeking expression from banking or
other correspondents. In each city the board has
visited stress has been laid upon the fact that in giving
effect to the law, reserve cities will be selected which
in their use shall interfere as little as possible with the
natural flow of trade and exchange as heretofore and
as at present followed in the absence of artificial
stimulation. I t is for the reason that Baltimore in
the judgment of its advocates most satisfactorily
meets the requirements of the law in that it is so situated as to be permitted to minister to a large trade
territory as its natural field of endeavor that we venture to rely entirely upon such facts and your reflections thereupon.
Following the Civil War it was to Baltimore that
the southern seaboard States first turned for capital
and credit to be used in building the foundation of
that prosperity which has since been so fully realized.
I t is therefore but natural that Baltimore with its
knowledge of the ambition and needs for the future
of its southern friends in the further development of
their great resources, should wish to continue the
relationship so long established and in the larger
measure which would be permitted in the event that
a Federal reserve bank be there established. As the
seat of such a bank the city would more naturally
continue to invest its surplus, capital, and energy in
directions in which it has been accustomed to employ
it than would be the case should its clearances and
business connections be forced into other and new
channels. Under the new order of things there will
BALTIMORE, M D „




be released or available in Baltimore for investment
larger sums of money than ever before at command,
and as heretofore this capital will seek employment in
development rather than speculative enterprises.
The movement of commerce east of the Rocky
Mountains is generally toward the East. From the
middle and far West, grain, hay, dairy products, coal,
live stock, and manufactured goods seek the eastern
seaboard not only for domestic distribution, but for
export from an Atlantic port. From the eastern
Southern States, exclusive of the movement of cotton
and naval stores, the trend of commerce is northeast
to Norfolk, Baltimore, Philadelphia, and New York
for either further local distribution or transshipment.
Lumber, fruit, truck, tobacco, and textile products
in great volume follow such routing. Of this business
from the South, West, and Northwest, Baltimore
receives, distributes, and liquidates quite its full share,
and naturally so, for the reason that the city in being
closer actually and by rail to the West than any other
Atlantic port also is the point of distribution of a great
trade movement from the South. For like reasons,
Baltimore distributes widely throughout its trade
territory as aside from its export and its large domestic
trade in miscellaneous products; the city is preeminent in the manufacture of fertilizer, clothing,
canned goods, etc., a large share of all of which is sold
in the South Atlantic States, to which general section
also goes a generous share of the jobbing trade in
dry goods, notions, millinery, and hardware.
The business of the city of Baltimore is not dominated by a comparatively small number of great
houses, but is a community of relatively small workers,
all contributing to the support and progress of approximately 700,000 people immediately dependent
upon its trade and commerce. I t is safe to assume,
without supporting figures, that movements of exchange following the track of its related merchandise
and final trade settlements, are far greater in volume
and amount in a commercial and manufacturing city
of 700,000 than in a community of one-half, one-third,
or one-quarter its size. To force such clearances to be
made through the smaller community would not only
be unnatural, but would result in delay in the liquidation of the business of the community making the
heaviest single contribution to the business of a
designated region. In order, however, that the
9

10

LOCATION OF RESERVE DISTRICTS.

organization board may have before it certain figures
and facts upon which the within generalizations are
based, we beg to attach hereto as part of these representations certain tables, data, and deductions therefrom, especially inviting attention to Exhibit No. 15.
Exhibit No. 1.—Copy of typical letter addressed by the Baltimore
clearing house banks to their own southern correspondents only
and not to other southern banks in the territory suggested as having
large trade and exchange relations with Baltimore, a letter of like
character having been addressed by many Baltimore merchants to
their trade in the South.
Exhibit No. 2.—Pertinent extracts from banking correspondents
in Virginia, West Virginia, North Carolina, South Carolina, Georgia,
Florida, Alabama, etc., selected from large number of like letters,
the originals of which are filed herewith.
While professed " State pride " impelled many banks to make first
choice of their respective capital or metropolitan city, it has been
gratifying to note the many exceptions made in favor of Baltimore,
while for "second choice" Baltimore seems to be the prime favorite.
This fact suggests the thought that, sentiment aside, Baltimore is
really most generally in mind as the one to be designated as the seat
of a reserve bank to serve the southern seaboard.
Exhibit No. 3.—Like extracts from letters from merchants located
in the States named under Exhibit No. 2, as also like letters from
merchants in other trade territory related to Baltimore. It possibly
is proper to assume that expressions from merchants directly engaged in business with any given point are more valuable in showing
the trend of actual trade than are letters from banks dealing in
certain directions as the result of inducements offered tending to
disturb the normal flow of exchange. Commercial banks in Baltimore pay 2 per cent interest on average bank balances where interest
is paid at all, and the two or three banks paying a higher rate do
not locally advertise the fact, but rather apologize for it. Where
interest is paid, probably seven-eighths of it is figured at 2 per cent.
Exchange is either absorbed or charged, as individual arrangements
may warrant. In recognition of Baltimore's relation to the South,
it is proper to say that through the banks of that city is cleared certainly $1,000,000 daily in checks on southern banks, for account of
the larger cities east, north, and west of Baltimore.
Exhibit No. 4.—Baltimore bank clearings, showing increase in
10-year period of 72 per cent, or, say, 7 per cent per annum. If bank
clearings could reflect only mercantile and commercial settlements
their significance would be greater. Under existing conditions,
however, they mean little. National-bank deposits in 10 years
increased 47.9 per cent.
Exhibit No. 5.—Comparative statement of 5-year-period resources
and liabilities of Baltimore banking institutions. Increase of
5-year individual deposits, 24 per cent; increase of 5-year bank deposits, 22 per cent.
Exhibit No. 6.—Ratio of single-name paper to total loans in certain
cities and States related to Baltimore.
Exhibit No. 7.—Banking and other out-of-town accounts maintained in Baltimore from States indicated.
Exhibit No. 8.—Lines of credit extended out-of-town banks by
Baltimore banks in same territory.
Exhibit No. 9.—Article from Manufacturers' Record showing
relations of the mutual savings banks of Baltimore to southern development.
Exhibit No. 10.—Imports and exports of port of Baltimore for 10year period, indicating the importance of the city as a foreignexchange center.
•
Exhibit No. 11.—Sundry miscellaneous facts of importance indicating the volume and character of the trade of the city.
Exhibit No. 12.—Table showing percentage of increase in values
in Baltimore trade territory in 10 years and comparative summary.




It is respectfully suggested that these percentages place Baltimore
in a most favorable light, and especially so when it is considered
that an old city of long-established trade in percentage of development can not reasonably expect to continuously show as great an
annual increase of wealth and trade as a smaller and younger community.
Exhibit No. IS.—Statement giving volume of certain of the larger
items entering into the manufacturing output of the city, showing
percentage of increase in 10 years.
Exhibit No. 14.—Copy of resolutions adopted by the Illinois Grain
Dealers' Association (1,200 members). Like resolutions from Iowa
Grain Dealers' Association (1,400 members) and from the Milwaukee
Chamber of Commerce.
Exhibit No. 15.—Statement showing total sales in 1913 of certain
manufacturers and jobbers and the percentage of their sales in the
several States indicated.

In locating a regional reserve bank in Baltimore the
purposes of the Federal reserve act would be more
fully carried out than if located in a financial community of smaller size for the reason that the territory
served by the regional reserve bank will look to the
financial center, where the bank is located, not only to
take care of its commercial paper but to finance all
other enterprises looking to the material development
of that particular region. Heretofore the greater
portion of the country has been looking to New York,
and to a large extent in vain, on account of the unfamiliarity of New York banks with securities offered.
With this regional reserve bank located in Baltimore,
which is a city of large bank resources and whose
bankers are in sympathy with and have full knowledge
of the needs and conditions of that territory, the
purposes of the Federal reserve act will be carried out
to its fullest extent. Baltimore, on account of its
interest, knowledge, and sympathy with conditions, is
much better able to encourage the growth and development of that territory by extending proper banking
facilities than can a smaller city with limited resources
or a larger city without knowledge of conditions in that
territory.
CONCLUSION.

If, after considering the within representations in
connection with the oral testimony offered in Washington on January 14, the board feels that it desires to
have further facts or amplification of any thought
herein or heretofore presented, upon notice to such
effect the lack will be promptly supplied either by
letter or in person, as desired.
Respectfully submitted on behalf of the financial,
commercial, mercantile, and manufacturing interests
of the city of Baltimore.
WALDO

NEWCOMER,

Chairman.
ROBERT J.

BEACHAM,

Secretary.
T h e FEDERAL R E S E R V E ORGANIZATION

BOARD,

Washington^ D. 0

BALTIMORE, MARYLAND.

EXHIBIT NO. 1.
TYPICAL

LETTER.

F I R S T NATIONAL B A N K ,

Baltimore, Md.,
, 1914you are probably aware, Baltimore is very desirous
of having a regional reserve bank established in this city. We
believe that its location here is a most logical one to serve the
southeastern Atlantic coast section.
We write this letter to ask your opinion as to. how you would
view the location of such an institution here, and whether or not
you could recommend to the organization committee such action
on their part.
We will thank you to write us frankly on this subject, and if you
would prefer some other city to ours will you kindly advise us to
that effect, and whether or not we come as second or third choice.
We would like very much to have your views on this subject.
Thanking you for the courtesy of a prompt reply,
Very truly, yours,
, President.
D E A R S I R : AS

E X H I B I T NO. 2.
EXTRACTS FROM BANKERS' LETTERS.

Virginia banks to banks in Baltimore.
Woodstock.—It is our idea of the intention of the makers of the
new law that reference should be had to the general course of
business in laying out the district and locating the reserve bank
therein. Fully nine-tenths of the outside business, commercial
and banking, of this section is with or through Baltimore.
The above is the expression of the feeling of five banks in the small
towns immediately adjoining Woodstock.
Hallwood.—Baltimore is the most logical point, the most fitting
place for the next bank south of New York City.
Berryville.—Baltimore is the most fitting place for the next reserve
bank south of New York. We are sorry that the banks in the South
have not united in the fight for Baltimore.
Parksley.—We think you are entitled to it because the advantages
of your city are too numerous and obvious to cite here.
Accomac.—Baltimore is my first choice.
Norfolk.—Beg to say that we are in sympathy with your desire
to have a regional bank located in Baltimore.
Abingdon.—Baltimore is the central point for most of the Southern
towns. Almost every bank in adjoining States has an account in
Baltimore, and Baltimore bankers are in position to keep in touch
with conditions in this territory.
Montross.—Richmond, our State capital, wants a reserve bank
and we would not like to work against them, but as we are situated,
Baltimore is our city.
Newmarket.—We believe that not only the best interests of this
section of Virginia will be served by the selection of Baltimore, but
also a large section of the South.
Luray.—We are heartily in favor of Reserve Bank Organization
Committee naming Baltimore as the seat of one of the banks.
Stanley.—No other city within our reach can so well serve our
wants and needs as Baltimore. From our talks with other bankers
in the Valley of Virginia during the past five years I find that this
is the general conclusion at which they have all arrived.
Front Royal.—We are heartily in sympathy with the movement
to have a regional bank established at Baltimore.
Alexandria.—As a matter of State pride we have already agreed
to use what influence we have in favor of Richmond, though we
know our interest and preference favors Baltimore. You can certainly count on us in favor of Baltimore as second choice.




IX

West Virginia banks to banks in Baltimore.
Marlington.—We find that Baltimore is better located and more
capable of taking care of all of our interests than any other city
south of New York.
Martinsburg.—It is safe to say, in addition to our general knowledge, that the major part of the business of our local houses is with
your city. Our people have never thought of any other city than"
yours for one of these banks. Our local board of trade recently so
expressed itself.
Board of Trade, Martinsburg.—It was the unanimous opinion that
Baltimore is the logical location for a regional reserve bank for this
section. Appropriate resolution to the effect now being drafted.
Parkersburg.—We prefer Baltimore to Philadelphia or any other
city farther south. I t would be of more benefit to this section than
any other city on the Atlantic coast.
Parsons.—Baltimore decidedly our first choice; commercial center for most of the industries of this section; 60 per cent of our items
come through our Baltimore correspondents.
Romney.—The merchants of a large and prosperous territory do
most of their buying in Baltimore, and, in fact, we believe the
great bulk of business from the fruit, stock, and other agricultural
and lumber interests of this section of the country is done through
Baltimore and Baltimore banks.
Shepherdstown.—Baltimore seems to be our commercial trade
center. Beg to advise you that it seems to be the opinion of our
people that Baltimore should be selected.
Berkeley Springs.—So far as accommodating this section of the
country is concerned, Baltimore is certainly naturally the place.
We have not thought of any other place than Baltimore. I t is our
first choice.
Charles Town.—As fully three-fourths of the business done in this
vicinity is transacted through your city, I believe that this region
is practically unanimous in the opinion that I have given. I regard Baltimore as one of the most important points in the country
for one of these banks.
Fairmont.—Baltimore always has been the reserve center and
sort of a clearing house for a large portion of Pennsylvania, the two
Virginias, and the States lying farther south and has always served
the interests of this territory in a satisfactory manner.
Morgantown.—While Pittsburgh might seem to be the logical,
geographical city for this part of West Virginia, yet for the entire
State Baltimore or Washington would be much more preferable
than Pittsburgh.
Fairmont.—Baltimore is our first love. Cincinnati wired us.
Grafton.—Viewing conditions as we feel them, and we are right
familiar with your section of the country and the country tributary
to it, there is no location in the whole United States which would
be better suited for a regional reserve bank than Baltimore.
Lanes Bottom.—We are much in favor of your city. Cincinnati
being too far west and communications to that point being very
difficult on account of railroad service.
Moorfield.—Baltimore is the fitting place, owing to the central
location.
Mullens.—We heartily recommend Baltimore as first choice. Her
size, central location, and the wonderful facilities she has with her
banks for handling the business of the banks for the southern part
of the United States.
Petersburg.—Baltimore is our first choice.
Piedmont.—Baltimore is our first choice.
Rowelsburg.—For several reasons we prefer Baltimore to any
eastern city. Pittsburgh we have no use for.
Alderson.—Cheerfully and without reserve, indorse Baltimore
because of her geographical location.
Buckhannon.—One reason why we prefer Pittsburgh rather than
any other city is on account of the rate and interest which Pittsburgh banks pay on balances. Banks throughout this section all
pay 4 per cent on time deposits, and naturally feel the uecessity of

12

LOCATION OF RESERVE DISTRICTS.

getting all they can out of their surplus funds. Baltimore would be
our second choice; in fact, we would not feel at all disappointed if
Baltimore was made reserve center for this section.
Beverly.—Think Baltimore would be the logical point. This part
of West Virginia closely allied.
Belington.—Better mail service than any other applicant. We
favor Baltimore as the seat of our district.
Berkeley Springs.—Larger part of our outside business goes through
Baltimore. We much prefer it.
Charles Town.—We people through here look upon Baltimore as
the city for the South, from New York to New Orleans. You have the
largest trade, export and import, good facilities, rail and steamboat,
and in fact we claim you and we hope that we will never have to
be divorced from you in banking or business. But if some other
city is selected, for the Lord's sake keep us with you.
Charles Town.—Believe I voice the sentiments of a large majority
of the people of the Valley of Virginia when I say that we want one
of these banks located in Baltimore.
Davis.—We have more business in Baltimore than in Pittsburgh,
and between the two cities we very much prefer Baltimore.
Shinnston.—Very anxious to see reserve bank in Baltimore, as it
is the central point and natural outlet for the business of this section
of West Virginia.
Shepherdstown.—For many reasons we would like to see Baltimore
designated.
Winona.—We truly hope that your city will be selected. We
think that Baltimore is the proper place for our regional bank.
North Carolina banks to banks in Baltimore.
Haw River.—It would suit us much better to have this section
served by such a bank in your city than either Washington, Richmond, or Atlanta. It would cause less disturbance, as Baltimore
is the present clearing house for most of the North Carolina banks.
Madison.—Would like very much to see Baltimore get one of
the regional reserve banks. We would rather Baltimore be chosen
than Richmond, Va.
Greensboro.—If it were left to the majority of the business people
of Greensboro, they would vote in favor of Baltimore. There is
no city that can serve it better than Baltimore.
Lexington.—I must say that we find Baltimore a great deal more
convenient than our other correspondents. We have never found
it necessary to go outside of your city for any accommodations that
we have needed, and it takes mail only 12 hours to reach us.
Marshall.—A great many banks in this section now carry their
eastern accounts in Baltimore instead of New York City, for we
find it more convenient to do business closer home, and bankers
in your city seem to be in close touch with conditions in this
section.
Hendersonville.—We prefer Baltimore to any town that is near
us that is now seeking one of the banks. Richmond would be our
second choice.
Jacksonville.—On account of the central location of Baltimore
we have special preference that one of these banks be established
in your city. Such location would be very advantageous to this
part of the South.
Charlotte.—Sincerely trust you will secure regional bank in your
city. I very much fear, however, that if there is a bank located
in Atlanta that we will be assigned to that territory, which we
would dislike very much, as more than 90 per cent of the items
we handle are sent in the opposite direction from Atlanta.
Columbus.—In fact, in the eight years of our history we have
never opened a New York account, for the reasons that we can
secure more liberal accommodations and treatment in Baltimore,
your banks evidently being in closer touch and sympathy with
the interests of the south. By the establishment of a regional
reserve bank in Baltimore it occurs to me that the opportunity of
your bank for serving our section would be increased. Otherwise
it is possible that your ability to serve us might be curtailed. This




fact, along with its central location and strategic position as a city
of import and export for manufacturing and commerce, makes
Baltimore eminently deserving of the location.
Kenly.—We have proven our faith by our actions, in that we are
using Baltimore exclusively for our foreign business and Raleigh
for local business.
Hendersonville.—I will state frankly that we would prefer Baltimore to Atlanta or Washington
Ashboro.—The banking relations, as well as most business relations of this section, in my opinion, move toward Baltimore and
Richmond rather than toward Atlanta. From a sentimental standpoint we would likely say that we would prefer Atlanta, but from
a business point of view, which, in my opinion, should govern in
the matter, there are ten to one reasons why we would prefer
Baltimore or Richmond to Atlanta.
Asheville.—We believe that the interests of the Southern States
could be greatly advanced by the selection of Baltimore as a seat
for a regional reserve bank, from its geographical position and
its familiarity with the needs and conditions existing in the Southeastern States.
Elk Park.—We are heartily in favor of Baltimore being selected.
Baltimore's location entitles it.
South Carolina banks to banks in Baltimore.
St. Matthews.—Baltimore is the most logical point to serve the
southeastern and Atlantic coast section.
Anderson.—We are decidedly in favor of Baltimore. We can
not conceive a more fitting place than Baltimore for the next
regional bank south of New York.
Hampton.—We, of course, would not want in any way to do anything that would prejudice our having one of these regional banks
located in our State, but other than this you have our permission
to use our name as indorsing Baltimore for one of these banks.
Union.—I shall be delighted to see Baltimore made one of the
reserve points. If it has to come farther south, I would like to see
Richmond named.
Charleston.—Hope that the city of Baltimore will be designated
for the location of one of the reserve banks. We are satisfied that
when the time comes your city will show the reasons why the
authorities should name Baltimore in its selection.
McColl.—We would be glad to see Baltimore selected and you
may count upon our cooperation in this direction.
Georgia banks to banks in Baltimore.
Dalton.—We unhesitatingly indorse the city of Baltimore as our
first choice for a regional bank for the next bank south of New
York City.
Griffin.—We hope that Baltimore will be favored in this respect,
for the location is well suited for southern territory and is the most
desirable place for the next bank south of New York.
Way cross.—We believe its location is a most logical one to serve
the southeastern and Atlantic coast section. We have connections in Baltimore, Philadelphia, and New York, and we very
much prefer Baltimore as against Philadelphia, because it is a
little closer and we have really been able to get better service
than we have from other points.
Washington.—For both patriotic and selfish reasons, perhaps, we
favor Atlanta for a regional reserve bank. From a strict business
viewpoint we favor Baltimore as a seat for one of these banks, and
we feel that she should have the next bank south of New York
independently of any other city south.
Carrollton.—Carrollton clearing house has, of course, indorsed
Atlanta, but so far as we are individually concerned, we are as much
interested in seeing your city selected as Atlanta.
Montezuma.—We heartily indorse Baltimore.
Bainbridge.—I have watched for 23 years the commerce of the
country, and it seems to me that the business would be better

BALTIMORE, MARYLAND.

served in the cities named. New York, next Baltimore, then
Savannah and New Orleans.
Valdosta.—We favor Baltimore very strongly and will do all we
can to favor your city.
Macon.—While, of course, we do not desire to oppose the establishing of such a bank within our own State, we know of no city
in the entire South where we would rather deal than in Baltimore,
as railroad schedules are convenient and as Georgia has a large
volume of business with your great city.
Augusta.—We have expressed no preference for any city, and
would be delighted should Baltimore be selected as a point for the
establishing of one of said banks.
Tignal.—The service we have been getting from you in your city
as our exclusive northern correspondent has been most profitable
and satisfactory. We feel that she is entitled to the first one of
these regional reserve banks south of New York.
Winder—We unhesitatingly commend the selection of your city
as a location for one of the new regional reserve banks.
Florida banks to banks in Baltimore.
Tallahassee.—Her central location, commanding the great ousiness territory of the near-by States, it seems to us, entitles her to
the first claim as the proper location of a regional bank next south
of New York.
Punta Gorda.—Baltimore should have the next regional reserve
bank south of New York.
Zolfo.—Being centrally located on the Atlantic coast, together
with the fact that the banks of Baltimore for many years have so
well served southern banks, all demand that Baltimore should have
the next regional reserve bank south of New York.
Wauchula.—South Florida being a fruit and vegetable producing
region, the output of which being shipped principally to the large
cities of the East and Middle W^est, makes it very convenient for us
to do business through Baltimore, which possesses such excellent
collection facilities.
Bradentown.—We would prefer to have the bank located in Baltimore, as between Philadelphia and Washington.
Bowling Green.—Its excellent location, we feel, entitles its selection.
West Palm Beach.—We will take pleasure in supporting Baltimore
for one of the regional reserve banks.
Tampa.—As the whole South are heavy users of Baltimore goods,
we feel it very necessary that the regional bank be located in Baltimore, and that it would be a great benefit to the Southern States,
as well as Baltimore, in their general trade and financial dealings
with Baltimore.
Alabama banks to banks in Baltimore.
Birmingham.—The large population of Baltimore, its diversified
industries, its importance as a port, and the further fact that it has
been a reserve city, holding a large amount of the reserves of southern banks, would seem to indicate to us that your city is the most
fitting place for the next bank south of New York.
Mobile.—We feel that Baltimore is the logical point to serve the
Southeastern States.
Anniston.—Baltimore's
location as the gateway of the South
and its large commercial intercourse with the people of the South
should move all our southern bankers to support her claims.
Montgomery.—We heartily advocate the location for one of the
regional reserve banks.
Anniston.—I think that Baltimore would be the logical point for
one of these institutions.
Montgomery.—We consider it an ideal location for one of the
reserve banks.
Gadsden.—I think her importance as a commercial center and her
importance with respect to population and Her geographical location
would make the selection a wise step.




IX

Sundry banks to banks in Baltimore.
Cleveland, Ohio.—We are strongly in favor of Baltimore being
designated for the location of a Federal reserve bank. There
should certainly be three of these Federal banks located on the
seaboard, and if Boston and New York should be designated, Baltimore is the most practical location for the third, especially so
because it has* been for 50 years, and is at the present time, the
banking center and clearing house for the southern Atlantic States,
which should be the strongest influence for recommending a locality if the interest of the public is to be first considered. Especially,
as the most disturbing element connected with the changes to be
made is the diverting of business from old and well-established
channels of trade into new and untried connections: to whatever
extent this condition is left undistrurbed the law will be strengthened and the people's interests conserved.
Chattanooga, Tenn.—It is useless to enumerate the many advantages the town possesses for a southern bank. The trend of business in this section is naturally to that point.
Milwaukee, Wis.—We believe Baltimore's claim for one of the
regional reserve banks is well taken and Baltimore the natural city
for said bank. I t is our earnest wish and desire that your city be
selected.
Delmar, Del.—Our interests are largely with Baltimore, and we
think that in view of its many southern connections it should have
one of the regional banks.
Lewes, Del.—We have this day requested the organization committee to establish a regional bank in your city

E X H I B I T NO. 3.
EXTRACTS FROM MERCHANTS' LETTERS.

Merchants in Virginia to merchants in Baltimore.
Weems.—I prefer Baltimore to any eastern city. Baltimore is
b y far the cheapest commercial center in the United States.
Tazewell.—Believe Baltimore to be the best market for us or
any merchant in the United States.
Bristol, Va.-Tenn.—Baltimore
we also consider as being geographically so as to make an exceptionally convenient and desirable place for a regional bank. The train service in and out of
Baltimore is such that any business transacted in either Baltimore or this territory one day can be transferred to the other territory by the time the banks open their doors the following morning. This we consider a very important factor in the location of
a regional bank. We believe i t will be to the interest of this entire
section of the country to have a regional bank located at Baltimore.
Morattico.—The large volume of business done through Baltimore, not only in Maryland, Virginia, and other Middle Atlantic
States, but in almost the entire South, should, in my judgment,
entitle her to one of these banks.
Hampton.—The location at your city would be far preferable
to any other near-by city, for the reason that nine-tenths of the
purchases of this locality are made in Baltimore.
Suffolk.—We are strongly in favor of having a regional bank
located in Baltimore. This section of Virginia, which supplies a
good deal of raw material to Baltimore and vicinity, would be
helped materially by the location of such a bank in your city. •
Winchester.—It gives us great pleasure to say that we are ardent
supporters of Baltimore for one of the regional banks. We feel
that i t is, by its geographical position as well as by all its commercial advantages, the logical outlet for the southern accommodation in the new order of banking from which we expect the
greatest good that has ever come to the business and farming interests of this country.
Norfolk.—Norfolk Tidewater Credit Men's Association refused
Richmond in favor of Baltimore.

14

LOCATION OF RESERVE DISTRICTS.

Kilmarnock.—We would prefer Baltimore, as we consider that
Baltimore is the only city for the southern markets.
Kinsale.—I write to ask you that you use your influence with the
Baltimore Chamber of Commerce, urging them to do all in their
power to have the bank located in your city.
Port Conway.—Baltimore is the place where we do most of our
buying—is our logical place to do business on account of shipping
facilities; hence it would be our first choice for such a bank, if we
were interested in its location at all.
Irvington.-—Naturally prefer Baltimore to any other city. We
do most of our business through that city.
Middletown.—We in the Valley of Virginia very much desire to
see Baltimore secure one of the regional banks. From a business
standpoint there is no city that is more desirable.
Norfolk.—It would be a real benefit to this community to have
a regional bank established in the city of Baltimore.
Middletown.—Baltimore is my first choice, as the advantages are
very numerous; she can take care of the South to better advantage
than any other city.
Marshall.—Baltimore is my first and only choice.
Port Haywood.—Baltimore is centrally located; easy of access
north and south. Merchants in this section, almost without exception, deal in Baltimore.
Contra.—We prefer Baltimore as the location of a regional reserve
bank.
Pieds.'—In my opinion it would be the proper place to locate a
regional bank in Baltimore.
Hillsboro.—There is every good reason why Baltimore should
have a regional bank.
Campbell.—I think Baltimore is more convenient and more central.
Callao.—Baltimore is the best geographical point and is contiguous to a large territory.
Barksley.—I am fully convinced that on account of Baltimore's
location and trade conditions there should be located one of the
regional banks there.
Kinsale.—I am for Baltimore. Baltimore ought to have it.
Rockingham.—Baltimore is undoubtedly my preference.
Accomac.—Baltimore is my preference without a doubt.
Peytes.—Baltimore is the place for a regional bank from the fact
that it will be convenient to all eastern Virginia.
Nokesville.—We, as well as all with whom I have talked, think
that Baltimore is the most suitable place for a regional bank and
will be of great benefit to the people of the South, especially to
the farmers, merchants, and manufacturers. (Signed by eight
people.)
Woodstock.—As a trading point, Baltimore is in a class to itself.
Hope you will be successful.
Susan.—Baltimore is the most suitable place.
Cheriton.—I am most heartily in favor of a regional bank being
located in Baltimore.
Baynesville.—My preference would sure be Baltimore for location of the bank.
Red Hill.—I would gladly say that Baltimore is my preference
for a regional reserve bank.
Newport News.—It is my desire to see Baltimore, because I believe we get better goods, lower prices, and cheaper freight rates.
Covington.—Baltimore, in my opinion, is one of the most natural
cities and best suited of the accommodations of this as well as other
sections of the South.
Staunton.—There should be no question as regards making Baltimore one of the regional reserve cities. I hope there will be no
disappointment to the southern business people.
Stevens City.—Baltimore is entitled to every advantage such an
institution would bring to her.
Deltaville.—I am in favor of regional bank being in Baltimore.
Wytheville.—I feel sure that Baltimore, by reason or its geographical location and commercial relations with a large number




of other States, deserves worthy consideration when the location
of a regional bank is considered.
Riverton.—It never occurred to us but what Baltimore would be
selected as one of the locations for regional bank, without having
to ask for it.
Fishersville.—I believe it to be the suitable place.
Bena.—With its excellent railroad facilities and steamship lines,
which make quick and easy communication with its surrounding
territory, I know of no city that is better suited for one.
Gloucester Point.—My preference is for Baltimore.
Baynesville.—Don't understand the object or principle of such a
bank, but because of our business connections we much prefer
Baltimore if said bank will be of any benefit to said city.
Wardtown.—Baltimore should have regional bank for the following reasons: Geographical location, population, large territory
which your banks of Baltimore supply.
Harrisonburg.—Am heartily in favor of Baltimore getting one of
the regional banks over New York or Philadelphia, or any other
eastern city.
Tappahannock.—Hope Baltimore may be selected. This city
has always been the natural source of our money supply.
Bridgewater.—From the geographical, commercial, and progressive standpoint, we think that Baltimore is justly entitled to the
bank, it being the greatest trading point for the South and part
of the Southwest, as well as some of the eastern sections. There
isn't any city so convenient and so desirable for a great part of the
country mentioned as Baltimore. Furthermore, we think a good
strong bank in Baltimore would be a great help to all tributary
banks.
Newland.—My preference is for Baltimore.
Zocato.—My preference is Baltimore.
Warrenton.—I can hardly conceive that Baltimore will be overlooked in placing the regional reserve banks.
Hardings.—Hope regional bank will be located in Baltimore. I t
will be a great thing for this section.
Machipongo.—I have had this matter under discussion with
several of our leading citizens, and they heartily agree with me and
say that there is every good reason why Baltimore should have a
regional bank.
Guilford.—Baltimore is justly entitled to it and I hope that the
committee will so consider it.
Front Royal.—It is our desire for Baltimore to be one of the regional reserve cities.
McDowell.—We Virginia merchants do lots of business in Baltimore, and I believe it will be of singular benefit to us and to our
country.
Newport News.—We would certainly like to see Baltimore selected
as regional reserve bank city under the new law.
Orange.—We would like very much to see one of the regional
banks in your city.
Shenandoah.—Baltimore the ideal place, owing to its advantages
geographically and financially.
Winchester.—It is our opinion that the interests and convenience
of our section of the country would be best served by the location
of one of the regional banks in your city.
New Market.—We believe that Baltimore can not only serve the best
interests of this section of Virginia, but also large part of the South.
Mossy Creek.—It would best suit us to have Baltimore named as
one of the regional reserve cities, as this is our principal market.
Wardtown.—I think Baltimore should have the preference.
Wattsville.—We sincerely hope that your city will be the selection
for a regional reserve bank.
Staunton.—Baltimore is surely our preference in this section.
Kirmarnock.—We would prefer Baltimore, as we consider that
Baltimore is the only city for the souther markets.
Altavista.—Baltimore is logically situated for a regional reserve
bank, to give the best possible service to the southeastern Atlantic
coast section.

IX
BALTIMORE, MARYLAND.

Onancoch.—Heartily in favor of the regional bank in Baltimore,
because of its clos proximity to the eastern shore mail and transportation facilities and close business relations already established.
Blackwell.—I recommend to the organization committee the city
of Baltimore as the most suitable place for one of the Federal regional reserve banks.
Bridgewater.—On account of its location and as the largest and
most representative commercial sou hern city, we think Baltimore
should be naturally chosen. We believe this selection will be of
great benefit to the business interests in this section of Virginia.
Peola Mills.—We think Baltimore is entitled to one of the
regional reserve banks.
Norfolk.—Both on account of its geographical location and commercial interests Baltimore would, in our judgment, prove an ideal
designation.
Occoquan.—I think Baltimore by all means should be designated.
Pulaski.— As Baltimore is the logical market for a great portion
of the South, we believe that it will be to the interests of the southern
merchants to make Baltimore one of the regional bank cities. We
are av^are of the efforts that other trade centers are making in behalf
of themselves, and the arguments they advance make us doubly
sure that Baltimore will benefit us the more.
Kilmarnock.—Baltimore would be our preference for the simple
reason that it is more convenient to us.
Warsaw.—Baltimore is decidedly my preference for regional
bank, as this section can not be served nearly so well by any other
city.
West Virginia merchants to merchants in Baltimore.
Buckhannon.—Certainly hope it will be selected, as it is the center
for all this section of West Virginia. I suppose 85 per cent of the
goods that come to West Virginia come from Baltimore.
Piedmont.—We think that the proper place for one of the regional
banks would be Baltimore City, as it would be the most central
location for the States of Pennsylvania, Virginia, Maryland, West
Virginia, Ohio, and Kentucky.
Walkersville.—Baltimore will be the most preferable of the locations of the regional bank south of New York.
Huntington.—I believe the sentiment is practically unanimous
all through this section for a regional reserve bank to be placed in
Baltimore.
Bluefield.—We do not hesitate to say that Baltimore is our preference for one of the regional reserve banks.
Berkeley Springs.—Baltimore is the logical point for a regional bank
in our part of the country. If you want additional indorsements, I
can get a good many business men of this place to write to you.
Letart.—All of our business men I have heard express an opinion
prefer Baltimore, in which I heartily concur.
Martinsburg.—It is my wish that the bank be placed in your city,
and it is the wish of every citizen in Martinsburg.
Rock Cave.—Baltimore for the convenience of Maryland, Virginia,
West Virginia, and North and South Carolina.
Elkins.—It seems to me that Baltimore must have a reserve bank
to accommodate a large portion of West Virginia, Pennsylvania, and
the Southland.
Halltown.—Baltimore has long been and is still a very prominent
distributing point for the East and Southeast, and we know of no
city south of Pennsylvania which would seem to be a more logical
point for such a bank. We earnestly hope that the selection will
be made.
Parsons.—Would like to have the bank located at Baltimore.
Most of the wholesale business of this section is done with Baltimore
houses.
Shenandoah Junction.—Baltimore should have a regional bank
because of its intimate business relation with the merchants, manufacturers, mining, and especially the agricultural sections of the
Southern States and the Middle West.
Rippon.—It is certainly my choice of location as well as a great
number of my business associates.




Shepherdstown.—We have always considered Baltimore the natural
trade center of this section and we are heartily in favor of the plan.
Charlestown.—The sentiment of the large majority of the people
of this valley says that we want one of these banks located in the
city of Baltimore.
Blaine.—Baltimore will certainly be selected as one of the cities
in the East for the new regional reserve bank, first, on account of
its location; second, because of its great wholesale houses, whose
salesmen compass the whole South; thirdly, it is rapidly coming to
the front as a great shipping point for exporting coal and lumber,
having great railroad facilities, as well as abundant water frontage.
Keyser.—Baltimore would be the logical place for the merchants
and business men in general of the Virginias and Maryland, being
in the wholesale business throughout this section of the country,
our daily observations throughout the territory that we cover,
verifies the assertion above made.
Piedmont.—For 100 miles hereabouts, we believe that seventenths of the commercial business is done in and out of Baltimore.
We hope that you will be successful in getting one of these banks.
Keyser.—In our mind, Baltimore is more suited for this particular
branch of the Government business than any other city in the
East on account of its location. First, its very large dealings with
the South and Southeast; second, its arms of commerce reach out
more ways than any other city of its size in the United States; and
third, it is in closer touch with more towns that will be benefited
by this step taken by our Government than any other city in the
East. We people in West Virginia are very much in favor of Baltimore being the place for one of the regional banks.
Jacksonburg.—In lieu of the fact that Baltimore has an extensive
trade in this part of the Ohio Valley, I believe it would be to our
advantage to have one of the regional banks in your city, that we
could be more advantageously served by a regional bank in your
city than we could be by one farther west.
Elkins.— It would be to our advantage to have a regional bank
at Baltimore, as we can be served to better advantage there than
at any other point.
Denmar.—We feel that it would be a great convenience and a
great benefit to surrounding States, especially States south of
Maryland.
Thornton.—Baltimore is my first choice; first, last, and all the
time.
Parkersburg.—We are very much in favor of Baltimore as one of
the points for this bank.
Charles Town.—Baltimore is the commercial center for a large
area of the South, and without the banking facilities of Baltimore,
this section will be severely handicapped.
Grafton.—Baltimore being a centrally located seaport of the
East gives it the advantage over any other place. A market
center as well as a financial center for a great surrounding territory.
Bluefield.—We hope it will be the wisdom of the administration
to establish one of these banks at Baltimore.
Keyser.—By all means get one of these banks in Baltimore. We
feel as though it would be a great benefit to us.
Shepherdstown.—Am heartily in favor of Baltimore. It is a
great banking and commercial center for a large scope of country.
Romney.—I have spoken to several of our people and they are
for Baltimore, and I am.
Thomas.—The banks of your city are looked upon in this section as being more conservative and safer than in some cities that
might lay claim to this territory. You are more closely connected
with the business interests of this section than any other city and
have always been looked upon as our home city.
Martinsburg.—We see by the papers that the location of a regional
reserve bank between Baltimore and Washington is being considered, and we write to ask you to do all you can with other commercial houses in Baltimore, whether they be merchants, manufacturers, bankers, brokers, or retailers to have the bank located
in your city. Washington is not a commercial city and they
know very little about the conditions obtaining in the general

16

LOCATION OF RESERVE DISTRICTS.

line of business. Take all this section of West Virginia, and Washington is scarcely known as a trading center, and we have no doubt
that this is so nearly all over the South Atlantic section.
Dorman.—Baltimore should be the place for it.
Mill Creek.—Baltimore is the place for regional bank.
Sutton.—Know of no city would rather see get it than your city.
Burlington.—We wish to state that we hope to see Baltimore
selected as one of the regional-bank cities. I t is the one city where
we purchase our goods, and have done so for 40 years.
Hendricks.—Baltimore should have one of these banks, as it is a
centrally located and great commercial city for a large scope of
counrty.
SJiepherdstoivn.—Have no hesitation in saying that Baltimore is
the ideal location for this section. Connection with Baltimore by
wire, rail, or express can be quickly made, and our long acquaintance with Baltimore bankers and merchants would more readily
bring us help in time of financial stress.
Keyser.—As we do all our dealing in Baltimore, we think the
regional bank should be there.
Romney.—Baltimore is our first choice.
Morgantown.—Will you kindly do all you can to secure a regional
bank in your city. We are satisfied that it will be of great benefit
to you and also help us.
Cass (.Pocahontas County).—We believe that Baltimore should be
selected as one of the regional reserve bank cities for the reason of
its advantageous situation, whereby it commands a fine maritime
and inland business.
jEdray.—Our preference is largely and absolutely in favor of
Baltimore, rather than any other city of money centers with which
we have any commercial communication.
Swiss.—Baltimore, by its geographical location, we consider
desirable, owing to the fast increasing commercial relations between
the business men of this State and the firms of that city.
Albright.—Baltimore is entitled to one of the regional banks. We
feel that Baltimore is peculiarly located to handle the business
originating in all the inland States to which Baltimore railroads are
tributary.
Buckhannon.—Lumber, logs, and forest products shipped to and
through Baltimore run up into thousands of car loads every year.
Baltimore is our shipping point for live stock, and our merchants
buy large quantities of merchandise from Baltimore houses. I
earnestly ask that we may be favored with the selection of Baltimore
as the location for a regional bank.
Piedmont.—Baltimore is the only city reached by two railroads
from this section. The greater part of our lumber and coal business
is transacted at that point, and more especially when shipments are
by water.
Kingwood.—I will venture the assertion that Baltimore transacts
more business in one; week than Atlanta does in the whole season.
Bens Run.—Baltimore should be one of the cities to be designated
as the proper place for a regional bank, as she will always be one of
the centers of radiation and of rapid access in times of stress. I
really am not as yet satisfied with my understanding of the new currency law to really give a definite opinion as to where any of the
banks should be, except from the best point of radiation.
West Union.—It is our desire to have one of these banks placed
in Baltimore, and we are writing to see if you can not use your
influence in locating one there.
Cameron.—We think your city is certainly a proper place for one
of these banks. We think it will facilitate business through this
section and would urge its location there.
Grafton.—By reason of the immense amount of traffic going out
of West Virginia, most of which is handled in the East by the banks
of Baltimore, and in view of the fact also that nearly all of the West
Virginia Banks carry large accounts in Baltimore, it would seem
that Baltimore would be the logical situation for one of the regional
banks.




Salem.—We, being located in West Virginia, and doing considerable
business with Baltimore, are of the opinion that the city of Baltimore
would be the central point and ideal place for the operation of such
bank.
West Union.—Baltimore is in direct communication with the
larger part of West Virginia business, especially along mercantile
lines; not only is this so in regard to this State, but it is largely so
in regard to a vast amount of business throughout the South. Baltimore probably receives more than three-fourths of all cattle shipped
out of this State. A large number of the banks carry balances with
the Baltimore banks, it acting as a distributing point for the banking
business for this State, items from both the East and the West.
North Carolina merchants to merchants in Baltimore.
Mount Airy.—We think it very important that Baltimore be selected as one of the regional bank cities, first, in behalf of its manufacturing enterprises; second, as Baltimore has the greatest commercial facilities of any southern city, and we think to be made
a regional bank city will meet the approval of all merchants.
Newbern.—According to our views we do not see how the city of
Baltimore could be left out, taking into consideration its importance to the South and its close business relation to all the Southern
States.
Wilson.—I believe that at least two-thirds of the North Carolina
merchants visit Baltimore to buy goods at least twice a year. I
feel that it is the logical point.
Goldston.—Heartily indorse Baltimore. I voice the sentiment
of all North Carolina. Geographical, .banking, and commercial
prestige demands this recognition.
Manteo.—As most of our business in this State and practically in
the South is with Baltimore, it would be advantageous to us throughout the South.
Wilmington.—Baltimore is best located for serving the southeastern Atlantic coast section. The Federal reserve act proceeds on
the distinct idea that a central reserve bank is undesirable, and to
locate a reserve bank in Washington would not be in response to
commercial demands. The very fact that a bank was located
there would tend to develop the idea of a central institution and
would perhaps cause it (Washington) to exercise an influence out
of all proportion to its commercial importance.
Hamilton.—All eastern North Carolina is in much easier touch
with Baltimore than Richmond, and we sincerely hope Baltimore
may be selected.
Durham.—Baltimore is the logical location, certainly as far as
the South is concerned.
Charlotte.—Baltimore is situated so that with the institution in
question there we believe that it could be handled with a great deal
of benefit to not only itself and territory immediately around Baltimore, but on account of the immense amount of business done in
Baltimore with the merchants throughout the South.
Morgantown.—Baltimore would be a great advantage to the whole
South; more so than any other city in the South.
Hillsboro.—I think North Carolina generally would favor your
city. You have a situation and facilities to handle the States'
business probably better than any other city.
Burgaw.—Heartily recommend Baltimore. One of the most
progressive cities in the South, its manufacturing facilities, in my
estimation, are not to be equaled south of New York City. As a
market in which to buy dry goods, notions, shoes, and clothing, it is
the best the writer has ever visited.
Oriental.—It is the very best and most convenient city for our
section (North Carolina) to deal, having low freight rates, quick and
direct service to and from this section.
Murfreesboro.—Baltimore is the place, because of its size, influence, and commercial relation extending over a larger territory
than any other southern cities that I know of.

BALTIMORE, MARYLAND.

Swan Quarter.—Our bank had its annual meeting on the 7th and
recommended Baltimore as the city.
Trotville.—I am writing to-day, asking you by all means to have
Baltimore selected as one of the regional-bank cities; otherwise it
will be a great inconvenience to us.
Sunbury.—Baltimore makes it much more convenient for us all.
Greensboro.—We believe in all probability only one of these
regional banks will be located on the eastern seaboard between
New York and New Orleans. If only one of these banks should be
thus located, our preference is decidedly in favor of Baltimore,
because of geographical location as well as extensive business
relation. I t is the logical location.
Elm City.—I believe it will prove of greater service to the South
than if located in any other city.
Lexington.—My preference is Baltimore.
Concord.—On account of its location, midway between the interests of the North and South, it would be an injustice to the entire
country to leave Baltimore without one of these banks.
Wilmington.—Have heard it spoken of by some of the bankers
here as being in Atlanta. However, Baltimore is nearer, and of
course a much better city.
Harrellsville.-—Its location, size, and influence makes it an ideal
city for the purpose.
Parlcton.—It being a great city for the South as a jobbing town
would prove to be of great value to the people in the entire South.
Conetoe.—I would prefer that Baltimore be selected as one of the
regional reserve cities.
Wagram.—It is one of our principal markets for buying and selling
and we feel that greater benefit should be derived from a regional
bank in that city than from some other.
Aberdeen.—Am thoroughly convinced that Baltimore should have
one of the regional banks^for two reasons—commercial point and geographical point. I believe it will help my business.
Durham.—We feel sure that it will be to our advantage as well as
yours.
High Point.—Personally, we believe it will be especially to our
advantage.
Haw River.—On account of Baltimore being the best market for
the southern merchant, I prefer that Baltimore be selected.
Salisbury.—It will be a great advantage to the merchants of this
section of the South.
Wilmington.—Our interests would be best served by the establishment of this bank in Baltimore and in your efforts to secure this
you have our hearty support and cooperation.
Durham.—Very cheerfully give my indorsement. I believe that
a bank in your city will be of untold advantage to this section of the
country.
Durham.—We believe that it will be to the advantage of our whole
State to have this bank in your thriving city.
Asheville.—It will be to our advantage to have such a bank
located in Baltimore.
Carthage.—We know of 110 other city that is so easily reached
from our State as Baltimore that is commercially large enough for
one of these banks.
Elkins.—We prefer Baltimore being selected, as we buy most of
our merchandise there.
Randleman.—We are very much in favor of Baltimore having a
regional bank, because it is our market, and, in fact, is becoming
the market for the entire South.
Elizabeth City.—In our opinion it will serve a greater number of
people than any city in the East, with the exception of New York.
You are located especially well for the Middle Atlantic States and
Southern States; better than Atlanta, since you are veritably the
gateway to the South. Baltimore is one of the largest jobbing
centers in the country.
Winston-Salem.—It will be a great advantage to our section if
Baltimore could land one of these regional banks.
46458°—S. Doc. 485, 63-2




2

IX

Raleigh.—Baltimore is the ideal location for this bank, especially
in view of the fact that it has a large southern trade. This bank
would be in ready access to the South.
Greensboro.—Baltimore is entitled to this, and it will be greatly
to our advantage, as well as to the advantage of all the South Atlantic States.
Washington.—The best location for the regional bank for this
section of the country.
Greensboro.—As one of your southern customers, I take the liberty
of entering an urgent request that you appeal in the strongest manner possible to the administration to give to the city of Baltimore
one of the regional banks under the currency act. It will be of
very great advantage to us.
Winston-Salem.—A few days ago we had a delegation here from
Richmond soliciting our support to help them secure one of the
regional banks, but our board of trade and our retail merchants*
association both declined, and I candidly believe it would be very
satisfactory to our business people here for Baltimore to have one
of the regional banks and for Winston to be placed in that district.
Elon College.—We do not see how you are going to get along and
do the business you are doing and ought to do without it, and serve
your trade like it ought to be served. We hope you will keep after
this matter until you have it clinched.
Greensboro.—In our opinion there is no southern city better
qualified or more entitled to be selected for a regional reserve bank.
If left to us we certainly would select Baltimore as our preference.
Newbern.—We believe that a regional bank in Baltimore would
be in the best location to serve all the States along the Atlantic
seaboard.
Hertford.—We are very much in favor of having a regional bank
established in Baltimore, as we believe it will be of great assistance
to the business interests of eastern North Carolina.
Hertford.—It is the natural location for one of these banks if they
are to be the greatest benefit to this section of North Carolina.
Statesville.—We regard it as the most satisfactory location to
which this part of the South is tributary.
Apex.—Baltimore being the purchasing center of the South, we
think it very important that it be one of the regional bank cities.
Lenoir.—As Baltimore is the natural mercantile center for this
section of the South, wish to impress upon you that the business
people of Baltimore should do all in their power to secure one of the
regional banks.
Wilson.—Baltimore is the ideal place for the southern merchants,
and we earnestly hope to see one of the banks in your city.
Newbern.—As a business house we certainly hope that with the
combined efforts of your good people you will be able to have one of
these banks placed in Baltimore.
Pactolus.—Baltimore is the great mercantile center for the South,
especially eastern North Carolina. Would be very glad to see
Baltimore get the regional bank.
Maxton.—Since the passage of the bill we have looked upon
Baltimore as the logical point to serve our section best.
Lexington.—We want to express our preference that Baltimore
be selected as one of the regional bank cities.
South Carolina merchants to merchants in Baltimore.
Brunson.—The time tables of the railroad and other transportation organizations will show that Baltimore has rapid and convenient connection, not only with the agricultural States toward the
Southeast, but with the numerous manufacturing and mining
interests that lie near by and to the north of this great city, greater
and more logical reasons than mere city pride why Baltimore
should share in the distribution of the $106,000,000 of working
capital of the regional reserve bank system.
Cheraw.—Will prefer Baltimore to any of the other northern
cities near by.

18

LOCATION OF RESERVE DISTRICTS.

Orangeburg.—Hope that Baltimore will be made, without fail,
one of the cities for regional bank, being so closely identified with
the South and her business interests. The committee will be
serving us well and wisely, I think, to make this selection.
Georgetown.—It is the utmost importance to have one of these
banks established there, both on account of geographical location
and large commercial relations in this part of the country, especially
in South Carolina.
Pelzer.—It will be very much to the advantage of this section to
have one of the regional banks in Baltimore. We buy practically
all of our goods in your city, and it is the logical point of distribution for this section.
Charleston.—After due consideration, we are of the opinion that
we, as we see it from our standpoint, would really prefer Baltimore,
as a desirable point for a regional reserve bank, over any other city.
Bennettsville.—Would like very much to see your city selected.
Would say there is more business done through Baltimore with the
cotton States than any other southern city.
Georgetown.—Baltimore will be a practically logical point for a
regional bank to serve the southeast Atlantic coast section.
Anderson.—While Atlanta is very near us, believe that our interests will be best served by the location of two of these banks, one
in New York and one in Baltimore.
Greenville.—Indorse the movement to have a bank located in
Baltimore. Would be of benefit to the greater portion of the South.
Anderson.—We believe it will be to the best interests of southern
merchants to have one of these banks located in Baltimore, as that
city is in close touch with conditions in our section and it will be
very convenient for the transaction of business.
Lancaster.—I think the logical point for location of regional
reserve bank is Baltimore.
Charleston.—We are heartily in favor of regional bank being located at Baltimore for divers reasons.
McColl.—We have already written the powers that be in reference to location of regional bank in Baltimore.
Georgetown.—We believe it to be the logical point for one of the
southern regional reserve banks.
Charleston.—We would be very glad indeed to see Baltimore get
a regional bank to serve the southeastern Atlantic coast section, as
we believe it would be to our advantage here.
Rhems.—Baltimore would naturally be the best point for such an
institution—that is to say, from our point of view, as we think the
location of Baltimore is such that would serve our section of the
country best.
Latta.—Believe it would be of great benefit to all commercial
interests.
Beaufort.—We consider that it is more important for her to be so
named, so far as we are concerned.
Clio.—Would be quite a convenience for us in our business transactions from Greensboro, N. C., as well as from this point.
Timmonsville.—Wish to express ourselves that Baltimore be
selected as one of the regional reserve banking cities.
Georgia merchants to merchants in Baltimore.
Elberton.—Inasmuch as we buy most of our goods in Baltimore,
we will be very glad, indeed, to see one of the regional banks established there.
Gainesville.—It looks to us as though Baltimore will be the logical location for one of the regional reserve banks.
Elberton.—We beg to say that it will be a great deal better for us if
Baltimore was selected as a place for one of the regional reserve banks,
as we do more volume of business, both with the banks and through
the merchants, than with any other city in the United States.
Thompson.—There is a greater mutual understanding between
Baltimore and the South than any other city in the country. We
had rather see Baltimore have one of the reserve banks than any
other city in the South.




Bainbridge.—I find her merchants to have the most liberal business policy of any city in the Union. If the Government will equip
her with these banking facilities, they not only have Baltimore,
but the entire South, Southwest, and Middle States.
Perry.—The situation of it gives the city a commanding position
for business of both sections. We believe the committee will make
no mistake in selecting Baltimore.
Dublin.—Baltimore is one of the best cities in the South from
almost any viewpoint. We most heartily give our unqualified
indorsement for Baltimore.
Nashville.—As one of many southern merchants, am deeply
interested in your efforts to have Baltimore selected as one of the
regional reserve bank cities.
Cuthbert.—I will be very much pleased to see Baltimore selected
as one of the regional bank cities, and am sure every southern merchant would be, as Baltimore has always been the best market for us
and always in sympathy with us in time of need.
Waynesboro.—We feel sure the South as a whole would like to see
the above.
Sandersville.—Would you please use every effort in your power
for Baltimore to be selected as one of the regional bank cities?
Winder.—We believe your claim will demand that the Government place one there.
Fort Gaines.—I certainly do think Baltimore will be an ideal city
for one of the regional banks.
Donaldsonville.—I would like to see Baltimore get one of the
regional banks, as I think it will serve southern people far better
than Philadelphia.
Thomasville.—Consider Baltimore very logical point, and certainly think one of them should be established at that point.
Barnesville.—Your city, being so situated, being right on the
border, being the gateway of the South and yet accommodating a
great part of the East, should be, by all means, we believe, made the
place of one of these banks.
Atlanta.—I believe that no better location exists in the neighboring States.
Cairo.—Think it would accommodate the South for one to be in
that city.
Macon.—We write to assure you that this selection would meet
with our heartiest approval and indorsement.
Douglasville.—Believe that commercial importance as well as
convenience in location make it one of the very best cities for one
of the new regional banks.
Dawson.—I think Baltimore should be one of these cities.
Florida merchants to merchants in Baltimore.
Jacksonville.—There has been some talk of having such a bank
established here, but in the event that it has to be established in
some other city we most gladly favor Baltimore. We believe the
merchants of Jacksonville will favor your city in preference to
Atlanta.
Jacksonville.—Take pleasure in saying that -we recognize Baltimore as the most suitable location, for numerous reasons.
Arcadia.—We trust that you, as well as every other wholesale
establishment in Baltimore, will use your every effort to have
Baltimore selected as one of the regional bank cities. Its accessibility to one of the richest and most rapidly developing sections in
the United States make it the one most logical city east of the
Mississippi River.
Bradentown.—I have taken the matter up with some of the
bankers here, and they are in favor of Baltimore in preference to
Philadelphia.
Gainesville.—One of these banks located in your city would be of
great benefit to the banking and commercial interests of this southeastern territory, and could serve it as well or better than any other
city we have in mind.

BALTIMORE, MARYLAND.

Tampa.—We believe- it to be to our interest and urge that you
take such steps as will insure the location of a regional bank at the
above place.
St. James City.—Most of our banking business is done through
Baltimore, as well as a great deal of our commercial business. We
take this opportunity of expressing our desire that Baltimore be
made one of the regional bank cities.
Palatka.—Will be very much in favor of one in Baltimore. Do
a great deal of buying there, and it will be a big help to me.
Madison.—We heartily indorse Baltimore as being the proper
place for a regional bank, owing to its location.
Jacksonville.—Trust you will be fortunate enough to secure one.
It will be a great benefit to this section, as well as to yours.
Marianna— The establishment of one of the new regional banks
at Baltimore will be of great benefit to people not only in that section, but the entire South.
St. Petersburg.—Baltimore is one of the most favored commercial
centers of the South, and the establishment of said bank will prove
a great benefit to the commercial interests of the South.
Alabama merchants to merchants in Baltimore.
Montgomery.—We note that there is some question as to Baltimore being named as the location of one of the regional reserve
banks. We had concluded that from its location and importance
there would be no question of its selection, as it occurs to us that
it is the logical point, and that Baltimore would be the acceptable
reserve bank city to serve the section including a good portion of
the South.
Greensboro.—We consider your city the most propitious location
for such an enterprise in the East, as far as our business and as we
believe the business of the entire southeast of the Mississippi River
is concerned.
Birmingham.—We are of the opinion that Baltimore would be a
very suitable place for the situation of such a bank, being located
as it is geographically, and especially would it be an admirable
situation for such an institution for the merchants in the South.
Oxford.—As we of the South do largely our trading in your city,
we think the establishing of one of the regional banks in Baltimore would make money easier for the merchants in that city,
thereby enabling them to help the southern merchants.
Fulton.—It is the greatest desire of the Scotch Lumber Co. that
one of the regional banks be located there.
Littohatchie.—As Baltimore is a great distributing point for the
South, I trust you will use your influence in securing one of the
regional banks.

IX

great bank that the New York people are trying to put over. We
don't think that the bank in New York should be any stronger
than the other banks.
Goodland.—We prefer Baltimore to Philadelphia or any other
city south of New York.
Rosedale.—Considering the location of the city and it being one
of the greatest export grain markets in the United States, we see
no reason why you should not have a regional reserve bank located
in Baltimore.
Tipton.—Baltimore is centrally located, and we believe such
action would be a great benefit to Western shippers.
Goshen.—Baltimore is a great export outlet, having a lower
inland rate than either New York or Boston. It seems to us that
one of the regional banks should locate in your city, and we would
very much favor it.
Ohio merchants to merchants in Baltimore.
Celina.—Since you called our attention to the matter, we could
think of no other city in the East whereby a mutual distribution
of funds could be made for the purpose of financing the crop movements by the establishing of a regional reserve bank, as provided
for under the new currency bill, than to have the same established
at Baltimore. We are quite sure that our local territory could be
served better by the regional bank being established at Baltimore
than it could in any other eastern city.
Cleveland.—We are strongly in favor of Baltimore being designated as the location for a Federal reserve bank. There should
certainly ba three of these Federal banks located on the seaboard,
and, if Boston and New York should be designated, Baltimore is
the most practical location, for the third, especially so because it
has been for 50 years, and is at the present time, the banking center
and clearing house for the southern Atlantic States.
Cincinnati.—Baltimore, in our opinion, is located right, and you
surely ought to have it.
Cedarville.—On account of its large export business it has always
been a reserve center for the West and South. Baltimore is the
correct city south of New York.
Illinois merchants to merchants in Baltimore.

Greenville.—We note that an effort is being made to have one of
the regional reserve banks located in Baltimore. It occurs to the
writer that this would be a very logical point for the same, and will
conserve the interests of the country possibly better than any other
for this entire section of the South.
Chattanooga.—It is useless to enumerate the many advantages
the town possesses for southern banks. The trend of business in
this section is naturally to that point.
Memphis.—However, we believe that your town can enter the
contest on its merits as an industrial center, and secure the regional
bank without reference to the sentimental aspect of the case.
Memphis.—Your city is our preference, and, in our opinion, your
geographical position and large manufacturing interest gives Baltimore a claim with undebatable rights.

Fillmore.—It seems to us that Baltimore would be the most fitting
place south of New York for a regional bank.
Tuscola.—I think it would be almost absolutely necessary that
one of the regional reserve banks should be located there; when
there is a large export business on grain, Baltimore needs all the
resources possible to pay the western country for the grain as it
arrives.
Springfield.—With reference to location of one of the regional
reserve banks for the territory south of New York, it seems to us
that Baltimore would be the ideal selection.
Pekin.—In view of the immense export business that is carried
on at Baltimore, we think it would be an ideal location for one of
the reserve banks, and will be of real benefit to the West in providing funds for the handling of export business.
Ancona.—We would be in favor of having one of the reserve banks
in Baltimore.
Chicago.—Our large business through that port would make us
greatly in favor of your city being selected, and we believe it is
entitled to this privilege.
Elliott.—I think it is just the place for one and has been for a
long time.

Indiana merchants to merchants in Baltimore.

Missouri merchants to merchants in Baltimore.

Evansville.—I do not know of any city on the Atlantic coast that
could better serve the people of the Southeast.
Danville.—We think that Baltimore is the most fitting place for
a regional bank outside of New York. We are not in favor of the

St. Louis.—We think that you are so situated as to be of immense
use to the country at large, having the connection that you enjoy
with the South, Southwest and the West, and we can not but feel
that our reasons are well grounded.

Tennessee merchants to merchants in Baltimore.




20

LOCATION OF RESERVE DISTRICTS.

St. Louis.—Baltimore would be the logical seat for one of these
banks. We think that her location, size, and her enormous interests entitle her to be selected.
Iowa merchants to merchants in Baltimore.
Des Moines.—It is central for the grain business and is about the
right distance from New York. Iowa does a large shipping business
in corn with Baltimore, and I would like to see the bank located
there.
Keokuk.—Will say that we will be very glad to see Baltimore
favored if there is a bank located at a seaport south of New York,
and we feel sure that our banking institutions in Keokuk are very
favorable to your city. We have more business in Baltimore than
any other city on the Atlantic seaboard.

Dunkard.—Owing to the location and the fact that Baltimore is
a business center, we are certainly in hopes that it may be selected
as one of the regional-bank cities.
Warfordsburg.—I would prefer Baltimore to be selected, it being
the center of trade on the Atlantic for the North and South.

E X H I B I T NO. 4.
Baltimore clearing house exchanges:
1903
$1,169,531,519
1913
2,011,447,000
Increase in clearings covering the 10-year period, .per c e n t . . 72
Increase in clearings for 1913 over 1912
do
7
Increase in deposits (national banks), 10-year period, .do
47. 9

Minnesota merchants to merchants in Baltimore.
Minneapolis.—We believe that in the interests of the grain trade
of the Northwest, that Baltimore would be a very acceptable location for a regional reserve bank.
Wisconsin merchants to merchants in Baltimore.
Milwaukee.—It is our earnest wish and desire that your city be
selected.
Merchants in Pennsylvania

to merchants in Baltimore.

Pittsburgh.—From a selfish standpoint we hope that you may be
successful. When we say selfish, we do not mean it from a personal
viewpoint, but in the interest of the lumber industry at large. Baltimore is the largest southern city on the eastern border, through
which we clear on nearly all of our export shipments. In fact, we
think it will be ideally located to serve the lumber industry from the
Middle West and South, and we hope you will be successful in
securing it.
Dubois.—We believe that your city is located just about right for
cine of these banks, and we will highly indorse any plan toward
securing one of said banks to be located in your city. We feel sure
that a regional bank in Baltimore will be a great benefit to us as well
as the majority of the business interests throughout this section.
Littlestown.—It is centrally located between North and South and
can be conveniently reached from all points with very little delay.
We are decidedly of the opinion that Baltimore should be used in
preference to any other large near-by city.
York.—We believe that Baltimore will be the most central point
in the East to have one of the regional banks under the currency act.
And we voice the sentiments of many others in this vicinity in
asking the Treasury Department to place one of these banks in
Baltimore.
Lebanon.—It would be a great advantage to us and sincerely trust
that your city jnay be successful in securing the same, as we would
like to have and enjoy the many advantages of same in Baltimore.
York.—We heartily indorse such suggestion and trust that the
authorities will give your city the regional bank your citizens are
requesting.
Glen Rock.—I am in favor of Baltimore to have one of the regional
banks.
Hanover.—We most heartily indorse Baltimore City, believing it
would be to the best interests of all business men.
Hanover.—We believe it will be of advantage to us to have a
reserve bank in your city.
Quarryville.—We believe it will be of advantage to us to have a
reserve bank in your city.
Milton.—I would prefer having Baltimore selected as one of the
regional bank cities.
Mahanoy City.—I p r e f j r Baltimore as the city for a regional
bank.
McKeesport.—We heartily indorse the movement to induce the
Treasury Department to locate one of the new regional banks in
your city.




E X H I B I T NO. 5:
Resources and liabilities of all banks in city of Baltimore, April, 1909,
figures for any previous year being unavailable.
"RESOURCES.

Loans and discounts
$78, 710,000
Bonds, securities, etc
116,360,000
Banking-house furniture, fixtures, and real estate
11,980,000
Due from banks and bankers
26,420,000
Checks and other cash items and exchanges for clearing
house
3,530,000
Cash on hand
10,180,000
Other resources
710,000
247,890,000
LIABILITIES.

Capital stock
Surplus
Undivided profits
Due to banks and bankers
Dividends unpaid
Individual deposits
Postal savings and United States deposits
Notes and bills rediscounted and bills payable
Other liabilities

$23,140, 000
21,090,000
4, 620,000
28, 760,000
20,000
153,930,000
1,340,000
920,000
14,070, 000
247,890,000

Resources and liabilities of 55 banks in the city of Baltimore on June
4, 1913.
RESOURCES.

Loans and discounts
Overdrafts
Bonds, securities, e t c . . .
Banking-house furniture, and
Other real estate owned
Due from banks and bankers
Checks and other cash items
Exchanges for clearing house
Cash on hand
Other resources

fixtures

$118, 912,253.94
45,140.89
125,101, 001.19
..
7, 916,101.00
2,196, 556.19
29,262,875.12
477, 356.96
3, 856, 639. 92
7, 924,005.20
1,166, 686.54
296, 858,616.95

LIABILITIES.

Capital stock
Surplus
Undivided profits
Due to banks and bankers
Dividends unpaid
Individual deposits
Postal savings deposits

$23,490,395.00
24,462, 074.71
7,100,279.77
35, 022, 704.66
11, 025.45
190, 679,440.72
46, 759.24

BALTIMORE, MARYLAND.

United States deposits
Notes and bills rediscounted
Bills payable
Other liabilities

$1,130, 752.02
107,000.00
4, 2 6 3 , 4 3 2 . 3 0
10, 544, 7 5 3 . 0 8

296, 858, 616. 95
Increase individual deposits June, 1913, over April, 1909, per
cent
24
Increase bank deposits June, 1913, over April, 1909.per c e n t . . 22
NOTE.—Includes 16 national, 10 State, 14 mutual savings, 3 stock
savings, 12 loan and trust companies. Other liabilities include
national bank circulation outstanding.
E X H I B I T NO. 6.

Atlanta
Richmond
Pittsburgh
Baltimore
STATES.

16. 5
14.5
13.5
12.5
11.1
18.5
24. 7
30.9

This paper includes two classes: On demand, paper with one or
two individual or firm names; on time, single-name paper (one
person or firm), without other security.
E X H I B I T NO. 7.
Number of out-of-town bank accounts kept with Baltimore banks, by
States.
There are some duplications here, as where one bank will keep
two or more Baltimore accounts, but the number is relatively
small.
Maryland
346
District of Columbia
56
Virginia
329
West Virginia
263
North Carolina
:
223
South Carolina
148
Georgia
179
Florida
83
Alabama
57
Total

1,684

Number of out-of-town mercantile and other accounts kept with Baltimore banks, by States.
Maryland
788
District of Columbia
23
Virginia
101
West Virginia
32
North Carolina
68
South Carolina
75 .
Georgia
43
Florida
9
Alabama
2
Total




Total lines of credit extended to out-of-town banks and other borrowers,
by States.
Maryland
District of Columbia
Virginia
West Virginia
North Carolina
South Carolina
Georgia
Florida
Alabama

$4, 552, 682
645,150
2,743,065
1,136,850
4, 370, 600
4, 238, 250
2,541,325
1, 681,000
1,838,500
23,747,422

E X H I B I T NO. 9.

P e r cent

26.6
29.9
19.7
35.9

Maryland (exclusive of Baltimore)
District of Columbia (including Washington)
Virginia (including Richmond)
West Virginia
North Carolina
South Garolina
Georgia (including Atlanta)
Florida

E X H I B I T NO. &

Total

As suggestive of the character of business done by the national
banks of Baltimore, the following table shows the ratio of singlename paper to total loans:
CITIES.

IX

1,141

[From the Manufacturers Record.]

A fair minimum estimate of the amount of Baltimore capital
invested in the Southern States below the Potomac is $200,000,000.
Only the most detailed kind of a census that is hardly possible
could obtain the basis for an authoritative statement of the total,
which is usually associated in the public mind with the men of
large fortune and the large banking and trust companies of the
city which have led in this beneficial investment in the South.
There is, however, a great army of Baltimore capitalists directly
interested in the South, whose investments there aggregating close
upon $70,000,000, average less than $600 each. This army is composed of the depositors in the mutual savings banks of Baltimore.
The extent of their investments is indicated in the figures as of
December 31,1913, of three of the largest institutions of the kind—
the Savings Bank of Baltimore, the Eutaw Savings Bank, and the
Central Savings Bank. These three banks had on December 31,
$67,854,920 of deposits, not including undivided surplus chargeable with accrued interest or interest that had been credited for
the year, and these deposits, in 121,501 accounts, or an average
of $558 per account, constituted 72 per cent of all the mutual
savings bank deposits in Maryland.
Of $60,665,457 bonds, book value, in which the funds of these
mutual institutions are invested, $23,167,016, or more than 38
per cent, represent investments in 10 Southern States south of
the Potomac and Ohio and east of the Mississippi, viz, Virginia,
West Virginia, Kentucky, North Carolina, South Carolina, Georgia,
Florida, Alabama, Tennessee, and Mississippi, directly or indirectly. The investments are divided as follows: Railroads bonds,
$16,382,211; municipal bonds, $5,666,800; street railroad bonds,
$499,000; State bonds, $458,255; county bonds, $49,500; and miscellaneous, $111,250.
I t is thus seen that 121,501 comparatively small investors in
Baltimore are immediately interested in the welfare and prosperity of 10 great Southern States, having an aggregate area of
436,614 square miles and an aggregate population of 18,776,059,
using 1910 census figures, through the railroads operating in them
which Baltimore money has helped to build, extend, or equip,
and that the people of 35 cities having an aggregate population of
more than 1,789,019 in nine of those States must have more than
casual interest in Baltimore, which has thus helped to finance
municipal improvements of various kinds and the development of
their public utilities.
If all the Southern States, including Maryland, Missouri, and
Oklahoma, should be included in this exhibit, the importance of
these three mutual savings banks in Baltimore becomes greater.
Their investments of the kind in Maryland, including some little
in the District of Columbia, aggregate $11,321,294, and directly
and indirectly in Missouri, Arkansas, Oklahoma, Louisiana, and
Texas, $4,203,910, including State bonds and the securities of

22

LOCATION OF RESERVE DISTRICTS.

Dallas, Galveston, Houston, San Antonio, and Waco, Tex.; New
Orleans, La.; Oklahoma City, Okla., and St. Louis and Kansas
City, Mo. Therefore bond investments in the whole South of
Baltimoreans by way of these three mutual savings banks aggregate $38,692,220, which is equal to 57 per cent of the total amount
of deposits in the institutions.

SUMMARY.
Increase.

Value.
Classes.
1909
Farm property
Live stock
Mines, quarries, wells..
Lumber products

Per cent.

Amount.

1899

$3,258,160,001 $1,592,733,544
877,270,784
415,834,077
425,311,863,
226,357,553
124,350,868
86,001,686
195,573,741
101,573,000

$1,665,426,457
461,436,707
198,954,310
38,349,182
94,002,741

104.6

111.0
87.9
44.6
92.5

E X H I B I T NO. 10.
Total average increase, 101.4 per cent.

Imports and exports at the port of Baltimore.
Calendar year.

Exports.

$18,761,963
25,226,618
35,364,145
36,184,322
23,722,054

1904
1905
1906
1907.
1908

Imports.

$84,099,727
103,550,042
107,609,144
99,322,342
81,874,087

Calendar year.

Exports.

$27,418,567
32,377,480
28,382,580
27,901,843
35,553,814

1909
1910
1911
1912
1913

Imports.

$79,424,914
72,944,146
94,465,806
100,287,327
117,269,378

E X H I B I T NO. 11.
Baltimore stands first in the manufacture of straw hats, cotton
duck, fertilizers, men's clothing, copper metal, and copper products, canning and preserving, oysters, and as a banana market.
As a jobbing center Baltimore ranks third among the cities
in the United States. Its jobbing trade was approximately
$400,000,000 in 1911. These figures were compiled b y the Baltimore & Ohio Railroad during an investigation covering about
four weeks. They do not include retail houses or purchases, but
sales only.
According to the best judgment obtainable, Baltimore's manufacturing and jobbing trade has increased 25 per cent in the last
two years.
According to the Merchants and Manufacturers' Association, Baltimore employs between 8,000 and 9,000 traveling salesmen.
According to the Baltimore & Ohio Railroad, " T h e average annual tonnage of freight received and distributed at Baltimore by
railroad and boat lines totaled 48,000,000 tons in 1912."
Baltimore has nearly $14,000,000 worth of city-owned docks.
It is the most economical port on the Atlantic coast. I t is also
nearer the West than any other Atlantic port.
The value of the fish and oyster products of the Chesapeake
Bay. and adjacent waters is between $35,000,000 and $40,000,000
annually. Approximately 100 carloads of shucked oysters were
shipped from Baltimore to points north and west in one day last
November.
The full assessable basis for taxation in the city of Baltimore
has grown from $402,816,097 in 1901 to •$781,691,094 in 1914, an
increase of $378,874,997 in a little more than a decade.

E X H I B I T NO. 12.
The percentage of increase in values in Baltimore's trade territory
covering a 10-year period is as follows:

State.

Maryland
District of Columbia
Virginia
West Virginia
North Carolina
South Carolina
Georgia
Florida
Alabama
Average




Farm
property.

Crops.

Live
stock.

Mines,
quarries, Lumber
and wells. products.

Per cent. Per cent. Per cent. Per cent. Per cent.
13.9
38.8
45.4
56.2
54.6,
18.3
26.5
22.0
135.6
93.2
71.3
78.2
43.3
51.8
138.2
41.8
54.4
57.1
51.7
92.2
130.0
108.2
108.1
120.5
155.3
141.1
123.4
38.1
5.0
154.2
162.4
128. 4
202.8
80.2
165.5
167.8
84.4
30.4
96.1
106.3
81.7
97.1
104.6

111.0

87.9

44.6

92.5

The value of all crops in the South Atlantic States in 1909
amounted to one-eighth of the value of all crops in the entire United
States.
MANUFACTURES.
State.

Maryland
District of Columbia
Virginia
West Virginia

1909

State.

Per cent.
15.3

Per cent.
29.7

11.8
37.0
47.8

37.7
47.7
63.5

North Carolina
South Carolina
Georgia
Florida
Alabama

1904

1909

Per cent. Per cent.
67.1
52.0
48.8
42.7
59.8
34.3
47.1
44.9
51.4
33.7

The percentages of increase in the value of manufactures covering
two five-year periods was approximately 43 per cent each.
E X H I B I T NO. 13.
MANUFACTURERS IN THE METROPOLITAN DISTRICT OF

BALTIMORE.

The metropolitan district, as defined b y the census of 1910, includes the city of Baltimore and eight election districts in Anne
Arundel and Baltimore Counties, immediately adjacent to the city
proper. I t is worthy of note that so closely connected is Baltimore
with the entire district there are no incorporated places in any of
the election districts.
In 1909 the Baltimore metropolitan district had 2,668 manufacturing establishments, which gave employment to an average of 94,954
persons during the year and paid out $48,585,334 in salaries and
wages.
Amount of capital employed
Cost of materials manufactured
Value added b y manufacture
Total value of manufactured products

$199, 735,181
165,085, 541
95,127, 783
260, 213, 324

The value of products for those industries that can be shown
separately and have a value of product amounting to $2,000,000 or
more in 1909 is given in the following table:
1899

1909

Increase.

Per
$23,349,392 $40,602,383
Clothing
20,842,738 36,269,212
Men's
2,506,654
4,333,171
Women's
5,933,166 14,350,235
Copper, tin, and sheet-iron products
6,476,918 13,653,693
Slaughtering and meat packing
10,961,564
Foundry and machine shops
9,581,893 10,288,867
Tobacco manufactures
4,175,569
8,699,297
Liquors
2,934,028
5,017,678
Malt
1,241,541
3,681,619
Distilled
3,895,437
8,469,656
Fertilizers
4,942,851
7,569,430
Printing and publishing
2,037,037
3,491,225
Book and job
2,186,437
3,049,576
Newspapers and periodicals
719,377
1,038,629
All other
Cars and general shop construction and repairs
3,529,959
7,364,880
by steam railroad companies
10,791,369
6,526,225
Canning and preserving
3,669,376
5,970,981
Bread and other bakery products
3,195,655
5,470,590
Patent medicines and compounds
3,426,781
5,230,404
Lumber and timber products
1,923,939
5,011,253
Confectionery
2,347,330
Straw hats
2,197,239 * " "
2,690,610
Furniture and refrigerators
1

cent.
73.9
74.0
72.9
141.9
110.8
7.4
108.3
71.0
196.5
117.4
53.3
71.4
39.5
44.4
108.6
39.5
61.5
71.2
52.6
160.5
1

i8.*3

Decrease.

Total average increase in the manufactures of the metropolitan district of Baltimore covering the 10-year period, 76.3 per cent.
Total average increase in agricultural and other industries of Baltimore's trade
territory covering the 10-year period, 101.4 per cent.

IX
BALTIMORE, MARYLAND.

Considering the phenomenal growth of all industries in the South
Atlantic States, it may be seen that Baltimore's increase in commerce and manufactures has been remarkably responsive to it.

E X H I B I T NO. 14.
The following resolution was adopted by the Illinois Grain
Dealers' Association at a meeting held in Decatur, 111., on January 26, 1914:
Whereas it is of the utmost importance that drafts with attached
documents of title shall be most expeditiously forwarded from
point of origin and as promptly liquidated at point of destination;
and
Whereas in following the usual course of trade great quantities of
grain finds its way to the port of Baltimore; and
Whereas the new currency law provides for the establishment
ultimately of a national clearing house which eventually will clear
not only checks on member banks but other transit matters; and
Whereas it would be most unfortunate and obstructive to business as heretofore and at present handled to route such business
other than directly to the point of destination of the merchandise
against which drafts are drawn: Therefore be it
Resolved, That in the judgment of this organization i t would be
eminently wise and would the least disturb present business
arrangements if a regional bank could be established in the city
of Baltimore, with a view of eventually permitting such regional
bank in its capacity as correspondent of interior regional banks
to promptly clear transactions based upon large shipments of
grain and other merchandise seeking the port of Baltimore for
export or other distribution.
ILLINOIS GRAIN D E A L E R S '

ASSOCIATION,

President.
S . W . ARMSTRONG, Secretary.
(Fourteen hundred members.)
A like resolution was passed by the Western Grain Dealers' Association, Des Moines, Iowa. (Twelve hundred members.)
A like resolution was passed by the Milwaukee Chamber of
Commerce on January 27, 1914.
L E E C . METCALF,

E X H I B I T NO. 15.
MEMORANDUM OP JOBBING AND MERCANTILE DISTRIBUTION

sales with percentages as desired. Fifty-two cards reported total
sales, but gave percentages in such form as to be either unintelligent or otherwise useless for the purpose of this exhibit. Thirteen
cards gave percentages but no volume, while 10 cards were returned
without any report.
From the 184 cards giving volume of distribution it appears that
those filling out the cards in the year 1913 distributed business
aggregating $135,460,000.
In Baltimore there are just about 1,000 jobbing and wholesale
houses, while from the figures of the census it is learned that there
are in the metropolitan district of Baltimore something over 2,600
manufacturing establishments. An inspection of the list of 449
names to which cards were addressed indicates that many of the most
substantial houses in the city failed to respond to requests for information. This fact, coupled with the knowledge that only about 8
per cent of the available material was canvassed, suggests that a
distribution valued at between $400,000,000 and $500,000,000 would
appear to be a most conservative estimate of the distributing power
of Baltimore interests mentioned, and this sum obviously is settled
for in due course in Baltimore.
I t is well to bear in mind that in dealing only with the two interests mentioned and in drawing inferences therefrom, no regard has
been had either for the great commission business in cereals, fruit
and truck, etc., or to shipping and other large factors in the trade
and commerce of the city.
Under the head of "Miscellaneous, $20,513,000," is included
everything not otherwise accounted for in the trade territory especially listed. Much of the business included under this caption
was distributed in Pennsylvania, some in Ohio and the West,
while a generous share of it was sent to the Southern States other
than those indicated i n detail.
An analysis follows from the returns of the 132 cards which gave
the detail permitting it:
Distributed in—
District of Columbia
$4,360,000
Virginia
18,873,000
West Virginia
7, 693,000
North Carolina
13, 614, 000
South Carolina
6, 963,000
Georgia
5,811,000
Florida
3, 337, 000
Alabama
;
2,688,000

FROM

63, 339, 000

BALTIMORE IN THE YEAR 1913.
[Analysis of the distribution and estimate of its total value, based upon figures
submitted and knowledge of their source in relation to those not reporting.]

In order to obtain facts from which approximately exact deductions could be drawn referring to the manufacturing and jobbing
interests of Baltimore, 449 cards with accompanying letters were
addressed to as many houses. No follow-up work was undertaken.
Two hundred and seven were returned, and of these 132 gave total




(Or 56.75 per cent.)
Distributed in Maryland
(Or 24.90 per cent.)
Distributed miscellaneous
(Or 18.35 per cent.)

. . . 27,814,000
. . 20, 513, 000

Total distribution 132 corporations, firms, manufacturers, and jobbers
I l l , 666, 000




CHATTANOOGA, TENN.

25

CHATTANOOGA, TENN.
Before Hon. William Gibbs McAdoo, Secretary of the Treasury; Hon. David F. Houston, Secretary of Agriculture, and Hon. John Skelton Williams, Comptroller of the Currency, composing the Federal Reserve
Bank Organization Committee, in the matter of the location of a Federal reserve bank for the suggested
district or territory embracing southern Ohio, Kentucky, Tennessee, western North Carolina, Georgia,
Florida, Alabama, Mississippi, and that part of Louisiana lying east of the Mississippi River, or any district
embracing the Central South.
May it please the honorable committee:
Every paragraph and provision of the Federal
reserve act indicates a just purpose—a desire on the
part of its framers to, as far as possible, give equal
service and protection to all the people of the United
States without special regard to any particular city,
State or section.
Realizing that your committee is earnestly and diligently preparing to put this just, impartial, and patriotic' spirit of the act into practical execution, we
desire to suggest a reserve district to include the
Central South, as above outlined and as graphically
shown by the accompanying map.
RESERVE

DISTRICTS.

We assume that necessarily the first task of the committee, after these hearings are over, will be the
determination of the geographical limits of the reserve
districts, so as to best serve the people of the entire
country, that the Federal reserve cities will then be
respectively located so as to best serve the interests of
the people of the respective districts.
We assume further, that in outlining the reserve
districts the location and needs of the larger centers
of population will have to be considered, but that, after
the districts are once outlined, the particular city
which will be designated as the reserve city for any
particular district will necessarily be the particular
city which is most speedily and conveniently accessible
to that entire district.
As the regional reserve bank in any particular district will have the same amount of capital and the
same deposits, in whatever city it may be located, it
follows that the question of accessibility to its particular district will be the primary question in determining the location of each reserve city. This being so,
we think it will appear that Chattanooga is the most
logical and most convenient location for the reserve
bank for the above-suggested district which would
embrace southern Ohio, Kentucky, Tennessee, western
North Carolina, Georgia, Florida, Alabama, Mississippi, and that part of Louisiana lying east of the




Mississippi River, or for any similar district embracing
the Central South. And, when the needs of this section, in connection with the requirements of the entire
country, are considered, we believe it will be found
advisable and highly advantageous to fix the geographical limits of one district substantially as here
indicated.
EIGHT

DISTRICTS.

Based on what seems to be the consensus of opinion of business men throughout the country, and upon
the facts brought out at the various hearings which
have been given by your committee, we assume that
the country should at present be divided into eight
reserve districts, which should be designated and outlined approximately as follows:
1. Reserve city: Boston. District: Maine, New
Hampshire, Vermont, Massachusetts, Rhode Island,
and northern Connecticut.
2. Reserve city: New York. District: Southern
Connecticut, New York, New Jersey, and northern
Pennsylvania.
3. Reserve city: Baltimore, Washington, or Richmond. District: Southern Pennsylvania, Delaware,
Maryland, District of Columbia, Virginia, West Virginia, middle and eastern North Carolina, and Middle
and eastern South Carolina.
4. Reserve city: Chicago. District: Michigan, Wisconsin, Minnesota, northern Ohio, middle and northern Indiana, middle and northern Illinois, and Iowa.
5. Reserve city: Chattanooga. District: Southern
Ohio, Kentucky, Tennessee, western North Carolina,
Georgia, Florida, Alabama, Mississippi, and that part
of Louisiana lying east of the Mississippi River.
6. Reserve city: St. Louis or Kansas City. District: Southern Indiana, southern Illinois, Missouri,
Arkansas, all of Louisiana west of the Mississippi River,
Texas, Oklahoma, and Kansas.
7. Reserve city: Denver. District: Nebraska,
North Dakota, South Dakota, Montana, Colorado,
New Mexico, Arizona, Utah, Wyoming, and Idaho.
8. Reserve city: San Francisco. District: California, Nevada, Oregon, Washington.
27

28

LOCATION OF RESERVE DISTRICTS.

The national banking capital and surplus of said
eight districts as above outlined and the capital of the
reserve banks in the respective districts would be
approximately as follows:
Capital and
surplus.

$150,000,000
521,490,000
261,377,000
283,482,000
142,261,000
208,658,000
82,164,000
118,373,000

District.

First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth

Reserve
bank
capital.
$9,000,000
31,289,400
15,682,620
17,008,920
8,535,660
12,519,480
4,929,840
7,102,380

We have given more particular study to the section
of the country east of the Mississippi River, together
with what seems to be the settled trend of opinion in
that territory as to what would be the most practicable
division of the same into Federal reserve districts,
and we are convinced that an approximate division as
above indicated will give the best possible results and
will be eminently fair and just to all the people affected.
FIFTH

DISTRICT.

The fifth district, if outlined as above indicated,
would be ideal in location, size, population, and diversity of products, and would furnish a most admirable combination of practically all the elements concededly desirable in the formation of a reserve district.
I t would harmonize with the other districts which
seem to be necessary for the accommodation of the
eastern, northern, and middle western sections of the
country and would be of average size.
I t would include the great manufacturing and trade
centers and great grain and stock producing sections
of southern Ohio and northern Kentucky, the great
mining, manufacturing, and agricultural industries of
southern Kentucky, eastern Tennessee, western North
Carolina, north Georgia, and north Alabama, the great
tobacco and stock raising sections of Kentucky and
middle Tennessee, the vast cotton fields of Georgia,
Alabama, Mississippi, and western Tennessee, the
subtropical fruits and products of Florida and eastern
Louisiana, and the great commercial and trade interests of New Orleans on the south as a balance to the
like interests of Cincinnati at the northern end of the
proposed district. And yet, with all this almost
unlimited variety of products maturing at various
seasons of the year and giving assurance that within
such district there would be a steady and uniform
demand on the reserve bank for money throughout
the year, by locating such reserve bank at the best and
most accessible railroad center in the central section
of the district, every important and material part of
the territory could be reached by mail deposited after
the close of banking hours one day and received at its
destination at or before the beginning of banking hours
the next day. This will be shown more in detail on




the map of the said proposed fifth district and adjacent territory which will be presented with this brief.
CHATTANOOGA'S

CLAIMS.

We respectfully submit that Chattanooga is the
most convenient and desirable point for the location of
a reserve bank for said suggested fifth district or any
other reserve district, including the Central South for
the following reasons:
CHATTANOOGA

AN

ACTUAL

AND

NATURAL

GATEWAY

BETWEEN NORTH AND SOUTH AND EAST AND WEST.

Since the first settlement of the country, Chattanooga has been recognized as the natural and actual
gateway between the North and the South and between
the East and the West. Hence, at an early day the
State of Georgia built her own (Western & Atlantic)
railway from Atlanta to Chattanooga, and later the
city of Cincinnati built its own line, the Cincinnati
Southern, from Cincinnati to Chattanooga, the natural
gateway of the South.
Hence, also, the fact that Chattanooga became the
great strategic point, war center, and battle field in the
great struggle between the North and South.
II.

Chattanooga has long been recognized as the principal railroad center of the Central South—the point
where the principal lines of travel from east to west
and from north to south cross each other.
Nine lines of railroad, namely, the Cincinnati Southern (Queen & Crescent), the Central of Georgia, the
Alabama Great Southern, the Nashville, Chattanooga
& St. Louis, the Western & Atlantic, the Tennessee,
Alabama & Georgia, and the three divisions of the
Southern Railway, known, respectively, as the "Main
Line" (from Chattanooga to Washington), the "Memphis Division," and the "Georgia Division," all center
at Chattanooga.
The interstate roads radiating to the southward
and furnishing easy, speedy, and direct access to the
entire territory embraced in the States of Georgia,
Alabama, Florida, South Carolina, and Mississippi
are the Alabama Great Southern (extending through
Georgia, Alabama, and Mississippi to New Orleans),
the Central of Georgia (extending from Chattanooga
through Georgia to Savannah, with numerous branch
lines extending to many points in Georgia, Alabama,
and Florida), the Tennessee, Alabama & Georgia
(extending into Alabama and touching other important lines), the Western & Atlantic (extending to
Atlanta and making direct connection with through
lines through south Georgia, Florida, and South Carolina), the Georgia Division of the Southern (extending
south through Atlanta and Macon to Jacksonville and
making direct and through connection with many
other lines), and the Memphis Division of the Southern

CHATTANOOGA,

(extending 312 miles from Chattanooga to Memphis,
with branches and direct connections radiating to the
south and west). To the east the main line of the
Southern Railway extends through eastern Tennessee
via Knoxville and Morristown, 242 miles to Bristol,
and has radiating and connecting lines covering all of
eastern Tennessee and extending northwardly into
Kentucky and southwardly into North Carolina and
South Carolina, Georgia, and Florida.
The Cincinnati Southern extends northwardly a
little over 300 miles on a direct line via Lexington,
through the heart of Kentucky, to Cincinnati, with
connecting lines to all parts of Kentucky, Ohio, and
Indiana.
The Nashville, Chattanooga & St. Louis extends
westwardly and northwestwardly through the middle
and the northwestern portion of Tennessee, with connecting and affiliated lines extending into Kentucky,
Ohio, and southwestern Indiana, and branch lines into
the eastern and mountain portions of middle Tennessee.
III.
BECAUSE

OF

ACCESSIBILITY.

Chattanooga is not only a railroad and transportation center as above shown, but is the railroad and
transportation center most easily and speedily accessible to all the territory embraced in said district.
EXPRESS

COMPANY

PRACTICAL
POSITION

EVIDENCE

AND

HEADQUARTERS
OF

CONVINCING

CHATTANOOGA* S

CENTRAL

ACCESSIBILITY.

Lately the president of the Chamber of Commerce of
Chattanooga asked Mr. Charles L. Loop, vice president
of the Southern Express Co., to furnish the chamber
a brief statement as to why the Southern Express Co.
established its headquarters at Chattanooga. In a
letter addressed to the president of the chamber of
commerce Mr. Loop responded as follows:
In response to your request that I state under what circumstances
the Southern Express Co. selected Chattanooga for its general headquarters :
Up to the year 1892 the Southern Express Co. maintained two
headquarters, one in Augusta, Ga., and one in Memphis, Tenn.
The time came when we had to consoldiate the headquarters and
we had to consider the most available and desirable location.
Chattanooga was selected primarily because of its central location and its accessibility to all points reached by the Southern
Express Co., including even places north of the Ohio River. (This
company operates north of the Ohio River to St. Louis, Mo., and
Columbus, Ohio, and east to Washington, D. C.)
We figure that being located in Chattanooga we receive our
reports from agents on an average much earleir than we could in
any other location. And, when necessary for our men to travel
in any direction, the average ride to any point in the territory
of this company could be reached in less average time from Chattanooga than probably any other point.
There were additional good reasons for the selection, but the
central location and train facilities were the governing ones.
I send you one of our maps.
Very truly, yours,
C H A S . L . L O O P , Vice President.




29

TENNESSEE.
ESTABLISHED
AS

BY

INTERSTATE

HEADQUARTERS

CARRIERS—FURTHER

FOR

COMMERCE

VALUATION

CONVINCING

COMMISSION
OF

COMMON

PRACTICAL

EVI-

DENCE.

After hearing the claims of Louisville, Nashville,
Atlanta, Birmingham, and other cities and after
thorough consideration the Interstate Commerce
Commission, in October, 1913, by a unanimous vote
selected Chattanooga as the headquarters for the
valuation of common carriers, in the territory embracing the States of Ohio, Indiana, Kentucky, Tennessee,
South Carolina, Florida, Georgia, Alabama, and
Mississippi.
The officially announced ground for the selection
of Chattanooga was the fact that Chattanooga, by
reason of its location and its position, was the place
most easily and speedily and economically accessible
to the entire territory embraced in the said valuation
district.
The same reasons which made Chattanooga the most
desirable point for the headquarters of the Southern
Express Co., and the most expedient and suitable
location for the valuation headquarters as established by the Interstate Commerce Commission, make
it now the most suitable and desirable location for
the regional reserve bank for the suggested fifth
reserve district or any other district embracing the
Central South.
We submit herewith a map of the suggested fifth
district and adjacent territory, with train schedules
showing that communications by mail can pass either
way between Chattanooga and practically every
point of importance in the suggested district, or in
the Central South, between the close of banking hours
on one day and the beginning of banking hours the
next day.
BUSINESS

EQUATOR

OF THE

DISTRICT.

As nearly as possible, we have ascertained the relative value of annual farm products and manufactured
products, north and south of Chattanooga, and the
relative population, banking capital, deposits, etc.,
within said district on either side of an east and west
line drawn through Chattanooga.
The result, which indicates substantially that Chattanooga is the business equator of the suggested fifth
district, is substantially as follows:
North of
South of
Chattanooga. Chattanooga.

Population north of Chattanooga.
Population south of Chattanooga.

$336,379,000
882,971,000
77,263,574
295,000,000

$567,339,230
524,270,000
64,485,000
220,000,000

1,591,613,574

Value of all farm products
Value of manufactured products.
National-bank capital
National-bank deposits

1,376,094,230
6,370,000
7,700,000

30

LOCATION

OF R E S E R V E

DISTRICTS.

IV.
CHATTANOOGA
CITY O F T H E
WHICH

MAY

MORE

ACCESSIBLE

CENTRAL
BE

CONCLUSION.

SOUTH

LOCATED

IN

ANY

OTHER

TO REGIONAL

THAN

BANKS

OTHER

RESERVE

DIS-

TRICTS.

Situated at the extreme northern edge of the cottonproducing section, Chattanooga is not only the most
accessible point from all parts of the central south
as above shown, but it is the one point in the central
south most accessible to the trade centers of the sections north and west of the suggested fifth district and
north and west of the central south.
Should reserve banks for other districts be located
at Chicago, St. Louis, Kansas City, Dallas, or any other
cities of the great west and northwest, they could
communicate more quickly and conveniently with
Chattanooga than with any other city located anywhere near the center of the central south.
Currency wired for from St. Louis or Chicago could
leave Chattanooga during banking hours one day
and be delivered before bankinghours the next morning.

Without presenting other facts and details strongly
tending to show the advantages of a reserve district
outlined as above suggested and the superior claims,
of Chattanooga as a reserve city, we submit the foregoing suggestions in the hope that they may, in some
measure, aid the committee in its important and difficult task and in the belief that when all the facts are
fully considered and the needs and requirements of the
entire country are taken into account it will be found
advisable to locate a regional reserve bank in Chattanooga.
NEWELL

SANDERS,

Chairman of Joint Committee of Chattanooga Clearing
House Association, Chattanooga Chamber of Commerce, Chattanooga Manufacturers' Association.
J. P.

HOSKINS,

President of Chattanooga Clearing House Association.
PAUL

J.

KRUESI,

President Chattanooga Chamber of Commerce.
M. E.

TEMPLE,

President Chattanooga Manufacturers' Association.
OTHER

ADVANTAGES.

Not only is Chattanooga the chief railroad center of
the central south and the most accessible point by rail
or mail or wire within the same territory, but it is also
otherwise in every way worthy of consideration as a
proper point for the location of a regional reserve bank.
I t is on the Tennessee River, which, under the improvement plans already adopted and begun by the Government, is soon to be of great importance as a water transportation highway, being already a larger and longer
river than the Ohio.
The healthful and invigorating climate of Chattanooga is known far and wide and is taken advantage
of by many visitors, both in summer and winter.
The office force of a reserve bank located here could be
kept in a high state of physical comfort and efficiency
throughout the year.
With her more than 300 factories, her extensive and
rapidly growing commercial interests, her central location, her unequaled railroad and transportation facilities, her unsurpassed climate, her scenic beauty and
historic interest, her adjacent Army post and national
parks, her importance as the headquarters of the great
express carrier of the South, and as the headquarters
for the valuation of common carriers in the nine States
extending from and including Ohio and Indiana on the
north, and Florida, Alabama, South Carolina, and
Mississippi on the south, with a progressive and efficient city government, and all the conveniences and
attractions of a modern city of the best type, we believe that Chattanooga will be found the most convenient and advantageous location for the reserve bank
which is to serve any reserve district which may include the greater portion of the Central South.




FRANK

A.

NELSON,

Manager Clearing House Association.
JOHN

H.

CANTRELL,

Secretary General Committee.
Suggested Federal reserve banks.

District.

First
Second
Third
Fourth
Fifth
Sixth
Seventh
Eighth

Capital and
surplus of
national
banks.
$150,000,000
521,490,000
261,377,000
283,482,000
142,261,000
208,658,000
82,164,000
118,373,000

Capital of
Federal
reserve
banks.
$9,000,000
31,289,40015,620,682
17,008,920
8,535,660
12,519,480
4,929,840
7,102,380

State banks in district No. 5 above.
Capital and surplus
Deposits

$150,000,000
600,000,000

Data concerning district No. 5 as suggested.
Population
All farm property
All farm products
Cotton
Cotton seed
Tobacco
Corn
Hay
Wheat
Oats
Potatoes
Yams and sweet potatoes
Other vegetables
Cane sugar
Dairy products
Manufactured articles
Mines, quarries, wells, etc

13,771,000
$3, 590,501^ 343
903,719,616
300,080,775
;..
53,247,084
49,833,077
221,164,603
48,549,053
26,722, 651
18,715,015
10,564,902
15,127, 554
42,745,716
24,091,861
47, 796, 988
1,407,241,000
69,234, 531

31

CHATTANOOGA, TENNESSEE.

Train and mail schedules in and out of Chattanooga to important points
in suggested district.

Train schedule to Chattanooga—Continued.
Leave.

Leave.
Chattanooga
Do....
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do
Do

10.15 p . m . Memphis
10.15 p . m . Jackson, Tenn
10.25 p . m . Nashville
10.25 p . m . Louisville
9.45 p . m . Lexington
9.45 p . m . Cincinnati
10.05 p.m. Dayton, Ohio
10.05 p . m . Columbus, Ohio
10.00 p . m . Knoxville
10.00 p . m . Bristol, Tenn
10.00 p . m . Asheville, N. C
5.10 p . m . Augusta
5.10 p . m . Atlanta
6.25 p . m . Brunswick
3.52 p . m . Savannah
5.10 p . m . Jacksonville
5.10 p . m . Columbus, Ga
6.20 p . m . Birmingham
6.20 p . m . Montgomery
6.05 p . m . Mobile
6.20 p . m . Jackson, Miss
6.20 p . m . Vicksburg
6.05 p . m . New Orleans

.

8.00 a.
8.45 a.
2.55 a.
8.00 a.
5.23 a.
8.00 a.
10.10 a.
11.55 a.
1.25 a.
9.15 a.
5.50 a.
6.05 a.
9.55 p.
8.30 a.
7.30 a.
7.40 a.
9.55 a.
10.20 p.
7.00 a.
7.30 a.
5.40 a.
7.00 a.
9.10 a.

m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.

5.05
5.05
2.44
6.40
6.10
6.10
6.10

m.
m.
m.
m.
m.
m.
m.

Train schedule to Chattanooga.
Leave.
Memphis
Jackson, Tenn
Nashville
Louisville
Lexington
Cincinnati
Dayton, Ohio

Arrive.

Arrive.

Arrive.
8.00 p . m .
6.05 p. m.
9.30 p. m.
9.35 p. m.
10.25 p. m.
8.00 p. m.
5.53 p. m.

Chattanooga
...do
...do
...do
...do
...do
...do

a.
a.
a.
a.
a.
a.
a.

Columbus, Ohio
Knoxville
Bristol, Tenn
Asheville, N. C
Augusta
Atlanta
Brunswick
Savannah
Jacksonville
Columbus, Ga
Birmingham
Montgomery
Mobile
Jackson, Miss
Vicksburg
New Orleans

4.00 p.
2.00 a.
3.30 p.
9.30 p.
11.15 p.
5.10 p.
8.10 p.
8.00 p.
8.40 p.
10.03 p.
6.05 p.
6.00 p.
8.15 p.
10.45 p.
9.25 p.
7.30 p.

m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.

Chattanooga.
do....
do....
do....
do....
do....
do....
do....
do....
do....
do....
do....
do....
do....
do....
do....

6.10 a.
6.00 a.
6.00 a.
6.00 a.
11.55 a.
9.35 p.
10.55 a.
11.55 a.
10.55 a.
11.55 a.
9.55 p.
5.05 a.
10.05 a.
10.20 a.
10.20 a.
10.05 a.

m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.
m.

Chattanooga railroads.
Southern Railway—Atlanta and Southeastern Division, Memphis and Western Division, Knoxville and Eastern Division.
Cincinnati, New Orleans & Texas Pacific—to Cincinnati, Louisville, etc.
Alabama Great Southern—to Birmingham, New Orleans, etc.
Nashville, Chattanooga & St. Louis—to Nashville, St. Louis, Chicago, etc.
Western & Atlantic—to Atlanta.
Central of Georgia—Georgia coast and central and southern Alabama.
T. A. G.—Gadsden, etc.
Amount of freight charges collected by railroads in 1913 for
shipments in and out of Chattanooga, $5,614,000.

SUPPLEMENTAL BRIEF FOR COMMITTEE.
The facts developed at the committee hearings at
Atlanta and Cincinnati tend strongly to confirm us in
the belief that the geographical outlines of the eight
reserve districts suggested in our original brief are
logical and desirable; and in compliance with the request of the committee we submit herewith a map
outlining said eight reserve districts as suggested in
said original brief.
Considering the question from every standpoint required by the Federal reserve act, we are convinced
that the Atlantic seaboard will have to be divided
into three districts, with one reserve bank at Boston,
one at New York, and a third (for the South Atlantic
district) at Baltimore, Washington, oi4 Richmond.
Slight variations in the outline of this third district,
especially as to the question of including southeastern
Georgia and a part of Florida, would depend on the
precise location of its reserve city.
Beginning again at the north, it will doubtless be
found advisable to locate a reserve bank at Chicago
for the lake and adjacent territory, leaving an ideal
reserve district bounded on the north by the Chicago
district, on the east by the South Atlantic district,
and on the west by the Mississippi River, extending
southwardly to the Gulf. We are convinced that this
grouping of the States of Kentucky, Tennessee, Alabama, Georgia (excepting possibly the southeastern
part), Mississippi, all or a part of Florida, western
North Carolina, southern Ohio (with possibly south-




eastern Indiana), and that part of Louisiana east of
the Mississippi River, is the logical one for the following reasons:
1. I t would harmonize with the surrounding reserve
districts which seem to be necessary for the proper
accommodation of other sections.
2. The Federal bank would be of reasonable dimensions—a minimum capital of $8,535;000 and a minimum deposit of $20,000,000 from the national banks
situated within this territory. The State banks within
this territory have a capital and surplus of approximately $150,000,000 and deposits of $600,000,000.
It would, of course, receive in addition its proportionate share of the deposits of the United States
Government.
3. The bank would be self-supporting because the
products of the territory are of such a variety that
the various sections would call on the banks for loans
at different seasons, the principal products being cotton, tabacco, sugar, citrus fruits, truck-garden products, corn, live stock, lumber, coal, iron and manufactures.
4. The bank would be profitable to its stockholders
because there would be a constant demand for its
loanable funds.
ATLANTA

AND CINCINNATI

HEARINGS.

We have read the transcript of the evidence adduced
at the hearings both at Atlanta and at Cincinnati,
besides attending the hearing at Atlanta.




26 LOCATION OF RESERVE DISTRICTS.

£ F CU B*
OJ O
M

jfeki

r•®

'K Y
v i R

HOB'
KOV
NXL
I
N

E

*
>
C A B °1 N <•
.

W

S O u •t «

—^

—

•

\

R OL

/ /
#1

\

C H 4 T T A N O O G 4
showing its natural advantages as the "Key to the South."

I

1 A
3




o
W
>
>
%

o
o
Q
>
H
W
H
cD
n
C
H
W

Co
CO

34

LOCATION OF RESERVE DISTRICTS.
D E V E L O P M E N T S AT ATLANTA

HEARING.

The facts developed at Atlanta, taken as a whole,
seemed to us to clearly indicate that the district suggested by that city is practically impossible, for four
reasons:
1. It includes the Carolinas, the greatest part of
whose territory would naturally and necessarily belong
to a South Atlantic seaboard district—such a South
Atlantic district including the greater part of the Carolinas, etc., and having its reserve city at Washington,
Richmond, or Baltimore, seeming to us inevitable in
any well-considered outline of reserve districts.
2. It (said Atlanta district) would be nominally
dependent and would include little or no " f a t to help
fry the lean" at each annually recurring crop-moving
period.
3. I t leaves New Orleans and adjacent territory
with no logical connection with any other logical district, and suggests the creation of another weak and
wholly dependent southern or southwestern district.
4. It leaves a territory between the suggested
Atlanta district and what would naturally be the
Chicago district which would not logically belong to
any other district and which could not properly be
made a separate district.
As Chattanooga was Atlanta's unequivocal second
choice, why not include Atlanta and Georgia in the
logical and nominally independent district suggested
by Chattanooga ?
D E V E L O P M E N T AT C I N C I N N A T I

HEARING.

While the district suggested by Cincinnati would be
strong and in many respects desirable in itself, furnishing more than ample reserve for all its normal
needs, it is objectionable:
1. Because it encroaches on what would naturally
be the Chicago district on the north, it appearing at
the hearing that Indianapolis and most of Indiana
and northeastern Ohio would be more conveniently
served from Chicago. In including West Virginia it
encroaches on a district which would be best served
from Washington, Baltimore, or Richmond.
2. The district suggested by Cincinnati scarcely
reaches the northern limit of the cotton belt on the
south, and leaves one or more districts to the southward which will be normally dependent during the
crop-moving periods. If extended southwardly to
Montgomery, as suggested by Nashville's representatives at Cincinnati, then a still weaker and more dependent district would be left along the Gulf coast.
As Atlanta, Birmingham, and Nashville have all
admitted at the hearings that they can be well served
from Chattanooga, and as the suggested Chattanooga
district avoids all the difficulties and objections encountered in considering the districts suggested, respectively, by Atlanta and Cincinnati, it appears to us that
the whole problem can be easily and happily solved by




a north and south district from middle Ohio to the
Gulf (substantially as suggested by Chattanooga),
with a central reserve bank at Chattanooga, one wellequipped branch bank at New Orleans on the extreme
south, and another branch office at either Cincinnati
or Louisville toward the northern end of the district.
This would give ideal service to the entire district
and make the district normally self-supporting, and
would permit the formation of other self-supporting
districts for the surrounding territory which would
harmonize with a rational and logical outline of districts for the entire United States.
If more than eight districts are to be formed, they
should be taken from the strong districts suggested for
New York, St. Louis, and Chicago. They should not
be created by subdividing the agricultural territory of
the South into weak and dependent districts.
CHATTANOOGA

THE

MOST

LOGICAL

P O I N T FOR R E S E R V E

AND

DESIRABLE

BANK.

Chattanooga is the most logical and desirable place
for the location of a reserve bank for the suggested
fifth district, because—
1. I t is the point of importance nearest the center
of the district, taking into account the population,
banking capital and deposits, and the general business
of the district. This point is fully elaborated and
practically shown in our original brief.
2. I t is within a night's run of all the principal
points in the district, and mail sent out after banking
hours from Chattanooga could reach the banks in all
principal cities in the district by early banking hours
on the following morning, and vice versa. This is
clearly shown by the schedule of night trains from
Chattanooga to and from all important points in the
district appended to our original brief.
3. I t is a railroad center and is on the direct line
of travel between the principal cities of the district
in the north, such as Columbus, Dayton, Cincinnati,
and Louisville, to the principal cities of the south, as
New Orleans, Mobile, Montgomery, Birmingham, Atlanta, and Jacksonville. I t is likewise on the route
from those on the west, as Memphis, Nashville, etc.,
to Atlanta, Savannah, and Augusta on the east. I t
is also thoroughly and speedily accessible to the great
centers like Chicago, St. Louis, etc., where reserve
banks for other districts may be located.
4. Chattanooga is one of the chief manufacturing
centers of the south, with approximately 300 factories
making over 500 different articles of commerce. The
amount of freight charges collected by railroads in
1913 on shipments in and out of Chattanooga was
$5,614,000.
5. I t is one of the great electrical centers of the
Nation—110,000 horsepower having within the last
two years been brought to its doors by power plants
erected within that time on the Tennessee and Ocoee

CHATTANOOGA,

Rivers. Approximately $12,000,000 has been lately
spent in the development of these two water-power
plants.
6. I t is a rapidly growing business center, as is
evidenced by the growth of post-office receipts, as
follows:
1894
1904
1913

$66,123
207,167
488,521

The bank deposits, which are now $18,500,000,
have increased 400 per cent within the last 13 years.
While the population of Chattanooga by the Federal
census of 1910 was only 44,604, a considerable part of
the city since properly annexed was not then embraced in the corporate limits of the municipality.
The publisher of the 1914 city directory of Chattanooga and suburbs, Mr. G. M. Connelly, shows that
the alphabetical directory for this year contains
42,634 names of individuals 17 years of age and over,
and that using the usual multiple of 2f this would
indicate a population of 102,321.
Chattanooga has 40 miles of paved streets, 80 miles
of sewers, a most efficient and well-equipped police
and fire department, a low rate of insurance, 64 miles
of street railway, an excellent school system, a very
complete public library, a fine system of public parks
and recreation centers, etc. These matters are mentioned in this connection merely to give assurance
that this growing city has all the safeguards, comforts, and conveniences which would have to be considered in locating a reserve bank.
We are prepared to give assurance that a suitable
and centrally located banking house can and will be
at once erected or supplied and equipped for the
reserve bank should this city be designated as a
reserve city.
CONCLUSION.

The more we consider the subject the more we are
convinced that Chattanooga's railroad and transportation f acilities, her natural location as a passageway between North and South, and between East and West,
her superior accessibility to and from all parts of the
suggested district, and her ideal location in the business
and geographical center of the district, makes her a
more convenient and desirable location for a reserve
bank than any other city within said district.
As such bank will have the same capital, the same
deposits, the same directors, and be used for the same
reserve purposes in whatever city it may be located,
it is clear to us that at last the question of accessibility will necessarily be controlling. Otherwise the
primary purpose of the Federal reserve act will be
practically defeated, and the manifest evils and ine-




35

TENNESSEE.

qualities which it was intended to correct will to a
large extent continue.
This being so, Chattanooga's claims and advantages would appear to be paramount. Its accessibility, with its location in the center of the mining,
timber, and manufacturing zone which lies between
the cotton fields on the south and the great grain, tobacco, and commercial and manufacturing areas in
the north end of the suggested district is, as we think,
an unanswerable argument in its favor.
Respectfully submitted.
NEWELL

SANDERS,

Chairman General Committee.
J. P.

HOSKINS,

President Clearing House Association.
P. J.

KRUESI,

President Chamber of Commerce.
MORRIS

TEMPLE,

President Chattanooga Manufacturers1 Association.
FRANK A.

NELSON,

Manager Clearing House Association.
JOHN H .

CANTRELL,

Secretary General Committee.
O U T OF T O W N

State.
Tennessee
Georgia
Alabama
Mississippi
Louisiana
Florida
North Carolina
South Carolina
Virginia
West Virginia
Kentucky

ITEMS

SENT.

Account. Per cent.

.5449

110,342
1,094
28
12
15
14
5,021
17,879
4,433
18
6,517
8,707
1,498
134
2,160

.0029
.00007
.00003
.00004
.00004
.0134
.0478
.0118
.00005
.0174
.0232
.0040
.0003
.0057

224,872
Arkansas
Nebraska
Missouri
Texas
California
Utah
New Mexico
Arizona
Oklahoma
South Dakota
Iowa
Colorado
Idaho
Oregon
Wyomjng
Kansas

0.1771
.1697
.0964
.017;8
.0074
.0145
.0165
.0175
.0051
.0038
.0191

204,268
New York
Massachusetts
New Hampshire
Connecticut
Delaware
Maine
Maryland
District of Columbia.
Pennsylvania
New Jersey
Ohio
Illinois
Indiana
Wisconsin
Michigan

$66,294
63,498
36,077
6,688
2,791
5.429
6,168
6,562
1,917
1,414
7.430

.42163

703
3,115
5,843
450
349
140
44
735
9
36
147
5
13
12
5

.0010
.0018
.0085
.0156
.0011
.0009
.0004
.0001
.0019
.00002
.00009
.0003
.00001
.00003
.00003
.00001

11,9
374,126

.03179




EIGHT DISTRICTS AS SUGGESTED BY CHATTANOOGA CLEARING HOUSE.




CINCINNATI, OHIO

CINCINNATI, OHIO.
BRIEF.
[Prepared .or the committee under the direction of

F R E D E R I C K C. HICKS,

Professor of Economics and Commerce, University of Cincinnati.]

[Joint committee on regional bank: William S. Rowe, chairman; Clearing House—William S. Rowe, C. A. Hinsch, Caspar H . Rowe; Chamber of Commerce—Lazard Kahn,
Edward L. Heinsheimer, T. J. Davis; Business Men's Club—Franklin Alter, Edward Seiter.]

The Federal Reserve Bank Organization Committee:
G E N T L E M E N : A S representatives of the financial,
commercial, and industrial interests of Cincinnati, we
respectfully submit the following:
First. A regional bank district should be established consisting of the major portions of the five
States of Ohio, Indiana, West Virginia, Kentucky, and
Tennessee, together with such contiguous territory as
your investigations may show should be included
therein.
Second. The Federal reserve bank for this district
should be located in the city of Cincinnati.
We believe that such action is in harmony with the
provision of the Federal reserve act which prescribes
" t h a t the districts shall be apportioned with due regard to the convenience and customary course of business.77
We believe also that a consideration of the facts
herewith submitted will show that the proposed district, with Cincinnati as its regional bank.city, meets
fully the conditions set forth by the organization committee as the "primary factors in determining the
boundaries of the proposed districts and the location
of the Federal reserve banks."
These primary factors are:
First. Geographical convenience, which involves transportation
facilities and rapid and easy communication with all parts of the
district.
Second. Industrial and commercial development and needs of
each section, which involves consideration of the general movement
of commodities and of business transactions within the districts
and the transfer of funds and exchanges of credits arising therefrom.
Third. The established custom and trend of business, as developed by the present system of bank reserves and checking accounts.
In laying out the districts and establishing the headquarters for
reserve banks, every effort will be made to promote business convenience and normal movements of trade and commerce.
GENERAL

SUMMARY.

(A detailed presentation of each of these facts will
be found after this general summary.)
The propriety of establishing a district such as is
here proposed is shown by the following facts:
1. Relation of the proposed district to other districts.—
The district harmonizes with an efficient subdivision




of the country as a whole, whether the total number
of districts finally decided upon is 8, 9, 10, 11, or 12.
2. Banking.—The five States constituting the proposed district have 3,560 banks, with a capital and
surplus of $391,094,000 and deposits of $1,675,524,000.
Of these banks, 1,009 are national banks, with a
capital and surplus of $202,701,000 and deposits of
$761,971,000.
Of the State banks, 1,239 are eligible for membership
in the Federal reserve bank system. Their capital
and surplus is $139,084,000 and deposits $624,860,000.
3. Credit demand and supply.—The banks of the
proposed district have about one-tenth of the total
amount of bills payable and rediscounts of all the
banks of the United States. The fluctuation in the
borrowing of the banks of the district throughout the
year amounts to only $6,000,000 between the high
and low points.
The proposed district combines loaning and borrowing sections in a manner that renders it selfsustaining. The northern portion as a rule possesses
a surplus of loanable funds, while in many southern sections, the demand for credit is in excess of the
local supply.
Moreover, judging from the replies received from
about 1,500 banks throughout the district, to the
inquiry, " I n what months of the year is the demand
heaviest from your local borrowers?" there is a demand for credit throughout the proposed district in
all seasons of the year.
The comparatively slight fluctuations (about
$1,200,000) between the high and low points of the
outstanding loans of country banks in Cincinnati is
evidence that the interests of the district are so
diversified that at the period of the year when one
section is borrowing, another section is lending.
This fact is further shown by the replies received to
the inquiry above mentioned.
4. Area and population.—The proposed district
contains 14.3 per cent of the total population of the
United States, 11.8 per cent of the urban population,
16.5 per cent of the rural population, and 13.5 per
cent of the cities and towns.
39

40

LOCATION OF RESERVE DISTRICTS.

5. Industries.—It is a section of extensive and widely reported in 1910 with an output of over $1,000,000
diversified industries—agriculture, mining, and man- each.
ufacturing.
The commerce of Cincinnati reaches every State in
I t contains 17.1 per cent of the farms of the United the country and all the leading foreign markets.
States, 13.2 per cent of the total value of farm propIntimate trade relations exist between the city and
erty, 14.9 per cent of the mining capital of the United all portions of the proposed district. This fact is
States, 13.1 per cent of the manufacturing establish- shown by the statistics of the distribution, of the trade
ments, and 12.5 per cent of the manufacturing capital, of a selected list of representative Cincinnati firms,
and produces 13.4 per cent of the total value of farm and also by the package car shipments.
products, 15.1 per cent of the total value of mining
2. Banking resources and relations.—Cincinnati is
products, and 12.5 per cent of the total value of manu- the natural financial center of the proposed district.
facturing products.
Its banks have an honorable record for sound policy
It produces over one-eighth of the country's cattle, and efficient service, past and present, which has merhogs, sheep, wool, tobacco, corn, wheat, eggs, fowls, ited and received the confidence of the business and
and orchard fruits, and over one-eighth of the output financial interests of the proposed district.
of 19 of the 47 industries of the country which in 1910
The city has 42 banks, with a capital and surplus
reported a product of over $100,000,000 each.
of $30,096,000 and deposits of $138,190,000. Of these,
Some of the industries, such as those connected 11 are national banks, with a capital and surplus of
with farming, are of importance in practically all $19,968,000 and deposits of $60,391,000.
sections of the district, while others, such as mining
The city sustains correspondent relations with 877
and manufactures are more centralized, the location banks in the district, situated in 225 counties, disof the former (mining) being determined by the dis- tributed throughout all sections of the 5 States.
tribution of mineral resources, while the latter (manuI t is the center of a section which possesses surplus
factures) are found principally in the large cities and funds that are available for the demands of other sectheir immediate environment. Even the mining and tions of the district.
manufacturing interests, however, are of large imThe banks of Cincinnati serve other portions of the
portance in each of the States mentioned.
district in a large number of ways, both direct and
Furthermore, the several sections of the five States indirect. The general character and extent of these
present varying degrees of development, a fact which services are shown:
lends importance to the proposition to combine them
(1) By shipments of currency, amounting in 1913
into one regional bank district, thereby bringing into to $39,105,000.
close relation the more highly developed areas and
(2) By participating largely in financing the varithose less developed to the mutual advantage of both. ous business activities of the district, notably in con6. Railroads.—Through its railroads and rivers the nection with the production and sale of wheat, corn,
district is well provided with facilities for transporta- .cattle, hogs, sheep, wool, tobacco, blue-grass seed,
tion and communication. According to the Interstate coal, distilled liquors, iron, and paper and pulp.
(3) By the readijiess and efficiency with which aid
Commerce Commission's report of 1911, the five States
contained over 27,000 miles of railroad. This was 11.3 is extended in emergencies, notable examples of which
per cent of the total railroad mileage in the United are the panic of 1907 and the flood of 1913.
3. Transportation and facilities.—From Cincinnati
States.
The committee presents Cincinnati as the logical as a center, railroads radiate in every direction, bringplace for the establishment of a regional bank for the ing the city into close relations with every part of this
and contiguous districts: To the north and northeast,
following reasons:
1. Location, resources, and trade.—Geographically, 5 lines; to the east and southeast, 4 lines; to the south
Cincinnati lies nearest the center of the proposed dis- and southeast, 2 lines; to the west and southwest, 4
trict, midway between the most highly developed por- lines; to the northwest, 4 lines.
Package cars to the number of 596 are sent out
tions and those less developed, as a result of which it
serves both by bringing them into relation with each daily, reaching all portions of the district and also
other. I t is situated near the center of population of many points in neighboring States.
4. Mails.—The city has exceptional mail facilities.
the United States.
The population of the metropolitan district of Cin- Frequent mails go daily between Cincijmati and all
important cities of the district, and also between Cincinnati, according to the last census, was 563,804.
The manufactures of this district in 1910 were rep- cinnati and the leading cities in the territory conresented by 2,827 establishments, 95,571 persons en- tiguous to the district.
The arrangements are such as to make possible comgaged, a capital of $212,555,000, and a product valued
at $260,400,000, of which $121,292,000 represented munication between Cincinnati and all of the large
value added by manufacture. Thirty industries were cities of the district between the close of business hours




C I N C I N N A T I , OHIO.

on one day and their opening on the following morning.
The same is true of mail communication between Cincinnati and many important cities in adjoining districts.
5. Distributing center.—Cincinnati is an important
distributing center both for its own products and for
those of other sections.
Among the leading commodities for which the city
serves as a center of distribution are coal and coke,
pig iron, wheat, corn, tobacco, distilled liquors, live
stock, lumber, fruits, and dry goods.
The movements of commodities into and out of
Cincinnati are relatively constant throughout the year.
Indeed, it is characteristic, both of the industries of
the city itself and of its commerce, that the articles
are of so varied a character as to render the business
and financial conditions independent of the vicissitudes that may attend any one class of products.
6. Federal administrative center.—The superiority of
Cincinnati as a center for serving the proposed district
is shown by its selection as headquarters for the administration of Federal affairs.
Its post office serves (1) as a depository for postal
funds in Ohio; (2) as the depository for money-order
funds from southeastern Indiana, southern Ohio, and
eastern Kentucky; and (3) as the headquarters for
paying the rural mail carriers of Ohio.
It is also the headquarters for the administration of
the fifth division of the Railway Mail Service, which
includes the States of Ohio, Indiana, and Kentucky.
District centers in this division are located at Cleveland,
Indianapolis, and Louisville. Thirteen lines of this
division radiate from Cincinnati, and besides these, 14
other important lines are operated from here.
Cincinnati is one of the nine sub treasury cities of the
United States. Besides being a depository for the
funds of the National Government, it serves a large
area through (1) shipment of silver and minor coins;
(2) the transfer of funds; and (3) the receipt of deposits
for the 5 per cent redemption fund.
7. Sentiment of district.—The sentiment of the proposed district, so far as it has been ascertained, is in a
marked degree favorable to the location of a regional
bank in Cincinnati.
It is believed that the replies to the inquiries of the
organization committee, received from the banks of the
five States mentioned, when combined, will substantiate the opinion that Cincinnati occupies the leading
place in their choice of a regional bank center.
THE
RELATION

OF

THE

DISTRICT.

PROPOSED

DISTRICT

TO

OTHER

DISTRICTS.

I t is understood that the organization committee
desires an expression of opinion as to the best division
of the entire country into districts. Accordingly, a




41

map has been prepared suggesting the limits of districts, though the information at hand is not sufficient
to warrant a final opinion as to the exact lines of
division that should be established.
In submitting this tentative plan, the committee
has kept in mind the following considerations:
First. In planning for the division of the country
into districts, it is essential that each should be so
arranged as to fit into the general scheme, and that the
districts should be so arranged as best to meet the
needs of all. In other words, to warrant the establishment of any proposed district, it does not suffice to
show that by itself it fulfills the required conditions.
Its establishment must harmonize with the fulfillment
of these conditions by each of the other portions of the
country.
Second. The districts should, if possible, be so
organized that the available supply of credit will
suffice to meet the demand therefor, and conversely
that there will be an ample demand for the surplus
funds seeking employment. To this end, portions of
the country in which the supply of available funds
is in excess of the demand therefor should be grouped
with other sections where the demand for the credit
is in excess of the local supply.
Third. In providing that the number of regional
banks shall be not less than 8 nor more than 12, Congress said in effect that, subject to these limitations,
the number to be established should be determined
by the needs of the country. That is to say, it is not
primarily a question of establishing as few reserve
banks as possible, or as many as possible, but of providing such number as the interests of the country's
business require.
Fourth. It is believed also, that it is in harmony
with the spirit of the law that the financial resources
of the country should be decentralized in so far as the
centralization of such resources has hitherto been the
result of arbitrary legislation and to the extent that
it has worked injury.
A study of the population and business of the various
sections of the United States will show, we believe,
that a district should be established, consisting of the
five States mentioned, whether the total number
finally decided upon is eight, nine, ten, eleven, or
twelve. The proposed district is situated at the
center of the main industrial and commercial area
of the United States and would therefore form
the connecting bond between the others that may be
organized.
The data submitted herewith is grouped by States
because the available statistics are so given. I t is
not intended, however, to convey the idea that the
district advocated should conform exactly to the
boundaries of these States. Probably a portion of
northwestern Indiana should be included in the
Chicago district; a portion of eastern West Virginia

42

LOCATION OF RESERVE DISTRICTS.

in an eastern district. Small portions of western Kentucky and Tennessee perhaps fall naturally/ in a district including St. Louis.
Attention is called especially to the fact that in the
accompanying maps, that portion of the boundary
line of the district which coincides with the northern
boundary of Alabama is broken. This is intended to
show the committee's opinion that since the loaning
capacity somewhat exceeds the borrowing in the five
States given as forming the main portions of the district, it is possible to include additional borrowing
territory. Existing trade relations suggest the propriety of making such addition from some of the southern States, more particularly from Alabama.
The maps show suggested district with 8, 9, 10, 11,
and 12 banks, respectively, together with the approximate amount of the capital of each bank in the several
subdivisions.

