The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Li IIT LT of the L FE DE R E 33 R D PERSONNEL Mr. W. G. McAdoo Er. Frederic A. Delano Mr. John Skelton Williams Mr. Paul M.-Warburg Mr. Charles 3. Hamlin Mr. W.P. G. Harding Mr. Adolph O. Miller. 4r ' At the first meeting of the Federal Reserve' Board, duly called by the Reserve Bank Organization Ca—littee in accordance with Section 10 of the Federal Reserve Act and held in Room 296 of the Treasury Building, on Thursday, August 13, 1914, at 3 p. m. TaESEITT: Mr. 7. G. McAdoo 1:r. Frederic A. Delano Mr. John Skelton Williams Paul M. Warburg Mr. 3. 3. Hamlin :,'. P. G. Harding Mr. Adolph C. Miller, constituting the full Board. Mr. W. G. EcAdoo, Secretary of the Treasury and ex-officio Chairman of the Board acted as Chairman of the meeting. On motion duly made and seconded 1:r. 0. Elliott was elected Secretary pro tem, and acted as Secretary to the meeting.. Dr. Henry B. Fine of Princeton University was placed in nomination for the position of permanent secretary, and there being no other nominations Dr. Fine was, on motion duly made and seconded, unanimously elected secretary of the Board. His compensation was, upon motion, fixed at :)6,000 1 :or annum, and pendinc the adoption of regular by-laWs his term of office was'fi:ced as at the pleasure of the Board. Er. Elliott, the Secretary pro tern, submitted, as Secretary of the Reserve Bank Organization Committee, a prolimin:Lry report to the Federal Reserve Board as follows: REPORT OF TLTE RESERVE BA1az OITIO:: Cari.:ITT.i.2 TO THE FEDER,IL Pal-3R7E BOARD. Pollaainc the passage of the Federal Reserve Act, approved December 23, 1913, the Orcanization Committee met and or:2anil-,ed on December 26, 1913, and be,:an its work of desinatinc not less than el,:ht nor more than twelve Federal reserve cities; defining the e.cx:raphical limits of the districts to organizing in be served, each of such Cities a Federal reserve bank, under the pliovisions of the Act referred to. It was deteruined to be advisable at the first meeti1„3 of the Committee to hold hearins in various parts of the United t1tates for the purpose of colIectinc and dicestin the nececsary information to enable it to carry out the purposes and intent of the Federal Reserve Act, and hearl_gs aere accordint;ly held in eihteen cities. After full consideration a decision aas reached and filed on April 2, 1914, with the Comptroller of the Currency. A cony of this decision, with an exDlanatory statement given to the press on Al;ril 10, 19149 is herewith filed for the information Of the Board. Pagc 2 Metin AUG 1 3 1914 __Sec' y. DECISION OF TIE RESERVE BANK ORGANIZATION COLLITTEE DETERMINING THE FEDERAL RESERVE DISTRICTS AND THE LOCATION OF THE FEDERAL RESERVE BANKS. (Under the Federal Reserve Act approved December 23, 1913.) The Federal Reserve Act directs the Reserve Bank Organization Committee to "designate not less than eight nor more than twelve cities to be known as Federal reserve cities"; to "divide the continental United States, excluding Alaska, into districts, each district to cona tamn only one of such Federal Reserve cities," and to apportion the districts due regard to the convenience and customary course of business." The act provides that the districts may not necessarily be coterminous with any State or States. In determining the reserve districts and in designating the cities within such districts where Federal Reserve banks shall be severally located, the organization committee has given full consideration to the important factors bearing upon the subject. The committee held public hearings in eighteen of the leading cities from the Atlantic to the Pacific and from the Great Lakes to the Gulf, and was materially assisted thereby in determining the districts and the reserve cities. Every reasonable opportunity has been afforded applicant cities to furnish evidence to support their _claims as locations for Federal Reserve banks. More than 200 cities, through their clearing-. house associations, chambers of commerce, and other representatives, were heard. Of these, thirty-seven cities asked to be designated as the headrluarters of a Federal Reserve bank. Page.. 3 ifeetin AUG 131914 •••••^ ey. . 4 The majority of the organization committee, including its chairman and the Secretary of Agriculture, were present at all hearings, and stenographic reports of the * proceedings were made for more deliberate consideration. Independent investigations were, in addition, made through the Treasury Department, and the preference of each bank as to the location of the Federal Reserve Bank With which it desired to be connected was ascertained by an independent card ballot addressed to each of the 7,471 national banks throughout the country which had formally assented to the provisions of the Federal reserve act. Among the manzr 17act ors which governed the committee in determining tne respective districts and the selection of the cities which have been chosen were: First. The ability of the member banks within the district to provide the minimum capital of ,;11,000,000 required for the Federal Reserve bank, on the basis of six Per cent of the capital stock and surplus of member banks within the district. Second. The mercantile, industrial, and financial connections existing in each district and the relations between the various Portion of the district and the City selected for the location of the Federal Reserve bank. Third. The probable ability of the Federal Reserve bank in each district, after organization and :o.fter the provisions of the Federal Reserve Act shall nave gone into effect, to meet the legitimate demands of business, whether normal or abnormal, in accordance with the spirit and provisions of the Federal Reserve Act. -Fourth. The fair and equitable division of the Available capital for the Federal Reserve banks among t-Le districts created. Fifth. The general geographical situation of the . district, transportation lines, and the facilities for speedy communicati)n between the Federal Reserve bank AUG 1 1914 •._Sec'Sr. and all portions of the district. Sixth. The population, area, and prevalent business activities of the district, whether agricultural, manufacturing, mining, or commercial, its record of growth and development in the past and its prospects for the future. In determining the several districts the committee has endeavored to follow State lines as closely as practicable, and wherever it has been found necessary to deviate the division has been along lines which are believed to be most convenient and advantageous for the district affected. The twelve Districts and the twelve Cities selected for the location of the 2ederal Zleserve Banks are as follows: . DISTRICT No. 1. 