The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-03-27


The subject of branch banking Is
mo comprehensive and has so many
qualifications, that q technical dis
cussion is out Of the question. How
ever: the opinions and views OF
some who are familiar with the
subject from both the angle OF the
larger banking institutions and the
smaller local, or community banks,
are of interest. Upon. the subject OF
branch banks in general, Colonel
Robert N. Harper, president OF the
District National Bank, said today:
Colonel Harper's View.
The branch bank Is a natural
development Of the time. 1t - as
natural in its development az was
the coming into being OF the gaso'
line filling stations and the auto
mobile repair garages that followed
the advent Of motor vehicles. In
fact. the branch bank may be put
In the same category OF service as
the filling station and the repair
shop. The branch bank 10 to those
who make use Of banking facilities
Just what the filing station .ie to
the user Of the automobile. It has
come into being to meet a public
demand and to render a public
service, above all, to relieve con
gestion in the crowded business sec
lions of larger cities where traffic
y. already severely handicapped. To
relieve congestion and to render
quicker service, the automobile in
dustry flung its filling stations and
its repair shops in wide skirmish
tine that lis constantly advancing
from the centers Of business and
congested population into the more
thinIy settled districts.
sHThis was not done for the bene-
lit OF the automobile industry or
the oil industry; either one could
have had the same amount Of bust
ness had the stations and shops re-
manned centralized in congested
areas. The public, not the oil and
auto trade. are the sufferers from
crowded central stations"
The problem OF the filling sta.
ton and the repair garage was
solved because OF the necessity OF
providing service, by taking service
to the public where the public could
most conveniently make use Of 1t.
The banking problem Is now being
met in the same way In the larger
cities by means Of the branch banks
wherein the Banking public. has
the advantages Of the service OF the
larger and more powerful banking,
Institutions and can, at the same
time, avoid the delay and discom-
fort consequent upon invading the
almost .impa ssable, ciuttcrcd bust.
ness streets devoid, OF parking
space"
The branch bank was bound to
come and It has the advantage Of
leading up to the parent institution,
to the board Of directors of the
main bank. to the wisdom Of their
experience and the financial strength
Of the major institution. Til q
branches are maintained, not for
the benefit Of the larger banks. but
Tor the benefit and convenience OF
the customers Of these banks and
In answer to e. demand az strong
and as insistant. as was the demand
for the automobile filling station
and the outlying garage.
How Federal Reserve Works
zone danger in the centraliza-
ton Of banking power in the hands
tfpne Is that they might, through
their influence, break smaller
banks. destroy competition and
cripple business. Another danger
Hes in the condition which might
occur II the parent bank is not
strong and we'll managed. But.
the same is true with equal force
u the case OF the smaller bank.
One OF the strongest features of the
Federal Reserve system IL that il
has. twelve powerful regional banks
instead Of one. The obvious All
vantage in this lies in the fact that
the financial pulse does not always
beat the same in different sections
ana the several Federal Reserve
Banks are able to meet Conditions
as they arise in their districts.
The branch bank has come. and
u has come to stay. regardless of
all argument against It. Branch
banking properly distributed and
well managed is just as necessary
as are the twelve strong regional
banks which are the foundation of
the Federal reserve system"
That the community bank serves
4 very definite purpose and that
1t Is OF equal. If not greater. i'm.
portance to sections wherein its
service is provided than il the
branch bank Is the opinion ex.
pressed by Ezra Gould. president
OF the Washington Mechanics Saw.