Evening star., 1925-01-11
Local Banks Report Deposits
d Largest in Capitals History
Gain of $4,000, 900 Ouer Same Date Year
Ago-McFadden Explains Details
of Famous Banking Bill.
BY CHAS. p. SHAEFFER.


in this edition, this sum represents a
gain of s25,0oS,SSA26 over the same
date one year previous.
National banks are shown to have
been the heaviest gamers during the
year, reporting an aggregate increase
of Sl6,636, ,116.49. Trust companies
come next with an increase of &c.
124,01S.19, and savings institutions
gained $2,248,749i5S during the ~
months.
More than half of this huge sum on
deposit is held by the 13 national
banks. This class of institution ac-
counts for $l19,7S4.04593 of the sum
total, while $74,11Q,31l.5S is held by
the seven trust companies, and the
remainder. s3o,s7S,9e3.5O by the %
Savings institutions
The previous peak in District bank
deposits was reached on October 10
last, when a total of s214.53S, ,064.5S
was reported. The new mark shat
ters the old by s10,1S5,l96.43.
In a comparative analysis of the
last two calls of the Controller of the
Currency, it is significant that every
class of institution showed increases.
National banks gained $6.17S,789.77.
with only one reverse, trust compan-
les reported a gain of $3,S9S. .307. .03,
and savings banks gained S108, ,0ss. 90.
In view Of the large sums disbursed
account of Christmas savings clubs,
the gain of the savings institutions is
held especially commendable. In fact,
savings bankers themselves are at a
loss to account for the increase
Bank OH1ciaI Promoted.
Frank E. Ghiselli, assistant treas
urer of the Merchants Bank & Trust
Co., has been promoted to a vice
presidency OF the institution.
MIR. Ghiselli started his banking
career about 27 years ago. He served,
successfully. with the West End Ma
tional Bank. Citizens National and
with the Commercial National From
the Commercial he joined the forces
OF the Merchants
Mr.. Ghiselli is member of the
Racquet Club, Cosmopolitan Club of
which he is treasurer, thirty-second
degree Scottish Rite Mason, treasurer
Of National Lodge IL, I. A. A. NJ, and
is also illustrio1s treasurer of Almas
Temple. He holds membership in the
Washington Board of Trade and Is
treasurer of the Italian-American
Masonic Club.
McFadden Explains Bill.
Chairman McFadden has succeeded
IN bringing his banking bill up for
consideration in the House. This
bill is considered by the bankers of
the country as the most important
piece of financial legislation since
the passage of the Federal Reserve
act 1t is also of vital interest to
Washingtonians, especially in view of
its branch bank passages, which
phase of finance has for many years
been blot on the local escutcheon.
In the course of his debate Mr.. Nc
Fadden said his bill had been before
Congress for nearly a year and dur
ing that time had been subjected to
the most searching analysis and criti-
cism Of any bill brought before the
House in recent years. The techni-
cal experts of the Office of the Con-
troller Of the Currency, as we'll as
lawyers for the national banks in
various parts of the country, had
gone over the bill section by section
and approved the form in which the
bill is drafted. In addition to this
Mr.. McFadden showed that the bank
ing policy of the bill had been ap-
proved by various organizations in
terested in financial legislation, in
cluding the two leading bodies in this
country of this character, namely, the
National Association of Credit Men
and the American Bankers Associa-
ton. These two associations, Mr. Nc
Fadden pointed out, are conserva-
tive and sound in all matters of bank
ing policy. They may be said to re-
fleet the sentiment of the entire
banking and credit machinery of the
country. In addition, Mr.. McFadden
pointed out that the bill had also
been approved and urged for passage
by numerous State bank associations
AS well as by the Controller of the
Currency, the Secretary of the Treas
ury and the Federal Reserve Board.
Discusses Branch Banking.
Mr.. McFadden devoted considerable
time in his speech to the question OF
branch banking, these being the pro-
visions of the bill in which the public
is more largely interested. He pointed
out there were two extreme schools
of thought on branch banking, the one
which would prohibit branch banking
entirely and attempt by Federal leg
islation TO wipe out all existing
branches, both inside and outside of
city limits, and the other extreme
school, which would take away all re-
Str4Gtions upon Drancn Danklug and
permit the great banking institutions
Of the country TO have f-en hand IN
establishing branches throughout the
country through the aos0tptIOn OF
the small independent banks. He
pointed out that the bill rejected both
Of these extremes as being unwise
and impracticable and steered a mid
die course.
He said that since branch banking
has been recognized by the Federal
laws since 1865 and had BECOME estab
lished in certain sections Of the coun-
LPy under State laws as an integral
part of the nnancial machinery OF
those localities, IL would be disas-
trous to attempt by violence to up
roc
said that the bill recognized that
Statewide branch banking was a
danger to the Federal tteserve system
and to the existence of the small in
denendent hanke th~ouDhc~,t the
country and to that end it attempted
so lar as the FeueraI reserve system
and the national banking system are
concerned-to prevent the further
spread of Statewide branch banking.
This is done in the bill by prohibit
ing State member banks of the Fed
era1 Reserve system from establish
ing any more branches outside OF the
city limits in which the narArt h"rk
is located and also by preventing na-
tional banks IrOm eslaDusnIns any
such branches outside of city limits.
Bill Makes Distinction.
He said that the bill made a dis
tinction between branch banking
within the limits of the city Of the
parent bank and the establishp' n t
oy such bank of, branches in other
tOv
ment of Statewide branches involved
the principle of absenJee banking,
that is to say. the control over local
finance would be taken away from the
locality in which the branch'is located
and shifted to some great financial
center in a large city. In such a case