Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-06-05
FEAR OF MONOPOLY
in BANKING IS HIT.
Pole Favors Branch Exten-
Il SionS Into Rural Districts
( by Area Plan.
BY EDWARD C. STONE,
stan Correspondent of The Star.

&AO11E LILLE, N. ~, O.--JOnn w.
Pole, Controller of the Currency, de-
clared before the District of Columbia
Bankers Association here today that
1t Is inconceivable that the people of the
United States will ever permit monopo-
listic control in banking. He secuted
the often expressed fear that the bank
ing interest of the country may become
centered in a few strong hands, made a
strong plea for the expansion of branch
banking into rural communities, through
the trade area plan, and urged bankers
everywhere not to take too strong sides
In the branch-group-c hain-unit banking
controversy until Congress has COM
pleted its present sweeping investiga-
ton.
The twelfth annual convention of
the District Bankers Association was
opened at the Grove Park Inn here
today. President Wilmer j. Waller in
the chair. Following the presidents
opening address, greetings were pre-
sented from the American Bankers As
ISOLATION and Mayor Gallatin Roberts
of ASheville. The attendance smashed
all previous records.
Scouts MOnopoIistic Banking Fear.
The controllers address was consid-
cred one of the best he has ever made
since taking Office He said in part:
THE statement has been made that the
KTOWII1 Vi ldTRG BlGbIOkDOllbdI DdIlhS III
the commercial centers would develop
. a concentration of capital which might
prove inimical to the best interests of
the public and might, even lead to
monopolistic control. However it is my
view that the establishment of regional
branch banking in the United States,
within trade areas would decentraliZe
and would bring bank management
closer to the communities with which
they do business.
'Is see in the. future adoption of re-
gional branch banking only one type
of concentration and that is concen-
; tratfon of management. This should be
: disaSsociated from concentration of cap
1tal and concentration of power. In
order to serve the best interests of the
. public there must be sound, efficient and
, competent management.
Washington and Trade Areas.
"Let me attempt to give an illustra-
ton of the application of this princi-
pie of trade areas to the District. There
Is no State so small as the District OF
Columbia and the question of the trade
area of the City of Washington neces-
sarily brings up the question of crossing
over the District boundary line into
other States. shall not undertake at
this time to attempt to deliInit the trade
area Of the City Of Washington. AS a
starting point we would have to begin
with what might be called the metro
politan district of the city, which would
include the surrounding suburban areas
On Virginia and Maryland. This terri
eary has, understand, an estimated
stipulation Of around 100000 and within
. few years VIII no doubt approach q
million. All Of this territory is within
The trade area Of the City of washington
and the bulk Of its banking business
lows into Washington.
'Washington is not and probably
never viii be great industrial or COM
mercial center and its trade area is of q
different type from that of some cities
of the same size in other parts OF the
country. Its trade area does not extenc
I no far out into the outlying territory. Or
i the either hand, as the Capital OF the
8 Nation, 1t is fast becoming the mos
beautiful city in the world and its met
ropolitan area will no doubt IN the neal
future exceed a million IN population
Under any system of regional branch
banking therefore, Washington woulo
become an important banking center. :.
''The establishment of regional branch
banking Ia the United States would
not be followed by any sudden change
In our system Of banking. There are
many strong unit banks which would
continue to operate successfully for an
"The House committee on banking ans
currency has for several months beer
making an extensive study OF our bank
ing system with a view OF reaching some
I conclusions as to whether there shoulc
be ct this time a further extension o.
{ branch banking In the United states
The Senate committee on banking anc
currency has yet to begin It's STUDY
along similar lines.
an this connection it seems to mt
that IL beh0oveS affair minded stu
, dents of banking and finance and al
associations of bankers to avoid taking
a dogmatic position upon the questions
under investigation until. Congress has
had an opportunity to complete III
study"
Seeks Conventions for District.
President Waller, in his annual report
lauded the management of the country'
financial Institutions during the stool
market panic and praised the enective:
ness Of the Federal Reserve System II
that crisis. He noted. the unusual In
terest taken. in the District Bankers
Association during the past year as IN
dicated by the record attendance at tn
regular and special meetings. Mr.. Wal
Ter mentioned the great increase in tn
amount of work handled at association
headquarters and called particular at
tention to Albert S. Gatley's 25 years
splendid service as treasurer.
Every phase of the years work wa
touched upon, after which the rettrin
oHiciaI made four special recommends
tons. as. follows:
Much closer contact between the ON
GERS of the association and the thre
sections to the end that some associa
ton official should be at all sectfo
meetings.
Consideration Of an all-time manage
for the associations credit bureau i
order that all member banks may ge
still more. benefit from this source.
Adoption of the. bank collection cod
and support of the act ito limit the liza
bility Of bank or trust company in tn
District of Columbia for non-paymen
through error of check or other instru
ment drawn on or payable at the banl
or trust company .---. 1900
Extension of invitations to the Amer
lean Bankers Association and the Asso
citation Of Reserve City Bankers to hol'
their conventions in Washington II
1892 during the Bi-Centennial OF tn
birth of George Washington.
The auditors safe deposit and f1du
Charles sections, which we're organized
only last year, presented important re
ports. RAYMOND q. Marx. auditor OF tn