Rbochearings 19140216 Cincinnati

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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 .
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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&lttee 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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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

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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,

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

•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

Indian*. t h e r e surplus of

134,033,000, In

#5,73© ,000, are

and d e p o s i t s

t l 3 d , 9 0 5 , OOO.

K en t uc k y surplus

there

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
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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?

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

eo

r.

8.

Rowe

4355

Tbe S e c r e t a r y «e would lik e to

cf

the

Treasury: the ease

Tea,

ae f a r

ae

p ra c tic a b le , the State that fr e e send it

have

In fo rm a tio n about get

banka and the report

trust ©f

coap an lee.

Perhape you co u ld

the S t a t e if it ie

fhaperlnten dent, to get

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

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

•C

v . S*

Rons

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

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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* . 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.

Row#

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*

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

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W.

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riOffe

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.

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

^•

F•

He

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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?

The 8 e © r e t * r y Do e* Mr. it resu lt Be,

o f the in it

Treasury: ch#ck in

free

co lle c t!o n e ,

p ra c tic a lly ? the C ity such banks

Ho re:

* “* « s u l t e

an e q u i v a l e n t , balance ba£ k as

gettin g country w ithout

the b a la n c e o h ec k e cost in fo r

and f o r t h a t ea ek country p lace s,

se le c tin g it has the can

c o lle c t

elth er of

whe e i t W e ll,

correspondents• effect is free

The S e c r e t a r y check Mr. there would

the T r e a s u r y : ie it net,

co lle o tlc n , Howe: Wo,

p ra c tic a lly ? because a l^ r g e itees nunb r of

net

en tire ly ,

b a n k s rc a t e ch.r.re fo r

a great in to

nuwber o f

than C in c in n a t i get their that thsy

other p la c e s although

where th e y

through w ith o u t eer.d t h e * to.
ry

ocst,

they coat

the p l a c e s

The S e c r r t tain k
that

o f the

Treasury: ie

To wk k t

extent the

do y o u busineee it o ut? aid

th ie
center

C in cin n ati o f the
it

p re -se in e n tly as

fin an c ial
M r.

d ietrio t
to

y o u ha e l . * i d
as we h a v e la id

Ho e :

W ell,

seers

ua,

out

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

4365

t t lG -iiatrict-“—
The 8 e o r e t : r y Mr* that © f the Treaeury: P r e —e w i r * e n t l y 9 I ind t h e p o i n t fror jjay

"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

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

W.

S.

row

1366

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

Th s S e c r e t *ry o f tcurda Ohio* ry ef

Ths S s o r s t it.

ths T re a s u ry :

And « a a

sillin g

to

absorb

Trie S s e r e t a r y it. Mr. R©«s:

o f A gricu ltu re :

They s a l e

a d istrict

in o l

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*

get

the C in c in n a t i in C in cin n a ti,

even i f

Bank wae ted

lo ca te d

ae t h e y w o u l d

wae l o c R© e : ie

anywhere

else* ia that the C ity i n which th e at

My u n i e r a t e n d i n g

looated

w ould have o n ly

one wan o u t

o f n in e,

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



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*

The Secret *r* ©f the Treasury : M r. Rowes

For the whole d i s t r ic t ? Tee, lo o k in g , o f ccur e , to

The Secret *ry o f the T rea eu ry : t ic

it ter# »te ©* the ehole d i e t r i o t . I wculd have tc study the r a ilr o ,d nap and the abcut t h a t , because I

S

M r. Rowe:

t i s e o f the tra in e to t be c e r t a in

re a lize

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

I speak o f that to shorn

W . ~ .R © * a

4376

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

G eorg*

F.

D ie^ t^ rlc

4360

Hcrth | 111
35

titu ie. about west

As « i r l y 40 s l l e s

&s 17r € # t h e of In was was

center In

©f p o p u la tio n 18CC i t ths west wa*

Just w llss

east

B altim ore. 1B10 i t abcu|

of

B altim ore; In 18~C it

was n e a r lo o tile s

C ity of

c'

*^ sb ln gte n . In

W ash in gton . in gton ; in

183C was

it

a bcut

140 a l l s s south of

west

o f Wash­

1640 i t was a llss

about

35 w l l s s

C lark sbu rg. In was 1860 IOC

I r* 1650 i t it was
35

c5 m i l e s south

southsaat

o f Parkersburg. I n 1670 w s at it

o f C h illlc o th e ,. In 1860 i t

silss In was sast

sast

o f C in c in n a ti. was 50 s i l s s

C ln c ln x u ^ tl. In 19CC i t

1690 i t at of

wsst
and

o f C in cin n ati* in 1910 i t was

C o lu * b u s ,

In d ia n a,

40 s i l s s

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•

H ln to h

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•

H in so h

4 393

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

1914:

