STENOGRAPHERS MINUTES
THE RESERVE BANK ORGANIZATION COITMITTEE.
".-.aDERAL RESERVE DISTRICT DIVISIONS AND LOCATION OP FEDERAL RErERVE EANES AND HEAD OEEICES."
nr.
At
D o lt .
CineLima,tl* _Ohio*.
February 16^. 1914*.
Law Reporting Company, Official Stenographers
H 5 BROADWAY,
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
NEW YORK
T I U P H O N t , 2820 RECTOR
• 6
4341
CIWCIWIIATI, OHIO. F e b ru a ry Tdo O r g a n i z a t i o n C o n i t te e a s t 1 8 th , 1914,
p u rs u a n t t o n o t lc o a t
10:00 A* II.
mam:
THE SCCR1ETAHT OF TFT TRTASURT.
TH* 8TCR1TTART OF AORICtTlTOne.
Ap PTARAFCE9S
WL 8 . ROWF, P r e s i d e n t F i r s t Mat io n s 1 Bank, C o s s itte e s C in c in n a t i,
and Ch&irr.an o f th e v a r i o u s R e g io n a l Bank u t t e r . 9KORCK r . DICTTRLC, P r n i o s n t ,
i n the
C in c in n a ti C h M b «r o f
/
C o u a r c i.
CHARLES A . HIW8CH,
P r t t ld m t ,
C in c in n a t i C le a r in g F ifth -T fa ird
House A s s o c i a t i o n , R a t io n a l B an k. F . W. SDWART9, c in n a ti , FRFTFHICX C. HICKS* of J. S. C in c in n a t i. McHTWHY,
and P r s s i d e n t o f t h e
F re e Id e n t,
B u s la s e s Men9s C lu b ,
C in
P ro fe s so r o f
V c o n c s ic s ,
U n iv e r s it y
(H ash v ille,
T en n .),
repreesntln g
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ac
4342
n a a n v il l a C la a r in g H cu ta; F I r o t n a t io n a l Banka* 8. o f Corse j r c c .
0
V ica Prsoidant of t h e Fourth and
V.
CARR,
(T o le d o ,
O M o ),
Pr««ii.anX Rational Ba
.
H.
A.
3HARP.
(Z a n a a v l l l a ,
O b l o ) # C ao hior,
Old
C it la a n A H a t Io n a 1 B an k. JOHH L . BUnHWFLL, F lr a t n a t io n a l Bonk. X. B. G~BRA??DT, (P a y t o n . O h i o ) , r«p re»*r.ting th# (3 p r ln *fie ld . O h i o ), P r a o id a n t.
D a /t o n C le a r in g Housa. C. first D. CHITES, (L i.ta , O h io ). C a a h ia r and Han*gar cf
N atio n a l B an k . J. S. H IL L , ( d a rleato n, V ast V i r g i n i a ) , Cao hiar ,of
tha
n a tio n a l City B an k . ROBERT l>. ARCHER, (H u n tin g t o n , Waat V i r g i n i a ) ,
C u a h la r / I rat W. K . ■ atlonal B a n k . J. P ain to v llla L.
R ational B a n k , FAKITR, (V in o « n n e « , In d ia n a ), Caafclar, Oonran
1C. BUCKIBQHAM, R atio n al W. E A T I8, B an k .
(P a ln t a »lllo ,
K o n to cky ),
C aa h lar,
(Aahla«<!,
K e n t u c k y ),
P r«14?ist,
Second
R a t io n a l B a n k .
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3.
A.
rLKTCHFR,
(In d la n a p o lla ,
In d ia n a ),
re p r o a a n t ln * j
**
4343
tns
In d ian ap o lis AHE -i
C laarln g
House A s s o c i a t i o n . In d ia n a ), Sscretaryof nation al
^MITH,
(In d ian ap c lia, V ies
In d ia n a Bankers
A ssociation ;
P rssiden t
In d ian a
B an k # In d ia n ap o lis.
MARCUS 3. A ssociation , C. H. 3GBTAG, T ics P rssid en t In d ia n a . Ind iana ) , also Cash i s r o f of ths ths ttun ois In d ian a Banker*
E v an stills, CHURCH,
(U u n cU , B ank*
E s l s w a r s C o u n ty
National
Sscrstary
C l e a r i n g Hcuss A s s o c i a t i o n , H. C. SHARP, (M a y a v ills, K entucky), Ca.ahlar S t a t s
N a t io n a l Bank. WALTtR S . fo r HARK196. (P rsston bu rg, K entucky), ap p earin g
t h s Bank J c s s p h i n s , C. K. F^OST,
Prsstcnburg,
Kentucky) ,
and o t h e r s . fo r
(A th e n s,
A lsh aaa),
ap pearin g
F irst
B atlo n al A. ?.
Bank a t JACC.SOW, B an k ,
A tftsn s and c t h s r s . (D ec atu r, Alabam a), of C ash ier of the Bank
C ity of
R ational
and P r s s l d s n t
ths F ir s t
R ation al
B a rtse ll, H. ».
41 a * s a fe . JOHW8TOV, (C n o aviH e, T sn n sssss), P rssld sn t
In o x v ills C. a p p .a rln *
C l e a r i n g House A s s o c i a t i o n . C. fo r BOWTPR, (P o in t P leasan t, * ..t V irg in ia ), th .
ttt. P . l n t
P l.a a an t
R atio n al
Bank a n i
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4344
Point Pleasant Trust Cos pany and tha Merchants national Bank J. B. V A L O R , (C a n t s r v l iie , T e n n s s s a s ), f o r F irst
National Bank of C « n t * r v il l s and othsr banks* *.
V.
HTlflCX,
(M lddletosn,
O h i o ),
President F irst
Katlonal Bank of Middletown, also repreeentlng Ogleaby and Barnett Banking Company,
S.
n atio n al Bank.
R. L.
D . PITTOV,
(Ham ilton, O h i o ),
Preelaent F ir s t
BURCH,
(C in cin n ati,
O h io ). O b ic), fo r M attbaa
JAMES A .
ORSEW,
(C in cin n ati,
k&c.y t, C o ap a n jr.
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4345
Ths $ * «retery of th« T rta «u ry : Qertle**en, is ^
this ^ r K s l t U t
r j i a w it h the duty of d l r l d l r f t h is owsntry in to not than slHht nor sort: th^n twelve f O d e n l Beserwe d i t * «nd the l i i f t t i & f w it h in
m
le ss
tricts,
A
c m « f a F ederal Besik*
auo
The Aot req u ires that the Ccssslttee s h il l h t v :
re*r-ru
fo r o c n w .l a n o e ajrui cuetonary ocures r>f business in z&sJtlnjr ,h le A ( p « r t i a w « n t * fh r t we dse ire is to ^t faote r e la t in g ,* c i i m p
tc the t r e b l e * fr e e that stand p o in t, ws w e ll u t of
^ c n e r l in r n a l ie n which would be is r t ir o n t to the issue* Ae we hawe b id c* use tc remsrk b e fo r e . I t le not oratory or tloqutnoe fa c t e * that we r.re so such ii quo^t of ae
0*ln$r to the b r i e f tiae which the Ccn<tee hae a t so f a r as
lt e d is p o s a l* we haws to oonflne the w it n e s s e s , p o s s ib l e ,
tc ths charactsr of facts which ws think are n e * urpose * to
osf-sr.ry f o r the
Thsrs are a ^ord wsny c it ie s to be heard here
day* M M r d i n | to this l i s t ; sore th~r we had eu£p#£Sd ws w ruld haws, so that ws s h a ll haw: to wst at ths e a t t t r
#
▼cry d i r e c t l y , p oint* Ws w ill
rad we s h a l l ask you a l l to speak tc ths
talcs up C in c in n a t i f i r s t * Mr. R c r t , I e s s .
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ec
4346
l<i C n a l r a a n
of
trie J o i n t
Coasaittee.
STATCM^ITT OF I . Tho 8 0 0 r o t a r y your oaaef Mr. Rowe: of th o T r e a ^ n r y : and
S.
ROWE. Rowe, w ill you e t a t s
Hr.
residen ce V. an d S.
occupation. P resid en t, F iro t n atio n al Bank o f in th o
Rowe;
C in cin n ati,
C h airm an o f
th o v a r i o u s
C o aaittsee
R e g i o n a l B ank a a t t o r o . Tne S e c r e t a r y make. Mr. try tics that tc of tho Treasury: You ha v o a statem ent to
Tcu may p r o c e e d . Rove: avoid I aa going to as In ta lk fa r fro a so? o s , and a a go in g to sta tis
sta tistic s b riefs and in
as p o s s l b l s . It 1*
We h a v e
i n the
the a s p s .
cur understanding fo r su^gsstsd and of lin ee
the Cossaittee of
s s v e r e l aplacee in sill 8, 10,
has asked
d ivisio n s w ith ths
the country
11 o r a
12 d i v i s i o n s , d ivisio n the
your p e rm issio n as c o u n try drawn that in — of the
o ffe r ei& ht
s u p .p e l t e d
a a s saade f o r
o r aore
banka,
h oing
Tha S e c r e t a r y thisT Mr. d ivid e Rowe: the
Treasury:
Have y ou e x t r a
cop ie*
of
We s i l l country
fu rn ish eigh t
thea.
The b l a c k Ths
lin e s red
in
general ehos
Into
d istricts.
lin e e
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ec
W.
3.
Howe
4347
tho That
territo ry eould
tc
oe s u b - d i v i d e d n e csesarily The
If
nine o ff
ban k s of
are
ch o sen *
probably
com
the
Bear Ycr k and c 5s t r i c t the M i s s i s s i p p i shoe tc be
He* E n g ls n i to if the be a a o e ten a re
territo ry . out of the
green
lin e
showe t h e west blu e of
Central
d istrict, lig h t the The
chosen* changes
The p u r p l e an c to be a a £ e If
lin e s were in the
p o ssib le into
country thought of that
dlvld*~ lin e its tla s
11 o r 12 d i s t r i c t s * is that and slth great have
purple in short that
atcut rapid there
Texas
the a r e a growth, to
country
settlem en t
in a
reasonably aa d 3 o f
would p r o b a b l y
be a d i v i s i o n
tsrrito ry * The 8 J c r s t —ry d ivisio n , Mr. tne o£ t&e T r e a s u r y : prcpcssd except How, fo r i n an y suggested is u n a lte re d .I
d istrict
C in cin n ati we h a v e
Roes:
P ra c tic a lly ,
that
d raw n so n s
r o u g h l i '.s « h e r s . T:.a sp sc iflc of d istric t, th e T r e a s u r y : - H a v s you a map scr« u N e a r ly th an shoeing th is ths
U :la a tln n
does,
w ha t you p r o p o s s f o r
C in cinn ati? a eap thers, a ll of Mr. Secretary. etatee* describe them that
ei
d r. Roes:
aa„ is draen
Thsrs fo r
is
p ra c tic a lly ef the
the f i v e
Ths S e c r e t a r y tor th e sske of
the T re a su ry : record.
You M i g h t
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ec
* . S .
R
o ao
4346
M r.
Rowe:
The s t a t e s or O hio, or that is the it
com prising
the
d istricts
w h i c h we Kentucky
propose
co n sist
In'lana, I t u t V i r g i n i a ,
of thes.
an d T e n n e s s e e , the Map s h o w s what
g re a te r parts covers
A glance at and in
p a rtic u la rly
in Ohio of
Indiana, with
a den sely populated
county here
section that in
tha
country to be
an o c c a s i o n a l to
and t h e r e
seews
devoted
a g ric u ltu re and it
w ith
fe w e r p eop le parts that
it.
I n the u n d e v e l
oped c o u n t r y ,
shows t h e
o f Vest V ir g in ia , are covered by t h e c o n *
E a s t e r n K e n t u c k y and T e n n e s s e e tln u a tio n ot th. A ppalachian
ranga,
c o a l n g down t h r o u g h
P ean eylvan ia
and l e w Y o r k . of the Treaaury: What an d do you wake t h e c a p i t a l the reacurcea ten of to it?
Th* S e c r e t a r y of the R eeerve Mr. Rowe:
Bank a o a o r g a n l a e d , would be
The c a p i t a l d o lla rs. of the
eoteew here f r o m
tw elve a l l l l o n The on it? Mr. Rowe: Secretary
Treaaury:
Hav e y ou any
exact fig u r e s
We h a v e no e x a c t I to think y ll,
figu rea, in
although th e etop
they
have
bean p re p a re d . been sh all
The
* e h a v e them and if
b rief lo n g
which hae enough, 1
subm itted have
you w i l l
the q u e stio n answ ered.
of the Treasury: We sho uld like tc have the
Secretary
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•C
W. 3.
Ro»d
question
antvortd
no*.
Mr. Row#:
Th# capital and surplus of th# bank —
this
in c lu fs ^ State bank# —
Mr. Hlntch *t ostl&at# of th# cap ital
cf a oank coloring t h i* d is t r ic t would b# f l l # 7 0 0 , 0 0 0 . Th# Secretary of th# Troasury: ccurssT Mr. Row#:
| 4 3 #0 0 0 , 0 0 0 .
On th# 6 p e r c#nt b a sis,
of
On th# 6 p#r c#nt b a # is ,
with d#poslts of
Th# S#or#tary of th# Tr#a*u ry: posltsT H r. H lnsch: now ar#,
Exclusive of O o vam aant d«-
W# include th# Govarnaent doposits as th#y
as
out not
provided f o r by th# Act.
Mr. Row#:
Th#r# ar# probably thrcs# quarter® of a a l l l i o n
d o lla r s of Oovom a#nt aon#y I n tho local hanks: Th# Sscrotary of th# Tr#asury: In t h is ontlr# d is t r ic t I think it would b# in ord#r that
th#r# i# a grsat d#al mere than t h a t .
w#ii to tak# out th# Go v# m * # n t d e p o s it s ,
aay ss# what you haw# as a rtssrt# fo r t h is bank without such d s p o s lt s , I think If you would glws th# c a p it a l and i u r * that is, separate
plus of th# 3tat# banks at this point* them from th# National b a n k *, Mr. Rows:
it would be w e l l .
Th# Rational bank# I n th# d i s t r ic t nuahsr 1 , 0 0 9 ;
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ec
r•S.
loxa
4 3 5 0
th e ir cap ital $761,971,000. an d th eir
and
surplus
is
#202,107,000, in th a is
anc
th e ir
deposits
Tho S t a t e end
banks
d istrict
vzuaber 2,*>51 and th e ir la
cap ital
surplus
#188.393,000, nuaber of tae
depoeite 3,660,
$ 9 1 3 , 5 4 3 , OOO. the cap ital
The t o t a l and surplus Of
banks
anc
#391,094,000, a lo t of
and t h e oanke
cepoeite cou ld not
$1,6 7 5,53 4 ,0 0 0. q u a lify . of
course
these
The S e c r e t a r y State M r. la banks Rove:
A gric u ltu re : the systeaT
What
is
th o l a w
a# t o
the
J oining
The l a w taae b e e n a s s n d e d to th e Department a t of the Treaeury:
in Ohio,
and
I
think
accep table
W aehlngtcn. Has t h a t la w been passed as
The S e c r e t a r y yet? Mr. Rowe:
Tee, of
it
hae
bacosa a la w . How m sny o f the State the oanko
The S e c r e t a r y in and thie d istrict
tho
Treasury:
are
e lig ib le
to aeabereh ip do t h e y show,
under and
Act,
w hat c a p i t a l
Rows:
and e u r p l u s 346
wha t d e p o s i t s ? eu fficien t
Mr.
There a r e n a tio n a lise . of the
baurike i n O h i o h a w i n g
ca p ital
to
The S e c r e t a r y Mr. ly . Ro**e:
Treaeury:
Or t o yes; th e ir
becom e a e a b e r o ? 1 stated su rp lu s it incorrect*
Or to
Oecoae aem bere, lo $40,991,000,
T heir c a p it a l
$*0,729,000,
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•c
W .S .
Rows
4351
an d
th a ir In
d *p oaits
#338,996,000. ars 449 b a n k s w it i. a c a p i t a l of cf
lo t banks w ith a c a p i t a l o f *nd d e p o s i t s o f 1 4 8 , 3 5 5 , 0 0 0 .
slth s of cap ital cf 11 1,4^7,000,
f l L , 9^0,000,
$3,597,000, 130 uanke
Tsnnsssss surplus of
has
#; , 0 8 3 , 0 0 0 ,
and d e p o s i t s has
$46,645,000. $ 1 0 , 6 6 * , 0CC,
West V i r g i n i a surplus
1 1 7 &*nks,
capital
# 5 , 4 4 ^ , 0 0 0 and d e p o s i t s That com prises of the the
#51,060,000.
d istricts. Tou h a v e n o t that su m m aris ed
The S e c r e t a r y fo r a ll these
Treasury: the
State This
banks,
totals? I w ill have
Mr. that
Rose: done, if
has n o t
been a g g r e g a t e d ? 1 proceed? Ye*. lin e fu ll the «cul ' fo r
I m *y. of the in
S k all
The S e c r e t a r y Mr. Rose: I
Treasury: the the
Wc«, have
draw ing it of slth
the
fiv e
etates th a t of in tne
rou gh ly, th e
don e
re a lisa tio n natural trsnd
northwestern p a rt of meet of of
In d ian a banks
bu sin ess
these the
be t o w a r d cf
O lo ago.
The S e c r e t a r y is the M r. *o u l4 same? Rose: sim ply
Treasury:
The t r e n d
commodities
The t r e n d
of
c o m a u e d lt le s dem and,
mould go e i t h e r fre ig h ts
say, and
it
d e p e n d on t h e
ra ilro a d
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eo
W.
s.
Hoia
435 Z
t r id a ,
wherever it happen# tc be developed. In Vest V ir g in ia at the northern end, the natural trend
there «ould be towards Pittsburgh and on the eaet side B a lt i more and Richmond, which we think have scae d e alin g s with ths Central and because
banks, and a considerable trade with t a e a .
3 o u t h e m Vest V ir g in ia dsal largely with C in c in n a t i, it is on t n ls side of ths d iv id e ,
and the roade ccae through, and it ie t h e ir
and the t r a in eervlce ie frequent and a c t iv e , nearest large c i t y .
Eastern Kentucky and Central Kentucky deal here fo r Ue same rsasone* Going down into Tenneesee we have purpossly uhlch In
l e f t at the western edge there the tfewphie D l e t r l c t , would n aturally go to S t . Kentucky, beyond Paducah, Louis and beyond the r iv e r . there Is a l i t t l e
part at ths
e~gs there that would probably have mcra b u s ln e ** with S t . Louie taan any other s e c t io n . Row that te r r it o r y as drawn repreeente our views in a general way, and ws b e lie v e that the fig u r e s w ill shew that it Is self- su p p o rtin g . The Secretary of the T rsa su ry : Mr. Rose: Tee.
of the Trsasury: Can you subalt those now.
Have you any fisrurse on that?
The S ec retary
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W.
S.
Hcwa
4353
M r,
RowaT
Mr. ties
Ro we: that
This
map r e p r e s e n t s
the country ln th e
D&nks
by coun various
ia d «
leans
in C in cin nati
y s a r 1913 a t banks in
tiaes. and ths
Tfcj rod
grsen dots
rspr«s«n ts tbs barks
ths lo a n in g
by c o u n t l a s , C in cin n ati
that
redlecounted
C u r i n g the
season. gan tlaaen hava ?e a a n t d istrict, bat out a»d prepared
naps
These a1 d e r a n d a . tfircu^h I greatest fou r ths the
showing to
ths
aeaacn—
a n u sbjr of aaksd
in q u iries they
ban ka a l l tha
t h a * when tha ysar,
exp erienced it Into
deaands,
ssaaon cf au mmmr,
d ivid in g
ssctio n s, raaut haa
sp rin g,
autus-n and w i n t e r , hava
and and
boen t h a t anc tha
ha r a p l i a a re su lts
baan t a b u l a t e d ahaom. demands sprin g;
c a lcu la tio n a Tug through rec, Tney but fa ir t(*e t& is
aa^e, la ft
bars tha
ara
hand map r e p r e s e n t s d istrict fa ll; and by the of
seasonal graan, ths
proposed yellcw , th~
seasons, jrew n tne ia
auaerl vary in
w in ter. co n sid erab ly , it sho^s a
d ifferen t ths
parte resu lt
country is
tak^n as and
a w hole,
obtained
that Of
steady the
cmm&nd d u r i n g t h e w h o l e y e a r .
lo ad is of in the the fa ll.
course
p e a k oi
Mow a t a b l e d u r i n g the y e a r
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rediscounts
and l o a n s Ohio
shows t h a t and the
the
country
b a n k a up t h r o u g h
•o
W .S .
Row#
4354
•M tirn of
part
of
Kentucky,
p a rticu la rly loaned
i n Ohio
and at
sorss p a r t *12 tim es
Ind iana,
h a d a o r e 1 0 nay borrowed* of the
in C in cin n ati
th an others
The S e c r e t a r y what the d istrict Mr.
Treasury: fo r the
Have y o u any f i g u r e * R atio n al banks of the
shewing en tire
r e d is c o u n t s were at the peak o f Ho. of the
the
demand?
Rowe:
The S e c r e t a r y en tire Mr. e n tire d istrict? Rows:
Trsasury:
The
R ation al
banks c f
the
The r e d i s c o u n t s
of
the
N atlcn al
banks
of
the
d le trlct? of the Treasury: Yes.
The S e c r e t a r y Air. R c w e t Wo.
The S e c r e t a r y the
o f toe
Treasury:
You c o u l d
get
that
from
C o s p t r o lle r 's Rove: Yes, it
statem ent. Mr. Secretary. the day le Woul£ over? We w o u l d the lik e of to havs the it. you l i k e ue to get it
M r.
and p ro d u c e
before of the
The S e c r e t a r y We wo uld hero M r. lik e to
Treasury: idea o f lo c a l in
h a v e eome in tbe
excess
supply
over the Ro*s:
demand The
d le trlc ts. d istricts the wfcwn the
redlecou nts were
ths and
h eavleet
redisco u n ts
shown,
am oun ts?
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and y o u c c u l d it tc-day. that, lik e euch to Mr.
to ue l a t e r , Hr. Rowe:
Im possible
Tee. of
Have a B e i c r a n c u * the ae It Treasury: is
made , o f
Baxter.
The S e c r e t a r y som eth inj, aocut ticn the of ae
We s h o u l d to set
know
fa r
p rac tic al that
Inform ation, in th le eec~
in d irect
rediecounte We f i n d
t h e b a n k a do
the
country. of the
t h o s e m et h o o e a r e and a r e tc not
p racticed i n the That la
i n many p a r t e statem ents of
the c o u n t r y , n a tio n al
re fle c te d
ba n k a
the
C o aip trcller. are
accom plished ■ore le d g e the fa m ilia r of
by s e v e r a l m eth od s t h a t eitn t h a n me a r e , lik e but
you b a n k e r s if we c a n g e t it, becauae
perhape
eozse know it reflec ta
that,
we s h o u l d
to have
desand. Rowe: to It la becom ing very ago, much l e e s or p rev alen t than age. It
H r. ueed It la
be 5 o r S o r 7 y e a r s pretty of w ell
10 o r 20 y e a r s
ge ttin g
etamped o u t . Tea.
Tne Se c r e t a r y Mr.
The
the T r e a s u r y : know i f —
Treasury:
Rose:
I
do n o t
of the
Secretary
Our
purpose
there,
of ecurae
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•C
v . S*
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4356
1e t o g o t at
aa
fa ir lo ad ,
an sc
idea to
as
p o ssib le of tha
Of t h # year. tc
txtrate Sosa of
dsrrand tha a
too peak e e ll
apeak,
banka
secu ritie s
»ith
a n agreem ent It by that
b\y
there ba c k a t and
certain they
tim e,
and a c c o m p l i s h
aethod,
so eetlses
do I t
cy n o t
e n d o r s in g the
pap*r
th saa^ lv sa,
and h a v i n g
tne D i r e c t o r # Ur. aDout la Rose: it, if
o ffic ia te . So f a r as 1 knew, «o it f a r aa and I think C ity I is knew s o m e t h i n g concerned, as I there
not a l l , none of
th is
p ra c tic a lly
in C in c in n a ti, h a v e a man t h a t tr.at have is
so f a r
know. tha and
H o* o c c a s i o n a l l y country, and
we w i l l
has cose
up f r o s bank,
any one w i l l s they w ill
r i c h e r than h i s demand,
sosehow or o t h e r come it to i n and the
a heavy
and he w i l l and we p u t
p u t up h i s of the
own b o n d s and s a k e bank, ana he l o a n s of it. ths
a lo an ,
cred it
them h i s
bo n d s a n d
cred it traat
and makes t h e that
deposit
Tou c o u l d bank, *here
scarcely it wae e n t i r e l y but where it
ae a re d isc o u n t act of the of to tha it is
for
a vo lu n tary he made t h e is not easy
man w i t h h i s the
own s e c u r i t i e s , w ith h i s
deposit alw ays of
secu rities lin e *
own b a n k ,
draw the
The 3e c r e t a r y le concerned but
Treaeury:
So f a r
as
our purpose
now, ths
not a q uestion He w an t to get
of t h a purpose o r t h s
as correct
ao tivs,
effect*
an Idea o f
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ec
W.
8*
Rove
4357
the
extrene
demand upon
the
d istrict
fo r
lo an able
fu & ie,
as
possible* •
H r. it
R o«e:
I
think le of you
my a n s w e r t h a t t ft u r a i a l i t t l e
correct.
o r none
or
in C ln c lt m a ti T\e G e c r e t a r y
A gricu ltu re: say
So
f»r
your
kno^led^e hava l a i c rout,
extends, ie
sh ould of
your d i s t r i c t of ite e lf, U%t
ehicft you
capable Hr. Rove:
t-Jcln^ c a r e Yes, sir; *nd
l*\ a e t r i / i ^ o n c y ?
pur^ oe*» t h a t there w ith d o t ten the it lin e
fo r
at if
the in
^outh
an’ of
T tc r t ^ s e a ^
vae put
idea were thou&ht
*r.y to
i i visio n
of
the c o u n try which f r c « the south
wa a r.ad# or f roe
>*
sdc* a n y or
territo ry
the tieaiy cculdj
cotU a
couthe^n crop » O T i a j d i s t r i c t , th^re tl a t th li c o «* vu ni + y , and v a r i e d *3t;i lin e s
some t e r r i t o r y its den sity
he a d d e d la tio n t ? .fcj* o a r e
ct' p o p u —
cou ld
la r*e or.
cap ital
of a c t iv it y ,
The S e c r e t a r y throughout rai.irvaa in th is
of
t net ? r a a » u r y :
To
b*t
extent It,
co
tho
;rnks
d istrict,
an you p r o p o s e
fceep t h e i r of N ational us
C in cin n ati? sho»M* t h a t to
The C c w p t r o l l e r • * ycu h e ld , 0C0. reserves Sot,
report of ether iive
O ctober ~l& t
b a n k i asiount i n ^ i \mu o f nl ths
$13,
c a n yon
*n
frc « oal&nces
number o f
banks ar#
In the or
differen ce i ro* which
states, those
h t : e r, 5 r a ^ i r u M
i^ru n ,
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60
V.
S.
Rowe
4358
* e r 3 drawn?
Ur.
R c»«:
Ta«. of
May tha la
I
apeak o f
that Tee.
*ap
r i £ht t h a r i T t h e map?
Tha S e c r e t a r y M r. Rowe: by
Treaeury:
Ie t h l e
That
a aap ?e
ehowing a e c t i c n a l re a lize ! that that
co rreijo n d an t we c c u l d ha a , ths get a
rela tio n s lia t not eo of net
count le e . the fo r
w hile
a ll taea
bank, a c c o u n t a the various of
C in cin nati in
we c c u l d
other c i t le e
d le trlc t,
*e found
a aethod
draw ing th a t
aap t h a t of
we t h o u g h t la et year, and
would
ba f a i r . naned
*e took banka
t h e Bank D i r e c t o r y thera
have only C incinnati d ia trlc t
In count le a or
that
thought
th eir in the in the J
corra^pendent, au fficien t
any o t h e r to
correspondent
of
iaportanoe tha
h a v e t h e a named ia fraa It the
d irecto ry . Taat ia f a i r w ell
In o t h e r w arde, to evary tc the city
lia t
d ired tory •
in the of the
8tate. varioua of
ahowa we run aurrcun ding In d lan ap o lia, and
pretty us,
centere in
st-tea
and i t
ehowe t h a t C levelan d , into Weet
tha caae
L c u ia v llle ,
Ccluj«oua, not
K a a h v llle, V irg in ia , of those
K n o xville, bat in the
Chattanooga, p laces
a * inucr
I have p r a -
vio u aly
m entioned,
each *he
c a n t a r a h&a a n u & b e r o f around it, and t h a t each o n e
co r r a a p e n d e n t a w i t h of t h o ae c e n t e r e bueineee
d ia trlc t
doee that
an d any
c l e a r i n g f o r t h e i r own d i a t r l c t , Ohio o r coaaa in to /th e ecuthem p a rt of
the
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
«c
* .S .
Row*
4 3b9
Ohio
coxes
ao atly
frc*
them d i r e c t l y fo r ite
into
C in cin n a ti.
Each
one o f
t *ose
centere of
clears
immediate d i s t r i c t . extent aro ycur re-
The f e c r - j t a r y l a t icns exam ple} intim ate
the
Treasury:
Tc what takin g tbe
slth
In d ia n ap o lis, do
In d ia n ap o lis its
fo r
where does first, I
In d ia n a p o lis ban kin g
O u lk o f
business?
•
»1 1 1 s a y Hr. Howe:
busin ess. to see t h e i r I think flg& res first to answer business the
wo uld h a v e
t hm t q u e s t i o n
in te llig e n tly . hu t the the
ta a lr
goee to C h ic a g o ;
business grain , of
in a l l
those goes
counties, onj
farm in g com sun itlee, another, o. t.rc u h
course, the
way o r
C in cin n ati the of grain the
o r up t c ia
lak es, and
o r the C n icasoutheast. fo r In I
Of c o u r s e ,
movement
east
Tr.j S e c r e t a r y stance; are
Treasury: with trade
Tak e
L o u isv ille , every
your r e la t io n e re la tio n s Tee; larg e, of and
L o u isv ille relatio n s?
Intim ate?
mean b a n k i n g Vr. Rowe:
an d o f both the
lon g ways,
standin g, noth
and t h e
d a lly L o u isv ille . and T e n n e e s e e ? in p roportion
amounte a r e
f r o m and t o K asb v llla la rg e also
Tc*e S e c r e t a r y M r. to Rowe:
Trsasury: they
Ann are
With
M ash vllie
these
oth er p la ce s. of ths Treasury:
u p o n the
The S e c r e t a r y
M r. Rowe: It
At
siae
Chattanooga?
of the C ity . Of ccuree
depends
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ec
* . 3 .
Rosa
4360
C incinnati to-day, tory a ll it and
b u ilt it
the
S o u t h e r n Roa
at
Chattanooga, in
and e « n »
it
ha*
baoc which
in itri# a n tal hae tinea
b u i l d i n g u p tfcat in
tarri-
to the
South,
baan used
b r l n ^ i n # up asount to of
tha f r u i t s
and b e r r i e s go t o
and v a g a t a b l a s . by aatar,
A la rg e coiaa
which d o a a n o t fro a
Haw T c r k states.
diract
C irw lm a tl
a ll of
those tha
Tr.s S a c r a t a r y Chattanooga Mr. Rowa: and
Traaaury: kasp la
To what
extent in
do X a s h v l l l e , C in cin n ati? th a ir bm ke, fro a
K n o x v ille it
th air
reserve*
Of couraa
im possible h*re,
f o r m* t o hawa several * ^t of tha
i igu raa. with
Tfcey k ee p f a i r banka,
raaanrai
tha d i T f a r a n t
and on o c c a a i o n a
currency
C in cin n ati• Tha S a c r a t a r y b an k a k aa p the central th a ir of tha Treasury: Where do t h a C in cin n ati thas between
raaartaaT c itle e ,
How do you d i s t r i b u t e and in about th a t
reserve say? I
p roportion ,
s h o u l d y ou Mr. Rowe:
ehould
say
tbat
Hew T o r k had t h e
la rg e st
bfeljknce*
The 8e t r e t a r y H r. be i n * Rowe: d ivid ed an;
of
the
Treasury: fro a 3? t o and
What p e r c e n t a g e 40 p e r o e n t ; 8t. in L o ris ae the
about? rem ainder reserve la rg -
P robably betasm
C n ica^c the
central gettin g
citie s,
fre q u en tly
balance
S t . Louie
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
bg
W.
s.
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4361
er
t h ^ A t h e C h i c tf c ,
becauae
it
la
h a rd e r to acve ccat there a ll* on l e w
w ithout
coat,
v
e x c h 3 i ee I s
h a rd e r to * c f e
w ithout
than Chicapc It does n ot fcr is in
is*
T h a t i s s 1h t 3y a t r a ’ e r t l i t i c n , t h a t i s a n y th in g Mean/except & trade r e l itic n . Exch ange
York,
ln *t~
an eeie
at
a greater or at le a *
premium mont o f t h e t l a s t h a n i t
of a discoun t the ** #. Treaeury: Act Whvt e f f e c t haws at other aeascns,
jChiaago,
and * e
can
trade tore
cor v e n i e n t l y o f the cf th is
The S e c r e t a r y the ^ rovielcn a
do y c u t h i n k on t h a excaan^s
are going to req u irin g Banka?
