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CARROLL F. BYRD

FRANK WORTMAN

PRESIDENT

TREASURER

A. R. DAWSON

INDEPENDENT BANKERS ASSOCIATION

VICE PRESIDENT

S. B. LAFROMBOISE
SECRETARY

TWELFTH FEDERAL RESERVE DISTRICT
INCORPORATED

EXBCUTIVB MANAGER — R. F. HOLLISTER

802 F A I L I N G B U I L D I N G
PORTLAND 4, OREGON

Sept. 11, 1948

EXECUTIVE COUNCIL
J. R. MCEVOY, FIRST NATIONAL BANK, HOLBROOK, ARIZONA
ROBERT S. BEASLEY. BEVERLY HILLS NATIONAL BANK AND TRUST COMPANY, BEVERLY HILLS, CALIF.
CARROLL F.- BYRD, FIRST NATIONAL BANK. WILLOWS. CALIFORNIA
M. F. JELINEK, BANK OF OROFINO. OROFINO, IDAHO
A. R. DAWSON. CASSIA NATIONAL BANK. BURLEY, IDAHO
R. L. DOUGLASS. THE SECURITY NATIONAL BANK. RENO. NEVADA
E. T. WAY, GRANT COUNTY BANK, JOHN DAY, OREGON
FRANK WORTMAN. FIRST NATIONAL BANK, MCMINNVILLE, OREGON
HENRY R. HURREN, CACHE VALLEY BANKING COMPANY, LOGAN, UTAH
H. A. GARDNER, BANK OF SPANISH FORK, SPANISH FORK, UTAH
V. J. BOUILLON, THE WASHINGTON NAT.ONAL BANK, ELLENSBURG, WASHINGTON
S. B. LAFROMBOISE. FIRST NATIONAL BANK, ENUMCLAW, WASHINGTON

IN YOUR REPLY REFER TO

S 17 - 2

To The Bank Addressed:
The Executive Council of the ABA at its French Lick meeting last
spring issued a statement recognizing the need for Federal legislation
providing for proper and reasonable controls over the organization of
new and the expansion of existing bank holding companies and for the
divorcesment of non-banking activities frcm such companies.
This statement by the Executive Council is in accordance with declarations made by the Secretary of the Treasury, the Board of Governors of
the Federal Reserve System, the Comptroller of the Currency, The Federal
Deposit Insurance Corporation, the Federal Reserve Advisory Council and
other banking groups recommending bank holding company regulation*
The bank supervisory agencies in Washington and leading members of
the Senate and House have stated that bank holding company legislation
will no doubt be introduced early in the next session. We believe it is
essential that this Bill be supported by a properly worded resolution at
the Detroit Convention, placing the ABA squarely on record as favoring
such legislation as will be in the public interest and in keeping with
sound banking principles.
In the interest of such action, we have written the members of the
Interim ComiiLttee, the Legislative Committee and Resolutions Committee
of the ABA, suggesting that this resolution take the form adopted by the
National Association of Supervisors of State Banks at its convention in
Washington, D. C , last September and by several State bankers associations throughout the country,
A copy of this resolution is enclosed. We would greatly appreciate
it if you would study it at your convenience so that the representative
of your bank at the Detroit convention will be prepared to join with other
bankers from all over the nation in working for its adoption in the
interest of sound banking and the maintenance of the free enterprise
system.




Sincerely yours,

R. F. Hollister
Executive Hanager

RESOLUTION

WHEREAS, a Bank Holding Company niay sometimes be used to circumvent the existing Federal and State banking laws and to engage in
lines of business which are prohibited to banking institutions; and
WHEREAS, the National Association of Supervisors of State Banks
is opposed to such practices; and
WHEREAS, the Congress undertook to provide for the control and
supervision of Bank Holding Companiesj and it appears that the present
law is inadequate to accoroplish the purpose for which it was enacted^
and there is in existence no effective control of Bank Holding Companies;
and
WHEREAS, it is necessary in the public interest and in keeping
with sound banking principles that the activities of Bank Holding Companies
be restricted solely to the banking business, and that they be regulated
in the same manner as the activities of banks themselves;
NOW, THEREFORE, BE IT RESOLVED, that this Conference urges
The Congress that legislation be enacted designed to supervise and
effectively control Bank Holding Companies, to regulate the creation of
new Bank Holding Companies, and to require the separation from such
companies of all nonbanking activities.