Skip to main content

Full text of "Decision of the reserve bank organization committee determining the federal reserve districts and the location of federal reserve banks"

See other formats


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



APRIL 2, 1914 



WITH STATEMENT OF THE COMMITTEE 
IN RELATION THERETO 

/ 

, APRIL 10, 1914 



( 



WASHINGTON 
GOVERNMENT PRINTING OFFICE 
191 t 



Digitized by the Internet Archive 
in 2015 



https://archive.org/details/decisionofreservOOunit 



DECISION OF THE RESERVE BANK ORGANIZATION COMMIT- 
TEE 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 conti- 
nental United States, excluding Alaska, into districts, each district 
to contain only one of such Federal reserve cities/' and to apportion 
the districts "with due regard to the convenience and customary 
coiirse 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 Atlan- 
tic to the Pacific and from the Great Lakes to the Gulf, and was ma- 
terially assisted thereby in determining the districts and the reserve 
cities. 

Every reasonable opportunity has been afforded applicant cities to 
furnish evidence to support their claims as locations for Federal 
Reserve banks. 

More than 200 cities, through their clearing-house associations, 
chambers of commerce, and other representatives, were heard. Of 
these, thirty-seven cities asked to be designated as the headquarters 
of a Federal Reserve bank. 

The majority of the organization. committee, including its chairman 
and the Secretary of Agriculture, were present at all hearings, and 
stenographic reports of the proceedings were made for more deliberate 
consideration. Independent investigations were, in addition, made 
through the Treasury Department, and the preference of each bank 
as to the location of the Federal Reserve bank with which it desired 
to be connected was ascertained by an independent card ballot 
addressed to each of the 7,471 national banks throughout the coun- 
try which had formally assented to the provisions of the Federal 
reserve act. 

Among the many factors which governed the committee in deter- 
mining the respective districts and the selection of the cities which 
have been chosen were : 

First. The ability of the member banks within the district to pro- 
vide the minimum capital of $4,000,000 required for the Federal 

3 



4 DECISION OF KESEKVE BANK ORGANIZATION COMMITTEE, 



Reserve bank, on the basis of six per cent of the capital stock and 
surplus of member banks within the district. 

Second. The mercantile, industrial, and financial connections 
existing in each district and the relations between the various por- 
tions of the district and the city selected for the location of the 
Federal Reserve bank. 

Third. The probable ability of the Federal Reserve bank in each 
district, after organization and after the provisions of the Federal 
Reserve Act shall have gone into effect, to meet the legitimate demands 
of business, whether normal or abnormal, in accordance with the 
spirit and provisions of the Federal Reserve Act. 

Fourth. The fair and equitable division of the available capital 
for the Federal Reserve banks among the districts created. 

Fifth. The general geographical situation of the district, trans- 
portation lines, and the facilities for speedy communication between 
the Federal Reserve bank and all portions of the district. 

Sixth. The population, area, and prevalent business activities of 
the district, whether agricultural, manufacturing, mining, or com- 
mercial, 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 aiTected. 

The twelve Districts and the twelve Cities selected for the location 
of the Federal Reserve banks are as follows: 

DISTRICT No. 1. 

The New England States: Maine, New Hampshire, Vermont, Massachusetts, 
Rhode Ishmd, and Connecticut, with the city of Boston as the location of 
the Federal Reserve bank. 

This district contains 445 national banks which have accepted the 
provisions of the Federal Reserve Act. The capital stock of the 
Federal Reserve Bank of Boston, on the basis of six per cent of the 
total capital stock and surplus of the assenting national banks iti 
the district, will amount to $9,924,543. ~ - 

DISTRICT No. 2. 

The State of New York, with New York City as the location of the Federal 

Reserve bank. , . 

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



DECISIOlSr OF RESERVE BANK OEGAJS^IZATION COMMITTEE. 5 



district, will amount to $20,621,606; 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 wdl be $20,6.87,606. 

DISTRICT 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: McKean, 
Elk, Clearfield, Cambria, and Bedford, with the Federal Reserve bank in 
the city of Philadelphia. 

This district contains 757 national banks which have accepted the 
provisions of the Federal Reserve Act. The capital stock of the 
Federal Reserve Bank of Philadelphia, on the basis of six per cent 
of the ^ total capital stock and surplus of the assenting national 
banks in the district, ^vill amount to $12,488,138; and if there be 
added six per cent of the capital stock and surplus of the State banks 
and trust companies which have applied for membership up to 
April 1, 1914, the total capital stock will be $12,500,738. 

DISTRICT No. 4. 

The State of Ohio; all that part of Pennsylvania lying west of district No. 3; 
the counties of Marshall, Ohio, Brooke, and Hancock, in the State of West 
Virginia; and all that part of the State of Kentucky located east of the 
western boundary of the following counties: Boone, Grant, Scott, Wood- 
ford, Jessamine, Garrard, Lincoln, Pulaski, and McCreary; with the city 
of Cleveland, Ohio, as the location of the Federal Reserve bank. 

This district contains 767 national banks which have accepted the 
provisions of the Federal Reserve Act. The capital stock of the Federal 
Reserve Bank of Cleveland, on the basis of six per cent of the total 
capital stock and sm'plus of the assenting national banks in the dis- 
trict, will amount to $12,007,384; and if there be added six per cent of 
the capital stock and surplus of the State banks and trust companies 
which have applied for membership up to April 1, 1914, the total 
capital stock will be $12,100,384. 

DISTRICT No. 5. 