Num- Capital and
ber.
surplus.

Per cent
of
United
States.

Capital and
surplus.

Per cent
of
United
States.

1,009
2,551

13.6
11.7

$203,000,000
188,000,000

11.7
9.9

3,650

12.2

391,000,000

National
Other
Total...

$762,000,000
914,000,000

3,560 $391,000,000 $1,676,000,000

382
256

104,000,000
40,000,000

375,000,000
170,000,000

1,160
949

184,000,000
80,000,000

875,000,000
358,000,000

117
146
108

17,000,000
25,000,000
17,000,000

58,000,000
82,000,000
76,000,000

314
619
542

36,000,000
51,000,000
39,000,000

126,000,000
161,000,000
156,000,000

O

lO fZ'/sE.

NATIONAL B A N K S :

Number
Capital and surplus.
Deposits

STATE B A N K S :

Number
Capital and surplus.
Deposits

9.5
7.5

10.7 1,676,000,000

Deposits.

PERCENTAGES OF TOTAL I N THE UNITED STATES.

Per cent
of
United
States.

Deposits.

Num- Capital and
surplus.
ber.

DISTRICT BANKING STATISTICS.

General statement.—There are in the district 3,560
banks, of which 1,009 are national banks. Together,
the banks have a capital and surplus of $391,094,000
and deposits amounting to $1,675,524,000. The
national banks alone have a capital and surplus of
$202,701,000 and deposits of $761,971,000. (See
chart following.)
Number.

Deposits.

District.. 1,009 $203,000,000 $761,000,000
Ohio
Indiana
West
Virginia
Kentucky...
Tennessee...

BANKING.

Banks.

All banks.

National banks.

8.3

NATIONAL AND STATE B A N K S :

Number

Distribution.—The distribution of these banks and
of their capital and surplus and deposits throughout
the district was as follows (see also table for Distribution by sections in each State).

Capital and surplus
Deposits

Distribution by sections in each State.
[000 omitted in capital and surplus and deposit columns.]
Other banks.

National banks.
Capital
and surplus.

Deposits.

Number.

7,372
1,009
13.6

$1,727,561
202,701
11.7

$8,054,193
761,971
9.5

21,625
2,551
11.7

382

103,549

375,336

754

23
56
76
28
30
45
55
31

7,303
7,485
29,298
3,650
2,424
5,625
24,193
3,908

33,900
23,245
102,232
12,755
8,500
24,305
123,446
20,508

111
90
92
50
24
64
133
90

256

40,003

170,418

40
43
54
21

4,150
6,420
5,987
4,009

19,570
22,333
29,380
22,515

Number.

United States
District
Per cent of United States
Ohio
Northwest
West-central
Southwest
South-central
Southeast
East-central
Northeast
North-central
Indiana
Northwest
West-central
Southwest
Northwest




I

Capital
and surplus.

Total.

Deposits.

Number.

Capital
and surplus.

Deposits.

$1,902,604 $12,121,455
913,543
188,393
7.5
9.9

28,995
3,560
12.2

$3,630,165
391,094
10.7

$20,185,648
1,675,524
8.3

80,683

499,863

1,136

184,232

875,199

7,462
4,062
12,204
2,124
1,089
3,200
38,256
5,844

39,208
20,956
75,300
11,442
6,335
17,510
267,310
33,942

134
146
168
78
54
109
188
121

14,765
11,547
41,502
5,774
3,513
8,825
62,449
9,752

73,108
44,201
177,532
24,200
14,835
41,812
390,756
54,305

693

40,459

187,165

949

80,462

357,583

126
107
96
141

6,037
5,416
5,277
7,079

32,020
26,920
23,072
38,268

168
158
146
162

10,197
11,836
10,254
11,088

51,590
48,623
52,542
60,052

43

CINCINNATI, OHIO.

Distribution by sections in each State—Continued.
Other banks.

National banks.

Number.

Indiana—Continued.
East-central
Southeast

Capital
a n d surplus.

Deposits.

Number.

Capital
a n d surplus.

Total.

Deposits.

Number.

Capital
a n d surplus.

Deposits.

$15,810
3,627

West Virginia

$64,725
11,895

147
76

$14,733
2,917

$55,688
12,627

219

$30,805
6,282

$120,709
23,797

Tennessee

108

Northwest
Southwest
N o r t h west-central,
South west-central.
N o r t h east-central.
South east-central.
Northeast
East

Eligible State banks.—Of
district 1,239 are eligible
Federal reserve bank system.
and distribution among the
following table:

197

19,426

68,664

314

36,394

126,169

36,760
17,825
2,920

121
59
17

12,659
5,708
1,059

49,990
15,229
3,445

182
106
26

22,727
11,670
1,997

86,750
33,054
6,365

25,382

82,277

473

25,326

78,594

619

50,708

160,881

3,505
5,095
36,370
3,245
11,075
11,435
1,605
5,520
2,267
2,160

87
71
36
98
42
28
45
15
13

1,436
3,736
8,024
1,161
4,561
2,885
724
1,915
445
439

4,315
12,515
26,357
3,475
14,231
6,750
2,029
6,090
1,427
1,405

103
83
49
118
67
37
64
23
27

3,027
5,669
16,614
1,983
8,012
8,289
1,447
3,472
1,124
1,071

7,820
17,610
62,737
6,720
25,306
18,185
3,634
11,610
3,694
3,565

16,799

76,435

434

22,499

79,257

39,298

155,692

561
2,150
4,452
1,327
472
3,845
617
3,375

146

Southwest
West
N o r t h west-central
South west-central
N o r t h east-central.
East-central
South east-central.
Northeast
East
Southeast

57,505

1,591
1,933
8,590
822
3,451
5,404
723
1,557
679
632

Kentucky

16,968
10,068
5,962
938

117

North
South
East

1,345
10,455
27,335
3,495
2,045
16,110
3,875
11,875

2,618
9,793
3,159
1,066
823
2,586
585
1,869

7,215
39,180
11,053
2,950
2,452
7,737
2,650
6,020

3,179
11,943
7,611
2,393
1,295
6,431
1,202
5,244

8,560
49,635
38,288
6,445
4,497
23,847
6,525
17,895

the State banks in the
for membership in the
Their number, resources,
States are shown in the

to secure as wide information on this subject as is
possible.
The following table shows the number and distribution of the towns and banks represented in the
replies received to inquiries on this subject:
Banks and towns reporting seasonal demand for credit.

Number.

Capital.

Surplus.

Deposits.
Banks.

District

Towns.

1,239 $101,302,000 $37,782,000 $624,860,000

Ohio
Indiana
West Virginia
Kentucky
Tennessee

348
449
157
155
130

40,991,000
25,210,000
10,664,000
12,950,000
11,487,000

20,729,000
5,848,000
5,445,000
3,697,000
2,063,000

336,995,000
139,905,000
51,060,000
48,255,000
48,645,000

CREDIT DEMAND AND SUPPLY.

Bills payable and rediscount.—Under date of June
14, 1912, we find that the amount of bills payable and
rediscounts of all the banks in the proposed district
was one-tenth of the total of all the banks of the
United States. This shows that the district has approximately its due proportion of borrowing banks.
The fluctuation in the borrowing of the banks of the
district throughout the year amounts to only $6,000,000 between the high and low points. The chart and
table following show these fluctuations in detail. The
figures given are taken from the report of the United
States Comptroller of the Currency and the report of
the State banking commissioners in the district, except
in the case of Tennessee, which publishes no annual
report.
Seasonal demand for credit.—There is a demand for
credit throughout the proposed district in all seasons
of the year. The importance of this factor in determining the organization of districts has led to an effort




District

1,027

814

West Virginia
Kentucky
Tennessee

324
338
67
194
104

260
239
42
183
90

Ohio

The information secured has been tabulated so as
to show the relative demands (1) for the district as a
whole; (2) for the States comprising the district; (3)
for the several sections of the United States; and (4)
for each of the counties therein. The facts given have
been grouped to show this demand in each of the four
seasons—spring, summer, fall, and winter—and also in
each month of the year. (See the following tables.)
Aggregate bills payable and rediscount.
[000s omitted.]
June 14, 1912.
National.

Other.

Sept. 4, 1912.
Total.

National. Other.

Total.

U n i t e d States

58,606

District

6,574

5,243

11,997

5,891

7,312

13,203

Ohio
Indiana
West Virginia
Kentucky
Tennassee

4,421
131
557
810
835

688
429
851
1,143
2,132

5,109
560
1,408
1,953
2,967

2,737
160
361
903
1,730

1,028
483
2 851
2,818
2 2,132

3,765
643
1,212
3,721
3,860

1

0)

0)

Data not obtainable.

82,374

0)

0)

44

LOCATION OF RESERVE DISTRICTS.
Aggregate bills payable and rediscount—Continued.
Feb. 4, 1913.

Ohio
Indiana
West Virginia
Kentucky
Tennessee

5,874
789
915
4,574
5,286

2 1,028
2 483
733
2 2,818
2 2,132

4,846
306
182
1,756
3,154

6,687

17,438

6,687

Other.

National.

407

369

315

194

170

173

387

481

518

363

54
85
9
52
32

129
136
27
81
34

124
127
33
59
26

100
116
25
51
23

66
72
13
26
17

55
52
15
28
20

46
49
16
37
25

101
107
28
107
44

133
132
31
130
55

150
148
30
133
57

114
86
21
95
47

D i s t r i c t . . . 260

13,374
2,805
882
927
3,352
5,408

Ohio
Indiana
West Virginia...
Kentucky
Tennessee

71
71
15
60
43

Aug. 9, 1913.
National. Other.

Total.

United States

72,906

District

5,815

5,774

11,589

Ohio
Indiana
West Virginia
Kentucky
Tennessee

1,532
369
235
1,200
2,479

2 1,028
2 696
2 733
1,185
2 2,132

2,560
1,065
968
2,385
4,611

109,106

0)

0)

Total.
0)

5,417

13,029

2,378 2 1,028
339
656
2 733
289
1,485 2 1,185
2,804 2 2,132

3,406
995
1,022
2,670
4,936

D i s t r i c t . . . 237
Ohio
Indiana
West Virginia...
Kentucky
Tennessee

64
66
11
55
41

216

360

322

275

175

153

155

329

391

416

310

50
79
8
48
31

121
115
22
70
32

112
107
25
54
24

91
98
21
44
21

59
64
12
25
15

52
46
13
24
18

42
44
14
32
23

93
88
18
89
41

116
104
20
102
49

128
121
16
101
50

103
76
10
80
41

Seasonal demands for credit.

Oct. 21, 1913.
National.

I

TOWNS.

0)

7,612

Dec.

232

0)

1,777 2 1,028
2 483
399
194
2 733
2,311
1,041
3,276 2 2,132

June 4,1913.

Nov.

7,194

ft
<1

Oct.

10,244

0)

Sept.

District

51,447

Aug.

0)

July.

71,881

June.

United States

May.

0)

Total.
Mar.

National. Other.

Total.

Jan.

Other.

BANKS.

Feb.

Nov. 26, 1912.
National.

Demand for credit, by months.

BANKS.

Other.

Total.
Spring.

United States.

100,460

0)

0)

District-

9,256

6,560

Ohio
Indiana
West Virginia.
Kentucky

3,412
428
160
1,785
3,471

1,628
717
898
21,185
2 2,132

5,040
1,145
1,058
2,970
5,603

Summer.

Fall.

Winter.

15,816

1

2

Data not obtainable.

Data unavailable, last report repeated.

Seasonal demand for credit.
Towns.

Banks.

District..

527

Ohio
Indiana
West Virginia.
Kentucky
Tennessee

178
180
37
92
40




283 1
89
89
22
54
29

District

527

27.0

283

14.5

645

33.1

493

25.4

178

29.9

89

14.9

189

31.4

142

23.8

23
27
42
5
28
22
6
19
6

30.3
24.1
26.1
62.5
32.5
27.9
33.3
54.3
26.1

9
16
26
0
12
12
5
4
5

11.8
14.3
16.1
0.0
14.0
15.2
27.8
11.4
21.7

25
- 37
48
2
26
32
5
8
6

32.9
33.0
29.8
25.0
30.2
40.5
27.8
22.9
26.1

19
32
45
1
20
13
2
4
6

25.0
28.6
28.0
12.5
23.3
16.4
11.1
11.4
26.1

180

30.2

89

14.9

192

32.2

135

22.7

0
41
37
16
59
27

0.0
30.8
31.4
32.7
32.1
24.1

0
18
18
6
36
11

0.0
13.5
15.3
12.2
19.6
9.8

0
44
36
15
51
46

0.0
33.1
30.5
30.6
27.7
41.1

0
30
27
12
38
28

0.0
22.6
22.8
24.5
20.6
25.0

West Virginia

37

30.1

22

17.9

38

30.9

26

21.1

North
South
East

25
12
0

49.0
16.7
0.0

7
15
0

13.7
20.8
0.0

11
27
0

21.6
37.5
0.0

8
18
0

15.7
25.0
0.0

Kentucky

92

21.1

54

12.4

160

36.8

129

29.7

0
5
• 11
2
39
5
1
23
2
4

0.0
9.3
32.3
5.1
31.5
10.6
4.2
27.4
20.0
36.4

1
5
4
2
15
7
2
16
0
2

12.5
9.2
11.8
5.1
12.0
14.9
8.4
19.1
0.0
18.2

4
25
9
19
39
21
10
27
4
2

50.0
46.3
26.5
48.8
31.5
44.7
41.6
32.1
40.0
18.2

3
19
10
16
31
14
11
18
4
3

37.5
35.2
29.4
41.0
25.0
29.8
45.8
21.4
40.0
27.2

40

20.4

29

14.8

66

33.7

61

31.1

1
1
10
9
4
7
4
4

50.0
50.0
22.7
28.1
17.4
21.9
9.7
20.0

1
0
5
5
5
2
7
4

50.0
0.0
11.4
15.6
21.7
6.3
17.1
20.0

0
0
14
11
5
12
16
8

0.0
0.0
31.8
34.4
21.7
37.5
39.0
40.0

0
1
15
7
9
11
14
4

0.0
50.0
34.1
21.9
39.2
34.3
34.2
20.0

Ohio

A study of the following table shows t h a t the number of banks reporting a demand in the fall was the
largest in the district and in each of the States.
The number reporting a spring demand, however, is
b u t little less than that reporting a fall demand. The
spring demand, so far as shown by the number of
banks reporting it, was the second largest in all of the
States except Kentucky and Tennessee.
Third in number and b u t little below that for spring
are those banks reporting a demand in the winter.
The demand for credit in the winter season occupies
second place in Kentucky and Tennessee and third
place in Ohio, Kentucky, and West Virginia.
The demand in summer, though reported by the
smallest number of banks, was still considerable in
extent in each of the several States.

Spring. Summer.

N u m - Per N u m - Per N u m - Per N u m - Per
ber. cent. ber. cent. ber. cent. ber. cent.

Fall.

Winter. Spring.

Summer.

Fall.

Winter.

645

493

446

251

511

415

189
192
38
160
66

142
135
26
129
61

159
143
29
77
38

80
80
19
46
26

157
149
22
124
59

127
111
15
108
54

Northwest
West-central
Southwest
North-central
Central
South-central.
Northeast
East-central
Southeast
Indiana
Northwest
West-central
Southwest
Northeast
East-central
Southeast

Southwest
West
North west-central
South west-central
North east-central
East-central
South east-central
Northeast
East
Southeast
Tennessee
Northwest
Southwest
North west-central
South west-central
North east-central
South east-central
East
Northeast

!
!

45

CINCINNATI, OHIO.
AREA

AND

Population.—The population of these five States,
according to the last census, was 13,164,000, 14.3 per
cent (somewhat more than one-eighth of the total)
population of Continental United States, excluding
Alaska. (See following chart.)

POPULATION.

Area.—The five States mentioned, Ohio, Indiana,
West Virginia,, Kentucky, and Tennessee, together
have an area of 184,184 square miles.

Square miles.

District

184,184

Ohio
Indiana
West Virginia
Kentucky
Tennessee

41,040
36, 354
24,170
40,598
42,022

Per cent
Total popu- of United
lation.
States.
91,972,266

District

.

Ohio
Indiana
West Virginia
Kentucky
Tennessee

They comprise the principal portion of what is commonly known as the Ohio Valley. To the north of
this section lies the Lake region; to the east, the Appalachain Mountain system; to the south, the Appalachain Mountain system and the Gulf region; to
the west, the Mississippi Basin. Topographically, as
well as in other respects, this area constitutes a natural
unit.

. .

N

»»

M

AGGREGATE BILLS PAYABLE AND REDISCOUNTS

-1912,

1913

IONS

17
16
15
14
13
12
11

/
*

10
9

8

7
6

4

f
r

J
A

/

/

\

A

V

J,

5
4
3

Z
1
0




>
4

r

4
mi

14.3

4,767,121
2,700,876
1,221,119
2,289,905
2,184,789

Reference to the map giving the distribution of
population throughout the United States shows that
approximately 90 per cent of the people are to be
found east of the one hundredth meridian.

M H M M I A I I Tbanks in district"
tm mm mm wm NaFlVbzmks WIWI » IVI
II
X . UUIIIW I II in district

/ Of total Natl Bks in U-S

100.0

13,163,810

United States. .

%

*

* * *

46

LOCATION OF RESERVE DISTRICTS.

Of this densely settled area, the proposed district
forms the central portion. Within it are to be found
the center of population of the United States (more
properly designated the center of gravity of population) and also the median point; that is, the point of
intersection of a north and south line with an east
and west line dividing the population into four equal
parts. (See following map showing density of population by counties.)

The cities and towns number 320, or 13.3 per cent of
the total number in the United States. Their size
varies from a minimum of 2,500 to over 500,000.
C I T I E S AND TOWNS.

Total.
•

2,500 | 5,000
to
j
to
5,000 | 10,000

10,0C0 25,000 100,000 Above
to i to
to
25,COO 100,000 250,000 250,000

PERCENTAGES

OP T O T A L IN THE U N I T E D

1,172

629

372

179 |

31

19

320

145

95

51

20 |

7

2

Ohio
Indiana
West Virginia
Kentucky
Tennessee

STATES.

2,402

District

DISTRICT POPULATION STATISTICS.

United State;

138
88
25
40
29

56
38
13
20
18

45
26
6
12
6

23
19
4
4
lj

3j
1 i

2

AGRICULTURE, MINING, AND
Total population .

1
2

MANUFACTURES.

Among the most important factors determining the
financial needs of any people are their agricultural,
mineral, and manufacturing resources. Detailed information concerning these classes of resources in the five
States mentioned is given in order to emphasize their
extent and diversification. (See Appendix for tables
giving detailed statistics.)

Urban population.
Number of cities..
Rural population .

Density of population.—Taking the district as a
whole the density of population was 72 per square
mile (United States, 30.9), the several States varying
from a minimum of 50.8 in West Virginia to 117 in
Ohio.
Per
square
mile.

30.9

United States.
District

72.1

Ohio
Indiana
West Virginia
Kentucky
Tennessee

117.0
74. 9
50. 8
57.0
52.4

Urban population.—Of the population of the district, 5,033,707 (38 per cent) live in cities and towns.
This comprises 11.8 per cent of the total urban population of the United States.

!
1

Per
! cent of ;
Population. i total {
! populai tion.

United States

42,623,383

46.3

District

5,033,707

38.2

Ohio
Indiana
West Virginia
Kentucky
Tennessee

2,665,143
1,143,835
228,242
555,442
441,045

55.9
42.4
18.7
24.2
20.2




9 1
4 |
2 L.
3

Per
cent of
urban
population of
United
States.

AGRICULTURE.

Soils.—Eight classes of soils are recognized in the
survey undertaken by the United States with a view
to enabling the farmers, investors, bankers, and railway officials to act intelligently in respect to the interests intrusted to them. Of these eight different kinds
of soils all are found here, the predominant ones consisting of fertile loams.
Especially noteworthy in this connection is the
11
blue-grass " region of Kentucky, extending 100 miles
from east to west and 125 miles from north to south,
often called the " garden spot" of the country. Similar
in general character is the central basin of Tennessee
and the eastern valley of that State between the Blue
Bidge Mountains and the Allegheny Mountain Plateau.
General farm statistics.—The main facts with respect
to the agriculture of the proposed district are shown
in the following condensed tables. I t will be noted
that in rural population, number of farms, improved
land, and values of the various kinds of farm property this section contains approximately one-eighth of
all in the United States.

Number.

100
11.8
Rural population
Number of farms
Acres in farms
Improved acres

8,127,000
1,088,000
97,660,000
66,923,000

District.
Per cent
of United
States. Per cent. Cf. United
States.
16.5
17.1
11.1
13.9

61.8

53.7

83.6
68.5

46.2
54.4




POPULATION PER SQUARE MILE, BY COUNTIES: 1910.

48

LOCATION OF RESERVE DISTRICTS.

(See following maps showing rural population per
square mile and per cent of land area in farms.)

Articles.

Value.

Quantity.

Per cent
of value,
United
States.

Value offarm property.

Value.

Farm propertv
F a r m land
F a r m buildings
Improvements and machinery
Live stock

$5,412,884,000
3,677,044,000
952,651,000
141,363,000
612,720,000

Per cent
of United
States.
13.2
12.9
15.0
11.1
13.0

Average value per farm.
United States

$6,444

District

4,975

Ohio
Indiana
West Virginia
Kentucky
Tennessee

6,994
8, 396
3, 255
2,986
2,490

Size offarms.—Moreover, it is in the main a region
of small farms, the average size being about 90 acres
(U. S., 138), over 65 per cent (IL S., 58 per cent)
being under 100 acres.
Farm ownership.—It is also a region in which the
independent farmer predominates. Over 67 per cent
of the total farms are operated directly by their owners (United States, 62.1 per cent).
P e r cent.

United States

62.1

District...

67.1

Ohio
Indiana
West Virginia
Kentucky
Tennessee

70.6
68. 9
78. 6
67. 2
58. 6

Value of farm products.—At the time of the last
census the total value of farm products in the five
States which it is proposed to unite into a Federal reserve bank district was over $1,500,000,000, representing 13.4 per cent of the value of the farm products of
the entire United States.
Value.

Per cent
of United
States.

Live stock
Cattle
Horses, mules, etc
Hogs
Sheep
Dairy products
Wool
Eggs
Fowls
F a r m crops
Corn
Wheat
Oats
Hay
Potatoes
Other vegetables
Orchard fruits
Tobacco

number.
do...
do...
do...

5,816,000
3,326,000
9,924,000
8,313,000

pounds.
dozen.
number.

35,066,000
287,159,000
88,705,000

bushels.
do...
do...
tons.
bushels.

521,158,000
82,428,000
117,052,000
10,004,000
41,356,000

bushels.
pounds.

32,068,000
591,585,000

$642,720,
153,035,
366,324.
61,518,
32,831,
70,306,
10,562,
53,571,
36,664,
734,602,
288,940,
83,128,
46,646,
97,657,
19,987,
38,715,
20,407,
68,598,

13.0
10.2
13.9
15.4
14.1
11.8
16.1
17.5
18.1
13.4
20.1
12.6
11.2
11.9
12.0
17.9
14.4
65.8

(See following chart.)

These products are widely distributed throughout
the district.
Numerous other crops, such as barley, rye, buckwheat, beans, peas, flaxseed, grass seed, sorghum
cane, sugar beets, etc., are to be found here. Worthy
of note in this connection, too, is the cotton crop.
Although constituting a relatively small part of the
total output of the United States, the cotton crop 9f
Tennessee in 1909 was valued at nearly $18,000,000.
MINING.

Among the most important enterprises of the district are the mining industries, especially those of
coal, oil, and natural gas. According to the census
of 1910 the capital invested in these industries in
the district was over $500,000,000, nearly 15 per cent
of the total in the United States, while the value of
product was over $186,000,000, 15.1 per cent of the
total in the country.
District.

Capital invested
Value of product

$501,164,000
186,782,000

Per cent
of United
States.
14.9
15.1

Leading mineral products.—The quantity produced
and values of the leading mineral products, bituminous coal, natural gas, and petroleum, are shown in the
following table (see chart):
[In thousands, except cubic feet of natural gas in millions.]

United States

$11,583,414,000

District

1,548,425,000

Ohio
Indiana
West Virginia
Kentucky
Tennessee

496,025,000
422,282,000
95,462,000
281,031,000
253,625,000

13.4

Leading farm products.—Within the district are to
be found all of the leading farm products. In the
case of most of them, as may be seen from the accompanying table, the district produces one-eighth or more
of the total in the United States.




Quantity.

Bituminous coal

tons..

124,933
262,204
20,779

Value.

$121,635
49,419
23,805

Per cent
of United
States.
27.0
66.7
17.8

In addition to these, the district produced 18.2 per
cent of the total value of stone in the United States,
22.1 per cent of the value of sand and gravel, 13.2 per
cent of the value of cement, 20.2 per cent of the value
of lime, and 15.5 per cent of the value of clay.




©i
O

PER CENT LAND IN FARMS FORMED OF TOTAL LAND AREA, BY COUNTIES: 1910.

n n
Less than 20 per cent,
HHH 20 to 40 per cent.
40 to 60 per cent
60 to 80 per cent.
80 to 90 percent.
90 to 95 per cent,
95 per cent and over.




51

CINCINNATI, OHIO.

DISTRICT AGRICULTURAL STATISTICS.
P E R C E N T A G E S OP T O T A L I N THE U N I T E D
<7

N u m b e r of f a r m s .
Acres in f a r m s
I m p r o v e d acres
V a l u e of—
Farm property .
F a r m land
F a r m buildings
F a r m i m p l e m e n t s mul m a c h i n e r y .
F a r m products
L i v e stock
Cattle
Horses a n d mules..
Swine

Dairy products
Wool
Eggs
Fowls
A l l f a r m crops
Corn
Wheat
Oats
Hay
Potatoes
Other vegetables...
Tobacco
Orchard p r o d u c t s . .




I O 1z/4-

2-0

3.<9

STATES.
^ro

6 0

52

LOCATION OF RESERVE DISTRICTS.

Coal: The coal area of the district amounted to
57,230 square miles, 18.4 per cent of the entire coal
area of the United States. This constitutes nearly
one-third (31,1 per cent) of the total land area of the
district.
The probable magnitude of the future development
of the coal industry here may be inferred from the
fact that the available supply of coal in the district in
1911 was estimated to be 407,247,000,000 tons. (See
Mineral Resources of the United States, 1911, pp.
30 et seq.)
Natural gas and oil: By far the most important
natural gas and oil areas in the United States are to be
found within this district. Two main fields for the
production of these commodities appear in these
States; one, the Appalachian, lies in West Virginia,
southeastern Ohio, and western Kentucky; the other,
the Lima-Indiana field, is found in northwestern Ohio
and eastern Indiana. Of natural gas, the district
produced in 1911 two-thirds (66.7 per cent) of the
total output in the United States.
MANUFACTURES.

General statistics.—The manufactures within the
district are likewise both extensive and varied. Of
the 257 separate industries recognized by the census
of 1910, 231 (90 per cent) are found in this district.
In 70 of these the district supplied over one-eighth of
the total product.
Forty-eight industries were reported in 1910 as
having an output of over $100,000,000 each. The
district contributed to 47 of these and produced over
one-eighth in 19 of them. Likewise, in number of
establishments, persons engaged in industry, primary
horsepower, capital, wages, value of product, and
values added by manufacture the district is represented by one-eighth or more of all in the United
States. (See chart.)

5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.

Slaughtering and meat packing
$110,482, 000
Liquors, distilled
90,237,000
Iron and steel blast furnaces
88,352,000
Printing and publishing
71,362,000
Cars and general shop repairs by steam railroad
companies
65, 863, 000
Automobiles, including bodies and parts
62, 603, 000
Rubber goods, n. e. s
58,224,000
Carriages and wagons, and materials
52, 460, 000
Tobacco manufactures
51,660,000
Men's clothing
43,780,000
Liquors, malt
42,909, 000
Bread and bakery products
40, 919, 000
Furniture and refrigerators
40,660,000
Boots and shoes
36,958,000
Leather, tanned, etc
31,661,000
Copper, tin, and sheet iron
30,472, 000
Agricultural implements
29,114,000
Electrical machinery, etc
26,724,000
Paper and wood pulp
24,819,000
Women's clothing
22, 323, 000

(See chart.)
DISTRIBUTION OF INDUSTRIES.

Some of the industries, such as {hose connected with
farming, are of importance in practically all sections of
the district, while others, such as mining and manufactures, are more centralized; the location of the
former (mining) being determined by the distribution
of mineral resources, while the latter (manufactures)
are found principally in the large cities and their immediate environment. Even the mining and manufacturing interests, however, are of large importance
in each of the States mentioned.
VARYING D E G R E E S OF DEVELOPMENT.

The several sections of the five States present
varying degrees of development—a fact which lends
importance to the proposition to combine them into
one regional bank district, thereby bringing into close
relation the more highly developed areas and those
less developed, to the mutual advantage of both.

Summary of manufactures.

RAILROADS.
District.

Number of establishments
Persons engaged
P r i m a r y horsepower
Capital
Wages
Value of product
Value added b y manufacture

35,068
979,462
2,906,529
$2,301,076,000
$430,101,000
$2,582,932,000
$1,115,682,000

Per cent
of United
States.
13.1
12. 8
15.5
12.5
12.6
12.5
13. 1

Through its railroads and rivers, the district is well
provided with facilities for transportation and communication. According to the Interstate Commerce
Commission's report of 1911, the five States contained
over 27,000 miles of railroad. This was 11.3 per cent
of the total railroad mileage in the United States.

Thirty-nine of the forty-eight leading industries
referred to reported a product in this district of over
$10,000,000. The most important of these are the
following:

Miles p e r Per c e n t !
of
United j
100
| 10,000
• States. ! square ! inhabimiles. I tants.

Miles.

United States.

1.
2.
3.
4.

Iron and steel works and rolling mills
Foundry and machine shop
Flour and grist mills
Lumber and timber




$266,646,000
207, 890, 000
147,765,000
138,328,000

244,180 :

District.

Value of product of leading manufactures.

27,638 i

Ohio
Indiana
West Virginia.
Kentucky
Tennessee

9,128
7,447
3,575
3,607
3,881

;
\
!
|

8.2
11.3 I

15.0

21.0

22.4
20.7
14.9
9.0
9.3

18.9
27.4
28.7
15.7
17.6

46

CINCINNATI, OHIO.

DISTRICT MANUFACTURING STATISTICS.
VALUE OF PRODUCTS I N MILLIONS OF DOLLARS.

Steel rolling mills
F o u n d r y and machine
F l o u r and grist mills
Lumber and timber
Slaughtering and meat packing.
Liquors, distilled
Blast furnaces
Printing and publishing,
Cars and repairs b y steam railroads
Automobiles, including bodies and p a r t s . .
R u b b e r goods
Carriages a n d wagons
Tobacco
Liquors, malt
Bread a n d bakery products.
F u r n i t u r e and refrigerators
B o o t s and shoes
Leather, t a n n e d , curried, etc
Copper, tin, and sheet-iron products
Agricultural implements.
Electrical machinery
P a p e r and wood-pulp.
Clothing, women's.

3?
Value of mining products.
Capital employed
Coal area
Value of—
B i t u m i n o u s coal produced .
N a t u r a l gas
Petroleum
Clay p r o d u c e d . . .
Sand and gravel.
Cement
Lime
^tone




Ac

So

<PO

54

LOCATION OF RESERVE DISTRICTS.

DISTRICT MANUFACTURING STATISTICS.
PERCENTAGES

OP T H E

o
Number of establishments
Persons engaged

.

Primary horsepower
Capital
Value of all products ..
Value added by manufacture
Value of—
Agricultural implements
Automobiles
Bread and bakery products
Canning and preserving
Carriages and wagons
Cars and repairs by steam railroads
Cars (steam railroad) not operations of railroad companies...
Coffee and spices
Confectionery
Copper, tin, and sheet-iron products
Electrical machinery
Flour-mill products
Food preparations
Foundry and machine shop products
Furniture and refrigerators
Blast-furnace products
Rolling-mill products
Leather goods
Leather, tanned and curried
Liquors, malt
Liquors, distilled
Lumber and timber
Marble and stone
Paint and varnish
Paper and wood p u l p . . .
P a t e n t medicines
Printing and publishing
Rubber goods . . .
Soap
Tobacco manufactures




-

TOTAL I N T H E

/c

UNITED

tzfi-

STATES.

7,0

s3o

55

CINCINNATI, OHIO.

The United States Government is now engaged in
erecting a series of locks and dams in the Ohio River
which, when completed, will insure a 9-foot stage of
water the year around. Facilities for water transportation are afforded also by some of the more important
tributaries of the Ohio River.
CINCINNATI.

Location.—Geographically, Cincinnati lies nearest
the center of the proposed district, midway between
the most highly developed portions and those less developed, thus enabling it to bring these sections into
relation with each other. It is situated near the
center of population of the United States.
Population.—Cincinnati as an urban center includes
the following political units and their immediate environment, which taken together constitutes the
metropolitan district of Cincinnati, as recognized by
the United States census: Cincinnati, Ohio; Norwood,
Ohio; St. Bernard, Ohio; Covington, Ky.; Newport,
Ky.; Dayton, Ky.; Bellevue, Ky.
The population of this metropolitan district, according to the last census, was 563,804. The Ohio River,
which separates the Ohio and Kentucky portions of
this industrial city, is less than one-half mile wide and
is crossed by five bridges. The street car lines from
the Kentucky side, with few exceptions, run to the
heart of Cincinnati, constituting practically a part of
the city's traction system. Night and morning a
large portion of the population from the Kentucky
cities mentioned, as from the suburban portion of
corporate Cincinnati, come to the city where their
business affairs are transacted. From a business
standpoint, the communities mentioned constitute
one city.
Industries.—The manufactures of industrial Cincinnati, according to the last census, are represented by
2,827 establishments, 95,571 persons engaged; a capital of $212,555,000, and a product valued at $264,000,000, of which $121,292,000 represented value added by
manufacture. Thirty industries were reported in 1910
with an output of over $1,000,000 each. (See table
giving detailed statistics concerning these industries.)
Trade relations.—The commerce of Cincinnat reaches
every State in this country and all the leading foreign
markets. Intimate trade relations exist between the
city and all portions of the proposed district, as is
shown by the following statistics of the distribution of
trade.
Information on this subject was furnished by 98
firms of various sizes, representing 38 different industries. Their total sales within the district for the year
1913 amounted to $70,052,000. This was distributed
among the five States of the proposed district as follows:
Ohio
Indiana




$36,572,000
9,776,000

West Virginia
Kentucky
Tennessee

$4, 727,000
10,422,000
6,555,000

Sales amounting to $9,512,000 were reported also in
the States of Alabama, Georgia, and Mississippi.
Alabama
Georgia
Mississippi

$3,405,000
4,078,000
2,109,000

Detailed information was secured showing the distribution by cities of $27,564,000 of the sales in the
district outside of Cincinnati. This distribution by
sections, together with the population of each, will be
found on page —. (See Appendix for tables showing
this trade by cities grouped in sections.)
Package car shipments.—The general trend of trade
between Cincinnati and the various parts of the district is shown by the distribution of package car shipments. The total volume of these shipments for the
month of October, 1913, was 144,318,000 pounds.
This was distributed among the States of the proposed
district as follows:
Ohio
Indiana
West Virginia
Kentucky
Tennessee

59; 018,000
23,705,000
10, 515,000
34,907,000
16,172,000

The following table gives the distribution of these
shipments by sections in each State. (See Appendix
for tables showing these shipments by "Break-bulk"
points grouped in sections.)
Industries of the Cincinnati metropolitan district, 1909.
[Capital and value expressed in thousands.]
NumValue
ber of
Value of added
estab- Persons Capital. prodby
lishucts.
manuments.
facture.
All industries
Foundry and machine-shop products.
Slaughtering and meat packing
Men's clothmg
Boots a n d shoes, etc
Printing and publishing
Liquors, malt
Liquors, distilled
Carriages and wagons a n d materials..
Lumber and timber products
Bread and other bakery products
Furniture and refrigerators
Tobacco manufactures
Leather, tanned, curried, and finished
Copper, tin, a n d sheet-iron products..
P a m t and varnish
Clothing, women's
Stoves and furnaces, etc
Coffee and spice, roasting and grinding
Confectionery
Cars and general shop construction
and repairs b y steam-railroad companies
Ink, printing
Musical instruments and materials...
Fertilizers
Flour-mill and gristmill products
Leather goods
Safes and vaults
Patent medicines and compounds
and druggists' preparations
Cooperage and wooden goods
Bags, paper
Brass and bronze products
All other industries

2,827
238
61
301
32
318

80
264
63
300
13
65
24

95,571 $212,555 $260,399 $121,292
13,716
1,400
8,492
8,702
6,806
2,371
300
3,370
2,809
2,017
3,059
3,462
1,043
1,390
636
1,541
1,092

29,542
4,701
10,421
7,656
13,183
17,929
2,833
6,020
8,398
2,865
4,953
3,009
9,503
2,652
4,026
1,229
2,150

26,186
19,922
17,646
14,998
13,998
11,016
8, 744
8,157
7,401
5,691
5,646
5,496
5,058
4,470
3,879
2,912
2,324

15,059
2,425
8,936
6,415
9,778
8,360
6,920
3,789
3,055
2,296
3,307
3,075
1,381
1,500
1,394
1,399
1,311

356
922

1,083
970

2,110
2,029

514
807

1,747
273
760
442
124
664
703

1,651
1,545
1,184
1,551
570
1,500
1,156

1,969
1,884
1,752
1,675
1,635
1,518
1,401

1,171
1,090
672
672
203
719
771

542
697
358
650
19,367

1,004
1,445
673
1,319
65,820

1,293
1,232
1,088
1,069
76,186

776
466
358
626
32,036

j

56

LOCATION OF RESERVE DISTRICTS.

(In order to avoid disclosure of individual operations, the figures for certain important establishments
notable for the manufacture of soap are included
under the head of "All other industries." The output of these soap factories is estimated from $20,000,000 annually upward.)

and surplus of $30,096,000 and deposits amounting to
$135,190,000. Of the 42 banks, 11 are national banks,
with a capital and surplus of $19,968,000 and deposits
amounting to $74 799,000. The following table shows
the banking resources of the metropolitan district of
Cincinnati and of the corporate city:

Trade distribution, by sections.
Cincinnati.

Population.
811,989,000

Northwest...
West-central.
Southwest...
Northeast
East central..
Southeast

407,000
390,000
462,000
395,000
759,000
288,000

1,822,000 1,221,000

West Virginia.
North.
South.
East...

582,000
1,223,000
17,000

602,000
518,000
100,000

Kentucky.

5,723,000

2,290,000

160,000
380,000
242,000
102,000
413,000
881,000
11,000
403,000
9,000
122,000

152,000
305,000
424,000
188,000
299,000
213,000
159,000
207,000
167,000
191,000

2,693,000

2,185,000

Southwest
West
North west-central.
South west-central.
North east-central..
East-central
South east-central..
Northeast
East
Southeast
Tennessee.
Northwest
Southwest
North west-central.
South west-central.
North east-central..
South east-central..
East
Northeast

(V)
996,000
649,000
55,000
20,000
465,000
423,000
86,000

239,000
410,000
399,000
188,000
193,000
241,000
333,000
182,000

i Less than $500.

Pounds.
59,018,302

Northwest
West-central
Southwest
North-central..
Central
South-central..
Northeast
East-central...
Southeast
Indiana
Northwest
West-central
Southwest
Northeast
East-central
Southeast

.
.
.
.

2,822,054
6,865,012
23,361,585
1,997,827
8,066,408
8,052,723
6,350,013
329,730
1,172,900
23,704,796
696,847
1,293,464
2,607,177
2,170,046
9,367,814
7,569,448

West Virginia

10,515,212

North
South

Kentucky
Southwest
West
North west-central
South west-central
North east-central
East-central
Southeast-central
Northeast
East
Southeast
Tennessee
Northwest
Southwest
North west-central
South east-central
East
Northeast

26
$22, 725,000
680,000

31
$10,128,000
$60,391,000

46
$10, 896,000
$64, 793,000

42
$30,096,000
$135,190,000

72
$33, 621,000
$151 473,000

Num- Counties
ber of reprebanks. sented.
Cincinnati
In
In
In
In
In

Ohio
Indiana
West Virginia,
Kentucky
Tennessee

877

225

173
43
286
37

422
47
37

Cleveland
In Ohio
In Indiana..,
Nashville
In Tennessee
In Kentucky,

Louisville
In Kentucky
In Indiana/.
In Tennessee

Num- Counties
ber of reprebanks. sented.

109
16
20

Columbus
In Ohio

444

76

437
7

72
6

274

74

254
20
130
130

36
36

83
83

Pounds.
34,907,035
178,100
275,521
7,090,087
347,572
9,693,257
8,765,337
571,555
5,553,226
263,206
2,169,174
16,172,201
4,519,472
2,733,202
228,290
3,989,629
3,900,054
801,554

2,834,192
7,681,020
BANKING.

Resources.—The city of Cincinnati, according to
the 1913 bank directory, has 42 banks with a capital




11
$19,968,000
$74,799,000

Principal correspondent rdations.—That Cincinnati
is the logical place for the location of a reserve bank to
serve the States of Ohio, Indiana, West Virginia, Kentucky, and Tennessee is shown by the correspondent
relations existing in those States. The principal correspondent relations existing within the proposed
district, as shown by a banking directory of 1913, was
as follows:

Indianapolis
In Indiana

Package car shipments, by sections, October, 1913.
Ohio.

National banks:
Number
Capital and surplus.
Deposits
Other banks:
Number
Capital and surplus.
Deposits
All banks:
Number
Capital and surplus
Deposits

2,701,000

526,000
636,000
511,000
431,000
2,275,000
958,000

Indiana.

428,000
410,000
851,000
374,000
502,000
313,000
1,303,000
382,000
204,000

5,336,000

Northwest
West-central..
Southwest
North-central.
Central
South-central.
Northeast
East-central...
Southeast

4,767,000

721,000
403,000
005,000
510,000
333,000
200,000
045,000
451,000
320,000

Ohio

Metropolitan
district.

A loaning center.—The direct service to the banks in
the district is shown by the rediscounts from month to
month for the year 1913, taken from figures furnished
by six national banks. These show that the borrowing
was heaviest in October, November, and December,
but there was a difference of only $1,500,000, between
the maximum and minimum at any time during the
year.
In the comptroller's report for April, 1912, rediscounts are shown in Cincinnati for nearly $2,000,000.
About $1,700,000 of this amount was for the Second
National Bank, which at that time was being directed
by the clearing house members. I t was reorganized in
August and placed in the hands of new officers faith
$1,000,000 new capital.
The country banks in the district had outstanding in
loans in Cincinnati an average of $5,000,000 a month,
during the year 1913, the amount of fluctuation being

57 LOCATION OF RESERVE DISTRICTS.

$1,200,000 between the high and low points. This was
in addition to such loans as were made here by country
bankers independent of their Cincinnati nationalbank correspondents.
That the community of which Cincinnati is a center
belongs to the loaning sections of the proposed district
is shown by the fact that the loans held for country
banks in 1913, by six of the city's national banks,
exceeded the loans owing by country banks, on the
average by over $3,000,000 per month. (See table and
chart.)

Shipments of currency.—One element of importance
in the service rendered by national banks is the shipment of currency to their correspondents.
The following table shows the extent of these shipments by the national banks of Cincinnati in 1913:
January
February
March.
April
May
June
July

$2,848,205
3,192, 215
3, 300,410
2, 796,142
2,700,871
2, 978, 950
2,475,850

August
September
October
November
December

$2,870,806
3, 995, 600
4, 859,050
3,135, 300
3,952,050

Total

39,105,249

AVERAGE AMOUNTS OF OUTSTANDING LOANS &* 5JX CINCINNATI NATIONAL BANKS TO COUNTY BANKS .

1913 JAN.

FEB.

tIAR

APR

fWL

JUNE.

Loans to and for country banks.
Months.

To.

For.

Excess of
for.

January
February
March
April
May
June
July
August
September...
October
November...
December

$2,681,000
1,761,733
1,147,100
1,953,500
1,796,000
1,985,300
1,881,600
2,101,400
2,409,300
2,691,600
2,791,442
2,724,561

301,814
246,075
079,494
954,194
500,095
415,595
369,605
179,210
229,510
119,150
856,005
863,690

$2,620,814
4,484,342
4,932,394
4,000,694
3,704,095
3,430,295
3,488,005
3,077,810
2,820,210
2,427,550
2,064,563
2,139,129

Total..

25,924,536

64,114, 437

39,189,901




JULY.

AUQ

SEPT

OCt

NOV.

DEC,

Over $34,826,000 of these shipments went to banks
within the States of the proposed district, distributed
as follows:
Ohio
Indiana
West Virginia
Kentucky
Tennessee

$14,865,125
4,237,405
4,063,718
9,402,421
2,257,405

The remaining $4,279,000 went to the following
States: Alabama, Georgia, Florida, Virginia, North
Carolina, New York, Illinois, and Missouri.

58

LOCATION OF RESERVE DISTRICTS.

Enterprises financed.-—Besides aiding the industries
of the city itself, Cincinnati banks participate largely
in financing the various business activities of the
district.
Prominent among the enterprises to which Cincinnati banks render this service are those engaged in the
production and sale of wheat, corn, cattle, hogs, sheep,
wool, tobacco, blue-grass seed, coal, distilled liquors,
iron, and paper and pulp.
Wheat and corn: Cincinnati is in the center of the
winter wheat and corn raising sections of the districts.
The crop rarely varies one week in coming on the
market. The movement starts before the 10th of July
and grows in volume for more than a month, gradually
receding in August and September. If the crop is a
good one, the country banks' balances in Cincinnati
begin swelling. If it is a poor one, as it was in 1912,
the balances decline, the banks rediscount, and Cincinnati helps to carry the load until the corn crop gives
a surplus of funds.
The period of time which must elapse after the corn
is cut in September varies greatly with the weather, as
it requires dry air and high winds to dry out corn. If
the marketing is delayed, this requires further accommodation on the part of the Cincinnati banks. Moreover, if the price of corn is not satisfactory to the
farmer, he will insist that his country bank continue
to carry his loans and that he be allowed to buy hogs
and cattle for fattening.
This practically puts a further strain on the country
banks, as the proceeds of the corn are not realized upon
at once. In the case of hogs, more than 60 days are
consumed in the process of fattening, and in the case of
cattle from 4 to 6 months. This results in a corresponding call for service on the part of the Cincinnati
banks, often involving accommodation to country
banks for as much as 6 or 7 months.
Cattle and hogs: On most of the farms in the grassgrowing sections of the district it is the custom to buy
lean, big-framed cattle from the plains for fattening.
These are grass fed throughout the summer. The
capital for this is largely borrowed from local banks,
which in turn rediscount in Cincinnati acceptable
short-time bills receivable for such sums as they may
require.
A similar financial service is rendered for those
farmers who are engaged in hog raising.
At the Kentucky distilleries about 60,000 head of
cattle are fed annually. The fattening process lasts
from 4 to 6 months; the value of the cattle runs from
$3,000,000 to $5,000,000; and the money for carrying
them is supplied to the owners, either directly or indirectly, by Cincinnati banks.
Sheep and wool: The last census showed that there
were in the district over 8,000,000 sheep, yielding over
35,000,000 pounds of wool. Nearly 4,000,000 of these




sheep were in Ohio, the wool crop in that State being
over 21,000,000 pounds.
In the principal sheep-raising section, Cincinnati
banks rediscount for the country banks and assist in
financing this interest until such time as money is
received from the sale of wool.
Tobacco: Five counties, all within less than 100
miles of Cincinnati, raise what is called cigar-leaf
tobacco, and some 40 counties in central Kentucky
raise white burley, as do also the counties in Tennessee
near Nashville.
The Ohio tobacco is held from 12 to 15 months after
it is grown before its distribution commences. The
crop has usually a value of from $3,000,000 to
$4,000,000. This financing is principally done in
Cincinnati.
The Kentucky crop is much larger. To carry this
crop until it is ready for the market, loans and rediscounts are made to various banks in the tobacco
section. This business is divided mainly between
Cincinnati, Louisville, and to some extent Lexington.
The same service is rendered by Nashville for the
Tennessee crop.
Blue-grass seed: Cincinnati carries annually large
amounts of blue-grass seed, the bulk of which is raised
in central Kentucky. The active distribution of this
crop to the trade commences in February and March.
Coal: Cincinnati is one of the great soft-coal markets
of the country. With the development of West Virginia and the rapid opening of mines in eastern Kentucky, the various companies are constantly opening
new offices in Cincinnati for distribution. The volume
of this business is increasing rapidly. The production
of soft coal in eastern Kentucky is now five times what
it was five years ago.
The Louisville & Nashville Railroad in the last three
years has spent between $30,000,000 and $40,000,000
in reaching the new fields. Before doing so, an agreement was made with one of the big operators which
guaranteed a minimum freight movement of 1,000,000
tons of coal annually as soon as the road was ready.
The actual shipments from this section have already
reached more than twice that amount.
The Chesapeake & Ohio is extending its lines into
the Kentucky coal fields, as is also the Baltimore &
Ohio. The Carolina, Clinchfield & Ohio Railroad is
coming through the last remaining gap in the mountains from Virginia, and is connecting up with the
Chesapeake & Ohio to reach Cincinnati. The Norfolk
& Western has also just built into the eastern Kentucky coal fields from West Virginia.
The city directory for 1914 shows a list of 82 wholesale coal dealers in Cincinnati. Their operations run
into large figures. Heavy shipments of coal go to the
United States Steel Corporation at Gary, Ind. Many
tons go also to Chicago, Toledo, and Cleveland, a part

59

CINCINNATI, OHIO.

for consumption in those centers, and a part for distribution northward by the Great Lakes.
Large amounts of credits are used in this distribution, the financing being done by Cincinnati banks.
Distilled liquors: In the Kentucky distilleries, many
of which are largely owned in Cincinnati, large amounts
of whisky are produced and carried through loans
made by Cincinnati banks.
Iron: Cincinnati has the head offices of some seven
or eight of the largest firms and corporations in the
country engaged in the distribution and sale of pig iron
and coke. The various companies have offices also in
most of the other large cities. Their financing is done
where they can get the cheapest money; Cincinnati
furnishes a large part of it.
Paper and pulp: There are a large number of paper
mills strung along from Cincinnati up the Miami Valley
for some 60 miles. These collectively have a large
capacity. At Hamilton, Ohio, about 15 miles from the
Cincinnati limits, is the largest paper mill under one
roof in the country. I t derives its raw materials from
Canton, N. C., the plant there being one of the largest
freight producers on the line of the Southern Railway.
Nearly all of these mills are owned and financed in
Cincinnati.
Panic of 1907.—That the banks of Cincinnati appreciate their responsibilities and are both able and ready
to meet them is shown by their prompt action in connection with the panic of 1907 and the floods of 1913.
Though suffering in common with other communities in the fall of 1907, the Cincinnati national banks
shipped over $16,780,000 during the months of August,
September, October, November, and December, the
following table showing the States to which this aid
was rendered and the amount sent to each.
Floods of 1913.—The banks of Cincinnati were
prompt in meeting the emergency caused by the floods
of 1913. Large sums of gold, silver dollars, and paper
currency were taken by automobiles to many of the
cities as soon as the water went down, loans being
made in some cases before the bankers could open
their vaults.
Cincinnati had one railroad by which Dayton could
be reached, and although it was operated under martial law and very much overtaxed in furnishing food
and supplies, it was of great assistance in getting
currency there after the first few days. Banks in
Columbus, Piqua, Zanesville, and many other places
were reached when they were almost entirely cut off
from the outside world. Banks in Huntington, W. Va.,
and Ashland, Ky., had several feet of water in their
vaults, and were in frequent communication with Cincinnati to find out if aid could be given if needed. The
bankers of both cities were assured that help would be
provided if called for,




Shipment

of cash, August-December,

August.
District
Ohio...
Indiana
West Virginia
Kentucky
Tennessee
Other States:
Louisiana
Mississippi
Alabama
Georgia
North Carolina
Virginia
New York
Illinois
Colorado

September.

October.

November.

1907.
December.

Total.

S3,125,000 $3,000,000 $4,309,000 $3,860,000 $1,504,000 $15,798,000
1,154,000 1,308,000 1,763,000 1,317,000
1,054,000
709,000
989,000
886,000
255,000
221,000
417,000
261,000
475,000
562,000
787,000 1,248,000
187,000
200,000
353,000
148,000

3,000
86,000

654,000
324,000
67,000
403,000
56,000

10,000

15,000

13,000
35,000
80,000
20,000
15,000

41,000

41,000

3,000
58,000
10,000
100,000
31,000
100,000
46,000

6,000
18,000

39,000
16,000
15,000

26,000
20,000
30,000
20,000

60,000
10,000

16,000

6,196,000
3,962,000
1,221,000
3,475,000
944,000
10,000
58,000
201,000
123,000
120,000
103,000
120,000
218,000
30,000

Grand total. 3,270,000 3,204,000 4,657,000 3,990,000 1,660,000 16,781,000

RAILROADS AND WATERWAYS.

Lines.—From Cincinnati as a center, railroads radiate in every direction. The principal routes and lines
are:
To the North and Northeast: Cleveland, Cincinnati,
Chicago & St. Louis; Cincinnati Northern; Cincinnati,
Hamilton & Dayton; Pennsylvania; Erie.
To the East and Southeast: Pennsylvania; Cleveland, Cincinnati, Chicago & St. Louis; Chesapeake &
Ohio; Norfolk & Western.
To the South and Southeast: Louisville & Nashville; Cincinnati, New Orleans & Texas Pacific.
To the West and Southwest: Baltimore & Ohio;
Pennsylvania; Cleveland, Cincinnati, Chicago &
St. Louis; Louisville & Nashville.
To the Northwest: Pennsylvania; Cleveland, Cincinnati, Chicago & St. Louis; Cincinnati, Hamilton &
Dayton; Chesapeake & Ohio of Indiana.
River.—When the present improvements are completed, a permanent 9-foot stage in the Ohio will afford
an inexpensive transportation route, east and west,
through the center of the proposed district, connecting
with the navigable streams of the Mississippi Valley.
It is expected that when the Panama Canal is completed Cincinnati will have a direct water communication with seaport towns.
Package-car service.—Especially indicative of the importance of the railroads of Cincinnati as distributing
agencies is their package-car service.
An average of 596 package cars leave Cincinnati
daily. Some idea of the excellent facilities afforded
by this service may be obtained from the following list
of railroads providing such cars and the States in
which u break-bulk" points are situated. It will be
observed that package-cgfr lines radiate in every direction from Cincinnati. (A complete list of lines and
"break-bulk' points is given in the Appendix.
Louisville & Nashville: Kentucky, Tennessee, Louisiana, Alabama, Georgia, Florida, Virginia, Arkansas.

60

LOCATION OF RESERVE DISTRICTS.

Cincinnati, New Orleans & Texas Pacific: Kentucky,
Tennessee, Alabama, Louisiana, Texas, Georgia, Florida, South Carolina, North Carolina, California.
Cleveland, Cincinnati, Chicago & St. Louis: Ohio,
Indiana, Minnesota, Michigan, New York, Missouri.
Baltimore & Ohio: Ohio, Indiana, West Virginia,
Illinois, Pennsylvania, New York, New Jersey, Maryland, Kentucky, Tennessee, Missouri, Texas.
Pennsylvania: Ohio, Indiana, Illinois, Michigan,
Pennsylvania, New York.
MAILS.

Facilities.—Of special significance in this connection
are the exceptional mail facilities in Cincinnati. Frequent mails pass between Cincinnati and all portions
of the district. The arrangements are such as to make
possible communication between Cincinnati and all of
the large cities of the district between the close of
business hours on one day and their opening on the
following morning. The same is true of mail communication between Cincinnati and many important cities
in contiguous districts.
The following tables give (1) the number of daily
mails between Cincinnati and 30 leading cities, together with the shortest time of mail service to and
from those cities; and (2) a detailed statement of the
schedule time of departure and arrival of each of the
mails mentioned, together with the length of time
required for each trip.
(See Appendix for tables giving hours of departure
and of arrival of all mails to and from Cincinnati and
other cities, and length of time required for each trip.)

Mails between Cincinnati and other cities—Continued.
No. Shortest
time.
H.
10
10
11
10

m.
40
20
55
20

13
13
14
14
14
14
8
8
10
11
10
9
7

Cincinnati to Grand Rapids
Grand Rapids t o Cincinnati
Cincinnati t o Buffalo
Buffalo to Cincinnati
Cincinnati to Pittsburgh
Pittsburgh to C i n c i n n a t i . . .
Cincinnati to Atlanta
Atlanta to Cincinnati
Cincinnati to Birmingham
Birmingham to Cincinnati.
Cincinnati t o Memphis
Memphis t o Cincinnati
Cincinnati t o St. Louis
St. Louis t o Cincinnati
Cincinnati to Springfield
Springfield t o C i n c i n n a t i . . .
Cincinnati t o Peoria, 111
Peoria to Cincinnati
Cincinnati to Chicago
Chicago to Cincinnati
Cincinnati to New York
New York to Cincinnati
Cincinnati to Washington
Washington to Cincinnati..

50
38
15
15
15
40
15
15
55
10
10
20
55

8 5

18 28
17 50
17 0
17 35

DISTRIBUTING CENTER.

Cincinnati is an important distributing center for a
large number of commodities. The receipts and shipments of the 113 articles included in the monthly
report of the chamber of commerce (see table in
Appendix), when combined on the principle of the
index number, show the following relative movements for the months in 1913:
Month.

January..
February
March...
April....
May
June

Receipts.

213
204
208
148
200
191

Shipments.
195
215
132
132
185
191

Month.

July
August
September
October...
November.
December.

Receipts.

197
172
202
268
231
264

Shipments.
170

23a

174
237
217
297

Mails between Cincinnati and other cities.
•No. Shortest
time.

Cincinnati to Toledo
Toledo to Cincinnati
Cincinnati to Cleveland
Cleveland to Cincinnati
Cincinnati to Columbus
Columbus to Cincinnati
Cincinnati t o Dayton
Dayton t o Cincinnati
Cincinnati to Wheeling, W . V a . .
Wheeling to Cincinnati
Cincinnati t o Parkersburg
Parkersburg to Cincinnati...
Cincinnati t o Charleston, W . Va.
Charleston to Cincinnati
Cincinnati to Huntington
Huntington to Cincinnati...
Cincinnati to Louisville
Louisville to Cincinnati
Cincinnati t o Lexington
Lexington to Cincinnati
Cincinnati to Knoxville
Knoxville t o Cincinnati
Cincinnati t o Chattanooga
Chattanooga to Cincinnati..
Cincinnati t o Nashville
Nashville to Cincinnati
Cincinnati t o Indianapolis
Indianapolis to Cincinnati...
Cincinnati to Evansville
Evansville to Cincinnati
Cincinnati t o Terre H a u t e
Terre H a u t e to Cincinnati..
Cincinnati to Fort Wayne
Fort Wayne to Cincinnati...
Cincinnati to Detroit
Detroit to Cincinnati




H. m.
5
50
10

0

9
10
8
2

50
10
16
35
10
50
30
27
40
55
20
30
27
20
25
33
24
50
55
5
15
35
35
35
35
30
35
30
30
40
55
49

In so far as this is a reliable basis for judging of the
character of the distribution of commodities through
this market, it appears that the movements into and
out of Cincinnati are relatively constant throughout
the year. Indeed, it is characteristic, both of the
industries of the city itself and of its commerce, that
the articles are of so varied a character as to render
the business and financial conditions independent of
the vicissitudes that may attend any one class of
products.
While some of the commodities, such as fruits and
grains, are more or less seasonal, others, such as coal
and coke, groceries and manufactured articles in general, have a comparatively constant movement.
Moreover, of the seasonal commodities there appears
to be such a diversity in the seasonal movements that
exceptional activity or quietness in one line is supplemented by an opposite condition in another.
Commodities.—Among the leading commodities for
which Cincinnati serves as a center of distribution are
coal, pig iron, tobacco, distilled liquors, grain, fruits,
live stock, lumber, dry goods.

61

CINCINNATI, OHIO.

Coal: Concerning the distribution of coal, the following information is supplied by the officials of the
Cincinnati Coal Exchange:
Tonnage and value.—The following figures are compiled from
statistics of the chamber of commerce covering receipts and shipments by rail and river, including anthracite; but this product
being of such small volume we have included it with the bituminous coal by rail in both receipts and shipments. We have struck
an average of $2 per net ton for the value which is based upon the
cost of coal f. o. b. mines plus the freight rates:
| Average
s value.

B y rail
B y river

Total.

j 6,224,521
1,935,994
! 8,160,515

Total
SHIPMENTS.

By rail..
B y river.
Total

$2.00 | $12,339,042
2.00
3,871,988
16,321,030

!

4,341,462
357,313

2.00 |
2.00 |

8,684,924
714,626

| 4,698,775

2.00 |

9,399,550

In the accompanying map the green lines show the
sources of supply and the red lines the markets served.
(See chart.)
A great deal of smithing coal and coke from the West Virginia
fields goes through Cincinnati as far west as the Pacific coast and
the western smelters, as well as into the Northwest and into Canada.
In addition to the rail shipments to these points, a great amount
of coal is handled through Cincinnati and shipped by Lakes Huron,
Michigan, and Superior, the bulk of which goes to Duluth and
Superior and is reshipped from the docks into the interior. There
is a growing trade going by lake to Fort William and Port Arthur
to supply Winnipeg and the territory beyond.
In addition to the markets above mentioned, there is a great
number of mining companies operating in West Virginia, which are
owned, controlled, and financed in Cincinnati and which ship
direct from the mines east, north, and south, including exporting
and coastwise and New England tidewater business, the financing
and selling of which is done in Cincinnati. The value of such coal
is approximately $9,000,000.

Pig iron: A representative of one of the leading pigiron firms of Cincinnati states that 11 Three-fourths of
the iron made in Alabama is distributed from Cincinnati, together with all the iron made in Tennessee and
Kentucky. Cincinnati also distributes heavy tonnage of northern iron and all made in the Ironton
district."
Cincinnati's market is distinctively the Middle West.
Pig-iron houses sell to every State in the Union.
Tobacco: Another important commodity for which
Cincinnati serves as a leading distributing center is
tobacco. The district is one of the principal tobacco
producing sections of the country and much of this
product is financed in Cincinnati. In addition to this,
Cincinnati firms handle large quantities of tobacco
secured from Pennsylvania, Connecticut, Wisconsin,
Virginia, and foreign countries. The sales of tobacco
through the Cincinnati market are made throughout the East, the South, and the middle Western
States. An effort has been made to show on the




accompanying map the general character of the source
of supply and the market reached through Cincinnati.
Distilled liquors: Cincinnati is the leading distributing center in the United States for the sale of distilled liquors. Ninety-eight distillers and wholesale
dealers have offices in Cincinnati, with a combined
capital of over $21,000,000. They distribute for 27
distillers located as follows: Kentucky, 18; Ohio, 4;
Pennsylvania, 4; New York, 1.
The estimated amount of sales made in the Cincinnati markets is $25,000,000 a year. The markets are
to be found in every State in the Union.
Grain: Official representatives from the grain interests of Cincinnati give the total value of grain
received in Cincinnati for the year 1913 at $16,000,000,
the shipments at $10,500,000.
The principal States contributing to this supply are
Indiana, Illinois, Minnesota, Ohio, Wisconsin, and
Iowa. Besides these, grain was received from 16
States.
The principal markets for the shipment of grain
are Ohio, West Virginia, Virginia, Kentucky, Alabama, Tennessee, Georgia, Florida, North Carolina,
South Carolina, and Maryland. In addition, five
other States and Cuba purchased grain in this market.
Fruits: Cincinnati is also an important center for
the distribution of fruits. One railroad alone in 1913
brought to Cincinnati from the South 4,946 carloads
of fruits and vegetables to be forwarded to points
beyond.
Live stock: The value of live stock received at Cincinnati in 1913 is estimated at over $39,000,000, the
shipments at $16,700,000.
FEDERAL ADMINISTRATIVE

CENTER.

That Cincinnati is the proper place for the location
of one of the regional banks is further shown by the
fact that it is now and has been for many years an
important Federal administrative center. I t is the
headquarters of the postal operations of a large territory, the headquarters of the fifth division of the
Railway Mail Service, and one of the nine sub treasury
cities.
Post office.—Receipts: The receipts of the Cincinnati post office for the calendar year ending December 31, 1913, were $2,873,000.
Postal employees: Postal employees are paid at
this office to the number of 4,011, as follows: Postoffice employees, 940; inspectors, 35; railway postal
clerks, 504; rural carriers, 2,532.
Rural carriers.—Postal funds: In each State a
center is selected from which to pay the rural mail
carriers of that State and to serve as a depository for
the postal funds. In Ohio, Cincinnati performs these
functions. As the depository for postal funds for the
entire State, there were issued for the fiscal year




a

to

r
o

a
>

H
O
%

o

§
w

a
§
tel
w

H
B
o
H
I
W




CINCINNATI, OHIO.

63

64

LOCATION OF RESERVE DISTRICTS.

ending June 30, 1913, 9,866 certificates of deposit to
other postmasters for a total of $5,116,722.
Money-order funds: Cincinnati serves also as the
depository for money-order funds for southeastern
Indiana, southern Ohio, and eastern Kentucky. Of
such funds there were received during the fiscal year
ending June 30, 1913, $4,594,410.
Railway Mail Service.—Headquarters: Cincinnati
is the headquarters for the administration of the fifth
division of the Railway Mail Service, which includes
the States of Ohio, Indiana, and Kentucky. District
centers in this division are located at Cleveland,
Indianapolis, and Louisville.
Routes: This division administers the following
routes:

Lines centering in Cincinnati: To Pittsburgh, Pa.;
Grafton, W. Va.; Hinton, W. Va.; Knoxville, Tenn.;
Chattanooga, Tenn.; Nashville, Tenn.; Chicago, 111.
(over four different lines); Jackson, Mich.; Detroit,
Mich.; Cleveland, Ohio.
Other large lines directed from Cincinnati headquarters: From Detroit, Mich., and Toledo, Ohio, to
St. Louis, Mo.; Cleveland, Ohio, to St. Louis, Mo.;
Sandusky, Ohio, to Peoria, 111.; Indianapolis, Ind., to
Peoria, 111.; Indianapolis, Ind., to Springfield, 111.;
Benton Harbor, Mich., to Louisville, Ky.; Louisville,
Ky., to Evansville, Ind., and St. Louis, Mo.; Louisville,
Ky., to Fulton, Ky.; Louisville, Ky., to Norton, Va.;
Toledo, Ohio, to Gauley Bridge, W. Va.; Wheeling,
W. Va., to Chicago, 111.; Columbus, Ohio, to Chicago,

HI.; Cleveland, Ohio, to Pittsburgh, Pa.; Salamanca,
N. Y., to Chicago, 111.
Subtreasury.—One of the most striking evidences
of the ability of Cincinnati to serve efficiently the proposed district is afforded by the location here of one
of the nine United States subtreasuries.
Receipts: Notwithstanding the changes in financial
policy, which have tended to the multiplication of depositories for United States funds, the receipts of the
Cincinnati subtreasury for the fiscal year ending June
30, 1913, were $106,739,000. This amount consists of
internal revenue, customs duties, and post office receipts from Ohio, Indiana, Kentucky, West Virginia,
and Tennessee.
Services: Among the most important of the services
rendered by the subtreasury are those connected with

the shipment of silver and minor coins, the transfer of
funds, and the 5 per cent redemption fund.
Coin receipts and shipments: During the fiscal year
1912-13 the Cincinnati subtreasury received and
shipped silver and minor coins as follows:




Month.
July
August
September
November
December
January
February
Masch
April
May
Total

Receipts.

Shipments.

Total.

$434,310
394,640
228,110
252,051
280,410
359,195
607,210
490,975
307,694
265,020
352,019
377,138

$425,865
425,660
499,135
450,110
300,020
374,210
142,730
169,115
259,960
271,075
343,185
264,135

$859,975
820,300
727,245
702,161
580,430
733,505
749,940
660,090
567,654
536,095
695,204
641,273

4,349,652

3,924,220

9,273,872

65

CINCINNATI, OHIO.

These were distributed among the five States of the
proposed district as follows:
Receipts. Shipments.

Total.

District

$4,186,247

$3,897,470

$8,083,717

Ohio
Indiana
West Virginia
Kentuckv
Tennessee

3,327,248
131,479
204,870
352,450
170,200

1,910,100
954,530
105,570
662,020
265,250

5,237,348
1,086,009
310,440
1,014,470
435,450

Coin receipts at subtreasury.

Month.

July
August
September.
October
November.
December..
January...
February..
March
April
May
June

Ohio.

Indiana.

West
Virginia.

Kentucky.

$317,510 523,300 $26,100 $56,400
301,200 13,840 15,000 52,600
180,260 10,150
2,500 35,200
450 11,600 14,300
225,101
224,925 14,240 26,045 15,200
290,695
29,000 31,500
469,550 37,460 21,000 43,200
318,700 12,150 17,025 22,500
256,600
144 11,000 21,450
183,075 13,645 21,600 29,500
261,394
2,900 15,000 16,100
298,238
9,000 14,500
3,200

Ten-

Other.

$1,000 $10,000
12,000

Total.

3,327,248 131,479 204,870 352,450 170,200 162,555

Total

24,000
62,030
1,500
17,200
41,625
6,200

$434,310
394,640
288,110
252,051
280,410
359,195
607,210
491,005
307,694
265,020
352,019
377,138
4,348,802

600
8,000
12,000
58,600
17,000
15,000
46,000

Shipments of coin from the Cincinnati subtreasury.
Month.

Ohio.

Indiana.

West
Virginia.

Kentucky.

Ten-

Other.

apolis, Vincennes; West Virginia—Charleston; Kentucky—Louisville, Lawrenceburg, Covington, Carrollton, Owensboro, Frankfort, Maysville, Danville;
Tennessee—Harriman, Nashville. Over $627,000 were
transferred from Richmond, Va.
Five per cent redemption fund: The subtreasury received the following deposits from banks in Ohio,
Indiana, West Virginia, Kentucky, and Tennessee for
the 5 per cent redemption fund:
July
August
September.
October
November
December
January

$971,147
732,948
545,410
706,975
572,167
999, 344
889, 939

February
March
April
May
June
Total

$1,086,538
349,270
275, 650
308,000
...
178, 748
7, 616,136

In addition, deposits to the fund amounting to
$1,874,000 were received from banks in the following
14 States: Illinois, Louisiana, Mississippi, Alabama,
Georgia, Florida, Virginia, Maryland, New Jersey
Pennsylvania, New York, Connecticut, Massachusetts,
and Maine.
The amounts received from this fund from the several States in the proposed district and the number of
cities and towns whose banks made deposits were:

Total.
Amounts.

July
August
September.
October
November.
December..
January...
February..
March
April
May
June
Total

$273,435
180,515
220,315
170,060
172,110
187,660
88,925
70,051
122,770
129,195
143,750
151,350

$85,895
134,750
141,000
84,180
52,360
80,345
18,740
42,900
51,105
65,860
L08,410
88,985

$9,700 $53,635
11,070 69,875
12,350 81,340
10,150 81,370
7,550 48,900
7,630 76,365
2,850 32,185
6,950 43,120
10,050 48,335
7,400 47,820
6,250 73,475
13,600
5,600

$2,900
28,350
39,930
98,000
12,500
17,910
30
4,030
26,400
20,300
10,300
4,600

1,910,100 954,530 105,570 662,020 265,250

$100

1,100

4,200
6,350
6,600
4,400

2,100
1,300
500
1,000
26,750

$425,665
425,660
499,135
450,110
300,020
374,310
142,730
169,115
259,960
271,075
343,185
264,135

July
August
September
October
November
December
January.
February
March
April
May
June

$213, 570, 409
171, 329, 282
164,189,430
132,999,430
91,024,420
150, 832,076
120,688,713
90, 290, 996
78,066, 822
144,135, 855
154,419,822
144,501,459

Total

1,656,048,635

The principal points from which these transfers
were made are: Ohio—Cincinnati, Columbus, Cleveland; Indiana—Terre Haute, Lawrenceburg, Indian46458°—S. Doc. 485, 63-2




5

District.

$7,616,136

216

Ohio
Indiana
West Virginia
Kentucky

3,477,860
1,103,841
490,073
1,626,267
919,095

92
50
13
48
13

Five per cent redemption fund.

3,924,220

Shipments were also made to points in Alabama,
Georgia, Virginia, and Pennsylvania, and received
from points in Georgia.
Transfer of funds: Funds were transferred to the
subtreasury in 1912-13 as follows:

Cities
and
towns.

Month.

July
August
September
October
November
December
Januarv
February
April
May
June
Total

Ohio.

West
Indiana. Virginia.

$407,452 $190,560
345,317
100,560
234,350
75,150
134,750
296,180
74,580
259, 827
443, 446 193,585
114,228
491,998
570,490
106,130
62,250
153,700
24,700
122, 750
132,850
9,950
18,500
10,398
3,746,860 1,103,841

Kentucky.

Tennessee.

Total.

$197,550
155,421
137,710
182,595
120,010
185,223
137,513
197,125
66,520
74,150
104,900
67,550

$113,548
84,100
70,100
57,400
81,250
119,850
65,550
119,347
47,400
39,550
54,550
66,350

$971,147
732,948
545,410
706,975
572,167
999,344
889,939
1,086,538
349,270
275,650
308,000
178,748

490,073 1,626,267

919,095

7,616,136

$61,937
47,550
28,100
36,050
36,500
57,240
80,650
93,446
12,400
14,500
5,750
15,950

SENTIMENT FOR CINCINNATI.

•

The committee planned to ascertain the sentiment
of the banks of the proposed district as to their preference in the selection of a regional bank city and
began to do so. The attempt was abandoned, however, upon learning that the organization committee
was securing such data.
The sentiment of the proposed district, so far as it
has been ascertained, is in a marked degree favorable
to the location of a regional bank in Cincinnati.

66

LOCATION OF RESERVE DISTRICTS.

I t is believed that the replies to the inquiries of the
organization committee submitted by the banks of
the five States mentioned, when combined, will substantiate the opinion that Cincinnati occupies the
leading place in their choice of a regional bank center.

INDUSTRIAL

STATISTICS—Continued.

AGRICULTURAL—Continued.

Pounds. Value.

U n i t e d States
District
Per cent of U n i t e d States

APPENDIX.

Fowls.

Eggs.

Wool.

Dozen.

Number.

Value.

Value.

289,419 $65,472 1,591,311 $306,698 488,468 $202,506
36,664
53,571 88,705
287,159
35,066 10,562
18.2
18.1
17.5
16.1
18.0
12.1

I N D U S T R I A L STATISTICS.

Ohio
Indiana
W e s t Virginia
Kentucky
Tennessee

AGRICULTURAL.
[Expressed in thousands.]
Total
population.

Ohio
Indiana
W e s t Virginia
Kentucky
Tennessee

91,972
13,161
14.3

Acres miimproved.

U n i t e d States
District
P e r c e n t of U n i t e d States

Per cent
of land
in farms.

6,361
1,088
17.1

878,798
97,660
11.1

46.2
83.6

272
215
96
259
246

24,105
21,299
10,026
22,189
20,041

92.5
92.3
65.2
86.3
75.1

Per
cent.

54.4 $40,991,449
5,412,884
68.5
13.2
79.8
79.5
55.1
64.7
54.3

19,227
16,931
5,521
14,354
10,890

V a l u e of
farm
Value of
improvem e n t s a n d live stock.
machinery.

V a l u e of
farm
buildings.

U n i t e d States
$6,325,451
District
952,651
Per c e n t of U n i t e d S t a t e s . .
15.0
Ohio
Indiana
W e s t Virginia
Kentucky
Tennessee

U n i t e d States
District
Per cent of U n i t e d States.
.

138.1
89.9

$6,444
4,975

51,210
40,999
7,011
20,851
21,292

197,332
173,860
43,336
117,486
110,706

88.6
98.8
103.7
85,6
81.5

6,994
8,396
3,255
2,986
2,490

Per
cent of
operators.

Cattle.




Ohio
Indiana
W e s t Virginia
Kentucky
Tennessee

19,749
15,287
3,672
7,605
7,258

23,433
23,067
5,543
19,247
17,415

Wheat.

Corn.

$657,657
83,128
12.6

82,327 ~ 30,663
98,438
33,935
11,907
2,575
50,449
8,739
45,819
6,516

31,113
33,593
2,697
8,812
6,913

Potatoes.

Hay.

Oats.
Value.

Tons.

Value.

1,007,142 $414,697
U n i t e d States
117,052
46,646
District
11.6
11.2
Per c e n t of U n i t e d States .

97,453
10,004
10.3

$824,005
97,657
11.9

23,212
18,928
812
1,216
2,378

4,521
2,880
639
957
1,007

42,357
24,883
7,493
10,306
12,618

Bushels.

Ohio
Indiana
W e s t Virginia
Kentucky
Tennessee

57,591
50,607
1,728
2,406
4,720

Value of
other
vegetables.
United States
District
P e r c e n t of U n i t e d S t a t e s .

W e s t Virginia
Kentucky

Value.

683,379
82,428
12.0

$1,438,554
288,940
20.1

157,513
195,496
17,119
83,348
67,682

230,338
204,210
40,375
138,973
120,706

Bushels.

Value.

Bushels.

10,988
10,726
2,239
6,937
5,774

Tobacco.

Bushels. Value.
389,195 $166,424
19,987
41,356
10.6
12.0
20,332
8,905
4,077
5,120
2,922

9,378
3,816
2,279
2,724
1,790

Orchard f r u i t s .
Value.

Pounds.

Value.

Bushels.

$216,257
38,715
17.9

1,055,764
591,585
56.0

$104,303
68,598
65.8

216,084
32,068
14.8

$140,867
20,407
14.4

11,394
7, 498
4,520
8,287
7,016

88,603
21,387
14,356
398,482
68,757

8,999
2,145
1,923
39,869
5,662

6,711
4,714
4,710
9,448
6,485

5,692
3,709
3,040
4,507
3,459

Horses, mules, etc.
MINING.

Number.

Value.

3,948
731
18.5

62.1
67.1

61,803
5,816
9.4

$1,499,523
153,035
10.2

192
148
75
170
144

70.6
68.9
78.6
67.2
58.6

1,837
1,363
620
1,000
996

Number.

51,403
39,110
15,860
25,971
20,691

Number.

Ohio
Indiana
West Virginia
Kentucky
Tennessee

Average
value of
all f a r m
property
per farm.

$4,925,173
642,720
13.0

Swine.

U n i t e d States
District
Per cent of U n i t e d States

Average
acres
per
farm.

1,285,894
1,328,196
207,075
484,464
371,415

100,889
80,755
19,159
44,313
42,043

$5,487,161 2,552,189
U n i t e d States
521,158
734,602
District
20.4
13.4
Per cent of U n i t e d S t a t e s . .

$28,475,674
3,677,044
12.9

$1,265,149
141,363
11.1

368,257
266,979
57,315
150,994
109,106

Owners.

1,902,694
1,809,135
314,738
773,797
612,520

6,749
1,535
840
974
466

V a l u e of
all f a r m
crops.

Value of
Value of
farm prop- f a r m land.
erty.

P e r cent
improved.

478,451
66,923
13.9

Ohio
Indiana
W e s t Virginia
Kentucky
Tennessee

Ohio
Indiana
\*|est Virginia
Kentucky
Tennessee

Acres in
farms.

44.1
57.6
81.3
75.7
79.8

2,101
1,557
992
1,734
1,743

Number of
farms.

53.7
61.8

49,348
8,127
16.5

4,767
2,700
1,221
2,289
2,184

U n i t e d States
District
P e r c e n t of U n i t e d States.

Rural
population.

21,685
5,360
2,719
3,448
1,854

Value.

24,148 $2,622,180
3,326
366,324
13.8
13.9
933
897
191
672
633

101,748
97,087
19,948
72,046
75,495

Sheep.

[Expressed in thousands, except cubic feet of n a t u r a l gas in millions.]

Capital.
U n i t e d States

Value.

Value.

58,185
9,924
17.0

$399,338
61,518
15.4

52,447
8,313
15.8

$232,841
32,831
14.1

$596,413
70,306
11.8

3,105
3,613
328
1,491
1,387

19,412
23,739
2,087
8,951
7,329

3,909
1,336
910
1,363
795

14,941
5,908
3,400
5,573
3,009

30,869
16,666
5,000
9,056
8,715

B i t u m i n o u s coal.
Tons.

|

$3,380,525

$1,238,410

501,164
14.9

186,782
15.1

124,933
30.8

121,635
27.0

Ohio
Indiana
W e s t Virginia
Kentucky
Tennessee

161,325
59, 765
219,467
26,787
33,820

63,767
21,934
76,288
12,100
12,693

30,760
14,201
59,832
13, 707
6,433

31,810
15,327
53,671
13,617
7,210

N a t u r a l gas.
Cubic feet.

Value.

405,757 |

Value.

District
Per cent of U n i t e d States

Value of
dairy
products.

Number.

Total products.

$451,177

Petroleum.
Barrels.

Value.

U n i t e d States

508,364

$74,128

220,449

$134,045

District
Per cent of U n i t e d States

262,204
50.1

49,419
66.7

20,779
9.4

23,805
17.8

Ohio
Indiana
W e s t Virginia
Kentucky
Tennessee...

49,450
4,365
207,113
1,275
1

9,367
1,192
28,452
408

8,817
1,695
9,795
472

9,480
1,229
12,767
329

i

67

CINCINNATI, OHIO.
INDUSTRIAL S T A T I S T I C S — C o n t i n u e d .
INDUSTRIAL S T A T I S T I C S — C o n t i n u e d .
VALUE OF PRODUCTS-Continued.
MANUFACTURES.

Wage
earners.

Primary
horsepower.

United States
District
Per cent of United States

7,678,578
979,462
12.8

6,615,046
837,051
12.7

18,675,376
2,906,529
15.5

$18,428,270
2,301,076
12.5

Ohio
Indiana
West Virginia
Kentucky
Tennessee

523,004
218,263
71,463
79,060
87,672

446,934
186,984
63,893
65,400
73,840

1,583,155
633,377
217,496
230,224
242,277

1,300,733
508,717
150.923
172,779
167.924

Persons
engaged.

268,491
35,068
13.1
15,138
7,969
2,586
4,766
4,609

Wages
(thousands).

Value of
products
(thousands).

Materials
(thousands).

United States
$3,427,038 $12,142,791 $20,672,052
1,467,250
District
430,101
2,582,932
12.0
Per cent of United States
12.6
12.5
Ohio
Indiana
West Virginia
Kentucky
Tennessee

245,450
95,511
33,000
27,888
28,252

Leather
Marble
Paint
tanned, Liquors, Liquors, Lumber
and
and timber stone
disand
curried,
malt.
tilled. products. work. varnish.
etc.

Capital
(thousands).

Establishments.

824,202
334,375
92,878
111,779
104,016

United S t a t e s . . .
$327,874 $374,730 $204,699 $1,156,129 $113,093
District
42,909
90,237
31,661
138,328
12,493
Per ct. of United States
11.4
44.0
11.9
9.6
11.0
Ohio
Indiana
West Virginia
Kentucky
Tennessee.

Value
Increase added b y
i n value manufacof prodtures
ucts, 1904
(thouto 1909.
sands).
Per cent.
39.7 $8,529,261
1,115,682
47.5
13.1

1,437,936
579,075
161,950
223,754
180,217

49.7
47.0
63.5
40.1
30.6

613,734
244,700
69,072
111,975
76,201

10,128
2,311
12,451
4,241
2,530

Paper
and
wood
pulp.

25,332
8,313
2,271
4,949
2,044

12,011
31,610
44,360
2,256

34,597
23,135
28,758
21,381
30,457

Patent
medicine
ubbe
andcom- Print- Rgoods r
pounds ing and not elseand
pubwhere
drug
lishing. specified.
preparations.

3,847
5,756
365
1,060
1,465

Soap.

United States
$267,657 $141,942 $737,876 $128,436 $111,358
District
17,133
24,819
71,632
58,224
18,112
Per cent of United States.
12.0
9.7
9.2
45.3
16.2
Ohio
West Virginia
Kentucky

16,965
5,202
2,652

5,859
4,344
1,292
2,123
3,515

41,657
14,356
1,992
6,454
7,173

53,811
4,313

$124,889
17,084
13.7
13,617
1,108
' i *9 62
397

Tobacco.

$416,695
51,660
12.4

17,077
813

18,598
222

PACKAGE CAR R O U T E S AND " B R E A K - B U L K " POINTS.

VALUE OF PRODUCTS.

PENNSYLVANIA RAILROAD.

[Expressed i n thousands.]

[Average n u m b e r daily, 70.]
Cars, etc.
AgriCar(steam
cultural Automo- Bread. Canning. riages, railroad
implebiles.
etc.
comments.
panies).
$146,329 $249,202 $396,865 $157,101 $159,893
United States
16,086
29,114
62,603
40,916
52,460
District
10.2
19.9
25.1
10.3
32.8
Per cent of United States.
Ohio
Indiana
West Virginia
Kentucky
Tennessee.

14,440
13,670

38,839
23,764

1,004

23,007
10,209
1,470
3,338
2,892

4,660
8,758
605
1,857
206

21,949
21,655
675
5,141
3,040

$405,601
65,863
16.2
28,690
17,128
6,733
6,535
6,777

Cars,
steam
Coffee
Copper,
railroad
and
ElecFlour
tin, and
(not
spice,
trical mill and
u n d e r roasting Confec- sheetmagrist mill
iron
operationery.
and
prod- chinery, prodtion of
grindetc.
ucts.
ucts.
railroad
ing.
companies).
United States
$123,730 $110,533 $134,796 $199,824 $221,309
30,472
26,724
14,886
17,632
15,949
District
-.
12.7
15.2
16.0
11.0
12.9
Per cent of United States.
Ohio
Indiana
West Virginia
Kentucky
Tennessee..

6,451
9,498

11,224
1,846
113
3,003
1,444

7,307
2,558
244
2,257
2,520

19,086
5,763
2,151
2,243
1,229

18,777
7,718
229

$883,584
147,765
16.7
48,093
40,541
7,696
22,365
29,070

Iron and
F o u n d r y F u r n i - Iron and steel,
steel
and
Food
ture a n d steel,
works Leather
prepara- machine refriger- blast
goods.
and
tions.
shop
furnaces. rolling
products. ators.
mills.
United States
\£125,331 \a,228,475 $239,887 $391,429 $985,723
207,890
88,352 266,646
40,660
16,423
District
27.0
16.9
22.5
16.9
13.1
Per ct. of United States.

$104,719
13,329
12.7

197,780
38,652
22,435
7,779

4,939
3,406
472
2,373
2,139

Ohio
Indiana.
West Virginia.
Kentucky
Tennessee

10,837
795
1,445
3,346




145,837~
39,844
3,392
9,627
9,190

16,259*
18,456
965
1,671
3,309

83,699

4,653

28,907
4,155

East End.
Piers 4 and 5, N. R.,New York.
Xenia, Ohio.
Pier 28, N. R., New York.
Pendleton Shops, Ohio.
Waverly Transfer, N. Y.
Carrell Station.
Philadelphia, Pa.
Rendcomb Junction, Ohio.
Wilkes-Barre, Pa.
Hamilton, Ohio.
Buffalo, N. Y.
Eaton, Ohio.
Pittsburgh Transfer, Pa.
Richmond, Ind.
Anderson, Ind.
Newark, Ohio.
Elwood, Ind.
Cleveland, Ohio.
Kokomo, Ind.
Akron, Ohio.
Logansport, Ind.
Pittsburgh, Pa.
Chicago, 111.
Columbus Transfer.
Indianapolis, Ind.
Zanesville, Ohio.
Terre Haute, Ind.
Lancaster, Ohio.
East St. Louis, 111.
Washington C. H., Ohio.
Fort Wayne, Ind.
Hicks, Ohio.
Grand Rapids, Mich.
Dayton, Ohio.
Springfield, Ohio.
Smith Street Station.
Pendleton Shops, Ohio.
Piers 4 and 5, N. R., New York
Carrell Station.
Pier 28, N. R., New York.
Rendcomb Junction, Ohio.
Philadelphia, Pa.
Hamilton, Ohio.
Buffalo, N. Y.
Eaton, Ohio.
Pittsburgh Transfer, Pa.
Richmond, Ind.
Newark, Ohio.
Anderson, Ind.
Cleveland, Ohio.
Elwood, Ind.
Akron, Ohio.
Komomo, Ind.
Pittsburgh, Pa.
Logansport, Ind.
Columbus Transfer, Ohio.
Chicago, 111.
Zanesville, Ohio.
Indianapolis, Ind.
Lancaster, Ohio.
Terre Haute, Ind.
Washington C. H., Ohio.
East St. Louis, 111.
Hicks, Ohio.
Fort Wayne, Ind.
Dayton, Ohio.
Grand Rapids, Mich.
Springfield, Ohio.
Xenia, Ohio.

68

LOCATION OF RESERVE DISTRICTS.
BIG FOUR. ROUTE.

[Daily package cars from Cincinnati. Average number daily, 100.]

Central Avenue.
Elmwood Place, Ohio.
Lockland, Ohio.
Carthage to Lockland.
Sharon to Cold Springs.
Middle town, Ohio.
Miamsburg, Ohio.
Franklin, Ohio.
Dayton, Ohio.
Springfield, Ohio.
Springfield Transfer, Ohio.
Beliefontaine, Ohio.
Toledo, Ohio.
Junction Yards, Mich, (via Toledo M. C.)
Detroit, Mich.
Columbus, Ohio (points between Columbus and Delaware).
Cleveland, Ohio.
Galion, Ohio.
L. S. & M. S. Pier House, Cleveland.
Buffalo, N. Y.
L. V. Ry. Transfer, E. Buffalo,
N. Y.
Rochester, N. Y., and territory.
East Buffalo, N. Y. (via L. S. &
M. S. to Syracuse).
IJtica, N. Y., and North.
Syracuse, N. Y. (via Lake
Shore).
West Albany Transfer, N. Y.
St. Johns Park, N. Y. (deliveries below Fourteenth Street,
N. Y.)
Rotterdam Junction, N. Y..
Whitewater Park to Hagerstown.
Harrison, Ohio.
Brookville, Ind.
Brighton
Middletown, Ohio, and points to
W. Carrollton.
Dayton, Ohio, and points to west
end.
Springfield Transfer, Ohio.
Cleveland, Ohio.
Erie, Pa., and beyond (including Buffalo).
East Buffalo, N. Y., and points
east.
West Albany Transfer, N. Y.
East St. Louis.

Lawrenceburg to Aurora, Ind.
Sunman, Ind.
Batesville, Ind.
Greensburg, Ind., and Mich.
Div. So.
Sandusky, Ind., to Anderson.
Marion, Ind., to Elkhart.
Elkhart, Ind. (all points north of
Goshen).
Ewington to Columbus, Ind.
Adams to Prescott and F. F. &
M. Branch.
Shelbyville, Ind.
Indianapolis, Ind.
Lafayette, Ind.
C. & N. W., Wood Street, Chicago.
Chicago, 111.
C. M. & St. P., Galewood Station, Chicago.
Fordham Transfer, 111.
Danville, 111., and points to
Gillum.
Bloomington, 111., and points to
Pekin.
Peoria, 111.
Peoria, C. B. & Q. House.
Minneapolis, Minn, (via Peoria
and Iowa Cent.)
St. Paul, Minn. (G. & N. Ry. &
N. P. points).
Kansas City, Mo. (via Peoria and
Iowa Cent.).
Terre Haute, Ind., and stations
to Vermillion.
East St. Louis, III.
St. Louis, Mo. (Mo. Pac., Seventh Street House).
S. S. W. House.
Station.
Toledo, Ohio, and beyond.
Detroit, Mich.* and beyond.
Greensburg, Ind. (Chic. Div. to
Fairland).
Mich. Div. No. (Vernon to Benton Harbor).
F. F. M. Branch and C. H . & G.
Branch.
Indianapolis, Ind.
Chicago, 111.
Chicago (C. & N. W., Wood
Street Station).

Wood Street Station.
Cleveland, Ohio.
Springfield, Ohio.
Buffalo, N. Y.
East Buffalo, N. Y.
Harrison to Hagerstown.
Connersville, Ind.
Lawrenceburg to Aurora.




Delhi to Greensburg.
Ewington to Columbus, Ind.
Sandusky to Benton Harbor.
Indianapolis, Ind.
East St. Louis, 111.
Peoria, 111.
Chicago, 111.

Front Street,
Springfield, Ohio.
Cleveland, Ohio.
Buffalo, N. Y.
East Buffalo, N. Y.
Harrison to Hagerstown.

Cincinnati.
Connersville, Ind.
Lawrenceburg to Aurora, Ind.
Chicago, 111.
Indianapolis, Ind.
Sandusky, Ind., to Benton Harbor.

BALTIMORE «C OHIO S O U T H W E S T E R N
F

RAILROAD.

[Daily package cars from Cincinnati. Average number daily, 120J

Aurora, Ind.
Akron, Ohio.
Athens, Ohio.
Baltimore, Md. (Camden Station).
Benwood, W. Ya. (Fairmount,
W. Ya., way).
Blanch ester, Ohio.
Brownstown, Ind. (Washington
way).
Brunswick, Md.
Chicago, 111. (Monon Route).
Chicago Junction, Ohio.
Chillicothe, Ohio.
Clarksburg, W. Ya.
Columbus, Ohio.
Connellsville, Pa.
Cumminsville (E. N o r w o o d
way).
Dennison, Tex. (M. K. & T.
solid).
Dillsboro, Ind.
Dundas, Ohio, and Hocking Valley Pgh.
East St. Louis, 111.
Evans ville, Iud. (E. & T. H.).
Flora, 111. (East St. Louis way).
Greenfield, Ohio.
Hamden, Ohio (Portsmouth,
Ohio, way).
Kansas City, Mo. (Mo. Pac.).
Lawrenceburg, Ind.
Louisville, Ky.
Louisville, Ky. (I. C. Depot).
Loveland, Ohio.
Madisonville, Ohio.
Marietta, Ohio.
Martinsville-Musselman way.
Memphis, Tenn. (I. C. R. Ii.).
Memphis Junction (I. C. R. R.).
Midland City, Ohio (Columbus
way).
Mitchell, Ind.

New Albany, Ind.
New Albany, Ind. (Sou. Ry.
Depot).
Newark, Ohio.
New Orleans, La. (I. C.).
New York, N. Y. (pier).
North Vernon, Ind. (Watson
way).
Norwood, Ohio.
Olney, 111.
Osgood, Ind.
Odin, 111.
Paducah, Ky. (I. C. R. R.).
Parkersburg, W. Va.
Philadelphia, Pa.
Pittsburg, Pa.
Portsmouth, Ohio.
Rutherford Transfer (Pa. C.
S. D.).
St. Louis, Mo. (I. M. Depot).
St. Louis, Mo. (R. I . Depot).
Sedamsville-Fleming, Ind.,way.
Seymour, Ind.
Springfield, 111.
Thrifton, Ohio.
Vincennes, Ind.
ViiLcennes, Ind.(for E. & T. H.)
Washington, Ind.
Washington C. H., Ohio.
Wheeling, W. Va.
Wilmington, Ohio.
Zanesville, Ohio.
Jackson, Tenn.
Charleston, W. Va.
Grafton, W. Va.
Jackson, Ohio.
Oakley-Blau Chester way.
Wellston, Ohio.
Westboro-Hillsboro way.
Bridgeport, 111.
Milan, Ind.
Seymour C. T. H. & S. E.
Wheatland-Clay City way.

Baltimore & Ohio (.Brighton Station).
Brunswick, Md.
Chicago, 111.
Chicago Junction, Ohio.
Chillicothe, Ohio.
Columbus, Ohio.
Cumminsville way.
East St. Louis, 111.
Flora, 111.

Louisville, Ky. (I. C. Depot).
New York, N. Y.
Parkersburg, W. Va.
Pittsburg, Pa.
Rutherford, N. J.
Seymour way.
Mo. Pac. House, St. Louis, Mo.
Louisville, Ky.

69

CINCINNATI, OHIO.
CINCINNATI, HAMILTON & DAYTON RAILROAD CO.

[Daily package cars from Cincinnati. Average number daily, 60.]

Buffalo, N. Y.
Carthage, Ohio.
Chicago, 111.
C., H. & I., Indianapolis way.
College Corner, Ohio.
Connersville, Ohio.
Dayton, Ohio.
Dayton north way.
Decatur, 111.
Delphos (div.).
Detroit, Mich, (via Shore Line,
P. M., M. C., Junction Yards
for M. C., and Ottawa Yards
for P. M.).
East Buffalo, N. Y. (D., L. &
W. Depot).
Elmwood Place, Ohio.
Fort Wayne, Ind.
Glendale, Ohio.
Hamilton, Ohio.
Hartwell, Ohio (Stockton Station, Jones way).
Indianapolis, Ind.

Indianapolis, Ind. (West Street
House).
•
Ivorydale, Ohio.
Liberty, Ind.
Lima, Ohio.
Lima north way.
Lockland, Ohio.
Miamisburg and way.
Middle town, Ohio.
Oxford, Ohio.
Piqua, Ohio.
Rush ville, Ind.
Sidney, Ohio.
Toledo, Ohio.
Troy, Ohio.
Wellston, Ohio (div. way).
Win ton Place, Ohio.
Forest Hill, Ohio.
Chicago (B. & 0.).
Louisville (B. & 0.).
Seymour (B. & 0.).
East St. Louis (B. & O.).

Brighton Station.
Hamilton, Ohio.
Dayton, Ohio.
Toledo, Ohio.
Indianapolis, Ind.
Chicago, 111. (via C., I. & L.).
Columbus Transfer (via P., C.,
C. & St. L.).

Buffalo Junction, N. Y. (via
N. Y., C. <fc St. L.).
Detroit, Mich, (via M. C.).
Marion Transfer, Ohio (via
Erie).

[Daily package cars from Cincinnati. Average number daily, 46.]




NEW

ORLEANS

& TEXAS PACIFIC

[Daily package cars from Cincinnati.

Algiers Transfer, La.
New Orleans, La.
Los Angeles, Cal.
Houston, Tex.
Meridian, Miss.
Vicksburg, Miss.
Hattiesburg, Miss.
Shreveport, La.
Mobile, Ala.
Birmingham, Ala.
Selma, Ala.
Chattanooga, Tenn.
Central of Georgia House.
W. & A. House.
T. A. & G. House.
Sou. Ry. Transfer.
Rome, Ga.
Atlanta, Ga.
Inman Yards Transfer, Ga.
Macon, Ga.
Jacksonville, Fla.
Montgomery, Ala.
Bristol, Tenn.
Knoxville, Tenn.
Spencer Transfer, Ga.
Columbia, S. C.
Asheville, N. C.
Savannah, Ga.

RAILROAD.

Average n u m b e r daily, 64.]

Augusta, Ga.
Charlotte, N. C.
Spartanburg, S. C.
Nashville, Tenn.
Kentucky, third district.
Kentucky, second district.
Lexington, Ky.
Somerset, Ky.
Dayton, Tenn.
Rockwood, Tenn.
Harriman, Tenn.
Dry Ridge, Ky.
Erlanger, Ky.
Williamstown, Ky.
Sadieville to Greendale.
Midway to Lawrenceburg.
Georgetown, Ky.
Burnside, Ky.
Crittendon, Ky.
Mason to Corinth.
F. & C.
Ludlow, Ky.
Moreland, Ky.
McKinney, Ky.
Nicholasville, Ky.
Danville, Ky.
Kentucky, fourth district.

LOUISVILLE & NASHVILLE RAILROAD CO.

Paily package cars from Cincinnati. Average number daily, 107.]

CHESAPEAKE <fc OHIO RAILROAD CO.

Newport News, Va., for eastern
cities.
Norfolk, Va., proper, and beyond.
Richmond, Va., proper, and
Carolina points (C. L. Depot).
Lynchburg, Va., proper, and
Carolina points.
Clifton Forge, Va., and east.
Charlottesville, Va., and east.
Ronceverte, W. Va., proper,
and points on Greenbrier
Division.
Hinton, W. Va.
Charleston, W. Va.
Huntington, W. Va.
Catlettsburg, Ky.
Ashland, Ky.
Mount Sterling, Ky.
South Portsmouth, Ky., proper,
and Portsmouth, Ohio.
Maysville, Ky.
Augusta, Ky.
Brooksville, Ky., points via
Wellsburg.

CINCINNATI,

Points on the Virginian Ry.
Staunton, Va., and east.
Talcott to Low Moor.
Handley to Sand Stone.
Guyandot to Pt. Creek Junction.
Piney Creek Branch, W. Va.
Guyandot Valley Dist., W. Va.
Savage Branch to Theelka.
Painstville to Elkhom City.
Straight Creek to Ewington.
Lloyd to Russell.
Springdale to Garrison.
Bellevue to Brashear, Ky.
Greenup and Riverton, Ky.
Manchester and Vanceburg, Ky.
Loup Creek Branch.
White Oak Branch.
Thurmond, W. Va.
Montgomery, W. Va., proper.
Cabin Creek Branches.
St. Albans, W. Va., proper.
Coal River, Ky.
Newport, Ky.
Covington, Ky.

East End Freight Depot.
Atlanta, Ga.
Birmingham, Ala.
Birmingham, Ala., for S. & M.
Ala. Div.
Bristol, Tenn.
Chattanooga, Tenn.
Carrollton, Ky.
Cincinnati (Div.)
Cumberland Valley Division.
Frankfort, Ky.
Guthrie, Ky.
Jacksonville, Fla.
Johnson City, Tenn., for C. C.
& 0 . points.
Juntal, Ga.
Knoxville, Tenn.
Knoxville, Tenn., and South.
Little Rock, Ark.
Louisville, Ky.
Ninth and Broadway.
Water Street.
For beyond.
L. H. & St. L. depot.
Shelby Branch, Bloomfield
Branch.
Lexington, Ky.
Lexington Branch.

Lebanon Branch (Smiths Switch
to Lebanon and Greensburg
Branch).
Livingston, Ky.
Mobile, Ala.
Memphis, Tenn.
Montgomery, Ala.
Macon, Ala.
Mobile, Ala. (New OrJeans &
Mobile Div.).
Montgomery, Ala. (Mobile &
Montgomery Div.).
Paris, Tenn.
Main stem, First Division (South
Louisville to Bowling Green).
Main stem, Second Division
(Scottsville and Hartsville
Branches).
Nashville, Tenn.
Nashville, Tenn., and beyond.
Nashville, Tenn., for N. C. &
St. L. points.
New Orleans, La.
Roanoke, Va.
Savannah, Ga.
Pensacola, Fla.

70

LOCATION OF RESERVE

West End Freight Depot.
Atlanta, Ga.
Birmingham, Ala.
Birmingham, Ala. (S. & M. Ala.
Div.).
Chattanooga, Tenn.
Berry, Ky.
Butler, Ky.
Carlisle, Ky.
Cythiana, Ky.
Cumberland Valley Division
(Grays to Excelsior, Middlesboro to Norton).
Cor bine, Ky.
Elizabeth, Ky.
Falmouth, Ky.
Jacksonville, Fla.
Jellico, Tenn.
Johnson, Ky.
Knoxville, Tenn.
Knoxville, Tenn.
A. & B. Air Line Ry.
Woodbine to Willoughby.
Kentucky Division.
Maysville Branch.
Richmond Branch.
Bedford to Lily.
Decoursey to Talbot.
Louisville, Ky.

ERIE

Louisville, Ky.
Water Street.
L. H . & St. L. House.
Ninth and Broadway.
Lexington, Ky.
Macon, Ga.
Memphis, Tenn.
Memphis, Tenn. (Clarksville to
Springdale).
Montgomery, Ala.
Montgomery, Ala., Transfer.
Mobile, Ala.
Mobile, Ala. (New Orleans &
Mobile Div.).
Nashville, Tenn.
Nashville, Tenn., Transfer.
Nashville, Tenn. (N. C. & St. L.
House).
New Orleans, La.
Paris, Ky.
Richmond, Ky.
Richmond, Ky. (L. & A. points).
Roanoka, Va.
Savannah, Ga.
Winchester, Ky.
L. & E . Ry.
Winchester and West.
Mistletoe to Jackson.
Haddix to McRoberts.

RAILROAD.

[Daily package cars from Cincinnati. Average number daily, 9.]

Mansfield, Ohio.
Marion Transfer, Ohio.
Urbana, Ohio.
Binghamton, N. Y.

Salamanca, N. Y.
Bergen Transfer.
New York proper.
Youngstown, Ohio.
Akron, Ohio.

N O R F O L K <E W E S T E R N
F

RAILROAD.

[Daily package cars from Cincinnati. Average daily, number 23.]

New York.
Bluefield, W. Va.
Lynchburg, Va.
Roanoke, Va.
Ironton, Ohio.

Portsmouth, Ohio.
Hillsboro, Ohio.
Sardinia, Ohio.
Williamson.

CHESAPEAKE

& O H I O OF I N D I A N A .

[Daily package cars from Cincinnati. Average number daily, 9.]

Richmond, Ind.
Chicago, 111.
C., M. & St. P. (Gatewood).

Marion, Ind.
Muncie, Ind.
Peru, Ind.

CINCINNATI N O R T H E R N

RAILWAY.

[Daily ^package cars from Cincinnati.]

DISTRICTS.
CINCINNATI'S DISTRICT T R A D E

Cities.
Northwest—total
Bradner
Findlay
North Baltimore
Toledo
West-central—total..
Bellefontaine
Celina
Kenton
Lima
Piqua
Sidney
Springfield
Troy
Urbana
Van Wert
Southwest—total
Batavia
Dayton
Eaton
Feesburg
Felicity
Georgetown
Germantown
Hamilton
Loveland
Martinsville
Miamisburg
Middletown
Oxford
Reading
Ripley
Silverton
Williamsburg
Wilmington
Xenia
North-central—total.
Ashland
Bucyrus
Elyria
Fostoria
Lorain
Mansfield
Oakh arbor
Sandusky
Tiffin
Central—total
Bremen
Columbus

c.

Greenville, Ohio.
Jackson, Mich.

L. & N . R .

R.

[Daily package cars from Cincinnati. Average number daily, 6.]

Middletown.




Dayton.

Cities.

Amount.
$721

7
48
3
663
1,403
70
2
6
401
161
3
558
72
76
54
3,005

1

1,915
10

1
1
1

20

550
2
5

1

278
2
4

1

4
4
83
125
510
12
45
81
32
92
123
6
77
42
1,333

1

Central—Continued.
Delaware
Lancaster
London
Marion
Marys ville
Mount Vernon
Newark
South-central—total
Chillicothe
Circleville
Hillsboro
Ironton
Jackson
Leesburg
Manchester
Peebles
Portsmouth
Proctorville
Sugar Tree Ridge
Washington C o u r t house
Wellston
Winchester
Northeast—total
Akron
Alliance
Ashtabula
Canton
Cleveland
East Liverpool
Lisbon
Massillon
Warren
Youngstown
East-central—total
Barnesville
Bellaire
Cambridge
Coshocton
Steubenville
Zanesville
Southeast—total
Athens
Caldwell
Gallipolis
Marietta

936

INDIANA.
Northwest—total
East Chicago
Gary
Hammond
Indiana Harbor..
Laporte
Logansport
Michigan City
Mishawaka
South Bend
Whiting
West-central—total..
Attica
Brazil
Cayuga
Centerpoint
Crawfordsville...
Frankfort
Lafayette
Pine Village
Poland
Terre Haute
Southwest—total
Bloomington.
Evans ville
Grand View
Rockport
Tell City
Vincennes
Washington
Northeast—total
Elkhart
Fort Wayne

Central Avenue.
Lewisburg to Ohio City, Ohio.
Van Wert to Lynnetts, Ind.
Carlisle to W. Alexandria, Ohio.

RELATIONS.

OHIO.
[Expressed in thousands.]

Northeast—total—Contd. %
Goshen
Huntington
Peru
Wabash
East-central—total
Anderson
Connersville
Elwood
Indianapolis
Kokomo
Marion
Muncie
Newcastle
Portland
Richmond
Shelby ville
Union City
Winchester
Southeast—total
Aurora
Austin
Columbus
Crothersville
Greensburg
Jeffersonville
Lawrenceburg
Madison
New Albany
North Vernon
Seymour
Vevajr
Wilmington
WEST VIRGINIA.

North-total
Clarksburg
Elkins
Fairmont
Grafton
Morgantown
Moundsville
New Martinsville
Parkersburg
Point Pleasant...
Wheeling

South—total
Beury
Bluefield
Charleston
Huntington..
Montgomery.
St. Albans/...
Welch
Williamson...
East—total
Martinsburg..
i Less than $500.

Amount.

71

C I N C I N N A T I , OHIO.
CINCINNATI'S DISTRICT T R A D E

DISTRIBUTION OF PACKAGE-CAR SHIPMENTS—Continued.

RELATIONS—Continued.

INDIANA.

KENTUCKY.
Cities.

Amount.

Southwest—total
Paducah
West—total
Henderson
Hopkinsville
Madisonville
Owensboro
Princeton
Northwest, central—total...
Elizabethtown
Louisville
Southwest, central—total...
Bowling Green
Northeast, central—total
Carrollton
Covington
Cynthiana
Dry Ridge
Frankfort
Newport
Paris

$160
160

380
116

89
3
171
2

1,141
13
1,229
102
102

2,413

1

793
39
2

442
1,048
88

Cities.
East, central—total
Danville
Lebanon
Lexington
Harrodsburg
Richmond
Winchester
Southeast, central—total
Somerset
Northeast—total
Ashland
Augusta
Carlisle
Catlettsburg
Mays ville
East—total
Pikeville
Prestonburg
Southeast—total
Middlesboro

Amount.
$881

Total package cars for October, 1913
Total pounds shipped, October, 1913
Cities.

1,927
23,704,796

Pounds.

Cities.

Pound

4

18

523
5
167
164
11
11

403
205
7
5
12

175
9
6

3
122
122

Northwest—total...
Logansport
Northeast—total
Elkhart
Fort Wayne
Leesburg
Mitchell
Peru
West-central—total
Crawfordsville.
La Fayette
Terre Haute...
East-central—total
Anderson
Connersville...
Indianapolis...
Liberty
Marion
Muncie
Richmond

East-central—Contd.
Rushville
Shelbyville
Southwest—total
Evansville
Montgomery
Vincennes
Washington
Southeast—total
Batesville
618
Brookville
655
Dillsboro and Milan
>,368
Greensburgand beyond.
319
Lawrenceburg and Au883
rora
1,882
North Vernon
349
New Albany
234
Seymour
9c0
Springfield
5,382
697
697
5,170
482
657
136
546
349
.,293
21

74
290
2,607
757
238
946
666
7,569
927
590
356
1,578
1,591
1,068
385
745
229

TENNESSEE.
WEST VIRGINIA.
Northwest—total
Union City
Southwest—total
Jackson
Memphis
North west-central—total
Clarks ville
Franklin
Lafollette
Lebanon
Murfreesboro
Nashville
South west-central—total
Columbia

0)
0)

996
17
978
649
65
3
20
3
71
488
55
55

1

North east-central—total.
Cookeville
South east-central—total
Chattanooga
Cleveland
Winchester
East—total
Knoxville
Lenoir City
Marysville
Northeast—total
Bristol
Johnson City

20
20

465
429
26
10

C1)

423
409
13

4,328
59,018,302

[Expressed in thousands.]




2,822
229
161

2,432
1,998
31
838
348
312
399
70
6,350
777
5,044
529
6,865
698
228

238
839
343
3,128
246
259
224
663
8,066

6,657
307
895
207
330
25
305

2,834
524
299
1,330
682
7,681

650
2,070

South—Continued.
Deep Water
Hinton
Huntington
Quinnemont
Ronceverte
Thurmond

234
618

2,654
380
597
479

KENTUCKY.

Total package cars for October, 1913
Total pounds shipped October, 1913

Pounds.

617
10,515,212

Total package cars for October, 1913.
Total pounds shipped October, 1913.

OHIO.

Northwest—total
Alvordton
Findlay
Toledo
North-central—total
Berwick
Chicago Junction
Galion
Mansfield
Sandusky
Shelby
Northeast—total
Akron
Cleveland and connections
Youngstown
West-central—total
Bellefontaine
Celina
Greene ville
Lima
Piqua
Springfield
Sidney
Troy
Urbana
Van Wert
Central—total
Columbus
Franklin
Marion
Newark
East-central—total
Valley Junction
ZanesviUe

North—total
Clarksburg...
Grafton
Parkersburg.
Wheeling
South—total
Bluefield
Charleston

Less than $500.

D I S T R I B U T I O N OF P A C K A G E - C A R S H I P M E N T S .

Cities.

Total package cars for October, 1913
Total pounds shipped, October, 1913

Cities.
Southwest—total
Addyston and beyond..
Blanchester
Carthage and beyond...
Clare and beyond
Dayton
*
Georgetown
Germantown
Hamilton
Harrison
Ivorydale and north
Lockland and beyond..
Loveland
„
*
Midland
Miamisburg
Middletown
Norwood and beyond..
Oakley
Sardinia
Shandon
West Carrollton
Xenia
South-central—total
Chillicothe
Dundas
Greenfield
Hills boro
Ironton
Portsmouth
Washington Courthouse
Winchester
Southeast—total
Athens
Grosvenor
Marietta

Pounds.
23,362
839
271
1,706
644
5,436
532
240
3,693
1,572
876
1,158
657
395
284
1,769
676
32
1,116

142
40
1,284
8,053
1,483
482
657
708
320
2,517
1,526
359
1,173
443
426
304

Southwest—total
Paducah
West—total
Guthrie
North west-central—total
Louisville and beyond...
La Grange
Elizabethtown
South west-central—total
Bowling Green
North east-central—total
Carrollton
Covington (east)
Covington (south)
Cynthiana
De Course v
Frankfort
Falmouth
Georgetown
Ludlow (south)
Myall
Newport (south)
Paris
East-central—total
Danville
Lebanon
Lexington

2,504
34,907,035

178
178
275
275
7,090
6,731
141
218

348
348
9,693
228

841
701
792
473
369
503
620
2,047
391
1,263
1,466
8,765
2,353
156
4,097

East-central—total—Contd.
Moberly.
Nicholas ville
Richmond
Winchester
South east-central—total
Burnside
Stanford
Northeast—total
Ashland
Augusta
Carlisle
Catlettsburg
Greenup
Maysville
Mount Sterling
Vanceburg
Wellsburg
East—total
Jackson
Southeast— total
Corbin
Middlesborough
Mistletoe
Pineville
Woodbine

TENNESSEE.
Total package cars for October, 1913.
Total pounds shipped October, 1913.
Northwest—total
Nashville and connections
Paris
Southwest—total
Jackso/i
Memphis
North west-central—total . . .
Clarks ville
South east-central—total
Chattanooga and connections

4, ,519
4,135
384
2,733
138
2,595
228
228

3,990
3,990

East—total
Harriman
Jellico
Knoxville
Northeast—total..
Bristol
Johnson City.

2.40
186

874
889
572
252
320
5,553
934
459
374
1,418
281
1,050
366
343
329
263
263
2,169
1,256
298
241
192
181

924
23,386,201
3,900
744
147
3,002
802
629
173

72

LOCATION" OF RESERVE DISTRICTS.
DISTRIBUTION OF PACKAGE-CAR SHIPMENTS—Continued.

MAILS—Continued.

Mails between Cincinnati and other

ALABAMA.
Total package cars for October, 1913
Total pounds shipped October, 1913
Cities.

408
6,983,553

Pounds.

Birmingham
Mobile

3,847
979

Pounds.

Cities.

1,921
237

Montgomery
Selma

Departure.

Wheeling to Cincinnati
Cincinnati to Parkersburg

GEORGIA.
Total package cars for October, 1913
Total pounds shipped October, 1913

588
10,778,215

Parkersburg to Cincinnati
Cincinnati to Charleston, W. Va

Atlanta and connections.
Augusta
Junta
Macon

Rome
Savannah
Spencer Transfer..

Charleston to Cincinnati
Cincinnati to Huntington

MISSISSIPPI.
Total package cars for October, 1913.
Total pounds shipped October, 1913.

128
1,175,141

Huntington to Cincinnati
Cincinnati to Louisville

MAILS.

Louisville to Cincinnati

Mails between Cincinnati and other cities.
Departure.

Cincinnati to Toledo
Toledo to Cincinnati
Cincinnati to Cleveland

Cleveland to Cincinnati

Cl&cftinati to Columbus

Columbus to Cincinnati

Cincinnati to Dayton

Dayton to Cincinnati

Cincinnati to Wheeling, W. Va

Wheeling to Cincinnati




1.00 p. m.
9.45 p. m.
2.55 a. m.
8.10 a. m.
12.50 a. m.
2.00 p. m.
7.00 a. m.
10.20 a. m.
2.30 a. m.
8.30 a. m.
11.50 a. m.
3.00 p.m.
6.05 p. m.
9.00 p.m.
12.05 a. m.
12.05 a. m.
3.50 a. m.
6.00 a. m.
9.00 a. m.
12.00 m.
9.00 p.m.
2.30 a. m.
6.00 a. m.
9.00 a. m.
11.55 a. m.
12.20 p.m.
2.00 p. m.
5.00 p.m.
6.05 p.m.
9.00 p.m.
1.10 a. m.
2.20 a. m.
6.30 a. m.
7.35 a. m.
10.45 a. m.
12.30 p.m.
2.00 p.m.
4.00 p.m.
5.30 p. m.
2.55 a. m.
8.10 a. m.
8.30 a. m.
11.50 a. m.
12.20 p. m.
1.00 p.m.
3.00 p. m.
6.05 p. m.
9.00 p.m.
9.45 p. m.
3.20 a. m.
5.45 a. m.
7.55 a. m.
9.05 a. m.
11.55 a..m.
1.25 p. m.
2.55 p. m.
3.05 p. m.
6.05 p. m.
9.15 p. m.
8.25.a. m.
2.30 a. m.
11.50 a. m.
8.30 p. m.
12.05 a. m.
10.00 a. m.

Arrival.

6.48 p. m.
4.50 a. m.
9.45 a. m.
2.28 p.m.
7.45 a. m.
7.50 p. m.
2.00 p. m.
4.50 p. m.
11.00 a. m.
3.25 p.m.
6.00 p. m.
9.10 p.m.
1.55 a. m.
6.45 a. m.
7.15 a. m.
7.15 a. m.
10.50 a. m.
4.55 p.m.
5.25 p.m.
7.50 p.m.
5.00 a. m.
6.30 a. m.
10.00 a. m.
12.01 p. m.
2.52 p. m.
4.05 p.m.
4.50 p.m.
8.15 p.m.
9.50 p.m.
12.30 a. m.
5.00 a. m.
6.30 a. m.
10.30 a. m.
10.50 a. m.
1.55 p. m.
4.55 p.m.
5.25 p.m.
7.50 p. m.
9.10 p. m.
4.40 p. m.
9.55 a. m.
10.10 a. m
1.16 p. m.
2.00 p. m.
2.35 p. m.
4.16 p.m.
7.45 p. m.
11.55 p. m.
11.30 p. m.
5.00 a. m.
7.45 a. m.
9.30 a. m.
10.50 a. m.
2.00 p.m.
3.10 p. m.
4.45 p. m.
4.55 p. m.
7.50 p. m.
11.15 p. m.
4.35 p. m.
12.00 a. m.
10 20 p. m.
7.05 a. m.
8.40 a. m.
5.50 p. m.

Time.
Hrs. Min.
5 48
7 5
6 50
6 18
6 55
5 50
7 0
6 30
8 30
6 55
6 10
6 10
8 50
9 45
7 10
7 10
7 0
10 55
8 25
7 50
8 0
4 0
4 0
3 1
3 2
3 45
2 50
3 15
3 45
3 30
3 50
4 10
4 0
3 15
3 10
4 25
3 25
3 50
3 40
1 40
1 45
1 40
1 26
1 40
1 35
1 16
1 40
2 4
1 45
1 40
2 0
1 35
1 45
2 5
1 45
1 55
1 50
1 45
2 0
8 10
9 30
10 30
10 35
8 35
7 50

cities—Continued.

Cincinnati to Lexington

Lexington to Cincinnati

Cincinnati to Knoxville
Knoxville to Cincinnati
Cincinnati to Chattanooga

Chattanooga to Cincinnati

Cincinnati to Nashville
Nashville to Cincinnati
Cincinnati to Indianapolis

Indianapolis to Cincinnati

Cincinnati to Evansville

Evansville to Cincinnati

Cincinnati to Terre Haute

7.15 a. m.
4.00 p. m.
6.10 p. m.
11.00 p. m.
2.30 a. m.
8.00 a. m.
12.30 p. m.
6.35 p. m.
11.25 a. m.
7.55 p. m.
2.38 a. m.
2.25 p. m.
7.00 a. m.
12.00 m.
9.00 p. m.
11.00 a. m.
2.25 a. m.
2.00 p.m.
7.00 a. m.
12.00 m.
9.00 p. m.
12.20 p. m.
3.50 a. m.
4.20 a. m.
2.15 a. m.
7.55 a. m.
9.00 a. m.
11.15 a. m.
2.10 p. m.
6.00 p. m.
10.30 p. m.
3.15 a. m.
8.15 a. m.
1.10 p. m.
2.00 p. m.
4.00 p. m.
5.00 p. m.
5.45 p. m.
6.30 a. m.
8.00 a. m.
11.15 a. m.
2.50 p. m.
4.00 p. m.
8.00 p.m.
8.15 p. m.
9.00 p. m.
5.23 a. m.
5.35 a. m.
7.25 a. m.
3.00 p.m.
6.37 p. m.
8.45 p. m.
8.00 a. m.
8.15 p. m.
7.00 a. m.
11.05 a. m.
10.55 p. m.
8.00 a. m.
11.15 a. m.
8.00 p. m.
8.15 p.m.
10.30 p.m.
1.25 a. m.
5.05 a. m.
11.05 a. m.
1.35 p.m.
9.45 p. m.
10.05 p. m.
10.25 p. m.
11.15 a. m.
6.00 p. m.
10.30 p.m.
2.15 a. m.
3.10 a. m.
8.05 a. m.
8.35 p.m.
2.45 a. m.
8.30 a. m.
8.45 a. m.
9.10 a. m.
12.00 m.
3.00 p.m.
3.15 p.m.
9.00 p. m.
10.00 p. m.
3.35 a. m.
3.45 a. m.
7.30 a m.
8.00 a. m.
10.40 a. m.
3.10 p. m.
6.15 p. m.
2.15 a. m.
9.00 a. m.
12.00 m.
2.10 p.m.
9.15 p. m.
1.35 a. m.
7.15 a. m.
8.35 a. m.
12.45 p. m.
10.10 p.m.
2.45 a. m.
8.30 a. m.
9.10 a. m.

Arrival.

5.25 p. m.
1.45 a. m.
6.30 a. m.
8.05 a. m.
10.00 a. m.
2.00 p. m.
6.00 p. m.
12.10 a. m.
5.15 p.m.
1.45 a. m.
8.05 a. m.
10.15 p. m.
3.25 p. m.
5.40 p. m.
2.45 a. m.
5.00 p. m.
8.20 a. m.
1.45 a. m.
1.15 p. m.
4.20 p. m.
1.25 a. m.
5.00 p. m.
8.20 a. m.
11.00 a. m.
7.35 a. m.
11.45 a. m.
12.55 p. m.
2.45 p. m.
5.50 p. m.
9.27 p. m.
2.10 a. m.
7.20 a. m.
11.45 a. m.
4.30 p. m.
6.10 p. m.
8.15 p. m.
8.45 p. m.
9.15 p. m.
9.45 a. m.
10.25 a. m.
5.20 p. m.
6.40 p. m.
6.45 p. m.
10.25 p. m.
7.47 a. m.
8.15 a. m.
8.00 a. m.
8.20 a. m.
10.15 a. m.
5.59 p. m.
9.10 p.m.
7.45 a. m.
4.24 p. m.
5.50 a. m.
6.30 p. m.
8.50 p. m.
7.45 a. m.
5.55 p. m.
2.44 a. m.
6.10 a. m.
11.10 a. m.
2.40 p. m.
4.30 p. m.
5.59 p.m.
9.10 p.m.
7.20 a. m.
8.00 a. m.
8.20 a. m.
11.45 a. m.
8.35 p. m.
2.15 a. m.
8.00 a. m.
3.10 p.m.
11.45 a. m.
4.30 p.m.
7.20 a. m.
6.35 a. m.
11.15 a. m.
12.15 p.m.
1.45 p.m.
2.35 p. m.
6.20 p. m.
7.10 p.m.
11.55 p.m.
1.35 a. m.
6.30 a. m.
7.10 a. m.
10.55 a. m.
11.35 a. m.
2.15 p.m.
6.10 p. m.
8.50 p.m.
12.40 p.m.
7.00 p. m.
9.10 p.m.
2.05 a. m.
5.50 a. m.
11.50 a. m.
4.30 p.m.
6.10 p. m.
8.15 p. m.
7.30 a. m.
8.47 a. m.
1.46 p.m.
3.26 p.m.