.................................................... # 2 3 , 1 6 4 , 0 0 0 75 , 9 0 0 , 0 0 0

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

o f e a te r the year round, f r o * Pittsburgh to ths O u lf o f M exico , thus in s u r in g the loeeet poeelble tra n sp o rtatio n rates f o r all of the Ohio T a l l e y . , (S e e E x h ib it H ) . © th. The In te rn a l Revenue C o lls o tio n e o f thle

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

*ldC

C h a ri# *

A*

F i n n eh

4401

and ycu

out out/th w a

t ,a r t ana t&Jcs I r . a i a n a p e l i e
©i‘ tha state north tha ef

cut

cf

U ut

d is­ Ih m

tric t,
wrrulu

tJai j & r t

In d ia n a p c lls, cf the

tea h m m in ch

rtduotion i n

cap ital

^ropoved

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

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

Th# S e c r e t a r y p ro fits ii

Section

re lie v in g * •Upon w ith a ^ a lr e r .M y ?eaert*l the ©f inh ere:w en t ef any ef ite m rtir by *uch btnkt9 b*nk,
m

d^R «ad9 n o tic e bank way cut

an d p r e t e s t ne t e a ,

r**erw e

are f t * ,

~

b ill*

of exchan** th* t ie,

a rle lle note*,

ef actual

ccrm *r~i' 1 t r a n ef «M fcane* or o c «ii>

•actlcn #; i#«u *^ d e l or cr

d raft#,

and b i l l *

Ar'iwn f o r or

anxi c u lt u r a l, prooeod* noh te of

in ciu e tri^ l, - r h l c h haw:

purpe***, to

the fo r

been u e e a , Bctcnre ohar» th#

are

be u e e a , the paper

pur* c w « , ' the determ in e fo r or

Fe . e n l the

Board aoter

t o hawe ef th e

r i^ t

u efin e

tteue i l l ^ l b U

d ie count,

w ltK ln

th ia

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
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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:

th o T r e a s u r y * a M ftor^du s

1 5 t h © f Kr.reh

F ile Te«* cf I

th/*t,

Secretary Act v h lo •XV« ry

tho T r e a e n r y t ill ntus rttorvo

There

lo

*n e th e r

f r e v inter*

th i*

Federal

bonk o b a l l frco F«> o r a l lto

re o a lv * roeorvo

on d e f o « r *; a wu rhoc

it

*t

par r m sni

mo ►or br nfc* r r dram

hook*

d rtfta

upon any o f bank,

d ep csiters, anc

m it t o i

by a Fe<ior

1 rooorwo

cha ' k*

irafts bank ir* or

drawn ember ret*

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.

hR fR tSt

Edward el We have aoee

three thcua^nd f a c t e r i e e ,

and I

w cu ld Judae ae aany m r r j atrcar.tile e a t r b lle h n e & t e * T^t Secretary of tha T rea eu ry : Hew th e cner c l l t y d l * t r l b u t l e n fr e e both of th©ee seu ro ei t h r o u ^ e u t the aphere of C in c in n a t i If thie d i a t r i o t , sh o v in g

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'

iner^

f a c t o r y ce nt o r ,

Ban te t h i r d i n the a a n u f a c t u r e o f • T a i l o r to the clothing* Gre f t e s t : i t o g ra p M sig © e n t er i n the U n i t e d S t a t e s * F i r s t and l a r g e e t o o ^ p r e e s s d y e a s t f a c t c r y i n t h s U n its I S t . t e i . Has ths l r r g e e t p ian o f a c t o r y i n t h s Ui i l e T e e t * Le**de i n the e x p o r t o f a p w c l a l p i a n o s b u i l t f o r
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

tropical

ir

.

.

.

44l£

© f *r scuntriss. Banks eee uni in ths irctacrtion or soaem'a cloaks and a s n 's caps* I s s Isalirg shoe waruf&cturing centsr. ths M n u f Jturint of Jewelry. Barks t M r l in ths manufacture of atrset c^rs. in ths ^re luction cf cigar hexes* Csntsr of the grestsst carriage *rciueing ir ths covrtry. Largest iatributing csrtsr for whiskey In ths w crlU U stric t Thiri ia

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
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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.
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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*
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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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_________ ___________- — ................. — ■ ----

-----------------

^

If

J,

S . I h H — f|

44 X 9

iiv-liaticn.

