Show 0 Na National lonal Topics Interpreted by William Bruckart v- v Ii Although Washington t AlthOUgh n.-AlthOUgh Although the Roosevelt Roose- Roose velt emergency banking program was put forward Would End purely as a State Banks lion Hon for tor the crisis then upon the na on- nation tion It has hus since become apparent that It had a permanent phase that surely Is going to carry carryon on far Into the future in the shape of ot a bitter controversy There Is no longer long lung er cc any doubt that the emergency program was based on a plan for fora a unified bunking banking system for Cor the i country and that of ot course means ultimate death for the state banking banking bank bank- ing structure We Wc have long had a Ii national banking system made up of oC finan financial cial ciul Institutions that were chartered b by and under the control of ot the thc comptroller of the currency lu iu the treasury We also have ha had the state Institutions that were chartered by and under the control of state authorities and existing by hy virtue of oC state laws There has hus been a long Jong continuing effort to get them er but always s 's it has lias been becu futile be be- cause causo for the most must part the national na- na Honal bunking laws were more rigid and the prerequisites higher than the state banking bunking laws required I It Is Interesting therefore to note how the creation of the federal reserve resene reserve re re- serve sene system back In 1914 un made some Inroads Into the time state banking field by providing means whereby those banks could Join the national banks In the federal reserve system There remained advantages ad to the state banks however er am and one of the means used to offset some of those advantages was the passage e of the time called so-called McFadden act act- In 1927 1921 This allowed national banks to have ha branches within the city where their parent bank was lo lo- Various efforts have ha been made since that time to enlarge the branch banking privileges lIeges of the time national national na na- banks but hut to no avail There re privileges was an nn enlargement of those lieges In the bill h by Senator Glass GlassI of Virginia that was passed by the senate In the last congress although It died the death of a rag doll doH in inthe intile t tile the e house of Qt representatives Now comes the emergency bankIng bank bank- Ing Ins law however howe with provisions designed to solve e the time crisis In our country's financial structure but with some other sections furthering the Interests of ot the national banks The latter sections were completely overshadowed Most people paid little attention to them The Time main object of the legislation was to get et ett t the le banks open The bill was vas put through congress congress In the record speed of one da day and the stale state banking bank bank- Ing Interests hitherto on guard against as new encroachments were In Ina Ina ina a position where they could do noth noth- ing Actually the situation resulting from the passage sage of or the emer emergency ency law aside from the provisions for Cor making currency available a Is a tremendously tremendously tre- tre long step on the part of the federal government go toward squeezing out the state stute banks It hoes does so by making available many more advantages ad for the national banks and state stute banks bunks that are members of the federal reserve system Ss tem tein than they ever have had before a a a There are arc few officials or members members mem memo bers of congress who will admit that there Is a big bigFor bigFor For Unified drive on to Banking ng System pUsh plash a n great unified unified uni- uni fied fled banking ss tem tern Their silence however does not hot conceal the thc fact State bank bank- lug Ing representatives who flocked to Washington during the banking holiday holiday hol- hol Iday In order to protect themselves recognized It The They began fighting but It t was too late The law was passed Their claim was and still Is that the emergency ba larking banking act and the regulations Issued issued under it for or the reopening of or the banks beginning March 13 resulted in state banks being cast adrift They were given ghen mighty little consideration It looks like they will receive reCI less here here- after So Its It's the survival of the fittest for tor them This does not mean menn that the time state bank In your community Is going to die The flee scheme which Washington Washing ton tun observers believe they see and which the state bank claim has hns been worked out operates slowly It Is Intended to develop a 9 far Car flung system whereby where where- b by the small COli country n tr banks will be absorbed slowly perhaps becoming branches brunches of larger lr banks Banking facilities will be continued wherever there Is need for them because If It the need exists profit can be made out milt of u a bank back Wherefore there will he be an nn eventual C purchase of hundreds hundreds hun hun- of or tho the smaller banks and conversion conversion con con- version of them Into branches I a a a aThus I Thus the time basis hasis of the time controversy conies comes Into view There There Is 18 one I school of thought Favor a Few In the co country u n try I Great Systems which holds bolds that the time solution of ot our I problems pfuhl Is establishment I u if n tI f I rw r systems or at nt least I Vrr nor nil irni rr hanks hunks There Is i 1 i. i i r i lOr r t Lot a because i i 11 nt Ili halll failures that have bave occurred In the period of ot