S itu ation ,
and p r o v i s i o n s
ths p a rr in g
o f sxohangea
between th e se F e d e r a l H eaerve Hr* 7*owsx W ell, it w ill
undoubtedly
sake
a great
d ifferen ce
re would bs icunts ly r e a l unts
no r e a l in any
r e a s o n s w h y we s h o u l d k e e p of tns central reaerve
any l a r g e or
c f roney
cities
r e a s o n why o f wo ne y in
any c o u n t r y a city .
ba n k s h o u l d k e e p
any l a r g e
The S e c r e t a r y su it d,
o f ths T reasu ry: The preaent s y e t e w h a s 2*r„ e o f course, in a v e r y / a r t i f i c a lly l a respect h s it not, Vr. Howe? I rean tc eay the
cf creat-
oee s e t t e r s ,
ion c f t h e s e c e n t r a l
reserve in
c itie s, those
and t h e n e c e s s i t y cities* in those
for
eer>imr e x c h a n g e b a l a n c e s Mr* Ho e : It has
concentrated
cap ital
places*
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W .S .
Howe
4362
ur.que t l m a b l y ,
and it
is also n a * - t l y t h e camae o f t r a d e s
being settle I by excliinc« cn tho3e central reserve c i t i e s ,
^y c***; t u . g i le®ar.d and u s e for then a* such*
The Secretary o f the Treasury:
tfsaervpa
The resto ratio n o f t h e » e
under the to
of t h e banka tc the d iffe r e n t c c s a e i u i i t i s a ,
cught t o create
o cn diticn e prorosed by this b i l l *
norm al Mr*
a return
c o n d itic n a , H o >e:
W ell,
ou&ht it not? the c o n d i t i o n s now w i l l
4C ora£0 years be v a s t l y d iffe r
ent # r o «
was
what they * r * - s
apo, when t h e A c t
created. o f the Treasury: Tea, but ppeaking o f the
The S ec fc w t a ry p r e *e n t A c t . Mr. Ro*e:
Oh, yes,
it
w ill
aake a great d i f f e r e n c e .
if I
Ws
have,
sh ak in g
for o « r or?n b ^ n k ,
n ay ,
just f o r a a i i n u t e ,
perioda fo r the
we h a v s
1 ars^e t r a n s f e r s They c o s e
t o sukke a t
season able
ra ilro a d s. or
In f o r
flOC.OOC cr
c r # 1 T O #COC o r # 3 5 0 ,0 0 0 ,1
to u t hundred
lam e
rs
cua t o n e r s
core f o r t h r e e
at
thousand law , as that thes c xc h « ^ 9
d e ll th~re in
on Mew T o r k ,
would
s ties* Aa I *7 aoire o c c a a i m f o r / k e e p i n g I co vld py
ta& d e r st u n d t h s such b lances
Mew T o r k .
/roOto t h e H e g i c n a l account w ith th-nr
Bank
and g i v e such
i s y c*e ok
^ ra 'im t need in
c~r
ar.d g e t la te r, if
as
I
q u a n titie s,
and X p r e e u c e
telegrap h ic
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
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W.
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4363
tran afern
i-e of the
t h it
after
a w h ile
that
o^ur* be d o n e * thie
The 8 e o r e t a r y IdJW w i l l 4c n o w • H r. sade the Howe: have
Treasury: ju st exactly
W # n # *»xehar*£e und r ae H a t i o n a l
eurrert
t,>nk-nctei
Very
l arg ely . fr o m
Of
? cu rje,
there to
is
a . d istin ction und b e t w e e n n
when y o u o r o s s ohecke cn a ban k
one d i s t r i c t checks
of
another,
an d t h e
cne c o s h e r bank
iattH e r. The S e c r e t a r y out of trhe T r e a s u r y : fo r reaerw e What inducem ents are h eld
by C i n e 1m a t i Howe:
balances? b U ce e le
cn w h i c h
Mr.
0€ t u e to pay
c o u n t r y • ank
it
ie
ouetcvery { per at cent 2 per
irtereet, cent at fe w
eji e s t i m a t e le a st cf
th ^t pro bably bal&ncee I \r« tui^k
SC
o t 75 p e r cent
those
here that
and a or e
j.t 3 1 - 2 p e r a e we h a v e of the
ser;t,*
in
je u o h a ~ c c u n t e beoauee cf
and b a l a n c e #
C incinn ati of the I tc
xre h e r e
convenience, t o w a r d thfre that we
becauee o ity ,
and
tr«nd cf *a
^11 t h o s e fa c ilitie s there cap ital >phere o f
com m unities an d t h e hae frcv in fl
because
aerw lcee
render* p*rt of
So
far
know,
b e e n no e f f o r t t^e territo ry
o$ t h e that
th ie beyond of
C ity ite
draw
w o uld be
u sefu l
ence, fr
by e i t h e r
increased of
ratee
in terest
o r the prao—
tle ^ lly
e co lle c tio n
oheoke.
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F•
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4364
The S e c r e t * r y co lle c tio n s Mr, Howe: that of
o f the checks is
T f« now?
aury:
What
la
the p r a c t i s e
about
Tht-e the ec
no C l e a r i n g
Hcuae
ru le
on e i t h e r exchange
the or
in terest for
banks pay o r th e calle d * It la
chargee
fcr
cel le c tio n ,
cpen c o m p e t i t i o n . And wah t i s the rractice?
"cie: That l o the » o * t o e n t r d l p o i n t , be ccu ld/acat e t a l l y T e a c n e d by r a i l r o a d s
••o t lc a *
The S e c r e t fa c ilitie s thcas• *-y # f tas of Tre tnoas ury; totc ws a r e the trar^&pcrt \ t io n
and a l l
fe atu res,
fasti 11 * r w i t h
Mr. Ho j
s
:
Tou
\rs t h r o u g h l y f a n l l i a r s l t h
Tee,
tho?;T
Ths S e c r e t
^y of t h e T r e a s u r y :
b u t ae ths fiaaitol 4 you t c addre>s y cu r^ «lf i
and t r a d s p r e — # * i n e n c e , we w c u l d l i k e
tc it t h *t# and as t o w h y , b e t t e r than any e t h e r o utelds city in of
a c c e e a lb illty , e n tire
you c o n s i d e r fo r th is
the
d ia trlc t
ban k •
Mr* Rows:
Taking ths 8ta ts of O h io ,
our s t a t i s t i c s
ahow
that a l i t t l e over one h * l f of ths Matlcnal banking c a p it a l and surplus In the State la ecuth o f a lin e drawn eaat and vest acroas ths n id d ls s f ths S t a t s ; banking o*plt i l jnd a u ^ l u s acre than h a l f o f ths that 1 1 n s *
wculd bs south c f
O f ths bank accounts —
I
The S tc rsta ry o f ths T r s a s u r y :
_
____
• Where do you say that l i a s Do you &ean
wculd b s , draan e>at and west at what pelntT
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W.
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the
Southern h * l f He e : acocuAtt Tha In
of
tha
State? of tha State. o ity has O f tha r i r i o u « a greataf
Mr* bank
southern h a l f the Ftate, oca
ether
ntabrr
than C in c in n a t i* ef tha
ind— Treaaury: What C i t y ia that? accounts and t h e y in tne ia dc State,
Tha S e c r e t a r y Mr* the the fc r Rowe:
C le v e la n d ;.
They h a v e s o r e
bank
State
o f Ohio iicun t
t h a n we h a v e of clearin g
in C in c in n a ti, of country after
1 irgset the
chocke the to
reason that ry
they
have gone I
bu sin sss. a-;k y o u «i»4 — See, are th is of
The S e c r e t what Mr.
o f Treasury: they h o ld they have tc cut
w e going for
inducem ents Roe:
balances that
W #n,
have g o tte n tsll are.
bu sin ees. charges after
ccur«e, •H it w o rk
thsy w i l l
yeu w h -t t h e i r They h a v e g e n e reserve c ities t he
th e ir of oth
in terest
rates
r citiee ,
and
in clu d in g have
and F e d e r a l
reserve
T
a c
cities,
thsy
undertaken How s u c h
c o l l e c t i o n —-
S e c re t-try tHsy
o f Treasury
g r e a t e r nuaber
ha«e Mr.
that. C i n c i n n a t i , C incinnati hat low ,
i n O h io ? accounts in the 1 d istrict* O hio, 437
Re e : it
h a s 8^7
In 0>*o
Z 56 ■* c o e e n t > .
« r> t h e <JU tn<t
Clcval*_ud has C le v s l * * n d has Tennessee in
: accounts. in
seven
accounts as—
Iilitiis, l
none
in Kentucky, that
or la s t
V irg in ia,
C in cin n ati
Digitized for FRASER and T w i l http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
q u a lify
etatesent
3 a o s s r .t .
W .S .R g ^q
4367
ha#
in
I n d i a n a 173 ‘ i s c ^ u n t i . and I T lriiria , ha# in 43; thi# In Kentucky d istrict,
sa| 38 6 ,
ag a lr^ t
C levelan d ,
7;
*n
and t e T e n n e g « e «
37*
47
to u le fllla
506 account#,
c f whfcah
ar* I a In d ia n a ;
In d ian ap o li# h
423 In Kentucky,
and 37 in Tene i i o e .
480 a c c o u n t s in t h # d i s t r i c t ,
I
all o f which
a**s in I n d i a n a .
acceunt#
ga?« yeu C l e v e l a n d .
c f which
l a a h v il l e ha# 374 and
In t h # d i s t r i c t ,
30 are in Kentucky,
35 4 in T # n a e e # e e «
T cu w ill th t ha# ### frc» that that o f th# C in cin n ati fiv e ia the on ly on#
th# account# o itie # and ec in on, the
in a l l
states.
C levelan d C le v ela
and t h e T oledo th e ir
n o rth e rn p -rt south
c f O hio,
C e l ur b u s ,
do n o t g o We h a v e
o f the O^ic part o f the le
R iver s it h Kentucky trih u tv ry and to
bueineee*
a la rg e
Tennessee
and W e s t Y i r g i n l a
busin ess
that
C ln cln n % tl• lo # taken these list fro# it i# fa ir to state of that 1913. these sta tistic # a ll are of do #ee»
the
Bank D i r e c t o r y other
O f course
places in th#
have
acoounte, p robably in
country a f#w
accounts, cases, but
that thi#
d irectory,
a fa ir
way o f g e t t i n g
at
it,
JU3 t t a k i n g
what t h e d i r e c t o r y
claiae d .
Th# Secret ry o f A g ric u ltu re : You hav# n o t K e n tio n e d a
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
W .S .H o ^o
4366
city
which p ro i)o »# d
% d istric t
tc
ua,
in o lu d lr^
O hio™
P ittsbu rgh . Mr. Ro*e: Oh. A gricu ltu re : Pittsbu rgh w as v e r y frisn d ly
Yes. o f A gricu ltu re : Yo u h a v e no figu res in th is
Ths 8 s c r s t a r y oon n sotlcn Mr* Ro ws:
f o r Pittsburgh ? lo , nons of at a ll. You e v i d e n t l y h^d n o t t h a t
Ths S e c r e t a r y o ity Mr* say tc in
A gricu ltu re : at a l l , I it
y r u r wind W e ll, Mr.
was n o t on y o u r map* kn6*r t h a t thsrs Is an yth in g X can
Rons: th * t ,
do n o t
Sseretary. of ths T re a su ry : ths existir,g O f course syetsm is where t h e s e a m atter o f such t h s moment c e r t a i n very m a te ria lly upon p r s s s n t
Ths 8 s o r e t a r y accounts
very
ars
under
net at
^reat
impc*~tancs e x c e p t A ll that is going the
rep ? a -tin g to be
ten! und r
rc lss. tne
a ltsrsd scss
it
new A c t *
s,
But
d a ta has
to have
b sarln g
fo r that
Digitized for FRASER c o n d itio n http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
and ws w c u l d
lik e
W .S .R o
e
4369
r e :* e o n
a ll
the d a t a yen b a r # only* these o f the
g iv e n us t h e r e r e l a t e s t c
R atio n al
ban ke
Mr* Row ax The Mr.
!•;
m n i lg Treaeury:
are R ation al State
and S t a t e *
secretary Ro»e:
and R a t i o n a l ?
Tee. o f the Treaeury: Yo u Kay p r o c e e d # I f you
The 8 e o r e t a r y have Mr. tary* p lacee le n t
0
anything: e l e e R o«e: Tea*
to p resen t. I w ill be as b r i e f that ae p o s s i b l e , Mr* S e c r e the a ehare er>-
The b a n k i n g in th le
rela tio n s are
t he C i t y h a e w i t h etan dln g,
territo ry
o f long
coverin g fu ll I
period
during
which t l i e
the C it y it
hae done i t e I think
+ s e r v i c e to the t ^ ^ r i t c r y
M fa in s*7 that of
th at 1*
eervee.
aa
tlre ly that in
there
a pretty
general
fo o lin g c a n be ^ irch every *nd a ll
;*ny c t l a w l t y to fo r *id
^ny d e s c r i p t i o n ,
C iricirn ati y tao o ff
lo ck ed flo o d s
q u ick ly*
W k ll peop le
fflPMVR were out
a year
a g o , when t h o s e
free triert
center p ra c tic a lly . hundreds cf thousands
We h a v e one way o f r e a c h i n g of d o lla rs w ith in were sent to after
C in cin n ati
through
thattertttory at a tlw e
two d a y s
the w a t e r went and c o u l d n o t be p a i d
*1 own,
et
and
when t h e y n e e d e d It to p*y
the aoney
It,
when t h e y n e e d e d sc that the
la b o r,
which had tc soaeth ln g
very
n igh t,
peop le
could g e t
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
b *
w.
3.
n o s t
4 3 7 0
!
to
eat.
I
rmmmm >er o n e
ever
ahipar e n t
in
a
box
car:
we
aent
up
_____ ____
• C ffith ln f
cf cy thee; wae
thf?e
tone
of A ilv er
d c lla n ,
were
o»ef
} I C O « CCC
The curren or
and c u i ^ c u a in there
other w ith in
shipm ent*
aade. a
rushed Help w Le
autoeobllea, every way. I
-1 t h think
pclicc&an. t n c ie
two.
extended
people
&11 know t h a t •
I he*-e y e ire peak alec. to taut The to sake a elifU t
reference
th it oad
tc it
the
etatietlcs taken *e the* to
benke
hare
statistics
hae
collect, *nd the of a the
credit pericd
etatlaties,
statistics
the
load, in
ef
activity, and to tc
the
the v
c r e a t e at b o r r o w i n g
kues cf all oropa, of it That nd
deaande the
? ? .^ io u * tiv e
countries, hare tire the
which
length take fc r /t h e y deal be cf at be carried, ever any
I
eculd cf
rreat
gather cf
*gain.
course,
w culd here#
all
eervice
crganix itic n
th^t The no
cate
Secret
ry
of the
the
T r e -.surys bank the t we
W culd le
no
that
be
true, district?
*atter Wr. Rc
where
reeerre
upon th
Icc^t^d cf get
in
the
e:
I y
It
depende eay
value
the
Infcneatlon. nere.
they
t. v e .
it
eietOy true of
ha ve
any
in f er* it ic n
Yets,
r
in
a
? re a t *
pi ic««. but I wean the i n f e r e a*-
The S o o t e k a r y
the T r e a e u r y :
Bo,
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
w • S*R e*e
4 371
1 1 on y e n l a - ’t raeerve For th is it
of
that
o h i r a o t e r would be where it ie
av a ilab le
to the not?
b a n * no a a t t a r reaeon, if the
lo ca te d , ia
would i t
reaerve
bank
lo ca te d are to
in C in c in n a ti, be d i r e c t o r * -***>
Jo e e n o t t e a a Board.
that They
only C in c in n a ti are it
tec
on t h a t
d raw n r r o » t h e fr e ir
en tire
d istrict, blanks,
they w ould have to the if R~eeerve it Mr. ban k
■ oat*
The 8 e o r e t a r y the seen lo catio n th e-a ie of ef
o f the the
Treaeury:
It
eigh t
eo h a p p e n ,
sc
that
b an k w i t h i n t h e C i t y to be a v e r y Bank. ef lo c a l Ie, I la rg e
does
net n e c e s e a rlly in flu en ce in the
*oinp
lo ca l
d irecto ry Mr.
the R e serv e I
R c e :
had no t h o u g h t cf
ln lu en ce
at
a ll* however,
The S e c r e t a r y of lo c a l that
the T r e a e u r y : in t h e way c f
wae s p e a k i n g or
in flu en ce
inform ation,
anyth in *
•lie the
w ould be e n jo y e d p s r t i c u l * r l y ,
no w a t t e r w h e r e
bank w a e * Ro*e: It would be at
their
Mr.
ee rv lce And i n
if that
it
w a there*
Th e S e c r e t a r y
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
o f the T r e a s u r y :
c o n n e c t i o n we
b«
V.
S.
R o««
4373
n ig h t
ek ycu what vould be C ln o lm a t l 'a
aeccnd c o c i c s
if U t
d i s t r i c t s « « r t l a i d out ae sug gested,
bank*
i f it did not get the
Mr* Re e : C in o in n a t i
In any ordinary t i n e a ,
ae t h ie B i l l
ie drawn
could be prob ibly s e r v e d ju s t ae v e i l w ith a b Bank being put at i M h f i l l e , In d ia n a
o f the bank, the R egirnal pci i s ,
C o lo ib u e , C lev ela n d or alro^t any other Cuty in the le dietric t/ The point ee s a k e /t h i t ae do not th in k the rest o f the d i e t r io t ae drawn would be ae w ell served ae it would by p u t t I n f the head bank in C in c i n n a t i , w ith the knowledge ycu get free the do not e e e , I f ycu gentlem en, thmt we to
sta tistio e
and that you w ill g a in nt ether p l a c e e , eee f i t i t o f ccur e would ch m g e W hat, a ll that*
redraw that d i e t r i o t ,
The Secretary o f the T reasury :
in ycur judgm ent, ^ f t e r C in c in n a t iT
wculd be the neat beet p lace to put it Mr. Howe: For convenience? Tee*
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
w. £.
Po •
4373
th *t when & c r is is cottt ycu hdve c o t q u ick ly .
them
to g « t
tc tho homd I have eeen and I tno* to get toit
Thooo periods do o n e ,
and ne knew —
ooki a nunber of t l * « t In my banking i c r k , i
c a i c
lo
ju « t
then of f ir s t a id tc the I n j u r e d , r e s p o n s ib ilit y q u ic k l y ,
r e t b e r and tike
uid in those c&see
you want tc go to the h e a d . Tho Secret i^y o f the Treaeu ry : O f o c u r^e, w ith the he*d-»
—9
lu srters b<ink any*here In this d i s t r i c t ae ycu eu^cest i t ,
reasceab ly
*c c e s e lb le ,
.md well placed beaneries I n the d i s t r i c t ,
ycu wculd bs In close p roalw lty w ith e?try f a c i l i t y , pirtlculsrly in v i e * c f the fact also that ycu tr^we e x c e lle n t I assuss throughout th le d l e t r l c t .
telep ho nld o o t c u n l c * t l f t , Hr* R o e : Ws have:
The Sseretary of the T r s a s u r y :
|r»p h t *
Ae w ell ae w a ll
and t e l e *
Ur.
Rove:
Tee. o f the T rea su ry : Ws always l i k e tc knew Is, as I t iapcrtajr.ce
The
Secretary
what ths ssoend and th ird choice o f the* e c i t i e s
g iv e s us a lin e urcn t h e ir ideas as to ths r e l a t i v e o f other r l a c e e . Vr. Ro e :
» • took a vote sore than a ser.th ago at cne c f thi and I t shewed a good d eal of
C le a r in g Bouae w e s t in g s ,
Digitized for FRASER http://fraser.stlouisfed.org/ v a riety . Sows Federal Reserve Bank of St. Louis
t
their rut Wsw Tork as seccnd cheloe—
437* * •
P
# He
Ifc*
Secretary
cf
the to
Treasury: ocneld; r but fact to go
1 aa
ape k i n g
of
tho
iia -
tric t. Mr. dc«n Sow The Ycu
Y o u h ave Rove: I
cor.ti^ucue
territo ry . could p o ll not w o pin thea
li n o # , and i n
u n fc rtu n ita lp the to com plete St. lo u ia . Did
to of
that,
n o t made*
t h t t wanted
Secret
ry o f t b d T r e
e u r y :
ycu a e n t i c n jj^d—
L c u le v illo ?
arrka
o f C oluabua I ry tnlr*K of I
xnd I n d i a a a p o l l a , did* I s»e \nt t o .
Mr. The Mr. excert
Hona: Socket Ro~e: aiO rly
tbo lo say
Tre i u ry: net that very in
Tr.u o a y more tho
prccead, ta.vt I
Mr. tc
Rowe. add,
The^c to
ruch
a r nt
show ing
service in tc
C in cin n ati scnths cf|
renders, ths pan lo
and I
think
its
general
repu tation , fro * August to
fiv e
i ln 1907,
In clu d in g by th o
De'sevber s
in c lu in th is
siv e ,
there
w-ta s h i p p e d over fifte en ths
baaka of
ccrreapcndent ii. taa
territo ry , tho
® i 11 l e n s «*eavle3t stra in ,
currency
fiv e
a onths tho
shipm ent* cf
bein g
in O ctober tho
*nd H o v s a i b s r , i n aio lo h
two o c n t h e
£*oateet at its
uid I n
period ie
curr-tiicy w o of od b id ourrsnoy fcr
graataat
p retlu a . c iso
T his by
exc lu siv e md a r u i g * tlw o . sacks Vo In that
fu rn ish ed t
b a n k e r s who king
train *t tho grip
red ia o e w ta , t eany Ons
tho s a o a y Ir w ith
away
a gre
wen who c u e tcok out
th e ir
p srlc d .
Hm itr ,
a * 1 1 1 Son and it in October
a h aX t o f and
ad d itio n *
Digitized afor l FRASER c irc u la ti http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
on.
re c eiv irg
Beveetber,
4375
•e r r e d n o t lie o f ite requlrtBents before tho la s t o f it *a § r e c e iv e d , mil c f it being r e tir e d in the fo llo w in g J a m tir y , February and March. the e t r a l n . The Secretary of the T reasury :
.
It
eimrly taken out tc » e m
d u r in g
To «k kt exten t d id ycu l s t e i
C le a r in g House o e r t iflo a t e e at that t it e T Mr. Rome: We ieeued no C lea rin g Hcuet eert i fi c a t e e , but 1 0 'e ,
in t h e ir etead we ie e u e d C a e h le r 'e check® in 3 ' e t 5 * s , and 2 0 9e • 1 3 ,3 5 0 ,0 0 0 , Those mere lssue.1 tc the amount *cf about and mere used fo r p ayroll purpceem,
and were In
r e t ir e d as soon as the n eo eeeity for t h e ir used wae o v e r . ep e *k lrg e f th ie c u rren c y , the currency mas a l l ehlpped to
marl cue parts o f the d i e t r i o t , mhenever ccr.ditlcnm in any l o c a l i t y game evidence o f d e r le t »d r e s e r v e s , s s s ls t e n c e being asksd by tele p h o n e . fr e q u e n tly the
I am r e f e r r i n g nom a d d it io n a l
tc that m illio n and s h a l f of R atio n al bank n o t e s , c ir c u la tio n , p erio d .
and to the currency me shipped during th^t rese rv es
We mould get a telephone message t h .t
mers s e t t in g l o * in a town an y eh ere, have to have c u rren c y ,
vnd that they mcukd
and it mam shipped out o f C in c in n a t i rut cut in a groat
and that help eae g i v e n , and the f i r e e m iny d i f f e r e n t d i r e c t i o n s .
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
that tbe C ity b nkerg addept t h e i r r a a p o a fllb lllt jv ind have always dene a o , for the t e r r it o r y . the lo cal b nice ehipped a lt o g e t h e r
Ir. the ye at 1 9 1 3 , fo r payroll
nd orcp m o ving purrtoset, oter #40,CC,CC0 of I t s ig h t ir.tereet ycu that over
currency out of the C ity *
f l * 0 0 0 ,0 0 0 vent into the state o f G e o r g ia , between the 30th o f September and ths end o f O c to b e r , •o v l n g p e r i o d . That is r r a c t i c a l l y wsnt to tsk mm some c e ls e * all I bats tc s a y , unless ycu ju a t during ths cotton
A ft e r ws get t h r o « g h # ws want
ths p r iv i l e g e o f having sows o f ths*»s g s n t ls r e n who ha^s cove herr?, w xny c f t h e ir own v o l i t i o n , trend of t h e ir b u s in e s s , ju s t s lr p ly to s ta ts ths a f t e r «e get
and their p r e fe r e n c e s ,
thrcuga w lta tne f iv e sen ws havs m entioned.
«*TATFWTWT OF GECRGK F . M FTFR T E . The 8eo retsry of A g r ic u lt u r e ; rtsideno o end cocup atIc n . M r. D is te r le s George F . D le t o r le * C i n c i n n a t i , O h io ; W ill you s t a t e yrur n * * e ,
p re s id e n t o f tfe* C in c in n a t i Chaaber of C c iw e ro o . Ths Secretary o f Arriuml tu r e : W r. P l e t e ^ l e :
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Whst ie your occupation?
I aw T r e a s u r e r o f the Union d i s t i l l i n g C cs*
b*
W. 6 . H ove G~on?e F . D i e t c r i e .
«3?e
pany S e o r t t iry ef A g ricu ltu re : Y c u know the p r c b l e * we *r e
•M iid e n a g T
Mr. the D ie terie: Tee* C h ajsbe r Mr. 3 e o r e t try, I
m m here
in
b e h a lf to
of
C ln o lo n ^tl w ith the
o f C oK »«roe, that
aiid l a la bein g that
order net aade the cf by
ocd-
flia t
r e p r e s e n t vt ' o n to fo llo w , would I
oeveraJ
speakers
who
are
tyought the
C in cin n ati C in cin n ati
Chanber e f along fou r I
Coeteroe caption s* w ould say
present
o laiw s
flra t,
the
t^ead
cf
ccueree
ie
through
th e Ohio T a l l e y * Second, b jr.k s * T h ird , Fourth, d iv ersified our rec ip ro ca l it re la tio n e a1th the South* o f aaay the confiden ce of the peop le in C in cin n ati
C in cin n ati
a w an ufaoturln g
center
ln d u etrie e* a*i t h l e tak ing d e ta il; ie t h e weaier&j&dur *nd g i v i n g 1 aw g o i n g the shape. It le of th le n o t mj th le in in -
And, In ten tion fo r* itic n three ta lk cf in
ycur t ia e in fact w ith
ycu a l l to file I
d ifferen t alon^
eop les
Q o asltte e* and o n l y
e l 11 h o w e v e r , the high epote
the e a r g l n a l
notes,
touch
o f th le
p resen tation *
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Gecrge
F
.
E lete*- le
4378
Th® Sto** *t i r y Irfo rsa tlcA of
of your
the
Treasury:
Dc y c u p r o p c a e area? in form ation aa
• u
to
give
«o t«
d istrib u tio n
D io to rls: fo u r lo lin e s I
I am g o i n g t o g i v e ju st h a ? e / V * n t 1c n e d , namely o cw o ercla l in po in t,
along
tho
to
why C i n c i n n a t i baa boon g i v e n of
an i m p o r t a n t d iet!n o tio n our vt
and w h y ~ i t
that
tho a l d d l o
Waat,
and why t h o s e t h o d w ith the South tho
•a ttb lla h ln c e n title uo t o
frien d ly
ro latlcn o in
should qu estio n *
considered of
oenne^tten w ith Just proceed* the th is high
Tho S s c r s t a r y i r r* D lste rls: notes take I
tho T r a a a u r y : talk alone in
I w ill havs lon g* havs
spots
an d t h s *n.1 t r u a t
*a£ fIn al I w ill
p reien tet
setcr^n d u i,
not
S cien tists oal oap* and t h e y
drawn logical
®ap, p o rlo d
not
s
f^ n tastia daaen
ssy
when t h s g l a c i a l sorowherw w h ic h in
p laced of O hio as It
acroso it
th o O&lo H o v e r s body
he v i c i n i t y ths
C in c in n a ti, Laker. puahod R iver, tho It
foroed
o f w ater
they o a lle d
I sxtendad up t o ths
oastw ard ly sevsral an a r o a
4CC a l i o s ,
and h a d a w i d t h sid es o f tho
v a llsy e about
on b o t h tho
Ohio by
coverin g Lake
tw ice
a r e a no* it
covered le ^ t ths
E rie ,. that
When t h o w a t e r s woro soon by sought ths
rsceisd , by t h e
fe rtllo they fan -
v a lle y s bsin £
c liff
d w sllsrs, and tho
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
exterm in ated
savage
In d l *ns,
very
b*
Oeorcr# r .
D lerterle
4379
tllity
of tftat f gicn t i J« it d e s i r a b l e ..
T ti* p io n e er
traveller c u e
do«n the Ohio R iver aa the a i t u r a l lin o of
le a s t reslstsfioe, I n fin d in g h ie way « e s t « a r d 9 and th»vs f i r s t t r a l l o of the p io neer were followed by a tra d in g poet be in g located at Fort P i t t , to ulsvllls, at Fo**t H aeer, Ilt c a t c r .e , C i n c i n n a t i ,
" *
r J O ld Yinoernee*
form
The sap of thle g la c ia l p erio d ie in b lu e p r in t sad le part c f the « eve r *n duv• The early e e t t lln g o f C in c in n a t i V i i reft
follo w ed by took lu lt e
and b r^e tr oisport tticn in which C lno lnn n ti
a p«rt.
3te osbctl og e a e the next etep tc octeeroe over the
Ohio R iver* and e t a r t lln g as I t v *y e « e t 9 ju s t n in e years after: Fulton flo a te d the Cl^reont on the Hudeon R iver* the
ffXm m m m r Pew O rleans was b u i l t at P it t s b u r g h , and sts a s b o vt
t r a f f l o beran w ith le v O rle an s* The p op ulation trends along t h is save Ohic T a l l e y * as is shewn by the s t a t i s t i c s ths D hlted States Government, i n the several oensusee taken
^nd I preeent ths eecend b lu e
p r in t in the shaps o f a drawing taken f-ov the 1 0 th C en ou s, Yoluve 1* In vhlch you w il l f i n d that the o e n tsr o f pvpul *t l c *
#
fo r se r e than 1 3 0 years fcaa t r a v e lle d on %ht 39 th toridi a n . The lo c a tio n e e C in c in n a t i is 3? d e g r e s s , 4 a ln u te s
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
B lo o w ln gtcn . A lso st, as I said , lsa st along ths 39th ^ e r l d l ^ n , down t h s fo llo w
ing
ths
saws Ths
11ns o f center on
resistan cs
O hio V a l l e y . it way it is sees,, p vs a of
*
o f Man f a c t u r e , wap,
s tm n ew a s
is
alas
wa^ksd ths
tith is
and y c u w i l l and t h s show
fin d
through two a
center p a rt
o f O hio,
com bination ycu
th w ith
facts
oow<»r<»d by s t a t i s t i c s , waking C i n c i n n a t i but ths the
that not
can rsa o h ths
rad iu s,
center,
on ly
greatsst
p o p u la tio n , arse. W ith in
g re a tsst sa n u fa c tu rsrs,w lth o f C in c in n a ti, W ith in 3 ,7 9 3 ,1 67
an y g i v s n ?>opul t t l c n .
W ithin
100 w i l e s
300 w l l s s ,
6 ,6 7 6 .5 3 *.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
O fo rgi
F.
D l«t«rl«
4381
3 0 0 a l i a s , 2 0 98 8 0 f 9 4 S 9 3 0 ,9 0 1 ,5 1 8 .
