New-York tribune., 1922-10-05

and the enthusiasm were reserved for
the presentation of the anti-branch
bankers case; the opposition's spokes-
men talked with equal }vigor but with
reliance on the cold logic Of the sit
uation that testified to their convic-
tion that declamatory appeals were fu-
tile to save q lost cause.
Contrary to Public Policy"
After substitute resolution had
been offered and overwhelmingly de-
feated, the convention adopted the fol-
lowing as expressing its position:
Resolved. by the American Bankers
Association, that we view with alarm
the establishment Of branch banking in
the United States and the attempt to
permit and legalize branch banking;
that we hereby express our disap-
proval Of and opposition to branch
banking In any form by state or ma
Resolved, that we regard branch
banking, or the establishment of addi-
tional offices by banks, as detrimental
to the best interests Of the people Of
the United States. Branch-banking ia
contrary to public policy, violates the
basic principles of our government, and
concentrates the credits Of the nation
and the power Of money in the hands
Of a few"
Andrew ]. Frame, of the waukesha
National Bank, Waukesha, Wis, open
ing the debate. drew first applause as
he asked whether the doom Of the
10000 independent banks Of the United
States, which had done more to up-
build this powerful nation than all tho
cream -skimming monopolistic banks
have done for other nations" was i'm
pending. He particularly commanded
Mr. Mckenna's attention as he said
that he had seen old world banking re-
cede from inpendent banking freedom
to monopolistic banking, colossal fail
ures and appalling losses to depositors.
He stated as the three principal argu-
ments for branch banking the conten-
tions that it served the people better.
that 1t lessened loses, and that because
some of the states allowed state banks
to operate branches, the national banks
should have some Of the pork"
Entering Wedge for Monopoly"
In controverting the first two argu-
merts. he cited the figures of heavy
losses to bank depositors In England
and Canada, far exceeding those in the
United States. Legislation putting ma
tional banks on an equality with state
banks he characterized as merely an
entering wedge for monopoly, asking:
"If a few big state banks, having
branches, can put out Of business all
other competitors and the big national
how long will it take to put all the in
dependent state and national banks out
of business?"
Mr. Frame opposed "Canadianizing
our banking system; allowing the large
banks to "skim the cream and leave
TO the local banks, who create the bust.
ness, the SKINNED milk" urged the
elimination Of this "cancerous growth,
and termed branch banking calamity
to any city, state or nation countenanc.
ing it, AS the expiration of his time
allotment caused President McAdams
TO pound the gavel, Mr.. Frame was
erected with cheers, shouts of Ego on,
| md vigorous applause.
The sentiment of the meeting already
was clearly registered, although Waldo
| Newcomer, Of Baltimore, leading the
other side, was warmly received.
Appeals for Fairness
Mr.. Newcomer made his principal ap
peal to the meetings. sense of fairness
| Admitting that the state banks, fa,
outnumbering the national banks IL
the association, could outvote the lat
ter, he urged that if branch banking
was wrong it was wrong for botl
classes Of institutions and that justice
should require equal privileges 70,
both. Five courses were now open tt
the national banks confronted by com
petition Of state banks operating
branches, he said.
"First, it can supinely sit down ant
lose it's business to its competitor.
Secondly, it can surrender Its ma
tional charter and become a state bank
Such course, if generally followed
would lead to the destruction of the
national bank system and seriously
threaten to disrupt the Federal Reserve
system.
"Thirdly, it can temporarily sur
render it's charter, become state bank
absorb bank with branches, or form