New Britain herald., 1930-06-14
It bank and any adjoining -y,
 Recalls Many Failures

Recalls Many Failures
 No less than 5,642 banks were closed in the years 1921 to 1929, in- elusive" he said. There were 349 failures during the first four months of this year, ending April 30, of which @ occurred in the month Of April This whole exhibit of failures is q disgrace to the country and certainly should not be permitted to continue if a remedy can be found, whether the remedy is popular or unpopular in the banking fraternity. It is something that business men should take more interest in than they have generally shown in the past"
 Pointing out that the problem is not acute in the northeastern states. including New England, the speaker indicated that in areas of diversified economic activity, where bank loans may be similarly diversified. banks are in a much stronger position than in strictly agricultural areas where proper diversihcation is less easily achieved.
 Southern Banks Fail
 q can see no reason why nation al banks and state banks which are members Of the federal reserve sys- tenn should not be allowed the same privileges with relation 10 branch banking that are allowed to state banks in the states where branch banking is permitted" Mir Platt de- clared at another point, Tt is ob- vious that the recent rapid develop ment Of branch banking such as ln he Carolinas has been chiefly due to economic causes. Many small banks have failed within the last five years, and the people have turn cd to branch banking as a remedy Why try to restrain such natura and necessary movement by law"
 Declaring that the general concep- ton of branch banking, as 2 reach ing out" of urban banks into rural areas, was not necessarily accurate inasmuch as a branch bank system could exist without any big city parent institution, Mir. PIatt quoted Comptroller Of the Currency Polo to the effect that to permit branch banking in trade areas would de Contralize credit.
 Tt would create banking institu- tons in what New York sometimes calls the hinterland large enough tc handle much Of the business now forced into New York because oul unit banks in g very great number Of places are too small to handle t.
 Banking Forced to Large Cities
 Tt does not seem 10 be clearly understood" the speaker asserted that the unit banking system, car, red 10 such an extreme as we have carried if in this country. forces banking business into the big cities md particularly into New York tha' could and should be done elsewhere end also fosters speculation b! forcing money into Wall street tt he loaned to brokers that might ire quently be loaned. if not at home at least to industries in the sam =tate Or in the same general neigh borhood."
 Citing recent hearings before th' banking and currency committee 0 the house Of representatives, MT Platt declared that group bankers from many areas stated that the! were able through their larger or eanizations to keep business a home which had before been forced to New York or Chicago. H. quoted one as saying that we art tired of having the COW fed in Min nasota and milked ln New York.
 After outlining the structure o the group banking systems Thicl have recently attracted public at tcntion. in which the stock Of mem ber banks is exchanged for stock o holding companies, MT. Platt as serted that this ,ystcm is rev anc IS certainly different from what ha! been known for many years a! chain banking" where one man O q group Of men have purchased fo cash the control of q number 0 banks.
 T agree with Comptroller Pole, he said, that this development 0 group banking should be checked b, by lar, unless something better cal ne substituted for it We pass tot many restrictive lays. What " want now IS something Construc tive"
 Size Is Fundamental
 The speaker quoted the head c the Northwest Bancorporatlon q saying. in a recent statement to th house banking and currency com mlttee. that whether you like if o rot. size is fundamental in man, lines Of business. T. certainly is Il the banking business
 There was more branch hankln' in the United States ion years ago in proportion 10 population an' banking resources. than there today" he asserted at another poin in his address. There has alUay . been some branch banking 1T tn national banking system The Git zens' National bank Of Newport, \ H, was gwen a certificate by th comptroller March = last for th operation Of a branch at Warner il an adjoining county. on the eroun, that the branch had been operate, for the past g5 years On April there were 2IG hanks in the Unite, States maintaining 570 hrancho outside so-called city limits. wlthou counting California. O. the bank maintaining outside branches 52 ar in New England. o2 in Maine. tn Maine hanks maintaining 5 ! branches The Maine law seems [ . me excellent and rha linn. 1t pro .yides would to sufficient ! think, i any eastern state. Tn wcster states where there ts much less al verslt7oation Of industries the limi