W ith in a radius of 4 0 0 a l l a a , W ith in
W it h in 5 0 0 a l i a s , 4 2 , 9 3 9 , 8 1 2 . p s o p ls ,
<>60 a l i a s , 6 2 ,4 1 5 ,1 0 3
Rarly barJtlnf alg ht bs cons ids rod u n l a r Caption 2 , shioh 1 have Ju st s t n t l c a a i , naaoly U t oonfldsnoo oi t a r
ps op l a , when aa point out that in 1803 tha Mlaag Export Com pany aas formsd in C i n c i n n a t i , h aving a ao st p s o u lla r purpoee. Xta o h artsr stataa that i t aaa formed • to try to dosolop fa c ilitie s f a r ship ping g o o d * . • Ani lnol Ian t a l l y , *to 4a
a conventional b a n i l s f b u s I n s a s .■ had th res banka to “ f a c i l i t a t e
In 1 8 1 4 , C in c in n a t i
tha sh ip p in g of g a o l s ,* ana 30 9tats banxs
In 1914 C in c in n a ti haa e ig h t n a t io n a l h a n k s , and truat C o n p an lss, and w ith c le a rin g s $ 1 ,3 * 9 ,0 0 0 ,0 0 0 . Our postal
with a o a p it a l o f over $ 1 9 , 0 0 0 , 0 0 0 , and in 1 9 1 3 , of
I n 1 9 0 0 of $ 7 9 5 , 0 0 0 , 0 0 0 ,
re os Ip ta at t h is p a r t ic u l a r p erio d l a 1 9 0 0 Each
aoro $ 1 , 2 9 1 , 0 0 0 , and in 1 9 1 2 , sore $ 2 , * 2 1 , 0 0 0 . an d a l l of thsoo o t i l l
• f a c i l i t a t i n g tho s h ip p in g of go o ds9 ,
a i d i n g tha f a r a s r , ths s i n s r , the san ufao tu ra r , to b r in g h io p ro iu o ts to s s l « 9 and e n a b lin g a l l of thee to pay a l l l l o n s d o lla r s 1st ops ra tin g s x p o n s o e , in c lu d in g a n ass rags » s s k ly of
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
George F . D l e t e r l e .
4 £8*
p ay ro ll of a B i l l i o n d o lla r *
to aany p e o p le . panice of 1 8 73 * 1B33
C in c in n a t i baa withstood U « and 19C7 without any dins e f f e c t s .
O c n t t n m i i v i b a n k in g ,
ecabins 1 with ths o o rd lal co-operation of ths banks w ith •a o h other through ths e x c e lle n t C ls a r in g Hcuss A e e o a l a t l o * cf i . ich
C i n c i n n a t i , has s n a b ls d C in c in n a t i to w eather ths etenee soss
other c i t i e s , ls s s fav o rab ly s i t u a t e d , havs found so rt d i f f i c u l t to overouse. Vo payroll i n ths O ity of C in c in n a t i has ever been d s f a u l t e d , and ths confidence great. I alfh t in grsat p a r t , that tbt p e p u la t le n o f C in c in n a t i e o u l t t o of fo r e ig n or born fro a fo r e ig n p a r e n t a g e . They of our people Is
haws ad dad not only a r t i s t i c tenperaaent an d m echanical s k i l l but havs i n s t i l l e d in to C in c in n a t i the s p i r i t th rift. of sconoey and j
Savin g d e p o sits and b u il d in g a s s o c ia t io n s and e a t in g s
banks havs aads C in c in n a t i a city of h o s e s , Ths Sseretary o f A g r ic u l t u r e : I think i f you w i l l it e lll juet save
o * i t t h is h i s t o r i c a l part e f your n en eran d u n ,
H r . D iete r l e : preoal
1 n ig h t how ever, deeire to m ention the
r e e l*
r e la tio n e with the ? o u t h .
The e a r ly exchange of pro-
ducte with the South b u i l t up ree ip re o al r e la t io n e a lo n g
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Q«ors«
r. D i«t«rl«
4383
th* Or«iio * n i tb« K la a lt t lp p l R iv e r a , an4 our s * r o h a n t * , aany the* s t i l l l a b u i i z M i i , a t t r ib u te ssrly t h e ir eucoeee to t h *
iajri »ben they took every character o f go«4t to lea They ore a ted by that
O r i e e a * a n l t o l l the a in the aarfce ta •
d i r e s t oonneotion a n i that buelneas in the S o u th , many f r i e n d ly r e l a t i o n s . T h e ir b u * l n * * * wae c o n fin ed a lo n g the o f g e t t in g
l l n e e o f a s t e r n a v ig a t io n , and i t l e f t s fond le e ire
sn d o on t r o ll in s so re o f Southern t r a d e , and as s a r ly a s 1 6 3 # * 9 1 * 0 0 0 ,0 0 0 «aa aaoeerihed fo r the b u il d in g of s 11 ree tly eosth rosd
to get tho Central Southern trade sn d tae They eay that on the evening when thst they had s grand j u b i l a t i o n
ffcu these tern trade *
s i1 1 1 on l o l l s r e ass e u b * o r l b * d , | i s ehlah ths e in d s e s
in our C ity s t t h s t tine mmrm l i t with I t a a * , however, only
thoues nde o f o s n i l * * , snd eo f o r t h . s f< s4 hope, snd ass s o t 1 8 6 9 a hen our —
Tk« S io rtU rjr o f A g rla u itu r*:
~ * s l l * « d # fo r ssny r e a e c n a , u n t i l
11X1 y o u n e t
Just
b ait
U w t,
P lM kM .
M r.
D letorle:
You *1 1 1 s i l o * s e , how ever,
to ■ * * • aose
r e fe r e n c e slnt.
to th* b u il d in g of t h * Southern B a i l road s t t h l * of f 2 3 #0 0 0 #0 0 0 snd to Chattanooga —
I t sas c o n p l*t *d a t a n expenae
from
oo v*rs s length of 336 n i l * *
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
C in c in n a t i
••
o« c r e «
r . D le t e r le *
43S4
^
"•o r t U r y
o r A g ric u ltu re *
I aa n o t
an m e e t in g that
you omit i t beoauw?
it h a a no baa r i n g ,
but baeauao a o aro
vary f t a i i U r * 1 th i t * M r . D l o t e r ie : | ly fo o lin g
Too ara
f a m ilia r with tha ra a l g o o d f r io n 4 »
that tha Pouth haa T o r tha City o f C in c in n a tiT Y ea, and a l e c tho indue t r i a l
Tho Soorotary ol A g r ic u lt u r e : e v o lu tio n that nao taken p la o a . *r. D leterle:
C in c in n a ti haa b e e n a mnmifaotu ring center I t prldee i t e e l f upon the mareeloue growth
fo r many y o a ro .
and by ito fo r e ig n population it haa o id e d o a io n t ie t e and neohanloe to t h ie 6 it y » ao that to-day it oooupioo an im portant The point that i *aant to mn*e that aro oom prleo* in ehculd bo
poeitlom in many b raro h e e. lo th ie,
that tho d i e e r o l f i e * in tere a ta
thooo
in d u etrie e w it h in the Vlty of C i n c i n n a t i ,
oaro f u l l y M M Ida red in D m
etudy of thia q u e e t ic n . f in 1 that
According to tha a t a t la t lo a ycu w i l l
C in o ln n a tl haa many ln d u e t r l e e , aa compared » i t h e t h e r lnduo— t r le o that have a foe o f a large amount, and theoo t o ll a ore—
otory ahloh 1 need not t o l l a t le n g t h , net te b a n
effo rt* m nj one
i n aa muoh ao i t
lo c a t io n oc.r.f 1 n« i t * Acocri-
to any on* or %ny
l* r g « i r . U r p r l » « » .
i n * to th*
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
flguroo that «r* ber» p r e a « n t « 4 an d « •
th in k that
ss
Osergs
F*
D leterle
4365
thsy are o o n v in a ia g , « 1 U
any panics which s i g h t oca# o ? t r th# it ia pan dad ext a
co un try , C in c in n a ti e l l l eu f t m r leee thar. i f ft* In d n e t ric e in large a a o u i t •
Thera it a tab Ia whicfe f o l l o w * in 4»t c c u r e e , which the t o ta l l n l u s t r l t s c f 1 9 1 0 arc g iv e n , •p a c ific lin e s
in
o c e p iic d in tha Census Rapcrte in
which show that theee aan u iac tu re e are
item isin g 37 in d u e tr ic e amounting tc
| * « 0 , 0 0 0 ,0 0 0 .
The Userstary of the T reeeu ry : C in c in n a t i? M r. D leterle:
That ie i n i u a t r i c e alo ne cf
Be c e l l that the M etrop o litan D i a t r l c t ,
in c lu d in g that pert of Ham ilton County which la not a cor porate part of C i n e i i u u t i t and a l e c Wewpcrt across the r i v e r , ths importance
an d the O ity c f Covington across ths r i v e r ,
e f theee te e e i t i e e b e in g in euch close proxim ity with C i n c i n n a t i , mad j s c u l l l ik e you to c o n sid e r that the popula t io n c f C in c in n a t i le approxim ately 6 0 0 , 0 0 0 in s te a d of 4 6 3 , 0 0 0 which aae accorded in the oensue of 1 9 1 0 . The Secretary c f the T r e e e u r y : M e tr e p e llt a n D le t r lc t M r. D l e t e r l e :
The Secretary
Ycu are epeaklmg of the
ef C in c in n a t i?
Tee.
cf M gri c u l t u r e : in i w ith in shat radlm a?
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Os c r g s
F,
Die terle
4 386
Mr. D l t t t r l t :
Y lt h in a radius of not « i o e « 4 1 n ^ tan w ile s You *1 1 1 fin d a table there «n pages in i u * t r i e * ,
fro m t h is b a ll d in g .
la and 13 ehloh 1 t e a ls * th* lapcrtano* s a d X w i l l n *t r*ad t h e * .
of t h * * *
Ia conclusion 1 * 1 1 1 *ay that
th* O ln o ln n a ti Chaaber of Oowweroe preeent* f o r your ccne l i e r a t i c n # the oaptlone under which theee fao te have b e *a preeen ted to you , n ew cly, Oh l* T a lle y , ban**, the trend of oowweroe 1* through th* in C in c in n a t i
th* o o a fld *n o * o f th* p *o p l*
ear rec ip ro c a l r e la t io n * with t h * ftouth, and C in c in n a t i In d u etrlee. in p y ra ald f o r a ,
a * a w a n a f*c t u r in g center of w*ny d i v e r s i f i e d I t had b * * a oar In t e n t io n of p resen tin g theee •a c h cap tio n to be a block of g r a n i t e # a l l
oowpletlng th *
•t m c t u r * .
V* had in ten ded to rest t h is p y r a a ld apon a s o l i d
fown 1*t l o n , — de up of t h e ir c a r e fu l o o n e id e r a tio n by your O o aalttee, cee e n ted , a * i t w ere, by your f e e l i n g o f gocd * 1 1 1 .
a* * 1 1 1 * l l w l n a t * th* p lo tu r * we have eo b e a u t i f u l l y d raw n , and eloee by o ffe r in g to you our p rayer* that * h a t * v * r your c o n c lu s io n *1 1 1 b* 0 thst you *1 1 1 aa tl*fy a*n y. d l**p p o ln t but f e e , and
Me hope that the e l * hundred thousand people
a a k ln g ap M etrop o litan C in c in n a t i and t h e ir w i l l lone of fr le n d e South, S t r t h , Eaet and t e s t , * * y bs eusong the w aurty ehow yoar
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
O ecrge F. D U t t r l a , C fe »rli§ A . H lnioh
4 387
We* i f
X My
file
thle etsoraniuB — We e h a ll read i t e lt h o & r e . Ie e c i t *
The Secretary of A f f l o u l t i i n : Ae a m atter ef f a e t ,
1 have already gone ever i t *
body c o in * to preeent the d le t r lb u t lc n area? if. D leterle: What d le t r lb u t lo n do you neanT Of your m anufactured pro*
The Seore tary of A g r ic u l t u r e : lu o t e , boueee? Sr. D leterle:
the area of your d le t r lb u t lc n of ycur great bu eln eee
I have an id e a there ie etae wap here ahioh
ie t e be eovered by P rofeeao r Hlcfca, bu t I di not go in to that beoauee I fe a re d I eould take your tleee u n n e o t e e a r i l y . Our — n ufao tu red produote go a l l The Seorvtary of A g r ic u lt u r e : and ab oleeale b c u a e e ,
, M r.
over the e o r l d . I nean your d le t r l b u t io n
D leterle:
They are a le o covered in e t a t l e t l o a l
flg u n e e ehioh e l l l be r u m i e h e l you .
PTATTWTWT OF OBARLXS A . KIWFCH. The Seoretary of the Truaaury : reeiier.ee ard o c cup atio n. H r . Hi re oh: Charlee A* H ln e e h ; P r ee id en t o f the C in c in n a t i W i l l you give your n a e e #
C le a r in g Heume A e e o o la t lu n , and o f the F ifth - T h ird
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
••
C harlaa
A.
H i n a oh
4388
U t i c n a l Bank* M r. R in to h : At a M a t i n g of tha C in c in n a t i C le a r in g
Hcuaa A aaoolaticn haX4 T u a a c U /, Daoeabar 213rd# 1 9 l 3 f tha r a p r a a a n U t i v a a of tha Eigh t W atlcnal Banka u n an lao u aly to
raaolvad to r ao oaiaand, to th a ir raapactlva in c t i t u t ic n a
aooapt tha taraa and provialona o f tha Fbdaral Raaarva A c t . B a lia v lo g Cinoixanati to ba a l o g ic a l Fadaral Raaarva Bank, A Coaarlttaa of thraa f u l l paaar to a c t , lo c a t io n fo r a *aa a p p o in t e d , • i t *
to praaant tha o la ln a c f our O i t y .
Tha f i r a t c o n a lla r a t io n of cur C o ealttaa waa tha io n o f a D ia t r io t which »<4ild aa naarly aa p o a a ih l a , ba in harm on j with tha previa ion of tha A c t , rwadlng,-
•That tha d ia t r io t a h a ll ba ap p o rtic n ad wfcth dua ragard to tha convanianci and atatcaary oouraa o f b u a l n a a a , and ah a ll not M c e e a a r i l y ba c e t a m i n o u a w ith or fit* t e a . " Aa tha raau lt of our d a l i b a r a t i o n a , wa hava out— lin a d a D ia t r io t, purauant to tha aapraaaad wiahaa of your oo nalatlng of tha fo llo w in g Btataasany S ta te
Honorable O a u a lt t a a , O h io ,
In d ia n a , l a a t V i r g i n i a , Kentucky and T an n aaa aa. Aa thia D i a t r i o t , w ithout %quaatlcn, w i l l ba a ore than
a a lf- a u a t a ln ia g , tha D ia t r io t
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
o cuid with a a fa t y ba a n la r g a d by
• •
C h a r i*#
A.
B i n s oh
4389
the
a liitio n
of
one
or nor*
sc
o a lltd
Cotton f U t « s »
o r parts
thereof • Th* 5«orotary of the Treasury: Which, fo r in etan o e, so u lil
yon M 2 g « * t ? M r# H insoh: f U 9 or Th* Mr. be, V e il, I sh o u ll *ay a l l o f A lab an n and any O e c r -
tli* n o r t h * rn p a r t * o f th*
the r o o f , How a b o u t M ississip p i? of that n igh t that
Secretary H in soh: ee
Treasury:
l * l l # p o ssibly have q u ite loan
the n o r t h e rn *n d
b*oau*e
a g o o d na ny a c c o u n t s through that th*
down i n
eeotio n , great reney
e sp e c ia lly
Ala b ana and O o o r g la and a cay, and a great le a l of eni^
le a l aov** Thie
o f bn ein *** that any
aovee
lu rin g
o ro p m oving p e r i o d . n il**, or
lie tric t of the
o o sp ri*** of th*
184,640 * q u a r * *n tire country.
5 per
eent
area
1 3 , 1 6 1 , 0 0 0 p o p u l a t i o n ..................................... 13 per o e n t. 1,OOP n a t i o n a l 2,561 Stat* H ank * , • . • • • , • 1 4 p* r cert.
Bank*
.............................. 13 pe r
o*nt
984,366,000 C oabined C a p i t a l £ P u r p l u a ..................................... . 1 0
per
o*nt cent
1 ,7 1 6 ,2 3 4 ,0 0 0
flee Th*
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
coabined A,
l*p o »it*.
.
.
.
.
,
8 per
E xh ibits
B and C a t t a c h e ! . **r* potent fao to r* in th*
fo llo w in g of the
faot*
e *l*o tic n
d ie trio t:*
••
Cos r i s e
A.
R lnto H
4390
F l r e t . A ft d t r a l Reserve Bank composed o f only the R a t io n a l flanks In the D i s t r i c t sould be p o s s lb ls h a v in g a : C a p it a l e f ............................................................ f l l . 7 5 8 ,0 0 0 Dsposits e f .......................................................... 4 2 . 5 3 6 . 0 0 0
la sue of F e le r a l Reserve Hetee L .......................................................................2 9 . 3 9 5 . 0 0 0 ................................................................ 5 7 , 0 4 4 . 0 0 0 D eposits
Loans of
T h is dose not include ad lit!octal U. 9 . Autsori ssd toy the Federal Reserve lo t *
In c lu d in g the State
Banks of the n i s t r l o t . a Bank sould be poeelble having a t C ap ital e f ............................................................ # 2 3 ,0 6 2 , 0 0 0 Depoeite e f Iisu s .......................................................... S 6 .S 1 3 .0 0 0
e f Fbdsrsl Hessrve Rotee
..................5 7 . 6 5 7 . 0 0 0
Louie e f ................................................................ 1 1 5 . 0 0 0 .0 0 0 In our c k i o u l a t U n e we have not e lim in a t e d the fttate Beaks in e l ig i b l e c a p ita l• an d: su stain in g . o n sdlt. Thle S e c tio n s o u l d . slthout q u e e t io n . be sslfon account of not h av in g s u f f i c i e n t
in c id e n t to the evenly d ie t r lb u t e d lemand fo r
lu rin g the eemeral eeasons of the y e a r . It mould be m m ail b a la n c e d d l e t r l c t . on
3 rd:
account e f the d iv e r s it y e f a g r i c u l t u r a l p r o d u c t s , w h e a t.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
C h a r i ee
A•
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4391
o o rn # Uval
tohaooo, h ea p , « 1 U 8t«r»«. o f the f m a e u r y :
eoae ootton a n i
The ( P e n u r y
Have you prepared any sap
ehloh ehove the ro tatio n of c red it demand in that d i e t r io t ? H r . Hina o h : lath in k we have i t . T e e # h ut that le merely the
The Seorotary of the Treaeury: ile&ram m atio;
1 mean have you figuroo whioh »o u ld s i * *
lomanle fo r the whole d ie t r io t? H r . H inaoh: l o , not fo r the whole d i e t r i o t . Could you s e t that t o g e t h e r
Tho fleoretary o f the T rea eu ry : a n i e e n i i t to ue? H r . Hi no oh: I think ee o a a .
Ite production of raw s a te r ia l e , o o a l , o t o .,
i r o n , wood,
eaootrage a wide and v a ried produotion of a a n u fao tu re d
pro duo t o . Vo r o e p e o tfu lly reooaaend and requeet your Honorw
•k l *
C M M ltU t
to 1 o o » t * »
Te Xm ral
It o M n r t
B uU
in C i n c i n n a t i ,
f o r tfco f o i l o n i n * r t a a o n *:le t: Twenty ~Rallroada rad iate from C i n c i n n a t i , rendering; i t p ee e lb le to re a oh
S o r t h , S o u th , Seat and V e e t ,
O ln oim n ati by r a i l from any o ity in the D i e t r i o t , » 1 t h In a m aalaea o f eay ten h o u r e . * H a ll or ourrenoy oan ho oent
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
••
C h arles
A•
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to or fr o * C in c in n a ti
In one n ig h t *a
run*
C in c in n a ti haa tho l is t in c t l c n of h a v in g c o n stru o te i tha C in c in n a t i Southern Railway * *ex ten tin g trcm C in c in n a t i to Chattanooga, a distance (3 3 8 ) M llsa* of Throt Bund rod A Thlrty-<ff ig b t
Thio propsrty ia o t i l l osned by tho 8 i t y # and *• 0 . 4 T* P . R a i l s a y , and la tho soot valua
le a s e d to tho 0 .
ble a s s e t ef our C ity * Our e x c e lle n t telogrepfc and telephone aervioe fa c ilita te s the speedy efcipsent ef o u r m n c y , t r a n e fe r of
fun da * and onsdite • and, C in c in n a ti ie the neareet large o lty to the
o e n te r of population* D is tr ic t
the population o f the M etro p o litan
of Clnalnrvati b e in g n ea rly S ix Hundred Thousand Twenty m il l io n ( a o * 0 0 0 * 0 0 0 ) people reeide * 1 t h in
(6 0 0 *0 0 0 ).
a raJLiue of Three Hundred n l l e e * 3rd* ecu t h e m C in c in n a t i is n e it h e r a n o rth ern n cr a ie located n ear ths border of three great
o lt y ;
8tet*»e* U i i o t In d ia n a and Kentouky, 4 th * In the e e t a v iia h s e n t of the 9ub-Trsasury in
C in c in n a t i * *the Government rta o g s ise a Uio g e o g rap h ical and e t r a t e g i e a l r e la t io n of ths e lty to t *e d e n s ity sf t io n * aad tea ^ l u s t r i a J L aad a g r ic u lt u r a l a c t i v i t y e f the
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
••
C harles
A.
R in so h
«39>
d istric t.
5th.
C in c in n a ti
la & Rettrvt C ity s n i the
oo«ee r o la i o r . ter of ths d ie t riot s e le o ta a by our C o w l t t e e , ysn4 banks lo o atsd i n s u b s t a n t ia lly tvsrp county in tbs d i s t r i c t s a in t a in b u sin ess r e la t io n s with t h is c i t y , many of tbsn have exp ressed in w r it in g a p reference f o r the lo c a t io n o f a Federal Reserve Bank in C i n c i n n a t i , e t a t i n g that the n a tu r a l trend of t b e i r b u e in e e s ie toward thii C lty k The d e t a ile d repecneee w i l l be subm itted in ths c e n t ra l brief* The Secretary e f the T rsae ery : To what exten t have those
expreeelone frou banks bse n s o l ic i t e d ? lfr. Winscht whole Mount W ell, 1 think we aektd each bank in t h ie the trend o f t h e i r b u s in e e e , t h e
d i e t r l c t to in d ic a te
e f currency that they r e q u ir e d , and fro u there they
r e c e iv e d it — The Secretary of the T r u M - r y : l e t t e r a id r e e e e d tcthe bankeT M r. B in e c h : Set on e. The Sec re tary of the t r e a s u r y :
Digitized for FRASER http://fraser.stlouisfed.org/ pro v id in g Federal Reserve Bank of St. Louis
Have you a copy o f the
Tee,
i think we h a v e .
I w i l l see that you
You M y
put those i n , to g e th e r with tha
F®u put i n a espy o f the in q u i r y
C h arlco
A.
K lneo h
4 394
rtply# a n i they nay b« a t U o h t d as an e x h ib i t to ycur testim ony* Mr* Hlmsoh: T h is map w i l l in d lo a ts to your m in i* very
q u i c k l y , tho nnmber of the banks and the r s m lfio a t lo a of tho b u e ln s s s of C i n c i n n a t i . P r a c t ic a lly every county in t h is That in d ic a t e s there
whole d ie t r io t hae a rod dot in i t * aro
one or eore accounts kspt in C in c in n a t i by the banks
lo c a te d in that county* Ths knswlsdgs o f ths mssds and o r s d its of ths
d i s t r i c t , p rsd io ated upon the cloee personal contact o f tho banks s f C in c in n a t i with th e ir correspondsnte throughout ths
t s r r i t o r y , would bs a v a ila b le and of great value to the F e Is ral Hsssrvs Bank, C in c in n a ti i s norm ally an easy monsy n a r k s t , and i t I s ssldsm that any o f the banks in t h is c it y shew s l t h s r a B i l l s Payabls Account or P i l l s R s d ls o c u n t s d . t h is Ths banka of luring
city havs g iv sn a g o d account of them sslvss
ths ss vs ral f i n a n c ia l c r is e s
which have ewopt the c o u n ty ,
and the dlp o eltlo m , a b i l i t y and courage shown by C in c in n a t i banks in s xtsn d ln g a i d to t h s l r correspondents i n tlm ss of fim a n s ia l s t r e s s , account to largo s x t s n t for t h s lr lo y a lt y to t h is c i t y , and of t h e ir d se lre f o r a c o n tin u a t io n
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
C b&rlta
A.
B in *o h
4305
or th#
relation # which haw# #x i#t#d in thm p a s t . of th# T r # M u r y : I a n 91 your b e l i e f the • & # • that ycu ic re-
Th# P#crr U r y
a# that #xpre##ed by Mr. Hew#, not a o tu a lly d ie o o u n t in «? H r . H lneoh: 1 do not b e lie v e
on that p o i n t ,
relieo cu nt or that there ie any in d ir e c t
there ie any p rac tic e
of
that hind in th ia c i t y . The S e o m t a r y or the Treaaury: H r . R in ec h : Vo i n i i root re ii# count ingf
V o# not to ay knovtdge.
Th# bamke c l C in c in n a t i chipped |13,?5> 4, 0 0 0 . 0 0 o u r r .n o / to U io lr o c r n t p e n i t n t * In O h io , In d ia n *, Voot
V i r g i n i a , Kentucky a#4 Tenne###e f r o * Auguet to D eo ee^er i n c l u s i v e , in th# year 1 9 0 ? , aoat c f which wae the extreme ourren-
ch ip p ed during th# non the c f October and Voveabe r , p erio d c f the currency p a n ic . Thi
dcee not inolud#
cy d e liv e r e d d irec t tc th# repreaentatlvee •n t e . (See E x h ib it » . ) On January 1 3 , 1914,
c f our correep cn d*
th# V a tio n al Sanaa c f C in c in n a t i lue la r g e ly
h a l depoelta from e th er bmnke o f # 3 1 , 5 0 1 , 4 1 3 . 0 0 to the bank# lo c a t e d in th le d l e t r l c t .
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
C h arlt* A.
H ln so h .
4 396
The ° * o r » U r y of c o u r s e . H r . H lneoh: Theee
of tho Treaeu ry :
That lo S U t o
eund n a t ic n o l
Too. tho rooult of y e a r * o f poroonal
lo pool to a n
e f f o r t , and alt ee a t t e n t io n to the into roeto o f t h e ir pat rone a n i not 4ae to the e x te n o iw i o f abnormal terse in an e f f c r t to a t t r a c t balan ce* from t h e ir le g itim a te nth. oh an nelo •
The oamoinel reeourcee of the Wotlonml BarUo the larg e e t o f any oity in tho propoee 4
of O inein m ati are dletrlct.
They bad on January 1 3 , C a p i t a l , Smrplu* of
Do pool to t f . « ............. ............ ............................. ..
The N atio nal end State banlte combined h a d : C a p i t a l , Surpluo * F ro flto o f ..................# 3 4 , 9 3 3 , 0 0 0 1 3 5 ,3 1 4 ,6 0 0
Do poo 1 to o f .......................................................... (« •• Kxtolbit K . )
The C lea rin g Hcuee banio of C in c in n a ti tore recently a l l o t t e d $ 1 , 5 0 0 , 0 0 0 . 0 0 crop moving money by the
Honorable Secretary of the T re a e u ry . *e waived our righto to oaao, av a ila b le
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Am eo d id not meed i t ,
thu»
rendering the funAe
to other eeotlcm e.
ie a fu r th e r ev id en c e cf the etablllty of thle
Th le
eo
C harleo
A.
fU aeo h
4397
d ie trio t. Th* * h i p « * n t of « ir r *n o y by th* bank a of C U io ln n ati
to t h a i r oorrtipuivU ntt ia tha p r o p o M l d ie t r io t t e r i & g tha y e a r 1911 amounted to $ 4 5 , 0 0 0 , 0 0 0 . 0 0 , acid J u r i a * tha aaaa
[ p a r i a d , laaaa ta eorruepaadaata aara exten ded a t r t a s m a b l c r a t a a , l a ha ra any « i U tha b alan ce* m a in t a in e d • What
lo
Tha Bearetary of tho Treaeury j
jroa a* an by rtmaon-
I
I
a b lo
ratooT Z would aay along about f i v « par ooat t n r ia i
H r . H iaao h : per l a d .
th ia
I t haa baaa pretty t i g h t , ycu k n e e . between tha la r g a aon«y
In tha exofcange operation*
o a n t a r t , exohange rataa la this C ity aro aot eubjeot to v lo le a t f l u o t u a t l c a a , aad exohange la fu r a ia h a d to eorreepoad-* aata praotlefclly at par a t a l l aatacna « f tha y e a r . 7th. la r g a a t Tho baak ol o a rin g a of C in c in n a ti aro tha
ia tho d i a t r i o t , tho to ta l for tho y o ar b ein g (Boo E x h ib it G .) Oa that polat o f baaa la thoao baak
$ 1 1 9 ,4 3 3 ,0 0 0 .0 0
Tho 8oorotary of tho yreaeuryt
ol e a r I n g e , aa f i a d ao auoh a r t i f i c i a l i t y o lo a ria g a ,
we lik e
to got eee* ocaparlecn* aa a a l l aa aoaa Bow plaooo thoy aa o a t o bo very
in f ora* ti oa abuut thoa*
l a r g e l y a r t i f i c i a l , aad i a eeae o lt le e they aro a la o o t « h o t l y
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
• •
C h arles
A.
H *n sch
4396
• o f and then a g a in they uaea d iffe r e n t f o r bank c le a r in g * w h ile ycu nay state ease up. M r. Rina oh: tin e , There are
a y *te a in every c it y of ite ae * eo that
d u p licatio ns
th* anount t h e r e , *e co uld l ik e a t the
to have ycu give ua an id ea of hoe they are a a d *
The e ettle a e n t here ia la r g e ly i n c a s h .
O c c a s io n a lly I euppoee a oank not n eeding the money, a l^ h t p o s s ib ly carry over the oredit u n t i l tho fo llo w in g day, but
the large banke here have euch a demand upon then fr o a th ie g r e a t a r e a fo r orop novlng noney and fo r shipments of ournnoy fo r varlcai* purpoeee, that they nuet oi neoeeeary
o o lle o t the o r e d it ite n e to supply th«in eitfc the n eoeeeary noney to supply t h e ir correep on dente. That is la r g e ly true. in
I t s c u ld be somefchat d i f f i o u l t to get a l l th a t o a s s . usee.
the exaot fa c t s
Faoh bank eould have to t e e t i f y to t h e i r own
I t n ig h t be in t e r e s t in g to oonpare t h e e e .
C i n c i n n a t i , l l o , 0 0 0 , 0 0 0 ; C lev ela n d — The Secretary o f the T r e a s u r y : I f you sho uld state the
b a e i s upon which each C ity c l e a r s , we e o u ld l i s t s n to i t , otherw ise i t is not worth w h i l e . M r. H in so h:
M M M N
T h is is sin p ly
taken from B r a d s t r e e t s .
V Ith ths oo np letlo n by ths Government and Digitized for FRASER http://fraser.stlouisfed.org/ of the e e r ie s of lo c k s /d a n s now under c o n etru o tlo n
Federal Reserve Bank of St. Louis
6th.
ee
C h arles
A.
H in eo h
4399
in
M e Ohio R iv e r , C in c in n a ti s i l l enjoy a n ln s foot stags
d i s t r i c t amounted la e t year to # 1 0 , 1 0 2 , 6 4 6 . O O . lO th. The Poet— O ffic e of C in c in n a t i ie one of the
moet important in the country, our r e c e ip ts having in c r s a e e d in 1 9 0 0 from # 1 , 3 4 1 , 0 0 0 . 0 0 / to # 3 , 7 1 5 , 0 0 0 . 0 0 0 in 1 9 1 3 . Unit r the provleione o f the V re e la n d A 14 rich B i l l , the C le a r in g House banks of C in c in n a t i formed The n a t io n a l Currency A eeo o iatlo n of C i n c i n n a t i , om bracing: 11 Countiee in O h io , 5 Countiee in Eentuoky, 3 Countiee in In d ia n a . -
A t o t a l memberehlp of 37 b a n k e , the la r g e e t memberehlp in the country un der the A c t , w ith combined c a p it a l and eurplue of # 3 6 ,6 3 4 ,0 0 0 .0 0 «e havs sv sry c cnfld sn os in our a b i l i t y to prove our c a e e , and tru st that ehen a llt h e fa c t e an d ev id en ce are p r s s s n t s d to y o u , your v s r d lc t e i l l bs fa v o r a b le to ue
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
C harles
A.
K ln»oh
4400
T o r the eetabllehm ent
o f a Federal Reeerve Bank In C i n c in n a t i *
Tho Secretary of tha Treeeury : p lic a t e « it h the reporter^ Hr* H ineoh: I w i l l . y e*.
You nay f i l e
that In t r i
The Secretary of the Treaeu ry :
Take the t e r r it o r y of Worth• “ “
j.
.
lfr. H in eo h :
.
.
trade a n 4 hanking rela tio n e eculd he very Intim ate e lt h C h ic a g o , e o u l i they notT H a t u r a lly # Hoe nuoh of that t e r r it o r y
The Secretary of the T r ta e u r y :
e c u ld you eay should go to Chicago^ I f a hank ehould be lo c a ted there? H r . H in eoh : W ell, I ehould eay probably one t h i r d . A t h ir d of It ?
The Seoretary o f the T rea eu ry : H r . H lhech:
One t h i r l of the S t a t e . What about In d la n o p lle
The Secretary of the g re a e u r y : ltelef? H r . H in eoh : W ell,
they do a g reat
leal e f bu eln eee e l t h
C h ic a g o , and they lo a great le a l e l t h C i n c i n n a t i . The S ecretary o f the T r e a e u r y : H r . H ineoh:
The Seoretary
Where do they do I t uoet?