The District of Columbia, and the States of Maryland, Virginia, North 
Carolina, South Carolina, and all of West Virginia except the counties of 
Marshall, Ohio, Brooke, and Hancock, with the Federal Reserve bank 
located in the city of Richmond, 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 dis- 
trict, will amount to $6,303,301 ; and if there be added six per cent of 
the capital stock and siu"plus of the State banks and trust companies 
which have appUed for membership up to April 1, 1914, the total 
capital stock will be $6,542,713. - : 



6 DECISION OF KESEKVE BANK ORGANIZATION COMMITTEE. 

DISTRICT No. 6, 

The States of Alabama, Georgia, and Florida; all that part of Tennessee 
located east of the western boundary of the following counties: Stewart, 
Houston, Wayne, Humphreys, and Perry; all that part of Mississippi 
located south of the northern boundary of the following counties: Issa- 
quena, Sharkey, Yazoo, Kemper, Madison, Leake, and Neshoba; and all 
of the southeastern part of Louisiana located east of the western bound- 
ary of the following parishes: Pointe Coupee, Iberville, Assumption, and 
Terrebonne, with the city of Atlanta, Ga., as the location of the Federal 
Reserve bank. 

This district contains 372 national banks which have accepted the 
provisions of the Federal Reserve Act. The capital stock of the 
Federal Reserve Bank of Atlanta, on the basis of six per cent of 
the total capital stock and surplus of the assenting national banks in 
the district, will amount to $4,641,193; and if there be added six per 
cent of the capital stock and surplus of the State banks and trust 
companies which have apphed for membership up to April 1, 1914, 
the total capital stock will be $4,702,558. . 

DISTRICT No. 7. 

The State of Iowa; all that part of Wisconsin located south of the northern 
boundary of the following counties: Vernon, Sauk, Columbia, Dodge, 
Washington, and Ozaukee; all of the southern peninsula of Michigan, 
viz, that part east of Lake Michigan; all that part of Illinois located north 
of a line forming the southern boundary of the following counties: Han- 
cock, Schuyler, Cass, Sangamon, Christian, Shelby, Cumberland, and 
Clark; and all that part of Indiana north of a line forming the southern 
boundary of the following counties: Vigo, Clay, Owen, Monroe, Brown, 
Bartholomew, Jennings, Ripley, and Ohio, with the Federal Reserve bank 
located in the city of Chicago, 111. 

This district contains 952 national banks which have accepted the 
provisions of the Federal Reserve Act. The capital stock of the Fed- 
eral Reserve Bank of Chicago, on the basis of six per cent of the total 
capital stock and surplus of the assenting national banks in the dis- 
trict, will amount to $12,479,876 ; and if there be added six per cent of 
the capital stock and surplus of the State banks and trust companies 
which have applied for membership up to April 1, 1914, the total 
capital stock will be $12,967,701. 

DISTRICT No. 8. 

The State of Arkansas; all that part of Missouri located east of the western 
boundary of the following counties: Harrison, Daviess, Caldwell, Ray, 
Lafayette, Johnson, Henry, St. Clair, Cedar, Dade, Lawrence, and Barry; 
all that part of Illinois not included in district No. 7; all that part of 
Indiana not included in district No. 7; all that part of Kentucky not in- 
cluded in district No. 4; all that part of Tennessee not included in district 
No. 6; and all that part of Mississippi not included in district No. 6, with 
the city of St. Louis, Mo., as the location of the Federal Reserve bank. 

This district contains 458 national banks which have accepted the 
provisions of the Federal Reserve Act. The capital stock of the 



DECISION OF RESERVE BANK ORGANIZATION COMMITTEE. 



7 



Federal Reserve Bank of St. Louis, on the basis of six per cent of the 
total capital stock and surplus of the assenting national banks in 
the district, will amount to $4,990,761 ; and if there be added six per 
cent of the capital stock and surplus of the State banks and trust 
companies which have apphed for membership up to April 1, 1914, 
the total capital stock will be $6,367,006. 

DISTRICT No. 9. V 

The States of Montana, North Dakota, South Dakota, Minnesota; all that 
part of Wisconsin not included in district No. 7, and all that part of Mich- 
igan not Included in district No. 7, with the city of Minneapolis, Minn., 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 Fed- 
eral Reserve Bank of Minneapolis, on the basis of six per cent of the 
total capital stock and surplus of the assenting national banks in the 
district, will amount to $4,702,925. 

DISTRICT No. 10. 

The States of Kansas, Nebraska, Colorado, and Wyoming; all that part of 
Missouri not included in district No. 8; all that part of Oklahoma north of 
a line forming the southern boundary of the following counties: Ellis, 
Dewey, Blaine, Canadian, Cleveland, Pottawatomie, Seminole, Okfuskee, 
Mcintosh, Muskogee, and Sequoyah; and all that part of New Mexico 
north of a line forming the southern boundary of the following counties: 
McKinley, Sandoval, Santa Fe, San Miguel, and Union, with the city of 
Kansas City, Mo., as the location of the Federal Reserve bank. 

This district contains 836 national banks which have accepted the 
provisions of the Federal Reserve Act. Tlie capital stock of the 
Federal Reserve Bank of Kansas City, on the basis of six per cent of 
the total capital stock and surplus of the assenting national banks in 
the district, will amount to $5,590,015; and if there be added six per 
cent of the capital stock and surplus of the State banks and trust 
companies which have applied for membership up to April 1, 1914, 
the total capital stock will be $5,600,977. 

DISTRICT No. 11. 

The State of Texas; all that part of New Mexico not included in district No. 
10; all that part of Oklahoma not included in district No. 10; all that part 
of Louisiana not included in district No. 6; and the following counties in 
the State of Arizona: Pima, Graham, Greenlee, Cochise, and Santa Cruz, 
with the city of Dallas, Tex., as the location of the Federal Reserve bank. 

This district contains 731 national banks v/hich 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 $5,540,020; and if there be added six per cent 



8 DECISION OF KESEEVE BANK OEGANIZATION COMMITTEE. 

of the capital stock and surplus of the State ];anks and trust com- 
panies which have appUed for membership up to April 1, 1914, the 
total capital stock will be $5,653,924. 