1 The New England States: riaine, ITew Hampshire, Vermont, ;.;assachnsetts, Rhode Island, and Connecticut, with the city of Boston as the location of the Federal Reserve bank. This district contains 445 national banks which have accepted the provisions of the Federal eserve Act. The capital stock of the Federal Reserve Bank of Boston, on the basis of six per cent of the total capital stock and surplus of the assenting national banks in the district, will amount to 9,924,543. ;d3TRICT No. 2. The State of New York, with New York City as the location of the Federal Reserve bank. This district contains 477 national banks which have accepted the provisions of the Federal Reserve ec'y. Act. The capital stock of the Federal Reserve Bank of rew York, on the basis of six per cent of the total capital stock and surplus of the assenting national banks in the district, will amount to 420,621,606; and if there be added six per cent of the capital stock and surplus of the State banks and trust companies which have applied for membership up to April 1, 1914, the total capital stock will be 420,667,606. MST:110T No. 3. - The States of New Jersey and Delaware and all that part of Pennsylvania located east of the western boundary of the following counties: LbKean, Elk, Clearfield, Cambria, and Bedford, with the Federal Reserve bank in the city of Philadelphia. This district contains 757 national banks which have accepted the provisions of the Federal Reserve Act. The capital stock of the Federal Reserve Bank of Philadelphia, on tho basis of six per cent of the total capital stock and surplus of the assenting national banks in the district, will amount to ,12,488,138; and if tnere be added six per cent of the capital stock and surplus of the State banks and trust companies which have applied for membership up to April 1, 1914, the total capital stock will be %;12,500,736. DISTRICT No. 4. . The State of Ohio; all that part of Pennsylvania lying west of district ro. 3; the counties of Liarshall, Ohio, Brooke, and Hancock, in the State of West Virginia; and all that part of the State of Kentucky located east Of the western boundary of the following counties: Boone, Grant, Scott, Woodford, Jessamine, Garrard, Lincoln, Pulaski, and McCrear y; with the city of Cleveland, Ohio, as the location of the Federal Reserve bank. This district contains 767 national banks which have accepte d the provisions of the Federal Reserve Act. The capital stock of the Federal Reserve Bank of Cleveland, on the basis of uix per cent of the total capital stock and surplus of the assenting national banks in the _ AUG11 131914 ec'y. 7. district, will amount to 012,007,304; and if there be added six per cent of the capital stock and surplus of the State banks and trust companies which have applied for membership up to April 1, 1914, the total capital stock will be d.0.2,100,364. ; DISTRICT No. 5. The District of Columbia, and the States of Maryland, Virginia, lorth Carolina, South Carolina, and all of 77est Virginia except the counties of Marshall, Ohio, Brooke, and Hancock, with the Federal Reserve bank located in the city of Richmond, Va. This district contains 475 national banks which have accepted the provisions of the Federal Reserve Act. The capital stock of the Federal Reserve Bank of Richmond, on the basis of six per cent of the total capital stock and surplus of the assenting national banks in the district, will amount to .,A,303,301; and if there be added six per cent of the capital stock and surplus of the State banks and trust companies which have applied for membership up to April 1, 1914, the total capital stock will be ,A,542,713. DISTRICT Ho. G. The States of Alabama, Georgia, and Florida; all that part of Tennessee located east of the western boundary of the following counties: Stewart, Houston, -Jayne, Humphreys, and Perry; all that part of Mississippi located south of the northern boundary of the following counties: Issaquena, Sharkey, Yazoo, Kamper, Madison, Leake,and Leshoba; and all of the southeastern part of Louisiana located east of the western boundary of the following parishes: Pointe Joupee, iberville, Assumption, and Terrebonne, with the city of At- , lanta,.Ga., as the location of the Federal Reserve bank. This district contains 372 national banks which have accepted the provisions of the Federal Reserve Act. The capital stock of the Federal Reserve Bank of Atlanta, on the basis of six per cent of the total capital stock and surplus of the assenting national banks in the district, will amount to 04,641,193; and if there be added six per Page A 7 Meeting AUG I 3 1914 _Sec'y. cent of the capital stock and surplus of the State banks and trust companies which have applied ,for membership up to April 1, 1914, the total capital stock will be :::4,702,558. DISTRICT No. 7. The State of Iowa; all that part of 7Isconsin located south of the northern boundary of the following counties: Vernon, Sauk, Columbia, Dodge, Washington, and Ozaukee; all of the southern peninsula of Mohican, VIZ, that part east of Take Mohican; all that part of Illinois located north of a line forming the southern boundary of the following counties: Hancock, Schuyler, Cass, Sangamon, Christian, Shelby, Cumberland, and Clark; and all that part of Indiana nofth of a line forming the southern boundary of the following counties: !Igo, Clay, Owen, Monroe, Braun, Bartholomew, Jennings, Ripley, and Ohio, with the Federal Reserve bank located in the city of Chicago, Ill. This district contains 952 national banks which have accepted the provisions of the Federal Reserve Act. The capital stock of the Federal Reserve Bank of Chicago, on the basisof six per cent of the total capital stock and surplus of the assenting national banks in the district, will amount to %;;12,479,876; and if there be added slx per cent of the capital stock and surplus of the State banks and trust companies which have applied for member, 111.11) up to Arril 1, 1914, the total capital stock will be . ,;12,967,701.DISTRICT No. 8. The State of Arkansas; all that part of Missouri located east of the western boundary of the following counties: Harrison, Daviess, Caldwell, Ray, Lafayette, Johnson, Henry, St. Clair, Cedar, Dade, Lawrence, and Barry; all that part of Illinois not included in district trict No. 7; all that part of Indiana not included in district No. 7; all that part of Kentucky not included in district No. 4; all that part of Tennessee not included in district No. 6; and all that part of Mississippi, 171,ot included in district No. 6, with the city of St. Louis, -10., as the location of the Federal Reserve bank. Page__8___Meeting AUG 1 3 1914 • __Sec'y. This district contains 458 national banks which have accepted the provisions of the Federal Reserve Act. The capital stock of the Federal Reserve Bank of St. Louis, on the basis of six per cent of the total capital stock and surplus of the asse.ltini; national ban-_-:s in the district, will amount to t)4,990,761; and if there be per cent of the capital stock and sur-21us of added banks and trust companies which have applied the State for 2:-.embershil) up to April 1, 1914, the total capital stock Jill be )6,367,006. DIST2,UT No. 9. The States of ::ontana, :orth Dakota, South Dakota, Lannesota; all that part of 7isconsin not included in district Z - o. 7, and all that part of :Ichican not included in district 1.o. 7, with the city of :an,leapolis, as the location of the Federal Reserve bank. This district contains 687 national banks, which have accepted the provisions of the Federal Reserve Act. The capital stock of the Federal Reserve Bank of ilinneapolis, on the basis of six per cent of the total capital stock and surplus of the assenting national banks in the district, will amount to .)4,702,925. DISTRICT No. 10. The States of Kansas, Nebraska, Colorado, and 71'yoLaing.; all that part of Llissouri not included in district :To. 8; all that part of Oklahoma north of a line forming the southern boundary of the following counties: 311is, Dewey, Blaine, Canadian, Cleveland, Pottawatomie, Seminole, Okfuskee, ThInbosh, L:uskocee, and Sequoyah; and all that part of 2ew Llexico north of a line forming the southern boundary of the following counties: licKinley, and Union, with the city Sandoval, Santa Fe, San of Kansas City, ITO., as the location of the Federal Reserve bank. This district contains 636 national banks which have accented the provisions of tile Federal Reserve Act. The capital stock of the Federal Reserve Bank of Kansas City, on the basis of six per ce.