Evening star., 1934-06-27
CITES ADVANTAGE
OF BRANCH BANKS
Capt. Chester Wells Praises
Results Observed on Visit
to Australia.
BY HAROLD ROGERS.

BY HAROLD ROGERS.
Just returned from Australia,
where he reports that the common
wealth is pulling out of the depths of
bad depression without the loss of
dollar to any bank depoSltor
through a failed bank, Capt. Chester
Wells of this city. a director of the
Hamilton National Bank, today rec
commended that America would do
well to adopt more of a centralized
banking system, such as that used
by Great Britain generally through
out her empire.
Capt. Wells, who figured largely
in the financial situation here last
year in the reorganization of Wash
ing banks which did not reopen after
the Presidents banking holiday in
March, 1888, was much impressed
with the British system of successful
banking as demonstrated in Australia
They had a depression over there
which was worse than the one here
in the United States" said Capt.
Wells, but not a single bank failed.
In my opinion the ability of their
banks to stand the strain was due
to the fact that they have a power
ful centralized banking system, with
few large banks and many branches.
Points Also to Canada.
The same thing happened in
Great Britain and in Canada" he
continued, with the centralized
banking system holding up under the
economic strain of the worldwide
depression.
One of the greatest things any
administration here could do for
America would be to introduce sys-
TEN of q few large banks with
branches"
In Australia, he explained, there
apparently are two factors which
contribute to the success and strength
Of their centralized banking system
first, widespread and highly trained
management. and second. the ability
to make available money where and
when it is needed. throughout a wide
territory. Under this system. he eX-
planned, drought or flood in one part
of the country which would have
caused failure to a single bank in
that section, is not fatal to a branch
bank there, because, back of that
branch bank are the assets and facill-
ties of the far-flung branch bank
system of that particular great bank.
Australia is pulling out of the de-
preston to such an extent that it now
has started to reduce its taxes. Capt
Wells said
Budget is Balanced.
The country was greatly helped in
recovery by an increase in the price
Of wool, but helped itself by stringent
measures. radically reducing govern
ment expenditures and heavily in
creaslng taxes for while. This re-
suit of rigid economy and increased
revenue has been so successful that
now taxes are being reduced again.
The grit and determination with
which the people there faced their
situation" said Capt Wells, lis de-
serving of great credit. Markets still
are somewhat depressed. and there is
some unemployment there, but the
general situation is substantially
better"
Capt. Wells, retired naval officer,
was formerly director of the old
District National Bank, was chairman
of the Subscription Committee Of
the Hamilton National Bank, which
was formed from SIX other inStitu-
tons which were refused licenses to
reopen after the bank holiday. He is
president of the District of Columbia
Council, Boy Scouts of America.
As chairman of the Trust Commit
tee of the board of directors of the
Hamilton Bank. Capt. Wells. after
conference with bank officers, said he
was delighted with progress the bank
is making and the large increase in
deposits since his departure four
months ago Capt. Wells trip to
Australia was a combination of pleas
ure and business. Mrs Wells is an
Australian, and both Capt. and Mrs
Wells have many friends there.
Transit Net Climbs.
Although net operating income OF
Capital Transit Co. for the month Of
MAY showed a seasonal decline from
April. as had been expected. the con-
tinued good showing of earnings OF
the merged companies brings the
total net income to S582. 5l7.67 for
the first six months Of operation, in
Guiding last December.
Net operating income dropped from
S98.19823 in April to S92 ,404.66 in
May, according to the report filed
with the Public Utilities Commission
yesterday. May, however. was gain
no 10 of
Total gross revenue increased from
S727910 in April to S740,061 in May
Net income for the first five months
Of 1884 stood at S464. 2509.
Delegates Selected.
Delegates to the annual convention
of the United States Building and
Loan League from Washington were
selected yesterday at the regular
monthly meeting of the District of
Columbia league. The men who will
60 from here to the convention at
New Orleans, october 1925 were
named as follows:
c. J. Bergmann. Washington Per-
manent Building Association; Clin-
ton James Columbia Permanent
Building Association. Edward C..
Baltz, Perpetual Building Association,
and William S. Quinter of the Dis
trlct Building Association.
Alternates elected were Robert
Buckley, National Permanent Build
ing Association: Charles Schafer of
the Oriental Building Association. w
NJ. Payne. Eastern Building Assocla-
tIon, and George NJ. Emmerich of the
Northern Liberty Building Assocla-
ton.
Glass l railroads of the United
States on June l had POOL new
freight cars on order, according to
reports just received by the car serv-
ice division of the American Railway
Association. made public today. On
the same day last year, 1905 new
freight cars were on order and on
the same date two years ago, there
were 1884.