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69t h C ongress )
1st Session
HOUSE OF REPBESENTATI VES
J
f
R ep o h t
{
No. 1481
AMENDMENTS TO BANKING LAWS
June
Mr.
M cF a d d e n ,
15, 1926.— Ordered to be printed
from the committee of conference, submitted tihe
following
CONFERENCE REPORT
■[To accompany H. R. 2]
The committee of conference on the disagreeing votes of the two
Houses on the amendments of the Senate to the bill (H. R. 2) to
amend an act Entitled “ An act to provide for the consolidation of
national banking associations,” approved November 7, 1918; to
amend section 5136 as amended, section 5137, section 5138 as amended,
section 5142, section 5150, section 5155, section 5190, section 5200
as amended, section 5202 as amended, section 5208 as amended,
section 5211 as amended, of the Revised Statutes of the United
States; and to amend section 9, section 13, section 22, and section 24
of the Federal reserve act, and for other purposes,” having met,
after full and free conference, have agreed to recommend and do
recommend to their respective Houses as follows:
That the Senate recede from its amendments numbered 13, 14, 15,
16, and 35.
That the House recede from its disagreement to the amendments
of the Senate numbered 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11,17, 18, 19, 20,
21,22, 23, 24, 25, 27, 29, 31, 32, 34, and 39, and agree to the same.
Amendment numbered 12:
That the House recede from its disagreement to the amendment of
the Senate numbered 12, and agree to the same with an amendment
as follows.
Insert the matter proposed to be inserted by the Senate amend*
ment; and on page 5 of ijhe House bill, lines 23, 24, and 25, strike out
“ the approval of this act, or from the date of its organization if
organized after such date of approval’’ and insert its organization
(whether organized before or after this section as amended takes effect) ;
and the Senate agree to the same.
2
AM END M ENTS TO BAN KIN G LAW S
Amendment numbered 28:
That the House recede from its disagreement to the amendment of
the Senate numbered 28, and agree to the same with an amendment
as follows:
In lieu of the matter proposed to be inserted by the Senate amend
ment insert and in the branch or branches, i f any, retained or established
and operated by it in accordance with the provisions o f section 5155 o f the
Revised Statutes, as amended) and the Senate agree to the same.
Amendment numbered 30:
That the House recede from its disagreement to the amendment of
the Senate numbered 30, and agree to the same with an amendment
as follows:
On page 7 of the Senate engrossed amendments, line 23, after
“ act,” insert a comma and as amended and a comma; and on page 8
of the Senate engrossed amendments, lines 15 and 16, strike out “ of
the approval of this act” and insert this section as amended takes
effect; and on page 8 of the Senate engrossed amendments, line 22,
strike out “ of the approval of this act” and insert thi$ section as
amended takes effect; and the Senate agree to the same.
Amendment numbered 33:
That the House recede from its disagreement to the amendment of
the Senate numbered 33, and agree to the same with an amendment
as follows:
Strike out the matter proposed to be stricken out by the Senate
amendment; and on page 24 of the House bill, line 4, strike out
“ paragraph 2 thereof” and insert in lieu thereof as amended; and on
page 17 of the House bill, line 20, after “ act,” insert a comma and
as amended and a comma; abd on page 21 of the House bill, line 17,
after “ act,” insert a comma and as amended; and on page 21 of the
House bill, line 21, after “ Statutes,” insert a comma and as amended;
and on page 21 of the House bill, line 23, after “ act,” insert a comma
and as amended and a comma; and on page 25 of the House bill,
line 4, after “ act,” insert a comma and as amended and a comma;
and on page 26 of the House bill, line 1, after “ States,” insert a
comma and a&amended; and the Senate agree to the same.
Amendment numbered 36:
That the House recede from its disagreement to the amendment
of the Senate numbered 36, and agree to the same with an amend
ment as follows:
On page 10 of the Senate engrossed amendments, line 12, strike
out “ 18 and insert 17; and the Senate agree to the same.
Amendment numbered 37:
That the House recede from its disagreement to the amendment
of the Senate numbered 37, and agree to the same with an amend
ment as follows:
On page 11 of the Senate engrossed amendments, line 4, strike out
“ 19” and insert 18; and the Senate agree to the same.
Amendment numbered 38:
That the House recede from its disagreement to the amendment
of the Senate numbered 38, and agree to the same with an amend
ment as follows:
In lieu of the matter proposed to be inserted by said amendment
insert:
AMENDMENTS TO BANKING LAWS
3
Sec. 19. That subdivision second o f the fourth paragraph o f section 4
oj the Federal reserve act, as amended, is amended to read as jollows:
“ Second. To have succession for a period terminating 50 years after
ihe expiration o f its original franchise unless it is sooner dissolved by
act o f Congress or its franchise becomes forfeited for violation of law.”