Active plane *«re at cnoe laaule to obtain
anon

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 ) .
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

••

W.6.R©*#
f l .D .C a r r .

4435

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 :
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

is » © n Slat a pride. Chicago.

Cincinnati, Chicago ani Hew Tcrfc are our princi­

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

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

.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?

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

•©

C.

Z.

Critaa

4446

Mr.

Critss:

I a * not a uth orlza d tc

spam k

f c r anyoody but I ax Caah-

racily,

and die not axpact to ba c a l l a d

upon,

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

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

J.

Z.

Bu©kii f5!h**

4454

F r i t U t o t of U n First latlctuil fttnX at Jorklno aa4 Fresiaer.t •f tin boak & | M e b e r t f , ona Fresl aant of tfeo b&rJr tt Way 1 s t n^. Tfca Be ©rotary of A^rirul turei Ib ir s srs t*c«« Vr. l u l l i t — l 9|) tho H i t s M y Xlvtr . Mr. Ksvoi They ore o il in thot novly developed aoal r t * l « « tho B i f Swidy R iver, Tho Soarotfiry e f tho Tronmiryi C to »h i roilrooii? Mr. Baoklu*h*j&: The Chess,a ko & Ohio* T>iO Ssertisry e f Agricultures Row many W unU 46 yrv^ o^rooo»tM Mr. 9uskir.*hass Five* Tho S o s r t V r r of A f r i w l t u r o i 8t*t* or Setltftal? Mr* Buakl. ^hftct T> rss I s t U n s l ona W c
state*

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

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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?

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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
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

We.
of the T r e a a u r y : C o n sid e rin g it in that

a

*

S.

A.

F ie t © h e r

4401

% ■

1^

M

hypothesis fcr the
w o u ld

q u e stio n ,

then

wh#r« would

you think you
M r.

be

beet

served?
w c u l i p refrab ly Of course d is tu rb ycu are

Fletcher: Cincinnati
the

ue le a s t. awara

T^e Secretary of
that

Treasury!

the ordinary trantactiona between
by th ia

b *nke and

w il l net ba
th ia

interfered with
bank Hr. ho lds the

arran*s&ent;
ef the

that

reserve

rsservee W hat

d ie tr io t.
a re r e o n t* k e in to if -er^s I t ­ on ly tie *

F letcher: in

facts te is

cou ld a

e ratio n t h l n f we

attem p tin g ; 1 smre on

m ake ju st

eeccnd the

c h o ic e,

the of

can

o rd in ary

eecncrry

In

dcinw

b u sin e ss cf

now? the

The Secretary have
te

Treasury: Of course

thoee

factors
the

be ocneidered naturally, but ycu
y- ur b n n k

spenk

of

or­

dinary transact lens between

and O i ca~c .

That

w ill net be dieturbed, even i f you ehruld be put in a dis­ trict in which
Chicr.«x>

is not located.
ef the

The

Federal Bceerve
the

Bank w ill held the reserves

banks of

d is t r ic t and

it w ill be rescrteu to for re— die counting by sieaber banka and w i l l .-le© exercise such clear lr.<r h«uee functions as Feu^r il Reserve Bcaru determines it shall do,
M r, the

FietcJier: Z should think it wculd

be

« • knew led m

of

what **ro*ntaj»» of c l e a r i n g they do for ue which wculd

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al- 13

S.

A.

F lo toher

4463

:« » d s i

tc i u i

*

a . pi s i o n . it

Of

so ursa

lx’ *e u a a

thm a-re
ar.t•

< IM tt1lll W
T/.c

40 B M , a/ a£

w o uld 0# Jf«a ■. y

Ktcra

the t t P M p u r y : ~L\t * 0 * 1 4 Irutl&na?

NWfl

ih #

rtuviicrn £ a r t r f

lb* Plstohiri I
g*ith*r«c M r* by

tiiiii : thojr hare r:C*e ctcvtlatl a© bor*
S ir te R n k o r © 1 Aeu tio n , by

In d ia n *

S o i U g uiiti l«r*

S i*lU u

At 1 P . M. a

rec«eo

ir**

*

n u r til

3s3C

P. V

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

»X - X3

4-403

AFTER

HTr*!*8

S T A T n m iT OF AKBRK^ SM ITH.

Tho SaertJtury ©f the Treasury: State ycur nftM , realdanee and coou ^tlon T

\ \

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.

