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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. 1904 1905 1906 1907. 1908 Imports. Exports. $18,761,963 25,226,618 35,364,145 36,184,322 23,722,054 $84,099,727 103,550,042 107,609,144 99,322,342 81,874,087 Calendar year. 1909 1910 1911 1912 1913 Imports. Exports. $27,418,567 32,377,480 28,382,580 27,901,843 35,553,814 $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, 26.5 18.3 22.0 135.6 93.2 43.3 71.3 78.2 51.8 138.2 54.4 57.1 41.8 51.7 92.2 130.0 108.2 108.1 120.5 155.3 141.1 123.4 5.0 38.1 154.2 162.4 128. 4 202.8 80.2 165.5 167.8 84.4 30.4 96.1 81.7 106.3 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: District. First Second Third Fourth Fifth Sixth Seventh Eighth Capital and surplus. Reserve bank capital. $150,000,000 521,490,000 261,377,000 283,482,000 142,261,000 208,658,000 82,164,000 118,373,000 $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. Value of all farm products Value of manufactured products. National-bank capital National-bank deposits 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 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 COUJMBO* jfeki r•® 'K Y v i R HOB' KNOXVL 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 13 A o W > > % o o Q > H W H cCnD 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 New York Massachusetts New Hampshire Connecticut Delaware Maine Maryland District of Columbia. Pennsylvania New Jersey Ohio Illinois Indiana Wisconsin Michigan Arkansas Nebraska Missouri Texas California Utah New Mexico Arizona Oklahoma South Dakota Iowa Colorado Idaho Oregon Wyomjng Kansas ITEMS SENT. Account. Per cent. $66,294 63,498 36,077 6,688 2,791 5.429 6,168 6,562 1,917 1,414 7.430 0.1771 .1697 .0964 .017;8 .0074 .0145 .0165 .0175 .0051 .0038 .0191 204,268 .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 .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 9.5 7.5 10.7 1,676,000,000 8.3 Deposits. 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 PERCENTAGES OF TOTAL I N THE UNITED STATES. 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 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. 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 West Virginia 117 North South East Kentucky 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 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: 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 $64,725 11,895 147 76 $14,733 2,917 $55,688 12,627 219 $30,805 6,282 $120,709 23,797 16,968 57,505 197 19,426 68,664 314 36,394 126,169 10,068 5,962 938 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 1,591 1,933 8,590 822 3,451 5,404 723 1,557 679 632 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 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. 7,194 Ohio Indiana West Virginia Kentucky Tennessee 17,438 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 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. BANKS. Other. Total. Spring. United States. 100,460 0) 0) District- 9,256 6,560 15,816 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 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 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 Summer. Fall. Winter. N u m - Per N u m - Per N u m - Per N u m - Per ber. cent. ber. cent. ber. cent. ber. cent. 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. 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. ft <1 Nov. 10,244 0) Oct. District 51,447 Sept. 0) Aug. 71,881 July. United States June. Total. May. 0) National. Other. Mar. Total. Jan. Other. BANKS. Feb. Nov. 26, 1912. National. Demand for credit, by months. 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. United States. . 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. »» M AGGREGATE BILLS PAYABLE AND REDISCOUNTS 1913 IONS 17 16 15 14 13 12 11 /* 9 8 7 6 4 fr 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 . . N -1912, 10 100.0 13,163,810 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" in district tm mm mm wm I I NaFlVbzmks X . UUIIIW I II WIWI » IVI / Of total Natl Bks in U-S 91,972,266 % * * * * 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.) DISTRICT POPULATION STATISTICS. PERCENTAGES OP T O T A L IN THE U N I T E D STATES. 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 United State; 2,402 1,172 629 372 179 | 31 19 District 320 145 95 51 20 | 7 2 Ohio Indiana West Virginia Kentucky Tennessee 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: Value of product of leading manufactures. 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 Miles p e r Per c e n t ! of United j 100 | 10,000 • States. ! square ! inhabimiles. I tants. Miles. United States. 244,180 : District. 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. Ohio Northwest West-central.. Southwest North-central. Central South-central. Northeast East-central... Southeast Indiana. Northwest... West-central. Southwest... Northeast East central.. Southeast 811,989,000 4,767,000 721,000 403,000 005,000 510,000 333,000 200,000 045,000 451,000 320,000 428,000 410,000 851,000 374,000 502,000 313,000 1,303,000 382,000 204,000 5,336,000 2,701,000 526,000 636,000 511,000 431,000 2,275,000 958,000 407,000 390,000 462,000 395,000 759,000 288,000 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 2,834,192 7,681,020 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 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 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. 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.. H. 10 10 11 10 m. 40 20 55 20 13 13 14 14 14 14 8 8 10 11 10 9 7 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 SHIPMENTS. By rail.. B y river. Total Total. j 6,224,521 1,935,994 $2.00 | $12,339,042 2.00 3,871,988 ! 