Why was the Federal Reserve District in the United States so skewed in division?

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Accepted answer

It is a compromise, using best data available in 1913 when those boundaries were drawn up, between:

  • respecting the natural hinterland of each designated bank;

  • respecting state and county borders; and

  • having each bank represent approximately the same number of citizens.

A useful proxy for the third is the Electoral College weights is the 1912 Presidential Election. With a total of 531 E.C. votes, one twelfth of that is ~44.

  • District # 1: 44 E.C. votes in ME, NH, VT, MA, RI & CT

  • District # 2: 45 E.C. votes in NY plus part of NJ

  • District # 3: 55 E.C. Votes in PA, DE & NJ; less a bit in North NJ and West PA

  • District # 5: 49 E.C. votes in SC, NC, VA, WV & MD

  • District #10: 37 E.C. votes in CO, KS, NE, OK & WY; plus a bit more in west MO and north NM

  • District #12: 39 E.C. votes

Clearly Districts 9 and 11 are exceptions to this at about 30 and high 20's respectively. However given 12 as the desired number of banks, I see no obvious better solution to the constraints proposed above than the divisions chosen.

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