Vashon Island news-record. [volume] (Vashon, Wash.) 1919-1954, 1930-10-16
RADICAL CHANGES
TRANSFORM BANKING
National Commission Sees
Changing Opinion on Branch
Banking Issue--Studies Group
and Chain Banks.


NEW Modification Of the at
titude Of bankers on the long disputed
branch banking question is forecast in
review and report covering rapid
changes going on in banking issued
here by the Economic Policy Commits
sion Of the American Bankers Assoc
citation. The report however, after
referring to recent proposals that ma
tional banks be given branch banking
powers within the business territory
surrounding their location, declares
that I'VE do not believe that so-called
'trade.area' branch banking is likely
to gain the support of any large per-
centage Of the banking fraternity"
The commission says that the most
important development that has af-
fected American banking in recent
years involves the rapid growth Of
multiple banking organizations in the
form Of group, chain and branch bank
ing systems," and adds that 1--WE pre-.
sent this report as ar unprecedented
economic study and have no theories
or policies to urge at this time" The
statement says that the commissions
information indicates there are now
269 group or chain bank systems,
which control 1922 banks and s15,2s5,-
100000 in aggregate resources, and
that there are only six states and the
District of Columbia where it does not
find any group organizations.
The Commissions Investigation
1--WE have been In touch with the
managers Of many important bank
groups" the report says. aside from
the obvious economies Of centralized
operation and control a number Of
these organization heads very frankly
tell us that they do not feel that the
system has been in operation and
tested long enough to Justify them in
making positive or sweeping state
ments as to its advantages or disad-
vantages compared to unit banking.
1.-THE Banking and Currency Com
mittee of the House, which is con.
Quoting an investigation INTO banking
developments, has called number
of operating heads Of some Of the great
group systems. These mon declared
that they found, under certain condi-
lions, definite operating and economic
advantage in both group and branch
banking over independent unit bank
ing. Some thought group banking was
only transitional stage, that branch
banking was preferable and IL 1t were
permitted on an extensive enough
scale they would change their groups
over to branch systems. Others held
that group banking was preferable.
Some held that the ideal plan was
o combination of the two with group
bank units for localities strong enough
to support complete banking institu-
lions and with branch Offices extend
Ing further into the smaller places
requiring banking services but not
large enough to support complete
banks. Several Of these who advocated
multiple banking declared that never
theless they believed thoro would al
ways be room for vigorous indepen-
dent unit bank competitors. q
Government officials Express Views
1.-THE Comptroller Of tho Currency
recommended that national banks be
given branch banking powers within
.trade.areas.' The Governor Of the
Federal Reserve Board appeared to DO
in general agreement with the Comp.
troller. He said there were 24,645
banks and 3,547 branches, total Of
2S,192 banking Offices; that in this
total, $3.50 Offices were either branches
or bank members Of groups, or both,
leaving 21,s39 banking institutions
that might be definitely termed indie.
pendent unit banks. having no
branches and In no way connected