8,160,515 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 ro a> H O % o § w a § tel w H B o HI 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 Total 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. 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 3,327,248 131,479 204,870 352,450 170,200 162,555 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.] U n i t e d States District P e r c e n t of U n i t e d States. Ohio Indiana W e s t Virginia Kentucky Tennessee Total population. Rural population. 91,972 13,161 14.3 49,348 8,127 16.5 4,767 2,700 1,221 2,289 2,184 2,101 1,557 992 1,734 1,743 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 Acres in farms. Per cent of land in farms. 53.7 61.8 6,361 1,088 17.1 878,798 97,660 11.1 46.2 83.6 44.1 57.6 81.3 75.7 79.8 272 215 96 259 246 24,105 21,299 10,026 22,189 20,041 92.5 92.3 65.2 86.3 75.1 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. . Ohio Indiana West Virginia Kentucky Tennessee Average value of all f a r m property per farm. $4,925,173 642,720 13.0 138.1 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. Bushels. Value. Bushels. 157,513 195,496 17,119 83,348 67,682 $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. 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 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 Oats. 10,988 10,726 2,239 6,937 5,774 Wheat. Corn. 230,338 204,210 40,375 138,973 120,706 Bushels. 23,433 23,067 5,543 19,247 17,415 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 MINING. 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 51,403 39,110 15,860 25,971 20,691 Number. Ohio Indiana W e s t Virginia Kentucky Tennessee 19,749 15,287 3,672 7,605 7,258 Horses, mules, etc. Number. 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 of farm prop- f aValue 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 Number of farms. Per cent. 21,685 5,360 2,719 3,448 1,854 Number. 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. United States District Per cent of United States Ohio Indiana West Virginia Kentucky Tennessee Wage earners. Primary horsepower. Capital (thousands). 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 12.5 523,004 218,263 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 Establishments. 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 28,252 824,202 334,375 92,878 111,779 104,016 Leather Marble Paint tanned, Liquors, Liquors, Lumber and and timber stone disand curried, malt. tilled. products. etc. work. varnish. 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 ubber andcom- Print- Rgoods 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 «FC OHIO S O U T H W E S T E R N 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 <FE W E S T E R N 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 Total EXHIBIT Population. 41,060 36,350 24, 780 40,400 42,050 4,767,000 2,700,000 1,221,000 2,289,000 2,184,000 184,640 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 CO 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 TABLE B . — P o p u l a t i o n . Cleveland. 1909 1910 1911 1912 1913. 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. 1904. 1905. 1906. 1907. 1908. 1909. 1910. 1911. 1912. 1913. Cleveland. Cincinnati. Pittsburgh. $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 $1,511, 653.48 1,622, 343. 16 1,835, 960.01 2,046, 951.72 2,017, 427.64 2,134, 086.78 2,411, 111.78 2,634, 097.55 2,922, 842.55 3,136, 125.09 PITTSBURGH. 1904 1905 1906 1907 1908 1909 1910 1911 1912 1913 CLEVELAND, OHIO. CHART I Reserve percentages of the five reserve cities in "District 5", averages of thefivecities, and averages of all reserve cities in the United States, (at dates of Comptroller's Calls, 1911-1913 inclusive) 46458°—S. Doc. 485, 63-2 7 97 98 LOCATION" OF RESERVE DISTRICTS. CHART II Population tt 5 YEAR 3 185Q I860 1870 1880 1390 19QO lfrlO 1 2 3 4 5 € 1 1 1 5 4 3 5 I 7 U 6 1 Q 4 4 I liiiiiiiiiiiniiiittii 8 1 2 1 6 2 3 9 U-mMII | 1 2 5 5 1 3 9 1 lilliiiiiiiiiiiiiniii) 1 2 9 6 9 0 8 1 9 lO I 5 2 5 9 0 2 1 uiiiiiiiiiiiiiiiiiiiiiii ilPHHElll 11 tlfllltllllHIIIIltllllfl 12 • • j QiiEm&ziii 14 • • 1 3 6 4 4 6 3 1 1 15 Iflllllllilllllllllllll!! iiEssaaii 16 llllttlUMUIIIIilNIIII 17 msBsam 18 19 1 20 21 22 J 23 24 LEGEND j lClHCINNATI j lljjj^'^lj^)) CLEVELAND, O H I O . 91 CHART III Postal Receipts for Offices Named Below for the Years 1904 to 1913, Inclusive* > 3000000 y i y Jl Y j / / // / J / r 2500000 1 0 jT 2000000 jJ j —i 1 ; - ' T< 1500000 , "1 I oooooo Soo 0 0 0 YEAH 1904 1905 1906 1907 1908 LEGEND CLEVELAND CINCINNATI PITTSBURGH 1909 1910 19" 1912 m 100 LOCATION" OF RESERVE DISTRICTS. CHART IV Manufactures Statistics From U. S. Census 1910 LEGEND CAWTAV .INVESTED CLEVELAND VALUE OF PRODUCTS" CINCINNATI CAPITAL INVESTED VALUE OF PRODUCTS PITTSBURGH CAPITAL INVESTED VALUE OF PRODUCTS CLEVELAND, OHIO. 93 CHART V Annual Exchanges of the Clearing Houses of Cleveland, Cincinnati and Pittsburgh For Period of Ten Years Each Ending September 30th (From Reports of the Comptroller of the Currency) • 0 J * s \ % \ K00 oooooo / < » \ / V / « * \ 9/ % % \ 2000000000 / 0/ •% — r ——— 00 00 0 %* moooooo — — moooouc ^ ^ r™— YEA* 1*03 1904 190$ 1906 »907 (908 1909 LEGENO CUYUANO CINCINNATI 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 A $ocqooooo Jf >k yr 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 ^ | - r f ciNtmti/m * 1 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, $178,074,480.74. 107 108 LOCATION" OF RESERVE DISTRICTS. \tLwis\ &SKNCE& U . 3 . MSUL FROM •Nntnrnl Bonndarics. South South North North and West a n d East a n d East - - - - - - DALL M e x i c o and t h e Gulf. M i s s i s s i p p i River. A r k a n s a s Kiver. S t a t e L i n e of O k l a h o m a a n d N e w M e x i c o . T h i s district is set apart and designated by the. Railroads and approved by the Interstate Commerce C o m m i s s i o n as t h e S o u t h w e s t e r n Traffic C o m m i t t e e Territory. SERVICE AS DALLAS, 109 TEXAS. PHOTOGRAPHIC*COPY OF UNITED STATES CENSUS MAP SHOWING GEOGRAPHIC DIVISIONS. N DAK. o • MIN '04 HQ W E S OAK si• L T E ( A \ S "T NORTH N68M M O UTAH CENTRAL A ^ORTVTOINT^] I N CAL. COLO I i W-E S A* J' ON QU.