-46 of the tot-,.1 capital stock Page_ 9 AUG i 3 191-. Meetin 050, ; __Sec'y. 10 and surplus of the assenting national banks in the district, will amount to (,)5,590,015; and if there be added six per cent of the capital stock and surplus of the State banks and trust companies which have applied for membership up to April 1, 1914, the total capital stock will be i5,600,977. DISTRICT No. 11. The State of Texas; all that part of Naa i:exico not included in district :To. 10; all that part of Oklahoma not included in district No. 10; all that part of Louisaina not included in district No. 6; and the following counties in the State of Arizona: Pima, Graham, Greenlee, Gochise, and Santa Cruz, with the city of Dallas, Tex., as the location of the Federal Reserve bank. This district contains 731 national banks which have accepted the provisions of the Federal Reserve Act. The capital stock of the Federal Reserve Bank of Dallas, on the basis of six per cent of the total capital stock and surplus of the assenting national banks in the district, will amount to 5,54O,020; and if there be added six per cent of the capital stock and surplus of the State banks and trust companies which have applied for membership up to April T, 1914, the total capital stock will be 15,653,924. DISTRICT No. 12. The States of California, Washington, Oregon, Idaho, Nevada, and Utah, and all that part of Arizona not included in diztrict No. 11, with the city of San Francisco, Cal., as the location of the Federal Reserve bank. This district contains 514 national banks which have accepted the provisions of the Federal Reserve Act. The capital stock of the Federal .leserve Bank of San Francisco, on the basis of six Per Scent of the total capital stock surplus of the assenting national banks in the district, will amount to (7,625,375; and if there be added six per cent of the capital stock and surplus of the State banks and trust companies which have applied for membership up to APril 1, 1914, the total capita l stock will be r8,115,494. Page 1 0 Meetin AUG 1 3 1914 _Sec' y. The committee was impressed with the growth and development of the States of Idaho, 7ashington, and Oregon, but on the basis of six per cent of the capital stock and surplus of national banks and State banks, and trust companies which have applied for membership, that section could not provide the c4,000,000 minimum capital stock required by the lav. 7ath the continued growth of that region it is reasonable to expect that in a few years the capital and surplus of its member banks will be sufficient to justify the creation of an additional Federal Reserve district, at which time application may be made to the Congress for a grant of the necessary authorityi It is no part of the duty of the orgaftization committee to locate branches of the Federal Reserve banks. The law specifically provides that "each Federal Reserve bank shall establish branch banks within the Federal Reserve district in which it is located." All the material collected by the committee will be placed at the disposal of the Federal Reserve banks and the Federal Reserve Board when they are organized and ready to consider the establishment of branch banks. Reference is made to the Liap of the Districts and to tables A, B, C, D, E, and F hereto attached. 7. G. Llan00, D. F. HOUSTON, =LT= 7ILLIALIB, Reserve Bank Organization Committee. Washington, D. C., April 2, 1914. Page___t_t__.Meeting_ _AUG 1 3 1914 _Sec'y. 12 On April 10, 1914, The Federal Reserve Bank Organization Committee made public the following statement relating to its decision of April 2, 1914, defining the Boundaries of the Federal reserve districts and designating the location of the Federal reserve banks. Washington, D. C. April 10, 1914. . Congress imposed on the committee the duty of dividing the country into not less than El nor more than 12 districts, and the location of a Federal reserve bank in each. Thirty-seven cities asked to be chosen. The committee could select at most only 12. Necessarily 25 cities had to be disappointed. Pollaaing its policy declared at the very outset, the committee refused to be influenced by the purely local and selfish claims of cities or individuals, and discharged the duty imposed upon it by Congress after exhaustive investigation and study of the entire country, with unbiased minds and according to its best Judgment. With so many conflicting claiLs, somebody had to judge. Congress constituted the committee a court and gave the Federal Reserve Board the power of review. Disappointed competitors should seek a remedy through the orderly Processes the law prescribes. .Considerable comment has been occasioned by the failure of the committee to create districts suggested by hew Orleans, with -Jew Orleans as the location for a reserve bank; by Baltimore, with Baltimore as the location for a reserve bank; by Omaha, with Omaha as the location for a reserve bank; and by Denver, with Denver as the location for a reserve bank. The committee realized that the division of the country into districts was far more important and complex than the designation of the reserve cities, and that tile latter duty was subsidiary and relatively simple, valving considerations of local pride or prestige. In arranging the districts the 'consideration of the character and growth of industry, trade, and banking, no Page 12 Meeting AUG 1 3 1914 _Secisr. 13 less than the traditions, habits, and common understandings of the people was much more intimately involved. It became clear, in the hearings, that comparatively few people realized, or seemed to realize, what the act was intended to accomplish; wnat the nature and functions of the reserve banks were to be; and how little change would occur in the ordinary financial relations of the communities, the business establishments, and the individual banks. - Critics of the decision of the committee reveal misunderstanding in these directions, and either do not .knaa, or appear not to know, that the Federal reserve banks are bankers' banks and not ordinary commercial banks; that they are to hold the reserves and to clear the checks of member banks, make rediscounts for them, and engage in certain open-market operations. As a matter of fact, the ordinary every-day banking relations of tne commnity, of business men, and of banks will not be greatly modified or altered. The purpose of the system is to remove artificiality, promote normal relations, and create better conditions under which everybody will transact business. Every city can continue to do business with individuals, firms, or corporations, within its own limits, or in its own region, or in any other part of the Union or the world in which it has heretofore done business. Reserves are to be held in a new way and in new plans, so far as this act controls them, but banking and business generally will no more be confined within districts than heretofore, and it is simray misleading for any city or individual to represent that the future of a city will be injuriously affected by reason of its failure to secure a Federal reserve bank. Every city which has the foundations for prosperity and progress will continue to grow and expand, whether it has such a reserve bank or not, and well-informed bankers, especially, are aware of this. The facts which the committee had to consider will throw light on its decision in reference to these cities. Page 13 Meeting AUG 1 3 1914 14 NETV ORLEANS' CLAMS. New Orleans selected a district extending from New Mexico to the Atlantic Ocean, including all of Texas, Louisiana, Mississippi, Alabama, Florida, Georgia, and that