The Washington times., 1915-06-21

In number OF States the legal auth
critics have ruled that Legislative action
is unnecessary to accomplish these
ends. In soNoc States It IL held that
the State banks may enter the reserve
system without special legislation; In
others. that national banks may act as
trustee. etc. without violation Of any
state law.
Great interest has been taken In the
development of the States attitudes
toward these questions. for much will
depend on this. II courts and law off,
oers had put obstacles in the way of
ers In these regards between different
CLASSES of banks and if legislatures hao
generally been indisposed to remove
these difficulties the unification OF the
banking system might have been post
poned indefinitely. In that event there
would presently have arisen In Con-
gress party disposed to pass legisla-
ton compelling the State banks. in
some fashion, to take Federal charters.
Just that proposal has been discussed
always with recognition that II would
be highly undesirable and only to be
adopted as last resort. When the
national banking system was estap-
hshed as civil war measure to create
a market for Government bonds. It
was possible to impose the 10 per cent
tax on State bank issues. and thus
force those banks. in order to retain
the issue privileges. to reorganize as
national banks. But in present condI-
tions. In which the power of issue is
not much priced and Is in process OF ea-
tinction. IT is not very apparent how
State banks are to be forced into the
national system. even II II were deemed
desirable to take such an extreme
measure.
It Is generally believed that the iesis-
lation could not be passed, anyhow: It
would more likely have the effect Of
arousing an antagonism that Is par
ticnlarly desired to be avoided.
The developing sentiment Of the
states seems certain to a put a quietus
They are opening the way to desired re-
suits. A summary OF State legislation,
or administrative action which serves
the same purpose. indicates that very
shortly most Of the States will have
acquiesced in the purposes which the
reserve law contemplates.
New York. for instance. where there
was vigorous opposition from some
quarters, has passed an act giving
State banks power to subscribe for
though the bill to allow national
banks to exercise the fiduciary powers
failed to pass
In Massachusetts, the legislature has
passed an act authorizing trust COM
panies to subscribe for reserve bank
stock. There are no State banks in
Massachusetts,; but the attorney gen.
eral has held that both tr0st COM
panies and savings banks may take
stock in the reserve bank.
In Alabama the attorney General
holds that State banks may take re-
serve bank stock: the same holding
has been made by the attorney gem
erals for Arkansas and Colorado; in
Colorado 1t was accompanied by the
statement that the next legislature
was expected to act in the matter,
Connecticut has thus far been dis
tinctly hostile. The legislature defeat
ed bill comforting the fiduciary powers
on national banks. and the attorney
general rendered opinion that 1t was
very doubtful whether State banks
could take reserve bank stock
Delaware has had no new legislation.
but the attorney general holds that a
state bank may take reserve bank
stock.
In Florida. the State comptroller ex-
pressed the opinion that national banks
could not act as trusteee, ETC.. under
the State law.
Georgia's attorney general holds that