district; and, sixth, the population, area and prevalent business activities of the district, whether agricultural, manufacturing, mining or commercial, its record of growth and development in the past and its prospects for the future. In determining the districts the Committee endeavored to follow state lines as closely as practicable. The twelve districts and the twelve cities selected for the location of Federal reserve banks were as follows:

District No. 1-The New England States, with Boston as the location of the Federal reserve bank.

District No. 2-The State of New York, with New York City as the location of the Federal reserve bank.

District No. 3-New Jersey, Delaware and eastern Pennsylvania. Federal reserve bank at Philadelphia.

District No. 4-Ohio, western Pennsylvania, four counties in northwestern West Virginia, and the eastern part of Kentucky. Federal reserve bank at Cleveland.

District No. 5-The District of Columbia, Maryland, Virginia, North Carolina, South Carolina, and all of West Virginia except the four counties included in District No. 4. Federal reserve bank at Richmond.

District No. 6—Georgia, Florida, Alabama, southeastern Tennessee, southern Mississippi, and southeastern Louisiana. Federal reserve bank at Atlanta.

District No. 7-Iowa, southern Wisconsin, the southern peninsula of Michigan, northern Illinois, and northern Indiana. Federal reserve bank at Chicago.

District No. 8-Arkansas, most of Missouri, all of Illinois not included in District No. 7, all of Indiana not included in No. 7, all of Kentucky not included in No. 4, and all of Tennessee and Mississippi not included in No. 6. Federal reserve bank at St. Louis.

District No. 9-Montana, North Dakota, South Dakota, Minnesota, and all of Wisconsin and Michigan not included in No. 7. Federal reserve bank at Minneapolis.

District No. 10-Kansas, Nebraska, Colorado, Wyoming, northern Oklahoma, and northern New Mexico. Federal reserve bank at Kansas City.

District No. 11-Texas, all of New Mexico and Oklahoma not included in No. 10, all of Louisiana not included in No. 6, and the southeastern corner of Arizona. Federal reserve bank at Dallas.

District No. 12-California, Washington, Oregon, Idaho, Nevada, Utah and most of Arizona. Federal reserve bank at San Francisco.

The following table, issued by the Organization Committee, shows the area, population, number of national banks and state banks and trust companies which on April 1, 1914, had applied for membership in the new system, with the amount of their capital and the aggregate of their capital subscription to the Federal reserve banks:

INCLUDING STATE BANKS AND TRUST COMPANIES THAT HAD APPLIED
FOR MEMBERSHIP UP TO APRIL 1, 1914.

The announcement of the selection of Federal reserve districts and Federal reserve cities naturally caused loud protests from cities that expected to be named as headquarters for Federal reserve banks. Resolutions of protest against the decisions of the Organization Committee were adopted by the commercial bodies of various cities, including New Orleans, Baltimore, Pittsburgh, Denver, Omaha and others. The Senate by resolution called upon the Organization Committee to file copies of all briefs and written arguments made by each city applying to the Committee for the location of a Federal reserve bank, together with the poll of the banks and the reasons relied upon by the Committee in fixing the boundaries of the reserve districts and locating the reserve cities. On April 10, 1914, the Organization Committee issued a statement in defense of its action, explaining that it had "refused to be influenced by the purely local and selfish claims of cities or individuals, and discharged the duty imposed upon it by Congress, after exhaustive investigation and study of the entire country, with unbiased minds and according to its best judgment. Congress constituted the Committee a court and gave the Federal Reserve Board the power of review. Disappointed competitors should seek a remedy through the orderly processes the law prescribes." The statement of the Committee explained in detail why New Orleans, Baltimore, Omaha and Denver, which had expected to be chosen as headquarters of Federal reserve districts, had not been selected. These and other cities continued to voice their dissatisfaction, and later, when the Federal Reserve Board was chosen, it heard the claims of these and other protesting cities. No change was made, however, in the location of the Federal reserve cities. Later the Board received a number of petitions from banks in different districts asking that designated portions thereof be transferred to other districts. From time to time such transfers have been authorized by the Board. Up to the close of the year 1916 only one Federal reserve bank (Atlanta) had organized a branch (New Orleans).

Upon the expiration, February 3, 1914, of the sixty-day period for acceptance of the Federal Reserve Act, 7,465 national banks had accepted, 18 had rejected, and 10 had not been heard from. By May 8, the final date set by the Organization Committee for prospective member banks to forward their applications for stock subscriptions to the Federal reserve banks, the minimum capital prescribed by the Act had been subscribed with a large margin, in every district, making it unnecessary to offer stock to the public or to the Government. Five banks in each district were then designated by the Committee to execute the certificate of organization for each Federal reserve bank, thus completing the incorporation of the twelve reserve banks.

The next step in the process of organizing the new system was the election by the member banks of each Federal reserve district of three directors of Class A and three of Class B, under the provisions of Section 4 of the Act. Early in June the Organization Committee notified all member banks to elect, by their board of directors, a district reserve elector and to nominate a candidate for Class A director and a candidate for Class B director for the Federal reserve bank of their respective districts. On July 4-6 preferential ballots were mailed to the district reserve electors of all banks which had certified to the Committee the names of their electors, and the Committee announced that the polls would be closed August 1, after which no votes received for Class A and Class B directors would be counted.

On June 15 the President sent to the Senate the names of five nominees, who, together with the Secretary of the Treasury, and the Comptroller of the Currency, as members ex-officio, should constitute the Federal Reserve Board. Opposition developed to the confirmation of two of the Presidential nominees; the name of one of these was withdrawn and another submitted, and the Board was finally sworn into office August 10, 1914. The members of the first Federal Reserve Board and their terms of office were as follows: Charles S. Hamlin, designated by the Presi