* n lcu b ted ly C h ic a g o .
of the Treaeury: If that e h o u ld be true.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
bank? Mr* H if ja h i I hftvt net crt t h o s e
f 1m re«.
Ths 9soret* ry « f
(A t th is
ths Treas- ryi Take W sstsrn C^nttcky*
point «t sap was jr c ^ a o e d ),
Ths 9 i « r e t a i 7 e f the T rea su ry : T h is nap w i l l m l t our ^ u r »
pose.
If
it is f u r r l i h s d .
Cp h you fu r n is h It In t r i p l i c a t e ? is
Mr* Blnsshs T e a ,
I s i f h t say that ths tctal for I n d 1 » r a
• * 1 , 0 0 0 , 0C0 c a p it a l sad e u r p l s i a n d # 3 5 6 ,0 0 0 ,0 0 0 d e p o s i t s , t h st is ef ths M s tin a a l ana Stats Banks, a n d I w m l d say h a l f ef I t , or t h a t map w i l l
t h a t way*
assume nte it
fo r armaments s a k s , more lx d e t a i l ,
i f ycu ~aro to femws i t
Tbe ?«o rs ta r r c f A fr ir u lt ^ r o t & 2 , S C C , 000 on ths H & t i m l M * 1 1 n se h : T h t t is t i l .
I t w euld bs t a k in g o f f abcst
Banks* In Ir.airn a, Ju st ths I! U c n 1
Banks alerts h &?s # 4 0 ,0 0 0 , 0 0 0 c&pltr.l tna s u r p lu s . Ths Secretary c f A * ^ 1 culturex T e s , ab cut $ 3 , 5 0 0 * 0 0 0 . H r. h in so h : T s s . I say
It would
t&ks o f f
The S ecretary c f ths Treaeury* Taka ^ a s t e r n Xsntucky and
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
▼s stern Tsr.nes^oe
, all e f
which is
ir eluded i n
tho f i s u r a s
*161
Charles A* Hintoh
4402
w hioh ycu hart it t b n iiiid t a U r ^ i doubtedly b »?e tore p la o s . llr. Hli fschj I r h W 'U I r o b f M y P ttp h lO ! but I
part o f those M e t l c n t u n e th er
lntlaeatfi trade r e la t io n s w it h M M
eay Piutuoah would **o to S t .
Lo u is ond
tblnlr ths btZcr.cc of ths t o r r it c r y
roc I d vsry ir o p s r ly be in cluded in our d i s t r i c t * *" r • i c r s 'U r y cl* t *e Treas^ r y : » how r.beut L o u is v i l l s T thrt they p r c fo r r o i I
Wo had trrlf.er.rs f r t a sosc s t r c n r poo p is to bs fto m w o tU w it h S t . ?2 c l o * .
Lo uis crnd |& t ia t > a f 4 a s a asfrcaad
What is your ▼Ssrw e)>cut th a t, as tc trhsrs I r u i t r l l U
sho uld err® proparly bo plaoed In ths a r r « jn ^ a t B t of a &ls-» trirtf W r. Rlnssh* 1 N l l f i t would ac ast to ras they ; r e p s r ly b e lo n g i n our d ls ^ .fie t , that I s , ia ths d ls t r i < rt w i h«T*> d o se r lb s d
h o r s „ w hether C in c in n a t i were ths lo c a tio n f o r U w Rse.srws S n k or n e t . bsoauoe in a s iy wnys tho b u s ln o ** o f tho C it y to tho tobasoe w id h w p *o th^t ths
ml
I s s im il a r , ws b o *rw se oleee i n * MftMriB* s f tho so s t a t e s , putrfr.i should to o o & s ld s r e d , :*? c r n w n t o n t fo r tbe» to
«rcw*o f th s lr
I L n il».
'
lia rs
\t W fs ld
*ots S t .
Tbs Seerotsnr of th« Tro^r ry: I nr ti *50 y**u colt South-
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
alM
C hurls a A .
Hlnctoh
4403
^ a a t V ir g l n l
frcw
this t e r r it o r y .
Tour r e la tio n s w it h
Southwest Ylrerlnla arc not intieiste? Mr. Hlr.echs Very lntifFC.te9 wiu I they w i l l heormw
■•re se wh*n the C . C. A 0 . R n ilr c a d is b l i t u p thrcwrti that sectio n* Ths Secretary o f the T r s n s u r y * On the ether fc**»d# you have lxteludso northern V eet V i r g i n i a ?
Hr. H in e o h * Tee, sir*
T^s Sseretary
of the Treasury* TJ.e t sstlm cny w h ic h was at f k s h l n f t a i from f h e s l i & f a&d that!
subm itted i f ths CcfK*itt*s
sous eth er p c r iio a s c f th»t d i s t r i c t , was tc ths e f f e e l
they j r e fe r re d tc be attached to a d i s t r i c t of w h ich P i t t s burg wwa a p a r t , way than l s t t 9 thr t their r e la t io n s are mors intim ate thrtj it would dc the le a s t vitltr.oc tc t h e ir
m u
cust i-ary w u r u
r f bueine s s • that Is t r u e •
the T r e a s u r y ! Ton dc n o t
in tl.la air;J l e t ?
k r . Hirisohi T e a ,
Ths S s e r e t a r y o f
cr "Tseier
in c lu d e
may
jart
Paa*nsy 1 v < n i a
Hr* H lnachs
us,
X c 9 they haws ▼cry l i t t l e Pi ttafcmi v i t as I T ,
ia
fttmmr tl y j t h ia a w ary
e x ^ e f t , « T cm uroe,
there
lar^a s v ^ h e a m
bet^ear. P i t t f K r r r»n d C l n e l w m t l *
Ths Secretary c f ths Treasury^
Crn you
rir* u s any f i <cmree
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al+*
C h a r i® *
A.
H in s o h .
4404
• b o w l n r that? W r. M nsohi I
qo
net the
b e I I e r r * we h a w * Treasury* <sn t h a t
an y
prepared. that ]
Th# S e c r e t a r y ani prepare ee we
cf
Can y c u ^elnt?
In w e etl•ate
fl«u rco
Mr.
Hlnachz
We c ^ n . cf the 13, TroRRurys pa*e 14, The F e d e r a l aaamr e th e r Reeerre thin<*& , Act tha
A c t.* p ro w l*** lilt* rela tl? f tc th a t w hich to yru th# to *ay by
Mem t h e r e a r e * c a #
2 w i l l not C in cin n ati •us p l y th# ef r#ad. But w*
eh euld that
to a d d r o e e
C l t a r l n f H uee O oourltt*# a t B ar eh. If
q^*^ SI on , ana a r k
ycur e a r lie s t w ith
~4t*w «nl*no*, a br i - f
Digitized for FRASER http://fraser.stlouisfed.org/ 1Louis 5 th Federal Reserve live Bank of St.
p c se ib l*,
c f isowcrandu*
*1*4
C h arlce A .
H in ^o h
4406
c u b je e t ,
glrlr f us ycur ldeac e f whet would be tfee proper the a e e n i r f e f thie
A a f l n i t l o e e f ccttseerelal paper * i t M n let,
end alee d e sc rib e tc the Crcatlt tee any paper p e c u lia r
to th ie r e r l e n f end what i t n e a n e , ejna what lt e character— letlo e are, Mr. Klneahs T e e , The Secretary c f the T r e t m r y s u ic a t c by *v’ - «e«tion, And a le e I f you w i l l in—
the f«rms ef nr tee W w
b l l l e e f ex—
rhftnae w* le h yen think can be p rrp crly u ec d by the F e d e ra l reeerwe br*nke ana their branches the Gt«atber b a n k * ,w i t h th*tp funrtior.*
a view tc • U n 4 a r l t l A K f ec f a r ae p c e « l b l e , cf trade, Mr. Rlnechs T e e , Tlic Secretary e f the Treaeury* Or. | » w tic n 1 6 , I t
____ r
10 c f the A c t , Sec-
le prewlded that
•The F ederal B taarv e Beard a h a ll make ~iul proem 1 *a te from tlee te tine r e e i l m t l m t funde and chargee thedr frvcrrir.w the tra n sfe r e f
therefo r s s c n r F e d e ra l reeerwe brnka ana » * y a t i t e de- roticn e x e r c is e the fun —
brM M lec, « d
c tle n « e f a i l e n r i n r h uee f c r evch f e d e r a l reeerwe b**nke, cr nay d e sg ln ste a f d e r a l r s M m functlcrJi, anu m y
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Tal
b*n%
te exor-iee euch tc e x e r o lc c
r it e re ^»lre ce -h mieh ban*
the fto&etlCM c f a cle r i n f hcuee f c r lt e M K b e r b nks. •
*166
Cfcj r i c e
A*
Hi
feh
44C6
C X t a r a f Hc v m of fun ds
as
tc th«
thi
proper
cK- r
•
tc s&ke
fo r th *ir
tran o fo r ^r&r«^bes9
Isiv e tn
Ftosrtl th* the tho
retenr* d istrict
bar.Vs w hich ycv tc tc
M o ra alac
p a rtiru la rly
m
rith ln bo of
*u ***ao t,a»d «*c lry to
t c whf t tho
»o »ld ^ur*c*«
boot n a r b it o r y Aot In roopoet
•fftetn P ti of
'■ylof-ranoe nmmbwr b t r > r . #
rtbookff b o two a n b r n > * Kr* Rlttech s Thot y f « cf
titd
♦ h o i r br*nrrhee end tc H rs Tea; or la tart by tho
* r n t us
Tho f l o o r * V a r y If p o e*lb le * Mr* The in H in *ch:
toy ftjny d o p e s ! ".or i n rl •rra Ui-ra unda tc
an y e t l s e r F e d e r a l He o m th* e ra -it of s* id
depo eitcr
b^.nk o r member W . k , p ro h ibitin g a Incurred rid tc
H ft h lr * * b o ra in
cu rtain ed
a ha 11 bo
o ottf* true d a o aotual or or
-em ber bank f r e e
o h are ln r it a fu n d -,
exp n e e -xeh w ifs
lr, m e l l o o t s r , sr enu i to p a lm s*
re a l ttir.^
T b s Forte r s l
Reserve
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
&XM
C h a r i# ®
A.
H ir««h
eh' 1 1 , W r
by r u lo ,
fix
th# cht r^e t tr be o c lle c te a by the —
^u ik t f r « * it s petrcne whose ohcsks art e lt & r t d thrcu*£i rtterrc b*n> and the ohnr^D which nay be 1 apeaea
he 9 » 4 « n l fer
tbi u n r i o s
e f e l e a r l c f cr c o lle c tio n rendere<i by th# b a n k .* '
s u b je c t ie r e l a t e d and I n t e r — r«l-*tea# nud
f»4«r 1 re te m
The t ^ h e l #
i f yets * 1 1 1 e c n e iie r the whole problm i ae pre ren ted by theee
twe e l- v e e e , a&ii tni \ibrlt wsy riewc ycu h*re|pu th a t r o b j e c t th* C e n r lt t e e ^ 1 1 1 be ^ln 4 t^ r e c e iv e Vie a .
^r^rtlOK*,
M r. W
eeh* T e e .
cf the Treasuryx f t w i l l be f l l * Th^rk veo
T* e S e c r e t r r y Mr* K l r .f d u
nTtm cnrr a * t .
H r*A R D e.
The Sacreti^ry
the Tre?*u ry i W ill you etate yrur r * uae,
r e e lie n e e tr*.i occupation* Mr* B le a r te t M* t .
C iu a , C li. 5 i r jM t l .
Kdv«re<| P r t e l t e i t
f
the Bualneee Mon* 4
T -.
*«cr«tarr
ef
t>M T r « R « * n r r *
Tc ®*y
, rc o ««i.
■r. M n r t e l hri »sU ,
M r. S t m t e r y i I ' t X teuU lik e
U
r a l t m t * «tet!
tc f l l o t h l » > r l « f * l t h
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
*13T
T. f,
Edvards
4408
your S e c r e ta r y , and e booklet her* d e s c r i b i n g Cine lime tl and glvir«v irto fa o tt o m e t m i r .? i t , •h o e that C lr c ln n e t i i t end I w culd l i k e te e a y , te
tha l a H c ^ l C i t y ,
that we « ? x u f a e t u r « eor* ^ h ie key
■ere p la y in g o a ria thwr. roay c ity In * » a a trs b e t t l e e , axu ucra j a i l n . It
the w e r l d ,
The Secretary ef the Treaeury* are l i q u i d ae ee te*? We heard m m except ae tc the play in 7 c r^«** l a t i n g te tha **istribu t i m
lo your view that thoee 1b frets. L c u i t v l U e
e le d la r cl
Hrve you any *iata there re cut th ie
ef ceesfcditlea thrcu
d i s t r i c t , to an * fr < e C ln e im sa tif Mr* .t4irarda! S o , except aa to our d iv e r a i f le d ^a a m fa c t u r in g oetfc bllefcaw tet T!.e Seorotary c f the Trsaecry* How about y ^u r t e r ? a n t i l e
• ftt^ll
Ur.
trcde in flu e n c e wcula be c f value* ths C cunlttee w i l l receiv e i t If
you hav 1 not auch d a t a ,
you v i l l prepare i t aa&u fcrwiMra i t te Wrehlr^tor^* the el t ie * we have had ooapealte rap e
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Ir* eeaa o f
alt*
H* D.
Sdwarde
4409
presented t h e v i n f the ip h tr t of trade In flu e n c e ef thcee ol In e fwLe-ew«y e t y l e , fu rth e r w a y
fr o m the
d in ir ls h ln £ # ef ^ c u r e e , ee yeu ®*t c en ter, uiu thoe« nape -cula be e f
r l « e 9 aiu i f yeu 5 mi Id supply them, we shcmld like t « have
t h f lit
H r . Euv&rdst
I think we ecula*
Tne Seoretary o f the Treaeurys Hay we le e k f e r that by the 15 th e f H arsh , eay at the outside? Hr* Edwarus* T*»«* T>ie Secretary e f the Troi- uryx Haye ycu a n y t h in ? a le e you earc Hr. tc e o b r it ? tdvmriai I c t M r r furV-ser*
The 8eeretary o f the T rea eu ry : f t r e f e r to J e b b ln r h c u s e e , e f eouree* T at le a wery reed Index* Hr. Edward** J o b b in g r a th e r than mrmuf a *~turlng?
T..c Seoretary e f thi Treaeury* B e th , h u t I eay J e b b in ^ ae w ell ae r e t a i l h u»#e* H r .M m r i e :
( 8 t r t rne nt
X w ieh to f i l e
a statem ent, r h ie h le ae fc lle w e a
file d )* F o r c e fu l Facte*
fU n elu ia U
i^
the lar^e
o ity to the center c f
population*
*
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
* 1 «
W. B.
Edwards
44 1C
Canter or the s a r k c t , 7 6 9GOC,OOC people*
b e in g w it h in E4 hcuru or
U n i tod I U U t # » i t h M t r o p e l i U ^ popula t i o n , M i t r U l n f to tho U U i t census b u lle t in o^ 5 6 3 ,3 0 4 .
More f r u i t e end varetrb loe are ehippea t r*^urh tbe C in c in n a t i f il e v t y than to *ny eth er » r r k # t t exoej^tinf only Bow Yo rk. ■»e a greater v a r ie t y o f f a c t o r ie s th- n *«ny e th er c it y in tho e c w t r y . Center of the lart’eet s o ft eoal p r e d n e in f f i e l d s in tho w o r ld . Bee the lare o e t trap facto ry in the world* l e r u f tho world in a » ? h lr e t c c le . beck— the e am ife ctu re etnd m lity of
Ranke f i r s t a ls o in the i&anufaoture c f a c i d s , caeea, fio lu m e i e a l saoh in-rry . L e a d i n * market in ole thin m. Tie in stru m en ts, p r i r t i n r in k s ,
lau rary
tho country fo r modius*-prlewd
l r r ^ i s t center of heurdwocu lumber i n ti e w o r ld . the w orld in tho arnnuf a ^txirn of weed— *rorkin*
Loads eeeM nery. Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
1*
*411
Klsards*
H * s t h s l a r g e s t a n l ex at I n t he w o rld *
cob.* l e t
e b o t t le factory
Leads the w o rl d Ar. the u ^ n u f a c t u r e o f Ar i s e n and omsui*set % 1 iron* Has the l a r g e s t f a s t e r ? i n the w o r l d devote d exclusively b e wo rl d/ Hae t he l a r ; e * t tan ne ry w n i s r cne r c o f I n the w c r l i . Has the l a r g e e t l e a t h e r s u p p l y h o u s e , harness fa c to ry . Ha* t h s l a r g e s t trunk f a c t o r y i n t h s U r . i t s i S t a t e a . the l a r g e e t to ti e a M r u f a c t u r e o f w a s t i n g saaahinee* the l a r g e e t o f f l o e f u r n i t u r e f a c t o r y i n the
C i n c i n n a t i o o n u f a c t u r e e more p l a y i n g c a r *e than any c i t y i n the w o rl d * Hank* t h i r d i n the man ufacture o f e l e c t r i c a l It i e a r a ^ i i l y crowing a u t c a o b il e
mlc'
STA Tam rr o r F R r ^ R ic x c .
Ths *scretary sf ths Trsasury* rsaiJjnce sa4 occupation. Ur* Hicko:
h ic k s .
F ill ycu stats your name,
Frelerick C. Hicks, Italy rjity of Cincinnati* Stats what chair you occupy*
•
T ’S eecret ry «f ths Treasury* Ur. 3lcks:
Ths Chair of Economics. I f you s ill bs good sncugh
Ths Sscrstary cf ths Traaaury:
to give us any new light you can cn V i s subjsct, aye i ling repettit cn of ths facts which have slrsedy been prssentsl* as far as *ractioabls, we scull bs glal to hsar frofc you*
Ur.
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H ickss
I
a c c e p t s ! th s i n v i t a t i o n o f t h s Ccajulttss to
Af
Frederick C . R i e k a .
441J
appear before you, largely because I have bad the privilege ef working with them in selecting thle material, and I would like to get any adHttional light that you nay have to &lwe ae to what further arterial you deelre* I ^ave been
li etening to vlat you have haA to eay, and X wculd like to know ae to the length of time that we could get up &nyV%img of that eort* Of course ^ work in connection with tl le
Feteral bank oattar has been the getting together of tM.e data, and X understood frost the states ante that ycu gentle men nade in Chloage, that you were to read this feta. I t it wee not too voltsalvv cue, and X have asau&ed that part of thle argument that I had to offer would probably be offered to you through that brief* The Seoretary ef the Treeeury: theee figures. We shall of course, analyse
It ie impossible to give then very serious
conei foration when they are read and thrown at you in volume ae we get them at theee hearlnge, but we shall, of course, eeneider thoee things wary earefully* Mr* Hicks: Ir preparing this brief, you gentlemen have asked
some questions here as to the industries and magnitude of the busineee at Cincinnati it *e2f« In sorkin?; up our brief, we
have laid special etreee on the question ef the eervice which
Digitized for FRASER C i n c i n n a t i http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
oculd renter to the surrounding
If
F relerick C . H ic k s .
4414#
territory rather than u^on tha extant of ita own intuetry* For instanoe, Z think I hare only a ccuple of pagee own brief aa to the extent of Cincinnati1* own ln1ustry# and ^LLite a goo! de*l aa to the fao ilitiea for coueaunicatis* between Cincinnati end the surrounding country, trane^ortati on and the ooesaml cation and the varicue evidoncea that go to ehow that Cincinnati wculd be a nom al center of a 11 strict,
I
i f auoh a lietriot aa thia were established* I think perhaps I ought to aay with reference to the lietriot, aa it ie out 1ire 1 on the c j^ f
boundary ef this
j that the data we have gathered here haa been practically ef necessity, or at leaat ccuch of i t , gather el on the baaie ' of 8tate linee, inn—aish aa it was not possible to get much of it on the basis of County lin e s, an I so theee ttrpe have been drawn to include all af theee counties, not signifying that the Cosaittee believed the tlstrict to be
I Just the bounlariee of theee atatee, but rather aa showing
the area of the etatistioe and figure® thrt ?/e have *,i/en. X think you gentlsaen have raked with reference to expressions of choice. We started to eolleet th&t iata
i when
we receive* fron your organisation in Washington a
r e v e s t to etate first, sec on! and third ehoioee, and *re
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T r **' erlok C* H l c k e .
4415
have not f i M i i that eny further*
is far aa « t went, It
wee vary favorable to Cincinnati, but still it was inco&^lete, ani ao a i r ou£h wo prepared what a r e had, aa it was lncct^lete* •t lit not think it was a fair «ho«iR| of tho statu* of
Cincinnati ao compare! wi th tHo other plaoee in thia iiotriet. Tho Socrotary of tho Troaoury: 111 procool, tho To tho extant to whlah you
Co&edttoo will receive the inquiry and tho j
ro^lioo aa aa exhibit to your teatiaevgr* Ur. Hicks: you * • * it , oooBoditlee. I will M i a a Mfcoraniyua of it , ani see th&t Vow ycu have aake* fcr the intrlbutloe of
I f 1 uvtleretnnd i t , ycu wish tc know the
epeoifio oeirketa in which specific cocs&iolitiee &ot le that the lleaT Ve oan give ycu — I have, for instance in the
b r ie f, a statement of the total saova&ent of coa**«oll tlee from Cincinnati ae a distributing center* The 8*or*t’U"y of Agricultures
IX o,
that is net what ere Take this thing*
•«
had in &lnd when we asked the ^ue^ticn. for instance*
One of the great hardware hcuaes in one of
the cltlee we v iiite d , gave us its relume ef buelneee over the entire country with the percentage in raricue statee, ah owin* ite natural trale area* That wae lone fcr Half a In O ioago
of the lar ;eet badlnes* heuee* in that city.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
if
Tr? **rtek C. HioXa.
they 0 1 !e as up a 001*. col to u p y ae well aa an in 11vi dual aa^ on tha aafl&a baale. Thoee k ( )i ehow pretty ol early
what tha oity9* tr&le area le , especially I f you giro it in percentage for vnricue eta tea*
U r . Hiokai
&&y I aek ahether a tap of that eort la bom * That ahcwa
thine a-long the lin e ycu deeire ( i n H e ting). the coal trade. The Seoretary of A&rloulture: The Secretary of the Treaeury: Tee*
Tee, eacept I f you wculd
give the peroontaiM in the different etatee, it would he better* Mr* Hi oka: Tea, that we wcu** ei T# i n the brief. But I
h a n prepared eocae dnta of that kind, and you would like rathe4 complete d*»ta on the subject of the oove&ent of theee tie*? The Secretary of the Treasury: Hr* Sdwarde: The principal U tie e ,
How long a ti*>.e will we bf?eT Until the 15th of March,
The Secretary of the Treaeury:
we coul i receive it up to that date* The Seoretary of Agriculture: earlier* i f . oeelble*
T h e S e c r e t a r y o f the T r e a e u r y : be the feaxjUeaa*
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
We Would like to have it
If
5* 3*1 b l e ,
bu t that w ould
if
F r e d e r io k C . H lc k a
4417
Mr. Hi oka:
You arcull suggest that
file nhat ire hnv#
aow, an 1 Tile t vat m a #Ui>pl#MRtal* Th# Secretary of Agriculture: Wall, I ic not think ycu
will find it ae d iffic u lt, because each of ycur big he usee *h# hare t • lata will h&T# it now* Each of the big ®anufactuf^
TH# Secretary of th# Treasury;
inf and jobbing hcuae# can *u, , iy that Tory quickly. Hr. !Iick*>: #aM Th# Secretary of the Treaaury: triplicate. Mr. Hicks: Tea. W# prefer it in / How far wculd ycu dealre ua to go? For ix> Tou hare asked fcr thia arterial in t r i p l e
st&a##, we haw# prepared son# rather lar e sapt like that one back of you — Th# Secretary of th# Treasury: Tou need not have that nap
in triplicate or th# large nap#, but th# atnall exhibits which aacoH^any your j*#K 2cranduBi or brief, we lealr#to have thoa# in trlpli oata. Ur. Hick*: Cart.a.en , u n l t M you h»T« »<a&sthlng you wi«h
to aek » # s p e c i f i c a l l y , I think, the time of Cincinnati can better b# taken by theee other g#ntlee«#n.
T h e S # o r *t a r y o f the T rea a u ry *
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T h at l e a l l ,
Hoe j anycn#
•1 s t
!a»lri to be htsTcl fros Cincinnati? Ws wetild lik e to b&Ts theee gentlemen who came iTsr an e ^ o r t u r lt y to stats V*eir views. Yes* Haahvllle Is or the We w i l l take then
H r. Hows:
up from 1 ‘ishTlll*,
Ths Secretary of ths Treaaury:
l i s t , and ws sxpsot to h#?ir front then:. next.
S T .W E U m f 0*
S . KcHEBRT. Ur. kcHenry, w ill ycu
Ths Beerst»~ry of the Tr^ jury:
'vlw* ■ (fo£ * 'L.
*t *te your ndfcie, rv: lienee ani occupation. Mr, McHenry: Clearing Hcuie; J . 8 . McHenry:, representing the K i t h r l U s le a Tics Pres 1 lent of ths Fourth and
First Vationml Ban,, of Sk shrill e. X w i l l preface what I heto to say by saying that when ths plan of ths nsw Currency B ill was first conaiisrel* ths banks aad ooacasrclal organisations of cur City fe lt that Bashrille wculd be an ideal location for one of the Regional Ranks. The trale territory tributary to Wasfcwllle
ccl
^ rises
on the one tan ! a ccnai lerable ancunt of ootton territory, ani also a very large section of tobacco territory. These
two *ro!uots ooubiret afford the basis for an 1 leal rotation a
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a hearing before ytur Co*xu„ttee, ani accor ei to ua In Cincinnati to tajr.
a hearing was
In vie* of tha ic&ny c-jjvlidate* appearing
tha
vari ua ol tlee af tha South, we finally bec'uoe oonrlnced that tha eltuatiun Light become vary c or fualns to the C osjf* ■tlttee, an I after cnrefu- conai deration *nd consultation, our Clearing Houae Vu*lng tha le&d, we cotae to tha oonalualcn that tha territory to be es&raesd In tha U atrict to which SaahvlXle la to ba att^chad le cf paramount l^ c r t a n o a ; that while Iaa> villa la a logloeX location for a Regional Bank, em bracing a territory probably extensive efecugh tc e&tablleh a Beglcnal Bank of the inlcaiti. c«j1 tal, yet, involving aa tha
■attar 111 the actual lnveetcievtt of the aoney of rur bnnka Ir. jubacriptlcvu? to the capital atock cf tho RegicraX that we eho*£d waive tha *ur*etlcm of local pri !et end uae our bo^t effort* toa^alat In the eatabliehjLent of a U atrict of ^ l c h *% 'ii-Li.' be a part $hat wcull be etrcng enough to oo*»» ■and ro.rtct, aa * ^ a r a ! to tha other Begion&l Br-nk* cf the country, anl whlc^ «3 ould oo^rir-i a weX imbalanced territory* enabling the bank to ec^Xcy its fvnda iurin* the entire year* ami alee to be able to take care of the neei* of the |
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J.
8 . McHenry
44 2 0
. et h e r s
•1
1 cut
ii
&j»ie ta n o e in
fr^*.
ot
sir H s g i o n e l
B^rm s. that ths
f
lia a ,
c o n n e c tio n w it h
cur b e l ie f
natural trend of the traie in our territory Is towsxls the Vorth and £ast, lei us ta the conclusion that the establiefcment of a Bank in Cincinnati along the linee pro posed by those In charge of the acfSLont in that City should have cur hearty enlorsement,
and
tc this
end
cur Clearing
H .use, anl other cootercial organisations, voted unanimously erJorslng the location of the Bank in Cincinnati, ing that their re,re£entatlvee urge you to that The 8ecretary of the Treasury: thle U e n t lc a l Hr. UoHenrys lietriett I should like tc Bake a suggestion, that in
anl
direct
ecislcn.
Ars ycu also speaking to
The Secretary of the Treaeury:
U r . JioKsnrys
Vhat wculd you a i l to Itt
I would Alabej&s and Georgia, at least the I f a bank
were
greater part of those two states.
established
in He* Orleans, probably half crtwo V i r i s of the Stats. The SecreVury of the Treasury: The Secretary of Agriculture: Tou »ay proceed* Do ycu knew to 4Hat extent
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J.
8.
McHenry
4421
th*t sou Id r e fle c t the vie we of the interest* ycu represent? Mr. MoFenrys It would reflect the unanimous lentlefct of
coir Clearing hcuee. The Secretary of Agriculture: to add thie other territory? Hr. McHenry: Tee. northern Alabama le exoluelvely tribu That it wculd be aeeiraole
tary to Raehvllle. tc lid not believe that eentiaent and eeoticaal pride should have firet oonnideration in the letem ining of a queetlon eith which our future proj>erlty la eo intlaately con nected. Especially have ae taken the view that a region com
peted entirely of eotton proiuclng etatee, or in which euch eta tee preponderated aould fail to meet the requirement* to be laroaed upon the new eye tea. The handling of the
laienee cotton orope hae been, and will continue to be one of UM greatest buriena placed on the b&nxa of thie country* The South1* needs, in order to be properly U u n care of, in our opinion, rwquiree that the Southern States should fe e divided into at leaet four dletrlote, each district having attached to it eose of the etronger and capitalistic sections, dividing the territory of the Regional Banks longitudinally, rathsr than grouped around a particular
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• e J .8 .M u H e n r y 4429
In ordor to pr***nt an idea of th* pc Ation
of Haeh-
ville, commercially and financially, I would stat* that th.* banking capital of Waer.wille at th* pr***nt tine aaounte to # 6 ,2 5 9 ,0 0 0 ; with gro** d*posit* of 1 2 5 ,9 8 0 ,0 0 0 .0 0 At th* tia* of tho last *tat*&*nt th*r* *a* carri*d on depoeit in llaehvllle banke 1 5 ,6 7 7 ,0 0 0 .0 0 of country bank deposit*, rapreeonting acccunt* from 618 bank*, located in G*orgia T *n n *****, Kentucky, Alabaaa,/H l**l**lppl and Florida* During th* nonth* of Octobor, Jfoveaeber and Deceaber, 1913, th*r* wa* reoeived from the**, and oth*r bank*, out-oftown it * a * , not including tho** drawn on r**e r?* o iti** aaountin^ to $ 1 4 1 ,0 1 4 ,4 2 8 .0 0 . By a comparison, wa claia that wa*hvill* i* tha of country largest depoeitory/bankein th* South, exclusive of reeorve cities* Th* comparison of figuree of National Bank* alon*, in th*ir etateaente of January 13, 1914, shosing t l , 1 3 0 ,0 0 0 .0 0 great*r bank deposit* than inth* national Bank* of Atlanta, Georgia* Th* figure* iniloated for waahvill* showing only
actual country bank balances, collection account* representing
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ee
J . S . McHenry
4433
The 8 c o r t U r y of tho T r t w u r y : b U n o t t there? Mr. McHenry: U
Vhat do ycu pay cn
pay three per cent on * U t
«e term
"Reciprocal Accounts* that carry collection features vlth Ute» The Secretary of the Treaeury: Mr. McHenry: Free collection? They collect
Free reciprocal collection.
our iteme and ee oolleot thelre free* reeerve oity* ,and we have a great
fig u re d ,
Maehville le a non*
that three per oent ie not
4 **1 higher than the two per oent paid by reeerve
o i t i e e , owing to the reeerve requirement. The Secretary of the Treaeury: Mr. McHenry: tell, You way prooeel, Mr. McHenry.
1 have etated that ae are here more in
the oapaoity of sitneeeee than for any clalne for H aeh v ille. The Secretary of the Treaeury: You are acre concerned in
the o net ruction of the dletrlct it e e lf than in the location of the regional bank? Mr. MeHenry: Exactly. Hoe aany banka are repreeent-
The Seoretary of the *reaeury: ed in your Clearing Hcuee? Mr. McHenry:
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Me have n in e .
o f the T r e a e u r y : How s a n y n a t i o n a l banks?
The
Secretary
••
J.
S.
McHenry
4424
Mr. Kcftsnry:
la have fivs National banka. Ana Four State?
Ths Sscrstary of the Treaaury: V r . McHenry: The ^ o n t a r y And four Stats. of tha Treasury:
And they art unanimous
in th* opinion ycu havt expreeeed? Mr. McHenry: They a r e .
The Secretary of the treaeury: . Where do they keep th e ir reesrvss not p rin cip ally , shat part of them, for instance, are kept in Cincinnati? Mr. McKnnry: W e ll, I should say that 2b per oent. In Cincinnati?
Ths Ssorstary of ths Treasury: Mr. McHsnry:
Our ressrvse ars scattsrsd in K ash v ills.
1 think the pressnt systsa of reserve* is so a r t i f i c i a l and has so intiaats a connection eith ths collection feature, *»* kssp our ress rvse where «e can collect itsms. You vs i l l
f i n i that to bs ths cass with practically svery Maticnal bank in the o cun try, except, of ocurss, in ths central ressrvs c it ie s . balan ces. Ths Secretary of the Trsasury: T<Ai spoks of the number Ths collection f a c i l it ie s determine ths
of districts in shich you thought ths cotton statss ought tc bs divided.
