Richmond times-dispatch. [volume] (Richmond, Va.) 1914-current, 1922-07-31
The Bank Controversy

CrATE banks and trust companies OF Cook
~ County, H., have protested strongly
against the ruling of the Comptroller
of the Currency under which national
banks may open and operate agency offices.
although under the law such banks are now
permitted 20 establish branches. 1t is
charged that the comptrollers ruling Is q
plain evasion of the law and is intended
to put national banks in direct competition
with State institutions, which in most States
are permitted by statute or executive order
to have ms many branches In a given COM
munity as may be desired.
Comptroller Crissinger does not agree. In
the answer be makes to the Illinois bank
ers, that he has violated the national b ,.'.-
ing act in authorizing agency offices. -
makes distinction between such an Office
and branch bank on the general theory
that the latter must be provided with sep
aratc capital and must make a separate ac-
counting OF assets and liabilities even
though owned outright by the parent insti-
tuition.
But the comptroller admits frankly that
his order is intended to put national banks
on basis to compete successfully with
state institutions and the facts he cites to
support his view undoubtedly are convinc-
ing. He makes the point that the national
banks operating against a State bank with
branches scattered throughout a city, is at
"a serious disadvantage. And he shows that
State banks and trust companies have
forced scores Of national banks to surrender
their Federal charters in order to survive
competition
The case of Detroit is referred to. In
mat city of nearly 100000 people there
are only three national banks left, although
there are Il total of 1855 banks and branch
ha
that city. And these three national
banks" Mr.. Crissinger says will be COM
peeled 10 go out of the system unless they
are accorded the same privileges as State
banks. The same situation exists In Clcye-
land. Los Angeles and New York. Mr.. Girls
singer adds. and he is convinced that
national banks in these and other cities
similarly handicapped will not be able TO
live unless they are authorized to operate
agency Offices
Up TO this time" the comptroller saws
III "eichse OF his ruling, Il have limited
these additional offices TO the States where
state authorities and State laws permit like
Facilities in the case of State institutions
and ] know that am within right and JUS
'Ice; that such action Is neither revolutionary
nor does il favor few at the expense of
the many, and there is merely the American
square deal for national banks that have
To meet the competition permitted by the
legislation and executive orders OF twenty
TWO States
The charge of the State bankers is that
such ruling as has now been made will
tend To overdcvelop the banking business
OF given city: that national banks will
u" found opening numerous agency Offices
10 meet The competition of branches OF State
institutions. and that all interests eventual
~ Will suffer. This argument seems far
fetched National banks will not increase
lhcir facilities beyond the point of profit
ihey VIII open only such Offices as NAV
De expected to pay, and those that do not
pay. will be closed
II seems to us that the comptroller Is IN
solid ground in giving the national banks a
full and fair chance to compete successfuIl,
with state or private institutions.