Evening star., 1923-10-04
D. C. BRANCH BANKS
MAY REMAIN OPEN
Attorney Generals Ruling
Does Not Alter Status of
Those Now in Operation.

The ruling of Attorney General Daugh-
erty on national bank branch legisla-
tion, made public yesterday by Con-
tro!ler Of the Currency Henry NJ. Dawes,
does not alter the status Of national in
was learned from an authoritative
Treasury source this morning. On the
other hand. it really strengthens the
national banking act, It was explained.
The situation can best be explained
locally. For instance, in the case of
Riggs National Bank, which is operat-
ing four branches, the authorization
for three OF these outside offices, name
ly, at 7th and I streets, 18th street
,, and Park road and at Dupont Circle. is
granted in the national banking act
passed in 1856 and never repealed, and
| which has not been touched upon In
Mr.. Dangherty's ruling. The office of
iumbia % road known M fn as Sa the Washing
ton Heights Office, was created under
the Millspaugh act, passed last year,
! which vests In the Office of the con-
ing in the District of Columbia.
Branch Banks Need Not Close.
Under the popular local construc-
tion Of Mr.. Daugherty's ruling the
national bank act Is actually extend
ed to cover this specific case. Thus
at least three of Riggs outside Offices
are actually operating under an act
of Congress, with the fourth function
ing under authority given by ex-Con-
troller OF the Currency d. r. Girls
singer.
The Same is true in other local
cases.
Curtailment Of branch's functions
to the taking in of deposits and the
payment of checks" as stated in the
ruling will work no hardships on in
much as the granting of loans. pur-
chasing of securities and other I'M
portant items are always left to the
tdiscretion OF the parent organization.
Dawes Views Please Opponents.
Opponents of branch banking. how
ever. gain some satisfaction in the
testimony of Mr.. Dawes when he de-
| clared:
Branch banking is. in its essence.
monopolistic.
! The financial resources of a num-
ser OF communities are put under the
viduals. Funds iiquidated in one
community may be used to develop
other communities, at the discretion
| of the officers of the central bank.
of q given territory under the con-
| troll of branch would depend upon
the policy of the bank. The bank
| would have the power to retard or to
encourage the development of a given
community or individual enterprise.
! I'm this connection IL has been well
! said that II the sudden creation of
great branch banking systems shall
result in Withdrawing funds from the
support Of rural communities in
order that they may be invested in
selfliauidating commercial paper
originating elsewhere. then il will be
| true that sound abstract banking
!: principles will have been applied, but
OF rural communities that viii far
outweigh any advantages that may
be gained.
/ I'm a system of independent unit
| banks, the bank which best serves the
community is the bank which is most
certain to live the longest and be the
most profitable to it's stockholders.
Since the type of man who starts a
bank in small community is essen
TALLY constructive, his natural asso
| Citations and sympathies are with men
| OF constructive type, and he extends
the facilities of the bank most liber-
ally to them. His loans take into ac-
count as a first consideration charac-
ter and moral responsibility. He is
naturally inclined to encourage young.
,aggressive and enterprising individ-
uals who will, in the course of time.
bring business to the institution as
! nc SuCCccuSs anu VIII OeFeIOp COIn-
mercial and Industrial enterprises and
be a factor in the creation of corpo-
rate and private undertakings. all of
which will be feeders to the bank.
LAS this type Of individual is usually
not the possessor of high-class COL
lateral at the beginning of his career,
the banker Is dependent In a large
measure on the character, of which
he can only be sure by personal con-
/ tact and acquaintance"
Today'a Exchange Trading.
Firm prices continue to evidence
themselves on the Washington Stock
Exchange. In todays session Capital
Traction stock climbed above par, ten
shares selling at 100k, while Mergen-
thaler Linotype was strong at 1854.
Gas stock was firm, but unchanged, at
4s&.
On the bond side OF the market
Washington Gas 6s of 1888 sold at
.1o0Is and 101, with Capital Traction
5s unchanged at 90. Potomac Elec-
tric general and refunding IS brought
1011s ...