This is a really random question but how were the cities for the Federal Reserve Districts chosen? Was it due to proximity? Because Minneapolis is really far from Montana. Was the city chosen because of its significance or population? Was it all these different factors together?
Various economic data was taken into consideration by the body that ultimately made the decision. They claim to take into account existing trade regions, existing bankers preferences, existing transportation and financial network access, etc. It was quite contentious at the time, and even still today to a certain degree. Some critics argued that political back room deal making may have had been at play as well.