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*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—

f*c lv<sd 666 re pi loo cot of 937 bank* of a l l kind* in Indiana* Tha Secretary of tha Treaeury: Tow have a o©py ef tha in— V *ir ? which you w ill f i l e , hnve ycu? Mr. S r Ith : Too* Of thlo total of 9 ST, 05 I n U m l Bank*

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

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

*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#
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

o v e r $ 3 , 0 0 0 , 0 0 0 . 0 0 ; a e are fa ra in g
lan ds, In h i g h e t a t e of

c u ltiv a tio n ; s a a lle r

a e have t h r e e l a r g e
ae

D letilleriee, (5 )

and n u a e r o u e

in te re e te ;

have f i v e

£anke | 4 9 1 ,0 C 0 .0 0 9 -,0 0 0 .0 0

wi th a g g r e g a t e C a p i t a l c f • • • S u r p lu e • of
all the

I n d iv i d u a l D e p o e ite (9 0 ) p er

L ,5 0 0 ,0 0 0 . 0 0
b u e ir .e e e

Digitized for FRASER http://fraser.stlouisfed.org/ vof aSt. r lLouis oue Federal Reserve Bank

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

a tor

R egional any other

c^r.k e s t a b l i s h e d
p o in t soul^ ae he

C i n c i n 'a t i

th*

above,

very

Inconvenient a

indeed. of

P le a se fiv e w ith

a llo w

to ad d ,

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

.................................. $ 1 ,0 9 6 , 6 0 0 .0 0 ................................ 5 5 6 ,5 0 0 .0 0

ro fite

....................................................... 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

Bank a t

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 ~

c o u ld n e t b « t e n r e l t I v i r . t a g e c u d l y . The S e c r e t a r y o f A g r i c u l t u r e s c o rsle t? U r. J c hn etcn * W a ll l a r g e l y ilv e re ifie l. o f A g ric u ltu re : T h at l e a ll, t h a n * y ou . i n p c i n t a © f th e w a n t * o f t h e I n what u r t u li t o e a i f a s U g i

l i a t r i o t b ein g The S e c r e t a r y

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 ?

The S e c r e t a r y © f th e T r a a a u r y : M r. Bowyer: I re^reeen 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 *

the c e n t a r *

U r * W a lk e rs

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 S©# * i r *

W c u ld y ou t h i n k H u t t w le e ?

t h e r e ie too nuoh r e t i n k i n

the

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

th i n k i t a i g h t go a c r o e e AJabarm a n i G e o r g i a and

T ie S e c r e t a r y

t h a t cntae

you

t v ou£ht wh^t t. y cu :*i£ht <ic w it h Ho* Orle^m a? U r. W a lk e r: W e ll no# a i r * I aa 1 e a rin g that to you

Itn tlM B * T e S e c re t a r y o f the T re a e u ry : th e « r t bleat ” n ix a r: o r e c: Ho. I .iic a t e *rill , Tom do n e t r

o y< u? you vrhat I t> *r.k ab u t i t .

1r.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

te il

I.
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

4487

ought to b e b a l a n c e 1 up a a n e a r a e p o s s i b l e * t h e d i s t a n c e you h a v e and I

no r e s t r i c t i o n

t ie * an i ila c e .

STAraraiT or jr. w*
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

brow

»:
r e e l lessee

S t a t e y o u r n&aie*

S j r r i n g f i e l l W a t l c n a l BanJt#

S p rin g fie ld ,

The S e c r e t a r y

Where i e

that?

Hr* Brown:

Abcut 30 a ile e frttt Jfoehville, Tenneeaee,

between laahvi11e an! Guthrie* Kentucky*
The S e c r e t a r y o f t h e T r e a e u r y j Mr* Browns Who* do you r e p r e s e n t ?

T e S p r i n g f i e l d H ^ t i o n ^ l Bank. th e T r e a s u r y : O nly?

The S e c r e t a r y o f

U r. Brown:

Tee.
H o* i n r g e a ban x l a it?

T h « S*ot etstry o/ t h * T r a * * u r y : U r. Brown:

W * l l * • havo $ 6 0 ,0 0 0 a ^ i t a i p ro fite . Wh?t i e

a n i $130*000

«ur. l u i u V i r i ' e ! The S e c r e t a r y
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve 1 Bank of St. Louis

o f th e T r e a s u r y *

y c u r v ie w a b o u t

If
J . W. Brown.

