The Savannah morning news. (Savannah, Ga.) 1900-current, 1902-05-14
NEW BANKING PLAN
WESTERN FINANCIERs DISCUSS
BRANCH BANKS.
PROS AND CONS PRESENTED.
GOOD ARGUMENTS OFFERED ON
BOTH SIDES.

EDITOR Horace White, of the New
York Evening Post, Advocates the
Proposed experimentation OF
Hanks Means Strength and WOuld
Attract Confidence, He Said-The
Present system Has Accomplished
wonderful Results, Said President
Yates OF Omaha, and 1t will BE
Well to Improve 1t by Gradual
Growth and Not by Radical
Changes.
Kansas City, Mo-, May 1S.-Several
hundred bankers to-day attended the
convention of the Bankers Associations
of Missouri, Kansas and Oklahoma and
Indian Territory.
Thomas B. Patton Of New York,
editor of the Banking Law Journal,
delivered an interesting address before
the association on THE Evolution of
Banking Law"
At joint session, Branch Banking"
was discussed.
Horace White, editor of the New
York Evening Post, who was the first
speaker, took a stand in favor of
branch banks.
Mr. White said in part:
There is a wide diversity of opin-
ion in this country as to the advis-
ability of branch banking, and this
diversity exists largely among bank
ers themselves. The doctrines, the
college professors, the economists are
generally in favor of branch banking.
They are not, however, so far as l
know, in favor of forcing that sys-
TEN upon the national bankers
against their will. Patriotism is not
concerned in promoting it. Some peo-
pie think that patriotism is concerned
in opposing it, and that branch banks,
ii permitted to exist, will de-
stroy American liberty. Such
persons do right to oppose ii.
Those who think that it
would be on the whole wise policy
for the country agree that they have
no special claim upon the public at
tentiOn and l for one do not believe
that branch banking will ever be
adopted by Congress until the majority
Of bankers acquiesce in it. Neverthe-
less, l believe that it will come, be-
cause l believe that it will be econom-
ical and profitable to all banks in both
city and country and that it Will ex-
tend and enlarge instead of Gripping
their business and that after trying it
they viii wonder why they We're ever
opposed to it,"
Branch Banking viii Come.
Mr.. White reviewed the objections
of the proposed system and said
The advantages of branch banking
are briefly these: Other things being
stronger than one, and three are
stronger than two. For this reason the
public have greater confidence in a
union Of banks than in the same num-
Der of banks taken separately Branch
banking would. therefore, improve the
credit of the banks so allied, and in
crease their deposits.
Branch banking would reduce the
expense of banks and accrue to the
customers in the form of lower rates of
interest; it would tend to uniform in
terest rates; it has the advantage of
extending to small places the security
assured by the strength of the parent
institution; it affords facilities for COM
municating knowledge of the relative
needs of business in the different To-
calities. Branch banking is bound to
come; you can't stop it,
The Opposition Presented.
Henry w. Yates, president of the Ma
tonal Bank of Omaha spoke in opposi-
uon TO branch banks, saying, in part:
We are all conscious of the weak
nesses which prevail in our banking
system and we are DESTROYS of having
them removed and the system
strengthened and improved in any
manner that good judgment and wise
experience will dictate. But it does not
:; I
Guide that our banking system is so ut
terly bad that the only remedy for the
situation is its entire extinguishment
ana the creation in its place of another
system This is what l believe would
result from the passage of a law which
would establish about US the monarch
zeal British and continental systems of
large central banks with numerous
branches.
Two features of the bill reported by
me Banking and Currency Committee
OF the House-freedom from capital and
from taxation-would seem to settle the
question against the independent
tanks. The system as proposed would
destroy them.
Judged by the actual work perform
60 and service rendered, the conclusion
Is inevitable that the American system
VI banking, Notwithstanding it's adj
united imperfections, its shortcomings
ana its Weaknesses which in time may
al be remedied, is superior to any sys-
ZEN Of banking in the world.
rms so-called reform in banking is
proposed and urged by well meaning
men but men who in almost every case
WIN be found to be guided solely by
Gelr environments, and not by any ex-
psflence obtained along the lines of
.Iis strenuous life to which is due the
existence of our American banking sys-
tenn. y
Inc passage of the pending bill, by
u5Spoylng the harmonious relations |
"hich now exist in our banking world |
Tnd by threatening the existence Of our |
pIEent organized banks, would not |
onT be disastrous to the banks con-
IGerned, but it would be a national ca