the thc depression Senator Glass the theauthor theauthor theauthor author of the bill mentioned above and one of the ablest banking students students students stu stu- stu- stu dents of or the time says there are actually thousands of or banks In operation op ot- that ought never have hu been need for organized There was no I them He Be referred d to some of oC the thereal thereal thereal real small Institutions as ag pawn pawnshops pawnshops pawnshops shops adding that they were of ot no service to their communities and that they toppled over at nt the first sign of ot a storm But Dut there Is another school of thought Those on this side of ot the question argue a against extension of ot the branch system and the limitation limita tion of the number of or banks as ns placing ing log dangerous power over currency and credit In the han hands s of ot a small number of Individuals Instead of oC distribution distribution distribution dis dis- dis- dis of ot that power among the c communities where the banks are ara lo lo- lo- lo From Irum this viewpoint too It ItIs ItIs itis Is said local communities will be denied denied de de- de nied ac accommodations at nt the bank I with which they must do business I hn have ve heard It argued at length that a branch of a bank bunk In a distant city will have ha Its hard and fast rules and and either either the local citizens meet those requirements or fall faU to get s-et a n loan If It that be true of course It means destruction of oC one of the basic rules of ot credit namely the character and record of the time bor bor- rower At any rate these are the points set up on each side of or the question Undoubtedly there Is merit to each argument Moreover experience seems to have hll demonstrated that varying conditions make the two propositions work differently In different different dif dlf dif dif- ferent communities Yet whatever ma may be the view one holds It cannot cannot cannot can can- not be denied that the time emergency banking act Is an enormous stride In time tile direction of or a unified banking system If It It produces stronger banks everywhere It surely sureh will flU have been a blessing even though h It leaves sore spots Splits and heartaches In Inmany Inmany many communities for the time being being be be- ing Ins as a n result of or the harshness of ofUs Its Us terms S a a President Roosevelt's Roose bold action respecting the banking hanking situation resulted resulted re re- In m man many a n y overlook overlook- Move Required persons Courage In Ing what I am Inclined Inclined In In- to regard as a move that required more courage courage cour cour- age when considered from the political political po po- po- po standpoint lIe He was able to gain ain quick and decisive and almost unanimous action on the banking legislation les because use of ot the perilous situation He had no such united support when wilen he asked congress to give him dictatorial powers to cut government expenses Especially Is this true concerning time tile right he sought to trim down the payments being made to former soldiers sailors sailors sail saU ors and marines whose compensation tion was being given gi In cases of ot physical dl disabilities that did not result from actual service In the fighting lines No one knows nor can anyone tell how much mone money Is being paid for disability not connected with the service It Is known h however that the total pa payments ments to veterans exceeds exceeds exceeds ex ex- 9 a vast sum even Ifor I Ifor for our rich country I There seems to be no tion lion about the time willingness to compensation to veterans who re- re Injuries In the fighting lines That Is undoubtedly their due It ItIs ItIs ItIs Is the time least a government can do But Dut where the compensation atlon Is being being being be be- ing paid for things that have happened happened hap hap- since the tho war there surely la Is room for Cor doubt That Is the t type pe of payment ment which the President says he Is going goins- to eliminate a a a Now that congress has put through the legislation les permitting the manufacture manufacture manu manu- facture and sale Drys Keep Up of ot beer ber with an I Fight on Beer alcoholic content I I something n near ear what beer had before the days of prohibition much speculation has hns arisen as to how bow the matter will be viewed b by the Supreme Court of the United States Time The question surely surely surely sure sure- ly will get to the time Supreme court in rather short order Prohibitionists are fire not going to be licked without that final test In In view of ot these circumstances it may be interesting to recall an argument made privately b by former Senator John J. J Blaine of Wisconsin Wiscon sin when he Ile sought to get action on a beer bill In the last session of congress before his term expired Senator Blaine took the position that It would be unconstitutional for congress to pass beer legislation that would authorize the manufacture manufacture manufacture ture and sale of or beer where It contained con tanned an all alcoholic content In excess of one half of 1 per cent But nut he lie contended that If If congress enacted legislation declaring there was no penalty to be used where the time alco holic content was below a stated O figure fig ure there was nothing which the tho Supreme court could hold bold to be bc un constitutional There seems every reason to believe believe be hl lieve lIe that the law as enacted In th time the extra ettra session will stand the const coast test 2 t. t 1933 1977 Western Newspaper Union |