Answer: When the Fed was established, there were fewer banks in the West.
Step-by-step explanation:
Development in some areas of a country or state would not be the same for all places. Some places in a country would be more open to development and growth than some others would ever be, this is based on how infrastructure is sited in that region, and business owners would weigh the possibility of their business surviving there. This is what was applicable to the banks at the western parts of United States, they were fewer banks already in the region, which made them to have fewer regional banks.