Time
Hrs. Min.
10 10
9 45
12 20
9 5
7 30
6 0
5 30
5 35
5 50
5 50
5 27
7 50
8 25
5 40
5 45
6 0
5 55
11 45
6 15
4 20
4 25
4 40
4 30
6 40
5 20
3 50
3 56
3 30
3 40
3 27
3 40
4 5
3 30
3 20
4 10
4 15
3 45
3 30
3 15
2 25
6 5
3 50
2 45
2 25
11 32
11 15
2 37
2 45
2 50
2 59
2 33
11 0
8 24
9 35
11 30
9 45
8 50
9 55
15 29
10 10
14 55
16 10
15 5
12 54
10 5
17 45
10 15
10 15
13 20
9 20
8 15
9 30
12 55
8 35
8 35
10 45
3 55
2 45
3 30
4 35
2 35
3 20
3 55
2 55
3 35
2 55
3 25
3 25
3 35
3 35
3 0
2 35
10 25
10 0
9 10
11 55
8 35
10 15
9 15
9 35
7 30
9 20
6 2
5 16
6 16

73

CINCINNATI, OHIO.

MAILS—Continued.
Mails between Cincinnati and other cities—Continued.
Departure.
Cincinnati to Terre Haute.

Terre Haute to Cincinnati.

Cincinnati to Fort Wayne.

Fort Wayne to Cincinnati.

Cincinnati to Detroit

Detroit to Cincinnati.

12.00 m.
3.00 p. m.
9.00 p. m.
10.00 p. m.
12.55 a m.
4.05 a. m.
5.40 a. m.
1.20 p.m.
4.20 p.m.
4.52 p.m.
9.10 p.m.
2.55 a. m.
7.50 a. m.
9.45 a. m.
1.00 p.m.
3.00 p.m.
8.05 p. m.
9.45 p. m.
10.00 p.m.
1.30 a. m.
7.00 a. m.
6.35 a. m.
11.15 a.m.
1.25 p. m.
5.10 p.m.
2.55 a. m.
8.10 a. m.
1.00p.m.
9.45 p.m.
12.15 a. m.
8.20 a. m.

12.01p.m.

Cincinnati to Grand Rapids.

Grand Rapids to Cincinnati.
Cincinnati to Buffalo

Buffalo to Cincinnati.

Cincinnati to Pittsburgh.

Pittsburgh to Cincinnati.

Cincinnati to Atlanta
Atlanta to Cincinnati

Cincinnati to Birmingham.

Birmingham to Cincinnati..

Cincinnati to Memphis

Memphis to Cincinnati.
Cincinnati to St. Louis

St. Louis to Cincinnati.




10.45 p.m.
2.45 a. m.
9.45 a. m.
1.00p.m.
8.06 p.m.
9.45 p.m.
10.00 p.m.
7.30 a. m.
8.50 p. m.
2.30 a. m.
8.30 a. m.
11.50 a. m.
3.00 p.m.
6.05 p.m.
9.00 p.m.
12.05 a. m.
12.09 a. m.
3.35 a. m.
7.15 a. m.
12.35 p.m.
6.10 p.m.
2.30 a. m.
9.00 a. m.
2.00 p.m.
9.00 p.m.
5.00 p.m.
12.05 a. m
12.25 a. m.
3.02 a. m.
4.05 a. m.
8.15 a. m.
11.30 a. m.
7.50 p.m.
8.00 a. m.
11.15 a. m.
8.00 p.m.
10.30 p.m.
7.12 a. m.
8.00 a. m.
8.35 a. m.
5.10 p.m.
8.50 p.m.
8.00 a. m.
11.15 a. m.
6.00 p.m.
8.00 p.m.
10.30 p. m.
6.25 a. m.
12.22 p.m.
4.00 p.m.
6.05 p.m.
8.45 p.m.
12.01 a. m.
6.00 p.m.
10.30 p. m.
2.15 a. m.
8.20 a. m.
11.15 a. m.
8.40 p.m.
1.00 p.m.
6.35 a. m.
2.15 a. m.
9.00 a. m.
9.10 a. m.
12.00 m.
9.15 p.m.
3.00 p. m.
3.15 p. m.
1.30 a. m.
9.00 a. m.
12.00 m.
9.15 p. m.
11,00 p. m.
11.50 p. m.

Arrival.

MAILS—Continued.

Mails between Cincinnati and other cities—Continued.
Time.

Hrs. Min.
4 35
4.35 p. m.
6 59
9.59 p.m.
5 21
2.21 a. m.
6 1
4.01 a. m.
6 15
7.10 a. m.
6 50
10.55 a. m.
11.35 a. m.
5 55
6il0 p. m.
4 50
8.50 p.m.
4 30
10.55 p. m.
6 3
6.30 a. m.
9 20
11.05 a. m.
8 10
3.00 p.m.
10
4.00 p. m.
15
8.40 p. m.
7 40
13.00 m.
9 0
1.35 a. m.
5 30
6.15 a. m.
8 30
8.45 a. m.
10 45
7.10 a. m.
2.00 p.m.
12.45 p.m.
6 10
5.45 p. m.
6 30
7.30 p.m.
6 5
13 20
6.30 a. m.
9 25
12.30 p. m.
8 30
4.40 p. m.
7 55
8.55 p. m.
9 25
7.10 a. m.
2.00 p.m.
13 45
4.50 p. m.
8 30
7.50 p. m.
7 49
7.45 a. m.
9 0
5.20 p.m.
14 35
10.20 p.m.
12 35
17 31
6.31 a. m.
10 40
6.45 a. m.
15 20
1.05 p.m.
15 25
1.25 p.m.
12 0
7.30 p.m.
10 20
7.10 a. m.
13 25
3.55 p. m.
11 55
8.25 p. m.
12 9
11.59 p.m.
12 3
3.03 a. m.
6.30 a. m.
12 25
11.45 a. m.
14 45
1.50 p.m.
13 45
10.50 a. m.
10 41
10 20
I.55 p.m.
12 35
7.50 p.m.
5.30 a. m.
16 55
7.15 a. m.
13 5
2.15 p. m.
11 45
5.35 p.m.
8 35
9.55 p.m.
7 55
6.15 a. m.
9 15
2.05 a. m.
9 5
8.55 a. m.
8 50
10.30 a. m.
10 5
10.50 a. m.
7 48
12.20 p.m.
8 15
9 10
5.25 p.m.
9 40
9.10 p.m.
6.30 a. m.
10 40
9.50 p. m.
13 50
7.10 a. m.
19 55
15
II.00 a. m.
19
7.35 p. m.
13 38
8.50 p. m.
23 40
7.20 a. m.
23 5
7.20 a. m.
14 35
7.45 a. m.
19 40
4.30 p. m.
14 20
10.20 p.m.
16 35
3.50 a. m.
14 25
8.25 a, m.
14 15
10.15 a. m.
16 55
3.25 p.m.
14 45
9.10 p.m.
18 58
7.20 a. m.
16 0
8.00 a. m.
14 15
8.20 a. m.
15 0
11.45 a. m.
16 29
4.30 p.m.
14 15
8.15 a. m.
16 50
3.20 p.m.
21 10
11.25 p.m.
15 5
11.25 p.m.
20 30
7.45 a. m.
15 5
11.45 a. m.
18 20
7.20 a. m.
14 40
9.15 p. m.
11 30
1.45 p. m.
9 0
6.00 p.m.
10 37
7.45 p. m.
8 15
8.15 p.m.
10 13
7.28 a. m.
10 56
1.56 a. m.
10 41
1.56 a. m.
10 20
11.50 a. m.
9 10
6.10 p.m.
8 15
8.15 p.m.
10 15
7.30 a. m.
9 30
8.30 a. m.
11 45
11.35 a. m.

Departure.
Cincinnati to Springfield, 111

Springfield to Cincinnati
Cincinnati to Peoria, 111

Peoria to Cincinnati.
Cincinnati to Chicago

Chicago to Cincinnati.

Cincinnati to New York

New York to Cincinnati.

Cincinnati to Washington..

Washington to Cincinnati.,

ARTICLES

2.45 a. m.
9.00 a. m.
12.00 m.
9.00 p. m.
10.00 p. m.
2.30 a. m.
11.00 a. m.
8.00 p.m.
2.45 a. m.
8.30 a. m.
9.10 a. m.
12.00 m.
9.00 p. m.
10.00 p. m.
7.25 a. m.
11.30 a. m.
8.00 p. m.
8.30 a. m.
12.00 m.
9.00 p. m.
3.00 p. m.
2.45 a. m.
8.45 a. m.
10.00 p. m.
9.10 a. m.
9.20 p. m.
9.25 a. m.
12.45 p. m.
• 9.05 p.m.
2.30 a. m.
9.20 a. m.
10.05 p. m.
9.50 a. m.
11.45 p.m.
2.30 a. m.
9.00 a. m.
2.00 p.m.
5.00 p.m.
9.00 p.m.
12.05 a. m.
2.45 a. m.
8.04 a. m.
2.04 p.m.
6.00 p.m.
6.56 p.m.
8.34 p.m.
9.21 p.m.
12.05 a.m.
8.00 a. m.
12.30 p.m.
2.00 p.m.
6.35 p.m.
9.00 p.m.
12.40 a.m.
7.00 a.m.
3.00 p.m.
3.15 p.m.
5.45 p.m.
6.45 p.m.
11.10 p.m.

I N C L U D E D IN M O N T H L Y R E P O R T

Arrival.

Time.

3.50 p. m.
8.04 p. m.
11.00 p.m.
8.55 a. m.
8.55 a. m.
2.15 p. m.
10.55 p. m.
7.10 a. m.
2.45 p. m.
6.40 p. m.
10.30 p. m.
10.30 p. m.
7.25 a. m.
1.30 p.m.
6.10 p. m.
8.50 p. m.
7.10 a. m.
5.00 p. m.
7.55 p. m.
7.10 a. m.
I.15 a. m.
12.25 p. m.
5.40 p. m.
7.03 a. m.
5.45 p. m.
7.10 a. m.
6.10 p.m.
8.50 p.m.
7.10 a. m.
II.35 a. m.
6.10 p.m.
7.15 a. m.
5.55 p. m.
8.00 a. m.
3.45 a. m.
6.54 a. m.
9.28 a. m.
1.50 p. m.
7.26 p.m.
11.18 p.m.
9.10 p.m.
5.00 a. m.
10.30 a. m.
10.50 a. m.
12.20 p.m.
5.25 p.m.
5.25 p.m.
10.30 p.m.
2.35 a.m.
6.30 a. m.
8.40 a. m.
12.35 p.m.
3.40 p.m.
5.15 p.m.
1.45 a. m.
8.05 a. m.
8.20 a. m.
10.50 a. m.
12.20 p.m.
5.00 p. m.

Hrs, Min.
13 5
11 4
11 0
11 55
10 55
11 45
11 55
11 10
12 0
10 10
13 20
10 30
10 25
15 30
10 45
9 20
11 10
8 30
7 55
10 10
10 15
9 40
8 55
9 3
8 35
9 50
8 45
8 5
10 5
9 5
8 50
9 10
8 5
8 15
24 15
19 54
18 28
19 50
21 26
22 13
19 25
21 56
21 26
17 50
18 24
21 51
21 4
21 25
17 35
17 0
17 40
17 0
17 40
17 35
19 45
18 5
18 5
18 5
18 35
18 50

OP T H E

CHAMBER

OF

COMMERCE.

Cereals, grain, and farm products: Barley, corn, oats, rye,
wheat, bran, flour, malt, malt sprouts, hay, cotton (bales), cotton
seed, straw, hops, clover seed, timothy seed, other seeds, hemp,
broom corn.
Coal and coke: Bituminous and anthracite coal, coke.
Fruits, vegetables produce, dairy products: Apples, bananas,
dried fruits, green fruits, lemons, oranges, butter, butterine, eggs,
potatoes, vegetables, onions, watermelons, poultry, fish, flaxseed.
Groceries: Beans, candles, coffee, cheese, molasses, sugar, rice,
salt, soap, sorghum, starch.
Live stock and products: Cattle, hogs, sheep, horses, fresh meats,
salt beef, D. S. meats (loose), D. S. meats (boxes), bacon, hams,
lard, pork, hides, leather, tallow, wool.
Manufactured articles: Agricultural implements, automobiles
(pieces), boots and shoes, cooperage, furniture, glassware, machinery,
vehicles (in cars), staves, crossties, other manufactures (pieces).
Metals, building materials, oils: Lime, cement, plaster, brick,
lumber, nails, oil, rosin, stone, iron pipe, scrap iron, iron and steel,
pig iron, pig lead, white lead, petroleum, stearine, turpentine.
Wines and liquors, tobacco: Alcohol, ale, beer, and porter,
whisky, wines and liquors (barrels), wines and liquors (100 pound
packages), leaf tobacco (hogsheads), leaf tobacco (cases), manufactured tobacco.
Miscellaneous: Asphalt, feathers, fertilizers, grease, paper, dried
grains, phosphate rock, tankage, soda ash, merchandise, bark.

74

LOCATION" OF RESERVE DISTRICTS.
I N T H E M A T T E R O F A F E D E R A L R E S E R V E BANK F O R T H E O H I O VALLEY.

The reserve bank organization committee:
G E N T L E M E N : The undersigned begs leave to submit
the following memorandum argument in favor of the
establishment of a Federal banking district which shall
include within its boundaries the Ohio Valley.
Your committee is directed under the Federal reserve
act to divide the continental United States, excluding
Alaska, into not less than 8 nor more than 12 districts,
in each of which districts there shall be organized one
Federal reserve bank. The act also prescribes "that
the districts shall be apportioned with due regard to
the convenience and customary course of business,
and shall not necessarily be coterminous with any State
or States." Without being obliged necessarily to follow State lines, the only limitation imposed upon your
committee as to the boundaries of regional districts is
that such districts shall be apportioned with due regard
to the convenience of business and to the customary
course of business.
We assume that suggestions along the line of determining the boundaries of the regional districts, based
on the convenience of business and the customary
course of business, will not be unwelcome.
I t will clear the situation somewhat to know what is
meant by "business," as used in the reserve act, before
attempting to ascertain the meaning of the terms
"convenience" and "customary course of business."
By the term 1 business," as use'd in the Federal
reserve act, we assume no definition can be thought of
that would be too broad or comprehensive. If we
have read the act aright, the word "business" is practically synonymous with "commerce" and means interchange of goods, merchandise, or property of any
kind; trade, traffic, more especially trade on a large
scale; transportation of merchandise between different parts of the country.
The movement of the wheat and corn crop of the
Northwest to tidewater; the marketing of the cotton
crop of the South; the distribution of the product of
the looms of the East; the delivery to the consumer
of the output of the anthracite fields of the Middle
States; the handling of the bituminous coal product,
the iron, the lumber, and agricultural products of the
Ohio Valley; the transportation of live stock from the
grazing States to its market, suggest some phases of
business that are to be taken into account by your
committee in dividing the continental United States
into regional bank districts.
Under the new dispensation in banking, each regional bank is to be the financial center of its particular district, and is to provide quick relief for financial
distress in that locality. The regional banks as a
whole are to be employed in financing extensive commercial enterprises of a legitimate character within
their respective districts.
'




On the theory that the districts created by your
committee may be readjusted and new districts created, not exceeding 12 in all, by the Federal Reserve
Board, we venture to suggest the following division of
the United States into eight regional districts:
1. The State of New York and the New England
States to compose the district to be known as the New
York and New England district.
2. The States of Pennsylvania, New Jersey, Delaware, Maryland, Virginia, and the District of Columbia to compose the district to be known as the Middle
Atlantic district.
3. The States of North Carolina, South Carolina,
Georgia, Florida, Alabama, Mississippi, and Louisiana
to compose the district to be known as the South Atlantic and Gulf district.
4. The States of Ohio, Indiana, Kentucky, West
Virginia, and Tennessee to compose the district to be
known as the Ohio Valley district.
5. The States of Illinois, Iowa, Michigan, Wisconsin,
and Minnesota to compose the district to be known
as the Great Lakes district.
6. The States of Missouri, Arkansas, Texas, Oklahoma, Kansas, and Nebraska to compose the district
to be known as the lower Mississippi Valley district.
7. The States of North Dakota, South Dakota, Colorado, Wyoming, "Montana, Idaho, and Washington to
compose the district to be known as the Great Northern district; and,
8. The States of Oregon, California, Nevada, Utah,
Arizona, and New Mexico to compose the district to
be known as the Pacific coast district.
The greatest commercial development of the
United States has always been for the most part between the thirty-seventh and forty-third parallels, a
strip reaching from Norfolk to Rochester on the east
coast and from San Francisco into southern Oregon on
the west.
Of the 27 cities in the United States with a population of over 200,000 at the last census, 21 are within
that 400-mile strip, viz, Boston, Providence, New
York City, Jersey City, Newark, Philadelphia, Baltimore, Pittsburgh, Buffalo, Rochester, Cleveland,
Detroit, Milwaukee, Indianapolis, Louisville, Cincinnati, Chicago, St. Louis, Kansas City, Denver, and
San Francisco, while outside of this strip are only 2
cities to the south of it, Los Angeles and New Orleans,
and 4 cities to the north of it, Minneapolis, St. Paul,
Portland, and Seattle.
More striking still do we find the industrial development within the strip mentioned, when population is
considered. The population of the large cities outside
of this industrial belt is but one and one-half millions,
while that of the 22 large cities within it is fifteen and
one-half millions.

CINCINNATI, OHIO.

If the regional districts can be so bounded as that
as many of them as possible can share in that 6° strip
of territory north and south, which stretches from one
ocean to the other, such a division of territory, it would
seem, would conform to the direction in the reserve
act to apportion the districts with due regard to the
" customary course of business."
No banking system can be thoroughly efficient without the aid of a railway mail service that is tuned up
to the highest point of efficiency. Every east and
west trunk line of railroad, except the Northern
Pacific and the Great Northern, penetrates this 6league belt at some point or other, as it crosses the
continental United States. Through and across this
strip of 400 miles in width, passes nearly every navigable river in the United States. I t is washed by the
waters of four of the Great Lakes and receives the
traffic from the fifth. The wonderful harbors of Boston, New York, Philadelphia, and Baltimore on the
east, and of San Francisco on the west, attest that the
development of the business of this country has, for
the major part, been between east and west lines, less
than 400 miles apart, from the Atlantic to the Pacific.
Under the present national banking system, the
three central reserve cities, New York, Chicago, and
St. Louis, and over two-thirds of the 46 other reserve
cities, are to be found within this belt of commercial
supremacy above referred to.
In the bounding of the eight regional districts, as
hereinbefore outlined, no effort was made to divide
the country into districts that were equal either in
area or in the aggregate of bank capital and surplus.
The language used in the Federal reserve act does not
seem to contemplate a division of the country along
any such lines. In the natural order of things there
will be some regional districts in which the banking
resources will be enormous, others in which they will
be not so large. In the division which we have laid
before your committee the aim has been, without
creating new and strange business alliances, to allow
certain sections of our country to set up for themselves, as it were, under this new banking arrangement.
Trade develops along transportation lines, rail as
well as water. For instance, the commerce of what
we have chosen to designate the New York and New
England district is fed by the Great Lakes and the
St. Lawrence on the north, by the .Erie Canal, the New
York Central, and the New York, New Haven & Hartford Railroads, and on the east and south by hundreds of miles of ocean front. To group the States of
New York and the New England States in one great
regional district for banking purposes certainly would
do no violence to the language of the act, requiring
divisions of territory made "with due regard to the
convenience and customary course of business/ 7




68

Coming now to the Middle States district, composed of Pennsylvania, Delaware, New Jersey, Maryland, Virginia, and the District of Columbia, we find
it with a bit of lake commerce and the inland traffic
carried on those arteries of steel, the Lackawanna,
Reading, Pennsylvania, and Baltimore & Ohio Railroads, supplemented by the wonderful harbors at
Philadelphia and Baltimore, ample to float the bottoms of all nations. This territory suggests naturally
another great regional banking district, where gigantic commercial transactions must needs have in times
of financial stress the required relief which the regional
bank is expected to afford.
Passing south of the thirty-seventh parallel, we
come to the third district, which we have chosen to
call the South Atlantic and Gulf district, and composed of North and South Carolina, Florida, Georgia,
Alabama, Mississippi, and Louisiana. This district,
essentially a southern one, has the Southern Railway,
the Flagler Lines, the Western & Atlantic, Alabama
& Great Southern, and the Louisville & Nashville
Railroads for inland carriers, and an ocean and gulf
frontage from Currituck Sound to Sabine Pass, besides
having the tonnage that is delivered through the
Mississippi River and its tributaries. This district
would probably receive through the Mississippi route
a greater tonnage originating in other districts than
will come from its neighbors in any other district in
the United States. While not requiring banking facilities of the same magnitude as the North Atlantic districts, the South Atlantic and Gulf district has possibilities possessed by perhaps no other district in the
United States, and it is safe to predict that it will be
one of the great districts of the country. Pig iron is
produced the year round, and if not sold promptly
becomes the banker's best collateral. Thus arises a
steady flow of commercial pepaer to be handled by the
regional bank in the furnace district.
Passing for the moment the district we have designated as the Ohio Valley district, our next division of
territory is that made up of the States of Illinois,
Iowa, Michigan, Wisconsin, and Minnesota, which we
have styled the Great Lakes district. Aside from the
enormous traffic of all kinds, including iron ore and
grain, originating within this district, all the eastbound tonnage tjiat originates in the Northwest will,
at some stage of the journey, before reaching destination, pay tribute to the banks in this regional district. All the railroads of the West and Northwest
converge within its boundaries. A district bisected
by the Mississippi as far as Cairo, and bounded on the
north and east by Lakes Michigan, Superior, a*nd
Huron, the business of this section is not troubled
with questions of transportation. The convenience
and customary course of business in this region for
the last 50 years finds expression in the magnificent

76

LOCATION" OF RESERVE DISTRICTS.

cities of Chicago, Detroit, Milwaukee, St. Paul, Minneapolis, and Duluth.
The sixth of our subdivisions embraces the States
of Missouri, Kansas, Nebraska, Arkansas, Oklahoma,
and Texas, and is called the lower Mississippi Valley
district. If but eight districts are to be created at
first, necessarily those west of the Mississippi River
will be of large area and the banking centers widely
separated. Until such time as the Federal Reserve
Board shall see fit to increase the number, it may
approve of the establishment of branch banks within
these districts. The district we have outlined is, to be
sure, an empire in itself as to territory, but not equal
to several of the other districts in the demands
that will be made upon the banks within its borders.
It, more than any other district, can be classed as an
agricultural and grazing section, though the oil and
mineral products help materially to swell the aggregate of business done in the district. With a Gulf
frontage of over 500 miles, and three States, Missouri, Kansas, and Nebraska, within the favored
belt of greatest commercial activity, this territory
could all of it be well served by a regional bank and
possibly two branches.
Subdivision 7 embraces North and South Dakota,
Colorado, Wyoming, Montana, Idaho, and Washington, to be known as the Great Northern district.
Somewhere in the division of the continental United
States the Rockies will have to be crossed, and in
order that every district in the country shall have its
water frontage, either lake or ocean, we have added the
State of Washington to the mineral States of Colorado,
Wyoming, and Idaho and the grain and fruit growing
States of the Dakotas and Montana. The distances
are so great and the business centers so widely separated that this section, like the lower Mississippi
Valley district, can possibly best be served with a regional bank and two or more branches. This district
has the State of Colorado and the southern part of
Wyoming in the district embraced between the thirtyseventh and forty-third parallels.
We have grouped Oregon, California, Nevada, Utah,
Arizona, and New Mexico in one district, to be known
as the Pacific Coast district. We assume that the
natural trend of business in Utah and Nevada is
westward rather than eastward, and that this is likewise true of Arizona and the most of New Mexico.
This territory suggests one regional bank and two or
more branches.

Returning now to the territory composed of the
States of Ohio, Indiana, West Virginia, Kentucky, and
Tennessee, we suggest to your committee that these
States be created into a regional banking district, to
be known as the Ohio Valley district. I t touches two
of the Great Lakes and thus gets its water frontage,
with docks at Toledo, Cleveland, and Conneaut. I t
has more miles of navigable water on the Ohio, Muskingum, the two Kanawhas, Big Sandy, Kentucky,
Cumberland, and Tennessee Rivers than any other
district in the United States. Its natural resources,
timber, marble, phosphates, coal, iron, oil, and gas are
in transit every day in the year. Its manufactures are
sold in every market in the world, its harvesters in
Argentina and Russia, its mining machinery in the
diamond fields of South Africa. Its agricultural products are unsurpassed in quality by any grown on the
continent.
The Federal Government is committed to complete
the improvement of the Ohio River and for its subsequent maintenance in a high state of efficiency from
Pittsburgh to Cairo. No district of equal area can be
created in the United States with better railroad
facilities than is supplied to the Ohio Valley district
by the Vanderbilt lines, Baltimore & Ohio Southwestern, Pennsylvania, Chesapeake & Ohio, Queen &
Crescent, Southern, and Louisville & Nashville Railroads. Business for common carriers means business
for banks. With four east-and-west lines and three
practically north-and-south lines of railroad it would
be hard to conceive of a region better supplied with
carriers for the prompt dispatch of business, and
dispatch in these days is equivalent to convenience of
business.
This central area of our country, with all but the
State of Tennessee between the thirty-seventh and
forty-third parallels, west of the Appalachians and east
of the Mississippi, occupying half the space between the
Lakes and the Gulf, with a homogeneous population
enlightened and progressive, with unusual natural resources, combined with enormous manufacturing
wealth, and no foot of its territory over 12 hours'
ride from the center of a circle that shall include the
States of Ohio, Indiana, West Virginia, Kentucky, and
Tennessee, would seem to suggest an ideal district
within which to locate a Federal reserve bank.
Respectfully submitted.
THOMAS H . KELLEY.
CINCINNATI,

February 16, 1914-

BRIEF SUBMITTED BY CHARLES A. HINSCH, PRESIDENT OF THE CINCINNATI CLEARING HOUSE,
At a meeting of the Cincinnati Clearing House Association, held Tuesday, December 23, 1913, the representatives of the eight national banks unanimously
resolved to recommend to their respective institutions
to accept the terms and provisions of the Federal reserve act.




Believing Cincinnati to be a logical location for a
Federal reserve bank, a committee of three was appointed, with full power to act, to present the claims
of our city.
The first consideration of our committee was the
selection of a district which would, as nearly as pos-

CINCINNATI, OHIO.

sible, be in harmony with the provision of the act,
"That the district shall be apportioned with due regard to the convenience and customary course of
business and shall not necessarily be coterminous
with any State or States."
As the result of our deliberations, we have outlined
a district, pursuant to the expressed wishes of your
honorable committee, consisting of the following
States: Ohio, Indiana, West Virginia, Kentucky, and
Tennessee.
As this district, without question, will be more than
self-sustaining, the district could with safety be enlarged by the addition of one or more so-called cotton
States, or parts thereof. This district comprises:
184,640 square miles
13,161,000 population
1,009 national banks
2,551 State banks
$384,365,000 combined capital and surplus
$1,716,234,000 combined deposits

Per cent.
5
13
14
13
10
8

(See Exhibits A, B, and C.)
The following facts were potent factors in the selection of the district:
First. A Federal reserve bank composed of only the
national banks in the district would be possible, having a capital of $11,758,000; deposits of $42,536,000;
issue of Federal reserve notes, $29,395,000; loans of
$57,044,000. This does not include additional United
States deposits authorized by the Federal reserve act.
Including the State banks of the district, a bank
would be possible having a capital of $23,062,000; deposits of $88,213,000; issue of Federal reserve notes,
$57,657,000; loans of $115,000,000. In our calculations we have not eliminated the State banks ineligible on account of not having sufficient capital.
Second. This section would, without question, be
self-sustaining, incident to the evenly distributed
demand for credit, during the several seasons of the
year.
Third. I t would be a well-balanced district, on account of the diversity of agricultural products, wheat,
corn, oats, tobacco, hemp, with possibly some cotton
and naval stores. Its production of raw materials,
coal, iron, wood, etc., encourage a wide and varied
production of manufactured products.
We respectfully recommend and request your honorable committee to locate a Federal reserve bank in
Cincinnati, for the following reasons:
First. Twenty railroads radiate from Cincinnati,
north, south, east, and west, rendering it possible to
reach Cincinnati by rail from any city in the district,
within a maximum of, say, 10 hours. Mail or currency
can be sent to or from Cincinnati in one night's run.
Cincinnati has the distinction of having constructed
the Cincinnati Southern Railway, extending from
Cincinnati to Chattanooga, a distance of 338 miles.
This property is still owned by the city, and leased to




77

the Cincinnati, New Orleans & Texas Pacific Railway,
and is the most valuable asset of our city.
Our excellent telegraph and telephone service
facilitates the speedy shipment of currency, transfer of
funds, and credits.
Second. Cincinnati is the nearest large city to the
center of population, the population of the metropolitan district of Cincinnati being nearly 600,000.
Twenty million people reside within a radius of 300
miles.
Third. Cincinnati is neither a northern nor a
southern city; is located near the border of three great
States—Ohio, Indiana, and Kentucky.
Fourth. In the establishment of the subtreasury in
Cincinnati the Government recognized the geographical
and strategical relation of the city to the density of
population, and the industrial and agricultural activity
of the district.
Fifth. Cincinnati is a reserve city and the commercial center of the district selected by our committee,
and banks located in substantially every county in
the district maintain business relations with this city,
many of whom have expressed in writing a preference
for the location of a Federal reserve bank in Cincinnati, stating that the natural trend of their business
is toward this city; the detailed responses will be submitted in the general brief.
The knowledge of the needs and credits of the district, predicated upon the close personal contact of
the banks of Cincinnati with their correspondents
throughout the territory, would be available and of
great value to the Federal reserve bank.
Cincinnati is normally an easy money market, and
it is seldom that any of the banks in this city show
either a bills-payable account or bills rediscounted.
The banks of this city have given a good account of
of themselves during the several financial crises which
have swept the country, and the disposition, ability,
and courage shown by Cincinnati banks in extending
aid to their correspondents in times of financial stress
account to a large extent for their loyalty to this city
and of their desire for a continuation of the relations
which have existed in the past.
The banks of Cincinnati shipped $15,754,000 currency to their correspondents in Ohio, Indiana, West
Virginia, Kentucky, and Tennessee from August to
December, inclusive, in the year 1907, most of which
was shipped during the months of October and November, the extreme period of the currency panic.
This does not include currency delivered direct to the
representatives of our correspondents. (See Exhibit D.)
On January 13, 1914, the national banks of Cincinnati had deposits from other banks of $31,501,412,
due largely to banks located in this district.
These deposits are the result of years of personal
effort and close attention to the interests of their

78

LOCATION" OF RESERVE

patrons, and not due to the extension of abnormal
terms in an effort to attract balances from their legitimate channels.
Sixth. The combined resources of the national banks
of Cincinnati are the largest of any city in the proposed district.
They had on January 13, 1914, capital, surplus, and
profits of $23,164,000, and deposits of $75,900,000.
The national and State banks combined had capital,
surplus, and profits of $34,922,000, and deposits of
$135,314,000. (See Exhibit E.)
The clearing-house banks of Cincinnati were recently
allotted $1,500,000 crop-moving money by the honorable Secretary of the T r e a s u r y A s we did not need
it we waived our rights to same, thus rendering the
funds available to other sections.
This is a further evidence of the stability of this
district.
The shipment of currency by the banks of Cincinnati to their correspondents in the proposed district
during the year 1913 amounted to $45,000,000, and
during the same period loans to correspondents were
extended at reasonable rates, in harmony with the
balances maintained.
In the exchange operations between the large money
centers, exchange rates in this city are not subject to
violent fluctuations, and exchange is furnished to
correspondents practically at par at all seasons of the
year.
Seventh. The bank clearings of Cincinnati are the
largest in the district, the total forNthe year being
$119,433,000. (See Exhibit G.)
Eighth. With the completion by the Government of
the series of locks and dams now under construction in
the Ohio River Cincinnati will enjoy a 9-foot stage of
water the year round, from Pittsburgh to the Gulf of
Mexico, thus insuring the lowest possible transportation rates for all of the Ohio Valley. (See Exhibit H.)
Ninth. The internal-revenue collections of this district amounted last year to $10,102,646.
Tenth. The post office of Cincinnati is one of the
most important in the country, our receipts having
increased from $1,241,000 in 1900 to $2,715,000 in
1913.
Under the provisions of the Vreeland-Aldrich bill
the clearing house banks of Cincinnati formed the
National Currency Association of Cincinnati, embracing 11 counties in Ohio, 5 counties in Kentucky, and 3
counties in Indiana; a total membership of 37 banks,
the largest membership in the country under the act,
with combined capital and surplus of $26,634,000.
We have every confidence in our ability to prove our
case, and trust that when all the facts and evidence are
presented to you your verdict will be favorable to us
for the establishment of a Federal reserve bank in
Cincinnati.




DISTRICTS.
EXHIBIT

A.

National
banks.

State

Ohio
Indiana
Kentucky
Tennessee
West Virginia

382
256
146
117

754
693
473
434
197

Total...

1,000

2,551

108

EXHIBIT

B.

Square
miles.
Ohio
Indiana
West Virginia
Kentucky
Tennessee

Population.

41,060
36,350
24, 780
40,400
42,050
184,640

Total
EXHIBIT

4,767,000
2,700,000
1,221,000
2,289,000
2,184,000
13,161,000

C.

NATIONAL BANKS.
[National-bank figures as of call of the Comptroller for Oct. 21,1913.]
Number.

Capital and
surplus.

7,509
1,006
380
256
116
145
109

$1,785,704,000
195,972,000
93,916,000
40,827,000
16,593,000
25,867,000
18,769,000

$8,344,781,000
800,691,000
407,386,000
171,676,000
64,486,000
78,849,000
78,294,000

21,625 $1,902,604,000
2,551
188,393,000
754
80,683,000
40,459,000
693
197
19,426,000
473
25,326,000
434
22,499,000

$12,121, 455,000

United States
District
Ohio
Indiana
West Virginia
Kentucky
Tennessee

Deposits.

STATE BANKS.
United States..
District
Ohio
Indiana
West Virginia.
Kentucky
Tennessee

913, 543,000
499, 863,000
187, 165,000
68, 664,000
78, 594,000
79, 257,000

TOTALS.
United States..
District
Ohio
Indiana
West Virginia.
Kentucky
Tennessee

29,134 $3,688,308,000
3,557
384,365,000
174,599,000
1,134
949
81,286,000
36,019,000
313
618
51,193,000
543
41,268,000

$20,466,236,000
1,714,234,000
907,249,000
358,841,000
133,150,000
157,443,000
157,551,000

BASED ON NATIONAL BANKS—REGIONAL BANK.
Capital 1
Deposits

$11,758,000
42,536,049

54,294,049
Loans2
57,044,000
Notes 3
29,395,000
1 Does not include United States deposit authorized by Federal reserve act.
2
Represents 65 per cent of deposits, and amount of possible note issue.
3 Predicated on capital only, being paid in gold, and based on 40 per cent gold
reserve.
EXHIBIT

D.

1907.
West Virginia:
August
September .
October—
November..
December..

$255,000
221,000
417,000
261,000
67,000
$1, 221,000

CINCINNATI,

Indiana:
August
September
October
November
December
Kentucky:
August
September
October
November
December
Ohio:
August
September
October
November
December

79

OHIO.
EXHIBIT

$1,054,000
709,000
989,000
886, 000
324,000

JANUARY 13, 1914.

| Capital.

$3,962,000
475,000
562,000
787,000
1,248,000
403,000
3,475,000

6,096,000
14,754,000
1,000,000
15, 754, 000

Surplus and
undivided Deposits.
profits.

i

National banks
Clearing-house banks
Clearing house and nonmembers

1,154,000
1,308,000
1, 763,000
1,217,000
654,000

Tennessee...

is.

$13,900,000
17,275,000
18,986,800

$9,264,093
14,818,446
15,936,041

$75,900,559
117,864,490
135,314,517

EXHIBIT G.

Cincinnati
Cleveland
Indianapolis
Columbus
Toledo
Louisville

$119,433,000
109,125,000
36, 675,000
28,988,000
26,353,000
69, 622, 000

Memphis
Chattanooga
Nashville
Knoxville
Lexington

$51,026,000
11, 223, 000
36,861,000
7,733,000
4,237,000

MEMORANDUM FILED BY GEORGE F. DIETERLE, PRESIDENT OF THE CINCINNATI CHAMBER OF
COMMERCE AND MERCHANTS' EXCHANGE.
A.

T H E NATURAL T R E N D OF COMMERCE IS
THE OHIO

THROUGH

VALLEY.

Scientists have drawn a logical map of what preceded the advent of man in these parts. I submit
Exhibit No. 1, a map of preglacial period (Howe's
Historical Collection of Ohio, vol. 1, p. 741), showing
that an ice dam at Cincinnati had created a wide lake,
extending eastwardly for 400 miles, covering the lowlands of the Ohio Valley. I t varied in width as the
lake pushed its area up the valleys of the Licking,
Big Sandy, the Kanawha, the Allegheny and Monongahela, the Muskingum, Sciota, and the two Miamis,
and White Water Rivers, containing, as it were, twice
the area now occupied by Lake Erie. The waters receded, leaving fertile valleys; vegetation flourished,
and forests were almost impenetrable.
The mound builder came, selecting this valley for
this abode, because nature was bountiful; and traces
of his early habitation are still manifest in the Serpent Mound (just southeast of Hillsboro, Ohio), Fort
Ancient (just north of Morrow, Ohio), and minor
mounds within Cincinnati. The more savage and
warlike tribe of Indians drove these peaceful dwellers
from their selected abode, and in due course the white
pioneer sought his way along these same lines of least
resistance.
The banks of the Ohio made an easy trail; log rafting an easy method of navigation, and God's country
on both sides of the beautiful river offered the necessities of life. And it seems only natural that following these primitive steps, the establishing of trading
posts along the line of the river should be the next
step. Fort Pitt, Fort Hamer, Limestone, Losantiville (Cincinnati), Louisville, and Old Vincennes
mark the path and progress of civilization and commerce.




Rafting was followed by barge transportation, and
as early as 1816 the steamer New Orleans was built at
Pittsburgh, only nine years after Fulton completed
the Clermont on the Hudson.
Steamboating opened for Cincinnati a quick rise in
population, commerce, and importance. It became
the source of supply to the lower Mississippi, and many
a house in Cincinnati to-day owes its importance to
the quarterly and half-yearly trips of the boats laden
with boots and shoes, clothing for men and dress goods
for women, manufactured tobacco and flour, furniture, and whisky, which they sent to southern markets. These boasts came back laden with sugar, cotton, molasses, rice, southern fruit, and tobacco.
The westward trend of population likewise seems to
have followed the lines of least resistance pursued by
the savage and the pioneer, and cheap transportation offered by river navigation.
A map is here furnished (marked "Exhibit B"),
showing the moving westward of the center of population with each decennial census. (Abstract of the
Thirteenth Census population as taken 1910, p. 31.)
Cincinnati is located 39° 4 " north latitude. For
120 years the center of population of the United States
has moved along the thirty-ninth degree of latitude,
with a few minutes on one side or the other of said
thirty-ninth degree meridian.
1790.—Forty miles east of Baltimore.
1800.—Twenty-five miles west of Baltimore.
1810.—Fifty miles northwest of Washington.
1820.—One hundred miles west of Washington.
1830. One hundred and forty miles west of Washington.
1840. Twenty-five miles south of Clarkesburg.
1850. Twenty-five miles southeast of Parkersburg.
1860. Twenty-five miles south of Chillicothe.
1870. One hundred miles east of Cincinnati.
1880. At Cincinnati.
1890. Fifty miles west of Cincinnati.
1900. At Columbus, Ind.
1910. Forty miles east of Bloomington.

80

LOCATION" OF RESERVE DISTRICTS.

Calling your attention to the close adhesion with
which the center of population follows the thirtyninth degree of latitude. Assuming from this that a
zone created by using as a center a city located in the
line along which this center of population has traversed these many years, you can use any radius which
your committee thinks proper, and not fail to get and
serve a greater number of people within that zone
than if the same radius was applied to any point away
from the line traversed by the center of population
in its westward course.
In this same map you will find marked the center of
manufactures, as given in the 1900 decennial census.
(The center of manufacture for the 1910 census has
not yet been published.) I t seems natural that the
location of factories will influence and have a direct
bearing upon density of population. Tlie predominance of agriculture in the South, while manufacturing
predominates the North, pulls the center of population along a more southern path. Both centers, however, are within the advantages offered geographically
by Cincinnati.
An analysis of the 1910 census shows a population
living within different radiuses of Cincinnati to be:
Within
Within
Within
Within
Within
Within

100 miles
200 miles
300 miles
400 miles
500 miles
600 miles

2, 793,187
8, 678,526
20,880,946
30,901,518
42,939, 812
62,415,102

I t will be seen that more than 20 per cent of the
population of the United States is within 300 miles of
Cincinnati, and nearly three-fourths of the people of
the country live within 600 miles.
The canalizing of the Ohio River, at a total expense
estimated to be approximately $63,000,000; the
United States Government is building locks and
dams which within 10 years assure a 9-foot stage of
water from Pittsburgh to Cairo. This will rehabilitate water navigation and the Ohio Valley will
again come into the position it occupied prior to the
coming of rail transportation. As a feeder to the
Panama Canal the commerce of the Ohio Valley will be
increased manifold. And should your committee select
Cincinnati as the center of the zone to be covered by
a regional bank, you will be placing within that zone
the Ohio Valley and the natural course of commerce,
the center of population, and the center of manufacturing. You will, in fact, be serving the farmer at his
plow in our State and the South; the mechanic at
the forge and at his bench; the miner of coal in Ohio,
West Virginia, and Kentucky; and the greatest number of people of diversified occupation you can find
within any zone you may seek to create.

almost preceded the opportunities of trade. The first
bank west of the Allegheny was founded in 1803.
The charter cf the Miami Export Co. explained its
purpose to be " t o try to develop facilities for shipping
goods" and " t o do a conventional banking business."
In 1814 Cincinnati had three banks to "facilitate
the shipping of goods." And in 1914 Cincinnati has
8 national banks and 30 State banks and trust companies, with bank capital, $19,673,400; bank deposits,
$130,168,021; bank resources, $184,243,857; bank
clearings, 1900, $795,503,000; 1912, $1,369,215,000.
Post-office receipts, 1900, $1,291,088; 1912, $2,621186.90.
Each and all still "facilitating the shipping of
goods," aiding the farmer, the miner, the manufacturer, to bring his products to sale, and enabling all
of them to pay millions of dollars in operating expenses, including an average weekly pay roll of
$1,000,000.
Cincinnati has stood the test of the financial stringencies which have come over the land, and Cincinnati passed through the panics of 1873,1893, and 1907
without any dire effects. Conservative banking, combined with the cordial cooperation of the banks with
each other through the excellent clearing-house association of Cincinnati, has enabled Cincinnati to weather
the storms which some other cities, less favorably situated, have found more difficult to overcome.
No pay roll in this city has been defaulted, and our
people have the utmost confidence in Cincinnati's
financial institutions.
The population of Cincinnati is largely foreign or
of foreign parentage. We particularly are proud of
the great number of Germans in our midst. They
have added to Cincinnati not only artistic temperament and mechanical skill, but have instilled into
Cincinnati the spirit of economy and thrift. Savings
deposited in building associations and savings banks
has made Cincinnati a city of homes, owned by those
who live therein. We are rated conservative. While
Cincinnati has had a natural increase, it has never had
a boom. The diversified occupation of its people has
made it less susceptible to depressions; and the confidence, good will, and desire to do business with our
banks finds reciprocal relations with banks located far
and wide.
Cincinnati is a reserve city under the national-bank
act. It has a Subtreasury of the United States. It
is the main collection office of a United States internalrevenue district. It is the seat of district and appellate United States courts. And to all of which a
regional bank would occupy Government and reciprocal relations.
C.—RECIPROCAL RELATIONS WITH THE

B.—CONFIDENCE OF THE PEOPLE IN CINCINNATI BANKS.

Banking is so closely connected with trading and
commerce, that, in the case of Cincinnati, banking




SOUTH.

The early exchange of products with the South
built up reciprocal relations, with so many tender ties
that no city in the North was so severely touched and

CINCINNATI,

so sorely tried by the events of the late fifties, and by
the war itself, like Cincinnati. The known hospitable
nature of the southerner would preclude the thought
that business is business and all dollars, without sentiment. The direct visit of our business men to these
southern markets and homes established many warm
friendships—friendships that even war could not turn
into hatred. A decade of hesitation and separation
made the desire for a reunion and continuance of old
ties all the more wished for. As Cincinnati's commerce moved by the river it was confined to the
Southwest, principally reaching Cairo, Memphis,
Vicksburg, Natchez, and New Orleans. To reach the
central-south and the southeast was a wish that
reached a crystallized form when, in 1836, Cincinnati
business men resolved to build a railroad directly
south from Cincinnati, and backed the thought up by
a subscription list, pledging $1,000,000 to the project.
That night every house in Cincinnati illuminated its
windows with many candle lights in jubilation over
the new benefits so fondly hoped for. Later in that
same year a strong delegation from Cincinnati attended the "Great Southwestern Railroad Convention ; ; at Knoxville, presided over by Gov. Hayne, of
South Carolina. The convention was attended by
representatives from nearly all Southern States. The
enthusiasm was great, and it did look as if a railroad
from Cincinnati to Charleston would be built without
loss of time. The financial crash of 1837, however,
stopped all plans. Ten years of exploitation followed.
Local capital had built the Little Miami Railroad (now
owned by the Pennsylvania) to the east and the Cincinnati, Hamilton & Dayton Railroad to the north.
Ten years of political unrest followed, and then the
war. The necessities of a railroad to make Cincinnati
the gateway to the South were still as apparent as in
1836. The constitution of Ohio, adopted in 1851,
prohibited any municipality to give a bonus for the
building of a railroad. However, E. A. Ferguson, a
rising, determined young lawyer, advanced the thought
that Cincinnati build and own the railroad and forced
this thought into an enactment of the Ohio Legislature, which was confirmed by city council and accepted
by the people of Cincinnati in a referendum vote submitted on the 20th of June, 1869. The road was built,
taking 10 years in construction. It cost a little over
$23,000,000, and is 336 miles long—reaching directly
south from Cincinnati to Chattanooga. It is under
lease to the Cincinnati, New Orleans & Texas Pacific
Railroad and part of its grand system; reaching the
cream of the South and bringing to Cincinnati not
only the advantage of trade to and with the South,
but fostering the ties of friendship between us and the
South, for which our forefathers so fondly prayed in
1836.
4 6 4 5 8 ° — S . D o c . 485, 6 3 - 2




6

81

OHIO.

In the renewal of lease, which runs for 60 years
from 1901, the city is receiving now an annual rental
of over $1, 000,000, an excellent return on the capital
invested, which in itself has been like bread cast upon
the water, to be returned after many days. This
monetary consideration, however, is small when compared to the real benefit that Cincinnati has in the
close trade ties with the new South and its progressive
people.
When in 1880 the Cincinnati Southern Railway was
ready for traffic, the business men of Cincinnati
invited the merchants of Kentucky, Tennessee, Alabama, Virginia, North and South Carolina, Georgia,
Florida, Louisiana, and Mississippi to join with them
in the dedicatory exercises as Cincinnati's guests. A
banquet in Music Hall was part of the program, and
3,000 men sat down and broke bread. The banquet
was to go down into history as one of the memorable
events in the history of Cincinnati; not because this
feast excelled in food, drink, or oratory, but because
of an unexpected incident, which followed when the
band struck up Dixie, and every mother's son of the
South got up and yelled. The tune changed into
the Star Spangled Banner, and it has always been
conceded that the mentioned sons of the South
cheered louder and longer than their northern hosts.
With this reference it must not be overlooked that
the "bloody shirt" was still being waved in political
campaigns for political purposes. Yet to-day we
glory in the fact that Confederate and Union veterans attend each other's reunions, and decorate the
graves of each other's heroes.
Your honorable committee, we claim the friendship
of the South, and believe that Cincinnati is logically
in a position to take care of the business of such part
of the South that your committee will put into the
zone which you will create, having Cincinnati as its
center.
We claim for Cincinnati that we are the most
northern city of the South and we are the most
southern city of the North, and occupy the indisputable geographical position of being nearest to the
national trend of commerce through the Ohio Valley.
Cincinnati is on the direct line of march of the United
States, over which the center of population has pushed
westward for more than a hundred years.
CINCINNATI

AS A M A N U F A C T U R I N G
DIVERSIFIED

CENTER

OF

MANY

INDUSTRIES.

The transition from merchandising in agricultural
products into a big manufacturing center was a
gradual evolution, made possible by the marvelous
growth and expanding needs of our country.
Cincinnati is located within easy reach of the good
and cheap coal of four States—Ohio, Pennsylvania,

82

LOCATION" OF RESERVE

West Virginia, and Kentucky. Pine wood to its
north, hard wood to its south, limestone at its own
door, it needed only mechanical skilled labor to put
these natural advantages to work. From its very
beginning, Cincinnati counted among its citizens men
of unlimited civic devotion, personal skill, and commercial daring. Martin Baum did not hesitate to
send to Bavaria for chemists, and the first Nicholas
Longworth only exercised keen business foresight
when he brought vintners from the Rhine to cultivate
the Catawba grape on our hillsides.
Cincinnati benefited by the first influx of foreign
emigration in 1836, and these dwellers in Cincinnati
brought to Cincinnati the second influx in 1848, when
the flower of Germany lost in its struggle for liberty,
and they sought in this country the liberty for which
they fought and lost in their own.
The rapid strides of Cincinnati in manufacture, the
sciences, music, and art were made possible because
of the new spirit which came to Cincinnati through
these people.
The large number of substantial kinds of manufacturing and the absence of great predominence of
any one such kind is shown in the following table.
The first column of figures represents the percentage
which the total value of the products of the largest
single kind of manufacturing is to the total manufactured products of the metropolitan center of Cincinnati (1910 census). The second column shows the
percentage which the three largest kinds together is
of the total of all manufactured products. The third
column shows the percentage of the six largest kinds.
The fourth column shows the number of kinds of
manufacturing according to the United States census,
the value of whose products is at least one-half of
1 per cent of the total value of manufactured products:

Largest.

Cincinnati
Cleveland
St. Louis
Detroit
Minneapolis and St. Paul
Pittsburgh

Three
largest.

Six
largest.

Per cent. Per cent. Per cent.
10.0
24.5
39.8
13.6
34.7
48.7
32.6
19.0
43.5
22.1
33.7
47.3
32.2
45.7
59.0
40.9
64.8
73.7

Number
of kinds
one-half
of 1 per
cent and
larger.

27
23
27
22
21
13

From this it will be observed that while the largest
kind of industry in Cincinnati manufactures only 10
per cent of the total value of its products, in Cleveland, St. Louis, Detroit, Minneapolis, and St. Paul,
and Pittsburgh, the single largest kind of industry
represents from 13.6 per cent to 40.9 per cent of the
total products of manufactures in these cities. This
also shows a greater predominance of a single kind
of industry in all of these cities than in Cincinnati.
The percentage of the three largest kinds in Cincinnati is 24.5 per cent, while in other cities it ranges
from 32.6 per cent to 64.8 per cent.




DISTRICTS.

For the six largest industries Cincinnati's figures are
39.8 per cent, while with the other cities it runs from
43.5 per cent to 73.7 per cent.
In Cincinnati we have 27 kinds of industry, the
products of each of which is at least one-half of 1 per
cent of the total products of manufacture, while with
other cities large industry is concentrated among a few
kinds, as shown in the fourth column of the above
table.
Attached is a schedule showing the value of the
products of the 27 industries in Cincinnati of one-half
of 1 per cent or more of the total:
Total—all industries

$260, 399, 619

Foundry and machine shop products
Slaughtering and meat products
Clothing, men's, including shirts
Boots and shoes, including cut stock and findings
Printing and publishing
Liquors, malt
Liquors, distilled
Carriages, wagons, and materials
Lumber and timber products
Bread and other bakery products
Furniture and refrigerators
Tobacco manufacture
Leather, tanned, curried and finished
Copper, tin and sheet iron products
Paint and varnish
Clothing, women's
Stoves and furnaces
Coffee and spice, washing and grinding
Confectionery
Cars and general shop construction and repairs by
steam railroad companies
Ink, printing
Musical instruments
Fertilizers
Flour-mill and gristmill products
Leather goods
Safes and vaults
Patent medicines, drugs, and preparations
FORCEFUL FACTS ABOUT

26,186,468
19, 922, 614
17, 646,324
14, 998, 672
13, 998, 611
11, 016,171
8, 744, 761
8,157, 665
7,401, 558
5, 691, 232
5, 646, 080
5,496, 839
5, 058, 920
4,470,093
3,879,810
2,912,862
2,324,950
2,110,024
2,029,075
1,969,014
1,884,894
1,752, 617
1,675,679
1,635,493
1,518,778
1,401,157
1,293,009

CINCINNATI.

Center of market, being within 24 hours of 76,000,000 people.
The largest center of hardwood lumber in the world.
Only city in the United States owning a steam railroad.
Leads the world in the manufacture and quality of
machine tools.
Leads the world in the manufacture of woodworking machinery.
Produces more soap than any other city in the
United States.
Has the largest and most complete bottle factory
in the world.
Leads the world in the manufacture of prisons and
ornamental iron.
Has the largest office-furniture factory in the world.
Center of the largest soft-coal producing fields in the
world.
Has the largest tannery under one roof in the world.

83

CINCINNATI, OHIO.

Has the largest trunk factory in the United States.
Ranks first also in the manufacture of acids, bookcases, field musical instruments, playing cards, printing inks, laundry machinery.
Has a greater variety of factories than any other
city in the country.
Ranks third in the manufacture of u tailor to the
trade 7 ' clothing.
Greatest lithographing center in the United States.
First compressed yeast factory in the United States,
which factory to-day distributes 90 per cent of all the
compressed yeast made in this country.
Ranks second in the production of women's cloaks
and men's caps.
Leading market in the country for medium-priced
clothing.
Leads in the export of special pianos built in special
designs for tropical and other countries.
Center of the greatest carriage district in the country.
Largest distributing center for whisky in the world.
Leads in the production of cigar boxes.
Is a leading shoe-manufacturing center.
Ranks third in the manufacture of electrical machinery.
Makes more playing cards than any other city in the
world.
Has the largest leather supply house and the largest
harness factory.
Has the second largest factory in the world for the
manufacture of baseballs and baseball supplies.
The variety of substantial mnaufacturing groups
represented here; the variety of kinds of trade; the




conservatism of the population; the soundness and
conservatism of the banks; and the absence of the
mushroom growth of the city all make Cincinnati one
of the last places to feel hard times, or to have its
financial affairs seriously affected by failure or disaster
of one kind of crop or of one line of industry.
CONCLUSION.

The Cincinnati Chamber of Commerce respectfully
asks that your committee consider the facts represented
by the several captions of this memorandum, viz:
A. The trend of commerce is through the Ohio Valley.
B. The confidence of the people in Cincinnati
banks.
C. Our reciprocal relations with the South.
D. Cincinnati as a manufacturing center of many
diversified industries.
I t had been our intention of presenting these in
pyramid form, each caption to be a block of granite, all
completing the structure. We had intended to rest
this pyramid upon a solid foundation, made up of their
careful consideration by your committee, cemented, as
it were, by your feeling of good will.
We will eliminate the picture we had so beautifully
drawn, and close by offering to you our prayers that
whatever your conclusion be that you will disappoint
but few and satisfy man^. We hope that the 600,000
people making up metropolitan Cincinnati, and their
millions of friends—south, north, east, and west—may
be among the many whom your honorable committee
will please.




00
CINCINNATI, OHIO.

t-1
o
o
i>

H
M

O

o
w
w
J/2
y
H
C
O
H
w
M
Q
H
so




85

CINCINNATI, OHIO.

CINCINNATI, OHIO.

L—<

S a n k s

13a.ixks

94e>

Capital w
CwpiiaLjz*z

Surplus

S u r p l u s

Ooo.

4 8 0 . 4 6 2 . 0 0 0 .

D e p o s i t ?

f

Opposite

f3<m.kj»

S75,

314

ulLpLial.
f

w

Surplus-

3 6 , 3 9 4 , 0 0 0

Batiks
6 1 9
Gxpltal w

D e p o s i t s
>126,169,000-

S u r p l u s

4 SO,

10&.000.

Deposits

^ p o s i t s .

\

i s 5

1

e f k

t

o o o

i

^
\

A
BANK DIRECTORY, 1913.

BANKING.

3.

86




LOCATION" OF RESERVE DISTRICTS.

CINCINNATI, OHIO.

RAILROADS.

19.




87

CINCINNATI, OHIO.

CINCINNATI BANK ACCOUNTS.

23.

88




LOCATION" OF RESERVE DISTRICTS.

MAILS F R O M A N D TO CINCINNATI.




CLEVELAND, OHIO.

CLEVELAND, OHIO
BRIEF.
The Reserve Bank Organization Committee:
We suggest the division of the United States into
11 Federal reserve districts, approximately as outlined on the map which we submit for your consideration.
We believe that the purposes of the Federal reserve
act can not be well served with a smaller number of
districts. Any attempt to limit the number further
we think would necessitate either overwhelming banks
in the great financial centers or districts covering too
large areas throughout the rest of the country.
We have outlined each of the districts with regard
to "the convenience and customary course of business," attempting also to have each as self-contained
as possible with respect to borrowing needs and lending
power, and to divide the resources of the country
equitably if not equally. The smallest banks of the 11
we suggest will serve districts that are certain to grow
in financial strength. We have suggested the location
of the bank in each district in a city which seems to us
to be now or potentially the trade center, readily accessible, and with adequate commercial and financial
strength; and we believe these qualifications are best
indicated, not merely by present size and position,
but also, and perhaps more reliably, by the rate and
character of recent growth.
The districts we suggest are each described on a
schedule which we have designated as "Exhibit A,"
the headquarters being as follows: District 1, Boston;
district 2, New York; district 3, Philadelphia; district 4, Richmond; district 5, Cleveland; district 6,
Atlanta; district 7, Chicago; district 8, St. Louis;
district 9, Dallas; district 10, Minneapolis; district 11,
San Francisco.
In district No. 5 we have included the entire State
of Ohio, 9 counties in western New York, including
Buffalo and Rochester, 25 counties in western Pennsylvania, including Pittsburgh and Johnstown, the
4 counties constituting the "Panhandle" of West
Virginia, including Wheeling, and 19 counties of
southeastern Michigan, including Detroit, Lansing, and
Bay City. Within this district are national banks
having a total capital and surplus of $230,360,000
which would be members of a Federal district bank
with a capital of $13,800,000. The deposits of these
banks aggregate $1,042,000,000. The State banks in




the district have capital and surplus aggregating
$251,300,000 and deposits of $1,336,000,000. The
population of the district, according to the census of
1910, was 10,287,292.
We believe it is obvious that a district in the North
between New York and Chicago is absolutely necessary to limit the tremendous banking power acquired
by those two centers of finance under our old law, as
well as to enable each of those centers to serve its own
community best. The district reserve banks in New
York and Chicago will necessarily be greater than any
others, even when such a midway district is established. We believe it essential, however, to attach to
other centers as much territory as can reasonably be
separated from the New York district, and some of the
territory which under the old conditions has centered
its banking in Chicago.
Fortunately, between these two great centers there
lies a natural district, which we believe is as cohesive
in its industries, commerce, exchanges, and financial
problems as can be found anywhere in the world in a
like area. This is the great iron and steel producing
territory centering in northern Ohio, a district which
has such manufacturing advantages in varied lines,
added to great mineral and agricultural resources, that
it has developed a remarkable diversity of industries
and commerce, loosely allied, not discordant, yet offering a distribution of financial requirements which
approaches the ideal.
This district has become so great in manufacturing
that its agricultural resources are often forgotten.
Census figures show, for example, that Ohio ranks fifth
among the States in number of farms, sixth in value
of farm property, sixth in production of corn, fifth in
tons of hay produced, sixth in value of potatoes grown,
third in production of wool, sixth in pounds of butter
produced, sixth in gallons of milk, third in dozens of
eggs; and the list might be extended. But the meeting of bituminous coal and iron ore in this district has
made it preeminent in most forms of iron and steel
production, the great barometer of business; Ohio is
fourth in production of bituminous coal, and second
in production of pig iron. This region or district has,
moreover, such advantages for the distribution as well
as production of so many articles of manufacture, not
only those using iron and steel as their chief materials,
91

92

LOCATION" OF RESERVE DISTRICTS.

that it has taken on chief importance as an industrial
district. The census shows in this district nine manufacturing cities of more than 100,000 population, as
follows (in order of rank): Cleveland, Pittsburgh,
Detroit, Buffalo, Cincinnati, Rochester, Columbus,
Toledo, and Dayton. These cities alone produce annually manufactures valued at more than $1,500,000,000.
The census lists of leading classes of products in these
cities show a remarkable diversity Among the classes
showing the greatest value of products in each city
are foundry and machine-shop products, primary iron
and steel, automobiles and automobile parts, packinghouse products, soap, men's and women's clothing,
boots and shoes, printing and publishing, petroleum
refining, flour and grist mill products, bakery products, coffee and spice roasting and grinding, tobacco
manufactures, malt and spirituous liquors, brass and
bronze products
We believe it is demonstrable that the seasonal
demands for loans in the commerce and industries of
this district are as evenly distributed throughout the
year as would be possible in any district that could be
outlined anywhere. Even were the district limited to
iron and steel manufactures, the demand would be
distributed by the very fact that the processes are all
carried on within its borders, from unloading of iron
ore to assembling the most highly finished products.
For example, the season of the year when Cleveland
has the least demands for loans on its industries, particularly its ore, pig iron, and primary steel, is the very
season when Detroit has its greatest demands for
financing its automobile products. We might multiply instances, but we believe the probability that
the district is likely to be always self-reliant is indicated sufficiently by a table and accompanying chart
which we have prepared and marked " Table A" and
"Chart I," showing percentages of reserves in each of
the reserve cities in this district at the date of each
comptroller's call for a period of three years.
With all the diversity of industry, commerce, and
agriculture in this district, there is nevertheless a certain relation even between the most diverse. In
Cleveland, for example, our women's wear manufacturers not only employ other producing members of
the families of our machinists, but some of our largest
foundries are owned by textile goods manufacturers,
and other interrelations make for understanding of
each other's problems and mutual helpfulness. We
believe that the bankers of all the district we have
outlined would have sympathetic understanding, if
not absolute knowledge, of the financial problems of
all the manufacturers, miners, farmers, and merchants of the district. Now, this would not be true
if the district were to include much of the tobacco and
cotton territory south of the Ohio River, where the
agricultural, commercial, and industrial conditions are
utterly divergent from those of Ohio. We think there




would be a lack of mutuality, which would be likely to
affect the southern territory unfavorably, because of
the preponderance of northern problems and requirements and the probable majority of northern stockholders and directors.
The location of the bank to serve this district will
doubtless lie between Cleveland and Cincinnati,
because the other large cities within the district are
so near its eastern and western boundaries. However,
Pittsburgh has also claimed to be able to serve Ohio.
Your choice lies possibly between these three. You
will, of course, select the city which can, in your judgment, best serve the district. I t is our purpose in this
presentation to assist you in forming a correct judgment; we shall try to avoid mere local pride, and present only the facts and figures that have convinced us,
as we think they must convince you, that the business
interests of this district would be best served by locating the headquarters bank at Cleveland.
We are frank enough to say that no city in this district can substantiate the claim, as Chicago can, for
instance, that the great bulk of the trade of the proposed district centers there. So if you establish a
district with Ohio as its great nucleus you will doubtless
place the bank in the city that best meets the following
requirements:
(1) Satisfactory communication throughout the district.
(2) Proximity to center of traffic and exchanges of
the district.
(3) Financial, commercial, industrial, and civic
strength in itself.
(4) Satisfactory relations with the entire district.
We shall confine our evidence to a comparative showing for the three cities under each of these four heads.
The few essential facts and figures have been compiled
with great care, accuracy being sought at whatever
cost; and we believe they are absolutely reliable.
1. Communication.—It is probable that the communication throughout the district from any one of
the three cities would be satisfactory to serve the purpose of the bank. I t is certainly true that a letter
mailed from Rochester, Johnstown, Cincinnati, or
Saginaw, cities in the remotest parts of the district, at
the close of banking hours on one day would reach
Cleveland in time to receive attention at the beginning
of banking hours on the next day, and this would even
be true of most, if not all, communities of eastern
Kentucky and eastern Tennessee, if the district should
extend so far south. I t is worthy of note, furthermore, that a letter mailed at the close of banking hours
at any one of seven of the other district reserve cities
indicated on our map would reach Cleveland in time
to receive attention during the following morning.
Moreover, we believe it can be shown that Cleveland
can be reached more quickly by most of the people in
the district than either of the other cities. The de-

CLEVELAND, OHIO.

batable territory, so to speak, is all within the State of
Ohio. I t is obvious that Pittsburgh can be reached
by Pennsylvania towns more quickly than can Cleveland or Cincinnati; it is obvious that Cincinnati could
be reached by towns in Kentucky more quickly than
Cleveland, if Kentucky were included in the district;
it is obvious that Cleveland can be reached by the
Michigan and New York points more quickly than
either of the other cities. But Ohio lies between the
3 cities. Of the 37 cities of Ohio containing a population of 10,000 or more in 1910 (taken as indicating
density of population) 17, with a total population of
1,130,000, can reach Cleveland most quickly; 14 cities,
with a population of 902,000, can reach Cincinnati
most quickly; and 6, with a population of 105,000,
can reach Pittsburgh most quickly. Fifteen of these
cities, with a population of 1,064,000, are a longer
journey from Pittsburgh than from either Cincinnati
or Cleveland; 17, with a population of 427,000, are
farthest from Cincinnati; while only 4, with a population of 78,000, are farthest from Cleveland. To
make the point clearer by a system of scoring, if 100
points are allowed for the quickest communication and
50 for the second quickest, the score is, Cleveland,
2,350; Cincinnati, 1,550; and Pittsburgh, 1,350.
2. Location with respect to center of traffic and exchanges.—There are 88 counties in Ohio. The population of the 44 counties north of a line drawn approximately through the center of the State is
2,547,721; of the 44 southern counties, 2,219,400.
Density of traffic, ^hich means density of exchanges,
can be indicated fairly by railroad facilities for handling the traffic. There are 40 main-line tracks in
service on the railroads traversing the northern part
of Ohio and 23 main-line tracks for the railroads
traversing the southern part. In the north half of
the State 10 railroads have 2 or more main-line tracks;
in the south half, only 3 have as many as 2 main-line
tracks. The total double-track mileage in Ohio, as
shown by the most recent map of the Ohio PublicService Commission, is 2,107 miles. Of this doubletrack mileage, more than 1,468 miles, or nearly 70
per cent, lies in the northern 44 counties; not quite 639
miles, or a little over 30 per cent, is in the south half
of the State.
With respect to the railroad situation of Cleveland
in this part of the State, it is only necessary to say that
every eastern trunk line of the United States enters
Cleveland, and that the city is on the principal travel
highway*between New York and Chicago. Moreover,
and equally important, Cleveland is on the most direct
line from the iron ore of the Northern States to the
bituminous-coal deposits of this district. Practically
all of the shipping carrying the iron-ore trade of the
Lakes (amounting to 50,000,000 tons last year) is
directed from Cleveland, and about 80 per cent of the




93

great fleets of vessels engaged in the ore and coal trade
are managed at Cleveland. You doubtless have in
mind the fact that the tonnage through the Detroit
River to and from Lake Erie ports is greater than the
total port tonnage of New York, London, and Liverpool combined. Furthermore, the value of this
tonnage, as estimated by the United States Government engineer at Detroit, was more than $800,000,000
in 1910, a far greater sum than the total reported by
the census for the value of both the agricultural and
manufactured products of the States of Kentucky and
Tennessee combined. This indicates the unreliability
of the argument that Cleveland is a less desirable
center for this district because it has the lake to the
north. The lake is a far more valuable source of
business and exchanges than most equal areas of land.
The Great Lakes furnish the cheapest freight haul in
the world, so that the iron ore, coal, and limestone for
the production of pig iron can be assembled on the
south shore of Lake Erie more cheaply than in any
other of the great furnace districts in the North. We
note also that nearly all the cities you have been considering as locations for district banks are situated
not in the geographic centers of their districts, but at
the points where lines of communication center, which
happen to be, in most cases, at or near one edge of each
district; and especially when any district has any
frontage on navigable water, the trade of the district
is likely to seek a port city.
3. Financial,
commercial, industrial, and civic
strength.—Cleveland is the largest city between the
Atlantic seaboard and Chicago, and its population is
exceeded by only three cities of the seaboard—New
York, Philadelphia, and Boston—and two cities of
the interior, Chicago and St. Louis. The United
States census of manufactures for 1909 shows that
the value of the manufactured product of Cleveland
is exceeded only by that of four cities, New York,
Chicago, Philadelphia, and St. Louis. Cleveland's
rapid growth to this position is due largely to its
strategic location and transportation facilities, which
have been the chief of its manufacturing advantages.
These natural and economic advantages, aided by
individual enterprise and the application of intelligent
public spirit in cooperative effort, have produced the
phenomenal but steady and substantial advance of
Cleveland among the cities of the country. In 1850
Cleveland was forty-third in population rank; to-day
it is the sixth city.
As indicating the volume of trade now centering in
Cleveland, we give below a table of a few of the leading commodities handled by Cleveland business
houses, with the approximate volume of annual business conducted through Cleveland banks in each line,
as estimated from reports furnished by a large number of leading business houses, or from most recent

94

LOCATION" OF RESERVE

census reports. The financial needs of all of these
lines are distributed over a large part of the year.
Iron ore
$64,000,000
Bituminous coal
56,000,000
Petroleum and its products, etc
33, 500,000
Lumber
13,500,000
Stone
13,000,000
Grain and hay
19,000,000
Live stock and packing-house products
40, 000,000
Primary iron and steel products
36,000,000
Foundry and machine-shop products
48,000,000
Automobiles and automobile parts and accessories
(manufactured) 1
43,000,000
Men's and women's wearing apparel (factory product). 32,000,000

We believe that the selection of normal trade centers
for the districts you establish can be made almost
unerringly by a study of the rate and character of
growth of the chief cities in each district. The present
size, trade importance, and financial condition of the
cities considered are of course most important factors;
but you are planning for the future as well as the present, and growth is, we believe, a clearer index of
probable strength than present size, if the two factors
do not coincide. We believe, therefore, that we can
best aid you in selecting the headquarters for this district by showing the history of recent growth in Cleveland, Pittsburgh, and Cincinnati.
Before considering the figures of financial growth,
you should be advised that since the enactment of the
national banking law Cleveland is unique among these
three cities in having reported not one single failure
of a national bank; no depositor in any national bank
in Cleveland has lost one penny.
In order to limit as severely as possible the figures
which we feel must be brought to your attention, we
have confined our evidence of relative growth to a very
few index items. These are not chosen for the reason
that they favor Cleveland; we believe that all the recorded data would indicate equally well the indisputable fact of Cleveland's advance; but we believe the
following items will be sufficient for reliable comparison. For each item we give the percentages of increase for the most recent 10-year periods for which
authoritative data are available, as follows:
Period.
Population
Post-office receipts
Value of manufactures
Clearing-house exchanges
Deposits, all banks

1900-1910
1904-1913
1899-1909
1904-1913
1904-1913

Cleveland.
46.9
116.4
95.1
57.8
66.1

Cincinnati.
11.8
61.3
37.3
16.1
37.5

Pittsburg.
18.2
107.5
11.1
23.9
36.2

Tables B, C, D, E, and F, and Charts II, III, IV, V,
and VI, which we offer in evidence, show clearly the
annual growth of the three cHies as indicated by these
items.
Civic conditions may seem to be a minor point in
your consideration of a purely economic problem, but
1
Part of this total is probably included in the value of " Foundry and machineshop products."




DISTRICTS.

we believe they have a very distinct bearing. Cleveland has a deserved reputation for freedom from
u
g r a f t " in its municipal affairs; but that is a negative
virtue, and is perhaps only a minor evidence of the
alert progressive spirit which is constantly manifested
by the great body of our citizens and their leaders
in many ways. For example, Cleveland enjoys the
lowest death rate among the large cities of the country, due in part to climatic conditions, but also in
large part to intelligent municipal sanitation. Cleveland was the first American city actually to begin putting into effect a great plan for grouping its public
buildings in a "civic center." Cleveland's experiments in charities and correction are attracting worldwide attention and serving as models for other communities ; the famous Cooley Farm Colony, the Cleveland Federation for Charity and Philanthropy, and the
new " Cleveland Foundation" are examples. In
Cleveland has been evolved the unique street-railway
franchise (which may be credited largely to the work
of the late Mayor Tom L. Johnson and the late United
States Judge Robert W. Tayler) the essential features of which are the control of service by the city,
the kind of service the people's representatives require
at a rate of fare which will pay its cost plus 6 per cent
upon an arbitrated valuation; and the consequent satisfaction of the people because a problem is solved which
in other cities is a constant source of disturbance of
both business and banking conditions. The citizenship of Cleveland expresses itself not only at the polls,
but also through civic and commercial organizations,
in which effective voluntary service for the improvement of living and working conditions in Cleveland
is rendered most freely by a very large number of able
men.
These facts we cite as reasons for the growth of
Cleveland in the past, and as evidence of its healthy
condition and probable continued growth; so that in
the future, still more than at present, Cleveland is
likely to be the undisputed trade center of this district.
4. Relations with district.—It is natural that in a
district like this the smaller communities and rural
territory would all prefer to be attached to the nearest
large city with which trade relations are closest; and
it is natural, too, that none of the three cities under
consideration should name either of the others even
as a second choice, because there has been a friendly
but intense rivalry between these cities. Since Cleveland continues to outgrow the other two, we believe
that it should not be subordinated to either. Yet
Pittsburgh and Cincinnati can not be expected to yield
uiigrudged precedence to their successful rival for
preeminence in the Middle West.
But the business men of all this district enjoy
friendly, profitable, and even cordial relations with
each other, and we are certain, that there would be no
real disturbance, much less violence, done to existing

CLEVELAND,

trade conditions in Pittsburgh, Cincinnati, Buffalo,
Detroit, or Rochester, or any other locality within the
district, through the establishment of a bank at Cleveland. Six hundred and twenty-four national and 600
State banks within the district now carry accounts
with Cleveland national banks, besides 279 national
and 121 State banks beyond the district. About 500
banks in the district have designated Cleveland banks
as reserve agents. Cleveland has 45 per cent of the
total of all ''bank deposits" in all Ohio banks. We
have heard directly from 233 banks in northern and
central Ohio who name Cleveland as their first choice
for the location of the district bank, as well as 20
banks in southern Ohio, 4 in southeastern Michigan,
5 in western Pennsylvania, 2 in New York, and even
7 in Indiana; and we are certain that many other
banks in surrounding States and in southern Ohio
would find Cleveland perfectly acceptable, if not their
first choice. To show that our city has the active
good will of business men in its immediate trade territory, we shall submit to you copies of resolutions
from commercial and trade organizations in 33 Ohio
cities and towns, resolutions formally adopted by
clearing house associations in some of the cities, and
editorials that have appeared in several Ohio newspapers outside of Cleveland.
We submit these facts and considerations with the
conviction that they establish clearly the desirability
of such a district as we have outlined, with Ohio as its
center, and with its reserve bank at Cleveland.
Respectfully submitted.
J . J . SULLIVAN,

Chairman, Clearing House Committee;
NEWTON

D.

BAKER,

Mayor of Cleveland;
WARREN

S. HAYDEN,

President, Cleveland Chamber of Commerce;
ELBERT H .

BAKER,

President, Plain Dealer Publishing Co.;
F. H.

GOFF,

President, Cleveland Trust Co.;
Executive Committee.
Representing committees appointed by the Cleveland Clearing House Association, Cleveland Chamber
of Commerce, Cleveland Builders Exchange, Cleveland
Association of Credit Men, Cleveland Real Estate
Board, Cleveland Advertising Club, Industrial Association of Cleveland, Cleveland Rotary Club, Lakewood Chamber of Commerce.
FEBRUARY

17,

1914.
EXHIBIT

A.

S C H E D U L E OP F E D E R A L R E S E R V E

DISTRICTS.

(Figures are chiefly from the report of the Comptroller of the Currency for 1913,
supplemented by latest reports of State banking departments of some States.]

District No. 1.—All of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island; three counties of eastern Connecticut
(Windham, Tolland, New London); the northeastern part of New
York, going west as far as the western boundaries of Wayne, On




OHIO.

95

tario, and Steuben Counties, and southeast as far as the southern
boundaries of Delaware, Green, and Columbia Counties.
Capital of reserve bank at Boston
$12,100,000
Capital and surplus, national banks
202,150,000
Deposits, national banks
811, 500,000
Capital and surplus, all other banks
215,000,000
Deposits, all other banks
2, 500,000,000
District No. 2.—Thirteen counties of New York, including and
surrounding Greater New York, going north as far as the northern
boundaries of Dutchess, Ulster, and Sullivan Counties; the 5
western counties of Connecticut not included in district No. 1;
the 11 northern counties of New Jersey, as far south as the southern
boundaries of Middlesex, Somerset, and Hunterdon Counties.
Capital of reserve bank at New York
$19,400,000
Capital and surplus, national banks
323, 600,000
Deposits, national banks
1, 700,000,000
Capital and surplus, all other banks
400,000,000
Deposits, all other banks
3,100,000,000
District No. 3.—Forty-two eastern counties of Pennsylvania, as
far west as the eastern boundaries of Potter, Cameron, Clearfield,
Cambria, and Somerset Counties; all of Delaware; and the 10
southern counties of New Jersey not included in district No. 2.
Capital of reserve bank at Philadelphia
$10,300,000
Capital and surplus, national banks
171, 550,000
Deposits, national banks
693,100,000
Capital and surplus, all other banks
170, 000, 000
Deposits, all other banks"
635,000,000
District No. 4-—All of Virginia, Maryland, District of Columbia,
North and South Carolina, and all of West Virginia except the 4
counties of the "Panhandle."
Capital of reserve bank at Richmond
$6,400,000
Capital and surplus, national banks
106,400,000
Deposits, national banks
395,000, 000
Capital and surplus, all other banks
115,000,000
Deposits, all other banks
450,000,000
District No. 5.—All of Ohio; the 25 western counties of Pennsylvania not included in district No. 3; the 9 counties of western New
York not included in district No. 1; the 4 counties of the " Panhandle " of West Virginia (Brook, Hancock, Marshall and Ohio);
19 counties of southeastern Michigan, as far as the western boundaries of Hillsdale, Jackson, Ingham, Shiawassee, Saginaw and
Bay Counties.
Capital of reserve bank at Cleveland
$13,800,000
Capital and surplus, national banks
230, 360,000
Deposits, national banks
1,042,000,000
Capital and surplus, all other banks
251,300,000
Deposits, all other banks
1,336,000,000
District No. 6.—All of Kentucky, Tennessee, Georgia, Florida,
Alabama and Mississippi.
Capital of reserve bank at Atlanta
$6,050,000
Capital and surplus, national banks
100,800,000
Deposits, national banks
312,000,000
Capital and surplus, all other banks
125,000,000
Deposits all other banks
360,000,000
District No. 7.—All of Illinois, Iowa, Indiana, and Wisconsin,
and the 65 counties of Michigan not included in district No. 5.
Capital of reserve bank at Chicago
$14,000,000
Capital and surplus, national banks
233,290,000
Deposits, national banks
1,279,400,000
Capital and surplus, all other banks
260,000,000
Deposits, all other banks
1,600,000,000
District No. 8.—All of Missouri, Arkansas, Louisiana, Kansas,
Nebraska and Colorado.
Capital of reserve bank at St. Louis
$8,080,000
Capital and surplus, national banks
134,700,000
Deposits, national banks
695,700.000
Capital and surplus, all other banks
173,000,000
Deposits, all other banks
710,000,000

96

LOCATION" OF RESERVE DISTRICTS.

District No. 9—All of Texas, Oklahoma, and New Mexico.
TABLE D . — M a n u f a c t u r e s statistics.
Capital of reserve bank at Dallas
$5, 900, 000
[From United States census, 1910.]
Capital and surplus national banks
97, 900, 000
Deposits national banks
336,000, 000
Capital and surplus all other banks
45,000,000
Capital invested.
Value of products.
Deposits all other banks
140,000. 000
Year.
Cleveland. Cincinnati.!Pittsburgh, j Cleveland. Cincinnati. Pittsburgh.
District No. 10—All of Minnesota, North Dakota, South Dakota,
Montana, Wyoming, Idaho, and Washington.
!
1
1
1899.... $101,243,000 $103,467,000 $211,774,000 $139,356,000 $141,678,000 $218,198,000
Capital of reserve bank at Minneapolis
$5, 300, 000
1904.... 156,321,000' 130,272,000 260,765,000! 171,924,000 166,059,000 211,259,000
1909.... 227,397,000 j 150,254,000 283,139,000 271,961,000 194,516,000 243,454,000
Capital and surplus national banks
87, 700, 000
Deposits national banks
505, 200, 000
Capital and surplus all other banks
80, 000, 000
T A B L E E.—Annual exchanges of the clearing houses of Cleveland,
Deposits all other banks
415, 000,000
Cincinnati, and Pittsburgh for a period of 10 years, each ending
District No. 11.—All of California, Oregon, Nevada, Utah, and
September 30.
Arizona.
[From reports of the Comptroller of the Currency.)
Capital of reserve bank at San Francisco
$6, 500, 000
Capital and surplus national banks
108, 200, 000
Year.
Cleveland.
Pittsburgh.
Cincinnati.
Deposits national banks
460, 700, 000
110, 000, 000
Capital and surplus all other banks
1903
$804, 850,901 $1,153, 865,500 $2,381 454,231
Deposits all other banks
725, 000, 000
1904
700, 078,208 1,196, 854,400
1,997, 603,459
1905
754, 739,346 1,192, 662,600
2,431, 366,780
T A B L E A.—Reserve -percentages of the 5 reserve cities in district 5,
1906
812, 973,376
1,291, 921,250
2,630, 996,408
averages of the 5 cities, and averages of all reserve cities in the United 1907
914, 658,049 1,399, 770,100
2,761, 441,799
States, at dates of comptroller's calls, 1911-1913, inclusive.
1908
766, 518,416 1,202, 794,250
2,190, 479,976
Date.

Cleveland.

Cincinnati.

Columbus.

Detroit.

Pittsburgh.

Average.

All
reserve
cities.

1911.
Jan. 7
Mar. 7 . . .
June 7...
Sept. 1...
Dec. 5 . . .

26.60
29.65
32.82
29.66
26.57

32.37
30.97
28.17
25.19
27.82

22.93
27.10
26.19
25.49
25.86

22.97
28.94
30.67
28.69
27.73

25.65
27.21
26.86
25.31
26.37

26.10
28.77
28.94
26.87
26.87

27.11
28.49
28.37
26.97
26.41

1912.
Feb. 20..
Apr. 18..
June 14..
Sept. 4...
Nov. 26..

31.51
26.44
29.35
29.86
26.54

29.92
29.85
30.41
27.45
25.65

27.58
25.45
24.54
25.56
23.83

25.74
27.30
29.06
25.61
22.62

27.96
26.28
25.18
27.67
24.05

28.54
27.06
27.71
27.23
24.54

28.00
27.30
27.21
26.18
25.32

1913.
Feb. 4 . . .
Apr. 4 . . .
June 4 —
Aug. 9...
Oct. 21...

30.86
26.14
27.35
28.43
29.73

30.59
30.05
26.86
28.45
26.73

28.33
25.44
25.45
24.54
25.26

25.14
24.84
28.33
29.39
25.72

29.54
24.87
23.98
25.91
26.09

28.89
26.27
26.39
27.34
26.71

26.96
25.61
26.33
26.52
25.72

1909
1910
1911
1912
1913.

TABLE B . — P o p u l a t i o n .
Cleveland.

1,101, 007,000
1,271, 232,000

1,326, 713,000
1,277, 997,000
1,276, 279,000
1,347, 123,000
1,329, 668,000

TABLE F . — D e p o s i t s in all

2,223, 335,000
2,604, 069,000
2,539, 143,000
2,687, 970,000
2,951, "",000

banks.

CLEVELAND.

Year.
1904
1905
1906
1907
1908
1909
1910
1913
1912
1913

Pittsburgh.

Cincinnati.

825, 246,000
992, 803,000

1,001 569,000

National.

State.

$54,997,000 $139,892,000
56,954,000 162,936,000
60,283,000
172,627,000
58,252,000 173,556,000
65,520,000 162,900,000
67,386,000 180,277,000
69,628,000 187,732,000
72,974,000 205,854,000
78,660,000 214,164,000
84,894,000 229,876,000

Total.
$194,889,000
219,890,000
232,910,000
231,808,000
228,420,000
247,663,000
257,360,000
278,828,000
292,824,000
314,770,000

CINCINNATI.

Year.
Population. Rank. Population. Rank. Population. Rnnk.
560,663
381,768
261,353
160,146
92,829
43,417
17,034

1910
1900
1890
1880
1870
1860
1850..
TABLE

6
7
10
12
15
21
43

364,463
325,902
296,908
255,139
216,239
161,044
115,435

13
10
/ 9
8
8
7
6

533,905
321.616
238.617
156,389
86,076
49,221
46,601

8
11
13
13
16
17
13

1904
1905
1906..
1907
1908
1909
1910
1911
1912
1913

$32,689,000
38,410,000
42,632,000
47,333,000
45,331,000
48,438,000
54,720,000
59,535,000
58,108,000
59,920,000

$94,390,000
100,810,000
106,071,000
108,851,000
114,004,000
117,054,000
126,470,000
131,708,000
127,029,000
129,663,000

$143,204,000 $157,627,000
162,667,000
157,599,000
170,190,000 169,464,000
163,851,000 172,930^ 000
169,907,000
165,579,000
185,759,000 177,685,000
188,827,000
179,955,000
201,135,000 191,756,000
210,693,000 202,810,000
189,831,000 219,851,000

$300,831,000
320,266,000
339,654,000
336,781,000
335,486,000
363,444,000
368,782,000
392,891,000
413,503,000
409,682,000

$61,701,000
62,400,000
63,439,000
61,518,000
68,673,000
68,616,000
71,750,000
72,173,000
68,921,000
69,743,000

C.—Postal receipts for the years 1904 to 1913, inclusive.
Cleveland.

1904.
1905.
1906.

1907.
1908.
1909.
1910.
1911.
1912.
1913.




Cincinnati.

$1,420, 498.00
1,565, 305.65
1,753, 588.58
1,943, 895.96
1,952, 902.11
2,057, 907.53
2,300, 006.86
2,521, 555.67
2,696, 530.34
3,073, 638.38

$1,781, 367.81
1,947, 211.02
2,083, 078.40
2,179, 672.94
2,171, 128. 72
2,298, 581. 71
2,458, 395.58
2,541, 586.24
2,621, 186.90
2,873, 070.66

$1,511, 653.48
1,622, 343. 16
1,835, 960.01
2,046, 951.72
2,017, 427.64
2,134, 086.78
2,411, 111.78
2,634, 097.55
2,922, 842.55
3,136, 125.09

PITTSBURGH.

Pittsburgh.
1904
1905
1906
1907
1908
1909
1910
1911
1912
1913

CLEVELAND, OHIO.

CHART I
Reserve percentages of the five reserve cities in "District 5", averages of thefivecities,
and averages of all reserve cities in the United States,
(at dates of Comptroller's Calls, 1911-1913 inclusive)

46458°—S. Doc. 485, 63-2




7

97

98




LOCATION" OF RESERVE DISTRICTS.

CHART II
Population

tt

5

YEAR 3

185Q

I860

1870

1880

1390

19QO

lfrlO

1

2

3
4

5
€

1 1 1 5 4 3 5

I

7

U 6 1 Q 4 4 I
liiiiiiiiiiiniiiittii

8

1 2 1 6 2 3 9

U-mMII

| 1 2 5 5 1 3 9 1

lilliiiiiiiiiiiiiniii)
1 2 9 6 9 0 8 1

9
lO

I

5 2 5 9 0 2 1

uiiiiiiiiiiiiiiiiiiiiiii

ilPHHElll

11

tlfllltllllHIIIIltllllfl
12

•

•

j

QiiEm&ziii
14

•

•

1 3 6 4 4 6 3 1

1

15
Iflllllllilllllllllllll!!

iiEssaaii

16
llllttlUMUIIIIilNIIII
17

msBsam

18

19

1

20
21

22

J

23

24

LEGEND
j lClHCINNATI j lljjj^'^lj^))

CLEVELAND,

O H I O . 91

CHART III
Postal Receipts for Offices Named Below for the Years
1904 to 1913, Inclusive*
>
3000000

y
i
y

Jl

Y

j

/
/

// /

J

/

r

2500000
1

0

jT

2000000
jJ
j

—i
1 ;
- '

T
<

1500000 ,

"1
I oooooo

Soo 0 0 0

YEAH 1904




1905

1906

1907

1908

LEGEND
CLEVELAND
CINCINNATI
PITTSBURGH

1909

1910

19"

1912

m

100




LOCATION" OF RESERVE

DISTRICTS.

CHART IV
Manufactures Statistics
From U. S. Census 1910

LEGEND
CAWTAV . N E T D
IVSE
CLEVELAND
VALUE OF PRODUCTS"

CINCINNATI

CAPITAL INVESTED
VALUE OF PRODUCTS

PITTSBURGH

CAPITAL INVESTED
VALUE OF PRODUCTS

CLEVELAND, OHIO. 93

CHART V
Annual Exchanges of the Clearing Houses of
Cleveland, Cincinnati and Pittsburgh
For Period of Ten Years Each Ending September 30th
(From Reports of the Comptroller of the Currency)
•

0
J

*

s

\ %

\

K00 oooooo

/

<

»

\

/

V

/

«

*

\

/
9

%
%

\

2000000000

/

/
0

•%

— —
r — —

0
0
0
0

0

%*

moooooo

— —

moooouc
^ ^

r™—

YEA* 1*03




1904

190$

1906

»907

(908

1909

LEGENO

CUYUANO
CN I N T
I CN A I
pttTSBUMH

—
——..

—

I9IO

ten

I9»2

1913

102




LOCATION" OF RESERVE DISTRICTS.

CHART VI
Deposits in all Banks—Cleveland, Cincinnati andTittsburgfr

400 000 000

y
J5000000c

*

x

1

• Cleveland

$ocqooooo A
Jf
>k

y
r

2SOOOOOOO

Cleveland
t
K

to 0000 ooo
f

r

150000000
-

Jjr
'00000000
Cleveland
-»—1—

• ™H

50000000

Y£AR

I

8
£

§

&
2

§
2

i

2

§

LEGEND
CLEVELAND

national < i i t»i

CINCINNATI —

STATE -OOOOo

PITTSBURGH.

-

TOTAL *x*>X

—
£

•

*

o*




CLEVELAND, OHIO. 95

CHART VII
Deposits in all Banks in the five
largest cities of Ohio

2 i a ooe 4 s a

u
cimwiv

^

1

|
- r f

ciNtmti/m

*

j

• i

*

GOLUfi&US

STATE

I

NATIONAL

$04 a t»3 £93

TOLEDO

5
£

hi
£

2

*

DAYTON




DALLAS, TEX.

DALLAS, TEX.
TEXAS AND THE SOUTHWEST—BOOK OF FACTS.
To

THE R E S E R V E B A N K ORGANIZATION

COMMITTEE:

Gentlemen.—We are pleased to present you herewith
facts in regard to Dallas and the great Southwest,
indicating the need for a Federal reserve bank here.
Our argument is particularly developed for the
city of Dallas, the largest city west of the Mississippi
River and south of the Missouri, with unexcelled
railroad facilities and mail service; the telegraph,
telephone, and express development ranking with the
seven largest cities in the United States. We present
for your distinguished consideration a city now the
acknowledged market of the Southwest, the distributing and financial center of this most progressive and
rapidly developing section of the United States.
The territory tributary to this city and to be most
logically served from Dallas is all of Texas, all of
Oklahoma, all of New Mexico, that part of Louisiana
(86%) west of the Mississippi Eiver, and that part
of Arkansas (45%) south and west of the Arkansas
River; a territory that will provide ample capital
and deposits in a Federal reserve bank established
here; care for the needs of the territory, accomplish
the ends sought in the Federal reserve act, and make
possible the solution of the financial problems of this
section.
We present our argument in the sincere desire to
cooperate for the success of the law wherever regional
banks may be placed. We respectfully request consideration and are pleased to have this opportunity
of presenting our views.
Respectfully, yours,
DALLAS CHAMBER

By

C.

W.

By

R.

By

S. W .

HOBSON,

OF

COMMERCE

President.

DALLAS CLEARING H O U S E
H.

STEWART,

DALLAS COTTON

KING,

ASSOCIATION,

President.
EXCHANGE,

Jr., President.

THE GEOGRAPHY OF THE

TERRITORY.

The United States Census department has always
classified Texas, Oklahoma, Arkansas, and Louisiana
as the west-south-central geographic division. This
is one of the nine subdivisions made on account of the
correlation of its industries, the homogenity of its
people, the interdependence of its institutions. Set off




by natural boundaries, it slopes from the mountains of
New Mexico eastward 1,152 miles to the Mississippi.
From Brownsville, on the Rio Grande, 871 miles north
to the Kansas line.
Its white population is 22 per cent greater than
Mississippi, Alabama, Georgia, Florida, and South
Carolina combined.
The United States Government reports of 1910
showing its total wealth to be 37 per cent greater than
the combined wealth of these five old and developed
States. Showing diversity of production, and if a
balanced territory is desired, note that total annual
production in the territory is $1,759,138,149, divided
as follows:
Annual production.

Demand for money.

Factory
$685,506,000
Cotton
381,132,000
Livestock
205,224,132
Corn
175,899,000
Minerals
73,501,000
Miscellaneous crops (wheat, oats, hay, vegetables, fruits, etc.)
237,886,017

Uniform.
Four months.
Uniform.
Consumed on farm..
Uniform.
Each balancing the
other, making uniform demand.

CONDENSED FACTS ABOUT T H E

TERRITORY.

17.4 per cent of the area of the United States
(517,584 square miles).
8.3 per cent of the population of the United States
(7,668,436).
12.6 per cent of the national banks of the United
States (943).
10.2 per cent of the State banks of the United States
(1,816).

13.9 per cent of the annual farm production of the
United States ($1,000,128,597); 12 crops only.
41.8 per cent of the annual cotton production of the
United States ($381,132,400).
44.5 per cent of the annual cottonseed production of
the United States ($54,785,550).
9.7 per cent of the annual live stock production of
the United States ($205,224,132).
48.8 per cent of the annual cotton exports of the
United States ($253,020,000); 4,217,000 bales.
12.6 per cent of the annual total exports of the
United States ($218,146,097); Galveston only.
Banking capital and surplus—National, $108,400,635.13; State, $69,673,845.61; total, $178,074,480.74.
107

108

LOCATION" OF RESERVE DISTRICTS.

\tLwis\

&SKNCE&

U . 3 . MSUL
FROM

•Nntnrnl Bonndarics.




South
South
North
North

and West
a n d East
a n d East
- - - -

-

-

DALL

M e x i c o and t h e Gulf.
M i s s i s s i p p i River.
A r k a n s a s Kiver.
S t a t e L i n e of O k l a h o m a a n d N e w M e x i c o .

T h i s district is set apart and designated by the. Railroads and approved
by the Interstate Commerce C o m m i s s i o n as t h e S o u t h w e s t e r n Traffic C o m m i t t e e Territory.

SERVICE
AS

DALLAS,

109

TEXAS.

PHOTOGRAPHIC*COPY OF UNITED STATES CENSUS MAP SHOWING GEOGRAPHIC DIVISIONS.

N DAK.

o

•
MIN

'04

HQ
W E
S OK
A

si
•

L
T
E ( A \ S "T

NORTH
N8
6M

M
O

UTAH

CENTRAL
A
^ORTVTOINT^]

I N

CAL.
COLO

I

i

W-E

S

A*

J'

ON

QU.^J

M.SS

CO
SOUTH
CENT'RAL
rexAS

PERCENTAGE OF THE WHOLE UNITED STATES IN THE PROPOSED SOUTHWESTERN DISTRICT.

Population 1914,
Area
Number State Banks
Number National Banks
F a r m Cfopfr^
Live S t o c k P r o d u c t i o n
Gotton Lint
Cotton Seed
Gotton Exports
Total Exports
Average




110




LOCATION" OF RESERVE DISTRICTS.

£
Z

ZP

CONDENSED FACTS ABOUT THE TERRITORY

17.4# QFTHE AREA OF T.H E UNITED STAT E5 PIT 5S4ftMfl
6.3^0FTHEPOPUkATIOM.OFTHE UNITED STATES [7663436]
i2.6#0FTHENATIONALBANKS OFTHE UNITED STATES [. 943 ]
iO.2^'0F THE STATE . A K OF THE UNITED STATES. 1/1816 ]
BNS
13.9foOFTHEANNUAL F R P O U T N OFTHE UN ITED 5LATE5SlOOQU8.537.00].
A M R D CI
O
41.mOF:.THEANNUAL(5T7DN^^ P O U TO OFTHE UN!TED3TATES [f 3Si. 132.400.00] .
R D CI N
44.5^0FTHEANNm'LCOTTON "SEED P O U TO OFTHE UNITED STATES ^54,765550,00]
R D CI N
9.7$>OF JHB A NJ LL\E S O K P O U TO O THE UNITED STATES [^05224,1^:00 I
N lA . i/ > F C ' R D C I N F
4
T E A N A C T O . E P R S O T E UNITED. S A E [4217000. MLES]
H N U L O T N XO T F H
T TS
TOTAL E P R S O T E U I E " T T S [ l ^ ^ i ^ p d ] 'GAUVESJON. ONLY.
XO T" F H NT DS A E
MNKIN6 (?iPlTACAND SURPLUS
73,014480.74
WHICH WOULD FURNISH A RESERVE B ^ K WRM A CAPITALOF I M & V M R N
, ANNUAL FARH FACIWAND MINERAL PRODUCTION 1 1 J55J38;MOO




H
tel
X
>
ui

112

LOCATION" OF RESERVE

Which would furnish a reserve bank with a capital
of $10,684,468.80.
Annual farm, factory, and mineral production,
$1,759,138,149.
THE GROWTH OF THE

TERRITORY.

Population 1900 to 1910
Increased 39 per cent.
Acres in cultivation 1900 to 1910
Increased 46.5 per cent.
Production of farm crops 1900 to 1910
Increased 88.9 per cent.
Number of banks 1900 to 1914
Increased 454 percent.
Capital and surplus of banks 1900 to 1914.. Increased 510 per cent.

On this 18.6 per cent of arable land under cultivation is now produced 13.9 per cent of the entire crop
production of the United States. This territory is
increasing its production at the rate of $88,900,000
per year.
DALLAS'S

FACILITIES

IN

REACHING

THE

dispatches to railway post offices. Dallas has 80
daily receipts of pouches direct to Dallas from other
Texas cities. Dallas has 57 mail receipts daily from
railway post office lines, exclusive of the 80 direct
receipts from Texas. In reaching territory outside of
Texas, Dallas has 57 receipts of mail and 65 dispatches
of mail daily.
While Dallas is the fifty-fourth city in size, its postal
receipts are thirty-third in volume, and as much as any
two cities in the territory combined.
ABSTRACT OF R E P O R T S O F NATIONAL B A N K S I N

STATES

NAMED.
[Covering items indicated, as made to the comptroller, Oct. 21, 1913. Maximum
borrowing period of district.]
Territory.

No.

Capital.

Surplus.

Individual
deposits.

Rediscounts,
bills payable.

TERRITORY.

Nine trunk-line railroads radiating in 27 different
directions with 91 daily passenger trains: Chicago,
Rock Island & Gulf Railway; Gulf, Colorado & Santa
Fe Railway; St. Louis, San Francisco & Texas Railway; Houston & Texas Central Railroad; Missouri,
Kansas & Texas Railway of Texas; St. Louis, Southwestern Railway of Texas; Texas & New Orleans Railroad; Trinity & Brazos Valley Railway; Texas &
Pacific Railway.
Five electric interurban railroads radiating in seven
different directions with 156 'daily trains, handling
4,000,000 passengers annually: Northern Texas Traction Co., Southern Traction Co., Texas Traction Co.,
Eastern Traction Co., Dallas-Corsicana Traction Co.
Dallas has headquarters and general offices for the
Southwest of the Western Union, Postal, and Mackey
Telegraph Cos., with 262 circuits, handling 18,497,300
telegrams per year. Dallas ranks sixth in the United
States in total volume of business.
Dallas has headquarters and general offices for the
Southwest of the Southwest Telephone (Bell) Co.,
with 159 toll circuits, originating 554,000 long-distance
calls per year, increasing at the rate of 50,000 calls per
year; 2,924 toll stations operated from Dallas as headquarters; 643 towns served from Dallas on 50-cent
rate, 169 on 25-cent rate. Fifteen and nine-tenths per
cent of all the telephones in Texas are in Dallas.
Dallas has the largest telephone development per
capita of any city in the United States.
All express companies operating in the territory
have headquarters at Dallas.
Only six cities in the United States have a larger
volume of express business than Dallas.
Dallas has more express business per capita than any
city in the United States.
Dallas has 176 mail receipts and 137 mail dispatches
daily.
Dallas has 111 daily exchanges of mail pouches
direct with towns in Texas. Dallas has 65 daily mail




DISTRICTS.

Texas
486 $34,024,000.00 $17,881,429.06 $129,329,373.36 $12,007,954.70
Reserve cities.. 33 16,475,000.00 7,992,500.00 73,737,105.77 4,080,223.06
Oklahoma
315 12,185,000.00 3,274,006. 67 59,745,818.30 1,903,422.00
Reserve cities.. 11 2,200,000.00
662,000.00 12,417,025.13
425,000.00
40 2,215,000.00;
New Mexico
996,900.00 14,383,713.82
332,000.00
Louisiana (west of
M ississippi
Kiver)
26 3,020,000.00 2,351,365.83 13,711,068.97 3,183,835.89
Arkansas (south of
Arkansas River). 32 2,671,320.00 1,083,971.70
9,374,828.94 1,368,002.91
899 54,115,320.00 25,587,673.26 226,544,803.39 18,795,215. 57
44 18,675,000.00 8,654,500.00 86,154,130.90 4,505,223.06

Country banks
Reserve cities
Total

943 72,790,320.00 34,242,173.26 312,698,934.29 23,300,438.63

OPERATION

OF FEDERAL RESERVE

BANK.

[National banks alone.]
(1) Combined capital and surplus of national banks, $107,032,493, at 6 per
cent yields capital of reserve bank
$6,421,949
(2) Reserve of country banks on $226,544,803 individual deposits at 8 per cent yields deposits
$18,123,520
(3) Reserve of reserve city banks on $86,154,130 individual
deposits at 10 per cent yields deposits
8,615,413
(4) Total deposits of reserve bank
(5) Less reserve at 35 per cent of deposits

26,738,<
9,358,627
17,380,306

(6) Total loanable funds of reserve bank
23,802,255
(7) Maximum of bills payable and rediscounts
23,300,438
(8) Deduct 3 per cent of $226,544,803, countrybank deposits
$6,796,344
(9) Deduct 10 per cent of $86,154,130, reserve-city
bank deposits
8,615,413
15,411,757
7,888,681
Excess

15,913,574

The deductions of items (8) and (9) are warranted by provisions of bill which
reduce reserves to be held by country banks from 15 per cent to 12 per cent, and by
reserve-city banks from 25 per cent to 15 per cent, thereby increasing the loaning
power of the banks and correspondingly reducing their need of borrowing.
No account is taken above for possible Government deposits, nor of voluntary or
forced rediscounting between Federal reserve banks.
Allowance should also be made for the pyramided loans included in the total
shown above of $23,300,438 of bills payable and rediscounts.
STATEMENT OF DALLAS

BANKS.

Combined statements of the 5 national and 5 State banks at close of
business Jan. 13, 1914.
RESOURCES.
Loans
United States bonds
Other bonds
B anking house
Available cash
Total

LIABILITIES.

$25,236,325.97 Capital
3,031,000.00 Surplus and profits.
1,624,230.68 Circulation
1,128,583.96 Deposits
12,482,407.91
43,502,548.52

Total

$5,000,000.00
3,827,413.38
2,775,500.00
31,899,635.14
43,502,548.52

113

DALLAS, TEXAS.

Banking service rendered to their correspondents by the 10 Dallas banks
during 1913.
Handled through their transit departments items on other
banks within the Dallas district amounting to
$499,589,236
Handled items on-all points outside the Dallas district
amounting to
105,331,063
$604,920,299
Remitted on receipt to eastern banks, country cheeks sent us for collection in this district
Ill, 595,076
Received from their correspondent banks and others shipments of currency and coin amounting to
$11,600,193
Shipped out to their correspondents in connection with
crop movement, etc., currency and coin amounting to.. 20,936,313
Total shipments, in and out, of currency and coin
Loaned to banks and bankers throughout the year an aggregate of
LIST OF

Abbott.
Abilene.
Addison.
Alba.
Albany.
Aledo.
Allen.
Alma.
Alto.
Altoga.
Alvarado.
Alvord.
Amarillo.
Anderson.
Anna.
Annona.
Anson.
Appleby.
Arlington.
Arp.
Ashland.
Asherton.
Athens.
Atlanta.
Avalon.
Avinger.
Aubrey.
Austin.
Alexander.
Bagwell.
Baird.
Ballinger.
Balmorhea.
Banks.
Bardwell.
Barksdale.
Barry.
Barstow.
Bartlett.
Bastrop.
Bay City.
Beaumont.
Beckville.
Beeville.
Bellevue.
Bells.
Bellville.
Belton.
Ben Wheeler.
Big Sandy.
Big Springs.
Blooming Grove.
Blossom.
Blum.
Blumburg.
Boerne.
Bogota.
Bonham.
Bonita.
Bowie.
Boyce.
Boyd.
Bradshaw.
Brady.

32,536,506
14,092,937

B A N K I N G TOWNS I N T E X A S CARRYING
BALANCES I N DALLAS.
Brandon.
Branham.
Brashear.
Brazos.
Bremond.
Brenham.
Bridgeport.
Britton.
Bronte.
Brookston.
Brownsville.
Brownwood.
Bryan.
Bluff dale.
Bivins.
Bristol.
Buckholts.
Buffalo.
Bullard.
Burkburnett.
Burnet.
Burleson.
Burton.
Bynum.
Caddo Mills.
Caldwell.
Calvert.
Cameron.
Campbell.
Canadian.
Canton.
Canyon.
Carbon.
Carmine.
Carrollton.
Carthage.
Cason.
Cedar Hill.
Celeste.
Celina.
Center.
Centerville.
Chandler.
Chico.
Childress.
Chillicothe.
Chilton.
Cisco.
Clarendon.
Clarksville.
Cleburne.
Clifton.
Clyde.
Coahoma.
Coleman.
Collinsville.
Colmesheil.
Colorado.
Comanche.
Commerce.
Como.
Coolidge.
Cooper.
Copeville.

Coppell.
Copperas Cove.
Corpus Christi.
Corrigan.
Corsicana.
Coupland.
Covington.
Crandall.
Crawford.
Cresson.
Crockett.
Cross Plains.
Crowell.
Cuero.
Cumby.
Cushing.
Daingerfield.
Dalhart.
Dallas.
Dawson.
Decatur.
De Kalb.
De Leon.
Del Rio.
Denison.
Denton.
Deport.
Detroit.
Dialville.
Dodd City.
Dorchester.
Dublin.
Duncanville.
Eagle Lake.
Eagle Pass.
Eastland.
Ector.
Edgewood.
Edna.
El Campo.
Eldorado.
Electra.
Elgin.
Elkhart.
Elmo.
El Paso.
Elysian Fields.
Emory.
Emhouse.
Ennis.
Eustace.
East Bernard.
Fairfield.
Farmers Branch.
Farmersville.
Fate.
Ferris.
Flint.
Floyd.
Floydada.
Forreston.
Forney.
Fort Worth.
Franklin.

4 6 4 5 8 ° — S . Doc. 485, 6 3 - 2




8

Frankston.
Fredricksburg.
Frisco.
Frost.
Fulbright.
Flatonia.
Gail.
Gainesville.
Galveston.
Garland.
Gary.
Garza.
Gatesville.
Georgetown.
Gilmer.
Gladewater.
Glen Rose.
Golden.
Goldthwaite.
Gonzales.
Goodlett.
Gordonville.
Gorman.
Graham.
Granbury.
Grand Prairie.
Grand Saline.
Grand view.
Granger.
Grapeland.
Grapevine.
Greenville.
Greenwood.
Groesbeck.
Grove ton.
Gunter.
Gustine.
Garden City.
Grand Falls.
Hagerman.
Hallettsville.
Hamilton.
Hamlin.
Handley.
Hansford.
Harleton.
Harper.
Hasse.
Hawkins.
Hawley.
Hedley.
Hearne.
Heath.
Hebron.
Hemphill.
Hempstead.
Henderson.
Henrietta.
Hereford.
Hico.
Hillsboro.
Holland.
Honey Grove.
Hooks.

Houston.
Markham.
Pickton.
Pilot Point.
Marlin.
Howe.
Marquez.
Pine Hill.
Howland.
Pittsburg.
Hubbard.
Marshall.
Plainview.
Hughes Springs.
Mart.
Plains.
Matador.
Huntsville.
Piano.
Maud.
Hutchins.
Point.
Maxwell.
Hutto.
Poolville.
Indian Gap.
Maypearl.
Ponta.
Irene.
Melissa.
Port Arthur.
Irving.
Memphis.
Pottsboro.
Mercury.
Italy.
Powell.
Meridian.
Itasca.
Prairie Hill.
Merit.
Jacksboro.
Princeton.
Jacksonville.
Merkel.
Pritchett.
Jefferson.
Mertens.
Proctor.
Jermyn.
Mesquite.
Putnam.
Mexia.
Jewett.
Purdon.
Midland.
Josephine.
Quanah.
Midlothian.
Justin.
Queen City.
Milano.
Kaufman.
Quitman.
Millsap.
Kemp.
Quinlan.
Miles.
Kerens.
Ralls.
Milford.
Kilgore.
Ranger.
Mineola.
Killeen.
Jlavenna.
Mineral Wells.
Kingsville.
Reagan.
Mingus.
Kirbyville.
Red Oak.
Moody.
Kirkland.
Red Rock.
Mount Calm.
Kirvin.
Redwater.
Mount Pleasant.
Kleburg.
Rhinehart.
Mount Selman.
Klondike.
Rhonesboro.
Mount Vernon.
Kopperl.
Rice.
Muenster.
Kosse.
Richardson.
Mullin.
Kress.
Richland.
Murchison.
Krum.
Rio Vista.
Murphy.
Kountze.
Rising Star.
Myra.
Ladonia.
Roanoke.
Nacogdoches.
Laredo.
Roby.
Naples.
La Grange.
Rochester.
Navasota.
Lamesa.
Rockdale.
Nevada.
Lampasas.
Rockwall.
Newark.
Lancaster.
Rogers.
New Boston.
Larue.
Roscoe.
New Braunfels.
La von.
Rosebud.
New Castle.
Leesburg.
Newsome.
Rosewood.
Leonard.
Rotan.
Nocona.
Leonder.
Rowlett.
Normange.
Leroy.
Roxton.
North Zulch.
Lewisville.
Royse.
Novice.
Lindale.
Newton.
Rule.
Linden.
Rusk.
New Hope.
Lipan.
Oakwoods.
Renner.
Livingston.
Odell.
Sacul.
Llano.
Lockhart.
Odessa.
Sadler.
Oglesby.
St. Jo.
Lockney.
Oklaunion.
Saltillo.
Lometa.
San Angelo.
Oleny.
Lone Oak.
San Antonio.
Omaha.
Long Branch.
Longview.
Orange.
Sandia.
Sanger.
Loraine.
Osceola.
San Juan.
Lorena.
Overton.
San Marcos.
Olton.
Lott.
San Saba.
Pecan Gap.
Lovelady.
Paducah.
Santa Anna.
Lufkin.
Savoy.
Paint Rock.
Luling.
Schertz.
Palacios.
Lyons.
Schulenburg.
Palestine.
McGregor.
Scurry.
Palmer.
McKinney.
Seagoville.
Paradise.
McLean.
Paris.
Sealy.
Mabank.
Park Spring.
Seguin.
Madisonville.
Pattonville.
Seminole.
Malakoff.
Seymour.
Pearsonville.
Malone.
Pecos.
Sherman.
Mansfield.
Shiner.
Penelope.
Marble Falls.
Petty.
Sinton.
Marfa.
Five hundred and sixty-six banks, carrying 1,654 acc
of $10,756,000.

Smithville.
Snyder.
Southmayde.
Spur.
Stamford.
Stanton.
Stephenville.
Streetman.
Sulphur Springs.
Sulphur Bluff.
Sunset.
Sweetwater.
Sylvester.
Sugarland.
Swan.
Taft.
Talco.
Tatum.
Taylor.
Teague.
Temple.
Terrell.
Texarkana.
Texas City.
Thornton.
Timpson.
Tomball.
Tom Bean.
Trent.
Trenton.
Troupe.
Troy.
Trumbull.
Tulia.
Turkey.
Tyler.
Uvalde.
Valley Mills.
Van Alstyne.
Van Home.
Venus.
Vernon.
Victoria.
Waco.
Walnut Springs.
Waxahachie.
Weatherford.
Weimer.
Wellington.
Wells.
West.
Westminster.
Wharton.
Wheeler.
Whitney.
Whitehouse.
Whitesboro.
Whitewright.
Whitt.
Wichita Falls.
Wills Point.
Wilmer.
Winchester.
Windom.
Winfield.
Winnsboro.
Winona.
Winters.
Wolfe City.
Wortham.
Wylie.
Woodville.
Woodson.
Yantis.
Yoakum.
Yorktown.
i, with average balance

DALLAS COMMERCIAL STATISTICS.
S H O W I N G THAT E S T A B L I S H E D T R E N D OF T R A D E C E N T E R S AT DALLAS.

Dallas leads the world in the manufacture of cottongin machinery, in the manufacture of harness and

114

LOCATION" OF RESERVE DISTRICTS.

T h i s C i r c l e of 100 M i l e s R a d i u s , of w h i c h D a l l a s i s t h e c e n t r e , e n c l o s e s 1 0 . 8 % of t h e a r e a of T e x a s ,
Y e t w i t h i n t h i s 10.8% of t h e ar&a of t h e S t a t e t h e r e i s :
25.4%
29.5%
33.1%
34.6%

(3,797 M i l e s ) o f t h e Railroad- M i l e a g e , of t h e S t a t e .
($747,666,866) of t h e a s s e s s e d v a l u a t i o n of t h e S t a t e .
(1,399,081) of t h e p o p u l a t i o n of t h e S t a t e s
(144,583) of t h e f a r m s of t h e S t a t e v a l u e d a t $6051645,575 o n w h i c h are raised:^
43.4% of t h e c o t t o n of T e x a s (2,223,622 B a l e s ) arid
37.9% ($251,217,647) of t h e t o t a l f a r m p r o d u c t i o n of ^ x a s .
46 o f t h e 249 c o u n t i e s of Texas a n d 8 of t h e 77 c o u n t i e s of O k l a h o m a , h a v i n g 1,320 Cities, T o w n s
a n d Villages w i t h 16,669 r a t e d b u s i n e s s h o u s e s a n d a p o p u l a t i o n of 1,486,041.

^•C I?/

'

Betiri< uierBrb,B

GajCu

•Y^A XPUPWJI

ffjfc*
Colbert

Il'oina

tyj^Elwootl
4fjf c Vmb T-oVj0)
A
1/.wm Vjp^r:

_rt^y ^ O / J,«jir a m ,.,-NN- .
r,A/r

'AiurTj

J R-llf

\
tf

V

_

_

_

*» J r
° <o
^"o^i'qk^^^^^
,cibtoirn BoontV > A
j
• V.7 M ttl jf^jwV^^^^ OfA
'
r

4

CrUrd^g.

sr«i*1Op, Lnhmt^tttjji

(V
I
LOL/O/P I
ALti J / T © N'Tnn<-J.
P O _jnT
N
-r
Ci p O
r
m
» ,

H ; m\

f^fird

^-

^X -

^ uie j m , R tlr .
'vncty J Wuelaj>af>K
. * toMt/g^pA^,^ \ l^fiJmprotfCo i:

^ Vh fV^ S OJ^ ^ L H
^ r
P V s p

'f
P v>V

VT
Vo
• QHatlttttU




Y* creesoft vaifun-,

f W^fff -cwirtka* ^WiUcafo
>
Q'iyirjrrLJ'
C J< { RNO ^o.^PSp^'-'^Ur^Offit B BM>"K 1
?RM F T
[OYarf^fh'h Cfw
^o a
-SCTrc/«|
OlUtoii*

„

iP^^bu'ioA,

/ >sL
1, \

Mosheiin^.•C^^JA5^^0''''?/- W C I
A OI

3? v \feowQ)W m
m'^As?**

/I
AldtFTsr.q-, . JX^SPj {V ,

DALLAS, TEXAS.

saddlery, in the distribution of agricultural implements
second only to Kansas City.
Dallas leads every city in the Southwest in population (131,278), in wholesale business ($211,458,000),
in number of wholesale houses (318), in factory output
($42,595,000), in number of factories (393), in freight
business (602 carloads per day), in postal receipts
($1,002,023), in new building permits ($8,439,540).
Dallas sells more goods in the territory than either
St. Louis or Kansas City, and particularly surpasses
them and has the largest volume in these lines: Automobiles, cement, drugs and groceries, dry goods,
electrical supplies, harness, hats and caps, machinery,
millinery, paper, petroleum products, paints and oils,
saddlery, vehicles.
NOTE.—St. Louis surpasses Dallas in volume of
business in the territory in two lines only, viz, boots
and shoes, and hardware.
One hundred and forty-one firms of national importance and operating all over the United States have
their general offices and warehouses at Dallas, for the
Southwest.
Signed statements from the Dallas jobbers show that
they sell to 28,280 merchants in Oklahoma, 3,151 merchants in New Mexico, 5,698 merchants in Arkansas,
and 7,222 merchants in Louisiana.
NOTE.—These statements necessarily overlap to
some extent.
Of the 2,448 rated business houses in Dallas two only
operate as branches of St. Louis. One only operates
as branch of New Orleans.
Total cotton area whole South, 892,072 square miles.
Total cotton area in the proposed territory within 12
hours' ride from Dallas, 437,794 square miles.
Dallas Cotton Exchange has 73 members with buyers
in every portion of cotton territory in proposed district; bought last year 1,459,000 bales and paid out
$92,097,000. '
Two hundred and seventy-six cottonseed-oil mills are
within 150 miles of Dallas, producing one-third of the
total cottonseed oil of the United States. Three of the
largest mills are at Dallas.
DALLAS COMMERCIAL

STATISTICS.

Butler Bros, have five distributing houses, Chicago,
New York, Minneapolis, St. Louis, and Dallas; spent
$1,600,000 in building; occupy 475,000 square feet in
one building. It is not a branch of St. Louis, and the
Dallas house handles all southwestern business.
Ford Motor Car Co. are now building at Dallas one
of their few assembling plants, to cost $400,000, employing 600 men, to handle business of southwest.
Sears, Roebuck & Co. have their largest distributing house at Dallas; investment, $4,000,000; 1,200,000
square feet of floor space, employing 1,300 people,
distributing merchandise only.
Twenty-six wholesale agricultural implement houses
at Dallas do a business of $35,000,000 annually.




115

Thirty-two wholesale automobile concerns in Dallas
sold $18,164,972 during 1913.
One hundred and forty-one concerns have headquarters at Dallas and operate southwestern business
and branches from Dallas.
Firms of national importance at Dallas.
A. P. W. Paper Co.
Allis Chalmers Mfg. Co.
American LaFrance Fire Engine Co.
American Multigraph Sales Co.
American Soda Fountain Co.
American Steel & Wire Co.
American Tire & Rubber Co.
American Type Founders Co.
American Well Works.
Art.Metal Construction Co.
Art Wall Paper Mills.
Atkins, Mentzer & Co.
B. F. Avery & Sons Plow Co.
Avery Company of Texas.
Barnhart Brothers & Spindler.
Samuel Binghams Sons Mfg. Co.
The Bolte Mfg. Co.
S. F. Bowser & Co.
Brown Cracker & Candy Co. (Loose
Wiles Biscuit Co.).
Brown Mfg. Co.
Brunswick-Balke-Collender Co.
Buick Auto Co.
August A. Busch & Co.
Butler Brothers.
Philip Carey Co.
J. I. Case Plow Works.
J. I. Case Threshing Machine Co.
Cocoa Cola Co.
Columbia Graphophone Co.
Consolidated Film & Supply Co.
Continental Gin Co.
Crane Co.
Crown Cork & Seal Co.
John Deere Plow Co.
Diamond Rubber Co.
Detroit Electric & Motor Car Co.
Edwards Mfg. Co.
Electric Appliance Co.
Elliot Fisher Co.
Emerson Brantingham Implement Co.
Federal Plate Glass Co.
Firestone Tire & Rubber Co.
FiskTire Co.
Ford Motor Co.
General Fire Extinguisher Co.
Gilsonite Construction Co.
Goodyear Tire & Rubber Co.
Gratton & Knight Mfg. Co.
C. H. Gray Rubber Co.
Hart & Crouse.
Hesse Envelope Co.
W. C. Hixson & Co.
Ginn & Co.
Hudson Motor Car Co.
Geo. P. Ide & Co.
Imperial Motor Car Co.
International Text Book Co.
B. F. Johnson Publishing Co.
Lincoln Paint & Color Co. (Acme White
Lead & Color Co.).
Liquid Carbonic Co.
A. E. Little & Co.
W. R. Madison Publishing Co.
Magnolia Petroleum Co.
Master Builders Co.
Michigan Motor Car Co.
Michelin Tire Co.
Monarch Telephone Mfg. Co.
H. K. Mulford Co.
The Murray Co.
New Home Sewing Machine Co.
Oliver Chilled Plow Works.
Overland Automobile Co.
Parlin & OrendorfC Implement Co.

Pathfinder Motor Car Co.
Patterson, Sargent Paint Co.
Peavey Rubber Co.
Pierce Fordyce Oil Assn.
Philips Boyd Pub. Co.
Pittsburg Water Heater Co.
Prest-O-Lite Co.
Queen City Printing Ink Co.
Remington Typewriter Co.
Rumley Products Co.
Sears, Roebuck & Co.
Sharpless Separator Co.
Sherwin Williams Paint Co.
Sigler-McNamera Co. (Acme Silver Co.).
Silver Burdett & Co.
Southern Hardware & Woodstock Co.
Southern Products Company (Mitsui
& Co.).
Rock Island Plow Co.
Southwest General Electric Co. (General
Electric Co.).
Southwestern Paper Co. (J. W. Butler
Paper Co.).
A. G. Spalding & Bro.
Stanard-Tilton Milling Co.
Studebaker Brothers Co.
Texas Bitulithic Co.
Texas Glass & Paint Co. (Pittsburg
Plate Glass Co.).
Texas Harvester Co. (International Harvester Co.).
Texas Machinery & Supply Co. (Fairbanks-Morse & Co.).
Texas Moline Plow Co. (Moline Plow
Co.).
Texas Ohio Cultivator Co. (Ohio Cultivator Co.),
A. J. Tower & Co.
Underwood Typewriter Co.
United Cork Co.
United Shirt & Collar Co.
United States Chemical Co.
United States Tire Co.
Western Coal & Mining Co.
Western Electric Co.
Westinghouse Electric & Mfg. Co.
A. H. Wilkins Co. (American Book Co.).
L. Wolf Mfg. Co.
Western Union Telegraph Co.
Postal Telegraph Co.
Mackey Telegraph Co.
Bell Telephone Co.
Stone & Webster Corporation.
Pittsburg Testing Laboratory.
Robert W. Hunt & Co.
Republic Steel Co.
American Sheet & Tin Plate Co.
Chicago Bridge & Iron Works.
National Tube Co.
Graham Paper Co.
Aetna Powder Co.
National Cash Register Co.
West Disinfecting Co.
L. C. Smith & Bro.
Burroughs Adding Machine Co.
United Motor Co.
B. F. Goodrich Co.
Cole Motor Car Co.
The Halfl Co.
Franklin Motor Car Co.
Packard Motor Car Co.
White Motor Car Co.
Automatic Sprinkler Co.
General Film Co.
McBeth Evans Glass Co.
Advance Thresher Co.

116

LOCATION" OF RESERVE

DALLAS COMMERCIAL STATISTICS

GENERAL

AND

COM-

PARATIVE.

I t will be conceded that all of Texas is nearer Dallas
than any other location under consideration. The
map attached will show that all of the territory
claimed in Oklahoma, Arkansas, and Louisiana is
within 15 hours by rail from Dallas. That every
portion of the territory can be reached from Dallas in
less time than from St. Louis. With the exception of
a small portion of northern Oklahoma, north of the
Canadian River, it can be reached from Dallas by rail
in shorter time than from Kansas City. The only
portion of the territory that can be reached from
Denver in a shorter time than from Dallas is the
northern half of New Mexico and a small portion of the
Panhandle of Texas. Less than 5 per cent of the
population in the territory exclusive of Texas can be
reached more quickly from Kansas City or St. Louis
than from Dallas. Eight hundred and ninety-three
of the 943 national banks are nearer Dallas than they
are Kansas City, St. Louis, Denver, or New Orleans.
One thousand seven hundred and sixty-one of the
1,816 State banks are nearer Dallas than any other
of the cities mentioned.

City.

Growth
in population.

Increase in factory Increase in value of
employees.
factory products.