part of Tennessee south of the Tennessee River. . It was represented by Texas that it would do great violence to her trade to connect her with New Orleans. It was claimed, and evidence was submitted in sur,ort of tae claim, that her trade was with her own cities or With Kansas City and St. Louis. In a roll of the banks of Texas made by the Comptroller of the Currency, 212 banks expressed a first choice, 121 a second choice, and 30 a third choice for Dallas. No bank in Texas exrressed a first choice for New Orleans, only 4 a second choice, and 44 a third choice. The whole State protested against being related to New Orleans. The banks of Alabama generally desired to be connected either with Birmingham or Atlanta, only three exPressing a first choice for raa Orleans. The banks of Georgia desired to be connected with Atlanta, none expressine; a first or second choice for New Orleans, and 0 ,1ly 12 a third choice. They represented that it would ao violence to them to be connected with a city to the west and claimed that their relations were mainly with ttianta or cities to the northeast. Of 44 banks in Florida 19 gave Atlanta as their first choice, 19 as their second choice, and 5 as their third choice. Only 5 expressed a first preference for New Orleans, and these Jere in the western corner, 4 a second choice, and 3 a third choice. No bank in Tennessee expressed a first or second choice for New Orleans, and only 2 a third choice, ahile 7 expressed a first choice for Atlanta, 14 a second choice, and 13 a third choice. Generally speaking, the only banks which desired to be connected with New, Orleans and. expressed a first preference for her were 25 of the oanks reporting in Louisiana, and 19 of the 32 in 13s1Ppi. On a Doll made from the com_troller's office of all banks expressing their preference as to the location for a Federal reserve city, 124 expressed a first preferonce for Atlanta, 232 for Dallas, and only 52 for New Or- Page " Meetin AUG 13 1914 Sec' y. 15 leans. The views of the bankers were supported by chambers of commerce, other business organizations, and by many business men. It will thus be seen that if the committee was to weight to the views of business men and bankers in give section of the country affected, to consider the the opposition of the States of Tenms, Alabama, Georgia, Plorida, and Tennessee, and to be guided by economic considerations, it could not have designated New Orleans as the location for a reserve bank to serve either the western or the eastern part of the district that city asked for. The course of business is not from the Atlantic seaboard toward New Orleans, nor largely from the State of Texas to that city, and if Dallas and Atlanta had been related to New Orleans a better grounded complaint could and would. have been lodged by them against the committee's decision than that made by iTW Orleans. ;•I Some of the banking statistics which the committee had to consider throw light on the problem. It should be borne in mind that the committee could consider primarily only the statistics with reference to assenting banks. In this section of the country, as in most others, the assenting banks were the national banks. In 1:arch, 1914, the capital stock and surplus, loans and discounts, and individual deposits of the national banks in the three cities named, as shown by the sworn reports to the CoLlptroller of the Currency, were as follows: :Capital and : Loans and : Individual : surplus. : discounts. : deposits. Atlanta • )3,600,000 : Dallas... 5,900,000 : New Orleans....: 6,730,000 : 26,038,000 : ,)24,340,000 18,622,000 : 16,551,000 17,265,000 : 16,857,000 Even more significant are the statistics of growth from September, 1904, to Larch, 1914. All; 1 3 1914 11111.M.0.111111a _Sec'y. 16 .CAPITAL An SURPLUS. : Percentage September, : . Larch,1914. increase. 1904. : Atlanta Dallas New. Orleans..: 256 120 2,410,000 : ,8,600,000 : 5,900,000 : 2,676,000 : 6,730,000 : 6,250,000 : 8 LOANS AND DISCOUNTS. 152 Atlanta.. - „,;10,329,000 : .;;26,038,000 : 143 Dallas 7,653,000 : 16,622,000 : • New Orleans..: 20,088,000 : 17,285,000 : Decrease 13 INDIVIDUAL Atlanta • Dallas • New Orleans..: DEPOSITS. 145 ,9,931,000 : .1424,348,000 : 159 7,157,000 : 10,551,000 : 13 Decrease 19,425,000 : 16,857,000 : The loans and discounts in the national banks of Lew Orleans at the time of the report, 'Larch 4, 1914, were less than those of the national banks of either Atlanta or Dallas. While the committee could not figure on the resources of other than assenting banks which are in this section, the national banks, the following statistics of all reporting banks, including national banks, State ban, and trust companies, as of June 4, 1913, were recarded as significant and were given consideration: Atlanta reported capital stock and surplus :,)15,313,7 000, or ;;98'per capita; Dallas c?9,997,000, or )1.0(3 per capita; and New Orleans ,,;>20,532,000, or :;60 per capita. Individual deposits, per capita, Atlanta, ,103; Dallas, AUG 1 3 1914 _Seey. 17 4:269; 17017 .1111 .1, Orleans,209. The loans and discounts for all reporting banks for the three cities were as follows: Atlanta, 33,494,000, or'.:216 per capita; Dallas, f27,517,000, or 299 p61. capita; New Orleans, ;A4,845,000, or fl.94 per capita.. The committee found that the total loans and discounts made by national banks in the cities, named in the 13 Southern States on January 13, 1914, were as follows: Atlanta Dallas New Orleans )2G,117,000 19,123,000 19,477,000 while the total loans made by the national banks of _Dallas throughout the entire United States on the date mentioned exceeded the loans made by the national banks of New Orleans. • Special reports, made under oath to the Comptroller of the Currency also show that on February 14, 1914, the credit balances of the banks and trust companies in the 13 Southern States with the national banks of Dallas exceeded in amount the credit balances of all banks and trust comDanies in these same States with the national banks of New Orleans. In view of the comparisons and criticisms from rev Orleans in connection with the designation of Dallas, Atlanta, and Richmond, and the omission of New Orleans and, Baltimore, the following table is instructive: (See opposite page.) Page 1 Meeting AUG 1 3 1914 _Sec'y. MARYLAND, GEORGIA, LOUISIANA NATIONAL RANK STATISTICS FOR STATES OF TEXAS, VIRGINIA, AND LISSISSIPPI AS OF MARCH 4, 1914. cy. (Accordinf, to sworn reports made to the Comptroller of the Curren ••••••11.... : L,rea : (square :miles). State of Texas • (including Dallas) State of Virginia (including Richmond) State of Maryland (including Baltimore)....: State of Georgia • (including Atlanta) State of Louisiana (including New Orleans)..: State of Mississippi : Popula- • 'Capital and . Individual tion, cen-: : deposits. surplus. sus 1910. : ; Loans and discounts. 