Evening star., 1924-11-09
By /. A. FLEMING.

1t is probable that the McFadden
banking measure will be brought up
before the next session of Congress
and that 1T Will become a law at that
time. 1t is admitted that the law
makers arc anxious to give aid and
comfort to the national banking in
stitutions of the country and to re-
move from their operation any han
dicaps that may give to State banks
and trust companies advantages some
of which have threatened the very
existence of the national bank sys-
tenn and with it that of the Federal
reserve act.
Unless the measure is passed at
this session of Congress IL will have
to be introduced again with the first
session of the new Congress just elected,
plus the holdover Senators.
To the McFadden measure will be
attached the amendments offered and
approved by the American Bankers
Association al its recent annual con-
vention in Chicago, but which ac-
ton the association about-faced and
passed on record giving strong in
dorsement to branch banking in
States where it is now authorized
but against its expansion elsewhere.
Officials of the association have
congratulated each other on the set
tlement, in SO far as the organization
is concerned, of this much-mooted
question.
While there has been very little
publicity given to this important
action by the A. B. A., the very first
sentence in the report of the Chi
cago convention in the American
Bankers Association Journal shows
the Importance attached to the action
What the A. b. A. Jaurnnl Says.
"A happy solution of the branch
banking issue was reached at the
5Oth annual convention at Chicago.
held September % to October 3 By
a unanimous vote the convention in
dorsed legislative plan to preserve
the American independent bank sys-
tenn by confining branch banking to
the cities where the practice is now
in force, placing national banks more
nearly on a parity with state char
tered institutions, and erecting a bar
rier against the spread of branch
banking to new territory.
This action stands out as the most
notable achievement of a convention
that was featured by a registration
Of 7.03S, a program rich in progressive
banking thought and a significant
harmony of opinion on the major eco
nomic issues"
Action Was Foreskadewed.
That the A. B; A. would reverse it
self on the branch banking PROPOSE
tion was foreshadowed by the first
meeting of the administrative coun-
Gil of the association this year, when
q motion to approve the McFadden
measure in toto was ruled out of
order on the ground that the asso-
citation had gone on record against
branch banking. and a motion to ap-
prove, with that section eliminated.
was tabled by the friends of branch
banking.
The resolution as passed unani-
mously by the convention follows:
"As each member of this association
is we'll aware, the branch bank question
has for many years sorely disturbed
the banking fraternity of America. Upon
at least three occasions the members of
this association in convention assem-
bled have expressed their opposition to
branch banking. On February IL, 1924,
Representative Lewis T. McFadden in
troduced in the House Of Representa-
tiyes a measure officially designated as
H. r. 1887 which amended in several
instances the national bank act. the
two most important sections of the
bill dealt with the branch bank prac-
tice, one of the sections prohibiting
the further expansion OF statewide
branch banking upon the part of MEM
Der banks of the Federal Reserve
System. The other granted to certain
national banks the right to establish
citywide branches under stipulated
conditions.
cit was believed by many that the
method of granting relief to these ma
tional banks, located in the cities
where branch banking was extensively
practiced by State institutions. was
fraught with grave possibilities. To
safeguard the interests of thousands
of individual bankers, to insure that
our independent banking system-par-
ticularly adapted to the needs Of this
country-should continue to make GER
tain that branch banking should be