1900-1910 1899-1904 1904-1909 1899-1904 1904-1909

Dallas
New Orleans
St. Louis
Kansas City, Mo
Memphis
Denver

Per cent. Per cent. Per cent. Per cent. Per cent.
116
21.2
41.7
64.7
72.5
-3.6
18
7.9
41.7
-1.2
5.6
27.6
19
22.9
38
51.7
13.8
32.6
50.8
53.8
28.1
11.3
7.5
40.8
50.9
59.4
13.8
24.7
40.6
-3.3

Two thousand two hundred traveling men live at
Dallas and make it headquarters for the Southwest.
Dallas has 52 magazines and periodicals, and, next
to Nashville, is the largest publication center in the
whole South.
Commercial rating of the 2,284 business firms of
Dallas total $115,343,500, an average of over $50,000
each.

DISTRICTS.
DALLAS

COMPARATIVE AND ILLUSTRATIVE.

Three million six hundred and ninety-one thousand
and sixty-three people live within 200 miles of Dallas,
which is 4*7.4 per cent of the entire population of the
proposed district, although it includes but 20.3 per
cent of the area of the district.
Two million six hundred and twenty-three thousand
two hundred and two live in parcel-post zone 2—this
zone of 150 miles radius from Dallas.
Farm values in zone 2 for 1909 are around $1,166,743,688, which is a greater amount than the capital
and surplus of all banks, trust and loan companies in
the United States combined, of same year.
The annual farm production in zone 2 is greater than
the combined factory wages of St. Louis, Cleveland,
Detroit, Pittsburgh, Boston, Buffalo, San Francisco,
and Providence.
One hundred and sixty Dallas concerns are rated at
over $1,000,000.
It is interesting to note that the loans and discounts
of Texas banks alone are greater than those of Alabama, Mississippi, Arkansas, Louisiana, and Florida
combined.
Kansas City claims prestige on account of Sears,
Roebuck & Co. locating there. The Kansas City
house of Sears, Roebuck & Co. is a warehouse only,
occupying 200,000 square feet of floor space, shipping
on order from Chicago. The Dallas house of Sears,
Roebuck & Co. has six times the amount of floor space,
originates and ships from Dallas all business for Texas,
Oklahoma, Arkansas, New Mexico, and Louisiana.
One hundred-mile radius circles around Dallas, St.
Louis, and Kansas City, excluding the populations of
the central cities, gives:
Population,
1910.

Per cent of
increase,
1900-1910.

1,&79,160
1,254,578
1,387,441

Dallas
Kansas City
St. Louis

13.0
—8.3
12.5

Including the populations of the central cities, gains
in population were: Dallas, 18 per cent; St. Louis, 14.8
per cent; Kansas City, 1.4 per cent. Total Dallas
population, 1,486,041, being 40.3 per square mile, compared with 20.7 for Kansas and 47.9 for Missouri.

REASONS FOR LOCATING REGIONAL RESERVE BANK IN TEXAS TERRITORY.
The Reserve Bank Organization Committee,
Washington, D. C.
G E N T L E M E N : This "book of reasons" is a supplement to the Dallas Book of Facts submitted at your
meeting in Austin, Tex. Its aim is to point out the
significance of some of the facts submitted at that
hearing by the Texas cities and to present reasons
supported by those facts why Texas is entitled as of
right to have a regional bank.




THE

NUMBER

OF BANKS

TO BE

FORMED.

The fact that the minimum number of banks
was fixed at eight was a victory for the decentralization idea. The winning argument was based as
much upon political as economic conceptions. The
soundness of the economic theory is debatable,
but the correctness of the political theory is incontrovertible.

DALLAS, TEXAS.

At all events, the facts that at least eight banks
are mandatory, that a margin for discretionary increase up to 50 per cent is provided, and that regiona l l y is an essential feature of the law, show clearly
that Congress intended (subject to the limitations
in the law itself) to put a bank in each region where
there is business enough and funds enough to support
it, and where to refuse it would leave districts so
large as to be contrary to the regionality theory, or
productive of such discontent and friction as to impair the success of the system.
These considerations justify at least 10 banks,
located as follows: Massachusetts, New York, Pennsylvania, Georgia, Ohio, Illinois, Missouri, Texas,
Minnesota, and California. If 2 of this group be
eliminated so as arbitrarily to reduce the number to
8, those eliminated should be Ohio, which can so
readily be attached in fractions, or as an entirety, to
its surrounding districts, and Minnesota, which belongs logically to Chicago.
The circumstances requiring the above grouping
are that in each of these areas existing financial and
commercial connections are found which would be
less disturbed by such grouping than to any other
relationship, and at the same time districts neither
too large nor too small would be created.
In each of these areas there happens to be a city
which is already its financial and commercial center.
Given a certain district the selection of a certain city
is inevitable. The district itself has already pointed
it out by currents of trade which flow into it. The
cities referred to are Boston, New York, Philadelphia,
Atlanta, Cleveland, Chicago, St. Louis, Dallas, Minneapolis, and San Francisco.
To locate the minimum number of banks now with
an eye to the future increase is unwise, because such
a process involves a further disturbance in the future.
I t is like breaking a leg twice in the same place. I t
is to be hoped that the country will be so districted
now that the only changes needed in the future will
be along the borders of logical and regionally located
districts. In such a border zone lines must of necessity be somewhat arbitrary, and it may be found
necessary at times to readjust them.
BRANCH

BANKS.

An illogical contention has been made in some
cities that the number of regional banks should be
low and the number of branches correspondingly
high. The assumption is made that a branch bank
will have all of the functions and usefulness of a
regional bank. It is urged that a branch bank at a
particular point will be just as useful to the subdivision of the district which is related to the branch
bank as the regional bank would be.
As stated, such a contention is illogical:
1. If correct, there should be one central bank at
New York or Washington and all other banks should




117

be branches. If a branch bank is as good for Dallas
or Philadelphia as a regional bank, why is it not as
good for New York, Chicago, or San Francisco ?
2. It arbitrarily builds up remote cities at the expense of the localities which produce wealth and
which should be permitted to keep it and use it for
their own development.
3. Business of member banks with branches will
be more subject to delays, uninformed consideration
and administrative red tape than business done with
the regional bank itself.
4. It stirs up a spirit of ill will to the system itself
by forcing support to the governmental project along
unnatural lines.
It is inconceivable that a branch bank should have
all the powers of a regional bank itself. No system
providing for branch banks has ever been so organized.
If each branch and also the regional bank had coequal
control over the common funds, the common policy,
the common operations, and the common credit, the
end would be easy to imagine. I t is indispensable
that the parent bank shall have control over all of
these operations and this of necessity requires a duplication of time and attention to every important
project.
5. Regional independence which, in spite of the
old banking system, has struggled so long and hard
for expression and is at last finding it, will be lost
permanently or indefinitely postponed notwithstanding the Democratic theory of government that
localities should be locally governed and encouraged
to develop locally self reliance and independence.
To tie Texas to Kansas City, St. Louis, or New
Orleans, no one of which now draws the fourth part
of her foreign trade, to strip her of financial and in
time commercial independence, would be an economic
as well as a political crime, and Texas sees clearly
that such a result will inevitably follow such action.
The greatest difficulty of administration in the new
system is going to be the supervision and control by
the parent bank of its branches. The surest method
of minimizing this danger is to have as many regional
banks as the country needs and as few branches as
possible.
WHY

SHOULD

TEXAS

HAVE

A

REGIONAL

BANK.

1. It is a region in every sense, express and implied,
in which that word is used under the law. Including
the relatively small territory outside of Texas, which
has for its convenience been put with Texas and which
can with most advantage to it be best served from a
Texas bank, the region contains or produces approximately :
One-sixth of the area of the United States (such
area is large enough for a district, while if added to
the other territory claimed by St. Louis, the enlarged
district would embrace approximately one-third of the
total area of the United States).

118

LOCATION" OF RESERVE DISTRICTS.

One-twelfth of the population of the United States
(the increase during the last decade being 39 per
cent).
One-eighth of the national banks of the United
States.
One-tenth of the State banks of the United States
(the number of total banks increased in the last 14
years 454 per cent).
One-seventh of the total farm production of the
United States ($1,000,128,597).
Two-fifths of cotton production of the United
States, ($381,132,400).
Four-ninths of total cotton-seed production of the
United States ($54,785,550).
One-tenth of live-stock production ($205^224,132).
One-half of cotton exports ($253,020,000).
One-eighth of the total exports of the United
States.
With the exception of some territory in the extreme western and southern portions of the district
and a small area in southwestern Louisiana, every
point in the district is within 12 hours' mail service of
Dallas, and those remote portions of the territory are
within closer mail service to Texas cities than any
other city which has been under consideration as a
location for a regional bank.
2. I t would capitalize a bank more than 50 per
cent above the law's requirements ($6,421,949) even
if no State bank came in, and with the deposits of reserves which the law requires, its resources would
enable it to meet all legitimate demands in ordinary
times.
For 8 months in every year a regional bank in this
district would have money to loan; for 12 months in
an ordinary year it could take care of its own member
banks and have money left. During the exceptional
year (1913) just past it could at the peak of its advances to member banks have financed itself. If,
however, under extraordinary stress it should need to
rediscount the receivables of member banks to a
small extent with other regional banks, or to issue
emergency currency, it would simply be making use
of these features of elasticity which have been advertised as among the chief excellencies of the new
banking law.
If the Texas regional bank should be a lender bank
8 months out of every year and 12 months out of an
ordinary year, why should it not every 4 months
during an occasional extraordinary year be a borrower
or note-issuing bank?
Its condition would not be bettered by being put
with Kansas City, St. Louis, or New Orleans, for it
appears from a study of the bank reports of October
21, 1913, of the territory that is included in the St.
Louis claims, that taking banks as a whole over that
area all individual deposits were at low ebb and banks
in both St. Louis and Kansas City were borrowing




money just as the banks in the Texas district were
doing.
The unassailable fact is—St. Louis and Kansas
City will not dispute it—that when Texas needs
money to move its crops its banks can not borrow
money in any considerable quantities in either St.
Louis or Kansas City, and must go to Chicago or to
the Atlantic seaboard. Balances are kept in St.
Louis now, not in order to secure loans there in time
of need nor because trade sets that way, but in order to secure exchange facilities and provide means for
making collections at par.
The rediscounts and bills payable in the district
Texas has defined were $23,000,000 at the peak of the
heaviest demand of 1913. How much duplication or
pyramiding was in this sum it is not easy to say, but,
as shown in the Dallas Book of Facts, more than threefifths of the amount could have been absorbed by the
reduction in the percentages of reserve which are provided for under the new law. The national banks in
the territory would have had $15,000,000 more of loanable funds at that time if the present law had then been
in force, leaving only $8,000,000 to be taken care of by
the regional bank. Its available funds for that purpose would have been far in excess of these demands.
If the new law is simply going to provide new machinery (perhaps more complex than the old) for doing
what is already being well done under the existing
banking system, its importance and efficiency h&s been
vastly exaggerated. We do not believe it is so limited
in function. We think it was intended to provide
elasticity and a means for equalizing seasonal inequalities, to relieve strain where strain has been great
under the old system. I t is, however, going to be
a handicap instead of an advantage if its effect will be
normally to restrict Texas banks or banks in any other
single district to their regional bank and affect their
open market connections. If it is going to be thought
a crime, or even bad banking, for one regional bank
to use the surplus funds of another at one season, and
to render the same service to another bank at another
season, the law will prove to be absurdly inadequate.
Moreover, why should it be thought inevitable that
the member banks will deal only with the regional
bank when wanting to borrow money ? No one doubts
that banks which now have resources beyond their
local needs will continue to lend that money to other
banks to meet seasonable requirements. If the new
law is to create in the Government a monopoly of the
business of loaning money to national banks to meet
their seasonable requirements, it has not been so advertised. Member banks will, of course, maintain
their legal reserve with the regional banks, but they
will deposit as in the past surplus funds with other
banks, receiving interest on daily balances and having
constant transactions in the borrowing and loaning of
money as heretofore

DALLAS, TEXAS.

3. The virility of the Southwest, if encouraged and
furnished an opportunity for independent exercise,
will do a constructive work in that rapidly growing
section which will benefit the entire Nation. If repressed its work will be smaller, less vital, and less
profitable to the Nation.
The attitude of Texas on the matter of its being
made an appendage of St. Louis or any of the other
cities named may be called a sentimental one, but
such a criticism does not meet our contention. The
geographical outlines of Texas, her political history,
the surpassing loyalty of her citizens and their abounding patriotism, her astounding development and eventual destiny and place in the national life have built
up a reliant independence that will be peculiarly
offended if, after it has supported its claims as strongly
as it has, it should be bound in a subordinate relationship to another community having less banking capital, less commercial resources, less present and future
prospects than it has.
So-called sentiment has played a great part in the
material as well as in the moral aspects of our civilization; it launched the Crusades; it organized the
Reformation; it colonized America; it fought the Revolution; it made Texas a Republic and afterwards
brought it into the Union; it is to-day making it the
most unique State in the Union, and one whose probable future staggers the imagination.
4. Texas is not tributary to any of the three cities
named, but is self-sufficient and independent of them.
We might lay New Orleans out of the case, for there
is no flow of business of moment to it. Kansas City
before the day of the development of the implement
business in Dallas and the grain and packing business
in Fort Worth had some business with Texas. This
is now negligible. The business connections of 20
and even 10 years ago with St. Louis are no longer
in existence. In its stead there is a business in certain lines, like shoes, beer, and hardware. The Texas
cities have become markets for the Texas retailer
and consumer. The wholesaler in Texas buys from
the same factories the St. Louis wholesalers buy
from and in some lines in much larger quantities.
The banking connection is small and would be less
but for the artificial requirements of the old banking
law, which gave St. Louis an unnatural advantage
over Texas cities, against which unnatural advantage
we now so earnestly protest. Freight into Texas
comes by the Gulf seaboard and can reach as far
north as middle Oklahoma on local reshipments on
a competitive basis with St. Louis. Dallas alone has
a wholesale business with the proposed district of
$211,000,000, to say nothing of the enormous aggregate done by other Texas cities. Dallas business
alone during the last three years has grown at the
rate of nearly 20 per cent annually.




119

I t is not surprising that St. Louis is asking this
committee to allow it to retain its artificial advantage
over Texas, but it will be supremely disappointing to
Texas if this committee heeds the request. The
claim of St. Louis to an important and vital relationship with the welfare of the Southwest will not
stand the acid test.
5. The distance to Texas from a regional bank
located in either of the cities named would greatly
diminish the value of the system to Texas. We
need pay no attention to New Orleans or Kansas City
in this connection, but will confine ourselves to
St. Louis; that city is 24 hours distant from the
average north Texas points, 36 hours distant from
the average south Texas points, and 48 hours distant
from the extreme western and southern Texas points.
A banker in Houston would need (allowing one business day in St. Louis) four nights and three days to
go to a regional bank in St. Louis to discuss a matter
of business with it, in case the need for discussion
arises, as might readily be the case upon his rediscount offerings. His expenses would be at least $75;
he would travel over 2,000 miles. His case would
not be an extreme one. He is 250 miles nearer
St. Louis than a Brownsville banker will be, and
about the same distance many other important Texas
points are. He would travel more than a banker
going from St. Louis to Boston or from New York to
Jacksonville or from Chicago to Dallas.
Such remoteness would inevitably result in ignorance on the part of the directors of the regional bank
of local conditions. In consequence credits would
not be so intelligently considered and delays and
friction would certainly result. Even if Texas had
a director on the board of the regional bank, he
would be but one man against many.
TERRITORY IN TEXAS DISTRICT.

1. All of Texas is demanding that a bank be placed
in Texas except that at El Paso. This desire is subordinated to a wish that El Paso be kept with New
Mexico and Arizona; that is, with its trade territory,
in no matter what district that territory be placed.
In any case, El Paso wants a branch bank, and with
that arrangement New Mexico and Arizona are content. With a branch bank at El Paso New Mexico
and Arizona can be as well served as their remote situation and scattered inhabitancy will permit under the
terms of the law. In the absence of a bank at Denver, a branch bank at El Paso would be more logically
added to the regional bank in Texas than elsewhere,
and should Denver be hereafter given a bank, the
El Paso branch could be bodily transferred to that
bank without any other disturbance and without impairing the ability of the remaining Texas district to
capitalize and support a bank. Texas trade relations

120

LOCATION" OF RESERVE DISTRICTS.

with the Pecos Valley in New Mexico are respectable.
El Paso only, among Texas cities, however, has close
relations with the remainder of New Mexico, and her
relationship to New Mexico and Arizona justify the
inclusion of that territory in the El Paso branch. I t
is to be noted, however, that Texas did not include
Arizona in her proposed district and that it can dispense if necessary with El Paso and New Mexico.
2. The physical situation of New Mexico has been
explained; if it and Arizona want to go into the branch
bank district of El Paso and that city can fairly serve
them, they appear to be quite content to become part
of any district to which El Paso may be attached.
No violence, therefore, will be done, either to their
wishes or their trade connections, by including them
in the Texas district.
3. If a regional bank were put in New Orleans, the
portion of Louisiana which Texas claims would prefer
to go into the New Orleans district. Without a
regional bank in New Orleans and with one at Dallas,
certainly all of north Louisiana and perhaps more of
its area would prefer the Texas bank over the Atlanta
or St. Louis bank. I t already trades largely in Texas;
that trade is increasing and has proved that Texas
points could serve that portion of the district.
4. Under established conditions southwestern
Arkansas sells its cotton, its vegetables, its fruit,
largely in Texas. Perhaps more of its general business
is done in St. Louis; it would doubtless prefer St.
Louis. However, it is closer to Texas than to St.
Louis; it could be better served from Texas; no violence to its business would be done by putting this
southwestern area with the Texas district.
5. Southern Oklahoma is identified with Texas in
every way. Texas people settled it up; Texas buys its
cotton; her cattle grazes its ranges; Texas buys its
stock, its gas, its oil, and its lumber. Northern Oklahoma is divided, a part preferring Kansas City, a part
preferring St. Louis. Texas is closer to it, however,
in every way, and can serve it better than any other
State.
No doubt there are many people in Louisiana,
southwestern Arkansas and Oklahoma who would
prefer not to be put in the district with Texas cities.
There are many, however, who favor the Texas district. Some violence must be done, for manifestly
this committee can not please those holding such
opposing views. The nearest possible reconcilement—
if the endeavor is to be made to please everybody—
would be to put southern Oklahoma with the Texas
district and northern Oklahoma with the St. Louis
district, assuming, of course, that no bank is to be put
at Kansas City.
I t is certainly true that less violence will be done
the wishes of the communities mentioned by such an
alignment than would be done to all of Texas if the St.
Louis plan is follo*wed by this committee. Texas does




not want to be made a part of the St. Louis district.
If it is made a part of that district it will be done over
its protest and against its will. If St. Louis can seriously propose to take Texas by force, although
Texas is larger, richer, more prosperous, has more
banking capital, produces more, Texas ought not to
be criticized for asking that its territory include areas
whose inhabitants are divided in opinion.
Necessarily as the boundaries of districts are neared
debatable territory is reached; differences of opinion
in such territory are inevitable. Texas can, however,
stand alone in her application for a regional bank;
strip off all the outside territory and Texas can still
stand for itself and show its title to a bank.
THE ARGUMENT OF F U T U R E

GROWTH.

When a district can abundantly qualify now, its probable future should be considered by this committee as
reason for or against giving it a bank. With a population increase in the last census decade of 39 per cent,
a cultivated area increase of 46.5 per cent, production
of farm crops increase of 88.9 per cent, and in the last
14 years an increase in the number of banks of 454
per cent and an increase in their capital and surplus
of 510 per cent, there exists no justification for ignoring this feature of her appeal to this committee.
POLITICAL

CONSIDERATIONS.

The matter of locating regional banks is not primarily, nor even principally, a political question.
Every governmental faculty, however, has a political
element and every governmental agency a political
phase. No system of banking will long succeed which
does violence to the wishes of a great fraction of the
people of this country. Such political considerations
as affect this feature of the problem are therefore of an
entirely proper character for consideration by this
committee. They enter into the consideration of the
bill itself. The diverse contentions of people of varying opinions strengthen it in some respects, weaken it
in others, but are allowed of necessity to affect the
situation, because in this country the people make
the laws under which they live.
I t is rarely possible to attain the ideal in any legislation that attracts during its consideration foes as
well as friends. The reason for this is that legislators
must take into consideration the wishes of their
constituents.
The currency bill when under consideration attracted
to its support those who believed that the present
administration would locate the banks regionally. In
other words, those who thought that the old order
was passing and that in its place was coming a new
order. Those communities, already barricaded behind the money furnished by the rest of the country,
wanted no such bill. These other communities who
for 50 years had suffered under a law which forced

121

DALLAS, TEXAS.

them to furnish to remote cities the first fruits of their
increase were for it, because in it they hoped to find
relief. Texas has been to the fore in this movement
for the new freedom. It enlisted early and enlisted
for the war; it asks no undue consideration in this
matter on that account. I t does not so cheaply state
its reasons for adherance to the great cause. It does
feel, however, that these things give it standing to
protest against a new injustice being done to it. It
claims the benefit of any doubt. It does not want to
deprive St. Louis of a bank. One ought to be put in
St. Louis, but Texas claims the same independence
for itself. After 50 years of tribute she asks for freedom; she can stand alone. She can make her banks
succeed. There can be no such thing as a lame bank
under this system if the law is applied according to
its intent. The rediscounting power, the note issuing

power, the confidence the people will have in the new
system will standardize all the units. Texas claims
her commercial independence as of right and makes
the claim to an administration peculiarly pledged to
a governmental policy of liberation.
DALLAS CLEARING H O U S E

ASSOCIATION,

DALLAS CHAMBER OF COMMERCE,
DALLAS COTTON

By

EXCHANGE,

Banker, Chairman.
Banker,
M . H . W O L F E , Cotton Broker,
E D G A R L. F L I P P E N , Manufacturer,
Louis L I P S I T Z , Wholesaler,
A . M . M A T S O N , Wholesaler,
R H O D E S S. B A K E R , Attorney,
Special Committee.

JOHN W . WRIGHT,

J . HOWARD ARDREY,

MISCELLANEOUS LETTERS AND CONTRACTS RELATING TO DALLAS, TEX.
EXHIBIT

A.—Letter from the secretary of the Interstate Cottonseed Crushers' Association, headquarters at Dallas,
Tex., giving list of mills in the cotton producing
States that are members of the Interstate Association.
B.—Brokers' contracts covering sales of goods manufactured at Dallas—
To buyers at—
Seattle, Wash.
San Fancisco and Los Angeles, Cal.
Milwaukee, Wis.
St. Paul, Minn.
Vancouver, British Columbia.
Chicago, 111.
Kansas City, Mo.
Joplin, Mo.
New Orleans, La.
Nogales, Ariz.
To jobbers at E l Paso, Tex., for distribution in
New Mexico.
To Copenhagen, Denmark.
To Liverpool and Manchester, England.
To Progreso, Mexico.
C.—Recent sale to one of the Texas wholesale grocery
houses, which gives a good idea of the large volume
of business in Texas.
EXHIBIT

A.

COTTONSEED-OIL MILLS, M E M B E R S O F T H E I N T E R S T A T E COTTONSEED
CRUSHERS*
DALLAS,
THE

ASSOCIATION,

HEADQUARTERS

OF

WHICH

ARE

IN

TEX.

INTERSTATE

COTTONSEED C R U S H E R S '

ASSOCIATION,

Dallas, Tex., February 6, 1914.
Mr. E . L . FLIPPEN, Dallas,

Tex.

There are 285 cottonseed-oil mills members of this
association, the headquarters of which are in this city, and which
I give below according to States:
DEAR SIR:

Alabama
Arkansas
Arizona
Florida
Georgia
Kentucky
Louisiana
Mississippi
Missouri




24
21
1
1
34
1
21
35
3

North Carolina
Oklahoma
South Carolina
Tennessee
Texas
Virginia
Bombay, India
Total

18
23
18
15
67
2
1
285

Including these, there are over 800 cottonseed-oil mills in the
South engaged in crushing cottonseed, everyone of which uses the
rules and regulations promulgated and issued by the Interstate
Cottonseed Crushers' Association in the conduct of their business.
Very truly, yours,
ROBERT

GIBSON,

Secretary and Treasurer.
EXHIBIT

B.

One carload refined cottonseed oil for Seattle, Wash.
Five carloads of refined cottonseed oil for Chicago, 111.
One carload refined cottonseed oil for San Francisco, Cal.
Five carloads refined cottonseed oil for New Orleans, La.
Five carloads refined cottonseed oil for Los Angeles, Cal.
Three carloads refined cottonseed oil for Kansas City, Mo.
One hundred and fifty barrels of refined cottonseed oil for Copenhagen, Denmark.
One carload of refined cottonseed oil for Joplin, Mo.
U N I O N STOCK

YARDS,

Chicago, October 3, 1913.
A R M S T R O N G P A C K I N G C O , Dallas,

Tex.

: Referring to the exchange of telegrams of the 2d, we
confirm purchase from you for account of Swift & Co., Los Angeles,
Cal., of one buyers' tank car (160 barrels) deodorized choice neutral
winter pressed salad oil at 60 cents per gallon c. a. f. Los Angeles,
shipment first half October or sooner if possible.
You will please make shipment of the above to Swift & Co., Los
Angeles, and invoice and draw direct on them for same. When
ready to make shipment, please call on Swift & Co., Fort Worth, for
tank car, which we have instructed that they deliver to you
promptly upon request.
We will appreciate you making shipment at the earliest possible
moment. Please send us sample of the oil you intend shipping
as soon as possible, addressing to this department, and advise us
when and how sent that lookout may be kept for it.
Yours, respectfully,
GENTLEMEN

SWIFT &
EXHIBIT

Co.

B.

Seventeen thousand six hundred boxes of soap for El Paso, Tex.
Sixteen hundred boxes of soap for Nogales, Ariz.
Fifteen hundred barrels of cottonseed soap stock for Milwaukee,
Wis.
Thirty-six thousand pounds of cottonseed soap stock for St. Paul,
Minn.
Forty thousand pounds of cottonseed soap stock for Vancouver,
British Columbia.

122

LOCATION" OF RESERVE DISTRICTS.
MILWAUKEE, WIS., October 28,

1913.

ARMSTRONG PACKING CO.,

Dallas, Tex.
In reply to your telegram October 27 and letter of October 25,
we herewith confirm our order b y telegraph:
"Book order 1,000 barrels soap stock; quality as before; $2.25
f. o. b. Dallas, over next year."
O ' N E I L OIL & PAINT CO.,

Per

GEO. F . O'NEIL,

President.

I t is further agreed by the party of the second part that on completion of contract, provided same is carried out according to terms
of same, the party of the second part will rebate party of the first
part five cents per box on B&B only. The party of the first part
agrees that in consideration that he has exclusive sale of B&B
for E l Paso and El Paso County, and that he will not handle any
other yellow soap during the life of this contract.
This contract is made subject to strikes, accidents, car supply,
or other causes beyond control.
M . AINSA &

A. P. Co.,
Dallas.
Ship as quickly as possible, Dick Co., Nogales, two cars, eight
hundred boxes each, rose two dollars delivered.
VAN C. WILSON

We certify the foregoing to be a true and correct copy of original
contract.
ARMSTRONG
FRED G.

EXHIBIT

December 16, 1913.
We have this day sold to M. Ainsa & Son, El Paso, 2,000 boxes
of laundry soap, terms and conditions the same as contract dated
April 10,1913, for 14,000 boxes, except that the price on the B. & B.
soap on the contract for these additional 2,000 boxes will be $2.20
per box instead of $2.10, as in the original contract of April 10,1913.
The price on other brands of soap will remain the same as in the
original contract. I t is understood that this subsidiary contract
will run concurrently with the one made April 10, 1913, and that
the time limit on these additional boxes will be the same as in the
original contract, viz, December 31st, 1914.
(Sig)

CO.

TONGUE.

Accepted:
M . AINSA & SONS

(INC.).

We certify that the foregoing is a true and correct copy of original
contract.
ARMSTRONG PACKING

CO.

FRED G . TONGUE.

S T A T E OF T E X A S ,

County of El Paso, ss:
This agreement, made this 10th day of April, 1913, between
M. Ainsa & Sons, of El Paso, Tex., party of the first part, and Van C.
Wilson, representing the Armstrong Packing Company, a Texas
corporation having its principal office in Dallas, Tex., party of the
second part:
Witnesseth, That the party of the first part hereby buys from
the party of the second part, and the party of the second part
hereby sells to the party of the first part fourteen thousand (14,000)
cases of soap, consisting of B&B, regular style, at two dollars
ten cents ($2.10) per box; twelve-ounce " S t a r " at two dollars
eighty cents ($2.80) per box; White Rose, one dollar seventy cents
($1.70) per box; A. P. C., at two dollars twenty cents ($2.20) per
box—all c. a. f. El Paso. Terms sixty days, or 2 per cent cash ten
days.
This contract shall run for a period of eighteen months, ending
December 31st, 1914, and shall begin July 1st, 1913.
The party of first part agrees that shipments are to be made as
follows:
July, 1913, five hundred boxes of B&B (unless specifications are
changed in ample time to permit shipment) to be shipped on the
10th and 20th. The same shipment for August, September, and
October. Five hundred boxes to be shipped on the fifteenth of
November, December (1913), January, February, March, and
April, 1914. Five hundred boxes, each, May 10th, 20th, June 10th
and 20th, July 10th and 20th, August 10th and 20th, September
10th and 20th, October 10th and 20th. A shipment of five hundred
cases (500) shall be made November 15th and December 15th,
1914.




PACKING

CO.,

INGELL.

CO.

DALLAS, T E X . ,

ARMSTRONG PACKING

SONS,

ARMSTRONG PACKING CO.

E L PASO, T E X . , 2/4/14.

B.

Three carloads of refined cottonseed oil and two carloads of cottonseed-oil lard for Progreso, Mexico.

EXHIBIT

B.

Eight hundred barrels of cottonseed soap stock for Liverpool.
Thirty-five hundred barrels of cottonseed soap stock for Manchester.
Five hundred boxes of cottonseed-oil lard for Manchester.
G A L V E S T O N , T E X A S , NOV. 4th,

Messrs.

1913.

Dallas.
D E A R SIR: We hereby beg to confirm your engagement of room
for 500 bbls. hard soap stock, per month, from Galveston to Manchester, January to July, inclusive, 1914, at 20c. per 100 lbs., you
paying wharfage, per S. S. Larrinaga Line or other A1 steamer, to
be delivered alongside the vessel or at her loading berth to suit
steamer.
I t is understood and agreed that this contract is made subject to
the rules of the Galveston Maritime Association, printed on the back
and made a part hereof, and on the express understanding that it
is subject to all the clauses and conditions contained in the ocean
bill of lading used by the vessel, which bill of lading is made a part
of this contract, and copy of which will be furnished on application.
Steamer has the option of calling at other port or ports, in any order,
to load and (or) discharge coal and (or) cargo.
ARMSTRONG PACKING C O . ,

FOWLER &

MCYITIE,

Ship
June-July parcels are subject to our having sailings.

EXHIBIT

Agents.

C.

D A L L A S , T E X . , January
30,1914.
Tyler, Tex.
G E N T L E M E N : Confirming phone conversation with your Mr.
Caldwell to-day, we have sold you 40 cars of Bird Brand lard, to be
shipped to Tyler and your other Texas branch houses b y August 1.
I t is understood that a minimum car consists of 24,000 pounds,
making t h e total amount contracted for 960,000 pounds.
The above sale has nothing to do with t h e 10 cars of Bird Brand
lard sold you for February shipment, on which we have specifications and shipping instructions for 2 carloads.
Yours, truly,
STARR-MAYFIELD C O . ,

ARMSTRONG PACKING

Co.

M A R C H 4,1914.
SIR : On behalf of the Secretary of the Treasury, I beg to acknowledge the receipt of your letter of February 26, inclosing an affidavit
from the secretary of the Dallas Cotton Exchange w i t h reference to

DALLAS, TEXAS.

the claims of Dallas as a cotton market and to advise that the same
has been filed in order that i t may be considered by the committee
when it is determining the question of the location of Federal
reserve banks to be established.
Respectfully,
Mr. M. H .

Secretary Reserve Bank Organization Committee.
Dallas, Tex.

WOLFE,

DALLAS, T E X . ,

February 26, 1914.

M r . MCADOO,

Secretary of the Treasury, Washington, D. C.
SIR: At the regional bank hearing at Austin you will
perhaps recall that it became my duty to offer the statements concerning matters pertaining to cotton in the district we had laid out.
We notice from the press reports that at the New Orleans hearing some Memphis (Tenn.) man questioned the correctness of my
figures. When the matter was called to the attention of the Dallas
Cotton Exchange a meeting of the members of the exchange was
held, at which meeting my figures were confirmed and the secretary
of the cotton exchange was instructed to make affidavit thereto and
forward to you, which has been done.
I trust you will let this serve to straighten out the matter, and
with thanks for your consideration in the premises, I beg to remain,
Yours very truly,
DEAR

M. H.

WOLFE.

[From the Dallas Morning News.]
COTTON F I G U R E S C O R R E C T — S E C R E T A R Y OF E X C H A N G E A U T H O R I Z E D
T O M A K E AFFIDAVIT TO DATA F U R N I S H E D

BANK

COMMITTEE.

The claims of Dallas as a cotton center having been disputed at
the New Orleans hearing of the regional bank organization committee recently, the Dallas Cotton Exchange, at a meeting yesterday,
adopted a resolution instructing the secretary of the exchange to
make affidavit to the effect that he had furnished the disputed
figures to M. H. Wolfe, who presented them at the regional bank
hearing at Austin, and that they were correct, as shown b y the
records of the Dallas Cotton Exchange.
Mr. Wolfe testified at the Austin hearing at the request of the local
committee of bankers and business men, and in his testimony he
declared that Dallas cotton buyers during 1913 bought 1,459,000
bales of cotton. At the New Orleans hearing press reports showed
that witnesses there attempted to discredit that statement.
The resolution was adopted, as follows:
"Resolved, That the secretary make affidavit to the effect that
he furnished M. H. Wolfe, a member of this exchange, with the
figures showing the amount of cotton handled by our members, out
of last season's crop, and that same is true, as shown by the records
of this exchange.
" N . W. N O L L E Y , Secretary. "
M. H. Wolfe has furnished the following cotton statistics:
Cotton area of all the South, 892,072 square miles.
Cotton area in 12 hours' ride of Dallas, 437,794 square miles, or
49 per cent.
Total cotton produced in South last year, 14,101,000 bales.
Cotton produced in 12 hours' ride of Dallas, 6,857,000 bales, or
48$ per cent.
Texas produced last year 4,902,000 bales.
Oklahoma produced last year 1,057,000 bales.
Arkansas produced south of the Arkansas River 505,000 bales.
Louisiana produced 393,000 bales.
Dallas cotton buyers bought last year 1,459,000 bales.
Dallas cotton buyers have salaried men covering all sections of
Texas, Oklahoma, Arkansas, and Louisiana, and paid out for cotton
last year approximately $92,000,000, and approximately $80,000,000
of this cotton was financed directly or indirectly by the Dallas
banks.




123
[From the Baptist Standard, February 26,1914.]
COTTON A N D

RELIGION.

Because the cotton business offers temptation to gamble, we are
not to conclude that such business is inconsistent with Christian
ideals. We have many buyers of cotton who do not deal in futures,
but follow the lines of legitimate trade.
One of the greatest cotton buyers in the South is Deacon M. H .
Wolfe, of this city. We were interested recently in seeing in the
Cotton Trade Journal, published in Savannah, Ga., an appreciation
of our beloved brother. We quote in part:
"Some time ago Mr. Wolfe entered a leading cotton exchange out
West. He was approached b y somebody who proposed to tell him
how to make a large amount of money overnight.
"'Will you do it?' asked the party.
" ' N o , ' replied Wolfe.
" ' W h a t , ' exclaimed the man, 'you would not do what I suggest if
a large amount is certain # to be made over night?'
" ' N o , ' again replied Mr. Wolfe. ' I do not speculate.'
"M. H. Wolfe, is quiet, calm, collected, and calculating. He is
young in appearance. There is no pretension about him. He is
just a plain, solid American, with the sparkle of keenness about the
eye when business is broached, but without any of the proverbial
wrinkles of wisdom. There is no stiffness nor formality about him.
He sits in his outer office on the top floor of the Dallas Cotton Exchange Building, apparently ready to see anybody who has business
with him. He makes no pretense of possessing qualities superior
to others in the cotton business. He is simply buying and selling
as a cotton merchant. He is a puzzle to westerners and Europeans,
because he pays highest prices, sells at lowest prices, ships satisfactorily, and makes money. I t is said that in some markets merchants request Wolfe's cotton.
"As strange as it may seem to cotton men, Mr. Wolfe draws the
line on all alcoholic beverages, and on all occasions, no difference
who is present, nor what it may mean to him to decline to drink.
He absolutely refuses to drink alcohol with any man as one of the
means of soliciting business. Yet, he is liberal in his views, and
not in the least denies to others what he in turn denies to himself.
He is among the leading men of Dallas, being interested in banks
and other enterprises of that prosperous city, but his methods are
characteristic of the man who knows what he is about and goes
quietly in pursuit of his affairs.
"There is no hypocrisy about M. H. Wolfe. The exact conduct
he follows in Dallas he adheres to elsewhere. People who know him
know this. He employs none of the occasional bluffs some cotton
men regard as assets. When Wolfe wants cotton he goes after it.
His tactics are not to pace an exchange with a hungry look, but to
hustle out and pay the price."
We knew all of this about Brother Wolfe, b u t it is good to read this
testimony from his business associates. Every Christain business
man should so live that his associates, even those who are not
Christians, will express their confidence in his Christian profession
and integrity of character.

MARCH 4, 1914.

SIR: On behalf of the Secretary of the Treasury I beg to acknowledge the receipt of your letter of February 28, inclosing an affidavit
from the secretary of the Dallas Cotton Exchange with reference to
the claims of Dallas as a cotton market and to advise that the same
has been filed in order that it may be considered by the committee
when it is determining the question of the locations of Federal reserve banks to be established.
Respectfully,
Secretary Reserve Bank Organization Committee.
M r . J . R . BABCOCK,

Secretary Dallas Chamber of Commerce,
Dallas, Tex.

124

LOCATION" OF RESERVE DISTRICTS.
DALLAS, T E X . ,

February 28, 1914.

M r . WILLIAM G . M C A D O O ,

Secretary of the Treasury, Washington, Z>. C.
We understand that in the hearing at Memphis the
fact was set forth there that the claims of Dallas as a cotton market
were not accurate.
I beg to inclose you herewith affidavit from the Secretary of the
Dallas Cotton Exchange, in due form, testifying to the fact that the
records of this exchange show that 1,459,000 bales of cotton were
handled here during the last year and that the facts as testified to
by Mr. H. M. Wolfe, of our committee, at Austin, are correct.
Yours, very truly,
DEAR SIR:

J . R . BABCOCK,

Secretary Dallas Chamber of Commerce.
DALLAS COTTON

EXCHANGE,

Dallas, Tex., February 25, 1914.
Personally appeared before me, a notary public, N. W. Nolley,
secretary Dallas Cotton Exchange, who, 'being duly sworn, says
that he collected the data from the various members of the exchange
and that the total amount of cotton handled last season b y the Dallas shippers as furnished Mr. M. H. Wolfe, in making u p his statement at the regional bank hearing, was approximately 1,459,000
bales, as shown b y the records of this exchange.
N . W . N O L L E Y , Secretary.
Sworn and subscribed to before me this 25th day of February,
1914.
[SEAL.]

A . S. BARNETT,

Notary Public, Dallas County, Tex.
Whereas the provisions of the Federal reserve act require that the
country be divided into not less than 8 nor more than 12 districts, within each of which a Federal reserve bank shall be
located; and
Whereas the agricultural, commercial, and financial importance,
both present and prospective, of Texas and the contiguous States
in the Southwest make it necessary under the system to be established that one of the Federal reserve banks be located within
this section to serve properly the vast interests therein and promote the development of the wonderful resources thereof; and
Whereas at this annual meeting, on February 5,1914, the members
of the fifth district of the Texas Bankers' Association desire to
record their views with respect to the location of the Federal reserve bank to serve the district, within which there are located
405 State and national banks, having a capital and surplus of
$36,392,000, the same being 30 per cent in number and 31 per
cent of the capital and surplus of all the banks in Texas: Therefore, be it




Resolved (1), That we hereby ratify and indorse as the logical and
geographical designation of the district to be created within which
to locate the Federal reserve bank, the following: All of Texas; all
of Oklahoma; all of New Mexico; all that part of Arkansas south of
the Arkansas River; all that part of Louisiana west of the Mississippi River.
(2) That the city within this district best qualified as the location
of the Federal reserve bank to serve the same b y reason of its geographical location, commercial importance, and unexcelled facilities is the city of Dallas.
(3) That the chairman of this district be, and he is hereby, directed to appear before the Reserve Bank Organization Committee
at its hearing, at Austin on February 9 and 10, and present thereto
a copy of this resolution and give such further testimony in support
thereof as may be necessary.

Whereas the organization committee is confronted with the problem
of dividing the United States, under the Federal reserve act,
into not less than 8 nor more than 12 districts, and to locate in
each district a Federal reserve bank; and
Whereas the United States Census Department has always classified Texas, Oklahoma, Arkansas, and Louisiana as the West
South-central geographic division; and
Whereas Dallas is the logical and geographical center of this territory; and
Whereas this is practically the same territory that Dallas is asking
for to be tributary to a regional bank at Dallas; and
Whereas the diversified interests of this territory are such as to make
it a balanced district and the demand for money uniform during
12 months in the year; and
Whereas if annexed to any other territory it would redound to t h e
benefit of said other territory and to the detriment of the Dallas
territory: Therefore be it
Resolved, by the undersigned manufacturers of the city of Dallas,
That to conserve, foster, and expand the agricultural, financial,
commercial, and manufacturing interests of this rapidly glowing
section of the United States, one of the Federal reserve banks provided for under the Federal reserve act should be located at Dallas.
Respectfully submitted.
ARMSTRONG REFINING CO.,

By E. L.

FLIPPEN,

President.

ARMSTRONG PACKING

By E. L.

FLIPPEN,

COMPANY,

President.

B R O W N CRACKER & CANDY CO.,
B y SMITH & L A M A R ,

Agents.

(And 27 other firms.)




£
£
ui
X
>

ui

Total resources as shown by Comptroller's call of national banks on October 31, 1913.

to
Oi




DENVER, COLO.

DENVER, COLO.
BRIEFS OF THE DENVER CHAMBER OF COMMERCE AND THE DENVER CLEARING HOUSE
ASSOCIATION.
FEBRUARY 9, 1 9 1 4 ,

The Reserve Bank Organization Committee.
G E N T L E M E N : The regional bank committee of the
Denver Chamber of Commerce and of the Denver
Clearing House Association beg leave to present to
your committee the following brief summary of Denver's claim for a Federal reserve bank.
We assume that in response to an almost unanimous
expression of public opinion your committee will decide to divide the continental United States into the
minimum number of eight districts.
We also assume that, while the exact boundaries of
these eight districts are as yet undetermined by you,
that the claims of at least six cities, to be known as
"Federal reserve cities," have been fairly well established, to wit, Boston, New York, Chicago, St. Louis,
New Orleans, and a city within the triangle formed by
a line drawn from Atlanta to Philadelphia, thence to
Cincinnati, and thence to Atlanta.
This gives six Federal reserve banks out of eight to
less than one-third of the territory of the United
States, and leaves but two Federal reserve banks to
serve more than two-thirds of the territory of the
United States. Unquestionably one of these two remaining Federal reserve banks will be located on the
Pacific coast, presumably at San Francisco. This
leaves but one Federal reserve bank to be located in a
city that can best serve the vast territory lying between the Chicago, St. Louis, and New Orleans districts on the east and the San Francisco district on the
west. What city will best serve this vast territory?
Before answering this question it is necessary to
determine, "with due regard to the convenience and
customary course of business," how far the Chicago,
St. Louis, and New Orleans districts can extend westward, and how far the San Francisco district can
extend eastward in order to see what territory is left
in between.
We believe that a line drawn through Nebraska,
Kansas, and Texas close to the one hundredth meridian
should be the western boundary of the Chicago, St.
Louis, and New Orleans districts, for close to such a
line there is a broad belt of country where the density
of population is the lightest, and where the kind of
crops and methods of farming change, where the cus46458°—S. Doc. 485, 6 3 - 2




9

tomary course of business changes, where, with the
change of time from "central time" to "mountain
time," the people seem to gradually change their
sympathies, and those to the east of this belt naturally
turn to the East for their sympathetic and business
ties, while those to the west of this belt just as natually rturn to the West as an outlet for their products
and as the source of their supply.
Certainly St. Paul-Minneapolis, 411 miles and 10J
hours time from Chicago and Omaha, 491 miles and
12b hours time from Chicago, are geographically clearly
within the Chicago district, and so far as "the convenience and customary course of business" are concerned, they should unquestionably be included in the
Chicago district.
Certainly Kansas City, 283 miles and
hours time
from St. Louis and only 454 miles and 12 hours time
from Chicago, is geographically and commercially in
the St. Louis district and could be included in the
Chicago district.
Both Fort Worth and Dallas, Tex., are within 500
miles of New Orleans, and well connected with that
city by quick transportation lines.
These cities of St. Paul-Minneapolis, Omaha,
Kansas City, Dallas, and Fort Worth, and the territory
tributary to them, can be well and quickly served by
Federal reserve banks in Chicago, St. Louis, and New
Orleans, "with due regard to the convenience and customary course of business," and none of these cities
should be excluded from its proper district in order
that it may secure the remaining Federal reserve bank,
and thereby deprive this vast and distinctive Rocky
Mountain region of a Federal reserve bank, and force
it to do business with a Federal reserve bank from 600
to 1,500 miles away, and necessarily out of touch with,
and not responsive to, the peculiar and distinctive
needs of this vast Rocky Mountain region.
We believe that a line drawn close to the eastern
boundary of Washington, Oregon, Nevada, and the
western one-third of Arizona, should be the eastern
boundary of the San Francisco district, for close to
such a line nature herself has divided the regions by a
mountain range in the north and a broad expanse of
desert in the south, and close to such a line the customary course of business and of sympathy changes
129

130

LOCATION" OF RESERVE DISTRICTS.

and the density of population is the lightest. To
extend the San Francisco district farther east would
disturb the " convenience and customary course of
business" and do violence to the wishes and sympathies of the people of the Rocky Mountain States.
These boundaries of the Chicago, St. Louis, and New
Orleans districts to the east of us, and of the San
Francisco district to the west of us, leaves the Rocky
Mountain States of Idaho, Montana, Utah, Wyoming,
Colorado, New Mexico, and the eastern two-thirds of
Arizona, and also the portion of Texas, Kansas, and
Nebraska west of the one hundredth meridian, and the
Deadwood portion of South Dakota, in a district of
its own about 700 miles east and west by about 1,200
miles north and south and near the geographical center
of this vast region is the city of Denver, which we hope
your committee will select as the home of the eighth
Federal reserve bank to be known as the " Federal
Reserve Bank of Denver."
We are now ready to answer our previous question
as to what city will best serve this vast Rocky Mountain region by answering Denver.
We imagine that your committee will find its
chief difficulty in dividing the country into districts
"with due regard to the convenience and customary
course of business/' as required by the Federal reserve
act, but having made the division, your committee
will have very little trouble in selecting the Federal
reserve cities for each district. We say this because
we feel that so far as selecting a Federal reserve city
for this Rocky Mountain district is concerned, there
are but two factors that control the selection. The
first factor requires the selection of a city with adequate railroad, telephone, and telegraph lines, that is
nearest the geographical center of this district, and
the second factor requires the selection of a city in
this district that has the greatest volume of business
transactions with the largest portion of the district.
So far as this district is concerned, there is no need of
determining the relative importance of these two
factors, for there is one city, and only one city, in
this district that meets the requirements of both
factors, and that city is Denver.
There is no other city of any size in this suggested
territory that is as near the geographical center of the
district as Denver. This is a physical fact that can
not be disputed.
Denver not only has adequate, but it admittedly
has the best railroad, telephone, and telegraph connections of any city in this district.
RAILROADS.

Denver is the greatest railway terminal between
the Missouri River and the Pacific coast, served by 12
railroads, with 148 passenger trains in and out each
day that reach every part of this suggested district,
except the most remote, in 24 hours, and 85 per cent




of the total population of the district can be reached
within 15 hours. All of these trains start from Denver, and consequently are not belated, and this gives
Denver a great advantage as a distributing center.
(See statement and exhibits of Richard H. Malone,
p. 2248 of stenographer's minutes of hearing in Denver.)
TELEGRAPH.

Denver is the administrative center as well as the
fiscal agency for all moneys of the Mountain division
of the Western Union Telegraph Co., which includes
Montana, Wyoming, Idaho, Utah, Colorado, New
Mexico, Kansas, and Nebraska, and was selected as
the most convenient center among these eight States
after careful study of the situation.
(See statement of William J. Lloyd, p. 2332 of
s tenogr apher' s minutes.)
TELEPHONE.

Denver is the headquarters and fiscal agency of the
Mountain States Telephone & Telegraph Co. that
employs a force of more than 6,000 and covers over
600,000 square miles of territory and reaches all of
the principal cities in the States of Idaho, Montana,
Utah, Wyoming, Colorado, New Mexico, and the Pan
Handle of Texas.
(Statement of W. P. Allen, p. 2335, stenograher's
minutes.)
MISCELLANEOUS.

Denver, because of its geographical center and
transportation and communication advantages, has
been chosen as the consular headquarters for this district of 12 great foreign powers (statement of Gordon
Jones, p. 2176 of stenographer's minutes); and presumably for the same and other reasons the United
States Government established and maintains in
Denver the most modern mint in the United States,
that purchases, coins, distributes, and stores more
gold than any other United States mint (statement of
Gordon Jones, p. 2174 of stenographer's minutes).
Denver has the greatest volume of business transactions with the largest portion of the suggested district of any city in the district.
BANKING.

The banks in the suggested district carried in the
six Denver clearing house banks an average aggregate
%
balance of $16,780,000. The volume of cash collections sent by Denver clearing-house banks in 1913 to
other banks in this district was $287,620,000. The
out-of-town cash business handled in 1913 by the
Denver clearing-house banks for their customer banks
in this district was $239,550,000. The Denver clearing-house banks handled in 1913, $16,000,000 in shipments of currency, gold and silver for customer banks
in this district. The average deposits in all Denver

DENVER,

banks for 1913 was $75,000,000. Denver banks seldom borrow, and frequently discount outside paper.
The National banks in the suggested district would
yield approximately $3,400,000 of the required $4,000,000 of capital for a regional bank for this district, and
the State banks desire to, and will join as soon as State
laws are amended and individuals, if permitted will
subscribe for the balance of the required capital stock.
The reserves of Denver banks are carried mainly
in Chicago, New York, and St. Louis. Denver's second choice for a Federal reserve bank would be Chicago. A branch bank would not serve the needs of
this district, and a Federal reserve bank in Denver
would do much to develop this district with its varied
and distinctive industries.
(Statement of George B. Berger, p. 2177 of stenographer's minutes.)
INVESTMENT

BONDS.

Denver is the bond center of the territory from the
Missouri River to the Pacific coast. The bond dealers
of Denver sold and purchased in 1912, and also in
1913, an average of $82,484,462 per year of investment bonds at market value. These sales and purchases are financed in Denver.
(Statement of Alexis C. Foster, p. 2210 of stenographer's minutes.)
FIRE

INSURANCE.

The recognized fire insurance centers of the West
are Chicago, Denver, and San Francisco. Denver is
the logical point in this district for the handling of
the insurance business, collection of premiums, the
adjusting and payment of losses, and all money transactions concerning the same are handled by Denver
banks.
(Statement of J. Frank Edmonds, p. 2215 of stenographer's minutes.)
COAL, COKE, MARBLE,

AND

CEMENT.

In 1912 Colorado produced 10,977,824 tons of coal
and coke, having a mine value of $16,345,336. This
production was 38 per cent of all coal produced in the
United States west of the one hundredth meridian.
Twenty per cent of this was distributed to the railroads, 30 per cent to the State of Colorado, and the
remaining 50 per cent was distributed to other States
in this district. Companies and individuals doing
95 per cent of this business have their headquarters
in Denver, and the business is financed in Denver.
The States of Colorado, Montana, New Mexico,
Utah, and Wyoming are the coal-producing States of
the West, and in 1912 they produced 27,974,416 tons
of coal and coke, having a mine value of $43,635,121.
This production constituted 89 per cent of all the coal
and coke produced in the United States west of the




131

COLORADO.

one hundredth meridian; the remaining 11 per cent
was produced in the Pacific Coast States and Alaska.
The United States Geological Survey estimates
that 46 per cent of the coal reserves of the United
States are in the States of Colorado, New Mexico,
Utah, Wyoming, and Montana.
The Colorado Fuel & Iron Co.'s plant at Pueblo,
Colo., is the largest steel plant west of the Missouri
River, and supplies all the rails for railroad building
and renewals west of the Missouri River, and its
annual production and distribution of rails and steel
products is very large.
The Colorado and Wyoming oil fields are extensive,
and their operations are financed in Denver and Colorado. The supply of oil, especially in the Salt Creek
region of Wyoming, is so large that the United States
Government is now engaged in litigation with the idea
of preserving and utilizing some of these fields for
aaval purposes.
The Color ado-Yule Marble Co., in Gunnison County,
Colo., has an inexhaustible supply of the best marble
in the United States, and is now supplying marble to
all sections of the United States, and it is financed in
Denver.
The Colorado Portland Cement Co. produces and
distributes through this entire region a very large portion of the cement used in this district, and it is
financed in Denver.
(Statement of John C. Osgood, p. 2218 of stenographer's minutes.)
LIVE

STOCK.

The live-stock industry is one peculiar to the West,
and is of great magnitude and of vast importance to
all sections of the United States. It is built up and
maintained by conditions, customs, and financial aid
peculiar to itself. In the district of which Denver is
the center the movement of cattle is largely from
south to north. The young cattle are bred in Mexico,
in the Pan Handle of Texas, and in New Mexico, and
are moved north through Colorado to Wyoming, Montana, and Idaho for feeding purposes, and thence to
Puget Sound, or to Denver and eastward for market
purposes. This movement of cattle is largely directed
and financed from Denver. The value of cattle received in Denver in 1913 was $28,000,000. After July
1 next Butte and Helena, Mont., will be nearer to Denver by rail by some 235 miles than to St. Paul and
Minneapolis.
(Statement of A. E. De Ricqles, p. 2225 of stenographer's minutes.)
SUGAR.

There are 17 modern beet-sugar factories in Colorado, and 15 other beet-sugar factories in adjoining
States. Each of the factories in Colorado represent
an investment of over $1,000,000. During 1913,
166,000 acres were devoted to sugar-beet culture in

132

LOCATION" OF RESERVE DISTRICTS.

Colorado, and 1,841,000 tons of beets were harvested.
For the raw product the farmers were paid $10,390,000.
The sugar manufactured in Colorado during the season just closed was 230,000 tons, worth $17,500,000.
Aside from the sugar, there are important by-products
used for stock-feeding purposes in this State. Denver is the headquarters of these sugar companies and
the distributing point for the production.
(Statement of Walter A. Dixon, p. 2234 of stenographer's minutes.)
MINING.

The States of the proposed Denver district are distinctively the mining States of the Union. This territory produced in 1912 $250,061,000 in gold, silver,
copper, zinc,, and lead. The control of most of these
operations, and the incident smelter operations, is in
Denver and financed largely in Denver.
(Statement of Thomas B. Burbridge, p. 2242 of
stenographer's minutes.)
MISCELLANEOUS.

In addition to the foregoing industries Denver is the
jobbing center for the larger portion of the region
claimed for the Denver district.
The wholesale boot, shoe, and rubber business
amounts to about $3,000,000 per year.
The wholesale drug business amounts to about
$2,000,000 per year.
The wholesale grocery business amounts to about
$20,000,000 per year.
The wholesale hardware business amounts to about
$1,500,000 per year.
Denver's trade relations are greater with Chicago
than with Omaha or Kansas City.
(Statement of John W. Morey, p. 2319 of stenographer's minutes).
The fruit- business of Colorado, western Nebraska and
Kansas, southern Idaho and southern Utah, New Mexico and the Panhandle of Texas is nearly all cleared
through Denver, and annually amounts to $23,500,000
and because the goods are perishable the shipments
must be financed at home and in this district.
Denver is also the favorite diversion point for shipments of California fruit to eastern points, and this
diversion also requires the use of large sums of money,
and this is supplied by Denver banks. The shipment
of all Rocky Mountain fruits from Denver is to all
parts of the United States.
(Statement of W. D. Tidwell, p. 2325 of stenographer's minutes.)
The shipments of alfalfa, hay, potatoes, and melons
from Colorado to all portions of the country is very
large, and in the fall of the year taxes the car capacity
of all of our railroads. These shipments are all
financed by local banks.




The grain business in the proposed Denver district
aggregates more than $30,000,000 a year, and the
grain elevators in Colorado, Utah, and Idaho are
owned almost exclusively by Denver men. The grain
from these States is shipped to Denver to be milled,
and the grain of western Nebraska and Kansas is also
sold through Denver.
Denver is preeminently the logical location for a
Federal reserve bank, because a subtreasury of the
United States and the United States mint are located
here. The mint will afford immediate accommodations
of the best and safest kind for such a bank. Under the
Federal reserve act the Federal reserve notes, when
prepared, must be deposited in the Treasury, subtreasury, or mint of the United States nearest the
place of business of each Federal reserve bank, and
under this act these Federal reserve notes are redeemable in gold or lawful money at any Federal
reserve bank. Under the act the reserves and the
note issues and balances with the United States
Treasury and Federal reserve banks are on a gold
basis, and this requires the physical transportation of
gold at various times. This physical transportation
of gold can in many instances be obviated, and many
of the provisions of the Federal reserve act can be
executed with greater ease and success if a Federal
reserve bank is located in Denver in close touch with
the subtreasury and United States mint.
From the foregoing it appears that Denver is nearer
the center of the proposed district than any other
large city; that it has better railroad, telegraph, and
telephone connections with the entire district and
with other sections of the country than any other
city of the district; and that its present business transactions with all parts of the district; as well as with
other sections of the country, are greater than that
of any other city of the district, and Denver should,
therefore, be named as the Federal reserve bank of
the proposed district.
We recognize that a Federal reserve bank of Denver
would commence business with a relatively small
capital, but we believe that its capital will be as large
in proportion to the demands upon it as the capital
of any other Federal reserve bank will be to the demands upon it. The fact that the Federal reserve
bank of Denver will start with about $4,000,000
capital can not be urged against the establishment of
this proposed district, for Congress could and would
have made the minimum capital for a Federal reserve
bank more had it wished to deprive this district of a
bank.
We feel that when Congress rejected the proposed
Aldrich plan for one strong central bank with branch
banks throughout the country, and when it rejected
the Hitchcock plan of four strong banks, it had a
reason for so doing, and we believe that its reason for

133

DENVER, COLORADO.

rejecting these plans and adopting the present plan
of from 8 to 12 Federal reserve banks was that Congress thought that each commercial district of the
country, new as well as old, should have a bank of its
own close at hand in time of need and around which
its financial strength could develop until each district
could be semi-independent of every other district, and
so that the artificial centralization of capital in large
centers would be stopped.
The purposes of the Federal reserve act can not be
accomplished unless all sections of the country are
brought as close to a Federal reserve bank as possible,
for each bank is to pass upon the local commercial
paper offered for rediscount, and to issue Federal reserve notes when local conditions warrant it, and this
requires familiarity with local paper and knowledge of
local conditions and emphasizes the importance of a
reserve bank, not indeed for each particular city, but
for each commercial section of the country. This is
especially true of this sparsely settled section of the
country, relatively isolated from the populous portion
of the country by time and distance, with industries
and needs peculiar to itself, and not generally understood by other sections of the country.
We can not feel that a branch bank in Denver can
serve as a substitute for a Federal reserve bank, because a branch bank can not act without authority
from its home bank, it does not keep any reserves, it
can not give immediate aid in times of need, and Congress itself has rejected the idea that a branch bank
system is desirable.
If any section of the country can be served by branch
banks it should be the sections where there are many
large cities close together and all within a few hundred
miles and a few hours' time from the Federal reserve
bank, as in the cases of St. Paul-Minneapolis, Omaha,
and Kansas City; and if any section of the country
needs a Federal reserve bank rather than branch banks
more than another, it is this Rocky Mountain district,
isolated as it is from the East and from the West, forgotten and left to itself in times of flood, strike, and
money stringency.
It is inevitable that the trend of money, but not
necessarily of business, must be disturbed to some
degree by the establishment of these eight or more districts, and of the Federal reserve cities within them,
but this disturbance will not be any greater than is
necessary nor than Congress intended, in order to
build up a number of financial centers, semi-independent of each other, where reserves are kept and where
the bookkeeping and clearances of the district are
transacted, and from which aid can be given in times of
need.
We should like to see St. Paul-Minneapolis, Omaha,
Kansas City, Fort Worth, and Dallas made Federal reserve cities, if there were enough Federal reserve banks
to supply all; but as there are not enough for all who




desire one, those will suffer least from the deprivation,
those who are closest to aid from other sources in time
of need, those who are rightly by geographical proximity and commercial ties in districts having larger
cities that may be selected as Federal reserve cities,
should be the ones to surrender any fancied prestige
to be gained in order that the Rocky Mountain States,
comprising more than one-fourth of the area of the
United States, remote from all aid in times of need,
may have a Federal reserve bank in its largest and its
most centrally located city of Denver, and in order
that the intention of Congress to financially serve all
sections of this country, new and old alike, may be
effectuated.
Should your committee designate Denver as one of
the cities in which a Federal reserve bank is to be
organized under the Federal reserve act, approved
December 23, 1913, and should the subscriptions by
banks to the stock of said Federal reserve bank of
Denver be, in the judgment of your committee, insufficient to provide the amount of capital required
therefor, and your committee shall offer any amount
of the stock of said Federal reserve bank of Denver to
public subscription, then, and in that event, various
individuals, individually and not for one another, have
subscribed for and agreed to take at par the amount
of stock in said Federal reserve bank of Denver,
aggregating $1,568,700, or so much thereof as your
committee may allot to each of said subscribers
respectively, under such conditions and regulations
as to payment and stock liability, or otherwise, as may
be prescribed by your committee, or fixed by said
Federal reserve act, which original subscriptions are
now in the possession of the Denver clearing-house
banks subject to the direction of your honorable committee, and certified copies of these subscriptions
accompany this brief. These subscriptions were secured within three days, and when the above amount
was reached no further effort to increase the amount
was made. We feel that this voluntary subscription
on the part of the people of this city and district is the
strongest evidence of this district's need of a Federal
reserve bank, and of the belief of the subscribers that
the "Federal reserve bank of Denver" will be a
success.
By the committee.
GORDON JONES,

Chairman.
(Committee: Gordon Jones, A. V. Hunter, George
B. Berger, Joseph A. Thatcher, T. A. Cosgriff, W. T.
Ravenscroft, Frank N. Bancroft, Richard H. Malone,
Fred P. Johnson, Carl A. Johnson, Morrison Shafroth,
Charles S. Haughwout.)
D E N V E R , C O L O . , February 12, 1914.
I, Gordon Jones, chairman of the joint committee of the Denver
Chamber of Commerce and Denver Clearing House Association on

134

L O C A T I O N " OF R E S E R V E

regional reserve bank location, hereby certify the following to be a
true and correct copy of subscription lists now in possession of the
various banks, members of the Denver Clearing House Association,
and a certified copy of each of said lists is now in my possession.
GORDON

JONES,

Chairman Joint Committee Denver Chamber of Commerce
and Denver Clearing House Association on
Regional Reserve Bank Location.

D E N V E R , C O L O . , February 7, 1914.
The Reserve Bank Organization Committee, Washington, D. C.
G E N T L E M E N : Should your committee designate Denver as one of
the cities in which a Federal reserve bank is to be organized, under
the Federal reserve act, approved December 23, 1913, and should
the subscriptions by banks to the stock of said Federal reserve bank
of Denver, be, in the judgment of your committee, insufficient to
provide the amount of capital required therefor, and your committee shall offer any amount of the stock of said Federal reserve
bank of Denver to public subscription, then and in that event we,
the undersigned, individually, and not one for another, hereby
subscribe for and agree to take at par the amount of stock in said
Federal reserve bank of Denver set opposite our respective names,
or so much thereof as your committee may allot to us respectively,
under such conditions and regulations as to payment and stock
liability, or otherwise, as may be prescribed by your committee or
fixed by said Federal reserve act.

Name.

Address.

Gordon Jones
A. C. Foster
Arthur H. Bos worth
James H. Causey
William D. Downs
William E. Sweet
Lawrence R. Miller
Anton Kramer
Fred C. Miller
M. D. Dougherty
DeWitt C.Webber
R. D. Thompson
S . V . Este
.
S. A. Savageau
Jacob Savageau
George W. Gano
EllaM. Patrick (by F. L.Patrick).
T. A. Gilbert
Mrs. H. C. Dickson
Robt. Hamilton
Geo. E. Dudley
Mary E. Dudley
Nathaniel O. Walker
John S. Gibins
J. A. Grout
H. E. Sims
Percy Robinson
Coloman Jones
Mrs. Coloman Jones
G. L. Hames
Mrs. Clementine J. Dunn
Edward Lewin
Wm. L. Weed
Mr. J. H. Gilmore
Wm. E. Hess
Mrs. O. B. Miller
R. H. Williams
Mrs. Mary K. Stiteler
Carle H. Smith
Edward Palmer Callup
Edna D. Kalmus
F. D. Drassek
W. R. Hildebrand
Henry T. Rogers
Grace A. Kuil
Leona O. Scott
Mrs. Carrie L. Adams
F. P. Adams
K. D. Whitley
Mrs. Eugenie B. Whitley
E. H. Pettigrew
L. B. Thomas
H. Leverence
Oscar Wetzler
Allan W. Cook
Jessie E. Taylor
Geo. Reether
R. J. Baker

Care of United States Natl Bank.
Care of United States Natl Bank.
Care of Equitable Building
Care of Causey, Foster & Co
Care of The Gano-Downs Co
Care of William E. Sweet & Co...
32 Grant
734 Gilpin St
25 Downing
1447 Pearl St
1746 Curtis St
719 Svmes B1
17th & Champa
1532 1 6 t h . . . .
1532 16th
Care of Gano-Downs Co
Idaho Springs, Colo
,1475 Humboldt
1656 Franklin
626 Equitable Bldg.
532-33d St., Denver
532-33d St., Denver
3903 Wolff St
345 Ry Exg Bldg
1311 So. University St
2134 W. 29th Ave
624 A. C. Foster Bldg (2 shs)
1023 Broadway
1023 Broadway
623 E. 5th Ave
373 Marion
1717 California St
2128Marion S t . . . .
1009 W. 14th Ave
Care of Mtn. S. T. & T. Co
1430 Logan
2810 Larimer St
1732 Arapahoe St
2366 Ivanhoe St
729 17th St
757 Williams St
1247 Downing
3459 W. 29th Ave
624 Foster Bldg
153216th St
Denver Post
1211 Clayton
1211 Clayton
700 17th St
700 17th St
1862 Welton St
1335 E. 24 th
1463 Galapag
519 16th St
522 E. & C. Bldg
1650 Market
1260 Eloti
744 Lafayette St




Amount.
$25,000.00
25,000.00
25,000.00
25,000.00
25,000.00
25,000.00
2,000.00
1,000.00
1,000.00
2,500.00

20,000.00
10,000.00
1,000.00
5,000.00
5,000.00
25,000.00
1,000.00
1,500.00
200.00
2,000.00
1,000.00

1,000.00
1,000.00
3,000.00
600.00
1,000.00
200.00
1,000.00
500.00
1,000.00
500.00
1,000.00
2,000.00
1,000.00
5,000.00
500.00
500.00
500.00
1,000.00
1,000.00
5,000.00
1,000.00
1,000.00
5,000.00
500.00
500.00
300.00
300.00
200.00
500.00

10,000.00
2,000.00
300.00
1,000.00
200.00
500.00
2,000.00
500.00

DISTRICTS.

Address.

Name.
John Black
Hulda Flynn
Geo. W. Redington
A. L. Trout (by A. C. Foster)....
Geo. D. Kimball
3. F. Allinder
Morton Fleming
Leonard Bernstein
E. Clifton Monahan
Henry W. McElravy
Agnes Lawrence
Pierpont Fuller
John C. Skinner
Frank Lawrence (by W. B. Morrison).
F. W. Middleswarth (by W. B.
Morrison).
R. I. Steele (by John C. Murray)..
John C. Murray
John C. Merrick
Chas. E. Young
W. B. Neighbor
George Griffin
Pearl E. Morgan (per C. G.)
H. B. McCrary (bv Morrison
Shafroth, atty.).
Meyer Friedman
Jessie E. Lewin
Morris Berth
H. G.Koch
C. M. Bauserman
E. M. Leonard
Blanche Steinhauer
Bertha Steinhauer
H. B. Humphries
R. C. McReynolds
W. H. Zook
H. B. Alden
Gilbert W. Smith
Edna R. Kilbourne
Wm. Barth
Fred W. Bailey
Geo. W. Vibert
A. H. Stevens
H. W. Price
J. H. Wickersham
L. B. Dunning
Eugene C. Wilson
Barnabas Gamble
Charles W. Houtz
R. J. Pye (by R. A. Savageau)...
Mrs. Joseph H. Bentley (by R. A.
Savageau).
Andrew J. Clooney (by R. A.
Savageau).
Cora D. Houtz
John Selberg
C. N. Brock
Miss Laura Wallace
R. S. Russell
Frank Hawrin (by A. C. Foster).
Gertrude Gibson
EliC. Koutz
L. S. Cofield
S. E. Bassett
Mrs. Fred C. Miller
B. A. Ruedy
E. C. Bennett
A. A. Cunningham (by A. C. Foster).
W. H. Lane (by A. C. Foster)...
Lucy S. Clark (by A. C. Foster)..
Agnes C. Regan
Margaret F. Garrity
J. C. Stumn (by J. G. Price)
Scott Lord
Charles D. Hoyt
Clyde C. Davrson
John A. Davis
Georgia H. Hoyt
Mary I. Pollok
L. R. Mulford
Wm. G. Plested
Geo. J. Kindel (wire, Feb. 10,1914).
Emma Hanson
George A. H. Fraser
C. W. Erdlen (Feb. '10)
Wm. McMakin
Jennie E. McMakin
Mrs. H. Wiesel
J. M. Wiesel
C. W. Erdlen (w., Feb. 11)
J. H. Crabtree
Geo. P. Davidson
F. M. Carlisle (by A. C. F.)

2239 Glenarm Place..
1255 So. Logan
2301 Lawrence St....
Walsenburg, Colo. .
314 McPhee Bldg....
1038 Emerson
901 Clarkson
1419 E. 16th
3137 Gilpin St
509 Symes Bldg
217 E. Maple A v e . . .
624 Foster Bldg
I l l West 4th A v e . . .
1534 Market St
1534 Market St.
1535 Downing St..
1535 Downing St..
1642 Ogden St
4105 Perry
358 Downing
1017 8th St
1340 California St..
1545 Vine St
1563 Lafayette S t . . . .
1500 N. 7th Ave
1375 High St
Minturn, Colo
1542 Market St
1542 Market St
1065 Clarkson St
1065 Clarkson St
915 Broadway
1641 Cook St
3637 West 23d A v e . .
1904 Logan St
636 17th St
903 North 14th Ave.
Metropole Hotel
604 Continental Bldg..
208 Ideal Bldg
U. S.Natl. Bank:
729 17th St
2931 Humboldt
2829 Vallejo St
3745 Elati St
967 Lafayette St
Leadville
Leadville
Leadville.
967 Lafayette St
1052 Gas & Electric Bldg..
1052 Gas & Electric Bldg..
1009 West 14th Ave
Loveland, Colo
Trinidad, Colo
2515 East 2nd Ave
55 Archer PI
Paonia, Colo
1125 Broadway
25 Downing St
1532 16th
1566 Emerson
450 South Broadway
3051 Curtis St
Canon City, Colo
520 Washington
1863 Vine St
Idaho Springs, Colo
Cheyenne, Wyo. (L., Feb. 9).
717, First National Bank
717, First Nat Bank
338 South Penn
1308 Broadway
110 North 13th Ave
Edgewater, Colo
Trinidad, Colo
1452 Champs St
Alamosa, Col
624 Foster Bldg
Salida, Colo
2760 North 32d Ave
2760 North 32d Ave
955 South Penn
955 South Penn
Salida, Colo
339 Century Bldg
2119 South Ogden St
2713 Lafayette St

I, James Ringold, cashier of the United States National Bank of
Denver (Denver, Colo.), hereby certify that the above is a true and
correct copy of a subscription list on file with said United States
National Bank, the original of which is held subject to the direction
of the Reserve Bank Organization Committee.
J A S . R I N G O L D , Cashier.

135
D E N V E R , C O L O . , February 7, 1914.
The Reserve Bank Organization Committee, Washington, D. C.
G E N T L E M E N : Should your committee designate Denver as one of
the cities in which a Federal reserve bank is to be organized under
the Federal reserve act, approved December 23, 1913, and should
the subscriptions b y banks to the stock of said Federal reserve
bank of Denver be, in the judgment of your committee, insufficient to provide the amount of capital required therefor, and your
committee shall offer any amount of the stock of said Federal reserve bank of Denver to public subscription, then and in that
event we, the undersigned, individually and not one for another,
hereby subscribe for and agree to take at par the amount of stock
in said Federal reserve bank of Denver set opposite our respective
names, or so much thereof as your committee may allot to us,
respectively, under such conditions and regulations as to payment
and stock liability, or otherwise, as may,be prescribed b y your committee or fixed b y said Federal reserve act.

Name.

Address.

Homer C. Cones
2025 Larimer St
E. A. Peters
1625 Wazee St
Robert W. Speer
300 Humboldt St
J. A. Thatcher
1560 Sherman St
Geo. B. Lott
1617 Steele St
J. D. Gilchrist
1405 Downing St
Mrs. J. N. Osborne
1769 Logan St
Win. Sullivan
601 East 16th Ave
Dr. J. C.Hamline
411 Jacobson Block
Nathan Gregg
509 First Natl. Bank Bldg.
Chas. B. Whitehead
509 First Natl. Bank Bldg.
Harriett C. Whitehead
1373 Franklin St
Wolhurst, Colo
Horace W. Bennett
Frank M. Downer
1325 Humboldt
Geo. O. Wolf
509 First Natl. Bank Bldg.
Joseph W. Phillips
2255 Fairfax St
Sigmund Strauss
929 17th St
Gillman M. Buck
1211 Lincoln St
Chester S. Morey
Sugar Building
James A. Conkle
1746 Franklin St
Celyce B. Conkle
1746 Franklin St
F . H . Reinhold
Montrose, Colo
M. G. Swart
1216 Foster Bldg
Dennis Sullivan
204 West Colfax Ave
John W. Hudston (guardian)
1614 Steele St
Henry L. Doherty
Gas & Electric Bldg
Frank W. Frueauff
Gas & Electric Bldg
Wm. T. Parks
1255 Steele St
Minnie M. Parks
1255 Steele St
W. H. Murphy
2112 E. 17th Ave
W. S.Iliff
925 Foster Bldg
John McGrath
1650 Market St
Elsa S. Tinthoff
966 Washington St
Clara C. Kuhn
966 Washington St
L.J. Weldon
509 California Bldg
Harry C. James
685 Emerson St
William B. Lloyd
2207 So. Cherokee St
Herbert Addison
925 Foster Bldg
M.C. Moyers
925 Foster Bldg
American Live Stock & Loan Co.. Stock Yards
Dolce Cressmayer
628 Sherman St
Geo. M. King
1941 S. 23d Ave
W. W. Stewart
Interstate Trust Co
C. K. Boettcher
Gas & Electric Bldg
Charles Boettcher
508 Ideal Building
Otto Sauer
906 Grant St
Annie E. Jones
49 South Lincoln St
Gaston O'Donnell
1527 Race St
George Tritch
975 Pearl St
Grace A. Ladd
2734 Curtis St
Isabel N. Evans
1427 Franklin St
Godfrey Schirmer
1350 Franklin St

Amount.
$25, 000.00
10, 000.00
25, 000.00
25, 000.00
10, 000.00
1, 000.00
10, 000. 00
000. 00
10, 000. 00

00
500. 00
5, 000. 00

12. 500.

12,

25, 000. 00
25, 000. 00
10, 000. 00
5, 000. 00
1, 000. 00

300. 00'

25, 000. 00
2, 000. 00

500.00
1, 000.00
000.00
25;000.00
25, 000.00
25, 000.00
25, 000.00
1, 000. 00
800.00
4, 000. 00
25, 000.00
1, 200.00
4, 000.00
1, 000.00
1, 000.00
10, 000.00
2, 000.00
1, 000.00
1, 000.00
10, 000.00
500.00
500.00
1, 000.00
25, 000.00
25, 000.00
000.00
200.00
1, 000. 00
10, 000.00
2, 500.00
6, 000.00
20,000.00

I hereby certify that the above is a true and correct copy of the
subscription list in possession of the Denver National Bank.
J. C . M I T C H E L L , President.

February 7, 1914.
The Reserve Bank Organization Committee, Washington, D. C.
G E N T L E M E N : Should your committee designate Denver as one
of the cities in which a Federal reserve bank is to be organized
under the Federal reserve act, approved December 23, 1913, and
should the subscriptions by banks to the stock of said Federal
reserve bank of Denver be, in the judgment of your committee,
insufficient to provide the amount of capital required therefor, and
your committee shall offer any amount of the stock of said Federal
reserve bank of Denver to public subscription, then, and in that




D E N V E R , COLO.,

event, we, the undersigned, individually and not one for another,
hereby subscribe for and agree to take at par the amount of stock
in said Federal reserve bank of Denver set opposite our respective
names, or so much thereof as your committee may allot to us
respectively, under such conditions and regulations as to payment
and stock liability, or otherwise, as may be prescribed by your committee or fixed by said Federal reserve act.
Name.
T. A. Cosgriff
J. C. Burger
W. H. Kistler
Patrick A. Coyle
J. B. Cosgriff
W. W. Hill
C. B. Lyman

Amount.
$25,000.00
25,000.00
10,000. 00
600. 00
10,000. 00
1,000. 00
1,000.00

Name.
Minnie K. Gladwin
Rodnev J. Bardwell
L. F. Spratlen
R. C. Parvin
A. T. Young
S. D. Nicholson

Amount.
$1,000.00
5,000.00
5,000.00
5,000.00
1,000.00
15,000.00

I hereby certify that the above is a correct copy of original list
of subscribers now in my hands to regional bank stock made at
The Hamilton National Bank, and that the subscribers thereto are
personally known to me and are responsible and financially able
to carry out the provisions of said subscription.
T H E HAMILTON NATIONAL

By

J . C. BURGER,

BANK,

Cashier.

D E N V E R , C O L O . , February 7, 1914.
The Reserve Bank Organization Committee, Washington, D. C.
G E N T L E M E N : Should your committee designate Denver as one of
the cities in which a Federal reserve bank is to be organized under
the Federal reserve act, approved December 23, 1913, and should
the subscriptions by banks to the stock of said Federal reserve bank
of Denver be, in the judgment of your committee, insufficient to
provide the amount of capital required therefor, and your committee
shall offer any amount of the stock of said Federal reserve bank of
Denver to public subscription, then and in that event we, the undersigned, individually, and not one for another, hereby subscribe for
and agree to take at par the amount of stock in said Federal reserve
bank of Denver set opposite our respective names, or so much
thereof as your committee may allot to us respectively under such
conditions and regulations as to payment and stock liability, or
otherwise, as may be prescribed by your committee or fixed by said
Federal reserve act.

Name.
H. F. Higgen
John O'Brien
William H. Hessey
Vass L. Chucovich
Thomas B. Patterson..
R. C. Campbell
I. Berlin
Mrs. N. M. Bostwick..
Amelia A. Mclntyre...
Mrs. Naomi F. Heath.
Charles F. Morrisey...
W. N. Goetzman
Mrs. Alice Vaughn
Carl Tiedeman
Clara L. Hunter
A. S. Livingston
George C. Gilchrist
Carl W. Nordquist
Millie Mitchell
Eva Nicholls
Clarence F. Cramer
Mac V. Cox
Franklin A. Bell
Roy E. Zann
David Flessner
Mrs. Annie Jackson...
Wm. A. Woodworth..
May
Richard F. Ryan
C. L. Antrim
R. N. Richards
Meyer Harrison
Chas. Hatheld
N. C. Abernethy...
Charles J. Johnson.
John A. Marron

Address.
1612 Wynkoop St
3509 Alcott St
District Court
1234 Grant St
415 17th St
do
1301 High St
361 Marion St
523 N. Mexico
432 Pearl St
802 Boston Bldg
1733 Lincoln St
2828 Race St
Brighton, Colo
351 Braadway
do
743 C. & E. Bldg
803 Boston Bldg
1115 E. 13th Ave
1620 Washington
2345 Grove St
2828 Race St
1839 York (c/o F. J. Alexander)...
1646 Franklin
1723 Ogden St
2829 Vine St
1710 Colo. Blvd
818 N. & C
106 W. Ellsworth
4523 E. 18th Ave
135 N. 11th St., Salina, Kans. (sales
agent, C. F. & I., Denver).
1457 Vine
1300 Madison
1821 Lafayette
2525 Race St
4952 Raleigh

Amount.
$500.00
1,000.00

2,000.00

25,000.00
25,000.00
25,000.00
5,000.00
1,500.00
500.00
500.00
1,000.00

2,000.00
3,000.00
200.00

10,000.00
500.00
1,000.00

100.00
600.00
1,000.00
200.00

1,000.00
500.00
200.00
5,000.00
3,000.00
1,000.00
5,000.00
1,000.00
1,000.00
200.00

2,000.00
1,000.00
1,000.00
100.00

200.00

136

L O C A T I O N " OF R E S E R V E

Name.
Richard H. Waite
Mary Hunter Newlove, M. D
William F. Harrington
R. E.Abbott
Wm. A. Schrammer
C. W. Beil
D. N. Waldman
The German American Trust Co.
Miss Etta B. Malone
Mrs. May C. Malone
R. H. Malone
T. N. Callahan
H. J. Van Wetering..
H. Butler
J. N. Boyd
Richard Lobert
E. C. Pyle
Miss Clarisse Laurent
Miss La Trille Ross
E. W. Johnson
L. D. Sweet
Ben E. Woodward

Address.
1555 Franklin
2835 High St
Midland office, Leadville, Colo.
1708 Gaylord St
Y. M. C. A
401 Barclay Block
1510 Broadway
301 Marion St
do
do
Longmont, Colo
Buena Vista, Colo...
.....do
Guardian Trust Co..
Denver, Colo
Opal, Wyo
69 Grant St
Cripple Creek, Colo.,
Sunshine, Colo
Equitable Building.
E. &C

Amount.
$300.00

1,000.00

4,000.00
200.00
100.00

10,000.00
1,000.00

40,000.00
5,000.00
15.000.00

10,000.00
5.000.00
1,000.00

500.00
15,000.00
1,000.00
4,500.00
500.00
100.00
4,000.00
2,500.00
3,000.00

I hereby certify that the above is a true and correct copy of the
subscription list in possession of Richard H. Malone.
RICHARD H . MALONE.

I, James Ringold, cashier of the United States National Bank of
Denver (Denver, Colo.). hereby certify that the original of the above
list has been deposited in the United States National Bank by
Richard H. Malone, and is now in possession of said bank.
T H E UNITED STATES NATIONAL BANK OF DENVER,
B Y J A S . RINGOLD, Cashier.

DENVER, COLO., February 7, 1914.
The Reserve Bank Organization Committee,
Washington, D. C.
GENTLEMEN: Should your committee designate Denver as one
of the cities in which a Federal reserve bank is to be organized,
under the Federal reserve act approved December 23, 1913, and
should the subscriptions by banks to the stock of said Federal
reserve bank of Denver be, in the judgment of your committee,
insufficient to provide the amount of capital required therefor, and
your committee shall offer any amount of the stock of said Federal
reserve bank of Denver to public subscription, then and in that
event we, the undersigned, individually and not one for another,
hereby subscribe for and agree to take at par the amount of stock
in said Federal reserve bank of Denver set opposite our respective
names, or so much thereof as your committee may allot to us respectively under such conditions and regulations as to payment and
stock liability, or otherwise, as may be prescribed by your committee or fixed by said Federal reserve act.
Name.
Moses T. Boggs
John N. Shafer
W. T. Ravenscroft
C. A. Burkhardt
Jessie T. Moss
William McHenry
Cornelius C. Worrall...
J. H. Salzer
A. J. Bromfield
Lawrence B. Bromfield.
Edwin M. Bosworth...
Thomas F. Fitch
Austin H. Wilber
W. B. Lowry
Chas. R. Borst
Lucy H. Ayers
H. W. Graham
R. A. Parsons, C. R. B.

Address.
300 15th St
2008 Humboldt
640 17th St
640 17th St
1343 So. University
P. O. inspector in charge
1756 Grant
2347 Champa St
Jacobson Bldg
Jacobson Bldg
California Bldg
26 P. O. Bldg., Denver..
423 E. 1st Ave
946 Corona St
1900 Emerson
654 Race
2651 W. 34th Ave
2643 Lafayette

Amount.

$1,000.00
1,500.00
5,000.00
5,000.00
200.00
2,000.00
5,000.00

600.00

5,000.00
2,500.00
5,000.00

600.00
500.00
6,000.00
1,000.00
100.00
500.00

1,000.00

I, John Mignolet, cashier of the Federal National Bank of Denver, Colo., hereby certify that the above is a true and correct copy
of an original subscription list on file in this bank subject to the
order of the Reserve Bank Organization Committee, Washington,
D. C.
[SEAL.]
J. MIGNOLET, Cashier.




DISTRICTS.

DENVER, COLO., February 7, 1914.
The Reserve Bank Organization Committee,
Washington, D. C.
GENTLEMEN: Should your committee designate Denver as one of
the cities in which a Federal reserve bank is to be organized, under
the Federal reserve act approved December 23, 1913, and should
the subscriptions by banks to the stock of said Federal reserve bank
of Denver be, in the judgment of your committee, insufficient to
provide the amount of capital required therefor, and your committee shall offer any amount of the stock of the said Federal reserve
bank of Denver to public subscription, then and in that event we,
the undersigned, individually, and not one for another, hereby
subscribe for and agree to take at par the amount of stock in said
Federal reserve bank of Denver set opposite our respective names,
or so much thereof as your committee may allot to us respectively,
under such conditions and regulations as to payment and stock
liability, or otherwise, as may be prescribed b y your committee or
fixed b y said Federal reserve act.

Name.
Samuel Isaacson
I. W. Wickler
Samuel Amter
Abraham Smidt
Alvin Buerger
Eliza L. Sprague
George Charming
W. H. Freese
N. E. Boggs
A. B.Rich
Andrew Soderstrom..
L. L. Moe
R. H. Maxwell
S. B. Turner
Edw. P. Saunders....
S. A. Snyder
Elmer F. Schlueter...
Albion D. White
Gwendolen G. Macey
Nathan W. Shapiro..
Joseph Stetwell
Mary Ada Ryan
W. H. Mitchell
W. H. Wolfersberger.
Maria R. Rundle
Mary Mee
H. H. Young
Emma Hottel
Maiy E. Bean
B. F. Hottel

Address.
1229 St. Paul Street
1656 Lawrence Street
1608 Steel Street
2504 Williams Street
3456 Decatur Street
2807 East Colfax Ave
3339 Franklin Street
Edgewater, Colorado
4329 Tennyson Street
806 Railroad Bldg
4474 Cherokee Street
Morrison, Colo
210 Mint Block
'.
1535 19th Street
2329 Franklin Street
Room No. 1. 415 17th Street
3826 Umatilla Street
1133 Corona Street
620 Ogden Street
1555 Larimer Street
1228 15th Street
2324 Ogderi Street
730 West Mississippi Street
2316 Gilpin Street
10599th Street
R. F. D. No. 3, Stock Yards Station.
2241 Ash Street
Ft. Collins, Colo
Ft. Collins, Colo
Ft. Collins, Colo

Amount.
$2,500.00

' 100.00
2,500.00
3,000.00
400.00
500.00
500.00
2,000.00
1,000.00
1,000.00
2,000.00
1,000.00
2,500.00
2,500.00
1,500.00
1,500.00
1,000.00
1,000.00
5,000.00
1,000.00
1,000.00
200.00
200.00
200.00
200.00
2,000.00

500.00
2,500.00

10,000.00

25,000.00

74,300.00

STATE OF COLORADO,

City and county of Denver, ss:
I, K. EC. Woodward, assistant cashier of the Colorado National
Bank, of Denver, Colo., do hereby state that the above and foregoing subscription list is a true and correct copy of an original
subscription list, now in the possession of the Colorado National
Bank, to be held subject to the direction of the Federal Reserve
Bank Organization Committee.
K . H . WOODWARD, Assistant Cashier.
Subscribed and sworn to before me this 11th day of February,
1914.
[SEAL.]
JULIUS H . KOLB, Notary Public.
My commission expires December 5, 1914.

D E N V E R , COLO., February 7, 1914.
The Reserve Bank Organization Committee, Washington, D. C.
GENTLEMEN: Should your committee designate Denver as one of
the cities in which a Federal reserve bank is to be organized, under
the Federal reserve act, approved December 23, 1913, and should
the subscriptions by banks to the stock of said Federal reserve bank
of Denver be, in the judgment of your committee, insufficient t&
provide the amount of capital required therefor, and your committee shall offer any amount of the stock of said Federal reserve bank
of Denver to public subscription, then and in that event we, the

DENVER,

undersigned, individually, and not one for another, hereby subscribe for and agree to take at par the amount of stock in said Federal reserve bank of Denver set opposite our respective names, or so
much thereof as your committee may allot to us respectively, under
such conditions and regulations as to payment and stock liability
or otherwise as may be prescribed by your committee or fixed by
said Federal reserve act.
Name.

Address.

E. L. Shoffer
T. J. Radcliff
T. A. Smith
Thomas F. Eagan.
G. G. Gilchrist....
Wm. G. Maitland.
David Rubenstorn
JamesT. Smith...
Jennie E. Land
S. J. Thomas
J. S. Phillips
C. P. Truber
W. I. Leary
F. H. Bostwick....
J. H. Jones
Geo. E. Hannan....
Wm. R. Leonard...
Wm. J. McDowell.
W. P. Peabody....
F. R. Lindsley
R. F. Munger
C. D. Webb
Frank Eastman
L. J. Moulton
Ralph L. Taylor...
O. C. Watson
H. O. Snyder
Harvey A. Pierce..,

535 So. Wash
1010 E. 13th Ave
1460 S. Lincoln S t . . . .
315 Quincy Building.
748 Gas & Elec. Bldg.
874 Clarkson St
1200 Larimer St
1720 Welton St
1732 Pearl St
1636 Champa St
1039 29th St
Golden
Creede
611 Ideal Bldg
Longmont
1210 Broadway
Hibernia Bank
Joslin D. G. Co
451 Acoma Street
602 Boston Bldg
620 Boston Bldg
Boulder, Colo
Boulder, Colo
Boulder, Colo
546 Gas & Elec. Bldg.
546 Gas & Elec. Bldg.
546 Gas & Elec. Bldg.
546 Gas & Elec. Bldg.

Amount.
$100.00
1,000.00
500.00
1,000.00
1,000.00
500.00
1,000.00
1,000.00
500.00
5,000.00
1,000.00
1,000.00
1,000.00
5,000.00
25,000.00
1,000.00
10,000.00
200.00
300.00
200.00
300.00
4,000.00
2,500.00
2,500.00
500.00
500.00
1,000.00
500.00

137

COLORADO.

Name.
William W. Cafky
John R. Hargreaves
James O. Beasley
Mrs. Mary A. Lendholm
Miss Julia A. Loftus
William G. Haldane
Paul E. Darrow
Calvin Fleming
Chas. J. Sisk
J. K. Kincaid
J. K. Mullen
Geo. F. Gish
Wm. R. Rathvon
V. S. Nelsop.
D. H. McCulloch
Dr. W. C. Birkenmayer.
C. S. Sperry
Victor Christensen
Mrs. Laura Kennedy
Lucy A. Kennedy
Rose M. Kennedy
G. B. Fishel
Mary Dullmain
G. H. Mollen
S. B. Wilcox
W. E. Damon
Jno. W. Hartman
C. T. Catchpole
W. Haywood Mitchell...
J. F. Vonderembre

Amount.

Address.
546 Gas & Elec. Bldg....
1301 West Alameda
1066 Navajo St
1647 Emerson St
1647 Emerson St
School of Mines, Golden,
Greeley
101 Broadway
La Junta
La Veta
896 PennaSt
2080 Dexter St
1756 Grant St
2043 Champa St
Creede
1434 Glenarm
Boulder
Littleton
Rifle, Colo
1642 Pearl St
1642 Pearl St
1530 Lawrence St
Fort Logan
Mack Block
U. S. Mint
3416 Colfax B
2841 California
1654 Broadway
1631 Champa St
368 So. Grant St

$300.00
2,000.00
100.00
3,000.00
200.00

1,000.00
5,000.00
10,000.00
500.00
2,000.00
10,000.00
500.00
1,000.00
200.00
1,000.00
2,000.00
500.00
5,000.00
1,000.00
100.00
100.00
2,000.00
500.00
1,000.00
700.00
3,000.00
500.00
1,500.00
1,000.00
5,000.00

I, C. S. Haughwout, cashier of the First National Bank of Denver,
do hereby certify that the above is a true and correct copy of a subscription list on file with the said bank, the original of which is held
subject to the direction of the Reserve Bank Organization Committee.
[SEAL.]

C. S . HAUGHWOUT.

THE GEOGRAPHICAL CONVENIENCE, WHICH INVOLVES TRANSPORTATION FACILITIES AND RAPID
AND EASY COMMUNICATION WITH ALL PARTS OP THE DISTRICT,
[ B y RICHARD H . MALONE.]

No more favorable nor more accessible location for
a regional bank in the Rocky Mountain country can
be presented than that of the city of Denver, for the
following reasons:
DENVER

A GEOGRAPHICAL

Distances (in air lines) between Denver and other cities showing Denver
to be the geographical center of such area of 804,360 square miles.
to Cheyenne, Wyo
to Deadwood, S. Dak
to Pierre, S. Dak
to Aberdeen, S. Dak
to Sioux City, Iowa
to Omaha, Nebr
to Lincoln, Nebr
to Leavenworth, Kans
to Topeka, Kans
to Wichita, Kans
to Guthrie, Okla
to Oklahoma City, Okla
to Wichita Falls, Tex
to Amarillo, N. Mex
to El Paso, Tex




Miles.
100
324
598
506
465
460
415
506
465
402
448
465
498
324
506

Denver
Denver
Denver
Denver
Denver
Denver
Denver
Denver
Denver
Denver
Denver
Denver
Denver
Denver

San Francisco.
BetweenTime.

Denver.

Nearer
by-

Time.

Nearer
by-

CENTER.

Within a radius of approximately 500 miles of Denver,
embracing an area of 804,360 square miles, are included
the intermountain States of • Colorado, Utah, New
Mexico, Wyoming, and portions of Arizona, Montana,
South Dakota, Nebraska, Kansas, Oklahoma, and the
Panhandle of Texas and part of Idaho.

Denver
Denver
Denver
Denver
Denver
Denver
Denver
Denver
Denver
Denver
Denver
Denver
Denver
Denver
Denver

Railroad running time.

Miles.
to Santa Fe, N. Mex
265
to Albuquerque, N. Mex... 307
to Silver City, N. Mex
468
to Gallup, N. Mex
332
to Holbrook, Ariz
406
to Caliente, Nev
490
to Ely, Nev
498
to Cobre, Nev
481
to Salt Lake City, Utah
357
to Ogden, Utah
365
to Pocatello, Idaho
631
to Idaho Falls, Idaho
440
to Billings, Mont
460
to Laramie, Wyo
112

Ogden, Utah
Salt Lake City, Utah.
El Paso, Tex
Boise, Idaho
Helena, Mont

H.
23
24
39
40
47

m.
50
45
30
35
30

Salt Lake City, Utah.
Ogden, Utah
El Paso, Tex

24 0
24 55
23 2

Omaha, Nebr
Deadwood, S. D a k . . .
Salt Lake City, Utah.
Billings, Mont
El Paso, Tex
Oklahoma City, Okla
Lincoln, Nebr
Leavenworth, Kans..
Kansas City, Mo
Topeka, Kans
Wichita, Kans

13
37
39
43
45
23
15
15
13
14
19

fiT.

m.

H. m.

8

19 5
18 0
30 10

18 0
19 5
30 10
27 35
37 25

Los

7

5 5
6 25
1 56

7 15
14 14
16
10
16

19
45 53
35 0
30 45
47 14

12 20
6 25
39
3 5

4 55
6 55

Denver.
13
17
19
24
30
22
12
20
19
16
16

St. Louis.
Kansas City, Mo
Omaha, Nebr
Lincoln, Nebr
Topeka, Kans
Wichita, Kans
Oklahoma City, Okla
El Paso, Tex
Amarillo, Tex
DeadwocxI, S. D a k . . .
Salt Lake City, Utah.

m.

Denver.

Chicago.
30
0
25
45
3
47
15
15
10
29
55

H.

29
40
5
25
10
5
0
20
35
25
39

19
20
19
14
1
3

1
20
20
20
53
42
15

3 16

Denver.
19
13
12
16
16
22
30
17
17
19

35
29
0
25
39
5
10
0
40
5

4

45
4

15 43
18 0
13 5
28 9

138

LOCATION" OF RESERVE DISTRICTS.

Railroad running time—Continued.
Denver.

San Francisco.
Between—
Time.

i\ earer
by-

Time.

H.

6
26
33
53
36
37
53
23
30
32
27
15

35
40
15
40
45
40
20
50
25
30
5
24

6 54

3 5
6 41

13
17
24
26
18
19
27
17
18
19
30
22

St. Paul-Minneapolis.
Billings, Mont
Idaho Falls, Idaho...
Salt Lake City, Utah.
Ely, Nev
El Paso, Tex
Oklahoma City, Okla.
Kansas City, Mo
Omaha, Nebr
Deadwood, S. Dak...

23
44
45
54
52
35
20
13
30

45
5
45
20
20
35
35
0
5

DENVER A RAILROAD, ETC.,

40

m.

H.

771.

Denver.

Kansas City.
Omaha, Nebr
Deadwood, S. Dak
Billings, Mont
Idaho Falls, Idaho
Ogden, Utah
Salt Lake Citv, Utah.
Ely, Nev
Amarillo, Tex
Santa Fe, N. Mex
Albuquerque, N. Mex
El Paso, Tex
Oklahoma City, Okla.

I earer
N
by-

29
40
25
15
0
5
25
0
40
5
10
5

9
8
27
18
18
25
6
11
13

0
50
25
45
35
55
50
44
25

Denver.
24
26
19
27
30
22
19
13
17

25
15
17 50
26 40
5
26 55
25
22 10
10
13 30
5
50
35
29
40 "*"i2* *25

CENTER.

No other city in the intermountain country has
railroad facilities comparable with those of Denver.
The great systems of Atchison, Topeka and Santa Fe;
Chicago, Burlington & Quincy; Chicago, Rock
Island & Pacific; Colorado & Southern; Denver &
Rio Grande; Missouri Pacific; and Union Pacific have
main lines terminating in Denver. The local Colorado
lines, such as Colorado Midland; Denver & Salt Lake;
and Denver, Laramie & Northwestern, also enter the
city and maintain headquarters here.
In other words, Denver has five prairie lines from
the East and three transcontinental lines to the West,
the number of passenger trains in and out of Denver
being 148 per day, including through and locals,
reaching the entire territory of the intermountain
country which a regional bank should cover and serve.
Railroad lines radiate from Denver in every direction to all the principal cities within the territory
described and there is hardly a hamlet from which
Denver can not be reached by person, mail, or express
within 24 hours (the most remote 36 hours) and quite
85 per cent of the total population is within 15 hours.
With the mountain barrier to the west of it, Denver
has become a great interior railroad terminus. Railroads end in Denver just as they do in San Francisco,
New York, and Chicago, and radiate from that point
in practically all directions.
Even the great trunk lines which go to the north
and south of it have been compelled because of the
strategic position to build branches to Denver, which
have themselves developed into trunk lines.
Denver's transportation facilities are, therefore,
quite as good as those of Chicago, St. Louis, and San
Francisco, and because Denver is a terminal point




they are in one respect more important than those of
Omaha, Kansas City, and Salt Lake and other large
competing points.
People do not have to change cars to come to Denver, nor is it necessary to transship freight from one
line to another to reach Denver.
The completion this year of the Burlington Railroad connections in Wyoming, in a through route, via
Denver, from Seattle to Galveston, will increasingly
make Denver the natural center of trade for all Wyoming. Through connections, via Denver, are now
made from Los Angeles to St. Paul and Minneapolis,
from the Pacific coast to the Missouri River, with
through trains already from San Francisco to Kansas
City.
The Mountain States Telephone & Telegraph Co.,
with headquarters in Denver, covers practically the
entire territory within the 500 miles radius and conversation can be carried on with all localities. All
express companies have headquarters in Denver.
Denver is served by 12 railroads, is the best served
city in this respect between the Pacific coast and the
Missouri River, and the telegraph and telephone
service is equal to that of any city in the United
States, reaching throughout the entire western
territory.
*
The Pullman Co. also have headquarters in Denver.
DENVER

GEOGRAPHICALLY

A

NATURAL

FINANCIAL

CENTER.

Denver geographically is the natural financial center
of its tributary country, as the following shows:
City.

Denver
Minneapolis
Chicago
Omaha
St. Louis
Kansas City...
New Orleans...
Galveston
Houston
Dallas
Fort Worth....
Los Angeles
Salt Lake City.
San Francisco..
Portland
Seattle

Miles
from Population.
Denver.

904
1,034
523
1,013
667
1,342
1,160
1,107
835
801
1,121
742
1,377
1,390
1,570

213,000
301,000
!, 165,000
124,000
687,000
248,000
239,000
36,000
78,000
92,000
73,000
319,000
92,000
416,000
207,000
237,000

Bank
clearings.
$481,000,000
1,300,000,000
16,000,000,000
4,000,000,000
2,800,000,000
978,000,000

1,200,000,000
"2,"500,'666,*66o

'658*666*666

In the area lying between the Missouri River and
the Pacific coast, and between the Canadian line and
the Gulf, Denver and Salt Lake City are the largest
and most prominent centrally located cities, and as
between these two, Denver has the advantage in population and in volume of business and bank clearings,
as well as being favorably located on north and south
and east and west trunk-line railroads.
From Seattle to New Orleans, from San Francisco
to Kansas City, from Los Angeles to Minneapolis,
from the Canadian line to the Mexican border Denver
has the central location and is the city most prominent

139

DENVER, COLORADO.

in commerce and finance and with the largest population, and is surrounded on all sides by a partially
developed country of most wonderful resources,
which are being rapidly developed.
From a geographical standpoint and in conjunction
with transportation facilities Denver is more advantageously situated and able to furnish immediate and
rapid service for the transportation of currency and
securities through the vast territory before mentioned than would be any other city in the same section for the reason that practically every express and
mail train leaving the city of Denver leaves this
point as its terminal. In other words, trains leaving
Denver are not delayed by being on trunk lines, and
starting from the western coast or the Central States,
which fact insures that all express and mail (carrying
money) could with reasonable assurance at all times
be expected to leave at the hour set for trains to move.
The location of one of the regional banks in the city
of Denver will be of especial transportation economy
to such regional bank owing to the fact that the United
States mint is located in Denver and would be available, under proper working arrangements for the Government, and avoid the expense occasioned by the
shipping of gold and currency from other mints or
subtreasuries.
Again, the cost for the express or mailing of currency and securities in either direction to the banks of
this intermountain territory would be considerably
less and result in an actual economy or saving of transportation, time, and expense to the member banks, if
their reserve bank was located at a central point like
Denver, and of greatest benefit to the largest number.
If a regional bank were located in Kansas City, the
express rate per $1,000 in gold to Salt Lake City would
be $—, while from Denver it would be approximately
one-half that rate. The same difference of expense
would apply, pro rata, according to the rates for currency and securities. The same argument would hold
good as against Omaha or Dallas, Tex.
The Denver Mint can ship money in less time to the
Pacific coast than it can be shipped from any point
farther west. If money was wanted in Omaha at the
hour of bank closing, a wire to Denver would get the
money to Omaha as soon as it could be got if they
wired to Chicago.
DENVER A MINING AND SMELTING

CENTER.

Outside of Kansas, Nebraska, Oklahoma, and the
Panhandle of Texas, the 804,360 square miles of which
Denver is the geographical railroad and financial center is a large mineral producer, and Colorado smelters
treat a considerable portion of the ore originating
therein.
Denver is already the headquarters for mining,
smelting oil, and mining machinery companies oper-




ating throughout such territory, also alfalfa and milling
products.
A regional bank in Denver could better serve these
large interests than if located at any other point.
D E N V E R A LIVE-STOCK

CENTER.

The live-stock interests in the vast area before mentioned are very extensive, representing one of the
largest industries west of the Missouri River.
Denver is practically the only marketing point between the Pacific coast and the Missouri River and
centrally located to best serve this great industry.
Government statistics show an alarming decrease in
the supply of beef cattle since 1907. No one condition
will have a greater tendency to stimulate the cattleraising industry in the country tributary to Denver,
the principal cattle-growing territory in the West, than
the establishment of a regional bank in Denver, lowering the interest rates. From 8 to 12 per cent interest
on live-stock loans is not unusual in some parts of this
district, and even at these rates loans are usually made
only for a period of six months and may or may not be
renewed. The general policy of the live-stock commission houses, through whom the loans are largely made,
is to call the loans on their maturity, thereby practically forcing the cattle market and securing additional
commissions.
D E N V E R AN AGRICULTURAL

CENTER.

The agricultural interests of the 804,360 square
miles of which Denver is the geographical center are
already enormous but capable of great extension with
improved financial accommodation through the location of a regional bank in Denver.
A few instances may be mentioned as follows:
The Colorado potato crop, under normal conditions,
is about 6,000 cars; the wool crop from 2,000,000 to
3,000,000 pounds; the fruit crop of western Colorado
alone reaches thousands of cars annually.
The full benefit of this fruit crop is not realized by
the growers by reason of lack of local proper facilities
for storing same and for lack of local factories for
utilizing the fallen and undersized fruit, with reasonable financial assistance these defects could be
remedied and the industry greatly stimulated.
New Mexico has large wool crop and live-stock
interests and produces some fruit.
Arizona is developing the fruit industry, including
such tropical fruit as dates.
Idaho is increasing her agricultural production.
Utah with her wool, fruit, and farming interests
needs financial accommodation and could get it.readily
from a regional bank in Denver.
Montana produces large grain crops, also wool, and
already has close banking connections with Denver.

140

LOCATION" OF R E S E R V E

Wyoming has live stock and wool interests and some
agriculture.
There is more undeveloped territory in the seven
States of Arizona, Colorado, Idaho, Montana, New
Mexico, Utah, and Wyoming than anywhere else
susceptible to development by being financed on sane
and safe lines.
Financial assistance is practically necessary in the
fall in moving the crops, and the $1,000,000 furnished
by the United States Treasury to national banks in
Denver and tributary country in October, 1913, was
very timely and very helpful.
A regional bank in Denver would render it unnecessary for member banks to carry 45 per cent or over of
reserves, which would enable them to better assist
the agricultural, etc., interests.
DENVER A COLLECTING

AND DISTRIBUTING

POINT.

Denver as a geographical and railroad center as
aforesaid is the gateway through which there passes
annually an enormous tonnage of agricultural and
horticultural products, coal, coke, live stock, lumber,
manufactured goods, etc., the movement of crops in
the fall being already enormous and needing help
financially.
Denver is the best location for a regional bank to
develop these varied interests.
A few instances of shipments through Denver are as
follows:
Denver is a very important city in the movement
of stock cattle for feeding purposes from Texas to
Colorado and points north and west, and necessarily
requires a large amount of money for handling same.
The movement of grain and vegetables from Utah
and Idaho into Texas, Oklahoma, and Kansas is very
heavy. One Denver concern shipped five straight
trainloads of potatoes from Idaho and Utah through
Denver into Texas and the south in the month of January, 1913, and about the same in February, and there
is a continual movement of potatoes through Denver.
Almost every bank in Utah and Idaho has connections with the Denver banks.
All the big flour mills in Colorado are continually
moving wheat from Utah and Idaho, milling it in
transit, mostly in Denver, and forwarding the product
into the southeastern States clear down to the Atlantic Ocean.
The books of one group of companies so shipping
agricultural products through Denver show an aggre-

DISTRICTS.

gate business for 1913 of about $22,000,000, the funds
required to properly handle such business being obtained mostly from Denver banks, and Denver firms
financed all these transactions.
One Colorado manufacturing concern (outside Denver), selling goods in 21 States west of the Mississippi
River, says that Denver would be the best and the
most convenient geographically for a regional bank
for the territory they supply with their goods.
They further say that with the volume of business
they are now doing the banking facilities in Denver
are not sufficient for them, as they can not secure
enough money for their needs from any one bank,
and they are forced to go east to make a part, at least,
of their financial arrangements.
I t is usual for men who grow rich in agricultural,
live stock, mining, manufacturing, etc., industries in
the country tributary to Denver to move to and become permanent residents of Denver.
I n summing up, Denver has the geographical position; Denver has the railroad facilities; Colorado has
the largest volume of banking capital. Our State
laws will be changed so that the State banks can come
in. Our widows, orphans, retired business men, and
the public generally will subscribe for all the stock you
will let them take. A number of my friends have
asked me to ask for the privilege of subscribing. I
hope you will give the poor people a chance to subscribe.
I t is to the interest of this whole United States that
this undeveloped country should be helped and assisted.
The banks of this district understand the local needs
and the value of the local securities better than any
one east or west of us would understand the securities
of this district.
The people of the entire United States need the
development of this western agricultural and livestock country so as to help reduce the cost of living
throughout the United States, and this regional bank
would be a great benefit in reducing the interest rates
and giving a larger line of credit to settlers, farmers,
stockmen, and manufacturers.
I firmly believe it is the desire and intention of you
gentlemen and the administration to help develop and
expand our undeveloped interests, thereby reducing
the cost of living to the entire population of the United
States.
Respectfully submitted.
R. H.

MALONE.

MISCELLANEOUS LETTERS AND STATISTICS.
BEATRICE CREAMERY CO.,

Denver, January 24, 1914.
H o n . WM. G . MCADOO,
H o n . DAVID F . HOUSTON,

Organization Committee of Federal Reserve Bank, Denver, Colo.
It is my desire to call to your attention the
fact that the Beatrice Creamery Co. of Denver do an annual busiHONORABLE SIRS:




ness of a little over $2,000,000 on butter and eggs. At least 70 per
cent of the cream used for manufacturing our butter, and at least
75 per cent of the eggs we gather for rehandling and sale, are collected and shipped to us from Kansas and Nebraska, as while the
dairy industry in Colorado is showing a wonderful increase and
will continue to do so, we have to draw the majority of our supplie
of raw material from Kansas and Nebraska.

DENVER,

There is at least 7,000,000 pounds of butter manufactured in
Denver annually, at an approximate value of $1,500,000. There
is at least 1,000,000 pounds of butter, at a value of $250,000, brought
into Denver annually from Nebraska and sold here.
There is at least $500,000 worth of business in butter and eggs
stored in transit in Denver with the ultimate destination of San
Francisco and Salt Lake points.
All told there is at least 250,000 cases of eggs handled annually
in Denver, worth at least $1,500,000, of which 80 per cent is brought
in from Kansas and Nebraska. Twenty-five per cent of this product is stored in Denver in transit with ultimate destination of Utah,
Idaho, Montana, and Pacific coast points.
We feel very strongly that for our business, and also for the dairy
industry of the several surrounding States, Denver is undoubtedly
the logical point for the Federal reserve bank.
Respectfully, yours,
BEATRICE CREAMERY CO.,
A . T. MCCLINTOCK, Manager.

DENVER, January 26, 1914.
In order that you may arrive at the importance of
the value of the alfalfa and other hay crops of Colorado, I give
you below a brief history of the production and monetary value
of the alfalfa and other hay produced in this State up to and including the last crop of 1913.
Only 14 years ago the total farm products of all kinds for Colorado amounted to only $16,000,000, of which total sum the income
at that time from alfalfa and other hay did not exceed 500,000 tons
of a money value of approximately $4,800,000; whereas according
to the report of the United States Department of Agriculture the
total farm and dairy products of Colorado for the year 1913 had
reached the sum of $89,933,146. Of this total production from our
Colorado farms during last year the production of alfalfa and other
hay amounted to 1,824,000 tons, having a value to the producers of
$18,240,000. Thus it will be observed the increase in the production of alfalfa and other hay in Colorado in the past 14 years has been
1,324,000 tons, and an increase in a monetary sense of $13,440,000.
By referring to the attached report of the United States Department of Agriculture, it will be noted that the money value of
alfalfa and other kinds of hay harvested in Colorado during the
season of 1913 was $18,240,000, and that the return from the beetsugar crop, the next largest agricultural product in Colorado, for
the same year amounted to only $10,390,000; in other words, the
money value of our hay crop last year exceeded our important
beet industry by the sum of $7,850,000. In fact, the production
of hay in Colorado has for some time, and during the last year in
particular, far exceeded in value the total production of coal in
this State for any year, and also practically equaled this State's
production of gold for 1913, it being well known that the value
of all coal mined in Colorado last year amounted to only $11,016,948,
while the value of the gold produced in Colorado last year amounted
to the sum of $18,394,590.
It is also a fact that the alfalfa harvested last year in Colorado
was raised on an area of land only equal to about three counties
in Iowa; consequently, with the vast area of land susceptible to
the cultivation of alfalfa in Colorado, the alfalfa crop in this State
can be expected to continue to increase in the future at a rate
equal to what it has done in the past few years. This is especially
so now that Colorado alfalfa has been widely advertised and
exploited as the best of all feeds by ourselves and others throughout the South, East, and Middle States, and a heavy demand has
been created for it, and at prices which will always insure the
producer a good return for his labor and investment. Ten years
ago alfalfa hay was comparatively an unknown article of feed
in the South, East, and Middle States, and its sale was at that
time a very difficult problem; whereas to-day the demand for
DEAR SIRS:




141

COLORADO.

alfalfa exceeds the supply, and a like condition will exist for years
to come, because it is a crop which can only be successfully produced in our western irrigated States while the demand for it
exists in every State in the Union.
Denver, on account of its geographical location, its superior
railroad and banking facilities, has for some time been the market
for the alfalfa produced in Colorado, Wyoming, Idaho, Montana,
and a part of Kansas, Nebraska, and New Mexico, and this city
as a central market for this product will continue to expand and
come more into its own within a short while now, for Denver has
been assured a stopping-in-transit arrangement at this point on
hay by the railroad companies, a privilege long required at this
point but never properly agitated with the railroads until recently.
Under this stopping-in-transit arrangement, which will be good
for several months, a farmer located at Greeley, Colo., Cheyenne,
Wyo., Twin Falls, Idaho, or Billings, Mont., will be able to ship
his hay to Denver and hold same here for a period of several months
and later be able to reship it to Texas, Oklahoma, Kansas, and
other States on the through rate from original point of origin to
the final destination, plus a nominal charge for stopping cars here.
This will readily create of Denver a large central hay market, also
a concentration point, and it will ultimately induce many of the
large southern and eastern buyers of alfalfa to establish branch
houses and maintain large warehouses here.
This stopping in transit at Denver will apply on hay originating
in Wyoming, Idaho, and other nearby Western States, and with
this increase in the business in this commodity much capital will
necessarily be required for the handling of the business in this
market in the future, and it occurs to us there will always be moving to this market after the above arrangement has become effective
a large volume of hay for storage and for the borrowing of money,
since it is well known that the facilities for storing baled hay on
any of the farms in Colorado, Wyoming, and Idaho are totally
inadequate, while also the rate of interest for the financing of this
business at points of production is often more than the traffic
can bear.
To sum up, hay is about the most valuable asset possessed by
the State of Colorado, the live-stock industry and our manufactories alone excepted, and it is also an industry which if properly
fostered will shortly return riches for our State.
Respectfully submitted.
ALLIANCE ALFALFA HAY CO.
GEO. LOPEZ, President.

Statement of production and value of Colorado crops for 1913 and
1912, as given by the United States Department of Agriculture.
Production.

Value to farmers.

Crop.
1913
Corn
Wheat

bushels..
do

6,300,000
9,680,000
10,675,000
3,250,000
do
340,000
do
50,000
do
9,200,000
do
tons.. 1,824,000
1,841,000
do
pounds.. 11,637,900

Barley
Rye
Flaxseed
Potatoes
Hay
Sugar beets
Wool
Pasture
Dairy products
Fruits and melons
Eggs and poultry
Honey
Emmer, speltz, buckwheat, etc
Alfalfa seed
Dry beans and peas
Vegetables for canning, etc
Total

Increase, 1913, $9,235,063.
Hay crop for 1913 worth $18,240,000.

1912

1913

1912

8,736,000
10,968,000
12,412,000
2,964,000
488,000
96,000
8,075,000
1,905,000
1,642,000
8,040,000

$4,599,000
7,551,000
4,697,000
1,820,000
204,000
58,000
5,980,000
18,240,000
10,390,000
1,396,548
5,165,500
7,680,000
5,297,188
4,309,718
217,000
331,453
201,960
578,952
11,215,827

$4,368,000
8,006,000
4,717,000
1,482,000
268,000
120,000
3,311,000
16,574,000
9,785,000
1,485,792
5,065,500
6,594,920
4,423,147
3,990,480
248,616
430,458
168,301
614,847
9,045,022

89,933,146

80,698,083

142

L O C A T I O N " OF R E S E R V E

DENVER, COLO., January 31, 1914.
Denver is the center of a milling and grain business which aggregates $30,000,000 annually. Its sphere of influence extends east
through Kansas and Nebraska to a line about 50 miles east of the
one-hundredth meridian. Practically all the wheat grown along
the line of the Santa Fe as far east as Offerle, Kans., is milled in the
Arkansas Valley in Colorado and in Dodge City, Kans., and the
product sold throughout Arizona and New Mexico, and the money
for moving this crop is furnished from Denver. The same is true
of wheat grown along the Kansas division of the Union Pacific to a
point about as far east as Ellsworth. About 80 per cent of the product of the wheat grown in that territory is shipped to Colorado,
Utah, Nevada, Idaho, and California.

Nebraska grain which is handled in Colorado consists chiefly of
corn, of which there is about 4,500 cars annually shipped into this
State.
The wheat which is milled in Denver and northern Colorado is
gathered first from local sources—that is, Colorado—then from Utah,
Idaho, and Wyoming. The wheat industry in the latter State is
in its infancy, and it is only within the past two years that Denver
mills have purchased any appreciable amount of wheat there. But
Utah and Idaho have been sources of supply for Colorado millers for
many years, and as wheat production in those States has increased,
Denver capital has provided facilities for handling it. There is
hardly a grain elevator in Utah or Idaho which is not owned wholly
or in part by Denver capital, and practically all of the money which
is required to move the surplus grain crops of those States is provided
from Denver. There is an exception to be noted, and that is the
grain grown in the northern part, or what is known as the "peninsula," in Idaho.
The majority of the wheat produced in Colorado, Utah, and Idaho
is soft white varieties grown under irrigation, and Denver is the
acknowledged center of the milling industry which is devoted to
grinding wheat of this character. This flour, manufactured by
Denver and northern Colorado mills, aside from that which is sold
in local markets, is shipped to Texas, Arkansas, Louisiana, Tennessee, Georgia, Alabama, Florida, and to a few stations in Virginia.
A small amount of flour has been shipped by the Colorado mills to
the West Indies. No other large market in the United States is
prepared to grind and properly mill the type of wheat which Colorado mills are handling, and for that reason this is a distinctively
white-wheat market, and with the development of the wheatgrowing industry throughout the intermountain district the importance of Denver in this line of industry will constantly increase
and Denver will continue the natural center for providing funds
to move the wheat and grain crops of the intermountain region.
Years ago it was necessary for Denver millers and grain dealers to
go East for large sums of money which were needed in the fall of the
year to move these crops, but in recent years, with larger bankingfacilities in Denver and Colorado, most of the money for this purpose
has been obtained at home.
H . E . JOHNSON,

Assistant General Manager,
Colorado Milling & Elevator Co.
Estimated number of bank accounts and aggregate balances (average
four months) received by Denver clearing-house banks from National
and State banks in territory claimed.
National.
State.
balances.
Colorado
Utah
New Mexico
Wyoming
Nebraska (26 counties)
Kansas (24 counties)
Texas (82 counties)
Oklahoma (3 counties)
Arizona
Idaho
Montana
South Dakota (8 counties).
Total




DISTRICTS.

The Jfiguers given below are approximate. They have been taken
from the best available sources, but there are a number of discrepancies over report submitted at hearing in Denver on January 26,
1914, due to differences in directories used, and in some cases to
differences in reports of State bank commissioners as of October 21,
1913, and January 13, 1914.
Number, capital, and surplus of State banks which could qualify as to
capital requirement, and those which are not eligible owing to insufficient capital.
Eligible.
State.

Noneligible.

Capital and
surplus.

$7,800,000
9,000,000
1,700,000
1,900,000
1,100,000
700,000
5,000,000
87,000
5,200,000
3,700,000
9,600,000
600,000

Total

29
25
19
59
3
29
61
106
12

$1,800,000
400,000
400,000
700,000
1,100,000
1,000,000
1,100,000
89,000
400,000
1,200,000
2,000,000
400,000

126
18
20
43
67
50
67

46,387,000

Colorado I
Utah
New Mexico
Wyoming
Nebraska (26 counties)
Kansas (24 counties)
Texas (82 counties)
Oklahoma (3 counties)
Arizona
Idaho
Montana
South Dakota (8 counties)

NumNumber of Capital and ber of
State
State
surplus.
banks.
banks.

531

10,589,000

609

8

16
75
91

ELIGIBILITY AS REGARDS STATE LAWS, AS ADVISED BY OUR CORRESPONDENTS AND THE BANKING DEPARTMENTS OF VARIOUS
STATES.

Colorado: Unable to join at present.
Utah: No law to prevent joining.
New Mexico: Difference of opinion.
Wyoming: Unable to join at present.
Nebraska: Unable to join at present.
Kansas: Attorney general says can join.
Texas: No law to prevent joining.
Oklahoma: Difference of opinion.
Arizona: No law to prevent joining.
Idaho: Unable to join at present.
Montana: Unable to join at present.
South Dakota: Unable to join at present.
CONCERNING THE MOVEMENT OP SILVER-LEAD ORES FROM NORTHERN
IDAHO TO THE REDUCTION PLANTS LOCATED IN COLORADO.

While it seems that northern Idaho and western Montana are
remote from Denver, it is true that the metal-smelting plants in
Colorado are supplied with wet—that is, silver-lead—ores from
that territory, and they are the principal buyers.
The following statement shows the tonnage worked in Colorado
plants and the metals recovered.
This represents a large initial money transaction at Denver, and
shows clearly that the handling of the business from this territory
would be best served by a reserve bank located here.
IDAHO SILVER-LEAD

ORES.

State.

NumNumber of Aggregate ber of
bank ac- balances. bank accounts.
counts.

$7,900,000
850,000
410,000
800,000
115,000
67,000
270,000
0
50,000
95,000
225,000
15,000

283 $4,700,000
16
510,000
16
110,000
18
250,000
12
17,000
9
23,000
6
60,000
0
0
5
46,000
5,000
62,000
0

10,797,000

384

5,783,000

1912
Ore.

Silver.

1913
Lead.

Ore.

Silver.

Lead.

229
8

5
6
3
1
3
0
8

1
4
0

To C o l o r a d o
department:
Amer i c a n
5 melting
6 Refin- Tons.
Ounces.
ing Co
66,427 1,816,849.64
Ohio & Colo ra d o
Smelting
Co
21,090
450,164.00

Pounds.
68,074,189

Tons.
Ounces.
Pounds.
63,152 2,114,089. 80 63,498,111

16,874,943

18,890

359,157.00 15,109,158

T. B.

BURBRIDGE.




EL PASO, TEX.

