New-York tribune., 1922-10-03
Fight to Halt
RranchBanking
Gains Impetus
Chicago Organization Claims
Enough, Votes to Check
Concentration of Power
in Hands of a Few
Rig Split Is Threatened
Ne;ghborhood Institutions
ne nj and Share of
Credits and Influence

,...;,ed in proportions and purpose,
.aSs further headway as the conven-
- ~ the American Bankers Asso-
s:.tso, opened at the Hotel Commodore
s.as,srday. The gains were emphasized
T. sss lack of any check to the move
~, and the temporary absence of
characterization Msas This is expected to
s..ss ;ts appearance at the meeting of
-. ysf;onsl Bank Division and is not
u.s u.s,tsd npon to show it's full force un-
sv' 81 .ss question is raised on the floor
" :. ,bs general session of the conven-
ton tomorrow
.,,onents of branch banking was won
sstlh '. t.he meeting of the State Bank Di-
e.ss;nr at which a resolution framed
Nv the group led by the Cook County
RapksrsS Association was unanimously
aSonted without discussion. This res
aft a,ut;on. Identical with that which will
W. nresented for vote by the associa-
s;a5 at large, read as follows:
ags il resolved that the state bank
diyision of the American Bankers As
soeiation views with alarm the estab
lishment of br;Sch banking in the
United States aid the attempt to per-
init and legalize branch banking; that
and opposition to branch banking in
any form in our nation.
"Resolved, That we regard branch
banking, or the establishment of addi-
tional Offices by banks, as detrimental
10 the best interests of the people of
the United States. Branch banking is
contrary to public policy, and violates
the basic principles of our govern
ment, as it concentrates the credits of
the nation and the power of money in
the hands Of a few
Calls for Change In Laws
The trend of the meeting had pre-
Nously ben indicated in the reception
O. ne report of the federal legislative
committee. prepared by Guy E. Bower
man and presented by Deputy Man
ager George E. Allen. In discussing
the subject the report said:
"The question now is not, Shall we
have branch banking? but rather,
What shall we DO with branch bank
ing? 1t isn't going to arrive. It's here,
and those who do not look this fact
squarely in the face are, think, stand
ing in their own light.
"lf you do not want branch banking
In your state, since you are alive to
tue pEopaDliItleS Oh tHe S'lUaClon, you
should use your best efforts to prevent
the enactment of legislation which
makes it possible. II the present laws
are unsatisfactory, endeavor to correct
them by elimination or amendment"
The report concluded with the ex.
preston of an opinion that it would
be selfish and bordering on cowardice
to refuse national banks privileges
which state banks enjoy and that or
dinary business prudence should
prompt the division to direct it's efforts
toward circumscribing branch banking
70 cities of 100000 population or more.
THIS expression was attacked from the
floor by S. D. Scudder, of Passaic,
n Jq and was stricken out before the
report was fled.
No Fear of Monopoly
President R. s. Hecht, of the division,
revealed in his speech the danger to
the associations unity involved in the
fight.
at goes without saying" said Mr..
techt, that none of us want to see
our independent banking system put in
any jeopardy but, with the exception of
one or two states, there probably is no
real Justification for the fear of some
Of our banks that their autonomy and
independence are in any danger and
that we are threatened with any sort
OF monopohstc control We should
not permit the issue to become unduly
erriused, for there is all the difference
IN the world between the unrestricted
expansion of branch banks on the Eng
hsh and Canadian principle and the
PERMISSION to operate several Offices
Ti'hln the same municipality in which
the principal Office is located. The one
Ieaiiy does carry with it the danger of
700 much concentration of power in
the hands Of the few. The other is
ssuSilS IS merely convenience to the
people. - VIC 0"''A W VIC
After all is said and done. the real
place to make a ight against ] the e~-
tension Of the branch bsnk;no svstem
rs at the state convention and the ses-
SONS OF state legislatures. because
nothlng that we can do at this meeting
eah change the laws of the states
WAich permits banks to operate more
'han one business Office.
1, 1here is, however, one asnect of
lne case IN which all of us have yery
.h, ateGt interest, and that is that we
nnouiu INSIST that the Federal govern
fron, en, aosoiueeiy prohibit national banks
ta tiom invading the territory of state
pahHs with additional Offices or
iIiahehes IN states where the state
tiaw denies the same privilege to state
panKs' We believe that it would be
suiIe unfair to permit banks chartered
aaoer the Federal law to compete with
nate chartered institutions on such
UNEQUAL terms, and the members of our
eiVislon should protest most emphati-
ssany against any Interpretation Of the
.aw which would make possible such
.Ompettion in the states where our
eWh members are denied the same
privilege"
Threat to Quit Organization
The protest of the Cook County as
soc'ation, delivered in the spirit of de-
y handing hearing on threat of quit
.Nhg the major organization, provided
.Se major topic of conversation among
"a. .ae banking delegates yesterday. At
the Hotel Biltmore the Cook County
sseaegation was jubilant, the headquar-
mrs Of the anti-branch bankers an
ssog9hcing that bloc of 1900 delegates
Saa been rounded up to support any
Ssolution that it might offer. At a
seeang late Sunday night it was ar
svaaged with President McAdams and
ce-fresident Puelicher that efforts
A. prevent vote or to strangle the
Ss SSs0ste at the general session would not
ee permitted.
las question will come up to-mor-
NV at 1855 a. M, when Anorew J..
sona. chairman of the Waukesha Ma
Naisal Nisa Bank, Waukesha, Wis, and
honal newcomer, president OF the Ma