265,780 : 3,896,542 : 06,785,584 : 0.97,663,338 : 215,114,326 42,450 : 2,061,612 : • 12,210 : 1,295,346 : • 59,475 : 2,609,121 • 48,720 : 1,656,388 : 46,810 : 1,797,114 : 29,732,696 : 90,887,858 : 107,410,063 28,267,420 : 83,217,376 : 91,326 942 24,479,735 : 51,382,061 : 61,852,579 12,128,866 : 5,168,192 : 32,000,521 : 17,045,324 : 34,804,354 13,669,200 19 • From tie above statement it will be seen that in each item, dapital and surplus; individual deposits, and loans and discounts, the'natinal banks of Virginia, including 'lichmond, largely surpass the national banks of Maryland, including Baltimore. The capital and surplus of the national banks of the State of Virginia are GO pr cent grater than the capital and surplus of the national banks of the States of Louisiana and lassissippi combined, including the city of Kew Orleans, while the loans and discounts by the national banks of Virginia are more than three times as great as the loans and discounts in the national banks of Louisiana, including New Orleans.. or Mile the capital and surplus the national banks of Georgia largely exceod the combined capital and surplus of the national banks of the States of both Lississippi and Louisiana, the loan and diOcounts made by the National banks of Georgia exceed by ,;1.3,000,000 the loans and discounts of all the national banks of Louisiana and Lississippi combined, including the pity of ram Orleans. The caPital and surplus of the .lational banks of Texas amount to four times as much ae the capital and surplus of the national banks of the States of Louisiana and Mssissippi combined, and the individual deposits in the national banks of Texas also amont to about four times as much as the individual depo'sits of all national banks in LoUisiana and iassissippi, the only States from which row Orleans received as much aps half a dozen votes as first choice for the location foil a Federal reserve bank. KAN= CITY DISTRICT. The region in the middle and far West presented problems of difficulty. Careful consideration was given to the claims of Omaha, Lincoln, Denver, alLI Kansas City, which conflicted in this region. :Denver asked for a district which included Idaho, Montana, Utah,' Tyoming, Colorado, Nov Daxico, and the eastern two-:thirds of Arizona and Texas, , -:ansas and rebraska west ofitne onenhundrodth meridian, and Page 1 9 .Meeting--'UG 13 1914 __Sec'y. 20 the Deadwood portion of South Dakota. The district gave approximately the minimum capital provided by law. Of the territory included in this district Montana unanimously requested to be connected with Minneapolis or Chicago, saying that she had little or no trade relations with Denver. Idaho desired to go to Portland or San Francisco; Arizona preferred San Francisco, and the greater part of rew Mexico asked for Kansas City. Western Texas, Kansas, and rebraska unanimously protested against going to Denver. Kansas desired Kansas City; rebraska preferred Omaha or Lincoln; and Texas wanted either a Texas city or Kansas City or St. Louis. In the poll of banks, Denver received 136 first-choice votes, of which 112 were from Colorado and 12 from Wyoming. With Montana, Idaho, Arizona, Texas, Kansas, and rebraska in opposition, it was clearly iLnossible to make a district with Denver as the location of a bank. Part of the territory asked to be assigned to San Francisco and the other Part to Lanneapolis or *Kansas City. Omaha asked for a district embracing western Iowa, all Of Uebraska, part of South Dakota, part of Kansas, Colorado, Utah, Wyoming, Idaho, and Montana. All but eight of the banks in South Dakota insisted upon being connected with lanneapolis; Iowa desired to go to Chicago; Kansas practically unanimously voted for Kansas City; Montana protested against any other connection than Minneapolis or Chicago. The preferences of the other States have already been indicated. Of the 216 banks which expressed a first preference for or:10.11a, 161 were from rebraska. The committee had to consider the State of Oklahoma and part of Nissouri in connection with this region, and in district ro. 10, 497 ball;cs expressed a first preference for Kansas City; western 1-15souri, Oklahoma, and Kansas, and part of Mow especially asked for this connection. Thirty-seven banks in Colorado gave Kansas City as second choice and 26 gave Omaha. It seemed imnossible to serve the great section from lansas City to the mountains in any other way than by creating a district with Kansas City as the headquarters, or to Page AUG 1 3 1914 2 0 .Meeting _ _ 11011W11101.111101104•••• _Sec' y. 21 provide for the northwestern section 'except by creating a district with Einneapolis as headquarters. The only other thing that could have bcen done with rebraska under the conditions which presented themselves was to relate her to Chicago, and this seemed to be inadvisable in the circumstances. The Kansas City banks serve a very distinctive territory and will serve it more satisfactorily than St. Louis could have done. The relations of that territory on the whole are much more largely with Kansas City than with any other city in the :addle Uest with which it could have been connected. It will, of course, be recognized by those who are. informed that of the four cities Kansas City is the most dominant banking and business center. The following statistics as of :arch, 1914, will throw light on the situation: :.Capital and : : surplus. : Kansas City Omaha Denver Lincoln • • .4;11,660,000 : 6,570,000 : 7,545,000 : 1,330,000 : Loans and : Individual discounts. : deposits. 366,205,000 : A0,415,000 32,848,000 : 27,250,000 28,022,000 : 34,124,000 .6,066,000 : 4,439,000 The statistics of growth during the nine years from September, 1904, to•March, 1914, are significant. CAPITAL : Kansas City Omaha Denver Lincoln • • AZD SURPLUS. September, : : Percentage 1904.. : Larch, 1914.: of increase. 33,900,000 : v11,660,000 : 3,080,000 : 6,570,000 : 3,325,003 : 7,545,000 : 760,000 : 1,330,000 : Page.. 21 Meeting AUG 13 1914 _Sec' y. 199 69 127 73 22 LOA:CM AND DISCOUITTS. ------------------------------------------------------- 'Aansas City Omaha Denver Lincoln. 36 102 98 58 • 335,590,000 : 366,205,000 : 32,040,000 : • 16,218,000 : 28,022,000 : - 14,146,000 : 6,066,000 : 3,820,000 • • ------------------------------------------------------- INDIVIDUAL DEPOSITS. ------------------------------------------------------- 1,a,13a3 City Omaha Denver.--.-Lincoln - 31 73 22 35 330,730,000 • 340 415,000 : 27,258,000 : 15,728,000 : 34,124,000 : 27,798,000 : 4,439,000 : 3 203 000 : ----------------------------------------------------- The loans and discounts of all reporting banks and, trili,t companies in Kansas City on June 4, 1913, amounted to g91,686,000, exceeding by about 37,000,000 the total loans and discounts of all banks and trust companies in the cities of Omaha, Denver, and Lincoln combined. The loans and discounts of the national banks alone in Kansas City also exceeded the sum total of the loans and discounts of all national banks in the cities of Omaha and Denver combined. . The great preponderance in the movement of trade in district No. 10 is to the east. In order to place the Pederal reserve bank for that region in Denver it would have been necessary to disregard these facts and the oPpesition and earnest protests of banks, both national and State, throughout the district. THE RI=OND DISTRICT. The committee named as cities for the location of Federal reserve banks New York, Chicago, Philadelphia, St. Louis, Boston, and Cleveland. In population these ailatho six lar-ost cities in the United States; their Page_ 22 Meeting_ AUG--1 1..914 ec'y. 23 g9ographica1 situation and all other considerations fully justified their selection. San Francisco and :Anneapolis were the first choice of the great majority of the national banks in their res-oective sections, and their financial, industrial, and commercial relations and othr factors entitled them to be chosen. Their selection appears to'have evoked no criticism, but to have received general approval. Conditions relating to the Kansas City, Dallas, and Atlanta 'districts have been dealt with. For be territory from eastern Georgia to the Pennsylvania line, the committee, after fully considering all the facts, decided to create a district with the Federal reserve bank at Richmond. South Carolina and :Torth Carolina had protested against being conected with a bank to the south or west. They