Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-05-25
SHR|NKAGE IN BANK
SYSTEM IS NOTED
Controller Pole Says National
Law Should Permit Branch
Activities.
BY JOHN r. SINCLAIR.

Mr.. Pole believes the national bank.
ing system Is I'm critical state" ana
says that the national banking act
should be changed to permit branch
banking within certain clearly denned
limits.
During the last eight years there
have been more than 5000 failures OF
unit banks in the United States. with
an agRregate total Of deposits OF 81 $780,
900 900, says the controller.
What is needed Is change in the
national banking act, which win allow
stronger and larger banking units:
There are about $4,000 State banks and
and only 1908 have become members OF
the Federal Reserve system. But ma
.ional banks are compelled to be men,
bers Of the system.
Then this statement "A state unit
bank outside Of the large States seems
to And no place IN the Federal Reserve
system"
made by any Governuent ofncer. recog-
Mining the definite trend toward larger
banking units. The bank stock holding
company, controlling many banks, has
appeared In many parts of the country
The last two years have seen amazing
growth along these lines.
From the holding company control
ing many different banks to system
Of branch banking Is but . short step
julius H. Barnes OF New York, for
merly Of Duluth, the former president
Of the United States Chamber Of Com.
merce, intimate friend of President
Hoover, Is one upon whose opinion the
President Ii relying very largely In the
matter Of farm relief.
1t must be admitted that the present
situation Is not an enviable one for a6s
ministration leaders. With wheat sell
Ing at around 81 . bushel at terminal
markets, and farmers receiving 90 to
IS cents. there is no question but that
wheat Is at the base Of the farm relief
program.
In economic matters Mr.. Barnes may
become the Col. House Of the Hoover
administration. For years he has cham.
pioned the theory that cheaper trans
portation charges are at the base Of i'm
proved agricultural conditions in the
srain-growing States. With this posi-
ton President Hoover has always shown
q very sympathetic interest.
II Is now well known that pressure
from the administration has resulted in
the Eastern railroads agreeing TO the
emergency rate reduction on Western
grain, and this In turn haA forced the
Western railroads to do the same. But
1t Is now known that the pressure for
the rate reductions conferred in Wash
ington.
Mr.. Barnes ID reported TO have sub
mitted o new farm relief program TO
the administration, but just what 1t
contains has not yet been made public.
The big three in Canadian banking
the Royal Bank OF Canada. the Bank
of Montreal and the. Canadian Bank OF
Commensurate fighting 1t out for hrst
place.
Montreal maintained first place In cap
ital assets and deposits. Three years
ago the Royal Bank moved ahead. and
today the paid-up capital OF the Royal
Bank Is $50, 900 900; the Bank Of Mon
treaJ s2ssle.70o, and the Canadian
Bank Of Commerce $2<,e23, 4ss.
Now comes the announcement that
the Canadian Bank Of Commerce. whose
headquarters are Toronto. has decided
100000 through an issue OF 4s,e4S
shares. which viii be allotted 70 share-
holders Of record on April 20 at 5000
per share.
since 1920 dividends have been paid
by the Canadian Bank Of Commerce ut
the rate Of IL per cent per annura, plus
q bonus OF per cent for each IL
The bank now operates ss7 branch
. third. 3el, are located IN the Province
Of Ontario.
Germany. the home of social insur-
ance. reports that at the end OF 1898
there were 3,S0o.0oo clerical workers
under the federal law making insurance
compulsory. Up TO last year only those
vxrkaA n
than 5000 marks about $1,000 per
year were legally compelled 10 become
Insured By the federal board for tnsur-
ance Of employees. but with the higher
cost Of living this limit has been ex-
tended TO include those receiving UP to
$500 marks (about 81 5000 per year.
The amount Of premiums paid In for
1927 to the federal board for the In
suranee Of employees was 2ss:ooe 600
600 900 marks last year.
The law provides that 50 per cent Of
the amount of the premiums turned In
shall be paid by employees and the other
50 by employers, but many employers
have been voluntarily payins the full
amount, without any deduction from
employees wages.
More money has been given to the
board than they have used, with the
result that the capital owned by them
increased from $4,000 900 marks at the
the end Of 1928. The excess Of total re-
ceipts over expenditures last year
amounted to 26e, ooo, 900 marks.
Who gets the benefit? It covers the
wide variety Of unemployment. The
board has paid pensions to disabled
and aged. generally people over as years
Of age, and to their widows and chill
dren, respectively. amounting TO io0,-
900, 900 marks last year. To cures for
sick members, total Of 100000 900
marks was spent.
Proper social insurance largely
eliminates fear In the minds Of workers.
Little has been accomplished so far In
the United States, but there Is moro
now than at any time In recent years.
Frederic z. Lee, American trade COM
missioner In London, reports that the
people Of Great Britain absorbed more
new capital issues in the first three
months ending March 81 than for any
quarter In the last 10 years The total
amount was above S555, o0o, 900, or more
than $4,000, 900 larger than for the
corresponding three months OF last
year, which, In turn. was the hrst time
exceeded ss4e,ooo,ooo in any frst
quarter
For what purpose were these issues
used? Briefly. 6oEa per cent OF the
total were used within the United
Kingdom itself India and Ceylon took
nearly S6o,oo0,o00. while other British
countries took almost 500 900 900. !
Foreign countries took nearly $50, o0o, 900.
Taking the year ending March al as