^J M.SS CO SOUTH CENT'RAL rexAS PERCENTAGE OF THE WHOLE UNITED STATES IN THE PROPOSED SOUTHWESTERN DISTRICT. Population 1914, Area Number State Banks Number National Banks F a r m Cfopfr^ Live S t o c k P r o d u c t i o n Gotton Lint Cotton Seed Gotton Exports Total Exports Average 110 LOCATION" OF RESERVE DISTRICTS. £ Z ZP CONDENSED FACTS ABOUT THE TERRITORY 17.4# QFTHE AREA OF T.H E UNITED STAT E5 PIT 5S4ftMfl 6.3^0FTHEPOPUkATIOM.OFTHE UNITED STATES [7663436] i2.6#0FTHENATIONALBANKS OFTHE UNITED STATES [. 943 ] iO.2^'0F THE STATE .BANKS OF THE UNITED STATES. 1/1816 ] 13.9foOFTHEANNUAL FARM PRODUCTION OFTHE UN ITED 5LATE5SlOOQU8.537.00]. 41.mOF:.THEANNUAL(5T7DN^^ PRODUCTION OFTHE UN!TED3TATES [f 3Si. 132.400.00] . 44.5^0FTHEANNm'LCOTTON "SEED PRODUCTION OFTHE UNITED STATES ^54,765550,00] 9.7$>OF JHB ANNlJAL.Li\/E>SFOCK' PRODUCTION OF THE UNITED STATES [^05224,1^:00 I 4 THE ANNUAL COTTON. EXPORTS OFTHE UNITED. STATES [4217000. MLES] TOTAL EXPORTS" OF THE UNITED"STATES [ l ^ ^ i ^ p d ] 'GAUVESJON. ONLY. 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 _ _ _ *°»<Jor Boont ,cibtoirn j • VV.>7^"o^i'qk^^^^^ AM ' ttl jf^jwV^^^^ OfA r 4 CrUrd^g. sr«i*1Op, Lnhmt^tttjji (V I LOL/O/P N'T - . ALti J-rP/NTO©I_jnT nn< J Crimp O » , H ; m\ f^fird ^- ^X - ^Rutiler j m. , 'vncty J Wuelaj>af>K . * toMt/g^pA^,^ \ l^fiJmprotfCo i: ^PVhV fV^s SpOJ^ ^^ Lr H 'f P v>V VVTo • QHatlttttU Y* creesoft vaifun-, f W^fff -cwirtka* ^WiUcafo > Q'iyirjrrLJ' C J?<R{MRFNTO ^o.^PSp^'-'^Ur^Offit B BM>"K 1 [OYarf^fh'h C^fowa -SCTrc/«| OlUtoii* „ iP^^bu'ioA, / >sL 1, \ Mosheiin^.•C^^JA5^^0''''?/- WACOII 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. IN earer 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. 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) Total Noneligible. Capital and surplus. NumNumber of Capital and ber of State State surplus. banks. banks. $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 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 46,387,000 531 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, and banks Total capital, profits of banks of carrying surplus, and carrying acEl Paso profits. counts in El accounts. Paso. State. Per cent. Arizona New Mexico West Texas Total $2,161,000 3,480,400 1,069,000 $2,023,000 2,507,100 1,069,000 93 95 100 6,710,400 5,599,100 83 STATE AND NATIONAL BANKS. Arizona New Mexico West Texas Total $5,390,500 5,420,800 1,468,500 $3,719,900 3,383,000 1,468,500 68 62 100 12,279,800 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. Arizona New Mexico West Texas Total $10,219,000 17,394,000 3,675,000 $9,789,000 14,520,000 3,675,000 95 83 100 31,288,000 27,984,000 89 Total $28,953,275 23,351,000 4,809,000 $21,915,275 17,272,000 4,809,000 75 73 100 57,113,275 43,996,275 77 Capital, surplus, and profits, and deposits of national banks in Arizona that carry accounts in El Paso. [Figures in number column indicate number of banking connections maintained by the bank in El Paso.] City. 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 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 Bank. 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 Total 1 Surplus and profits. Number. Capital. 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 39 862,000 Deposits. $177,000 $1,590,000 5,000 150,000 95,000 1,350,000 10,000 2,000 62,000 834,900 12,126,275 2 New. Branch bank. Capital, surplus and profits, and deposits of national banks in New Mexico that carry accounts in El Paso. STATE AND NATIONAL BANKS. Arizona New Mexico West Texas City. 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.. Number. 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 $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.] Bank. 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 Capital. 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 21 740,000 Surplus and profits. $2,200 50,000 21,000 7,000 20,000 200 6,000 11,000 3,500 15,000 City. $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 Eagle Pass Fort Stockton.. Marfa Midland Pecos 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 13 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 Total i 1 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. ooooo OOOOO ooooo City. Number Alpine Barstow Clint Marathon Marfa Pecos Sanderson... Van Horn.... 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 11 285,000 114,500 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 Surplus and Deposits. profits. Number. 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 • CO ^ ^ ^ cSTOCKTCAf.® G ^AClDl \ Figures in circles O show number of banks in each town having accounts in El Paso. CD 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 8,508,600 57,724 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: City. Houston Dallas Fort Worth San Antonio Loans and discounts. Lawful money reserve. Individual deposits. $26,558,128 20,810,446 14,750,672 10,236,131 $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 10,425,000 451,482 100,234,000 14,861,000 27,966,800 26,368,000 5,616,262 10,876,482 175,046,062 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 CONSOLIDATED 1,463 Total REGIONAL 67,117,280 BANK—^PROPOSED SIX NATIONAL 13, DISTRICT. 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— 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 STATEMENT HOUSTON, JANUARY STATE BANKS. Texas Oklahoma Louisiana Arkansas New Mexico 167 TEXAS. Total Bank Individual deposits. deposits. deposits. Percentage Average bank daily loans on Loans to toloans total 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 January 23, 1914. Bank accounts carried with banks and trust companies of greater Kansas City. Capital. Other State banks and trust cornTotal Deposits. $641,584,459 997 51,833,675 22,267,510 249,661,856 2,341 149,006,175 80,716,214 891,246,315 2,861 42,319,205 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) Total. 