Evening star., 1937-06-24
BANKER OPPOSES
BRANCH SYSTEM
West Virginia Association
Chief Scores Pending
Bills in Congress.
BY EDWARD C. STONE.

outlined IN penang blllS before Con-
gress, according to an Associated Press
dispatch. Independent unit bank
ing is superior to branch banking as
now being advocated by very strong
forces" He added:
If branch banking once gets start
ed it will not be a great while spread
ing from coast to coast and from
border to border From the day it
is sanctioned by law our present sys-
tenn is doomed.
1T is strange that today our bank
Ing system, a system that has per-
formed an excellent service in the
development of this great Nation of
ours, is struggling to defend its place
in the present economic structure
I fully realize that change is
inevitable. Constructive change is
desira ble"
Government Competition Scored.
President Otey addressed the Joint
Convention of West Virginia and Vir-
einia State Bankers Associations,
which are also holding several sep
arate sessions. During his address
he asserted that certain governmental
policies have brought about a COM
plicated system of banking in the
United States. Loans are made avail
able by the various lending agencies
on long terms of repayment and at
very low rates Of interest.
The banks are expected to compete
with this system by loaning their
demand and time deposits on terms
and at rates comparable to those
made by the Government Banks
obviously are not prepared to meet
this new kind of competition, he said,
at the same time lauding the excel
lent lending service of the Recon-
struction Finance Corp. and the con-
troller OF the currency's Office.
He praised the management of the
Federal Deposit Insurance Corp. but
condemned the idea of insuring bank
deposits. 1T is an unsound banking
practice to require one bank to in
sure the deposits of another" he
said. After making an attack on the
postal savings system as a real COM
petltor of the banks he sounded an
optimistic note by stating that there
had been no bank failures in West
Virginia since January l, 1884, and
there has been general increase in
business and in property values.
Virginia Savings Increase.
The report of Col. J. Sinclair Brown,
Virginia vice president for the Amerl-
can Bankers Association, showed to-
DAY that 20 more members would
give Virginia an additional member
OF the A. B. A. Executive Council.
Col. Browns figures showed Vir-
ginla's membership average in the
national association was now 74.4 per
cent-above the national average.
Members Of the Virginia Bankers
Association received two pieces of
encouraging news today: /. Fewer
hold-up and burglary attempts 2. A
considerable increase" in savings de-
posits.
Our records said the Committee
on Bank Protection and Insurance.
snow one attempt at burglary, one
burglary with only a small loss and
two hold-ups in southern Virginia.
with losses amounting to $780," dur
ang the last II months.
More widespread emplovnent
somewhat higher wages and greater
commence in banks in general, said
BENJAMIN T. Kinsey, are responsible
1or increased savings accounts. He
predicted another substantial in
crease this year.
Tax Equalization Urged.
j. ~ Tucker, attorney for the Vir-
gina Bankers Association, declared
In his report, submitted to the con-
Ventlon today that future legal con-
cepts will be largely shaped by social
and economic policy"
The association heard committee
reports expressing opposition to the
McAdoo bill to permit interstate
pranch banking and recommendations
Tor the equalization of taxes on hank
property as compared with other real
estate.
The Agriculture Committee said it's
berries OF banker-farmer meetings held
during the year were so successful
enat 1t hoped the incoming Executive
Councu would increase the appropria-
tlon Tor the committee in order that
ene meetings might be continued as
annual affairs
Woman Heads d. C. Bank Groun
Mls. Helen r. Sharpe, Bank of
commerce & Savings, was elected
chairman OF the safe deposit section
OF the District Bankers Association At
tne annual election last evening in
she board room Of the American Sc
curlty & Trust Co. She has been
wee chairman during the past wear
end Is the first woman to held such
an office in the bankers association
p. c. Brady, American Security &
Trust Co., was elected vice chairman
Ind T. Eugene Elgin, City Bank, sec
setary. Elected to the Executive
Council were Charles w. Haan. Union
Trust Co.; Mr.. Brady, Mrs. Sharpe.
MY. Elgln and Charles K. West of
the Security Savings g. Commercial
Bank.
ID. c. Insurance Sales Gain.
Aggregate sales of new life insur-
Ance IN washington in May to-
tailed s6,o86,ooO, a rise of per cent
compared with the same month last
year, the Sales Research Bureau.
Hartford, reported today. For the
first five months Of 1897 sales in the
District of Columbia were 13 per
cent better than in the same period
In 1886.
Maryland sales were up II per cent
bn May and per cent In the five
months; North Carolina reported II
per cent pickup and per cent in the
Live months; Virginia sales were up %
per cent in May and 1s per cent in
the longer period, while West Virginia
reported gain of is per cent in May
and rise of per cent in the five
months.