Evening star., 1922-10-14
See Branch Banks as an Evil to
Most Small Communities.

There is general approval on the
part of the newspapers of the action
of the American Bankers Associa-
ton in condemnlng branch banking
because it tended to centralize au-
thority and is not responsive to local
conditions. This approval is gen.
orally voiced by editors representing
the smaller communities. but their
views are seconded by such influen-
tial journals as the Chicago News
and New York Times. On the ques-
ton of cancellation bf foreign debts
the newspapers remain widely di-
vided. and. In many cases. political
views obviously govern expressions
of opinion.
The time has come" the Chicago
Daily News asserts. Ito BRING the
entire banking structure into more
harmonious organization. The fed
eral reserve system greatly reduces
the supposed need for branch banks.
The opponents of such institutions
should use their influence with the
state banks that. for reasons good.
bad or Indifferent. sound. selfish or
bership in the federal reserve sys-
tenn, and so induce them to join:
1t must be remembered. the NIL
waukee Journal continues. that the
local banks chief interest is its COM
munity. 7. knows the community's
bank must consider its field as a
whole and cannot be responsive to
the peculiar conditions of each COM
munity." Because of all this. the
Fargo Forum holds. "the branch
banking system, like the chain news
q, Of
the welfare of the smaller cities OF
the country" The evil Of such CEN
tralized control has been so great,
the Illinois State-Journal recalls. that
"branch banking is not permitted IN
Illinois So far as the state Is aole
to control the situation"
The other outstanding phase of the
banking situation. the foreign debt,
also comes in for attention by the
editors because of the appeal OF
Thomas w. Lamont for cancellation
Of the foreign debt. and the Boston
transcript in this connection asserts
at is time to remind Mr.. Lamont and
tho other bankers who agree with
him that any administration or any
party that attempts to cancel these
defeat at the polls" to which the Den
yer Rocky Mountain News adds a
note questioning whether speeches Of
lhis character will help the situation
much" but recalling that this coun-
try has been filling the place of
England as the loaning nation" which
eventually must cause 1t ITO change
its political policy" The News then
proceeds to point out that ''oil is be-
ginning to make 1t do SO at this mo-
ment. It cannot allow European and
Asiatic oil fields to pass into the pos
or a political declaration of mastery
Isolation" But because no banker
has come forward with a cocksure
formula" to deal with the fnternation-
al debt situation the Newark News Is
convinced the bankers 'in the course
lot Of tall thinking about it," while
the New York Globe In turn remarks:
'The bankers are as much at sea as
the rest of US over the admlnistra-
tion's foreign policy" although their
resolutions are a powerful reminder
that it is time for the administration
to turn its back on the peanut politics
and personal animosities Of 1920 and
consider the actual present economic
interests Of the country"
Because of existing international
afHliations the Jacksonville Florida
that the bankers are in position to be
entirely "altruistic" In debating the
situation. suggesting that when they
announce to what extent they will
cancel the obligations due them from
the nations Of Europe they will give
the government Of the United States
q suggestion as to what proportion 1t
should cancel. Until they do this sus-
picious mon will be found who will
say they wish the government to
cancel obligations duo It so that the
nations of Europe will have more
money to pay them what they have
borrowed" The Rochester Times
Union. on its part, desires to know
"of what use to US are big totals of
money coming to US If the figures
don't mean anything? If the men
best informed on finance think read
justment Of interallied debts and bet
ter international cooperation are an
essential for setting the world on its
feet again we, as the largest single
national unit in that world. should do
well to give their counsel careful
consideration" And the Chattanooga
News further holds that 'ft is con-
dition, not a theory. which confronts
us-and the world. We would just as
well. blink 1t. The sooner disturbed
conditions are adjusted on basis Of
practical common sense the sooner
prosperity will be restore L.
But, after all, it is the branch bank