1,558 25 35 2 1,479 606 51 21 591 106 1,558 2,916 Total Miscellaneous bank accounts not in above States. 4,474 604 5,078 PERTINENT FACTS. Our territory (as shown by map) has located within its boundaries 1,344 national banks, which in num- National banks Eligible State banks and trust companies Other State banks and trust com- 2,916 From national banks From State banks and trust companies Grand total. Number. Capital. Surplus. 213 $12,312,500 $6,151,068 181 Deposits. $70,176,775 7,680,000 3,777,300 40,341,000 752 11,315,300 3,940,626 77,829,478 1,146 31,307,800 13,868,994 188,347,253 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 ! KANSAS C1TO #DENVER A P W • % . at m tm m m m m «#—• - - TBRMTOEY 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 AMARIULOjtT 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 3,795,000 28 559,000 394,100 4,939,287 90 3,911,000 1,636,000 23,118,000 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 7,496,000 123,704,000 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 641,584,459 249,661,856 294,571,308 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: 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 12,042,970 129,775,670 $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 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) p. 771. 12. 05 2. 20 8.25 8. 35 9.15 (2) 9. 35 9. 50 10. 00 11. 00 (2) 11.15 Year. Wheat. 1904.... 1905.... 1906.... 1907.... 1908.... 1909.... 1910.... 1911.... 1912.... 1913 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 U Bushels. C11) C) 0) 1,346,428 2,733,500 1,973,000 Oats. Rye. Bushels. 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 /f U T A H £I COLORADO / j 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. 1910 1911 1912 1913 HORSES A N D Cars. Tons. 30,373 33,770 36,180 32,353 364,476 472,780 506,520 452,942 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. farm Price per Total Acreage Pounds value on pound Production. yield basis of Dec. 1, (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. and important commodities demanding the furnishAs indicated by the exhibit, these averages were ing of funds at the same period of time. This situacompiled from the five reports of the national banks tion is rather an unusual one, in that the needs of a to the comptroller during the year 1913, and, thereparticular industry are to be provided for at a differfore, for our purpose, are considered the most availent time from the needs of other important industries. able data. OTHER SECTIONS. So that the funds are steadily employed and there is Now let us compare a tabulation of another section, no tremendous demand upon the resources of Louisomitting 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 SHERLEY, RICHARD W. JOHN W . BARR, jr. KNOTT, EXHIBIT N o . 3. Population, 1913 clearings, bank capital, surplus, and deposits of the principal cities in proposed region No. 3. 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 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 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 1313 clearings. Capital. Surplus. Deposits. $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. 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 $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 Average rediscounts and bills payable. $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. Total 13,696,000 Same information as Exhibit 4, for the States of Tennessee, Georgia, Alabama, Florida, North Carolina, and South Carolina. Total 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 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 EXHIBIT NO. 5. 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. Apr. 4. 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 7,557,000 13 $666,000 2,387,000 1,535,000 4,851,000 1,182,000 199,000 $1,100,000 2,479,000 2,443,000 7,465,000 1,037,000 184,000 $1,485,000 2,604,000 4,173,000 10,810,000 1,298,000 328,000 Oct. 21. $1,785,000 3,846,000 2,925,000 5,823,000 2,626,000 324,000 142,000 236,000 240,000 753,000 10,962,000 14,944,000 20,938,000 18,082,000 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. $78,875,000 78,981,000 50,318,000 66,665,000 39,632,000 84,097,000 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 Amount of deposits available for loans Plus Federal bank capital 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 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 Aug. 9. [Based on national banks only.J $7,790,000 5,140,000 Feb. 4. June 4. 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. Total Tennessee Georgia Alabama Florida North Carolina South Carolina Apr. 4. REDISCOUNTS AND BILLS PAYABLE OF SAME REGION ON SAME DATES. EXHIBIT N O . 4 A . Average deposits, 1913. 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 Capital and surplus. 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 12 9 8 122 3 1 1 4 937 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 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 1 890 . 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).. 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 Total... 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-).. GEORGIA. Number of letters sent Number of replies received (15 per cent).. Total. 151 106 90 71 45 60 72 14 19 3 Total.. 195 KENTUCKY. 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 $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 Capital and surplus. 