Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-04-30
BANKING AND'FARM
RELIEF DISCUSSED
Chamber of Commerce Dele
gates vitality Interested
in Two Subjects.
BY JOHN r. SINCLAIR.


The 5000 delegates to the National
Chamber of Commerce gathering here
this week seem to be centralizing their
interest on two subjects-banking and
farm relief.
OF course, there are many other sub
jects on the program, carrying the gen.
eral title of Whats Ahead for Bust
ness" but the vast majority Of dele
gates, no matter what subject is being
discussed, revert to one of these two
topics-or both of them.
To- trend in banking has a personal
appeal. Every delegate seems to have
definite ideas about it. This is in con-
trast to the rather vague and indefinite
opinions given out informally at last
years meeting.
I'm the final analysis bank is a
place where surplus funds are kept safe
and ready for immediate withdrawal"
said c. T. Jaffray president of the 500
Railroad and of the First Bank Stock
Corporation of Minneapolis. Branch
banking is coming, but until it is al
lowed by law group banking in the
Northwest will grow and develop.
II was inclined to believe that group
banking was mistake when 1t was be-
gun in our country 10 months ago, but
I have changed my mind. The North
west suffered 1850 bank failures, with
loss of $350,OoO,OOO in deposits in the
10-year period from 1920 to 1880, and
30 per cent of these deposits belonged
to the hard-pressed farmers. Conf
dence in the country bank was shaken.
Farm loans and exchange were taken
away from these banks. Balances were
kept large and country accommodations
dried up. What could happen? Just
one thing. The country bank could
make no money.
That's why two large organizations
in the Northwest entered the group
banking field-to protect the integrity
of the economic life of the country
continued Mr.. Jaffray. cit has proven
its worth. Confidence is increasing and
so are deposits. More local loans are
being made because the danger of runs
is eliminated when the larger groups
have taken control. I am sure we have
done what had to be done to meet the
situation"
America has tried four kinds of
banking-unit, chain, group and branch.
believe that branch banking is the best
of them ALL" said F. H. Fries, presi-
dent Wachovia Bank & Trust Co. of
winston Salem, N. C.
"I am opposed to chain banking, "
added Mr.. Fries, because the weakest
link can destroy the whole chain. In
group banking we see step forward be-
cause more than 81 per cent Of the
stock of each bank is held by the hold
ing company. If the holding company
is good and powerful and well managed,
group banking will work out. Not other
wise. At best, 1t is merely step above
unit banking, but one below branch
banking.
"Our bank began as unit bank, but
today we have branches throughout
North Carolina. We believe thoroughly
in branch banking. 1t will come, but
consideration must always be given dur
ing the changing process to the strong
unit bank. It will remain as long as 1t
gives the service required"
J.. w. Pole, controller of the currency,
says that banking cannot exist indie
pendent of business, because 1t Is a
servant Of business"
with the new trends toward larger
and larger units of business, the small
unit bank finds itself in many cases un'
able to cope with the expanding BUSH
ness of its customers.
So Mr.. Pole suggests thorough study
| by Congress with the idea of develop
| ing a satisfactory system OF branch
| banking within certain well defined eco
nomic units.
"The question which Congress is called
upon to consider is whether these large
city banks should not extend their
| operations into smaller cities and towns
| in order that such communities also may
have an adequate banking SYSTEM" says
Mr.. Pole.
These short statements from well
known banking leaders give good pic
of what is in the minds of the larger
business leaders throughout the coun-
! try. The change here suggested is a
yer. basic one and reaches down into
| the whole credit and business structure
Of the Nation.
| Copyright, 1890, by North American News
paper Alliance)