The New York herald., 1922-10-04

ber in the spring of 1889 | entertained
similar views when that grand old
banker, the late william \. Nash,
started to establish branches of the
Corn Exchange Bank. OF which he was
president, under a new amendment 10
the banking laws of the state Of New
York. Part of my personal experience
might serve as q practical answer to
some of the theoretical criticisms the
branch system is now receiving.
II was then president of a hank in
Long Island City. which to my mind
was only cqualed by the Bank of Eng
land, and | resented the right of
great New York bank to come into my
territory and compete with me, which
from my then point of view meant the
elimination of my bank | was, there
fore, bitterly opposed to such system
which could do such a great wrong.
Gets Surprise From Nash.
You can Imagine my surprise when
I was invited by Mr.. Nash to become
vice president of this great octopus
which was to drive every small bank
out of its Legitimate field. After my
talk with the head of this supposed
octopus had a different idea of the
vhoda proposition, but | still had my
doubts of its ultimate success. and 1t
required quite little negotiation before
| accepted his proposition TO absorb my
bank and myself.
Il must confess at that time ! was
not big enough to see the advantages
and possibilities of such an amalgama-
ton. Tho first two or three years
were very difficult years of organza-
tion and development, and we realized
lot tn laa I ef cd fOr
Europe to learn how to properly operate
branch banks. I was received by the
English, Scotch and French bankers
most courteously, and they gave me
full informaton about their respective
systems. and from that information we
devised the system under which we
have successfully operated.
Branch banking is like any other kind
Of banking. IT depends on how it Is
managed Speculative banking always
has disastrous ending wherever It
exists, but branch banking managed in
: conservative way Is now. in my opin-
ion, the best system of banking mat can
be devised. This opinion has been
formed from nay twenty-three years
experience in that class of banking
+ The Corn Exchange Bank had
about Sl0000o6o OF deposit and was
just about earning its dividends when
II entered the branch banking field in
1929. It's development Is a matter of
history and ] might say eminently
satisfactory to It's stockholders, but II
is unnecessary TO elaborate on il and
] mention IL only to illustrate what
branch banking. conservatively operated,
can do for "A hank | wish to say, how
ever that its record shows no branch of
this bank has been established where
Inn In otaxs ia,
Bank Put In Only ~ Needed.
Whenever a branch Of our bank has
been located where there was an exist
ing local bank it was permitted only sf-
ter careful investigation by the Bank
ing Department as to the need of an
other bank in that community. When
ever such a condition existed YOU will
find In each case the then existing local
bank has to-day Increased. deposits equal
to the total of our branch operating in
that locality.
otherwise | contend branch of our
bank in that locality made banking
center and not only stimulated business
for itself but benefited it's competitor.
Another fact which seems to prove
the advantages of such a system to the
public Is that In many parts Of our city
there was not sufficient available capital
for the organization OF AN independent
bank and in many such cases we es-
tablished our branches in these loeal-
ties and the communities developed
much mUre rapidly than they would have
otherwise.
"a fact which shows its popularity Is
that our accounts In 1899 numbered
2,5O0, and to-day they amount to 1876. 900
and are constantly increasing. This
great army of depositors testify as TO
whether branch banking is desirable. All
the old countries of Europe and Canada
on the north testify to the advantages
of branch banking.
II believe the laws governing branch