New-York tribune., 1922-10-05

branches and renew Its national
charter.
"Fourthly, it can establish branches
and call them Offices Both these last
two plans are indirect ways Of doing
what the bank believes to be right, but
are apparent invasions OF the possible
intent of the law.
'Fifthly, it can endeavor to deprive
a state bank of Its unfair power. This
latter, however, is practically impossi-
BILE. Branch banking is permitted in
seventeen states, prohibited In sixteen
and in the other fifteen and in the Dis
trict of Columbia there Is no specific
provision"
Two objections to branch banking,
that it is unconservative and that 1t Is
against policy. were disposed Of by
Mr.. Newcomer as disproved by ex-
perience. All that was sought by the
national banks, he explained, was that
they be placed on an equal basis COM
petitively with state banks in the
municipalities where located.
Equality for Both
"If YOU believe that branch banking
lis conservative and safe under limited
conditions" said Mr.. Newcomer, "it
is your absolute duty to get back Of it
| and support strongly a move to grant
| under those conditions that right to
| national banks, which will put them on
parity with your state bank mem
| bers.
"If on the other hand, you believe
| that all branch banking under ell CIR
cumstances Is bad banking, then you
insult not only refuse to support the
be their rights, but must Immediately
demand that every member bank,
whether state or national, which to-
day has any branches or Offices other
than its main offices, must forthwith
close those branches and offices or i'm
mediately resign from membership in
this association, as doing an uncon-
servative business not approved and
supported NY the association. There is
no middle ground"
Samuel B. Jeffries, vice president of
the First National Bank, St. Louis
took the floor to introduce the resolu-
ton, which was seconded by Roy West
of the Chicago and Cook County
Bankers Association, and N. D. Prince,
vice e-president of the Hartford-Con-
Preston, Of the Hamilton National
Bank, Chattanooga, urged that ma
| tional banks in fairness should be
allowed the same freedom as the state
banks. F. o. Watts, vice-president OF
the First National Bank of st. Louis
which by opening "offices" has become
the center of the controversy, then
made O plea for the increased service
rendered through branch banking.
Asks for judicial Decision
Mr.. Watts, who bitterly referred to
the opposition which his banks project
has met declared that the question
could not be settled on the floor, that 1t
had become a matter for judicial deci-
sion, and that he hoped a problem
which had drawn bankers from all over
the country would continue to be
fought out until it was settled right.
The amendment to the resolution
was then offered by John G.. Lonsdale,
president Of the national bank divl-
sion. and accepted by Mr.. Jeffries. A
substitute resolution was thereupon in
troduced by w. A. Bonynge, president
of the Commercial National Bank of
Los Angeles, operating three branches,
who declared that. while he did rot be-
lieve in branch banking, he did not
believe 1t menace if properly re
strcted. The substitute, in four divi-
sions, admitted the right of state leg
|islatures to regulate banking within
their states as they saw fit, asked equal
privileges for national banks where
branches were allowed state institu-
tions, opposed any law giving national
banks such rights where not enjoyed
by state banks, and also opposed per-
mission for banks to establish branches
outside of their home state.
Daniel F. Guinan, treasurer of the