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What was your idea about t h a t, shat number ds
ee
J.
B.
MoHsnry
4435
you think the cotton etatea ought to ba divided into? Mr, McHenry: Eliminating Nam Orleane aa a pcaaible locatio n,
1 iould aay four. Tha Pa oratory of tha Traaaury: H r. McHenry: Where «oul4 you put U a a T
I would put tha Atlantic Coaat 8tatee
attached to a bank at either Richmond, Baltimora or Waehin*ton. I would put Alabama, Georgia ani i f naoaaaary Mleeleelp-
pi attached to the Cincinnati bank. The Seoretary of A griculture: LouieianaT Mr. McHenry: 1 would like to put that with S t . Lo uie, What would you do with
i f they were not given a bank at Wow Orlaane. The Secretary of the Treaeury: reT Mr. McHenry: Either with a bank in Texae or with S t . Ani Texae you would put
Louie or Kaneaa C it y . The Secretary of Agriculture: There have been a number
of euggeetione that eubetantially thle dletriot which you ana euggeatlng be la id out. Mr. McHenry: Wfeat would you da with MecphleT
V e i l , Memphie naturally would be eerved be e t,
2 think, from S t . Louie.
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The
Secretary
of
the <»reaaury:
She
m aid h e r e e o o n a
ch o ic e
ss
J.
P.
McHsnry
4426
*as It* Crfceana* Mr. McHenry: W ell, it occurs tc. ste that she would os going — 1 think this lis t riot oould 6t« Lo uis, i f it has
ionld bs gstting lntc troubls*
carry Msaphis without any ^ u is t lo s .
Tsxas an i Arkansas attaohsd, has got a conslderabls territory to oarry, and a territory that has i S M S S t needa. Ths Bsorstary of Agriculture: stantially this Louisvllls suggsstsd sub Ko* why do
ils t r lc t , ani Chattanooga a ls o .
you euggsst Cincinnati as ths City for this lis t r ic t rathsr than
so m
of ths othsrs? Bsoauss of ita grsatsr fin a n c ia l iaportanos.
Mr. MoHanry:
and ths grsatsr support it can receive fro * ths d is t r ic t . Ms wculdjust ae soon bs ssrvsd by any city ccnvsnlSntly looatsd in that d is t r ic t , i f it was ae a c c s ss ib ls . asnt about it * Ths Ssorstary of ths Trsasury: Vhat would bs your sscoad Ths re is no ssnti-
cholos, supposing Cincinnati wsrs not chossnT Mr. McHsnry: For this particular dlstrlotT Yss*
fte Secretary of ths «rsasury: Mr. Mo^snry:
My sscond cholcs would bs Haahyills* 1 rathsr sxpsctsd that
t h ir d cho lo s*
Ths Sscrwtary of ths Trsasury:
rsp ly*
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Ho ws s i l l
a s k now
f o r ths
J.StMoHenry:
4417
Mr. McHenry:
W ell, ay thiri choice would be L o u ie v ille . What *oul * 1 you think of
Th# Secretary of Agriculture: Atlanta? Mr# uoHenry:
V e il , I nould rather net expreee ay w elf•
1
Teel that our trade relatione are of euoh l it t l e importance t;.at we wculi not feel at hoee at e l l . The fleoretary of the Treaeury: Mr. McHenry: Hoe ah out Chattanooga?
i
W ell, we eculi nave no objection to Chatta It does
nooga i f the ooet of the dietrio t wouli he s a t ie fie a .
not ooour to m m that it would be nearly eo convenient a# C in c in n a ti. The Beoretary of the Treaeury: Who repreeente Knoxville?
Mr. IfoHenry, did you bring »oee reeolutione froa your Clearing Fouee? have. Mr, McHenry: We have our Clearing Houee Manager here who We wculd like tc have them f i l e d i f you
fcae the reeelution. The Beoretary of the Treaeury: you pleaee. Mr. MoHi nry:
The
Juet let it be f i l e d , i f
1 w ill f il e i t .
fo a io w e :
re so lu tio n le ae
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••
(F u r t h e r
J.S.McH«nry
lU U x tn t
ot V .
8
.
4439
Romm)
Believing that a well balance! and logical territory le ef sore importance than the Incidental location of a Regional Reeerve Bank, the Kaehvllle Clearing Houee Ae»eola tion* a ft e r a careful consideration of the beet lntereet of thle territory, do hereby extend their unq ualified enioreeaei of C in cin nati, Ohio, aa being the logical location of the Regional Reeerve Bank to eerve waehville and lte trib u tary territory, and authorise the epeclal Cozr?ittee of thle Aeeoelatlcn to urge the eelectlon of Cincinnati at the bearing granted by the organisation Co*rcittee February loth*
Further State of V , 8 . ROUT. The Secretary of the ^reasury: v ille ? Hr. R o v e : le have a number of reeolutione that 1 mill Doee anybody repreeent Knox
Just refer to and f il e * For inetance, on the 9th of January, Columbus, Ohio recoBKenied Cincinnati to thle extent# •Colunbus, 0 . , January 9 t h , 1914* [ *To the (Organisation Committee of Federal Reeerve Banks: •Oentleaen:Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
The bankers
*f Cincinnati are asking an earneet e ffo r t
so
® *F tFvOH0
•4 2 9
to hAvt * Federal H«t«rv« Bank looatsd in th s ir o ity .
In to
fa r as our oo*asroial, agricultural and induetrial interests art oonoem ed, luoh ttlio tio n s i l l bo vary convenient. Cin
cinnati eervss a very large portion of the population ia the liiU c lin e s. We believe that you t i l l find it advisable to locate a Federal Reeerve Bank asM w hsrs In Ofclo. I f you sss Veet through the centering there of tr*nepcrt*tlon
f i t to is si gnats C in c in n a ti, »e ehall feel that the business intsrests of this asction havs bssn very wsll servsd. ftsspsctfully” . That is signs* by nins or ten of the 13 or 14 banks thsrs. Ths Secretary of the ?reaeury: Let w t m ask ycu, ehat sort
of s o lic ita tio n has svoksd that reply? Mr. Roes: I think
m s
or teo officers of one of ths
banks asnt up thsrs and sae theee psopls and had a talk elth them. It is f a i r to stats nos that Cclusbue ie an applicant
for a Reeerve Bank. The Secretary of the rreaeury: hoard tom orrow .
*r. Roes: Yss, but I s im p ly o ffsr that fo r shat i t 4s
Yss* Columbus is to bs
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ss
4430
eorth. Ths R io r e U r y of the Treaeury: Bo far as Kashvllls le con
cerned, shat representation® sere sale by Cincinnati to Baeh* v ille ae an laluoesent T Mr. Ro
m
:
S c far ae 1 knee, abeolutely none.
The Saeh*
v ille people caae to their oen conclusions — The Secretary of the Treaeury: th a t, 1 ae&nt to ae i Mr. McHenry,
las that a voluntary cxpreealcn of opinion on ths p*rt
of la e h v llle , or eae it e o lic it e i in any say? H r. McHenry: 1 e l l 1 state the situation exactly, le
authorised our Clearing House to oostunlaate elth those in charge of ths aovsaent in C in cin nati, asking the* to oosis to W asb v ills. C in c in n a ti. Thsrs eas no s o l i d t a t l o n on ths part of It was voluntary on our part, Thsy case
thsrs ani preeented thslr d ie t r io t, and our Clearing Houss thsn sais this announossent. Mr. Roes:
Hcues
Hers is a rssolutlon of ths Knoxville Clearing
that eas paessd early in January. las that in rseponss tc
Ths 8scretary of ths Trsasury: C in c in n a t i's solicitation ? Mr. Roes:
T ss, sea* of the bankers esnt doen thsrs ani
sat those psopls.
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• •
W .P .R o * s
4431
The Fscre tary of the Treaaury:
Can ycu give us any ile a
of the representations* sale to Knoxville to inUuce that reeoluticn? Mr* Rowe: 1 *111 have to aak Mr. Hlneoh to give ycu those•
Fere ie the resolution, ani the re suite • r'Knoxville,
Tennessee,
January 1 4 , 1 9 1 4 .
"Cincinnati Clearing Hcuse Association, C in cin nati, Cfclo. Q # a t l> s i»:« At a call meeting of the Knoxville Clearing Bouse Association held tolay the following resolution was adopted:That this Association endorse the City of Cincinnati aa a place for the establishment of a Regional Reserve Bang and the requeet be mad* to the Reeerve Beard to have K no xv ille, Tennessee placed in the D istrict to be served by C in c in n a ti, believing that the interest of thia section van best be ssrved by having the Regional Bank in C in c in n a ti. w O h io . " Mr. Hlnech:
Jr
/
The reeoluticn was largely tho result of
a telegram eent out by the banka of C in c in n a ti, the same kind of a telegram
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that was sent to a ll this territo ry , and)
••
*.
R o *e
4432
pursuant thereto, the Knoxville Clearing House Association had a meeting, and at that meeting thay paseedthis resolution. Thsrs sas no one dosn thsrs at the time, and out-
eide of thia tsIsgras, I«io net kne* of any repreeentaticne that ssra M i a , Tha Seoretary of tha Treasury: You t il l f il s a copy of tha
telegram along sith tha HeaolutionT lfr. Hineoh: Yea*
You may proceed, Ur.
Tha Seoretary o f the Treaeury:
Rosa,
Are you gentlemen both asmre of the individual preaeura which vae brought to bear upon banks and bank ere there, by indivi**— c ertainly , but thsrs has never been a meeting o f the Clearing Houss since that resolution, and it has nsvsr bsen rescinds** Here is O hio.
e
cue from the Clearing House banks of Dayton
The Secretary of the Trsasury: It need not Da rea l. Mr. Rose:
8upposs you file
it.
That la si thin 00 milae of u e . Naturally t h e ir view sould
The Seoretary sf the treaeury:
be th at, eo it la not nscsesary to read i t .
U r.
Rose:
Here are acme resolutions so fa r as 1 knos, that
art unsolioitsd from Group 3 of the *e st V ir g in ia Bankers'
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ss
? .8 .H o * s
4433
Associatltn,
that alec
at
t r ia l r t a c t i r .£ p leasure*
at
H u n tin g to n ,
le
w ill
file
* i th
The Secretary of the Treasury:
r s present
What territory icet that
in West Virginia? 1 a m a fraid I cannot answer that. It le group
Hr. Home: 3.
Preeuicably that le the Huntington territory . Here le a resolution passed by the Chamber of Com
as res at Huntington, Wsst V ir g in ia ,
recommending C in c in n a ti.
Hers Is ths tslsgraa which Ur. Hinsoh Just hands ms from Williamson, Wsst V ir g in ia . "Is havs no repressntatlvs , banks in this section uaanlmeuely In fmvor of Cincinnati as location for regional bnmks, as no othsr point sGuld bs satisfactory cr as smslly reached from Worth ani Wsst ssctlons. Watlcnal £ank of Coens roe , Watlcnal Bank, Williamson, Wsst V i r g i n i a ." Ws havs a ls t t s r from the First Watlcnal Bank of Tsrrs Hauts. fift y ysars: 1 think ss havs dsalt *lth thsm fc r mors than "Wsxt to Chicago, Cincinnati mould bs ths cheims First
of this bank for the location of a Regional Rsservs Bank for ths distric t o r sons
T hs
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in shlch Tsrrs Hauts is s it u a t s d ."
Just g iv e th s nam ss of ths
ffscreVary o f
the t r e a s u r y :
••
I.
8.
Rome
4434
Cities read.
7f ^
no * l c r g # imd *c * 1 1 1
t e l l you vtoioh cnee
to
X~ . K c . f :
V im o i*,
In
im is..
Th&t
1#
rf‘ t»h*r ft l o n g
lsttsr.
T~s 3 r c r s t * r y
ir. li*s •
o f tip
le
?r»<*&ur/:
a
ja It f r t a a b*nk?
and
Ts* , it
?cc t 2 s t t ? r ,
3tats*
h is
slsh ss
alssriy. r**» $*e r t .t tl7
Yc-u i « $ t lettsn It Is if j .
th*
• C t
Treif^nr:
i:> t.a* in
Tov ray f i l s
its tern p e l l ,
It.
and
rsx^rt^rj t as
tbsss
^nd
> iii
e r# id tr»J tc
t ; r m e t i e r . « 1 th tlitv ir IfeU
its f W
ro ll,
fcJtrtily
fcw*c;
* c ; ill t l i l l * lUrrt siijrl in in *
r*b&
tbs
tbs aoa-ent.
**ank of
fro*,
first
T aticrm l -e
O b i t t f t L C :^ !
1
v h sir / * i t
olciofc
k .u
C in c in n a ti.
Tn«f Sscrstary of t r *« Treasury:
Tss, i*e hi:vs thst fro*
Hr. Pr^stcs hIscslf fror Jhattancaga. hr. Mo««: Iss of
tbM #
«< s ill flic thsso, but »•« sou Id Ilk* to bass a fH it liw m on this lis t pnaaent their vlsss.
?b*r* l* an* other q u s stic n ani that Is as
l*x«t 3 s u n t t */*y a 1 tt<, I f w u t u r y : I « 'O u * d lb # Ilk ? tc & 4 k ycu w L iu L In tbs 1
a a it t s d b*»fo rs,
to
i i i f f r u f bank*
C in c in n a ti
C le arin g
Houss •
Ki*v Rw*s:
Tfcers ar* 13 all (.old, of ^fcioh si iht are
istlonal tiMl flvs a m Stats Bsnks. ( T*'i* 4StV*rs ~ i 1 rssoltttlcjui ssrs Meortlngljr fllsd ) .
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Th# Ssoretary of th# Trsasury: n#xt. Who rep re sent® TclsdcT
*e will fcsur fros Tolodo
FTATFlTCirT OF 8 .
D.
CAHR.
Ths Psorstary of ths Treasury: rssldsnos an4 occupation. Hr. Oarr: of ,Tolsdc. Ths 8# or# tary of tbs Trsasury: Mr. Carr:
Ycu nay stats ycur rua.se #
P. D. Carr, Prssi lent National Bank of Cour#ros,
Whst lo ycu rsprsssntT
Ths Clsarin^ hcus# --no, I will not say that,
th# National Bank of CosuL#rc#. Th# a#or#tary of th# Trsasury: Clearing Ifcuss? Mr. Carr: Not particularly, no. Ars you an offioor of th# You do not rspr###nt tns
Ths £#on»tary of th# Trsasury: Clearing Hcuas? Mr. Carr: y##.
Th# ftsorstary of ths Trsasury: Mr. Carr: ¥ios Prssilant*
What position?
Th# Ssorstary of th# Tr#a#ury: idsa# on this suhjsot* Mr. Carr.
M r.
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Will ycu kindly givs us your
Oarr:
W all,
ti.e
fw ti
are
the
banka,
.
^ m a jo rity
ef
_ Loei
I
P .D .C a r r
4434
had e lg a lfie d Claeeluni aa thair fir s t ohoioe ani Cincinnati ae n ex t. The 8a ore W r y c f U t Cl* a r in g HcuaeT Hr. Carr: 15.
How nany 3tate ani bon aany
Traaaury:
H c « many banka ara
in
tha
The Sacratary of tha Traaaury:
Satlo n alT
Carr:
4 Watlcnal and 9 fttata. And a aajorlty axpraaa
Tiia Aecra tary of the Traaaury: a preference far Cleveland? H r. Carr:
Wo# a i r , I do not think a a a jo r lt y , But 1
think jmet tha national banka, and parhapa ona of tha State banka, tha Ohio favln|» B »n i. Tha 8ecret*ry of tha Traaaury: your can bank? Mr. Ourr: W all, In acaa aaye Cleveland la a lit t le naarar What la tha prafaranca of
to u a , but Cincinnati 1 have favored aone, becauee of tha fact that it haa a eub—treaeury h are, and it aeened to ae it eould he a practical advantage tc have the Heeerve Bank here The Secretary cf the Traaaury: Which city would you
say touli beet eerve Tcledo'e trade and ec&reroial lntaraata?
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ee
8 . D .C a r r
44 37
Mr. CarrL
vcIu m
I »hc.ul 1
m j
Cleveland.
Is havs a larger
of businese them than with Cincinnati. Have you an ilea nhat the
The Seoretary of the Treasury:
general sentiaent of your community ie on that evbjeot? 1 toan of the bankers and businees sen? Mr. Carr: X think they rather favor Cleveland beoauee its
eo such nearer, and we have eo such larger businsee. The Ssoretary of the Treasury: jf
so bs
oity outsids of
Ohio should be choeen, what would be your eeoond choice? Mr. Carr: Chisago. How are your trade relations
The Secretary of the Treasury:
eith Chisago as against Cleveland and Cincinnati, larger or
sB sllsr?
Mr. Carr:
t s l l , ee have aore businese with Clevelani
ant next Chicago. The Seoretary of the Treasury: That is a l l , thank you.
Is thsrs a rsprsssntativs of Zaneevills hsre?
°TATFWEWT OF H. A. SHARP. The Ssoretary of the Treasury: and occupation.
M r. Sharp:
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State your naae, reeidsnos
H . A . Sharp,
C a e h is r o f O ld C i t i s s n s
n a tio n a l
••
K. A. Sharp
Bank of Zanesville. The Seorotary of the treasury: Olearing House? Mr. Sharp: 1 do not. What le your viee about
‘t e
Do you represent the
The ftecnstary o f the Treasury: thie questlfcnT lfrv Sharp:
I lo not wish to take your tie s, hut ae a
v
representative of the largest bank in Worth Pastem Ohio an ! all the banks in Xanssvills, X heartily recoseend the appointment of Cincinnati ae one of the locations for a Regional Bank, In the matter which was touched upon by Mr. Hose, in regard to thie flood, Zanesville was visited by the flood, and cur county euffsred a loss perhaps of sight or nine million dollars, le sere in ths stldet of i t . All the
banke in taneevllle sere cloeed for sevsn days, ani aany of the houses sent dosn ths river, and the mortgages, perhaps went slth them. We did not kno* shat soul t bs out condition
shsn «e opened up, but se sers in oceifKunlcaticn slth Cin cinnati all ths time, and it saa due to the First Rational Bank of Cincinnati that ee received our first relief by funde ehlpped fro* Cincinnati shlch came very promptly, ani instsad
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••
H. A .
Sharp
4439
of t r e b l e after the seven days of d o s in g our bank, our lepoelts Increased continually thereafter. But 1 s ill
aay in preparation for that opening, »e ware in touch eith Cincinnati, ►hioh furnished ue the aid , which we greatly appreciate. The Secretary of the Treaeury: eenreeT Mr. Sharp: and Chicago. The Secretary of the treasury: Cincinnati? Mr. Sharp: I should judge about forty per cent*
Arm you speaking for th#
Where do you keep your re-
We have our reeervee in Cincinnati, Cleveland
What percentage in
The Seoretary of the Treasury:
banks of Zaneevllle, or your oan bank alone? Mr. S*h*rp: in Zanssvllls. The Seoretary of the Treaeury: to epea* for thssT Mr. Sharp: I havs.
of the * r e a e u r y : Eave ycu any r e s o l u t io n
I aa #peaKing for mj own bank, and other banks
Have you any authority
Ths S se re t a ry o f the banke? M r. S h a r p :
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Wo,
I have n o t .
ee
H .A .S h a r p
4440
/
The M r. The Secretary Sharp: cf the by the a Treasury: *o rd Just by word of aouth?
Just of
of ao uth.
Secretary a*
Treasury: to of be it.
Yo\* t h i n k
attached
you to
reflect
th e ir
s en tim en t Ur. The ch o ic e Hr. second The
b e in g I as
w eig h t
C in c in n a ti?
S h a pp:
p o sitiv e the
Secretary of
of
Treasury:
W hat
*ou ld
be
ths
sscond
Z a n e sv ille ? I w o u ld th in k C levelan d *o u ld bs th eir
Sharp: ch o ic e ?
Secretary
of
A g ric u ltu rs:
How
w ou ld
they
look
upon
C olum bus? M r. Sharp: C olum bus has nevsr been m en tio n ed in our
d isc u ssio n s. The M r. The Secretary Sharp: Seer of the sin e s ths
Treasury:
1907. Treasury:
Or
P ittsb u rg h ?
Wot of
tary
That
is
all,
thank,
you.
S 'A T F M F W T The Secretary and of the
OF JOHH T rea sitry :
L.
BUSH W E L L . You m ay state your nam e,
re s i l e n c e M r.
o c c u p atio n . John L. B u sh n sli, Sp rin g field , O h io .
B u sh n e IX :
The
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Secretary
cf
the
treasury:
W h at do you
represent?
•°
J.
L.
Bushnsll
4441
Mr. Bushnsll:
I am President of tha First National Bank,
jut 1 have not any written authority as to the other banks. It is only hsarsay, and I do not know whsther you want to consldsr it or not. Ths Sscrstary of ths Trsasury: Ws w ill not consldsr hearsay
Ws *111 hsar what you havs to say, howsver. Mr. Bushnsll: Our f ir s t choics in this is C in c in n a ti.
That is unaniaous with a ll tha banks in S p r in g fie ld . Ths Sscrstary of ths Trsasury: Mr. Bushnsll: Row cany banks ars thsrs?
Thsrs ars six national banks and two sav
ings banks, sight altogsthsr. Ths 8scrstary of ths Trsasury: choics? Mr. Bushnsll: I think Clsvsland would. Is this ths d is tr ic t whicfc What would bs your second
Ths Sscrstary of ths Treasury: you think should bs crsatsd? Mr. Bushnsll: with that.* Chicago Yss,
I would fsal prstty well s a t is fis d
Speaking personally now, cur bank would favor
for sscond, but ths othsr banks of S p rin ^ fis ld
favor Clsvsland as sscond choics. Th ^ 9a xttary of ths Trsasury: Is that bscauss of Stats
pride, or of wore lntiaats businsss relations than with
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J.
L.
Busbnell
4-M3
C h lo i0T
Hr. Bushnall:
I think. the choice cf Cleveland for ••cc n d Our buelr.ee* next to Cincinnati le with
pal connections. The Secretary of Agriculture: Mr. Bushne 11: discussion had. Had you thought cf Columbus?
He, that ie new, einoe there hat been any But even so, even if ua are only 40 sllee I
Iro s Columbus and twice that distance from C in cin nati, aa satisfied ae would prefer Cincinnati. Tha Secretary of the Treasury: acre with Cincinnati? Ur. Bu*hnell: Very such sore, yee, a ir .
Tour trade relations are
8TATEMF5T OF W. B. 01TBHARDT. The Secretary of the Treasury: Hr. Oebhardt: W. B. Gebhardt. What do you represent? State your nasa.
The Secretary of tha Treasury: Mr. Gebharct: O h io . Tha Secretary of the Treasury: Hr. Geahar t :
I represent the Clearing Rouse of Dayton,
By reeolutlon?
Be; they a«fead us to coaa down, and tha
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ac
W.
B.
a«bh»r^t.
4443
Secretary and Tr#aiur«r cs^r e dosn, and they delegated ae tc apeak Tor tbs other banks, and aaksd s« tc attend and rap— resent the*. Tbs Secretary of tha Treasury: ccnneetedT Hr. Osbhar :t: Savings Bank* Tha Secretary of tha Treasury: what? Mr. Gsiihar t : President of both* What is Pay ton9a preference? Tour position with tha* is City National Bank and tha City Trust and With what can* are ycu
Tha Secretary of ths Treasury: Vr* CfSbbar :t : Cincinnati,
strong. T*,at would be n atural, cf
Ths Secretary of tbs Treasury: couraa. Ur. Oebhar t :
Cincinnati ws chocse,
becauas t« are in sore
direut c wwnnicatlcn witi thaw, and ws can ccacunloate with thaw. flo o d . Tha ^entleaan frow Zanesville Mentioned about tha 1 wish tc say cur loss in Cay ten was osar ons hundred Ws had no say to gat to any place except by
a i l l i o n d o llars.
autowobile tc C incinnati; and as he says, wa did not know woat the result would ba, but cur request.
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.Cincinnati raepended nobly to
Me cti*ar City could have anasered the pur *.se, b
1.
B.
Gabharat
4444
ow »«
»a c o u ld
not got to them.
T r.s whole ttSawl V a l l e y
can aen* to Cincinnati in tho Kooning and return to thair
hcuae
in tfta av^ning and be accom odated. What ia your bank, did you
Tae Secretary of tho Treasury :
ea y ?
Vr. Oabharct: Savings.
Tha City national and tha City Truat and
Tha Sacratary or tha Traaaury:
Washington kind cf helped
you out, did it not, or offered to, about that tlwe? Mr. Oebhar~t: Vawhin.ton County? Washington, L . C.
The Secretary of tfce Treaaury: kr. Oetdierdt:
Tea, but It took t in e , and It did not tal They did It at cnce. What would be your eeoond
tine for C incinnati.
The Secretary of Agriculture: choice? Mr. Oa bar t:
1 do not think we have any eecond choice.
It
le Cincinnati altogether. The 8«crotary ef Agriculture: could net put the oank in, Mr. GeoharAt: any ouch reaecn. The Secretary of the Treaaury: next?
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Suppose we found that we
t&en where ehouid we put it? We hope you cannot find
We eay Cincinnati.
Would you not favor Dayton
W. 8 .
G ja h a r it
4445
M r•
>4 c h a r d t : !t ,
Ho,
a ir,
we do not
c»ra
fo r i t ^
##
know we
co uld n o t |tt
TLe of
mo *e art n o t a s k i n g f o r I t .
tha Treasury: W o u ld tha n a t u r a l trend
Sac r o t a r y D utln aa*
of
your
Oa t o w a r d #
C h ic a g o
or C levelan d
after
C in c in n a ti? vr. Oebher^t: both Tt*at la vary h a rl an£ to a #ay. fo o d We c a r r y deal of d e alin g #
account# at v ith both.
p lace#,
we h a v e
Th# Secretary r###rv## M r. l#a#t To# aow,
of
th# T r e a s u r y : they
Where do you carry y o u r
now? w o u ld haw# a t
aov are
d istrib u te d
O w bfeard t: on# h a l f , Secretary
1 e h o u ld
50
aay C i n c i n n a t i of our
per c#nt the
ree#rv#e. W here ia
of
Treaaury:
the r e m a i n d e r
placed? M r. a n '. Qeohar- t: L o u ie . Wew T o r k , C h ic ag o , P h ilad e lp h ia, C levelan d
St.
S T A T EM C T T o r C . The n a .e e , M r. Secretary r # « 1 .a n c # C rlt##: of th# Treaeury:
D.
C T IT S 8. yo u atate your
W ill
an- o c c u p a t i o n . C. D. C rlt#a, L ia a, O h io .
Tfc# Secretary of th# T r e a e u r y :
Whoa do ycu re p r# a e n t?
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i a r and Manager of tha F i r s t n a t io n a l Tha 8acratary of tea T r a a s u r y : What
Bank of L i era. is ycur p r a fa r a n c a f o r
tha l o c a t io n of a ratarva bsunk in t h i a d i s t r i c t ? Mr. C r l t a a : o n th ia l l n a , If looatad w i t h i n a ra g io n c i r c u a s c r i b a d
Cincinnati. of tha T r a a s u r y : And ycur aacond choice?
Tha Secretary Mr. C r l t a a :
C hicago. la y o u r f i r a t p r a fa r a n c a f o r would ba tha h a a d q u a r t a r a ,
Tha 8ac ra ta ry of A g r ic u l t u r a l a district in wblch C i n c i n n a t i
<r a d i a t r l c t Mr. C r l t a a :
in which Chicago would ba tha haadqu&rtars? My f i r s t p r a fa r a n c a , but probably that ia a
llt t la aalflsh, about tha a a i « , and f r o a ,
would ba C h ic a g o , and no f u r t h a r
bacauaa tha d l s t a n c a a ara rem ittance to
in n a t t e r s of
an£ we probably would gat a b a t t a r gu a ra n ta a of b *c a u »e of la r g a r
s i x psr csnt divi "lands aa acco««rodations, aasata. T at is only a p r a a u ^ p t i o n . with e i u a l
Va ars e q u a lly * and *o re
naar C incinnati, or
b u s ln e e * f a c l l l t i a s ,
our o u s i n s * * trends t h i a way than C h ic a g o . Toe Secretary of A g r i c u l t u r e : Ho* dc you lo ck upon in tim ate thara?
C leveland;
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ara yc u r r a l a t i o n s
•O
C.
D.
Crites
444?
U r . Crltae:
I sh o u ld *c.y
Tee,
about
ao
far
a*
bank these
re latio n * of
are
concerned,
eja a l
*lth
C in c in n a ti.
STATFifSffT OF
T&a rasa, M r. 8e a retary resid en ce ox and 3. the Treaaury:
J.
S. You
H IL L . xay atate ycur
o cc u p atio n . *111, C aehler of tha N a tio n a l C ity Bank,
B ill.
J.
C&arleeton, Weet V irginia. The Secretary of the Treaeury: Mr. R ill: Who*
do you
repreeentt
The Charleeton Clearing
Houee
Aeeoclatlon.
Tiid Secretary of the Treaeury! Mr. H il l :
Tite
Hew nany banka?
12 banka.
State and llatlo nalT
Secretary of the Treasury: Yee.
Mr. H i l l :
The 3ecretary of the Traaaury:
How
nany
of
each?
Mr. H il l : 4 national and 8 State. The Secretary of the Treaeury: your Clearing Houee? Mr. H ill: copy of it* The Secretary of the Treasury: Mr. H i l l :
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Have
you
a
reso lu tio n
froa
Tha reeolutlon was
paeaed,
but
1 have
not
a
W hat
la
the
purport
of
it?
Favoring C in c in n a ti. Wae that in reeponee to
Tha Secretary of the Treasury:
ec
J.
C.
Hill
4446
•t l U iU t io a T * r . H ill: The resolution, 1 think, was passed before we
haw any letters or tele?ra?re frcs C incinnati. Tne Secretary of the Treasury: I that ties, Mr. H i l l : w a»n't she? Tee. Vhat le your view about Cincinnati was a bit slow
The Secretary of the Treaeury: the dletrlct? Mr. H i l l : our State? The Seoretary of the Treaeury: State.
Are you asking that question with refsrence tc
Y *s# I as speaking of your Do you think
It is incorporated in t i l l d is t r ic t .
that is the beet diepeeltlon to wake of it? Mr. H i l l : divided. The Secretary cf the Treasury: Mr. H i l l : In what way? My personal opinion is tfcat cur State should be
1 think the northern part of the State wculd or to sowe ether section that
naturally go to Pittsburgh,
we ehould net be connected with on account of the railroad fa c lllt le e and sail f a c l l l t i e e . The Secretary of the Treasury: buslneee?
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And the natural couree of
•c
J.
s.
H ill
44*9
tfr. H il l :
Tha natural courea of buninees, yae,
a ir .
Tr.e Secretary of tha Treasury:
Kow we had toac testimony
fr o * aosd citite e in southern West Virginia in favor of Ric. ecnd or Washln ton. *'r. H ill: T tat was in tha Horfolk A Western aacticn. Tour tra£e relatione ara
Tha Secretary of tha Treasury:
•o r t with Cincinnati th?n with any other large city in tha dietriot? Mr. H i l l : Tea, a ir .
In that the u n a n i n o u a
The Secretary of the Treasury:
aattl»aent of the banka of Charleston? Mr. H i l l : Tea. a i r .
Hew a bo ut the
The Secretary of the Traasury: that la their view? Mr. H il l :
tusinese men
The Chaaber of Co?a*rce and the Buaineaa Wen's
Aescclation both endoree Cincinnati by reaclutlon. The Secretary of tha Traaeury: What icultf be your aacond
choice, aaousiAg that Cincinnati was not chosen, and that thle diatrlct wae laid out? Mr. H i l l : I euppoee if I anawer U V a the raet of them, 1
would say Charleaton, but 1 really think *e would favor Rlch«on£, Virginia or Baltimore.
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•°
R.
L.
Archtr
4460
STAT^MKWT OF ROP^RT L . ARCHER. Tr.o 3ocrotary o f the Troasury: and occupation? Mr. Archtr:
3ank, State y o u r n & ^e,
rosidenco
Robert L. Archer, C a a h i a r of tho First National
Huntington, lost V irginia. Dc you roprossnt tho
Tho Secretary of tho Troasury: Clearing Houss? Mr. Archsr: lo, air;
I roprossnt Grcup 3 o f th o l o u t
Virginia Bankers' Aaooclation. Tho Sscrstary of tho Troaoury: in tho way of torritory? Mr. Archor:
Tno torritory
What doos that comprloo
in s o u t h e a s t e r n Wost V irg in ia,
L o g a n and
consisting of CaOoll, Wayne, Putnam, L i n c o l n , Mingo Countioo. Tho Secretary of tho Trsasury:
What is tho view of your
group ao to tho district that should bo locatod hero?