DISTRICT No. 12. , 

The States of California, Washington, Oregon, Idaho, Nevada, and Utah, 
and all that part of Arizona not included in district No. 11, with the city 
of San Francisco, Cal., as the location of the Federal Reserve bank. 

This district contains 514 national banks which have accepted the 
provisions of the Federal Reserve Act. The capital stock of the Fed- 
eral Reserve Bank of San Francisco, on the basis of six per cent of 
the total capital stock and surplus of the assenting national banks in 
the district, will amount to $7,825,375; and if there be added six per 
cent of the capital stock and surplus of the State banks and trust 
companies which have applied for membership up to April 1, 1914, 
the total capital stock will be $8,115,494. 

The committee was impressed with the growth and development of 
the States of Idaho, Washington, and Oregon, but on the basis of six 
per cent of the capital stock and surplus of national banks and State 
banks and trust companies which have applied for membership, that 
section could not provide the $4,000,000 minimum capital stock 
required by the law. With the continued growth of that region it is 
reasonable to expect that in a few years the capital and surplus of 
its member banks will be sufficient to justify the creation of an addi- 
tional Federal Reserve district, at which time application may be 
made to the Congress for a grant of the necessary authority. 

It is no part of the duty of the organization committee to locate 
branches of the Federal Reserve banks. The law specifically pro- 
vides that "each Federal Reserve bank shall establish branch banks 
within the Federal Reserve district in wluch it is located." All 
the material collected by the committee will be placed at the dis- 
posal of the Federal Reserve banks and the Federal Reserve Board 
when they are organized and ready to consider the establishment of 
branch banks. 

Reference is made to the Map of the Districts and to tables A, B, 
C, D, E, and F hereto attached. 

W. G. McAdoo, 
D. F. Houston, 
Jno. Skelton Williams, 
Reserve Bank Organization Committee 
Washington, D. C, April 2, 1914. 



DECISION OF KESERVE BANK ORGANIZATION COMMITTEE. 




DECISION OF RESERVE BANK ORGANIZATION COMMITTEE, 



nd trust com- 
lied for mem- 
1914. 


6 per cent 




S9. 924, 543 
20.687.606 
12,500,738 
12,100,384 
6.642,713 
4, 702. 558 

6.367,006 
4.702,926 
5.600, 977 
5.653,924 
8.115.494 


109,866,669 


)yup\orprin^ 


Capital and 


1 
3 

n 


$166,409,043 
,344.793.437 
208, 345, 631 
201, 673, 060 
109,046.223 
78,375,971 
216, 128, 363 
106, 116, 764 
78.382,081 
93,349,612 
94, 232, 073 
135,258,231 


1,831,109,489 


w 

a 


Num- 
ber of 


banks. 




7.544 


ah 4, 1914. 


6 per cent 




$9,924,543 
20.621.606 
12:488,138 
12,007,384 
6.303,301 
4.641.193 
12.479,876 
4,990,761 
4.702.925 
6,590,016 
5,540,020 
7,826.375 


107, 115, 137 


ional banks Mar( 


Capital and 


1 

tn 


$165,409,043 
343,693.437 
203, 136, 631 
200,123,060 
105,066,023 
77.353, 221 
207,997,941 
83,179,348 
78,382.081 
93.166,912 
92.333.673 
130,422,921 


1,785,252, 291 




be'r^f 
banks. 




7,471 




Popula- 


1 


6,652,681 
9,113,614 
7,932,066 
8,326,668 
8, 519,310 
8,677,288 
12,348,767 
8, 747, 662 
6,196,886 
,5,671,051 
6, 797, 970 
5,089,304 


91,972,266 




Land area 
in square 
mues.i 


61,976 
47,654 
40,449 
72,693 
152,931 
233,821 
171,306 
194,767 
433, 281 
460,831 
430, 329 
683, 852 


2,973,890 



■a 




J 



DECISION OF KESERVE BANK 



ORGANIZATION COMMITTEE. 



^ 3 
Q ^ 



A*" Us 



is 

} 



i 
i 



'• \ ' CO ■ 

: : : ;S3 ; 


is : 


i M ;§i i 


is i 




i^ i 



Si 
ii 



: :g§ 


ii : ; 


632. 


ilii 


: :p 


i- i i 



i 



1 



I 

■3 




Mod 



12 DECISION OF RESEEVE BANK ORGANIZATION COMMITTEE. 



sSiSiiisllisiSgsSiliiSSiSlisSiSiiisiiS 



i 



iigiSigSiiiiiiiisiiii^ 



1 



¥iWi¥i?SiiSiigsBiiiiillsSigii5iiils" 



CO 00 ' ■ of oo ^ ^5 wcS ''^ ~ ^ ^~ S ''~ ~^ ""^ S '^"^ r-H If; co'cm 



^^1 



iiig=ilgilSisil§iggSigiiiieiSSsisiili 



oi 



t» CO oa w 

I I M T 




iiiilpf 

TO me 



""torn 



DECISION OF RESERVE BANK ORGANIZATION COMMITTEE. 13 



I 



1 
I 



iiiiiiiiiiiiiiiiii 



§11 



si ' ■ ■ 



§ii§ 



iiiiiiiiiiiiiiiiiiiiiiiiiii 



iiiiiiiiiiiiiiiiiiiiiiiiiiiiiii 



3Sg3S;?SggS5?§S-SS?^p;SSSSSS!5SgSgS^2g 



iiiiiiiiiiiiiiiiiiiiiiiiiiiiiii 



1^ 



' S3 



iiiiiiiiiiiiiiiiiiiiiiiiiiiiiii 



iiiiiiiiii 



§1 



iiiii 



3 



ill 

fag 



i2 ■ 



11 
2S 



iiiiiiiiiiiiiiiiiiiiiiiiiiiiiii 




14 



DECISION OF KESEEVE BANK ORGANIZATION COMMITTEE. 



