| Show I II I BANK CHARTERING i POLICY REVIEWED I State Official Dec Declares re Sound Principles Principle in Licensing Banks Bank Are Essential I Sound und public policy In chartering bank was wu Jl dl cussed culled by Carl Cal K K Withers Commit loner Ioner ot or and nd ot of the State Stale of ot New Jersey Jene before the lb Eastern Conference on flanking Banking Service held beld here hero recently under the auspices of or the Ibe American Bankers He no declared that tow row questions question bearing bearing on on the tb future stability and security of our banking tem loom at I mars lm more Im Im Important portent than that of a sound policy to be pursued punned pUrl fd In tn bank chartering lo to competitor competitive policies of both state slat ann ana an national banking authorities lo to charter the tb most mOlt banks In the past he said tb t this country was over over banked banked and that thai aside from any other consideration economic or oh otherwise this condItion condition condi condl tion Lion was wu brought about largely through an aD unwise unsafe and Ind un unthinking unthinking thinking clatter policy alternating between the state stale and national terns tern which bleb bas bu marked and ham bm hampered pared banking progress In 10 this country country coun coun- try trl since Ince since its Its It very Inception Political Influence lie He decried political considers Ions In connection with the charter charterIng I tug Ing or ot of banks saying Political Influence In In- Influence fluence has no DI more place ID in bankIng bank bank- ln Ing ID than It has In the deliberations of ot our highest tribunal tribunal The The Su lIu pre me Court of or the Ibe United States Until this Ihli Is I. recognized and nd brought Into loto being belDI within both our state tate and national item s we w. may mat never nefer feet feel sate safe against the shifting laDd of f r political expedience anti and favor tavor As A. t to the tb element of ot sometimes ridiculous competition heretofore existing between the state l aDd and national na lIonal systems b be said Id that much may be bt said Id In favor ot the Ibe progress made mad In tn recent years In man many many states tate there exists a practical work working work lug Inc agreement between fielD local super super authorities and the federal authorities whereby all art charter applications ap ap- are ara mutually considered oa on a basis bul of 01 community need Deed rather than competitive advantage c. c es as be between between tween systems In 10 some ome states this Ibl arrangement eDt goes coe eYen even further inthe ln in the tb refusal of or the one ODe authority to 10 even eyeD consider a charter while pending pend pend- tag ing with the other Aside from the competitive and aneS political aspects of our future cb char charter charter r- r ter tn policy bit be h continued there are several ral others more Individual D and local which merit consideration Among these theat he be honest houel of purpose community need Deed the character of management and ade ade- adequacy adequacy quae of ot capital Most MOlt state laws law make maka reference to the character responsibility and fitness of or the jf t ta a aDe anew new De bank ha be said continuing So SG Important d do I conceive on el this thU factor to be that i place It first among those thola for for consideration for unless the moti motive e Is La sound honest and sincere there Is to little likelihood that the he resultant Institution la toIta its service to the tb will reflect other than the spirit of Its It founders r. r The Tho Batons on of 01 thi tho the Past Put PI Too of ten I a the past pat pave have an dI char ten tars been bean granted to promoters pure pura and aDd simple not nol not always pure and by no DO means meu simple e. The country cou was dotted with such men Th Tea Th experience once ence pas has been ban costly and It is a to be hoped the thele lesson oD welt wall learned not only by ranting granting char authorities l but by the general public as a. welL 11 Otha Othe factors to be ba considered d' d as st among mODI the most Important In grant grant- Ing charters charter ba he are ara the cumber of ot Institutions already serving linin the tile area rea the record of ot earnings earn Inc ings of existing Institutions the number of failures since Inea 1920 and aDd the reasons public pubU convenience con v and aad advantage the reasonable reason able prospects for growth of the community expectation of ot profitable profit able abla operation and whether a branch of or an n existing Institution could serve serva as a. well SO Sound public policy demands that no DO new nw banks be ba chartered unless unless un un- un- un less Ie there Is II a definite necessitous and aDd permanent need Ded he ha declared Sound mergers merger consolidations and aDd the lb extension of branch banking are ara much to be b. preferred to aD any general movement toward a flood of or D new DeW W charters charter But Oot here her again we W. must guard I laud carefully against monopoly or unbridled branch competition either of which might become com as a. daD daog I i as a. th the organization of or |
