Show BANK chartering POLICY REVIEWED state official declares sound principles in licensing banks are essential pill public y K lcy in chartering banks was als cussac by carl K withers comi comings nis stoner of banking and insurance of the state of now jeree jersey y before the eastern conference Cunfer on Rank ls service held here recently under the tha auspices ut of tho the american bankers association ile ele declared that few lont onil bearing on the ibe future stability and security of out our banking systems loom as moro more im than that of a sound policy to be purs pursued tied in bunk bank chartering alluding to competitive policies of both state stale and national banking authorities to charter tho the most banks in tile the past he said that this country was over banked and that thai halda from any other consideration economic or otherwise tills this conoll condl tion was brought about largely through an unwise and un thinking charter policy y between the state and national eye ays ms which has marked and hani ham red banking progress in this coun try since its very inception Itic eption political roli influence lie iio decried political con considers sIderA in connection with the charter ini ill of banks sayings saying political in leonce has no more place in bank ing that it has hai in n the deliberations oj of our highest tribunal The su drome court of the united states until this Is recognized and brought into being within both our state and national system swe ill may never tee feel safe against the shifting sands of political expedience and favor As to thu the element ot of sometimes ridiculous competition heretofore boreto fore between the state slate and na dional systems hit ha said that much mayba may bo said in favor of the progress madis in recent years in many states there exists a practical working in agreement between local supervising authorities and the federal whereby all charter ap are ara mutually considered i a basis of community need rather than competitive advantage is as be sy systems in some states this arrangement goes even further in tie he refusal of the one authority to oven consider a charter while vending pending wibb abe othir oth ir aside from tile the competitive and political aspects of our future char for or policy lie he continued there are others more individual and local which merit consideration anions these ho he mentioned honesty purpose community need the of ruana management gement and ade inacy oft capital most blost state laws make reference to ti the ibe character responsibility 0 and nd lit illness ness of the incorporators of a now new bank he said continuing so important do I 1 conceive this factor to be that I 1 place it first bral among those foi consideration tot tor unless the motive Is sound honest and sincere there if tittle little likelihood that till the resultant institution in its service to the community will reflect u ther other than the spirit of its founders ill lit lessons of the post past too often in the past have charters been granted to promoters pure and simp lenot always pure and by no means simple the country was dotted with such the 1 expert elou has been costly and it Is to be hoped the lesson well learned not only by charter grinding authorities but by the general public as well other factors acton to be considered as ft amons among tb mot hibst gnap important lo in grant ant taos ins inc now new bank char caarten ch arten he be said laid are tho number of institutions already th area the record of earn ing ina or of the bumber bumbar of ta allure llares ailace 1930 1920 gal an the reasons public con ven ve lence and advantage the reason able prospects or growth of the expectation of profit able abe oper ave aHoo ration and whether a branch 0 an existing institution could serve sa aa well sound public policy demands that no now new banks banka be chartered un less there to Is a definite necessitous and permanent need he declared sound bergero mer iner gero gere consolidations and theo the sensible extension of branch banking are much to be preferred to any general movement toward a flood of now new charters out but here agair we must guard carefully against monopoly or unbridled banch b anch competition either of which might become as dangerous as an the organization of new banks |