EL PASO, TEX.
El Paso is the natural center of a territory 500,000
square miles in extent, comprising most of Arizona and
New Mexico and that portion of Texas lying west of
the Pecos River and the northern States of Chihuahua
and Sonora in Mexico. Within this circle, or wheel,
of which El Paso is the hub, this city has no competitor, either commercially or financially. This territory, which constitutes a great empire in itself, is
united to us with a network of railroads, giving quick
and ready communication in all directions. By intimate personal acquaintance and numerous kindred
interests and by almost daily affiliation the people of
this district are closely united to this city. El Paso,
as financial headquarters, claims a peculiarly close and
intimate relationship with the banks and bankers located in this district, which we term our natural trade
territory.
Within this district and including El Paso there are
located 183 banks, 65 being national and 118 State,
with a combined capital and surplus of over
$15,000,000 and combined deposits of over $70,000,000.
In New Mexico, out of a total of 40 national banks
20, or 50 per cent, carry accounts in El Paso. Based
on the capital invested, this percentage is increased to
72 per cent, while based on the deposits the percentage
increases to 83 per cent. In other words, out of a
total of $17,000,000 deposits shown by the national
banks of New Mexico those carrying accounts in El
Paso show total deposits of over $14,000,000. The
20 national banks in New Mexico which do not carry
accounts in El Paso represent only 17 per cent on the
basis of deposits, and much of the business representing
this 17 per cent comes to El Paso indirectly through
those banks which carry accounts here.
The percentages shown from Arizona are even more
significant. Out of the total number of national banks
in Arizona 85 per cent carry accounts in El Paso, the
only two exceptions being the Yuma National and the
Tempe National, whose combined deposits are under
$500,000. Based on the invested capital of national
banks in Arizona, 93 per cent bank in El Paso, and
based on the total amount of deposits 95 per cent is
connected with El Paso by active accounts.
Referring to that portion of west Texas claimed by
El Paso, the percentage is 100, as every bank within
the district shown on our map has one or more accounts in this city.
46458°—S. Doc. 485, 63-2




10

I do not wish to take up your time with too many
statistics and will therefore file an exhibit showing in
detail the exact degree to which the banks of Arizona,
New Mexico, and west Texas favor El Paso with their
business, these figures showing percentage based on the
number of banks, total capital and total deposits, and
covering both national and State banks. I do, however, beg to call your attention to the very interesting
facts developed by the recapitulation of these figures.
There are 173 national and State banks in our district, exclusive of El Paso. These banking institutions
carry 134 accounts on the books of El Paso banks.
The total invested capital of all the banks of this district, exclusive of El Paso, is $12,279,000. The total
capital of those banks, both national and State, which
carry accounts in El Paso, is $8,570,000, or 66 per cent.
The total deposits of all banks in this district, exclusive
of El Paso, is $57,000,000, while the deposits of those
banks carrying accounts in El Paso is $43,900,000, or
77 per cent of the total. Every large and prominent
bank in the district carries an account here, and of
those constituting the 23 per cent not doing business
here directly, the great majority have connections
through which their items are routed into El Paso.
A great many banks in this district absolutely regard
El Paso as banking headquarters. When they need
outside accommodation to take care of the demands of
their customers, they come to El Paso for it. They
carry their principal reserves here, and such balances
as the requirements of their business make it necessary
for them to carry in New York and other eastern
centers they maintain by drafts on their El Paso accounts. The banks of this district, both national and
State, nominally carry in El Paso over $4,000,000 in
deposits, or a reserve larger than they would be required to carry in the regional reserve bank if all were
members.
I wish to call your special attention to the fact that,
as El Paso is not a reserve city the national banks of
this district which carry El Paso accounts, representing over 80 per cent of the total, based both on deposits and capital invested, can not take credit for El
Paso balances in reckoning their reserve. It is therefore apparent and significant that they have found
their El Paso connections sufficiently attractive to
warrant carrying balances here in spite of the fact
that such balances do not count as reserve.
145

146

LOCATION" OF RESERVE DISTRICTS.

I do not believe it is necessary for me to argue that
El Paso banks have shown sufficient strength and liberality to take care of the requirements of their banking customers and extend proper accommodation to
them at all times, as the extent to which the banking
business of this district has been centered here, as
shown by the above figures, is the best possible evidence to this effect.
In this district, which we call El Paso's natural trade
territory, many of the banks are located in mining
towns where large numbers of men are employed and
heavy pay rolls must be met. In meeting these demands, the banks of El Paso have made total shipments of currency of over $5,000,000 during the past
year to the banks in our district. This figure covers,
strictly, shipments to our customers for their use.
By figures taken from our books with great care
and covering an average month's business we find
that the yearly volume of outgoing items between El
Paso and her territory totals $39,000,000, while
the yearly volume of items coming into El Paso from
correspondents in this district reaches a total of
$110,000,000. The testimony at Denver showed that
her total volume of incoming items was $249,000,000.
In presenting the above facts and figures I have not
attempted to take into account the immense volume
of banking business from Mexico, which is directed to
El Paso under normal conditions. The northern portion of Mexico is one of the richest and most resourceful sections of this continent, and wonderful development of the vast resources there will follow close upon
the settlement of Mexico's present troubles. In estimating the importance and influence of El Paso as a
banking center, we ask you not to lose sight of the
great volume of business with Mexico, which must
pass through El Paso, a considerable portion of which,
involving commercial, mining, and cattle operations, is
actually centered here.
The Federal reserve act provides that "the districts
shall be apportioned with due regard to the convenience and customary course of business." In most respectfully petitioning your committee to respect El
Paso's relationship with her natural trade territory by
locating this city and this territory in the same regional
district served by a branch bank in El Paso, we feel
that we are asking only that we be permitted to retain
that business which is naturally and rightfully ours.
By so doing you will make it possible for El Paso to
continue to enjoy the commercial and financial supremacy in this district, which is united to us by geographical conditions, by railroad development, by the
intimate ties of personal acquaintance, and by the existing status of our commercial, industrial, and financial life.




JAMES G .

MCNARY.

EXCHANGE.

Of the llO banking points in Arizona, New Mexico, and west
Texas, 46 points, or 41.6 per cent of the total, par for El Paso everything drawn on their territory, regardless of indorsement. Fiftytwo of them, or 47J per cent, charge exchange at the rate of onefourth of 1 per cent on all items circulating outside of Arizona, New
Mexico, and El Paso (El Paso being considered a "local" indorsement by all banks in Arizona and New Mexico, as well as Texas).
The remaining 12 banking points, or 10.9 per cent of the total, charge
exchange at the average rate of one-fourth of 1 per cent on everything drawn on their locality, without regard to the items' indorsements, local or foreign. El Paso can now handle at par 89.1 per
cent of all the points in this district where items have not circulated
outside, whereas any other Texas point could only handle 58.4 per
cent with the same exchange agreements under which El Paso now
operates, which of course they would not have or could not get.
It is therefore readily seen that El Paso is in an unusually favorable position for collecting all items on this district at the least possible cost, owing to its being " an outside of the State" indorsement
in Texas, and being so considered by all banks in Arizona and New
Mexico.
Total capital of national banks in El Paso's territory.. $5,120,000
Total surplus and profits of national banks in El Paso's
territory
3,373,373
Total deposits of national banks in El Paso's territory.. 41,901,500
Total capital of both State and national banks in El
Paso's territory
9,046,000
Total surplus and profits of all banks in El Paso's territory
6,322,125
Total deposits of all banks in El Paso's territory
72,979,600
El Paso banks have made shipments of cash to banks in this district during the past year of $5,321,000.
El Paso banks have within the past year collected transit items
drawn on points in this district to the amount of $39,685,000.
El Paso banks have received from banks in this district during
the past year cash remittances amounting to $110,709,000.
CONSOLIDATED STATEMENTS.
EL PASO BANKS.
[As compiled from published statements on call of Jan. 13, 1914.]
RESOURCES.

Loans and discounts
Overdrafts
United States bonds and premium
Bonds and securities
Banking houses, furniture and fixtures
Other real estate
Due from approved reserve agents
Due from other banks
Exchange for clearing house and cash items
Cash in vault

$2,860,687.44
1,629,984.16
436,858.47
1,583,826.66

Redemption funds
Guaranty funds
Expense

$10,966,508.01
17,353.22
1,480,500.00
666,504.17
345,185.04
183,637.66

6,511,356.73
62,750.00
43,512.80
4,673.13
20,281,980.76

LIABILITIES.

Capital
Surplus
Undivided profits
National-bank notes outstanding
Deposits banks
Individual deposits
United States and postal savings deposits
Other liabilities

$3,527,418.72
12,224,625.49
205,286.99

2,405,000.00
490,500.00
97,499.56
1,235,650.00
15,957,331.20
96,000.00
20,281,980.76

EL PASO,

147

TEXAS.

Total capital, surplus, and profits of national banks, and both State
and national banks, in El Paso's trade territory; also percentage on
' t of invested capital of those carrying El Paso accounts.

Capital, surplus, and profits, and deposits of State banks in
Arizona that carry accounts in El Paso.

NATIONAL BANKS.

[Figures in number column indicate number of banking connections maintained
by the bank in El Paso.J

Capital, sur- Percentage
plus,
Total capital, profits ofand
banks of banks
carrying
surplus, and
carrying acEl Paso
profits.
counts in El
accounts.
Paso.

State.

Per cent.

$2,161,000
3,480,400
1,069,000

Total

$2,023,000
2,507,100
1,069,000

93
95
100

6,710,400

Arizona
New Mexico
West Texas

5,599,100

83

STATE AND NATIONAL BANKS.
$5,390,500
5,420,800
1,468,500

Total

$3,719,900
3,383,000
1,468,500

68
62
100

12,279,800

Arizona
New Mexico
West Texas

8,571,400

66

Total deposits of national banks, and both State and national banks
{El Paso banks not included), in El Paso's trade territory; also the
percentage calculated on this basis of El Paso correspondents.
NATIONAL BANKS.
Percentage of
Total deposits deposits havof banks carrying direct
Total deposits. ing accounts
banking conin El Paso.
nections in this
city.

State.

Per cent.

$10,219,000
17,394,000
3,675,000

Total

$9,789,000
14,520,000
3,675,000

95
83
100

31,288,000

Arizona
New Mexico
West Texas

27,984,000

$21,915,275
17,272,000
4,809,000

75
73
100

57,113,275

43,996,275

[Figures in number column indicate number of banking connections maintained
by the bank in El Paso.]

Clifton
Douglas
Globe
Nogales
Phoenix
Do
Prescott
Tombstone...
Tucson
Do
Yuma

Bank.
First National
do
do
do
National Bank o f . . .
Phoenix National...
Prescott National...
First National
Arizona National
Consolidated
National.
First National

Total




1
1
4
1
1
1

$50,000
50.000
50,000
10,000
25,000

1
4
1
3

30,000
50,000
15,000

8,500
75,000
10,000

110,000
1,080,275
100,000

1
1

22,000

100,000

375,000

1
1
1

15,000
10,000

500
3,000

110,000
200,000

1
1
1
1
1
1
1

100,000
30,000
50,000
150,000

97,000
900

2,208,000
115,000

145,000

2,800,000

33,000

17,000

260,000

1
2

12,000
50,000

3,000
19,000

71,000

3

75,000

63,000

298,000
891,000

1

10,000

1,000

50,000

1
1

25,000

13,000

296,000

862,000

$177,000 $1,590,000
5,000
150,000
95,000 1,350,000
10,000
2,000
62,000

Total
1

834,900 12,126,275

2 New.

Branch bank.

77

Capital, surplus, and profits, and deposits of national banks in
Arizona that carry accounts in El Paso.

City.

Bisbee
Bank of Bisbee
D o . . . . . . . . CitizensBankingand Trust
Do
Miners & Merchants
Bowie
Bank of Bowie
Buckeve Vallev Bank
Buckeye
Clifton
Gila Valley Banking ,&
Trust.*
Douglas
Arizona Banking & Trust.
Do
Bank of Douglas
Duncan
Bank of Duncan
Globe
Gila Valley Banking &
Trust.1
Old Dominion Co
Do
Hayden
Gila Valley Banking &
Trust.1
Bank of Lowell
Lowell
Bank of Miami
Do
Gila Valley Banking &
Trust.1
do
Morenci
Do
State Bank of Morenci
Nogales
Santa Cruz Valley 2
Phoenix
Valley Bank of.
Ray
Gila Banking & Trust K...
Safford
Bank of Safford
Do
Gila Valley Banking &
Trust.1
Thatcher
Citizens Bank
Merchants B a n k i n g &
Tucson
Trust.
Southern Arizona Banking
Do
& Trust.
Sulphur Springs Valley
Willcox
Bank.
Willcox Banking & Trust.
Do
Winkelman... Gila Valley Banking &
Trust.1

Deposits.

Capital, surplus and profits, and deposits of national banks in New
Mexico that carry accounts in El Paso.

$28,953,275
23,351,000
4,809,000

Total

Surplus
and
profits.

Capital.

89

STATE AND NATIONAL BANKS.
Arizona
New Mexico
West Texas

Bank.

Number.

39

City.

Number.
2
1
1
1
1
1
1
1
1
2

Capital.
$30,000
100,000
100,000
50,000
200,000
150,000
100,000
25,000
100,000
100,000

Surplus
and profits.
$20,000
25,000
50,000
55,000
185,000
200,000
215,000
22,000
28,000
150,000

Deposits.
$400,000
844,000
779,000
500,000
1,300,000
2,206,000
1,231,000
200,000
505,000
1,500,000

1

100.000

18,000

324,000

14

1,055,000

968,000

9,789,000

[Figures in number column indicate number of banking connections maintained
by the bank in El Paso.]

City.

Alamogordo..
Albuquerque
Do
Carlsbad
Deming
Gallup
Las Cruces...
Las Vegas
Do
Lordsburg...

Bank.

First National
do
State National
National Bank of
Deming National
First National
do
do
San Miguel National.
First National
do
Raton
do
Roswell
do
Do
American National...
Do
Citizens National
Santa Fe
First National
do
Santa Rosa...
Silver City... American National...
Do
Silver City National..
Tucumcari... First National
Total..

Capital.

Surplus
and
profits.

$25,000
300,000
100,000
30,000
25,000
25,000
25,000
100,000
100,000
25,000
50,000
100,000
100,000
50,000
100,000
150,000
50,000
50,000
50,000
50,000

Number.

$5,500
132,000
49,000
25,000
25,000
7,000
15,000
40,000
75,000
10,000
3,100
50,000
125,000
31,000
150,000
102,000
7,500
46,000
94,000
10,000

Deposits.

$202,000

4,301,000
1,403,000
230,000
200,000

145,000
117,000
800,000

1,100,000
150,000
151,000
1,000,000
1,059,000
250,000
700,000
907,000
200,000

410,000
795,000
400,000

35 1,505,000 1,002,100 14,520,000

148

LOCATION" OF RESERVE

Capital, surplus and profits, and deposits of State banks in New
Mexico that carry accounts in El Paso.

DISTRICTS.

Capital, surplus and profits, and deposits of national banks in Texas
that carry accounts in El Paso—Continued.

[Figures in number column indicate number of banking connections maintained
by the bank in El Paso.]

Alamogordo..
Albuquerque
Do.......
Carrizozo
Columbus
Dawson
Deming
Do
Hillsboro
Las Cruces...
Do
San Antonio.
Silver City...
Socorro

Alamo State
Citizens Bank
First Trust & Savings
Exchange Bank
Columbus State Bank
Bank of Dawson
Bank of Deming
First State Bank
Sierra County Bank
Bowman Banking & Trust.
First State Bank
New Mexico State Bank...
Peoples Savings Bank
Socorro State Bank

Total

1
1
1
3
1
1
2
1
2
2
1
1
1
3

$15,000
50,000
250,000
50,000
15,000
30,000
30,000
30,000
30,000
100,000
30,000
30,000
50,000
30,000
740,000

Surplus
and
profits.
$2,200
50,000
21,000
7,000
20,000
200
6,000
11,000
3,500
15,000

$125,000
130,000
437,000
301,000
22,000
248,000
325,000
55,000
178,000
371,000
285,000
50,000
225,000

Alpine
Del Rio
Do

First National
Del Rio National
First National




2
2
2

Capital.

$75,000
100,000
75,000

Surplus
and
Deposits.
profits.
$30,000
30,000
160,000

2
1
2
1
1

Total

Capital.

$185,000
250,000
1,516,000

Surplus
and
Deposits.
profits.
$70,000
4,000
30,000
100,000
50,000

$800,000
57,000
350,000
325,000
192,000

595,000

474,000

3,675,000

Capital, surplus and profits, and deposits of State banks in Texas that
carry accounts in El Paso.
[Figures in number column indicate number of banking connections maintained by
the bank in El Paso.]

135,900 2,752,000

[Figures in number column indicate number of banking connections maintained by
the bank in El Paso.]
Number.

Border National
First National
Marfa National
First National
do

13

Eagle Pass
Fort Stockton..
Marfa
Midland
Pecos

i
1

Alpine
Barstow
Clint
Marathon
Marfa
Pecos
Sanderson...
Van Horn....

Surplus
and
Deposits.
profits.

Number.

Capital.

$17,000
2,000

$155,000
67,000

4

$25,000
20,000
10,000
15,000
50,000
110,000
25,000
30,000

7,000
7,000
62,000
12,000
7,500

80,000
160,000
430,000
102,000
140,000

11

Bank.

i
1

Capital, surplus and profits, and deposits of national banks in Texas
that carry accounts in El Paso.

Bank.

Number.

Deposits.

Name.

City.

Bank.

City.

ooooo
OOOOO
ooooo

Bank.

Capital.

21

City.

Number

285,000

114,500

1,134,000

Alpine State Bank
Citizens State Bank
First State Bank 1
Marathon State Bank
Marfa State Bank
Pecos Valley Bank
Sanderson State Bank
Van Horn State Bank

Total
1

New.




•J

vrfzrfG

Pma-M&L/.

/
N J^jEr

W
G>

**

I 2

O N

A
M

E f t ^ ^ ^ y C

jfaa&i&Ags

O
jm&i/n* I

If/rtc/i'/r/}

Wf/m/t I

*
«0

tu 3

•"Ore Istexfj/rf

c/ry®\

i

\iAttewoo0 I

§

*g/<3 j p e / f f i j
IX!

"E

^Jj*

\
T

x l

o

A

H
H
•
C
O

^ ^ ^
cSTOCKTCAf.®

G ^AClDl

\

Figures in circles O show
number of banks in each
town having accounts in El
Paso.

C
D




FORT WORTH, TEX.

FORT WORTH, TEX.
F O R T W O R T H , T E X . , January

20,

1914-

T h e SECRETARY OF THE TREASURY,
T h e SECRETARY OF AGRICULTURE,

and

T h e COMPTROLLER OF THE CURRENCY,

Washington, D. 0
Fort Worth, Tex., makes this, its
formal application to have one of the regional banks
provided for by the Federal reserve act located at this
city.
Following are reasons, briefly stated, why, in our
judgment, said regional bank should be located at
Fort Worth. Your careful and favorable consideration is respectfully solicited, and if further information
is desired it will be furnished, if possible, upon suggestion from you.
Respectfully,
GENTLEMEN:

WM.

HONNIG,

President Chamber of Commerce.
H . C. EDSINGTON,

President Fort Worth Clearing House.
R . F . MILAM,

Mayor of Fort Worth.

While area is not the only factor to be considered in
the location of a regional reserve bank, it will be admitted that so large a territory so favorably situated,
with such a volume of business, is entitled to the highest consideration, and if found consistent with the plan
of organization adopted, should have the benefit of the
facilities afforded by the location of one of these
banks.
POPULATION.

The population in the suggested district is approximately 6,000,000. In no part of the country is the
population increasing as rapidly as in this section.
In a few years it will equal, if it does not surpass, that
of any other "region" that may be formed by your
committee.
The population of Texas as shown by the Thirteenth
Census was 3,896,542.
Forty-two and eight-tenths per cent of the population of Texas is within a radius of 110 miles of Fort
Worth, and an examination of the map appended
hereto will demonstrate the fact that this section is
better served with railway facilities than any other
section in the Southwest.
R A I L W A Y A N D MAIL

SUGGESTED DISTRICT.

The States of Texas, Oklahoma, and New Mexico
comprise a compact contiguous territory, whose trade
relations with Fort Worth are close and intimate and
the facilities for the transacting of business adequate
to the demand.
The area of Texas is 265,780 square miles.
The area of Oklahoma is 70,057 square miles.
The area of New Mexico is 122,580 square miles.
The total area of this proposed district is 458,417
square miles.
These States are larger by 15,287 square miles than
the States of Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, New York, New
Jersey j Pennsylvania, Maryland, Ohio, Virginia, Delaware, Indiana, Illinois, and Michigan combined.
Larger by 30,043 square miles than all the States
bordering on the Atlantic and Gulf of Mexico from
Maryland to and including Louisiana.
Larger by 5,712 square miles than all the States
between the Hudson and Mississippi Rivers north of
the Ohio River, with Virginia, Maryland, and Kentucky
south of the Ohio included.




FACILITIES.

Railway facilities.—Geographical convenience must
be admitted and the map submitted herewith will
demonstrate the fact that transportation facilities
and rapid and easy communication with all parts of
the district is ample and satisfactory.
Thirteen trunk lines of railway converge at Fort
Worth and radiate in 17 directions across the State
and adjoining States to the commercial marts of the
country.
No city in the South or West, if indeed, in the entire
country, is better provided with facilities for rapid
and easy communication than Fort Worth.
There are three lines to Denver: The Fort Worth &
Denver, the Santa Fe, and the Rock Island.
There are four lines to Kansas City: The Santa Fe,
Rock Island, Missouri, Kansas & Texas, and the
"Frisco."
There are five lines to St. Louis: The Missouri,
Kansas & Texas, "Cotton Belt," Texas & Pacific with
its connection with the Iron Mountain and the two
lines of the "Frisco," one east by the way of Dallas,
Paris, and Fort Smith, Ark., and one north by way of
Denison, Tulsa, Okla., and Springfield, Mo.
153

154

LOCATION" OF RESERVE DISTRICTS.

There are five lines south to Houston and Galveston:
The Missouri, Kansas & Texas, Santa Fe, Houston &
Texas Central, International & Great Northern, and
Trinity & Brazos Valley.
There are two lines to the Mexican border on the
southwest through San Antonio and one to El Paso.
New Mexico is served by three lines: The Santa Fe
with a tridaily service; the Fort Worth & Denver with
its connections at Amarillo; the Texas & Pacific with its
connections at Pecos City with the Pecos Valley &
Northern and at El Paso with the Santa Fe. These
several roads reach all the principal points in New
Mexico.
I t will be observed that the north and south lines
from Fort Worth with their connections cover the
entire State of Oklahoma, leaving nothing to be desired in the way of "rapid and easy communication."
Mail service.—One of the most important factors
in the "rapid and easy" transaction of business is the
prompt and reliable transmission of the mails.
Fort Worth was selected by the Post Office Department for the headquarters of the eleventh division of
the Railway Mail Service by reason of its unexcelled
railway facilities. There are 110 mail trains in and
out of Fort Worth every 24 hours. These facilities
are unequalled in the Southwest, and it would be difficult to estimate the advantage to business of these
conditions.
FREIGHT

MOVEMENT.

There is no more reliable indication of the volume of
business done at a given point than in the movement of
freight cars. Your attention is directed to the movement of freight cars through the several yards of the
railroads which converge at this point, for the year
1913, which includes loaded cars only and amounts to
955,905 cars. I t is confidently asserted that no other
city in the Southwest, irrespective of population, can
make a showing equal to this.
INDUSTRIAL AND COMMERCIAL

DEVELOPMENT.

Live stock.—The industrial and commercial development and needs of this section is best shown by the
volume of business transacted, the amount of capital
required, and the quantity and kind of commodities
included in the daily transactions.
The products of Oklahoma, New Mexico, and Texas
are chiefly agricultural and cattle. Cotton and grain
are the principal agricultural products of this district
and require vast sums of money to handle.
Fort Worth is the second cattle market in the United
States. The packing houses and stock yards are the
most modern in design and equipment in the country.
By reason of its accessibility Fort Worth has been made
the headquarters of the cattle raisers' association,
which embraces in its membership the stock raisers of
Texas, Oklahoma, New MexicQ, the Republic of Mex-




ico, and large numbers of the State of Kansas, and is
the largest organization of its kind in the world.
During the year 1913 there were received at Fort
Worth:
Number.
Cattle
Calves
Sheep
Horses and mules
Total

Value.

965,525 $43,447,525
219,629
4,392,450
403,761
6,056,415
327,527
1,637,635
57,724
8,508,600
1,973,166

64,042,745

There were 16,500 cars of refrigerated meats shipped
from Fort Worth during the year of the value of
$50,000,000.
Thus we have an aggregate of over $114,000,000
required for this single industry.
Live stock.'—The proviso in section 13 of the Federal
reserve act which authorizes reserve banks to discount
notes, drafts, and bills drawn for agricultural purposes
or based on live stock, and having a maturity of six
months, is an indication that the framers of the act
had in mind the encouragement of these two industries.
At no point in the country can this service be more
acceptably rendered than at Fort Worth, in so far as it
applies to live stock. This being the second largest
industry in Texas and Fort Worth being the acknowledged center for the transaction of every line of business connected with the raising and marketing of
live stock makes it the logical place for the location of
a reserve bank.
Cotton—Approximately one-third of the cotton of
the country is grown in this district.
The official statistics of the year 1913 are not available at this time, but the yield in Texas will be nearly,
if not quite, 4,000,000 bales.
The yield for the year 1912 was 4,880,200 bales, of
which about 51 per cent, or 2,482,215 bales, was raised
within a radius of 110 miles of Fort Worth and in
counties that lie west of this city.
Practically all of the cotton raised in Oklahoma
comes to this market where it is purchased by the
cotton firms, of which there are 15, that do business
here. Fully 1,000,000 bales will be bought and paid
for by the Fort Worth cotton dealers this year. One
firm has loaded and sent out from the port of Galveston two full cargoes for the Orient during the month
of December, 1913.
This business requires fully $50,000,000 per annum
to transact.
There are 15 cotton mills in Texas with a capital of
$2,229,000. They operate 112,404 spindles. Eleven
of these mills, with 89,304 spindles, are within a radius
of 110 miles of Fort Worth.
There was crushed in the United States in the year
1912 6,104,000 tons of cotton seed of the value of
$128,390,000. Of this Texas supplied 2,171,000 tons,

155

FORT W O R T H , TEXAS.

or more than one-third of the whole of the value of
$39,690,000.
Grains—Fort Worth is the acknowledged grain center of the Southwest. I t is the headquarters of the
Texas Grain Dealers' Association, which has in its
membership many of the leading dealers of Oklahoma.
There are 18 grain elevators in the city with a
capacity of 2,555,000 bushels.
During the year 1913 there were 29,108 cars of
grain received in Fort Worth, of which 7,525 were purchased by the Fort Worth dealers.
As each car of grain represents a value of about
$1,000 it will be seen that it requires about $30,000,000
to transact this business.
Petroleums—The oil from the fields in northwest
Texas and Central Oklahoma is brought to Fort Worth
by pipe lines, where it is converted by the refineries
here into the merchantable article and shipped
throughout the Southwest and to the Gulf States east
of the Mississippi.
It is contended by those in the business that this
industry is practically in its infancy and that the output will be very largely increased as the territory is
developed.
Eleven thousand barrels of crude oil is received at
this place daily. As the average value is $1 per barrel,
this industry uses $3,300,000 per annum for the purchase of the crude oil alone. About $4 per barrel is
added to the value by refining, making a total of
$16,500,000 per annum for this industry.
BANKS AND TRUST

COMPANIES.

Financials—There are 519 national banks in Texas
with an aggregate capital and surplus of $86,089,990.
The deposits in these banks amount to $259,635,000.
There are 924 State banks and trust companies with
an aggregate capital of $52,564,325, and deposits
amounting to $110,555,000.
There are 40 national banks in New Mexico with an
aggregate capital and surplus of $3,509,000, and
deposits amounting to $17,543,000.
There are 48 State banks and trust companies with
an aggregate capital and surplus of $2,023,000, and
deposits of $5,569,000.
There are 415 national banks in Oklahoma with an
aggregate capital and surplus of $15,430,500. The
deposits amount to $77,565,875.
There are 518 State banks and trust companies with
an aggregate capital and surplus of $10,261,300. Their
deposits amount to $46,138,125.
The established custom and trend of business as
shown by the present system of bank reserves and
checking accounts, as far as can be ascertained by
careful inquiry, is for the interior banks in small
towns in the territory to the north, northwest and
west of Forth Worth to keep their reserves in Fort




Worth, and to keep only small deposits for checking
accounts in the central reserve cities. This has
proven more convenient and expeditious for the transaction of ordinary daily business of these banks. If
found necessary to draw for larger sums than they
have on deposit in the central reserve cities their
correspondents in Fort Worth are asked to remit to
cover.
Bank clearings.—Indubitable evidence of the volume of business transacted at a given point is found
in the bank clearings. For the year 1913 the bank
clearings of the Fort Worth banks amounted to the
sum of $418,619,827.91. This is an increase of 65 per
cent over the year 1908, showing the rapid increase of
business in this city.
An. examination of the reports of bank clearings, as
published weekly in the financial journals of the country, will disclose the fact that the "clearings" in Fort
Worth exceeds that of many cities having two and
hree times the population of this city. Different
cities have different methods of "clearings." Fort
Worth includes in its bank clearings only the bills that
are actually exchanged between the banks over the
clearing-house counter each day.
INDUSTRIAL

DEVELOPMENT.

The industrial development of Fort Worth has not
been rapid, but it has been steady and substantial.
All of the industries located in this city have been
prosperous and progressive.
The commissioner of labor for the State of Texas
says:
Fort Worth has a larger pay roll, a larger average wage, a larger
number of laboring men and* less trouble with labor than any other
city of the State.

The two packing houses and stockyards is the largest
single industry in the city. They employ about 5,000
people.
Fort Worth is the largest manufacturer of furniture
in the South.
Fort Worth has the only steel rolling mill in the
Southwest.
Fort Worth has 2 oil refineries; 3 cottonseed-oil
mills; 2 harness and saddle factories; 3 overall and
jumper factories; 2 bank, office, and store fixture factories; 11 silo factories; 1 wagon factory (largest in the
South); 1 wire-fence factory; 2 flouring mills (capacity
2,500 barrels daily); 2 candy factories; 1 cracker factory; 5 cigar factories; 2 trunk factories; 1 brewery
(largest in the South); 2 structural-iron factories; 3
iron and brass works; 3 broom factories; 5 metal tank
and cistern factories; 1 pottery and earthenware factory; 6 ice factories; 2 macaroni factories; 2 wellboring machine factories; 2 flavoring-extract factories; 2 chemical and disinfectant factories.

156

LOCATION" OF RESERVE DISTRICTS.

There is a large number of small concerns that
employ only a few men each, but which in the aggregate add materially to the industrial output of the
city.
Commercial.—The commercial activity of Fort
Worth is clearly indicated by the volume of bank
clearings and the movement of freight cars. I t will
not be necessary to epitomize the sources from which
this business is derived. But it may not be amiss to
direct the attention of the committee to one or two
salient points which are the most potent factors in
the business of the city.
Fort Worth is the largest distributor of groceries in
the Southwest. One of the wholesale grocery houses
in this city is the second largest in the United States.
A Chicago house is the only one that leads in the
volume of business transacted in this line.

There are 2 wholesale drug houses, 2 hardware
houses, 1 wholesale dry-goods house, 5 wholesale
liquor dealers (one of which is the largest in the Southwest). Machinery and agricultural implement houses
are well represented.
The volume of business transacted in this city which
requires large sums of money to conduct is such as to
justify the location of a Federal reserve bank here.
At no point in the Southwest will a larger number
of people or a larger volume of business be served
than at Fort Worth.
Your attention is directed to the rapid growth of
the city. The census of the year 1900 gave Fort
Worth a population of 26,668. The census of 1910
a population of 73,312, an increase of 174.7 per cent.
The city is growing with as much rapidity as during
the last decade.

SUPPLEMENTAL PETITION OF THE FORT WORTH CHAMBER OF COMMERCE.
At the hearing before this honorable body at Austin, Tex., on Monday, February 9, 1914, the advisability of locating a reserve bank in Texas prompted
several questions on the part of the locating board
which were not answered at the time by the representatives of the city of Fort Worth, and, after careful
consideration, the following is offered as a reply to
such questions to supply the information requested,
i Moreover, certain questions were asked regarding
the city of Fort Worth which could not be answered
at the time, and this honorable body then requested
that such facts (also certain documents) be furnished
to go into the records, that all might be considered
before the decision of the board was made and the
location of the several Federal reserve banks decided.
T H E LOCATION O F A F E D E R A L R E S E R V E
IN

BANK

TEXAS.

We believe it is safe to assume that a district comprising Texas, Oklahoma, New Mexico, and probably
some little adjacent territory as outlined by the
Texas committee of bankers has every claim for the
location of a Federal reserve bank unless it be a fact
that such a bank would not be self-sustaining under
normal conditions. I t is unquestionably the intention of the law that each district shall be as nearly
self-sustaining as possible, and this feature properly
appears to be the primary consideration of the organization committee.
Naturally, then, the question of first importance is,
Will a bank located in the district contemplated
above be able, under normal conditions, to handle the
needs and demand of the member banks in its territory? Without the least hesitation we answer that
it will. I t has been shown that such a district will
afford not only the required capitalization but would
have as well a comfortable excess; its deposits created




by the actual legal reserves of national-bank mem
bers alone will exceed by several million dollars the
total rediscounts or borrowed money of those same
national banks considered at the period of theft* highest
borrowing during the fall of last year, a season of
nation-wide unusual conditions. Such a bank could
not, of course, at any time provide for all of the commercial needs of this section, neither, for that matter,
could a bank located in St. Louis or Kansas City comprising at the same time all of the territory proposed
in connection with them.
Furthermore, as we understand it, it is not contemplated that the establishment of these reserve banks
will in any great measure cause a discontinuance of
present established connections, but, on the contrary,
it is reasonable to presume that business interests
generally will continue to sell their paper to lenders
throughout the entire country; banks and financial
institutions in other sections will not have lost their
willingness to buy our cattle, land, and every other
kind of paper.
I t is not to be denied t h a t this is a borrowing section;
in fact, every growing, developing district invariably is,
but it must not be overlooked that the financial growth
of this section has more than kept pace with the general
commercial, industrial, and agricultural progress. I t
is an indisputable fact, to which the bankers of Texas
will practically unanimously agree, that they find less
difficulty each succeeding year in financing their customers and connections.
No better evidence of this statement can be found
than in the fact that the financing of our great cotton
crop annually has ceased to be the nightmare it formerly was to Texas bankers. We have learned to do
business on good paper and the amount of actual
money used in our transactions diminishes daily.
During the year of 1912 the immense cotton crop




FORT WORTH, TEXAS.

157

158

LOCATION" OF RESERVE DISTRICTS.

which sold at unusually high prices was handled with j
greater ease than ever before in our history, and it is a
fact worthy of consideration in this connection that
during what is generally our most stringent season,
namely, the early fall, when the actual movement of
cotton is greatest and the strain most severe, a large
number of Texas banks began buying commercial
paper. We venture the assertion that during that
season Texas banks bought more commercial or outside paper than ever before, showing in an unmistakable
manner that our own local finances and connections
were such that we could handle our vast products and
industries under normal conditions. During the fall
of 1913 money was tight throughout the entire country and naturally we were affected materially by adverse general conditions; however, the magnitude of
our burdens consisted almost entirely in the holding of
cotton for months after it had been gathered, baled,
and ready for shipment. Had our cotton crop been
marketed as it was ready for market, or sold in the
manner it is generally disposed of, Texas would have
had few troubles financially.
I t must be borne also in mind that through a bank
centrally, or in other words, conveniently located for
this section of great production, it is not only possible
but reasonably probable that a system will be worked
out under which we can handle to greater advantage
and with more dispatch the exchange and funds arising
from the marketing of our various products, thus reducing the enormous amount of funds required in the
transit financing of the great volume of business
transactions. We wish also to call attention to the
fact that should it become necessary at any time to
issue currency against the needs of this region, our
actual products of the soil will furnish the best assets
possible in this entire country for the proper and
actual securing of the same.

in the cost of moving the crops and the commerce of
the country.
In numerous cases the commodities themselves moving by freight service arrive at destination far in advance of the bill of lading and draft referred to above.
Under present business conditions it requires from
6 to 10 days for the banks to get returns on the draft
given for money advances for the purchase and payment of cotton and grain, and from 3 to 6 days to get
returns on the drafts given for the purchase and payment of five stock.
If there were a reserve bank at Fort Worth, this
money* could be turned every 24 to 36 hours, thus
requiring a much smaller volume of money to conduct
the business of these three great ready-money products of the farms and ranches of Texas and the
Southwest.
THE QUESTION OF

LOANS.

I t has been shown heretofore that Fort Worth distributes and finances the greater part of the live stock
products of the Southwest, including imports from
Mexico; the greater part of the grain products, including a considerable volume of Argentine imports
of corn; the largest part of the fruits and vegetables
from other States, and approximately as much cotton
as any city of Texas.
Therefore Fort Worth is preeminent among the
cities of. the Southwest in vital relation to its primary
wealth, and it must be remembered that rural prodducts constitute at least 75 per cent of the resources
of this region.
These facts are the more important and impressive
in view of the commanding duty and avowed purpose
of the Government to facilitate the marketing and
financing of rural products.
The provisions of the new banking act offer the
only accommodation to producers that may be expected for a considerable period, since proposed legisT R A N S I T F I N A N C I N G O F C R O P S A N D FOOD P R O D U C T S .
lation to establish rural banking can not be realized
Of the products of the soil of the Southwest a goodly in the near future and at best will be only a hopeful
portion move through or are handled" in the city of experiment.
The Department of Agriculture wisely contemplates
Fort Worth, the live stock, the grain, and the cotton
being representative of a large part of the production. in its tentative, plans for the better marketing of farm
In the original Fort Worth brief statistics and fig- products a system of smaller, rather than larger, units,
ures are submitted showing the volume of this traffic. and the service to be rendered to agriculture by the
Practically all the grain and cotton is handled by the new banking system should conform in some degree
method of draft on the consignees attached to the to this contemplation. In other words, the bank rerailroad company's original bill of lading. This draft gions should be constructed and the reserve banks
is passed by the bank of original point to its nearest located with some regard to marketing needs. This
correspondent, and in numerous cases passes through accommodation should be offered to producers, even
from three to five banks before it finally arrives at its though it might require the arrangement of regions
destination. This requires several days at best and, not completely self-sustaining; and, after all, the sevin effect, takes out of circulation for commercial pur- eral reserve banks are to be so correlated under the
poses a large amount of funds at a time when badly general board that loans by one reserve bank to
needed and, further, burdens the commerce with an another will be easily provided* and, in fact, will be
unnecessary interest account, which is a strong factor freely offered for the same reasons of self-interest that




FORT W O R T H , TEXAS.

now induce banks in nonproducing sections to make
seasonable loans to banks in producing sections.
The South and West, under any conceivable circumstances, in the near future must continue to borrow more or less from the East during the short period
of crop movement, and must likewise lend to the East
during the longer period of crop consumption. The
new banking system will not affect this business relation except in providing the means of protection for
the South and West from concentrated power in private banks and from arbitrary rates in times of
general distress.
INDORSEMENTS.

During the hearing of this board at Austin, when
certain indorsements were submitted for the consideration of this board, a request was made by Mr. Secretary
McAdoo that copies of the requests for such indorsements be filed into the record, and likewise the original
indorsements themselves be filed wherever possible.
The letter, as per Exhibit I, attached hereto, was
sent to several thousand feeders and breeders of live
stock in the States of Oklahoma, New Mexico, Arizona,
Louisiana, and Texas, together with the return postal
card marked "Exhibit I I , " with the result that 2,501
indorsements were received.
Following this a wire was sent to the members of the
executive committee of the Cattle Raisers' Association
of Texas, copy of which is attached hereto, marked
"Exhibit I I I . " Replies from a majority of this body
strongly indorse the city of Fort Worth for a Federal
reserve bank.
Mr. Marion Sansom, before this board on Monday,
February 9, at Austin, read and filed into the records
telegrams to this effect from the following members of
the executive committee of the Cattle Raisers' Association of Texas: Jack D. Jackson, Alpine, Tex.; Ike




159

T. Pryor, San Antonio, Tex.; James Callon, Menard,
Tex.; A. B. Robertson, Slayton, Tex.; N. H. Condor,
Sanderson, Tex.; R. H. Kleburg, Kingsville; R. J.
Cook, Beeville; T. B. Jones, Del Rio, Tex.; J. M.
Dobie, Cotulla, Tex.; A. M. James, Dalhart, Tex.;
W. W. Bogel, Marfa, Tex.; H. L. Mangum, Uvalde,
Tex. And attached hereto, marked "Exhibit IV,"
will be found telegrams received later from 'W. R.
Shriner, San Antonio, Tex.; H. C. Harding, Lubbock,
Tex.; John Landergrin, Amarillo, Tex.
In the statements of Mr. W. H. Fuqua, of Amarillo,
before this board he was asked to file into the record a
list of the banking houses he is connected with. (For
the indorsements of such banks see Exhibit V, attached
hereto, with letter from Mr. Fuqua, being the indorsement of 39 banks in Texas, New Mexico, and Oklahoma.)
Likewise, when it was generally learned from press
reports that this honorable board was interested in the
question of indorsements and that same would have
consideration in the selection of the location of this
bank, telegrams were voluntarily sent by the following
interests indorsing the city of Fort Worth: Amarillo
National Bank, Amarillo, Tex.; Harding Commission
Co., Amarillo, Tex.; Noble Bros. Wholesale Grocery,
Amarillo, Tex.; Landergrin Bros., Amarillo, Tex.;
Coggins National Bank, Brownwood, Tex.; J. H.
Akers, Greenville, Tex.; Dr. C. L. Gregory, Greenville,
Tex.; W. R. Chancellor, El Paso, Tex.; Commercial
Club of Stamford, Stamford, Tex.; First National
Bank, Stamford, Tex.; Yates Drug Co., Stamford,
Tex.; Stamford Oil & Refining Co., Stamford, Tex.;
White Hardware Co., Stamford, Tex.; A. S. Moore &
Co., Greenville, Tex.; Commercial National Bank,
Greenville, Tex.
Original telegrams are attached, marked "Exhibit
VI."

HOUSTON, TEX.

46458°—S. Doc. 485, 63-2




11

161

HOUSTON, TEX.
H o n . WILLIAM

G.

I.

MCADOO,

Secretary of the Treasury.
Hon. D. F.

LIST OF

HOUSTON,

Secretary of Agriculture.
H o n . JOHN

SKELTON

WILLIAMS,

Comptroller of the Currency.
February 9, 10, 1914In presenting the claims of
Houston as a location for a headquarters bank, under
the Federal reserve act, and fixing the boundary lines
of a regional district to be served by such a bank, the
local committee, acting jointly for the Houston Chamber of Commerce and the Houston Clearing House
Association, has been guided solely by its conception
of the kind of information desired by you as disclosed
by your announcement in Washington of the primary
factors for solving your problem.
The contents of this document are arranged under
the three topics, with appropriate subheadings, about
which concrete statistical data have been compiled
and particularly exhibited by means of several maps.
Further, undertaking to be informed by and to take
advantage of previous hearings by your honorable
committee, we have refrained from the publication of
memorials, resolutions, and arguments, and purpose
hereby to introduce only verifiable data, which we are
desirous of elaborating to any degree and extent
requested by you.
Respectfully submitted.
O S C A R W E L L S , Chairman.
AUSTIN, TEX.,

HONORABLE

SIRS:

LYNN

P.

N. E.

MEADOR,

TALLEY,

E. A.

PEDEN,

W . C.

HOGG,

Committee.

OUTLINE.

I. Geographical convenience, involving transportation facilities
and easy and rapid communication with all parts of a proposed
district.
I I . Industrial and commercial development and needs, involving
the general movement of commodities and business transactions
within a proposed district and the transfer of funds and exchanges of
credit that result.
I I I . Established customs and trend of business as now developed
by the existing system of bank reserves and checking accounts.




RAILWAYS.

Houston & Texas Central Railroad.
Galveston, Harrisburg & San Antonio Railway.
Texas & New Orleans Railroad.
Beaumont, Sour Lake & Western Railway.
Houston East & West Texas Railway.
International & Great Northern Railway.
International & Great Northern Railway (Fort
Worth division).
Trinity & Brazos Valley Railway.
San Antonio & Aransas Pass Railway.
Galveston, Harrisburg & San Antonio Railway
(Victoria division).
Gulf, Colorado & Santa Fe Railway.
Missouri, Kansas & Texas Railway.
International & Great Northern Railway (Columbia
division).
St. Louis, Brownsville & Mexico Railway.
Galveston, Houston & Henderson Railway.
Galveston-Houston Electric Railway.
Total mileage of above roads
Out of total mileage in Texas
Mail trains daily in and out of Houston
Passenger trains daily in and out of Houston
WATER TRANSPORTATION

7, 764.26
15,283.59
79
106

FACILITIES.

Houston Ship Channel, utilizing Buffalo Bayou from
the Gulf of Mexico to Houston Turning Basin, is in
process of completion under contract specifying an
average depth of 25 feet and an average width of 100
feet at the base. This work is being done by the
United States Government and the Houston navigation district.
Houston, as a shipping point, is 500 miles nearer the
granaries of the West than the Atlantic and Pacific
ports and 300 miles nearer than New Orleans.
The Intercoastal Canal is completed from Galveston
Bay to Corpus Christi.
In the proposed district tributary to Houston are the
following ports: Aransas Pass, Corpus Christi, Freeport, Galveston, Texas City, Point Bolivar, Port Arthur, Beaumont, Orange, and Morgan City.
TELEGRAPH

AND

TELEPHONE.

The Western Union, Postal, and Mackay telegraph
systems and the Bell and Independent telephone sys163







166

LOCATION" OF RESERVE DISTRICTS.

tems, with expeditious long-distance service, connect
Houston with every banking point in the entire district.
M I S C E L L A N E O U S DATA C O N C E R N I N G

DISTRICT.

Square miles, 475,934; population, 6,674,183; railroad mileage, 22,403; assessed valuation of wealth,
$3,510,000,000.
PRODUCTION.

Cotton— Bales, 7,123,000; value, $410,682,000;gross
bales handled through Houston, 3,324,000; net bales
handled through Houston, 1,301,750.
The Houston Cotton Exchange, with 47 member
firms, is devoted to the marketing of the cotton crop
of this district.
Houston factors handled 223,679 bales in 1912-13.
This business is peculiar to Houston and Galveston and
represents cotton consigned upon advances from all
parts of the district, as shown on map, later sold in the
local market upon a commission basis.
There are no available statistics showing the number
of bales exported, but it is conservatively estimated
that 85 per cent of the net volume handled by Houston
cotton firms is exported, valued at $66,389,220, against
which foreign exchange is drawn and sold from Houston through local and eastern brokers.
Cottonseed products.—Crushed for manufacturing
purposes, 1,933,623 tons; value, $46,406,952; used
for feeding, fertilizing, and planting, 1,627,277 tons;
value, $43,939,179; value of manufactured products,
$62,942,313; exported, $17,982,694; consumed in territory reaching Arizona on the west, Kansas on the
north, Porto Rico on the south, and the Atlantic seaboard on the east, $44,959,619.
The six Houston oil mills purchase and crush 7 per
cent of the seed of this district used for manufacturing
purposes and turn out a greater volume of manufactured
products than any point in the South, the value of
which is $15,500,000, including the oil refined.
Certain farm products.—Corn, wheat, oats, hay, and
other feed crops were produced in 1912, valued at
$188,743,000.
Live stock.—The cattle, horses, mules, swine, sheep,
and goats in this district are valued at $477,938,000.
Lumber.—Estimated stumpage, 150,000,000,000 feet;
value, $750,000,000; output 1913, 6,313,000,000 feet;
value, $88,382,000.
A great part of this is handled by 48 lumber companies in Houston, employing a total capitalization of
$21,835,000.
Petroleum.—It is estimated that 13 oil fields located
in Texas produced, in 1913, 15,500,000 barrels of crude
petroleum, valued at $15,800,000, and 8 oil fields in
Louisiana produced, in 1913, 14,000,000 barrels of
crude petroleum, valued at $14,000,000; total production for district, 29,500,000 barrels (or 81,000 barrels
daily) valued at $29,800,000.




During 1913 it is estimated that the Gulf ports
received from Mexico 8,500,000 barrels of crude petroleum, valued at $6,500,000.
This proposed district contains 14 oil refineries,
representing an investment of $13,000,000, exclusive
of pipe fines and stocks of oil, and manufacturing refined products of a gross value of $84,000,000, at least
40 per cent of which is exported via Port Arthur.
In Houston there are 28 incorporated oil companies,
capitalized at $88,526,000, producing -and marketing
the greater part of this output.
Bice.—In 1913, 772,800 acres of rice land in this
district produced 6,149,000 bags, valued at $23,000,000.
This is 90 per cent of the crop of the United States, of
which 3.8 per cent goes to foreign markets, 21 per cent
to Porto Rico, and 75.2 per cent is consumed at home.
Sugar.—In 1913, 359,350 acres were devoted to
sugar raising in this district, producing sugars valued
at $15,000,000.
Truck.—It is estimated that in 1913, farms in this
district produced truck and potatoes, for marketing
purposes, valued at $25,000,000.
EXPORTS AND

IMPORTS.

The Federal reserve act seemingly contemplates the
expansion of foreign exchange dealings by providing a
wider market for such transactions and permits the
purchase of foreign bills of exchange and bank acceptances, involving exports and imports; therefore,
the location of a Federal reserve bank at Houston
would fulfill this banking function of the district
favorably, because there are so many ports adjacent.
The volume of exports and imports are as follows:
Galveston, including Texas City and Point Bolivar,
$289,278,496; Port Arthur, $27,538,586.
Work is being done now by the Government in the
development of new ports along the Gulf coast, as
Aransas Pass, Corpus Christi, Freeport, Beaumont,
and Orange.
The Houston Ship Channel will give Houston easy
access to the intercoastal canal and adjacent ports for
the development of coastwise trade.
As an evidence of the service of the ship channel, the
value of traffic on that waterway, during 1913, totaled
$35,930,800.
M I S C E L L A N E O U S DATA C O N C E R N I N G

HOUSTON.

Population of Houston.—Census of 1890, 27,557;
census of 1900, 44,633; census of 1910, 78,800.
By charter amendment last year certain suburbs
were included within the present city limits.
The city directory estimates the population for 1913
at 129,570, based on actual count of names (and number in each family) published in the city directory.
As of January 13, 1914, Houston's banking capital
was $13,716,000; banking resources, $62,711,000.

HOUSTON,

As of June 4, 1913, the national banks of Houston
compared to those of other cities in Texas:
Loans and
discounts.

Houston
Dallas
Fort Worth
San Antonio

Lawful
money
reserve.

Individual
deposits.

$26,558,128
20,810,446
14,750,672
10,236,131

City.

$2,249,381
2,274,892
1,286,698
1,267,292

$23,961,558
20,605,291
12,027,117
10,343,009

Houston's wholesale and jobbing trade in 1913
Houston's retail trade in 1913
Houston's manufactured products in 1912
Houston's postal receipts in 1910
Houston's postal receipts in 1913
Houston's assessed valuation of property in 1913

$113, 376, 000
56, 856, 000
51, 350, 000
400, 800
552, 011
110, 000, 000

HOUSTON FREIGHT RATES.

Houston freight rates compared with competitive cities, snowing why
Houston is the logical and actual wholesale and manufacturing
center in the Southwest.
[Classes 1, 2, 3, and 4 are less than car lots; 5, A, B, C, D, and E are car lots.]
ClassesD
New York to Houston
New York to Dallas and
Fort Worth
New York to Waco
New York to Austin
New York to San Antonio..
Seaboard territory to Houston
Seaboard territory to Dallas, Fort Worth, Waco,
and San Antonio
172
Seaboard territory to Austin
Pittsburgh to Houston
Pittsburgh to Dallas, Fort
Worth, Waco, Austin,
and San Antonio
Buffalo to Houston
Buffalo to Dallas, Fort
Worth, Waco, Austin,
and San Antonio

60

40

120
116
111
119

120

52
109

84

49
80

170

32
4§
48
48

70
145

E

49

136

III.
Number
of banks
in district.

State.

Capital.

Surplus.

Deposits.

NATIONAL BANKS.

519 $50,499,000 $25,873,929 $252,574,323
21,394,000
137 6,691,710
19,917,000
25 5,651,700
16,309,250
40 2,215,000
996,900
17,836,130
25 5,146,365

Texas
Oklahoma
Arkansas
New Mexico
Louisiana
Total

746

70,203,775

26,870,829

328,030,703

857 33,383,500
220 4,107,250
177 18,913, 400
160 9,131,000
49 1,582,130

10,425,000

451,482

CONSOLIDATED

REGIONAL

67,117,280

BANK—^PROPOSED

NATIONAL
13,

BANKS

OF

1914.

COMBINED ASSETS.

Loans and discounts
$24,182, 021. 89
Overdrafts
439,684.49
United States bonds to secure circulation
4, 700, 000. 00
Premium on United States bonds
7, 513.48
Bonds, securities, etc
1,131, 532. 33
United States bonds to secure United States deposits
160,000.00
Other bonds to secure postal savings deposits
75, 000.00
Banking houses, furniture and
fixtures
2, 524,100.12
Other real estate
604, 225. 00
Due from banks not reserve agents
5,228, 390.46
Due from approved reserve agents
5,191, 796. 37
Due from United States Treasury 5 per cent
221,150.00
Due from United States Treasurer.
44, 850. 00
National-bank notes, etc
4, 868, 848. 27
Bills of exchange
1, 743,197. 95
Total

51,122, 310. 36
COMBINED LIABILITIES.

Capital stock
5, 300, 000. 00
Surplus
1, 825,000. 00
Undivided profits
730,119. 34
Circulation
4, 681, 600. 00
Due to banks
11,113, 617. 25
Individual deposits
21, 252, 959. 67
Certificates of deposit
2, 886, 767. 93
Certified checks
31,816. 52
Cashiers' checks
1,101, 383. 95
United Stlates deposits
119, 926. 45
United States deposits, postal savings department..
45, 536.46
United States deposits, United States disbursing
officers
28, 034. 09
Dividends unpaid
3, 725. 66
Reserved for taxes
41, 396. 25
Bonds borrowed
365, 000. 00
Other liabilities
36, 288. 88
Bills payable
1, 200, 000. 00
Bills rediscounted
359,137. 91
Total

51,122, 310. 36

COMBINED FIGURES FROM NATIONAL BANKS OF HOUSTON, 1913.
Average daily—

DISTRICT.

From national banks alone:
Capital
$5,824,476
Deposits, based on required percentage from member banks
17,562,803
From national banks alone, including entire State of
Louisiana:
Capital
- .. 6,331,776




SIX

175,046,062

1,463

Total

STATEMENT

HOUSTON, JANUARY

100,234,000
14,861,000
27,966,800
26,368,000
5,616,262

10,876,482

From national banks alone, including entire State of
Louisiana—Continued.
Deposits, based on required percentage from member banks
$19,436,377
From national banks and 20 per cent of State banks :
Capital
6, 760, 401
Deposits, based on required percentage from member banks
.
19,313,267

STATE BANKS.

Texas
Oklahoma
Louisiana
Arkansas
New Mexico

167

TEXAS.

Total
Bank
Individual
deposits. deposits. deposits.

Percentage Average
bank
daily
loans
Loans to to total loans on
cotton.
banks. loans.

$17,337,595 $23;704,724 $41,042,319 $2,346,755
15,814,646 23,341,363 39,156,009 3,063,768
15,160,661 24,440,947 39,601,608 3.838.432
14,056,835 24,118,312 38,175,147 4,885,906
12,891,875 25,240,164 38,132,039 5,445,043
10,238,589 23,896,595 34,135,184 6,185,510
9,168,505 23,008,020 32,176,525 7.635.433
9,202,802 23,018,136 32,220,938 7,679,473
13,583,965 22,922,085 36,506,050 6,808,096
14,312,630 23,208,492 37,521,122 5,719,572
13,010,774 23,528,555 36,539,329 5,265,606
12,441,959 24,451,123 36,893,082 5,391,034

8 $5,977,876
12 5,111,835
15 4,095,384
19 3,450,206
20 2,883,288
25 1,894,536
30 937,052
32 787,993
27 2,681,298
21 4,472,450
20 4,509,072
21 3,617,356

Daily average for year 13,101,737 23,739,876 36,841,613 5,355,376

20 3,368,195

January
February
March
April
May
June
July
August
September
October
November
December




HOUSTON,
COMBINED FIGURES FROM NATIONAL BANKS OF HOUSTON,
1913—Continued.
Currency sshipments.
Average
daily total
loans.
Inbound.

January
February
March
April
May
June
July
August
September
October
November
December
Daily average and
total for year

$28,368,297
25,946,616
26,401,350
26,213,080
26,707,622
24,719,852
25,066,658
24,987,197
25,901,536
27,627,294
26,909,108
25,886,551

$253,716
380,565
634,292
634,292
570,862
507,433
507,433
3,171,458
2,790,883
1,585,729
761,130
888,042

Outbound.

$490,030
697,925
1,001,085
1,079,210
919,555
807,360
840,875
4,841,465
4,551,355
2,559,525
1,265,255
995,689

Total remittances
for correspondents
to central
reserve
cities.

Total
transit
items.

$7,074,050 $56,395,219
6,341,650 49,654,329
7,490,814 49,333,319
7,253,063 56,495,222
8,257,850 56,595,220
6,504,550 42,471,516
7,008,600 42,782,427
7,596,445 56,295,224
9,490,250 70,619,026
13,535,450 84,742,831
12,288,202 77,680,928
8,120,925 63,125,001

26,227,929 12,685,835 20,049,329 100,961,849 706,190,262




169

TEXAS.
JANUARY 30,

1914.

Chairman Houston Committee Regional Bank Matter,
Houston, Tex.:
This is to certify that the total clearings as reported
to the clearing house by the members composing the
association for the year 1913 were as follows:
January
February
March
April
May
June
July

$37,890,336
39,735,897
49, 527,018
35, 863, 674
39,137, 386
30,127,485
32,582,477

August
September
October
November
December
Total

$36,239,707
48,935, 743
49, 864, 334
45,115, 291
41, 862, 958
486,882,306

These figures were reported in accordance with the
methods adopted by the American Bankers' Association.
Yours, very truly,
H. B. F I N C H , Manager.




KANSAS CITY, MO.

KANSAS CITY, MO.
TESTIMONY INTRODUCED BY BANKS AND TRUST COMPANIES OF GREATER KANSAS CITY.
K A N S A S C I T Y , M O . , January 23, 1914The Reserve Bank Organization Committee:
G E N T L E M E N : We believe it is the purpose of j o u r
honorable body, as well as the intent of the Federal
reserve act, that the Federal reserve banks, provided
for under said act, shall be established at points where
they will best serve the contiguous territory.
Kansas City with her splendid railroad facilities and
excellent mail service, has become the natural market,
financial and distributing center of the richest and
most rapidly developing agricultural and mineral
district of America.
A large number of the national banks, State banks,
and trust companies throughout this great territory
have signified their intention of becoming members of a
Federal reserve bank at the earliest possible date, and
have expressed their desire to help in every way to
make the plan a success. On behalf of these institutions, and the banks and trust companies of Greater
Kansas City (Kansas City, Mo., and Kansas City,
Kans.), we respectfully submit, for your earnest consideration, the application of this city for the location
of one of the Federal reserve banks. We believe a
Federal reserve bank located here could serve more
advantageously than if located in any other city; the
district including the States of Kansas, Nebraska,
New Mexico and Oklahoma, the western part of the
State of Missouri, a small part of the States of Arkansas
and Iowa, the northern part of the State of Texas, and
that part of the State of Colorado east of the Rockies.
We are submitting herewith data which proves
Kansas City's supremacy in this territory, and which
we hope will enable your honorable body to place its
stamp of approval upon this application.
The Federal reserve bank of Kansas City, with the district as above outlined, would be a commanding institution,with ample capital and deposits to protect and properly care for the legitimate business needs of this district.
If any further information is desired, we will be glad
to furnish it at your command.
Wishing your honorable committee success in the
important work of organizing this great system of
Federal reserve banks, and assuring you of our most
hearty support at all times, we are,
Sincerely yours,




THE

ASSOCIATED

BANKS

OF GREATER KANSAS CITY.

G R E A T E R KANSAS C I T Y ' S N A T U R A L B A N K I N G T E R R I T O R Y .

Greater Kansas City's natural banking territor}^
includes the States of Kansas, Nebraska, New Mexico,
and Oklahoma; that part of Colorado east of the
Rockies including the following counties: Adams,
Arapahoe, Baca, Bent, Boulder, Cheyenne, Clear
Creek, Crowley, Custer, Douglas, Elbert, El Paso,
Fremont, Gilpin, Huerfano, Jefferson, Kiowa, Kit
Carson, Larimer, Las Animas, Lincoln, Logan, Morgan,
Otero, Park, Phillips, Prowers, Pueblo, Sedgwick,
Teller, Washington, Weld, and Yuma; that part of
western Arkansas including the counties of Benton,
Boone, Carroll, Crawford, Franklin, Howard, Little
River, Madison, Miller, Scott, Sebastian, Sevier, Polk,
and Washington; that part of Iowa including the
counties of Adair, Adams, Audubon, Cass, Clarke,
Decatur, Fremont, Guthrie, Harrison, Mills, Montgomery, Page, Pottawatomie, Ringgold, Shelby, Taylor
and Union; that part of Missouri including the counties
of Andrew, Atchison, Barry, Barton, Bates, Buchanan,
Caldwell, Carroll, Cass, Cedar, Chariton, Christian,
Clay, Clinton, Dade, Daviess, DeKalb, Gentry, Greene,
Grundy, Harrison, Henry, Holt, Howard, Jackson,
Jasper, Johnson, Lafayette, Lawrence, Linn, Livingston, McDonald, Mercer, Newton, Nodaway, Platte,
Putnam, Ray, St. Clair, Saline, Stone, Sullivan, Taney,
Vernon, and Worth; and that part of the State of
Texas including Andrews, Archer, Armstrong, Bailey,
Baylor, Borden, Bowie, Briscoe, Callahan, Carson,
Cass, Castro, Childress, Clay, Cochran, Collin, Collingsworth, Cooke, Cottle, Crane, Crosby, Culbertson ?
Dallam, Dallas, Dawson, Deaf Smith, Delta, Denton,
Dickens, Donley, Eastland, Ector, Ellis, El Paso,
Erath, Fannin, Fisher, Floyd, Foard, Franklin, Gaines,
Garza, Gray, Grayson, Hale, Hall, Hansford, Hardeman, Hartley, Haskell, Hemphill, Hockley, Hood, Hopkins, Howard, Hunt, Hutchinson, Jack, Johnson, Jones,
Kaufman, Kent, King, Knox, Lamar,Lamb,Lipscomb,
Loving, Lubbock, Lynn, Martin, Midland, Mitchell,
Montague, Moore, Morris, Motley, Nolan, Ochiltree,
Oldham, Palo Pinto, Parker, Parmer, Potter, Rains,
Randall, Red River, Reeves, Roberts, Rockwell,
Scurry, Shackelford, Sherman, Somervell, Stephens,
Stonewall, Swisher, Tarrant, Taylor, Terry, Throckmorton, Titus, Van Zandt, Ward, Wichita, Wilbarger,
Wheeler, Winkler, Wise, Wood, Yakumo, and Young.
173

174

LOCATION" OF RESERVE DISTRICTS.

The Reserve Bank Organization Committee.
G E N T L E M E N : When this data and map outlining our
territory were prepared we had in mind that the city
of Omaha, Nebr., would be in the district with Greater
Kansas City, and for that reason, and as a secondary
proposition, the northern part of the State of Nebraska
and the 17 counties in the southwestern part of Iowa
were included with Greater Kansas City; but in event
Omaha is for some reason placed in another district,
then Greater Kansas City would have no claim to the
17 counties in southwestern Iowa and would be entitled to practically only that part of the State of Nebraska which lies south of the Platte River (indicated
by a red line on the map) and which includes the following counties: Adams, Buffalo, Butler, Cass, Chase,
Clay, Dundy, Dawson, Fillmore, Franklin, Frontier,
Furnas, Gage, Gasper, Harlan, Hayes, Hamilton,
Hitchcock, Jefferson, Johnson, Kearney, Hall, Lancaster, Lincoln, Nemaha, Nuckalls, Otoe, Perkins,
Phelps, Polk, Pawnee, Richardson, Red Willow, Salina, Seward, Thayer, Saunders, Webster, and York.
With Omaha included in a district other than with
Greater Kansas City our figures heading " Pertinent
facts" would be changed to show the Federal bank of
Kansas City, if only national banks become members,
an institution with a capital of $8,126,643 and possible
deposits of, exclusive of Government funds, $33,667,801, and should the eligible State banks also join the
plan we would have a bank with a capital of $12,487,763
and with possible deposits, exclusive of Government
funds, of $46,586,217. Other figures are to be revised
accordingly.
Respectfully,
ASSOCIATED

BANKS

AND

Number.
CITY.

National banks
Eligible State banks and trust
companies

THRALLS.

KANSAS CITY, MO.,

Brief summary of banks of our natural banking territory.

TRUST

COMPANIES OF GREATER KANSAS
B y JEROME

ber are 17.9 per cent of all the national banks in the
United States.
There are 3,858 State banks and trust companies in
this territory, and of these institutions 997 have capital
equal to or greater than that required of national
banks in their respective communities and are in position to immediately become members of a Federal
reserve bank.
The total number of banks and trust companies in
this territory, 5,202, is more than 20 per cent of
all the banks and trust companies in the United
States.
These institutions have a combined capital and surplus of $293,448,264, with deposits of $1,185,817,623.
The 1,344 national banks have capital, $97,172,500;
surplus, $58,448,704, and deposits, $641,584,459.
The 997 State banks and trust companies, now eligible for admission to membership, have capital,
$51,833,675; surplus, $22,267,510; and deposits,
$249,661,856.
Should only the national banks become members,
they would furnish to the Federal reserve bank, on a
6 per cent subscription basis, a capital of $9,337,272,
and should the 997 eligible State banks and trust
companies become members, they would furnish additional capital, $4,446,071, making the total maximum
capital available $13,783,343. The possible deposits
of the Federal reserve bank so established, exclusive
of such funds as the Government might place with it,
are $53,474,778.

Number
from national
banks.

From banks of—

Number
from State
banks and
trust companies.

Surplus.

1,344 $97,172,500 $58,448,704

Deposits.
$641,584,459

997 51,833,675

Total

249,661,856

80,716,214

891,246,315

2,861 42,319,205

Other State banks and trust corn-

22,267,510

2,341 149,006,175

January 23, 1914.

Bank accounts carried with banks and trust companies of greater
Kansas City.

Capital.

21,406,670

294,571,308

5,202 191,325,380 102,122,884 1,185,817,623

Statement of important items of banks and trust companies in our
natural banking territory.
KANSAS.

17
54
4
583
167
78
35
483
137

Arkansas (14 counties).
Colorado (33 counties)..
Iowa (17 counties)
Kansas
Missouri (45 counties)..
Nebraska
New Mexico
Oklahoma
Texas (112 counties)

25
35
2

1,479
606
51
21

591
106

Number.
National banks
Eligible State banks and trust
companies
Other State banks and trust com-

Capital.

Surplus.

213 $12,312,500 $6,151,068

$70,176,775

1,558

2,916

From national banks
From State banks and trust companies

4,474
604

3,777,300

40,341,000

752 11,315,300

3,940,626

77,829,478

13,868,994

188,347,253

1,558
2,916

Total
Miscellaneous bank accounts not in above States.

7,680,000

1,146 31,307,800

Total.

181

Deposits.

Grand total.

5,078
PERTINENT

FACTS.

Our territory (as shown by map) has located within
its boundaries 1,344 national banks, which in num-




NEBRASKA.
National banks
Eligible State banks and trust
companies
Other State banks and trust com-

241 $16,270,000

$8,353,080 $94,583,918

228

8,756,500

2,992,700

43,950,000

511

7,256,500

5,693,220

82,140,082

980 32,283,000

17,039,000 220,674,000

!

' S O U T H

|«'*««i

* mmm•

M

»-•«««««••••»*

%
%
%
I
9

«
I

i I

! K NA CT
ASS 1O

#DENVER

A P
W
•

%

.

at m tm m m m m «#—• - -

TR T E
B MOY

B a c h s p o t o n t h i s m a p itpresoite
a b a n k account e a r n e d witn a D a n k e r
trust c o m p a n y of Greater K a n s a a p t j r
Number of
banking towns
in each state

A A I L jT
M RU Ot

o

I
I
I
1
I

•
• <

*

* .

SRKAINISA

•••••.!'«

s

•j

I
I

a
i
i
i

Kansas

TT.mWTH^ ^omx-AS

..J

r

/
*

•s

I

1
I
TUTTLE & PIKE
,
DeIint*tor«.




/

A

TSl
UI
o
d
S

7VT.„.„.K.„Z06Z

Nebraska
New Mexico
56,.*.™,—:.. 56>
Oklahoma
P A R T S Of S T A T E S
.14 counties of
Arkansas..
33 counties of
Colorado
113 . . , . . 8 0
17 counties of
Iowa
14 3
........»6
45 counties of
Missouri
380. >
<12 counties of
Texas
...423..,
243

S
*

1

«
•

yy

Numbo* of
Accounts carried
in Grwtcrft.C<.

£
ui

*
)

Total 2961
Miscellaneous bank accounts
not from this territoiy.
Grand total 2 9 6 1

4474
604
5078

Cn

176

LOCATION" OF RESERVE DISTRICTS.

(Thirty-nine counties south of and adjacent to
Platte River would, come to Kansas City should
Omaha be included in some other district.)

Statement of important items of banks and trust companies in the
natural banking territory—Continued.
GRAND SUMMARY.

Statement of important items of banks and trust companies in our
natural banking territory—Continued.
Number.
National banks
Eligible State banks and trust
companies
Other State banks and trust companies

Capital.

Surplus.

Deposits.

100 $5,641,000 $3,402,440 $35,178,990
115

3,938,500

1,381,840

31,115,350

306

4,465,200

1,476,650

30,386,630

521 14,044,700

6,260,930

96,680,970

Number.

Deposits.

40,039,994

555,843,253

133 6,162,110 3,158,000
215 14,342,900 12,042,970
249 7,728,500 3,457,500
703 33,345,150 21,533,660
685 38,631,920 21,890,760

23,010,000
129,775,670
50,787,034
256,762,836
169,638,830

3,217
Arkansas
Colorado
Iowa
Missouri
Texas

91,114,800

5,202 191,325,380 102,122,884 1,185,817,623

40 $2,215,000

$996,900 $14,383,713

22

1,137,000

245,000

559,000

394,100
1,636,000

23,118,000

641,584,459
249,661,856
294,571,308

4,939,287

3,911,000

1,344 97,172,500 58,448,704
997 51,833,675 22,267,510
2,861 42,319,205 21,406,670

National banks
Eligible State banks
Other State banks

3,795,000

28
90

OKLAHOMA.
National banks
Eligible State banks and trust
companies
Other State banks and trust companies

Surplus.

1,146 $31,307,800 $13,868,994 $188,347,253
980 32,283,000 17,039,000 220,674,000
23.118,000
90 3,911,000 1,636,000
1,001 23,613,000 7,496,000 m , 704,000

Kansas
Nebraska
New Mexico
Oklahoma

NEW MEXICO.
National banks
Eligible State banks and trust
companies
Other State banks and trust companies

Capital.

326 $14,385,000 $3,936,006 $72,162,843
68

2,267,000

437,000

9,143,000

607

6,961,000

3,122,994

42,398,157

1,001 23,613,000

7,496,000

5,202 191,325,380 102,122,884 1,185,817,623

STATEMENT

OF

BANKS

OF

GREATER

KANSAS

CITY.

Following are the principal items of the combined
statements of the clearing-house banks of greater
Kansas City as shown at the close of business, October
21, 1913, and January 5, 1914:

123,704,000
Oct. 21,1913. Jan. 5,1914.

ARKANSAS (WEST 14 COUNTIES).
National banks
Eligible State banks and trust
companies
Other State banks and trust companies

23 $2,195,000 $1,729,000 $12,404,000
43

3,080,375

1,146,100

7,560,000

67

886,735

282,900

3,046,000

133

6,162,110

3,158,000

23,010,000

1

COLORADO (EAST 33 COUNTIES).
National banks
Eligible State banks and trust
companies
Other State banks and trust companies

86 $8,920,000 $9,496,010 $93,690,920
37

3,386,800

1,814,300

25,021,800

92

2,036,100

732,660

11,062,950

215

14,342,900

12,042,970

$17,585,700
3,909,962
137,425,486

Capital and fixed surplus
Undivided profits
Deposits
Deposits, country banks
Deposits, reserve city banks.
Reserve, gross
Loans to country banks
Loans and discounts
Resources

1

52,8 1,376

97,444,151
163,959,521
2

38.4 per cent.

$17,621,400
3,973,986
133,819,404
51,336,806
17,372,043
2 50,247,523
26,999,478
95,493,931
160,951,772

37.5 per cenL

Increase in capital in 7 years
Increase in deposits in 7 years

per cent..
do

295
56

129,775,670

The same items of the combined statements of all
banks of greater Kansas City (49 in number) are:
Oct. 21,1913. Jan. 5,1914.

IOWA (SOUTHWEST 17 COUNTIES).
National banks
Eligible State banks and trust
companies
Other State banks and trust companies

59 $3,030,000 $1,566,500 $21,049,500
89

3,469,000

1,419,000

101

1,229,500

472,000

8,217,248

249

7,728,500

3,457,500

50,787,034

21,520,286

MISSOURI (WEST 45 COUNTIES).
National banks
Eligible State banks and trust
companies
Other State banks and trust companies

177

12,436,500

7,639,000

67,782,200

7,323,650

5,022,600

48,760,636

21,533,660 256,762,836

TEXAS (NORTH 112 COUNTIES).




268 $24,260,000 $17,348,080 $122,912,790
152

9,620,500

2,797,110

265

4,751,420

1,745,570

16,177,470

685 38,631,920 21,890,760

169,638,830

30,548,570

1

2

38.1 per cent.

$19,149,450
4,086,433
141,032,708
2 52,296,554
101,864,399
169,855,387

37.08 per cent.

C L E A R I N G S S I N C E 1875 I N 5 - Y E A R
PERIODS.

88 $13,585,000 $8,872,060 $140,220,000

703 33,345,150

National banks
Eligible State banks and trust
companies
Other State banks and trust companies

1

K A N S A S CITY*S B A N K

438

$19,088,150
4,082,307
143,259,254
54,680,587
103,482,173
172,060,153

Capital and fixed surplus.
Undivided profits
Deposits
Gross reserve
Loans and discounts
Resources

Clearings for two days at the present time frequently exceed the clearings for the entire year of
1875.
1875
1880
1885
1890
1895

$20,407,967
50,730,000
223,389,419
492,207,771
520,870,447

1900
1905
1910
1913

$775,264,813
1,197,905,558
2,634,557,738
2,850,362,611

Kansas City divided honors with Pittsburgh, ranking
sixth part of the year and seventh the remainder.

177

KANSAS CITY, MISSOURI.

Our clearings represent only the sum total of items
brought to the clearing house for exchanges, and our
settlements are made in cash.
Cincinnati's clearings 1913 were
Cleveland's clearings 1913 were
Denver
Detroit
Los Angeles
Louisville
Minneapolis
New Orleans
Omaha
San Francisco
St. Louis
St. Paul

$1, 317,000,000
1, 276, 000,000
\ .
476,000,000
1, 331,000,000
1, 210,000,000
716,000,000
1,312,000,000
981,000,000
909,000,000
2, 624,000,000
4,137,000,000
531,000,000

street car system, the same freight and passenger terminals, had, according to the directory of 1913 (Gate
City Directory Co.) a population of 512,741.
We have within a radius o£ 125 miles (5 hours' ride)
a population of 2,344,369, and within a radius of 250
miles (10 hours' ride) a population of 8,271,050.
We have within our local jobbing and manufacturing
territory, which is practically the same as our natural
banking territory, a population of 12,770,601.
The last census showed the growth of this territory
in 10 years, 25.13 per cent.
Greater Kansas City's growth during same period
was 51 per cent.
RAILROADS.

SOME COMPARATIVE INCREASES.

Pejr cent.

Since
Since
Since
Since
Since
Since
Since
Since

1906 Kansas City showed increase
1906 St. Louis showed increase
1906 Chicago showed increase
1906 Minneapolis showed increase
1906 Pittsburgh showed increase
1906 San Francisco showed increase
1906 Boston showed loss
1906 New York showed loss

113
30
50
36
11
36
1
9

Kansas City's clearings increased during 10 years,
1903 to 1913, 165 per cent.
TOTAL

BANK

TRANSACTIONS

OF

CLEARING-HOUSE

BANKS OF KANSAS CITY.

A certified statement is filed with our clearing house
each Thursday by every clearing-house bank showing
the exact amount of the debits to the several accounts
for the week ending Thursday.
The grand aggregate of these figures for the year
1913—in other words, the total amount of business
transacted by the clearing-house banks of Kansas City
during the year 1913—is $5,424,001,992.
Average number of items handled daily, 265,509.
Our country collection department puts the banks of
Kansas City in direct touch with 3,300 country banks,
thereby averting circuitous routing and rendering
prompt service.
Amount of items handled through, country clearing
house for the fiscal year, $107,522,900.
Greater Kansas City ranks first in proximity to the
nation's meat supply. In number of miles of parked
boulevards. In sale of agricultural implements. In
sale of yellow pine lumber. In tributary trade territory. In agricultural territory. In Pullman business.
As a mule market. As a hay market.
Ranks second in grain receipts (primary). In meat
packing. In live stock. In railroads.
Ranks third in poultry and egg business. In telegraphic business. In lumber business. In flour output.
Sixth and seventh in bank clearings; seventh in
postal receipts, and tenth in factory output.
This city, considered as one industrial and commercial unit with the same telephone systems, the same
46458°—S. Doc. 485, 63-2




12

We have 16 trunk lines: Atchison, Topeka & Santa
Fe; Chicago, Burlington & Quincy; Chicago & Alton;
Chicago Great Western; Chicago, Milwaukee & St.
Paul; Chicago, Rock Island & Pacific; Kansas City
Southern; Kansas City, Mexico & Orient; Missouri
Pacific; Missouri, Kansas & Texas; Missouri, Oklahoma & Gulf; Quincy, Omaha & Kansas City; St. Louis
& San Francisco; St. Joseph & Grand Island; Union
Pacific; Wabash.
In addition to these trunk lines we have 32 separate
subordinate lines which provide unsurpassed distributing facilities.
These railroads bring in and send out of Kansas City
daily 260 passenger trains.
They handle an average of 2,000 cars of freight in
and out of Kansas City daily.
Our freight terminals, which are being enlarged and
reconstructed, furnish the most complete and efficient
plan in the world for freight handling.
Our new Union Station and passenger terminals, now
under construction, are the largest west of New York.
More pieces of baggage are handled at the Kansas
City Union Depot each year than at any other station
in the world.
MAIL SERVICE FROM KANSAS CITY.

Number of dispatches daily.
North
East
South
West
Northeast
Northwest
Southeast
Southwest
Total

21
18
15
24
13
6
11
18
126

Montgomery Ward & Co. and Sears, Roebuck & Co.,
two of the largest mail-order houses in the world, selected Kansas City as the proper place in which to
locate the largest mail-order houses west of the Mississippi River. Their reasons for selecting Kansas City
were that this city offers better railroad and mail facilities than does any other city* in the entire west and
southwestern territory.

178

LOCATION" OF RESERVE DISTRICTS.

Kansas City receives grain and seeds from the following States: Kansas, Missouri, Nebraska, Oklahoma, Iowa, Colorado, Minnesota, South Dakota,
Idaho, Utah, Wyoming, Texas.
The amount of grain received and officially inspected in Kansas City for the last 10 years is as
follows:

Dispatches are as follows:
[Time given is time trains leave.]
North.

East.

South.

a. m.
7.35
8.00
8.10
9.00
9. 45
9.50
11.35

a. m.
6.00
8.00
8.15
9.00
9.55

a. m.
2.00
9.00

West.

Northeast.

a. m.
a. m.
1. 45
7.30
8.05
8.00
9.10
8.15
9.30
8. 30
9. 40 (2) 9. 05
10.05
10. 00
10.40
11.20

p. 771. p. m.
p. 771.
1.15
2.00
1.00
4.30 (2) 5.30 (7)
1.10
6.00(2) 9. 35
4.30
6. 35
6.28 (2) 10. 45 (2)
9.00 (2) 11.30
7. 30
9.00
10.00
11.55
9.30
10.40(4)
11.10(2)
10.30
12.00
11.30 (2)

Northwest.
a. m.
2.00
7.25
10.30

p. m.
p. m.
1.00
6.00 (4)
2.35
6.20
4.10
9. 00
4.15
10. 30
6.00 (2)
6.10 (2)
9. 35 (3)
10. 00
10. 05 (2)
10.15
10.25

p. m.
4.00
4.05
7. 30

Southeast.

Southwest.
a. m.
2.20
7. 55
8. 50
9. 30
10. 00
10.40

a. m.
8.30
9.10
11.00

p. m.
1.00
5. 35
6.15 (4)
11. 30 (2)

Year.

1904....
1905....
1906....
1907....
1908....
1909....
1910....
1911....
1912....
1913

p. 771.

12. 05
2. 20
8.25
8. 35
9.15 (2)
9. 35
9. 50
10. 00
11. 00 (2)
11.15

Wheat.

39,159,900
40,038,000
37,423,000
36,617,700
40,131,300
35,354,000
43,527,700
25,701,600
43,719,600
33,870,000

Bushels.

Corn.
Bushels.

Kaffir corn.

14,187,600
21,508,000
15,882,000
16,024,800
8,643,400
11,547,150
17,619,400
16,934,400
19,522,500
21,928,750

C1)
C1)
0)
1,346,428
2,733,500
1,973,000

Rye.

Bushels.

U

Bushels.

Oats.

Bushels.

4,675,200
6,874,500
6,463,500
8,629,500
5,613,000
6,349,500
5,451,500
6,230,500
6,682,700
10,174,500

247,200
323, 000
212, 000
161, 700
218,900
121,000
79,200
84, 700
147,400
458, 700

Barley.
Bushels.

581,000
856,000
503,000
404,800
544,500
421,300
394,200
392,000
186,200
364,000

SUMMARY.

Kansas City is the largest winter-wheat market in
the world.
Kansas City grain exporters export more hard winter
wheat than all other exporters in the United States
combined.
Kansas City is one of the most important markets
for grass and field seeds in the United States.




Year.

Bushels.

Year.

58,850,900
69,599,500
60,483,500
61,838,500
55,151,100

1904
1905
1906
1907
1908

53,804,050
67,072,000
50,689,628
72,991,900
68,768,950

1909
1910
1911
1912
1913

i No record.

KANSAS CITY'S RELATIVE LOCATION TO CENTERS OF PRODUCTION.
GOLD
.CENTER

COPPER WHEAT
CENTER

OAT CATTLE
CENTER CENTER

HOG
CENTER

V MIHHESOTA.
"HEWYORK!

MONTANA

^WISCONSIN/

V^

1

IDAHO i
/
n
VNIVAIX*

WYOMING j
TL"t—t

x

\ m T« i

/U T A H £ COLORADO j
I /
f

UHA

KANSAS „ ^ - A T hISS

y j

.trOAWAx

.nfuiiA

1

^Zi
/

/
TEXAS
*

ARttOMA/*SWHE>

SILVER
CENTER
SHEEP & WOOL'
CENTER

iv—-"TV

1L

I1CAL
CENTER
LEAD & ZINC

AHA
I

1

\ ^ /
|

K WBAHA^O*61A
L W i r'^I^ptewVA

COTTON
CENTER
HORSES MULE
CENTER

CENTER

CENTER FARM

PRODUCTION

Value 1912, $9,532,000,000
Over Nine and One-half Billion Dollars

Bushels.

KANSAS CITY, MISSOURI.

179

This map shows Kansas City's mail service. We have 126 dispatches of mail daily—west, 24; south, 15;
north, 21; east, 18; southwest, 18; southeast, 11; northeast, 13; northwest, 6.

Kansas City has 16 trunk-line railroads and 32 subsidiary, which bring in and take out 260 passenger
trains and 2,000 cars of freight daily.
(The seeming discrepancies in mileage between points in the same states as indicated on this map are due
to round-about connections to reach them.)




180

LOCATION" OF R E S E R V E DISTRICTS.

In addition to the grain received and inspected in
Kansas City it must be borne in mind that the above
figures do not take into consideration or show the
large amount of grain bought by Kansas City grain
merchants which is not stopped at Kansas City or
inspected at Kansas City and, consequently, is not
shown in the above table. I t is conservatively estimated that between 30,000,000 and 35,000,000 bushels
of grain are bought by Kansas City grain merchants
and paid for through Kansas City banks, which grain
moves direct from the point of shipment, either for
export, to the milling trade, to other grain merchants
for distribution, or to the consumer direct.
Adding the grain bought and inspected at Kansas
City to the grain bought and paid for by Kansas City
grain merchants, but not stopped at Kansas City, we
have fully 100,000,000 bushels of grain paid for by
Kansas City grain merchants through Kansas City
banks.
Kansas City has grain elevator capacity for over
14,000,000 bushels of grain, and the latest figures
attainable show the following to be the grain in store
in the grain markets of the United States January 4,
1914:

Is the largest primary alfalfa market.
Is the logical gateway from a railroad and geographical standpoint for the movement of the alfalfa
produced in the seven greatest) alfalfa-growing States,
namely, Colorado, Idaho, Kansas, Nebraska, Montana.
Oklahoma, and. Wyoming.
Has facilities for properly inspecting and handling
700 cars of hay and alfalfa per day.
Hay receipts for four years.
Year.

Cars.
30,373
33,770
36,180
32,353

1910
1911
1912
1913

HORSES A N D

Tons.
364,476
472,780
506,520
452,942

Value.
$2,551,332
3,309,460
3,545,640
3,170,594

MULES.

Greater Kansas City ranks first as a mule market.
Total number of horses and mules received during
year 1913, 82,110; 1912, 73,445; conservative value of
those marketed in 1913, $13,750,000. Received from
the following States:
State.

1913

1912

State.

1913

Bushels.

Chicago
Minneapolis
Duluth
Kansas City
Omaha
St. Louis

24,829,000
22,386,000
12,595,000
9,903,000
4,239,000
3,866,000

L Kansas City is the largest export point for winter
hard wheat in the United States, and more than 80
per cent of the grain exported from the Gulf ports of
the United States is handled and financed by Kansas
City grain exporters. In addition to this, large quantities of Kansas and Nebraska hard wheat, corn, and
oats are shipped to the eastern seaboard by Kansas
City grain merchants.
There is also owned and managed by the Kansas
City grain merchants a large number of country elevators buying grain direct from the farmers in Oklahoma, Kansas, Nebraska, and Missouri.
GRASS AND F I E L D

SEEDS.

The average tonnage of yearly receipts of grass and
field seeds at Kansas City, is 65,000,000 pounds, and
the value is $1,250,000, making it one of the largest
distributing points for field seeds in the United States.
HAY.

Kansas City is the largest market and distributing
point for hay in the world.




Arizona...
Arkansas..
California.
Colorado..
Idaho
Illinois
Iowa
Kansas—
Kentucky.
Louisiana.
Minnesota.
Missouri..
Montana..
Nebraska.

91
259
35
2,217
161
382
694
49,812
18
5
55
13,842
544
7,993

91
308
"*2~i08
43
259
899
44,452
46
12,419
83
6,921

LIVE STOCK

Nevada
New Jersey
New Mexico...
Ohio
Oklahoma
Oregon
South Dakota.
Tennessee
Texas
Utah
Wisconsin
Wyoming
Total..

150
1
167
9
4,719
178
83
2
443
85

171
4,323
16
84
51
589
286

165

7
254

82,110

73,445

INDUSTRY.

Greater Kansas City ranks second. Total number
cars of live stock received in year 1913, 137,000; value
live stock marketed, $224,000,000; number cattle received, 2,318,885; number hogs received, 3,067,785;
number sheep received, 2,094,748.
This stock came from 29 different States and from
the Republic of Mexico.
Kansas City is the greatest stocker and feeder
market in the world.
During the year 1913 cattle were shipped as follows:
To
To
To
To
To
To

Illinois points
Iowa points
Kansas points
Missouri points
other States north and east
other States south and west

Total
Conservative value

'144, 000
202, 000
190, 000
282, 000
71, 000
25, 000
914, 000
$50,000,000

K A N S A S CITY, MISSOURI.

Total number of beef cattle remaining in our tributary territory, 11,000,000, being about 30 per cent of
what is in the United States.
Cattle receipts by States at the Kansas City, Mo.,
FromArizona
Arkansas...
Colorado...
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas..
Kentucky..
Louisiana..
Minnesota..
Mississippi.
Missouri....

1913
4,635
28,950
73,988
2,999
146

From—
2,934
35,311
73,491

243
1,637
5,471
159
23
6,206
18,102
1,201,578 1,058,578
16
3,581
4,245
219
1,452
37
364,532 "360," 594

Montana
Nebraska
New Mexico
New York
Oklahoma
Oregon
South Dakota..
Tennessee
Texas
Utah
Wisconsin
.
Wyoming
Mexico
Total..

75
59,136
47,103
25
280,313
479
239,768
2,104
795
331
53
2,318,885

999
56,722
31,282
* 279," 539
1,397
51
157
213,705
1,210
328
1,374
2,147,224

181
MANUFACTURING AND

MILLING.

Manufacturing.—Total
number of factories in
Greater Kansas City (1913), 1,200; number of people
employed in these factories, 40,000; number of people
supported by these factories, 100,000; capital invested
in these factories, $100,000,000; value of products of
these factories (1913), $250,000,000; gain in number
of factories in 10 years, 51.2 per cent; gain in average
number of wage earners, 40 per cent; gain in capital
invested, 107.4 per cent; gain in value of production,
102.5 per cent.
Flour mills.—The output of the Kansas and Kansas
City flour mills for 1913 was 12,890,183 barrels, having
a value of $58,005,585.

Hog receipts, by States, at the Kansas City, Mo., stockyards.
MEAT
From—
Arizona
Arkansas
Colorado
Iowa
Kansas
Louisiana
Missouri
Nebraska
New Mexico

1913.

1912

13,545
14,217
1,267
4,250
22,831
27,498
1,536,528 1,359,853
182
119
800,484
842,396
137,067
230,988
185
243

From—
Oklahoma
South Dakota
Texas

1913
52,892
915
1,889

41,588
1,311
868

2,567,785 2,523,331
Total
Received at pri500,000
400,000
vate yards
Grand total. 3,067,785

2,923,331

Sheep receipts, by States, at the Kansas City, Mo., stockyards.
FromArizona...
Arkansas.
California.
Colorado..
Idaho
Illinois
Iowa
Kansas
Louisiana.
Minnesota
Missouri..
Montana..

1913
87,951
9,522
1,984
688,374
4,427
2,470
8,218

361,840
1,117

1912
90,467
4,579
2,571
569,542
8,889
468
3,484
462,271

From—
Nevada
New Mexico..,
Oklahoma
Oregon
South Dakota.
Texas
Utah
Wyoming
Nebraska

1913

1912

187,424
210,983
15,967
56,207

2,542
134,565
34,559
3,130
352
206,809
197,254
28,320
36,066

2,094,748

2,133,978

5,570
149,844
20,515

266

275,191
6,878




318,217
29,883

Total.

PACKING.

1912

Greater Kansas City ranks second.
The following is the record of the number of animals
killed during the year 1913: Cattle and calves,
1,240,862; hogs, 2,795,597; sheep, 1,600,993.
The sales of the products of our packing houses for
1913 aggregated $178,000,000.
L U M B E R A N D OIL.

During year 1913 the yellow pine manufacturers of
Kansas City produced 1,003,200,000 feet of yellow
pine lumber, of a value of over $25,000,000.
The Prairie Oil & Gas Co. and other pipe lines carried from oil fields within 10 hours' ride of Kansas
City 50,900,000 barrels of oil, having a market value
of more than $50,000,000, which shows an increase
over 1912 of 35.7 per cent.




LOUISVILLE, KY.

LOUISVILLE, KY.
ARGUMENTS IN BEHALF OF LOUISVILLE AS A FEDERAL RESERVE CITY.
The Reserve Bank Organization Committee:
The President, the Senate, and Congress are to be
congratulated upon the enactment of a bill containing so many admirable features, and whatever differences of opinion may have existed during the discussion of the bill, and especially as originally presented,
the country as a whole looks forward with confidence to
the practical and satisfactory operation of the Federal
reserve act.
In a discussion of this matter it shall not be our
purpose to criticise any arguments, nor to comment
upon the laudable aspirations of other cities. The
claim of Louisville is based on its merits for financial
and commercial usefulness, and the large and varied
interests represented within the territorial region. I t
shall be our sole purpose to inform this committee
why Louisville so peculiarly meets all of the requirements of a Federal reserve city.
The law provides that the Reserve Bank Organization Committee shall designate not less than 8 nor
more than 12 cities, to be known as Federal reserve
cities.
The law further provides that the districts shall be
apportioned with due regard to the convenience and
customary course of business, and shall not necessarily be coterminous with any State or States.
I t is our understanding, therefore, that the essential
elements which are to be met by us in the presentation
of our case are as follows:
(a) Geographical convenience.
(&) The industrial development of the section.
(c) The established trend of business.
(d) The extent to which each section is able, independently, to finance the needs of its own region.
Taken up in order, we submit a map, marked " E x hibit No. 1," outlining clearly the region to be embraced, and which, for the purpose of convenience,
will be designated region No. 3. In this region is
embraced southern Indiana (comprising Bartholomew, Brown, Crawford, Clay, Clark, Daviess, Decatur,
Dearborn, Dubois, Fayette, Franklin, Floyd, Green,
Gibson, Harrison, Jackson, Jefferson, Jennings, Johnson, Knox, Lawrence, Morgan, Monroe, Martin,
Owen, Ohio, Orange, Perry, Pike, Posey, Rush, Ripley, Shelby, Spencer, Sullivan, Scott, Switzerland,
Union, Vigo, Vanderburg, Washington, and Warrick




Counties); the entire States of Kentucky, Tennessee,
Alabama, Georgia, Florida, and northern Mississippi,
comprising the following counties: Alcorn, Attala,
Benton, Bolivar, Coahoma, Calhoun, Carroll, Chickasaw, Clay, Choctaw, De Soto, Grenada, Holmes, Itawamba, Lee, Lafayette, Leflore, Lowndes, Marshall,
Montgomery, Monroe, Noxubee, Oktibbeha, Prentiss,
Panola, Pontotoc, Quitman, Sunflower, Tate, Tunica,
Tippah, Tishimingo, Tallahatchie, Union, Webster,
Washington, Winston, and Yalobusha.
Louisville is located within this territorial region,
within easy access to all points embraced within its
confines. Based on commerce, as regulated by the
mails, 18 hours' communication meets the necessities
of the case substantially as well as 10 or 12 hours;
that is to say, if the checks, notes, bills, and other
paper( can be mailed at 4 or 5 o'clock in the afternoon
and be received by a correspondent bank at 8 or 9
o'clock the following morning, it meets the requirements practically as well as though the same items
were received on the evening of the same day on
which mailed.
Louisville is within 3 or 4 hours of all of the cities
and towns of southern Indiana. I t is within less
than 12 hours by mail of all of the principal points
within the State of Kentucky. I t is within 9 hours
of Knoxville and eastern Tennessee. I t is within 12
hours of Chattanooga. I t is within 5 hours of Nashville and 12 hours of Memphis.
With regard to the State of Mississippi, it is within
15 hours' communication.
With reference to Alabama, it is within 11 hours of
the principal city of Alabama, namely, Birmingham.
I t is within 14 hours of Montgomery.
With regard to Atlanta, it is within 16 hours.
Necessarily, Florida being a peninsular State, is not
within easy communication by mail of any of the
States. For business purposes, it is as near the city
of Louisville, Richmond, Washington, and Baltimore
as it is to New Orleans or New York.
The cities of Florida are at least a night's mail from
Atlanta, the nearest point.
Therefore it is clear from the standpoint of convenience that Louisville is within easy access by mail, for
all practical purposes, of all the territory embraced
within region No. 3.
185

186

LOCATION" OF RESERVE DISTRICTS.

Louisville is also most favorably situated with
regard to a number of cities, some of which of necessity must be chosen as Federal reserve cities under
the act.
Should it be necessary to communicate promptly
with other Federal reserve cities, it can be done with
a number of them by a night's mail.
Chicago is less than 10 hours' distant from Louisville.
St. Louis is less than 8 hours by mail from Louisville.
Pittsburgh is within 12 hours, and likewise Cleveland.
Hence it follows that Louisville, as a matter of convenience, is most conveniently located both with
regard to prompt communication with all the points
in region No. 3, and likewise with a number of cities,
some of which of necessity must be chosen as Federal
reserve cities.
%
INDUSTRIAL DEVELOPMENT OF THE

SECTION.

The second point to which we shall address our
attention is that heretofore mentioned nnder the
head of (6), to wit, " T h e industrial development of
the section."
And this may properly be divided into two subdivisions :
First, the industrial development of Louisville.
From the published report of the Treasury Department, under the heading of internal-revenue collections for the fiscal year ending June 30, 1913, it appears
that Peoria collected $34,000,000; Terre Haute (approximately), $20,000,000; Louisville (approximately),
$19,000,000; Cincinnati (approximately), $17,000,000.
I t further appears from this report that the total
internal-revenue receipts from the State of Kentucky
for the year 1913 amounted to the enormous sum of
$35,000,000.
From the published report of the Louisville Board
of Trade it appears that the stock of whisky in bond
on June 30, 1913, was as follows: In the United
States (approximately), 275,000,000 gallons; in the
State of Kentucky (approximately), 163,000,000
gallons.
From a report submitted by W. G. Dunnington &
Co., which is considered authoritative, it appears that
the total estimated production of tobacco grown in
the United States in 1913 was of the approximate
value of $122,000,000.
The same report indicates that the amount financed,
directly and indirectly, through Louisville is valued
at $39,000,000, or 32 per cent of the value of the
entire crop of the United States, and in value oneeighth of the crop of the entire world.
The board of trade annual report shows a large
amount of other classes of merchandise made in or
shipped from Louisville.




In the matter of grain, the receipts were for the
past year $17,000,000.
In the matter of live stock the number of cattle,
hogs, etc., was 1,400,000, of a value of approximately
$22,000,000.
The census report of 1910 further discloses the fact
that the manufactured products of the city of Louisville for the year 1913 amounted to $101,000,000.
Louisville has a large and varied number of factories.
I t has the largest farm-wagon factory in the world.
I t has one of the four largest plow factories in the
world, the output of which is largely sold in the South,
and especially within region No. 3.
Louisville also has large and important grain elevators.
I t has a large and important hardware and dry goods
trade, the bulk of which is distributed through the
South.
I t has industries, or rather it has factories, amounting to approximately 1,000 in number.
Its wholesale trade is.also large and extensive, and
Louisville for years has been known as a large distributing point for all classes of goods used within the
South and Southwest.
Turning your attention to the geological map of
Kentucky, it appears that Louisville occupies a most
unusual position. Bounded on the west by a large
and important coal region, covering approximately 80
miles square. To the east of our city, and within easy
access of it, are large and valuable coal fields, which
coal fields extend not only through the State of Kentucky, but also to the State of Tennessee, being generally known as the Jellico coal fields. Within these
eastern coal regions are now located the second largest
coking ovens within the United States.
This brief enumeration will give the committee some
general idea of the vast and important industries directly within the limits of the city of Louisville or
tributary to it. In a large measure these enterprises
are financed in Louisville. We do not undertake to
say, nor is it a fact, that all of the credit or funds necessary for this vast volume of trade are financed by
Louisville banks. I t must be remembered, however,
that a large and important amount of financing is done
by privately invested capital which does not appear
under the heading of notes and bills discounted or any
other tabulation.
I t is also true that some of the important industries,
such as whisky and tobacco, are financed in a measure
in New York or Chicago, and this to a certain extent,
when done through foreign banks, may be due to the
fact that rates of discount are lower or more favorable.
WHISKY

TRADE.

The annual production of straight whisky in Kentucky is approximately 45,000,000 gallons, or about
900,000 barrels. This has been slightly excessive, and
the 1913-14 crop is being curtailed.

LOUISVILLE, K E N T U C K Y .

The annual withdrawals from bond will average
35,000,000 gallons, the internal-revenue tax collected
being at the rate of $1.10 per gallon. There are now
in bond in the State of Kentucky, in round numbers,
163,000,000 gallons, on which the Government will
derive the above tax. The amount in bond is more
or less fixed, as withdrawals are replaced by new
whisky. The market value of the whisky in bond,
exclusive of the tax, is about $80,000,000.
Banks lend on warehouse receipts for new-crop
whisky $10 per barrel, hence the initial loan on each
crop is approximately $9,000,000. As the average
date of withdrawals from bonded warehouses is three
and one-half years, $31,000,000 is tied up before the
whisky moves. Much of this whisky is marketed on
long terms and notes are given at sale, and these are
substituted for the initial loans, hence a loan of $10 a
barrel on whisky becomes a piece of commercial paper
with warehouse receipts attached at $20 a barrel
instead of $10. Much of this secured commercial
paper discounted by distillers properly belongs where
it originates, but on account of lack of knowledge concerning the trade in general, and particularly the integrity of Kentucky warehouse receipts, it is financed
in Kentucky.
^
The manufacture of 900,000 whisky barrels for the
Kentucky crop centers in Louisville and is an important industry, amounting in volume to over $3,000,000.
The rapid growth of the "bottled in bond" branch
of the whisky business has made Louisville a large
box-manufacturing center, as well as an enormous distributor of bottles and other incidental supplies.
The whisky trade is a peculiar one and the banks of
Louisville are thoroughly acquainted with its individual needs. They must understand the value of the
particular brands, some of which are quite valuable,
others of practically no value. They must also understand the nature of the cooperage which contains the
whisky. They must know the nature and the value
of whisky warehouse receipts, which are used but little
in other communities, and in truth are not generally
understood, and yet to those fully understanding them
are considered as of the highest grade of security.
The committee should bear in mind that each year
a certain amount of whisky is forced out of bond and
that the requirements for paying the tax do not have
to be met in any one year for the vast amount of
whisky mentioned.
TOBACCO

TRADE.

With regard to the tobacco trade, it is, as stated, a
large and most important one. Government buyers
from almost every nation in the world are located in
Louisville and buy upon the tobacco breaks. England
has its representative, France has its representative,
Germany has its representative, Italy has its representative, and so on through the list. Temporarily, a




187

portion of the money to buy the tobacco preparatory
to shipment must be furnished in Louisville. Louisville is also called upon to provide, to a considerable
degree, funds to care for the growing crop.
LEAF TOBACCO.

Tobacco brings in more money to the acre than any
other crop, and one-third of the entire production of
the United States and one-eighth of the world's crop
comes from Kentucky.
Every pound represents cash to be gathered from all
parts of the world, and the exportation of leaf tobacco
is an important factor in creating our foreign-trade
balance, going as it does away from the beaten paths,
creating personal and trade relations which lead into
the introduction of other of our products, both raw
and manufactured.
The following is the 1913 production:
CHEWING, SMOKING, SNUFF, AND EXPORT TYPES.
Price per Total farm
Acreage Pounds
value on
pound
Production. Dec. 1,
yield
basis of
(acres). per acre.
Dec. 1
1913.
price.
Pounds.

Burley district
Dark district of Kentucky
and Tennessee:
Paducah district
Henderson or Stemming district
Upper Green River
district
Upper
Cumberland
district
Clarksville and Hopkinsville district
Total

232,600

760 176,776,000

Cents.

12.3 $21,743,000

75,000

780 58,500,000

7.7

4,504,000

55,000

800 44,000,000

7.3

3,212,000

23,400

720 16,848,000

7.0

1,179,000

15,000

760 11,400,000

7.3

832,000

115,000

700 80,500,000

9.0

7,245,000

516,000

388,024,000

38,715,000

Kentucky's export of leaf tobacco is as follows:
Burley (10 per cent of crop)
$2,174, 300
Paducah district (80 per cent of crop)
3, 603,200
Henderson or Stemming district (85 per cent of crop).. 2, 730,200
Upper Green River district (30 per cent of crop)
353, 700
Upper Cumberland district (35 per cent of crop)
291, 200
Clarksville and Hopkinsville district (85 per cent of
crop)
6,158,250

Tobacco is different from other crops in that it does
not go to market in the fall along with cotton, corn,
etc. The season begias in December and extends
through March, depending largely on weather conditions. As can be at once seen, it, like whisky, can
be moved after the pinch in the cotton sections is
over, and surplus funds from tobacco sales can find
employment in the South during the planting and
growing season.
The large and valuable burley crop is consumed by
manufacturers like the American Tobacco Co., Liggett & Meyers Tobacco Co., and others, whose financing is done in. New York, Chicago, and St. Louis.
Hence, the burley crop, worth alone nearly twenty-five
millions, is paid for almost entirely by outside funds,
to which, when we add the cash drawn from Canada

188

LOCATION" OF RESERVE DISTRICTS.

and, European countries for our dark crop, creates a
large fund which can properly be used in the cotton
States.
The extent of the manufacturing end of the tobacco
business in Louisville and vicinity can be shown by
the internal-revenue collections. For the last fiscal
year the total amount collected was $3,134,184, 80
per cent of which was paid in to the Louisville collector, and the money value of the manufactured
tobacco is about $15,000,000 per annum.
Thus it is clear to you, we take it, that at least these
two classes of trade are peculiar to our particular
section of the country. In addition to this, the agricultural region contiguous to Louisville is a large,
productive, and profitable one.
DEVELOPMENT OF TRADE I N REGION NO. 3 .

Turning our attention to the second subdivision,
to wit, the extent of Louisville's trade with the territory embraced in region No. 3, we would state
frankly that actual figures are not obtainable, for the
reason that few firms are willing to give out the actual
extent of their sales or purchases, also there is no law
making such statistics available. Hence any statement made by any city to your committee regarding
its trade with certain territory must be an estimate
only.
In order to get as accurate an estimate as possible,
an inquiry was addressed to about 110 of the manufacturers and wholesalers of Louisville, asking the
amount of their sales in the territory embraced in
region No. 3. From replies received from 76 firms,
their actual annual sales in this territory amount to
$62,000,000.
In view of the fact that Louisville has over 1,000
factories and several hundred wholesale houses—
among the latter being the second largest wholesale
hardware company in the United States—and applying the same percentage of annual sales to the 1,000
as indicated by the 76 firms from whom replies
were received, the total would be approximately
$800,000,000. This sum, however, is so large that it
is not fair to use it as a basis, and 40 per cent or 50
per cent of the amount would probably be a far more
accurate basis of the value of the annual sales made by
Louisville in the territory named.
This we believe to be a fair estimate of the sales
made by Louisville to that territory. And these
figures do not take into consideration the large amount
of commodities, such as cattle, cotton, and other
agricultural products purchased by Louisville from
that territory.
The percentages of Louisville's trade with this territory was as follows:
Kentucky
Tennessee
Alabama
Indiana




Per cent.
40
15
10
13

Mississippi
Georgia
Florida

Per cent.
8
8
6

FINANCIAL

IMPORTANCE.

Let us now consider the financial strength and importance of Louisville in relation to the cities and
towns embraced within the proposed region No. 3.
I t is a well-established fact that Louisville and its
bankers are cautious, conservative, and yet farsighted.
In times of panic or distress the financial situation in
Louisville has ever been strong, self-sufficient, and
courageous. These banks, the neighboring banks,
and the community at large are in harmony, based on
mutual confidence and respect. During many a panic
Louisville has been noted for the strength of its position. The United States, more than 80 years ago,
established one of its branch banks within our limits,
and to-day its successor stands upon the same plot of
ground—full of years, of courage, and with a wonderful history for financial strength and value to the
community. Our other banks are of the same type
of integrity and influence for good and for usefulness.
COMPARATIVE

STATEMENTS.

By referring to a plat, which we may term "Exhibit
No. 3," it appears that the population of Louisville is
40 per cent greater than that of any other city within
the region mentioned. Its population is 250,000, to
which may properly be added the adjacent towns of
New Albany and Jeffersonville, making the population
of Louisville and suburban towns approximately
300,000.
In point of population, the city of next importance
within the region is Atlanta, with a population of
155,000, or 50 per cent less. The next is Birmingham,
with a population of 132,000. The next is Memphis,
with a population of 131,000, and so on down the list
as indicated by the exhibit.
In 1913 the clearings in the same cities were approximately as follows: In Louisville $715,000,000, excluding out-of-town checks; Atlanta, $725,000,000, from
which should be deducted, according to their own
statement, $127,000,000 for out-of-town checks, leaving a clearing for Atlanta of $598,000,000; Memphis,
$421,000,000; other cities as indicated upon the map.
With reference to the capital and surplus, Louisville
banks have a capital of approximately >$10,000,000,
and a surplus of approximately $6,000,000. Atlanta
has a capital of approximately $8,000,000 and a surplus of $6,000,000. Memphis has a capital of approximately $6,000,000, and a surplus of $3,000,000. So,
again, it appears that Louisville is first in the matter
of capital and surplus.
The exhibit further discloses the fact that the
amount of average deposits in Louisville during the
year 1913 amounted to approximately $52,000,000;
Atlanta, $32,000,000; and the other States as indicated on the plat. Thus, again, it is clear that Louisville is first in financial strength in the matter of
deposits. So that taking into consideration the popu-

LOUISVILLE, K E N T U C K Y .

189

lation, the clearings, the capital and surplus and ters were addressed by the Louisville clearing house
deposits—four points of vital importance—Louisville to 5,329 banks, our purpose being to ascertain as
stands preeminent.
nearly as possible their first, second, and third choices
For the information of the committee, we wish to for a Federal reserve city. A copy of the letter and
call attention to the fact that the schedule mentioned, a tabulation of the replies we have attached as Exfrom which we have taken the foregoing facts, includes hibit No. 6. The report discloses the fact that the
the capital, surplus and deposits of all national, State . individual preferences extend from New York, Chi"banks, and trust companies in the cities mentioned.
cago, and other cities to the Gulf and are not restricted
As indicating Louisville's ability to provide for the to any particular region; and yet the report clearly
necessary funds of region No. 3, as outlined, we refer indicates that, after local or State pride has been
you to plat marked "Exhibit No. 4." From this eliminated, Louisville leads in point of first, second,
exhibit it appears that the total amount of funds avail- and third preference by a tremendous majority.
able for investment (in which are included the average
LOUISVILLE'S POSITION AMONG THE EIGHT RESERVE
Federal bank deposits for this region, less the required
CITIES.
reserve of 35 per cent) is approximately $16,000,000.
In this statement we have excluded the large amount
By referring to the map filed as Exhibit No. 1, it
of Government deposits annually deposited in Louis- appears that of the eight reserve cities thereupon
ville banks.
indicated, Louisville is fifth in ability to furnish the
It further appears that the average amount of necessary material for a Federal reserve bank.
In considering the peculiar situation of Louisville,
rediscounted and bills payable were $15,500,000, makit must be borne in mind that there are no two great
ing an average surplus for this region of $1,800,000.
As indicated by the exhibit, these averages were and important commodities demanding the furnishcompiled from the five reports of the national banks ing of funds at the same period of time. This situato the comptroller during the year 1913, and, there- tion is rather an unusual one, in that the needs of a
fore, for our purpose, are considered the most avail- particular industry are to be provided for at a different time from the needs of other important industries.
able data.
OTHER SECTIONS.
So that the funds are steadily employed and there is
no tremendous demand upon the resources of LouisNow let us compare a tabulation of another section,
omitting the State of Kentucky and southern Indiana ville at a given time, as compared with any other
and substituting North and South Carolina. The southern city.
result then appears to be that the total amount of
DECENTRALIZATION OF BANKING FACILITIES.
funds available for investment, on the average, are
Our statements with regard to region No. 3 and the
$13,000,000, that the average amount of funds needed
for rediscount and bills payable are approximately location of Louisville as a Federal reserve city haye
$22,000,000, making an average deficit for this region been made upon the assumption that the committee
of $9,000,000, or a favorable difference of $10,000,000 wished to consider primarily eight Federal reserve
between region No. 3 and what may be termed the regions.
In our opinion, the theory upon which the bill was
southeastern region, from which the conclusion is
irresistible that Kentucky and southern Indiana add drafted was, doubtless, to decentralize rather than
tremendously to the ability of this section to take centralize our banking facilities, and in that spirit
we should approach the consideration of the question.
care of the needs of the entire region No. 3.
Twelve banks, equally as well located and well balI t further discloses the fact that a portion of the
region is largely of the class of borrowers, and that anced as eight banks, will be more in accord with the
one portion of the region No. 3 has the ability to pro- spirit of the law, and as useful and far more convenient.
We believe that the theory upon which the bill was
vide not only for its own needs but to furnish the surplus funds necessary for other parts of the same region. drafted, the subsequent debates upon it, and its final
We submit, marked "Exhibit No. 5," the detailed enactment, and considering the convenience and cusreports submitted to the comptroller, from which we tomary trend of trade, that the business of the country will require the maximum number by the estabhave taken the condensed report just mentioned.
The foregoing statements, when considered in de- lishment of 12 regional banks.
With that in view, we have thought it proper to
tail, indicate as clearly as we are able to ascertain
from past experience the extent to which each sec- attach an additional map, marked "Exhibit No. 8 "
tion has been able or unable to finance its own re- by an inspection of which it appears that Florida and
Georgia are placed in another section, namely, South
quirements.
Atlantic region. This change will not weaken, but
LOUISVILLE, THE CHOICE OF THIS REGION.
rather strengthen, our position of prominence, staTo ascertain as far as practicable the preferences bility, and financial capacity to provide for the deof banks located within proposed region No. 3, let- mands of the region.




190

LOCATION" OF RESERVE DISTRICTS.

By an examination of this exhibit it appears that
the territory is self-contained, self-sustaining, convenient, and most admirably adapted to the territory to be served.
The capital for such a reserve bank is readily available from the 478 national banks of this region, providing without assistance a capital of $4,710,000. To
this should be added $11,280,000 of deposits, making
a total of $15,990,000. From this total is to be deducted the regional reserve of 35 per cent, leaving
available for investment purposes $12,140,000.
The best obtainable data indicates that the funds
needed at the time of greatest demand approximate
$9,125,000, thereby leaving a surplus reserve of
$3,015,000 at the "peak of the load."
Thus it appears that this is an ideal district, providing as it does for all classes of business at all times
of the year, that the merchandise is to be provided
for and crops to be financed at different seasons of
the year, that the heavy drafts upon funds come in
rotation, not all at once, and finally that the section
as indicated is independent, has ample resources, but
not a large overplus, that it is convenient geographically and commercially, and as it stands meets any
requirements of the Federal reserve act.
ADDITIONAL MAPS.

For your information we attach an additional exhibit, marked "No. 9," comprising all sections mentioned in Exhibit No. 8, and the additional State of
Ohio—the result of which is to add to the resources
of the section.
Should this Exhibit No. 9 be adopted, the location
of Louisville, if for no greater reason than convenience,
makes it preeminently the site for a regional bank.
For your, further consideration we attach Exhibit
No. 10, embracing the same territory as Exhibit No. 9,
with the addition of the western half of Georgia.
This section likewise indicates its ability to care
for the needs of the region, and Louisville is again the
center of importance.
If it is desired to embrace a larger territory than
outlined in Exhibit No. 10, we suggest the territory
as indicated by Exhibit No. 11, which embraces the
entire States of Georgia and Florida.
In the discussion of this question our estimates have
been made with regard to the capital and surplus of
the Federal reserve banks and the deposits which they
will contain, based upon data obtained solely from
national banks, and they do not in any way include
State banks or trust companies.
We attach to this brief a number of exhibits giving,
as far as we have been able to obtain, the information
upon the subjects mentioned by the committee.
CONCLUSION.

We have not seriously considered Louisville being
attached to some other reserve city. To attach it to




Atlanta would be to attach the greater to the lesser,
the independent to the dependent, to reverse the
natural order of things, to violate precedent, and
therefore it is not seriously to be considered.
With regard to St. Louis, its relationship in business
and its bank associations have largely been toward the
West, and especially the Southwest, and a comparatively small volume with the State of Kentucky.
With regard to Chicago, the trade conditions and
the bank connections are more intimate, for the
reason that in this section of the country the trend
of trade is north and south, but we have considered
that Chicago lies within a different territory from that
in which Louisville will probably be placed.
With reference to Cincinnati, she is north of the
Ohio River and in a very large degree in a different
section of the country. Its communication with
Louisville is not intimate nor is its trade close, nor
have been its commercial transactions or its banking
associations, and we have considered that in the
natural course of events it would be placed in the same
territory as Cleveland or Pittsburgh.
The lines which we have drawn to limit the reserve
region must necessarily be artificial lines and should
therefore be considered from an elastic standpoint,
but the natural barriers or boundaries are so pronounced, with regard to this particular section, that
we can not refrain from calling attention to them.
On the south is the Gulf of Mexico, on the west, for
the greater portion of the region, is the Mississippi
River; on the north, for the greater portion of the
region, the Ohio River forms the boundary line, and
on the east the mountain range.
The territory was formed as if by nature, and in this
territory, from the earliest trade reports to the present
time, the course of trade has been north to south and
south to north, and from the very nature of the situation will always continue so to be.
For almost a hundred years the course of trade between Louisville and the South has been continuous
and uninterrupted. The people of these communities
are related by ties of blood, marriage, and friendship,
as well as by long intercourse through dealings in
commerce. From the early days before the building
of railroads, when all trade was conducted either by
rivers or by vehicles, the trade intercourse between
the communities of the section mentioned has been
large, intimate, and uninterrupted.
Louisville is justly entitled to be designated as a
Federal reserve city. Its geographical situation is
such that it is within easy access of the greater portion
of the territory embraced within the lines indicated.
I t is first in population, it is preeminent in trade conditions, it is in the front rank in banking capital and in
clearings. I t has the unusual and most important
element of being able to take care of its own needs.
I t is not of the class of dependents, but in the class
that affords a surplus when the occasion demands.

LOUISVILLE, K E N T U C K Y .

In this discussion we recognize the force of the
statement made by John Perrin, of the currency commission of the American Bankers 1 Association, in
which he said:
The determination of one district is measurably dependent upon
the determination of others, but the vast credit requirements of
the South, which focus at a single season, more widely varying than
in any other section, suggest that the Southern States should be
included in three districts, extending far enough north to assure
in each the proper balancing in banking resources.

Louisville as a location for one of the regional banks
you will best serve the cause of sound banking and of
a flexible currency.
Respectfully submitted.
OLLIE M .

JAMES,

SWAGAR

W.

JOHN W .

BARR, jr.

KNOTT,

EXHIBIT N o . 3.

Population,

We have journeyed more than 800 miles to present
the facts establishing the importance as well as the
ability of Louisville in meeting all the requirements
under the act of a Federal reserve city. Our earnestness and confidence is shared by many able men—
bankers of Indiana, Kentucky, and Tennessee—who
have met with you to personally express their views.
In this discussion it has been our purpose to view
the situation broadly and not from a provincial
view, and we confidently believe that in selecting

EXHIBIT NO. 3 — C o n t i n u e d .

Population, 1913 clearings, bank capital, surplus and deposits of the
principal cities in proposed region Noy 3—Continued.
City.

Population.

Chattanooga
Birmingham
Mooile
Atlanta
Savannah
Augusta
Macon
Jacksonville
Evansville

$44,604
132,685
51,521
155,000
65,064
41,040
40,665
57,699
69,674

1913 clearings, bank capital, surplus, and deposits of the
principal cities in proposed region No. 3.

Louisville
Lexington
Nashville
Memphis
Knoxville

Population.

1913
clearings.

Capital.

250,000 $715,731,886 $9,779,600
35,099 45,701,000 2,050,000
110,000 366,657,389 4,100,000
131,000 421,987,372 5,837,253
36,346 87,812,515 2,585,000




Capital.

Surplus.

Deposits.

Surplus.

Deposits.

$5,991,358 $52,403,997
1,213,000
8,115,000
2,425,000 29,000,000
3,233,736 42,241,104
622,000 11,795,000

$128,745,000 $3,031,000 $1,284,000 $18,550,000
173,857,773 3,792,320 3,484,500 27,805,250
73,533,518 1,200,000 2,0*5,000 13,325,000
598,000,000 8,225,000 7,168,000 32,150,000
280,538,332 4,811,530 3,837,000 25,645,000
108,160,149 2,330,000 2,383,000 17,015,000
190,303,000 1,875,000 1,155,000
8,225,000
174,971,596 3,350,000 2,238,000 21,370,000
925,000 19,710,000
129,075,479 1,662,000

Population of region by States.

[Includes capital, surplus, and deposits of all national, State, and private banks.]
City.

1313
clearings.

SHERLEY,

RICHARD

191

Kentucky
Southern Indiana
Tennessee
Northern Mississippi
Alabama
Georgia
Florida
Total

2,300,000
1,300,000
2,200,000
900,000
2,200,000
2,600,000
750,000
12,250,000

192




LOCATION" OF RESERVE DISTRICTS.

LOUISVILLE, K E N T U C K Y .

193
EXHIBIT N o .

EXHIBIT N o . 4 .

5—Continued.

Estimated amount of Federal reserve bank capital furnished by the
Total deposits of the national banks of proposed region No. 3, comnational banks of each of the States in proposed region No. 3; also
prising the States of Kentucky, Tennessee, Alabama, Georgia, and
total Federal reserve bank deposits from each of these States, based on
Florida, etc.—Continued.
average deposits for the year 1918; and average amount of rediscounts
REDISCOUNTS AND BILLS PAYABLE OF SAME REGION ON SAME
and bills payable for each State.
DATES.
Capital
and
surplus.

$1,063,000
1,403,000
915,000
611,000
1,501,000
930,000
92,000

Average
rediscounts
and bills
payable.

$3,189,000
2,360,000
1,865,000
1,781,000
3,483,000
3,631,000
329,000

Average
deposits,
1913.

Tennessee
$17,714,700 $75,034,000
Georgia
23,392,800 55,523,000
Alabama
15,254,500 43,896.000
10,176,200 41,906,000
Florida
25,010,700 81,945,000
Kentucky
Southern Indiana... 15,497,500 85,438,000
7,750,000
Northern Mississippi 1,527,100
Total

Federal
bank
capital.

Average
Federal
bank
deposits.

108,573,000 391,492,000

6,515,000

$2,718,000
6,973,000
2,407,000
1,628,000
1,215,000
217,000
316,000

16,638,000

15,504,000

The average deposits and rediscounts for southern Indiana and
northern Mississippi were estimated in each case at one-half the
total for the State, which is probably a little more than these districts will show.
Average Federal bank deposits of this region
Less required reserve of 35 per cent

$16,638,000
5,823,000

Average funds available for investment
Average amount of rediscount and bills payable

17,328,000
15,504,000

Making an average surplus reserve for this region of

1,824,000

The averages in the above tables were compiled from the five
reports made by the national banks to the Comptroller of the Currency during the year 1913.

Same information as Exhibit 4, for the States of Tennessee, Georgia,
Alabama, Florida, North Carolina, and South Carolina.
Federal
bank
capital.

Average
Federal
bank
deposits.

Average
rediscounts
and bills
payable.

$17,714,700 $75,034,000
23,392,300 55,523,000
15,254,500 43,896,000
10,176,200 41,906,000
11,233,800 40,880,000
7,903,200 24,763,000

$1,063,000
1,003,000
915,000
611,000
674,000
474,000

$3,189,000
2,360,000
1,865,000
1,781,000
1,737,000
1,052,000

$2,718,000
6,973,000
2,407,000
1,628,000
4,179,000
4,057,000

85,674,700 282,002,000

5,140,000

11,984,000

21,962,000

Average
deposits,
1913.

Total

Federal reserve bank deposits of these States (average)
Less required reserve of 35 per cent

$11,984,000
4,194,000

Plus Federal bank capital
Average funds available for investment
Average amount of rediscount and bills payable

12,930,000
21,962,000

Making an average deficit for these States of

9,032,000

Total deposits of the national banks of proposed region No. 3, comprising the States of Kentucky, Tennessee, Alabama, Georgia, and
Florida, and southern Indiana and northern Mississippi, as shown
by reports to the Comptroller of the Currency on the five calls of 1913.
June 4.

Aug. 9.

Oct. 21.

Kentucky
Tennessee
Alabama
Georgia
Florida
Southern Indiana...
Northern
Mississippi

$83,535,000 $86,253,000 $81,409,000 $79,653,000
73,500,000 74,779,000 75,221,000 72,689,000
45,386,000 43,768,000 41,531,000 38,475,000
55,801,000 54,826,000 52,413,000 47,923,000
41,115,000 44,467,000 44,132,000 40,182,000
84,170,000 84,310,000 87,943,000 86,668,000
7,200,000

8,314,000

Total...

391,459,000 396,131,000 390,206,000 372,790,000

406,882,000

7,952,000

7,728,000




142,000

236,000

240,000

753,000

14,944,000

20,938,000

18,082,000

Total deposits of the national banks of the States of Tennessee, Alabama, Georgia, Florida, North Carolina, and South Carolina, as
shown by reports to the Comptroller of the Currency on the five calls
of 1913.
Apr. 4.

Feb. 4.

Total

June 4.

Aug. 9.

Oct. 21.

$73,500,000 $74,779,000 $75,221,000 $72,689,000
45,386,000 43,768,000 41,531,000 38,475,000
55,801,000 54,826,000 52,413,000 47,923,000
41,115,000 44,467,000 44,132,000 40,182,000
42,429,000 40,866,000 38,65.1,000 36,526,000
24,836,000 24,323,000 23,165,000 21,469,000

$78,981,000
50,318,000
66,665,000
39,632,000
45,928,000
30,021,000

283,067,000 283,029,000 275,113,000 257,264,000

311,545,000

Tennessee
Alabama
Georgia
Florida
North Carolina
South Carolina

Alabama
Georgia
Florida
North Carolina
South Carolina

$3,276,000
959,000
5,916,000
1,999,000
2,848,000
2,575,000

$2,387,000
1,535,000
4,851,000
1,182,000
3,651,000
3,642,000

$2,479,000
2,443,000
7,465,000
1,037,000
4,930,000
4,813,000

$2,604,000
4,173,000
10,810,000
1,298,000
5,947,000
5,693,000

$3,846,000
2,925,000
5,823,000
2,626,000
3,519,000
3,560,000

17,573,000

17,248,000

23,167,000

30,525,000

22,299,000

EXHIBIT NO. 5 A .

Conditions as they would have been in proposed region No. 3, on each
of the five calls of the comptroller in 1913, if a Federal reserve bank
had been serving this region.

FEBRUARY 4, 1913.
Three-fourths demand deposits. $293,594,000—5 per cent.. $14,680,000
One-fourth time deposits
97,865,000—2 per cent..
1,957,000
Federal bank deposits
Less required reserve of 35 per cent

$16,637,000
5,883,000

7,557,000

$78,875,000
78,981,000
50,318,000
66,665,000
39,632,000
84,097,000

10,754,000
6,514,000

Total available funds
Funds needed, per rediscount and bills payable, this date

17,268,000
13,696,000

Surplus reserve

13

3,572,000
APRIL 4,1913.

