The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-05-22

which it is hedged about, are the re-
suits of experience. and to that extent
they are a success, and If the defects
are corrected and remedied as expe-
rience continues to point them out the
system will be perfected as time moves
on"
| BrOdus on Branch Banks
S. S. Brodus of Decatur went into a
detailed account of branch banking, its
evils and its benefits. In his opening re-
marks he reviewed the situation.
ION February %, 1910, a bank in this
section, which had opened for business
last November, acquiring ten branches all
at once, became unable to meet the re-
Quirements of the state banking depart
ment, and made an assignment, after do
ing business less than four months. Its
| methods and career caused perhaps some
little not unnatural dsparagement of
branch banking, in the minds of some
think it especially a mark of courtesy
and regard on the part of friends who
have invited me to address our associa-
ton today, on branch banking when
| properly conducted" thus affording OPP
portunity TO point out certain differences
and distinctions that exist in these mat
ters And highly value the implied COM
| pliment to myself. Ordinarily l would say
small borrowers have been telling me. If
you'll kindly make me the loan, I'd ap-
preciate it, So that I myself do not
any more use that word, for, to banker,
the most appreciated appreciation of
loan is that rare thing, a proportionate
balance
ut has frequently been remarked that
preachers boys are worse than any
others. In my Judgment, 1t isn't true, but
whatever may be the facts as to that, I'm
a preachers son. But, gentlemen. in ad-
: dition to that, 1t is right for me to con-
TESS that I'm something a great deal
worse than that; 1 am president of a
| bank that has some branches. just to
think, what an awful thing that Is, a
; bank with branches, bank with
branchesi
ITO illustrate the awfulness of it, I re-
member to have once received a letter
from a well-known banker, who Is still
living, suggesting his friendly desire that
be chosen vice president of this associa-
ton. Later on he wrote me again, re-
gretfully saying that 1t was objected to by
some one, because such a step would be
an Endorsement of branch banking. He
went on to say that, of course, there was
nothing against me personally, but that
even he himself was just little dubious
about branch banking. Think of it, what
an awful thing it is. this thing of branch
banks A method of banking that is uni
VerSal, all over the WOTl0, ana ~ WIDELY
useful here in our great country, in
large majority of our states. Yet here
in Alabama to be a branch banker Is
supposed by some to queer one, and
branch banking is claimed, by some, to
be thing very dreadful and dangerous,
or at the least, some good men are dubi-
Gus.
"And now even great Birmingham. after
kindly asking me to make an address
: about branch banking when properly con-
Quoted, seemed to think some strong anti
| dote necessary to kill off the germs and
sent over to Alfalfa for a smart lawyer
there to come here today and sprinkle
Paris green and spray carbolic acid all
over my speech.
Certainly, I feel very much compli-
mented by the grade of my opponent.
But isn't 1t often true that the selection
of an especially good lawyer, as In the
present instance, indicates an especially
poor case? I'm no LAWYER; I'm no speaker,
I'm just a banker, and therefore I must
expect that the distinguished and talented
gentleman who follows me. who is both
lawyer and an orator, will completely
annihilate branch banking.
Isn't 1t awful, awful, branch banking?
Is that so?
Better State Laws
Before saying anything about my spe-
cal subject, let me state that certainly
NOBODY IN Alabama can De InOTo Nildily
interested than myself in there being the
very best possible supervision of our state
banks. Everything that tends to really
improve our state banking laws. and to
increase the effectiveness of our state
banking system, and the public estima-
ton of that effectiveness, helps me above
all things.
Most earnestly do | desire to see our
Estate banks grow. for they best fill the
banking needs of our people at the small
or points in this section. For this reason
| have strongly advocated more perfect
supervision and examination by our state
L bank department. AT Montgomery last
II August l worked earnestly for the asso-
citation bill to authorize two additional
state bank examiners, cheerfully advo-
L eating the payment of their compensation
by the banks themselves. Also. l made
every effort for the passage of our asso-
citation BILL that a bank with branches
must have not less than $4,000 additional
II capital or surplus for each branch. The
bill was in special charge of Mr.. Chap
II pell Cory, and / had the pleasure of
Eeart y seconding his efforts, as letter
from Mr. Cory mentions 1t passed the
house but died in the senate. where it
H was met by senate bill reducing the
amount to $1,000
1 to pass the next legislature in order to
remedy so serious a defect in our present
Il state banking laws.
1.-The more perfect and effective the su-
II pervision, the better the results. both ac-
II tually- and as matter of reputation.
H And | earnestly nope tnat wise friends
Ii of our state banks win take the lead in
II devsing additional needed legislation and
i will advocate such measures at future
sessions of our legislature. We state
bankers must not merely follow, but
must take the lead along such lines, OF
IN
ures advocated shall be- really efficient
and helpful. and not injurious or merely
hampering in their effect. In such course
shall devote my most earnest co-opera-
II ton"