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•c
Archer
*451
Mr. Archer:
Our group has a resolution on f i l e with your
coacittee now an* their onanlsoui opinion wae that cur territory ought to be attached to C in cin nati. The Seoretary of the Treasury: Mr* Archer: Tee, e ir . T h . 3dur«ta.ry cl th. Tr.aaury: b. What * i l l /y c u r a.ccnd That ie your f ir s t cnoice?
choice, either of a city within this d istric t cr outelde? Mr. Archer: We really have no second choice. But if Cincinnati I
le our only c it y .
it had to be so«« other c ity ,
think Richwiond, Virginia, wculd serve us as well or better than any other. The Secretary of the Trenwury: That is a ll} thank you. Or
le there any one here representing Chillicothe? Vincer*nes, Indiana?
If not, we w ill hear next from
Paln teville,
Kentucky2
STATEMENT OF W. E. BAX*R. Tr*e Secretary of the Treasury: occupation? Mr. Baker: V. E. Baker; cashier German national Bank State your naee, resi^snce,
Vincennee, Ind iana.
The Secretary
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o f th e T r e a e u r y :
What do y c u
ropreeent?
•c
W. » .
Baker.
4452
Mr. Baker: in Vincennes.
I represent all three of the
^national Park e
Ths Sscrstary of the Trsasury: froa tnea? hr. Baker:
Havs you any credentials
1 havs a lsttsr froa each one of thea.
Onj of ths banks has recoaaende'* Chicago as thslr f ir s t choics ana ths other two Cincinnati. Ths Secretary of ths Trsasury: exhibits to your tsstiaony. Ths papsrs sere fllsd accordingly. Ths Se cretary of ths Trsasury: What wculd bs ycur sscond Let these bs file d as
choice, if you wsrs not attached to Cincinnati? Mr. Baker: Chicago. What is your third choics? We p rsfsr not to bs slth
Ths Ss crstarp of ths Trsasury: Mr. Baker: Ft. Louis, thsn.
S t . Louis, though,
if as can gst around it . Why?
Ths Secretary of the Treasury: Mr. Baksr:
The relations vlth St. Louis ars not as con-
I Tsnlent as thsy are with Cincinnati and Chicago. The Secretary of ths Treaeury: f a c i l it ie s ars not?
M r. Baksr: Yes, sir. C in cin n ati is acat co n v e n ie n t to
Tou aean transportation
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•®
K*
BaUr
4463
us oX all of thsa. Tes Sseretary of ths Treasury: ■ost intimate trai« relations? Mr. Baker: I aheuld judge siost of it vould .ba with Whers do you havs ths
Cincinnati and than it sould bs *it h Indianapolia. Tns Secretary cf tr.s Trsasury: That is a l l , thank you*
STATEMFlfT OF J . 5 . BUCKIHGHAM. Ths Secretary of ths Traasury: and occupation? Mr. Buckingham: Vational Bank. Ths Secretary of Agriculture: Cincinnati? Mr. Buckln&ham: It is 155 a i l s s . What do you repreeent? Jenkins, How fa r is P aintev ille free J . C. Buckin^haa, cashier P ain tsv llle Stats your naae, residence
Ths 8scrstary of Agriculture: Mr. Buckingham:
P ain tev ille, P lk e v llle ,
McHooerts and Wayland. Ths Sacritary of Agrioulturs: Mr. Buckingham: By resolution?
I aa cashier of ths P a ln tsv ills Bank and
Tics Prssidsnt of ths Rational Bank cf P ik sv ills and
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Tho So ore I k ry or A«ri<mX turos And. whs.t su^ ycvr vires snd i Mr. T> \ e Seorotery
9t
Clsetoni 11 *
Arriswloturo* fh ft •nsild be y^ur ee-end
Mr.
Isokinthtss Xy porser-el shelve er sxpretsUf tho » tehee
Ksr tu }ky|
ry o f A *r I"n l t u r e : B e th *
'f I ^ k r c
The B e a r s t
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ec
J . S . Buckingham
44b5
ilr. Buckingham:
My p«r«onal choice would be Baltimore,
but I think Eastern Kentucky wault prefer Loxilevllle. Tha Secretary of A-riculturo: Tcu think Esetern Kentucky
• ould prefer Cincinnati over Louisville? Mr. Buckingham: Tee, e l r . All of their business i * • with
Cincinnati and 90 per cent of their banking bu*inese lo «lth Cincinnati. The Secretary of Agriculture: rather than *ny State pride? Mr. Buckingham: Tea.
And they vould
follow that
STATfTMTWT OF L . W. DAVIS. Tho Secretary el Agriculture: reeidence an* occupation? Mr. Davie: cf Aenland, L. H. Davie, Preol^ent, Kentucky. Do you repreeent any one Second Watlcnal Bank Mill ycu otate your nsme,
The Secretary of Agriculture: except that bank? Mr. Davie:
le live in a tri-Stato eectlon, ec-called,
le have eix banke thore, with a combined capital Wld * rplue of # 1 ,0 0 0 ,0 0 0 and deposit* agr.re at Ing about # 3 ,3 0 0 ,0 0 0 and
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
ec
L.
V.
Davis
44t6
aocut 15 per cant, of cur money le kept in Lo uisville and Mew Tcrk end other cities end 85 per cent, in C in cin nati. The Secretary of Agriculture: the banka? Mr. Davie: All thoee elx banks, yeet e ir . Did they authorise you to Ycu are epeaklng fo r a ll
The Secretary of Agriculture: epmak for U e a ? Mr. Davie: Yeet e ir .
Tbe Secretary of Agriculture: f rom them? Mr. Devie: Vo.
Have ycu an / resolution
Tfce Secretary cf Agriculture:
Their first choice le
fo r a dletrlct substantially ae thle le outlined? Hr. Davis| Tee eir. With Cincinnati ae the
The Secretary oi Agriculture: headquarte re? Mr. Davie:
Yee, for convenience of getting here for money. Vhat would be their eeccnd
The Secretary of Agriculture:
choice if we could not take thle act lent Hr. Davie: Loulevllle. And their third choice? We want to get qulc|l con-
The Secretary of Agriculture: Mr. Davie:
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Chicago or East.
nectlon.
Our community la an iron and lumber d le t r lc t .
ec
L.
9.
Davis
445?
The Secretary of Agriculture: you have reference Mr. D&vle: more. placee. The Secretary of Agriculture:
M r. tc that
By
Fast, w ith in
what
c ity
would
wculd be
ran^e?
It 1 9 lb or 16 hours to Washington or B alti
There *euld not be any difference between these two
Vhat about Richmond?
m uch c h o ic e betw een
Davis:
Ve
vould not make
the
thres places. The Secretary of Agriculture: Have you any present con
nections with those c itie s tc speak cf? Mr. Davie: Mono whatever. Is Indianapolis represented?
The Secretary of the Treasury: Mr. Fletcher:
I am here for Ind ianap o lis. . .
flftch1 ^
STAT^^rrr
of
s
a
.
stats ycu nas*s#
The Secretary of the Treasury:
U r . Fletcher:
S.
You
*ay
A. Fletcher. What dc
you represent?
The 3scretary of the Treasury: Mr. Fletcher: The Secretary
The Clearing Bouee. the Treasury: Doe a Indianapolis wiih tc
preeent a claim for the bank itself?
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
'«
8.
A.
Fletcb«r
4456
Kr.
Fl*tch*r:
Ko.
#
The Sacratary of tha Treasury:
Aa i t
ia
pretty naarly
lunch i ica peroap* you *111 require a lit t le *ore time— w:r. Fletcher: He juat a accent. I wa* going tc aay ^e *111
Taa Secretary of tha Treasury:
* 1 ** you wore t is * after luncheon, but you aay proceed until that time. Hr. Fletcher: Our preference 1* for Chicago* You have sose reaclutlcna
The Secretary of tha Treasury^: frow your Clearing Houee? Mr. Fletoher:
brought
No resolutions, but I a p p e a r here and have
«o*« figure* which I understand you aaked eoire one
to t>rln£ froa ln<*lfmapolia, *ho represented the Clearing Houee.
It
ia a comparison between our trade relatione
*lth Cincinnati, Chicago an<* St. Louie, and shoe a practically fcO per cent, of cur business le *itfc Chicago, in an? out. The 8*cretary of Agriculture: Mr. Fletcher: And what with Cincinnati?
The ltewe eent In a period of six daya in
February, out of ICO per oent, to Cincinnati * * r « 1 5 .% per c en t, cf our t o ta l, and in our receipt* I t .6 per cent, and Chicago dulm-: the ease period 7 4 .8 per cent and 90 per cent. The Secretary of Agriculture:
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
You are epeaklng of bank
•c
S.
A,
F letcher
4459
itcue? Mr. Fletcher: Tee. Hew far dc ycu think thle
The Secretary of Agriculture:
reflecte n o m l or a r t ific ia l condition®? Hr. Fletcher: That i i a very accurate reflection cf the between the tewn#.
a r e ra*e ?olu*e of buslneee which paaae®
The Secretary of Agriculture:
Under the preeent syetea the
balance# you keep are not determined eolely by noraal conditions. Mr. Fletcher: Tueee are not ba*ed on balance#. The
figure# I aa glvin
ycu, which 1 understand you aeked for,
arj to she* th# routing of i teats, and t h l e represents th#
t c I u m of iteas thst we f i l # for ere-it or rscelve or r $ * l t .
Th# Secretary of Agriculture:
I underetcod t h a t
Inilanapoll# expreeeed that preference at Chicago and that you #ert to euoult tcee figure#. Mr. Fletcner: T#e. Will you Juet f i l e them
The Secretary of Agriculture: with the reporter? Hr. Fletcher: Tee.
The papere were accordingly f i l e d .
T he S e o r e t a r y of th e T r e a s u r y : H a v e you a n y t h i n g else to
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*«
3.
A.
Fletcher
4400
offer? Wr. FiJtchert Wo. What ia tha aacond choice
The Secretary of tha Traasury:
cf Indianapolle, Chicago being fir *t ? * r . rlttchtr: They have no second chcica up thara. They
figure it *ould entirely disturb their coll action ai to have tbea uaa any other point than that. Tna Secretary of tha Traasury: Well youf ordinary
arrangaaanta between bark* will not ba diatrubed by thia ayatsff. Mr. Fletcher: would aava now. Tha Secretary of tha Treaeury: If you had to face that Wa figure wa would wave tha sa&e tiwa wa
alternative what would be the next beat place to locate tha bank, ao fa r aa Indlanapolle la concerned? Mr. Fletcher: We have no preference at all and have not
atteapted to f i urt What any routing of mail would D«— The Secretary of the Treaaury: I f thia d la trict ahould
be laid out aa outlined, of courae ycu could not be attached tc Chicago. Hr. Fletcher:
T ie Secretary
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We.
of the T r e a a u r y : C o n sid e rin g it in that
Mr. 8*1 th: Ar a m r 8s,ith; Sear^tsry of th@ Xfedlsaufc B^nkara1
A*too ia t ir n , Ir.^iw i&p clli; alao Vice Preelaent ef the I r ^ l w a
Katlcmal Bus*, Ir ^iKA&xella* Ths 8a ore t*ry of tha Treaeury: Tru * * y prcooed* Mr. 8 ltfcx Oortl«.:#n, at ycur Chiea*ro hearing you requ«*ted Col. KoCullou rX, Ex— Presla&nt of cur Aftscoi&tien, ana H r. Malictt of Ir ilr a a p o lls , tc «»athcr tf.ne intere* tirif In— f o r M t i e a far you r a ^ r d ir.gr tba entabllehnant of * Faaarr 1 Reeerve B*nk and where I x*lana would s resfer to ba attache^. They tumaU. ih li *atter w a r to m ae Secretary of tba State
I t t e o U U c a ana eeked aa te preeent it to you at yrur hearing ir Cincinnati. With that er.l in vlow we ««rt out a latter to
every b&nlt lr. Ir.aiana reaueetlnr thrt tbey ^ive ua tha a»«u t a f raaarraa earriea in Chi oesro, S t. Lcula and Cincinnati and a l i o thair vrefer&noe a» between Chicr^o# S t . L ^u ie, Cincinnati ana L o u is v ille , n * » i n ? * fir e t ehciee nna a e e 'r a o h 'lo a f fclea tha preference ae between C M f c ana S t . Lcula.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
*1-14
A, Smith
4464
* ! • • M k « U theft to Indio&te the ^ r o e & U g j i of buoinoeo between thair loeality ana tho above najeed c ltle e , Vo re—
w ith a oapital of # 3 3 ,3 3 3 ,COO roportod and 354 State B^rVa and Trust Coapaniee with a oapital ef $ £ £ ,3 3 9 ,8 5 6 , oapital and eurplue, ana 1C? private banke with a or pi tal Fund our— pluo of £ 1 ,4 0 3 ,9 6 0 , mafein*T a total cf 6G6 brrJfco w ith a cap i t a l repreeontlr.* # 6 0 ,2 7 4 ,8 3 8 , Of thie number the gaticmal Benke reported favorably to C h io **o , 133 wit) oapital end eurplue of #35, C-67,Q6£*
p f
Cln—
Olnnati 62 with oapital ana eurplue ef # 6 ,3 9 4 ,9 8 5 * S t , L o u ie , neno; L o u is v ille , U>, »ith * oapital anc otxrplue ef # 1 ,^ 9 3 ,5 8 3 ,
TKraO were eoat taring, re pro eon tin o r # 7 5 ,3 0 0 c ap ital, T h i* flvot * total of 806 Rational Ifrnkn roper t i n * , w ith
# 3 3 ,5 3 3 ,3 3 3 o^pii 1 and eurplue, for efcica«*>, Fcr eeocns. choice Chic- ro 6C banv.e with a o^pltrl *nd eurpkme * f # T ,5 4 7 ,7 3 6 ; Ciiseiwsaii, 66 banke with * oapital
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al-15
A* Pitl til
4466
and surplus or
# 1 5 ,3 3 3 ,7 1 0 ;
St.
Leu Is 31 bank* with
U u U v lll* and
a
cap
a
it a l and surplus of # 7 ,4 4 7 ,9 3 6 ; oapltal
ted
30 banks w ith
surplus
of
# 1 ,9 5 6 ,3CC;
s c a t t e r in g 38
banks
with a capital ana
surp lus
cf # 1 ,2 5 7 ,£ 1 2 .
As between Chios<re and St. Lc>ule, Chicago SOI banka with a capital and surplus of # 3 3 ,4 6 3 ,7 8 7 ; a capital and rurplus cf # 7 8 ,4 2 5 . Husebor cf St* to Brnks and Trust Coerp^niae reporting 21 4 . For ChlotifB 341 with a capital and surplus ef # 1 9 ,1 4 8 ,1 2 6 ; Cincinnati 66 frith a capital and surplus of # 4 ,0 4 3 ,6 4 0 ; S t. 2 Louie 1 with a capital and nurplue cf § 2 8 ,0 0 0 ; Lcuiswills with a capital and surplus af # 1 ,0 1 5 ,4 0 0 ; scattering 33
St*
Louis 4 banka with
w ith a capital and surplus of # 1 ,1 0 5 ,4 9 1 . For seocna efceloe Chlcajre 58 # 3 ,6 4 4 ,7 C £ ; Cincinnati 112 with
w ith a a c a p ita l ana and rurp lus of
of
c a p ita l
surp lus of
#8 ,8 3 3 ,1 3 6 ; St. k u i t 34 with a capital # 6 ,3 0 1 ,3 0 0 ; Lculswllle 38 with # 1 ,4 6 1 ,9 7 0 ; scat taring 112 with # 6 ,1 7 8 ,5 6 0 * As botw«en Chicago and S t .
k n it , a a
ana ana
surplus
capital capital
surplus
surp lus
of of
ana
C h icag o
291
w ith a
a
cap
i t a l sad surplus of # 3 2 ,4 6 0 ,6 3 0 ; St* LAiis 7 ^1 t h and surplus of # 3 0 0 ,0 0 0 ; so? t tor in f 56
Digitized for FRASERsurplus http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
orbital and
w ith
a
cap ltsl
of # 2 ,6 3 9 ,0 3 6 . Private banks Chief*re 74 with *
a l- 1 6 A* %h
4466
surplus of t l 5 l t360| Cincinnati 30 with a ee.plta l ami sur plus of $ 2 7 4 ,ICC; Lcuiswllls 4 with a capital and surplus of #S6,COC ; scattering 9 with a capital and surplus s f $ 1 2 1 ,5 0 0 , Sso^nd oho 1 os 18 with a os pi tal and surplus of $3 4 9 ,3 0 0 $ Cincinnati 3? with a capital snd surplus of |4 5 T #200— Ths Ssorstary el* ths Trsasurys That is not m aterial, in vlsw of tho fact that thsy cannot become seashore of ths systsm* It is sisrsly lnulontiro of thslr sentl&ent* It is ■srely history*
Hr. Sal ths Toe.
Tha Secretary of Agricultures H a w ycu anything to shew wsrs ths danks ars that sxprsss preference fro* Cincinnati m d Chicago and St* LoulsT . Mr. tel ths They ars a ll ever ths s ta ts , from ths northern bcunaary tc ths O M e Hirer* Ths Sscr^tary of ths Trsasurys Tru can supply a lis t ? II . Bsithl I haws ret it ^ lt h a s , but I can t up ply it* Ths Secretary of the Trsasurys Furnish that, s . lures* of each b?nk. Mr. Salth: I w i l l be <rlad tc ao that* Ths Secretary of the Trsasurys Hew f * r dr you thlnJ^ths fir in g ths
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*l- lf
4467
A.
Sraith
bank* in Making the so repilas hr.ro b*er> lnfluencea by tbm cor.«
f
•i (U r * t l o n at to whloh dletrlct or « h l 9h elty wculd bo likely to bo tho cue to earn a dividend cm tho stock; where that ocevelderatloa bee boon the p r m l l i n f cne, how far wculd ycu eay that haa in f lueaoad the M t l e e of theee bnnkeT Mr* Salths I think they fe e l that a bank Ir. Chloaae wculd a pretty *oe- woney natter ami
rood ^LlTiaond*
probably declare r *
The Seoretary of the Treasury* Dc ycu think th.' t hao more influence with thea th t eort eecEno&lo end fundamental queeIon th t 0*1*311 to <iotc:n? Lno the ^u^etlcn? Mr* Sal ths I think a many favor Chi o r pt * on a c o n m t
of aaay of their buelneee intoreeta r i n R ir. that direction* The Seoretary of the T r a a u r y s Ton think that haa Influenced thea acre than to bo In a bank whloh le eure to earn 6 per oent, lntereet?
Mr. ftolthi Too* T o Secretary of the Treaeury* Ia there any doubt ir your Mnl ‘.hat I bank M M fBt « UNI i tri 't r r r c ^ u by Q| -
olnnatl veuld be able to earn lt« Internet on the etookt Mr. Sal ths I bollewe It ^culd* It le t e r U liily a wood
territory#
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al- ia
4408
A* Saith*
■
Ths
m gp«tt
opttftry of tha Treaeury* Ht<v$ ycu ejsytblr^ also tc
Mr. Sal thi For your further edification we took the matter up with the ChRabtr ef Coaunerce in Ind ianap o lis, ef which I rji a aeaber, a«a I re present the 2:. Their secretary sent
oat a letter tc various Chaabere of Coaneroe and Boards of Trade evor the State atkir f whether they favored Chicago, Cincinnati or S t , Louis or Louisville for ths establishment cf a Fsasral Reeerve Bulk and ir.dirn tin**— Ths Seorotary cf the Treaeury: A copy of th&t letter of inquiry w ill bs f i l e d also? Mr. Sal thi Tee, that is a l l hers. Of coures there are not
aany C h u b e r s of Cosasroe cr Beards of Trade scattered over In d ia n a, but ws have 12 replies hr. re rnd of ths 12 seven faversd Chicago, cur Cincinnati sna m s seettersa, I v i l l
>0 rlsd to leave these r lt h yea, .
Ths So erst rry of the Trsasury: Thres asay be f ilea a n ex h ib its tc your tsetiaony. Papers i w c r u i n f l y file d .
STA Trrrarr
o f ha n n rs
s,
sckta o ,
T**s Sscrstary of ths Treasury* W ill ycu etrto your n a n *, rasi4§ads
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mw
occupation?
U arous S .
8 (m t a f «
Mr. S m U g i Maroua S . 8eRtft?y T l M P r «t id « it Indiana B n U r a 1 Aeaool: lion. This ocrra* c^d o no e ha a sear. had
»ith a ll \bi banki af tha Steta, end I *1 1 1 f i l e that w ith out any further states ant unlade ycu want tc hear froa Ift iM V ilX l. Tha Secretary ef tha Treaaury* I f tha State ahculd ba divided between t*c dletrlo te, where ahculd ycu any tha act.thar part of the * U~ ta eh u Xu i»e ;>utt
Mr. Bcr.tap* Wall wa favor Chicago, but far eaoona oh io e # 8 t # Lcula by a lo a f wmye. pookat. Tha Secretary af Aprlculturai That la Bv navi H a t Mr. B n t a rt Taa. And S t. Lcula la cn a cireot llna with ua. Tha Ba oratory of tha Treaeury* Mew «b h of Bcuthern Inal ana would ba regarded aa tributary tc Bt. Lcula natur llyt Mr. Bontfift Aa far north aa Tlneenne* rr probably Terra Rauta.
hara.
Ycu aaa va are away dew*
in tha
1 notice one of tha banka af Tarrr Knute haa appearad
Tha Baoratary cf Agriculture* Would that apply to tha ecuthaaatern part of tha BtateT
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4470
Karoo* 8 . Sonts^*
Mr. 8 «n U g s Wof they would w t c m l l y come to C lr slw u iti. Praoiioally m r y t h i R ^ aa*t of Tlne*im«s would all r* to
C incinnati, but w* *r * *o situr tod that our railroad facllltl** « d everything farcr St, I t r U , Thst would bo
our eecm d ? h d o e .
I *hruld Ilk * to fllo this papor whloh
oft*c out Sundaf, which g i n e our fu ll bank •te n d in g &nd •we n r bank in th* City. Hcu*o# Th* Secretary of th* Treasury: That i* an accurate »Ute«* sent* Mr. Bcntr r: T o *, *irs oor.pllad by on* Tha j a parr ware Kcoeralnrly f llo d . T )* Secretary of the Treaeuryt Who raprancnt* To rra RrutoT Mr. Row*; I do not thin* thore 1* anybody here.
of
W* he we tun bonk* if; th* Clearing
cur bankar**
Tha Secretary of th* Treaeury: I i there ar.yma also fr o * Indiana who wish*# to be haardt Mr. Raw*: Mr. Church af Mu-ci* 1* horo. STATnm rr
of c. h. church.
Th* Secretary cf tha Treaeuryt Tou nay etrt* yc r n a«e# r t t U e n o e and com patlon* Mr. Churc* : C. B. Chm ro Delaware C n a t y i P t l m a l Tfcnk.
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Ir c l a n * ; C ahler of tl * I an al*o 8a^r*taryof
ths
4u n c l e
C learing or
Houee. the Treaeury: Do ycu repreeent the C le^
The inf
Secretary
Hcues? Church: the Only three of info rm ally; rational the they took r.c a c t i o n * I
Ir.
r s p r s e e r .t
Banks
th*re. My authority?
The S e c r e t a r y
i r m C h urch:
Tre a e u r y :
T hat mush e c . o f th e T r e a s u r y : Ey a u t h o r i t y ,
of the Ey authority? or le
The S e c r e t a r y 4r.
Ths
C h urch:
Sscrstary
yes,
a ir,
What
fcy r e q u e s t .
your vie* of this
Treasury:
satter?
M r .C h u rc h : atout, or ss th is e ith
M u rcie
le
l o c a t e d h a l f way to C h ic a g o , eith e r say,
ju s t m a il
the ea&e f a c i l i t i e s Sow f o r
te le g ra p h ,
ra ilro a d .
e i x days p a s t
e n d in g S a t u r d a y n l g a t
of
*-l4 ,0 0 C say.
re m itta n c e s,
45 p e r c e n t , betw een
th e * comin * and
Ths o t h » r was d i v i d s d
In d ia n a p o lis
C h ic a g o • Ths S s c r s t a r y of the T r e a e u r y : Was t h a t
indicative
of
th s
g e n e r a l co n d itio n ? Mr. C h u rc h : it, T h st it is is Ju*t about, it as n e a r l y
all turn as I can
e stim ate
th e way
w o u ld
out.
Ths Cs c r e t a r y
of the T r s s s u r y :
So yo u f a s c r
C incinnati,
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
447*
do you?
*r. more tc Church: etuff
I
favor that
Cincinnati i® t h a y a£0
on the groun.i
tora
that wo
I
aena
like
har«, that
clear
fcr
ui*.
*ould
explain cn« i> y.
two w a t U cf
I
waa
took caah
i n j 1«~£ , OOO o f d e p o a i t a and $ 1 1 : ; , 0 0 0 waa away from
cnecka,
in
and
|1 0 ,0 0 C of thoae cr
that
$ 1 0 0 ,0 0 0 per
checka waa
were
foreign,
* unc i a . banker#. to
Forty He* the
cent la
*4 0 ,0 0 0
againat f t a t e
banka
and
that per
eoaethlng $ 4 0 ,0 0 0 Bank *lth
that aould any
perhapa not
jrou w a n t e d
to know aa
through
cent,
have
b e en c l e a r e d w ithout
the R a t i o n a l
cosfort,
expenee.
That » a e t n a t way
p e rh ap a an u n u a u a l t h i n g , a ll the week. c f the T r e a a u r y : , la it?
hut e t l l l
we have
it
about
The S e c r e t a r y p o rtio n Mr. a ll
T hat
ie
about
the
pro
the t l a e Tee.
C h urch.
Forty
p e r c e n t haa
to go f o r
clearan ce
t h ro u g h S t a t e Eanke and b a n k e ra and t r u e t Th* S e c r e t a r y a ffe c te d , aoee not if of the T r e a a u r y :
How a r c
co ^ p a n iea . th e/ & o in s to be
you hava a F e d e r a l a y e t e x o f c l e a r a n c e a w h ich
then?
irc lu d a
Sir* Church: the expenee.
W e ll,
»•
«ill
h av e t o p r o v i d e
fo r
them o r pay
The S e c r e t a r y
of
the T r e a a u r y :
W ell,
will
they no t h a v e
t*
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
It
C*
4473
H. Cfcurcn.
*c®e
Hr. I
ex p e n se
I all
too?
a* of getting these f r e - rsc-.# and tc th»t in the into po in t.
Church.
ajr g e t t i n g
these fr**e,
if
it
ia
put
the
I
F e d e r a l R s a u rv e Bar k w e w i l l h a v e o n ly c a llin g
your attentio n to
pay t h e
because that &*y are I
expense. heard line* be
aa
this
you s a l e
an i n q u i r y
th ia
le rn in g
of
som ething
along There
The S e c r e t a r y tin g tio n ad van tages,
the T r e a e u r y : cannct t e l l That i s
all,
s o a e compensa
inxorm ais no
*e
yet. thank
Ve
getting
on t h a t n o t . fro a
ycu.
If
there nos*
one e l e e Is
In d ia n a ae s i l l
hear
from
Kertucky
L e x in g t o n r e p r e s e n t e d ? Mr. H ove: Mr. Sharp o f M a y s v i l l s ,
Kentucky, is here*
STATI3££WT CF H* C . The S e c r e t a r y of
the
SHARP .
your na&e resi
T reasury;
Stats
den ce and o c c u p a t io n * Mr* S h a rp * M -.y a v ille , H. C. S h a rp * C a sh ie r S ta te
to N atio nal
B m nk,
K en tuck y. th ie of
I do not want fo r y ou r
ta k e
up
your
time
b u t w ie h to f i l e The S e c r e t a r y Mr. Sh arp ;
inform ation* Tou favor C in cin n ati?
the T r t s u r y ;
T ee*
of the T r e a e u r y . Fo r whom dc you a p e a k .
Tne S s c r e t a r /
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
4*74
your own bank o r t h e
Hr.
brief. The Fecr^tary of Sharps The
town?
town. It
w hole
ie
a ll
etated
in
thlm
the T r e a e u r y :
It a&y
be f i l e d .
WAYFVILLE,
KEWTUCKT,
u rgiw o A
REGI03/L BJWK FOB CIK BIHKATI.
M ayeville i* eixty- three
(6 3 )
and
s lic e
C.
£aet
ot
C in c in n a ti
and
on
t o e Ohio R i v e r a n d L . reach C i n c i n n a t i
in
A V.
A
0.
R .H .,
me
can hours.
on«* a n d
three
quarter#
(1 -3 / 4 )
* e have one l a r g e C o t t o n l i i l l U n it e d P t a t e e cu etoaere Factory, ani C nada;
s h i p p i n g fcoode a l l Plow Factory,
over w ith
the
one l a r g e
in Cuba and South A a e r l c a ; whoee go od * go to a l l p o in te
one Wood S p l i t of th e G l o t e ; in
P u lley
wa
h ave
t h e eecond l a r g e e t E u rk le y
Looee L e a f t o b a c c o M a r k e t e e lliru
laet
the w h o le the "b r e a k a *
Tobacco E i e t r i c t ,
year ovsr
* 3 , 0 0 0 , 0 0 0 roundw, eurrrun ed by v e r y
to ta lin g fe rtile
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and n i n e t y
cert of le
done
fro a
theee
in d u e trle e ,
through
C in cinnati,
and
ae
can
of—
4476
H.
C.
Sharp
for
no
better
reaecn
why
it in
ie
*:ur
interest than
to
h a vs
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c^r.k e s t a b l i s h e d
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P le a se fiv e w ith
a llo w
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that w ith in
ra d iu s
th irty to n n e ,
(2 6 } a l i a s th irty -fo u r
o f M a y s v ille , (3 4 ) b a n k s,
t h e r e a r e tw e n ty re p o rtin g :
e & a lle r
A ggregate c a p it a l 8 u rp lu * D e p o e l te end
....................................................... 5 , 0 6 8 ,0 0 0 .0 0 eay, t h a t 95 p e r c e n t o f
this
and we a a y s a f e l y b u sin e ss s q u a lly is dene
banking,
th ro ugh C i n c i n n a t i , if not s t r c n g s r ,
and t h i s
a p p lie s o f E astern
stron g,
to th<i « h o l e
K en tuc k y ,
the cow in ; s e c t i o n reeources in fan cy . ars
o f our S t a t e unsurpassed,
and c u r C o u n t r y ,
though the
whoee a l n e r a l aet t is in its
d e v e lo p -
S p e a k lr p o in t, w iu
fro a a s t r i c t l y a s l;«
b u s i n e s s ana c o m m e r c i a l s t a n d *
feelings, bsn&s we thing
la y in g
any p e r s o r a l s p le n d i d
C in c l n r . a t
h e r Rub T r e v u r y , is
and g e o g r a p h i c a l the U n it e d S t a t e e se c tio n , lo c a te and w e th ere to
s itu a tio n , serve
the b e s t l o c a t e d
c ity
in
the l a r g e e t r u a b e r o f banks
in t a l e tc
s a m e s tly
r e q u e s t your H o n o r a b le B o a rd
a bank
R e sp e c tfu lly e u b a itts d , R. C. S h a r p .
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Cfcatraan.
4476
"TlTFKEST OF WALTER S .
Tfce *> e c r .ta r y of th*» T r . t - . u r y ,
HARKIHF.
State your rum ,
r^ ild e rc a
and o c o ^ a t .J o n . v i l t e r 5?. H«*rki^a, that o f Preatonburg.
but
^ r . B a rk ir*: o c c u p ii t i c n <*et*<! in i*
*y p r i n c i p a l I
a*
a r A t t o r n e y a t Law, lives and
in te r-
tha
two banka a h e re I of
sosj
o th ere. n a tio n a l
Tha S e c r e t a r y Banks? U r. H a r k ln e :
tha T r a a a u r y :
What a r a
they,
One i a
N a tio n a l
and the o t h e r K en tu ck y,
is
8tata«
The Bank J o e e p h ln e a t P r e j t o n b u r g ,
E- r * . I
it? a R a t i o n a l N a t i o n a l Bar.k
aa a sto c k h o ld e r
in th a P e i n t e v l l l e
and to e P a i n t a v i l l e Tha S e c r e t a r y o f appear here f o r H r. town.
Tho
T r u a t Coapar.y.
the
Treaaury:
A re ytfu a u t h o r i s e d .
to
theai a l l ? I aa a u t h o r i s e d to a p p e a r f o r t h c e e in o u r
H arkJre:
Mr. P u c k i s h * *
Waorotary of
hsa a p p e a r e d f o r
Traaaury: What
th e o t h e r s .
ia your view ?
the
U r.
F a rk ln e :
W ith r e a p e c t tc
the e s t a b l i s h m e n t o f a
PegienaJi Bank i n C i n c i n n a t i ? The S e c r e t a r y V r . H a r k in s : of the T rc**au ry : Tea,
U r"3 u ee tio n ab ly
C in c in n a ti.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
1*
447?
