The New York herald., 1922-10-05
State and National Systems
Joined in Overwhelm-
ing Decision.
BIG PROBLEMS ANALYZED
Reginald McKenna, Frank A.
Munsey and James s.
Alexander Speakers.

The American Bankers Association
by an overwhelming vote passed a reso-
luton yesterday denouncing branch
banking.
and finally adopted after one of the
hottest debates in the history of the
association, included in it's disapproval
branches of State as well as national
banks. The resolution said:
"Resolced. 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
tional banks in our nation.
"ResoIUed, That we regard branch
banking, or the establishment of ad-
ditional Offices by banks, as detri-
mental to the best interests of the
people of the United States. Branch
banking Is 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"
Apart from this declaration and the
debate preceding 1t the third day of the
convention was made memorable by a
message from President Harding and
also by the discussion of national and
International topics of momentous in
terest by high authorities. These in
cluded the Right Hon. Reginald Nc
kenna, chairman of the Joint City. and
Midland Bank of London, formerly
Chancellor of the British Exchequer: (:
Fred /. Kent OF the Bankers Trust Com
pany, chairman OF the associations
commission on commerce and marine ,
Frank A. Munsey and James S. Alex
ander president of the National Bank
of Commerce of New York.
Mr. McKenna and Mr.. Kent spoke at
the general session of the convention in
the morning. Tle addresses ot Mr.
Alexander and Mr. Munsey were de-
livered before the national bank divi-
sion in the afternoon.
SO keen was the desire to hear the
Views of the distinguished British finan-
cicr on reparations and fnterallied war
debts that the main ballroom of the
Hotel Commodore was filed to capacity
before Mr.. McKenna began his address.
Hundreds of disappointed delegates were
turned away after the doors had been
closed. Never in the associations his
tory, officers said, had convention wit
messed such a flood tide attendance.
Mr.. McKenna's speech, which is fully
reported in another column, was care
fully prepared analysis of the whole
outlook upon European finance. This Is
how he summarized 1T:
THE conclusion to which am driven
is that Germany can only pay now
whatever she may have in foreign bal
ances. together with such amount as
she can realize by the sale of her re-
naming foreign securities, that this pay
,nent is only possible IL ell other de-
Ihands are postponed for definite
period long enough to insure the sta
bilization of the mark: and that future
demands at the expiration OF this period
must be limited to the annual amount
OF Germanys exportable surplus at that
time.
Further. that England has the ca
pacity to pay to the United States in
terest and sinking fund on her debt. but
that the other debtors are none OF them
in position to meet more than a small
part OF their external liabilities. and In
the existing condition OF Europe a
definite postponement of any payment
by them is desirable In the interests of
all the parties.
THE actual amount which the other
..ttt II, IL. 4
in the case of Germany. be ascertained
by inquiry into their exportable surplus
at fun and frank conference between
creditors and debtors"
MIR. Kent Sees "wilI to Pay"
Mr.. Kent. in presenting his report for
the Commission on Commerce and Ma
rine, touched upon the same theme
when he said:
"In spite of the controversies which
Rave been carried on In connection with
the interalled Indebtedness. there would
seem to be no question but that there
Is the will to pay on the part of the
principal nations concerned, which car
rles with II more -orce than is popularity
supposed to be true
"On the other hand, even where there
Is the will to pay, strong feeling ex-
lists that actual payment will be ex-
tremely difficult for all nations involved
and that will delay the satisfactory
working out of the present complex
economic situation. 1t Is admitted by all
sound thinkers that there should be no
reputation of tho interallied loans. but
there is growing feeling on the part
of many that there should be cancel
lation of the loans In such part as the
war conditions, under which they were
spent would Justify"
After Mr. McKennas address the
convention elected these officers for the
ensuing year: President. John II. Puel-
icher. president OF the Marshal and lis
Continued on Pare SIX