0 s_ .2; 

(D W frt ^ f-* 
(D 73 P <D -J 



i 3 «3 Cl , 

13 y, g'-S das 



00 O 00 t- to 
02 00 O O 

th «*i r- t- 03 



CD W O rH O 
00 CO OO CO OO 
LA CO CD 00 



eo t- OS eo oi 
eo ^ C2 ^ 05 

lA CD m O CD 



^ t« 00 CD 

©1 CO CO lO N 

00 r- oo o CO 



? 2 t 



3 St^-^S 



3 o ci 



I OO O 00 CO 
CO O Oi "5 
CD OO ^ 00 CD 



o ^ a 

ID j-> t:) 



2^3 T)2 



M CO 05 M O 
O f-l OO O ^ 
00 t- ^ 00 



a ■a « 3 •ass . 



3=3 



^.s assists d 



9 Sfl i g-H^xi 

o g Urn m 2^ 



o ^ >d M m 



OS i-< 

»-( oo 

CO T-l 



^C0<NCDO0i>-HfNC0':C-*ti00r-t"^I''^05r*O(r0t- 
trtOO-^m!X500CCl~-0000=Ct^'rfCOi01>OSO>rH^ 



i-H -IS* IfD 

COCN i-H CD 
lO I'- CO Tji 



■icocoomoikftLO'^ootC^C'C^i^eDi^rhOCD'J'co'n 
50oo»ccaiocDi-.c;t^c^icicjr^^i>cpC'ioco<ti*co»o»ft 
5t-eor^oooeoi^LOt-i'<?iiOcoTrWcocooo»Ot-icoo 



CN TT1 00 
C<) 00 o 
CO »-< CO CO 



i-l 00 t- 

<M -rf 



OsCOOI^OitNC-ICOCOtNiOCOOiC^li—icOrHC^COOCO^OlO 
CDCOO<— i^OO00cDC00ir-C0!r0?:DC0C0C0C^"5'~^00CD0> 
e00100C0t-CT)Oi-(.-iiOOC--CDOCCC5OcD00e00lO-^C0 



«at to vo 

00 O CO 
CO iC o 



u^M<oooo^c^^->-HcocD(^^Oi<^♦cocooccn.alOlOooc^lco^5 

00COCO<NCOi— (^CNOCOiCM^MiOiiOC* r-^cOt-HCOCO 



fit-oC'CDcoeooiciicioO'-iiccoeaio'^iCrH 



CO O T(1 

o o o 

"cH CO CI 



OJVCt-t^OKXiOOOOt^OOCOiCOOOirjOiOOOO 

co-s^inccwc^t-coco-^j^cQONic " 

^oco'iocoooo'LOcoaioooioo 



O "J^ 00 O i-H 

„ oo»J^oocno 

iOCOOH-^'^OOOO 



CO 00 OS 
ift O CD 
O 00 00 



O to i-'j OS O:. r-- lO Oi 00 1> I> CT-' ift CO 00 o 

inrHr-t'-^ccococoooi>-cst(»i"-cDcooooot£>coC'-tiOf— lira 
OOCOt-<eO"tl*OiiO!M:DCOOOiMWiOO<Mkn^CJQO'-**q'iCOO 



CDOTHeOi-4tOt-eaTj-cOC^(Mr-<.-lCO^f-lCOW 



t- OS CO CO « 



OS CD CO O O 
OS O ^ 00 CO 

eo t- oi ^ N 



OOm^'HCNi-lCD^^iMOOTi'OOt^t^OSOr^iMt-iMCOClOCOO 
USt-l«COiOiO.— iO.-iCOiOOSt>CSliC'<J<OCOOOOCNt--«-IOOO 

O'^O'atouscOinoot^c^iocor-iC'^i—iosT-HCDcooeDooo 



r-COOSU3i-l t-O^CDi:DCOLCOTt(00'^C^iO-rfO:>OSC^C^'!*"U5CO-*CJOCO»0 
OCOiftOSr- OSi— l^0Sl>.CDi0ClOC0t^05C0OO(MI>OC000i0i-H0Sr-lC2C-l 
rHCDOOCDd mi>0Oc«liMi-HaiCD'fJ'I>C*DI^00C^i— (CDiOX>i— <COi— (t^OO M".— ( 



OOcO i-H.— iCIiMiO^ 



OS t« C<* CO 00 

CO CO oo m CO 

OS k£3 CO r-l OS 



CO ^ ^ CD O 
00 CM 00 CO CO 
CO 00 « 1-4 Tj< 



DOOoooocM^-^cni-HOscoascDoo-rjiinor-osio^ 
Meoooooc4oocDOif:ieocoiCcrifOCDr*cor-»n'— lOt- 
^^.-•(MOOC^OOGsajt-IOiOTftOO'iSOD-^'COt^t^OS 



1— • CD 

>-( CO 00 CO 

00 00 CO 



CO TP 
CO f-H 

CO CO 



t/aosoocDcoeOi— (cootNtoocoor-ooosr-otOcD 

C0»nC^l^OrH<NC0OJOt--(»O00r-CVl.— IC^eOCO'-HCO 
00 00lOt*iCC0rj''OO)OC0I>-C00S-^iJD<Me^i0i0«' 



CO tC 

T-H oo CO 

O CO OS 00 



»jaj3 0+; 



3 Se,^^ >-S c a c d"H o 2 a a 
•g,ghd's.gs|-d5i«i^fe:saa:2 



O OS 



S cS ^ 



a- 



od 
• o . 

.2 Otj 

^ a> c 

d t- -H 



DECISION OF BESEEVE BANK OEGANIZATION COMMITTEE. 



15 



:4 




Loans and 
discounts. 




4 




Individual 
deposits. 




-1 




Capital and 
surplus. 


iiiiiiiigisiiiiiiiiiiiiiiiiiiiiiiiiii 

oo 1 — 1 tH ^ r^. _j ^ ^ ^ ry^ i*<i (0 OS <3i ert fT* "T; ■— ' ift r-™ ii^ (fi fv\ 


Number 
of banks. 