said that their course of trade was northeast. It seemed undesirable to place a bank in the extre.e northeastern corner or at Baltimore, not only because of its proximity to Philadelphia, but also becduse the industrial and banking relations of the greater part of the district were more intimate with Richmond than with either Thshingt.on or -altimoro. The States of Laryland, Virginia, 7;est iirginia, Jorth and South Carolina, and the District of Columbia had to be considered. llorth Carolina, South Carolina, and Virginia preferred to be connected with Richmond. West Virginia was divided in its 1-)references; :::aryland and the District of Columbia, of course, desired Baltimore or Washington. In the -poll of banks made directly by the comptroller's office, Richmond. received more first-choice ballots than any other city in the district - 167 against 128 for Baltimore, 35 for Pittsburgh, 20 for Columbia, 3. C., 37 for Cincinnati, and 25 for 7/ashington, D. C. Of the remaining 21 votes, 19 were for Charlotte, 1. C. and 2 for :Jew York. Leaving out the 3tates of I.:aryland and Virginia, Richmond received from the rest of the district three times as many first-choice votes as were cast for Baltimore. District No. 5 is composed of the States of :_aryland, :irginia, West Virginia (except four counties), North and South Carolina, and the District of Columbia. These 3tates Page 23 Meeting AUG 1 3 1914 _Sec'y. 24 haye always been closely bound toother commercially and financially and their business deali.lgs are large and intinate. The reports made to the Comptroller of the Currency on ::arch a, 1914, by all the national banks in each of these States show in every essential respect that the business of the national banks of Virginia, including Richmond, is greater than the business of the national sanks of Maryland., including Baltimore, or any other of the five Stats embraced in district Mo. 5 as appears in the following table: : Capital,sur-: • plus, and • 00 undivided 0 profits. • Vircirda. L'aryland 7rest Virginia liorth Carolina South Carolina D!!!:!n _ Loans and discounts. Total individual deposits. • .)33,544,631 : 407,410,063 : .„;90,887,858 91,326,942 : 83,217,376 31,390,057 : 56,789,538 : 61,421,332 18,209,346 : 13,527,086 : - 44,051,033 : 36,051,154 28,860,456 :- 23,330,916 10,332,439 : 26,253,432 : 29,520,053 : o_f_ _!!!,_2!!!12,685,411 Advocates of Mew Orleans have criticized the decision of the organisation committee and have given out comparative fiZxren as to :Jew Orleans, Richmond, and other cities which are incorrect and misleading. An analysis and study of the actual figures will be found instructive and can lend no suPDort to the claims of Mew Orleans. From the Taorn special reoorts recently submitted to the Comptroller of the Currency, it appears that the national banks in Richmond were lending in the 13 Southern States, on January 13, 1914, more money than was being loaned in those States by the national banks of any other city in the country °zsept Mew York. The total loans and discounts in the 13 Southern States by the four cities referred to are as follows: Richmond Baltimore Mew Orleans Washington )33,473,000 6,091,000 19,477,000 915,000 AUG 1 3 1914 Page,. 24 •Meeting_ _Sec' y. 25 .The figures also show that in these portions of, district No: 5 outside of the States of Virginia and Liaryland the Richmond national banks are lending twice as much money as all the national banks in Baltimore and Washington combined. They also show that although Richmond is not a reserve city, the banks and trust companies in the 13 Southern States had on deposit in the national banks of Richmond on February 14, 1914, 09,076,000, or slightly more than the banks of this section had on deposit in the city of Baltimore, and four times as much as they carried in Washington, although these two cities have long enjoyed the benefits of being reserve cities. That southern banks should carry larger balances in Richmond, where they could not be counted in their reserves, rather than in Baltimore or Washington, where they could be counted, is su:gestive. The figures show that the capital and surplus of all reporting banks - national, State, and savings, and trust comnanies - per capita, in Riehmond, as of June 4, 1913, was 3131; in Baltimore, 385; in 7ashington, 080; and in ITew Orleans, 360, while the loans and discounts made by all banks and trust companies in Richmond, on the same date, amounted to 3393 per capita, against c190 in 'ashington, 3213 in Baltimore, and94 in New Orleans. The amount of money which banks and trust companies in the various parts of the country carried on deposit with Richmond, a non-reserve city, on 2ebruary 14, 1914, amounted to .4;10,970,000, or nearly twice as much as the balances carried by outside banks with the national banks of Washington, which on the sane day amounted to 35,516,000, and one and one-half times as much as they carried on the same day with the national banks of ITew Orleans, a reserve city. The statistics furnished the organization coramittee show that on Larch 4, 1914, the capital and surplus of the national banks of Richmond, per capita, amounted te more than twice as much as the capital and surplus, per capita, of the national banks of either Page Meetin 1 3 19-14 _Sec's?. 26 Baltimore or Washington, and three and a half times as much as New Orleans, while the individual deposits of the national banks of Richmond amounted to C201 per capita, against .,86 for Washington and C76 for Baltimore and c50 for New Orleans. The loans and discounts In the national banks of Richmond on the same date were reported at Q279 per capita, against C77 for Washington, 0:108 for Baltimore and c;51 for New Orleans. .Especially significant are the following statistics -showing the grpwth in capital and surplus, loans and discounts, and individual deposits of national banks in the four cities named: CANTAL XTD SURPLUJ. . : September, : _ : Percentage roil, 1914. of increase. i : a : 1904. RiehtiOnd ______: 199 3,115,030 : 0,314,000 : Washington _.__ :83 6,21b,000 : 11,365,000 : Baltimore _____: 18,262,000 : 19,205,000 : 5 New Orleans...: 6,250,000 : 6,730,000 : 8 LOANS AIT,D Riclimond W ashington ____: B altimore New Orleans...: c12,946,000 15,018,000 48,755,000 20,088,000 175 : c35,593,000 : 69 : 25,405,000 : 4-,7 4,0 : 60,312,000 : : 17,285,000 : Decrease 13 LIDIVIDUAL DZPOSITS. Richmond 77n •./ "'""InIngtOn - 1,0 -1 • B altimore • -rew Orleans...: 128 20,017,000 : 28,491,000 : 42 4 40,910,000 : 42,553,000 : 19,425,000 : 16,857,000 : Decrease 13 Page_ ___ _ __ _ 3 _ 1914 _-_Sec y. 27 • In other words, the figures show that banks of Richmond were lending on Larch 4, as much money as all the national banks in :Tow Orleans, and 40 per cent more than all banks of Washington. the national 1914, twice the city of the national In the original decision of the committee the various economic and other factors which entered into and determined the committee's action were enumerated and need not be repeated here. This statement is made for the purpose of disclosing some of the details which influenced the Committee's findings. While the hearings above referred to were being held, each national bank was called upon by the Committee to submit to its board of directors alternate resolutions accepting or rejecting the provisions of the Federal Reserve Act, and filing with the Committee within the si::ty days prescribed by the Act, the resolution of its board, signifying its intention in the premises. iractically without exception the national banks signified their intention of becoming members of the system. 