Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-10-06
DUAL BANK SYSTEM
!. is GIVEN SUPPORT
Executive of State Institution
Opposes Changes in Pres. /
emf Arrangement.
Special Dispatch TO The Star.

opcCldl DlSpbLCn 10 Inc star.
ATLANTIC CITY, October Cons
tinuation Of the present dual system Cd
banking, consisting Of State and Ma
tional institutions, was vigorously up.
held by M. Pin Beebe, bank examiner
OF Ipswich, S. Oak, in his address ad
president of the State Bank Division
Of the American Bankers Association
at the convention here. He declared
that this dual plan has worked oua
satisfactorily and as an economic me-
cessity has proved its value. He said
there is definite place for both typed
OF banking, and expressed the belief
that the States would continue to di j
rect their various systems despite argu
ments of advocates of single uniforn'
system under Federal supervision. HID
opposed especially the idea of making
changes in a period of abnormal timed
and said the test of time will tell
whether we should have a single Cd
dual system of banking.
Takes Issue With Pole.
Noting that the State banks hold sd
per cent of the banking resources of
the United States, Mr.. Beebe questioned
advocates of a single system Con1
troller of the Currency Pole, the oficia
spokesman Of the national SYSTEM. had
offered two reasons why that SYSTEM
should be supreme, he said. The first
vas that the commerce of the United
States being largely interstate, to bel
financed in an orderly manner, must
have uniform system of banking mn
Ger Federal supervision. While to tbs
ohc hi "a
sound, said Mr.. Beebe, a study of his
tory disproves its necessity. He del
clared that the very fact that we havd
no such uniformity may be one OF tho
great contributing factors to the rapid
rise in our commercial structure. Had
one central authority dictated thu
financial policies of our country sinc4
the enactment of the national bank act
! IN 1863 the history of a greater portion
of the United States might now 81
written in far more contracted formI
he declared.
OF the second reason advanced foH
the supremacy of the national systemj
that the Federal Government cannot
rely upon the voluntary cooperation,
of State banks and trust companies
for the execution of national polcyI
Mr.. Beebe said that no such imputa \
ton could be left on the doorstep Of
State chartered institutions as clasd
during the late war. He declared that
they went the limit He asserted
that, when our financial resources werd|
under such great stress, State-chartered
| institutions, with few minor exceptions
| met their full share Of their responsibility
tiles, as interpreted, not by the several
States, but by the Federal Reserve
system.
State Rights.
State rights are also end2 ngered bJ
the proposal, he declared, adding thai
each individual State has unques1
| tionably the fundamental right to con1
| troll it's own financial background With
| out undue interference. 1t is a right
| that should be jealousy guarded and
! should not be hampered with congress-
| sional authority.
"Our country is too large, distances
| too great and its interests too widely
! diversified to expect one banking SYST
| tenn to be so versatile as to handld
| the situation efficiently. With two SYST
TENS we have an excellent check on
| the matter of taxation. Further, twd
systems insure healthy competition
| and force each system to seek and EN- \
ploy the most efficient methods and
cost of operation. Moreover, 1t Is ID
| the interest of the United States Itself
that a banking monopoly should moi
be created"