Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-01-06

and that hasty M
legislation should
be avoided His 3Aszszs-
views, as expressed Secretary Mellon.
in Trust Com
uanie3' Magazine. are of the greatest
Importance to the banking world, the
Treasury Secretary saying in part:
lin banking as in other enterprises
of this country, there is increasing evil
dence of a movement toward larger
operating units. The NUMBER OF
branches of banks in operation has in
creased and more recently there mas
been a growth also in the number OF
sroups in which several noepenuen y
T>nrks arc operated more or less as
SINCE sy tenn. Both Of these develop
irrnts reject changes in the underlying
economic situation.
Rapid Growth in Branches.
SIN juno. 1920 out of total of 8,7o7
member banks in the Federal Reserve
system, 354 we're operating 2,2sl
Branches. This represents an increase
of 1870 branches during the year. On
the same date 818 banks, including both
member and non-member, were oper-
ating a total of 2,440 branches, an m
crease of 210 for the year. The develop
r1rent of branch banking, which is per-
.nitted by existing legal arrangements,
MS 12C1lltdIeu llle dOdpboblOI Va
irg facilities to requirements OF uroan
areas.
More recently there has been rapid
increase in the organization of group
systems of banks. Such groups COM
DFiee one or more banks that are
brought under unified control and some
degree of centralized management
through acquisition by an Individual or
corporation of a controlling interest
in their stock issues. Although tech
nically each bank in a group is Sepa-
rate corporation operating with It's own
capital funds and under the direct SUI
rcrvision of local board OF directors.
s. certain degree of unity is achleVeo
for the group as whole.
:. Group Systems Also Expanding.
sat the end of June. 1929, it was
srthoritativeiy reported that there were
n existence at the time 230 group sys-
tens of banks in the United States,
which embraced about 1000 banks
Group banking is a means OF accom-:
plishing in a measure the objects of
more extensive branch banking systems
than are permitted under the Federal
Reserve act or under existing legal ar
rangements in most States. Although
banking groups may be expected in
most instances to strengthen the banks
which they control, the organization OF
such groups PLACES great Responsiveness
upon the controlling interests, and is OF
vital interest to State and national
supervisory agencies.
- Secretary Urges Moderation.
1."Our banking structure. the product
of many years of experience, is part OF
an intricate economic fabric whose
parts are closely adjusted to one an
ether and a too rapid reorganizatto ton
would be likely to create serious and
costly disturbances that would affect
the entire country.
The time has come when it would
seem to be wise to undertake thorough
STUDY of the situation with view to
determining the soundne5S OF the
present-day tendencies and more par
4feularly the limits of the economic
areas within which branch banking
may be advantsgeously permitted" says
Ar. Mellon.
Wholesale Trade Slumps.
Wholesale trade in the fifth Federal
r serve district was relatively poor in
November, according to the latest Bank
Of Richmond Review. A large proper
tton of the SO reporting firms in five
leading lines showed smaller sales than
an either October 1929 or November,
1923. Thu report adds:
- Part of the decrease in comparison
with October was seasonal, but the de-
Cline was greater this year than usual,
and the decline in comparison with
sales in November. 1928, reflected an
actual decrease in business done this
year. The November sales in dry goods
5nd hardware were particularly un-
favorable in comparison with sales in
Nov mber last year. In total sales since
January l. drugs is the only line which
shows an increase over SALES in the first
II months of 1923. and even in drugs
tho increase was less than ! per cent.
DRY goods shows the biggest decline for
the II months of this year, part of
which may be due to slightly lower
prices for some classes of textiles.
Stocks carried by the reporting firms
vwcra larger in groceries and drugs at
tho end of Novemb-r than a year
earlier but dry goods and shoe stocks
were smaller than on the earlier date.
Dr~ goods and drug stocks increased
during November, but grocery and shoe
Stocks deer ased in comparison with
ccks on hand On October 81, 1929"
Advertisers Select Louisville
!, Louisville has been selected as the
t1e50 convention CITY Of the Financial
sfG"crt.cer5' Accocjcticn. according 10
gi arncun cement made To-Day by A. E.
F-rgon Of Halsey. Stuart &, Co. presi-
don't OF the association. The conyen-
ticn viii be held on December II, l6
40 md CO.
The growing importance of the South
IL the financial field is reflected in the
feet that this is the second successive
tine the association is holding its con :
vention south of the Mason and Dixon
linz the 1929 convention having been
held in Atlanta.
Three bank stocks figured in tht
trading on the Washington Stock Elk.
change today Two small sales in Ma.
tional Capital at $50. There was q
10-share sale in Federal-American Ma.
tiCnal at 293 and another at 1872, while
10 shares of National Savings 81 Trus
sid at SIS, of points from the las
t"2nsfer.
rcoplea' Drug Stores preferred a
1882 end Potomac Electric Power 5
r. cent pretsTre6 at 1o55s. The res
OF the trading was in bends. with Wash
inCtcn Gas IS selling at 100 and 992,
and baby Gas 3 bonds bringing 102
Heard in Financial District.
Ic-al bankers attach very great inn
rc~tance to the outlook in the automo
bile industry as clue to the genera
business prospects for 1880. The open
ing OF the auto show in New York Il
drawing attention to the industry ant
the general trend will soon be more o.
less apparent.
The New York Life Insurance Co
Offices in this city are to be moved int,
the new Shoreham Building.
Henderson & Co, counselors on in
S2stments. are another business firm
taxing Offices in the same building
Manager William F. Crosby reports.
The annual meetings of the nationa
banks will take place next Tuesday
rcme of the trust companies holdin
similar meetings on the same date.
The local Ch~.~tDl7T savings clubs re