Evening star., 1926-05-23
BY 1. a. FLEMING.


discussed McFadden banking measure
has run the gauntlee of the House
and Senate and will soon pass on to
the tender mercies of conferees named
to bring about an agreement to com
pose differences.
Objects expected to be obtained
through the enactment Of this legis
lation are many sided. They are
Right of merging of national banks
without going around the bush Is I'm
possible, national banks may take
over real estate for a limited time,
if necessary to protect from loss, but
otherwise are limited to requirements
Of business.
Branch banking is another feature
of the bill state banks in many
States were fully authorized to op-
crate branches, thus operating against
fair connection on the part OF the
49, io::-c;iS.
Representative Hull of Illinois. rep
resenting a Chicago district. intro
duced a number of amendments to the
measure which the House passed.
The Senate promptly eliminated them
and shows a determination TO Keep
hem out, while certain important
members of the lower body are heh'-
ing hard to retain them.
Deep DlSdpIOiItuIohe A~s'
n will be a deep disappointment
IN MANY banks in the Federal re
serve system if the Hull amendments
are retained in the bill, but SO grea,
are the privileges offered to natlonal
han,,s removing several of the hanoi-
cans nnder which they have laoored'
tbn+ the fraternity is willing 20 ac-
cant tho House measure, Hull amend
ments and all.
,,,r+ no deadlock in conference. II
,,.n,,id kin action at this session OF
tonrress and make Its ultimate pass
200 much harder, while the deep as
annointment of bankers mign! Jar 'Ao
Federal Reserve System ltsen.
The District Of COLUMBIA panS t.ena,
fraternity, that Is the na'.u &c,
bankers. want quick actloI "a" an.
yestment in earnest, loan eaVi'e0
posits on real estate. ,,o..d
Branch banking here IS reguiaeeu
Under the Millspaugh act by the coh.
,roller Of the currency-ne pelile 'ne
sole Judge in the matter.
Tor Ave wears the national BANKS
have been knocking at the doors ol
congress asking for relief from tle
narrow restrictions OF the natloHal
hank act, passed more than oo yeas
ago. when the population OF tne couu
trv was less than one-tnlro oI wi"'
II is today and before our great IN
s,st.;oI and commercial development
u.h,ch has marked our economic
nrogress for the past so years hao
begun. .a.a
The Sixty.eighth Congress heedeo
the request of the national banks ana
last wear, during the second session
Of that Congress the McFadden Dill
vas nassed by the House OF Repre-
sen+atiyes by a large majority WITH
ont a. record vote, reported favorapiy
bv the Senate banking and currency
com mmittee. but failed of passage IN
the Senate, due to the congestlon OF
LEGISLATION in that body during the
cloS,np days of Congress. which ex-
nred by limitation March 4, 1S2o.
Will Accept Measure.
National banks are satisfied with
the bill as it was passed by the House
and thew are willing to accept the
amendments made by the senate.
They hope that when the conference
committee meets to adjust the diner.
ances between the two branches OF
Congress caused by the amendments
inserted in the bill by the Senate that
the two bodies of Congress Will ac-
cent any compromise suggested by
the conference committee ana speeoiiy
enact the bill into law.
The McFadden bill has been called
erroneously "a branch banking Dill,
because that feature OF the proposed
legislation has caused a greater
amount Of discussion In both branches
of Congress than any other part OF
the bill. and one of the branch bank
ing provisions stands today as the
most vital and important difference
between the House and the Senate.
The bill as 1t passed the House
would permit national banks and State
banks that are members of the Fed
eral Reserve System to have branches
within the corporate limits OF the
cities in which they are located, sub
iect, however, to the approval OF the
controller of the currency. Banks
in cities with a population of from
$4,000 to $4,000 may have one branch.
Banks in cities with a population OF
from 50,000 to 100000 may have two
branches, and banks in cities with
a population of over 100, 900 may have
an unlimited number of branches, pro-
vided, however, that the laws of the
States in which the banks that desire
to have branches are located author
ize branch banking at the time of the
approval of the McFadden bill.
This last limitation, lat the time
Of the approval af the McFadden
BILL" constitutes the greatest differ
ence between the Senate and the
House with respect to the subject Of
branch banking. This language Is
in the "Hull amendment" and if the
bill is enacted into law with that
amendment part Of it. national banks
and State bank members Of the Fed
eral Reserve System located in %
States that authorize branch banking
now would be permitted to have city
branches, but national banks and State