*498

this anttor?
Mr. Bream; Vc ore in favor of C in c in n ati* V « think i t - i t

a setter b * *mce I t-HT"! tory.
Tha S t c r e t r y o f t h » T r e ^ a u r y j p rtfc r«n c «t M r. fitd 4 Brown: T o*. Only tha Hashville C l a a r i r # Hcua« i n T>**t i s on u n s o l i c i t e d

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 -

Tha S e c r e t a r y C in c in n a ti, f a r n e x t? M r. in i B ream

whitt o t h e r o i t y

in t h l a

Wa p r e f e r B a s h v i l l e

firs t

and th a n C i n c i n n a t i

S t. L c u ia .
ry c f tha T r e a e u r y * W a ll

Tha S « c r a t M r. Brovmi

Boa about Louisville?

that * c u l 1 b a alrig h t.
Two other c l t l a a h t ? « basm

Tha S a c r a t a r y I Ho a p i t a b ! a : M r. Brownt guae# i t t> i a way.

o f Agricultural

Chattanooga*— V a i l wa lo n o t h a v e nach b u e l r e e * that * * y . I

w c u ld s e r v e ua a b o u t a a w a l l ,

but cu r b u s in e s s i a

Tha S e c r e t a r y o f A g r i c u l t u r e : M r. fla w Brcvmj Our b u a ln a a o tra n ia

A n l haw a b o u t Ma& h i s ?

tetrarla Cincinnati ani

T crk.

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

44&9 J. B . W alk er.

Th# 8 e o r e t ^ r y o f k ##p h e re?
U r.

th # T re a a u ry ?

Boft lauch r e s e r r e

ie ycu

B ro w n :

w#

!c n o t do any b u s i n e s s h e r e . of th e T r e a s u r y ! Tou do bus in # # # w i t h

Th# S e c r e t a r y la a h fiilc t Mr* Brown: T .r*. V# * . e#i

Our b u s i n e s s a re ie rr#

t e n i a to w a rd # H a a h T i l l # a n i Hew L o u is .

in S t.

stathoer t

or u . w . m i a u
S tate your nso#, re a ld e n c #

Th# S e c r e t a r y ] a n i o ccu p atio n . U r. H e n ic k ;

cf

th # T r e a s u r y *

U. ¥ . R en ick * ; d i i a t o w n , O h io ,

Ian t th e

t u a n u fa e t u r e r a n i b a n k e r i n c i d e n t a l l y , F irst

and P r e s i d e n t o f

H m tional Bank o f M i d d le t o n n and r e p r e s e n t

th # 0 g e l*»b jr»

B e m # tt Ba- ing Company, a ^rirat# bank*
The S e c r e t a r y suburb, 1# i t #f tb # T r e a s u r y * ifld U ste w n i # sort o f a

not? K ind o f a suburb, yea, o n .y 33 i l i e s away,

M r, R e n ic k :

Th# S e c r e t r y # f th# T r e a s u r y # re la tio n s

Tour b u sin e ss

ani trad#

*xre alxaost a l t o g e t h e r w i t h C i n c i n n a t i T A lm ost # n t i r # l y . . Ab u t 85 $ e r c e n t o f c u r none i n C h i c a g o , cr a

U r. K en ick s

s u r p l u s rc.mrrm* a r e o a r r i # d h e r e ,

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

u

J . W.

B rcw n .

4300

i . W.

▼ •ry l i t t l e

w ith

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#

a n i c u r town b e i n g l a r g e l y 1 8 ,0 0 0 p a e l l a ,

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

d is tric t? I ha 1 not th u g h t o f a aeocrt 1 c h o i c e ; Cl e v e l ^ n i

H e n ic k :

o r CEhicage, we

c m

rea ch cue about aa w e l l a a the o t h e r , a little fu rth e rs «y and c u r & a i l e a r e

e a c s p t C h ic a g o l e ne t

^ u lt e eo r a p u la r* o

The S e c r e t a r y Coluo-bue? lir* »lie r B e ric k :

J L r l c u ltu re *

Tcu h a d n o t th o u g h t o f

I hat net,

axfct I

lo n e t

t h i n k I w c u ld ccn-

it*
c f A^noal U re : D id you eay y cu w e r e a

The S e c r e t ' r y * A nuf& c t u r e r ? Ur* R e n ic k :

Tee,

a ir. Do you do t ^ a h o f a lie -

T^e S e c r e t a r y tn to u tin g U r.
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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 .

R e r lo k *

••

4501

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 :

Ho* f a r down do ycu go? A tla n ta , a n i Wee

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 ?

Tha B « o r e U r y Mr. A * n i c k : The S e c r e t a r y

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 ,
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

S.

I).

Fltton

4602

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?

M r.