W a lt e r
S. H a r k in s .
Tha S e c r e t a r y
in
of
the T r t M u r y :
Rave you a teccn u
ch o ic e
t h i * 4 t e t .r lc t T
*(r. HarVinn:
T h ve a second and third on#*
th s T reasury: on#, You w ig h t n«.as them. in flu e n c sa # # co n d , by 8 t a t e p r i d e ,
to e
Ih e S e c re ta ry o f
Hr. H a r k i n s : Th# f i r s t
woul i b j L c u te v ille ,
jivl C i n c i n n a t i
hut
lo g ic
of toe # i t u # t i o r
w »U ir.f
end o u r b u s in # # # r # l a t i o n # o f 8tat# p rid e , it
ar#
#uch t h a t ,
th # H t t t r
^«.k#e C l n o i n n a t i
ur i - # # t i r o e b l y •h c -li
the p l i M
a t w hloh a R e g i o n a l R e e e r v e Bar.k th i# a i# tric t. Th# t h i r d
h# # c < t a lll# h # d f o r a l l t# Richmond,
of el##
c h o l c # v# have
Th# S e c r e t a r y have
Mr.
V irg in ia .
Th at le all,
th# T r # ^ a u r y .
to e a y .
weivt in to all
u n i# # # y o u
s o * st h in e
HarMne: but
T d«? r o t
tak# that
up t h e
region
tieie
of I
th#
C c ^ m it * # # ,
I *111 e a y
ftnarcial of
where
liv e
cur t t ^ l r .e s i,
The
and c o m m e r c i a l ,
that oil country and
i n w ith
in
C in rcln nati.
B atu m i resource
a l&rge oo«l
c o n sist#
the * a i n
m arket for there and
cf
U
d istrict, through
t im f c e r . Into com* the th# two
The
.1 c o a l
*•*<§*##
C in cin n ati should
northwest,
sm s
f o r e we t h i r k
thay aerv#
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
the
;le a r s n o *:s d istan t a
way, and
w ould us
b *e q u i
between
those
po in ts any
b-ttter
than
R egional
Reserve
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other
U
4475
W a lte r S.
H a rk in s ,
rc in l. m en tio n
Tfjere a r a
oth ar r e a p e r s ,
but
it
la n e t n ecessary
to
PTATFHEWT OF C . ***• ^ a c r e t a r y re e id e n c e of
E .F B O S T ,
A th e n e ,
A la . y ou r na&e,
tha T r e a a u r y '
W i l l you s t a t e
and o c c u p a t i o n .
k r » F r o a t s C. E. Front, A tbara, A l a .
Tha S e c r e t a r y of th e T r e a a u r y . Tou a r e on t h e L o u ie v illa
S■ V a a h v i l l e R a i l r o a d .
Mr * F r o e t : T e a , a ir. And y o u r o c c u p a t io n ?
Tha P e c r * it a r y o f t h e T r e a a u r y : Mr. F roat; B arker. o f th e T r e a s u r y :
Tha S e c r e t a r y Mr Froat:
What dc ycu r e p r e s e n t ?
R a tio n a l at Athene Banks.
I represent
the F i r s t
and ta o o t h - r
banka th ?rg, w hich a r e of th e T r e a a u r y .
bo th S t a t e
The S e c r e t a r y ep aak V r. fo r a ll Froet: I
A re you a u t h c r i e e d
to
o f them? can apeak f o r one o t h e r . of the T r e & e u r y : Which one? It ia our d a a ir e on the
The S e c r e t a r y K r« to g e t F roet: in to
The F a n a e r e 1 £ M e r c h a n t s * . the C i n c i n n a t i te rrito ry
becauee aa a re
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
4479
C.
£.
Froet
c u t p o e t e o f both He* O r l e a n s end Cir.cifira.tl, w oul i be our p r e f e r e n c e c ? « r t h a r e w ould ba w o u l: Scuta ba tore c a p i t a l Be* O r l e & n a , in t h i a
ana C i n c i n n a t i
b jc a u e c wa b e l i e v e thsn
te rrito ry
there
in
In a bank
in Haw O r l e a n a ,
and what wa naad
fcr
tha
la a c r e c a p i t a l and f o r t h a t r a a e o n wa a r e
C in c in n a ti. Tha S t c r n t a r y re la tio n e 7 Jr.
Fro^t:
of
tha ' r e a s u r y .
W h ic h way a r a
yo ur t r a d e
T h ie way a l t o g e t h e r . do Do you/tafcelneee
The S e c r e t a r y o f th e T r e a a u r y : w ith C in c in n a ti? Mr. Froat: Wot v ery Much,
b u t our p e o p l e d o .
We do
We keep
no a c c o u n t w i t h C i n c i n n a t i a t p r e s e n t . t^ ro u fh V a a ftv llle , B a ltla o re
our b o elncee
and Wew Y o rk . Tou t h in k it better to
The S e c r e t a r y o f A g r i c u l t u r e : have a d l e t r l c t M r. Froet:
r u n n in g n o r t h and so u th to ay i d e a then
tfcar
e a c t ana e w e e t .
A c c o r d in g
i t wcul-i bo a l t o g e t h e r
n o r t h and e o u t h , c r c ; n » n h .. i c u l th e y e a r . ar.-.i
bee u * e
you w ould h a v e d i v e r s i f i e d
ba t a k e r c a r e o f a t d t f f e r e r t e t a g e e o f
in the f a l l 11 le # in and t o b a c c o In th e eussaor c o u ld be
Our c o t t o n
theee o t h e r c o * a c
th e o t h e r a e a s o n e
taken c * r e o f .
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Fu
£. Frost*
Ths S e c r e t a r y
o f A & ric u ltu rsz ru n rin ^
You d o u b t l e s s e a s t and « a t t
knc*
that
a d i s t r i c t was s u g g e s t e d as th s c e n t e r . Wr. F rcet: It put
w it h A t l a r t a
1 tio n e t th in k ycu w oul ' f i n ? would not bs *y id sa .
that p r a c t i c a l ;
at le a s t so u th t c p a rlc n
I t w o u ld b s n o r t h and together. If you w i l l
ths ls a r. snd tfts f a t
ths s x y r s s s lo n .
of A g ric u ltu re : What w culd be your s s c o n a
Ths S s c r e t a r v c h o ic e ? M r. F rost:
L o u is v ille .
But
1 coae
to i n s i s t in t o
on C i n -
c in ra ti
and p r o t s s t a g a i n s t H r.
feeing put
the Ssw O r l e a n s u rg in g £ irj.ln £ k a a th* not—
tsrrito ry . 2 do n o t s itu a tio n
H a r d in g you h e ard S ;t u r d a y F i r a i r . f h a* is a lo g ic a l
th in k
c o n c lu s io n o f of th£t,
at a l l . it is
I w ould n o t t e a c i t y we a r s
in f a v o r proud o f
w ith sta n d in g fu tu rs p la c e , fo r
and has a g r e a t it ie a p r o p e r
it*
but a t p r s s e n t
I do n o t t h in k and a c r e
b e c a u s e we need more c a p i t a l , in t h a t
th an
E i r a i n ^ h a * can coaaand The S e c r e t a r y
te rrito ry . Have you d i r c u s & e d th e
o f A g ric u ltu re :
q u e s t i o n w it h w ary p s o p l e Mr. F rost: Wo, s ir;
in y o u r s e c t i o n ? because it is it a ne*. and I do
T have n o t ,
q u e stio n
and t h s y
ic n o t
know a n y t h i n g a b o u t
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
■U
4461
e.
E.
Frost.
not
e ith e r.
I do n o t p r e t e n d
to 3 -now a n y t h in g a b o u t It ie a nen
it,
and I do r.ot th in k q u e stio n . is aore
the o t h e r s do e i t h e r .
But what th e f u t u r e h o ld s o u t f o r say.
t h is q u e stio n
than ar.y o f ue c a '
The P e c r e t a r y stron g d is t r ic t ?
of A g ric u ltu re :
But you w an t t o g e t
in to
a
Mr# F r o s t : Ve w an t to g e t I want to s e e us s u c c e e d , I t h in k the if it
in to a s tro n g d i s t r i c t
because
anti secon d i f I do g e t i n t o a
it ie aore p ro b a b le , I but if I throw a
stron g d i s t r i c t , th e aoney gooi th rough
transow ,
t h in k I w c u ld be a a i i n g I have
in v e s t m e n t ,
would keep o ut p a n i c s . and n e v e r p u t on a lw a y s do t h a t . it, and i f
been in yet,
t h e b a n k in g b u s i n e s s £5 y e a r s but I do not ae an t h a t Eut I w ill
the l i a i t
I aay n o t n e x t that i s a ll
tla e .
th o se a r e ay v ie w s a ^ o u t
you want to a s k a e — Ths S e c r e t a r y State of the T r e a s u r y : Do you t h i n k t h e w h o le to t h i s d is tric t?
o f Alabam a s h o u ld b s a t t a c h e d Bo* o f the T r s a s u r y :
Mr. F r o s t :
Ths S s e r e t a r y H r. Frost:
How f a r ? The s o u t h e r n p a r t m i^ht
As f a r ae Montgomery.
p e r h a p s go
to Isw O r l e a n s .
of A g r ic u lt u r e : *o u ld not th at g iv e a still
Ths S e c r e t a r y
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
I* C. E. Frost
4482
leaner di s tr ic t?
^r.
Frost:
I t w o uld bs p r s t t y If i t vent e n t ir e ly
le a n ,
bu t t h a t it
Is
th e ir
m isfo rtu n e .
to the G u l f
w o uld seem
t c me much b e t t e r . The S e c r e t a r y o f A g r i c u l t u r e : u e e ira b ls Do you t h in k it so u ld be
to have a d i s t r i c t d c * n t h e r e s i t h
lies O r l e a n s
ae a c e n t e r ? H r. *ae Frost: I do n o t . But I su p po sed t h ^ t Sew O r l e a n s gst it. In siste d
&oin& t o I n s i s t
on i t
and p r o b a b l y s o u l d
Ths S e c r e t a r y o f A g r i c u l t u r e : on i t . Ths S e c r e t a r y o f snat th e y s i l l I gst. t h in k th s s l i c s the T r e a e u r y :
A good many h * v e
It
i e more a q u e s t i o n o f
M r. F r o s t :
th ro u g h
th is
te rrito ry
in
c l u d i n g A labam a, K en tu c k y , of as
G e o rg ia ,
a p a r t o f osiddle T e n n e s s e e and it here, today, the p a r t seems to
t h e s e p e o p l e have o u t l i n e d
the t e r r i t o r y
you have been d i s c u s s i n g but i t
ms to bs most p r a c t i c a b l e , M is sis sip p i, to the* ~G u l l . th ro u g h S e o rg ia
w o u ld o c c u r
to me t h a t
and Alabam a o u gh t to be I n c l u d e d c l e a r to the G u l f w o u ld be my i d e a , o u g h t to I do not pre-
From the Lakes the m id d le of
rig h t
the U n it e d S t a t e s That is m y iv ie w .
c o n stitu te
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
th is
te rrito ry .
£.
Froet
ten i Eut
to if
knee e v e r y t h i n g , you co u ld cu t
but t h a t
le
Just »y
v ie w o f
it.
tha S t a t e
o f Alabama in two down to an other te rrito ry ,
Montgomery, p u t thee
and you heve to e e t a b l i e h
In w i t h Mew C r l e a n e , of
L o u is ia n a . Suppose we d i d n o t h&ve a be t h a t the
The S e c r e t a r y
the T r e a e u r y :
R e s e r v e Bank a t Sew O r l e a n e , w h o le e t a t e would be *lr. rig h t
4
y ou r i d e a e o u ld
In c o rp o rate d I
in t h ie d i s t r i c t ? it, ever if I wae it.
F rost; th ere
Tee.
e o u ld much p r e f e r That wo u l d
in M o b ile .
t e ay
id e a about
°TATK¥CTT OF A. The S e c r e t a r y and o c c u p a t io n ? Mr. of Jackeon: A. E. Jackson, of the T r e a s u r y :
E.
JAC&SOM. your n a x e, re sid e n c e
State
D ecatu r,
A lab a m a,
C a sh ie r
the C i t y M o t io n a l and P r e s i d e n t o f th e FI r e t n a t i o n a l A labam a. th e T r e a e u r y . What do you r e p r e e e n t ? th o se b a r k s and th s
£ank a t H a r t e e l l , The S e c r e t a r y Mr. Jackeon: I of
re p re een t tboth
C e n t r a l M o t io n a l o f Mew D e c a t u r . The S e c r e t a r y tfcle d i s t r i c t ?
M r.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
of
the T r e a s u r y :
what a r e
your id e a s a b o u t
Jackeon:
I
t h i n k ws sh o u ld
be)>on& to C i n c i n n a t i ,
!■« C. E. Frost.
4484
C e r t a i n l y we do no t * a n t to b e l o n g to A t la n t a , o r Hew O r l e a n s , b e c a u s e we want aoney down t h e r e . s t o c k a a r k e t a t an i n t e r i o r p o i n t
an J we do no t ti. ink we c o u ld be Tie a re in the second
la rg e s t
the S t a t e care
of A la b a a a ,
taken
o f a t Hew O r l e a n s
o r A tla n ta . The S e c r e t a r y
of
the T r e a s u r y :
Is
the c o u r s e
o f your b u e l -
ness s o r t w ith C in c in n a t i Ur. Jaokson: Tee. of le is
than w i t h A t l a n t a or Few O r le a n s ?
The S e c r e t a r y
M r.
the T r e a s u r y . c.o s o r e b u sin e ss
Tou do
sore
business
tn cr|
Jackson: that
o f c o u r s e * itfc B & s h v l l l e , but we c«*ae up h e r e
Tenneeeee;
our r e a l p o i n t ,
at
the s o l l c l * 4 t l o n The S e c r e t a r y reeerves? Mr. J a c k s o r :
o f— of the T r e a s u r y :
W h ere do y c u keep y ou r
With Hew T o rk . the T r e a e u r y : Tou say you cams up a t
The S e c r e t a r y o f th e s o l i c i t a t i o n Mr. J a c k s o n : The S e c r e t a r y v llle ? Mr. Jac s o n : Tee.
o f whoa? C l e a r i n g H ouse.
The W a s h * i l l s
o f A g r i c u l t u r e : Tou want to go w it h ttaah-
The S e c r e t a r y o f A g r i c u l t u r e :
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
W h e re v e r l a s h v i l l e
goes?
4466
A.
£•
Jackton
Mr. J«*ckscn: The S e c r e t a r y as th o se U r.
Y ea,
tlr« Your re&sone of a ir. e lse you d e s i r e to are tho s a a e
of A ^ rlc u lt u r«: ae to
ju u t * i v e r
the s t r e n g t h so, yes,
the d i s t r i c t ?
J tek tm i:
P ra c tic a lly ,
Tho S e c r e t a r y add?
o f A g ric u ltu re :
A n y th in g
Ur • J a c k s o n :
Too Sac r o t a r y e lasT
V o, of
s ir. tha T r a a a u r y : Mr. Rowe, have you any one
Mrm H o * e :
hara n o *.
Tha E r . o x v i l l e C l e a r i n g Kouaa haa r e p r e s e n t a t i v e s
Tha S e c r e t a r y V&o Ur
of
tha T r a a a u r y :
Va m i l l
h e a r from k t o x v i l l a *
re p re een te K n o x v ille ? J oh rator: I do*
8TATEVFVT OF H. M. JOHITCTOK *
Tne S a c r a t a r y o f tha T r a a a u r y :
re sid e n c e
Ur*
You c a y a t a t a
y ou r ne4.e,
and o c c u p a t io n ?
H* U*
Johnston:
House
Johnston;
President
of
th e J t r o x v il la
C le a rin g
A sso c ia tio n . cf ths T r e a s u r y : V h a t bank do you r e p r e s e n t
Tha S e c r e t a r y p a rtic u la rly ?
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
4486
H. II. J o h n sto n
*r • John*to r: TL t S e c r e t a r y or
U nion W a t i o n a l the T r a a a u r y :
E«r-k.
H *ve yo u c r « u M t i i l «
iroi
y o u r C l e- r in g R e u se? tlr. J o h n sto n : w h ic h I Our C l e a r i n g Ho uee p a s s e d a resolution
t h in k was read of
this c c r r i n g . Yee, it was re ad t h i s
The S e c r e t a r y cornin*. 54r. J o h n s t o n :
the T r e a a u r y :
At w h ic h
ths b ank a
unanim ously
endorasd
C in c in n a ti• Ths S s c r s t a r y s o lic ite d of the T r e a s u r y :
Was t h a t expression
in any p a r t i c u l a r way? Wo* the T r e a s u r y :
Or was
Mr. John, t o n :
Ths S s c r s t a r y oi
it
a
v o lu n ta ry
e x p re ssio n ?
—
U r.
J o h n s to n :
I t was v o l u n t a r y .
Knoxville.
It
ca a e to
b e f o r e any
com m ittee h a i v i s i t e d
1 *ant
e x p la n a tio n o f
t& at r e s o l u t i o n , A tla n ta ,
th a t since
Louisville and from R1
had com m ittees f r o s and I fe e l t h in k that
from
t h a t one o r two m s a b e rs o f e n d o rs e A t l a n t a ,
the C l s a r l n g
House
tfe«y s h o u ld but
one
t h a t 1 know o f
has n o t in re g a rd
p a rtic u la rly ,
the C l e a r i n g
House r e s o l u t i o n no q u e s t i o n
fcssr. r e e e l n l s d and t h e r e haa b e s r
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
448?
U.
Johnston.
to
i*,
-w ^ct I t
waa u n an iao u s a t
the
tia e •
t h e r e do the K n e x v il l e
The S e c r e t a r y
o f the T r e a s u r y : reeerves?
Banka keep t n t i r
Mr*
Jcfcnston:
c a rrie d v ille ,
W e l l , ths l a r g e r p a r t of t h e i r r e s e r v e l a ** i n le w York I jrreeu&e. And o u t s i d e o f t h a t , L o u i s
C i n c i n n a t i and B a lt i m o r e you w i g h t s a y w o uld he th e
p r i n c i p a l ones* The S e c r e t a r y o f d istrib u te d Mr. wae the T r e a a u r y :
I n w hat p e r c e n t a g e
ia
it
betw een th o ae p o i n t s ? I s h o u ld aay 60 p e r c e n t o f t h e r e s e r v e the p r e s e n t V e il, I tlse ? say p c e s l b l y T hat is 30 p e r c e r t .
J c h n a to n :
in la w York a t
Mr. J o h n s t o n : The S e c r e t a r y o f p o in t, Mr. la la ItT
s h o u ld
the T r a a s u r y :
the next l a r g e s t
Johnston:
Tee.
The t r e n d o f b u a i n e a a
frc a
o ur a e c t i o n
la rg e ly
tow ard C i n c i n n a t i and a lw a y a has b e e n . b etw een o ur a e c t i o n and C i n c i n n a t i and p o e e i b l y la rg e r the banka in K r o x w i l l s
The
re la tio n e p le a e a n t,
have b e e n v a r y are rep reaen ted on a c c o u n t re la tio n e
in C in c in n a ti of th s
than In any o t h e r c i t y , se rv ic e and o f
c o n v s n ie n t w a l l
th e p l e a e a n t
that s x is t
between the o f f l c l a l e
o f th e banka
in C i n c i n n a t i
and o u r t e r r i t o r y .
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
* *
*4 o c
H. 14. J o h n s t o n
The S e c r e t a r y eeoo na c h o ic e
of
the T r e a e u r y :
What w o u ld K n o x v i l l e ' s
bt?
Mr.
J o h n s to n :
W e ll,
I h ve been t r y i n g
to
th in x ,
softer
u iftC u iiin ^
the s e t t e r w i t h o u r bank p e o p l e , fre e
that p o ss ib ly sta n d p o in t.
they « o u l i f e e l A t la n t a , The S e c r e t a r y M r. J o h n sto n : of
a p h ila n th ro p ic
the T r e a e u r y : I t h in k
P h ila n th ro p ic ? they mould a l l . I have
L a rg e ly ,
n e v e r h e ard one y e t ,
and I have q u e s t i o n e d to be s e r v e d
them v e r y c l o s e l y , fr o r . C i n c i n n a t i
ea y bu t s h a t they s o u l d p r e f e r and w ould l i k e v e r y much—
The S e c r e t a r y o f th e T r e a s u r y : ti an p r a c t i c a l Mr. Jc & n sto n : reasons Tee* the T r e a s u r y :
From s e n t i m e n t a l more from A t l a n t a ?
to be s s r v e d
m The S e c r e t a r y o f and l o o k i n g a t it
D is m is s in g
s e n t im e n t sccn o m ic s if she
mere from the s t a n d p o i n t o f
v h e r e do you t h in k K n o x v i l l s w ould be b e s t wae n o t a t t a c h e d K n o x v ille ? U r. John *ton: If she was n o t a t t a c h e d to t h i s d is tric t,
ssrved,
£ & st T e n n e s s e e
in c lu d in g
to t h e C i n c i n n a t i
d istric t? The S e c r e t a r y ta c h e d
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
c f th e T r e a s u r y : p ro p o se d d i s t r i c t ,
Tee,
if
sh e wae n o t
at
to
th is
but e a s tw a rd .
4469
H. If. Jchrr,ter
I
U r . Johnston:
«e ll
p o s s i b l y Richmond. Or W a sh in gto n ?
T&e S s c r s t a r y
of the T r s a s u r y :
¥- £-
d r , Johns tor.:
Tr.s S e c r e t a r y Mr. Jcfc r * t c n : little
of
the T r s a s u r y : fro a t h e se
Or E a l t i s o r e ? three t h e r e w o u ld be v e r y
Yes,
d iffe re n c e of
in s e r v i c e . th s T r s a s u r y : If you d id That w ould bs tne n a t u r a l
The S e c r e t a r y b e r .t , Mr. v ille would it
n ot.
n o t cosse to C i n c i n n a t i ? ab o v e Knox b u t b e lo w and X f e e l that C in d is tric t ars
J o h n 't o r .: ths
You s i g h t s a y t h a t 60 a l l s s is
trsn d o f b u sin ess th s trsn d Is a l l
to w a rd s R lchaon ti,
th at p o in t
to w a rd s C i n c i n n a t i , as lik e I understand
t h a t on a c c o u n t o f the d i s t r i c t cm n atl b.*s l a i d out, it sees*
a very d e s i r a b l e of the d i s t r i c t
on a c c o u n t o f t h s f a c t not thet the sasis a t
t h a t th s * an t a
the s a s e out,
s s a s o n o f th e y e a r . it seess to c e ,
The d i s t r i c t
thsy havs l a i d in e v e r y
o u£ h t to be s e l f And o u r t im b e r in te re sts ths tnat
•u s t& lrln s In terests are
senss o f
the w o r d .
and c c a l and g a r b l e
and o u r t r u c k i n g
la rg e ly
t h i s way a l t o c e t h e r .
Our c o n n e c t io n s w i t h We h a vs a fs w
b an k s a r s
a lso st e n tirs ly
in C i n c i n n a t i .
havs A t la n t a accounts
The S e c r e t a r y
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
and one p o s s i b l y
i n R ic h e o n d .
of
the Treasury:
Why do you k es p s u c h a
4490
H. M. Jo h n s t o n
la rg e Mr.
p a r t o f y ou r r e ila rv a Johruster.:
ir
le u
York? fo r d la -
* e fcs.vc ueed Kew York l a r g e l y
c c u n tin g . The S a c r a t a r y c o u n ts? H r. J o h n sto n : T «* # e s p e c ia lly tha T r a a a u r y : exchange. W ith , tha p a r r i n & o f .the n e c e a e i t y fo r of tho T r a a s u r y : Exchange p u r p o e e e and d i e -
The S a c r a t a r y o f exchanges between
theee fle e e r v e Eanke would it not?
t h a t w o uld d i s a p p e a r , U r.
J o h n a tc n : I n a e e n a e , y e a , a i r . I t h in , tu la , who ban ka/are n o t s s a b e r e o f the R e g i o n a l Bank, auch aa S tate Banks and T r u s t C o * p a n i e e , on a c c o u n t o f e s p e c ia lly ba a b l e
that
the c e n n e c t i o n i t h ro u g h th a
s
wa have had w it h o u r corree^on cser t e , C in c in n a ti d i s t r i c t ,
wa w ould p o e e i b l y than wa w ould
to h a n d le
trioee sxch a n g ea b a t t e r ro u tin g to
to ch an ge o u r g e n e r a l
eome o t h e r p a r t a w here
they a r e n o t a c c u e t o a e d banks. la a ilia r w it n the
to o a n a le
th eee e x c h a n g e s froat n o n - a ^ k e r o f A g ric u ltu re : You a r s
The S e c r e t a r y e e c tlo r to
the south? F a irly of ao. Wfrat do you t h in k o f th e
v:r. J c h r s t o n : The S e c r e t a r y e u ^ g e e tlo n
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
A g ric u ltu re :
that
the d i a t r l c t
ought
to be e x t e n d e d s o u th w a rd
IT
H. M. J o h n sto n .
4491
to i n c l u d e p a r t o f A i rbnjz& an1 M i e s i e ^ i p p i T M r, J hnaton: 1 to n o t e e e why & p a r t o f AlabajR ard i l i a a ~
Doee any &ae e l s e w iah t o ape&A f o r K n o & v i li e ? M r. Meweg F a i n t P I e a e a n t , W eat V i r g i n i a i n h a r e . e f A ^ rle u ltu re : We w i l l h e »r fro ia P o i n t
The S e c r e t a r y P le a a & n t .
STATEXOTTT OP C. C . The S e c r e t a r y o f A g r l c i i l t u r e s Ur* Bowyer:
BOWTER. y o u r na&eT
What i e
C. C. B ow yer, P o i n t P l e & e a n t , W eet Y i r g l r i a . o f A g ric u ltu re s W here l e P o in t P le a sa n t? abcre h ere.
The S e c r e t a r y M r. Bcwyers
We a r e on t h e O U o H i r e r £04 i s l i e a e f A g ric u ltu re s We e r a ST v i l e e Ie it
The S e o r e t a r y M r* l o w y e r t
n e a r P a r * e r a burg?
e c a lh e f P ar * e r eb u rg • Whoa do ycu r e ^ r c a e n t ?
th e P o i n t P l e a s a n t n a t i o n a l B a n * .
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
^
C. C. Sawyer.
448S
the P t .
P le a e & n t T r u « t aa c^vtahler. of
\ n i t h e Msrcihanta l a U c m l
4 your t i f w
Bar k* o f which I The 3 t c r g U r y M ttart H r. B e '7 « r :
tho T r e a s u r y :
What i s
o f th is
1 «n ,tlrj
**
ff^Yor C i n o . m - t i r . r y
tu c iu
M m I of our tuaineee la hara.
73 or 80 p«r can*. of c«r
bualntta I au£poea ccmaa to Cincinnati an ! tho buainaee of
o u r mere H ants l a r . It it* la r g e ly here, and moat o f c u r exc h a n g ee a r a
C in c in n a ti# tha T r a a a u r y ! T cur V u a in *«3 i a aX&oet
Tha S e c r e t a r y o f
w h o l l y w it h C i n c i n n a t i ? Ur* B ow yer: Yea, of a ir; a l u o a t w h o lly * Uh? t w ool 1 h a y ^ u r a e c o n t 111 n o t h a r t a ban*?
j sc sx> I c h i c a , aw M le ago aa
Tha S a c r a t a r y ch o ic e in M r.
in
the T r a a a u r y * If
th ia
U a trlo t W a ll ir
C ln o lfv r ft t l
B ow yer:
wa r e a l l y feawe n c fre & y o u r o f f i c e ohc i c e ,
t ir
but
to
r a a p o n a a to a n i n q u i r y aeconl a«1
aaoon 1 & n l
tha f i r * * t ,
W a h ln g to B
thirl
wa e » T a C i n c i n n a t i
. as
first,
Baltim ore
Tha S3~r«t ry -f the Tra- 4ur; i la thar-s any one slaat
fcr. They Rc « : U
That
all,
thanc y< u.
We v Te Mr* We ^h c f Went V i r g i n i a
in
jr*i U r .
S w c^e.
JJrt ^ a « a to hnve c o m
yet*
K r.
Brc <n fr e e .
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
it
4493
3 , r i.n g f ia l d
tr1
i jr.
W asxer
’roit C e n t e r v i l l e
tire I e r a .
STATO^SET
OF
J.
B.
W ALKED.
The 8 sc r o t a r y a n i o c c u p a t io n ?
Mr* r^*ksr:
o f ths Treeaurys
State
ycur nute,
r e e l 1t n o t
J.
B.
W a lk e r,
Cert a m
lie,
Tennessee.
Ths S e c r e t a r y i r, W a lk e r :
o f ths T reaaury: Ml i I s T e n n e s s e e .
W h ere i s
C u n td n rU lo t
Ths S so r o t a r y c f t h s T r e a s u r y ! Ur* W a lk e r s F ifty * lie s
B e a r what p c i n t ?
west o f S a s h Y ille . W hnt d o y o u r e p r e s e n t ?
Ths S e c r e t a r y
»
o f ths T reasu ry ! The f i r a t
M r. W a l k e r : .•ra c im lly
I & l i c n & l Bank, o f C w t e r U i i e
and two o t h e r banks by * r oxy. What l e ths ie s lra e f the
The S e c r e t a r y e f t h e T r e a s u r y s fcenk* i n y o u r ooxsasftnlty?
M r.
Walk o r j
W e ll
tho n a tio n a l
i n t e r e s t s and o u r s a r e
identical. ilentical*
The b a i u # e f M i i i l e T e n n e s s e e a n i B a a h v i l l e a r e P ersonal
y I
p r e fe r C in c in n a ti, e s p e c ia lly w I t in k
re g a rd le ss
they
of
whr t Wa s h r i l l e w a n t s , t u t
it is
so s i n c e
it
tK ln k
tc
t 'i e l r
internet,
is.
I
VHlnk. i t
is
g re a tly
to o u r i n t e r e s t
to h a r e C i n c i n n a t i
aa our Beserw e
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
4404
-
The 8 « c r a t H r y
o f th e T re & a u ry :
It
is
your v ie w th e t
Klabtuea a h c u l 1 be i n c l u d e 1 I n lir* V ^ lk e r s I
the i l a t r l c t ? to i t . W ould you thin*. i t
e h o u ld n o t o b j e c t
Th# S e c r e t r y o f the T r e ^ u r y s I d o o lra b le T Mr* W a lk e r s Tea* I t h in k I t
w ould be* Uettphie r e p r e a e n t e i u e w i t h
The S e c r e t a r y o f A g r i c u l t u r e : a U a tric t i t h tfe su h ie a a T ee *
Sou th f a r a B e a e r r e Bar*.* The S e c r e t a r y o f A g r i c u l t u r e s U r * W a lk e rs R e i in k . Have y en a p p e a r e d r o l u n t riiy Too c.uch what?
The S e c r e t a r y o f t h e T r o a a u r y s a r by th e s o l i c i t a t i o n
o f C in c in n a ti?
Mr* Walkers
W e ll,
I * * e not e clic lted by Cincinnati at all*
I have had « c o r r e a , endenue w ith th e n
I i is;ht H^?e h#» l e 1 O t t e r .
h a r e f o r y o a r e on1 yen r e &nd Have b e e n i d e n t i f i e d f o r y e a re a n l yenre* 16 9 3, and I eo t c t . An I by th e w ay ,
d u r i n g th o p a n i c o f th ree p a n ic # ,
a a a young nan t o h » ? e g o n e t h r o u g h C i n e —v ti > «n e
c o u l l not have g o tte n
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
J.
B. W arier.
4495
it
e ls e here.
I
am a st ro n g b e l i e v e r
in
the f i n a n c i a l
s t r e ^ f th c f C i n c i n n a t i . The S c o r e t r y c f b u sin e ss la r g e ly Mr. a fa ir
W xlk or:
the T r e a s u r y :
Is
the c o u rse o f your
w ith C i n c i n n a t i ? s ir; it is iiv ile d
c c n siie r a b ly .
No,
We k ee p
b a l a n c e h e r e w it h o u r c o r r a a , o a d e n t e . o f th e T r e a s u r y : How coach o f y o u r r e a s r r e *
The S e c r e t a r y
l o ycu keep here? M r. W a lk e r : The S e c r e t a r y b u sin ess? Mr. W »x*er: Yea, n o rm al. Or i s it in d u c e d by th e About o n e - f o u r t h . cf th e T r e a e u r y : Does t h a t r e p r e s e n t n c r t A l
The S e c r e t a r y o f th e T r e a e u r y : in te re st r a t e a n i oth er f a c i l i t i e s
g iv e n ? somewhat ^ u i e t , Wo k ee p
Mr. W a lk e r :
W e ll our p re s e n t account l e
whenever i t
a l t h o u g h we c h e c k on i t it
la
c o n v en ien t.
ae a ia a t t e r o f exchange a n i b u s i n e s s f a c i l i t i e s . Tho S e c r e t a r y Mr. W a lk e r : The S e c r e t a r y Mr. W a lk sr: of th e T r e a s u r y : What i s your a e c c n i c h o ic e ?
N a s h v ille . of th e T r e a s u r y : Have you a t h i r d * tho way i t is la i 1 o ff.
Hot i n t h i s
U stric t,
Tho S e c r e t a r y
o f A g ric u ltu re :
Of sny o t h e r
lis tric t?