Three-fourths demand deposits. $297,088,000—5 per cent.. $14,854,000
One-fourth time deposits
99,043,000—2 per cent.. 1,981,000
Federal bank deposits
Less required reserve of 35 per cent

16,835,000
5,892,000

Amount of deposits available for loans
Plus Federal bank capital

10,943,000
6,514,000

Total available funds
Funds needed, per rediscount and bills payable, this date

17,457,000
10,962,000

Surplus reserve

46458°—S. Doc. 485, 63-2

$1,785,000
3,846,000
2,925,000
5,823,000
2,626,000
324,000

Amount of deposits available for loans
Plus Federal bank capital

EXHIBIT NO. 5.

Apr. 4.

$1,485,000
2,604,000
4,173,000
10,810,000
1,298,000
328,000

[Based on national banks only.J
$7,790,000
5,140,000

Feb. 4.

$1,100,000
2,479,000
2,443,000
7,465,000
1,037,000
184,000

Oct. 21.

10,962,000

13,696,000

Total
Tennessee
Georgia
Alabama
Florida
North Carolina
South Carolina

Aug. 9.

REDISCOUNTS AND BILLS PAYABLE OF SAME REGION ON SAME
DATES.

EXHIBIT N O . 4 A .

Capital
and
surplus.

Total

June 4.

$666,000
2,387,000
1,535,000
4,851,000
1,182,000
199,000

Kentucky
$1,040,000
Tennessee
3,276,000
Alabama
959,000
Georgia
5,916,000
Florida
1,999,000
200,000
Southern Indiana...
Northern
Mississippi
307,000

$10,813,000
6,515,000

Plus Federal bank capital

Apr. 4.

Feb. 4.

—*

6,495,000

194

LOCATION" OF R E S E R V E
EXHIBIT N O .

5A—Continued.

EXHIBIT NO.

Conditions as they would have been in proposed region No. 3, on each
of the five calls of the Comptroller in 1913, etc.—Continued.
JUNE 4,1913.

Federal bank deposits
Less required reserve of 35 per cent

$16,584,000
5,802,000

Amount of deposits available for loans
Plus Federal bank capital

10,782,000
6,514,000

Total available funds
Funds needed, per rediscount and bills payable, this date

17,296,000
14,944,000

Surplus

2,352,000

AUGUST 9,1913.
Three-fourths demand deposits. $279,593,000—5 per cent.. $13,980,000
One-fourth time deposits
93,197,000—2 per cent..
1,864,000
15,844,000
5,545,000

Amount of deposits available for loans
Plus Federal bank capital

10,299,000
6,514,000

Total available funds
Funds needed, per rediscount and bills payable, this date

16,813,000
20,938,000
4,125,000

OCTOBER 21,1913.
Three-fourths demand deposits. $305,162,000—5 per cent.. $15,258,000
One-fourth time deposits
101,720,000—2 per cent.. 2,034,000
17,292,000
6,052,000

Amount of deposits available fo r loans
Plus Federal bank capital

11,240,000
6,514,000

Total available funds
Funds needed, per rediscount and bills payable, this date

17,754,000
18,082,000
328,000

EXHIBIT NO. 5 B .

Same as Exhibit No. 5 A, for the region comprising the States of Tennessee, Alabama, Georgia, Florida, North Carolina, and South
Carolina.
FEBRUARY 4,1913.
Three-fourths demand deposits. $212,300,000—5 per cent.. $10,615,000
One-fourth time deposits
70,767,000—2 per cent..
1,415,000
Federal bank deposits
Less required reserve of 35 per cent
Amount of deposits available for loans
Plus Federal bank capital
Total available funds
Funds needed, per rediscount and bills payable, this date
Deficit

$12,030,000
4,210,000
7} 820,000
5,140,000

Amount of deposits available for loans
Plus Federal bank capital
Total available funds
Funds needed, per rediscount and bills payable, this date
Deficit

.
JUNE 4,1913.
Three-fourths demand deposits. $206,335,000—5 per cent.. $10,317,000
One-fourth time deposits...
68,778,000—2 per cent..
1,376,000
Federal bank deposits
Less required reserve of 35 per cent
Amount of deposits available for loans
Plus Federal bank capital
Total available funds
Funds needed, per rediscount and bills payable, this date




$9,647,000
1,286,000

Federal bank deposits
Less required reserve of 35 per cent

$10,933,000
3,827,000

Amount of deposits available for loans
Plus Federal bank capital

7,106,000
5,140,000

Total available funds

12,246,000

Funds needed, per rediscount and bills payable, this date

30,525,000
18,279,000

OCTOBER 21,1913.
Three-fourths demand deposits. $233,659,000—5 per cent.. $11,683,000
One-fourth time deposits
77,886,000—2 per cent..
1,558,000
Federal bank deposits
Less required reserve of 35 per cent

13,241,000
4,634,000

Amount of deposits available for loans
Plus Federal bank capital

8,607,000
5,140,000

Total available funds
Funds needed, per rediscount and bills payable, this date

13,747,000
22,299,000
8,552,000

EXHIBIT N o . 6 .

Copy of a letter sent to 5,329 banks requesting first, second, and third
choice for location of a regional bank.
LOUISVILLE CLEARING HOUSE,

Louisville, January 12, 1914.
GENTLEMEN: Louisville wants a regional reserve bank. Outside
of our desire, it is to the interest of the Government and the people
to have one here, and we are inclosing you herewith a few reasons
why Louisville should be selected.
Will you not indicate below your preference in the matter, returning this sheet in the inclosed stamped envelope? Your prompt
action will assist the organization committee in determining boundaries, as well as help us in our endeavor.
If you have not already done so, we will greatly appreciate it if
you will send a telegram to Hon. Wm. G. McAdoo, Secretary of the
Treasury, Washington, D. C., stating your preference for Louisville.
Yours, truly,
LOUISVILLE CLEARING HOUSE ASSOCIATION.
OSCAR FENLEY, Chairman.
H . C . RODES,
J N O . H . LEATHERS,
F . M . GETTYS,

12,960,000
17,573,000
4,613,000

APRIL 4,1913.
Three-fourths demand deposits. $212,272,000—5 per cent.. $10,614,000
One-fourth time deposits
70,757,000—2 per cent..
1,415,000
Federal bank deposits
Less required reserve of 35 per cent

Three-fourths demand deposits. $192,948,000—5 per cent..
One-fourth time deposits
64,316,000—2 per cent..

Deficit

Federal bank deposits
Less required reserve of 35 per cent

Deficit

Same as Exhibit No. 5 A, for the region comprising the States of
Tennessee, Alabama, Georgia, Florida, North Carolina, and South
Carolina—Continued.

Deficit

Federol bank deposits
Less required reserve of 35 per cent

Deficit

5B—Continued.

AUGUST 9,1913.

Three-fourths demand deposits. $292,654,000—5 per cent.. $14,633,000
One-fourth time deposits
97,552,000—2 per cent..
1,951,000

Deficit

DISTRICTS.

Committee.
12,029,000
4,210,000
7,819,000
5,140,000
12,959,000
17,248,000
4,289,000

First choice for the location of regional bank to serve us
Second choice for the location of a regional bank to serve us
Third choice for the location of a regional bank to serve us
(Signed here)
Please sign and return in inclosed envelope at once.
Replies received from 5,329 letters mailed, to banks in Indiana, Ohio,
Kentucky, Tennessee, Alabama, Georgia, Florida, and Mississippi,
requesting first, second, and third choice for location of a regional
bank.

11,693,000
4,093,000

First. Second. Third.

7,600,000
5,140,000
12,740,000
23,167,000
10,427,000

Cincinnati
Cleveland
Atlanta
Chicago

444
261
133
130
109
2

238
165
68
63
60
6

384
118
• 29
43
57
23

Total.
1,066
544
230
236
226
31

LOUISVILLE,
EXHIBIT NO.

-Continued.

Replies received from 5,329 letters, tabulated by States—Continued.

received from 5,329 letters mailed to banks in Indiana, Ohio,
Kentucky, etc.—Continued.
First. Second. Third.
Indianapolis
Nashville
Memphis
Savannah
Birmingham
Columbus, Ohio.
New Orleans
Pittsburg.
Jacksonville
Chattanooga
Washington
Baltimore
Montgomery
Evansville
St. Louis
New York
Detroit
Mobile
Knoxville

GEORGIA.
Number of letters sent
Number of replies received (15 per cent)..

Total.

151
106
90
71
45
60
72
14
19
3
12

9
8
122
3
1
1
4

Total..

195

KENTUCKY.

937

890
. 141
First. Second. Third. Total.

Atlanta
Savannah
Louisville
Chattanooga
Nashville
Richmond
Macon
Cincinnati
New Orleans...
Baltimore
Birmingham...
Columbus, Ga..
Jacksonville
Memphis
St. Louis

Ill
27
1
1

129
68

45
1
1
21
2

1
5
5
2
1
1
1
1

Total..

62

TENNESSEE.
Number of letters sent
Number of replies received (27 per cent)..

SUMMARY.
Number Number
replies
letters
received.
sent.
Kentucky
Tennessee
Alabama
Georgia
Mississippi
Florida
Indiana
Ohio

626
575
392
890
394
266
963
1,223

393
156
77
141
73
25
319
327

Total

5,329

575
156

Louisville....
Nashville
Memphis
Chattanooga..
Cincinnati
Atlanta
St. Louis
Baltimore....
Birmingham.
Richmond...
Knoxville....
New Orleans.

119
115
47
17
26
3019
2
2:
3
3
2

1,511

Replies received from 5,329 letters, tabulated by States.
626
398
First. Second. Third. Total.
Louisville
Cincinnati
Nashville
Chicago
St. Louis
Memphis
Lexington
Baltimore
Evansville
Paducah
Owensboro
Atlanta
Knoxville
Columbus, Ohio
New Orleans
Washington
Cleveland
Indianapolis

356
42

Total

398

INDIANA.
Number of letters sent
Number of replies received (33 per cent)
Louisville
Cincinnati
Indianapolis
Chicago
Evansville
Detroit
Richmond, Va.
St. Louis
Pittsburgh
Cleveland
Washington
Toledo
Baltimore
New York
Fort Wayne
Logansport
Total..




41
24
24
5
30
1
1
1
1
1
1
1

131

25
7
28
30
6
2
1
1
3*
1
1
1
2
2
2

397
91
31
33
60
7
3
2
2
1
1
4
1
1
1
2
2
2

112

319
60
61

85
109
2
1
1

156

118

111

FLORIDA.
Number of letters sent
Number of replies received (9 per cent)..

Per cent of replies received, 28.

KENTUCKY.
Number of letters sent
Number of replies received (63 per cent-)..

Total...

228

166
165
192
4
1
1
18
2
6

1
1
1
1
1
1

26625
13
21
17
1
6
6
1
2
1

Jacksonville..
Atlanta
Savannah....
Tampa
Louisville
Richmond...
Nashville
Baltimore
Charleston...
Total..

25

23

MISSISSIPPI.
Number of letters sent
Number of replies received (19 per cent)

394
73

48>

Memphis
New Orleans.
St. Louis
Louisville
Birmingham.
Mobile
Forest
Nashville
Atlanta
Cincinnati
Chicago
Jackson

37
24

20-

4
1
1
1
3
1
1
2

45

Total..
ALABAMA.
Number of letters sent
Number of replies received (19 per cent).

392
77
63

Birmingham.
Louisville —
Atlanta
Montgomery.
New Orleans.
Savannah
Memphis
Nashville
Mobile
Total..

25

42
49

9
15
5
3
2
1

77

G4

196

LOCATION" OF RESERVE DISTRICTS.

Replies received from 5,329 letters, tubulated by States—Continued.
OHIO.
Number of letters sent
Number of replies received (26 per cent)

1,223
327

EXHIBIT NO. 13.

Amounts due to banks in following States, from all Louisville banks,
Feb. 16, 1914.

First. Second. Third. Total.

Number
of bank
accounts.

States.
Louisville
Cleveland
Cincinnati
Pittsburgh
Indianapolis
New. York
Columbus
Toledo
Buffalo
Evansville

•...

30
64
72
30

133
153
15

*i

14
5
1
1

22
3

Total

79
25
34
25
2
1
8

327

109
222
259
70
2
2
44
8
1
1

174

217

EXHIBIT NO. 12.

Increase in Louisville industries from the census of 1900 to the census
of 1910.

Indiana
Kentucky
Tennessee
Alabama
Georgia
Mississippi
Florida

Census.

903
860

1909
1899

Census.

1909
1899




Wages.

$12,460,000
8,436,000

4,705
2,491

1

1,255

Rediscounts of Louisville banks Oct. 21,1913
Indirect rediscounts, Oct. 21,1913
Loaned to whisky firms by Louisville banks Feb. 16,1914.

12,494,944.94
0
$1,068,649.86
2,531,117.72

EXHIBIT NO. 14.

Capital and surplus, deposits, and rediscounts and bills payable of
all banks other than national, on June 14, 1912.
Salaries.

Capital.

27,023 $79,437,000
23,062 44,016,000

Cost of
materials.

146 $1,646,401.83
899 9,241,451.71
127 1,342,821.57
35
102,670.09
27
57,998.20
6
20,366.55
15
83,234.99

Total

[From Thirteenth United States Census. 1
Number Salaried
of estabWage
emlishearners.
ments. ployees.

Amounts.

Value of
products.

$54,128,000 $101,284,000
66,110,000
34,876,000

Capital and
surplus.

$5,533,000
2,595,000

Value added
by manufacture.
$47,156,000
31,234,000

Kentucky
Tennessee
Alabama
Georgia
Mississippi
Florida
Indiana (southern half)
Ohio

All
deposits.

$26,113,656
19,776,106
16,462,822
34,213,906
16,042,650
10,949,641
19,486,875
68,900,225

$77,007,754
67,237,241
47,876,341
78,979,617
51,746,596
30,151,299
100,529,000
474,870,022

Rediscounts and
bills payable.
$2,373,475
2,154,461
2,252,829
14,614,964
3,724,234
868,558
358,500
2,029,400

LOUISVILLE,

KENTUCKY.

197

EXHIBIT NO. 7.
Legend:
Cap.: Federal bank capital supplied by each State (national banks only).
Dep.: Estimated amount of deposits supplied by the national banks of each State.
Red.: Total of funds borrowed, under present system, by the national banks of each State, taken at the penoa when the total for the
whole region is greatest.

Total Federal bank capital supplied by the 624 national banks of this region
Federal bank deposits supplied by these banks

$6, 520,000
14,635,000

Total
Less required reserve of 35 per cent of deposits

21,155,000
5,125,000

Funds available for investment
Estimated funds needed at time of greatest demand

16,030,000
20,975,000

Deficit at time of greatest demand




4,945,000

198

LOCATION"

OF RESERVE DISTRICTS.

EXHIBIT NO. 8.
Legend:
Cap.: Federal bank capital supplied by each State (national banks only).
Dep.: Estimated amount of deposits supplied by the national banks of each State.
Red.: Total of funds borrowed, under present system, by the national banks of each State, taken at a time when the total for the
whole region is greatest.

Total federal bank capital supplied by the 478 national banks of this region
Federal bank deposits supplied by these banks

$4,710,000
11, 280,000

Total
Less required reserve of 35 per cent of deposits

15,990,000
3,850,000

Funds available for investment
Estimated funds needed at time of greatest demand

12,140,000
9,125,000

Surplus reserve




-

3,015,000

LOUISVILLE,

199

KENTUCKY.

EXHIBIT NO. 9.
Legend:
Cap.: Federal bank capital supplied by the national banks of each State.
Dep.: Estimated amount of deposits supplied by the national banks of each State.
Red.: Total of funds borrowed, under present system, by the national banks of each State, taken at the time when the total for the
whole region is greatest.




Total Federal bank capital supplied by the 856
national banks of this region
$10,110,000
Federal bank deposits supplied by these banks.. 27, 280,000
Total
Less required reserve of 35 per cent of deposits..

37, 390, 000
9, 550, 000

Funds available for investment
Estimated funds needed at time of
demand

27,840,000

Surplus reserve

greatest
11,825,000
16,015,000

200

LOCATION" OF RESERVE DISTRICTS.

EXHIBIT NO. 10.
Legend:
Cap.: Federal bank capital supplied by the national banks of each State.
Dep.: Estimated amount of deposits supplied by the national banks of each State.
Red.: Total of funds borrowed, under present system, by the national banks of each State, taken at the time when the total for the
whole region is greatest.

378 National Banks

OHIO
Cap. $5,400,000
Dep. $16,000,000
Red. $2,700,000

144 National Banks

K E N T U C K Y
Cap. $1,500,000
Dep. $3,200,000
Red. $1,500,000

103 National Banks

TENNESSEE
Cap. $1,065,000
Dep. $3,000,000
Red. $2,600,000
67 N a t i o n a l

Banks

t

I

(Estimated one-half .
of State)
§

85 National Banks

MISSISSIPPI

ALABAMA

Cap. $300,000
Dep. $575,000
Red. $500,000

Cap. $915,000
Dep. $1,730,000
Red, $4,200,000




1
WEST
GEORGIA I

Cap. $700,000
Dep. $1,100,000
Red. $5,400,000

)
|
'

I
I
I
I
I

Total Federal bank capital supplied by the 913 national banks
of this region
$10,810,000
Federal bank deposits supplied
by these banks
28,380,000
Total
Less required reserve of 35 per
cent of deposits
Funds available for investment
Estimated funds needed at time
of greatest demand
Surplus reserve

39,190,000
9,930,000
29,260,000
17,225,000
12,035,000

LOUISVILLE, K E N T U C K Y .

201

EXHIBIT NO. 11.
Legend:
Cap.: Federal bank capital supplied by the national banks of each State.
Dep.: Estimated amount of deposits supplied by the national banks of each State.
Bed.: Total of funds borrowed, under present system, by the national banks of each State, at the time when the total for the whole
region is {

Total Federal bank capital supplied by the 1,018 national banks of this region.. $12,120,000
Federal bank deposits supplied by these banks
31,010,000
Total
Less required reserve of 35 per cent of deposits

43,130,000
10,850,000

Funds available for investment
Estimated funds needed at time of greatest demand

32,280,000
23,925,000

Surplus reserve




8,355,000




MEMPHIS, TENN.

203

MEMPHIS, TENN.
BRIEF FILED BY BANKING COMMITTEE OF MEMPHIS.
GEOGRAPHY.

This map is drawn to scale and is geographically
correct. I t includes in the proposed Memphis region,
as indicated by heavy black lines, part of the State
of Kentucky, part of Missouri, Oklahoma as far west
as the one hundredth parallel, Texas as far west as the
one hundredth parallel, and the States of Arkansas,
Louisiana, Mississippi, Tennessee, and Alabama.
Memphis is the most accessible city in this territory
from its various points.
Memphis, because of its 17 lines of railways, reaching in every direction, is in easy access to every point
within the proposed region.
The mail service between Memphis and all points
with a few exceptions, in this region, has a run of 12
hours and less, and the few exceptions less than an
average of 24 hours.
The mail service and the train service in and out of
Memphis are better than those of any other city in
this region.
A circle drawn with Memphis as a center, with a
radius of 300 miles, includes part of 13 States. This
is not true of any other city applying for a regional
reserve bank.
In addition to its train service, Memphis has an
open river service the entire year.
Memphis is the great gateway between the South
east of the river and southwest of the river.
Memphis is within easy distance from the city of
Washington (30 hours).
Geographically, Memphis is the center of the South.
BANKING CAPITAL.

The banking capital and surplus of the national
banks within this section are $174,370,000.
The banking capital and surplus of the State banks
within this region are $188,235,000, or a total of
$362,605,000.
If the national banks alone enter the reserve system, they would give a capital of $10,462,200. If
the State banks entered the system, it would give a
combined capital for the regional bank of $21,756,000.
I t will be seen that there is ample banking capital
in this region to establish a strong regional bank.

State banks $551,493,000, or a total deposit of
$1,116,245,000.
COTTON.

Within this region and within five hours of Memphis
is the center of the cotton-producing area in this country, as well as the lumber-producing area of the South.
Cotton is the great stabilizer of international exchange.
Cotton is the supreme factor in bringing balances
of trade from Europe in favor of the United States.
I t has brought back and it does bring back into the
United States the gold that goes abroad in trade and
that is spent abroad by travelers.
Memphis is the heart of the cotton region of the
South, both geographically and commercially.
Memphis is the largest cotton market in the world,
excepting Liverpool.
Memphis is becoming more and more entrenched
as the leading cotton market, because a system of
warehouses, compression, and freight terminals has
been constructed that enables the handling of cotton
in Memphis at a smaller expense to the farmer than
in any other city.
The supremacy of Memphis as a cotton market is
further shown by the fact that buyers from continental
Europe, from England, and representatives of Japanese houses are permanently located in Memphis, and
that the great cotton manufacturing countries maintain offices in Memphis.
Memphis will become a still greater cotton market,
because the alluvial territory tributary to Memphis,
where the finer grades are grown, is only one-sixth
open.
The cotton grown in this alluvial territory because of
its superiority in length and strength of staple commands a premium over the cotton grown elsewhere
and is more valuable in dollars and cents than the
number of bales based upon an average price would
indicate.
This alluvial cotton more nearly than any other
approximates the sea-island cotton of the Carolina
coast.
Half of the American crop of cotton is grown in the
proposed Memphis regional bank district.
Exchange.

DEPOSITS.

The aggregate deposits of the national banks in
the proposed region are $564,752,000 and of the




The city of Memphis alone originates annually
$56,000,000 of foreign and $38,000,000 of domestic
exchange based on cotton exclusively.
205




to
0
01

o
o
>
H
M
O

o
^

w
w
w
H
w
<1

ui
H

W
M
Q

H
Ui

MEMPHIS,

These amounts represent merely the exchange that
originates in Memphis and do not include the exchange
originating in the territory contiguous to it.
LUMBER.

Memphis is the largest hardwood lumber market in
the world.
In the proposed territory the largest supply of lumber in the United States is located.
The value of the lumber business done in Memphis
alone is approximately $20,000,000 a year, from which
is originated $6,000,000 foreign exchange and $14,000,000 domestic exchange.
I t will be seen, therefore, that by the operation of the
three industries, of which Memphis is the undisputed
leading market place, there is originated from cotton,
from cottonseed products, and from lumber, foreign exchange in the amount of $62,000,000 and domestic
exchange in the amount of $72,000,000, or a total of
foreign and domestic exchange of $134,000,000 annually. This does not include exchange originated in
the territory adjacent to Memphis.
COTTON FINANCE.

Memphis, being the logical city for a regional bank,
located in the cotton-growing States, and, as has been
shown, there being ample banking capital in the proposed region, the success of the bank seems assured,
and its utility and efficiency indicated in no uncertain way. The development of this section since the
bankrupted conditions that followed the Civil War is
the history of all of the South. What has been accomplished under an unscientific and inadequate
monetary system but presages the possibilities of this
section under the operation of the Federal reserve act.
Success in the operation of the Federal reserve
banks in the larger and patriotic sense will be attained
by taking the resources and strength resulting from
reserve mobilization and note-issuing power, to the
producing world and rendering it possible in that
sense for the growers of cotton—our "royal crop 7 '—to
obtain help practically at first hand.
The South, with its own means, is unable to grow
the crop; it is undoubtedly true that the South can
not finance it in the autumn without assistance. The
necessity of shipping actual cash to the South and the
expense involved in the operation of obtaining credit
in the centers, as well as the cost of currency shipments, is well known. An average annually of $20,000,000 of currency is shipped in and out of Memphis.
I t is impossible to give these figures for the region
proposed. We submit upon the figures of Memphis
alone the requirements of the whole region in respect
to necessary credit and currency shipment will run
into very large figures.




207

TENNESSEE.

With the location of a regional bank in Memphis this
unnecessary tribute and expense would be saved to a
territory producing about 6,000,000 bales of cotton.
That region in which Memphis is the logical center
would be served best from Memphis, because of its
superior transportation and mail service. Time in
transit and accessibility considered, Memphis is the
ideal location—the very "hub." The consequent
stringency and the suffering in the fall by other lines
of business due to the paramount necessities of the
cotton business will soon be at an end, for Federal
reserve notes will come into existence just in proportion to the need of them when cotton is moving.
Instead of a big crop movement creating a money
stringency it will bring about a corresponding supply
of Federal-reserve notes. Instead of a production of
vast new wealth from the soil causing a stoppage of
credit, it will, as it should, enlarge and bring attendant
prosperity.
Advantage in the Memphis location is to be considered again when the system is perfected and the
handling of exchanges for all the member banks is in
vogue. Whether at par or subject to a small charge,
there will be a great saving of time and expense by
having the bank for the region proposed at Memphis—
the logical center.
Foreign bills originating in the region proposed
aggregating many millions, will be reduced to credit
at this logical center—Memphis—and made instantly
available without the intervention of any broker or
eastern banker. This saving will be immense to the
producers in the region as proposed and the ideal for
that conversion is at Memphis.
COTTON SEED.

In the proposed region cottonseed products are
produced which in value are about one-fourth of the
cotton fiber.
Memphis itself is the largest manufacturer of cottonseed products in the world.
There originated in Memphis alone $20,000,000
exchange based on cottonseed products.
JOBBING AND DISTRIBUTING.

As a jobbing and distributing center Memphis has
business relations and sells goods in all parts of the
proposed region. As the southern distributing depot
of the great agricultural implement manufacturers—the International Harvester Co. and the United States
Steel Corporation—the trend of trade all through this
section is irresistibly and increasingly toward Memphis.
I t is no exaggeration to say that as a jobbing center
it is the leading city in this region—the natural market
place.

208

LOCATION" OF RESERVE DISTRICTS.

Memphis men were pioneers in the great fruit-growing region of Arkansas and in the development of the
southern tier of counties of Missouri, and Memphis
financed in a very large measure these industries, and
this city still maintains its business relations there.
With cotton, with lumber, with cottonseed products,
and with the fruit and minerals and rice of Arkansas,
the rice and sugar of Louisiana, the iron and coal of
Alabama, the live stock and phosphates and tobacco
of middle Tennessee and the lower tier of counties of
Kentucky there is embraced in the Memphis region a
self-sufficiency, a rotation of liquidation, which can not




fail to make a regional bank located in Memphis not
only helpful, not only an important part in the whole general scheme of regional banks, but one which will yield
to its member banks a dividend on their investment.
Finally, there is nothing of the "boom-town spirit"
in the movement which has for its object the location
of the bank in Memphis. It is believed that the whole
South will be served better from Memphis than from
any other city, but the committees from the Memphis
Clearing House Association and from the Business
Men's Club are actuated by a broad consideration of
the general public good.

MINNEAPOLIS, MINN.

46458°—S. Doc. 485, 63-2




14

209

MINNEAPOLIS, MINN.
FINANCIAL CENTER AND GATEWAY OF THE NORTHWEST.
Compiled by Prof. R. H. HESS, Ph. D., Madison, Wis., under the direction of the Minneapolis Civic and Commerce Association, assisted
by Minneapolis Clearing House Association, Minneapolis Retailers' Association, Minneapolis Produce Exchange, and Chamber of
Commerce.
FOREWORD.

Minneapolis presents herewith the statistical facts
that tell the story of the rapid growth of the country
and of the city. I t offers herewith the reasons why
the Northwest should have a Federal reserve bank and
why Minneapolis is the logical place for its location.
Minneapolis represents the Northwest, the most
prosperous and rapidly growing part of the United
States. The city and the vast country over which
its financial influence extends, are vitally interested
in the new currency law.
The financial legislation known as the Federal
reserve act, Minneapolis business men believe, and
business men of the Northwest as a whole agree, will
work out successfully and beneficially, if in the regional alignment at organization time proper consideration be given to great fundamental economic factors that are existent. The agricultural, commercial,
and financial tendencies will shape conditions of the
near future should also be considered.
The growth of the Northwest and the ever-mere asing financial necessities, find presentation herein.
Billions of dollars are recorded in the annual turnover.
For the consideration of the organization committee
this representation sets forth elsewhere in full detail
the facts concerning Minneapolis as the financial center of the Northwest, the grain-trade center, the manufacturing center, the distributing center, the milling
center, and the freight-traffic center.
WHAT MINNEAPOLIS

PRESENTS.

Minneapolis finances the major portion of the crop
movement from the farms of Minnesota, North and
South Dakota and Montana. I t is the greatest
wholesale market. The lumber trade is financed
and managed from Minneapolis. I t is the world's
greatest milling city. Its predominant position was
gained by and is based upon agriculture. Considered by itself, in Nation to the Northwest, or in re-




lation to St. Paul, it presents these facts and comparisons :
Minneapolis bank clearings, 1913
$1,312,000,000
St. Paul bank clearings, 1913
$530,000,000
Minneapolis bank deposits, not including savings
banks
$101,000,000
St. Paul bank deposits, not including savings banks $51, 000, 000
Minneapolis daily average loaded freight cars received
1,159
St. Paul daily average loaded freight cars received..
787
Minneapolis daily average freight cars shipped
1,101
St. Paul daily average freight cars shipped
519
Minneapolis total loaded carlot in and out traffic, 1913
763,519
St. Paul total loaded carlot in and out traffic, 1913..
410,848
Minneapolis average daily shipments of merchandise
pounds..
3,400, 940
St. Paul average daily shipments of merchandise
pounds..
1,841,390
Capital and surplus in all national banks in Minne$13, 710,000
apolis in 1913
Capital and surplus in all national banks in St. Paul
ki 1913
$9,600,000
The net banking power of Minneapolis is 70 per cent greater than
that of St. Paul.
Minneapolis bank clearings in 1913 exceeded those in Spokane,
Denver and Seattle combined.
Individual deposits in Minneapolis national banks
in 1913
$45,000,000
Increase in individual deposits in Minneapolis national banks since 1900
per cent..
350
Individual deposits in St. Paul national banks, 1913 $35,000, 000
Increase in individual deposits in St. Paul national
banks since 1900
per cent..
200
Balances of Minneapolis national banks in 1913
$35,000,000
Balances of St. Paul national banks in 1913
$17,000,000
Minneapolis has increased bank balances since 1900
by
percent..
500
St. Paul has increased bank balances since 1900 by
per cent..
200
Accounts carried by outside banks in Minneapolis
banks
3,327
Farm output of Minnesota, North and South Dakota
and Montana advanced nearly 400 per cent in
1890-1900.
Farm output of the United States as a whole advanced 184 per cent in 1890-1900.
211

212

LOCATION" OF RESERVE DISTRICTS.

Merchandise cars, forwarded and received, 1913,
Minneapolis
$225,021
Merchandise cars, forwarded and received, 1913, St.
Paul
156,197
Minneapolis-Duluth market in 1913 received 62 per cent of all
grain received in Minneapolis, Duluth, Kansas City, St. Louis, and
Omaha.
THE

NORTHWEST

AND

THE

NEW

CURRENCY

SYSTEM.

(Minneapolis and its relation to the rich and rapidly growing territory whose agricultural, commercial, and industrial activities
the city finances.)

The plea for the location of a Federal reserve bank
in the Northwest is based on the clause in section 2 of
the Federal reserve act, which states:
Provided, That the districts shall be apportioned with due
regard to the convenience and customary course of business and
shall not necessarily be coterminous with any State or States.

The business men of the Northwest are grateful for
consideration accorded by the organization committee
to just claims to recognition as an agricultural, commercial, manufacturing, and banking district in putting into effect a piece of legislation which is confidently believed by the great majority of the people
to be the most important and beneficent, from an
economic standpoint, of any that has been passed in
a half, at least, if not a whole, century.
In that vast new and growing territory extending
from Minneapolis, St. Paul, and Duluth westward
to Puget Sound, amounting in area to over one-fifth
of the United States and consisting of about onesixth of the arable lands of the United States, with
a variety and extent of natural resources not exceeded, if equaled, by any other territory of like
size on this continent, there is a general and universal desire and even eagerness on- the part of all
national and most State banks and trust companies
to enter the system provided by this new currency
bill. No section of the entire country will give this
bill a more cordial welcome or a heartier support.
In speaking of the Northwest, reference is made
particularly to the States of Minnesota, North and
South Dakota, Montana, and Washington, comprising
an area of 447,070 square miles. This is nearly three
times the area of New York, Pennsylvania, and all of
the New England States combined, which is 160,850
square miles.
THE

RAILROADS

AND THE

BANKS.

Through this entire district, running east and
west, are four great trunk lines centering into Minneapolis and St. Paul. These lines are the Minneapolis, St. Paul & Sault Ste. Marie, Great Northern,
Northern Pacific, and Chicago, Milwaukee & St. Paul.
With all of the traffic, freight, passenger, mail and
express, passing over these lines from the west to
the east, trains on these roads enter Minneapolis
from a half hour to three-quarters of an hour sooner




than St. Paul, and depart westward from a half hour
to three-quarters of an hour later. This district is
served by railroads whose mileage has grown from
19,706 miles in 1900 to 29,642 miles at the end of
June 30, 1911, with terminals at Minneapolis and
St. Paul.
Minneapolis and St. Paul constitute a center with
a population, according to the census figures of 1910,
of 516,152 people, of which 301,408 lived in Minneapolis. Minneapolis gained in population from 1900
to 1910, 47 per cent, and St. Paul gained, during the
same period, 31 per cent. At the same rate of increase at the next Federal census in 1920 the population of Minneapolis will be 450,000, while that of
St. Paul will be 280,000.
This commercial, marketing, and banking center
represents essentially an agricultural people, and the
value of total farm products from these States from
1870 to 1910 is shown by the following table:
Value of farm products by decades, with the percentage of increase in
the last 10-year period.
[Totals include the return from, dairy products and live stock.]
Per cent of
increase in
last decade.

f

1910

1900

68
211
162
112
191

Total

$270,000,000
200,000,000
173,000,000
60,500,000
101,300,000

$161,217,000
64,252,000
66,082,000
28,616,000
34,827,000

126

Minnesota
North Dakota
South Dakota
Montana
Washington

804,800,000

354,994,000

1890

1880

1870

$71,238,000
$49,468,000
21,264,000 }
5,648,000
22,047,000
6,273,000
2,024,000
13,674,000
4,212,000

Minnesota
South Dakota
Washington

$27,440,000
400,000
1,376,000
2,000,000

61,352,000

31,216,000

134,496,000

Total

THE

RAPIDLY

GROWING

NORTHWEST.

Minnesota, North and South Dakota, according to
the reports of the Agricultural Department of the
United States, had from 27 to 35 per cent of their
tillable soil under cultivation in 1909. They are credited by the same authority with having 146,000,000
acres capable of cultivation, as against 311,000,000
acres actually cultivated in the entire United States
in 1909. Judging from the tremendous increase in the
production of these States during the last 30 years, it
is hardly possible to overestimate the probable production during the next 10 or 20 years.
The population of these States in 1890 was 2,350,022,
while the 1910 census gives the same States a population of 4,654,695, or a gain of nearly 100 per cent.
The increase in business, agricultural products,
and banking capital and deposits is many times
greater than the increase in population, as will be
shown by the following figures:

213

MINNEAPOLIS; , MINNESOTA.

In 189$ the total deposits of the 216 banks in
Minnesota were $59,370,000; in South Dakota the
deposits of the 190 banks were $9,713,000; total
deposits of the 111 banks in North Dakota were
$9,109,000, or a total for the three States of $78,192,000,
while in 1913 the deposits of the 1,046 banks of
Minnesota were $379,013,000; deposits of the 625
banks in South Dakota were $90,535,000, and of the
751 banks in North Dakota, $90,321,000, or a total
of $559,869,000.
It is not possible to take any similar area in the
United States and show any increase even approximating this.
STATE B A N K S AND T H E N E W

LAW.

Of the 2,978 banks in the five States comprising
the district under consideration, Minnesota, North
and South Dakota, Montana, and Washington, with
a combined capital of $109,944,000 and surplus of
$61,711,000, with deposits of $858,660,000 and loans
to customers of $765,220,000, 652 are national banks
and the remaining 2,326 are State or private banking
institutions. In round numbers, $80,000,000 of the
capital and surplus of the total of $170,000,000 is
held by national banks and the balance, $90,000,000,
by State banks.
The only possible inducement that could be offered
these 2,326 State banks to join the Federal reserve
system is the convenience and usefulness of such a
bank to them, and that convenience and usefulness
lies in making it possible for them to use the system
along the lines of present established relations.
In a map presented herewith is shown the distances between the Twin Cities and the various
supply centers for the Northwest, also the distance
between Chicago and these centers. I t is important to note the fact that currency can reach the
eastern border of Montana within one day from
Minneapolis, while from Chicago the time required
is two days. This means much to the local bank
as well as to the local grain buyer.
Less than a quarter of a century, and, as to a large
part of this territory, less than a decade, measures
the period of its greatest growth and development.
Its past performance and its present prosperity and
condition are but an earnest of what it will do in the
future.
While this representation covers particularly the
agricultural products of this territory, it is important
to consider that Minnesota is the greatest iron-producing State in the Union, and Montana likewise
takes the lead in copper production, and this is clearly
shown by the data and charts herewith.
W E S T E R N CANADA AND T H E

FUTURE.

Enhancing the importance of this district is the
fact that within the last few days the local parliaments of the Provinces of Manitoba, Saskatchewan,




and Alberta have unanimously passed resolutions to
be forwarded to the Dominion Parliament at Ottawa
in favor of removing the Canadian tariff on wheat,
and the present premier of Manitoba, who strenuously opposed reciprocity, and also one of the conservative members of the present cabinet, have come
out strongly in favor of such removal. It is confidently predicted in Canada that it is only a question
of a short time when this tariff will be removed, and
when it is removed Minneapolis will be the cash
market for a large amount of the wheat to be grown
in those Provinces. Thousands of citizens of the
United States are now making their homes in Canada.
Their desire is to trade with the States, and the business of the two countries would be greatly facilitated
by the location of a Federal reserve bank at Minneapolis, the natural gateway to all western Canada.
In addition to being the greatest primary grain
market in the world, Minneapolis is the leading distributing center of agricultural implements to this
entire northwestern country.
In diversity, variety, and volume of production
from the soil, the forests, and the mines no other
district of similar area in the United States can begin
to equal it.
T H E N O R T H W E S T I S OPTIMISTIC.

Even during the natural and temporary business
lull of a presidential year, and of the one immediately following a change of Federal administration, this entire territory, with only negligible exceptions, and Minneapolis its natural metropolis,
were prosperous to an unprecedented degree. With
the passage of the recent tariff bill, fraught with
an almost certain increase in our trade intercourse
with the Canadian Northwest, which is beyond the
fair estimate of the most farsighted and even visionary, supplemented by the beneficial provisions of
the currency bill, its people of the Northwest and
Minneapolis business men believe, of the whole
country, are entering upon a period of safe and sane
development and prosperity, such as we have never
before experienced. Happily, the doleful forebodings of impending business disaster, which in the near
past have been emanating from certain quarters,
have largely passed away, and optimistic predictions as to an immediate awakening in all lines of
business are now being generally made. These predictions are in line with the best judgment of the
business men and bankers in this great district.
SIZE

OF

FARMS

HAS

BEARING

ON

RESERVE

BANK

PROBLEM.

Northwest section requires extraordinary agencies for gathering,
storing, marketing, and financing of agricultural products—
Unique credit system developed.

The prevailing size of farms, taken in connection
with the nature of agricultural industries and con-

214

L O C A T I O N " OF R E S E R V E

ditions of farm tenure, may be indicative of certain
commercial activities and associated banking operations of regional significance.
Minnesota, the Dakotas, and Montana are States
of large farm units. These farms are mainly engaged in specialized production and contribute
strongly to the national food supply and to the export trade. For these reasons this section requires
extraordinary agencies for the gathering, exchange,
storage, and distribution of such products, and for
the financing of great values involved. In certain
instances the elaboration of crude products has
come to constitute large manufacturing industries,
particularly the milling of grains, flax, and forest
products.
These industrial activities and commercial transactions are largely seasonal, and involve relatively
short periods of time and likewise a short-time
financial and* trade turnover, thus constituting the
most substantial basis of bank credit as recognized
by accepted banking theory and modern laws in all
commercial nations.
GRAIN

FINANCING

SYSTEM

DEVELOPED.

The banks, grain houses, and millers of Minneapolis, have of necessity developed a system of
handling and financing grain which is not only
unique and indigenous to this district, but is remarkably similar—almost identical in principle—to
the European discount system, an adaptation of
which is apparently contemplated by the new currency law.
A study of farm credits reveals noteworthy facts
concerning agricultural finances in the country tributary to the Minneapolis money market, namely,
the relatively high and seasonal demand for bank
accommodations as compared with the South and
West, and a comparative absence of tenancy in contrast with equally productive areas in other regions.
In other words, the lands of Minnesota, the Dakotas,
and Montana are cultivated and managed by their
owners; and, in view of the fact that they produce
a magnificent surplus of values each year, it logically follows that the prevalent farm credit is a relatively short-time obligation associated with the improvement and equipment of farms and the financing of crops. Such securities do not lie within the
category of the usual farm mortgage in static communities, or on the margin of settlement where the
farm debt carries the first costs of acquisition and
development.
I t has been demonstrated that Minnesota mortgages are of such nature as to time, purpose, and
amount, as to place them in the highest class of
real-estate securities—indeed, to a degree, analogous
to "commercial paper." 1
i Report on conditions in Minnesota with regard to agricultural credit, by committee appointed by Gov. A. O. Eberhart, Dec. 9, 1913.




DISTRICTS.
PAYMENTS

HAVE

SIGNIFICANCE.

The significance of expenditures for farm labor
in the Northern States becomes apparent when such
payments are considered in connection with the
relatively sparse population, small number and
large size of farms, and the relatively extreme seasonal nature of farming activities in this part of
the United States.
The seasonal demand for labor in the wheat fields
of Kansas is well known. I t is a matter of fact
that the harvest demand for labor in Minnesota
and the Dakotas surpasses that of any other foodproducing section of equal area and importance in
the world.
The seeding and harvesting of wheat in the North
is not coordinated, as in States farther south and
east, with the sequential operations of general farming and the contiguous processes of cultivation, harvesting and feeding characteristic of the corn country.
Furthermore, the share tenant system and stable labor
supply of the southern country reduces to a minimum the need of banking accommodation in aid of
harvest operations.
The seasonal demand for wage payments is a
unique factor of considerable importance in the
necessary funding operations of the banks of the
Northwest. This demand arises out of the necessity for a relatively large number of farm laborers,
for relatively short periods of employment, and at
a relatively high cash wage.
The fact that such expenditures are almost immediately reflected in commercial products, commanding
a world market and stable and certain values, is
especially significant.
FARM

EMPLOYMENT

FIGURES

FROM

CENSUS.

Census reports upon farm employment for 1909,
including approximately 60 per cent of all farms, for
Minnesota, the Dakotas, and Montana as compared
with Kansas, Nebraska, and Iowa are as follows:
Total farm
wages.
Minnesota, Dakotas, and Montana
Kansas, Nebraska, and Iowa
Excess of northern section over southern section
1

MINNEAPOLIS

2

18 per cent.

FINANCES

$69,800,000
59,000,000
i 10,800,000

THE

Average
wages per
farm.
$343
224
2 119

54 per cent.

AGRICULTURAL

NORTH-

WEST.

Grain drafts aggregating $217,909,000 were paid by Minneapolis
banks last year.—Clearings totaled $1,312,000,000.—Currency
shipments amounted to $34,358,000.

If the organization committee shall designate the
territory embracing Minnesota, North and South
Dakota, Montana, and Washington as a Federal reserve district, it will be charged with the further

215

MINNEAPOLIS; , MINNESOTA.

duty, second only in importance, of designating
within such territory a Federal reserve city. Section
2 of the act requires "that the Federal reserve districts shall be apportioned with due regard to the convenience and customary course of business and shall
not necessarily be coterminous with any State or
States/' The real purpose and spirit of this requirement, with respect to the reserve districts, is peculiarly applicable in designating the reserve cities.
It is especially the convenience of the people within
the district and the usual and customary course of
business therein which must necessarily be controlling
in the selection of a reserve city. Merely geographical, educational, social, sentimental, governmental,
or political reasons should have little if any weight
in the selection of such a city.
By the census of 1910 Minneapolis had a population of 301,408, while St. Paul was given 214,744.
This lead in population of Min leapolis over St. Paul
of 86,664 in 1910 (and now in all probability considerably greater) tells but a small part of the real story.
The constantly increasing prestige and precedence
of Minneapolis over St. Paul as the commercial,
manufacturing, and banking center of the Northwest
is so marked and indisputably proven by the facts
and figures of official records as to leave no room for
doubt or discussion.
St. Paul had the advantage of being the older city
and the capital of the State, which, in the days of
small things, gave it an artificial lead over Minneapolis, but commencing with 1880 a decade of real
rivalry and competition set in, at the end of which
Mijineapolis was well in the lead of St. Paul in practically all the lines of activity in which these cities
were engaged, and every year since has but emphasized and increased this lead. Comparisons are said
to be odious, but if this be true, circumstances sometimes make them necessary.
MINNEAPOLIS

THE

LOGICAL

This makes total clearings for the year 1913 for the
two cities of $1,842,927,819, of which Minneapolis
had 72 per cent and St. Paul 28 per cent.
Just in what degree the beginning of the crop
movement annually affects Minneapolis may be seen
in a chart presented herewith, which shows that
weekly clearings rose from $17,776,000 in August,
1913, to $37,616,000 in October, 1913, and in St.
Paul from $9,790,000 in August to $12,588,000 in
October. Comparisons for a period of years show
that these changes always occur at crop moving time,
and that Minneapolis always carries the load of providing money or credit for the Northwest.
In this connection it is an interesting and significant fact that the lowest weekly clearings of Minneapolis exceeded by about $4,000,000 the highest
weekly clearings of St. Paul for the year 1913.
Minneapolis banks handled in 1913 $217,909,000
worth of grain drafts, and shipped out for the purchase of grain in currency $34,358,000, of which
$20,782,000 was shipped during the months of August,
September, October, and November.
There are 2,978 banks in Minnesota, North Dakota,
South Dakota, Montana, and Washington, and the
number of country bank accounts carried in the Minneapolis banks all told during December, 1913,
was 3,329.
The total of out-of-town checks handled by the
banks of Minneapolis during 1913 was $1,328,274,000.
The process of growth in national-bank capital and
surplus of the two cities from 1872 to the present time
is strikingly illustrated by the following figures:
Minneapolis.
Capital.
1872....
1880....
1890....
1900....

$542,000
1,250,000
4,500,000
4,000,000




$41,585
105,588
602,000
697,000

FINANCIAL

Total.

Capital.

Surplus.

$583,585
1,355,588
5,102,000
4,697,000

$1,077,900
2,200.000
5,200,000
3,800,000

$249,021
505,000
1,290,000
667,000

Total.
$1,326,921
2,705,000
6,490,000
4,467,000

STRENGTH

OF

NORTHWEST.

As showing the banking resources of the States of
Minnesota, North Dakota, South Dakota, Montana
and Washington, the following figures are significant:
State and national banks.
Capital.

North Dakota
South Dakota.
Montana
Washington
Total

Minneapolis.

2. Deposits
3. Bank clearings for 1913

Surplus.

PLACE.

That city should be selected which, by reason of
its location, the extent and variety of its business,
the volume of its banking capital and surplus, its
resources in available deposits, as well as its size and
commercial and general importance, is most intimately
connected with, and most closely touches, the various
activities of the whole district.
We wish to show the supremacy of Minneapolis as
the location for a reserve bank as compared with St.
Paul.
First, in reference to its banking capital and surplus at the present time:
1. Banking capital and surplus at present time:
Capital
Surplus

St. Paul.

Year.

Surplus.

$45,426,000
14,015,000
12,644,000
13,591,000
24,268,000

$30,315,000
6,585,000
5,470,000
7,262,000
12,079,000

109,944,000

61,711,000

St. Paul.

$10,680,000
9,723,000

$6,750,000
5,241,000

20,403,000
112,244,000
1,312,412', 257

11,991,000
58,403,000
530,515,562

Total deposits of the banks of the States above enumerated, $858,666,000, with
loans of $765,220,000.

Minneapolis has long financed the Northwest crop
movement. Its ownership of grain elevators, line
lumber yards, branch houses of produce firms, and its

216

LOCATION" OF RESERVE DISTRICTS.

interests in numerous country banks have made
banking records that afford immediate access to the
credit situation in the Northwest.
The intimate acquaintance of the Minneapolis
bankers with the bankers of the entire Northwest and
their personal knowledge of the territory in which they
are operating would be quite indispensable to the
proper management of a Federal reserve bank in this
territory.
THE STRATEGIC

SITUATION.

The strategic position of Minneapolis as a location
for a Federal reserve bank as against the claim of St.
Paul can be shown in no better manner than by stating
that in North Dakota only one town can reach St.
Paul without first passing through Minneapolis. No
cities or towns in Montana or Washington can reach
St. Paul without first passing through Minneapolis.
This is true also of three-fourths of Minnesota and
more than one-half of South Dakota.
Minneapolis especially represents and is the natural
center for all agricultural, commercial, and banking
interests of this entire district. I t is the peculiar
merit of this bill which has so generally commended »t
to the intelligence and conscience of the American
people that it is to be the especial handmaid of the
legitimate industries of the whole country, be they
agricultural, commercial, or manufacturing. Those
speculative activities which are, and always have
been, essentially parasitical are, with rare wisdom, not
fostered by this bill and are only recognized by it to be
expressly excluded from any of the benefits of its
provisions.
The Federal reserve districts and the Federal reserve
cities which your committee will designate will, in
all human probability, remain unchanged for 5, 10, 15
or perhaps 25 years. The important and far-reaching
effect of your work in these respects can not well be
exaggerated. You are charged with the duty of
meeting not merely the necessities of the present but
also of providing for the probable requirements of the
future. The designation of this territory as a Federal
reserve district and of Minneapolis as the reserve city
will best serve the interests of that portion of the
country and fully meet the requirements of the currency bill.
GRAIN

CROPS

OF

THE

NORTHWEST

FLOW

TO

MIN-

NEAPOLIS.

(City is distributing center of agricultural yields of Minnesota,
North Dakota, South Dakota, and Montana, and of all products
manufactured therefrom.)

Minneapolis is the market through which, primarily,
the great bulk of the agricultural products of Minnesota, North and South Dakota, and Montana finds
distribution. An important part of the grain and
agricultural products of northern Iowa and Nebraska
is also distributed through this market center. While




a certain portion of the grain from North Dakota and
northern Minnesota is marketed at Duluth, nearly all
this grain is received and handled at Duluth by branch
offices of Minneapolis grain firms, and nearly all the
financing of the crops of Minnesota, North and South
Dakota, and Montana is arranged for in Minneapolis.
Attention is directed, first, to the character and
value of the products of the farms of these four
States, the extraordinary growth in total quantity
produced, and the value thereof during the past 13
years. It will be shown later that the increase in quantity and value of farm products throughout the
Northwest is vastly greater than the proportional
increase in the Southwest.
Production and value at the farm of wheat, corn,
oats, barley, rye, flaxseed, buckwheat, potatoes, and
hay are given in Grain Exhibit A, hereto attached,
showing the yield and the value for Minnesota, North
and South Dakota, and Montana separately; also the
total production and value of these four States.
These are shown, also, for the crop of 1900, 1903, 1906,
1909, 1912, and 1913. All estimates of production
and farm values are taken as of December 1 each year
and are from the tables compiled by the United States
Department of Agriculture.
The total production of grain and potatoes in the
crop of 1900 for these four States was nearly 242,000,000 bushels, total value being estimated at
$97,690,000.
Contrast this with the production in the crop of
1912 of over 928,000,000 bushels of grain and potatoes, with an estimated value of $421,745,000.
The crop of 1913 in the Northwest was less than
that of 1912, and yet the total production of grain
and potatoes in these four States alone equaled
nearly 759,000,000 bushels, with an estimated value,
December 1, 1913, of $407,413,000. Adding to this
the production of 4,618,000 tons of hay, with an
estimated value of $33,677,000, gives a total farm
value of the 1913 crop of grain, including hay and
potatoes, of $441,090,000.
Receipts of grain and flaxseed at Minneapolis and
Duluth, by crop years, with average price per year
and values for 1900, 1903, 1906, 1909, 1912, and 1913,
are shown in Grain Exhibit B.
Attention is called to the fact that receipts at Minneapolis and Duluth combined for the year 1900
totaled more than 150,000,000 bushels, and that of
the crop of 1912 nearly 337,000,000 bushels were
received by both Minneapolis and Duluth combined,
of which about 207,000,000 bushels were received by
Minneapolis and 130,000,000 bushels by Duluth.
Estimated value of the receipts at Minneapolis
was over $193,000,000 for the crop of 1912 and
$135,742,160 for Duluth, making the total value of
the grain and flaxseed received at these two markets
during the crop year of 1912, $328,783,180.

MINNEAPOLIS; , MINNESOTA.

Minneapolis is a very important shipping center,
and on Grain Exhibit C shipments of grain and flaxseed from Minneapolis, by crop years, with the average price per year and value, are set forth for the crop
years of 1900, 1903, 1906, 1909, 1912, and part of
1913. Total value of the grain and flaxseed shipped
from Minmeapolis in 1900 was slightly over $16,000,000,
while shipments from Minneapolis in the crop of 1912
reached $77,745,000. This shows the enormous
growth of Minneapolis as a shipping and distributing
center during the past 12 years.
T H E F A R M E R S AND COUNTRY

ELEVATORS.

I t is a well-known fact that the farmers and producers of the Northwest desire to market the bulk of
their crop during the months of September, October,
November, and December following the harvest, and
the quantity of farm products thrown upon the market during the crop-moving period is therefore vastly
in excess of the requirements of consumers. This
necessitates the carrying of the surplus until demand
is reached, and it is to the banks of Minneapolis that
those engaged in carrying this grain look for the funds
necessary for this work.
The enormous strain which this situation places
upon the resources of the banks of Minneapolis is
clearly shown by Grain Exhibits D, E, and F.
Grain Exhibit D shows the stocks of grain and
flaxseed (and values) in store in terminal elevators at
Minneapolis on various dates from August 31, 1913, to
January 1, 1914, showing an increase in value from
August 31, when the amount was $8,853,700, to
$21,673,500 on January 1, 1914, an increase of about
$13,000,000 in the value of the stocks in store in Minneapolis in four months. This increase was less, in
fact, during September, October, November, and
December, 1913, than is usually the case for corresponding months of previous years, owing to the fact
that an unusually large quantity of grain was carried
over during the midsummer months, the fact being
that in the majority of years the terminal stocks are
very low during the midsummer months and at the
beginning of the crop movement in the fall.
Grain Exhibit E shows the same features regarding
grain and flaxseed in store in terminal elevators at
Duluth during the same period, the total value of
grain and flaxseed in store at the terminal elevators
on August 31, 1913, being $5,485,690 and on January
1, 1914, $13,042,490.
I n other words, on August 31, 1913, in the terminal
elevators in both Minneapolis and Duluth there was
in store grain and flaxseed to the value of $14,339,390,
and in four months from that date this amount had
been increased to $34,715,990, an increase of over
$20,000,000.
I n Grain Exhibit F is set forth a statement showing
the total number of country grain elevators in the




217

four States tributary to Minneapolis to be 5,239, with
a total capacity of about 104,780,000 bushels. The
total quantity of grain in store in these country elevators, as per the statement in the Northwestern
Miller (in Jan. 7, 1914, issue, p. 26), is from 25,000,000
to 27,000,000 bushels. This represents a value of
about $18,200,000.
Taking the stocks of grain and flaxseed on hand in
the Minneapolis terminal elevators, Duluth terminal
elevators, and country elevators on January 1, 1914,
the total amounts to nearly $53,000,000 in value, and
practically all of the money necessary to carry this
grain is arranged for at Minneapolis.
Country elevators are, as a rule, almost entirely empty
on August 31 of each year, and if to the increase in
value of grain in store in terminal elevators at Minneapolis and Duluth from August 31, 1913, to January
1, 1914 (which, as stated before, is over $20,000,000),
be added the value of country elevator stocks on
hand January 1, 1914, it makes an increase of about
$38,500,000, nearly all of which must be arranged for
by the Minneapolis banks during these four months.
EXPERIENCE IN THE 1907 PANIC.

One of the main purposes of a Federal reserve bank
is to relieve periods of extraordinary strain. I n this
connection attention should be called to the practice
of the farmers and grain producers of storing grain in
country elevators in enormous quantities, taking
storage receipts therefor, which storage receipts are
later surrendered and the grain sold.
Storage receipts outstanding in farmers' hands
during the height of the crop movement of the crop of
1912 were estimated to represent a total value of
$8,000,000. I n case of a panic or other abnormal
condition all of these storage tickets are likely to be
presented and surrendered and demand made upon
the elevator companies for their value. This actually
happened during the fall of 1907, and elevator companies, being unable to secure funds from the Minneapolis banks, were entirely unable to purchase the
grain represented by the storage receipts. I t is a condition such as this that a reserve bank is designed to
care for.
THE GREAT MILLING INDUSTRY.

Minneapolis is well known to be the largest flour
manufacturing center in the world. Grain Exhibit
G sets forth that there were manufactured and
shipped by the Minneapolis mills during the calendar
year 1913, 17,673,725 barrels of flour, with a total
value of $68,043,841. Of this amount 1,764,805 barrels were exported, having a value of $6,794,499.
Some 51 country mills are located in the territory
immediately tributary to Minneapolis, with a total
daily capacity of 40,865 barrels. The output of these
country mills was 62 per cent of their capacity in 1913,
making the total daily output of these country mills

218

LOCATION" OF RESERVE DISTRICTS.

about 25,000 barrels and the yearly output 7,500,000
barrels, with a total value of $28,875,000.
In other words, the Minneapolis flour mills and the
country mills in the territory tributary to Minneapolis
manufactured 25,173,725 barrels of flour during 1913,
with a total value of $96,918,841. Practically all of
this enormous flour manufacturing business is financed
by banks in Minneapolis and the smaller banks of the
Northwest.
L I N S E E D OIL AND MILL

BY-PRODUCTS.

Minneapolis is also the largest linseed-oil manufacturing center in the world. Grain Exhibit H shows
that during the calendar year 1913, 216,222,794
pounds of linseed oil were manufactured, with a total
value of $14,414,853. The oil cake manufactured at
the same time equaled 432,445,590 pounds, with a
value of $6,486,684, making a total value of the products of the linseed oil manufactured of $20,901,537.
About 75 per cent of this oil cake was exported.
The manufacture of ground screenings in Minneapolis is a growing industry, and the 1913 output
was valued at about $500,000.
Stock foods manufactured in Minneapolis during
1913 represent $1,000,000 in value, and the stock
foods manufactured outside of Minneapolis, but
financed in Minneapolis, represent $800,000 in value.
Grain Exhibit I sets forth the importance of the
malting and ground feed industries in Minneapolis,
showing the total value of malt manufactured at Minneapolis during 1913 to have been $3,500,000, and of
ground feed, $1,500,000.
The manufacturing processes directly connected
with the grain and flaxseed receipts at Minneapolis
alone represent a grand total of $95,445,378 of output, the financial arrangements for all of these enterprises being arranged for at Minneapolis.
These in order are made up as follows:
Flour manufacturing
Linseed oil and oil cake
Ground screenings
Stock foods
Ground feed
Malt
Total
THE N E W TARIFF AND WESTERN

,

$68, 043, 841
20, 901, 537
500, 000
1, 000, 000
1, 500, 000
3,500,000
95, 445, 378
CANADA.

In Grain Exhibit J is set forth the production of
grain and flax in the three northwestern Canadian
Provinces of Manitoba, Saskatchewan, and Alberta,
according to the Dorfnnion census for the crop of
1913, the total being 472,109,000 bushels in the crop
of 1913.
The production of grain in western Canada is increasing yearly at a rapid rate. During 1913 about
1,750,000 bushels of grain and flaxseed were received
at Minneapolis from western Canada and the duty
paid, the value being about $1,000,000.




Duluth received since August 1, 1913, about
6,330,000 bushels of grain and flaxseed in bond and
otherwise, with an estimated value of over $4,000,000.
If the duty on Canadian grain entering the United
States is removed, possibly one-fifth of the grain
shipped to Fort William will be shipped to Minneapolis and Duluth. Receipts at Fort William for
the year 1913 would exceed 200,000,000 bushels.
If one-fifth of this amount should be diverted, on
account of the removal of the tariff, to Minneapolis
and Duluth, it would represent a total of about
40,000,000 bushels, with a value of $30,000,000,
which would be added to the value of the grain
necessarily financed by the banks at these market
places.
N O R T H W E S T COMPARED W I T H

SOUTHWEST.

In considering the question of the location of a
Federal reserve bank at Minneapolis the importance
and value of the agricultural products of the Northwest should be compared with similar data regarding
the Southwest, tributary to Kansas City and St.
Louis and Omaha.
Grain Exhibit K sets forth the United States
Government crop reports, showing the production
and farm value of the crops of Missouri, Kansas,
Nebraska, Oklahoma, and Colorado, and the totals
for the same crops, with reference to Minneapolis.
The United States Department of Agriculture estimates of production and values are used as in the
tables for the Northwest, the values being based on
December of each calendar year.
These five States are tributary to the grain markets
of St. Louis, Kansas City, and Omaha.
In Grain Exhibit K your attention is called to the
fact that the total farm value of the products of these
five States for the crop of 1900 was $356,000,000, and
for 1913 $565,591,000; while the value of the products
of the four Northwestern States for 1913 is $441,090,000,
compared with $97,690,000. This shows that the
Northwestern States are increasing at a vastly greater
rate in agricultural importance than is the case with
the Southwestern States.
Grain Exhibit L sets forth the receipts of grain at
St. Louis, Kansas City, and Omaha, the three leading
grain markets of the Southwest, at 201,940,111 bushels,
while receipts of grain at Minneapolis alone for the
same crop year reached 206,812,670 bushels. In other
words, Minneapolis alone received more grain and
flaxseed than all of the three Southwestern markets
combined.
TERMINAL GRAIN

STORAGE.

Grain Exhibit M sets forth the terminal elevator
stocks at Minneapolis and Duluth, as contrasted with
the Southwestern terminals. On April 2, 1913, there
was in store in the terminal elevators at Minneapolis
alone 24,426,000 bushels of grain and flaxseed, and on

MINNEAPOLIS; , MINNESOTA.

the same date there was in store at Duluth 26,102,000
bushels, a total-of 50,528,000 bushels in both markets.
The grand total on these dates for the three Southwestern markets was 19,261,000 bushels. In other
words, Minneapolis alone, or Duluth alone, had in
store in their terminal elevators a very much larger
quantity of grain than the total amount in store in
the terminal elevators at St. Louis, Kansas City, and
Omaha combined, taking the greatest amount in store
on any day in the year for each of these three markets.
Minneapolis has 50 terminal elevators with storage
capacity of 38,550,000 bushels. Duluth and Superior
combined have 34 elevators with a storage capacity
of 32,275,000 bushels. Together, Minneapolis and
Duluth-Superior have a joint terminal capacity of
over 70,000,000 bushels.
Terminal elevator capacity at St. Louis is 10,000,000
bushels; Kansas City, 11,235,000 bushels; Omaha,
6,575,000 bushels. In other words, the terminal elevator capacity of the three Southwestern grain markets
combined is only 27,830,000, as compared with the
terminal capacity of 38,550,000 bushels at Minneapolis
alone.
The flour milling capacity at Minneapolis is 77,160
barrels daily. The milling capacity of the flour mills
at St. Louis, Kansas City, and Omaha, combined, is
26,100 barrels daily, or about one-third of the capacity
at Minneapolis alone.
Grain Exhibit N sets forth the elevator and milling
capacity of all the grain markets of any importance
in the United States and Canada.
One small flour mill of 500 barrels capacity is located
a,t St. Paul. A few country flour mills are financed
from St. Paul. Two very small elevators, with a capacity of about 40,000 bushels, are located at St. Paul,
these elevators being of the size of the ordinary elevator located at a country station.
St. Paul distributes more hay than Minneapolis,
the receipts of hay at Minneapolis amounting to
37,870 tons, with a value of about $378,700, St.
Paul receipts being 209,950 tons, with a value of
$2,099,500. This one agricultural item, however, is
relatively unimportant as compared with the agricultural data generally. Grain receipts at St. Paul
for the year ending August 31, 1913, amounted to
114 cars inspected at St. Paul. About 600 cars were
forwarded from Minneapolis to St. Paul during this
period.
MINNEAPOLIS

AND

THE

"MIDWAY."

Minneapolis, and the offices of the linseed oil companies and the elevator company, whose properties
are located at Minnesota transfer, are with one exception located in Minneapolis, and all of the financial
arrangements connected with their operation are
made at Minneapolis. Finally the enormous total
capacity of the agricultural products of the Northwest, taken into consideration with the commercial
importance of the Northwest along many other lines,
unquestionably entitles the Northwest to one of the
reserve banks. The financial supremacy of Minneapolis over St. Paul, Duluth, or any other city in the
Northwest, is beyond question, and this is true in
many lines, but in none other is this preeminence more
striking than in the distribution of the agricultural
products of the Northwest.
The enormous quantity and value of grain which
must be " carried" by the banks of the Northwest
from the marketing period to the time of consumption, and the exceedingly great value of the output
of flour mills, linseed-oil mills, and other manufacturing industries connected with the movement of the
agricultural product, all indicate Minneapolis as the
city entitled from every standpoint to the location of
a reserve bank, for the reason that it is through this
market place that the grain of the Northwest naturally
flows. The grain distributed through the grain market
of Duluth must all be credited to Minneapolis, since
the banks of Minneapolis are expected to furnish the
funds necessary for the distribution of grain through
that market place.
GRAIN EXHIBIT




A.

Government crop figures.
Minnesota.

North Dakota.

Kind of grain.
Production.

Oats
Rye
Buckwheat
Total
Hay

tons..

Value Dec. 1.

Bushels.
51,509,000
31,795,000
41,908,000
7,276,000
1,037,000
8,637,000
144,000

Crop of 1900.
Wheat

$32,451,000
9,221,000
10,058,000
2,765,000
436,000
2,591,000
82,000

142,306,000
1,424,000

57,604,000
9,893,000

Production.

Value D e c . l .

Bushels.
13,176,000
381,000
6,300,000
1,999,000
84,000
1,537,000

$7,643,000
161,00ft
2,016,000
700,000
35,000
754,000

23,477,000
248,000

11,309,000
1,398,000

67,497,000

Total value

12,707,000

Crop of 1903.
70,653,000
40,727,000
68,889, 000
27,784,000
1,750, 000
6,014,000
8,961,000
75,000

Wheat
Corn
Oats
Rye
Flaxseed

A switching yard, called the Minnesota transfer,
is located in the "Midway," strictly speaking within
the city limits of St. Paul, but immediately adjacent
to the eastern boundary of Minneapolis, and is included within the Minneapolis switching district.
The linseed-oil industries and the terminal elevator
located at the Minnesota transfer are operated from

219

48,751,000
15,477,000
20,643,000
10,280, 000
788,000
4,992, 000
5,467,000
40,000

55,241,000
2,168,000
21,845,000
12,469,000
367,000
13,246,000
2,033,000
17,000

34,802,000
911,000
6,772,000
4,489,000
158,000
10,729,000
976,000
9,000

224, 774,000
1,580,000

106,438,000
10,443,000

107,386,000
178,000

58,846,000
816,000

Buckwheat
Hay Total

tons..

116,881,000

Total value

59,662,000

Crop of 1906.
Wheat
Corn
Oats
Barley
Rye

55,802,000
50,150,000
72,012.000
31,592,000
I, 708,000

36,272,000
17,-051,000
19,414, 000
11,057,000
854,000

77,896,000
4,170, 000
40,170, 000
15,816, 000
434,000

49,075,000
1,627,000
10,932,000
5,220,000
204,000

220

LOCATION" OF RESERVE DISTRICTS.
GRAIN EXHIBIT

A—Continued.

GRAIN EXHIBIT

Government crop figures—Continued.
Minnesota.

Government crop figures—Continued.

North Dakota.
Kind of grain.

Production.
Crop of 1906—Contd.
Flaxseed
Potatoes
Buckwheat
Total
tons..

Value Dec. 1.

Bushels.
4,742,000
12,124,000
64,000

$4,884,000
4,486,000
35,000

228,194,000
1,460,000

94,083,000
8,027,000

Production. Value Dec. 1.

Production. Value Dec. 1.

Production.

$14,802,000
1,135,000

155,780,000
258,000

82,995,000
1,158,000

Total

84,153,000

Value Dec. 1.

Bushels.
622,000
3,980,000
3,543,000

$280,000
3,980,000»
1,240,000

Bushels.
42,000
299,000
2,144,000

$28,000
299,000
1,308,000

182,234,000
333,000

Crop of 1906—Contd.
Rye
Flaxseed
Potatoes

Bushels.
14,511,000
2,467,000

68,244,000
1,495,000

14,852,000
692,000

7,813,000
6,156,000

Total value

102,110,000

Total value
Crop of 1909.

13,969,000

69,739,000

Crop of 1909.
94,080,000
58,812,000
90,288,000
31,600,000
2,280,000
4,500,000
18,400,000
76,000

Wheat
Corn
Oats
Barley
Rye
Flaxseed
Potatoes
Buckwheat

90,317,000
28,818,000
31,601,000
14,852,000
1,368,000
6,750,000
6,440,000
54,000

90,762,000
6,045,000
49,600,000
20,727,000
478,000
14,229,000
4,400,000

83,501,000
3,325,000
16,368,000
8,913,000
272,000
22,340,000
1,980,000

300,036,000
1,622,000

180,200,000
9,732,000

186,241,000
266,000

136,699,000
1,330,000

Wheat
Corn
Oats
Barley
Rye
Flaxseed
Potatoes

47,588,000
65,270,000
43,500,000
19,910,000
578,000
5,640,000
4,000,000

Total
Total
Hay

Montana.

South Dakota.

Kind of grain.

Hay

A—Continued.

'cons..

Hay

tons..

42,829,000
32,635,000
14,790,000
8,960,000
341,000
8,516,000
2,520,000

10,764,000
175,000
15,390,000
1,900,000
58,000
120,000
4,500,000

9,364,000
150,000
6,464,000
1,197,000
44,000
192,000
2,295,000

186,486,000
804,000

110,591,000
4,100,000

32,907,000
995,000

19,706,000
9,950,000

138,029,000
Crop of 1912.

Crop of 1912.
Wheat
Corn
Flaxseed
Barley
Oats
Rye
Potatoes
Buckwheat

67,038,000
78,177,000
4,121,000
42,018,000
122,932,000
6,026,000
33,075,000
126,000

48,938,000
28,925,000
4,945,000
17,227,000
31,162,000
3,013,000
9,261,000
812,000

143,820,000
8,758,000
12,086,000
35,162,000
95,220,000
864,000
6,656,000

99,236,000
3,766,000
13,778,000
12,307,000
20,948,000
406,000
1,864,000

353,513,000
2,541,000

143,553,000
16,262,000

302,566,000
510,000

Wheat
Corn
Flaxseed
Barley
Cfats
Rye
Potatoes

152,305,000
2,805,000

tons..

159,815,000

Total value
Crop of 1918.
Wheat.....
Corn
Oats
Barley
Rye
Flaxseed
Potatoes
Buckwheat
tons..

51,776,000
50,880,000
36,046,000
16,704,000
2,736,000
3,874,000
15,730,000
63,000

78,855,000
10,800,000
57,825,000
25,500,000
1,800,000
7,200,000
5,100,000

359,923,000
2,490,000

177,809,000
16,434,000

187,080,000
388,000

Total value

tons..

194,178,000

57,564,000
5,616,000
17,348,000
10,200,000
810,000
8,712,000
2,836,000

36,008,000
28,248,000
6,015,000
9,686,000
13,098,000
162,000
2,344,000

19,346,000
612,000
5,520,000
1,424,000
22,848,000
235,000
6,105,000

12,381,000
428,000
6,182,000
755,000
7,997,000
141,000
2,442,000

216,509,000
672,000

95,561,000
4,099,000

56,090,000
1,216,000

30,326,000
10,093,000

Total value

40,419,000

99,660,000

Crop of 1913.

155,110,000

67,280,000
96,000,000
112,644,000
34,800,000
5,700,000
3,150,000
30,250,000
99,000

Total
Hay

52,185,000
76,347,000
5,323,000
23,062,000
52,062,000
312,000
6,510,000

Total
Hay

Total
Hay

29,656,000

114,691,000

Total value
189,932,000

Total value

33,175,000
67,320,000
42,135,000
16,765,000
660,000
3,060,000
4,680,000

Wheat
Corn
Oats
Barley
Rye
Flaxseed
Potatoes
Total
Hay....

tons..

24,383,000
37,699,000
14,326,000
7,712,000
312,000
3,672,000
2,948,000

20,673,000
882,000
21,750,000
1,860,000
210,000
3,600,000
5,040,000

19,346,000
679,000
6,960,000
893,000
116,000
4,140,000
3,377,000

167,795,000
552,000

91,052,000
3,588,000

44,015,000
1,188,000

35,511,000
11,405,000
46,916,000

94,640,000

Total value

103,086,000
2,250,000
105,356,000

Summary.
Kind of grain.

South Dakota.

Montana.

i

Kind of grain.
Production.
Crop of 1900.

Bushels.
20,150,000
32,149,000
12,654,000
1,544,000
28,000
4,031,000

Wheat
Corn..;
Oats
Barley
Rye
Potatoes
Total
Hay

Value Dec. 1.

tons..

$11,687,000
9,402,000
3,037,000
479,000
11,000
1,452> 000

70,826,000
2,065,000

26,068,000
8,154,000

Production.

Crop of1903.
Wheat
Corn
Oats
Barley
Rye
Flaxseed
Potatoes

Crop of 1900.

$1,178,000
15,000
1,079,000
97,000

541,000

340,000
2,709,000
5,139,000

29,297,000
14,567,000
7,908,000
3,517,000
282,000
3,125,000
1,559,000

2,785,000
92,000
7,533,000
733,000
47,000
177,000
2,272,, 000

1,838,000
57,000
2,637,000
426,000
30,000
107,000
1,000,000

134,295,000
278,000

60,255,000
1,285,000

13,639,000
698,000

6,095,000
6,150,000

122,274,000
Crop of 1903.

Wheat
Corn
Oats
Barley
Rye
Flaxseed
Potatoes
Buckwheat

175,932,000
84,606,000
125,535,000
51,643,000
2,869,000
23,343,000
16,153,000
92,000

Total
Total
Hay

tons..

97,690,000
24,584,000

Total value

7,848,000

47,253,000
41,619,000
27,268,000
10,657,000
705,000
3,906,000
2,887,000

$52,959,000
18,799,000
16,190,000
4,041,000
482,000
5,137,000
82,000

241,975,000
3,796,000

Total

5,366,000
59,000

Bushels.
1,930,000
24,000
2,569,000
202,000

Hay

tons..

114,688,000
31,012,000
37,960,000
18,712,000
1,258,000
18,953,000
9,002,000
49,000

480,173,000
2,734,000

231,634,000
18,694,000

Total value
Total value

Crop of 1906.

Crop of 1906.
Wheat
Corn
Oats
Barley




250,328,000

12,245,000

61,540,000

Value.

Bushels.
86,765,000
64,619,000
63,431,000
11,021,000
1,149,000
14,846,000
144,000

Wheat
Corn
Oats
Barley
Rye
Potatoes
Buckwheat

34,222,000

Total value

Value Dec. 1.

Production.

41,956,000
62,813,000
46,410,000
22,910,000

25,593,000
18,268,000
11,603,000
7,332,000

3,298,000
94,000
8,502,000
473,000

2,111,000
61,000
3,741,000
265,000

Wheat
Corn
Oats
Barley

.

178,952,000
117,227,000
167,410,000
70,791,000
2,806,000

113,051,000
36,955,000
45,720,000
23,874,000
1,3"66,000

221

MINNEAPOLIS, MINNESOTA.
GRAIN EXHIBIT

A—Continued.

GRAIN EXHIBIT B — C o n t i n u e d .

Receipts at Minneapolis by crop years, with average price per year and
values—Continued.

Government crop figures—Continued.

Production.
Crop of 1906—Continued.

Value.

Bushels.
23,532,000
20,278,000
64,000

Total.
.tons.

Hay.

$23,965,000
8,169,000
35,000

581,060,000
2,743,000

Flaxseed
Potatoes
Buckwheat.

Flaxseed.

Rye.

Summary.
Kind of grain.

253,135,000
16,836,000

Year.

AvBushels. erage
price.

1900
1903
1906
1909
191 2
1913 (4 mos.)

Bushels.

Value.

Total
values.

Average
price.

Value.

814,520 $0.50 $407,260 7,180,060 $1.59 $11,416,296 $77,637,777
8,627,819 92,677,522
875,351 8,216,970 1.05
1,786,430
.49
1,911,730
.57 1,089,686 10,162,240 1.13 11,483,332 97,256,050
2,442,450
.74 1,807,413 9,251,180 1.63 15,079,424 157,926,581
5,948,720
.74 4,402,793 12,363,200 1.89 23,366,448 193,041,020
7,110,000 69,975,000
3,115,640
.54 1,683,000 5,078,450 1.40

269,971,000

Total value.

GRAIN EXHIBIT C.

Crop of 1909.
Wheat
Corn
Oats
Barley
Bye
Flaxseed
Potatoes
Buckwheat.

243,194,000
130,302,000
198,778,000
74,137,000
3,394,000
24,489,000
31,300,000
76,000

226,011,000
64,928,000
69,223,000
33,922,000
. 2,025,000
37,798,000
13,235,000
54,000

Total.

705,670,000
3,687,000

Minneapolis shipments by crop years, with average price per year and
values.

446,996,000
25,112,000

Hay.
Total value.

472,308,000
Crop of 1912.

Wheat
Corn
Flaxseed
Barley
Oats
Rye
Potatoes
Buckwheat.

282,389,000
162,894,000
27,050,000
101,666,000
293,062,000
7,437,000
52,346,000
126,000

196,563,000
61,367,000
30,920,000
39,975,000
73,205,000
3,722,000
15,911,000
82,000

Total.

928,678,000
4,939,000

Year.
Bushels.

1900
1903
1906
1909
191 2
1913 (part o f ) . . .

421,745,000
33,259,000

Hay.
Total value.

Corn.

Wheat.

10,096,970
17,153,160
20,828,130
22,093,800
33,266,350
11,141,060

Average
price.
$0.72
.81
.79
1.16
1.02
.85

Average
price.

Bushels.

Value.

$7,269,818
13,894,060
16,454,062
25,628,808
33,931,677
9,469,901

1,812,250
757,020
3,450,150
5,041,300
4,125,820
3,160,010

Bushels.

$670,533
355,800
1,518,066
3,276,845
2,723,041
2,022,406

Barley.

Oats.
Year.

$0.37
.47
.44
.65
.66
.64

Value.

Average
price.

Average
price.

Bushels.

Value.

Value.

455,004,000
Crop of 1913.

Wheat
Corn
Oats
Barley
Rye
Flaxseed
Potatoes
Buckwheat.

199,983,000
175,002,000
234,354,000
78,925,000
8,370,000
17,010,000
45,070,000
99,000

153,069,000
94,874,000
74,680,000
35,509,000
3,974,000
20,398,000
24,891,000
63,000

Total.

758,813,000
4,618,000

407,458,000
33,677,000

.tons..

Hay.
Total v a l u e .

1900
1903
1906
1909
191 2
1913 (part o f ) . . .

B.

at Minneapolis by crop years, with average price per year and
values.

$0.26
.36
.32
.46
.43
.38

$1,056,825
4,885,999
6,111,158
6,983,444
6,915,024
4,161,150

Rye.
Year.

AvBushels. erage
price.

441,090,000

GRAIN EXHIBIT

4,064,710
13,572,220
19,097,370
15,181,400
16,081,450
10,050,370

1900
1903
1906
1909
191 2
1913 (part of)

3,672,810
8,727,850
10,661,310
20,556,790
33,297,570
14,823,530

$0.42
.48
.44
.60
.78
.57

$1,542,580
4,189,368
4,690,976
12,334,074
25,972,105
8,449,412

Flaxseed.

Value.

533,260 $0.52 $277,295
569,088
1,115,860
.51
1,710,110
.59 1,008,965
1,460,260
.76 1,089,798
4,089,340
.76 3,107,898
2,142,060
.56 1,199,554

Bushels.

Total
values.

Average
price.

Value.

3,295,260 $1.61
3,347,600 1.07
5,196,640 1.15
2,090,050 1.65
2,667,910 1.91
576,310 1.42

$5,303,759 $16,120,810
3,581,932 27,476,247
5,976,136 35,759,363
3,448,583 52,761,552
5,095,708 77,745,453
818,360 26,120,783

P E R C E N T A G E CROP M A R K E T E D A T M I N N E A P O L I S .
Wheat.

Bushels.

81,961,600
85,139,130
92,643,730
101,566,660
125,498,420
54,210,140

Average
price.

Value.

$0.70 $57,373,120
.79 67,259,913
.77 71,435,672
1.14 115,785,992
1.00 125,498,420
.83 44,995,000

Bushels.

9,266,270
3,912,090
5,297,930
7,021,170
6,127,220
4,172,850

Oats.
Year.
Bushels.

1900
1903
1906
1909
191 2
1913 (4 months)

Crop.

Minneapolis,
receipts.

Bushels.
241,975,000
480,094,000
581,060,000
705,670,000
928,298,000

Bushels.
117,381,100
136,361,310
142,080,390
160,446,660
206,812,670

Year.

Year.

1900
1903
1906
1909
191 2
1913 (4 months)

Corn.

12,909,710
25,057,710
20,374,750
17,610,030
21,063,960
12,388,780




Average
price.
$0.24
.34
.30
.44
.41
.36

Average
price.
$0.35
.45
.42
.63
.64
.62

Value.

$3,243,195
1,760,440
2,225,131
4,423,320
3,921,421
2,588,000

1900
1903
1906
1909
1912

$3,098,330
8,510,621
6,112, 425
7,748,413
8,636,224
3,460,000

Bushels.

5,248,940
12,249,040
11,690,010
22,555,170
35,810,150
18,433,770

Average
price.
$0.40
.46
.42
.58
.76
.55

Corn.

Wheat.
Year.
Value.

$2,099,576
5,634,378
4,909,804
13,081,999
27,215,714
10,139,000

0.485
.284
.244
.227
.222

Receipts at Duluth by crop years, with average price per year and values.

Barley.

Value.

Percentage.

Bushels.

1900
1903
1906
1909
191 2
1913 (part o f ) . . .

19,434,000
29,063,000
52,827,000
58,294,000
86,084,000
52,198,000

Average
price.

Value.

$0. 70 $13,603,800
.79 22,959, 770
.77 40,676,790
1.14 66,455,160
1.00 86,084,000
.83 43,324,340

Bushels.

6,489,000
12,000
129,000
920,000
446,867
73,000

Average
price.
$0.35
.45
.42
.63
.64
.62

Value.

$2,271,150
5,400
54,180
579,600
286,000
45,260

222

LOCATION" OF RESERVE DISTRICTS.
GRAIN EXHIBIT

C—Continued.

GRAIN EXHIBIT

Receipts at Duluth by crop years, with average price per year and
values—Continued.

D—Continued.

Minneapolis stocks, by months—Continued.
Flax.

Rye.
Oats.

Barley.

Average
price.

Average
price.

Date.
Bushels.

Year.
Bushels.

1900
1903
1906
1909
191 2
1913 ( p a r t o f ) . . .

1,637,000
4,940,000
4,608,000
8,167,000
9,340,000
4,349,000

$0.24
.34
.30
.44
.41
.36

2,452,000
6,754,000
10,450,000
12,757,000
14,600,000
9,363,000

$392,880
1,679,600
1,382,400
3,593,480
3,829,400
1,565,640

AvBushels. erage
price.

Value.

Average
price.

Bushels.

1900
759,000 $0.5CI $379,500 6,237,000 $1.59
1903
932,000
.45)
456,680 18,785,000 1.05
1906
654,000
.5/ '
372,780 20,952,000 1.13
738,000
.74\
546,120 9,826,000 1.63
1909
2,339,000
.74I 1,730,860 17,310,000 1.89
191 2
953,000
.54i
514,620 7,539,000 1.40
1913 (part of)

Bushels.

Value.

Value.

$0.40
.46
.42
.58
.76
.55

$980,800
3,106,840
4,389,000
7,399,060
11,096,000
5,149,650

Flaxseed.

Rye.
Year.

Bushels.

Value.

Value.

Aug. 31.1913
Oct. 4,1913
N o v . 1,1913
Dec. 1,1913
Jan. 1,1914

128,757
374,072
586,084
752,573
748,120

36,643
68,574
115,917
238,773
210,021

$53,500
96,700
163,400
429,500
304,530

100,000
200,000
200,000
300,000
300,000

61,000
114,000
108,000
159,000
159,000

40,000
70,000
100,000
150,000
150,000

56,000
102,200
141,000
201,500
217,500

Private houses (estimated).
Aug. 31,1913
Oct. 1,1913
Nov. 1,1913
Dec. 1,1913
Jan. 1,1914

Total
values.

RECAPITULATION.

Value.

9,916,830 $27,544,960
19,724,050 47,932,540
23,675,760 70,550,910
16,016,380 94,589,800
32,715,900 135,742,160
10,554,600 61,154,110

$78,500
213,200
316,500
398,900
396,500

Aug. 31.1913
Oct. 1,1913
N o v . 1,1913
Dec. 1,1913
Jan. 1,1914

$8,853,700
13,618,900
17,219,600
19,181,600
21,673,500
GRAIN EXHIBIT

E.

Duluth stocks, by months.
PERCENTAGE CROP M A R K E T E D AT MINNEAPOLIS A N D D U L U T H .
Corn.

Wheat.
Duluth.
Year.

Minneapolis.

Crop.
PerPerReceipts. centage. Receipts. centage.

1900....
1903....
1906 . . .
1909....
1912....
1913....

Bushels.
Bushels.
227,129,000 37,008,000
463,941,000 60,486,000
564,907,000 89,620,000
674,370,000 89,702,000
875,952,000 130,120,000
713,743,000 74,475,000

0.163
.130
.159
.133
.149
.104

Bushels.
117,381,100
136,361,310
142,080,390
160,446,660
206,812,670

Date.
Bushels.

Total both
Permarkets. centage.

Bushels.
0.515 150,389,100
.298 196,847,310
.254 231,700,390
.238 250,148,660
.236 336,932,670
Only 4 i
months.

0.678
.428
.413
.373
.385

Aug. 31,1913
Oct. 4,1913
Nov. 1,1913
Dec. 1,1913
Jan. 1,1914

Value.

3,083,000
9,391,000
11,548,000
10,440,000
12,260,000

Wheat.

Aug. 31,1913
Oct. 4,1913
Nov. 1,1913
Dec. 1,1913
Jan. 1,1914

Value.

Bushels.

Value.

420,000
1,786,000
1.323,000
1,093,000
1,214,000

$168,000
812,000
669,750 2,065,000
467,930 1,805,000
400,310
936,000
341,600
911,000

$503,440
1,280,300
1,206,750
524,160
510,160

Com.
Value.

Bushels.

$5,962,700
9,209,200
11,999,300
13,406,000
15,811,800

16,826
37,617
18,140
21,388
178,813

$11,800
24,800
11,200
13,300
100,200

500,000
800,000
1,000,000
1,000,000
1,500,000

425,000
680,000
830,000
830,000
1,245,000

10,000
20,000
20,000
20,000
80,000

7,000
13,200
13,200
12,400
45,600

Private houses (estimated).

Date.
Bushels.
Aug. 31,1913
Oct. 4,1913
Nov. 1,1913

85,000
331,000
368,000
312,000
332,000

Jan. 1,1914

Oats.

Barley.

Flax.

Rye.

Value.

7,014,978
10,834,386
14,456,972
16,151,795
19,050,337

Aug. 31,1913
Oct. 1,1913
Nov. 1,1913
Dec. 1,1913
Jan. 1,1914

Barley.

Oats.

Date.

Aug. 31.1913
Oct. 4,1913
Nov. 1,1913
Dec. 1,1913
Jan. 1,1914

$2,520,550
7,794,530
9,584,640
8,665,200
10,298,400

D.

Minneapolis stocks, by months.

Bushels.

Value.

Date.
Bushels.

GRAIN EXHIBIT

Bushels.

Value.
$52,700
186,360
198,720
162,240
170,980

Bushels.

Value.

1,535,000 $2,241,000
861,000 1,231,000
1,646,000 2,239,000
2,668,000 3,721,722
1,169,000 1,721,350

RECAPITULATION AT DULUTH.
Aug. 31,1913
Oct. 4,1913
Nov. 1,1913
Dec. 1,1913
Jan. 1,1914

$5,485,690
11,161,940
13,696,020
13,473,632
13,042,490

Date.
Bushels.
Aug. 31,1913
Oct. 4,1913
Nov. 1,1913
Dec. 1,1913
Jan. 1,1914

1,777,606
3,124,089
3,355,890
3,452,082 ,
3,157,267

Value.

Bushels.

$665,500
129,953
1,124,700
768,055
1,174,600 1,155,489
1,208,200 1,224,244
1,041,900 1,215,311

Value.
$80,600
483,900
670,200
673,300
668,500




Aug. 31,1913
Oct. 4, 1913
Nov. 1, 1913
Dec. 1, 1913
Jan. 1,1914

DULUTH.
$14,339,390
24,780,840
30,915,620
32,655,232
34,715,990

RECAPITULATION
MINNEAPOLIS
AND
DULUTH
TERMINAL
STOCKS A N D C O U N T R Y E L E V A T O R STOCKS.

Private houses (estimated).
Aug. 31,1913
Oct. 1,1913
Nov. 1,1913
Dec. 1,1913
Jan. 1,1914

R E C A P I T U L A T I O N OF T E R M I N A L S M I N N E A P O L I S A N D

•

1,700,000
3,100,000
3,300,000
3,400,000
3,100,000

646,000
1,116,700
1,155,000
1,190,000
1,023,000

1,300,000
700,000
1,100,000
1,200,000
1,200,000

806,000
441,000
638,000
660,000
660,000

Jan. 1,1914:
Minneapolis terminals
Duluth terminals
Country elevator stocks

$21,673,500
13,042,490
18,200,000
52,915,990

223

MINNEAPOLIS; , MINNESOTA.
GRAIN EXHIBIT

On basis of 20 per cent Fort William and Port Arthur receipts:
Wheat, 21,440,140 bushels
Oats, 6,904,690 bushels
Barley, 1,971,840 bushels
Flax, 3,610,230 bushels

F.

Capacity of country elevators, by States.
Stock in country elevators.
State.

Elevators.

Capacity.

1,536
1,883
1,160
660
5,239

Minnesota
North Dakota
South Dakota
Montana
Total

Bushels.
30,720,000
37,660,000
23,200,000
13,200,000
104,780,000

[As per statement in Northwestern Miller, issue of Jan. 7,1914, p. 26.]
Stock..
Value..

.bushels.. 25,000,000 to 27,000,000

Total
Canadian receipts at Duluth from Aug. 1,1913, to Jan. 3,1914:
Wheat, 2,580,000 bushels, at $0.87
Oats, 2,845,000 bushels, at $0.40
Barley, 694,000 bushels, at $0.59
Flaxseed, 250,000 bushels, at $1.44
;

27,103,475
$2,244,600
1,138,000
409,460
360,000

Total
Canadian receipts at Minneapolis for calendar year 1913:
Wheat, 78,080 bushels, at $0.85
Oats, 1,314,000 bushels, at $0.38
Barley, 58,050 bushels, at $0.51
Flaxseed, 277,290 bushels, at $1.42

$18,200,000

GRAIN EXHIBIT

$18,229,219
2,623,782
1,123,948
5,126,526

4,152,060
$66,368
499,320
30,088
393,752

Total

989,528

G.

GRAIN EXHIBIT

K.

Value offlour output qf Minneapolis.
Year.

Barrels.

Average
price per
barrel.

Government crop reports, southwest tributary to Kansas City, St. Louis,
and Omaha.
Value.
Missouri.

1900
1903
1906
1909
1912
191 3

15,082,725
15,582,785
13,825,795
14,867,245
17,031,935
17,673,725

$3.08
3.50
3.46
4.93
4.46
3.85

Production.

1900
1903
1906
1909
191 2
191 3

4,702,485
3,081,115
2,425,035
1,645,970
1,132,640
1,764,805

3.50
3.46
4.93
4.46
3.85

14,483,653
10,783,903
8,390,621
8,114,632
6,051,574
6,794,499

Production.

Value Dec. 1.

Bushels.
18,847,000
180,711,000
24,696,000
15,000
135,000

$11,874,000
57,828,000
5,680,000
7,000
69,000

Bushels.
82,489,000
163,871,000
43,064,000
4,187,000
1,923,000

$45,369,000
52,439,000
9,905,000
1,382,000
827,000

10,107,000
32,000

3,538,000
22,000

7,247,000

3,479,000

234,543,000
2,769,000

Oats
Barley
Rye
Flax
Potatoes
Buckwheat
Total

Fifty-one country mills w i t h daily capacity of40,865 barrels. These country mills
average 62 per cent active in 1913, making daily output 25,000 barrels.
Yearly output—7,500,000 barrels, at $3.85 average price per barrel—$28,875,000.
Total output Minneapolis mills and country mills tributary to Minneapolis—
25,173,725 barrels, at $3.85 average price per barrel—$96,918,841.

Value Dec. 1.

79,018,000
19,238,000

302,781,000
4,032,000

113,401,000
18,344,000

Crop year 1900.
Wheat

EXPORTS.

Kansas.

Kind of grain.

$46,454,793
54,539,747
46,837,250
73,295,517
75,960,230
68,043,841

Total values

98,256,000

131,745,000

Crop year 1908.

$14,414,853
6,486,684

Wheat
Corn
Oats
Barley
Rye
Flax
Potatoes
Buckwheat

22,195,000
202,840,000
17,402,000
34,000
280,000
347,000
5,741,000
34,000

15,759,000
68,966,000
5,569,000
18,000
154,000
291,000
4,363,000
26,000

87,250,000
171,687,000
26,012,000
4,388,000
1,341,000
891,000
4,185,000
36,000

51,478,000
61,808,000
7,804,000
1,492,000
590,000
704,000
3,557,000
28,000

20,901,537

GRAIN EXHIBIT

Total

248,873,000
4,764,000

95,146,000
31,699,000

295,700,000
2,866,000

127,461,000
13,782,000

H.

(1913.)
Linseed oil, 216,222,794 pounds, at 6.666 cents per pound
Oil cake, 432,445,590 pounds, at 1.5 cents per pound
About 75 per cent exported.
Ground screenings:
Capacity per day
Value of output
Stock foods:
Value of output
Outside plants

Total values
tons..

$1,000,000
800,000

financed

GRAIN EXHIBIT

134
$500,000

I.

Malting capacity of Minneapolis
Value
Ground-feed mills, capacity
Value of product

bushels..
tons..

4,500,000
$3,500,000
800,000
$1,500,000

126,845,000

Wheat
Corn
Oats
Barley
Rve
Flax
Potatoes
Buckwheat

31,735,000
228,523,000
14,686,000
40,000
285,000
263,000
7,160,000
28,000

Total
Hay

tons..

21,263,000
86,839,000
4,847,000
20,000
171,000
244,000
4,081,000
20,000

81,831,000
195,075,000
24,780,000
8,437,000
1,027,000
533,000
6,715,000
23,000

80,440,000
62,424,000
7,682,000
2,785,000
514,000
470,000
4,701,000
17,000

282,720,000
2,129,000

117,485,000
21,282,000

318,421,000
2,207,000

159,033,000
13,794,000

Total values
GRAIN EXHIBIT J .

Canadian crops.

Total
472,109,000
Receipts at Fort William and Port Arthur, crop year ending Aug. 31,
1913:
Wheat
bushels.. 107,230,690
Oats
d o . . . . 34,523,460
Barley
do....
9,857,206
Flax
d o . . . . 18,051,139




138,767,000

172,827,000

Crop year 1909.

Estimate of Dominion Census three Northwest Provinces, 1913 crop:
Wheat
bushels.. 189,116,000
Oats
d o . . . . 239,595,000
Barley
d o . . . . 27,904,000
Rye
do....
686,000
Flax
d o . . . . 14,808,000

Total

141,243,000

Crop year 1906.

169,664,495

Wheat
Corn
Oats
Barley
Rye
Flax
Potatoes
Buckwheat

28,562,000
213,840,000
18,630,000
50,000
225,000
202,000
7,480,000
42,000

Total
Hay

tons..

29,990,000
126,166,000
8,011,000
34,000
184,000
232,000
5,012,000
37,000

87,203,000
154,282,000
27,185,000
4,860,000
568,000
385,000
7,189,000
14,000

83,715,000
83,225,000
11,690,000
2,576,000
426,000
424,000
5,679,000
14,000

269,031,000
3,719,000

169,666,000
30,868,000

281,629,000
2,652,000

187,806,000
15,912,000

Total values

200,534,000

203,718,000

Crop year 1912.
Wheat
Corn
Oats
Barley
Rye

23,750,000
243,904,000
37,125,000
149,000
222,000

21,375,000
112,196,000
12,994,000
98,000
178,000

92,290,000
174,225,000
55,040,000
4,136,000
477,000

68,295,000
69,690,000
19,264,000
1,654,000
324,000

224

LOCATION" OF RESERVE DISTRICTS.
GRAIN EXHIBIT

K—Continued.

GRAIN EXHIBIT

Government crop reports, southwest tributary to Kansas City, St.

Louis, and Omaha—Continued.
Missouri.

Louis, and Omaha—Continued.

Kansas.
Kind of grain.

Production. Value Dec. 1,

Production. Value Dec. 1.

Production. Value Dec. 1. Production. Value Dec. 1.
Crop year 1911.

Crop year 1912—Con.
Bushels.
72,000
30,000
7,980,000

Total..
Hay

tons.

$79,000
28,000
5,506,000

Bushels.
300,000
16,000
5,740,000

$390,000
12,000
4,190,000

313,232,000
4,143,000

152,454,000
40,601,000

332,224,000

163,819,000

!£;:::::::::::::::::::
Potatoes

163,819,000

Buckwheat

Total values

193,055,000

Wheat
Corn
Oats
Barley

Crop year 1918.

Total

Potatoes
Buckwheat..

39,586,000
129,062,000
26,500,000
110,000
240,000
50,000
22,000
3,230,000

33,252,000
95,506,000
11,925,000
66,000
180,000
58,000
19,000
3,004,000

86,983,000
23,424,000
34,320,000
1,944,000
630,000
300,000
10,000
2,920,000

68,717,000
18,271,000
15,444,000
1,069,000
472,000
348,000
8,000
2,657,000

Total..

198,800,000

144,010,000
26,100,000

150,531,000
13,500,000

106,986,000
16,875,000

Wheat
Corn
Oats

Ee;
Hay

Oklahoma.

Nebraska.

Kind of grain.

Flax
Potatoes
Buckwheat..

K—Continued.

Government crop reports, southwdst tributary to Kansas City, St.

1,800,000

Total values..

170,110,000

123,861,000

Hay

tons..

Bushels.
55,052,000
182,616,000
55,510,000
2,486,000
880,000
19,000
18,000
9,440,000

$37,985,000
67,568,000
16,653,000
1,044,000
493,000
24,000
16,000
4,814,000

306,021,000
1,552,000

128,597,000
13,037,000

Total values

Production.

1,618,000
66,582,000
3,559,000
70,141,000

?£-•:::::::::::::::::
Potatoes
Buckwheat

62,325,000
114,150,000
59,625,000
1,760,000
1,740,000
54,000
20,000
5,654,000

44,251,000
74,198,000
22,658,000
876,000
1,044,000
59,000
16,000
4,418,000

17,500,000
52,250,000
18,540,000
63,000
48,000
1,920,000

2,016,000

147,506,000
14,572,000

90,321,000
382,000

62,420,000
3,973,000

Total values
Value Dec. 1.

1,740,000
147,425,000
481,000

245,338,000
1,675,000

Oats
Barley

Total

Production.

$15,072,000
41,770,000
7,988,000
80,000
42,000
12,000

141,634,000

Crop year 1918.
Wheat

Kind of grain.

Bushels.
20,096,000
101,878,000
23,494,000
160,000
48,000
9,000

14,350,000
37,620,000
8,343,000
50,000
41,000

162,078,000

Value Dec. 1.

66,393,000
Total.

Colorado.
Kind of grain.
Production.

Bushels.
24,802,000
210,431,000
37,779,000
582,000
868,000

$13,146,000
65,234,000
9,067,000
197,000
347,000

Buckwheat..

9,665,000
83,000

4,736,000
53,000

Total..

284,210,000
2,640,000

92,780,000
13,594,000

Bushels.
18,658,000
14,145,000

Wheat
Cora
Oats
Barley

fc:::::
Potatoes
Hay..
Total T

$9,889,000
3,678,000

fc:::::
Potatoes
Buckwheat..
Hay..

$4,253,000
1,531,000
297,000

Bushels.
152,004,000
572,347,000
106,170,000
4,784,000
2,926,000

$84,531,000
180,710,000
24,949,000
1,586,000
1,243,000

27,019,000
115,000

11,753,000
75,000

865,365,000
9,466,000

304,847,000
51,234,000

fc:::::
Potatoes
13,567,000

Buckwheat.

13,567,000

32,803,000

Hay

17,432,000
29,613,000
5,019,000

Crop year 1903.
Wheat
Corn
Oats
Barley

11,028,000

Total..

106,374,000

25,000

42,158,000
172,380,000
59,427,000
1,705,000
2,229,000
189,000
5,159,000
18,000

22,765,000
48,267,000
16,046,000
563,000
825,000
162,000
3,353,000
13,000

27,480,000
76,822,000
14,564,000

283,265,000
945,000

91,994,000
4,230,000

121,123,000
381,000

67,000
555,000
1,635,000

3*6
466

452,000
1,330,000

Total \

96,222,000

6,081,000
58,000

356,081,000

6,139,000

Total

fc:::::::::::::
Potatoes
Buckwheat

Total..

Value Dec. 1.

Crop year 1900.
Wheat
Corn
Oats
Barley

Crop year 1908.
Wheat
Corn
Oats
Barley

Production.

Bushels.
7,208,000
3,189,000
631,000

Crop year 1900.

Value Dec. 1.

7,424,000

4,890,000

4,594,000
725,000
53,000

1,884,000
442,000
32,000

7,360,000

4,416.000

186,507,000
625,951,000
121,999,000
6,852,000
3,970,000
1,982,000
24,080,000

88,000

112,324,000
209,854,000
36,322,000
2,515,000
1,635,000
1,609,000
17,019,000
67,000

22,378,000
1,593,000

12,864,000
11,914,000

971,429,000
10,549,000

381,345,000
63,835,000

2,222,000

1,200,000

53,880,000

2,210,000

Total
Hay

tons.

56,090,000
Total values...

445,180,000

24,778,000

Crop year 1906.
Wheat
Corn
Oats
Barley

fc:::::
Potatoes
Buckwheat..
Total..
Hay..

52,290,000
249,783,000
72,275,000
1^995,000
142,000
7,355,000
13,000

50,172,000
72,437,000
18,792,000
1,042,000
878,000
134,000
3,825,000
8,000

387,213,000
1,890,000

147,288,000
10,584,000

Total values...

21,544,000
134,231,000
19,487,000
467,000
42,000

12,057,000
41,639,000
5,754,000
165,000
24,000

* ", 8 4 5 6 *"i,'4i2*666
" i 2, 6"
" "

Potatoes
Buckwheat..
Total..
Hay..
Total

177,595,000
484,000

157,872,000

61,051,000
2,762,000




Total
Hay

63,813,000

49,650,000
194,060,000
61,825,000
2,640,000
1,320,000
136,000
8,190,000
16,000

44,188,000
97,030,000
21,639,000
1,135,000
805,000
166,000
4,914,000
14,000

15,680,000
101,150,000
15,950,000
690,000
54,000
60,000
1,890,000

15,837,000
55,632,000
7,337,000
448,000
50,000
72,000
1,796,000

317,837,000
2,325,000

169,891,000
13,950,000

135,474,000
810,000

81,172,000
5,913,000

183,841,000

fc:::::::::::::::
Potatoes

195,667,000
810,770,000
137,191,000
13,064,000
3,393,000
938,000
28,925,000
64,000

169,306,000
264,918,000
39,759,000
4,423,000
1,612,000
848,000

12,715,000 1,190,012,000
8,307,000
15,168,000

497,572,000
63,590,000

27,883,000

561,162,000

8,267,000
3,158,000
5,963,000
760,000
44,000

5,374,000
1,579,000
2,684,000
411,000
25,000

5,871,000

2,642,000

Buckwheat

Crop year 1909.
Wheat
Corn
Oats
Barley

Crop year 1906.
Wheat
Corn
Oats
Barley

87,085,000

tons.

24,063,000
1,597,000

Total values..
Crop year 1909.
Wheat
Corn
Oats
Barley
Potatoes
Buckwheat
Total..
Hay..
Total

45,000

191,853,000
666,542,000
131,038,000
9,176,000
2,255,000
783,000
35,149,000
72,000

183,735,000
364,397,000
52,624,000
4,811,000
1,529,000
894,000
23,329,000
65,000

22,849,000 1,036,868,000
11,266,000
17,600,000

631,384,000
84,243,000

40,449,000

715,627,000

10,758,000
3,267,000
7,448,000
936,000
88,000

10,005,000
2,287,000
3,947,000

10,400,000

5,928,000

32,897,000
1,760,000

16,661,000

618,000
64,000

225

MINNEAPOLIS; , MINNESOTA.
GRAIN EXHIBIT

GRAIN EXHIBIT M — C o n t i n u e d .

K—Continued.

Government crop reports, southwest tributary to Kansas City, St.
Louis, and Omaha—Continued.
Colorado.

High-point terminal stocks—Contrasting Minneapolis and Duluth
with southwestern terminals—Continued.

Total.

Barley.

Flax.

Bushels.
675,000
1,537,000

Bushels.
425,000
5,400,000

Bushels.
24,426,000
26,102,000

2,212,000

5,825,000

50,528,000

Point.

Total.

Kind of grain.
Production.

533,724,000
73,771,000

38,846,000

607,495,000

3,311,000

43,739,000
1,905,000

Total values
Crop year 1918.
Wheat
Corn
Oats
Barley
Rye
Flax
Potatoes
Buckwheat

$150,733,000
295,592,000
61,616,000
4,358,000
1,305,000
625,000
56,000
19,439,000

$8,006,000
4,368,000
4,717,000
1,482,000
268,000
120,000

8,075,000

tons..

Bushels.
202,156,000
711,359,000
183,581,000
9,895,000
2,115,000
496,000
64,000
32,975,000

22,272,000 1,142,641,000
8,081,000
16,574,000

Bushels.
10,968,000
8,736,000
12,412,000
2,964,000
488,000
96,000

Total

Total
South

terminals.

Kansas City
Omaha
St. Louis

17,000
3,000

9,200,000

tons..

7,551,000
4,599,000
4,697,000
1,820,000
204,000
58,000

39,945,000
1,824,000

5,980,000

168,121,000
230,194,000
63,067,000
3,867,000
1,941,000
523,000
43,000
18,075,000

24,909,000
18,240,000

Total values

216,074,000
325,186,000
149,660,000
7,127,000
2,998,000
454,000
52,000
22,934,000
724,485,000
19,181,000

485,831,000
79,760,000

43,149,000

565,591,000

L.

Elevators.

Number.

1903

1906

1909

Bushels.
23,211,240
23,748,360
11,900,640
1,926,750
543,460

Bushels.
24,293,990
18,743,270
17,714,330
3,108,000
1,023,310

Bushels.
21,607,370
37,385,670
28,431,200
2,623,000
499,830

Bushels.
22,661,830
24,398,370
20,651,690
2,130,090

Bushels.
30,540,370
25,979,030
21,529,690
1,760,250
186,270

61,330,450
0.007

64,882,900
0.068

90,547,070
0.078

70,131,570
0.069

79,996,610
0.071

24,018,400
16,092,800
8,358,000
33,000
376,800

39,159,900
14,187,600
4,675,200
581,000
247,200

36,617,700
16,024,800
8,629,500
404,800
161,700

43,527,700
17,619,400
5,451,500
394,200
79,200

43,719,600
19,522,500
6,682,700
186,200
147,400

48,869,000
0.058

58,850,900
0.062

61,838,500
0.054

67,072,000
0.068

70,238,400
0.063

3,587,500
8,834,740
3,517,250
178,800
316,000

9,981,600
18,493,200
13,644,800
38,000
140,000

9,544,800
23,475,000
9,972,000
693,000
195,700

16,868,800
20,536,800
12,903,000
1,192,000
183,700

16,433,290
0.019

Total....
Per cent.

42,597,600
0.038

43,880,500
0.044

51,685,100
0.048

Total....
Per cent.

1912

GRAIN EXHIBIT M.

High-point

terminal stocks—Contrasting Minneapolis and Duluth
with southwestern terminals.
Date.

Duluth

Corn.

Oats.

Bushels.
21,668,000
18,156,000

Bushels.
64,000
44,000

Bushels.
1,308,000
807,000

Bushels.
286,000
158,000

39,824,000

Minneapolis

Wheat.

Apr. 2,1913
do

Point.

108,000

2,115,000

Barrels.
77,160
7,000
7,500
14,600
4,000

Minneapolis terminals
Southwest terminals

bushels.. 38,550,000
do
27,830,000
GRAIN EXHIBIT

8,881,000
2,020,000
3,345,000

118,000
514,000
150,000

746,000
2,243,000
179,000

"20," 000
25,000

14,246,000

782,000

3,168,000

45,000

N.

Elevator and milling capacity in various cities.
Flour mills.

Elevators.

Cities.

Minneapolis
Chicago
Duluth-Superior
Buffalo
New York
St. Louis
Kansas City
Baltimore
Philadelphia
Milwaukee
Boston
N e w Orleans
Newport News
Montreal
Detroit
Winnipeg
Cincinnati
Fort William and Port Arthur.
Galveston
Cleveland
Toledo
Peoria
Omaha
Kenoraand Keewatin, Ontario..

Barrels.

Daily
capacity.
77,160
12,000
7,000
20,300
11,000
7,500
14,600
1,950
3,800

12,500
1,800
8,000
1,500
1,400
1,500
8,000
400
4,000
12,250

Number.

Capacity.

Bushels.
38,550,000
45,360,000
32,275,000
18,900,000
13,005,000
10,020,000
11,235,000
5,550,000
3,450,000
1,500,000
2,500,000
4,700,000
2,750,000
5,750,000
3,515,000
2,825,000
1,200,000
25,700,000
4,000,000
1,912,000
5,000,000
2,250,000
6,575,000
1,740,000

444,000

Total
Southwest terminals
Kansas City
Omaha
St. Louis
Total

24
3
4
8
2

2 Includes mill capacity.

Does not include mill capacity.

Number.

Wheat..
Corn
Oats..,.
Barley..
Rye....

Daily
capacity.

Bushels.
50 138,550,000
24 32,275,000
36 10,020,000
38 2 11,235,000
6,575,000
12

Minneapolis
Duluth and Superior
St. Louis
Kansas City
Omaha

KANSAS CITY.

Wheat..
Corn
Oats....
Barley..
Bye....

Number.

Capacity.

COMPARISONS.

1900

Total
Per cent.

Mills.

Points.

Southwest receipts.

Wheat..
Corn
Oats....
Barley..
Eye....

19,261,000

Terminal elevator capacity and milling capacity.

1

GRAIN EXHIBIT

9,745,000
4,814,000
4,702,000

20,000

Total

)

9,680,000
6,300,000
10,675,000
3,250,000
340,000
50,000

Total
Hay

Value Dec. 1.
Minneapolis
Duluth

Crop year 1912.
Wheat
Corn
Oats
Barley
Rye
Flax
Potatoes
Buckwheat
Hay

Value D e c . l . Production.

Aug. 30,1913
Sept. 13,1913
Jan. 11,1913

Rye.

i Statement made b y taking highest point in each market, whether the same
date or not.

46458°—S. Doc. 485, 63-2




15

Includes mill elevators.
GRAIN EXHIBIT O .

One flour mill, 500 barrels capacity.
Five flour mills (country) financed.
Two elevators, 40,000 bushels capacity.
Hay receipts, 209,950 tons, at $10—$2,099,500.
Grain receipts, year ending August 31, 1913: 114 cars inspected;
600 cars forwarded from Minneapolis (estimated).

226
TRAFFIC

LOCATION" OF RESERVE DISTRICTS.
OF

THE

NORTHWEST

CENTERS

IN

MINNE-

APOLIS.

Railroads comprising nine systems and representing 48,591 miles
of trackage in operation bring 8,065 communities into connection
with Northwest's largest city.

Minneapolis, believing that its position as the traffic
center of the Northwest, gives great weight to its argument for the location of the proposed Federal reserve
bank, submits the record of its traffic business for the
past six years and invites analysis in support of its
contention.
Twenty-one States are traversed by Minneapolis
railroads, representing 48,591 miles of rail actually in
operation, and bringing 8,065 cities, towns, and villages into direct connection with Minneapolis. In
the last six years a total of 7,205 miles of rail has been
added to the Minneapolis system, and the mileage
added in 1913 was 502. Nine railroad systems are
tributary to this field, comprising 24 lines serving
Minneapolis. The mileage in the proposed Northwest
Federal reserve district is 35,846.
The following statements are presented as significant of the traffic activities of Minneapolis:
Statement No. 1.—This is a monthly comparison of
all traffic, expressed in car units, received and forwarded at Minneapolis during the years 1908 to 1913,
inclusive. I t includes only traffic destined to or forwarded from Minneapolis proper.
Inbound traffic:
1908
cars..
1913
do....
Increase during 6-year period
do
Percentage of increase
Outbound traffic:
1908
cars..
1913
do....
Increase during 6-year period
do
Percentage of increase
Percentage of increase all cars in United States, 1911 over
1908
Percentage of increase all tonnage in United States, 1911
over 1908

281,375
362,740
81,365
29
269,845
344,654
74, 809
28
14
11

The last report of railway statistics published by
the Interstate Commerce Commission is for the year
ending June 30, 1911. I t states these facts:
Total loaded car-miles on all railroads in the United
States
12,859,386,385
Average haul
miles..
254.1
Total number of carloads handled by all roads in
the year ending June 30, 1911
50,607,581
Cars received at Minneapolis during same period..
311,315
Cars forwarded from Minneapolis during same
period
286,950
Total cars received and forwarded
598,265
Percentage of total cars handled by all roads in
United States
1.18

Statement No. 2.—This is a monthly comparison of
all less-than-carload traffic, expressed in pounds, received and forwarded at Minneapolis during the years
1908 to 1913, inclusive.




Inbound shipments:
1908
pounds..
416, 660,066
1913
do....
482,485,923
Increase during 6-year period
do
65,825,857
Percentage of increase
16
Outbound shipments:
1908
pounds..
810,893,278
1913
d o . . . . 1,092,663,991
Increase during 6-year period
do
281,770,713
Percentage of increase
35
Percentage of increase in entire United States in
1911 over 1908
13

A reliable index of the importance of Minneapolis
as a manufacturing center is the excess shown in outbound shipments over inbound shipments and the
measure of industrial growth is expressed by the increase in the excess outbound shipments for 1913 over
1908.
Excess of outbound shipments:
1908
1913
Increase in excess outbound shipments
Percentage of increase

pounds.. 394,233,212
d o . . . . 610,178,068
d o . . . . 215,944, 856
55

The Interstate Commerce Commission's report of
railway statistics for year ending June 30, 1911,
shows:
Total less-than-carload traffic of all roads in the United
States
tons.. 36,519,321
Total received at Minneapolis during the same period
tons..
240,802
Total forwarded from Minneapolis during the same
period
tons..
441,489
Total received and forwarded
do
682,291
Percentage of total tonnage handled by all roads in the
United States
1. 87

Statement No. S.—This is an analysis of statement
No. 1, showing distribution of inbound and outbound
traffic by commodities, in 1913:
Grain received at Minneapolis in cars
Grain forwarded from Minneapolis in cars
Grain milled at Minneapolis
Coal received at Minneapolis (40 tons per car)
Coal forwarded from Minneapolis (40 tons per car)
Coal consumed by Minneapolis industries
Total cars received (statement No. 1)
Cars of raw material used by Minneapolis manufacturing
industries
Total cars received for local consumption or distribution..
Total cars forwarded (statement No. 1)
Excess forwarded over received
Percentage of excess

154,208
71, 673
82, 735
32,905
229
32, 676
362, 740
115,411
247, 329
344, 654
97, 325
39

The Interstate Commerce Commission's report for
the year ending June 30, 1911, shows that the total
tonnage of grain and grain products handled by all
roads in the United States was 56,181,741 tons; that
the total tonnage of grain and grain products received
and forwarded at Minneapolis during the year 1911
was 7,846,473 tons; that the percentage of total tonnage of grain and grain products handled by all roads
in the United States was 14; that the flour forwarded
from Minneapolis in 1908 totaled 14,062,655 barrels;
that the flour forwarded from Minneapolis in 1913

227

MINNEAPOLIS;, MINNESOTA.

totaled 18,254,260barrels. The percentage of increase
during 6-year period was 30.
A comparison of the traffic business of Minneapolis
and St. Paul for the year 1913 shows the following
facts, as gathered from the reports of the traffic departments of the railroads carrying the business:
Loaded freight cars forwarded and received by Minneapolis proper, 763,519; loaded freight cars forwarded
and received by St. Paul proper, 410,848.
MINNESOTA

TRANSFER

FIGURES

IN

BUSINESS

OF

MINNEAPOLIS.
(This city entitled to credit for much of commodity traffic passing through Minnesota transfer now included in St. Paul figures.)

Properly to measure traffic activities in Minneapolis
and St. Paul one must understand conditions obtaining at Minnesota transfer. This is a railroad trackage within the corporate limits of St. Paul, but much
of the traffic in and out of the transfer rightly is to be
credited to Minneapolis.
To illustrate, a terminal elevator of 900,000 bushels
capacity and two linseed-oil mills of a joint capacity
of 192,500 barrels of oil and 60,000 tons of oil cake
located at Minnesota transfer are financed through
Minneapolis banks; and the elevator and one of the
linseed-oil companies are operated from offices in
Minneapolis.
On the other hand, a large quantity of commodities
routed from the east or south to points west of Minnesota in transit passes through the transfer and gets
credited in the St. Paul traffic total.
In the St. Paul commerce statement for the year
ending October 31, 1913, all roads in and out of St.
Paul are said to have received 4,934 cars of grain and
seeds and to have forwarded 1,089 cars. First, the
item of receipts will stand looking into. The Minnesota Transfer Co. keeps count only of those receipts
of grain and seeds that come direct from country
points. Cars forwarded from Minneapolis are not in
its report. The company's records show that for the
12 months ending October 31, 1913, there were
received at Minnesota transfer a total of 233 cars.
Yet the St. Paul commerce statement gives 4,934 cars.
The capacity of the two linseed-oil mills at Minnesota
transfer is about 2,037 cars of flax per year. This
leaves 2,664 cars of grain and seed to be accounted
for.
STATE F I G U R E S

CORROBORATE.

Inspection figures for St. Paul as shown by the
records of the State railroad and warehouse commission for the year ending August 31, 1913, show 114
cars (the number would be approximately the same
for the year ending Oct. 31, 1913), which would leave
2,550 cars unaccounted for.
Minneapolis, St. Paul, and Duluth have been designated by the State railroad and warehouse commission as being what are known as terminal points,




under the statute governing the inspection of grain.
Under this statute, all grain received at the terminal
markets must be inspected by State grain inspectors.
Then, if there were only 114 cars inspected by the
State grain inspection department, there were only
114 cars received direct from country points at terminal of St. Paul, and the rest of this grain received a t
St. Paul must have been reconsigned from Minneapolis,and the financing of consigned from Minneapolis; and
the financing not only of the balance of 2,550 cars, b u t
also of the industries at Minnesota transfer, and alsoof the 233 cars which were received from the country
by industries located at Minnesota transfer, must haveall been done by industries or business firms located at
Minneapolis.
ON GRAIN AND SEED

FORWARDED.

This statement also shows 1^089 cars of grain forwarded. The record received from the Minnesota
Transfer Co. shows that during this same year there
were forwarded from the Minnesota transfer a total of
588 cars of grain. These cars of grain were practically
all loaded out and forwarded from two elevators,
whose offices are in Minneapolis, and whose businesa
is all financed from Minneapolis.
This leaves 501 cars of grain and seed unaccounted
for, and this undoubtedly is grain billed from St. Paul
to South St. Paul; that is, down to the South St.Paul
stockyards, and is counted as a shipment from St.
Paul.
The application of Minnesota transfer conditions to
lumber and farm implement traffic is referred to the
articles on these industries elsewhere in this brief.
INDUSTRIAL

GROWTH

OF

MINNEAPOLIS

SIGNIFICANT.

City has kept pace with tremendous development of the whole
Northwest—Foremost in field—Five-year advance in permits for
manufacturing buildings and their values.

Industrially the growth of the Minneapolis-St. Paul
district as a great primary manufacturing center has
been proportionate to and coincident with the development of the whole Northwest. The raw material of
the farms, forests, and mines have here been converted into finished products. Demand for building
material, farm implements, and machinery in the
territory immediately tributary to this district has
been greater than that of any other section of the
country comparable with it.
TABLE

A.—Increase in value, Minnesota, North Dakota,
Dakota, and Montana, 1900-1910.

Number of farms
Buildings
Per farm
Increase
Implements
Per farm
Increase
Total
Per farm
Increase

South

334,355
$287,004,021
$858
per cent..
163.1
$80, 518,061
$241
per cent..
134.1
$367,522,037
$1,009
per cent..
155. T

228

LOCATION" OF RESERVE DISTRICTS.

Demand for all other articles of manufacture required by a rapidly growing district, such as furniture,
clothing, machine shop and foundry products, and
food preparations has been on a scale equal to the
demand for building material and farm machinery.
Facilities for manufacture being at hand, this demand
resulted in the establishment of a great manufacturing
center. Table B following, compiled by the Census
Bureau, shows the 13 leading metropolitan industrial
districts, in which the Minneapolis-St. Paul district
ranks twelfth in value of products.
TABLE

B.—Manufactures, population,
and area for
metropolitan districts, 1910 census.
Population

Total
number
persons
engaged.
N e w York
Chicago
Philadelphia
Pittsburgh
Boston
St. Louis
Cleveland
Buffalo
Detroit
Cincinnati
Baltimore
Minneapolis-St. Paul
San Francisco-Oakland

948,706
393,859
358,218
163,258
214,641
126,453
103,709
75,086
101,482
95,571
94,954
59,920
53,177

Number of
establishments.

Area in
acres.

6,474,568
2,446,921
1,972,342
1,044,743
1,520,470
828,733
613,270
488,661
500,982
563,804
658,715
526,256
686,873

N e w York
Chicago
Philadelphia.
Pittsburgh
Boston
St. Louis
Cleveland
Buffalo
Detroit
Cincinnati
Baltimore
Minneapolis-St. P a u l . .
San Francisco-Oakland

13

616,928
409,087
437,733
405,880
335,905
197,993
103,174
132,413
96,554
111, 772
184,660
94,539
289,381

31,782
10,202
9,568
2,369
5,389
2,951
2,230
1,964
2,104
2,827
2,668
1,844
2,539

Value of
products.

Capital.

$2,117,433 000
1,144,003 000
863,969,000
642,527,000
444,558,000
356,356,000
236,911,000
280,053,000
210,402,000
212,556,000
199,735,000
160,628,000
187,701,000

$2,970,143,000
1,408,780,000
911,014,000
•578,815,000
564,055,000
430,170,000
281,992,000
279,852,000
268,900,000
260,400,000
260,213,000
244,340,000
199,593,000

From the Census Bureau reports are taken the
percentages of growth during the 10-year period
covered by the United States census in the number of
establishments, capital, and value of products which
are shown by Table C. Table C shows that the
Minneapolis-St. Paul district ranks second among the
13 metropolitan districts in percentage of increase in
number of establishments, fifth in percentage of
increase in capital, and fourth in percentage of increase
in value of products.
TABLE

C.

THE TWIN CITY INDUSTRIAL DISTRICT.

The Minneapolis-St. Paul metropolitan industrial
district, as considered by the United States Census
Bureau, embraces 94,539 acres, of which 32,069 acres
represent the area of Minneapolis, 33,390 acres the
area of St. Paul, and 29,080 acres the outside territory.
Included in the Minneapolis-St. Paul district, in addition to the cities of Minneapolis and St. Paul, are the
villages of Edina and St. Louis Park, in Hennepin
County, and the cities of South St. Paul and West
St. Paul, in Dakota County. For some reason the
Census Bureau has not included Hopkins, sometimes
known as West Minneapolis, which lies within the
limits defining a metropolitan district, viz, " within 10
miles of the city limits." I t should have been included
in the Minneapolis-St. Paul district. Hopkins has
several important industries owned and operated by
Minneapolis capital, which are essentially Minneapolis
industries. Table D is a summary by the United
States Census Bureau of the statistics of manufacturing industries in this metropolitan district.
TABLE

D.—Statistics of manufacturing

The district. Minneapolis.

Population
526,256
Number of establishments...
1,844
Persons engaged in manufacture
59,920
Proprietors and firm
members
1,674
Salaried employees
9,978
Wage earners (average
number)
48,268
Primary horsepower
119,219
Capital
$160,628,295
Expenses
$225,488,583
$38,596,508
Services
$10,871,801
Salaries
$27,724,707
Wages
$166,823,348
Materials
$20,068,727
Miscellaneous
$244,339,598
Value of products
Value added b y manufac$77,516,250
ture

industries.

St. Paul.

District
exclusive
of Minneapolis and
St. Paul.