Popula- 
tion.' 





a 
o 

C3 




16 



DECISION OF RESERVE BANK ORGANIZATION COMMITTEE. 



4 



Oi CM 
CC O 



S 1 3 g gg S S S 2 S g ^"^ S S S S"| g S g =^'15 2 S S SS 



4 



CM CO 



00 to 



SlsiliSilHi§slililSslliilii;3iiKl«i??Si 



go 



iiiig3islii32iiii§iigiiiSS||gSg|2Sg|f^ 



liyillllllllllillslliAslllil^ 



ON APRIL 10, 1914, THE FEDERAL RESERVE BANK ORGANIZATION 
COMMITTEE MADE PUBLIC THE FOLLOWING STATEMENT RE- 
LATING TO ITS DECISION OF APRIL 2, 1914, DEFINING THE 
BOUNDARIES OF THE FEDERAL RESERVE DISTRICTS AND 
DESIGNATING THE LOCATION OF THE FEDERAL RESERVE 
BANKS. 

Washington, D. C, April 10, 1914. 

Congress imposed on the committee the duty of dividing the 
country into not less than 8 nor more than 12 districts, and the 
location of a Federal reserve bank in each. Thirty-seven cities asked 
to be chosen. The committee could select at most only 12. Neces- 
sarily 25 cities had to be disappointed. 

Follo-\ving 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 b}' Congress 
after exhaustive investigation and study of the entire country, with 
unbiased minds and according to its best judgment. With so many 
conflicting claims, somebody had to judge. Congress constituted 
the committee a court and gave the Federal Reserve Board the 
power of review. Disappointed competitors should seek a remedy 
through the orderly processes the law prescribes. 

Considerable comment has been occasioned by the failure of the 
committee to create districts suggested by New Orleans, with New 
Orleans as the location for a reserve bank; by Baltimore, with Balti- 
more 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 dis- 
tricts was far more important and complex than the designation of 
the reserve cities, and that the latter duty was subsidiary and rela- 
tively simple, waiving considerations of local pride or prestige. In 
arranging the districts the consideration of the character and growth 
of industry, trade, and banking, no less than the traditions, habits, 
and common understandings of the people was much more intimately 
involved. 

It became clear, in the hearings, that comparatively few people 
realized, or seemed to realize, what the act was intended to accom- 
plish; what the nature and functions of the reserve banks were to be; 
and how little change would occur in the ordinary financial relations 

17 



18 STATEMENT OP RESERVE BANK ORGANIZATION COMMITTEE. 



of the communities, the business establishments, and the individual 
banks. 

Critics of the decision of the committee reveal misunderstanding 
in these directions, and either do not know, or appear 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 the community, of business men, 
and of banks will not be greatly modified or altered. The purpose 
of the system is to remove artificiality, promote normal relations, 
and create better conditions under which everybody will transact 
business. 

Every city can continue to do business with individuals, firms, or 
corporations, \vithin its own limits, or in its own region, or in any 
other part of the Union or the world in which it has heretofore done 
business. - - ' 

Reserves are to be held in a new way and in new places, so far as 
this act controls them, but banking and business generally wUl no 
more be confined within districts than heretofore, and it is simply 
misleading for any city or individual to represent that the future of 
a city will be injuriously affected by reason of its failure to secure 
a Federal reserve bank. Every city which has the foundations for 
prosperity and progress wiU continue to grow and expand, whether it 
has such a reserve bank or not, and well-informed bankers, especially, 
are aware of this. " 

The facts which the committee had to consider will throw light on 
its decision in reference to these cities. 

NEW ORLEANS' CLAIMS. 

New Orleans selected a district extending from New Mexico to the 
Atlantic Ocean, including all of Texas, Louisiana, Mississippi, 
Alabama, Florida, Georgia, and that part of Tennessee south of the 
Tennessee River. 

It was represented by Texas that it would do great violence to her 
trade to connect her with Nev/ Orleans. It was claimed, and evidence 
was submitted in support of the claim, that her trade was with her 
own cities or with Kansas City and St. Louis. In a poll of the banks 
of Texas made by the Comptroller of the Currency, 212 banks ex- 
pressed a first'choice, 121 a second choice, and 30 a third choice for 
Dallas. No bank in Texas expressed a first choice for New Orleans, 
only 4 a second choice, and 44 a third choice. The whole State 
protested against being related to New Orleans. 

The banks of Alabama generally desired to be connected either 
with Birmingham or Atlanta, only three expressing a first choice for 



STATEMENT OF KESEBVE BANK ORGANIZATION COMMITTEE. 19 

New Orleans. Tlie banks of Georgia desired to be connected with 
Atlanta, none expressing a first or second choice for New Orleans, 
and only 12 a third choice. They represented that it would do vio- 
lence to them to be connected with a city to the west and claimed 
that their relations were mainly with Atlanta or cities to the north- 
east. 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 ex- 
pressed a first preference for New Orleans, and these were in the 
western corner, 4 a second choice, and 3 a third choice. No bank in 
Tennessee expressed a first or second choice for New Orleans, and 
only 2 a third choice, while 7 expressed a first choice for Atlanta, 14 
a second choice, and 13 a third choice. Generally speaking, the only 
banks which desired to be connected with New Orleans and expressed 
a first preference for her were 25 of the 26 banks reporting in Lou- 
isiana, and 19 of the 32 in Mississippi. On a poll made from the 
comptroller's office of all banks expressing their preference as to the 
location for a Federal reserve city, 124 expressed a first preference for 
Atlanta, 232 for Dallas, and only 52 for New Orleans. The views of 
the bankers were supported by chambers of commerce, other business 
organizations, and by many business men. 