F ltto n :

Too. o f tho T r e a e u r y : C in c in n a ti? A n i y o u r bank e x c h a n g e s

The S e c r e t a r y are la rg e ly e lth

M r.

F ltto n :

Yeo, o i r . o f th e ^ r e a e u r y : He* f a r lo H a m ilto n fro si

Tho S e c r e t a r y hero? M r. F ltto n :

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

The S e o r o t a r y banke
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

i n H a a i lt o n ?

S.

0.

F ltto n

4503

M r,

Fltto n :

Tee.

The £ecret&.ry of the T re a e u ry : within th le d l e t r l c t ae propoeedt
Mr. F ltto n :

What ie y ou r eeoond choice

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
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

••

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

The c o n c l u s i o n a

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

"F e d e r a l oeaenre

Bank L a w *, to

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

Vs d eea i t a b s o l u t e l y

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

th a t u n l e s s that the S lt h

aystea ths in

in a l l

i s a success?

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 * *
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

f o r a F e d e r a l R e s e r v e B an k ,

••

R.

L.

Burch

*

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

r e g i o n a l bank t c be a e u c c e e e tb o a e ia , it
%

■ u # t be g o v e r n e d by th e

same la w s ?.nl c o n d i t i o n s ae that

s u r r o u n d i n g a hank d o in g a o e s a n e r o la l b u f l i n e i ? , w u st have b o th d e p o s i t o r s a n l b o r r o w e r s . f o r , t h a t the South e l . c u l l b e

Te b e l i e v e * tc be i n

th erere g io n s

eo d i v i d e d ae

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

Our r e g i o n

th e e t a tee

Hi » H e an d E a s t e r n Ken­ that p o rtio n th e of

tu ck y and M id d le and E a s t e r n T e n n e s s e e , a n l A labam a l y i n g N o rth o f Montgomery* T h is

w i l l attach

o l d e r fioan ufactu rins an d s t r o n g f i n a n c i a l c ©immunities o f the Worth t o the n e w er m a n u f a c t u r i n g an d a g r i c u l t u r a l com m unities o f the m id d le S o u t h , w a k in g :ture •ill n o t o n ly have heavy d e p c e i t s , b u t s h a t have demands f o r a c n c y . remind t h l e Committee t h a t i t is t h a t the b a n k s xa j u s t a s

necessary, It is

u n n ecessary tc

not b u sin sse
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

ee

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,

bu t b e a r i n g

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

1 1 0 0 , 0 0 0 , 0 0 0 a y e a r , m ost o f w hich of i t , a lth ou g h it does a Nashvi 1 1 s #a

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
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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

vhen they n eeded noney w o u ld have & p l a c e

t h e y o o u ld ^ et th e r c n e y * The S e c r e t a r y fa in o f A g ric u ltu re s Ycu h ave f i g u r e d out • © » • md

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 .

lik e

my

©th rr i n v e s t v e n 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

but

shown i n

d iffe re n t

c o w n u n itie e •

J.

A. G r*en

4516

Ur.

R© e :

I

aa very nuch o b lig e d

fo r tho e u g £ € * t i c n .

I

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

c r e d it

and the t l e i n g up o f th at

al

T.

S* Row#

4519

»n *y

u n t i l th ey u r e li<*i I d a t a d , and i t

ie

a fei^ e l e w a a t . *e la id if

The ^ e c r e t & r y c f A g r i c u l t u r e 2 O f c e u r e e , yeti n e e d n e t •© f a r a f i e l d ae t h a t , t, b u t t a k l n f the a i a t r i e t you h i r e eto ii.jgh t e e u t h t o the Q u U it m ig h t h e l p u a

end t a k i n g th e d i s t r i c t

y cu c o u ld

g iv e ua i n f o r a a t l c a ,

1a # e r y etany

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

r a n u f a ? t u r l n g l i r . e e and ehew ua w h ere the u tio n e f that product l e th r o u g h t h l e

rin e ip a l d is trib ­ i n w h ic h

trades d l e t r l c t

ycu c l a l * ycu a r e d c a a lia n t* Hr* Rowe 2 country— Thei S e c r e t - r y ua hawe f th T r a e u r y * Tcu b e l i e v e th at, bu t et I b e l i e v e we hawe t^e l a r e e e t tan nery In the

the f i * " u r 4 * « It aa a f r e t , an a can prove it. w hat we jgave u e

Mr. Rev ex X b e l i e v e

The S e c r e t a r y o f A g r i c u l t u r e * haws i n aiind*
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

L e t tsm i l l u a t r a t e

In St.