301,408

214,744
719

10,104
23

33,923

23,530

2,467

1,012
5,949

649
3,542

13
487

26,962
89,247
$90,382,225
$153,760,750
$21,915,335
$6,277,221
$15,638,114
$119,993,135
$11,852,280
$165,404,680

19,339
26,204
$60,466,777
$52,772,885
$14,999,780
$4,048,175
$10,951,605
$30,299,634
$7,473,471
$58,990,025

1,967
3,768
$9,779,293
$18,954,948
$1,681,393
$546,405
$1,134,988
$16,530,579
$742,976
$19,944,893

$45,411,545 $28,690,391

$3,414,314

1,102

Table E shows the percentage for Minneapolis and
St. Paul as compared with the total metropolitan
district. The preponderating excess of Minneapolis
over St. Paul in the important items of population,
number of establishments, wage earners, horsepower,
and value of products is significant.
TABLE

E.

1899-1909
Number
of establishments.
N e w York
Chicago
Philadelphia
Pittsburgh
Boston
St. Louis
Cleveland
Buffalo
Detroit»
Cincinnati
Baltimore
Minneapolis-St. P a u l . . .
San Francisco-Oakland.
i Details not shown in census.




Capital.

35.8
27.3
14.1
36.7
7.7
6.3
58.0
19.8

72.6
97.6
64.6
58.8
66.9
106.9
126.1
158.1

83.9
62.5
51.3
37.1
59.4
79.5
98.6
137.9

2 7.8
12.9
37.7
24.5

61.2
100.8
134.7

45.4
80.6
65.9

Minneapolis.

Value of
products.

2 Decrease.

Population
Number of establishments
Persons engaged in manufactures...
Proprietors and firm members..
Salaried employees
Wage earners (average number)
Primary horsepower
Capital
Expenses
Services
Salaries
Wages
Materials
Miscellaneous
Value of products
Value added b y manufacture

57.3
59.8
56.6
60.5
59.6
55.9
74.9
56.3
68.2
56.8
57.7
56.4
71.9
59.1
67.7
58.6

St. Paul.

40.8
39.0
39.3
38.8
35.5
40.1
22.0
37.6
23.4
38.9
37.2
39.5
18.2
37.2
24.1
37.0

229

MINNEAPOLIS; , MINNESOTA.

Table F exhibits in percentage the relation of Minneapolis to St. Paul in the manufacturing statistics
presented in the foregoing Table D.
TABLE

F.—Per cent Minneapolis exceeds St. Paul.

Population
Number of establishments
Persons engaged in manufacture
Primary horsepower
Capital
Value of products
Value added by manufacture
DIVERSITY OF MINNEAPOLIS

40. 4
53. 2
44. 2
40. 5
49. 5
180. 4
58. 3

TABLE

H.

Minneapolis.

St. Paul.

Year.

INDUSTRIES.

Number.

The abstract of the Thirteenth Census of the United
States for 1910, on page 528, presents a comparative
summary for the 25 principal industrial cities, which
ranks Minneapolis fourteenth in value of products.
St. Paul is not included among the 25 principal cities.
Page 446 presents a summary for the 50 principal
manufacturing cities. In this summary Minneapolis
ranks again fourteenth, with a value of products
amounting* to $165,405,000, and St. Paul ranks fortyfirst, with a value of products amounting to $58,990,000.
For a number of years Minneapolis industries consisted largely of the manufacture of flour and lumber.
While the former has shown a steady growth, the
latter has materially decreased, due to the dwindling
forests. While the manufacture of flour is still the
most important industry, the diversity of Minneapolis
industries in the past 10 years has been most marked.
Table G shows the percentage of increase in the capital
invested in 15 important industries of Minneapolis
covered by the period from 1899 to 1909, as shown by
the last Federal census.
G.—Fifteen important industries of Minneapolis—Percentage
of increase in capital invested for 10-year period covered by last
United States Census.

TABLE

Per cent.

Copper, tin and sheet-metal products
Patent medicines and compounds
Electrical machinery apparatus and supplies
Food products: Bakery products, bread, butter, cheese, condensed milk, confectionery
Building material industry: Marble, brick, tile, stone, and
artificial stone
Clothing, fur goods, hats and caps, etc
Foundry and machine-shop products
Carriages, wagons, and materials
Leather goods
Printing, publishing, and engraving
Cars and general shop construction, repairs by steam railroad
companies
Cooperage and wooden goods
Furniture and refrigerators
Flour and grist mill products
Lumber and timber products

402
396
383
367
289
229
200
153
172
89
77
76
70
39
8

MINNEAPOLIS COMPARED WITH ST. PAUL.

That the relative growth of Minneapolis and St.
Paul since the United States Census of 1909 has been




maintained is shown by Table H, which gives the
number of building permits and their values for mill,
factories, manufacturing buildings, and foundries
erected in Minneapolis and St. Paul for each year
from 1909 to 1913. These statistics were compiled
from the official figures in the building inspector's
office in each city.

Cost.

Number.

Cost.

79
55
52
47
Total

$1,188,430
1,273,025
702,730
1,304,215

52
35
24
24

$495,820
317,800
224,650
938,300

233

1910
1911
1912
1913

4,468,400

135

1,976,570

Total, 4 years, Minneapolis and St. Paul, $6,444,975.
Minneapolis proportion
St. Paul proportion

per cent.. 69.32
do
30.68

The value of the building permits for some of the
more important mill and factory buildings erected in
Minneapolis since 1909 are classified as shown in
Table I.
TABLE

I.

Brewing
Railroad shops
Milling and malting
Furniture
Sheet metal
Candy and crackers
Knit goods
Linseed oil
Wagons
Wheelbarrows
Foundry and machine shop
Show cases and store
fixtures
Paper mill
Creamery
Sash and doors
Light and power plants
Gasoline cars
Electrical machinery and apparatus
Automobiles
Total

$114, 500
679,000
288, 600
74,000
22,000
297,000
250,000
50,000
55,000
40,000
174,000
19,000
15,000
80,000
59, 500
615,000
200,000
165,000
400,000
3,597,600

To exhibit the comparative importance industrially of Minneapolis and St. Paul among cities in their
class,. the following table has been compiled from the
Thirteenth United States Census. The 19 cities
selected, ranging in population from 150,000 to
400,000, are fairly indicative of the class in which
Minneapolis and St. Paul belong, 5 having a greater
population than Minneapolis and 5 a less population
than St. Paul. In value of product, the basis used
by the Census Bureau in ranking cities industrially,
Minneapolis ranks third among these cities and St.
Paul twelfth. In value of product per capita Minneapolis ranks second and St. Paul tenth.

230

LOCATION" OF RESERVE DISTRICTS.
TABLE

Population.

Cities.

Cincinnati
Newark
New Orleans...
Washington
Los Angles
Minneapolis
Jersey City
Kansas City..*..
Seattle
Indianapolis
Providence
Louisville
Rochester
St. Paul
Denver
Portland
Columbus
Toledo
Atlanta
T w i n Cities

363,591
347,469
339,075
331,069
319,198
301,408
267,779
248,381
237,194
233,650
224,326
223,928
218,149
214,744
213,381
207,214
181,511
168,497
154,839
516,152

TABLE

J.

Number of
establishments.

Wage
earners.

2,184
1,858
848
518
1,325
1,102
745
902
751
855
1,080
903
1,203
719
766
649
586
760
483
1,820

60,192
59,955
17,186
7,707
17,327
26,932
25,454
12,294
11,331
31,815
46,381
27,023
39,108
19,339
12,058
12,214
16,428
18,878
12,302
46,271

Capital.

Value
of product per
capita.

Value of
product.

$150,254,000 $194,516,000
154,233,000
202,512,000
56,934,000
78,794,000
25,289,000
30,553,000
68,586,000
59,518,000
165,405,000
90,382,000
79,794 000
128,775,000
42,729,000
54,704,000
50,569,000
46,472,000
76,497,000
126,522,000
118,512,000
120,241,000
79,437,000
101,284,000
95,708,000
112,676,000
60,467,000
58,990,000
47,534,000
51,538,000
37,996,000
46,861,000
48,747,000
49,032,000
58,319,000
61,230,000
30,878,000
33,038,000
224,395,000
150,849,000

$535
583
232
76
215
549
481
220
213
541
536
452
517
275
242
226
270
363
213
435

The building operations during the period from
1909 to 1913 in the 19 cities referred to in the foregoing table, are shown by Table K. In building operations for the past five years Minneapolis ranks
second and St. Paul sixth.
TABLE

K.

Value of building operations.
Population.

Cities.

1912
363,591
347,469
339,075
331,069
319,198
301,408
267,779
248,381
237,194
233,650
224,326
223,928
218,149
214,744
213,381
207,214
181,511
168,497
154,839

Cincinnati...
Newark
N e w Orleans
Washington.
Los Angeles.
Minneapolis.
Jersey C i t y . .
Kansas City.
Seattle
Indianapolis.
Providence..
Louisville...
Rochester...
St. Paul
Denver
Portland
Columbus...
Toledo
Atlanta

1911

$8,348,432

$8,962,214

4,087,261
8,396,701
31,641,921
12,857,935

3,4%, 326
21,768,483
31,367,995
14,229,475

$13,481,320
10,975,334
3,129,143

10,578,162
9,321,115
9,361,973
(*)
4,054,180
9,642,124
9,441,221
2,797,148
12,956,915
5,508,400
5,986,079
5,112,944

12,396,338
8,415,325
9,150,407

13,318,031
7,491,076
8,349,327

6,552,770
12,035,466
8,151,417
5,332,675
14,652,071
4,675,303
5,321,790
9,987,444

6,207,972
9,389,775
8,915,008
6,084,260
19,144,940
4,668,245
3,722,536
6,192,461

0)

0)

0)

23,002,885
13,735,285

0)

0)

Value of building operations.
Cities.
1910
022,915
394,812
475,959
(l)
684,100
363,830

Cincinnati...
Newark
N e w Orleans
Washington.
Los Angeles.
Minneapolis.
Jersey C i t y . .
Kansas City.
Seattle
Indianapolis.
Providence..
Louisville...
Rochester...
St. Paul
Denver
Portland
Columbus...
Toledo
Atlanta

1909

$7,794,529 $46,609,410

0)
0)
1
C)

5,165,176
13,092,410
l

9
7y, 1 6 13,368,738
()

166,368
197,311

19,044,218
7,156,560

690,442
082,528
052,892
319,935
679,972
061,828
162,934
405,939

3,172,311
9,272,132
12,089,451
11,554,983
13,470,280
3,598,601
3,044,408

0)

1

Total.

0)

0)

0)
20,353,865
0)
(0
68,278,935
0)

Per capita.
$128

1
C) 60
1
C)
0) 226
0) 255

63,444,465
61,438,465
42,215,578

0)

23,677,675
50,422,025
48,649,989
37,089,001
80,904,178
23,512,377
22,237,747

259
180

C)

0)

0)

106
231
226
174
390
130
1 132

Figures not available.

Post-office receipts for 1912 of 19 cities, ranging in
population from 150,000 to 400,000, are shown in
Table L. Minneapolis ranks fourth in per capita postoffice receipts for 1912.




Cincinnati...
Newark
N e w Orleans
Washington.
Los Angeles.
Minneapolis.
Jersey C i t y . .
Kansas City.
Seattle
Indianapolis.

621.186.90
243.487.72
132,408.19
739.664.73
906.418.91
150,195.00
599,416.34
496,411.24
049,503.72
386,108.39

$6.76
3.36
3.22
5.07
4.93
6.67
2.12
9.38
3.78
5.61

Minneapolis.

$2,122.56
20,940.83
81,993.43
346,834.53
695,988.31
811,381.69
961,003.65
1,070,900.00
1,189,572.00

1850 to

Minneapolis.

1905
1906
1907
1908
1909
1910
1911
1912
1913

St. Paul.

$1,306,676.00
1,452,440.00
1,547,154.00
1,576,082.00
1,739,611.00
1,968,715.00
2,000,490.00
2,150,195.00
2,395,281.08

Year.

$429.07
5,254.47
23,437.66
102,450.22
317,666.97
521,366.56
541,198.76
626,445.40
703,830.16
733,830.16

$3.78
4.90
5.07
5.91
5.46
4.72
4.88
4.63
7.45

$889,707.84
1,124,362.85
1,170,475.56
1,278,597.77
1,258,253.92
1,108,474.46
947,126.87
819,255.20
1,260,195.29

Providence
Louisville..
Rochester..
St. P a u l . . . .
Denver
Portland...
Columbus..
Toledo
Atlanta

St. Paul.

Per
capita.

Receipts.

Cities.

and St. Paul
M.—Post-office receipts of Minneapolis
1913.

Year.
1850
1860
1870
1880
1890
1900
1901
1902
1903
1904

Per
capita.

Receipts.

Cities.

TABLE

L.—Post-office receipts, 1912.

$757,416.23
823,663.25
1,002,474.39
1.026.961.13
1,093,396.90
1.186.140.14
1,206,334.19
1,278,597.77
1,479,751.19

Table N, following, exhibits the growth in population of all the cities shown by the 1910 census which
have a population between 150,000 and 400,000, also
the population of the same cities in 1900, 1890, and
1880.
Minneapolis in 1880 ranked fourteenth in population
among these cities and in 1910 ranked sixth. St.
Paul in 1880 ranked fifteenth and in 1910 ranked
fourteenth.
TABLE

N.
1900

1910

Cincinnati
Newark, N . J
N e w Orleans, L a .
Washington, D . C
Los Angeles
Minneapolis
Jersey City
Kansas City
Seattle
Indianapolis
Providence
Louisville
Rochester
St. Paul
Denver
Portland
Columbus
Toledo
Atlanta
Twin Cities

Population.

11.6
41.2
81.8
18.8
211.5
48.7
29.7
51.7
194.0
38.1
27.8
9.4
34.2
31.7
59.4
129.2
44.6
27.8
72.3
41.1

325,902
246,070
287,104
278,718
102,479
202,718
206,433
163,752
80,671
169,164
175,597
204,731
162,608
163,065
133,859
90,426
125,560
131,822
89,872
365,783

35.3
18.6
28.0
103.4
23.1
26.6
23.4
88.3
60.4
32.9
27.1
21.4
22.5
25.4
94.9
42.4
61.9
37.1
22.8

Population,
1880.

Per cent
of
increase,
1880-1910.

255,139
136,508
216,090
177,624
11,183
46,887
120,722
55,785
3,533
75,056
104,857
123,758
89,366
41,473
35,629
17,577
51,647
50,137
37,409
88,360

42.5
154.5
56.7
86.4
2.758.8
542.8
121.8
345.2
6,613.7
211.3
113.9
80.9
144.1
417.8
498.9
1.078.9
251.4
236.1
313.8
484.1

1890
Cities.

Cincinnati
Newark, N . J
N e w Orleans, La.
Washington, D. C
Los Angeles
Minneapolis
Jersey City
Kansas City
Seattle
Indianapolis
Providence
Louisville
Rochester
St. Paul
Denver
Portland
Columbus
Toledo
Atlanta
Twin Cities

Per cent
of
increase.

Population.
363,591
347,469
339,075
331,069
319,198
301,408
267,779
248,381
237,194
233,650
244,326
223,928
218,149
214,744
213,381
207,214
181,511
168', 497
154,839
516,152

Cities.

Per cent
of
increase.

Population.

Per cent
of
increase.

296,908
181,830
242,039
230,392
50,395
164,738
163,003
132,716
42,837
105,436
132,146
161,129
133,890
133,156
106,713
46,385
88,150
81,434
63,533
297,894

16.4
33.2
12.0
29.7
350.6
251.4
35.0
137.9
1,112.5
40.5
26.0
30.2
49.8
221.1
199.5
163.9
70.7
62.4
75.2
237.1

M I N N E A P O L I S ;, M I N N E S O T A .

In 1880 Minneapolis, with a population of 46,887,
ranked thirty-seventh, and St. Paul, with a population
of 41,473, ranked forty-fourth among all the cities in
the United States. The census of 1910 shows Minneapolis as ranking eighteenth, with a population of
301,408, and St. Paul, with a population of 214,744,
ranked twenty-sixth among all cities.
Table O, compiled from the official records in Hennepin and Ramsey Counties, indicates the relative importance of Minneapolis and St. Paul as a center for
conducting industrial and commercial operations.
This table exhibits the number of new incorporations
and capital stock formed during the past three years
which have their principal place of business in each
city.
TABLE O .
Minneapolis.
Number
of new
incorporations.
1911
1912
1913

Capital
stock.

St. Paul.
Number
of new
incorporations.

Capital
stock.

476
478
424

156
138
107

$13,323,000
18,492,000
15,716,550

1,378

Total

$60,804,200
74,325,600
54,314,000
189,443,800

401

47,531,550

M I N N E A P O L I S IS T H E J O B B I N G C E N T E R OF T H E

NORTH-

WEST.

Traffic records prove Minnesota metropolis easily leads in wholesale merchandising—Forwarded and received total of 225,021 cars
in 1913 to St. Paul's 156,197.

Minneapolis, always preeminent in manufacturing,
is also the greatest jobbing center in the Northwest.
As the wholesale business is the chief activity of St.
Paul, many have assumed that this business exceeded
in volume that of Minneapolis, but the contrary is the
case.
In R. G. Dun & Co.'s reference book for January,
1914, there are, eliminating manufacturers' agents,
brokers, and real estate dealers, 6,025 names for Minneapolis and 3,918 for St. Paul. For purposes of comparison, let these names be divided into four classes—
manufacturers, jobbers, retailers, and miscellaneous.
Under the head of manufacturers group all names that
actually produce merchandise, from cigars to thrashing
machines. Under jobbers, group all that sell to others
than actual consumers. Under retailers, group all
that sell to actual consumers. Then the fourth class
will comprise all names in such lines as hotels, contractors of all kinds, warehouses, billiard rooms, etc.
SHOWING

OF

CLASSIFICATION.

This classification will show that there are 1,004
manufacturers in Minneapolis aiid 396 in St. Paul;
1,129 jobbers in Minneapolis and 402 in St. Paul;
3,389 in the retail business in Minneapolis and 2,798
in St. Paul; and under the head of miscellaneous 503
in Minneapolis and 322 in St. Paul.




231

If a line be drawn from the Sault Ste. Marie Canal
to Los Angeles, all the towns north of that line will
be found to be nearer Minneapolis and St. Paul than
Chicago. This would indicate the territory that is
tributary to Minneapolis and St. Paul, and should be
one of the considerations in determining where the
reserve banks should be located.
In all the territory included in this immense tract
jobbers of Minneapolis and St. Paul are doing business. As this country is developing rapidly, the jobbing business will keep pace. These facts point the
natural place for the location of a reserve bank to best
serve this territory.
WHAT

RAILROAD

FIGURES

SHOW.

Considering the large amount of agricultural implement business and the business of lumber and lumber
products for which Minneapolis has always been noted,
it will be conceded that carload shipments by wholesalers from Minneapolis are very much larger than
from St. Paul.
The number of cars of merchandise only forwarded
from Minneapolis in 1913 was 160,000. The total
number forwarded and received in the year was
225,021. The number of cars of merchandise only
forwarded from St. Paul last year was 85,000, while
the total number of cars forwarded and received was
156,197. These figures prove conclusively the supremacy of Minneapolis over St. Paul in the jobbing
field. The figures are taken from reports furnished
by the traffic departments of the various railroads
concerned.
LUMBER

INDUSTRY

CENTRALIZED

IN

MINNEAPOLIS

MARKET.

Producing annually 1,500,000,000 feet of pine, fir, and larch—25
mills doing all their banking in Minneapolis—Pacific coast and
Spokane mills financed—Minneapolis has 54 line yard firms,
operating 1,294 yards.

Lumber manufacture was one of the first industries
of Minneapolis, and the city's prestige has steadily
grown, and is greater now than ever. Instead of half
a dozen mills in Minneapolis cutting logs and producing large quantities of lumber annually, the character of the Minneapolis market has changed. There
are to-day several hundred firms located in Minneapolis and engaged in the various branches of the
lumber trade. The city not only figures predominantly in the Northwest lumber distributing trade,
but it is the center to which the industry as it spreads
throughout the Northwest looks for its financing.
Material for the woodworking industries that are
located here comes from a wide territory. Oak and
yellow pine come from the south; spruce and pine
from the west; birch from Wisconsin; pine from Minnesota; mahogany, Circassian walnut, and other important woods from all parts of the world. The sash

232

LOCATION" OF RESERVE DISTRICTS.

and door and interior finishing industry of Minneapolis
makes an important part of the city's manufacturing
exhibit, elsewhere set forth in detail.
In considering the lumber trade, the employment
of labor in the industry or its allied lines and the intimate manner in which, through the retail trade, the
business touches the agricultural communities, the contrast with St. Paul is striking.
Ninety per cent of the retail lumber dealers of Wisconsin, Iowa, Minnesota, North and South Dakota,
and Montana are members of the Retail Lumber
Dealers' Association, the headquarters of which are
in Minneapolis. St. Paul has none. The insurance
feature that is so important is handled entirely from
Minneapolis, and Minneapolis is headquarters of the
mutual company in which retail yards insure.
The St. Paul traffic statement shows receipts of
18,768 cars of lumber, with shipments of 9,354 cars.
The last wholesale lumber firm moved from St. Paul
to Minneapolis about three years ago. The St. Paul
lumber statement is made up from business originating
outside.
The standing of the two cities in this relation is
shown in this comparison:
In Minneapolis.

In St.
Paul.

25

1

All.
54
1,294
8

Concerns
Large manufacturers in the "United States maintaining
offices
t
Line yard companies with headquarters
Retail yards owned and financed
Post, pole, and cedar companies financed

None.
3
50
None.

A great deal of the lumber is cut at points in northwestern Montana, Idaho, and Washington, and in being
brought in over the Northern Pacific Railway and
Great Northern Railway, is billed through to points
east of Minneapolis and St. Paul, and naturally would
be billed via the Minnesota transfer for switching to
the eastern line. For instance, a car of lumber billed
from Eureka, Mont., on the Great Northern Railway,
to Aurora, 111., would be billed in care of the Chicago,
Burlington & Quincy Railway at Minnesota transfer.
St. Paul's traffic statement counts as receipts the
lumber received on through billing at Minnesota transfer. To this St. Paul is not entitled, as practically all
this business is done by lumber companies whose offices
are in Minneapolis.
IMPLEMENT TRADE

OF MINNEAPOLIS

IS

$40,000,000.

of 12-ton car lots, which is considered by traffic authorities a fair average for weight, made a total in 1913
of 298,360 tons or 24,861 carloads.
The annual sales of the Minneapolis firms engaged
in the business amounts to $40,000,000. This is a
conservative statement and, if anything, is an underestimate.
Minneapolis is so generally recognized as the essential point from which the Northwest trade field must be
carried on that there are 81 firms in the business here.
All the country that lies north and west and a considerable portion in an area all the Northwest is covered by
the trade. The business enters into the industrial activities of the city through the 27 factories that are
located here. These are the plants:
American Grain Separator Co.
Bull Tractor Co.
Cleland Manufacturing Co.
Diamond Iron Works.
Dodson Fisher, Brockmann Co.
Glide Road Machinery Co.
Howell, R. R., & Co.
Imperial Machinery Co.
Keller Manufacturing Co.
Kinnard-Haines Co.
Lenhart Wagon Co.
Loye Saddlery Co.
Martin Manufacturing Co.
Minneapolis Separator Co.

Minneapolis Steel & Machinery Co.
Minneapolis Threshing Machine Co.
Minnesota Rubber Co.
Monitor Drill Co.
Ney Manufacturing Co.
Nott, W. S., Co.
Owens, J. L., Co.
Puffer-IIubbard Manufacturing Co.
Russell Grader Manufacturing Co.
Strite Governor Pulley Co.
Townsley Manufacturing Co.,
Twin City Separator Co.
Emerson-Brantingham Co., Big Four
Tractor.

There are 40 wholesalers located in Minneapolis.
These are distributing houses for machinery and
implements manufactured in the Mississippi Valley
factories and elsewhere. Through these firms Minneapolis is brought into touch with the agricultural
country in intimate degree. These are the firms
located in Minneapolis that are engaged in the wholesale trade:
Acme Harvesting Machine Co.
Appleton Manufacturing Co.
Aultman & Taylor Machinery Co.
Avery Co.
*
Bratrud Co., The.
Butler Manufacturing Co.
Case, J. I., Threshing Machine Co.
Case, J. I., Plow Works.
Challenge Co.
Clark, Geo. A., & Son.
Crane Co.
Dean, A. J., Co.
Deere & Webber Co.
Downes, P. J., Co.
Emerson-Brantingham Implement Co.
Fairbanks, Morse & Co.
Hart-Parr Co.
Herschel-Roth Manufacturing Co.
Huber Manufacturing Co.
Huber Bros. Manufacturing Co.
Hudson & Thurber Co.

International Harvester Co. of America.
La Crosse Implement Co.
Lindsay Bros.
Minneapolis Iron Store Co.
Minnesota Moline Plow Co.
Nichols & Shepard Co.
Northern Rock Island Plow Co.
Northwestern Wind Engine Co.
Parlin & Orendorff Plow Co. of Minneapolis.
Planter Rubber Co.
Port Huron Machinery Co.
Power Equipment Co.
Rosenthal Corn Husker Co.
Rumely, M., Co.,
Studebaker Bros. Co. of Minnesota.
Waterbury Implement & Storage Co.
Williams Hardware Co.
Wood Bros. Thresher Co.
Wagner-Langemo Co.

^Factories, 27; wholesalers, 40; factory agencies, 14; annual shipments of farm implements, machinery, wagons, vehicles, and
binding twine, 298,360 tons, or 24,861 carloads.)

The third division of the business is made up of factories located elsewhere that maintain selling offices
and carry transfer stocks here. They are:

Minneapolis is predominant in the business of supplying the Northwest with its needs in agricultural
implements and machinery, and this tonnage, together
with wagons, vehicles, and binding twine sold by Minneapolis wholesalers and manufacturers, on the basis

Clapperton, J. H.
Dodge Manufacturing Co.
Fuller & Johnson Manufacturing Co.
Hayes Pump & Planter Co.
Hooven & Allison Co.
Iowa Dairy Supply Co.
Janesville Manufacturing Co.




Madison Plow Co.
Manson-Campbell Co.
Maytag Co., The.
Sharpies Separator Co.
Stoughton Wagon Co.
Thomas Manufacturing Co.
Wisconsin Carriage Co.

233

MINNEAPOLIS; , MINNESOTA.

There are no comparisons to be made with St. Paul
in this connection. No business of this nature in
volume sufficient to warrant any consideration is done
in St. Paul. Minneapolis is the farm machinery and
implement center.
There is a feature about the business that is like
that in the lumber trade, in that there is a quantity
of agricultural machinery and implement shipments
that annually goes forward from factories located eastward or southward to points in North Dakota, South
Dakota, Montana, or the farther West, that in transit
passes through the Minnesota transfer, located between
Minneapolis and St. Paul, but within the corporate
limits of St. Paul, that appears in the figures that show
the annual traffic of that city.
Practically all the agricultural implement business
of the entire Northwest is financed from Minneapolis,
except in the case where shipments are made from
eastern factories direct.
MINNEAPOLIS'S

FRUIT

AND

PRODUCE

TRADE

IS

EX-

TENSIVE.

(Trade volume in the city itself passed $35,000,000 in 1913—Total
in field served from Ontario to Montana runs into huge figures—
Branch houses in 28 places.)

In the territory from eastern Ontario to Montana
and south to northern Iowa and Nebraska, Minneapolis' wholesale fruit and produce firms have established and are maintaining 33 branch or associate
houses in 28 cities, doing a volume of business that
amounts annually to many millions. This business
is financed almost entirely through Minneapolis and it
recognizes Minneapolis as its center of operation. It
reaches out beyond the district commonly known as
the Northwest and includes portions of northern Michigan and southern Ontario in its scope.
These branch or associate houses are located in the
following cities, a figure after a name indicating the
number of houses in that city, when more than one:
Aberdeen, S. Dak.
Albert Lea, Minn.
Brainerd, Minn.
Bismarck, N. Dak.
Bemidji, Minn.
Duluth, Minn. (3).
Des Moines, Iowa.
Fort William, Ontario.
Fergus Falls, Minn.
Fort Dodge, Iowa.
VOLUME

Lincoln, Nebr.
Minot, N. Dak.
Mason City, Iowa.
Moberly, Mo.
Mankato, Minn. (2).
Marshalltown, Iowa.
Miles City, Mont.
Oelwein, Iowa.
Port Arthur, Ontario.
Pipestone, Minn.
OF

BUSINESS

IN

Rochester, Minn.
St. Paul, Minn. (3).
Sault Ste. Marie, Ontario.
Superior, Wis.
Sault Ste. Marie, Mich.
St. Cloud, Minn.
Virginia, Minn.
Watertown, S. Dak.

MINNEAPOLIS.

In Minneapolis itself the volume of business in the
wholesale produce and fruit line in 1913 is estimated to
have passed $35,000,000. Figures obtained from records of 48 houses gave a total of $31,224,060.19 for the
year's business. To this it is fair to add $5,000,000 as
an estimate from houses from which figures could not
be obtained in time for this computation. This estimated total of $36,224,060.19 does not cover the poultry, butter, egg, and cheese business done by the meat
packers; it does not cover car-lot shipments of the




Minneapolis Gardeners' Association, which were in
excess of 4,000 cars last year.
Minneapolis has a regular storage capacity for fruit
and produce of 1,281 cars. This is to be increased
this spring by 500 cars by construction now under
way. I t carried last year in storage a total of 3,021
cars. The 1913 distribution was as follows: Butter,
30,311 packages or 2,234,217 pounds, having a cost
value of $558,554.25; eggs, 136,581 cases, of a cost
value of $779,511.70; poultry, 313,213 pounds, of a
cost value of $46,981.95; cheese, 29,754 packages or
1,811,685 pounds, of a cost value of $36,232.70; apples,
61,257 barrels, 87,696 boxes; meats, 456,102 pounds.
POTATO

BUSINESS

FROM

126

STATIONS.

Regular car-lot dealers in potatoes shipped out
15,288 cars last year, totaling 7,308,400 bushels, and
in excess of 300 cars of onions and cabbages. In the
following 126 places, buying stations and warehouses
are maintained by one or more dealers, with banking
accounts in local banks of a $200 minimum. Many of
the more prominent stations are covered by three to
five houses.
Anoka, Minn.
Albertville, Minn.
Amherst, Wis.
Aldrich, Minn.
Amberg, Wis.
Athelstine, Minn.
Askov, Minn.
Bethel, Minn.
Braham, Minn.
Barnesville, Minn.
Becker, Minn.
Brickton, Minn.
Browerville, Minn.
Brainerd, Minn.
Bloomer, Wis.
Boyceville, Wis.
Big Lake, Minn.
Barnham, Minn.
Cambridge, Minn.
Clear Lake, Minn.
Chisago City, Minn.
Clarissa, Minn.
Custer, Wis.
Colfax, Wis.
Crivitz, Wis.
Clayton, Wis.
Canton, Wis.
Cedar, Minn.
Detroit, Minn.
Dale, Wis.
Dancy, Wis.
Dayton, Minn.
Deer Creek, Minn.
Elk River, Minn.
Eagle Bend, Minn.
Elk Mound, Wis.
Ellis Junction, Wis.
Enfield, Minn.
Earl, Wis.
Forest Lake, Minn.
IMPROVEMENTS

Foreston, Minn.
Foley, Minn.
Felton, Minn.
Forada, Minn.
Frederic, Wis.
Granby, Minn.
Glyndon, Minn.
Grantsburg, Wis.
Glenwood City, Minn.
Grasston, Minn.
Harris, Minn.
Henrietta, Minn.
Hawley, Minn.
Hammel, N. Dak.
Hugo, Minn.
Isanti, Minn.
Junction City, Wis.
Little Falls, Minn.
Lyle, Minn.
Luck, Wis.
Long Prairie, Minn.
Long Siding, Minn.
Linstrom, Minn.
Lake Elmo, Minn.
Lovells, Minn.
Marinette, Wis.
Monong, Wis.
Markville, Minn.
Milnor, N. Dak.
Milaca, Minn.
North Branch, Minn.
Nielsville, Minn.
New Auburn, Wis.
New Brighton, Minn.
Osseo, Minn.
Ogilvie, Minn.
Pelican Rapids, Minn.
Pequot, Minn.
Pound, Wis.
Princeton, Minn.
KEEP

PACE

WITH

Park Rapids, Minn.
Pine River, Minn.
Poskin Lake, Wis.
Pillager, Minn.
Perham, Minn.
Rush City, Minn.
Rock Creek, Minn.
Rogers, Minn.
Rosemount, Minn.
Rices, Minn.
Royalton, Minn.
Rice Lake, Wis.
Sauk Center, Minn.
Shafer, Minn.
St. Cloud, Minn.
Sebeka, Minn.
Staples, Minn.
Stevens Point, Wis.
Shell Lake, Wis.
Scandia, Minn.
St. Charles, Minn.
Stillwater, Minn.
Sauk Rapids, Minn.
Stacy, Minn.
Trego, Wis.
Turtle Lake, Wis.
Ulen, Minn.
Verndale, Minn.
~7yoming, Minn.
Wolverton, Minn.
Withrow, Minn.
Wadena, Minn.
Willow River, Minn.
Webster, Wis.
Wausaukee, Wis.
Weyerhauser, Wis.
Wheeler, Wis.
Wilson, Minn.
Wonewoc, Wis.
Zimmerman, Minn.
G R O W T H IN

POPU-

LATION.

(Expenditures in 1913 for permanent city work were $3,500,000—•
Net bonded indebtedness is only 6.8 per cent of 10 per cent limit
of assessment valuation prescribed by law—Comparison with St.
Paul.)

To keep pace with the growth of Minneapolis in
population, industrially and commercially, large ex-

234

LOCATION" OF RESERVE DISTRICTS.

penditures have been necessary in the past few years
to provide for permanent city improvements, such as
bridges, pavement, sewer, water, sidewalks, etc. The
expenditure up to 1913 has been $48,000,000 on corporate property, and during the year 1913 practically
$3,500,000 was spent on permanent improvements.
The following table shows corporate property and
value in 1900 and 1912:
Corporate property (cost).
1900
$2,940,100
4,587,300
351,600
1,447,500
4,370,800
4,491,600
721,900
1,761,800
2,574,400

Total

$6,584,400
6,895,900
491,800
2,159,200
8,359,400
8,362,600
1,405,800
5,756,000
7,977,500

23,247,000

School sites and buildings
Parks and parkways
Public library
Bridges
Waterworks
Sewer system
Curb and gutters
Paving
All other

47,992,600

Notwithstanding such heavy expenditures, the net
bonded indebtedness of the city amounts to only 6.8
per cent of the 10 per cent limit of assessed valuation
allowed by law. With $4,000,000 in the sinking fund
and the accretions thereto from the annual levy of one
mill for this fund, all bonds will be provided for at
maturity.
THREE

YEARS7

IMPROVEMENTS

1.—Composite and comparative statement of capital and surplus, national banks of Minneapolis and St. Paul, 1872-1913.

TABLE

[From annual reports of Comptroller of United States Currency, showing conditions of national banks as of time of last call for each year.]
MINNEAPOLIS.
Year.

Capital.
$542,000
550,000
650,000
750,000
850,000
950,000
1,250,000
1,250,000
1,250,000

1872.
1873.
1874.
1875.
1876.
1877.
1878.
1879.
1880.
1881.
1882.
1883.
1884.
1885.
1886.
1887.
1888.
1889.
1890.
1891.
1892.
1893.
1894.
1895.
1896.
1897.
1898.
1899.
1900.
1901.
1902.
1903.
1904.
1905.
1906.
1907.
1908.
1909.
1910.
1911.
1912.
1913.

Surplus.
$41,585
49,037
98,956
111,426
125,182
92,967
100,446
112,000
105,588
71,588
115,000
172,500
240,000
265,000
280,100
356,500
496,000
524,000
602,000
600,000
639,000
674,000
369,000
399,500
461,000
491,000
512,000
569,500
697,000
695,000
805,000
1,670,000
2,251,190
2,552,083
2,952,083
4,352,083
5,352,083
5,235,143
5,594,361
5,835,000
5,860,000

1,100,000

1,600,000
1,850,000
3,197,700
3,100,000
3,500,000
3,700,000
4,250,000
4,500,000
4,500,000
4,840,000
4,931,000
5,400,000
5,700,000
5,200,000
5,200,000
4,500,000
4,500,000
4,000,000
4,000,000
3,250,000
3,250,000
4,450,000
4,450,000
4,700,000
4,700,000
5,700,000
5,700,000
5,650,000
6,900,000

6,800,000
6,800,000
7,500,000

6,210,000

Capital.

Surplus.

COMPARED.
ST. P A U L .

Actual work on permanent improvements during the
years 1910, 1911, and 1912, in Minneapolis compared
with St. Paul is exhibited in the following table:
St. Paul.

Minneapolis.

Assessed
valuation:
$114,184,
$197,036,479
191 0
198,910,208
125,281,
191 1
213,398,439
191 2
126,286,
Paving (miles
at close of—
191 0
191 1
191 2
Sewers (miles
at close of—
292
276
191 0
299
305
191 1
323
191 2
318
Water mains
(miles) at
close of—
342
191 0
430
350
468
191 1
493
191 2
Side w a l k s
(miles at
close of—
533
755
191 0
549
759
191 1
564
191 2
788
Street - c a r
railway

tracks
(miles):
191 0
191 1
191 2




143
144
146

145
152
178

St. Paul.
connections
made in—
191 0
191 1
191 2
Water connections
made in—
191 0
191 1
191 2

1,816
1,723
1,735

1,832
1,657
1,573

Minneapolis.

2,508
2,418
2,530

3,613
3,039
3,099

Street lights
maintained

during

1912:
Electric arc
lamps...
O r n a mental
cluster
posts
Gas lamps.
Gasoline . .
Total...

1,150

2,307

321
4,604
1,287

7,007
212

7,362

10,452

Year.
1872.
1873.
1874.
1875.
1876.
1877.
1878.
1879.
1880.
1881.
1882.
1883.
1884.
1885.
1886.
1887.
1888.

1889.
1890.
1891.
1892.
1893.
1894.
1895.
1896.
1897.
1898.
1899.
1900.
1901.
1902.
1903.
1904.
1905.
1906.
1907.
1908.
1909.
1910.
1911.
1912.
1913.

$1,077,900
1,800,000
1,800,000

1,800,000
1,700,000
1,700,000
1,700,000
1,700,000

2,200,000
2,200,000
2,200,000
4,700,000
5,200,000
5,200,000
5,700,000
5,700,000
5,200,000
5,200,000
5,200,000
4,800,000
4,800,000

2,800,000

3,800,000
3,800,000
3,800,000
3,800,000
3,800,000
3,800,000
3,800,000
3,800,000
3,800,000
4,000,000
4,000,000
4,200,000
4,450,000
4,100,000
4,100,000
4,100,000
4,100,000
4,100,000
4,100,000
5,900,000

$249,021
306,069
333,000
366,000
368,000
344,000
349,500
355,000
505,000
575,000
635,000
805,000
1,010,000
1,010,000

1,128,000
1,161,000
1,208,500
1,247,000
1,290,000
1,283,000
1,298,000
1,103,000
1,205,000
1,055,000
1,055,000
855,000
657,000
561,000
667,000
783,000
830,000
1,036,000
1,205,000
1,205,000
1,445,000
2,265,000
2,600,000
2,740,000
3,120,000
3,390,000
3,500,000
3,700,000

MINNEAPOLIS; , MINNESOTA.

235

Chart I

Geographical representation of interbanking relations of Minneapolis and outside points.
Chart I shows by a map—distribution of dots, the geographical location of 3,329 northwestern banks carrying reserve and exchange
accounts with the banks of Minneapolis.
The location of these associated banks clearly indicates the sphere of financial influence of Minneapolis; namely, Minnesota, North
Dakota, South Dakota, Montana, Washington, and parts of Wisconsin, Iowa, and Idaho.
The books of Minneapolis banks as of January 15, 1914, showed 1,416 balances carried on account of Minnesota correspondents, 925
balances on account of North Dakota banks, 343 South Dakota accounts, 161 Montana accounts, 214 Wisconsin accounts, 118 Iowa accounts,
32 Washington accounts, and 120 accounts in other States.




to
C
o
0*

ZA

?*

Cojapssilt RgptteagMtKnon
u
H To A B H S cf MmntfrpouS
h iH i A K
AI^OSTPAUU. 181^1113
1
6
iSugpLO^

.11

1
U
1
5
H«

O
o
•

A

o

tej
0r
hj
1
0
2
w
H

C
o
H
B
o
H
G
G

I 5 S
^ % 2*

I

^

§

g

O
er

2

» & i 8? ? I !;

§ 5-, sr
§
c *
*
o
= < =c a s >s ^
r r o.

K < C vf
? r O

Development of banking power of Minneapolis and St. Paul as indicated by growth of capital and surplus of national banks, 1872-1913.
Chart II represents the development of banking power as indicated by the combined capital and surplus of the national banks of Minneapolis and St. Paul.
Attention is especially directed to the volume and rapidity of surplus accumulations during recent years. Since 1902 a relatively steady growth at a remarkable rate is apparent.
The increase for 11 years is over 15 per cent.




MINNEAPOLIS,

237

MINNESOTA.

Chart ffl

1904-

1905

1906

1907

190$

1909

Banking power of Minneapolis and St. Paul contrasted.

1910

1911

(91?

19/3

Growth of capital and surplus, 1904 to 1913.

Chart I I I represents the surpassing growth of Minneapolis over St. Paul in banking power as indicated by the accumulation of bank
capital and surplus.
Since 1904 all banks of St. Paul have increased their capital and surplus from about $6,000,000 to $9,655,000, or 60 per cent.
Minneapolis banks entered the period with $8,500,000 of primary funds, which has since grown to $16,800,000—an increase for 10 years
of about 100 per cent.
This amount represents a net banking power 70 per cent greater than that of St. Paul, and a rate of growth for the decade 67 per cent
greater than that of St. Paul.




238

LOCATION OF RESERVE DISTRICTS.

Chart XXI

Growth of banking activities of Minneapolis and St. Paul, as indicated by individual deposits and bank balances in national banks, 18721913.
Chart IV graphically represents the development of banking activities as indicated by the growth of individual deposits and balances
held as exchange accounts for outside banks by combined national banks of Minneapolis and St. Paul.
A mere beginning in 1872 of $3,000,000 individual deposits was gradually augmented to $35,000,000 in 1900, of which nearly $12,000,000
was balance carried on account of associated country banks.
From 1900 to the present time, a remarkable growth of banking activities is evidenced. Individual deposits have increased from
$23,000,000 to nearly $80,000,000, an advance of 25 per cent. Bank balances have grown from $12,000,000 in 1900 to $52,000,000 in 1913,
an advance of 335 per cent. This growth of individual deposits and bank balances in national banks consequently amounts to nearly
$100,000,000, a growth of about 300 per cent in 13 years.




MINNEAPOLIS,

239

MINNESOTA.

Chart XIII

2
Relative banking activities of Minneapolis and St. Paul as Indicated by amount and growth of total deposits in all banks, 1904-1913.
Chart V, representing total bank deposits of Minneapolis and St. Paul, respectively, indicates the relative volume and growth of
banking activities in the two cities from 1904 to 1913.
During the ten-year period, St. Paul deposits increased from about $30,000,000 to $52,000,000 (73 per cent).
Minneapolis beginning the period with $48,000,000 (57 per cent) excess over St. Paul, now holds $101,500,000 deposits. This shows an
increase for the period of 112 per cent, or a rate of growth 54 per cent faster than that of St. Paul.
Upon this basis the relative status of Minneapolis banks to that of St. Paul banks is as 196 to 100.




240

LOCATION" OF RESERVE DISTRICTS.

Chart VI

Historical representation of development of banking activities, national banks, Minneapolis and St. Paul.
Chart VI represents by historical curves the growth of individual deposits in national banks, and of bank balances carried for outside
banks by the national banks of Minneapolis and St. Paul, respectively, during the 43 years, ending 1913.
The financial superiority of St. Paul over Minneapolis during the early part of the period is evidenced both in the matter of individual
deposits and bank balances prior to 1890. At that time the banking connections of Minneapolis became so extensive as to cause balances
of outside banks carried in that city to exceed those handled in St. Paul.
The individual deposits of Minneapolis outgrew those of St. Paul in 1906, and since that time have increased by $45,000,000, while the
increase for St. Paul banks is somewhat less than $35,000,000.




NATIONAL BANKS. STATE BANKS
5WIMGS BANKS %TRUST COMPANIES

MM e P LS S P U - 9 2
I MA O I^I A L1 1

D e p o s i t s

riATIOMAl
BAMK5

Capital

Surplus

STATE
BMS
A K

*&ty3Ms

. DEPOSITS ' T O ^ M
^Wwwapous 73%
%
mrSrPMi.
27^

CAPITAL

11.

SAVINGS
BANKS

TRUST

C MA
O Pl
i

KM
W M

SURPLUS

DEPOSITS
Resources

_ZSJS7$67

SjOtZjOZ!

Sr. Pauc 2 / %

CAPITAL

SURPLUS

.IfZSftQO

SBETA0I»EL-

^S

Composite representation of financial strength of banking institutions of Minneapolis and St. Paul.
Chart VII presents in graphic form the totals of significant items in a combined financial statement of all Minneapolis banking institutions, as of latest available record. Also the percentage proportion of each total which is attributed to the banking houses of respective cities.
If the resulting percentages be combined and arranged, thus forming index numbers indicative of financial strength and activity, the result is Minneapolis 74$, St. Paul 25$.




242

LOCATION" OF RESERVE DISTRICTS.

Chart VIII

Composite and comparative development of Minneapolis and St. Paul as indicated by growth of capital and surplus of national banks,
1872-1913.
Chart VIII compares and summarizes the accumulation of capital and surplus by the national banks of Minneapolis and St. Paul for
42 years ending 1913.
The development of banking power during this period is especially significant in two respects, namely, the change in relative importance as between St. Paul and Minneapolis since 1892, and the rapid rate of accumulation in the years following 1902.
A net increase of over 160 per cent is shown for the last 11 years, of which 104 per cent—about $9,000,000—is properly accredited to
Minneapolis. In other words, in 11 years the national banks of Minneapolis have added to their capital and surplus an amount almost
equal to the present total capital and surplus of the national banks of St. Paul.




243

MINNEAPOLIS; , MINNESOTA.

Chart IX

Composite and comparative developments of banking activities of Minneapolis and St. Paul, as indicated by growth of individual deposits
and bank balances held by national banks, 1872-1913.
Chart I X compares and summarizes individual deposits and bank balances held by national banks of Minneapolis and St. Paul, by
years from 1872 to 1913.
The financial activities of St. Paul in earlier years are evidenced by a preponderance of deposits and balances indicated below the
index line until 1899 is reached. In that year, an extension of Minneapolis banking activities is indicated by a volume of bank balances
exceeding that of St. Paul, and in 1907 individual deposits in Minneapolis national banks exceeded those of St. Paul by $5,000,000. Since
that time, although a healthy development is evidenced for St. Paul, the relative growth of Minneapolis is noteworthy.
For the year just closed, individual deposits and bank balances of Minneapolis national banks stand at $45,000,000 and $35,000,000,
respectively, as compared with $35,000,000 and $17,000,000 for St. Paul. Expressed in percentage growth since 1900, when the two cities
were practically equal as to combined deposits of individual banks, Minneapolis increased by almost 400 per cent and St. Paul by a little
more than 200 per cent. Minneapolis has increased in individual deposits by nearly 350 per cent, St. Paul by 200 per cent. Minneapolis
has increased bank balances by 500 per cent, St. Paul by 200 per cent. This last item is significant as a criterion of the outside banking
relations of the two cities, and is especially indicative of the importance of Minneapolis as a banking center.




220LOCATION"OF RESERVE DISTRICTS.

Chart X
f

f i i

mr

*

MUNORBD mUJON DOLLAR?

,r

K I I A CITY
A S£
3A <FIJAN<15<:

NW O
E
R

NS

»9 Vc
1< ft

BANK CLEARINGS
{J M F T FT V BAMIC GLEABIHSS
•Q P T T I L G
M C VfesttBn , H &tfTHgRH QTI63«M3
l
W
AO

fLAMT^
SE/TTIE
DE.r:v&r
5 0 C H - n\\
P1 A i
HUHDRCD J11UJCH VOLlAKS

Comparative representation of financial and commercial activities of nine western and southern cities indicated by bank clearings for 1913.
Chart X affords a comparative representation of the bank clearings of nine foremost Western and Southern cities: Kansas City, San
Francisco., Minneapolis, St. Paul, New Orleans, Atlanta, Denver, and Spokane.
Bank clearings may be taken as the most significant criterion of the volume of commercial and financial activities in any community.
As among the nine cities named, Kansas City appears to occupy first place in volume of clearings. However, the contrast of Kansas
City with other members of the group is not as significant as might first appear, because of the fact that country collections are included
in Kansas City clearings, while they are not so included in the clearings of other cities.
The relative importance of Minneapolis and St. Paul as a financial and commercial center, as compared with other members of the
group, is obvious. Minneapolis alone occupies third place among the nine cities. The combined clearings of Minneapolis and St. Paul
is slightly less than the total of Spokane, Denver, Seattle, and Atlanta for the same period; Minneapolis exceeds Spokane, Denver, and
Seattle combined.
In so far as geographical financial importance is concerned, Minneapolis and St. Paul constitute one financial center. It is significant,
however, that as between the two cities the clearings of Minneapolis amount to two and a half times those of St. Paul.




MINNEAPOLIS,

MINNESOTA.

245

Chart XIII

SEZT/JSLE 5
The course of bank clearings by years: Minneapolis and St. Paul, 1884 to 1913.
Chart X I represents the relative development of financial and commercial activities in the cities of Minneapolis and St. Paul as indicated
by the curves of respective bank clearings during the period of 30 years, each beginning in 1884 with annual clearings amounting to about
$100,000,000.
The growth of bank clearings has advanced to $530,500,000 for St. Paul and to $1,312,500,000 for Minneapolis, making a total of
$1,843,000,000.
While it is to be observed that the bank clearings of St. Paul have grown steadily throughout the period, it is noteworthy that the
financial activities of Minneapolis, as indicated by the curve of clearings, has advanced much more rapidly since 1894 and, during the last
three years the increase has approximated 26 per cent, while St. Paul has practically remained at a standstill.




246

LOCATION OF RESERVE DISTRICTS.

Chart XXI

Comparison of financial activities of nine western and southern cities as indicated by annual course of bank clearings during last five
years. The course of clearings for each year is shown in its percentage relation to the previous year.
Chart X I I contrasts the annual movement of bank clearings for five years in each of the nine important cities of the South and West:
Minneapolis, San Francisco, Kansas City, Seattle, New Orleans, Spokane, St. Paul and Denver, and Minneapolis and St. Paul combined.
Bank clearings may properly be accepted as a significant criterion of current business activities and especially of banking operations.
I t should be observed, also, that in the cities here shown bank clearings are not inflated by speculative stock market transactions as
in certain eastern cities.
Excepting San Francisco, Minneapolis makes by far the best showing of the group, and Minneapolis and St. Paul averaged together
excel all individual cities throughout the period, excepting San Francisco and Minneapolis.
The apparent superiority of San Francisco is traceable to the prosperity of that city, probably due to reconstruction activities continuing during the year 1911, when all other localities, save New Orleans, experienced a severe depression in business. A significant
feature of the San Francisco curve resides in the 10 per cent decline for the year 1913.
During this last year, only three of the nine cities sustained their own rate of advance evidenced in 1912, viz.: Minneapolis, Kansas
City, and Seattle, having respective growths of 11 per cent, 5 per cent, and 10 per cent. However, the relative decline of St. Paul is more
than compensated for by the advance of Minneapolis, the combined showing being an advance of 4£ per cent.
Incidentally, the tendency, otherwise apparent, of financial activities of the Northwest is centralized in Minneapolis rather than in
St. Paul, is here shown.
The relatively negative showing of Denver as to growth of financial activities, revealed by bank clearings, affords striking comparison
with all other centers.
Because of the fact that country collections are included in Kansas City clearings and are not so included in the clearings of other
cities, the relative showing of Kansas City is properly subject to a measure of discount.




MINNEAPOLIS,

247

MINNESOTA.

Chart XIII

»Couftse

or

BANK CLEARINGS "
five. Yea/ts pas-ms

"IEICHT5 Ones.

-.Show/NO^

Pat Cent of Increase.'t>v£$ i909

nPL'sfcSTPaul

0
<
?
w
or
v
»
H
J
*
?
U
«

s.

SpOKANt
DtNVEtt — —
——
Starrue 9 O
Sun Francisco
Hew 0alums
Kansas City
Sr. Paul.

Minneapolis
•

set
Relative bank clearings of nine leading western and southern cities.

r m 13

Five years by index numbers.

Chart X I I I supplements and "checks" the accuracy of Chart X I I in representing the course of business activities centering in the
more important cities of the south and west, excepting St. Louis. St. Louis is excepted from the group because of influences affecting
clearings arising from the financial relations of St. Louis as a central reserve city, and not necessarily significant of natural and indigenous
commercial attributes. I n this chart the movement for each year is expressed in percentage terms of their respective clearings for 1909.
The favorable position of Minneapolis and San Francisco, as shown by Chart X I I , is here substantiated, and the superior acceleration
of Minneapolis clearings in comparison with each member of the group for the last two years is apparent.




248

LOCATION OF RESERVE DISTRICTS.

Chart XXI

Relative advance of agricultural production in Minnesota, North Dakota, South Dakota, and Montana, compared with agricultural production in the United States, and with growth of population, during a period of thirty-three years.
Chart X X I graphically contrasts the increase in the volume of farm crops of the States of Minnesota, North Dakota, South Dakota,
and Montana, with the contemporary production of like crops in the United States considered as a whole, and with the growth of population dependent upon the food resources of the country.
Taking 1890 as the base year, it is observed that the index of population has increased, since 1880, by sixty points, approximately
60 per cent. During the same period farm crops advanced, disregarding annual fluctuations, by about 80 per cent, while the farm output
of the four states above mentioned advanced from —54 to 337, almost 400 per cent.
This showing is particularly significant as a criterion of the growing importance of the Northwest as a surplus-food producing area and,
taken in connection with the development of storage, milling, and commercial facilities in Minneapolis, becomes equally significant of the
importance of that city as a national financial center.




Chart XXII
CH!£f AGPfCUl TI/&AL PPOWCfJ

I &&M6CS
•/Tmntsont) ( /Ins(Hurt

nvTAum [.I rf***Ai**
St OA*or* m ATamSaS

SDamota I [Cote****

^jv+t/CS /frtuOMO
Oats VM*4T.C<i'*t*.
1>r*n0*tA4>**

<

fteoovcrs

*ruvAt*. •

Tvtm. 4*HX04it(M%
V/rsrro JTATtm

At Sf*nr*vtwr/**t'*wt

fir** &#,3ZZeoc
V/t/r*0jK*r£S
/?AT£ <y /flCRCASC

All Snrret w»sr o* fhsnisteM

Tmn trrr &sr**cr

See Table 6

Receipts of all grains, northern and southern markets compared.
Chart X X I I contrasts the development of main lines of agricultural production in four States, Minnesota, North Dakota, South Dakota,
and Montana, tributary to Minneapolis markets with combined contemporary production of five States, Missouri, Nebraska, Kansas,
Colorado, and Oklahoma, tributary to Omaha, Kansas City, and St. Louis.
Circle A shows by black and crossed-hatched segments the relative importance of the northern and southern groups of States,
respectively, for 1900.
It is observed that the showing of the North against the South is as 6J per cent is to 23 per cent of the total United States crop.
Circle B shows a marked change in relative importance of North and South for 1912, the respective shares in the national product
being 15 per cent and 19 per cent. The absolute crop increases are shown by the larger areas represented in circle B.
If the comparison be made in terms of the total of principal agricultural products west of the Mississippi River, the showing of the
North against the South is as 12J per cent to 44J per cent for 1900, indicated in circle C; and, for 1912, 27 per cent for the North as against
24J per cent for the South.
If, now, attention be directed to the representation of respective rates of increase sustained by the northern and southern States and
by the entire United States, as shown in the lower left-hand section of the chart, it appears that the crop of 1912 exceeded that of 1900 by
59J per cent for the United States, 32 per cent for the Southern States and 272J per cent for the Northern States.
If again, consideration be given to the relative volume of principal farm crops, excluding corn; the above mentioned Northern states
produced 11 per cent of the United States total in 1900, as against 26 per cent for the South, and, in 1912, four northern States produced
26 per cent of the total crop as against 15 per cent grown by the five states lying to the south.
Of the crop west of the Mississippi, again excluding corn, the northern States produced in 1900 21 per cent as against 35 per cent for
the Southern group, and, in 1912, 42 per cent as contrasted with 24J per cent.
Excluding corn, the relative increase in farm output for the entire United States, 1912 over 1900, was 29J per cent; for the South, 47
per cent; and for Minnesota, the Dakotas, and Montana combined, 316 per cent.
In matters of financial moment there are three reasons why corn should be given less weight in the relative consideration of crop values
than may properly be assigned to other grains; namely, the fact of large amounts being fed on the farms, the relatively simple marketing
process requiring less capital and credit, and the fact that corn moves slowly, being usually financed on six months' paper instead of short
paper, as are other crops.
249




250

LOCATION"

OF RESERVE DISTRICTS.

Chart
2S

Million Bushef*

S6

I

I

?

.

iZS
t

R

ISt>

I

T

mm Bushel* >

M I N N E A P O L I S

M
i

1.670

D U L U T H

33%
Z/%.
/0%

K A N S A S C TY

.

/S%

61,336

%SH7,<tr<> 2t%

M I N N E A P O L I S

117,3*1,(60
.37tooe,ooo

O
O*

iS%

OMA HA

ST. LOUIS

O

fttHSfif*

. 8%£>20,ooo

MINNEAPOLIS

/3%

J4Z.080&O

—

/0%

70,ZSd,*fdo

j IT. L o u 13

<R

38%

51,68^,300

K A N S A S CITY

0

%-fTofai

130,1 t<?Mf

OMAHA

4>

XXIII

KAN CITY

tff%

ST. LOUIS

H8fi7%oeo

19%

0

,

23%

Comf&ytivt ffapreeertfot/da of
R E C E I P T S

OP

Sf
Mformqpotts, Vvtoftii Omaha, ffansasCiitf&i&fi Let/**
J900~I9O0-191Z.

S* Grain- Exhibit*

B

Receipts of grains at five important grain markets, 1900-1906-1912.
Chart X X I I illustrates the relative importance of the grain trade of the Minneapolis district contrasted with that of the entire area
tributary to Omaha, Kansas City, and St. Louis. It should be understood also that in the grain trade, Duluth and Minneapolis constitute
a market unit; the Dulutk transactions being of the nature of branch business, both as to credit arrangements and actual proprietorship,
of Minneapolis.
That the actual grain handled in the Minnesota markets constituted 58 per cent of the total in 1900, 54 per cent in 1906, and 62 per
cent in 1902 is significant. St. Paul is not a grain market.




MINNEAPOLIS;, MINNESOTA.

251

Chart

XXIV

T C R M I N A U E L E V A T O R C A P A C I T Y * M A X I M U M TERMINAL S T O C K S
^ M I L L I N G C A B A C I T Y S T MIRMEAPOUS,PULQTH-SUPERIOR:.,

0MAMA,KAM5/\sClTVflH?ST. LOUIS £ 5 1913.
8
*P Mil tion Bu*h*ts &P

¥

&
.

TofofSv.

%'fToM

$2,273,000 33%
ELEVATOR
J0t020,000 16% • CAPACITY

.//,235(00a //%
. 6&S,000

7%,
In Country &evk

2 4/IZtfiOO 3(o%) Z7»OO0tOOOU., A
I ot M Wesrcnti fftuat)
HeT
_J?S,/02;000 30% \UiV9
4,614,006 1%
Terminal
%74S,ooq 14%
Stocks
. 3,702,000 552
Total Bbls. %4Totef

_

T

rttr-SulpEJ

?_

. OMAHA.
KANSAS

CITY

Sr. L o u i s
/ X B

rT!NMETAPulTS
I P U L I L T H ± S U I * E R I OR
OMAHA
KANSAS

CITY

ST. L o u t s

-

77,160 70%
7,000 (p%
MILLING
4,000 47c CAPACITY
_ l/fcoo 13% (DAILY)
IfiOO 1%]
24
3

,4
8

fTotat

7%
5%
n%
to%

NUMBER
.

OF

IH ILLS

Magnitude of Minnesota grain and milling activities contrasted with Omaha, Kansas City, and St. Louis.
Chart XXIV graphically contrasts Minnesota elevator and milling activities with those of Omaha, Kansas City, and St. Louis.
Obviously the day of rivalry among these, the largest cereal centers of the world, has passed.
At the present time the elevator capacity of Minneapolis and the Lake Superior terminals is over 150 per cent greater than the
combined carrying power of Omaha, Kansas City, and St. Louis.
During the last year (1913) the actual maximum burden of grain carried in terminal storage in Minnesota and financed in Minneapolis was 180 per cent more than the combined amounts for Omaha, Kansas City, and St. Louis. And an amount of grain was
carried by country elevators in Minnesota and the Dakotas over half as great as the contents of the terminal bins—constituting a total
of over 75,000,000 bushels.
The milling capacity of Minneapolis and the lake port is 235 per cent greater than the combined capacity of Omaha, Kansas City,
and St. Louis; and the country mills of Minnesota have a combined capacity as great as that of Minneapolis.




252

LOCATION" OF RESERVE DISTRICTS.

Chart XXV

See "fable 1
'

Freight traffic of Minneapolis and St. Paul compared, 1913.
The chief significance of Chart XXV pertains to the relative importance of Minneapolis and St. Paul as shipping points. The total
of all receipts and shipments, reduced to carload equivalents, over all roads touching Minneapolis, amounting for the year ending December,
31, 1913, to 763,519 cars as contrasted with 410,848 cars " i n " and " o u t " of St. Paul, including Minnesota Transfer, for the year ending
October 31,1913. (St. Paul figures for November and December, 1913, not available.)
The lower part of the chart, representing merchandise only, shows 225,021 cars " i n " and " o u t " for Minneapolis, two-thirds of which
is forwarded merchandise. This amount contrasted with 156,197 cars, equally divided as between " i n " and " o u t " merchandise, for
St. Paul is probably significant of superior jobbing activities in Minneapolis.




253

MINNEAPOLIS; , MINNESOTA.

Chart XXVI

SerTaMrtr
Classified freight traffic of Minneapolis and St. Paul.
Chart XXVI supplements Chart XXV by a subdivision of traffic by cities into 14 classes, showing the superiority of Minneapolis over
St. Paul in the following 10 classes: Agricultural implements and machinery, grain and seeds, linseed oil, cement and brick, coal, flour,
millstuffs, merchandise, oil-cake and meal, and miscellaneous. St. Paul excels in the handling of hay, lumber, live stock, and meats.
(Data compiled from official weekly reports of all roads entering Minneapolis and St. Paul for Minneapolis Civic and Commerce Association.)




254

LOCATION" OF RESERVE DISTRICTS.

Chart XXVIII

R 1 SI c E
c m
L
6 |o s • Si T*U
Au
E MiB h*5W 1
ftvK a ft E K" I9-113
.

36its
5

\

^

f
f

iv

Jl

r"

*

**

'sL

6
,
13 >14

\
v

s

f

>f
J
V

is

\

•a*

4
2

H
-N

2
2

>

fe

V
>

it'

*

s

6

•i

j

H 22%
<L
t
i
t \
t \
r i

V

VJ

V
J
C£
.<

j
' 5Of5
1 / S1

&
o

<

i
?

1/ 4
V $7nj8

a
-d
« n

n
2o

\

VA

I

1
0

1

E C
MINN AP L 15

Io
1V
4>
C

5 , 56,
5
2
f
%

v
V

J
m+

5 1 Pi ML
-I A
S
V

/

'V

* *

s

3.

1£
2

\

\ k
X

la
8

(,.

(,

4

4
1

Usui

| %

ft _ fa 7
JB4 4- CS
I lJ E
-

$ 4 10

If i* 1 -ft &Ja * 2 & &
7 i.r!.ru L ?
>—

0
26 0
7
* vvbi ? i nv*"-' P . J wri 4k 42 1 4544pec 41SO UlB$
y is 3 38
IW tn 1 6 1si K
^ l Ai
.7
.
5!
SM T«bU 12

Seasonal fluctuation in financial activities, Minneapolis and St. Paul.
Chart X X V I I I is constructed upon the record of weekly clearings for a period of four years ending December 31,1913. By averaging
the figures for respectively consecutive weeks for the four years, the average seasonal fluctuations by weeks are calculated. The resulting
averages are plotted, this deriving a "normal" or average year, for both Minneapolis and St. Paul.
The course of clearings for Minneapolis shows low points in February and May (eighth and twenty-second weeks), and reaches a maximum in October (forty-third week). The extreme average variation is from about $16,000,000 weekly clearings to over $31,400,000—a
variation of 96 per cent in five months. For six weeks of this period the average advance is 85 per cent, and one two weeks' period, in late
August and early September, shows an advance of 45 per cent, amounting to $8,000,000. A minor peak in clearings appears in the last,
week in February.
This fluctuation in average clearings does not measure the extreme variations which may and do occur in the course of business. They
do indicate the variations which, upon the basis of four years' experience, may reasonably be anticipated under normal conditions.
The suddenness and extent of variations experienced in Minneapolis has no counterpart in St. Paul. The maximum variation in
weekly averages at no time amounts to as much as $5,000,000; the same maximum average is reached in both autumn and spring and the
minimum of $9,000,000 appears four times during the year.
This variable career of banking activities in Minneapolis as contrasted with the relatively even tenor of St. Paul business is doubtless;
due to the closer association of Minneapolis banking with the seasonal phenomena of agricultural production.




jAf ZZess/c/jptfUL

*
tt

Comer* /Soever O f / f S ,
fl
u

Mat/ fit temsrfitS'

u
«f
<

•Mi

S

Mi
n

w
•
•hj
o
C
OJ

I

47

•

A

*/|

/i
f%

3
«

it

G
Q

o

X

/VO//777/T/7

m/ZO///?

A,t,M,oooloni

WCM/Gft/f
C

O

P

P

£

/

C/lL/FOEm

UT/7/4

Z

fibs

Itfwl Lwri

M/m£SOZ9

i/S Cjcjvsvs

Af/CM&JF/f
/

M

/&/7B/7/W?
O

mwrOM

P£M5Ylvm//?

N

Minnesota and Montana.
Chart X X I X represents the relative importance of the two northern cities in the production of iron ore and copper. It is noteworthy that the ore production in Minnesota for 1909
was over 60 per cent greater than the total for the three States next in importance, and constituted 54-j% per cent of the total ore production of the United States. The output for 1913 is
12£ per cent greater than that of 1909.
The 315,000,000 pounds of copper produced by Montana in 1909 exceeds that of the nearest competitor by 25,000,000 pounds, and represents 3 4 ^ per cent of the copper production
of the United States.
The rapid growth of iron and copper production in Minnesota and Montana since 1879 as contrasted with the contemporary output of other States is especially significant, not only
as to the present mineral importance of these States, but as a forecast of future mining activities and mineral values to be handled and financed in the Northwest.




to

Oi

256

LOCATION"

OF RESERVE DISTRICTS.

Chart XXX
P/ZQOUCTrON
feOM
M

COPPBG UAjyfiw
P & N C I P A L

or

4NO

P&eClQUS

P & O D U C T H G

M'LL/art

J* v lZ8

Dollars

w
®

S T # T & § - 1 $ I 3

iss.

Mcwe/m
M/HHSSOTA
MoNT/WH
flmzoNfi
i&Mi.Qoo
\*z"ti4a:o

Colorado
Missouri

oo

LEGEND
iXOH
Comb*
ftcecious Mmtxla
L&tQArtoZtrtC

Nevada
Utah

M

M

M

W

.

527000

Idaho
South

*

D/hcota

WiSCO/iSt/i

*4.96

3.000
UlituM

Damned

Relative mineral production of Minnesota and Montana.
Chart X X X represents the relative position of Minnesota and Montana in the production of mineral values. Minnesota alone, in the
$57,000,000 of ore values exceeds the value of metal products in any other State, except Miclygan. The copper output of Montana places
that State third in the list of all metal producing States. The mineral values produced in 1913 by Minnesota, Montana, South Dakota,
Wisconsin, and Idaho (States lying within the proposed Northwestern reserve bank district), exceed the combined mineral values produced by California, Colorado, Missouri, Nevada, and Utah.




MINNEAPOLIS; , MINNESOTA.

257

Chart XXXI

The Northern Railway net.
Chart X X X I . The Minnesota district is not lacking in mechanical facilities of trade; the growth of the railway net within its boundaries has been rapid and continuous, and the location of railway lines is such as to constitute Minneapolis the natural focus of transportation activities to the Northwest.
46458°—S. Doc. 485, 63-2




17

fcO
cn
00

s
o
§

o
%
0

1
U1
H

I

C
D
H
J
B
O
H
9
w

I
Comparative transportation facilities, Minneapolis and Chicago.
Chart X X X I I graphically represents certain strategic advantages of Minneapolis in matters of transportation and communication as contrasted with Chicago. The direct
lines of railway leading from Minneapolis to the Pacific Coast and the Rocky Mountain cities, and to Canadian points, when considered in connection with the movement of
traffic originating to the north and west, and the financial operations associated therewith, makes the matter of time and distance a significant factor in the location of banking
facilities.




259

MINNEAPOLIS; , MINNESOTA.

Chart

XXXVI

MINNEAPOLIS
A V A I L A B L E FOR

0
Q

RESERVE

BANK

OLD FEDERAL BLDG.
F I R S T .FLOOR PLAN

o
o

0
o
*
M
4




A

K
K
M
i
O
*"

£

K? C*
Tm*o Smccr

$o.

260




LOCATION" OF RESERVE DISTRICTS.

Chart XXXVII

Development of banking in Minneapolis, 1904-1913.

261

MINNEAPOLIS; , MINNESOTA.
TABLE

1.—Composite and comparative statement of capital and surplus, etc.—Continued.
MINNEAPOLIS A N D ST. P A U L COMBINED.

3.—Composite and comparative statement of deposits, bank
accounts held, and loans and discounts, national banks of Minneapolis and St. Paul, 1872-1913—Continued.

TABLE

MINNEAPOLIS—Continued.
Year.

Capital.
$1,619,900
2,350,000
2,450,000
2,550,000
2,500,000
2,650,000
2,950,000
2,950,000
3,450,000
3,300,000
3,800,000
6,550,000
8,397,700
8,300,000
9,200,000
9,400,000
9,450,000
9,700,000
9,700,000
9,640,000
9,731,000
8,200,000
9,500,000
9,000,000
9,000,000
8,300,000
8,300,000
7,800,000
7,800,000
7,050,000
7,050,000
7,050,000
8,450,000
8,900,000
9,150,000
9,800,000
9,800,000
9,750,000

1872.
1873.
1874.
1875.
1876.
1877.
1878.
1879.
1880.
1881.
1882.
1883.
1884.
1885.
1886.
1887.
1888.
1889.
1890.
1891.
1892.
1893.
1894.
1895.
1896.
1897.
1898.
1899.
1900.
1901.
1902.
1903.
1904.
1905.
1906.
1907.
1908.
1909.
1910.
1911.
1912.
1913.

Surplus.
$290,606
355,106
431,956
477,426
493,182
436,967
449,946
467,000
610,588
646,558
750,000
977,500
1,250,000
1,275,000
1,408,100
1,517,500
1,704,500
1,871,000
1,892,000
1,883,000
1,937,000
1,777,000
1,574,000
1,454,500
1,516,000
1,346,000
1,169,000
1,130,500
1,364,000
1,478,000
1,635,000
2,706,000
3,456,190
3,757,083
4,397,083
6,617,083
7,952,083
7,975,143
8,714,361
9,225,000
9,360,000
9,910,000

11,000,000
10,900,000
10,900,000
13,400,000
TABLE

Total.
$1,910,506
2,705,106
2,881,956
3,027,426
3,043,182
3,086,967
3,399,946
3,417,000
4,060,588
3,946,558
4,550,000
7,527,500
9,647,700
9,5 7 5,000
10,608,100
10,917,500
11,154,500
11,471,000
11,592,000
11,523,000
11,668,000
9,977,000
11,074,000
10,454,500
10,516,000
9,646,000
9,469,000
8,930,500
9,164,000
8,528,000
8,685,000
11,156,000
11,906,190
12,657,083
13,547,083
16,417,083
17,752,083
17,725,143
19,714,361
20,125,000
20,260,000
23,310,000

1875.
1876.
1877.
1878.
1879.
1880.
1881.
1882.
1883.
1884.
1885.
1886.

1887.
1888.
1889.
1890.
1891.
1892.
1893.
1894.
1895.
1896.
1897.
1898.
1899.
1900.
1901.
1902.
1903.
1904.
1905.
1906.
1907.
1908.
1909.
1910.
1911.
1912.
1913.

Deposits.

Due
to other
banks.

$1,479,336
1,848,783
1,552,413
1,597,071
1,757,743
2,181,752
2,683,748
3,164,097
3,929,053
3,673,815
4,993,903
6,432,282
7,891,992
8,200,820
7,464,167
8,636,538
10,132,934
9,419,458
7,403,824
7,466,034
8,703,001
7,264,701
8,305,070
9,413,198
11,639,221
10,507,430
11,452,152
14,102,483
13,590,509
15,567,054
16,852,252
20,904,970
28,549,817
35,645,299
42,384,436
37,634,467
39,983,615
47,724,674
45,740,698

Year.

$19,955
7,346
30,557
11,518
20,260
33,915
194,921
384,648
598,554
860,937
1,210,959
2,016,154
1,608,351
1,977,496
1,739,904
2,156,718
1,893,640
2,900,484
1,633,041
2,983,314
3,052,530
2,819,618
4,676,198
3,988,839
6,040,106
6,440,690
8,391,526
9,857,094
9,037,683
8,963,258
11,632,248
14,549,840
17,855,984
28,982,892
22,288,071
26,279,090
21,607,203
27,701,775
34,715,470

2.—St. Paul and Minneapolis banks, 1904-1913.
ST. P A U L .

ST. P A U L B A N K S .
Year.

Capital.

Surplus.

Deposits.

^Ints.

Due
to other
banks.

Year.
1904
1905
1906
1907
1908
1909
1910
1911.
1912.
1913

$4,400,000
4,450,000
4,550,000
4,200,000
4,200,000
4,250,000
4,275,000
4,275,000
4,125,000
5,850,000

$1,537,500 $29,715,650
1,367,000 34,404,499
1,500,000 33,916,490
2,290,000 34,017,655
2,640,000 34,756,368
2,990,000 46,022,344
3,246,000 42,975,252
3,506,000 51,312,364
3,500,000 45,851,516
3,805,000 51,186,053

$19,166,199
22,222,242
21,749,798
23,377,848
23,221,940
30,226,256
29,853,907
31,800,531
30,016,580
36,443,186

MINNEAPOLIS BANKS.
Year.
1904
1905
1906
1907
1908
1909
1910
1911
1912
1913

Capital.
$5,735,000
6,235,000
6,235,000
6,585,000
6,085,000
8,025,000
9,005,000
9,030,000
9,230,000
9,750,000

Surplus.

Deposits.

Loans and
discounts.

$2,759,000 $47,074,347 $36,002,403
3,202,083 54,235,940 41,676,224
3,938,083 57,695,572 44,542,603
4,829,869 66,518,044 47,102,518
5,387,839 76,871,340 51,190,301
5,973,433 90,094,807 60,400,087
6,172,705 82,257,137 57,649,377
7,073,100 92,385,492 64,339,821
6,788,500 100,028,530 69,658,514
7,065,500 101,506,300 69,861,735

Mortgage
loans.
$338,367
949,851
1,139,399
1,278,061
1,325,831
2,251,010
2,597,964
2,819,225
3,167,250
3,562,454

3.—Composite and comparative statement of deposits, bank
accounts held, and loans and discounts, national banks of Minneapolis and St. Paul, 1872-1913.

TABLE

[From annual reports of Comptroller of United States Currency, showing condition
of national banks as of time of last call for each year.]
MINNEAPOLIS.
Year.

1872
1873 .
1874




Deposits.

$1,257,074
1,689,024
1,430,997

Due
to other
banks.
$17,177
11,525
9,221

Loans and
discounts.
$1,252,199
1,495,330
1,605,802

1872.
1873.
1874.
1875.
1876.
1877.
1878.
1879.
1880.
1881.
1882.
1883.
1884.
1885.
1886.
1887.
1888.

1889.
1890.
1891.
1892.
1893.
1894.
1895.
1896.
1897.
1898.
1899.
1900l
1901.
1902.
1903.
1904.
1905.
1906.
1907.
1908.
1909.
1910.
1911.
1912.
1913.

$1,698,210
2,189,573
2,161,820
2,069,116
1,970,621
2,034,397
2,274,634
3,046,325
3,831,334
5,674,455
5,355,628
7,202,440
7,960,941
8,265,325
8,602,267
10,190,599
9,227,664
8,986,680
10,375,295
8,813,795
10,316,417
7,167,692
8,147,106
8,145,523
9,485,486
9,506,325
10,432,375
12,820,912
12,675,315
13,408,835
15,258,516
14,990,496
16,709,339
18,333,904
20,934,055
21,707,545
23,325,549
26,191,331
26,105,386
25,831,838
26,939,658
34,629,419

$184,245
264,026
244,441
423,846
249,699
379,102
420,089
484,406
637,656
2,439,416
1,626,473
2,024,281
1,858,387
2,697,088
2,869,748
3,621,011
3,667,296
2,704,261
3,220,717
4,202,278
4,256,769
2,284,589
3,967,775
3,212,655
2,884,752
5,328,600
4,346,011
6,095,662
5,402,036
6,353,680
6,714,107
6,339,928
6,819,743
8,879,473
10,370,882
10,549,441
13,173,037
12,758,014
13,361,246
12,010,953
13,067,938
16,934,486

262

LOCATION" OF RESERVE DISTRICTS.

3.—Composite and comparative statement of deposits, bank
accounts held, and loans and discounts, national banks of Minnesota and St. Paul, 1872-1913—Continued.

TABLE

TABLE

Year.

MINNEAPOLIS A N D ST. P A U L COMBINED.

Deposits.

1872.
1873.
1874.
1875.
1876.
1877.
1878.
1879.
1880.
1881.
1882.
1883.
1884.
1885.
1886.
1887.
1888.
1889.
1890.
1891.
1892.
1893.
1894.
1895.
1896.
1897.
1898.
1899.
1900.
1901.
1902.
1903.
1904.
1905.
1906.
1907.
1908.
1909.
1910.
1911.
1912.
1913.

TABLE

Due
to other
banks.

$2,955,284
3,878,597
3,592,817
3,548,452
3,819,404
3,586,810
3,871,705
4,804,068
6,013,086
8,358,203
8,519,725
11,131,493
11,634,756
13,259,228
15,034,549
18,082,591
17,428,484
16.450.847
19,011,833
18,946,729
19,735,875
14,571,516
15,613,140
16,848,524
16,750,187
17,811,395
19,845,573
24,460,133
23,182,745
24,860,987
29,360,999
28,581,005
32,276,393
35,186,156
41,839,025
50,257,362
58.970.848
68,575,767
63,739,853
65,815,453
74,664,332
80,370,117

Year.

$201,423
275,551
253,662
443,801
257,045
409,659
431,607
504,666
671,571
2,634,337
2,011,121
2,622,835
2,719,324
3,908,047
4,885,902
5,229,362
5,644,792
4,444,165
5,377,435
6,095,918
7,157,253
3,917,630
6,951,089
6,265,185
5,704,370
10,004,798
8,334,850
12,135,768
11,842,726
14,745,206
16,571,201
15,377,611
15,783,001
20.511.721
24.920.722
28,405,425
42,155,929
35,046,035
39,640,336
33,618,156
40,769,713
51,699,956

Loans and
discounts.

$3,539,835
4,596,439
4,915,476
5,184,767
5,414,834
5,499,763
6,342,907
6,655,076
8,429,580
11,047,462
11,879,824
16,947,588
18,283,679
20,761,177
22,952,225
27,266,206
25,614,254
24,538,700
26,905,389
25,642,678
28,900,595
21,968,293
21,942,039
22,106,389
21,238,979
18,124,014
20,014,489
23,942,946
25,755,522
28,423,983
33,357,204
35,769,370
37,370,444
41,693,313
48,192,486
60,257,821
69,013,651
72,790,124
76,539,953
76,267,519
87,130,453
99,079,696

Spokane.

Denver.

Seattle.

Francisco.

TABLE 5 . —

Year.

$425,607,021
487,848,306
458,897,827
493,046,623
466,450,933
409,996,642
407,803,850
349,774,100
327,957,696
235,725,730
237,324,459
230,369,178
228,469,100
246,942,831
178,206,504
151,355,846
124,414,245
121,368,646
138,288,035
137,317,784
185,335,869
266,985,178
230,134,970
255,497,797

$664,857,448
602,430,661
552,640,350
590,093,365
586,696,855
429,499,252
488,591,471
485,920,021
301,600,202
222,217,308
206,913,521
191,885,973
144,634,367
130,323,281
103,327,617
68,443,635
36.045.228
28,157,065
25,691,157
26,980,926
40,147,625
55,520,536
48,977,349
56.953.229

$2,624,428,825
2,677,561,952
2,427,075,543
2,323,772,871
1,979,872,570
1,757,151,850
2,133; 883,626
1,998,400,779
1,834,549,789
1,534,631,137
1,520,198,682
1,373,362,025
1,178,169,736
1,029,582,595
971,015,072
813,153,024
750,789,144
683,229,599
692,079,249
658,526,806
699,285,878
815,265,486
893,268,703
851,066,173

$980,683,873
1,058,324,963
1,013,907,623
987,491,235
904,231,769
786,067,353
956,538,295
1,020,252,303
962,771,960
970,928,984
827,710,850
672,360,577
603,551,124
556,790,701
458,219,218
435,723,085
415,978,498
466,556,610
487,948,184
434,003,398
500,897,031
508,139,314
514,807,422
524,442,837

1913,
1912
1911
1910
1909.
1908.
1907.
1906.
1905.
1904.
1903.
1902.
1901.
1900.
1899.




St. Paul.

$2,850,362,611
2.713,027,216
2,578,730,359
2,634,557,738
2,395,530,983
1,847,511,624
1,649,175,013
1,331,675,055
1,197,905,567
1,097,887,156
1,074,878,589
988,294,998
918,198,416
775,264,813
648,270,711

$530,515,562
579,166,754
531,574,517
576,156,228
518,244,363
483,976,978
484,891,668
419,466,276
342,751,235
315,805,394
309,230,108
294,197,119
260,413,773
247,060,954
239,306,461

Minneapolis.

$1,312, 412,257
1,182. 232,466
1,068, 090,894
1,155, 659,665
1,029, 914,856
1,057, 468,860
1,158, 462,150
990, 890,203
913, 579,559
843, 230,773
741, 049,348
720, 752,332
626, 020,457
579, 994,076
539, 705,249

St. Paul.

Year.

Minneapolis.
$460, 222,572
539, 705,249
579, 994,076
626, 020,457
729, 752,331
741 049,348
843, 230,773
913 579,558
890,203
1,145, 462,149
1,057, 468,860
1,029, 914,855
1,155, 659,664
1,068, 090,893
1,182, 232,466
1,312, 412,256

1898.
1899:
1900
1901.
1902.
1903.
1904.
1905.
1906.
1907.
1908.
1909.
1910.
1911
1912,
1913,

St. Paul.
$221,105,689
239,306,455
255,840,110
260,413,678
294,097,110
309,230,101
315,805,393
342,751,234
419,466,276
484,891,667
433,976,978
520,614,861
576,156,208
531,574,516
579,166,753
530,515,562

990;

6.—Comparative production chief agricultural
1900-1912.

products,

[Bushels.]

1900
1912

Year.

1900
1912

Total United
States.

3,730,306,667
5,953,485,000

Total of 4
States:
Per cent of
Minnesota,
total
South Dakota,
United
North Dakota,
States.
Montana.
241,872,000
901,122,000

Total of 5
States: Missouri, Kansas,
Oklahoma,
Nebraska,
Colorado.

Per cent of
total
United
States.

865,250,000
1,142,081,000

23
19

Total of 4
Total of 5
States:
Per cent of
States: MisTotal all States
Minnesota,
total States souri, Kansas,
west of
South Dakota,
west of
Oklahoma,
Mississippi.
North Dakota, Mississippi.
Nebraska,
Montana.
Colorado.

Per cent of
total States
west of
Mississippi.

1,937,825,712
3,314,327,000

241,872,000
901,122,000

15

12
27

865,250,000
1,142,081,000

44£
34J

OATS, W H E A T , B A R L E Y , POTATOES, A N D R Y E .

Total United
States.

Minneapolis
and St. Paul,
$1,842, 927,819
1,761, 399,220
1,599, 665,411
1,731, 815,893
1,548, 159,219
1,541, 445,838
1,643, 353,818
1,410, 356,479
1,256, 330,794
1,159, 036,167
1,050, 279,456
1,014, 949,451
886, 434,230
827, 055,030
779, 011,710

$681,328,274
612,309,825
621,840,987
595,227,530
492,756,896
539,923,350
709,129,683
608,790,526
529,476,909

OATS, W H E A T , CORN, B A R L E Y , POTATOES, A N D RYE.

Year.

Kansas City.

Minneapolis
and St. Paul.

$460,222,572
414,597,615
392,965,674
372,895,344
308,900,020
332,243,860
438,053,526
366,715,248
303,912,012

$221,105,702
197,712,210
228,875,313
222,332,186
183,856,876
207,679,490
271,076,157
242,075,278
225,564,897

$19,487,650
72,100,087
87,437,487
99,677,059 $101,636,568
124,715,103 118,340,978
165,421,842 152,954,315
194,777,583 205,013,099
215,626,250 194,912,912
240,221,068 209,405,281
303,913,022 225,564,896
366,720,248 242,075,278
438,053,526 271,125,301
332,243,860 207,679,487
309,002,009 183,856,870
372,895,344 222,332,181
392,965,673 228,875,307
414,597,614 197,712,205

TABLE

Minneapolis.

St. Paul.

Yearly clearings of Minneapolis and St. Paul, 1881-1913.
Minneapolis.

1881
1882
1883
1884
1885
1886
1887
1888
1889
1890
1891
1892
1893
1894
1895
1896
1897

New Orleans.

Year.

$585,294,638
540,837,381
503,792,913
520,871,222
480,502,029
474,672,695
510,186,611
460,471,785
490,906,771

4.—Annual bank clearings.

$219,265,776
225,436,618
219,937,589
241,052,859
206,504,834
153,895,741
150,709,509
114,226,098
82,049,546
62,084,485
55,967,915
44,234,601
29,428,112
28,127,365
31,993,127
23,004,272
16,622,772
12,546,092
10,034,868
7,027,159
14,491,418

1913..
1912..
1911..
1910..
1909..
1908..
1907..
1906..
1905..
1904..
1903..
1902..
1901..
1900..
1899..
1898..
1897..
1896..
1895..
1894..
1893..
1892..
1891..
1890..

Kansas City.

1897
1896
1895
1894
1893
1892
1891
1890

Year.

Year.

4.—Annual bank clearings—Continued.

1900
1912

Year.

1900
1912

1,625,204,151
2,828,739,000

Total of 4
States:
Per cent of
Minnesota,
total
South Dakota,
United
North Dakota,
States.
Montana.

Total of 5
States: Missouri, Kansas,
Oklahoma,
Nebraska,
Colorado.

11
26

292,903,000
430,722,000

177,253,000
737,228,000

Per cent of
total
United
States.

18
15

Total of 4
Total of 5
States:
States: MisPer cent of
Per cent of
Total all States
Minnesota,
total States souri, Kansas, total States
west of
South Dakota,
Oklahoma,
west of
west of
Mississippi.
North Dakota, Mississippi.
Nebraska,
Mississippi.
Montana.
Colorado.
840,530,641
1,736,700,000

177,253,000
737,228,000

21
42

292,903,000
430,722,000

35
24£

263

MINNEAPOLIS; , MINNESOTA.
TABLE

7.—Production of farm crops in Minnesota, North Dakota,
South Dakota, and Montana, 1880-1912.

9.—Comparative statement of cars received and forwarded at
Minneapolis for 6 years ending Dec. 31, 1913—Continued.

TABLE

[Expressed in thousands.]

Year.

Wheat.

41,819
47,767
45,175
50,843
65,009
63,913
75,069
90,465
67,918
88,647
80,255
139,008
108,873
78,588
88,434
156,968
105,235
111,954
178,213
159,504
86, 765
193,429
188,952
175,931
156,390
195,033
178,950
159,213
178,550
227,188
156,920
144,234
282,389

1881,
1882
1883
1884
1885
1886
1887
1888
1889
1890
1891
1892
1893
1894
1895
1896
1897
1898
1899
1900
1901
1902
1903
1904
1905
1906,
1907
1908,
1909
1910
1911
1912

TABLE 8 . —

Oats.

Rye.

24,071
27,639
34,650
41,687
49,652
52,548
63,373
79,768
79, 538
78,996
66,045
95,698
76,465
71,052
73,654
117,664
89,013
68,782
89,966
88,325
63,428
115,054
142,467
125,453
150,318
162,757
167,409
138,813
133,702
217,157
151,065
151,005
293,390

260
272
487
656
665
629
544
384
684
1,361
1,031
1,389
1,364
1,158
1,323
1,606
1,133
1,119
1,296
1,438
1,195
2,836
3,381
2,866
2,658
2,650
2,804
2,652
2,660
3,394
2,758
5,400
7,437

Corn.

19,529
20, 799
25,795
20,049
37,601
33, 798
35,732
39,098
39,458
36,029
33,337
43,327
42,294
46,063
20,925
49,072
66,594
50,142
59,149
61,777
64,619
67,337
65,326
84,603
87,666
103,147
117,225
93,950
108,462
128,671
122,516
132,740
163,894

Barley.

3,493
4,557
7,730
8,057
11,021
10,506
9,759
11,540
13,426
11,735
14,027
19,132
17,782
14,652
15,738
28,963
18,574
25,838
18,070
16,679
11,020
36,103
51,407
51,640
59,952
162,757
70, 788
63,080
76,297
74,137
52,524
55,078
101,666

Potatoes.

6,056
6,384
6,551
7,374
7,213
8,225
8,799
10,661
12,782
12,620
11,516
10,642
11,300
11,760
8,889
33,508
20,276
10,876
15,699
19,052
14,845
15,625
20,059
16,152
21,821
18,452
20,276
23,024
30,380
31,300
16,920
38,997
52,346

Per
cent
increase
over

Total.

95,228
107,418
120,388
128,666
171,161
169,619
193,276
231,916
213,806
229,388
206,211
309,196
258,078
223,273
208,963
387,781
300, 825
268,711
362,393
346,775
241,872
430,384
471,582
456,645
478,805
644,796
557,452
480,732
520,051
681,847
659,615
527,454
901,122

-54
-48
-42
-31.5
-17
-18
-

6

Month.

1908

1909

1910

1911

1912

1913

16,619
18,354
18,695
21,826
39,040
35,904
25,938
24,076

19,333
20,207
17,917
20, 713
32,675
36,075
33,349
19,186

20,309
21,109
19,584
26,730
33,826
35,702
29,758
30,833

22,564
21,915
21,189
26,426
35,642
36,957
35,314
30,597

19,971
18,650
20,354
28,848
38,066
45,922
41,788
42,049

23,761
23,906
23,057
28,953
41,234
40,401
35,309
33,268

RECEIVED—con.

June
July
September
October
November
December

12

Total

3

11

50
25
8.5
1.5
88
46
• 30
76
68
18
109
128
121
133
213
170
133
153
231
220
156
337

United States production of wheat, rye, oats, corn, barley,
and potatoes, 1880-1912.

281,375 278,144 317,331 321,007 354,689 362,740

January
February
March

21,700
21,379
26,179
24,555
23,569
23,674
23,365
25,153
29,016
32,300
28,118
23,749

269,845 288,064 286,908 289,504 337,598 344,654

Total

*

1881
1882
1883
1884
1885
1886
1887
1888
1889
1890
1891
1892
1893
1894
1895
1896
1897
1898
1899
1900
1901
1902
1903
1904
1905
1906
1907
1908
1909
1910
1911
1912

498,550
383,280
504,185
421,086
512,765
357,112
457,218
456,329
415,868
490,560
399,262
611,780
515,949
396,132
460,267
467,103
427,684
530,149
675,149
547,304
522,230
748,460
670,063
637,822
552,400
692,979
735,261
634,487
664,602
683,350
635,121
621,338
730,267

TABLE

Rye.

Oats.

Barley.

24,541
417,885 1,717,435
20.705
416,481 1,194,916
29,960
488,250 1,617,025
28,059
571,302 1,551,067
28,640
583,628 1,795,528
629,409 1.936.176
21.706
624,134 1,665,441
24; 489
659,618 1,456,161
20,693
701, 735 1,987,790
28,415
751,515 2,112,892
28,420
523,621 1,489,970
25,807
738,394 2,060,154
31,751
661,035 1,628,464
27,979
638,855 1,619,496
26,555
662,037 1,212,770
26, 728
824,444 2,151,138
27,210
707,346 2,283,875
24,369
698,768 1,902,968
27,363
730,907 1,924,185
25,658
796,178 2,078,144
23,962
809,126 2,105,103
23,996
736,809 1,522,520
30,345
987,843 2,523,648
33,631
784,094 2.244.177
29,363
894,596 2,467,481
27,242
953,216 2,707,994
28,486
964,905 2,927,415
33,375
754,443 2,592,320
31,566
807,156 2,668,651
31,851
32,239 1,007,353 2,772,376
34,897 1,186,341 2,886,360
922,298 2,531,488
33.119
35; 664 1,418,337 3,124,746

45,165
41,161
48,954
50,136
61,203
58,360
59,428
56,812
63,884
78,333
67,168
86,839
80,097
69,869
61,400
87,073
69,695
66,685
55,792
73,382
58,926
109,933
134,954
131,861
139, 749
136,551
178,916
153,597
166,756
170,284
173,832
160,240
223,824

Potatoes.

167,660
109,145
170,973
208,164
190,642
175,029
168,051
134,103
202,365
204,881
148,290
254,424
156,655
183,034
170,787
297,337
252,235
164,016
192,306
228,783
210,927
187,598
284,633
247,128
332,830
260,741
308,038
298,262
278,985
376,537
349,032
292,737
420,647

Per
cent
increase
over
1890.

Total.

871,236
065,688
859,347
349,814
172,406
157,842
998,761
783,716
400,057
666,601
654,118
783,442
1,070,179
1,933,941
1,593,989
1,854,205
l,765,204
l,389,849
1,603,997
1,747,753
l, 730,308
1,335,665
,634,772
,074,445
,414,298
,779,967
, 147,910
,464,275

8
-22

8
26
19
19
13
5
28
34
43
16
10
- 2

45
42
28
36
41
41
25
79
53

10.—Total values of imports and exports of merchandise during
each calendar year, 1902-1912, Duluth, Minnesota, Montana and
Idaho, North and South Dakota.

TABLE

[Department of Commerce and Labor, Monthly Summary of Commerce and
Finance, December, 1912, pp. 768-769. j

Duluth.

North
Montana
Minnesota. and Idaho. and South
Dakota.

$130,210
137,787
142,499
101,134
95,338
138,575
109,974
143,158
399,396
482,104
2,138,681

$2,290,145
2,874,490
2,510,774
3,509,479
4,824,528
6,495,303
5,474,544
6,153,289
6,853,751
5,948,107
9,664,578

$363,108
562,978
748,666
1,308,885
1,333,873
1,797,212
1,453,919
1,703,698
3,015,307
904,848
2,370,980

$2,525,050
3,494,043
2,109,324
1,546,965
1,507,954
1,674,764
1,603,814
2,262,416
2,991,914
3,203,250
5,032,671

2,351,179
1,791,544
676,850
1,955,460
4,151,702
5,233,033
4,987,700
5,636,898
2,524,340
1,069,947
2,759,835

494,345
1,629,940
1,547,103
3,378,632
7,872,923
6,766,379
8,125,206
9,909,940
16,908,736
23,455,778
31,647.663

450.767 11,882,479
128; 242 11,525,106
247,463 13,595,397
411,391 14,798,133
560,574 14,637,833
919,783 10,187,810
1,043,856
7,099,607
1,397,940 10,511,820
2,241,295 15,820,844
3,071,028 19,766,516
4,918,480 24,656,849

80
94
68
70
90
99
72
184

9.—Comparative statement of cars received and forwarded at
Minneapolis for 6 years ending Dec. 31, 1913.

15,178,770
15,074,832
16,066,813
20,543,616
27,223,032
23,107,005
21,256,369
27,455,598
37,495,215
47,363,269
63,982,827

IMPORTS.

1902
1903
190 4
190 5
190 6
190 7
1908
190 9
191 0
191 1
191 2

1908

1909

1910

1911

1912

1913

Average
6 years.

RECEIVED.

January
February
March
April

22,208
19,211
22,787
16,717




19,153
19,896
22,401
17,239

26,404
25,078
27,821
20,177

24,503
20,653
24,304
20,943

25,225
26,169
25,946
21,701

30,912
27,221
30,211
24,507

33
22
18
20
30
15
19
29
20
82

EXPORTS.

190 2
1903
190 4
190 5
190 6
190 7
1908
190 9
191 0
191 1
191 2

TABLE

27
33
15

26
35

11.—Post-office receipts, Minneapolis and St. Paul, 1902-1913.
1902

Minneapolis...
St. Paul
Total....

Month.

Per cent
increase
over
previous
year.

$5,308,513
7,069,298
5,511,263
6,466,463
7,761,693
10,105,854
8,642,251
10,262,561
13,260,368
10,538,309
19,206,910

Total.

66

,618,001

,042,139
265,483
,561,220
', 953,485

19,140
18,736
25,236
22,858
22,828
23, 983
21,861
22,383
28,965
32,950
30,385
18,739

21,688
21,857
26,012
22,511
22,871
24,053
21,486
23,813
26,648
28,099
24, 725
23,145

20,312
20,085
27,204
24,731
23,828
22,834
22,554
25,915
26,211
28,440
24,435
22,955

20,410 28,568
22,720 24,830
26,621 28.962
27,437 28,378
24,974 26,924
24,169 26,142
25,571 27,213
28,404 29,059
32,791 31.963
39,364 34,874
36,257 29,300
28,880 28,441

20,084
20,046
23,043
21,419
19,991
20,866
21,508
21,346
27,520
30,075
23,611
20,336

May
June
July
August
September
October
November
December

Year.
Wheat.

20,426
20,690
20,132
25,582
36,747
38,493
33,576
30,001

FORWARDED.

[Expressed in thousands.]

Year.

Average
6 years.

24,734
23,038
25,578
20,214

1903

1904

1905

1906

1907

$961,004 $1,070,900 $1,189,572 $1,306,676 $1,452,440 $1,547,154
626,445
703,830
757,416
823,663 1,002,474
733,830
1,587,449

1,774, 730

1,923,402

2,064,092

2,276,103

2,549,629

1908

1909

1910

1911

1912

1913

Minneapolis... $1,576,082 $1,739,611 $1,968,715 $2,000,490 $2,150,195 $2,395,281
1,026,961 1,093,397 .1,186,140 1,206,334 1,278,598 1,479,751
St. Paul.
T o t a l . . . . 2,603,943

2,833,008

3,154,855

3,206,824

3,428, 793

3,875,032

264

LOCATION" OF RESERVE DISTRICTS.

12.—Bank clearings of Minneapolis and St. Paul for each
week from 1910 to 1913, and average weekly clearings for the 4-year
period.

TABLE

TABLE

City.
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis.
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis.
St. Paul
Minneapolis.
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. P a u l . . . .
Minneapolis.
St. Paul
Minneapolis.
St. Paul
Minneapolis
St. P a u l . . . .
Minneapolis
St. Paul
Minneapolis
St. P a u l . . . .
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis
St. Pau]
li.
Minneapolis
St. Paul
Minneapolis.
St. P a u l . . . .
Minneapolis
St. Paul
Minneapolis
St. Paul
Minneapolis.
St. Paul
Minneapolis.
St. Paul
Minneapolis.
St. Paul
Minneapolis.
St. Paul
Minneapolis.
St. Paul




1913

1912

1911

1910

13.—Bank clearings, nine cities, 1909-1913.
PERCENTAGE RELATIONS.

Average.

$28,014,075 $21,070,340 $19,237,580 $23,987,752 $23,077,436
12,635,035 8,895,514 9,851,551 10,885,277 10,566,844
28,712,740 19,308,992 20,540,321 24,895,156 23,364,302
10,157,369 9,931,138 10,066,195 10,094,653 10,062,338
26,580,759 18,230,533 20,832,580 23,128,480 22,193,088
9,457,667 9,460,339 9,475,328 9,849,067 9,560,600
24,635,493 17,957,502 19.059.932 21,382,750 20,758,919
9,001,293 10,155,614 9,260,126 10,360,266 9,694,324
22,401,132 18,940, 715 18,009,088 21,686,704 20,259,409
9,303,278 9,882,583 9,262,295 9,050,275 9,374,607
21,737,346 18,920,246 18,723,474 17,052,658 19,108,431
10,564,951 8,870,081 8,506,816 9,535,462
21,534,828 19,138,853 18,106,430 21,916,875 20,174,246
8,000,000 9,037,795 8,401,716 10,053,752 8,873,315
19,707,366 16,129,274 16,135,975 17,923,322 17,473,984
8,387,501 9,219,425 9,256,481 10,384,906 9,312,078
25,013,433 21,360,456 21,316,566 24,282,851 22,993,326
11,772,229 16,729,585 12,307,527 12,110,360 13,229,922
25,136,314 20,375,791 18,583,920 20,620,083 21,179,027
14,000,046 12,376,674 11,882,314 11,637,231 12, 474,066
23,336,085 20,419,540 18,828,534. 19,385,608 20.492,441
9,388,966 10,632,513 10,679, 727 11,430,937 10,533,035
19,498,313 17.714.480 17,223,406 17,808,869 18,061,267
9,621,361 12,475,800 11,995,854 10,605,532 11.174.636
23,154,296 16,995,026 17,175,161 21,629,729 19,738,553
11,721,804 12,817,811 9,009,988 12,179,640 11,432,310
21,273,790 18,139,368 18,779,482 19,390,427 19,395,766
9,149,823 8,775,266 10.614.933 11,277,387 9,954,352
21,323,231 22.451.481 17,139,167 20,758,536 20,418,103
8,825,795 11,117,634 9,667,976 11,372,707 10,236,015
22,267,526 18,551,939 19,599,826 19,084,435 19,875,931
9,790,889 9,512,993 11,580,880 10,559,044 10,360,951
20,459,467 17,586,081 17,938,135 17.688.171 18,417,963
9,272,740 9,811,800 8,952,961 10,088,247 9,531,437
22,010,858 20,842,979 19,772,518 20,409,221 20,758,894
8,752,239 10,684,686 10,816,941 12.789.442 10,760,827
21,370,432 18,871,877 18,122,890 20,243,142 19,652,085
8,627,015 9,227,245 8,968,241 11,474,014 9,574,128
22,204,769 18,801,294 16,762,856 18,535,694 19,076,152
9,558,898 10,206,302 8,597,795 10,237,500 9,600,123
19,243,970 16,892,348 16,634,146 18,759,988 17,822,613
9,583,264 9,870,456 9,511,237 11,835,885
16,863,892 14,531,525 15,580,833 16,645,955 15,905,551
8,000,000 8,201,392 8,337,964 10,711,941 8,812,825
22,778,496 19,190,583 19,076,835 18,677,639 19.930.888
9,796,473 10,553,264 9,884,068 9,708,752 9,985,639
23,477,280 19,377,883 17,903,161 19,308,597 20,016,730
9,252,326 10,859,279 9,608,378 11,475,817 10,298,950
24,150,586 18,777,050 18,338,286 18,379,952 19,911,468
9,116,827 10,889,784 9,437,019 12.336.085 10,444,928
22,089,431 17,381,843 16,662,695 19.550.443 18.921.103
10,094,115 10,684,912
12,544,952 10,828,336
18,532,738
16.646.086 18,586,696
10,009,828 9,921,432 17,167,961 10,089,986 9,725,197
8,879,543
22,718,208 19,962,477
17,350,945 21,090,235 20,280,466
9,594, 763 10,284,042
11,165,054 10,270,533
22,062,419 19,079,929 10,038,275 18,300,904 19,045,361
9,368,329 10.039.537 16,738,195 12,356,512 10,780,450
11,357,424
19,247,669 16,638,882
16,602,652 16,762,006
10,042,555 10,770,209 14,558,822 11,647,167 10,824,658
17,766,664 16,412,684 10,838,704 17,968,904 16,917,623
15,512,245
9,790,461 9,227, 734
10,951,131 9,798,573
20,155,978 19,562,214 9,224,968 17.028.726 18,422,253
9,057,322 9,217,165 16,942,094 9,131,571 9,168,884
9,269,477
21,592,589 19,495,970
21,247,368 19,801,567
9,824,147 10,223,133 16,870,342 9,834,564 9,650,355
20,500,000 17,762,109 8,719,577 19,172,894 18.554.104
16,781,414
9,442,191 10,213,335
9,625,232 9,734,143
25,997,440 21,110,328 9,655,816 20,262,331 21.640.889
9,456,786 9,016,763 19,193,456 8,088, 792 8,889,421
8,995,344
30,608,632 25,648,188
25.288.727 25,913,630
9,879,751 9,813,157 22,108,972 10,399,105 10,096,328
33,080,854 27,713,817 10,293,298 24,478,578 27,307,848
23,958,143
10,277,523 10,937,103
10,841,345 10,493,248
31,446,842 26,115,315 9,917,002 25,794,525 27,246,728
11,908,806 10,100,193 25,630,232 10,830,813 10,711,122
10,004,677
32,082,172 28,383,904
26.552.863 29,086,959
11,052,646 11,275,439 29,328,899 11,876,091 11.287.637
33,446,512 32,176,996 10,946,370 27,896,551 30,358,165
27,912,600
10,583,509 12,525,484
10,828,747 11,285,051
31,000,000 34,797,330 11,202,463 25,799,407 29,968,428
9,488,384 12,548,262 28,276,974 11,659,638 11,559,824
12,543,015
30,713,204 33,358,419
24,464,545 28,762,407
12,852,306 14,090,730 26,513, 460 14,592,857 13,455,256
31,223,874 35,545,251 12,285,131 26,791,838 31,422,759
32,130,074
10,842,289 14,763,525
12,216,616 13,003,889
37,616,505 32.665.212 14,193,127 22,723,010 30,800,836
12,588,870 13,337,585 30,198,618 12,805,707 12,674,502
11,965,845
33,263,924 36.280.213
26,343,107 30,839,229
12,854,282 15.462.180 27,469,673 12,850,627 13,379,645
32,283,723 33,320,529 12,351,491 21,636,880 28,270,754
25,841,885
13,249,780 16,098,880
13,210,128
26,076,457 28,676,725 13,123,990 10.367.864 25,860,088
26.687.172
12.412.892 12,843,351 11,530,862 13,927,238 12,678,586
34,202,040 34,686,591 28,394,549 23,079,517 30,090,674
12,090,251 12,091,388 11,510,072 13,085,005 12,194,179
30.170.893 33,257,431 26,201,835 25,000, " " 28,657,714
11,334,744 10,234,578 10,280,007 13,388,085 11,309,353
30,331,163 30.688.538 25,905,844 22,330,726 27,314,068
11,750,000 11,173,317 10,540,324 10,413,196 10,969,209
22,664,361 26.033.181 19*256,417 18,449,986 21,600,986
9,495,375 9, 794,381 7,944,975 9,179,915 9,103,661

10,200,000

10,200,210

©<N
T r-(
n

1909

City.

1911

1910

3
it C 05
Is
li

w ft
P
k
$206, 504,834 $241,052,:
466. 450,933 493,046,623
586! 696.855 590,093,365
1,979; 872,570 2,323,772,871
904, 731,769 987,491,235
1,395, 530,983 2,634,557,738
518, 244,363 576,156,228
1,029, 914.856 1,155,659,665
1,548; 159,219 1,731,815,—

Spokane
Denver
Seattle
San Francisco
N e w Orleans..
Kansas C i t y . .
St. Paul
Minneapolis...
Twin Cities...

Sa
•Si
t>

1912

1 1

W

4
>

City.

16.5 16.5 $219,937,
5.5
5.5 5.5 458,897,827 - 7
- 2
552,640,350 6.5 - 6
23
17 17 2,427,075,543 4
12.5
9 1,013,907,623 2
9
10 10 2,578,730,359 - 3 . 5 7.5
531,574,517 - 8
2.5
12 12
4
12 12 1,068,090,894 - 7
3
11.5 11.5 1,599,665,411

U

1913

4J >
® f C ft
H « ©
O ft ® S
T
H

£ ®

ft a sb
c© ©
ss

© (-1
© FT

o ft

©

P
H
$225, 436,618
487, 848,306
602, 430,661
2,677, 561,952
1,058, 324,963
2,713, 027,216
579, 166,574
1,181, 232,466
1,761, 399,220

Spokane
Denver
Seattle
San Francisco.
N e w Orleans..
Kansas C i t y . .
St. Paul
Minneapolis..
Twin Cities...

3

6
9
10
4.5
5
9
11
10

8.5
4.5
2.5
35
17
13
11.5
14.5
13.5

$219,265,776 - 3
5.5
425,607,021 13
-10
664,857,448 10
13
2
224,428,825
32.5
980,683,873 - 7 . 5
8.5
2,850,362,611
19.5
5
530,515,562 - 8.
2
1,312,412,259 11
27.5
1,842,927,819
4.5 19

14.—Comparative statement of capital, surplus, undivided
profits, banking capital, gross deposits, loans and discounts, all
banks, Minneapolis and St. Paul, 1904-1913.

TABLE

Year.

Capital.

Surplus.

$5,735,000
6,235,000
6,335,000
6,835,000
6,360,000
8,625,000
9,905,000
10,430,000
10,630,000
11,180,000

$2,759,000
3,202,000
4,338,000
5,407,000
5,977,000
6,675,000
6,672,000
7,083,000
7,332,000
7,616,000

4,655,000
4,980,000
4,750,000
4,750,000
4,850,000
4,875,000
4,900,000
4,950,000
4,950,000
7,225,000

1,249,000
1,465,000
2,173,000
2,544,000
2,848,000
3,123,000
3,593,000
3,977,000
4,249,000
4,679,000

22,000,000

Banking
capital.

Gross
deposits.

Loans and
discounts.

$859,000
1,111,000
1,330,000
1,350,000
984,000
1,257,000
1,443,000
1,938,000
2,359,000
2,482,000

$9,353,000
10,548,000
12,003,000
13,592,000
13,321,000
16,557,000
18,020,000
19,451,000
20,321,000
21,278,000

$47,074,000
54,382,000
70,534,000
79,326,000
88,287,000
102,861,000
95,947,000
106,346,000
115,666,000
119,097,000

$36,102,000
41,846,000
57,217,000
60,097,000
62,386,000
72,879,000
71,617,000
75,814,000
83,455,000
87,053,000

743,000
862,000
508,000
64,000
582,000
799,000
833,000
905,000
939,000
1,279,000

6,647,000
7,307,000
7,491,000
7,935,000
8,280,000
8,797,000
9,326,000
9,832,000
10,138,000
13,183,000

Undivided
profits.

MINNEAPOLIS.

1904....
1905....
1906....
1907....
1908....
1909
1910....
1911....
1912....
1913....
ST.
PAUL. 1

1904....
1905....
1906....
1907....
1908....
1909....
1910....
1911....
1912....
1913....

1

32,074,000
36,870,000
41,357,000
42,653,000
48,473,000
51,848,000
50,349,000
56,417,000.
53,352,000
68,428,000

20,285,000
24,502,000
26,561,000
27,295,000
29,816,000
34,024,000
34,476,000
36,768,000
36,337,000
48,494,000

Including Stock Yards National Bank, South St. Paul.
T A B L E 15.-—Twin

City banks, 1912.

[Figures for national banks taken from the report of the Comptroller of Currency.
1912; those for State and savings banks and trust companies taken from third
annual report, department of banking, Minnesota, 1912.f

22,000,000

Capital
and
surplus.

Deposits.

Resources.

MINNEAPOLIS.

National banks
State banks
Savings banks
Trust companies

$14,209,894 $43,232,170
8,341,439
1,404,230
19,786,428

2,300,666

$5,980,6i6

265

MINNEAPOLIS; , MINNESOTA.
15.—Twin City banks,

TABLE

1912—Continued.
Capital
and
surplus.

Deposits.

TABLE

17.—Freight traffic—Cars received and forwarded, bo commodities, Minneapolis and St. Paul, 1913—Continued.

Resources.

Total received and forwarded.
Commodities.

National b a n k s . . .
State banks
Savings banks
Trust companies..

Minneapolis.

574,182 $26,681,695
531,418
2,382,736
5,370,939
625,000

National b a n k s . . .
State banks
Savings banks
Trust companies..

22,784,076
1,935,648

$2,031,102

69,913,865
10,724,175
25,157,367

8,012,021

2,925,000

TABLE 16.—Combined Minneapolis and St. Paul banks and trust
companies—capital, surplus, deposits, loans and discounts, due to
banks, 1904-1913.
MINNEAPOLIS.

Agricultural implements and
machinery
Grain and seeds
Hay and straw
Linseed oil
Lumber
Cement, brick, e t c .
Coal
Flour
Millstuffs
Live stock
Meat and packing-house products
Merchandise
Oil cake and meal
Miscellaneous
Total

Capital.

Loans and
discounts.

Deposits.

Surplus.

© t-i

tOJ
u
p c®

<

$1,435,000
1,435,000
1,485,000

1,660,000

18.—

£
ft

$305,
250,
150,
150,
650,
675,
740,
890,
740,

i,115;

0
-18

-40

0

333
4

10

14
-17
50

0

763,519

$2,302,410
3,086,924
3,068,801
3,083,683
325,747
296,767
356,169
264,341
350,397
301,958

0

5

1'

0
1
1

-

-950
9
20
- 27
32
- 14

0

- 5
-18

12
166
9
29
9
16
18

$484,411
442,383
245,652 333,797
331,330
375,972
395,909
391, 111 556,493
532,179 -

45
36

- 1
13
22

Value of various crops—Minnesota,
and South Dakota.

1902

1903

North Dakota
South Dakota

$32,451
1,177
7,642
11,687

$48,062
1,577
32,028
27,381

$48,649
1,460
36,466
25,065

$48,750
1,838
34,802
29,297

$59,460
2,311
43,653
24,930

Total
United States

52,957
323,515

109,048
467,350

111,640
422,224

114,687
443,025

130,354
510,490

1906

1907

Minnesota
Montana
North Dakota
South Dakota

$51,428
2,019
52,180
29,569

$36,271
2,110
49,074
25,593

$62,192
3,243
47,963
28,907

$64,444
3,185
62,954
34,833

Total
United States

135,196
518,373

113,048
490,333

142,305
554,437

165,416
116,826

1909

1910

1911

Minnesota
Montana
North Dakota
South Dakota

$54,811
5,439
107,439
42,354

$60,160
6,622
34,650
41,581

$40,420
9,470
65,148
13,468

$48,938
12,381
99,236
36,008

Total
United States

210,043
730,046

143,013
561,051

128,506
543,063

196,563
555,280

Total..

MinneMinneapolis. St. Paul. apolis
excess.

370,011




3,577
8,209
4,934 149,274
6,837 - 2,599
16
5
18,768 - 6,190
7,476
1,241
29,247
3,658
1,238
2,690
3,370
42,746 - 4 2 , 7 4 6

9,607
71,673
574
3,303
7,161
1,961
229
13,017
29,956

3,164
1,089
667
2,259
9,354
2,821
452
918

'iilrn

59,589

1,706
3,503
4
9,741

156,095
6,916
33,016

248,566

121,448

393,508

70,584
93
1,044
- 2,193

1912

1900

1901

1902

1903

Minnesota
Montana
North Dakota
South Dakota

$10,058
1,079
2,016
3,037

$22,350
2,228
7,780
6,649

$22,210
2,401
7,948
6,989

$20,643
2,636
6,772
7,907

$22,146
2,900
7,442
6,956

Total
United States

16,190
208,669

39,007
293,659

39,548
303,585

37,958
267,662

39,444
279,900

1905

1906

1907

Minnesota
Montana
North Dakota
South Dakota

$19,361
3,177
10, 717
6,464

$19,443
3,741
10,931
11,602

$25,414
5,410
12,936
12,764

$25,372
5,177
13, 750
12,872

Total
United States

39,717
277,048

45,717
306,293

56,524
235,568

57,171
381,171

1904

860

-

223
12,099
29,956
-16,071

11,982 - 1 1 , 9 8 2
72,830
83,765
6,916
2,276
29,740
162,282

1908

OATS.

-

1904

2

MinneMinneapolis
apolis. St. Paul. excess.

68,926
4
69,330

North

1901

Forwarded.

1,706
72,432 -

Montana,

1900

42
4

Received.

11,786
154,208
4,238
21
12,578
8,717
32,905
3,928
3,370

46

34

17.—Freight traffic—Cars received and forwarded, by commodities, Minneapolis and St. Paul, 1913.

Agricultural implements
and machinery
Grain and seeds
Hay and straw
Linseed oil
Lumber
Cement, brick, etc
Coal
Flour
Millstuffs
Live stock
Meat and packing-house
products
Merchandise
Oil cake and meal
Miscellaneous

352,671

1905

$92,500
$1,698,219
$1,618,
95,500
3 1,672,444 - 2 1,539,
70,000 - 2 7 1,428,788 - 1 4 1,259,
95,400 36 1,508,997
1,413,
246,350 270 5,001,112 231 3,758,
264,500
7 5,850,748 17 4,092,
288,500
9 7,520,638 63 5,269,
449,025 55 8,183,501 - 1 4 5,725!
476,900
6 9,618,627
6,649i
533,845 12 10,968,894 14 7,845,

Commodities.

410,848 1,174,367

44

WHEAT.

i N o record for savings banks and trust companies.
TABLE

-13,688
68,824
6,920
13,017

13,688
225,02i
156,197
6,920
102,346 "" 89,329'

ST. P A U L .

1904 i.
1905 i.
1906 i.
1907 i.
1908..
1909..
1910..
1911..
1912..
1913..

13,688
381,218
6,920
191,675

58,817

Per cent.
218
3,150
-36
46
30
4
12
3,460

^Expressed in thousands.]

a

sg

$10,719,576
10,726,928
12,356,681
13,170,799
11,647,946
12,132,386
17,825,638
17,957,013
19,005,171
23,091,458

503,937
490,384
392,530
533,633
589,039
968,833
624,520
409,702
452,416
087,501

$459,000
531,500
684,000
923,000
1,160,500
1,388,350
1,127,950
1,189,000
1,430,100
1,536,000

1,635,000
1,575,000
3,130,000
3,180,000
3,255,000
3,280,000

fl
®

n

s

Cars.
14,652
219,858
- 2,692
1,049
- 8,383
381
3,435
74,789
33,326
-58,817

NOTE.—Reductions of commodities reported in tons, barrels, and pounds to cars,
are computed upon the following table of equivalents: 10,000 pounds merchandise,
1 car; 250 barrels flour, 1 car; 40 tons coal, 1 car; 20 tons millstuffs, 1 car; 20 tons oil
cake, 1 car.
TABLE

o
0

s
1904 i.
1905 i.
1906 i.
1907 i.
1908
1909..
1910..
1911
1912..
1913..

I oi
II

€g
11

28,134
231,904
12,316
5,599
47,861
20,975
62,833
79,101
33,326
58,817

6,741
6,023
7,504
2,275
28,122
10,297
29,699
2,156

Due to banks.

W©
E ,3
Jc
Year.

21,393
225,881
4,812
3,324
19,739
1,067
33,134
76,945
33,326

MinneSt. Paul. apolis and Minneapolis excess
over St. Paul.
St. Paul.

230,226

1908

266
TABLE

LOCATION" OF RESERVE DISTRICTS.
18.—

Montana, North

Value of various crops—Minnesota,
and South Dakota—Continued.

TABLE

18.—

OATS—Continued.

RYE.

1909

Total
United States

1910

1911

$32,864
5,798
21,743
14,812

Minnesota
Montana
North Dakota
South Dakota

Value of various crops—Minnesota, Montana, North
and South Dakota—Continued.

$27,341
6,817
5,607
10,695

$26,886
8,466
21,004
4,900

1912
$31,965
7,997
20, 948
13,098

1900

50,460
408,388

61,256
414,663

74,005
452,469

$927
29
146
239

$930
30
207
283

$787
29
158
282

$1,055
29
249
318

1,341
16,910

1,450
17,081

1,256
15,994

1,651
18,748

1905

1906

1907

1904

1901

>2 0
,2
14
160
401

1904

34
11

$435

Total

1900

1903

12,295

75,217
405,120

Minnesota
Montana
North Dakota
South Dakota

CORN.

Minnesota
Montana
North Dakota South Dakota.

1902

1901

1902

1903

$16,109
70
699
13,429

$13,531
59
722
12,223

$15,476
57
910
14,566

$15,051
59
766
15,788

18,795
751,220

26,535
30,307
921,556 1,017,017

31,009
952,869

31,664
1,087,461

1905

1906

1907

Minnesota
Montana
North Dakota
South Dakota

$16,169
52
885
16,001

$17,051
61
1,626
18,216

$21,802
61
1,848
21,700

$25,759
85
2,314
28,838

Total
United States

31,107
1,116,697

36,954
1,166,626

45,411
1,336,901

56,996
1,616,145

1909

1910

1911

Minnesota
Montana
North Dakota
South Dakota

$33,270
236
2,718
27,779

$30,019
350
1,705
21,000

$39,294
424
4,350
26,935

64,003
1,477,223

53,074
1,384,817

71,003
1,565,258

$1,026
27
281
330

1,373
17,414

19,671

1,674
23,068

1,664
23,455

1909

1910

1911

Minnesota
Montana
North Dakota
South Dakota

$1,368
44
272
341

$1,251
54
81
363

$3,501
132
454
99

$3,013
141
406
162

Total
United States

2,025
23,809

1,749
23,840

4,186
27,557

3,722
23,636

1902

1903

9

$5,769
881
822
1,035

$5,466
999
976
1,559

$4,059
1,148
885
953

8,523

8,507
134,111

9,000
151,638

7,045
150,673

1905

1906

1907

Minnesota
Montana
North Dakota
South Dakota

$5,513
969
918
1,279

$4,486
1,307
1,135
1,240

$6,004
1,350
1,490
1,638

$6,171
1,932
1,428
2,066

Total
United States

8,679
160,821

8,168
157,547

10,482
184,184

11,597
197,039

1910

1911

$845
24
208
296

Total
United States

$28,925
428
3,766
28,248

Total
United States

$1,079
32
227
336

1909

Total
United States.

204
280

Minnesota
Montana
North Dakota
South Dakota

61,367
1,520,454

1908

1912

BARLEY.
1900

1901

Minnesota
Montana
North Dakota
South Dakota

$2,765
97
670
479

$9,756
365
2,904
2,739

$9,604
337
5,710
3,393

$10,280
425
4,489
3,517

$10,279
324
4,905
3,132

Total
United States

4,011
24,075

15,764
49, 705

19,044
61,899

18,711
60,166

1905

1903

1906

1907

1904

1908

Minnesota
Montana
North Dakota
South Dakota

$9,284
281
5,798
2,889

$11,057
265
5,219
7,331

$17,864
400
9,075
12,276

$15,925
534
8, 432
11,558

Total
United States

18,252
55,047

23,872
74,236

39,615
102,290

1912

POTATOES.

1900
Minnesota
Montana
North Dakota
South Dakota

$2,591
340
753
1,451

Total
United States

5,135
90,811

18,640
58,652

1902

$854

1908

1901
$49

1904

1908

36,449
92,442
1912

1909

1910

1911

Minnesota
Montana
North Dakota
South Dakota

$14,852
1,197
8,913
8,960

$16,191
903
2,985
10,633

$26,904
728
17,404
4,847

$17,227
755
12,307
9,686

Minnesota
Montana
North Dakota
South Dakota

$6,440
2,295
1,980
2,520

$6,442
2,550
1,306
2,057

$15,008
2,997
2,772
2,822

$9,261
2,442
1,864
2,344

Total
United States

33,922
93,971

30,712
93,785

49,883
139,182

39,975
223,824

Total
United States

13,235
206,545

12,355
187,985

23,599
233,778

15,911
212,550




1912




NEW ORLEANS, LA.

NEW ORLEANS, LA.
NEW ORLEANS, THE LOGICAL POINT FOR THE LOCATION OF THE REGIONAL BANK.
By

SOL

In view of my active interest in the provisions of
the Federal reserve act and my familiarity with the
many problems which it embraces, I am sure no one
realizes more than I do the grave difficulties with
which you are beset and the tremendous responsibilities which have been thrust upon you as the
organization committee charged with the inauguration and installation of an entirely new system of
currency and banking in this country. I realize more
than most men the excellence, the importance and
beneficent results that will obtain from the Federal
reserve act, and how much credit and gratitude is due
the present Democratic administration and the chairman of this committee by the whole American people
for its speedy enactment into law and for the excellence and soundness of its provisions.
In advocating the city of New Orleans as the only
fitting and logical location for a regional bank to serve
the vast territory embraced in what is known as the
Gulf and contiguous States, I have given the most
careful consideration to the claims of our sister
cities and States for the definite purpose of ascertaining if I have been blinded by local patriotism in my
conclusions, and with the full intention, if I found the
claims of any other city in this territory superior to
that of New Orleans, to lay aside civic ambition and
yield our claims for the common good. No patriotic
citizen of this country and no good adherent of the
Democratic Party has the right to approach this subject from any other standpoint than that of disinterestedness and altruism, for the success of the system
of banking and currency which we are about to install
involves the welfare of this and future generations,
the future success of our party, and the financial and
commercial supremacy of the Nation.
But the consideration and study of the reasons for
the location of a bank here, in connection with and in
comparison with those of any city within a thousand
miles of us, gives no cause for hesitation in placing
before you the following important facts immediately
bearing upon and pertinent to the subject.
We believe that the territory to be served by New
Orleans should embrace all that territory radiating
from Louisiana as the center westward to the line of
New Mexico, thus taking in the State of Texas; east-




WEXLER.

ward to the Atlantic Ocean, taking in the States of
Mississippi, Alabama, Florida, and Georgia; and northward, taking in that part of the State of Tennessee lying west of the Tennessee River. This territory contains 860 national banks, with an aggregate capital
and surplus of $148,900,000, capable of furnishing a
capital to the regional bank, based upon 6 per cent of
$8,900,000 and deposits based upon 5 per cent of an
aggregate of $473,500,000, without counting Government deposits of $24,000,000.
We estimate that in the same territory, State banks
and trust companies have an aggregate capital and
surplus, according to the comptroller's report (all
banks not being represented), of $130,000,000, which,
if 50 per cent of them came into the system, which I
believe to be a conservative estimate, would give an
additional capital of $3,900,000 and additional deposits of $8,000,000, or combined with the national
banks, a regional bank with—
LIABILITIES.

