Jasper County Democrat, Volume 16, Number 104, Rensselaer, Jasper County, 4 April 1914 — 12 FEDERAL RESERVE BANKS ARE NAMED [ARTICLE]

12 FEDERAL RESERVE BANKS ARE NAMED

Districts Into Which Country Is Divided Revealed. CHICAGO HEADS SEVENTH / New York, Cleveland, Minneapolis, St. Louis, Kansas City, Atlanta, San Francisco and Dallas Also Centers.

Washington, April 3. —Chicago is the headquarters of the seventh reserve banking district established by the federal organization board composed of Secretary of the Treasury McAdoo, Secretary of Agriculture Houston and ; John Skelton Williams, comptroller ! of the currency, in accordance with ; the new currency law. The reserve bank cities of the 11 other districts, which were delimited, are Boston, New York, Philadelphia, Richmond, Atlanta, St Louis, Kansas City, Minneapolis, Cleveland, Dallas and San Francisco. The Chicago district includes the entire state of lowa, the southern part of Wisconsin below an imaginary line drawn from La to Lake Michigan. that part of Michigan east of Lake Michigan, all of Illinois north of an imaginary line crossing the state Just south of Springfield, and ail of Indiana, north of an imaginary line drawn from Terre Haute in a southeasterly direction to Aurora, Ind. To Provide Branch Banks. The organization board was not authorized by law to provide for branch banks Of the federal reserve banks, but the act specifically says that such banks shall be established. This task will be left to the supervision of the I federal reserve board to be appointed by President Wilson. The organization committee an- ! nounced that all information it had | collected since it began its work last 1 December would be placed at the dis- j posal of the bapks and the board when the establishment of branch banks was considered. ;. The division of the country into districts and the selection of reserve bank cities constituted tlie first step toward the establishment of the new j •system. A statement issued by the organization board in announcing the choice of cities and the definition of districts says at least 7.54 S banks of all sorts will be members of the sys- 1 tem, with total capital and surplus of $1,831,648,369. Their six per cent subscriptions would amount to $lO9898.902. The committee called attention to the fact that under the requirements Qi the act it could not find grounds for the establishment of more than one bank on the Pacific coast, but held out the hope that in the near future another bank would be authorized by congress and located somewhere in that great section. Next Step for Banks. The next l step to be taken by th 4 organization committee will be the notification to banks entering the system of the plans for the districts. This notification will follow the formal certification today of the committee's action to the comptroller of the currency. \\ ithin thirty days after such notice is received by banks, each must, under the law, begin payment for its stock in the reserve bank in itsidistrict. > Each bank must subscribe six per cent of its combine; 5 capital and surplus. The capitalization announced for each district is based ”.pon this six pSi- cent subscription. The payment of subscriptions by banks will be spread over many months, but meantime President Wilson is expected to announce the five members of the federal reserve board. An announcement may not be made for at least a month. To Rush Rest of Work. Secretaries McAdoo and Houston and Comptroller Williams spent most of the last three months in this work. Extraordinary precautions were taken to prevent knowledge reaching outsiders: even members of congress werf denied information Until the announcement of results was made. Although the progress of organizing the new .system will not be rapid, it is the intention of the committee to act as quickly as the law' permits that the reserve banks may !>e set up for business as soon as possible. The usual statement of the comptroller following the last national bank call, issued Wednesday, showed banks in excellent condition Jp meet the demands to be made for subscriptions to reserve bank stock. It is the hope of. the committee that the gradual transition necessary under the new law will be made easily, without disturbance and without any curtailment of credit