Grand Forks herald. [volume] (Grand Forks, N.D.) 1916-1955, 1922-09-19

and open branches. The superior in
1luence of the branch Of the great
parent bank would ultimately drive
the little, local banks out of business.
Ihls process would result in the
great banks gradually getting control
OF the whole banking business of the
country, creating a money trust which
would control credit! A situation
would be created whereby a small
group of bankers could decide wheth!
er or not credit should be extended
to business in any part of the coun-
try. The business destinies Of mil
lions would be in the hands of the
few powerful financial giants at the
head o fthe great banks.
This, to be sure, is the, sort OF pic
ture which is extremely repugnant to
the American mind and it is this pic
ture which has prevented the estab-
llshment Of branch banks.
The controversy is an old one. 1t
nas required in yoars past. Now
that MY. McFadden's bill brings it up
again, it is to be expected hat the
whole ground will be fought over
again and it is not at all unlikely that
the issue will be the same as, it has
been in the past: the little banks will
peat the big banks and the branches
will not be authorized.
inere some existing method by
when, under the law, a national
bank may acquire branches . State
chartered banks may have branches
within the states in which they are
located. A national bank may. buy
outright a trust company or state
chartered bank which has branches
1t, may continue to operate these
branches which thus become, in fact
no longer branches of the old trust
company or state bank. but branches
OF the national bank which has ac-
CURED the whole institution. In this
n the Chatham and Phoenix
National Bank Of New York pur-
chased outright the entire ropert
Of the Century Trust company. The
latter, operating as Il trust company,
had q dozen branches. When taken
over BY the big national bank. the
branches had t ocome along into the
bargain. But no national bank car
set out independently and establish
! branches directly.
Savings banks are state chartered
institutions These may have
branches ana may be purchaser in
IL the purchase by Riggs Nationa1
Bank of Washington OF the Hamilton
Savings Bank, an institution which
had branches scattered about the
District of Columbia. These now are
branches Of the Riggs National
Bank. go
In Europe, branch banks are the
rule, rather than the exception. Vast
institutions like Barclays Bank,
Farrs EanA. or the London Joint
City and Midland Bank, all in Eng
land: the Credit Lyonnaise in France:
h Deutsche Bank in Germany and
othefs IN other countries, have liter
ally hundreds Of branches. NOT oniJ
in their own countries but in other
countries. American banks-of eiti,. =
national or state charter may, and, :
certain restrictions. have ,brGnches
..i'road. Not many do 80, but there
are some examples. The most nota-
pie 10 that OF the National City Bank
oil parts of the world.
The branch bank struggle ia likely
TO be renewed every few years, but Il
o. not seem probable that tha
great ank will be permitted to az
TEND az the foreign banks have done.
- ID, however, considered possible
That q national bank Will be permit
tea, d certain restrictions. to 81
tablish branches within its own city.
ANSWERS TO QUESTIONS:
O.. What is the inscription Oh the
bronze plaque Of Theodore .Rooseyelt
wnich was given to Michael Collins
py American friendsf u. W. |C.;
Government House. Dublin. that wa
occupied by Michael Collins and
bears the paragraph which might be
called the creed OF strenuous life. -
wish to preach not the doctrine al
I1gnobie else but, the doctrine OF the