Show WOULD olied PROTECT BANKING FIELD IN RURAL AREAS american bankers association Anocia tion announce announces purpose to combat return of excessive number of baffic ba charta CITES LAX CHARTER POLICIES IN THE PAST find finds a chief cause of bank failure failures wa was too many bank banks existing Ex ittin sound bank banks serving communities well YORK existing sound banks especially the small bank banks in the th rural districts which are serving their communities well should be protected from any return of 0 the over banked local conditions caused by former lax chartering policies which were mainly tc blame for th the able failure record of the past says the th economic policy COmmIs commission ot of the american bankers association this I 1 to brought out in a report covering an in by the commission ot of bank failures and public policies in charter ing banks the commission commissions a study gives ires an impressive Impress tr revelation of how great a part mistaken public pol poll lc cles in the chartering of banks played in creating the unsound banking structure which finally collapsed colla peed with the bank holiday in march 1933 hobert robert V fleming president of the association says la in a foreword overproduction over production of banks literally by thousands OTT over many years tn in the face ace of insistent warnings not only from bankers and others who lecog nixed the danger but eren even more so from the tb mounting records of bank batik failure failures clearly shows shown to bare bays constituted as ft a whole one ot of the great est eat single economic error errors la in the history ot of the nation A peered he refer refers to tear fears ot of a ace ot at oTer banking recently expressed by federal banking authorities to so th the power powers given the federal deposit in aurance corporation bw b the provision of the bankins act of lili 2935 over the admi slon of bank banks to membership la in the th in fund to strengthened state laws and to the th policies BOW now befog being tol to lowed by both national aad and state tat super authorities aimed to safeguard the th nation ever banking but sound law laws ad and conscientious are not ot of themselves them always sufficient clent safeguard lr ir any field told ot of our complex national life unless they hare bays the active support of at public opinion k he adds it Is the purpose of the amert amerl can cn bankers association to aid in mar shaling iii public opinion in support of both national nd state supervisory au zu thorit les in their efforts to strengthen and protect thai the banking structure the economic policy commission summarizes sum marlie its finding in part as tol 10 lows the facts show a distinct causal relationship lation ship between the th of banks and tb the abnormal bank tall fail uro ur conditions that prevailed from 1920 to the I 1 ank holiday in 1833 1933 it Is I 1 desir able that saulles stulles studies be made on the basis of experience to develop standards got joy arning the number of banks or the yol urne nine 0 of t bank capital which can be sue cess tully fully operated such a study would embrace the question whether banking facilities can beat be supplied to the rural districts by small unit bank banks or by branche branch from banks of substantial capital in larger centers existing sound banks which are serving their communities well should be protected from any return ot of the over banked local condition conditions caused in the past by las lax charter loe policies banking official officials queried an inquiry among state bank corn com missioners show shows a crepon maloria arant ion ton against increasing materially lly the number ot of bank banks coupled with the tact fact that present laws give them Sum sufficient cleat discretion to prevent a repetition ot of the grave errors ot of the pasty under prevailing abnormal abnot mal condl eions with the federal government ex teut ivelY exercising loaning power powers in competition with the babp banks and with industry itself so largely supplied auppl aup plied led with funds a as to render tender it to a treat great degree independent ot of normal bank borrowing the banking structure even with its present reduced number numbers finds it dim cult to support its it existing capital in vestment and operating personnel these are new now factors actor intensifying the tb need tor for highly prudent and m r chartering policies we WO arts the retirement of ot the federal govern ment troa from tn banking business AS a rapidly as th the return ot of normal business conditions warrent warr tnt 10 kent had a very good article in n the he tribune on the 1414 t the president in a jamb jam b dromms ed a lot ot of money to the farmers by the processing tax and now its it a un constitutional iffet make good by increased taxes how aprons roa he h 20 I 1 to billions iud texi t |