Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-10-02


San Francisco there would be knock
down and drag-out fight between those
bankers who still cling to the unit
banking system and the more agrees
sive ones who see nothing but branch
and chain line banking in the future.
1t looks like q charge Of the light
brigade-so far as the unit bankers
are concerned-veTy light indeed. Every
day since the convention opened the
opposition to branch and chain bank
ing seems to have been getting weaker
and weaker.
Opposes Chain Plan.
One banker expressed 1t this way:
Yes am in principle, opposed to
the chain and branch idea. Has not
America grown great because her re-
sources have been developed by men
who are not afraid to take a chance?
American banker = he loaned his de-
posits freely, sometimes without any
collateral, oftentimes taking risks that
in city banks would have been refused.
But he has seen whole communities
grow UP under his guiding hand. I
suppose you would not consider 1t good
banking today. But communities -
many Of them-were built up by such
bankers loaning money to newcomers
to join In making a fight for the reten-
ton Of unit banking in the United
States. But I have. learned since ar
irving here that it Is a hopeless fight
The movement for branch or chain
banking has gone so far nothing can
stop 1t. We are In q new era and must
recognize 1t. That's why am throw
ing my hands in the air. It may be
that I will be back at the convention
- nha{ IN
instead of my own individual bank as
/ do today"
Discussion Today.
This banker about tells the story. He
is in receptive mood. Hundreds Of
them are in. the same attitude toward
the larger chain and branch movement
How can any one join in fight under
such conditions?
Today will be given over to a discus
! sion of the merits and dement's Of
branch banking and chain banking. A
champion of the individual bank unit,
too, will be on the program. But 1t Is
now almost foregone conclusion that
this convention will not 60 on record
as 1t has several times in the past
against both chain and branch banking
That day is over.
While this is being written negotia-
one of the largest, II not the largest.
banking organizations yet organized in
the United States. 1t is expected to be
national in scope and to have control Of
banks in scores of cities throughout the
United States.
II think it can be said that the only
reason why chain banking has devel-
oped is because branch banking Is pro-
hibited in nearly every State IN the
Union" said one of the leading New
York bankers to me today. Once leg
islation is enacted granting banks privi-
lege of having branches throughout a
wide area, in my judgment, most of the
chain line banking organizations will
convert their system into a branch
banking system. 1t is a perfectly log
ical step"
It looks now as though the year 1921,
when the number of individual banking
institutions in the United States reach
ed 30,8l2, will never again be equaled
to 1928, 5000 banks closed their doors.
This was equal to 1866 per cent Of the
total number of banks in existence In
1920.
More than q thousand mergers have
occurred during the present year. THESE
took place in the larger cities. More
over this next year should see an even
greater number.
within five years, banking in the
United States will be under the control
of less than ten powerful groups, was
the comment of one Chicago banker to
me today.
At the present rate Of development,
| it shouldn't take that long.
LonsdaIe's Story.
The story of John G. Lonsdale, who
| became president of the American
Bankers Association yesterday, Is just
another one of the poor boy who has
had to fight his way to the top.
Both his parents were taken from
| him when he was seven. Yellow fever
! was the cause. He was raised by
| relative, had little schooling, became a
real estate clerk in Hot Springs, Ark,
but his mind was an active one. He
believed that railroad between Hot
Springs and Little Rock was needed.
So at 20 years of age he raised the
necessary capital and completed It, :,
Another need Immediately presented
itself, The Hot Springs visitors, being
| largely people of wealth, were not able
to keep in touch with the financial
| world because there was no telegraph
| line direct to New York. He opened
one. 1t was a success from the start
| In fact, he moved ahead so rapidly that
Logan and Bryan OF New YORK, asked
| him to become a New York partner. BY
| the time he was IS his earnings were re-
ported to have been considerably over
| 100000 year.
| But New York did no tappeal to him:
The presidency of the National Bank OF
| Commerce of st. Louis was offered TO
him. He accepted, built it up and re-
| Gently merged it with the Mercantile.
Now he is president of the Mercantile
| Commerce Bank Trust Co., one Of the
largest in the Middle West.
A survey of the men, who have been
given the highest honor, which the
American banking world can bestow,
| the presidency of the American
Bankers Association, reveals the fact
| that every one of the last eight presi-
| dents began life as q poor boy-most
! of them had little schooling. None OF
them ever expressed himself as dis
satisfied because he had to 60 to work
early. Several of them were left
orphans at an early age.
| tCopyrtght, 1929, by North American News
| paper Alliance)
STEEL OUTPUT SMALLER.
| Nyrr1ry vNpY Nctohar q Pn-The