The New York herald., 1921-10-07
AMERICAN BANKERS
SPLIT is AVERTED
Decision Favoring Extension
Of National Bank Branches
Is Reversed.

Los ANGELES. Oct. 6.--A threatened
split in the ranks of the American Bank
ers Association was averted to-day by
announcement that the executive council
had reversed an earlier decision favor
ing esta blishment of branches by ma
tional banks under certain conditions.
John S. Drum, president of the asso-
citation, made the motion that resulted
in the reversal. He said there was "un-
aIterable conflict between national and
state bank divisions of the association
on the subject.
In the state bank division earlier in
the week charges that the larger ma
tional banks were assuming octopus
tactics were made. and speakers declared
the extension of national bank branches
would wipe out the smaller State banks.
Another attack on extension OF the
Government postal savings bank system
was launched to-day. A. e. Adams OF
Youngstown, Ohio. former association
president declared any such extension
would only increase Government expenses
without giving the public anything OF
value.
The national bank division adopted
resolution requesting Congress to amend
the National Bank act so as to permit
within the corporate limits in which the
head office Of the bank Is located, and
that this be limited to States in which
State chartered banks are permitted to
operate branches. ;.
Officers Are Elected.
Thomas b. McAdams of Richmond,
Va, first vice-president, was unani-
lnously elected president to-day. John
r. Puelicher OF Milwaukee, second vice.
president. was advanced to the first
vice-presidency, and Walter w. Head Of
Omaha was chosen second vice-presi-
dent.
Foreign trade was one topic on the
programme. THE deficits, debased cur
rencies and shattered credit of Europe
and the cause and the cure" was the
topic Of Francis W. Hirst, former editor
OF the London Economist.
The report of the commerce and ma
rine commission, by John McHugh cf
New York, and an address by Henry M.
Robinson OF Los Angeles before the
National Bank division were based upon
the International situation and foreign
trade promotion.
The Ter Meulen bond scheme for the
relief of war torn nations and new States
will melt frozen credits" allow credi-
tor nations to extend material help. re-
vive the productive power of countries
upset by the war and will restore normal
oversee trading. said Sir DrummonJ
Fraser of London, organizer OF the plan
for the League of Nations. In an address.
Ter Meulen Plan Praised.
He emphasized the following points
1t will reawaken the dormant con-
la, he ~ i,,,v In,
stricken countries to pay their way.
Governments may keep expenditures
within their revenue.
Revenue producing assets Of borrowing
countries may be mobilized for the pur-
chase OF essential imports which in turn
will restore the buying power OF those
countries.
Lending countries Of which the United
States is the most important may secure.
with a collateral bond, safe outlet for
exports
The scheme does nor attempt to stabil-
ize exchanges. These were dislocated
because war stocks were replaced at ex-
ccssive prices In certain Countries before
the recovery OF their export trade. Con-
ditions OF trade in these countries must
he restored to normal When they have
been restored the exchanges will take
care OF themselves. he said.
T.. O. Watts. president of the First
National Bank of ST. Louis. said that
the people Of the United States have
contributed to much of the worlds civil
lization and general advancement in the
last century. and because Of this record
will not default In their present ana
future obligations to human progress
because OF a narrow and selfish adher-
ence to a gospel OF restricted nation,
alism.