Coulee City dispatch. [volume] (Coulee City, Wash.) 19??-19??, 1936-04-02
BANK cHARTERINe
POLICY REVIEWED
State Official Declares Correct
Principles in Licensing Banks
Are Essential for Sound
Banking Conditions

policy In chaFtering banks was d.:
cnssed by Carl K. WitLers. Commls
sionsr Of Banking and Insurance OF the
State q New Jersey before the Eastern
Conferences % Banking Service. held
here recently under the auspices Of the
Americas Bankers Association He de-
elsyed that few luestieea bearing on
the future stability and security Of our
hsnkins systems loom ~ more impor.
tant than that Of sound policy to be
rnrsued - the chartsrins OF banks"
Alludins - competitive policies of
both STATE aEe national banking au
thoritiss - charter the most banks in
the past. ke said that "t.is country was
ever.hanked. and that aside from any
other consideration. economic or other
Wiee. this eoaditioa vas brought about
largely throsgh sn unwise. unsafe and
unthinkins eharte. policy. alternating
between the state and national sys
TENS, which has marked and ham
pered banking progress in this country
since its very inception"
Political influences
He lseried political considerations
ID connection with the chartering Of
banks, eAyiaS: Political influence has
- 1ore place IN banking than 1t has
= the deliberations Of our highest
tsibunal-TAe Supreme Court o. the
U1ited States. Until this 10 recognized
md broaght iato being within both our
eeate and sational systems. We may
Aevsr feel safe against the shifting
saAes Of pelitical sxpedience."
A. 70 Tie element Of sometimes
ridiculous eenpetition heretofore ex
istins betweea the state snd national
systems" hs said that much may be
Ail b favor q the progress made In
eocent years. In many states there ex.
iets practical working agreement be.
tween local supervising authorities
~ the federal authorities. whereby
- charter applications are mutually
eoasidered o. Q basis of community
oeed rather than competitive advan
oASe - between systems. In some
states this arrangement goes even fur
der ID the refusal Of the one authority
- ovea consider charter while pend.
ias with the other. he declared.
Aside from the competitive and pc.
ne3eai aspects Of our future charter
oolicy. he continued. there are several
ee1ers more individual and local which
merit consideration. Ancng these he
0sntioned honesty Of purpose. com.
Aanity need. the character OF manage.
nsnt and adequacy of capital.
HOST state laws make reference to
~ Character. responsibility and fit.
asss" q the incorporators Of . new
oaak. - said. continuing:
$50 Important do conceive this fac
~ 70 b. that place II 6rst among
tAoss for consideration. for unless the
motive u sound, honest and sincere,
there II little likelihood that the result.
ant institution in it, service to the
community will reflect other than the
spirit OF its founders.
The Lessons Of the Past
Too often in the past have charters
been granted to promoters pure and
oample-not always pure. and by no
means simple. The country was dotted
with such The experience has been
costly and. 1t il to be hoped. the lesson
well learned, not only by chartergrant-
Ing authorities. but the public
Other factors to be considered as
among the most important in granting
new bank charters. he said. are the
number of institutions already serving
the area. the record of earnings of ex
listing institutions. tie number of fail.
ures since 1920. and the reasons there.
for. public convenience and advantage,
the teasonable prospects for growth
of the community. expectation of prof.
liable operation and whether branch
bank could serve as we'll.
Sound public policy demands that
no new banks be chartered unless
there is definite. necessitous and
permanent need" he declared. Sound
mergerS consultations and the ae-.