Evening star., 1926-03-28
McFADDEN BILL LIKELY TO GET
EARLY CONSIDERATION In SENATE
Passed by House and Reported Friday by Committee
of Upper Body, 1t Soon Will Be Acted Upon
Amendments Effected.

|
| banks are now required to have
| 5000. 900 capital, may be organized
I hereafter with a capital of $1O0,O0O,
| provided the laws of the State IN
which such banks are domiciled per-
nit State banks to be organized with
a capital of $100,000 National banks
| will be permitted to issue their cap
| ital stock with par value or less
| than $100 a share, but directors
would be required to own the same
! amount of stock that they are re-
| quired to own under existing law.
If a national bank, located in any
| State which now forbids branch
| banking, has in operation one or
more branches that were legally ac-
| quired, any other national bank IN
| the same city may have CITY
| branches not exceeding the number
which such ma asonal bank has IN
| operation now. This provision was
| inserted to take care of a SITUATION
| in the State of Washington ana
another in the State of Wisconsin
where a national bank in each Stdle
acquired branches legally by virtue
of branch banking law that mas
since been repealed. If these hanks
are permitted to retain their
branches it is deemed only just that
other national banks in the same
city should have the same privilege
of establishing city branches.
1t is evident that the Senate COM
mittee believes that, subject to the
limitations imposed by State brancn
banking laws, national banks ana
State bank members of the Feoeral
Reserve system should have an op-
portunity to establish branches WIN
in the limits of the cities in which
tot in
service to their depositors. Whiie
the committee is opposed to the
principle OF Statewide branch bank
ing as being monopolistic in Its
tendency it recognizes that 1t is un-
wise to pass any law that Will de-
prive State bank members oil tne
Federal Reserve system or state
bank that desires to become q mem
ber hereafter of the right to retain
any Statewide branches which nave
been legally established according 10
law. and are in existence at the time
the McFadden bill is passed.
Federal Reserve Banks.
Another amendment inserted by
the Senate committee provides for
the rechartering of the Federal Re-
serve banks for an indeterminate
period. The friends of the Federal
Reserve system have been active for
some time in urging that the
charters of the Federal Reserve
banks be renewed now without walt
ing until they expire eight years
hence While bankers generally be-
lieve that the Federal Reserve banks
should be given an indeterminate
lease of life there is evidence that
the House of Representatives will
ha ~ A
ton to that end without further
examination of the operation of the
Federal Reserve system, so that II
the Senate adopts this amendment
to the bill it is bound to be one
of the points of disagreement be-
tween the two branches of Congress.
If all the amendments proposed by
the Senate committee are adopted by
the Senate the principal points OF diff
ference to be worked out by the con-
ference committee will be the so-called
Hull amendments, which limit branch
banking by national banks and State
bank members of the Federal reserve
system to what is known as branch
banking territory now: the question as
to whether national and State bank
members of the Federal reserve sys-
tenn shall be permitted 10 have
branches in territory contiguous to
the cities in which they are domiciled,
in other words whether they shall be
permitted to extend their branches
throughout what is known as the met
ropolitan or business area; and
whether State banks that are not now
members of the Federal reserve sys-
tenn shall be permitted to come into
the system hereafter and bring any
State wide branches they may have in
operation at the time the bill becomes
Il law.
Unlisted Securities Prices.
Following are the IBID" and asked"
prices of local unlisted securities, the
quotations being printed for the guild
ance of traders in these issues: