The Farmington times. (Farmington, St. Francois County, Mo.) 1905-1926, 1922-11-17

The fight, in effect, was declared 10
be one of the city against country, OF
"chain-store" bank system against
the individual small-town bank. A
summary of the arguments against
branch banking included the follow
ing:
"Shall 10 per cent of the bankers
force branch banking upon 80 per
per cent?"
Branch banking would make tool
of the Federal Reserve System"
"The Controller Of the Currency
deplores branch banking-but aids it
greatly"
"The past of branch banking is mo-
nopolistic--can its future be differ
ent?"
New York interests we're somewhat
staggered by the general attitude of
hostility against branch banking. AL
though several prominent financiers
spoke in favor of the idea, yet, finally,
in general session, the convention
adopted a resolution agains the sys-
tenn:
Resolved, by the American Bank
ers' 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
disapproval of and opposition to
branch banking in any form by state
or national banks in our nation.
Resolved, that we regard branch,
banking or the establishment of addi-
tional offices by banks as detrimental
to the best interests of the people of
the United States. Branch banking
is contrary to public policy, violates
the basic principles of our govern
ment and concentrates the credits of
the nation and the power of money in
the hands of few"
The vote of the convention, taken by
reclamation, was overwhelmingly
against branch banking. The dele
gates from the small-town banks, who
had swarmed to the convention from
all parts of the country, many of
them for no other reason than to fight
the encroachment of the powerful
banks and their branches upon their
own little institutions. applauded and
cheered their victory.
The opposition of Wall Street had
been much less than had been expect
ed.
The out-of-town bankers were en-
thusiastic over their supposed tri-
umph. Whatever views the financial
powers have regarding branch bank
ing, they relegated them to the back
ground for the time. They permitted
their guests to score an easy victory,
for they had in mind the solution Of
problem of more immediate impor-
: lance to themselves. Wall Street
fnanciers are anxious to cancel the
Allies debts, and the real purpose of
the meeting was to induce the as
: sembIed bankers to exert their cour-
;; try-wide influence in helping to shape
! public opinion to that end.
Roughly totaIed, the Allied indebt-
,, edness to the United States aggre-
! gates $11,000,0 100000. The greater
part of this huge sum was not actu-
, ally handed over to the foreign gov
: ernments. 1t was deposited to their
: credit in the large financial institu-
tions of Wall Street to pay for war
y material, railway equipment, food
stuffs and supplies that were sent
abroad. Eminent banking houses
which had become the purchasing
agents of foreign governments, plac-
u ed the contracts for the manufacture
or purchase of such goods and mater
ials. They had full control Of the
! disposal of the billions raised by the
! sale to the public of government
! bonds. The contracts were placed in
! munition plants, steel mills. railway
equipment and other industrial cor
porations organized and controlled by
: financiers. 1t is through these funds
!, that the wealth of Wall Street has
: been quintupled since the war.
Within the last few years the fnan-
cial district has adventured into an
: untried field. Its international bank
ing houses have established branches
in the countries of Europe and Asia,
where they have engaged in the bust
ness of making foreign loans, even to
the as yet unstable governments OF
newly created nationalities. Whether
this speculative enterprise is for good
or i'll remains to be proved. Wall
Street is exacting huge tribute from
these distressed countries. Its profits
are immediate and enormous. Only
the contractual parties can tell what
banking commissions are being paid
These risky Czecho-Slovak, and
other foreign bonds are listed in large
amounts on the New York Stock Elk
change. Generally they pay from sew
en- to eight per cent. Wall Street is
not bond buyer, but bond seller
The investment public takes the risk
However, should the Allied Govern
ments be called upon to pay their OBJ.
legations to us, most of them would
be unable to borrow money through
foreign loans. Wall street would lose
this profitable business.
But those eleven billion dollars mus
be paid. That debt is represented by
outstanding obligations of the Unitet
States Government. If they are moi
paid by our foreign debtors they viii
be paid by the American people
through the continuance of high tax
alton and heightened cost of products
The international bankers are content
to see this done. This, in a nutshell
explains their attitude.
"Big Guns" to Stampede Them
The two chief speakers at th'
American Bankers Association con
vention were Thomas w. Lamont, o.
the firm Of ]. P. Morgan and Com
Many and Repinald Mckee form