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
.4 9 0 J. E. ‘'ii er*
Th# S e c r e t a r y
tf
V ie Tr<y* iu ry :
Any e t h a r
31s t r i c t
ycu
h i r e i n Lolnd t h a t wcul 1 b e # r » c U c - W f a n i c c r t f o n : w i t h Ib itX tflf kr» trio te j3 A t ~ mi iter: I r jr If I w re I to aucgeat, I w c u ll »a k e th e f a t the fry in g ia — the
s till*
fur a b e l i e r c r i n
1 t in k we ought to g o e l e a r t.crca<j th s c o u r t r y *
e- ay oug)&t to be
j
Z t h in k n c r t b a n i e a s t w h ere » o n e y l e t im tl wlt>* t v e scu tH a n '
e e t trhore the is n ry i .
n,
I w h e re th e y
t h e r e a c u r o e e e&d ra w n l t r U
T he 8 e c r e t r jr y c f A g r i c u l t u r e s aad that l e about a l l M t
Tou c o u l i t a k e l U c h l g a n , th a n d s o u th * ik t h e l i n e the wle-»
you o c u l 5 ex to n Bvt I
Mr* H l k i r t
i e about a l l *
4 1 h t even go to Hew O r l e a n e p o e a i b l y ,
deal o f i t * M -a l e s l .i. o f A* r l w u l t u r e : In I
but 1 lo u b t
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I I tvinfc i t l o no t tM n lt I t asounte tc eo c u c h , to f o t i f th e go o i s a r o t h e r e when y<u g o t th ere, t h i n k t h e M a t t e r e f bran ch banka — * t h e r e l e on them a n i they w i l l come i n a t t h e r i g h t
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The S e c r e t a r y a n i o c c u p a tio n ? Mr* Browns J . W. B rc a n , Tean eeo ee* o f th e T r e a a u r y * o f th o T r w a u r y t
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ua u£ h e r e . o f tha T raaau ry* If you i i i U ttric t not have » c u l 4 you p r t -
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whitt o t h e r o i t y
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and th a n C i n c i n n a t i
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ry c f tha T r e a e u r y * W a ll
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that * c u l 1 b a alrig h t.
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o f Agricultural
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w c u ld s e r v e ua a b o u t a a w a l l ,
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th # 0 g e l*»b jr»
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ani trad#
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ona o f t h e banjos, a n i o n ly a *«m X l p e n We r e l y <n C i n c i n n a t i a m a n u fa c t u r in g fa r town, our *? y ro lle , j o f a lv u t
c o ’ t « g e i n He* Tork#
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we r e q u i r e n b o v t $&>£,QQO a acerth f o r o u r
p a y r o l l s I n c e a h j and we oan g e t t h a t BAtch itore * : r a n t ^ g s o u s ly f r o * C in c in n a ti The Bmmrm tarj in th le M r. if than m y o t h e r c i t y * the T r e a e u r y * H a re ycu a m e a d c h o ic e
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axfct I
lo n e t
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it*
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o f A g ric u ltu re *
b u s l n e e a to th e sou th? Tea, vary l a r g e l y to the so u th .
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••
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f?. D. R enick
The S e c r e t a r y M r. ft*n ic k :
of A g ric u ltu re :
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Birm ingham, I f a a h v l J l e ,
O r e la n e a r e
tha p r i n c i p a l p o i n t s . o f the T r e a a u r y : What i a the R ^ n u U c t u r e ?
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M a n u fa c tu re o f p a p e r b a g * . o f A g ric u ltu re : w e ll? o n ly from the C i n c i n n a t i jo b i e r a , who Do you c o v e r M l s s i e e i p p l
an d Alabama p r e t t y M r. R e n ic k : V e il
cover that t e r r i t o r y .
We c o v e r Alabama f r o s Birmingham a n i
G e o r g i a a n i F l o r i d a and Worth a n i &cuth C a r o l i n a from A tla n ta , and L o v e r M i e e i e e i p p i and L o u i s i a n a and E a s t e r n
T exae from !fe» O r l e a n s . The S e c r e t a r y products? M f • R s n ic k : coses Tee. A la rg e the p ercen tage o f y o u r product and f i n i s h e d o f the T**eaeury: But they h a n d le y o u r
th r o u g h C i n c i n n a t i ,
raw s a t e r i a l
product as w e l l .
STATFUFWT OF £ . The S e c r e t a r y o f the T r e a s u r y :
D. TITTOW. W ill you s t a t e y c u r n a a e t
r e e l ier.ee an d o c c u p a t io n ? M r. F ltto n : O h io . 8. D. F i t t o n , P re s id e n t F ire t W a t l c n a l Bank
H a m ilt o n ,
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Tho 8 0 0 r o t a r y C l e a r i n g HcuooT M r. F ltto n :
o f the t r e a s u r y :
Do you r e p r e e e n t tho
T oo. o f tho T r e a a u r y : Hava you the re s o lu tio n ?
Tho S e c r e t a r y Mr. ani
F ltto n : Ho I xae a b s e n t and 'p h o n e d the® yooterelay # they a a * e d aa t o c o a * a n i r e p r e s e n t them, u n a n i * .o u a ly . o f tho T r e a e u r y : Ycu a r e In f a v o r o f
Ths S e o r o t a r y C in c in n a ti, I
preauae? Tee, o i r . o f tb e T r e a e u r y : Y oo. o f the ^ r e a o u r y : Moot c f y o u r t r a l s is H a tu ra lly ?
M r. F l t t o n : Tho S e c r e t a r y M r. F l t t o n : Tho S e c r e t a r y
hsro?
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M r.
F ltto n :
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A bout 25 m i l o o . o f the r r e a o u r y : je that the v ie * of a ll tho
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M r,
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Mr. F ltto n :
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j f we were t o have one I e h o u ld eay C h i c a g o .
o f the T r e a e u r y : Tee. o f the T re a e u ry : W ith in t h le d le trlc t ex C h ic ag o ?
The S e o r e t a r y Mr I F l t t o n : The S e o r e t a r y
c l u d i n g C h ic a g o what s c u l l you eay neatT M r. F l t t o n : n ext. The S e o r e t a r y H r. F ltto n : o f the T r e a e u r y : Tee. In d la n a p o lle T W e ll I r a t h e r t h in k In d la n a p o lie mould he
oue t o ue ae
I n d la t n a p o li e . o f A g rla u lfc tre : Hoe a b o u t C olunbue?
The S e c r e t a r y M r, F l t t o n : a b c u t th e e a a * . e lig ib le fo r a l l
W e l l 1 mould r e g a r d C o lu a b u e an d C l e v e l a n d 1 w o u ld t h in k C i n c i n n a t i w o u ld be n o r e the d l e t r l c t t h a n e i t h e r C o lu a b u e or
C le v e la n d .
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
••
4504
S?ATFK***T OF n. L . BURCH • Tha S e c r e t a r y ani o c c u p a tio n ? RL, B u r c h # P u b l i s h e r o f Tha M erchant and o f tha t r e a s u r y : State y c u r na& a# r a a id a n o a
Mr. B urch :
M a n u f a c t u r e r and The S o u th e rn fcomanf » M a g a z in e * Tha S e c r e t a r y M r. B urch: o f the T reaeury: What do you r e p r e e e n t ?
The N a e h v i l l e c f the
B oard o t T r a d e * Have ycu eoae re e o lu tic n *? of
The S e c r e t a r y Mr* B u rc h :
^reaeury:
Mo, a i r ;
ee c o n c u r r e d i n the
re a c lu tic n a
the C l e a r i n g H t u e e . The S e c r e t a r y e f tha T r e a a u r y : What o f f i c i a l p o e i t i c n have
ycu *1 th the B e a r d o f Trade? ■ r # B u rc h : preeen t* 1 h a re n o t any o f f i c i a l p e titio n ju e t a t
I t«ae P r e s i d e n t and a a nee e x - P r e e l i e n t . o f the T r e a a u r y : They h a r e le l e g a t e d y cu
The S e c r e t a r y t o a p p e a r h e re? Mr* B urch : a b rie f course care t o , a fe e
Tee,
they d e l e g a t e d me t o a p p e a r h e r e * the trade
I have
e t a t e a e n t c o n c e r n in g o f trade 1 w ill
r e l a t i o n e and tfee and i f *111 ycu
i n c u r p a r t o f the c can t r y , read i t * 1 do n o t t h i n k I t
ta k e b u t
a in u te e . o f the t r e a e u r y : Read i t .
The S e c r e t a r y
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••
R.L.Burtfh
4505
Mr. B urch : *e t h in k it
Aa we a i a h
t o be i n C i n c i n n a t i * e
te rrito ry , te rri
p ro p e r to a ta te
c u r vie#»e a a t o ahat t h a t our la p c tta n c e
tory
s h o u ld b e ,
and p r e e e n t b r i e f l y
aa a
b u e i n e a a a n i b ankin g c a r t e r ,
cck
cur r e l a t i c n a h i p to th e o f T e n n s a e e o , K e n tu c k y ,
e r c e and b u a in e e ?
of the e l a t e s
V ie e le e lp p l,
Alabam a a n i G e o r g i a . of the b u s i n e s s ae n c f cur t e r r i t o r y , o f tha a fte r
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c a r e fu l a n a ly s is le
o f the p ru p c a e a la tc
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that i t
th e ir beat c c u n try ,
l n t e r e e t , and hence
the b e a t I n t e r n e t
o f the
to be i n a region o f the a e a r e and re q u ire a e n ta
d iv e ra ifle d fa c llitia a o f the
in lu e trie e , fo r
one »h ic h cf a ll
poaaeseee
ta k in g care and a s
the b u e i n e a a
re g io n ,
f a r aa p o e a ib la
i n i e p e n ier.tly o f any e s s e n tia l, in c r i e r that
oth er rsg ic n . t h a t th s the to
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g e n e r a l purposes i n which as a r s its e lf, its
o f tha la w may be a t t a i n e d ; l o c a t o d s h a l l be f u l l sail
re g io n fin an c e
strong enough ths cf
re a lis in g parts
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aystea ths in
in a l l
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success U ie *md
a y a t e a a a a v h o le w i l l be v isa ,
ia p e rile d .
th** b a n k in g *n d b u a i n e e e te rrito ry have put a s i d e c la lp
in te recta
c f N a s h v il l e and
trib u ta ry
l o c a l p r id e and have Sn
i n le r a e d C i n c i n n a t i * *
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f o r a F e d e r a l R e s e r v e B an k ,
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R.
L.
Burch
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4506
th e b e l i e f and u n l e r a t u n d t h a t the serve w i l l be ao b a l a n c e 1, and i t s
r e g i o n t»hich i t
w ill
r e g i o n a l book c r euch in iu a tri.e e o f tbe way
c a p i t a l i z a t i o n and s t r e n g t h t h a t t b e re g io n , rn a d ily a g ric u ltu ra l,
m a n u fa c t u r in g and c o i u c e r c i a l , tim e s,
be accociitc Jated a t a l l re a lis e that a
fu lly
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th erere g io n s
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composed o f b o th S o u t h e r n and H c r t h e m t e r r i t o r y . sh o u ld , o f O h io , th e re fo re , In lia n a , in a g e n e ra l r.eet V i r g i n i a , *ay, co m prise
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not b u sin sse
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r e a s o n s a l o n e s h i c h c a u se
the S c u t h t o n e ed
largs
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R.
L.
Burch
4507
sums o f money from the p a rtic u la rly the all case are its its
out a l i e
to ca rry
on i t s
In d u s tr ie ® , cn when
a g ricu ltu ral
in d u *trie s,
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c o n d i t io n # i^are
r e s u l t i n g from
the C i v i l f a r ,
in d u strie s
p a r a ly s e d , and an e n tire
re ad ju st
ment of c o n d i t i o n * As to t h e
made n e c e s s a r y . im p o rtance o f 5r<vshville and s u r ro u n d and p a r t ic u la r ly A la b a m a , a n d b a n k in g
h e a r in g and on t h e
States
in g c o u n t r y
thcsti
in d u s t r ie s
o f the S o u t h , Tennessee,
of th e
of K e n tu c k y ,
M i s s i s s i p p i a n d fteorgia - t ra d e moves* S o u t h , mcvas N o r t h . N a sh v ille
does a w h o l e s a l e a n d m a n u f a c t u r in g b u x in e *
o f a p p r o x im a t e l y
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is
in
the
t e r r i t o r y So uth *ith
c o n sid sra b le b u s in e s s
Southern Kentucky.
w h o le s a le h o u s e s fc.nl m a n u f a c t u r in g co n c ern s have sa le sm e n every my of
the
year in
the
territo ry
im m e d ia tely a d j o i n i n g M iss. But g e n e ra l
M e m p h is, A t l a n t a , ly s p e a k in g these
Bing&ngfcam a n d J a c k s o n , cities nevar h ^ /e
re p ese n tativ es is South
i n our
te rrito ry . save that
The b u l k
of t h ie r b u s in e s s
of them , Korth.
o f a n im m ediate a n d c o n t ig u o u s goods sell
te rr ito ry l y i n ^ t h a t is the
The payment f o r tr.e b a n k in g , comes North
South,
t o l Z a a h v il l e ;
and
our b a n k in g b u s i n e s s As a n e v id e n c e of
l i k e w i s e sieves North
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to w a rd s C i n c i n n a t i ,
••
H. I .
Burch
4508
th e way In fchioh b u a i n e s * a c r e s Scruth I c a l l your a tte n tio n in
the f a c t
to
t h a t one c f the m agazines which I p u b l i e h , i n Savannah a n i C h a r l e s t o n , lie fo r
u r l e r to g e t d i s t r i b u t i o n
e x a a p l e , must f i r s t be s h ip p e d t o Y a e h i n ^ t o n , * h i c h trib u te s to a l l A tla n tic C oaet c i t i e s Bouth o f i t *
W a s h v ille 's s t r o n g , as i s
p o s i t i o n a s a b a n k in g c e n t e r i s aho*n by the f a c t n a tu ra lly of
e x c e p tio n a lly reserve conany o f
th a t w ith o u t b e in g a course of b u sin e ss
I
if
c ity ,
it
c a rrie s
i n th s
s l i s r a b l y sore
isp o sits
out o f town ban k s t h a n l o
th e S o u th e rn c i t l e e K a e h v ille sore i te e I f
n aaed a b o v e . i e an i d e a l o i t y fo r a r e g io n a l bank, ae i t le the
than s i g h t b an k s a r s
deemed a d v i s a b l e ,
center c f a t e r r it o r y c o t t o n and t o b a c c o . aIvan tags. Its wh a t
e h ic h h a n d le s
s u c c e s s i v e l y whefca, pcsessses th is
Ho o t h e r S o u t h e r n c i t y is
h a r v s s t s d and s o l d i n June, J u l y ,
A u g u s t and S ep te m b er, ready f o r h a n d lin g e o ll
and the monsy d s p o a i t s d i n t h s ban k s *h ich is g a t h s r s d an d
the c o t t o n c r o p ,
i n B ep te m b er, O c t o b e r JVovesber an d December* th is crop i s d s p o s lts d in its banks ready fo r
The money f o r h a n d l i n g th s [ a n d M arch,
tobacco c ro p ,
which i s
s o ld
in January,
February
so t h a t each c r o p f u m i s h s s ao n e y f o r m ovin g th s
s u c c e e d in g crop*
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
••
R.
L.
Burch
4509
N a s h v ille
■ere ? o u th
i s a very la r g e
m a n u fa c t u r in g c e n t e r ,
t h a n any
h a v in g city
d iv e r e i f i e d itanuf a c t u r i n g i n m t r i e a
of
the O t i c R i v e r , sood-
some
of
the®, b e i n g f l o u r K i l l cotton a n i
fo u n a r y The
p ro lu c te , it
cry in g p r o lu c ts ,
p re lu d e , liv e -s to c k
ani
ie a ls o a l i v s -s t o c k
c e n t e r of i m p o r t a n c e .
bu sin ess N a s h v ills
o t Ten nessee amounts
to $ 1 7 0 ,0 0 0 ,0 0 0 a y e a r , c ity
o f the state.
is
the
c h ie f liv e -s to c k
1 f a s h v i l l e 9s m a n u fa c t u r in g p r o l u c t s amount t o $ 4 0 , 0 0 0 , 0 0 0 p e r annum. ed u c atio n al w ith e v e r y rid e N a sh v ille cen eter, is rec o g n ise d as say i t
jt the S o u t h 9s g r e a t e s t in
In t h i s
is is
co nstantly
touch
p o r t i o n o f the S o u t h . St. L o u is , a n i as
i n any e a s y n i . , h t vs a n t of
B ir m in g
ol C in c in n a ti,
In d ia n a p o lis
p r i n c i p a l Southern p o i n t s , ham, A t l a n t a , g iv in g it
L o u is v ille ,
tfemphis,
a s tra te g ic
ad van tage as a c l e a r i n g
houss betw een the s e c t i o n s . The S e c r e t a r y second c h o ic e ; Mr. B u rc h : o f ue f e e l c f th e T r a s u r y : in t h is I n the te rrito ry as tihat t.ould be as o u tlin e d ? I
t h in k a s a l l
N a s h v ille 's
te rrito ry
o u tlin e d
t h a t o u r own c i t y
is — I am e x c l u d i n g N a s h v ille
The S e c r e t a r y fo r the pu rpose
o f the Treasury: o f the
d isc u ssio n .
I w o u l d say L o u isv ille ,
Ilr. B u r c h :
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Tes,
I understand.
H.
L.
Burob
45LC
cut
I h a rily
fe e l
ycu c o u ld M y
second c h o i c e ,
fo r
the
re ae o n and
we 4o n o t b e l i e v e s u ffic is n tly «o u ld re a e c n *ith
the t e r i t o r y l y i n g n o r t h
of L c u ls v ills
f a r n o rth
to sa k e i t a g o o * s t r o n g d i e t r i o t «lth L o u ie v ills , it and f o r . that
good g r a c e c o o p e r a t e
I ;lo n o t t h in k ycu c o u ld c a l l o f the t r e a s u r y : d is tric t t h e re
s e c c n i ch o ic
The S e c r e t a r y
V hat i e
y o u r v ie w a b o u t
the s x t s n s i o n o f t h i e Mr. B urch : b efo re I stated
f u r t h e r south? I drew up th le
i n the p a p e r t f* ic h I h e a r d the
1 l e f t home and b e l o r e thou gh t i t
d iso u ssio n
m orn ing t h a t I The S e c r e t a r y
eh c u l l go a t I
ls a a t
t o Montgom ery.
o f the T r e a e u r y :
*aa s p e a k in g ab o u t g o in g
f u r t h e r scutfc than Montgomery. Mr, B urch: 1 t h in k it w o uld be h a r d l y proper. The t r a d e
f u r t h e r ec u th moves n a t u r a l l y a n d my o p i n i o n a b c u t t h a t e h c u ld b s in ths B t.
t o M o b ile and www O r l e a n s , le t h a t Hew O r l e a n s th s tsrrito ry th s
te rrito ry
L o u is t e r r i t o r y an d h s n c s
i n Alabam a so u th o f Montgomery w o uld n a t u r a l l y Ms* O r l f a n s - 9 t « L c u l s Ths S e c r e t a r y s p lit nect B t. re g io n a l t e r r it o r y . Do you t h i n k
bs i n
o f the Treasury:
th a t k in d o f a
w c u ld work w e l l , i t up » l t h
to a tta c h a p a rt
o f A labam a an d con
Hew O r le a n s an d then c o n n e c t t h a t up w i t h
L o u ie ?
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
1 . t* Burch
4511
Mr* B urch: e p e c la l
kotos
*> e ll,
s ir,
I
do n o t t h in k t h e ^ a w c u ld be Tho t e r r i t o r y haa t o be s o u th
my
o b je c t io n to t h a t .
o f Montgomery
sou thw ard nnd the l i c e
seeew h ere,
• h e r e th e y d i v i d e * the S e c re t ry c f A g r i c u l t u r e : Ycu t*re
suit j e s t i n
g
another
n o rth .m d eouth d i s t r i c t w e s t c f th e M i s s i s s i p p i p ra c tic a lly ? M r. B urch: Y «j * o f A p ic u ltu re :
P ite r,
The S e c r e t a r y F lo rid a
Whafc mould ycu dc w it h
and G e o r g ia ? I wculd p l a c e F l o r i d a *nd s c a t o f G e e rg ia in
Mr* B urch:
t h e A t l a n t i c C o a s t d i v i s i o n w i t h W a s h in g to n o r B a l t i m o r e a t t h e h ead * The S e c r e t th o u gh t ry c f A g r i c u l t u r e : Fhat ie the c o n t r o l l i n g north
i n y r u r mind i n a r r a n g i t i g t h e e d i s t r i c t s
m d eouth? Ifr. B u rc h : T hat th e y s h o u ld be b a l a n c e d ; th *.t i s , as it th ere s ig h t be
s h o u ld be a m a n u fa c t u rin g tarred, o ld a d ia trio t
a n i ron ey d i s t r i c t , is a re s e rv rir
who^-e t h e r e
c f money, L o u ie
c o n t e r e suoh
as B a l t i m o r e ,
C in o in n t i
j&d 8 t .
and c i t i e s
o f t h a t d e s c r i p t i o n w hich have f o r nd l e n d e r s
a le n g p e rio d o f soaey;
c f tim e been d e p o s i t o r s o f money
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
F• i.
Burch
4 5 1 2
be th e y w c u ld / th e d is tric ts d ie t n o t e ly in g
c e n t e r o f the r e g i o n o f the S o u t h e r n south o f t h e » , eo t h a t t h e v a r i o u s Southern where
to th e l o n e r South from h a v in g S t a t e s l i k e
O hio
I n d i a n a oonneoted w it h thee? Mr. Burch: yes
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
R.
I.
Burch
4513
The S e c r e t a r y o f A g r i c u l t u r e :
g a i n tc Ohio and I n d i a n a
Can yr;u f i g u r e
o u t any
from t h a t c o n n e c t io n ?
I th in k i t w c u ld be a g a i n t o th e
M r.
B urch:
Tes,
a ir,
R e gio n al
Bank i n ec Bruch ae t h e r e w c u ld b e a c o n s i d e r a b l e the«*e w c u ld be l ^ r g e
u s e o f money a t a t i e s when p c s e l b l y d e p o e lte o f woney i n t h o s e c i t i e s
i n those s t a t e e . One end e f th e d i s t r i c t , o t h e r th e
The S e c r e t x r y c f A g r i c u l t u r e :
i n 'O t h e r v c r d e , w cu ld have th e s u p p ly and t h e d m and? M r. B u rc h : Tea, s ir*
The S e c r e t a r y c f A g r i c u l t u r e : le
Which i n y c u r judgm ent
n e c e s s a r y t c g i v e a w e l l b a la n c e d d l e t r l c t ? M r. B urch : Tee, and a s u c c e s s f u l o f stock b a n k , w hich ie a lso
b *nks
necessary. t n e w s e lv e s
The h o l d e r s
i n the b u l k ,
the
*fceh t c s e e th it s t o c k p ay d i v i d e n d s I take i t .
STATEMENT OF JAME8 A. The S e c r e t a r y and o c c u p a t io n * M r. G r e e n : * rch i t , J a »e e A. Greeny c f the T r e a s u r y : S tate
GRFFH. ycur n * a e , re sid e n c e
C in c in n a ti*
I
aa a p i g is
iro n the
w ith Matthew Adtiy & C o e p a n y ,
C in c in n a ti
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
H* L • dur
4514
c l e a r i n g house f c r a Tery l a r g e p a r t ■ ade in t h e S t it e o f O h io , iro n which l a » a 1 e
o f th e
i r o n w hich l a a ll not o f the oonaused
and f o r p r a c t i c a l l y
I n the eouth and fchlch l e
lo c a lly . The 8 e o r e t a r y ba»a d is tric t? U r. G reen: I as s p e a k in g o f t h e A l a b a a a d i s t r i c t and o f o f th e T r e a e u r y : A re ycu s p e a k i n g e f the A la -
th e Ten nessee and Kentuoky d i s t r i c t s . o u t o f e v e r y t e n ton e o f i r o n s a l e a r e h a n d le d th ro u g h C i n c i n n a t i , in
I p re& u a d e th i t n i n e the S t a t e o f T en nesee
and n in e
o u t o f ewtsry t e n
o f A la b a s a I r e n not used i n A la b a s a , C in c in n a ti. T h ers are g re a t
a r e h a n d le d h e r e i n i n t h e s o u th lik e W is e C o u n ty , C lo
coke f i e l d s
• h e r e th e coke l e
a sserch^nt p r o p o e l t i c n , le
and th e coke n o t used l o c a l l y c i nr, % ti. C in c in n a ti le
a llh a n d le d
through
th e hoae c f e e v e r a l t e r y th le
1 .rg e and coke and
e x te n e lse p ig th le iro n .
i r o n h c u se e which d l e t r i h u t e o f course,
The d i e t r i b u t i r n , but i t goes
Is v a in ly
In the
cen tal
w est,
i l l o t e r the c o u n try .
A re y cu f a w l l l a r w i t h ^rca C i n c i n n a t i .
The Sec r o t
r y o f the T r e a s u r y :
the d i s t r i b u t i o n o f g e n e ra l
c o n o d ltle s
Mr • O rrtB S
Yes. o f the T r e a s u r y : What l i n e s p a rtic u la rly
The S e c r e t a r y
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
J.
A* Greer.
4515
o u te id e
o f jlro n ,
what g e n e r a l
c c a e io d lt le e ? k now led ge t h a t any b u a in e e e h ie life
V r . G reen;
I have t h e g e n e r a l
cen In C ln o in a a t l e r u ld h ere* The S e c r e t a r y e p h e re o f t r a d e com odi tie a , ite e lf? le
ha^ e who had e p e n t a l l
o f th e T r e a e u r y : In flu e n c e
What l e
C i n c i n n a t i 1*
c h ie f
f o r th e d i e t r i b u t i c n it as tc
In
o f gen eral
how w o uld ycu d e e o r i b e
the t e r r i t o r y
I s e a n by t h a t
the t e r r i t o r y center*
*h io h C in c in n a ti
d o s i n *nt ae th e t r a d e H r, G r e e n : I
t h in k C i n c i n n a t i
in flu e n c e
ie
in Tenneeeee,
K en tu c k y, G e o rg ia ,
and a v e r y l a r g a p a r t a ll o f S o u th e rn O h i o ,
o f n o r t h e r n A la b a m a and In d ia n a , and a l a r g e p irt
c f e o u lh e ra I l l i n o i e * The S e c r e t a r y Hr* G r e e n : o f the T r e a a u r y : A ll o f I n d ia n a ?
S o u th e rn I n d i n a and a l l o f Weet V i r g i n i a * o f A g ric u ltu re : The n o r t h e r n p i r t ? ae w e l l ae t h e s o u t h e r n * ru n as
The S e c r e t a r y V r* G reen:
The n o r t h e r n p r t
Tou eee we r e a c h i n d i r e c t l y a b e o lu te ly s tra ig h t
on th e —
our r a i l r o a d s
i n t o n o r t h e r n W#et V i r g i n i a , bu ein e ee * I n w hat l i n e center? if
and we do
i a a e n *e aaount o f d i r e c t
The S e c r e t a r y o f th e T r e a e u r y : e s p e c ia lly
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
C in c in n a ti
atrcng
as
a d is trib u tin g
J.
A • G re e n
4516
M r. G re e n : d is trib u tio n
There i a c f ccke
nc c i t y
th «t
cercparee w it h
it
i n th e
uad i r o n . lo *
ae
The S e c r e t a r y It le
o f the T r e a e u r y :
tc
e t h e r th in g s? n o t?
a
a 1 >rge baoon and p e rk m r k e t , Tee, comp i r actively ia sc.
ill i t It le
Mr. G re e n : lu s h e r a^rket*
treiren d cu a its l*rg e
C i n c ln n t l
d istin g u ish e d
fc r
n u a b e r o f m iner m a n u f a c t u r o r s , a s ycu «>re a w a r e ; p rin tin g in k , p a in ts , rly , aid a l l that s o r t o f th in g ,
V im is h e a , p rin tin g
in k s p a r t i c u l
ind f u r n i t u r e m a n u fa c t u r e . How th e j o b b i n g lin e e ? I an
The S e c r e t r y o f t h e T r e a s u r y : Mr. G re e n : fa m ilia r
Tcu itta t aek we a b c u t my s p e c i v l t i e s . but I do n e t want t o
in a g e n e ra l w *y,
ru s h i n
w h sre t h e r e
a r e o t h e r s su c h wore com petent t c But
speak. it d o m in ate#
The S e c r e t >ry o f A g r i c u l t u r e : th at s e c t io n ? A b so lu te ly . o f th e T r e a s u r y :
in y cu r l i n e
Mr. G r e e n :
Ths S e c r e t a r y erente
Tcu a r e l a r g e l y a r c y cu not?
his
s a le s
f c r these d i f f e r e n t very la rg e ly *
concern s,
M r. C r e e n : ln te re a te very here*
Digitized for FRASER C ir 'Tii http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
C in cinnati
imnenae fin a n c 'd them
in these
ceneerne,
h o w e v e r,
and hae
1 r g e 'y .
A g r e a t w*ny o f them arm owned and c o n t r o l l e d is net in te re s te d in *
T h e re a r e none t h a t C i n c i n n a t i r. t3 f inajaced
the
the Birmingham d i s t r i c t frc m / b e g ln n in £ .
J . A. Green
4517
The S e c r e t W r. Howe:
ry o f th e T r e a e u r y : u r. MoGUl o f th e le
That i e
a ll,
thank you*
here fro c lfa rio n ,
In d . s a y any
The S e c r e t a r y
Treaeury:
Dc y c u c a r e t o
t h i n g , Mr. M c G ill? Mr. M o G i l l : I b e lie v e n ot. We have o t t e r e d t h e gro u n d
th ro u g h o ur s e c r e t a r y .
FURTHF* STATFMTHT OF W. S .
ROTE.
The S e c r e t a r y
c f T reaeury:
M r. R o * e , if
we s h o u ld l i k e
to
ask ycu one o r two s o r e the sta n d . The S e c r e t a r y a s p e c ia l p o in t firs t o f March,
q u e a tic n e ,
y c u want t o
resuae
o f A g ric u ltu re :
ju st Jt w a s / t o ask y cu
t o Bake
o f p r e s e n t i n g t o us b etw een now and th e if p o s s ib le , saps or oth er e x h ib it s sho w in g
us as f u l l y o c M c d ltie s . o f th in g s and sc f a r
as ycu can C i n c i n n a t i 9* 'T a k e C i n c i n n a t i
trade are a in gen eral center, e ith e r
as a d i s t r i b u t i n g
she * a n u f a o t u r e s c r d i s t r i b u t e s aa you c a n , in d ic a tin g
in o th e r ways, cf it and
the v o lu t e
p e r c e n t a g e s * P e rh a p s y cu w i l l a
do sen
ha^» to it
t a k e h a l f a d c x en o r aakU*
le a d in g
c o n c e r n s and g e t
f o r u « . We a r e n o t the p e ro e n ta g e e
f o r the vclutte i n c o m b in a t io n ,
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
th *t w ith what we had i n the » a p * which th a r • c u jd go in w ith the b r i e f it would be u n d e r * t o e d /f r o * O h i o 9* p o s i t i o n , w ith p c a itio n it h i * is lirg e, it* encr&cus » a r u f a c t u r e « , uad t h *
Aisu®ed t h is r e m i n g
in p ro p o rtio n to other s t a t e s ,
i t * p erc en tag e
very larg e,
th at i t would be throughly un d erstood Sow whare and
w ith o ut saying very *such about in t h e b r i e f * th ere i* suoh * i i v e r e i t y a* there 1* i n
th e«e s t a t e * ,
p a r t lc u l® r ly
i n O h io ,
because Ohio does 53 p e r oent c f t h * fiv e * t a t e s , it w ould ju s t be assused
m a n u fa c t u r i n g in th e se
t r t the ie g o e ie would r c everywhere# The S e cre ta ry o f the T re a a u ry : le a r*a p e a k ln g fo r of*
C i c i n n a t i f s dcpiinance ae a trade c e n t e r , ion o f c o n o d l t l e * Hr# Ho -e: Tee, I
the d i s t r i b u t
throughout the d i s t r i c t y cu have K * n t i c n * d air coring tc t h a t . I do not th in k there
is any doubt in the w crld th at we h an d le d a l l y here* ecvewheree between a K i l l ! on d o ll r*
i n one hank
m d a n i l l i e n and a rij.|f stuttered fro®
o f country ch eck s in a day that * r e And th a t 1 * the ^
M a in tc C a l i f o r n i a . the 'tu re
r e s u lt n o t only o f V * kf.ow
but the jo b b in g and d i s t r i b u t i n g .
how Kany we handle o f thew because they eim ply a c a n the g iv in g o f i w e d i a t e
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis
Vc ye than <n e . Mr. Kowes We w o u ld be v a r y of the chenecu T e H itt Mr, Rowe: I t h in k I do new.* the la rg e j e b b i n g and S ecretary ef the T r e a s u r y : Tcu u n d e r s t a n d w h at we jgiad t e do i t * and a r c *la d
T ra S e c r e t a r y c f
the T re a a tiry * Taka
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