It will thus be seen that if the committee was to give weight to the 
views of business men and bankers in the section of the country 
affected, to consider the opposition of the States of Texas, Alabama, 
Georgia, Florida, and Tennessee, and to be guided by economic con- 
siderations, it could not have designated New Orleans as the location 
for a reserve bank to serve either the western or the eastern part of 
the district that city asked for. The course of business is not from 
the Atlantic seaboard toward New Orleans, nor largely from the State 
of Texas to that city, and if Dallas and Atlanta had been related to 
New Orleans a better grounded complaint could and would have been 
lodged by them against the committee's decision than that made by 
New Orleans. 

Some of the banking statistics which the committee had to consider 
throw light on the problem. It should be borne in mind that the 
committee could consider primarily only the statistics with reference 
to assenting banks. In this section of the country, as in most others, 
the assenting banks were the national banks. In March, 1914, the 
capital stock and surplus, loans and discounts, and individual deposits 
of the national banks in the three cities named, as shown by the sworn 
reports to the Comptroller of the Currency, were as follows : 



Capital and 
surplus. 



Loans and 
discounts. 



Individual 
deposits. 



Atlanta 

Dallas 

New Orleans 



S8, 600, 000 
5,900,000 
6, 730, 000 



526,038,000 
18, 622,000 
17, 285,000 



$24,348,000 
18,551,000 
16,857,000 



20 STATEMENT OF EESERVE BANK ORGANIZATION COMMITTEE. 



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

CAPITAL AND SURPLUS. 





September, 
1904. 


March, 1914. 


Percentage 
of 

increase. 




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


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


256 
120 
8 


Dallas 






LOANS AND DISCOUNTS. 




$10,329,000 
7,653,000 
20,088,000 


$26,038,000 
18,622,000 
17,285,000 


152 
143 

Decrease 13 


DaUas 






INDIVIDUAL DEPOSITS. ^ 


Atlanta 


$9,931,000 
7,157,000 
19,425,000 


$24,348,000 
18,551,000 
16,857,000 


145 
159 

Decrease 13 


DaUas 


New Orleans 





The loans and. discounts in the national banks of New Orleans at 
the time of the report, March 4, 1914, were less than those of the 
national banks of either Atlanta or Dallas. 

While the committee could not figure on the resources of other than 
assenting banks which are in this section, the national banks, the 
following statistics of all reporting banks, including national banks, 
State banks, and trust companies, as of June 4, 1913, were regarded 
as significant and were given consideration : 

Atlanta reported capital stock and surplus $15,313,000, or $98 per 
capita; Dallas $9,997,000, or $108 per capita; and New Orleans 
$20,532,000, or $60 per capita. Individual deposits, per capita, 
Atlanta, $183; Dallas, $269; New Orleans, $209. 

The loans and discounts for all reporting banks for the three cities 
were as follows: Atlanta, $33,494,000, or $216 per capita; DaUas, 
$27,517,000, or $299 per capita; New Orleans, $64,845,000, or $194 
per capita. 

The committee found that the total loans and discounts made by 
national banks in the cities named in the 13 Southern States on 
January 13, 1914, were as follows: 

Atlajita $26,117,000 

Dallas 19,123,000 

New Orleans 19, 477, 000 

while the total loans made by the national banks of Dallas throughout 
the entire United States on the date mentioned exceeded the loans 
made by the national banks of New Orleans. 

Special reports, made under oath to the Comptroller of the Currency 
also show that on February 14, 1914, the credit balances of the banks 



STATEMENT OF RESERVE BAK K ORGANIZATION COMMITTEE. 21 

and trust companies in the 13 Southern States with the national 
banks of Dallas exceeded in amount the credit balances of all banks 
and trust companies in these same States with the national banks of 
New Orleans. 

In view of the comparisons and criticisms from New Orleans in 
connection with the designation of Dallas, Atlanta, and Richmond, 
and the omission of New Orleans and Baltimore, the following table 
is instructive: 



National hank statistics for States of Texas, ^Hrginia, Maryland, Georgia, Louisiana 

and Mississippi as of March 4, 1914. 

- ' . [According to sworn reports made to the Comptroller of the Currency.] 





Area 
(square 
miles). 


Popula- 
tion, cen- 
sus 1910. 


Capital and 
surplus. 


Individual 
deposits. 


Loans and 
discounts. 


State of Texas (including Dallas) 

State of Virginia (including Richmond) . 
State of Maryland (including Balti- 
more) 

State of Georgia (including Atlanta). . . 
State of Louisiana (including New 

State of Mississippi 


265, 780 
42, 450 

12,210 
59, 475 

48, 720 
46,810 


3, 896, 542 
2,061,612 

1,295,346 
2, 609, 121 

1,656,388 
1,797,114 


$76,785,584 
29, 732, 696 

28,267, 420 
24,479,735 

12, 128, 866 
5,168, 192 


$197, 663, 338 
90, 887, 858 

83,217,376 
51,382,061 

32,000,521 
17,045,324 


$215,114,326 
107,410, 063 

91,326,942 
61,852,579 

34,804,354 
13, 669, 200 



From the above statement it will be seen that in each item, capital 
and surplus, individual deposits, and loans and discounts, the national 
banks of Virginia, including Richmond, largely surpass the national 
banks of Maryland, including Baltimore. 

The capital and surplus of the national banks of the State of Vir- 
ginia are 60 per cent greater than the capital and surplus of the 
national banks of the States of Louisiana and Mississippi combined, 
including the city of New Orleans, while the loans and discounts by 
the national banks of Virginia are more than three times as great as 
the loans and discounts in the national banks of Louisiana, includ- 
ing New Orleans. 

While the capital and surplus of the national banks of Georgia 
largely exceed the combined capital and surplus of the national banks 
of the States of both Mississippi and Louisiana, the loans and dis- 
counts made by the national banks of Georgia exceed by 113,000,000 
the loans and discounts of all the national banks of Louisiana and 
Mississippi combined, including the city of New Orleans. 