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. Minnesota North Dakota South Dakota Montana Washington Total South Dakota Washington THE RAPIDLY 1900 $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 34,827,000 126 804,800,000 354,994,000 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 $27,440,000 400,000 1,376,000 2,000,000 61,352,000 31,216,000 134,496,000 Total 1910 68 211 162 112 191 1890 Minnesota f GROWING NORTHWEST. Minnesota, North and South Dakota, according to the reports of the Agricultural Department of the United States, had from 27 to 35 per cent of their tillable soil under cultivation in 1909. They are credited by the same authority with having 146,000,000 acres capable of cultivation, as against 311,000,000 acres actually cultivated in the entire United States in 1909. Judging from the tremendous increase in the production of these States during the last 30 years, it is hardly possible to overestimate the probable production during the next 10 or 20 years. The population of these States in 1890 was 2,350,022, while the 1910 census gives the same States a population of 4,654,695, or a gain of nearly 100 per cent. The increase in business, agricultural products, and banking capital and deposits is many times greater than the increase in population, as will be shown by the following figures: 213 MINNEAPOLIS; , MINNESOTA. In 189$ 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. Crop of 1900. Wheat Oats Rye Buckwheat Total Hay tons.. Production. Value Dec. 1. Bushels. 51,509,000 31,795,000 41,908,000 7,276,000 1,037,000 8,637,000 144,000 $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. 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 70,653,000 40,727,000 68,889, 000 27,784,000 1,750, 000 6,014,000 8,961,000 75,000 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. Crop of 1906—Contd. Flaxseed Potatoes Buckwheat Total tons.. Production. 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. Crop of 1906—Contd. Rye Flaxseed Potatoes Bushels. 14,511,000 2,467,000 $14,802,000 1,135,000 155,780,000 258,000 82,995,000 1,158,000 Total 84,153,000 Total value 102,110,000 Total value Crop of 1909. Production. Value Dec. 1. Production. 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 68,244,000 1,495,000 14,852,000 692,000 7,813,000 6,156,000 13,969,000 69,739,000 Crop of 1909. Wheat Corn Oats Barley Rye Flaxseed Potatoes Buckwheat 94,080,000 58,812,000 90,288,000 31,600,000 2,280,000 4,500,000 18,400,000 76,000 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 Total Total Hay Montana. South Dakota. Kind of grain. Hay A—Continued. 'cons.. Hay tons.. 47,588,000 65,270,000 43,500,000 19,910,000 578,000 5,640,000 4,000,000 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 16,262,000 302,566,000 510,000 152,305,000 2,805,000 Wheat Corn Flaxseed Barley Cfats Rye Potatoes Total Hay Total Hay tons.. 159,815,000 Total value Crop of 1918. Wheat..... Corn Oats Barley Rye Flaxseed Potatoes Buckwheat Total Hay 29,656,000 114,691,000 Total value 189,932,000 Total value 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 16,434,000 187,080,000 388,000 194,178,000 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 value tons.. 52,185,000 76,347,000 5,323,000 23,062,000 52,062,000 312,000 6,510,000 Wheat Corn Oats Barley Rye Flaxseed Potatoes Total Hay.... tons.. 33,175,000 67,320,000 42,135,000 16,765,000 660,000 3,060,000 4,680,000 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. Wheat Corn..; Oats Barley Rye Potatoes Total Hay tons.. Value Dec. 1. Bushels. 20,150,000 32,149,000 12,654,000 1,544,000 28,000 4,031,000 $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 Wheat Corn Oats Barley Rye Potatoes Buckwheat 541,000 340,000 Total 5,366,000 59,000 2,709,000 5,139,000 Bushels. 1,930,000 24,000 2,569,000 202,000 34,222,000 Total value Value Dec. 1. 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 tons.. 134,295,000 278,000 60,255,000 1,285,000 13,639,000 698,000 6,095,000 6,150,000 $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 97,690,000 24,584,000 122,274,000 Crop of 1903. Wheat Corn Oats Barley Rye Flaxseed Potatoes Buckwheat Total Total Hay Hay tons.. 175,932,000 84,606,000 125,535,000 51,643,000 2,869,000 23,343,000 16,153,000 92,000 114,688,000 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 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 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. Flaxseed Potatoes Buckwheat. Total. .tons. Hay. Flaxseed. Rye. Summary. Kind of grain. Value. Bushels. 23,532,000 20,278,000 64,000 $23,965,000 8,169,000 35,000 581,060,000 2,743,000 253,135,000 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 3,687,000 446,996,000 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 4,939,000 421,745,000 33,259,000 Hay. Total value. Minneapolis shipments by crop years, with average price per year and values. Corn. Wheat. Year. Bushels. 1900 1903 1906 1909 191 2 1913 (part o f ) . . . 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 $78,500 213,200 316,500 398,900 396,500 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 61,154,110 128,757 374,072 586,084 752,573 748,120 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 imonths. 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. 7,014,978 10,834,386 14,456,972 16,151,795 19,050,337 $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 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. Private houses (estimated). 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. Minnesota North Dakota South Dakota Montana Total Capacity. 1,536 1,883 1,160 660 Bushels. 