The New York herald., 1922-10-02
BANK CONVENTION
MEETS HERE TO-DAY
Continued from First Page.


was cheered when he said that this was
no time for any weak ltneed resolu-
tions" and that II branch banking con-
tinued TO grow the finances of the coun-
try would be entirely In the hands of
few Wall Street banks and the few men
who control them
Vernon r. Loucks of the Chicago bar
delivered an address entitled IAN Argu-
ment Against Branch Banking" He
said:
1--WE have to-day the best banking
system that has yet been developed. We
have less reason to discard it for the
branch banking system now than ever
before. Our banking power is the great
est known. We have more independent
and resourceful banking brains, extern
sively located at points of commercial
vantage throughout the country. than
any other nation Banking resources
are more available to the average citi-
zen than to the people of any other
country Prosperity Is more universally
and widely diffused than in any other
government. Let us not at this most
fateful hour discard SO vital q factor
In the prosperity and greatness of our
nation.
Let us consider some of the evils that
arise from branch banking.
First, it destroys the interest which
each community takes in its own insti-
tutions.
Second. the branch banking system
takes away the benefit of having a bank
under control to build up local indus
tries. Local officers and directors
understand the needs of community
more intimately and can act with
greater promptness than an agent or
nonresident board of directors. Human
interest prompts the local board of di-
rectors to take care of local Industries
first Actual and daily contact with the
various borrowers and thorough knowl-
edge of the needs of the community
make the local board and officers COM
petent to exercise judgment. They can
afford to take chances In the matter of
new enterprises that a long distance
board of directors would not be justified
in taking.
Third. branch banking causes a great
economic waste.
Fourth, branch banking is monopo-
listic and would ultimately destroy the
independent bank system. The branch
bank is a formidable competitor for one
reason, because II does not have to pay
taxes upon It's capital stock in the prov
ince or county where the bank is located
No capital stock taxes are paid except
by the parent bank at the home office
Furthermore. the large bank is in a po-
stion to say to the small one Sell out
to us or we will open branch across the
street and with our imposing list Of di-,
rectors and large statement of resources
we will attract the savings depositors-
the profitable trade--and drive you out
of business
ut has frequently been stated that the
branch banking system in supplauting
4. -
few large institutions will lessen tie dam
ger of panics. But how utterly unrea-
sorable and contrary to our own ex-
perience that statement is! Have any
of you ever heard of a panic occasioned
by the failure of a small country bank?
1t is the failure of large institutions
with their varied interests scattered
throughout the country that causes wide
spread disaster and calamity.
Branch banking does not prevent
bank failures In the last eighteen years
six of thirty-five banks in Canada have
failed, and two were big banks with
many branches. The Ontario Bank of
Carada had twenty-four branches and
the Sovereign Bank of Canada had
forty-three branches.
thousands Of great industrial en-
terprises of to-day have grown from
small beginnings. Years ago some man
Of ability needed money to start or to
develop his business. Had he submitted
his financial statement through
branch manager to a distant bank II
would scarcely have been considered.
but some banker In his own town
knew him personally. He knew him, not
MS a man of means. but as a man of
force. ability and character. Approved
banking securities were impossible, but
In a
trusted him. The result was the growth
of an industry. the employment OF labor.
the success of business man and the
development of n community.
Every broad gauged constructive
banker has had just such experiences
In his own business life. He has caused
blades of grass to grow where none
grew before He has been a great con-
structive force in the community Thou
sands OF factories and Industrial enter
prises are scattered all over our coun-
try to-day as monuments to the vital
part he has played In the economic de-
velopment of the nation"
The following resolution was adopted
at the meeting:
Resolved. by the representatives OF
banks here present that we view with
alarm the large increase In the number
of branch banks In the United States
and the growing tendency toward legal
izlng and permitting branch banking
that we desire to express our disap-
proval OF and opposition TO branch bank
| Ing In any form or nature and
Resolved. that we regard the branch
banking system as detrimental to the
| hest interests of both the banks and the
people OF the United States and as tend
Ing to concentrate the power of money
In the hands of few centralized inter-
| ests and
! Resolved. that a committee be an
pointed to prepare a resolution In accord
with the above stated resolutions for
presentation before the American Bank
ers Association to combat the opening
| OF additional branch banks or Offices"
H. y. Hecht, president Of the Hibernia
Bank and Trust Company. New Orleans.
and president of the State Bank Divi-
sion of the American Bankers Associa-
tion, asserted that II the foregoing reso-
lution be presented II would split the
American Bankers Association into two
parties.
| The following steering committee and
committee on resolutions was appointed
| ]. y. Powell, chairman Sam y. Jeffries
! Roy o. West. William r. Gross, A. w
Tremain. a. J. Frame, Vernon Pollock.
/ Frank J. Couse. Frank T. Hodgson. w
J. Rathje, A. r. Emmerson. John e.
Wagner and Vernon Louks. The com
mttee went into immediate session Mt
the adjournment OF the general meeting.
Headquarters Of the anti-branch
bankers was established at rooms 440
to 442 Blltmore Hotel and preparations
were made to round up all the votes
possible In the American Bankers AS