Evening star., 1925-09-10
BANKERS BOOST
M'FADDEN BILL
National Bank Heads Urge
Adoption of Measure in
Form 1t Passed House.
BY CHAS. p. SHAEFFER.

B1 IH.AS. i. SHAEFFER.
Augmented by H. H. Mckee, chair
man of the local bankers committee
on law and legislation, and by Robert
\. Harper. group of 25 national
bankers. representing every section Of
the United States, called upon the
controller of the currency yesterday
afternoon and urged that he recon-
mend to Congress the enactment of
the McFadden banking bill in the
form in which il passed the House
at the last session of Congress.
The revised measure. as passed by
the lower body of Congress, effects
compromise between the extrem-
lists and maintains the status Of
branch banking within municipal
limits in States where branch bank
ing is allowed, but prohibits any
member bank from establishing
branches outside of it's home city.
Thus National and State banks may
work on q basis of equality. so far
as functions and privileges are con
cerned, under respective statutes.
Provisions on Branches.
As the measure passed the House
1t will continue the privilege of mem
Der State banks. as we'll as trust
companies, TO operate branches within
local limits in States which now per-
adopted in the House forbids branch
banks in cities having a population
of less than 25 900.
Where State banks or trust com
panies conduct statewide branch sys-
TENS, as in California, and wish to re-
tain membership in the Federal Re
serve system they are prohibited from
establishing any additional outside
branches after passage Of the act, but
are permitted to retain such branches
IS exist upon enactment of the meas
ure. Furthermore. the bill prohibits
the establishment of national bank
branches in States that now do not
approve the practice and denies State
banks membership in the Federal Re
serve system in the event they desire
TO operate branches under enabling
State legislation passed after the Fed
eral enactment, until national institu-
uons obtain branch authority from
Congress.
Other Vital Points.
Other provisions of the measure as
retained after passage by the House,
were changes clarifying section Il as
to dlscounting member bank notes,
drafts or bills of exchange of any one
borrower; striking out the section
which made certain crimes against
banks punishable under Federal stat
utes as creating double penalty, and
changing the succession Of charter
powers of national banks from %
years TO indeterminate succession.
Among other important features of
the bill are those which permit great
er latitude in increasing the period Of
real estate loans from one 10 five
years. facilitating consolidation under
Federal charter: capitalization Of
banks in suburban districts al 500
900; valuation Of stock dividend decla-
rations: legaliZarion of office of the
chairman of the board. extension of
loan limit and the authority TO en-
gage in safe deposit business.
Railway Common TumbleS
crash Of miniature proportions
visited the Washington Stock ES
change this morning when RAILWAY
common sold off o. points. in one
abrupt drop. 10 l65. Only % shares
were sold. 1t might well be said the
tumble was expected. and has been
for weeks, basinG The statement on
every conceivable factor relevant 70
the sensational level the issue has at
tanned.
Preferred stock of the railway com
pany also sold off TO sos on sales Of
u shares. Traction was firm on an
odd lot sale of Two shares at par and
a half. while Riggs Bank was strong
at $50. National Mortgage and In
vestment preferred vas unchanged
at ga
Bonds were listless.
Starts Vacation Club.
The Citizens Savings Bank this
morning announced the adoption Of 4
vacation savings club, which opened
today.
The club will operate along similar
lines as q Christmas savings club. the
funds being accessible in 40 weeks,
with 3 per cent interest added if pay
ments have been made regularly.
There Will be five classes of accounts
Of popular sizes.
Riggs TO Fete Ball Club.
The Riggs National Bank Club will
fete its base ball team this evening
at the City Club at $50 o'clock.
The Riggs team recently acquired
highest honors in the Financial
League, ending the 12-team series in
a tie with W. 3. Hibbs & Co, the
latter team being defeated successive
ly in three game play
Bankers Return Home.
W. P Lipscomb, vice president of
the District National Bank, has re
turned TO the city after several weeks
spent at Bedford, Pa.
C. Bowie Chapman, resident partner
of Hartman & Co, has returned from
a six-week tour of Europe.
crAT DDTNnc cog mn