The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1902-05-08
AN EDUCATIvE MEASURE,

At the approaching session of the
American Bankers association, the. chief
topic for discussion, according to the an
nouncement will be branch banking,
which has received more or less attention
since Mr.. A. B. Stickney began the agi-
tation of his central reserve bank plan,
including the establishment of branches
in every place of any Importance in the
country, and the Fowler bill with its pro-
vision for branch banking was reported
to the house by the chairman of the
finance committee. -
The argument made by Mr.. Fowler in
behalf of this provision is that the limi-
tation to one place of business, for a
bank is unjust when no such restraint is
placed upon the operations Of other mer-
camille pursuits, and branch banks would
operate to transmit the idle capital and
unused credits from sections where they
are not temporarily needed. to localities
where the demand is strong and interest
and discount rates are high and onerous,
thus reducing rates for money and equal
ling them through the country, as is
approximately the case In France and IN
Germany wherever the branches Of the
Reichsbank extend, and in Great Britain
where the rate varies little.
The arguments against the branch
banking system are substantially these:
It will create money trust ..5s-.
It will place the banking interests OF the
country in the hands Of a few great banks
and beget banking monopoly.
It will revolutionize the. banking system
IT will limit the volume Of business in rural
communities. -
T It will destroy the autonomy of rural COM
It will ruin by competition the small coun-
try banks.
It is not clear that these objections
reach beyond the limits Of mere hypothe-
SIS The fact that they are urged shows,
however, the urgent necessity OF full
and rational discussion. of the de-
tails of the Fowler general. bank
ing bill, which apparently, does not
"revolutionize'' our banking system
with respect to government supervis-
ion and control, but is intended to
strengthen that control and extend bank
ing facilities, complete the effectuation Of
the gold standard in the statutory way by
making the standard silver dollars re-
deenable and e1changeable for gold. Elias
ITCHY of currency is provided for, includ-
ing emergency issues, subject to an in
creased rate Of taxation, so that the notes
will be withdrawn when the urgency is
past. The secretary of the treasury is
authorized to deposit treasury funds in
excess of $50, o0O,o 600 (not including, of
course the $3.50, 10000 gold reserveJ with
the national banks, they>to pay per cent
interest per annum. The national bank
currency will, as noW be Of full value
as all the currency will be. The same
uniformity of note issues will obtain All
currency. will, as now, be- Of full value
all over the country and the provision for
redemption agencies will supply defci-
ency in our present law.
OF course, it may be expected that men
like Bryan will play upon the magina-
tions of the people who are susceptible,
but the cry of money trust will have
no more application to the proposed law
than it has to the present syst EN- and that
has outlived the maledictions heaped upon
| it by demagogs.
| One thing is evident There is pretty
! general conviction among business men,
including bankers. that sonnet hing will
haveSto be done to supply the place Of the