Dallas vs. Houston over federal banks

[dropcap]C[/dropcap]ivic leaders in Dallas and Houston waited nervously on April 2, 1914 for the decision on which of Texas’ two largest cities had been awarded the new federal bank.

The rash of bank failures caused by the Panic of 1907 underscored the urgent need for effective monitoring and management of the national money supply.  To avert future crises, the country required a bank for the banks.

The Federal Reserve System was created by an act of congress in December 1913.  The law called for dividing the nation into a dozen different districts each with its own Federal Reserve Bank.  Hearings would be held to fix the boundaries of the districts and to select the 12 lucky locations.