77hile ten or twelve non-acceptance. resolutions were receiVed, it was found upon investigation that such banks had determined to go into liquidation prior to the passage of the Act, and in no instance has it been ascertained that any national bank has gone into liquidation on account of the provisions of the Federal deserve 41•C t• Immediately following the filing of the decision of the Committee on April 2d determining the Federal Reserve Districts and the location of the Federal Reserve banks, each bank which had accepted the provisions of the act was called upon to subscribe its proportionate amount of stock in the Federal Reserve bank of its district. These subscriptions were received without undue delay and on I.:ay 5, 1914, more than the minimum amount having been subscribed in each district and the thirty Page_f7 neetiWU ec'y• 28 days allowed for such subscriptions having expired, five 1)anks were designated in each district to execute the organization certificate in accordance with the provisions of the Act. Upon the execution of these certificates the member banks in each district were called upon to elect their district reserve electors and to send in their nominations,for Class A and Class B directors of the various Federal reserve banks. The Federal Reserve Board not naving been organized at that time,the duty devolved upon tne Reserve Bank Organization Committee to act as chairrnan of the Board in the elections of the Class A and Class B directors. These elections were closed on August 1,1914 and the following candidates have been notified of their election: DISTRICT No. 1. Class "A"' Federal Group 1 Group 2 Group 3 Class ."B" Grolin 1 Group 2 Group 3 :DISTRICT No. 2. Class 1120 glass ng” DiqTaicT ro. 3. Class "A" 03,as's "IP1 Federal Group 1 Group 2 Group 3 Reserve Bank of BOSTON. Thomas P. Beal, Boston, Mass. O. G. Sanford, 3ridgeport, Conn. A. H. Heard, Manchester, N. H. Charles A. Morss, Boston, Mass. E. R. Morse, Proctor, Vt. Charles G. 7:ashburn, Worcester, Mass. Reserve Bank of New York. Wdlliam Woodward, Now York, N. Y. Robert H. Treman,.Ithaca, N. Y. Franklin D. Locke, Buffalo, N. Y. Group 1 H. R. Towne, New York, N. Y. Group 2 William B. Thompson, Yonkers, N. Y. .Group 3 Leslie R. Palmer, Croton-on-Hudson, N.Y. Federal Reserve Bank of Philadelphia. Group 1 Charles J. Rhoads, Philadelphia, Pa. Group 2 7. H. Peck, Scrant,on, Pa. Group 3 M. J. Murphy, Scranton, Pa. Group 1 Alba B. Johnson, Philadelphia, Pa. Group 2 Edwin S. Stuart, Philadelphia, Pa. Group 3 George 7% F. Gaunt, Mullica Hill, N.J. Page 28 Meetin AU I 3 1914 • ..:: ec'y. 29 DISTRICT No. 4 Fedoral:Reserve Bank of CLEVELAND. Class Group 1 Robert Wardrop, Pittsburgh, Pa., Group 2 7. S. Rowe, Cincinnati, Ohio. Group 3 S. B. Rankin, South Charleston, Ohio. Class "B" -DISTRICT No. 5 Class "A" Group 1 Thomas A. Combs, Lexington, Ey. Group 2 C. H. Bagley, Corry, Pa. Group 3 A. B. Patrick, Salyerville, Federal Group 1 Group 2 Group 3 Reserve Bank of RICHLIOND. Waldo NeWcoMer, Baltimore, NU. 'John F. Bruton, Wilson, H. C. Edwin .1,Tann, Bluefield, 7. Va. Class "B" Group 1 Group 2 Group 3 DISTRICT No.6 Class "A" Federal Reserve Bank of ATLANTA. • Grotp 1 L. P. Hillyer, Macon, Ga. Group 2 F. 1. Foote, Hattiesburg, Miss. Group 3 W. H. Toole, Winder, Ga. Class "B" Group 1 P. H. Saunders, rew Orleans, La. Group 2 J. A. McCrary, Decatur, Ga. Group 3 7. H. Hartford, -Nashville, Tenn. DISTRICT No. 1 Class "A" Federal Reserve Bank of CHICAGO. Group 1 George M. Reynolds, Chidago, Ill. Group 2 J. B.•Forgan, Chicago, Ill. Group 3 2. L. Johnson, 7aterloo, Iowa. Olass."B" Group 1 Henry B. Joy, Detroit, Mich. Group 2 M. B. Hutchinon, Ottumwa, Iowa. Group 3 A. H. Vogel, Milwaukee, Was. DISTRICT No. 8 Class "A" Federal Reserve Bank of ST. LOUIS. Group 1 Walhnr Hill, St. Louis, :b. Group 2 F. O. Watts, St. Louis, Mb. Group 3 Oscar Fenley,• Louisville, Ky. Class "B" Group 1 Group 2 Group 3 George J. Seay, Richmond, Va. D. L. Coker, Hartsville, S. C. J. F. Oyster, Washington, D. C. Lurray Carlton, St. Louis, 110. W. B. Plunkett, Little Rock, Ark. LeRoy Percy, Greenville, Yiss. Page LLMeetiiig.. 4 G 13 1914 Sec'y. 80 DISTRICT No. Class "A" 9 Federal Reserve Bank of MINNEAPOLIS. Group 1 E. 7. Decker, Minneapolis, Minn. Group 2 L. B. Hanna, Fargo, H. D. Group 3 J. C. Bassett, Aberdeen, S. D. Class "B" Group 1 2. R. Bigelow, St. Paul, Minn. Group 2 2. P. Hixon, LaCrosse, 'is. Group 3 Norman B. Molter, Helena, Mont. DISTRICT No. 10 Class ne 2ederal Reserve Bank. of KA:TJAS CITY. Group 1 Gordon Jones, Donver, Colo. Group 2 7. J. Bailey, Atchison, Kans. Group 3 C. E. Burnham, Norfolk, Nebr. Class "B" Group 1 N. L. McClure, Kansas City, 110. Group 2 T. 0. Byrne, Omaha, Nebr. Group 3 L. A. Wilson, El Reno, Okla. DISTRICT No, 11 Class "A" Federal Reserve Bank of DALLAS. Group 1 Oscar Wells, Houston, Tex. Group 2 E. K. Smith, Shreveport, La. Group 3 B. A. McKinney, Durant, Okla. Class "B" Group 1 Marion Sansom, Fort Worth, Tex. Group 2 Frank Kell, Wichita Falls, Tex. Group 3 J. J. Culbertson, Paris, Tex. DISTRICT iTo. 12 Class 'Yt." Federal Reserve Bank of av FRANCISCO. Group 1 C. K. McIntosh, San Francisco, Cal. Group 2 James K. Lynch, San Francisco, Cal. Group 3 Alden Anderson, Sacramento, Cal. Class nu Group 1 A. B. C. Dohrman, San Francisco, Cal. Group 2 J. A. McGregor, San Francisco, Cal. Group 3 Elmer H. Cox, Madera, Cal. It is necessary in order to copplete the organization of the Several banks, that the Federal Reserve Board shall appoint three Class "C" directors for each ot the Federal reserve banks, and shall designate one of such appointees chairman and one vice-chairman of each board. It is assumed that the boards composed of the Class A and Class B directors already elected Page 3 o Meeting AUG 1 3 1914 _Sec' y. ai and the Class 3 directors to be aopointed by the Federal '2,eserve Beard, will then take charge of and complete he details of the organization of each of the Federal reserve banks by the adoption of the necessary by-laws; the selection of their officers and encloyees; by procuring the necessary quarters for conductilg the business of the various banks and by taking such other action as may be necessary to fully equip and establish such banks. The Committee has received from time to time a number of inquiries relative to questions of operation ' rather than the organization of the Federal reserve banks. These and other matters coming peculiarly within the province of the Board, will be submitted at the Board's pleasure, it being assumed that it is not desired to have them included in this preliminary report. Reference is made to the very complete detailed report of the subcommittee in :Tua York, which has heretofore been filed in -orinted form with each member of the Board. This reoort which was prepared under the direct supervision of Dr. H. Parker illis, as Chairman of the Subcommittee embodies a number of valuable suggestions and forms for the Board's consideration. The Committee will from tile to time make further report of natters which should be properly submitted to the Board and will make its final report when t_e Secretary of the Treasury has officially announced, in accordance with the terms of the Act, the establishment of the various Federal Reserve banks, and the functions of the Committee have been fully performed. On notion duly made and seconded the preliminary report of the Organization Committee was received and ordered 0-ore:A upon the minutes of this meeting. By direction of the Chairman the Secretary Page 31 Meet'el AUG 1 3 1914 32 then read the following list of protests or tentative notices of appeal from the decision of the Organization Committee, which