30,720,000 37,660,000 23,200,000 13,200,000 5,239 104,780,000 [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 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 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. GRAIN EXHIBIT 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 79,018,000 19,238,000 302,781,000 4,032,000 113,401,000 18,344,000 Total values 98,256,000 $14,414,853 6,486,684 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 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 Total values tons.. GRAIN EXHIBIT 134 $500,000 $1,000,000 800,000 financed 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 Total Hay tons.. 31,735,000 228,523,000 14,686,000 40,000 285,000 263,000 7,160,000 28,000 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 138,767,000 172,827,000 Crop year 1909. Canadian crops. 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 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 . . . . 18,051,139 141,243,000 Crop year 1906. GRAIN EXHIBIT J . Total 131,745,000 Crop year 1908. 22,195,000 202,840,000 17,402,000 34,000 280,000 347,000 5,741,000 34,000 (1913.) About 75 per cent exported. Ground screenings: Capacity per day Value of output Stock foods: Value of output Outside plants Value Dec. 1. Wheat Corn Oats Barley Rye Flax Potatoes Buckwheat H. Linseed oil, 216,222,794 pounds, at 6.666 cents per pound Oil cake, 432,445,590 pounds, at 1.5 cents per pound Production. Crop year 1900. Wheat EXPORTS. Kansas. Kind of grain. $46,454,793 54,539,747 46,837,250 73,295,517 75,960,230 68,043,841 169,664,495 Wheat Corn Oats Barley Rye Flax Potatoes Buckwheat Total Hay tons.. 28,562,000 213,840,000 18,630,000 50,000 225,000 202,000 7,480,000 42,000 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. Total.. Hay tons. Bushels. 72,000 30,000 7,980,000 $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 Oats Barley ?£-•::::::::::::::::: Potatoes Buckwheat Total Value Dec. 1. Production. 1,740,000 1,618,000 147,425,000 481,000 66,582,000 3,559,000 70,141,000 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 2,016,000 245,338,000 1,675,000 147,506,000 14,572,000 90,321,000 382,000 62,420,000 3,973,000 Total values 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. Crop year 1900. 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 Wheat Cora Oats Barley fc::::: Potatoes Hay.. Total T Bushels. 18,658,000 14,145,000 $9,889,000 3,678,000 fc::::: Potatoes Buckwheat.. Hay.. Production. Value Dec. 1. Bushels. 7,208,000 3,189,000 631,000 $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 32,803,000 13,567,000 Buckwheat. 13,567,000 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 34*666 452,000 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. 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 *""i,"824,"566" *"i,'4i2*666 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. Bushels. 10,968,000 8,736,000 12,412,000 2,964,000 488,000 96,000 tons.. $150,733,000 295,592,000 61,616,000 4,358,000 1,305,000 625,000 56,000 19,439,000 22,272,000 1,142,641,000 8,081,000 16,574,000 533,724,000 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 Bushels. 202,156,000 711,359,000 183,581,000 9,895,000 2,115,000 496,000 64,000 32,975,000 $8,006,000 4,368,000 4,717,000 1,482,000 268,000 120,000 8,075,000 Total Total South terminals. Kansas City Omaha St. Louis Total tons.. 9,680,000 6,300,000 10,675,000 3,250,000 340,000 50,000 7,551,000 4,599,000 4,697,000 1,820,000 204,000 58,000 9,200,000 39,945,000 1,824,000 Total values 5,980,000 216,074,000 325,186,000 149,660,000 7,127,000 2,998,000 454,000 52,000 22,934,000 168,121,000 230,194,000 63,067,000 3,867,000 1,941,000 523,000 43,000 18,075,000 24,909,000 18,240,000 724,485,000 19,181,000 485,831,000 79,760,000 43,149,000 565,591,000 L. Total Per cent. Number. Total.... Per cent. 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 42,597,600 0.038 43,880,500 0.044 51,685,100 0.048 1912 GRAIN EXHIBIT M. High-point terminal stocks—Contrasting Minneapolis and Duluth with southwestern terminals. Point. Minneapolis Duluth Date. Wheat. Corn. Oats. Apr. 2,1913 do Bushels. 21,668,000 18,156,000 Bushels. 64,000 44,000 Bushels. 1,308,000 807,000 Bushels. 286,000 158,000 39,824,000 108,000 2,115,000 444,000 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 Total Southwest terminals Kansas City Omaha St. Louis Total 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 Capacity. Number. Daily capacity. 24 3 4 8 2 Barrels. 77,160 7,000 7,500 14,600 4,000 2 Includes mill capacity. Does not include mill capacity. Minneapolis terminals Southwest terminals bushels.. 38,550,000 do 27,830,000 GRAIN EXHIBIT N. Elevator and milling capacity in various cities. Flour mills. Elevators. Cities. Number. Total.... Per cent. Mills. COMPARISONS. 1900 Wheat.. Corn Oats..,. Barley.. Rye.... 19,261,000 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.... 20,000 Elevators. Southwest receipts. Wheat.. Corn Oats.... Barley.. Eye.... 9,745,000 4,814,000 4,702,000 Points. 1 GRAIN EXHIBIT 17,000 3,000 Terminal elevator capacity and milling capacity. ) 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. 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 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 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. Number of establishments. Capital. Value of products. 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 2 Decrease. Minneapolis. 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. 1910 1911 1912 1913 Total Cost. Number. Cost. 79 55 52 47 $1,188,430 1,273,025 702,730 1,304,215 52 35 24 24 $495,820 317,800 224,650 938,300 233 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. 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 1912 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 7y, 196 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 C1) 60 C1) 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 C) 0) 0) 259 180 106 231 226 174 390 130 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. St. Paul. $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 $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 1905 1906 1907 1908 1909 1910 1911 1912 1913 $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 Year. Per capita. Receipts. Cities. M.