L c u le

tne h a r d w a r e e o n p e n le e

ee

W . F • How*

4520

w i t h o u t any t r o u b l e

tha p e r c e n t a g e w i t h i n the

o f t h e i r b u sin e ss r*ach o f the c ity

i n *1 1 that

tha s t a t s s , s s p a c i a l l y tta> la rg e ware r e p r e s e n t i n g .

Tha *asie waa don* b y eose e a ta b lis h m e n te .

c f th* Wow i f

ahoa h o u * * * and o t h a r l a r g e

h a l f a d o s t n o r a dozen o f t h o * * w a r * b u sin e s s, it m ight t u r n o u t -

t o show ua t h e i r

t h a t t h a y w o u ld do a wary l a r g e t h a t w o u ld g i v e ua v a r y c o a p c lls d to o f an and

b u a i n e * * i n some t e r r i t o r y o o n a id *ra b le g i** tro u b la

i n p l a c i n g , and a * w* a r a of trad*, ju s t

a tte n tio n to

tha o c u r * *

that s o rt p r o b le m ; on y o u r

• x h i b i t may h e l p ua a o l v e it of cou r**,

the v e r y

d iffic u lt

w ould h a v * a v e r y

i i r e o t b e a rin g

p r o p o s a l t o hav* C i n c i n n a t i w ill v*ry fin d it very d i f f i c u l t

re c o g n iz e d .

1 do n o t t h in k ycu w o u ld h e l p u *

to g i v e and i t

c o n e id e ra b ly . Ve w ould b * v e r y ot g la d in d e e d o f th e c h a n c e . F o r i n » t a n c e , tak e t h * a sa p here s h o w in g

Mr. Row*:

The S e c r e t a r y

the * r * a * u r y : o f. 8 u p p o *s

t a n n e r y you epok* h o * much o f the

th a y f i l e

t o t a l product in

th e ir lin e

they m an u fac tu re# s o ld in th*

an d th a n s a c s tne p e r c e n t a g e d iffe ro n t statee. The S e c r e t a r y

o f that p ro iu c t

of A g ric u ltu re : fr o m #

Or e v e n she re

it

d ra w * i t *

• u p p l l * * and m a t e r i a l *
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

W.

S.

Row#

4531

Tha S e c r e t a r y it# it# mate r i a l s

o f the T r e a s u r y :

E x a c t l y , a n d h e ro

it

dra#»

an d from what p o r t i o n

of the c o u n t r y i t draw#
lin e ,

raw m a t e r i a l ;

and ta x # #ho## o r any o t h e r j o b b i n g

o f which you hair# a b i g j o b b i n g b u « i n e w e , and ahow u# th#
•as# • M*\ Row#: The S e c r e t a r y Th# re p o r t # r w i l l o f the T r e a s u r y : it giv e us Tee. tho## p o in t# T th i# to

Mow b e f o r e

m e e t in g a d j o u r n # , a#

i# a p u b li c h e a r in g ,

w# le e i r e

g i v # anybody who * i # h # #

t o be h # a r d an o p p o r t u n i t y

to #peax, w it h

p r o v i d e d they can eh#d any n#w l i g h t #mpha#i# on th# naw. M r. J . 8 . ta lk e r: May I

on th# p r o b le m ,

a fil# / *ittl# T ## .

# x h ib it?

Th# S e c r e t a r y (The

o f th# T **#*eu ry :

p a p # r # a# a c c o r d i n g l y Th# #nactm ent o f th#

fil# d ,

and i #

a# f o l l o w s ) : th e great#et

C u r re n c y Law i s Even tho##

a c h ie v e m e n t o f modern h i e t o r y . frie n d ly to the l e g i e l a t i o n a r e of it#

who w ere un­ stro n g advocate#

becom in g i t #

a n d the f o r # - g l o w are

b # n # f l o . e n t and fa r -> r w a a $ in g e f f e c t # the p e o p l# ,

be corns i n g a p p a r e n t t o the g r e a t body o f to f o llo w . tra v a il

p o r t e n d i n g the g r e a t b e n e f i t # In v i # * then c f the

great

through it#

w hie hr, -r*a te # t

th# n a t i o n ha# p a # a # d i n b r i n g i n g
Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

to l i g h t

ee

1.

S.