The capital and surplus of the national banks of Texas amount to 
four times as much as the capital and surplus of the national banks of 
the States of Louisiana and Mississippi combined, and the individual 
deposits in the national banks of Texas also amount to about four 
times as much as the individual deposits of all national banks in 
Louisiana and Mississippi, the only States from which New Orleans 
received as much as half a dozen votes as first choice for the location 
for a Federal reserve, bank. !J 



22 STATEMENT OF RESERVE BANK ORGANIZATION COMMITTEE. 



KANSAS CITY DISTRICT. 

The region in the middle and far West presented problems of 
difficulty. Careful consideration was given to the claims of Omaha, 
Lincoln, Denver, and Kansas City, which conflicted in this region. 
Denver asked for a district which included Idaho, Montana, Utah, 
Wyoming, Colorado, New Mexico, and the eastern two-thirds of Ari- 
zona and Texas, Kansas and Nebraska west of the one-hundredth 
meridian, and the Deadwood portion of South Dakota. Tiie district 
gave approximately the minimum capital provided by law. Of the 
territory included in this district Montana unanimously requested to 
be connected with Minneapolis or Chicago, saying that she had little 
or no trade relations with Denver. Idaho desired to go to Portland 
or San Francisco; Arizona preferred San Francisco, and the greater 
part of New Mexico asked for Kansas City. Western Texas, 
Kansas, and Nebraska unanimously protested against going to Den- 
ver. Kansas desired Kansas City; Nebraska preferred Omaha or 
Lincoln ; and Texas wanted either a Texas city or Kansas City or St. 
Louis. 

In the poll of banks, Denver received 136 first-choice votes, of 
which 112 were from Colorado and 12 from Wyoming. With Mon- 
tana, Idaho, Ai^izona, Texas, Kansas, and Nebraska in opposition, 
it was clearly impossible to make a district with Denver as the loca- 
tion of a bank. Part of the territory asked to be assigned to San 
Francisco and the other part to Minneapolis or Kansas City. 

Omaha asked for a district embracing western Iowa, all of Nebraska, 
part of South Dakota, part of Kansas, Colorado, Utah, Wyoming, 
Idaho, and Montana. All but eight of the banks in South Dakota 
insisted upon being connected with Minneapolis; Iowa desired to go 
to Chicago; Kansas practically unanimously voted for Kansas City; 
Montana protested against any other connection than Minneapolis 
or Chicago. The preferences of the other States have already been 
indicated. 

Of the 218 banks which expressed a first preference for Omaha, 181 
were from Nebraska. The committee had to consider the State of 
Oklahoma and part of Missouri in connection with this region, and 
in district No. 10, 497 banks expressed a first preference for Kansas 
City; western Missouri, Oklahoma, and Kansas, and part of New 
Mexico, especially asked for this connection. Thirty-seven banks in 
Colorado gave Kansas City as second choice and 26 gave Omaha. 

It seemed impossible to serve the great section from Kansas 
City to the mountains in any other way than by creating a district 
with Kansas City as the headquarters, or to provide for the north- 
western section except by creating a district with Minneapolis as 
headquarters. The only other thing that could have been done 
with Nebraska under the conditions which presented themselves 



STATEMENT OF KESEEVE BANK ORGANIZATION COMMITTEE. 23 



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





Capital and 
•surplus. 


Loans and 
discounts. 

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


Individual 
deposits. 




$11,660,000 
0,570,000 
7,545,000 
1,330,000 


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




Denver 


Lincoln 





The statistics of growth during the nine years from September, 
1904, to March, 1914, are significant: 

CAPITAL AND SURPLUS. 





September, 
1904. 


March, 1914. 


Percentage 
of increase. 


Kansas City 


$3,900,000 
3,880,000 
3,325,000 
768, 000 


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


199 
69 
127 

73 




Denver 


Lincoln 




LOANS AND DISCOUNTS. 




$35,598,000 
16,218,000 
14, 146,000 
3, 820, 000 


806,205,000 
32,848,000 
23,022,000 
6,066,000 


86 
102 
98 
58 






Lincoln 




INDIVIDUAL DEPOSITS. 




$30,7.30,000 
15,728,000 
27, 798, 000 
3,283,000 


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


31 
73 
22 
35 




Denver 







The loans and discounts of all reporting banks and trust com- 
panies in Kansas City on June 4, 1913, amounted to $91,686,000, 
exceeding by about $7,000,000 the total loans and discounts of all 
banks and trust companies in the cities of Omaha, Denver, and 
Lincoln combined. 

The loans and discounts of the national banks alone in Kansas 
City also exceeded the sum total of the loans and discounts of all 
national banks in the cities of Omaha and Denver combined. 

The great preponderance in the ihovement of trade in district 
No. 10 is to the east. In order to place the Federal reserve bank for 



24 STATEMENT OF EESEEVE BANK ORGANIZATION COMMITTEE. 



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

THE RICHMOND DISTRICT. 

The committee named as cities for the location of Federal reserve 
banks New York, Chicago, Philadelphia, St. Louis, Boston, and 
Cleveland. In population these are the six largest cities in the 
United States; then- geographical situation and all other considera- 
tions fully justified their selection. 

San Francisco and Minneapolis were the first choice of the great 
majority of the national banks in their respective sections, and 
their financial, industrial, and commercial relations and other factors 
entitled them to be chosen. Their selection appears to have evoked 
no criticism, but to have received general approval. Conditions 
relating to the Kansas City, Dallas, and Atlanta districts have been 
dealt with. 