Sec. 20. There is hereby created a joint special committee (hereinafter
in this section referred to as the u joint committee ” ) to consist o f three
members o f the Committee on Banking and Currency o f the House of
Representatives, to be appointed by the Speaker of the House of Repre
sentatives, and three members o f the Committee on Banking and Cur
rency o f the Senatef to be appointed by the President o f the Senate, to
make an inquiry into the prices o f commodities in the united States as
affected, since the year 1914, i f at all, by the Federal banking laws.
The joint committee is authorized to appoint and fix the compensation
o f such clerical, stenographic, and other assistants, to hold such hearings
and to sit and act at such places and times durinq the sessions and
recesses o f the Sixty-ninth Congress, to require by subpoena or otherwise
the attendance o f such witnesses and the proauction of such books,
papers, and documents, to administer such oaths, to take such testi
mony, to have such printing and binding done, and to make such
expenditures, as it deems advisable. The cost o f stenographic 'services
in reporting such hearings shall not be in excess o f 25 cents per hundred
words. Subpoenas for witnesses shall be issued upon the request of the
joint committee, or any member thereof, under the signature of either the
'Speaker o f the House or the President of the Senate, and the SergeantatrArms o f either the Senate or the House is hereby authorized and
directed to serve all such subpoenas and other processes. The members
o f the joint committee shall serve without compensation in addition to
that received for their services as Members of Congress; but they shall
be reimbursed for travel, subsistence, and other necessary expenses
incurred by them in the performance of the duties vested in the joint
committee. The expenses of the joint committee shall not exceed $2,000
and shall be paid one-half from the contingent fund o f the Senate and
one-half from the contingent fund of the House of Representatives,
upon vouchers signed by the chairman. The joint committee shall
report to their respective Houses from time to time the results o f its
inquiries, together with such recommendations as it may deem advis
able and a period.
And the Senate agree to the same.
That the House recede from its disagreement to the amendment
of the Senate to the title of the bill ana agree to the same with an
amendment as follows:
Amend the title so as to read: “ An act to further amend the na
tional banking laws and the Federal reserve act, and for other pur
poses;” and the Senate agree to the same.
The cozpunittee of conference have not agreed on amendment
numbered 26.
Ix>uis T. M cF adden,
E dward J. K ing ,
Managers on the part of the House.
Geo. P. M cL ean,
W alter E. E dge,
Carter Glass,
Managers on the part o f the Senate.
STATEMENT OF THE MANAGERS ON THE PART OF THE HOUSE
The managers on the part of the House at the conference on the
disagreeing votes of the two Houses on the amendments of the
Senate to the bill (H. R. 2) to amend an act entitled “ An act to pro
vide for the consolidation of national banking associations,” ap
proved November 7, 1918; to amend section 5136 as amended, sec
tion 5137, section 5138 as amended, section 5142, section 5150,
section 5155, section 5190, section 5200 as amended, section &202 as
amended, section 5208 as amended, section 5211 as amended,.of the
Revised Statutes of the United States; and to amend section 9.
section 13, section 22, and section 24 of the Federal reserve act, ana
for other purposes, submit the following written statement explain
ing the effect of the action agreed on by the conference committee
and submitted in this accompanying conference report.
Amendments Nos. 3, 4, 6, 7, 8, 9, 10, 12, 17, 18> 19, 20, 21, 22,
24, 25, 27, 31, 32, and 34 are clerical or minor clarifying changes.
Amendments Nos. 1 and 11: The Senate amendments provide that
a State bank may consolidate with a national bank in any part of the
State if the State law permitted two State banks to consolidate under
the same conditions. The House bill contained no similar provision,
and the House recedes.
Amendment No. 2: The House bill provided for the publication
of the time, place, and object of meetings for the consolidation of a
national bank with a State bank in a newspaper .of general circulation
published in the place where the national bank is located. The
Senate amendment provided for. such publication in addition in a
legal newspaper for the publication of l«a;al notices or advertisements,
if any such paper has been designated by the rules of a court in the
county where the national bank is situated. The. House recedes.
Amendment No. 5: The Senate amendment provides that in case
of a consolidation of a national bank with a State bank that the
consolidated bank should enjoy, among other property rights, fran
chises, and interests of the constituentIbanks, the right or session as
trustees, executors, or in any other fiduciary capacity. The House
bill had no provision on the subject, and the House recedes.