—Post-office receipts of Minneapolisand St. Paul 1913. Year. 1850 1860 1870 1880 1890 1900 1901 1902 1903 1904 Per capita. Receipts. Cities. TABLE L.—Post-office receipts, 1912. 1850 to Minneapolis. 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 $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 Cities. 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. 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 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. 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 Total Capital stock. St. Paul. Number of new incorporations. Capital stock. 476 478 424 $60,804,200 74,325,600 54,314,000 156 138 107 $13,323,000 18,492,000 15,716,550 1,378 189,443,800 401 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. 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 In St. Paul. 25 1 All. 54 1,294 8 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 School sites and buildings Parks and parkways Public library Bridges Waterworks Sewer system Curb and gutters Paving All other Total $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 $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 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. 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. Capital. Surplus. $542,000 550,000 650,000 750,000 850,000 950,000 1,250,000 1,250,000 1,250,000 $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 Co 0* ZA ?* Cojapssilt RgptteagMtKnon u HhTioHAi BAHKS cf MmntfrpouS AI^OSTPAUU. 181^1113 16 iSugpLO^ .11 1U 15 H« O o• A o tej 0hrj 102 w H C o H oB H G G I 5 S ^ % 2* I ^ § g O er 2 »? & ? iI 8!; §o 5-, § sr c ** o. =r <r =c a s >s ^ K? <r CO vf 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 MIMMeAPOLIS^SI PAUL-1912 D e p o s i t s riATIOMAl BAMK5 Capital Surplus STATE BAMKS *&ty3Ms . DEPOSITS ' T O ^ M ^Wwwapous 73% % mrSrPMi. 27^ CAPITAL 11. SAVINGS BANKS TRUST COMPAli 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 KAI ISA£ CITY 3A <FIJAN<15<: NEW OR NS »19<Vfct BANK CLEARINGS {•JQMPFTTTFITLVG BAMIC GLEABIHSS MlWC VfesttBn ,AHO &tfTHgRH QTI63«M3 fLAMT^ SE/TTIE DE.r:v&r 5P01 CAHi - n\\ 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 Mi 1.670 K A N S A S CITY j IT. L o u 13 — MINNEAPOLIS 0 <R D U L U T H /0% 70,ZSd,*fdo /3% fttHSfif* iS% J4Z.080&O 33% . 8%£>20,ooo 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* 38% 51,68^,300 OMA HA ST. LOUIS O %-fTofai 130,1 t<?Mf OMAHA 4> XXIII KAN CITY , ST. LOUIS tff% 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 £85 1913. *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 IHoetTM Wesrcnti fftuat) _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 6A|ous •* Si T*UL ftvEKMaiBft EhK5"WI.9-1113 356its \ ^ ff iv Jl r" * ** 'sL 13 >6,14 \ v s f >J f V is \ •a* 24 H -N 22 > fe V> it' * s 6 •i j H 22% <tL i t \ t \ r i V VJ VJ C£ .< '15/OSfj51 & o < ?i V $17/nj84 a «-d n n 2o \ VA I 10 1 MINNEAPCL 15 Io 14V>C 55,256, f % vV m+J 5 1 Pi ML -SI A V / 'V * * s 3. 12 £ \ \ k X la 8 (,. (, 4 4 1 Usui | % faE JftIB_l4J 4- C -S7 $ 4 10 If i* 17-ft &Ja *L 2?& & i.r!.ru >— 0 26 ?0 37 38 44 *.7 vvbi Ai 41SOsi UlB K$ y Pis I^W l pec tn i nv*"-' . . J wri 4k 42 1 45 1 651! 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 GQ 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 so § o% 0 1U1 H I CD HJ B O H9 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. 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. Capital. Surplus. $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 $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 Year. 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 $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. 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. TABLE Deposits. 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 $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 1913.. 1912.. 1911.. 1910.. 1909.. 1908.. 1907.. 1906.. 1905.. 1904.. 1903.. 1902.. 1901.. 1900.. 1899.. 1898.. 1897.. 1896.. 1895.. 1894.. 1893.. 1892.. 1891.. 1890.. Denver. Seattle. Francisco. New Orleans. $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 $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 TABLE 5 . — Year. Kansas City. 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. $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 1898. 1899: 1900 1901. 1902. 1903. 1904. 1905. 1906. 1907. 1908. 1909. 1910. 1911 1912, 1913, Minneapolis. St. Paul. $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 $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, OATS, W H E A T , CORN, B A R L E Y , POTATOES, A N D RYE. [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 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 Year. 1913, 1912 1911 1910 1909. 1908. 1907. 1906. 1905. 1904. 1903. 1902. 1901. 1900. 1899. $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. Spokane. Year. 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 Total 269,845 288,064 286,908 289,504 337,598 344,654 * 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 and South Minnesota. and Idaho. 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 $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 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 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 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. 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 Per cent increase over previous year. IMPORTS. 1902 1903 190 4 190 5 190 6 190 7 1908 190 9 191 0 191 1 191 2 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. 