New Ulm review., 1922-10-18
BANKERS OPPOSE
BIG CITY PLAN.
BRANCH BANKS HELD MENACE
TO THE BUSINESS OF /:
RURAL DISTRICTS.
RESOLUTIONS ASK SQUARE.
DEAL FOR SMALLER u.
." INSTITUTIONS. III

/
Bankers of New Ulm and Brown
county have gone on record against
the establishment Of branch banks by
large city institutions as a menace to
the independent banking system of the
nation. a..s t ll5.sss17 ' i- t,.@ Il
The bankers att a meeting in New
Ulm, presided over by F. III. Ksook,
of the Citizens State Bank; president
of the Brown County Bankers asso.
citation, declared that branch banking
would be particularly detrimental to
! rural banks for the system is monopo-
listic and not for the best interests OF
local communities.
Bankers Adopt Resolutions.
"The Capitalization of the credit
power in the hands of a few would
result in the destruction of the indus
try and the depopulation Of rural
districts,p the bankers declared in a
resolution. Other resolutions asserted
that: M # SsS5f
"Our present system OF Independent
banking is adequate. !.
''The individual bank would lose
it's identity. 81
t"The laws of our state do not permit
state banks to- operate branches, and
no National bank should receive pri-
vileges not accorded to state insti-
tutions. - ~ 4 50 ~ HYss%
Branch banking is monopolistic
in its operation and not for the best
interest Of local communities.
Action is Necessary.
The necessity for immediate action
by local banks in Minnesota to pre-
vent the establishment Of branch banks
by Twin City financial institutions al
over the state has become apparent
within the last two months, local
bankers assert. The first National
and Northwestern National banks Of
Minneapolis and large institution in
St. Paul have recently begun to es-
tablish branches over their respective
cities. This is taken to be but fore
runner of further extension oyer the
state. fee. y=!sse fas,@ 4
Suppose one Of these banks would
come into New Ulm to establish a
branch,''' a local banker explained.
"Its representatives might come to
my bank or some other bank here and
offer to buy us out with very liberal
proposition. If we refused to accede,
the big bank might say: We'll, we
will build better and finer building
across the street than you can hope
to have and ruin your business" ;"
Loans Would Be Slow.
Bankers explained that it was
customary in such branch banking
to have the headquarters office
approve all loans for amounts
over small sum with the con-
sequent delay; to merchants and
farmers who were asking for the money.
The branch manager is but a salaried
employe, bankers said, who is in a
community to carry out the orders OF
his superior officers. < s5r 4 /: 5.s...<
The meeting in New Ul1n was at
tended by bankers from all parts Of
the county. In discussing the matter
bankers explained that branch banking
would be particularly detrimental to
rural banking and if the Comptroller
of the Currency followed his present
policy of permitting the establishment
of branch banks, the very foundation
| Of the independent banking suystem q
the United States would be under
mined.
Resolutions Forwarded.
1 Copies Of the resolution adopted have
been forwarded by Mr.. Krook to Sena.
tor Knute Nelson, Senator Frank B
Kellogg, Congressman Frank Clague
|R. B. Rathburn, supe rintendent q
banks, G.l:H. Richards, secretary 9
the Minnesota Bankers association
| H. A. Baldwin, secretary Of the Secone
District association and G. A. Chap
man, chairman Of the County Organi
zation committee Of the Minnesot'
Bankers association.
| Branch banking has been practical
4 " unknown in the United States sine
| the second bank of the United State
4 went out Of existence 80 years agoa'
one banker explained President Jack
son considered the power Of this bank
with branches all over the Unite
States, menace to the financial we
fare Of the country and refused to re
new its charter. Since that time
has been, the general policy in th
i United States to require that ever
! bank, whether state. or national, hav
, one Office and do business IN one place
!, Canada Has Branches.