The McDowell times. [volume] (Keystone, W. Va.) 1904-1941, 1936-03-13
BANK CNaR7ER!NC
POLICY REVIEWED
Sta.c Q".cial Declares Correct
Principles IN L:;en,ing Banks
Ere Essertial for Sound
Ean!cing Conditions

PHILADELPHIA. Sound public
policy In charterins banks was dis
cussed by Carl *. Wiihers. Commits
s.oner or Banking and Insurance OF the
Stale az New Jersey before the Eastern
Conference on Banking Service. held
mere recently under the auspices OF tho
American Bankers Association. lie dc
CARED that Few questions Dearin. on
the future stability and security oil oui
banking systems loom as more impor
tant than thai or a sound policy To b"
pursued In the chur,erins OF banks.
Alludlne to competitive policies O
both state and national banking au
thOrities To charter the most banks In
the past. he said that This country was
over banked. and that aside from any
other consideration. economic or other
wise. This condition was brought aboul
largely through an unwise. unsafe ana
minimizing charter policy. alternating
between the stale and national sys
tens. which has marked aud ham
pered banking PROGRESS I'm this country
since its very inception"
Political Influence
lie dccried political considerations
in connection with the chartering OF
banks. saying: Political influence has
no more place I'm banking than it has
In the deliberations OF our highest
tribunal The Supreme Court Of the
United States. Until this is recognized
and brought into being within both our
state and national systems. we may
never feel safe against the shifting
sands Of political expedience."
AS TO the element OF sometimes
ridiculous competition heretofore ex-
islinc between the state and national
systems" he said that much may be
said ~ favor OF the progress made In
recent years. In many states there ex
lists practical working agreement be
tween focal supervising authorities
and the federal authorities. whereby
all rharicr applications are mutually
considered on atbasis OF community
need rdil.rr iha3 competitive advan
taae as between systems. I'm some
Sinies this arrangement goes even fur
thei IN the rciusl OF the one authority
10 even consider a charter while pend
ing with The Other. he declared.
Aside fran the competitive and DO
litical aspects oi cur future charter
policy. ne continued. there are several
others more individual and local which
merit consdcra; i"n. Among these he
mcn'ionrd honesty at purpose. com
nuniiy need. me character al manage
meni ard ad'vudvy at capital
Most STATE laws make reference to
the "ch"rac."r. responsibility and lit
ness Ui HE lncorpuratOrs OF q new
bank. he said. continuing:
81 Important do conceive this FAC
tor 10 be- that ! place ii first among
those iJi con ,idrIIIIla. for unless tn,
motive Is sbund. honest and sincere.
there /. hllic likelihood that the result,
ant Institution in its service lup III,
community Will reflect other than the
spirit OF is founders.
~ LES arI.s of the Past
Too often III The past have charters
been granted TO promoters pure and
simple not always pure. and by no
means simple The country was dotted
viii such. The experience has been
costly dIId. !, Is 10 be hoped. the lesson
well l2irned M; only by charter.grant.
me authorities. bat the public"
Other FACTORS To be considered as
anon" IN" most important in granting
new hlnn charters. he said. are the
Ii'"",' 81 IIsjilulluns already serving
iiir a'.'' a. !rruj OF earnings OF ex.