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Show State Banks Menaced by Innovation nled this authority It resulted In many nntional banks surrendering their charters and converting Into stats banks In order that they might avail themselves of the authority granted by the state to maintain branches. "This condition Is deplorable, and to add to the gravity of the situation a large notional bank In one of our Missouri cities which state does not permit branch hanking has recently announced a policy of establishing a number of branch offices throughout that city. "It Is, of course, well understood that the adoption of this pollcj would eventually result In the practice being extended to the rural communities. When some city bank failed to secure a correspondent In a desirable town, the next step would be to establish a branch bank In that community, then some other city bank, not wlllim; to be outdone, would do likewise until In due time the state would be plastered with branch banks. "Mr. Speaker, during the great World war the country banks of the nation set a standard of patriotism, loyalty, and stif-sacrlflce that might well be emulated by the large financial Institutions which are now striving to suck their llfeblood from them. "Many country banks and their cus-to?-.irn, fnrtr.er? anil busIneH" men, are today struggling In adversity as a re-Milt re-Milt of their loyalty and self-sacrifice during the war, end If brunch banking bank-ing Is permitted to continue It will be the final blow." PROTESTING against the growing disposition of city banks to encroach en-croach on the business of state Institutions Institu-tions by the establishment of "branches" In small towns, Congressman Congress-man Mlllspaugh of Missouri, spoke ns follows from his place In the house of representatives: "Mr. Speaker, there has been for some yetrs a growing disposition on the part of some of the larger banks to encroach upon the business of the smaller financial Institutions by the establishment of branches or "feeders, as we might term them. This has been accomplished to a large extent by the acquisition of control of smaller banks by the larger bnnks through purchase;, but recently some of the larger nntionul banks have sought authority from the comptroller of the currency to estal.li.ih branch.-. Particularly Par-ticularly In states which permit state banks to establish branches, giving as a reason the fact that they could not successfully compete with the state banks In those states, and when de- |