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Business, Banks and Bragging How Dallas Became a Federal Reserve City Princeton Williams Economic Education Program Coordinator Federal Reserve Bank of Dallas The views expressed are those of the presenter and do not reflect those of the Federal Reserve Bank of Dallas or the Federal Reserve System.

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Setting the Stage for the Federal Reserve

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Panic of 1907

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Creating the Federal Reserve System

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Reserve Bank Organizing Committee Members Secretary of the Treasury William G. McAdoo Secretary of Agriculture David F. Houston Comptroller of the Currency John Skelton Williams Charge Designate between eight and twelve cities as Federal Reserve cities Create districts with boundaries that took into account that regions convenience and customary course of business

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Six weeks and 10,000 miles Public hearings in 18 cities, including Austin 37 cities made presentations 5,000 pages of testimony There was a vast amount of state and city pride revealed to us in the hearing; and to hear some of the speeches one would have thought that not to select a citywould mean its ruin. David Houston

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The Case for Dallas: Business, Banks and Bragging (with a little bit of politics)

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The Case for Dallas Diverse Economy Annual ProductionDemand for Money Factory$685,506,000Uniform Cotton381,132,000Four months Live Stock205,244,132Uniform Corn175,899,000Consumed on farm Minerals73,501,000Uniform Miscellaneous Crops (Wheat, Oats, Hay, Vegetables, Fruit, etc.) 237,866,017Each balancing the other, making uniform demand.

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The Case for Dallas Transportation and Communication Nine trunk line railroads Five interurban railroads Sixth in total volume of telegraphs Headquarters of Bell Telephone for the Southwest Largest telephone development per capita of any city in the U.S.

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The Case for Dallas Commerce Leads the world in the manufacture of cotton gin machinery and in the manufacture of harness and saddlery. Sells more goods than either St. Louis or Kansas City, and particularly surpasses them in automobiles, cement, drugs and groceries hats and caps, machinery, paper, petroleum products [and] paints and oils. Largest cotton market in the U.S.

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The Case for Dallas Growth City Growth in Population Increase in Factory Employees Increase in Value of Factory Products 1900 to 1910 1899 to 19041904 to 1909 1899 to 1904 1904 to 1909 Dallas116%21.2%41.7%64.7%72.5% New Orleans18%7.9%3.6%41.71.2% St. Louis19%13.8%32.6%50.8%53.8% Kansas City51.7%13.8%32.6%50.8%53.8% Memphis28.1%11.3%7.5%40.8%50.9% Denver59.4%13.8%24.7%3.3%40.6%

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The Bankers Vote CityFirst-Choice Votes Dallas232 Kansas City105 Houston97 Fort Worth87 St. Louis46 New Orleans21 Dallas or Houston7 Dallas or Fort Worth4

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