Rowe

4 £2 a

p ro d u ctio n * of

it

c rrta in ly

be h o o v e s t h e s e who have o h j r^ e th at f a i r ani proper life . in to d is tric ts ,

the p r e c o c i o u s y c u n g a t e r t o eee

treatm ent a r e a c c o rd e d i t e a d v en t in t c Ho« a e t o the an a the iiv is io n o f the

country

d e s i g n a t i n g o f the c i t i e s

w here p a r e n t R e g i o n a l and one

Banks s h a l l be e e t a b l i s h s d

i s a h e rc u le a n t a s k ,

t h a t demandsthe fcl^ h e et o r d e r o f e f f o r t B ut I f u l l b s lis v e an d e x p e c t lik e t h a t the the l a s

and p a t r i o t i s m . re s u lt o f the p ro v e a c r e

C o m m itt e e 's a c t i o n w i l l , s a tisfa c to ry th e h i g h e s t every a c tio n

lts s lf,

t h a n anyone can f o r e e e e . o rd s r o f b u sin e ss

P a t r i o t i c a o t i v e s and s h o u ld o f the dominate great

p rin c ip le ®

i n w o rk in g out th e d e t a i l s

p r o b l e a now i n y c u r h a n d e . fa ith

As i n d i c a t e d ,

1 have f u l l

i n y o u r d i e p o s l t i c n and a b i l i t y

t o a c c o m p lis h th s o f y o u rs s lv e e , t h a t the an d to

t a s k a s s i g n e d y^u t o th e s a t i s f a c t i o n th e A m erican p e o p l e . e m a n c ip a t io n o f rsssrvs 1 v e r ily b e lie v e

fin a n c ia l Ths

t h is n a t io n has b se n a c c o e ip lls h s d . w h e t h e r t w e lv e p o s s ib ls , or a le s s

d istric ts,

num ber, s h o u ld equal m p o a a ib ls . t o the p r o p e r to

bs as w s l l b a la n c e d ae

and a s n s a r l y rss o u rc ss as o p in io n as

p e c u n i a r y s t r e n g t h and f i n a n c i a l

When Abraham L i n c o l n was a s k s d h i s le n gth
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c f the human l e g he

r e p l i e d he mas u n a b l e

J.

B.

W alk er

4523

an sw tr a c c u ra te ly # s h o u ld a t l e a n t be

but i t

»a e h ie

Ju igment t h a t rea ch f r o a

the l e g to of

lo n g enoughtt i * ay

the b o i y

th e g r o u n d .

Ani that

i d e a a e t o the

su b d iv is io n

our country in t o

reeenre c t ie t r ic t e .

They e h c u ld be l o n g the p u r p o s e in ten d e d , I

enough a n i b r o a d enough to a o c o m p lle h w i t h ae many b r a n c h banke t o

f o l l o w ae ra y be lin e e

re q u ire d ,

ee e no re a e o n w h a t e v e r %hy th e c l e a r acroee the c o n t i n e n t , if

e h c u ld n o t e x t e n a F o r e x a m p le , 1

need b e . F la ., if

s e e no r e a e o n why J a c k e o n v l l l e , e h c u ld n o t be i n ea se d ie trio t

and C h i c a g o ,

111. or

thought n e c e e e a ry ,

shy C in c in n a ti, eh c u l l n o t be i n

O h io , A t l a n t a ,

0 a .,

and e v e n Wee O r l s a n s , The p r e v a i l i n g an d The d i s t a n c e re n ie r se rv ic e "The f a t in n a t u r a l

the same d i s t r i c t .

a l l - i m p o r t a n t n eed l e

e q u l l i b r u m and b l a n o e . the a b i l i t y to

doee n o t co u n t f o r s o su c h a s to fu m la h the g o c d e .

To uee a hom ely p h ra e e The e o u th and e e s t b o u n i

must f r y

the l e a n . "

r e ^ o u c e e , an d raw m a t e r i a l . c a p ita l to make t h e w h e e ls go

The n o r t h an d e a e t have th e ro u n d . The e a s t e r n an d of

n orth ern e t a te s th s lr own.

s h o u ld n o t be g r o u p e d i n t o d i s t r i c t s p o rtio n cf

Those e e c t i o n s meed a l a r g e

the

b u sin e ss

o rig in a tin g in

th e e c u t h a n d * * e t .

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eo

4624

The S e o r e t a r y

of

the

Treaeury:

if

there

ie n o t h i n g

f u r t h e r th© h e a r i n g w i l l be a d j o u r n e d .

(W h e reu p o n a t O h io , .a s

4 :3 0

the h e a r i n g a t

C in c in n a ti,

aljo u m sd .

Digitized for FRASER http://fraser.stlouisfed.org/ Federal Reserve Bank of St. Louis

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