Evening star. [volume] (Washington, D.C.) 1854-1972, 1923-06-23
BANKERS DISCUSS
RIGHT TO BRANCHES
Situation in District Outlined
at Convention in Hot
Springs.
Special Dispatch to The Star.

Special Dispatch to The Star
HOT SPRINGS, Va, June 23-One
OF the most interesting sessions Of
the convention of the District Bank
ers Association, was held this morn
ing, when five prize winning essays
on branch banking, by members Of
the Washington Chapter, American
Institute of Banking, were read. The
subject, which is at present a source
of discomfort in the District bank
ing field. was covered from every am
gle, three of the authors favoring the
right to operate branches, the re-
mainder opposing.
Joseph d. Yerkes, Federal Ameri-
can National Bank. which operates
no branches, voiced the opinion II
many when he declared: THE fail
ure to permit national banks to estab-
fish branches within the cities in
which they are located is liable TO
produce very beneficial results
Factor of Reserves.
Likewise. w. f. BoIls of the Wash
ington Mechanics Savings Bank de-
clared: "One of the most vital fac
tors in our banking system is that
of reserves. Our present reserve re-
quirements are worked out to meet
the needs of an Independent banking
system and do not contemplate d
branch banking system. will a net
work OF branch banks undermine or
render less mobile the reserve pow
ers so necessary in preserving and
stabilizing our banking system2 1t
Will. especially in times of financial
stress"
On the other hand, Robert c. Dan
fels of the Commercial National Bank
aligned himself with the movement,
stating: As a manifestation of sub
stantial progress in the field of bank
ing branch banking may well be
commended. The purpose of the es-
adjustment of branch banks is to
provide the public with more con-
venient banking facilities, multiply
the places OF business and thereby
increase the volume of same. The
IDEA Is in keeping with the advanced
progress made In other lines of COM
mercfal enterprise.
Expansion has come about largely
through the demand for it,"
j. William Roberts Of the American
Security and Trust Company, which
maintains several branches, goes a
bit farther, and predicts it has come
to stay.
He says: Branch banking, one Of
the chief topics of discussion by the
bankers OF today throughout the
United States. has been tested on its
merits by numbers Of our larger
W washington banks. with the result
that 1t has come to stay, owing to
the change of conditions and the
complete satisfaction obtained
through their USE"
Field I'm Washington.
Perhaps the strongest argument for
branch banking by national institu-
lions was presented by Garrett NJ
! van Hoesen of the Second National
Bank, which operates a branch. by
a presentation of facts as they exist
in Washington. He says: There are
two banks in the District of Column
bia that are far ahead of all Others
| In the operation Of branches One
Is national bank and the other a
trust company. Taking these two as
examples of their class. one can see
at glance the havoc that would be
wrought II national banks were for
hidden to operate branches.
THE national bank would lose
much of its business, as II could re-
tain only its main office. The trust
company would get most of 1t, as It
could operate branches in the COM
munitfes in which the national bank
had its branches. The success this
one-branch operating bank would en-
JOY would draw others into the field
These trust companies and savings
banks. each operating one or more
branches, would soon outstrip their
national bank competitors, who are
not allowed to operate more than one
place of business"