T
he
A
u t o m a t ic
C h a in B a n k in g
Many of the manufacturers and operat
ing companies find proper financing one of
their most difficult jobs. It is that way
with all of us. Every man interested in
business of any kind can very well watch
the development in banking circles.
Congress has initiated an investigation
of branch and chain banking. Hearings
are now in progress, and the ext nCongress
will probably be confronted with the task
of establishing a balance between chain and
branch banking.
Chain banking has been encouraged
through the McFadden Law. World’s Work
for May state, “ Although official figures are
lacking, unofficial reports show that no less
than 273 chains of banks are now being
operated in 39 states. They comprise a
total of 1858 banks, and have resources of
$12,275,390,000.”
Branch banking also is growing.
Of the 25,115 state and national banks,
818 are operating 3,440 branches. Of this
3,440 branches, 1,078 are outside the home
'-ity of the parent bank. It is pointed out
that in the extension of chain and branch
banking, one of the fundamentals of the
American credit system is threatened,
namely, that credit which is based (upon
banking deposits should be controlled by
Versons within whose areas which furnish
the deposits, and thus be subject to the re
straints of local interests and public opinion
in those areas.
Attention is called to the fact that the
nine year period ending last December 31st,
witnessed 5,640 bank failures, with aggre
gate deposits o f nearly $2,000,000,000.00
contributed by more than seven million de
positors. Ninety-two per cent of the fail
ures have been in small banks in places
having less than 10,000 population, an ex
tremely important fact, considering that
more than four-fifths of all the 24,912 in
corporated banks in the country are located
in small towns.
Mismanagement, incompetent or criminal
management, deflation, robbery, graft, in
sect pests, decline in the cattle market, drop
in the prices of wheat, and so on, are given
as causes for these failures.
The extension of chain and branch bank
ing is not given as a contributory cause.
Congress must address itself not only to
find the basic reasons, but it must enact
legislation to safeguard banking against its
own weaknesses.
© International A rca d e M useum
A
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NO PESSIMISM
“ There is no need for pessimism as
to the future. We are an essential,
growing industry.
There is no
mystery about the problems that con
front us. They are very similar in
nature to the problems that confront
other trades. They will yield to the
application of sound business prin
ciples. All that is needed is the will
o f the majority o f operators and
manufacturers to tackle the prob
lems.”— Selected.
A certain poultry fancier in Connecticut
explained to a visiting friend that he owned
one of the marvelous hens in the world.
Upon his friend inquiring what made the
hen so marvelous, he replied that by draw
ing a blue cloth in front of the hen, she
would lay a blue egg, that by drawing a
red cloth before her, she would lay a red
egg, etc., etc.
The friend of course immediately wanted
to see the hen but the poultry expert
exclaimed that it was too late as the hen
was dead.
It seems that some ignorant fellow had
waived a Scotch plaid in front of her.
A tourist motoring from London became
confused as to his directions and noticing
a boy sitting on a fence nearby, inquired
of him:
“ Hey, son, what’s the rg h t road to
Norfolk?”
Boy: “ I dunno.”
“ Well then, how far am I from Birming
ham?”
Boy: “ I dunno.”
“ Where does this road lead to?”
Boy: “ I dunno.”
“ You don’t know much of anything, do
yoo?”
Boy: No, but I ain’t lost.
Patient( to nurse)— “ Forgive me for say
ing it, but I ’m in love with you. Really, I
don’t want to get well.”
Nurse— “ Don’t worry, you won’t. The
doctor is in love with me, too!”
— A. B. S., Inc., New York.
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