Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-02-27
CHAIN BANK PLAN
DEBATE IS REVIVED
Controller Poles Statements
Reopen Discussion of Capt.
tai REIMBURSEMENT.
BY CHARLES F. sPEARE.

Special Dispatch to The Star.
NEW YORK, February 27.--Atten-
ton has been again drawn to the ques-
tons of branch banking and chain
banking by statements made before the
House banking and currency commit
tee by Controller Pole and by reports
that the Marine Midland Corporation is
negotiating for the purchase of trust
company in New York City to round
out the banking chain which it put to-
gether last Summer.
Controller Pole has been a strong adj
vocate of branch banking His remarks
before the San Francisco convention OF
the American Bankers Association last
October formed the basis on which dis
cuSsion of this subject became active
at that time At the convention there
was also a strong element which pre-
scented the case for chain banking. With
the break in the stock market that
started a few weeks later. bankers had
all of their time taken up by straight
ening out the tangles that developed
from the November panic.
Controllers Position.
Controller Pole draws an attractive
picture for branch banking, and par
ticularly as it enlarges the field of the
commercial banks in centerS outside OF
New York. He visions the day when
there will be such a concentration of
capital in Detroit, Cleveland, Boston,
Atlanta, New Orleans, st. Louis, Buff
falo. Minneapolis and other cities that
they will be able to meet all OF their
local banking requirements without be-
ing dependent to the present extent on
New York and Chicago.
This would be the second step In
the banking development In the United
states toward local autonomy, the first
of which came when Chicago began
to take care of her local requirements
In the way Of commercial credits and
financing issues Of securities. A bank
ing consolidation on the Pacific Coast
created resources of SUFFICIENT size to
make San FRANCISCO and Los Angeles
institutions to a considerable degree
independent of their Eastern CORE
spondents.
The chain banking movement devel-
oped rapidly during the first nine
months of 1929. 1t was to some extent
complementary to that Of the forma-
ton of investment trusts and trading
corporations. 1t was going at a rapid
pace and causing much anxiety among
small independent bankers when 1t was
checked by the break in securities.
Revival OF movement seen.
There are indications now that a
revival of the movement is taking place,
its strongest advocates believe This Is
indicated in the negotiations between
the Marine Midland Corporation and
those in control of a New York insti-
tuition, which would complete the pro-
gram. This had always included con-
troll Of a bank in the Metropolitan area
as the directing center for activities OF
the II units in the Marine Midland
chain.
It is understood that one of the large
groups of investment trusts, which has
already put considerable capital in the
stocks of insurance companies, is con-
sidering a substantial investment in
chain banks and in this way carrying
out its policy of diversification in each
one Of the branches of business to
which il makes a commitment.
Copyright, 1900