Capital
Deposits
Circulation
Discounts (profit and loss)

$12,800,000
32,000,000
82,500,000
760,000
128, 060,000
RESOURCES.

Gold against deposits (35 per cent of $32,000,000)
$11,200,000
Gold against Federal reserve notes issued (40 per cent
of $82,500,000)
33, 000, 000
Bills discounted
83, 600,000
Balance gold on hand
260, 000
128,060, 000

And, as the total bills payable as shown by the
comptroller's report of all of the banks in Texas,
Louisana, Mississippi, Alabama, Florida, and Georgia,
for the last year, at the maximum period, only aggregate $34,600,000, it can be readily seen that the statement that a regional bank located in New Orleans
could not take care of the business is an absurdity.
N. B.—United States deposits are not included in
this calculation.
In this territory the most remote city having a
national bank to the west of us would be El Paso, Tex.
(1,192 miles, or 36 hours); to the east Brunswick, Ga.
269

270

LOCATION" OF RESERVE DISTRICTS.

(689 miles, or 26 hours and 40 minutes); to the north
Paris, Tenn. (529 miles, or 16 hours and 10 minutes).
Such most western city would be nearer Houston by
only 362 miles, farther from Atlanta by 857 miles;
farther from Birmingham by 777 miles, farther from
Memphis by 758 miles.
The territory above described is connected with
New Orleans by Western Union and Postal Telegraph
lines and long-distance telephone; as far as the mouth
of the Rio Grande River by sea; and by rail by the
Southern Pacific and its many connections; Texas &
Pacific and its many connections; St. Louis & San
Francisco and its many connections; New Orleans,
Texas & Mexico and its many connections; Atchison,
Topeka & Santa Fe and its many connections, and
Louisiana Railway & Navigation Co. To the eastward
by the Louisville & Nashville and its many connections; Southern Railway and its many connections;
Mobile & Ohio and its many connections; Queen &
Crescent system and its many connections; New
Orleans, Mobile & Chicago (now building into New
Orleans); New Orleans Great Northern, and Gulf &
Ship Island. To the northward by the Illinois Central and its nany connections; Yazoo & Mississippi
Valley and its many connections; and Louisville &
Nashville.
The entire territory is also in connection with New
Orleans by steamboat and barge transportation
through the Intercoastal Canal being built by the
United States Government, now constructed from
Texas almost to New Orleans, and proposed to be
constructed from New Orleans eastward to Pensacola.
which will put New Orleans in communication with
points along the Sabine, Calcasieu, and Mermenteau
Rivers to the west without going into the open sea.
At the present time New Orleans reaches the territory
lying along the Pearl River, Amite River, Pascagoula
River, Warrior and Alabama Rivers, all connected
with the Mississippi River, through Lake Borgne
Canal. The Mississippi River running through the
city of New Orleans to the Gulf puts it in connection
with the Red, Arkansas, White, Ohio, Missouri, and
Illinois Rivers and with all of their tributaries, so that
probably no city in this country affords such varied,
extensive and competitive transportation facilities to
the domestic territory it will serve by rail, sea, river,
and canal, as the city of New Orleans.
But, if in your wisdom and as a result of your investigations you should see fit to exclude from this territory the State of Georgia on the east, you would reduce the capital of the regional bank located here, according to the Comptroller's figures, all banks not being
represented, only $2,421,000 and its deposits,
$4,532,000; and if in addition to Georgia you saw fit to
exclude that part of Texas claimed by St. Louis, Denver, and Kansas City, lying west of Austin, you would
reduce the capital of the regional bank $1,133,000 and




the deposits $2,774,000; and again, if you saw fit to
exclude the part of Tennessee lying west of the Tennessee River, you would reduce the capital $591,000, and
the deposits $1,657,000; or, if you eliminated all three
of the last-named sections, the total reduction of capital
arising from national and State banks would only be
$2,598,000, and deposits $6,240,000, leaving, if one,
two, or the three were eliminated, the following capital
and deposits:
National banks.
Capital.
Entire territory
Excluding—

State banks.

Deposits.

Capital.

$8,900,000 $24,000,000

West Texas
West Tennessee
Georgia and west Texas
Georgia and west Tennessee.
West Texas and west Tennessee
Georgia, west Texas and
west Tennessee

Deposits.

$3,900,000

$8,000,000

7,430,000
7,952,000
8,720,000
6,482,000
7,250,000

20,800,000
21,515,000
23,445,000
18,315,000
20,245,000

2,949,000
3,715,000
3,489,000
2,764,000
2,538,000

6,668,000
7,711,000
6,897,000
6,379,000
5,567,000

7,772,000

20,960,000

3,304,000

6,608,000

6,302,000

17,760,000

2,353,000

5,276,000

The present banking capital and surplus and deposits
of New Orleans as compared with the cities of Atlanta,
Houston, Birmingham, and Memphis are as follows:
Capital
and surplus
and
undivided
profits.

City.

New Orleans
Atlanta
Houston
Birmingham
Memphis

$18,797,000
15,000,000
13,400,000
7,083,100
8,804,600

Deposits.

$86,032,110
33,000,000
42,000,000
27,289,000
35,130,000

The comparative total resources are as follows:
New Orleans
Atlanta
Houston
Birmingham
Memphis

$110,000,000
51,000,000
57,000,000
35,510,000
45,934,000

The capital and surplus of the regional bank to be
located here, taking in the territory only embraced in
the yellow lines shown on the map, will be $8,655,000
capital and $23,036,000 deposits.
A statement of the comparative distances of the
principal cities from New Orelans is as follows:
Miles.

Mobile
Pensacola
Atlanta
Montgomery
Birmingham
Chattanooga
Nashville

1410
243
495
318
415
498
622

Miles.

Memphis
Little Rock
Dallas
Austin
Houston
San Antonio
Galveston

396
487
515
528
362
571
412

The establishment under the old law of central
reserve cities created an artificial flow of money into
the central reserve cities not justified by the natural
course of finance and of commerce, but which after
many years came to be regarded as natural and which
will invert to natural local channels just as soon as

N E W ORLEANS, LOUISIANA.

the compulsory feature is removed; and as the natural
channel to which money should flow is to the point
from which it can be most readily and quickly obtained
and to which the products grown, manufactured, and
exported drift. The points from which a section purchases its supplies have an insignificant effect upon
the trend of money, for the exchange created by the
shipment of a carload of hay from a Texas point to
North Carolina can be converted into cash more
quickly by depositing it with its local bank and it in
turn with the regional bank or with its nearest correspondent, which for the territory referred to would
be New Orleans, though in respect to distribution of
merchandise New Orleans is many millions in excess
of any other city under consideration at this session.
This bill, as I understand its provisions, is intended
to decentralize the control of money and credit under
central control, and to attach to the city of St. Louis
the great States of Texas, Mississippi, Louisiana, west
Tennessee, in addition to its legitimate territory,
would absolutely defeat the purpose of the bill and
concentrate in one city a control never intended either
by nature geographically nor by the framers of the
bill. To place a regional bank in Birmingham, or in
Memphis, or in Houston would be to create an impossibly weak bank in relatively small inland industrial cities, having neither knowledge nor experience in
international trade, nor in the handling of the variety
of merchandise, the production of our own country
and that of every country on the globe, such as comes
to the port of New Orleans, and could be properly
compared to placing a regional bank in Albany instead of the city of New York, or in Milwaukee instead
of Chicago.
New Orleans purchases now a considerable percentage of the foreign exchange arising from the exports
of cotton from cotton exporters located in Houston
and Galveston, and will purchase every dollar of exchange created in the entire territory whenever the
facilities arising from the regional bank are at its disposal and its natural connections are not diverted by
operation of law to other centers.
I t has been said that New Orleans, being at times
a rediscounting city, can not facilitate the territory,
which statement surely arises from a misconception
of conditions, as well as from a misunderstanding of
the purposes of the regional bank. If the funds now
carried by New Orleans banks in Chicago and New
York as reserve were carried at home, New Orleans
would never need to borrow a dollar and would have
surplus funds to lend. There is never a time when
the indebtedness of New Orleans banks to their correspondents is not less than the amounts which they have
on deposit with them at the time; and if the reserves
of the great States of Texas, Louisiana, Mississippi,
Alabama, Georgia, Florida, and Tennessee, or the parts
of these States referred to as an alternative territory,
are kept in a regional bank here, where they belong,




271

not only will this bank be able to care for the requirements of its territory liberally, but it will be able to
help out other sections in their time of need. In the
panic of 1907 no one had nearly the trouble to draw
funds from New Orleans as was experienced in some
of the other cities. New Orleans exchange at no time
went above $2.50 per thousand, while Pittsburgh and
St. Louis exchange was sold at $10 per thousand discount. We bought foreign exchange in St. Louis with
our balances to get the funds out of that city.
Furthermore, if I correctly understand the proper
method of conducting a regional bank, its credit facilities should always be a reserve facility, used only when
the general credit facility of the country for legitimate
commercial purposes has been exhausted. Just in the
same manner as the Bank of England maintains a
rate of interest slightly in excess of the general private
discount rate in order to force the stock of credit to
be taken up first, and thus not compete with it, so do
I understand the regional bank will see to it that its
facilities will be kept in reserve, thereby preventing
undue expansion and thereby being certain to have the
credit facility when urgently needed. For this reason the great general credit facilities of the country
will be just as available to banks as heretofore, and
they are adequate in ordinary times, and when inadequate in times of great industry and large crops, and
periodically at certain seasons of the year during the
heavy marketing period, the reserve banks will supply
the deficiency.
I t has also been contended that a bank located in a
section of great agricultural importance should be tied
to a bank in a different territory, this contention having been made at the St. Louis hearing and it is much
more specious than sound. There is no city of importance in this Union—other than New York, Boston, and
Philadelphia—which does not serve an agricultural
community to a greater or less degree; nor are there any
crops of great volume or importance grown in the
United States which do not move practically at the
same time. Cotton, corn, wheat, oats, barley, sugar
cane, sugar beets, rice, and fruits, constituting 80 per
cent of our agricultural production, move in the fall of
the year, practically at the same time; and no city
properly serving such a community, whether it be St.
Louis, Chicago, Minneapolis, or Kansas City, is any
more free from strain at that period than is New
Orleans; many of them borrow surreptiously abroad or
sell out of their portfolio to other cities, in order not to
show the same in their bills payable, under the absurd
idea that a bank should not employ the idle funds of
another section when needed in its own, while New
Orleans to serve its section openly uses its credit
facilities and facilitates the stupendous volume of
business which is naturally tributary to it.
The volume of foreign exchange against actual
exports of merchandise handled in New Orleans last
year aggregated $174,207,400, this exchange being
created locally and in Mississippi, Alabama, and Texas,

272

LOCATION" OF RESERVE DISTRICTS.

and being against the greatest variety of commodities
shipped to almost every country on the globe.
In addition to the foreign exchange above referred to
New Orleans issues commercial letters of credit for the
importation of merchandise of approximately $20,000,000 per annum, and which business shows a constant growth from year to year.
The volume of country checks cleared through New
Orleans last year, drawn on points in the territory
claimed as our legitimate territory, aggregated $478,042,000, and come to us from all of the States in the
Union; and, were it not for the "window-dressing77
proclivities of some competitive cities, which handle
business at a loss in order to swell figures and footings
and which New Orleans has never done, it would be
10 times the amount, and as soon as the regional banks
are established and the unfair embargo upon business
imposed by some country banks for the service disappears the volume handled here will be equal to the
entire volume of business in this territory.
The total clearnings of New Orleans amounted to
over $1,000,000,000 last year, an increase of 100 per
cent in the last five years.
In considering these clearings it must be remembered that New Orleans' clearings are settled each day
in cash and not in cashiers' checks, a custom which
prevails in other cities and which cashiers' checks are
again sent through the clearing houses, thus creating a
duplication which gives a fictitious amount and creates
the impression of a much larger volume of business
than is actually conducted.
New Orleans is the only port south of Philadelphia
which has any number of regular sailings to foreign
ports. Merchandise can be consigned to New Orleans
for export to meet regular sailing days, while in nearly
all of the other Gulf and South Atlantic ports this business is done by tramp steamers with no regular sailings.
The steamship lines sending their ships to this port are
shown on this map. To Panama and Central American Republics, we have almost daily sailings, furnished
by three steamship lines having their main offices in
New Orleans. The practically water-grade haul for
railroads to the south, and the freedom from snow and
ice throughout the year, make it certain that the port of
New Orleans is the natural funnel through which the
vast quantity of exports and imports of the entire territory between the Allegheny and the Rocky Mountains must find its way to and from foreign markets.
New Orleans as a port is America's port and is so
desirably located that it should be a national port and
should be, and I believe will eventually be, developed
by the National Government to enable it to care for
economically the stupendous quantities of incoming
and outgoing merchandise to and from the rest of the
world, for which this city will be the depot. The
trend of transportation will henceforth, with the
opening of the Panama Canal, be north and south and
no longer east and west. I t is as inevitable and cer-




tain as the law of gravitation. To care for the present
a regional bank for this territory must be established
here; its management here will need to be as able in
many respects as that of New York; its business will
be as complex and its variety equally as great. As to
the future, within a decade the regional bank at New
Orleans will be second only to that of New York in
size and importance, if we grasp our opportunities and
do not allow Germany and England to capture the
trade of South America, Central America, Australia,
and the Orient.
I have made no mention of the variety of our agriculture and industries, and shall only enumerate them here
to show the variety thereof, and that a regional bank
established here will serve a greater variety of commodities than a regional bank in almost any other city.
The agriculture of the section shown on the map as
being served by a regional bank located here is as
follows: Cotton, oats, rice, tobacco, wheat, hay, strawberries, corn, sugar cane, citrus fruits, vegetables of
every kind.
The mineral production is as follows: Iron, natural
gas, building stone, coal, sulphur, oil, and salt.
The live-stock production is cattle, poultry, hogs,
sheep.
The sea products are oysters, shrimp, fresh and saltwater fish.
The forest products are pine, gum, cypress, ash,
white oak, poplar, and many other hardwood varieties.
The goods manufactured are cotton cloth, yarns,
knitted goods, steel rails, wire, pipe and rolling-mill
products generally, tin and galvanized-iron cans,
tanks, culverts, stoves, cooperage, sash, doors, and
blinds, cross ties, furniture, wagons and carts, fertilizers, chemicals, acids, soap, lard compound, cottonseed oil, cottonseed meal and cake, mixed stock and
poultry feed, cigars, cigarettes, and smoking tobacco,
sauces, pickles, preserves, vinegar, molasses and sirups, jute and cotton bags, alcohol (natural and denatured), boats and boat oars, gasoline, naphtha, lubricating oils, paraffin, rosin, turpentine, tar, cement,
roasted coffee, clothing for men, women, and children,
and many more too numerous to mention, but sufficient, surely, to show that there need be no fear of an
inadequate diversification of collateral.
I t is indeed unfortunate that some of our sister
cities can not see the manifold advantages of a great
regional bank on the Gulf coast at New Orleans, and
allow their petty trade jealousies to favor a more remote
city, not realizing as they should that every dollar
kept near home is as available to them as it would
be if the regional bank were located in their own city.
Several gentlemen, experts in their line, will give,
you a few facts pertinent to the subject, and, when
they have been heard, we will leave our case in your
hands in full confidence that neither political influence, petty jealousy, nor ambition will sway your
judgment.

OMAHA. NEBR.

46458°—S. Doc. 485, 63-2




18

273

OMAHA, NEBR.
BRIEF OF THE BANKS OF OMAHA AND SOUTH OMAHA.

SATURDAY, JANUARY 2 4 ,

1914.

H o n . WILLIAM G . MCADOO,

Secretary of the Treasury.
H o n . DAVID F .

HOUSTON,

Secretary of Agriculture.
H o n . JOHN SKELTON

WILLIAMS,

Comptroller of the Currency,
Organization Committee.
G E N T L E M E N : The undersigned bankers of Omaha
would respectfully submit for your consideration the
claims of Omaha as the proper location for a Federal
reserve bank under the new currency and banking act.
In offering this showing we do not exaggerate our
claims so as to embrace territory which does not
naturally belong to us and with which we have had
no close association in the past.
We observe that this has been done by some of
the cities which are desirous of being designated..
If it were the policy of the committee to form
large districts, without special reference to 1 'the convenient and customary course of business/' then we
submit that Omaha would be the natural center of the
most productive agricultural section of the country—
that section lying west of the Mississippi River and
north of the State of Missouri.
Its peculiar location in the very center of the corn
belt naturally places it in the front rank for everything
having reference to that great cereal. The corn crop
of this section, in its northern part, may at times be
shortened by early frosts, and in its southern part may
be affected at times by the hot winds of the south;
but extending in this manner from the north to the
south, this shows that, lying between the extremes of
heat and cold, it is the only section which may be
relied upon for a sure crop every year.
These facts, with its preeminence as a market for
other grains, would seem to give Omaha an assured
position as its financial center.
Assuming, however, that it is your intention to
favor the organization of smaller districts in which the
required amount of national bank capital and surplus
may be obtained, and that in forming them you will
make, as you have announced, ' 'every effort to promote business convenience and normal movements of




trade and commerce," we shall limit our claims to
conform to these considerations.
The trend of travel and business from the West
and Southwest have centered* at three conspicuous
points on the Missouri River and the upper Mississippi.
That from the Northwest section goes to St. PaulMinneapolis, the Central West section goes to Omaha,
and the Southwest to Kansas City. There can be no
dispute concerning these three points—no rival claims
can be advanced against them.
A due regard to the facts of the situation and the
business interests of the tributary country would seem
to dictate the designation of these three cities for
Federal reserve banks.
The three districts, extended to where they will
meet the districts assigned to the Pacific coast, contain
each the required amount of national bank capital
and surplus for the organization of a reserve bank.
Denver has been suggested for one of these banks,
but we submit that if this would carry Nebraska or
any part of it to that point, it would be an unnatural
forcing of the business of a most important agricultural
section of the country into channels it has never followed.
Sufficient national bank capital and surplus do not
exist in the territory which might be assigned as tributary to Denver to permit of the organization of a reserve bank. To add to that district Nebraska and
Kansas, or any part of them, in order to make up the
deficiency, would meet with the unanimous disapproval
of every business interest in the territory affected.
Nebraska is comparatively thickly settled with a
population of 1,200,000 by the last United States census, and it extends for nearly 400 miles east of the
arid lands which form the eastern boundary of
Colorado.
Its products and business are entirely different
from those of Colorado and the course of its trade
and commerce has always been eastward—never
westward.
The factory output and wholesale jobbing business
of Omaha in 1913 alone amounted to more than
$ 3 5 0 , 0 0 0 , 0 0 0 , and the value of Nebraska's crop of
corn, wheat, oats, and hay for 1912 was alone over
$228,000,000. This does not include its cattle, hogs,

276

LOCATION" OF RESERVE DISTRICTS.

poultry, and other items, which greatly increase the
figures. Its corn crop for 1912 in value exceeded
the total gold production of the United States for the
same year.
The figures of Colorado compared with these will
show their insignificance.
To put these large interests into a district with
Denver would not only subject to great inconvenience
the banks dealing with the reserve bank, but would
render more difficult the obtaining of the information
concerning credits, which will form so important a
part of a reserve bank's operations.
Such an arrangement as this would tend to impair
the usefulness of and throw discredit upon the system
of banking you are about to introduce, and in which
we are earnestly interested and wish to make successful to the fullest extent possible.
The district which we ask for Omaha embraces a
country with which it has been closely and for the
most part intimately connected since the beginning
of its settlement.
It contains one of the greatest agricultural producing territories in the world, and parts of it are still
undeveloped. I t is a reasonable estimate to believe
that in its limits, and within 20 years, production
will be more than doubled.
Nebraska alone has 49,000,000 acres of land,
28,000,000 of which are the most productive lands
known to agricultural experts.
BANKING

RELATIONS.

Taking up first the question of banking relations
in the past and present, we would state that from the
earliest settlement of this western country Omaha has
always been an important banking town. Every
bank which came into existence in the Territories
(now States) west of us found it necessary to keep an
account in Omaha.
This was occasioned not only because it was the
end of overland travel before railroads came into
being, but also for the fact that the first overland railroad made its start from Omaha, at an initial point
fixed by President Abraham Lincoln, and also from
the fact that it was the headquarters of the military
department under whose direction was achieved the
conquest of this great West from its savage inhabitants. The course of railroad construction followed
the pioneer trails, and these lines, now many in number, have an unerring trend to Omaha.
The report of the comptroller for October 21, 1913,
showed for the national banks of Omaha and South
Omaha:
Capital and undivided profits
$9, 374, 553
Individual deposits
34, 996, 297
•Total deposits (including banks, excluding Government)
59,087,679

The bank clearings increased 130 per cent in 10
years.




In 1913 they aggregated $908,947,659.
The clearings of 1913 exceeded those of 1912 to
the extent of $48,066,102.
Omaha was the forty-first city in population in
the United States by the census of 1910, but it was
the sixteenth in bank clearings.
Denver, while the twenty-seventh in population,
was the twenty-sixth in bank clearings.
In the territory which is contiguous to Omaha
there are national and State banks as follows:
Banks.
State.

Nebraska
Iowa
Colorado
Wyoming
Utah
Idaho
South Dakota
(a part south
and west of
Missouri
River)

National.
245
340
127
30
23
56

11

Capital and surplus.

State.

National.

State.

Individual deposits.
National.

721 $24,623,080 $17,750,342 $94,583*916
1,406 32,712,437 47,338,200 135,016,202
194 18,580,854
8,600,600 86; 059,943
70
2,912,500
1,765,000 14,047,563
6,000,000 19,730,645
88 5,047,200
4,482,500 19,874,330
138 5,048,342

70

900,000

1,430,000

5,622,500

State.
$89,228,695
284,897,500
35,637,500
5,702,500
33,097,700
15,464,500

5,778,000

That portion of this territory which we think
should be embraced in an Omaha district is as follows :

Nebraska
Colorado
Wyoming
Utah
Idaho..
South Dakota (southwestern part).

$24,623,080
18,580,854
2,912,500
5,047,200
5,048,342
900,000
57,111,976
13,000,000

Iowa (western part)..
Total

70,111,976

That Omaha holds at the present time a considerable part of the banking accounts in this district is
shown in the Comptroller's report.
There was then due from Omaha and South Omaha
to national and State banks $24,091,382. These
deposits were distributed as follows:
State.
Nebraska
Iowa
Colorado
Wyoming
Utah
Idaho
South Dakota (part of)

Accounts.

*

1,952
271
58
121
22
40
87

Deposits.
$14,298,600
2,584,400
1,898,700
2,191, 400
294,500
347,600
658,300

With the view of obtaining the sentiment of the
banks in this territory we sent circulars with a return
card inclosed, reading as follows:
V.

B.

CALDWELL,

President Omaha Clearing House Association.
D E A R S I R : AS between Omaha, Lincoln, and Denver for a Federal reserve bank, in a zone covering western Iowa, Nebraska, Colorado, Utah, Wyoming, Idaho, and the southwest portion of South
Dakota, we favor
(Write in Omaha, Lincoln, or Denver.)

OMAHA,

Responses have been returned as follows:
State.
Nebraska
Iowa
South Dakota
Wyoming
Idaho
Utah
Colorado

Banks Answers
addressed. received.
950
775
81
.75
175
125
350

910
406
29
50
56
20
172

For
For
Omaha. Lincoln.
845
400
28
33
38
4
5

65
None.
None.
None.
None.
None.
None.

For
Denver.
None.
6
1
17
18
16
167

BUSINESS.

Omaha is the third largest packing center in the
world. I t is the largest sheep market, third largest in
cattle, third largest in hog receipts, and the second
largest feeder market.
Total animals received, 1913
Total animals slaughtered, 1913

6, 900,000
4, 667,439

It is the second largest corn market in the United
States.
It is the fourth primary grain market of the United
States and has reached that position during the past
10 years.
It is the largest creamery butter producing center
in the world.
It has the largest smelter of fine ores in the United
States. Its business for 1913 was as follows:
Gold
Silver
Lead
Copper
Total value

.ounces..
do....
tons..
pounds..

270,257
18,550,140
126,399
19,304,471
$30,715,820

The value of the output of manufacturers in
Omaha for 1913 was $193,385,671. Its jobbing wholesale business was $161,626,639.
RAILROADS AND MAIL

SERVICE.




Chicago, Burlington & Quincy—Continued.
Between Orfiaha and Sioux City
Between Omaha and Chicago
Between Omaha and points south
Between Omaha and St. Louis
Local

Chicago and
Between
Between
Between
Local

45
Northwestern:
Omaha and Sioux City
Omaha and Chicago
Omaha and Black Hijls

8
16
2
18

:

Total

44

Chicago, Milwaukee & St. Paul:
Between Omaha and Chicago
Between Omaha and South Dakota points

6
4

Total

10

Chicago, Rock Island & Pacific:
Between Omaha and Chicago
Between Omaha and Colorado points..

12
6

Total...

18

Union Pacific
Illinois Central: Between Omaha and Chicago
Chicago Great Western:
Between Omaha and Chicago
Between Omaha and points north

-

j

Total

26
4
2
4
6

Missouri Pacific: Between Omaha and points south
Chicago, St. Paul, Minneapolis & Omaha: To the north
Wabash: Between Omaha and St. Louis

8
6
4

Respectfully submitted.
B y F I R S T NATIONAL B A N K OF OMAHA,
H.

J.

H.

Vice President.

DAVIS,

B y OMAHA

NATIONAL

BANK,

President.

MILLARD,

B y NEBRASKA NATIONAL B A N K OF OMAHA,
H.

W.

President.

GATES,

B y MERCHANTS NATIONAL B A N K OF OMAHA,
L.

President.

DRAKE,

B y UNITED

STATES NATIONAL B A N K

OF

OMAHA,
M.

T.

President.

BARLOW,

B y STOCK YARDS NATIONAL B A N K
SOUTH

OF

OMAHA,

H . C. BOSTWICK,

President.

B y PACKERS NATIONAL B A N K OF

SOUTH

OMAHA,

Jr., President.

J O H N F . COAD,

B y CITY NATIONAL B A N K
JOHN F . HECOX,

OF

OMAHA,

Vice President.

B y CORN EXCHANGE NATIONAL BANK
OMAHA,
W.

T.

AULD,

President.

B y L I V E STOCK NATIONAL B A N K
SOUTH
C. F .

6
4

2
7
6
2
18

Total

F.

We would direct your attention especially to the
map we submit of the railroads running into Omaha.
It will be seen that every line west converges to
Omaha, and the same is very nearly the case in Iowa.
The inconvenience that would exist for bankers
west of Omaha should they be obliged to go to a
junction point and wait for a train going west is too
plain to require further reference.
Omaha is the direct line of transcontinental travel
between New York, Chicago, San Francisco, Los
Angeles, Portland, and Seattle. Denver is off the
line of transcontinental travel.
Of the total transcontinental passenger traffic it is
estimated that fully 49 per cent passes through
Omaha, the remainder being divided between St.
Paul and Kansas City.
There are 10 trunk lines with Omaha as a terminal,
these trunk lines operating 20 separate and distinct
lines, each tapping a separate territory and each territory having a distinct mail service.
The number of trains in and out of Omaha daily is
171, divided as follows:
Chicago, Burlington & Quincy:
Between Omaha and Denver
Between Omaha and Billings

277

NEBRASKA.

OF

OMAHA,

MCGREW,

B y STATE BANK
ALBERT L.

OF

President.
OMAHA,

SCHAUTZ,

President.

OF







PITTSBURGH, PA.

PITTSBURGH, PA.
FINAL BRIEF.
P I T T S B U R G H , P A . , February 26, 1914The Reserve Bank Organization Committee,
Washington, D. C.
S I R S : Availing ourselves of the opportunity extended by you for presenting further facts and arguments in favor of the establishment of a Federal
reserve bank at Pittsburgh, we submit herewith our
final brief.
Our chief concern is in the arrangement of the territory between Chicago and the Atlantic coast, and we
want to call your attention again to the desirability of
our plan as against any conflicting plan that has been
submitted.
*
In asking that the territory comprised in our district
No. 3 be assigned to a bank located in Pittsburgh, we
believe we have done no injustice to any other section
of the country. We have shown that there is enough
banking capital practically in Pittsburgh to capitalize
a Federal reserve bank, and that there is enough additional capital in the immediate neighborhood to make
it a very strong bank; and we have also shown that
this could not be diverted to any other section without
doing violence to the ordinary course of business.
That the Pittsburgh banking institutions are strong,
is evidenced by the fact that we have larger capital
and surplus in proportion to deposits than any other
city in the United States. Artificial methods sometimes attract deposits, but they never attract bank
capital and surplus. If the business were not here, the
money would not be here, and if you will analyze the
industrial exhibit we filed at the time of our hearing in
Washington, you will find it even more remarkable
than the financial exhibit.
Our methods of handling bank accounts have frequently been criticized by some of our competitors,
and it has been charged that we attract balances by
paying excessive rates of interest and providing expensive facilities free, for our customers.
These charges certainly did not originate with the
patrons of our Pittsburgh banks, for we have great difficulty in persuading them that our terms are as liberal
as those offered by our competitors. Pittsburgh's
method of handling bank accounts is more consistent
than that employed by any other city in this section.




Because of a very active market, we figure that we
can pay 3 per cent, or its equivalent, on bank balances,
but we insist that this is the limit, and while we pay
maximum interest and furnish maximum facilities, it
is well understood by our correspondents that they
can not have both ut the same time. We give them
their choice; some accept the maximum rate of interest
and ask for practically nothing in the way of facilities,
others want part interest and part facilities, and some
of the largest balances in the Pittsburgh banks to-day
draw no interest at all. The correspondents take their
compensation entirely in facilities. And where the
maximum rate of interest is paid, no expensive facilities are provided unless the correspondent reciprocates
by furnishing facilities in return. And, as the result
of careful investigation since our appearance in Washington, we are satisfied that the average cost to the
Pittsburgh banks of bank balances, including interest
and facilities, will not exceed 3 per cent.
Pittsburgh accumulates these bank balances because
she is an industrial and financial center and the natural
clearing house for all this section of the country. This
can well be illustrated by showing the relation the banks
in the State of West Virginia sustain to Pittsburgh.
There are 310 banks in that State, but only 116 of them
are national banks. Under their State law the State
banks can carry their reserve in any city or town in
that State, and in many instances they can get 4 per
cent, but the State banks in West Virginia maintain over
200 accounts in Pittsburgh. These, of course, include
duplicates, but it shows clearly that outsiders do not
carry their balances here merely for the sake of interest.
As stated above, there are 310 banks in the State
of West Virginia, and since our appearance in Washington we have ascertained that they maintain 351
accounts in Pittsburgh, and while there is some duplication in the list, it certainly shows that West Virginia finds it quite convenient to bank in Pittsburgh.
We have laid claim to a large part of West Virginia,
and, while because of its peculiar shape, it would be
impossible to devise any scheme that would be satisfactory to all the banks in that State, we believe as
the evidence accumulates you will find yourselves
fully justified in attaching all of it except the eastern
Pan Handle to the Pittsburgh district.
281

282

LOCATION" OF RESERVE DISTRICTS.

Having disposed of this, we turn for a moment to
In making a poll of the national banks of that State
you will find a number of them expressing a preference the national banking resources of the two cities. The
for Baltimore, but please note that in our outline we last compilation made by the Government shows:
put the eastern section in the Baltimore or Washing- Cleveland: 7 banks; capital, $9,600,000; surplus,
ton district, and with the exception of that section we $4,800,000; individual deposits, $45,514,000. Pittsdo not believe you will find a large number of the banks burgh: 22 banks; capital, $25,900,000; surplus,
asking for Baltimore in preference to Pittsburgh.
$22,614,000; and individual deposits, $122,424,000.
Cincinnati would be more convenient to the southIf this comparison should be carried to the State
ern section of the State, and that city will doubtless institutions, the showing would be still more favorreceive a number of votes, but the larger institutions able to Pittsburgh; for Cleveland's one conspicuous
of the State, and particularly the State banks, all of institution, with an immense line of deposits, is
which are qualified to enter the system, are located in merely a savings society, with no capital stock and
the section of the State convenient to Pittsburgh.
no commercial business, and consequently could never
Turning again to our contention that we have been qualify as a member of the system, while Pittsburgh
fair in our demands, it might be asked why we include has one State institution which is already eligible
the city of Buffalo in our district. We admit that the with a capital and surplus of $31,500,000.
western corner of New York, which we attach to disCleveland is in no sense a "center" within the
trict No. 3, is debatable territory, but Buffalo is not meaning of this act. She is not even a center of the
asking for a bank, and as she is three hours nearer surrounding country; she absorbed that some time
Pittsburgh than New York, and as our business rela- ago. There is nothing north of her but water, and
tions have been close and cordial, we were under the the territory west of her could be served better from
impression that that section might concur in our ar- Chicago, and to carry thQ entire Pittsburgh district to
rangement. But if they prefer other affiliations we Cleveland in order to capitalize a bank there, would,
have no desire to coerce them.
in our judgment, be wrong.
I t is only 25 miles from Pittsburgh to the eastern
The cities of Buffalo and Detroit, each as well
line of the State of Ohio, and a large part of that located, and with claims just as good as Cleveland,
State would naturally belong in the Pittsburg dis- recognized their geographical limitations and did not
trict.
ask for a bank.
The question might be asked by what process of
The Pittsburgh district as outlined, after eliminating
reasoning we included Cincinnati in the Pittsburgh dis- all debatable territory, would be strong, evenly baltrict. We say frankly, this was done because some of anced, and self-supporting. While the bankers of
our committee were afraid to interfere too much with this section recognize the fact that rediscounting is a
State lines. We admit, however, that that city and legitimate function of the banking business, local
the western tier of Ohio counties would be better conditions make it largely unnecessary. An examserved by a district farther south or west. But that a ination of the reports in the Comptroller's office will
large part of the State of Ohio could be served in a very
show that at the time of the October call, the city
acceptable manner by Pittsburgh is clearly demonbanks with a borrowing capacity of $25,000,000
strated by the fact that Ohio bankers are maintainshowed only $600,000 rediscounts, and that at the
ing 413 accounts in this city. So, after eliminating
time of the January call this had dropped to $530,000.
all debatable territory, this still leaves a very strong
The other national banks in the Pittsburgh district
district with Pittsburgh as the center and Cleveland
are even stronger in this respect than the city banks;
as part of the circumference.
and the ast report made by the State banking instituHaving demonstrated tho necessity of a Federal
tions showed that with a borrowing capacity of
reserve bank in this section, the only remaining
$96,000,000, their rediscounts were only $77,500.
question appears to be shall it be located in PittsYou will observe by these figures that Pittsburgh is
burgh or Cleveland.
not seeking finanical aid, but we have always suffered,
The contention of our neighbor that she is a larger
and are suffering to-day, from the lack of facilities.
city than Pittsburgh is based on the fact that she has
During these hearings you learned through witnesses
assimilated the most of Cuyahoga County.
Now, by referring to the Government census of from Oklahoma and other distant sections that Pitts1910, you will see that Cuyahoga County, in which burgh capital is developing oil and gas fields and openCleveland is located, has a population of 637,425, ing mines and mills all over the United States. So
while Allegheny County, a territory of no greater we repeat, we are not asking for more money, but for
extent, in which Pittsburgh is located, has a popula- better facilities, and we are looking for this new system to supply what the old system failed to furnish.
tion of 1,018,463.




PITTSBURGH,

During the hearings in Washington a banker from
another city remarked that nobody wanted Pittsburgh
exchange. Unfortunately, this is true, and nobody
regrets it more than the bankers of Pittsburgh, but it is
the fault of the system under which we are operating
and not the fault of the Pittsburgh bankers. New York
carries Boston, Albany, and Philadelphia on its discretionary list, that is to say, they can and do accept
checks and drafts on these points at par. But while
the Pittsburgh banks have millions of dollars on deposit
in New York, it would, under their clearing-house
rule, cost a New York banker $5,000 to cash a Pittsburgh draft without making an exchange charge of $1
per thousand, even though the Pittsburgh banker was
pledged to redeem it at par the next day.
With our enormous pay rolls, all of which are made
in currency, it is impossible for us to take care of our




283

PENNSYLVANIA.

reserve requirements in New York and make enough
eastern exchange to meet our demands, and the result
is the exchange rate always runs against us.
If we could have a Federal reserve bank here, then
we know that Pittsburgh exchange would be worth
100 cents on the dollar anywhere in the United States,
and that is the condition we so earnestly desire.
We sincerely hope that this new law will make the
recurrence of a condition, such as prevailed in 1907,
absolutely impossible.
Gentlemen, our case is in your hands, and we
believe you will deal justly with us.
Respectfully submitted.
T.

H.

GIVEN,

JOHN R .

MCCUNE,

CHARLES

MCKNIGHT,

Committee.




RICHMOND, VA.

RICHMOND, VA.
A NATURAL AND ECONOMIC TERRITORY FOR A FEDERAL RESERVE DISTRICT WITH RICHMOND
AS THE LOCATION OF A FEDERAL RESERVE BANK,
Committeerepresenting Richmond: Appointed by city of Richmond, Richmond Clearing House, Richmond trust companies, Richmond Chamber of Commerce, Richmond
Business Men's Club, Post "A" Travelers' Protective Association, Richmond branch United Commercial Travelers, Richmond Retail Merchants' Association, Richmond Real Estate Exchange, Richmond Association of Credit Men, Richmond Tobacco Exchange, Richmond Rotary Club, Richmond Bar Association, Richmond
Ministerial Union.]
B y GEORGE J .

The territory mapped out by nature as the most
perfect geographical division of this continent lies
south of the Potomac River, east of the Appalachian
Mountains, and extends to the Gulf. By reason of
superior facilities of communication and the consequent trade relations which have sprung up and
become established, portions of contiguous States are
now and long have been commercially allied with this
territory.
It is therefore believed that one of the most sharply
defined and perfect zones for the operation of a Federal reserve bank is embraced in the following-named
States: Virginia, North Carolina, South Carolina,
Georgia, Florida, the southern half of West Virginia,
part of eastern Tennessee, and part of eastern Kentucky.
Since the organization committee has at all of its
hearings sought and invited the expression of opinion,
we now desire to express the conviction that the committee can render an inestimable service to the country,
the value of which will grow with time, by defining the
Federal reserve bank zones in harmony with commercial zones determined by natural boundaries so far as
may be done in agreement with the act.
It has been recognized as desirable, for purposes of
economic comparison, to cut the country into units or
divisions.
Given a natural division of territory, and tke conditions in it, financial and commercial, must always be
more uniform than could otherwise be the case.
The comptroller has adopted 6 divisions, within State
lines.
The Interstate Commerce Commission, for comparison of the operations of railways, has made 10 arbitrary divisions, within State lines*
Poor's Manual, a very high railroad authority of
very long experience, makes 8 divisions, within State
lines.
The United States Government has established 9
judicial circuits, 1 of which comprises the States of
Maryland, West Virginia, Virginia, North Carolina,
and South Carolina. Richmond was selected as the
location of the court of appeals for this circuit, and the
chief justice sits here.




SEAY.

There are no standard divisions.
Comparisons by States will always be desirable and
necessary, but these divisions are too numerous for
economic purposes.
The Federal reserve act marks an epoch in the commercial and financial history of the United States, and,
while zones once determined may be readjusted, the
service which can now be rendered to the country by
the committee in fixing these zones, which need not
be coterminous with States, and therefore are contemplated to be according to the natural divisions and
trade relations of the country, is of the very highest
order.
In fixing the zone which we have mapped out we
have been guided by this principle, and in presenting
an argument to prove that Richmond can better serve
this zone than any other city in it, and that by reason
of her commercial and financial preeminence she is
entitled to be the location of a Federal reserve bank,
we have endeavored to eliminate all irrelevant matter
and have confined ourselves to the consideration of
the following points, all of which are involved in the
operation of the act:
1. The importance of Richmond's geographical position—her facilities of communication, her convenience
of location and accessibility to members with whom
we now do business, and her advantage of location in
all banking transactions between the North and South.
2. The present trend of business—the present course
of commercial transactions—the natural currents of
exchange—the present banking and trade connections
and banking customs of the people.
3. The natural advantages of Richmond's location
with relation to other Federal reserve banks necessary
to be established on the Atlantic seaboard, in a territory embracing one-half of the national banking
capital of the United States and 41 per cent of the
population.
4. Comparative commercial importance in the territory covered, measured by capital, deposits, and
other banking transactions.
5. Diversity of industries and agriculture—in their
effect upon seasonal demand for credit and currency.
6. Necessity of having capital resources to handle the
business of the district.
287

288

LOCATION" OF RESERVE DISTRICTS.

7. The wishes and views of those engaged in banking and commerce in the district outlined as to the
location of their regional bank.
In presenting our case we shall be compelled to state
facts and figures which we know to be within the
knowledge of the committee, and with which by now
we fear they may be surfeited. We desire to bring
these facts together and present them in such form
and manner as will serve for convenient reference, and
to make more clear their relations to each other and
their bearing upon our position.
Addressing ourselves to these facts in their order:
1. T H E

UNSURPASSED

ADVANTAGE

GEOGRAPHICAL

OE

RICHMOND

IN

POSITION.

Practically and effectively on the Atlantic seaboard,
about midway of the entire coast—reaping the greatest
advantages of the favoring curve—opposite the gap
in the Appalachian Mountains giving the shortest,
easiest, and quickest communication between the
coast and the great centers of the Middle West; within
one hour and a half of the greatest of Atlantic harbors—plans being now under way to make it the
greatest naval base—in quick communication by rail
and water with all other parts of the coast and easily
accessible to the ocean commerce of the world. Rear
Admiral Stanford has just made the following report
on this harbor:
The most frequent mobilizations of the fleet are in Hampton Boads
and large ships ordinarily assigned to other yards must pass this
point proceeding to and from the Gulf to the West Indies. In view
of this central location, and the use of Hampton Roads as a base of
operations, there is greater possibility of unforeseen repairs being
required for vessels than at any other coast point.

Richmond has three north and south trunk lines—
the Atlantic Coast Line, the Seaboard Ail Line, and
the Southern Railway—and we may be pardoned for
reminding the committee that the genius, brains, and
energies of Richmond men were very prominent in the
development of the last two, and are prominent in the
management of the first.
Two of the most important east and west trunk
lines—the Chesapeake & Ohio and the Norfolk & Western—connect Richmond with the finest coal area in the
world and the greatest naturalproducingarea on thiscontinent, while into Norfolk, within two hours and a half
travel from Richmond, run the Virginian Railway from
the West and the Norfolk & Southern from the South.
All of which is well known to you, but necessary to
be stated for the logical bearing of our argument.
We wish to impress upon the committee the natural
advantages of the territory surrounding Hampton
Roads, because it is generally regarded as inevitable
that the heaviest population of the State will be divided
between Richmond and that territory. Mr. 0 . P.
Austin, for 15 years Chief of the Bureau of Statistics
of the Department of Commerce, in a report on the
2one which we have mapped out, which report fully




confirms our own argument and position and accompanies this brief, refers to "the possibilities of the
great harbor at Hampton Roads becoming the natural
gateway for the Mississippi Valley, with its enormous
production for foreign markets, and consumption of
foreign merchandise." He also states that "the
officers of the War Department in charge of the 105
river and harbor works on the water frontage from the
upper Potomac to the western coast of Florida, report
the value of the water-borne freight traffic at these
places in 1912 at the enormous sum of $1,680,000,000,
about one-half of which is at Hampton Roads."
We believe that this region must and will have an
economic development which will far surpass any
equal area in the Atlantic States—all of which has a
practical and most intimate bearing upon Richmond
as the location of a Federal reserve bank for the South
Atlantic States.
Reverting to Richmond's railroad facilities—they
place her within 18 hours of all the important cities
within the district defined, with the exception of part of
he most southern territory, and reference is made to
the map and time table accompanying.
She is therefore in a position to ship with the greatest
promptness and under the quickest schedule—currency—not only to the banks in her zone, but to the
numerous cotton, tobacco, and peanut buyers—and a
telegram received in Richmond before the close of banking hours would enable currency shipments to reach
practically all important points on the next day, in
most cases before the opening of bank, and few situations will appeal more strongly to practical country
bankers than this.
Again, Richmond is within easier and quicker reach
of all the eastern centers of trade and finance than any
other important southern city, and is in the most
exceptional position to act for the North in banking
relations with the South, and for the South in dealing
with the North.
No other city in the Atlantic Coast States occupies
this advantageous position.
The numerous lines to the South and West are not
only a guaranty of promptness and efficiency, but
an insurance against disaster.
Into Washington and Baltimore and on to points
beyond there is only one connecting line.
I t is worth while to consider that a railway disaster,
easily imaginable, to this line would cut off the South
from any reserve centers placed north of Richmond,
and should this occur at a critical time, might cause
financial confusion and even disaster to the South
Atlantic States, and, since this idea emanates from
a railroad man, it is entitled to the greater consideration.
2. P R E S E N T T R E N D O F

BUSINESS.

I t is a fact, certainly applicable to the Atlantic
Coast States, that the trend of business, the course of

RICHMOND, > VIRGINIA.

commercial transactions, and the currents of exchange
are northward, or, in other words, from the outside
toward the centers of finance and manufacture.
This is the natural course of exchanges.
We believe that the operation of the Federal reserve
act will revolutionize the existing method of using
exchange in making settlements.
No act or rule will, however, reverse the natural
course of settlements—where the money is due, there
it must be paid.
Virginia, occupying the position of head of the
Southern States, places Richmond in direct line with
this natural trend, on the principal avenues of travel
and transportation.
The railway lines from the South come into Virginia as into a funnel, Richmond being at the apex—
the one line of railway being the tube leading to Washington and points north. She is a natural converging
point.
The overwhelming volume of travel and transportation must go through this point.
3. T H E

NATURAL

ADVANTAGES

OF R I C H M O N D ^

LOCA-

T I O N W I T H R E F E R E N C E TO O T H E R F E D E R A L

RE-

S E R V E B A N K S ON T H E ATLANTIC SEABOARD.

I t is plainly contemplated in the act, and must so
work out in its normal operation, that these Federal
banks will act not only as clearing houses for members
in their own zones, but between zones. The clearings
between zones we believe will develop into enormous
proportions, and the bank most advantageously
located for clearing the transactions of any large section of country will have a great service to perform.
Time and distance must necessarily be most important factors in determining the location and selection of this bank for such a purpose.
To best perform it, the means of communication
must be superior.
The bank should not only be readily accessible to
members in its own district, but in the general line of
trade and natural current of banking transactions of
the entire section, so as to preserve the continuous
trend toward the center of manufacture and finance
where the greatest volume of settlements is made.
This essential principle is peculiarly applicable to
the Atlantic Coast States, and can there be worked out
to greater economic advantage than in any other part
of the country.
I t is axiomatic that quickness of communication is
better assured by being on the lines of greatest frequency of travel, and all railroad schedules have been
arranged with regard to the northward trend and with
particular reference to the financial and business
centers in line with that trend.
Therefore, to serve its own zone as a whole with the
highest efficiency and economy, and at the same time
to equally serve other zones in intimate relation with
its own zone, a point midway along the line of quickest
46458°—S. Doc. 485, 63-2




19

289

and most frequent communication offers the ideal
location, and Providence has placed Richmond in that
position.
The Atlantic Coast States afford a distinct and peculiar problem in putting into effect the Federal reserve act.
It was recognized both before and during the framing of and debate upon the act that the problem in the
East was to decentralize reserves—while the object
in other parts of the country is to concentrate them.
The States bordering on the Atlantic Coast have
about 41 per cent of the population and 52 per cent of
the national banking capital of the country, as follows :
New England States—
Maine
Vermont
New Hampshire
Massachusetts
Connecticut
Rhode Island

$11,000,000
7,000,000
9,000,000
96,000,000
31,000,000
11,000,000
165, 000,000

Eastern States—
New York
Pennsylvania
New Jersey
Delaware
Maryland

344,000,000
253,000,000
46,000,000
3,000,000
29,000,000
675,000, 000

Southern States—
Virginia
North Carolina
South Carolina
Georgia
Florida

29,000,000
11,000,000
8,000, 000
25, 000,000
11,000,000
84,000,000

Total, $924,000,000, or about 52 per cent of the
national banking capital of the United States.
In giving our views upon this situation, we are doing
as we understand it, only that which the committee
invites us to do, as before stated, and chiefly because
it has an intimate relation with our own case. We
therefore assume that the Atlantic Coast States, where
the banking capital essential to the operation of the
system is heavily concentrated, are entitled to and
perhaps must have several reserve banks, located according to the density of banking operations, so as to
carry out the purpose and spirit of the act, and not
disrupt or disturb the natural course of business and
financial settlements.
It is accordingly natural to assume, as we look upon
it, that the greatest cities in that section will receive
the first consideration, and these cities are, of course,
in geographical order: Boston, New York, and Philadelphia. And if the selection of these cities will, as
we believe, best accomplish the division of banking
power aimed at, then a Federal reserve bank can not,
in justice to the rest of the country, and without doing
violence to the purpose of the act, be located in any
other near-by city.

290

LOCATION" OF RESERVE DISTRICTS.

Among the 15 Atlantic Coast States named, Vigrinia
ranks sixth. These 6 States rank in the order named—
New York, Pennsylvania, Massachusetts, New Jersey, Connecticut, Virginia.
But Virginia exceeds Connecticut in national-bank
gross deposits by $40,000,000.
Virginia, therefore, ranks fifth in national banking
importance among the 15 States.
For this reason as well as for her geographical position it follows that it is natural to look to Virginia to
furnish the next location for a Federal reserve bank
along the Atlantic coast, and again we affirm that a
Federal reserve bank in Richmond will have the most
decided advantage over any point in these Atlantic
Coast States in clearing for member banks and reserve
banks between the North and South, and no other
location can offer such practical advantages in economy of time, which according to the accepted adage
is synonymous with money.
One day's interest on the annual volume of exchanges
between the northern and southern banks would
mean a handsome profit to the Government. This
one advantage alone is of such overwhelming importance that it justifies our statement that Richmond's
natural advantage of location can not be overcome
by any other consideration. I t is difficult to name a
feature of equal economic importance to the gain of a
banking day in perpetuity.
It cuts the year in half, or doubles its length, according to whether it is operating for or against any
point or points. Richmond would have that advantage over other large cities north of her in effecting
these clearings between zones in the Atlantic States.
4. COMPARATIVE COMMERCIAL

IMPORTANCE.

As to the comparative commercial importance of
Richmond and of Virginia with relation to this district, measured by capital, deposits, and banking
transactions :
Of the 15 Atlantic Coast States, Virginia, as we have
stated, ranks fifth in natural banking importance.
There are only three other States on this side of the
Mississippi which exceed Virginia in national banking
capital, i. e., Illinois, Indiana, and Ohio.
Among the 26 States on this side of the Mississippi,
Virginia, therefore, ranks eighth in importance in the
present national banking system, measured by that
standard.
She stands financially, as well as geographically,
at the head of all the Southern States east of the
Mississippi River.
The aggregate national-bank resources of these
several States are as follows (comptroller's figures,
Oct. 21, 1913):
Virginia
West Virginia
North Carolina
South Carolina
Georgia




$168,000,000
92, 000, 000
70,000, 000
49,000, 000
113,000,000

Florida
Alabama
Mississippi
Louisiana
Tennessee

$61, 000, 000
80,000,000
27,000,000
80,000, 000
115,000,000

Virginia therefore leads by $53,000,000 the State
next highest in rank. Virginia maintains the same
supremacy in the entire banking field.
The deposits in all classes of banks in these States
are as follows:
Virginia
North Carolina
South Carolina
Georgia
Florida
Alabama
Mississippi
Louisiana
Tennessee

$175,000,000
106,000,000
75,000, 000
152,000,000
- 76, 000,000
96,000,000
76,000,000
147,000, 000
156,000,000

Virginia leads by about $20,000,000 the State next
highest in rank among the Southern States east of
the Mississippi River.
As to Richmond, the national-bank deposits of Richmond are two-fifths of such deposits in the entire
State, while her national banking capital is threefifths of that of the State.
Richmond is not a reserve city under the national
banking law, and Virginia has no reserve city.
Her bank deposits have not been built up because
of any inducements which other competing cities do
not offer.
She is a natural reserve city.
The law governing Virginia State banks requires no
specified amount of liabilities to be kept either in
vault or in other banks.
The business of Richmond has flowed to her from
other Virginia points and from Southern and Western
States as a result of natural causes g6verned by the
trend of business, the numerous and unexcelled means
of communication as well as by the attraction of
capital.
The industrial and commercial relations and needs
of this section have developed these banking relations.
The customary trend of business, free from all
extraneous compelling influences, has developed these
relations, and the established custom of keeping
checking accounts has simply grown up as a natural
result of everyday business transactions.
I t is to be considered that the Federal reserve act
will, with its new principles of credit and reserve,
clearing and par of exchange, alter in a great measure
the banking customs and practices which have grown
up under the old law, and may, and probably will,
revolutionize some of the practices of banking.
The trend and flow of exchanges will be altered to
the extent that they have become artificial, and to
the extent that they have been influenced by the
location of reserve centers, the requirements of keeping reserve accounts, and the custom of sustaining
balances in order to command credit.

291

RICHMOND,>VIRGINIA.

I t is altogether probable that results in many cases
will be of an astonishing nature.
It is one of the purposes of the act to promote free
banking relations, and under free banking relations
it is clearly a justifiable conclusion that the service
Richmond will have to perform will be a greater one
because of being a natural trade, transportation, and
banking center. The law of physics is the law of
commerce—it will follow the lines of least resistance.
We will develop this point further on.
To further illustrate the natural flow of business to
Virginia and Richmond, the national banks of Richmond, on October 21, 1913, had deposits from other
national banks of $7,500,000; deposits from other
State banks, etc., $10,000,000; total, $17,500,000;
which compares with corresponding totals for Georgia
of $9,700,000; North Carolina, $8,200,000; South
Carolina, $6,200,000.
These deposits were exceeded by no other Southern
State east of the Mississippi River.
Illustrating the rapid growth and concentration of
banking capital, the resources of Richmond banks
were in 1890, $14,000,000; 1903, $32,000,000; 1913,
$74,000,000. Her clearings in 1900, $175,000,000;
1912, $424,000,000.
Richmond ranks in bank clearings among the first
30 cities in the United States and compares with other
southern cities as follows: Washington, $387,000,000;
Richmond, $424,000,000; Atlanta, $693,000,000.
In the case of Richmond these clearings were for the
city alone, while in the case of Atlanta they cover the
State, with its 117 national and 669 State banks, with
a few exceptions, and, as we understand, also points in
adjoining States; and, furthermore, in addition to her
local clearings, Richmond handled $400,000,000 in
checks and drafts on the Southern States named, making her clearings on the same principle, as we think,
practically $800,000,000.
Richmond's banking relations with States south of
her show the great intimacy of trade relations with
these States, and the statement following sets forth
in the most illuminating manner the custom and
trend of business under existing conditions and notwithstanding the present system of bank reserves:
[From Comptroller's report of 1912. J

Number of State and national banks in—
Virginia
North. Carolina
South Carolina
West Virginia
Georgia
Florida
Number of accounts carried in Richmond by banks
from—
Virginia
North Carolina
South Carolina
West Virginia
Georgia
Florida




380
429
346
297
760
204

528
397
182
82
85
18

Maximum deposits carried by other banks in Richmond—
Virginia
North Carolina
South Carolina
West Virginia
Georgia
Florida
Maximum loans by Richmond to other banks in 1913—
Virginia
North Carolina
South Carolina
West Virginia
Georgia
Florida
Maximum deposits in Richmond to credit of individuals, firms, and corporations in—
North Carolina
South Carolina
Maximum loans made in Richmond in 1913 to individuals, firms, and corporations in—
North Carolina
South Carolina
Maximum deposits of banks and individuals outside of
Virginia in Richmond banks—
North Carolina
South Carolina
Maximum loans by Richmond to banks and individuals
in—
North Carolina
South Carolina

$5, 467, 697
4,465, 455
926, 779
1, 793, 838
440,115
142, 918
1,459, 080
2, 200,480
2,423, 915
90, 700
669, 900
79, 750

3,225, 369
1,416,997

5, 245,451
3,129, 815

7, 690;820
2, 343, 776

7,445,931
5,553,730

So that banks, corporations, and individuals outside
of Richmond carried on deposit in Richmond banks

$18,000,000.
I t will be observed that in Virginia the number of
bank accounts with Richmond greatly exceeds the
number of banks in the State.
In North Carolina it nearly equals the number of
banks, and in South Carolina and West Virginia the
number of accounts in proportion to the number of
banks is very large.
Richmond's loans to other Southern States, and to
individuals and corporations in these States, aggregated nearly $14,000,000, a sum not far short of the
aggregate borrowings and rediscounts on October 21,
1913, of national banks in any six Southern States,
excluding Texas.
Richmond lends practically all of this capital in the
South outside of Virginia. She does not use it herself.
She is a credit clearing house.
To meet the demands for crop and other purposes,
Richmond during 1913 shipped $14,000,000 in currency into this section.
In the volume of corporate capital, upon the income of which Virginia pays to the Government a
tax, she ranks easily first among all the Southern
States.
Virginia
Texas
Georgia

$942,000,000
873,000,000
485,000,000

The amount Virginia pays to the support of the
Government in internal-revenue taxes is exceeded

292

LOCATION" OF RESERVE DISTRICTS.

only by that of the State of North Carolina among all
the Southern States.
Virginia
North Carolina
Georgia
Alabama
Louisiana
Tennessee

$8,300,000
8,900,000
541,000
338,000
5,000, 000
2,300,000

These comparisons are not given simply to show the
commercial importance of the State of Virginia and
of the city of Richmond, but rather to set forth the
volume of business transactions centered in Richmond
out of which grow banking transactions and customs
of trade, and trend of commerce and exchanges, and
exchange of credits.
The jobbing and the manufacturing business of
Richmond are further practical illustrations that she
is a trading and distributing center. Her jobbing
business is $80,000,000, and the value of her manufactures $100,000,000.
5. D I V E R S I T Y O F I N D U S T R Y A N D A G R I C U L T U R E .

As to diversity of industry and agriculture in the
district which Richmond could serve better than any
other location, it can not perhaps be better illustrated
than by giving the annual value of products of factories, farms, forests, and mines, which are the principal
divisions of labor.
The business of the Southern States as represented
by industry in these divisions is as follows :
Factories
Farms
Forests
Mines
Total values of all products as above

$1,391,000,000
1,197,000,000
266, 000, 000
106,000,000
2,960,000,000

Dr. S. C. Mitchell, in his admirable paper read to you
at the hearing given Richmond, states that:
"The diversity of interests in this region are as
striking as its natural and economic unity."
"Perhaps in no other division of the United States
will you find so great a variety of interests."
The developing character of the district is of equal
importance. Your committee shares with us the
knowledge that it is within little more than two
decades that this region began its real recovery from
utter prostration, and that now its rate of progress
exceeds that of any other portion of the country.
Mr. O. P. Austin, whom we have previously quoted,
estimates the value of the merchandise handled in the
district at $5,000,000,000, or more than the entire ingoing and outgoing foreign commerce of the United
States.
Richmond is to-day and probably always will be
the chief tobacco center of the United States.
Four governments, or their chief tobacco interests,
ijaaintain the headquarters of their buyers or handle
their business through Richmond.
(
Forty per cent of the tobacco crop raised in Virginia, North Carolina, and South Carolina in 1913 came




directly to Richmond for rehandling and manufacturing, and Richmond banks supplied the tobacco trade
of Richmond in exchange to the various tobacco markets, and paid out in Richmond in 1913 the enormous
sum of $53,000,000, or 88 per cent of the total value
of the crop of North Carolina, South Carolina, and
Virginia.
A considerable portion of this sum, however, was
sent to Kentucky and West Virginia.
Of the total collections of internal revenue by the
Government from tobacco in its various forms for the
year 1912, 20 per cent was collected from territory
within a radius of eight hours from Richmond.
As to diversity of crops of the district, in their effect
upon the demands for credit and currency—Richmond being situated at the northern limit of the district, occupies this incontestible advantage as a Federal reserve bank location—the climatic differences of
the Southern States in their effect upon crop development come in orderly rotation up to Virginia. The
demands upon the Federal reserve bank of Richmond
would be uniform and continuous.
The peak of the load would doubtless be in the fall,
but that would be the ca^e everywhere else, and it is
the purpose of the new law to provide for it.
Further illustrating the diversity of crop and industrial conditions in this district, the railroads serving
it are at present among the most prosperous in the
country. We do not know how to account for it on
any other basis than the diversity of interests and the
consequent absence of any general depression.
Added to her advantages for assembling and manufacturing the products of industry, her facilities for
distribution heretofore described are positively unsurpassed by any other southern city.
We will give you a very recent concrete instance.
One of the very large corporations of this country,
with headquarters at St. Louis, has just selected Richmond as one of two depots on the Atlantic seaboard
most advantageously located for the storage and distribution of its products, New York being the other
point.
Richmond is a reserve center of products.
6. CAPITAL R E S O U R C E S O F T H E

DISTRICT.

As to the confines and capital resources of the district of which Richmond is the logical and most advantageous location for a Federal reserve bank, the rules
laid down by the organization committee for their
guidance are so just and wise that all men must acquiesce in and approve them.
Under the language of the law and the spirit and
purpose of the act we believe that the natural territory of a district—considering geographical convenience, natural boundaries, ease and quickness of communication and transportation, as great diversity of
industry and agriculture as may be found anywhere,
natural trend of business and exchanges, the banking

293

R I C H M O N D , > VIRGINIA.

customs and trade relations of a majority portion of
the territory, the desires of a majority portion of the
people—is embraced in the zone mapped out to be
served by a Federal bank located in Richmond, namely,
Virginia, North Carolina, South Carolina, Georgia,
Florida, southern part of West Virginia, part of eastern Tennessee, part of eastern Kentucky.
These States have adequate national-bank resources
fo contribute the necessary capital and reserves for a
regional bank.
They also have a strong system of State banks, which
would add largely to resources should these banks
elect to enter the system, which possibly may not be
counted upon in time for organization of the Federal
banks.
National banking capital in the proposed district.
[Comptroller's figures Oct. 21, 1913.]
Capital
subscribed
to Federal
reserve
banks.

Capital and
surplus.

Virginia
Nortfr Carolina
South Carolina
Georgia
Florida
West Virginia, one-half.
East Tennessee
East Kentucky
Total

$29,300,000
11,300,000
8,500,000
22,900,000

10,600,000
8,300,000
8,300,000
1,300,000

758,000
678,000
510,000
374,000
636,000
498,000
498,000
78,000

100,500,000

6,030,000

The total capital and surplus of the State banks in
the States named, including one-half of West Virginia,
omitting for the moment those portions of Kentucky
and Tennessee included in the zone, is $68,000,000.
Now, as to the net deposits requiring reserves:
Net deposits.

Virginia
North Carolina
South Carolina
Georgia
Florida
West Virginia (say one-half)
Total net deposits

$100,000,000
36, 000, 000
23, 000, 000
50,000,000
33,000,000
29, 000, 000
271, 000, 000

Not taking into account the portions of Tennessee
and Kentucky, included in the district, for lack of
comptroller's figures.
Classifying these as country banks, the amount of
reserve required to be kept in the Federal reserve bank
under full operation of the act would be—
Say 5 per cent, or
$13,000,000
Government deposits divided in proportion to the
capital involved would probably be, say, 6 per cent,
,or
9,000,000
State banks might swell the amount, say
2,000,000
Full paid capital
6,000,000
Total probable resources

30,000, 000

Omitting from consideration the note issuing powers
of the bank, the resources would serve as a basis for
the expansion of credit in the usual way to possibly
$75,000,000.




I t is considered by many that the credit business of
these banks will far overshadow the note-issue business, and we share that view.
Now, the banking power of these banks is not to be
measured solely by capital resources, but by their
ability to acquire gold, and to build up deposits and
loans in the usual way upon their reserves as a base,
and also by their note-issue power upon this base.
I t is estimated that the floating supply of gold or
its representative in this country not in banks is
approximately $800,000,000, doing duty as currency,
or hoarded.
I t is certainly not performing its greatest economic
function as currency.
In Federal reserve banks it would serve as the basis
foe two and one-half times its volume in a safe and
sound currency, and it is clear that here is a large
source of gold supply.
I t is probable that with stable banking conditions,
as one beneficial result of the act, gold will to a largfe
extent cease to be hoarded; and gradually come from
hiding.
The total amount of borrowings and rediscounts of
all the Southern States, excluding Texas, was on
October 21, 1913, about $40,000,000, and of the States
named $25,000,000.
I t is clear that the resources of a Federal reserve
bank in the district mapped out would be entirely
adequate to serve the district.
Furthermore, it is to be borne in mind that the
reserve figured upon is the minimum reserve, and if
the banks make any use whatever of the Federal
banks they will be compelled to keep more of their
reserve with them.
The area covered would be about 250,000 square
miles, and the population about 10,000,000.
7. W I S H E S A N D V I E W S O F
THE

DISTRICT

AND

THE BANKS AND PEOPLE

THEIR

PRESENT

BANKING

IN

CON-

NECTIONS.

In Virginia, out of a total of 437 banks, 404 have
voted for Richmond as first choice.
In North Carolina, out of a total of 486 banks, 373
have voted for Richmond as first choice and 69 as
second choice.
In South Carolina, out of a total of 405 banks, 82'
have voted for Richmond as first choice, and 122 as
second choice, Columbia being, of course, first choice;
only 18 of the remaining banks in South Carolina,
voted, and these were scattered.
The capital and deposits of the South Carolina banks
voting first for Richmond were greater than those
voting first for their own city—Columbia.
So that, out of a total of 1,328 banks in three
States, of the number voting 863 gave Richmond as
first choice and 191 gave Richmond as second choice.
Eliminating Charlotte and Columbia, 1,052 banks
out of a total of 1,328 in the three States regard Rich-

294

LOCATION" OF RESERVE DISTRICTS.

mond as the proper location of their Federal reserve
bank.
In West Virginia, in the southern half of the State,
49 banks have selected Richmond as first choice, and
26 as second.
Richmond has been designated as the preferred
location by firms and individuals, outside of Richmond as follows:
Virginia
North Carolina
South Carolina
West Virginia

•

1,063
870
141
154

We are therefore fully justified in the statement that
there is a very strong feeling in Virginia, North Carolina, and South Carolina that they must be included
together in any zone which may be formed, and that
whatever territory may be incorporated in their zone,
a Federal reserve bank located in Richmond would
serve their interests better than if located in any other
city.
The interests of these three States are too closely
interwoven to be separated.
If any further corroboration can possibly be desired
by the committee, we respectfully refer to the sentiments expressed by North Carolina, South Carolina,
and also by West Virginia bankers at the hearing
given Richmond in Washington on January 15, and to
the exhibit of resolutions, petitions, letters, and telegrams accompanying this brief.
We respectfully submit that compliance with the
letter and intent of the law, which declares that the
Federal reserve districts shall be determined with due
regard to the convenience and customary course of
business, would demand that these three States shall
be kept together in one district, so that their mutual
trade and financial relations may not be disrupted or
disturbed.
V The district we have outlined is the most perfect
geographical division of the country that can be
carved out. Nature has placed her boundaries, sharply
defining it. We believe it is an equally perfect
economic unit. I t is a political division equally
sharply defined.
The inhabitants are more homogenous than in any
other division or part of the United States. All of
these considerations have a practical bearing.
Our crops and the credits based upon them are distinctive, and the management of the regional bank
should bear the closest relation to, and have the
closest familiarity with, the needs and customs of the
district. For this reason, as well as for all the foregoing reasons, whatever territory may be added to
this zone, the headquarters of any bank organized to
serve the zone or any large part of it, should not be
located north of Richmond.
This position and all of these conclusions are separately and independently confirmed by the learned
and experienced authorities, Dr. S. C. Mitchell and




O. P. Austin, former Chief of the Bureau of Statistics
of the Department of Commerce, whose papers have
been filed with you.
Finally, why Richmond can better serve the zone
mapped out than any city in it, or any city in territory
north of Richmond which might be added to the zone,
and why Richmond may therefore be entitled to the
location of a Federal reserve bank.
In the entire zone mapped out Virginia is the dominating State financially, and Richmond clearly the
dominating city. Since colonial times Virginia has
been the dominating State in the South.
Richmond has played a part far ahead of any other
city in the zone in its development from a banking
point of view, an industrial point of view, and a railroad
point of view.
Long ago Richmond found that in this zone she
had a preferential freight rate territory, and that in
this territory the cities north of her could not compete on equal terms with Richmond. This preferential territory extends through the zone described to
southern Georgia and Alabama and the eastern State
line of Mississippi.
I t does not embrace the State of Florida because of
water competition. The territory is more graphically
portrayed on the map which accompanies.
The trade relations of Richmond in this territory,
out of which spring banking relations and settlements,
must continue to grow, and more and more exclude
cities north of Richmond.
The average first-class rate in the territory gives
Richmond an advantage over—we will say Baltimore,
by way of illustration, that being the next large city
of commercial importance north of Richmond—gives
Richmond an advantage of 11.2 cents per hundred
pounds, or approximately 13 per cent.
This relative proportion in favor of Richmond applies to all class and commodity rates, and in some
instances it is greater in favor of Richmond.
For full details we refer to the statement of Mr.
W. T. Reed, president of the Richmond Chamber of
Commerce, which statement accompanies.
Commercial supremacy in this territory must go
hand in hand with banking supremacy, particularly
under the natural and free system of banking.
Granting the selection of this territory, or any large
part of it, as a zone, the advantage of Richmond in
point of time and distance in dealing with the members of the zone is so great as to exclude any city north
of her from consideration; and the equal advantage
of Richmond as a clearing point between zones, for
the same reasons, would likewise exclude any northern
city.
I t is firmly to be borne in mind, as we understand,
that the purpose of the Federal reserve act is to afford
additional banking facilities to the people, and that
Federal reserve banks shall be so placed as to best
serve the people with reference to the operation of the

R I C H M O N D , > VIRGINIA.

system as a whole. Should Federal banks be placed
in the three great cities of the East which we have
named, that fact in itself, we believe, would justly exclude from consideration the location of headquarters
of another bank in any city north of Richmond.
They are not intended to be local, and for that
reason branches are provided, and due consideration
is not generally given to the power and facilities of
these branches.
I t goes without saying that this zone mapped out
will be provided with these additional facilities, superior to any which they have heretofore enjoyed, by
the location of a bank in Richmond, that.branch banks
will answer local needs, and that the zone will be more
independent of the financial considerations which have
bound it to large money centers in the East; and this,
too, was intended, and can best be brought about by
the location of a bank within the region described as
a natural division of country.
Is there any man who doubts that, if State lines
were obliterated and the country apportioned in these
geographical divisions, Richmond would by acclaim
be chosen the capital of this division ?
Although resting our claims upon the financial
strength and the economics of the situation, we have
also those considerations in our favor which are most
powerful in molding the character and ideals of a
nation.
Richmond has a place in the affections of the South
which no other city possesses.
She has a place in the annals of the Nation and the
world which is imperishable.
The debt of the Nation to Virginia is inextinguishable.
I t is difficult to see how this Republic could have
been formed but for Virginia.
Richmond has that dignity of standing, that atmosphere of sentiment and history, that position in
science and learning, which render her worthy of any
honor or distinction that can be bestowed upon her,
and the intelligent judgment of the whole country,
having a knowledge of these considerations, would
approve the location of a Federal reserve bank in
Richmond.
The names of Virginians will be associated for all
time in the financial history of this country with the
Federal reserve act.
All of these considerations preeminently distinguish
Richmond as the location of a Federal reserve bank.
THE SOUTH ATLANTIC COASTAL PLAIN.
A distinct geographical and climatic unit—Its products, peculiar to
its own soil and climate, should be financed by men acquainted
with local conditions.

By O. P. A U S T I N , 15 years Chief of the United States
Bureau of Statistics; secretary of the National Geographic Society.
Nature has set aside the South Atlantic frontage of
this continent as a distinct and peculiar section, and



295

has given to it a class of products which are peculiar
to itself, and with the financing of which its own people
are more closely acquainted than those of any other
section are or can become. The Atlantic Coastal Plain,
which in recent geological ages emerged from beneath
the ocean, stretches from New York southward to the
Gulf of Mexico, and is shut off from the West by great
mountain ranges.
PECULIARITIES

OF PRODUCING

POWER.

At the northern end it is a narrow and sandy plain,
but gradually widening toward the South. At about
the point at which the Potomac crosses it, it suddenly
broadens to a width of approximately 200 miles, and
at that point enter two new and important factors in its
producing power—a fertile soil and a genial climate.
EXPERT TESTIMONY

AS TO

SOILS.

Prof. Jay A. Bonsteel, a distinguished soil expert of
the Department of Agriculture, in a general description
of the soils of the United States, which appeared in the
1911 edition of the official publications of the Department of Agriculture, The Agricultural Yearbook, and
in a similar discussion of the soils contributing to the
trucking system of the South Atlantic coast, presented
in the 1912 issue of that official publication, says:
The Norfolk fine sandy loam extends from eastern Virginia
southward along the Atlantic coast to Florida and thence westward.
Among all the truck soils in use or available along the Middle Atlantic coast, the Norfolk fine sandy loam easily occupies the premier
place both with regard to its total extent and its wide range of
possible products. It has been formed as a sedimentary deposit,
laid down under the waters of & more extended marine occupation
and later elevated to become a portion of the present land area.
AN IDEAL SOIL FOR MARKET GARDENING.

Physically it is almost ideally constituted for the intensive growing of crops. I t is of prime importance for the production of vegetables and small fruit. In the eastern counties of Virginia and North
Carolina it is also used for the production of corn, winter oats,
peanuts, and bright cigarette tobacco, and from the southern boundary of Virginia to Texas it is highly prized as a cotton soil. Where
local transportation facilities are adequate it is intensively farmed
for the production of vegetables and small fruits for shipment to
northern markets.
PRESENT PRODUCTS MAY BE MANY TIMES MULTIPLIED.

Soil surveys throughout this region have encountered a total area
of 4,346,000 acres of this soil, and it is possible that 20,000,000 acres
will be found to exist. Not one-tenth of 1 per cent of this total area
is now occupied for truck farming, and it is probable that not 25 per
cent is now used for any agricultural purposes other than grazing.
EXPERT

TESTIMONY

AS TO

CLIMATE.

These extracts from official descriptions of the peculiar soil factor in the producing power of this section
should be considered in conjunction with that other
important factor, climatic conditions.
A GREAT OUT-OF-DOORS

GREENHOUSE.

That the conditions of climate are as peculiar as
those of soil and equally effective in developing a production different from that of other parts of the
country is also indicated by Prof. Bonsteel in his 1912

296

LOCATION" OF RESERVE DISTRICTS.

discussion, in which he describes this coastal frontage
as " a great out-of-doors greenhouse," and, in another
place, " t h e great winter garden which supplies the
cities of the Northeastern States with fresh vegetables
demanded for consumption during the later months
of winter and those of early spring."
THE GULF STREAM A FACTOR IN PRODUCING

POWER.

This peculiar condition of climate and thus of producing power he attributes in part to the presence of
the Gulf Stream, which, as is well known, flows close
to the Atlantic coast as far north as Cape Hatteras,
but leaves the coast at that point, moving in a northeastwardly direction across the Atlantic.
A TROPICAL AND SUBTROPICAL CLIMATE.

The peculiarities of climate (and, therefore, of the
producing power) of this section are also pointed out
in the International Encyclopedia, edited by that
great scholar and educator, the late Daniel Coit Gilman, for 25 years the president of Johns Hopkins
University, which says:
The United States has been divided into eight (climatic) sections. Two of these are tropical, Florida and Texas; two are subtropical, including the coast States from Texas to Virginia and the
California region; the other four sections are temperate or boreal.
ITS PRODUCTS REQUIRE FINANCING FROM WITHIN THIS
AREA.

These statements from two distinguished authorities
regarding the peculiar characteristics of the South
Atlantic frontage in the great factors of production,
soil, and climate, are presented with the purpose of
sustaining the statement already made by us, that
the chief products of this section, which must prove
the basis of its requirements for credit and currency,
are peculiar to this section and would be much better
understood in their relation to credit and to currency
requirements by the officers of a bank located within
that section than would be possible elsewhere.
AN AREA OF PECULIAR AND VARIED PRODUCTION.

What are the products of this section which nature
has thus set aside with a peculiar soil and climate,
and, therefore, a class of products to itself? Beginning at the South we may name sea-island cotton,
approximately $7,000,000; phosphates, about $10,000,000; peanuts, $15,000,000; turpentine and rosin,
$30,000,000; cottonseed oil and caJke, approximately
$45,000,000; fruits, $15,000,000; tobacco, $32,000,000;
vegetables, exclusive of potatoes, $36,000,000; sweet
potatoes, $15,000,000; products of the mines, $100,000,000; animals, sold or slaughtered on farms, $92,000,000; all cereals, $167,000,000; cotton, $255,000,000;
all farm crops, $690,000,000; all manufactures, $987,000,000; these being in nearly all cases the figures of
the census of 1909.




THE WORLD'S C H I E F PRODUCER OF IMPORTANT ARTICLES
OF

COMMERCE.

It will be seen that a large proportion of the articles
produced in these six States are intensely local, the
product of the peculiar soil and subtropical climate
referred to by the distinguished scholars already
quoted. The United States is now one of the principal
sponge-producing and exporting countries of the
world, and practically all of this produce is peculiar to
the coast of Florida. We are the world's largest
producers of turpentine and rosin, and practically all
of our output is produced in Florida and Georgia.
Our sea-island cotton is famed the world over and
practically all of it is produced along the extreme
South Atlantic coast. Of the $23,000,000 worth of
citrus fruits produced in the United States, nearly
one-third are grown in Florida. The United States is
the world's largest producer of rock phosphates, and
most of this is now mined in the State of Florida.
The value of peanuts produced in the United States
increased from $7,250,000 in 1899 to $18,250,000 in
1909, and 78 per cent of these were produced in Virginia, North Carolina, Georgia, and Florida. ^ Of the
approximately $120,000,000 worth of cottonseed oil
and meal produced in the United States in 1909, more
than one-third was the product of Virginia, North
Carolina, South Carolina, and Georgia. Of the
1,000,000,000 pounds of tobacco grown in the United
States in 1909, practically one-third was the product
of the six States—Virginia, West Virginia, North and
South Carolina, Georgia, and Florida.
VALUE

O F I T S DISTINCTLY
$500,000,000 P E R

LOCAL

PRODUCTS

ANNUM.

The value of these distinctively tropical or subtropical products of this section is, stated in round
terms, $450,000,000 per annum; sea-island cotton,
$7,000,000; citrus fruits, $6,000,000; sugar, $3,000,000;
dry peas, $3,000,000; peanuts, $15,000,000; sweet
potatoes, $15,000,000; turpentine and rosin, $30,000,000; vegetables, $36,000,000; fruits, $15,000,000;
small fruits, $4,000,000; tobacco, $32,000,000; cottonseed oil and meal, $45,000,000; cotton, $255,000,000;
while if we add to these the phosphates and sponges
of Florida and other land and water products peculiar
to that section we get a grand total of approximately
$500,000,000 worth of products distinctly tropical or
subtropical in character.
I T S PRODUCTS SHOULD B E F I N A N C E D FROM W I T H I N I T S
OWN AREA.

The fact that the grand total of the production
this section is made up of a large number of articles
not closely related to each other, but having for each
a distinctive characteristic as to production and use,
intensifies the importance of selecting some convenient point well within that section as the locus of the

297

RICHMOND, > VIRGINIA.

reserve bank for the district. While the economic
methods of the South as a whole have been criticized
upon the ground that it does not sufficiently diversify
its products, such charge can not be sustained with
reference to the area which we are bringing to your
attention. One of the speakers who appeared before
your honorable body, a gentleman of high standing in
the financial circles of the Capital City of the Nation,
remarked that one of the objects of this law is to decentralize reserves as they now exist and distribute
them among several reservoirs, each reservoir to be
located with regard to the due convenience of a district wherein a great number of diversified industries
are carried on, to build up every branch of industry
and commerce; a suggestion which, we submit, applies
with great force to the South Atlantic section as one
having great diversity of production, and to Richmond as the natural center of the finance and commerce growing out of such production.
RICHMOND

AN

IDEAL

FINANCIAL

CENTER

OF

THE

DISTRICT.

That this great mass of distinctively southern products can be more intelligently understood and financed
from a distinctively southern city can not be doubted.
Not only would Richmond be conveniently located
for the prompt transmission of mails and expressage
to the section in which this great mass of products
originates, but the acquaintance of her people with
the peculiar products in question—the phosphates,
the naval stores, the peanut crop, the tropical fruits,
the tobacco, the cottonseed oil and meal, and the sea
island and upland cotton, their seasons of growth
and preparation for market—all these would be better
understood and the interests of their producers better
served from Richmond than Washington, which has
no active business relation with the producing, manufacturing, or commercial interests, of from Baltimore, which is still farther removed from the area of
the chief production of these peculiar and distinctively
"local" products.
VOLUME

OF

LOCAL

BUSINESS

REQUIRES

A

RESERVE

BANK.

The section lying south of the Potomac and east
of the Appalachians is amply sufficient in area, population, and the value of its products for the service
of a regional bank. The population of the six States
which we propose as that section—Virginia, West
Virginia, North Carolina, South Carolina, Georgia,
and Florida—is, in round numbers, 11,000,000 by the
census of 1910; the value of its farm property,
$2,500,000,000; its capital invested in manufactures,
over $1,000,000,000; the products of its manufactures, nearly $1,000,000,000 in 1909, and now much
more than $1,000,000,000; the value of its farm
crops, by the census of 1909, $690,000,000; the product
of its mines, $100,000,000; the length of its railways,



29,000 miles; and the navigable mileage of its rivers
over 5,000 miles, or one-fifth of the total of the United
States. The officers of the War Department in charge
of the 105 river and harbor works on its water frontage from the upper Potomac to the western coast of
Florida, report the value of the water-borne freight
traffic at those places in 1912 at the enormous sum
of $1,680,000,000, about one-half of which is at
Hampton Roads.
VALUE

OF

MERCHANDISE

HANDLED

$5,000,000,000

PER

ANNUM.

The census of 1910 placed the value of the manufactures of this area at $987,000,000; the farm crops,
at $688,000,000; the products of the mines,
$100,000,000; the farm animals slaughtered or sold,
$92,000,000; and, adding a reasonable estimate for
the products of the forests and fisheries, the total
production of the area in that year may be set down
at nearly $2,000,000,000, indicating that the annual
value of its various products at the present time is
more than $2,500,000,000. Most of this $2,500,000,000
worth of annual products is moved from the place of
production to other parts of the country or to other
sections of the world, and in their stead there is purchased about an equal value of other merchandise,
suggesting that the value of the merchandise handled
in this district in a single year is approximately
$5,000,000,000, or more than the entire foreign commerce of the United States.
B U S I N E S S O F T H I S AREA IS R A P I D L Y I N C R E A S I N G .

That this enormous total of $5,000,000,000 worth
of merchandise annually handled in this section is
likely to grow very rapidly, is apparent from the
figures of actual growth during recent periods. The
total value of the manufactures produced in these six
States increased 123 per cent from 1899 to 1909,
while the gain in all other parts of the country was
but 80 per cent. The value of all farm crops in these
States increased 120 per cent for the period from
1899 to 1909, while that in other parts of the country
increased but 83 per cent. The coal production of
this area increased 250 per cent in the 10-year period,
while that of the country as a whole only doubled.
The capital invested in manufacturing in these States
increased 171 per cent from 1899 to 1909, while the
gain in the whole manufacturing capital of the country was but 105 per cent. The wages and salaries
paid in manufacturing increased 123 per cent, while
that in other parts of the country increased but 80
per cent. The railroad mileage increased 70 per cent,
from 1890 to 1911, and in the other portions of the
country increased but 47 per cent. The internal
revenue paid increased from $10,500,000 in 1903 to
$21,000,000 in 1912, a gain of 100 per cent, while the
gain in the other parts of the country was but 40 per
cent in the same period. The estimated true value

298

LOCATION" OF RESERVE DISTRICTS.

of all property as shown by the United States
census increased from $4,000,000,000 in 1900 to over
$5,000,000,000 in 1904, an increase of 26 per cent,
while the increase in other parts of the country was
but 21 per cent. The total indebtedness less sinking fund of these six States was, according to the
United States census, $94,000,000 in 1890 and
$100,000,000 in 1902, an increase of less than 7
per cent, while the indebtedness of other States of
the Union showed an increase of 64 per cent in the
same period. The average per capita indebtedness
of these six States fell from $12.82 for each individual
in 1890 to $11.02 in 1902, while that of the country
as a whole increased from $18.16 per capita in 1890
to $23.73 in 1902. The expenditures on public roads
in these six States now aggregate about $15,000,000
per annum, a fact which in itself promises great
development of its agricultural power.

the suggestion of a ship canal to connect the Great
Lakes with the Atlantic Ocean. Our experience at
Panama has demonstrated the ability of our country
and its engineers in opening a passageway for ocean
vessels through a country where the natural obstacles
are much greater than those which lie between the
Atlantic and the Great Lakes, and if the Government
of the United States should see fit to utilize for this
great enterprise the men and machinery which have
accomplished the work at Panama, the route from
Hampton Roads, along the lines suggested by George
Washington to the Ohio River and thence to the Great
Lakes, would be worthy of serious consideration, and
if adopted, make this the gateway for the outflow of the
products of that greatest producing section of the
world—the Mississippi Valley, and the route by which
it would in turn receive its requirements from foreign
countries.

ALL GREAT INDUSTRIES REPRESENTED IN THIS REGION.

PANAMA CANAL WILL INCREASE TRADE AND CURRENCY

The value of the three great products of this section—agriculture, manufactures, and mining—are quite
evenly distributed in proportion to the products of the
entire United States. The farm crops of the section
in question formed in 1909 about 12 per cent of those
of the entire United States, the manufactures about 5
, per cent, and the minerals approximately 5 per cent
of those of the entire United States.
FOREIGN COMMERCE OF THIS AREA RAPIDLY GROWING.

The value of the foreign commerce of the frontage
from the mouth of the Potomac to the western coast
of Florida is now approximately $150,000,000, and
shows a rapid growth when compared with other
sections of the country. At Norfolk and Newport
News especially, lying as they do at that great natural
harbor of the United States—Hampton Roads—the
exports of the fiscal year 1913 show a remarkable
growth, having practically doubled in the past two
years.
A GATEWAY FOR THE PRODUCTS OF THE

MISSISSIPPI

VALLEY.

The possibilities of this great harbor in becoming the
natural gateway for the Mississippi Valley, with its
enormous production for foreign markets and consumption of foreign merchandise, are worthy of serious
attention in considering the future possibilities and
probabilities of the commerce and commercial requirements of this section. With two great railway lines
now transporting to this port the merchandise of the
upper Mississippi Valley, over remarkably easy grades
and free from the interruption of a northern winter
climate, it may be expected that the remarkable
growth of recent years will be continued.
A SHIP CANAL POSSIBILITY.

Still another possibility of an enormous increase in
the'foreign commerce of Hampton Roads is found in



REQUIREMENTS.

The Panama Canal will, when opened to commerce,
immediately stimulate the coastal trade of this section.
At present a narrow strip of country along the Atlantic
frontage sends its merchandise for the Pacific coast
by water by way of the trans-Isthmian railways, which
demand for their service one-third of the entire coastto-coast charges, the annual volume of that transIsthmian traffic between the Atlantic and Pacific
coasts being now more than $100,000,000 per annum.
With the possibility of passing the products of the
eastern and western coasts across the Isthmus without
the cost of rail movement, the volume of this traffic
between the Atlantic and Pacific coasts will greatly
increase. In addition to this, the export of our manufactures and agricultural products to the western
coasts of South America, and, in fact, to all the countries fronting on the Pacific, may be expected to rapidly increase with the opening of the canal, and thus
greatly enlarge the foreign commerce of this South
Atlantic country, and the requirements of currency for
that purpose.
SUMMARIZATION.

Now to sum up the great general facts as to the
production, commerce, and commercial possibilities
of the area in question.
The section of country lying south of the Potomac
and east of the Appalachians is set aside by nature as a
distinctive region by reason of its peculiar soil and
climate and geographic surroundings, and has therefore
products peculiar to itself.
Its total products, which aggregated nearly $2,000,000,000 in value in 1910 and more than that at the
present time, are distributed with remarkable uniformity among the three great industries, agriculture,
mining, and manufactures, agricultural and mineral
products forming about one half and manufactures the
other half of this grand total.

RICHMOND,> VIRGINIA.

The agricultural products represent an unusually
large variety of articles which have their peculiar seasons of maturity, and thus cooperating with the manufacturing and mining industries in maintaining within
the district a comparative uniformity and steadiness
of demand for currency.
Approximately one-third of these three great articles of commerce—manufactures, farm crops, and minerals—are produced in the two northern States of the
group—Virginia and West Virginia—and approximately two-thirds in the four States lying to the
south—North Carolina, South Carolina, Georgia, and
Florida; but as most of these products of the Southern
States move toward the north, Richmond, which lies
within 60 miles of the southern line of Virginia and on
the natural line of the northward trend of commerce
and communication, becomes the natural center for the
trade and finance of both sections of this natural region.
The productions of this area may be expected to increase with great rapidity. Both manufacturing and
agriculture showed in the period of 1900-1910 a much
larger percentage of growth than that of all other parts
of the country, and with the greatly increased use of
water power through the cooperation of electricity the
contribution of the rivers of this section to its manufacturing power will rapidly increase its industrial and
commercial activities.
The foreign commerce of this section may be expected to rapidly increase. The value of the merchandise exported from the ports from the mouth of the
Potomac to the western line of Florida is now approximately $140,000,000,000 per annum, and those two
cities at the great natural harbor—Hampton Roads—
have actually doubled their exports in the last two
years, suggesting that the possibilities of this section as
the gateway for the surplus products of the Mississippi
Valley should be given careful consideration in connection with the financing of its prospective business.
The value of the merchandise passing over the waters
of the navigable rivers and harbors from the Potomac
to the western boundary of Florida was $1,750,000,000
in 1912, the total value of its own products in 1912 fully
$2,500,000,000, and the value of the commerce handled
by it approximately $5,000,000,000 per annum, and
may be expected to increase with great rapidity in view
of the rapid growth which has characterized recent
years.
Richmond is the natural railway center for the movement of this commerce and its mail and express requirements with reference thereto, having three trunk lines
from the South, two from the West, and two from the
North, and a close communication with Norfolk with
its western and southern lines.
MARYLAND AS A POSSIBLE FACTOR IN THE RESERVE
ZONE.

While a portion of the State of Maryland lies geographically and geologically within the South Atlantic



299

coastal plain, the distinct area proposed as the basis of
a banking district, that State has not been included in
the proposed Federal reserve region, because of the fact
that its products are, as a whole, not of the distinctively tropical or subtropical type which distinguishes
those of the section farther south, where the presence
of the Gulf Stream affects climatic conditions, and also
because of the equally important fact that the trade
currents carry most of the commerce and therefore the
finances of that State toward the great commercial and
financial centers at the North. On the other hand, it
has been thought proper to include West Virginia in
the proposed regional bank area, even though it lies
outside the coastal plain region, because of the fact
that the commerce and finances of a large part of the
State, especially the southern half, are distinctly associated with those of the Atlantic coastal plain, and with
the State of Virginia and the city of Richmond, a fact
which is clearly shown in the discussion of present
banking relations of Richmond with surrounding territory.
I t is proper to add, however, that a careful comparison of the figures of industry, production, and commerce of the two States, Maryland and West Virginia,
when considered article by article and item by item,
show that a substitution of Maryland for West Virginia in the statement of products, manufactures, and
business conducted would not materially change the
total of the area as a whole or seriously affect the percentage of growth, or other evidence of prosperity of
that area. The population of West Virginia in 1910
was 1,221,000 and that of Maryland was 1,295,000.
'Hie combined value of the products of farm, factory,
and mine were, in West Virginia, $274,000,000 and in
Maryland $366,000,000, and the value of all farm property in West Virginia $314,000,000 and in Maryland
$286,000,000.
STATEMENT SHOWING FREIGHT RATES FROM RICHMOND TO SOUTHERN WEST VIRGINIA, EASTERN KENTUCKY, EASTERN TENNESSEE, NORTH AND SOUTH
CAROLINA, AND GEORGIA; ALSO TONNAGE FROM VIRGINIA CITIES INTO NORTH AND SOUTH CAROLINA
AND GEORGIA.
By Richmond Chamber of Commerce, WILLIAM

T . REED,

President.

The railroads serving the above-mentioned territory years ago recognized Richmond as the proper
distributing point and the above as the natural territory to Richmond, owing to the fact that they were
enabled to give quick service and from one to four
days quicker delivery than Baltimore or any city
north of us. In view of this fact the rates into this
territory were fixed at an average, approximately, of
13 per cent lower than Baltimore. The average firstclass rate in the territory designated by the railroads
as the natural territory to Richmond is 75.2 cents per
100 pounds, while the average first-class rate to the
same territory from Baltimore is 86.4 cents per 100
pounds, giving Richmond an advantage on the first-

300

LOCATION" OF RESERVE DISTRICTS.

class rate of 11.2 cents per 100 pounds, or approxi- Statement of rates from Baltimore and Richmond, showing differences
in favor of Richmond—Continued.
mately 13 per cent. This relative proportion in favor
C H A R L O T T E , N. C.; H A M L E T , N. C.; A B E R D E E N , N . C.
of Richmond applies to all class and commodity rates,
and in some instances it is greater in favor of Rich4
D E H F
2
1
3
5
6 A B c
mond.
Baltimore
85 74 61 49 42 32 25 31 30 27 42 49
58
Attached herewith is a map clearly defining the ter- Richmond
68 58 48 38 33 25 18 24 23 20 33 38
46
ritory recognized by the transportation companies as
17 16 13 11
7
7 7 7 7 9 11 12
9
Richmond's territory and in which the above-menF A Y E T T E V I L L E , N . C.
tioned freight rates favorable to Richmond apply.
Attached also are the actual rates in groups of cities
Baltimore
85 74 61 49 39 26 24 20 19 16 39 39 36
in this respective territory, giving the respective rates Richmond
68 58 48 38 31 20 18 18 17 14 31 31
34
to these cities from Richmond and Baltimore. These
2
17 16 13 11
8
6
2
2
8
6
8
2
cities are chosen with respect to their prominence,
L U M B E R T O N , N . C.
and also with respect to their proximity to the borders of the territory, as designated by the map. Some
Baltimore
92 81 68 56 46 35 27 32! 32 27 47^ 56
58
of the rates in the interior of this territory will even Richmond
80 70 60 50 40 32 22 28 25 22 41 47
50
show greater advantage to Richmond.
8
6
5
12 11
6
5
3
H 7
«J 9 8
The chamber begs to call attention further to the
L A N E S , S. C.
tonnage originating at and forwarded to this southern
territory, North and South Carolina, Georgia, and Baltimore
92 81 68 56 46 36! 27 32! 32 27 47! 58* 58
85 75 62 50 40 32 24 29 28 24 44 47" 50
Florida, from the Virginia cities—Richmond, Norfolk, Richmond
6
7
6
6
6
3
8
4! 3
3* 4
3! H i
Portsmouth, Suffolk, Petersburg, Lynchburg, Roanoke, Danville, and South Boston. The total tonnage
O R A N G E B U R G , S. C.
from these cities for the year 1913 reaches the enor92 81 68 56 46 35 27 32| 32 27 47! 56
58
mous amount of 2,228,908 tons freight, and of this Baltimore
Richmond
85 75 62 50 41 34 24 29 28 24 44 47
50
amount the tonnage from Richmond into this terri1
7
6
6
6
5
3
3 * 4 3 3! 9 8
tory was 629,495 tons.
COLUMBIA, S. C.
Owing to the limited time, and also to the fact that
Baltimore
89 75 65 53 43 34 26 39 29 28 40 51
55
the tonnage into eastern Tennessee, eastern Kentucky, Richmond
76 64 59 50 41 34 18 27 24 20 36 48
44
and southern West Virginia had not been separated
13 11
6
3
2
8 12
5
8
4
3
11
by the railroads from the tonnage to this territory and
A U G U S T A , GA.
points beyond our territory, we are unable to give the
actual tonnage to this portion of our territory.
Baltimore
89 75 65 53 43 34 26 39 29 28 40 51
55
76 64 56 45 35 27 16 30 28 23 28 42
50
We have been unable to get the tonnage from Balti- Richmond
8
9
8
7 10
1
13 11
9
5 12
9
5
more into Richmond's territory, North and South
Carolina, Georgia, and Florida, but from such informaMACON, GA.
tion as we have received we feel assured that any
95 85 76 61 51 40 32 44 32 31 49 55
Baltimore
62
84 79 64 52 43 40 24 34 28 27 45 55
55
statement Baltimore makes, that her tonnage exceeds Richmond
8
8 10
4
4
11
6 12
9
4
7
or even approaches the amount of tonnage of Richmond in the territory mentioned, is a pretense, and
A M E R I C U S , GA.
inasmuch as Baltimore made this claim before the
98 87 78 63 52 41 34 45 37 36 55 57
honorable committee at Washington, it is incumbent Baltimore
72
98 87 78 63 52 41 34 45 37 36 55 57
Richmond
72
upon the Baltimore people to state their exact ton|
nage, as we have done, and which we are prepared to
verify.
C H A R L E S T O N A N D H U N T I N G T O N , W . VA.
Statement of rates from Baltimore and Richmond, showing differences
in favor of Richmond.
[The places are chosen with respect to their prominence and also with respect to
their proximity to the borders of the territory designated on map.]

Baltimore
Richmond

54
54

47
47

1

2

3

4

5

6

A

B

c

D

E

H

F

78
61

67
51

55
42

43
32

37
28

28
21

24
17

29
22

28
21

25
18

37
28

43
32

54
42

17

16

13

11

9

7

7

7

7

7

9

11

12

f

2

2

1

59
54

51
47

43
38

29
25

25
22

20
18

5

Baltimore
Ricnmond

4

5

4

3

2

J. c.




18
16

LEXINGTON AND LOUISVILLE, KY.

KNOXVILLE, TENN.

N ] 3 W B E R N, £
Baltimore
Richmond

22
20

n

R A L E I G H , N . C.; G O L D S B O R O , N. C.; G R E E N S B O R O , N. C.

Baltimore
Richmond—

38 25
35it 24

55
46

46
36

38
30

33
26

27
21

22
17

22
17

9

10

8

7

6

J5

5

22 20
16! 15

17
11

27
21

29
22

34
24

5

6

6

7

10

5!

Baltimore
Richmond

95
84

80
79

65
64

11

1

1

50
50

45
43
2

37
37

301

RICHMOND,>VIRGINIA.

vie

1

1
^

.we

—9
)

H

a

**

«
r

v

V><\Vton
Q

CO

*

*»




MAP
SHOWING

RICHMOND'S PREFERENTIAL
FREIGHT RATE
TERRITORY

dOLTCN CI-A RKCft PKATT tKC.
CWIL. BH&MUXS
RlCHH6UD. V/f

302

LOCATION" OF RESERVE DISTRICTS.

Distance and time to
Via S. A. L. Ry.

Petersburg (A. C. L.—N. & W)
Alberta (Virginian)
Lacrosse (Sou.)
Norlina
Raleigh
Hamlet (N. & S. Car.)
Camden
Columbia (A. C. L.—Sou.)
Denmark (A. C. L.)
Savannah
Jacksonville
Ocala
Palmetto
Hamlet—Chester
Greenwood
Athens (C. of Ga.)
Atlanta (C. of Ga.—Sou.)
Via A. C. L. R. R.
Petersburg (N. & W.—S. A. L.)
Jarratts (Virginian)
Emporia (Southern)
Weldon (S. A. L.)
Rocky Mount
Wilson
Wilmington
Pembroke
Florence
Charleston (Sou.)
Savannah (C. of Ga.—Sou.)
Jesup (Sou.)
Folkston (Ga.)
Jacksonville (F. E. C.—G. S. & F.—S. A. L.-rSou.)
St. Augustine
Palatka
Tampa
Augusta




the following cities.

Dist.

Time.

Via Sou. Ry.

22
61
79
98
157
254
327
360
394
501
639
775
911
351
425
505
550

0.36
1.50
2.20
2.45
4.40
7.45
10.05
11.05
12.00
13.08
16.58
20.45
27.29
11. 25
13.14
16. 43
18.15

22
52
62
83
119
136
244
286
294
396
511
568
640

0. 36
1.00
1.35
2.14
3.00
4.12
9.00
9.05
7.05
10.00
12.20
16. 25
17.45

683
676
694
846
443

16.25
18.08
20.42
23.36
14.20

Danville
Greensboro
Salisbury
Charlotte
Spartanburg
Greenville
Atlanta (C. of Ga.—S. A. L.)
Salisbury—Ashville
Morristown
Knoxville (L. <fc N.—Tenn. Central)
Via N. & W. Ry.
Petersburg (S. A. L.)
Burkeville (Sou.)
Lynchburg (Sou.—C. & O.)
Roanoke (Virginian)
Radford (Virginian)
Bristol
Bluefield
Via C. & O. Ry.
Doswell (R., F. & P.)
Gordonsville (Sou.)
Charlottesville (Sou.)
Basic (N. &W\)
Staunton (B. & O.)
Clifton Forge
Lynchburg
Covington
Hinton
Charleston
Huntington (B. & O.)
Via R., F. & P. Ry.
Ashland
Doswell
Fredericksburg
Washington

Dist.

Time.

141
189
239
282
358
386
550
380
509
509

5.00
6.55
7.25
9.30
11.50
12.45
18.15
15.10
17.25
17. 25

22
73
144
197
241
348
373

0. 36
2.38
4.30
6.20
7.45
12.00
10.40

28
76
97
123
136
193
147
205
272
369
419

0.45
2.00
2.44
3.44
4. 05
5.40
6.00
6.08
8.10
11.00
12.10

17
24
62
116

0.31
0.45
1.27
2.44




303

RICHMOND,>VIRGINIA.

-—T~
F^^n, f x * (
v/ X >

,

S

O
v

/ \ /

^
V
[<
« v<iW , ir\

MJ FC

v

r
V

/fc*

W
I Id&ox^*"

I

V VK
J

ZtfovW
I

/

/

/

/

/

/

/

j}7. / • \ j

57
/
N
/
W
f / /y
<6\\\>a.ry7 f
J
iV
W ^ l
uV
#
*

*

80LT0N OlmARHS & PRATT J*c
CtW'u £b«jlNE£KS
RICHMOND Va

304




LOCATION" OF RESERVE DISTRICTS.

National

States.

Virginia
North Carolina
South Carolina
West Virginia (16 cos.)
Tennessee (10 cos.)
K e n t u c k y (35 cos.)
Georgia
Florida

and State

banks.

Number
banking
towns.

Number
banks.

266
308
222
40
24
57
449
155

437
486
405
95
41
111
844
257

Number
Number
banks with
bank
accounts
accounts
in Rich- carried b y
mond.
banks in
Richmond.
288
229
122
61
13
3
63
14

500
403
181
82
20
3
76
15

305

RICHMOND, > VIRGINIA.

(

/

/

Lr

v.
!

MAP
SHOWING LOCATION OP

BANKS CARRYING ACCOUNTS
WITH

RICHMOND BANKS AND TRUST COMPANIES

Soltoh

Clarke

& PRATT Vtc

Rl&tXOHD VA

46458°—S. Doc. 485, 63-2




20

306




LOCATION" OF RESERVE DISTRICTS.

Richmond poll of banks.

Choice.

Richmond

1st
2d
3d

Virginia.

North
Carolina.

South
Carolina.

West
Virginia.

415
3

373
69

82
122

49
26
3

TenKennessee. tucky.

25
10
11

7
47

Georgia.

Florida.

4
12
5

4
56
12

1st
2d
3d

Atlanta

1st
2d
3d

8

2
4

1st
2d
3d

3

1
2

1st
2d
3d

46
17

Savannah

Charlotte

Birmingham

Baltimore

Washington

Cincinnati

Louisville

Jacksonville

Nashville

Pittsburgh

96
22

1121
49 \ 163
2J

2
6

25]
41 \ 66

t
1

46]
181 64

1
1

1st
2d
3d

4
11

1st
2d
3d

1
6

1st
2d
3d

3

1st
2d
3d

1
7

4
11
1

1

55
1
10

1

3

1

9

6

>

1

93 104
2

3

201 21
9
6
1

22
24

591
42 102
1

2
8

28
9

31
14

33)
. 231 56
9

3
1

1

3

91

1

1st
2d
3d

1st
2d
3d

8
8

22
30

6
7
2

1st
2d
3d

1st
2d
3d

9521
305 >1, 335
78 J
102)
91 111

102
9

Columbia

Total.

ll

1

3

21\

3

1

5

3




RICHMOND, VIRGINIA.

307

MAP
SHOWING LOCATION OF BANKS

VOTING
FR
O

RICHMOND
FIRST CHOICE INDICATED THUS
SECOND CHOICE INDICATED THUS
THIRD CHOICE INOICATED THUS

«
o
X

8 L 0 C A ^ ftPWTT/^
O TN k RE
Cxvtu £*GlH£*E(tS
RlC.HMOHDtVA

308




LOCATION" OF RESERVE DISTRICTS.

Capital, surplus, profits, and deposits of banks voting for Richmond.

State.

Virginia
North Carolina.
South Carolina
Georgia
Florida
West Virginia (16 cos.)
Tennessee (10 cos*)
Kentucky (35 cos.).

Choice.

Capital.

Surplus and
profits.

Deposits.

1st
$30,041, 097 $23,151, 500 $163, 645,126
7, 844, 000 $81, 996, 650
1st
14,542, 770
1, 252, 000
8,190, 000
2, 203,100
2d
4, 909, 800 2, 966, 000
18, 743, 000
1st
8, 058, 000
5, 269, 714 2, 753, 800
2d
730, 300
278, 000
538, 000
1st
5,334, 900
3,482, 200
19,147, 500
2d
570, 000
653, 000
1,412. 000
3d
320, 000
74, 000
1, 690, 000
1st
1,895, 000
586, 000
5, 676, 000
2d
245, 000
262, 000
2, 353, 000
3d
1, 641, 000
4, 084,000
1st . . . . 2,561, 000
2,909,175
1, 859, 000
12,775,000
2d
350, 000
597,000
35, 000
3d
908, 350
6,041, 000
423, 300
1st
547, 500
234, 000
2, 379,000
2d
1,075, 000
359, 000
3d
5, 664, 000
450, 000
118,000
2d
1,502, 000
5, 725,000
3,113, 372
3d
17,140, 000

Total
Total capital, surplus, and profits
Total deposits

80, 587, 706

52, 085,172

361,631,276
$131, 672, 878
361, 631,276

309

RICHMOND,>VIRGINIA.

" t
CAPITAL




SURPLUS AND ]
UNDIVIDED
T O T A L RESOURCES
PROFITS

w^amSSm

Z^Ssr,

ooo

g9,"+-1:5,000

36,367,000
^-g ,"5

OQ
O

"4-e, £-^0,000
S/tUfjOOO
OQ
O
57jS 55,ooo

<9,399,000

Bolton, C VarVtt A fVcrtf, »nc-

C'»vU En^rs.

CHART SHOWING GROWTH OF RICHMOND BANKS.

id

310

LOCATION" OF RESERVE DISTRICTS.

Partial list o) maximum deposits and loans of Richmond banks in 1913.
MAXIMUM

Virginia
West Virginia

D E P O S I T S OF B A N K S

$5,467, 679
1,793, 838

Georgia

FROM—

North Carolina
South Carolina

440,115

Florida

M A X I M U M L O A N S TO B A N K S

Virginia
West Virginia

$1,459,080
90,700

Georgia

MAXIMUM

$5, 245,451

MAXIMUM




DEPOSITS

South Carolina
OF B A N K S AND

$7,690,820

-

79,750

South Carolina

L O A N S TO I N D I V I D U A L S , F I R M S , A N D C O R P O R A T I O N S

MAXIMUM

North Carolina

$2, 200,480
2,423,915

Florida

$3, 225,369

North Carolina

IN—

D E P O S I T S TO C R E D I T OF I N D I V I D U A L S , F I R M S , A N D C O R P O R A T I O N S

North Carolina

North Carolina

142,918

North Carolina
South Carolina

669,900
MAXIMUM

$4,465,455
926, 779

L O A N S TO B A N K S

7,445,931

...

$1,416, 997

..

$3,129, 815

..

$2,343,776

...

$5,553,730

IN—

INDIVIDUALS.

South Carolina
AND

IN—

INDIVIDUALS.

South Carolina

RICHMOND,>VIRGINIA.

311

DEPOSIT FLUCTUATIONS OF EICHMOND BANKS.
r
0 - 0I \ \ C >( 1
V
\ u)
)
ll
* 0 A i a1 K - s: u> s
: S
i i
? Ui
- - ! ^i L - / < J ^: > V
;0 : a i . i u) a: >:
2 J C : ;<
<>i
>a
2 t h 1 CI
1
V
Hc [c
I
Ll O
'c
>4 w
i i iu
7 :2
->1
> 0) A
7(l) 2 d
- c it. ! i
EK r
30 6
\ 3O! >
\ 9C 8
f s K «>
: <
-se-

£

!

:

c i
I L . ( > r. r
i !o > ; J
i
C <; c)
J]
> o1 i 5 ^
\3 >

r
a ) J i o:i :
ui a: Li a ) it V r
t:
2 LJ: kJ t i I
.J
>
\\ J?
7 0J»c > i
I
9

Vi
ai 1
<:fl i
••L
-1. ! s
4:u

1
uj a
2 o SI
I
> < C)
*

-50-

1/

" fQ/cf

i

* rj'
T 4-f-'/
"TO/i
$ J |
N
Vl I

I

/

I
J
r

-J
i
L
f
1 H
(-\r f

H

/
r

>
n

4 Tt

\

V \
I /
-

r~
j f
-I I
/"
r

\t
r

-

F1

/

\

TO

\

\

TOqr
y. r*.

\
r
\I
-V

H- "
7C
.
rO/g
1
^zrft
' O -r"
•iJ/vre

i
(

'"Sj'fZ
J ^

1

iL
f \
i i
r [

T

k
I
$

/

, TprV
s^ /
• vv^jt
' sJ V

/

•
....J

•

/A

i \
(i i
A
\

1 TV
"OJ
*R\

7
I

//
(

£7

fiv

•

JV
/

rJ

i
(

/

i
f

?

3*5

• L

s

S

J

Sf

f r ;r"

\>

/

u*
3

1
f

N

X-^/C

t

f

Pfi'A
27/-

(k
/

9<
w OS




>0
\<5 6

ii< 0 7

\19lOlB

\

39

I
fy
$

/

l/K
"Vj-

*

K
/ ; L. X
77
X6/ P

\ ??

/l
\-h
S'

i "A
1
!
f
J
t

»
if

J
f
i"
r
\

•1

1

i
/
j

r1
—Mfc

47

\

IS5 \Q»

i 3\ i

V. e.

ncPROOucto JflOH C h W T

W-P. SV1E.UTON

r 3 13
r*AT t
*tcnn0H0,«A.

6©i.ro« C U A R*C A

312




LOCATION" OF RESERVE DISTRICTS.

Statement of capital, surplus, and deposits of the national banks located in the Southeastern States.
Capital.
Virginia
West Virginia
North Carolina
South Carolina
Georgia
Florida
Alabama
Mississippi
Louisiana
Kentucky
Tennessee

Surplus.

Gross deposits.

$17,600,000
10,000,000
8,400,000
6,300,000
15,100,000
7,500,000
10,200,000
3,400,000
3,000,000
12,300,000
13,200,000

$11,600,000
6,400,000
2,800,000
2,100,000
9,300,000
3,000,000
5,800,000
1,600,000
2,300,000
5,200,000
5,500,000

$113,000,000
64,000,000
46,000,000
30,000,000
63,000,000
40,000,000
50,000,000
17,000,000
17,000,000
46,000,000
78,000,000

Capital and Capital and
surplus nasurplus
tional banks. State banks.
Washington City.
Richmond, V a . .
Atlanta, Ga

$11,500,000
10,700,000
9,700,000

$16,200,000
7,300,000
7,300,000

Total.

Deposits.

$27,500,000
18,000,000
17,000,000

$83,000,000
53,000,000
35,000,000




313

R I C H M O N D , > VIRGINIA.

R1CHM0NO

CENTEX

OF
^ —'
sTION

MAP
SHOWING LOCATION OF

RICHMOND
WITH RESPECT TO

CENTER OF PRODUCTION
(FARM, MINING AND MANUFACTURING)
IN REGION OUTLINED

"

BOLT CM CLARKE ft PRATT Xhc
CIVIL EH&INECKS
EN&incCKS
RICHMOND, VA .




RICHMOND, > VIRGINIA.

315

BRIEF FILED ON BEHALF OF THE NORTH CAROLINA BANKERS' ASSOCIATION.
By

GEORGE

A.

HOLDERNESS,

When before the committee in Washington on the
15th of January, Mr. J. W. Norwood, of Greenville,
S. C., and Mr. R. G. Rhett, of Columbia, S. C., stated
that Maryland should be added to the district outlined
by the Richmond committee, and from further study
of the question it appears that this should be done, as
well as all of West Virginia. And it is believed that
this can be done without in any way interfering with
the natural territory of any other district, since it appears to us that the North Atlantic States should be
divided as follows:
Maine, New Hampshire, Vermont, Massachusetts,
Rhode Island, and the eastern part of Connecticut,
with Boston as the reserve city.
New York, western Connecticut, northern New Jersey, with New York as the reserve city.
Pennsylvania, southern New Jersey, and Delaware,
with Philadelphia as the reserve city.
This leaves Maryland in the nature of a "floater."
With this added territory our district would embrace
the following States: Maryland, Virginia, West Virginia, North Carolina, South Carolina, Georgia, Florida, the eastern part of eastern Tennessee, and the
eastern part of eastern Kentucky, and the District of
Columbia. This territory, with its diversified interests and banking capital, would be entirely independent and amply self-sustaining under not only normal
conditions, but under almost any conditions.
Now, with this territory fixed upon, the next question is which city within this territory could best serve
the whole territory. On this point we respectfully
submit that Richmond is unquestionably the city.
Ninety-one per cent of the banks in North Carolina,
including all of the national banks except six, have
already expressed themselves in favor of Richmond,
and the banks so desiring Richmond represent 89 per
cent of the capital, surplus, and profits of all of the
banks of North Carolina, and 98 per cent of their
deposits. Of the said 91 per cent of the banks voting
for Richmond, 373 of them are expressly for Richmond
as first choice, and the balance of 69 (except three for
Baltimore) are equivalent to a first choice, as they
name Charlotte or blank their first choice.
Not one of the North Carolina banks has expressed
a first preference for Atlanta or Washington, and only
three for Baltimore. South Carolina has expressed its
preference for Richmond almost as strongly as North
Carolina, and has given Atlanta only two first choice
votes and Baltimore one.
The States of Virginia, North Carolina, and South
Carolina, with national banking capital and surplus
of $48,800,000, are as unanimous for Richmond as the
same number of institutions can be for any one thing.




President.

Richmond, though not a reserve city, has been able
to take care of its southern connections under past
conditions, and Richmond's clearings for this district
can be more fully seen by the fact that of the total
deposits of the national banks of Richmond (not
a reserve city) 30 per cent of them are deposits from
out-of-town banks, whereas of the total deposits
of the national banks of Washington (a reserve city)
only 17 per cent of them are from other banks, and
of the total deposits of the national banks of Baltimore
(a reserve city) only 41 per cent of them are from other
banks.
The above shows that Washington has done so little
for this territory that this alone seems sufficient reason
to eliminate Washington from this contest.
Atlanta must be eliminated because, the trend of
business being northward, it can not make a territory
for itself without taking in and doing violence to
States north of it.
Of the banks in Maryland, District of Columbia,
Virginia, West Virginia, North Carolina, and South
Carolina, only 659 have accounts in the reserve city
of Baltimore (as shown by Baltimore's evidence),
whereas 726 have accounts in Richmond, as shown by
the list filed by the Richmond committee.
We do not know what powers a branch bank will
have, and therefore can not say what will be the difference between the services given from the parent bank
and the branch bank, but, as the term implies, a branch
can not be as large as the parent, and I think it is
safe to assume that, while the directors of a branch
bank will pass on paper under certain restrictions, the
branch will not issue currency or keep a great amount
of currency on hand.
Baltimore and the terrritory surrounding it, we submit, could be more conveniently served by a branch
of the Richmond bank than Richmond, and the territory mapped out could be served by branches from
Baltimore.
The capital and surplus of the national banks of
Virginia are greater than those of Maryland, and with
North Carolina and South Carolina they exceed that
of Maryland by over $20,000,000. And of the total
capital and surplus of the national banks in Maryland,
Baltimore city has all but $8,000,000.
Richmond would be a thoroughly convenient place
for a bank to serve Baltimore, and it is certainly more
reasonable to require the few banks of Maryland outside of Baltimore, with only $8,000,000 capital and
surplus, to come to Richmond as the parent bank than
to require the banks of Virginia, North Carolina, and
South Carolina, representing capital and surplus of
$48,800,000, to have to go to Baltimore as the parent

316

LOCATION" OF RESERVE DISTRICTS.

bank at a great inconvenience, to say nothing of the
territory farther south. A branch in Baltimore could
better take care of the few banks in Maryland than
branches of a Baltimore bank could take care of the
many banks in Virginia, North Carolina, South Carolina, and the southern territory, where large amounts
of currency are often needed and needed quickly.
As stated by Col. Bruton when before you in Washington, it is important to have a sufficient amount of
currency within easy reach of the tobacco, cotton,
and peanut sections of North Carolina, and this may




be said of South Carolina and the more distant southern points. As shown by the time-table filed with the
Richmond brief, currency wired for from Richmond in
the evening can reach the greater portion of this territory by business hours the next morning.
Richmond, as stated by Mr. Norwood when before
you in Washington, is practically one business day
nearer the majority of this territory than Baltimore is.
Respectfully submitted.
T H E N O R T H CAROLINA B A N K E R S ' ASSOCIATION,

By

GEO. A . HOLDERNESS,

President.




ST. PAUL, MINN.

ST. PAUL, MINN
STATEMENT OF THE REASONS FOR ESTABLISHING A REGIONAL RESERVE BANK AT
ST. PAUL, MINN.
NEED OF A NORTHWESTERN

DISTRICT.

The first step in determining where regional reserve
banks are to be established must be the division of the
United States into suitable districts. The sole desire
of your honorable body is to consult the best interests
of the whole country, and to take such measures as
will most facilitate its business and conduce to the
successful operation of the new currency system. The
purpose of the following statement is merely to set
forth facts, necessarily unfamiliar to you by reason of
their more or less local character, that may aid you in
reaching conclusions; and first of all, it is desired to
prove the propriety, possibly the necessity, of making
the Northwest, popularly so called, an independent
regional reserve district.
The term " Northwest" will be used throughout
with two meanings—the first including the five States
Minnesota, North Dakota, South Dakota, Montana,
and Idaho; and the second covering seven States,
adding to those just mentioned the States of Washington and Oregon. I t may seem best to you, who have a
national problem to consider, to include the entire
Pacific coast from north to south in one district. It
may seem best to you to make one district of the
northern tier of States from the Mississippi River to
the Pacific. These seven States are closely tied to one
another by the fact that four transcontinental lines of
railroad traverse them. The Great Northern, the
Northern Pacific, the Chicago, Milwaukee & St. Paul,
and Minneapolis, St. Paul & Sault Ste. Marie Railroads, running from St. Paul to Seattle, Tacoma, and
Portland, unite them in a close community of interest
and of business relations. Ties such as these may
easily override geographical conditions, since the
business of banks with one another depends so greatly
upon abundant and quick intercommunication.
The figures given hereafter are all absolutely official,
being taken either from the returns of the United
States census or from official reports by heads of departments or business organizations. They are intended to serve your convenience whether you decide to
make a northwestern division running east or west, or
to include only the more compact territory ending
with the Rocky Mountains.




The total area of the five States mentioned is 464,019
square miles, and of the seven, 629,845 square miles.
This is from 15 to 20 per cent of the total area of the
United States. The population of the five States increased from 2,877,211 in 1900 to 3,938,299 in 1910,
and of the seven States, from 3,808,850 to 5,752,964.
The increase in the former case was 36.9 per cent and
in the latter 51 per cent, as compared with an increase
in the United States for the same period of 21 per cent.
You will undoubtedly, in delimiting reserve districts,
take into consideration the ratio and probability of increase in population and in every kind of industry.
When these districts have once been established, they
can not easily be changed. A readjustment of any one
would mean the rearrangement of others, with all the
confusion incident to a transfer of banking relations
and the possible removal of one or more regional reserve
banks from one city to another. I t can be avoided
only by the creation in the Northwest of a separate
district, for which there is abundant warrant in the
existing volume of business and an absolute necessity
in the certainty of coming development as measured
by its past history and by the amount of its undeveloped resources.
SOIL PRODUCTION.

This being preeminently an agricultural region, the
amount and value of soil products are indicative of
present importance and their changes indicative of
future growth. The increase in the value of all crops
grown in the United States between 1899 and 1909 was
83 per cent. The increase in Minnesota was 67.2 per
cent; in North Dakota, 234.3 per cent; in South Dakota, 184.1 per cent; in Montana, 177.9 per cent; in
Idaho, 270.7 per cent; in Washington, 235.4 per cent,
and in Oregon, 124.9 per cent. In North Dakota,
Idaho, and Washington the crops of 1909 were more
than three times as valuable as those of 1899. In
North Dakota and also in South Dakota there was, in
these 10 years, an increase of over 1,000,000 acres in
the area of land devoted to crops. Agriculture, which
your committee desires especially to serve and encourage, is increasing here at a rate which these figures
show to be phenomenal. That rate of increase will be
maintained substantially for many years to come. It
319

320

L O C A T I O N " OF R E S E R V E

goes without saying that the marketing of these crops,
valued in 1909 at $563,666,657 for the five States and
at $691,634,435 for the seven demands ample banking
facilities.
The annual reports of the grain inspection departments of Minnesota and Illinois for the "crop year"
1911-12 give the carload receipts of grain for their
principal markets as follows: Chicago, 174,605;
Minneapolis, 130,905; Duluth, 41,779. For the calendar year 1913 they were as follows: Chicago, 203,953
cars; Minneapolis, 160,554; Duluth, 87,920; the gain
for the year 1913 bringing the total for the two grain
markets of Minnesota to an amount considerably in
excess of the Chicago receipts. In addition to the
enormous grain receipts of our district a very large
business is done by St. Paul with the Canadian Northwest, which will increase steadily with the development of that country and the inevitable relaxation of
tariff restrictions.
VOLUME A N D DISTRIBUTION OF BANKING

BUSINESS.

The currency act provides that each national bank
shall subscribe for stock to the amount of 6 per cent
of its paid-in capital and surplus, and fixes the minimum capital of a regional reserve bank at $4,000,000.
By the report of the office of the Comptroller of the
Currency as of October 21, 1913, the national banks of
the five States mentioned have a combined capital
and surplus of $67,757,967, and those of the seven
States $98,849,316. Six per cent of the former amount
is $4,065,478, and of the latter $5,930,958. Either
district, therefore, can qualify under the law without
calling for supplementary subscriptions as authorized
in the law and the results arrived at do not include
northern Wisconsin which is tributary and should be
in the district.
A better basis for calculation in a case like this is the
total amount of capital engaged in all kinds of banking
business; and even more so, perhaps, the total number
of banking institutions. With an eye to the future,
the number of banks, indicating the needs already felt
in a growing section, establishes the true relation of
the territory considered to the whole country. In
both respects, the claims of the Northwest and of St.
Paul are statistically entitled to consideration.
According to the report of the Comptroller of the
Currency, the number of national banks on July- 7,
1913, in the United States was 7,490. The number in
the five States was 631 and in the seven States was
792. The latter is almost one-ninth of the whole.
The number of all financial institutions reporting,
including State and savings banks and trust companies,
by the same report was 25,963 for the United States,
2,883 for the five States, and 3,493 for the seven. The
former is one-ninth of the whole, approximately, and
the latter is nearly one-seventh. Beyond a doubt
many of these institutions will apply for permission
to come in under the new law. But merely on the




DISTRICTS.

basis of the number of existing national banks, as
related to the whole number, and as indicating immediate financial needs of a country in the full tide
of growth, the claim of the Northwest to be constituted a separate district seems to be well founded.
The total loans and discounts of all banks were,
according to the comptroller's report, $575,093,168
for the five States and $798,502,331 for the seven.
For centralized banking purposes St. Paul and
Minneapolis can be considered as one great city of
more than half a million people. In addition to the
other reasons contained in this statement why St.
Paul is entitled to precedence, its present banking business shows a volume worthy of the establishment of
a regional reserve bank. The total capital stock, surplus, and undivided p