The Washington times., 1925-01-12
McFadden BIN Tomorrow

While indications are that the
McF'adden bank bill will pass the
House within the next few days,
despite the sentiment in the House
against branch banking, it il pre-.
dicted that when the bill gets TO
the Senate the measure il likely to
be modified. Fear Is also expressed
that when the bill gets to the
Senate, it being one of the meas
ures selected for consideration, be-
fore the end OF the session. THAT
enemies of the measure in the
upper house viii start a filibuster,
which will cause 1t to go over until
the next session.
Consideration of the bill in the
House viii be resumed tomorrow
and concluded with the probable
passage OF the bill on that day.
The desire is to put the national
banks in q position where they can
better compete with the State banks
through intractty branches. How
ever, a series OF amendments viii
first be presented which will be
aimed at branch banking in a num-
Der Of particulars. Some Of these
may be adopted only to be later
rejected when IL comes finally u
passing the bill. Votes favorable
to these amendments will be casf
by members desiring to keep their
records straight who will later
reverse themselves on the assump-
ton" that they cannot win their
uoifaf with respect to branch bank
ing, yet, desiring the enactment OF
other features Of the bill, and 50
have to take all or none.
When the House adjourned Sat
1lrday II had pending an amend
ment offered by Representative
SteagaIl of Alabama, the effect OF
which would be to compel state
banks taking advantage of proyis-
ions of the McFadden bill, having
previously established branches, to
consolidate with national banks, to
surrender such branches before
completing consolidation.
Representative Free RepJ OF
California, win offer an amend
ment to permit the retention by
hanks i'm one State of branches
located In other States held prior
to the passage of the bill. This
amendment would take care OF the
Bank of California, San Francisco,
which has branches in Washing
ton and Oregon.
According to Congressman A. I.
Goldsborough Dem.) OF Maryland,
the bill is fundamentally wrong in
principle. II adopted. he said, in
ten years branch banking will be
universal In the United States, and
instead Of as now, having one-third
of the financial resources OF the
United States in the hands or the
branch bank systems, there Will De
two-thirds under their control. He
charged that the bill will bring
the banking interests obtained con-
trdi Of the banks they would. get
control of the press and there would
result banking domination that only
a political revolution would over
throw.
Congressman Stevenson (Dem.l OF
South Carolina, prominent member
Of the committee, defended the bill
on the ground that the present syS-
tenn discriminates against the ra-
tional banks, declaring that IL the
State banks are given the privilege
OF establishing branches. the ma
tional banks should have equal
treatment.
The right of the Federal Reserve
Board to enforce regulations setting
forth conditions under which State
banks may enter the Federal Re-
serve system was attacked Oy COn'
gresham Loring Black, jr. Dem.),
of New York. He declared that Con-
gress should legislate conditions APP
plicable equally to national and
State banks. He discussed regu-
lation H of the Reserve Board.
adding that the board used its
authority to issue regulations to
supplement acts Of Congress. con-
tending that Congress should 90
further and itself set forth the
conditions under which State banks
may enter and hold membership in
the reserve system.
Congressman Morton D. Hull Of
Illinois discussed his proposed
amendments. which would limit
branch banking to those States
where such expansion is permitted
by State law. Congress, he Gaid
should retain the right to determine
how much further at some time in
the future it may be desirable tC
go toward authorizing national
banks to engage in the branch bank
ing business.