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 21,090,235 20,280,466 17,350,945 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 Tn r-( 1909 City. 1911 1910 it C3 05 l i Is w ft Pk $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 •Sit> 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 > © ® fH C S « ft O ft ® TH £ ® ft c © a©sb ss © FT (-1 © o ft © PH $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 tuOcJ® p < $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 0 $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, 5 1' 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 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 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. Total.. MinneMinneapolis apolis. St. Paul. excess. MinneMinneapolis. St. Paul. apolis excess. 68,926 4 69,330 370,011 1,706 72,432 - 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 North 1901 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 1905 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 70,584 93 1,044 - 2,193 - 1904 1908 1912 OATS. 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 Montana, 2 Forwarded. 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 46 1900 42 4 Received. 11,786 154,208 4,238 21 12,578 8,717 32,905 3,928 3,370 352,671 34 17.—Freight traffic—Cars received and forwarded, by commodities, Minneapolis and St. Paul, 1913. 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 0o 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 3 EJ ,c© Year. 21,393 225,881 4,812 3,324 19,739 1,067 33,134 76,945 33,326 Minneexcess St. Paul. apolis and Minneapolis 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. Minnesota Montana North Dakota South Dakota Total United States RYE. 1909 1910 1911 $32,864 5,798 21,743 14,812 $27,341 6,817 5,607 10,695 $26,886 8,466 21,004 4,900 75,217 405,120 Value of various crops—Minnesota, Montana, North and South Dakota—Continued. 50,460 408,388 61,256 414,663 1912 $31,965 7,997 20, 948 13,098 74,005 452,469 1900 Minnesota Montana North Dakota South Dakota 1900 Minnesota Montana North Dakota South Dakota. Total United States. >,220 14 160 401 18,795 751,220 1902 1903 $13,531 59 722 12,223 $15,476 57 910 14,566 $15,051 59 766 15,788 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 $28,925 428 3,766 28,248 Total United States 64,003 1,477,223 53,074 1,384,817 71,003 1,565,258 61,367 1,520,454 $930 30 207 283 $787 29 158 282 $1,055 29 249 318 12,295 1,341 16,910 1,450 17,081 1,256 15,994 1,651 18,748 1905 1906 1907 1912 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 18,640 58,652 1905 1903 1906 1907 204 280 $1,079 32 227 336 $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 1909 1910 1911 Minnesota Montana North Dakota South Dakota $845 24 208 296 Total United States $854 1908 1908 BARLEY. 1902 1904 $927 29 146 239 1904 1901 $16,109 70 699 13,429 1903 34 11 $435 Total CORN. 1902 1901 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 36,449 92,442 1912 POTATOES. 1900 Minnesota Montana North Dakota South Dakota $2,591 340 753 1,451 Total United States 5,135 90,811 1901 $49 1904 1908 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. from Oklahoma and other distant sections that PittsNow, by referring to the Government census of burgh capital is developing oil and gas fields and open1910, you will see that Cuyahoga County, in which ing mines and mills all over the United States. So Cleveland is located, has a population of 637,425, we repeat, we are not asking for more money, but for while Allegheny County, a territory of no greater better facilities, and we are looking for this new sysextent, in which Pittsburgh is located, has a populatem 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 Baltimore Ricnmond f 2 2 1 59 54 51 47 43 38 29 25 25 22 20 18 5 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 QV><\Vton 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 rV /fc* W I Id&ox^*" I V VJK 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 1st 2d 3d Atlanta 1st 2d 3d 8 2 4 1st 2d 3d 3 1 2 1st 2d 3d 46 17 Charlotte Birmingham Baltimore Washington Cincinnati Louisville Jacksonville Nashville Pittsburgh 25 10 11 7 47 4 12 5 4 56 12 Total. 9521 305 >1, 335 78 J 6 7 2 96 22 8 8 1121 49 \ 163 2J 22 30 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 55 1 10 1 7 4 11 1 1 3 28 9 3 > 1 93 104 2 3 201 21 9 6 1 22 24 591 42 102 1 2 8 31 14 33) . 231 56 3 1 1 1 9 6 1st 2d 3d 1st 2d 3d Florida. 102) 91 111 1st 2d 3d 1st 2d 3d Georgia. 102 9 Columbia Savannah TenKennessee. tucky. 9 91 1 ll 1 3 21\ 3 1 5 3 RICHMOND, VIRGINIA. 307 MAP SHOWING LOCATION OF BANKS VOTING FOR RICHMOND FIRST CHOICE INDICATED THUS SECOND CHOICE INDICATED THUS THIRD CHOICE INOICATED THUS « o X 8OLT0N CkAR^EftPWTT/^ 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 OOQ "4-e, £-^0,000 S/tUfjOOO OOQ 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 Carolina South 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 > \ u) i (V1 - s: u Ui s ) : S i - / * 0 J All a1 K ? > - - ! ^i L : > ;0 : a i . i u)i a: >: 2 J C < : ^; < V > a 2 t h 1 CVI<>i 1 H I c Ll O ' c [ c >4 w i i iu 7 :2 ->1 > 0) A 7(l) 2 d - c it. ! i EK r 30 6 \ 3 \ 9C 8 f s K «> : O!<> -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 rt: 2 LJ: kJ t i I .J > \\ J? 7 0J»c > i I 9 Vi ai 1 <:fl i ••L! s 4-1:u . 1 uj ao 2 I SI > < C) * -50- 1/ " fQ/cf i * rj' T 4-f-'/ "TO/i $Vl JIN | I / I Jr -J i L f 1 H (-\r f H /r > n 4 Tt \ V \ I / - r~ j f -I I /" r \ tr - F1 / \ TO \ \ y.TOqr r*. \ r \I -V H7-C" . rO/g 1 ^zrft ' O -r" •iJ/vre (i '"Sj'fZ J ^ 1 iL f \ i i r [ T k I$ / , 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 / w9< OS >06 \<5 ii< 0 7 \19lOlB \ 39 Ify $ / 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. Virginia West Virginia North Carolina South Carolina Georgia Florida Alabama Mississippi Louisiana Kentucky Tennessee Capital. 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, th