For the territory from eastern Georgia to the Pennsylvania line, 
the committee, after fully considering all the facts, decided to create 
a district with the Federal reserve bank at Richmond. South 
Carolina and North Carolina had protested against being connected 
with a bank to the south or west. They said that their course of 
trade was northeast. It seemed undesirable to place a bank in the 
extreme northeastern corner or at Baltimore, not only because of 
its proximity to Philadelphia, but also because the industrial and 
banking relations of the greater part of the district were more inti- 
mate with Richmond than with either Washington or Baltimore. 
The States of Maryland, A^irginia, West Virginia, North and South 
Carolina, and the District of Columbia had to be considered. North 
Carolina, South Carolina, and Virginia preferred to be connected 
with Richmond. West Virginia was divided in its preferences; 
Maryland and the District of Columbia, of course, desired Baltimore 
or Washington. In the poll of banks made directly by the comp- 
troller's office, Richmond received more first-choice ballots than any 
other city in the district — 167 against 128 for Baltimore, 35 for Pitts- 
burgh, 28 for Columbia, S. C, 37 for Cincinnati, and 25 for Washing- 
ton, D. C. Of the remaining 21 votes, 19 were for Charlotte, N. C, 
and 2 for New York. Leaving out the States of Maryland and Vir- 
ginia, Richmond received from the rest of the district three times 
as many first-choice votes as were cast for Baltimore. 

District No. 5 is composed of the States of Maryland, Virginia, West 
Virginia (except four counties), North and South Carolina, and the 
District of Columbia. These States have always been closely bound 
together commercially and financially and their business dealings are 
large and intimate. The reports made to the Comptroller of the Cur- 



STATEMENT OF RESERVE BANK ORGANIZATION COMMITTEE. 25 



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





Capital, sur- 
plus, and 
undivided 
profits. 


Loans and 
discounts. 


Total indi- 
vidual de- 
posits. 


Virginia 


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


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


590,887,858 
83,217,375 
61,421,332 
36,051,154 
23,330,916 
29,520, 853 


Maryland 




North Carolina 









Advocates of New Orleans have criticized the decision of the 
organization committee and have given out comparative figures as 
to New Orleans, Richmond, and other cities which are incorrect and 
misleading. An analysis and study of the actual figures will be 
found instructive and can lend no support to the claims of New 
Orleans. 

From the sworn special reports recently submitted to the Comp- 
troller of the Currency, it appears that the national banks in Rich- 
mond were lending in the 13 Southern States, on January 13, 1914, 
more money than was being loaned in those States by the national 
banks of any other city in the country except New York. The total 
loans and discounts in the 13 Southern States by the four cities re- 
ferred to are as follows: 

Richmond ." $33, 473, 000 

Baltimore 6, 891, 000 

New Orleans 19, 477, 000 

Washington 915, 000 

The figures also show that in these portions of district No. 5 outside 
of the States of Virginia and Marjdand the Richmond national banks 
are lending twice as much money as all the national banlcs 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, 19,876,000, or slightly more than the banks of this section 
had on deposit in the city of Baltimore, and four times as much as 
they carried in Washington, although these two cities have long, 
enjoyed the benefits of being reserve cities. That southern banks 
should carry larger balances in Richmond, where they could not be 
counted in their reserves, rather than in Baltimore or Washington, 
where they could be counted, is suggestive. 



26 STATEMENT OF EESEEVE BANK OEGANIZATION COMMITTEE. 



The figures show that the capita) and surplus of all reporting 
banks — national, State, and savings, and trust companies — per 
capita, in Richmond, as of June 4, 1913, was $131; in Baltimore, $85; 
in Washington, $88; and in New Orleans, $60, while the loans and 
discounts made by all banks and trust companies in Richmond, on 
the same date, amounted to $393 per capita, against $190 in Washing- 
ton, $213 in Baltimore, and $194 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 February 14, 1914, amounted to $10,970,000, or 
nearly twice as much as the balances carried by outside banks with 
the national l:)anks of Washington, which on the same day amounted 
to $5,516,000, and one and one-half times as much as they carried 
on the same day with the national banks of New Orleans, a reserve 
city. 

The statistics furnished the organization committee show that on 
March 4, 1914, the capital and surplus of the national banks of Rich- 
mond, per capita, amounted to more than twice as much as the capital 
and surplus, per capita, of the national banks of either Baltimore or 
Washington, and three and a half times as much as New Orleans, 
while the individual deposits of the national banks of Richmond 
amounted to $201 per capita, against $86 for Washington and $76 
for Baltimore and $50 for New Orleans. The loans and discounts 
in the national banks of Richmond on the same date were reported 
at $279 per capita, against $77 for Washington, $108 for Balti- 
more and $51 for New Orleans. 

Especially significant are the following statistics showing the growth 
in capital and surplus, loans and discounts, and individual deposits 
of national banks in the four cities named: 



CAPITAL AND SURPLUS. 





September, 
1904. 


March, 
1914. 


Percentage 
of increase. 




«3, 115, 000 
6,215,000 

18, 262, 000 
6,250.000 


$9,314,000 
11,365.000 
19,205,000 
6,730,000 


199 
83 
5 
8 


Washington 


Baltimore 


New Orleans 




LOANS AND DISCOUNTS. ' . - : 


Richmond 


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


$35,593,000 
25,405,000 
60,312,000 
17, 285, 000 


175 
69 
23 

Decrease 13 




Baltimore 






INDIVIDUAL DEPOSITS. 


Richmond 


$11,257,000 
20,017,000 
40,910,000 
19,425,000 


$25,705,000 
28,491,000 
42,553,000 
16,857,000 


128 
42 
4 

Decrease 13 


Washington 


Baltimore 


New Orleans 





STATEMENT OF EESEKVE BANK ORGANIZATION COMMITTEE. 27 

In other words, the figures show that the national banks of Kich- 
mond were lending on March 4, 1914, tiuice as much money as all 
the national banks in the city of New Orleans, and 40 per cent more 
than all the national banks of Washington. 

In the original decision of the committee the various economic 
and other factors which entered into and determined the committee's 
action were enumerated and need not be repeated here. This 
statement is made for the purpose of disclosing some of the details 
which influenced the Committee's findings. 



o