The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-12-11
MORE FREEDOM
FOR NATIONAL
BANKSURGED
Increasing Exodus From Ma.
tional System Cited by
Currency Comptroller
FEWER FAILURES IN 1925
Economic Conditions I'm.
proved-Many Failures in
Over-banked Areas

Washington. Dec. 1l.-[P)-Nationa
banks throughout the country are
feeling more and more the restriction
laid around them by federal statutes
and greater freedom from them was
described as imperative in the annual
report of j. w. Mcintosh, comptl oller
of the currency, made public today.
The comptroller cited detailed statis-
tics to show an increasing exodus
from the national banking system
and he predicted it could continue
until the national banking laws are
amended.
To accomplish the needed relief,
Mr.. Mcintosh strongly urged enact
ment of the McFadden bill. a measure
which was passed by the house last
congress, but was never reached by
the senate.
1T is a we'll known fact" the re-
ported added. that many national
banks are anxiOusly awaiting enact
ment of such a bill as that which fail
ed at the last session of congress. If
they cannot at this time obtain some
such amendments to their charter
|, powers as are therein proposed, there
will be Il still greater exodus from
the national system
Mr.. Mcintosh said that although
the resources of the national banks
had steadily increased and the con-
dition Of the individual banks remain
ed strong, the relative increase new
ertheless in the total resources of the
national institutions has been slowly
falling Off as compared with the re-
sources of state banks and trust COM
panies.
Resources on Decrease
He mentioned that during the forty
year period ending with July |, 1924,
; the total resources Of national banks
had fallen from IS per cent of the
total banking resources of the coun-
l8 months. he said, had witnessed a
! further shrinkage in the proportion
Of the total resources held by the ma
tional banks.
"These facts present'a serious sit
, uation for the consideration of the
congress-" the comptroller said. "and
am directing attention thereto at
this time chiefly for the purpose of
showing that the adverse conditions
of national bank operations
are becoming daily accentuatcd."
Fewer Failures
Notwithstanding the keen compe-
tition put forth by institutions oper-
ating under the more liberal provi-
sions Of the state laws. there were
fewer national bank failures during
the IL months ended October 81, last,
Mr.. Mcintosh called attention, how
ever, to what he described as an
over-banked condition in many sec
1pt u
less a large portion of the failures
attributable to economic conditions
which the comptroller described as
generally much improved.
During the year mentioned, SO ma
tional banks became insolvent as COM
pared with 1873 national banks for the
preceding year.
A large majority Of the failures
were small banks, the report said.
Seventy-one of the insolvent banks
were located west of the Mississippi
river. 81 of which were in the grain
country north of Kansas and 20 in
the cattle country of the southwest.
Result of Too Many Banks
"While unfavorable conditions have
contributed in a large measure to
the closing Of number of these
banks" the report continued, "still
it must be borne in mind that the
greatest number of failures occurred
where the territories had too many
banks per capita and where too many
banks charters were issued during
the boom period of the war and i'm
mediately after peace was declared.
Not only was there insufficient busi-
ness for the support Of these banks
but their organization resulted in
hazardous and unwarranted competi-
tion."