Amendments Nos. 13, 14, 15, and 16: The Senate amendments
authorize national banks to buy and sell investment securities. The
House bill contained no similar provision. .The Senate recedes.
«
Amendment No. 23: The Senate amendment prohibits a national
bank from being organized in the outlying sections'of a city, upon a
capitalization of $100,000 if the State law places the same prohibition
upon the State banks. The House bill contained no similar provision,
and the House recedes.
Amendment No. 28: The Senate amendment provides that na
tional banks might transact general business not only at the place
specified in the organization certificate but also at such branches as
4
AMENDMENTS TO BANKING LAWB
5
the bank might lawfully maintain under the provisions of the bill.
The House bill contained no similar provision, and the House re
cedes with an amendment making clerical changes.
Amendment No. 29: The House provision relative to the estab
lishment of new branches of national banks were stricken out by the
Senate, and the House recedes. Corresponding provisions were
inoluded by the Senate in amendment No. 26.
Amendment No. 30: The House bill provided that no State
member bank may establish new branches outside of the home city
of the bank except upon pain of expulsion from the Federal reserve
system. The Senate amendment retains this provision in a redrafted
form, and the House recedes with an amendment making certain
clerical changes.
Amendment No. 33: The House provision empowered Federal
reserve banks to rediscount for member banks an amount of eligible
paper' equal to the amount which a national bank could, lawfully
discount for its customers. This is a liberalization of existing law
under which Federal reserve banks could discount for any one bor
rower only eligible paper not exceeding 10 per cent of the capital
and surplus o f the member bank. The Senate amendment struck
out the House provision and the House recedes with an amendment
also striking out the House provision but further making certain
clerical changes in matters of citation.
Amendment No. 35: The Senate amendment amended the Clayton
Act by giving the Federal Reserve Board discretionary authority
to permit, if the public interest requires, a single person to serve
as a director of not more than three banks. Tne House bill con
tained no such language, and the Senate recedes.
Amendments Nos. 36 and 37: The Senate amendments provide
that national banks may hereafter divide their stock into snares of
less than $100 par value. The House bill contained no such lan
guage, and the House recedes with amendments changing the section
numbers.
Amendment No. 38: The Senate amendment provides for the
extension of the existing charters of Federal reserve banks until
such time as the charters were dissolved by act of Congress or for
feited for violation of law. The House bill contained no similar
provision and the House recedes with an amendment which provides
for the extension of such charters for a period terminating 50 years
after the expiration of the present charters, except in ease of disso
lution by act of Congress or forfeiture for violation of law; and
with a further amendment providing for creation of a joint special
committee to inquire into tne prices of commodities in the United
States as affected since the year 1914 by the Federal banking laws.
Amendment No. 39: The Senate amendment grants specific Author
ity to the Federal Reserve Board to discontinue branch Federal
reserve banks in. order definitely to settle the question which is q o w
before the Attorney General for an opinion as to whether the Federal
Reserve Board now impliedly possesses such power. The House bill
contained no similar provision, and the House recedes.
Amendment to the title: The House recedes from its disagreement
to the amendment of the title by the Senate with a further amend
ment which states that the bill is to be entitled “ An act to further
6
AMENDMENTS TO BANKING LAWS
amend the national banking laws and the Federal reserve act, and
for other purposes.”
The committee of conference have not agreed upon the following
amendment of the Senate:
Amendment No. 26: The House bill provided that a State bank
upon converting into a national bank may retain only such branches
as the State bank might have had in operation within the corporate
limits of the city in which the bank was situated, with a proviso
that no such branches may be retained which may have been estab
lished after the approval of this act in a’ State which at the time of
the approval of this act did not permit branches to the State banks.
The Senate struck out the House provisions and substituted new
language which embraced all of the conditions under which a na
tional bank might have branches; The Senate provision permits the
retention of all existing lawful branches; the retention of any branch
in operation for more tnan 25 years; the retention of all now existing
branches in case a State bank is converted into or consolidated with
a national bank; the establishment of new branches by national banks
in certain cities in States which permit branch banking at the dis
cretion of the Comptroller of the Currency; and the establishment of
branches in incorporated contiguous territory to such cities at the
discretion of the Comptroller- of the Currency. The Senate provi
sion further provides that no branch could be established or moved
without the approval of the Comptroller of the Currency; defines the,
terms “ branch,” “ Statebank,” “ Statebanks,” “ bank,” and “ banks” ;
and exempts foreign branches from the provisions of the section,
Louis T. M oF adden,
E dward J. K ing ,
Managers on the part o f the House.
@FedFRASER