Evening star., 1939-08-08

ter, including the
Mr.. Gibbons. Offices and class
rooms, have been completely re-
furnished. The committee an
nounces it has extended an invita-
ton to visit the chapter rooms and
inspect the new headquarters on
the fourth floor of the American
Security and Trust Building
Members of the committee in ad-
dition to the chairman, are as fol-
lows: William A. Barnes, Security
Savings and Commercial Bank; E
B. Heilig, American Security ana
Trust Co.; Raymond H. McGivenn
National Savings and Trust Co.;
Thomas Page Nelson, Riggs Ma
tional Bank.
N. L. R. B. Takes Jurisdiction.
OF vital Importance to banks of
the country is the controversy pre-
cipitated by the decision of the Ma
tional Labor Relations Board, which
held that the national banking sys-
tenn is subject to jurisdiction of the
board
The Bank of America, defendant
in the case, which was ordered to re-
instate an employe it had dismissed,
announces it will appeal the case
to the Supreme Court if necessary.
This is the first instance, officials
of the N. L. R. B. explained today,
where this board has extended its
authority to cover banks
Opinion differs as to how far
reaching the decision may be, or
whether it will be sustained by the
courts. The conservative Wall Street
Journal. however, goes so far as
to predict that if the board is sue
cessful in the courts, the ruling
will not only bring all national
banks under the control of the
Labor Board and similar regulatory
agencies, but may also bring all
State banks under that jurisdiction.
IT, as the board contends, an insti-
tuition is made a part of interstate
commerce because it acts as a me-
dium of exchange for money and
credit, the application would be as
sound if applied to State banks as
to national banks"
Decision 13 Pages Long.
An important point in the decision
was interpreted to be the position
taken by the board that the bank
was not an instrumentality and
agency OF the United States Gov
ernment. On the other hand the
honl hoI pnrtnyoInI
it was such an instrument it was
not an employer within the meaning
of the Wagner Labor Relations Act.
The decision of the board in the
case is 13 pages long, single spaced,
as mimeographed by the board. 1t
goes somewhat comprehensively into
the boards description of a bank,
and its interstate commerce"
1T is matter of common knoWl-
edge" says the board, that the COM
mercial bank, of which the respond
ent is an outstanding example, is
the primary medium in the COM
mercial system of the United States
Tor the transfer of money credits
from one portion of the country to
another, and between the United
States and foreign countries. =
Commerce without payment for the
goods moved in commerce would i'm
medlately fail. The commercial bank
is the medium that supplies the
mechanism for making that pay
ment as well as the credit, in the
form Of loans to the purchaser,
that makes prompt payment pos
sible. ***
State Case Involves Bank.
THE credit system and the use
OF bank checks as a medium of eX-
change lie at the very base of our
economic life and are indispensable
to the continued flow of commerce
among the several States and with
foreign countries. Practically all
commercial banking activities arise
in connection with the buying and
selling of commodities and services.
Banking is the life blood of COM
merce and the cessation of banking
operations in this country as q re-
suit OF industrial strife would have
dire consequences on the flow of
SoAiiAAiSAS SC Vic several sOUdE6S
and with foreign countries"
A State case involving a bank is
that of the Bank of Yorktown.
which is before the New York State
Labor Board, for alleged violation
OF the States labor act, which is
somewhat similar to the Wagner
Labor Relations Act.
Affairs of the closed Park Savings
Bank were brought another step
toward a finish today as James C.
Wilkes, special master, began hear
1ngs on final details of court order
signed July 25. About S5OOOOO
pledged by directors of the bank be-
comes available for distribution, in
addition to remaining assets of the
institution in the hands of re-
ceiver.
Sales of two issues were reported
on the Washington exchange today
Five shares of Washington Gas
Light Co, preferred at lO71b were
bought, as were eight shares of
Riggs Bank common stock at 275
The Riggs rllrchase uoc y,odo of+ar