protests or notices were filed with the Organization Committee or with the Federal Reserve Board prior to this meeting. PROTESTS FEDERAL RESERVE DISTRICTS AS DEFINED BY ORGANIZATION GOLI:ITTEE. RE Letters from several national banks in Connecticut requesting that that State be included in the Nam York district. Letter from Hon. T. J. Bryan requesting that I]brCan County, Illinois, be transferred to the Chicago district. Resolutions of mass meeting of citizens, transmitted byT'a - jor of 'Taw Orleans, protesting against omission of .Liew Orleans as a Federal Reserve City. Letters of counsel representing the Regional Reserve Bank Committee of Baltimore and others protesting against 7d,ec0n designating Richmond instead of Baltimore as -ederal Reserve City. Petition signed by 162 bankers and business men asking that the Upper Peninsula of :ichigan be included in Reserve district No. 7. Letters from Qmaha bankers and others in State of N?oraska requesting that they be included in the Chicago district instead of Kansas City. . Petitions and letters from New Jersey bankers protesting against being placed in the Philadelphia district. Page 32 Meeti AUG 1 3 1914 33 Protests from bankers in southern part of Oklahoma against being assigned to the Dallas district instead of Kansas City. Petitions and letters from bankers of western part of Pennsylvania protesting against being placed in the .Cleveland district. Letters from West Virginia bankers protesting against being placed in the Richmond district. Protests from banks in northern part of Wisconsin re being assigned to :anneapolis district. Lr. Hamlin reported that representatives from Baltimore had notified him that the attorney for the Baltimore Committee desired to have a two-hour oral -heari.:10 on the subject of the appeal of Baltimore from • the decision of the Organization Committee, and to be permitted to file written briefs. After a general discussion it was determined to be the sense of the meeting that oral hearings should be granted in those cases where notice had been served either on the Organization Committee or the Federal :Leserve Board prior to this meeting; but that all oral • arguments should be limited to two hours to each side. On notion duly made and seconded the Secretary i!tas instructed to prepare a tentative plan of procedure, such plan to be in accordance with the sentiment expressed Page 33 Meetin AUG 1 3 1914 'y 34 at this meeting and to be submitted for the future conlsideration of the Board. Communications were read urging the Board to defer the final organization of Federal Reserve Banks. After a general discussion on this subject the chairman reouested all the members of the Board to give it full consideration and report their conclusions at the next meeting. The following telegram from Chicago, Illinois, was read and considered: The Honorable 'William C.. LICAdoo, Secretary of the Treasury and Chairman of the Federal Reserve Board, Washington, D. C. Please accept our congratulations upon completing the organization of the Federal Reserve Board, the Personnel of which merits the highest degree of confidence by the business interests of the nation. Eindly extend to each member of the Board our best wishes and express the hope that the labor required during the formative period of the new system may not only meet with the general approval the patriotic service deserves, but will be accompanied by some personal pleasure. -7e look forward to the pleasure of having each member of the Reserve Bank Organization Committee and the Federal Reserve Board in Chicago September first with the directors of the Federal Reserve Banks and delegates from Bankers and Commercial Associations from all parts of the country to participate in the Page 34 *.lieetin AUG 1 3 1914 35 gational celebration of the establishment of Federal Reserve banks in the United States. 'le believe the conference of all those charged with the responsibility of putting the new Act into operation which will follow the celebration will be of great value at this time. JA::ES B. FORGAN, President the First National Bank of Chicago. GEORGE Li. REYNOLDS, Pres. Continental & Commercial Nat'l. Bank of Chicago. ORSON snITH, Pres. The Lerchants Loan & Trust Company. ERNEST A. HAiaL, President Corn Exchange National Bank. JOHN J. LITCHELL, President Illinois Trust and Savings Bank. . T. FENTON, Vice-Pros. The Nat'l. Bank of the Republic of Chicago. )1VID R. PORGAN, President The National City Bank of Chicago. A. TILDEN, President, Fort Dearborn National sank. SOLOI:ON A. 5:ITH, President the Northern Trust Company. CHARLES G. Dik7ES, President Central Trust Company of Illinois. ALBMT 7. HARRIS, President Harris Trust and Savings Bank L. A. GODIARD, President State Bank of Chicago. OSCAR G. FOREUIN, Vice-Pres. Foreman Brothers Banking Company. C. S. CASTLE, President Standard Trust and Savings Bank. O. H. BOSWQRTH, President Peoples Trust and Savings Bank. F. H. RAWSON, President Union Trust Company, Page__U.)Meeting_ 1G 1 3 1914 ,=_Sec'y. 36 After a general discussion the seen:tory was directed to coniranicate with the Illinois Bankers Association for the purpose of ascertaining whether or not the celebration arranged for SeritemJer lot can be postponed for thirty or sixty days, and to report the result of his inquiry to a future pleeting. Invitations to attend the Hebraska state Bankers Association and the American Bankers Association were road and discussed. -Thile the '-eneral eonof the meeting was adverse to accepting on behalf of the Board any invititations to bankers associations, no official action was taken. On motion made and seconded :a'. ',:arburg and Harding were appointed a committee of two to prepare and submit to a future :.eeting of the Board a :Preliminary definition of commercial -paper eligible for rediscount u..-ider section 13 of the Federal Reserve Act. Hr. ','arburg, Hr. Harding, Hr. killer, Hr. Delano, and Hamlin were afointed a committee of five to pre- Pare a tentative -''orm of by-laws 7overninc the conduct of. the Board's affairs and to submit same at a future meeting Page 36 Meetin AUG 1 3 1914 of the Board. The following telegram from the morning and evening edition of the GER= MROLD, row York, was read. and discussed, but no official action was taken thereon. Eonorable WIlliam G. LeAdoo, Secretary of the Treasury, 71ashington, D. C. Before you do anything to facilitate the release of gold for the bank of England or for any other foreign concern we would respectfully rectuest to be heard in opposition thereto. The English have a noratorium and pay no debts; why should the Americans pay their debts at present and why should we deplete the stock of gold in this country? Just as soon as it becomes known that the 2oderal Reserve Board intends to reduce the metal requirements for the Reserve you will find that everybody begins to hoard gold and a gold premium will be the consequence. GIRMAN HEROLD Morning and Evening Edition. A letter from the Citi7.ens 'Central 1Tational Bank of Itew York with references to foreign exchange was read and referred to the secretary for reply. The following resolution was offered, seconded, and duly adopted: Mesolved: That it is the sense of the Federal Reserve Board that the Comptroller of the Currency is fully justified in permitting national banks to go below reserve requirements in their endeavor to meet Page 3 7 Meetin AU 1 3 1914 _Sec' y. 38 present eztraordinary conditions." On motion the meeting adjourned to meet again at three o'clock p. m., on August 17th. Secretary pro tem. APPROVED: Chairman. A4 e ing_ AUG Lu9,11..... ...Sec' y.
@FedFRASER