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There never wag a time when perfect understanding and sincere cooperation
between those banks which are under State supervision, and these which are under
Federal, was so necessary, or so important, as it is to—day.
The banking fabric of the country is absolutely sound and secure; it is
only necessary that all the elements and factors in it shall stand firmly together
shall adhere to the one general policy of public service in a time when it z& so
very important, in order to insure their utmost usefulness to the country.
I think nearly everybody recognizes to—day that the conditions which are
delaying the return to industrial activity and commercial prosperity throughout
the world are, to a considerable extent, artificial in their nature. Whatever
else may be wrong, the world is not suffering from over-production. It is
suffering from over-consumption for a long period of years, which has left it
urgently in need of a resumption of production in almost every line and every
The people are not only ready, but anxious to produce.
reported out of employment in vast numbers.

Everywhere they are

Those who are not working need to work; industries which are idle need to
be put into operation; railroads, which all over the world are in worse physical
condition than ever before, desperately need to have many billions .-ent in
their rehabilitation.
Thus there is need for employment of the unemployed, and for re umption of
operations by idle establishments.
Somewhere between the would-be employer and the unemployed worker seeking
work, there has been a collapse of the instrumentalities of credit, finance and
confidence, which is making it difficult to resume normal operations.
Th"- world has gone through so many periods of the same sort that it is
nardly necessary to explain.
The present depression is sure in due time to be
succeeded by an epoch of great activity and abounding prosperity. Our problem
is to hasten the return to normal conditions; and to that end no element in the
community can contribute more than the bankers.
There is no disposition to invite conflict, as to authority or jurisdiction,
between the banking establishment which is under Federal control, and those
various classifications of banks which are under State control.
I realize at times there has been some disposition to misunderstanding and
friction, but in a time like the present that must be put resolutely aside.
The most recent consolidated statement which has come to my­
dicates that the banking resources of the country are pretty equally divlifcF^Sn
State and National institutions. In fact, the State institutions were in that
report credited with slightly the largervolume of resources.

- 3 fheir number ib touch greater than the number of National Banks' and owing to
the wide variety among them - mutual savings banks, stock savings t ‘ks, trust
companies, and ordinary State banks - the State institutions occupy
much wider
and more variegated field than do the National banks.
Therefore, anything like failure of coordination and cooperation between
these two great classes of institutions would be a misfortune and might even
represent elements of potential disaster in such a time as the present.
It is the more important for us- to recognize this situation in view of the
fact that this country is 4he great pillar and support of the world’s financial
system. Our banking power sc vastly exceeds that of any ether country that we
fairly say there is no possibility of comparison.
It is not my purpose to enter upon any controversial phases of the discussion
that concerns relations between the State and the National banks. In the long
run the question of functions of different kinds of banks is one to be answered
by the legislative policies of the nation and the State,
We - you gentlemen on behalf of the State, and my own organization on behalf
of the Federal Government - are the administrative supervisors of the various
banking systems.
It is our business to administer the laws as they are, to get the best
results in the over— sight of the institutions with which we are concerned, and
not unduly to involve ourselves in discussions of those larger policies to
vhich I have alluded,
I want all of you to be assured that the present aim and purpose of the
Comptroller’s office is to bring about and to maintain the largest measure of
understanding, cooperation and united purpose, in behalf of the broe’est public
interest, between the National and the State banks.
You gentlemen have control over some classes of institutions perform
highly specialized and extremely important functions that are not committed to
the National banks.
There is an inevitable and intimate relationship, however,
between the services that all banks are called upon to perform.
This would still be true if I should include among the highly important
financial concerns the great insurance companies which are the trustees of vast
savings and investments of the public.
It is my hope that the relations, not only among all classes of the banks,
but between the banks and these great fiduciary concerns, will become increasingly
intimate, making possible an increasing solidarity of interest and understanding
to the great good of the public.
It is desirable that practical cooperation between State and Federal super­
visory officials should be possible.
Situations constantly arise in which a
detailed and accurate understanding of financial conditions as a whole, affecting
all classes of banks in a given community, is very necessary.I
I do not need to go into details as to precisely what I mean. I do want to
express my gratification that during my brief experience in the Comptroller’s
office there has been most satisfactory evidence of a disposition on the part
^f State officials to be helpful and broadminded in their Recognition of this fact.
I want also to assure you that in my own organization there is the fullest d-esire
to reciprocate.

- 3 For easwnple, a practical illustration will serve a useful purpose. A|cplic.a^
tions are frequently presented to my office for the issuance of National "bank
chart rs. In many cases, in smaller communities, there is ground for real un­
certainty as to whether the financial situation of the community will be improved
by increasing the number of banks.
As you all know, it is not infrequently the judgment of entirely unbiased
persons, making the wider’ survey of conditions in a community, that it would be
better not to increase the number of banks and to diffuse the banking capacity
and responsibility too greatly.
In all cases which have arisen under my administration that justified an
inquiry along these lines before granting a charter to a proposed National bank,
I have considered the situation not only from the viewpoint of the National banks,
but from that of the State banking authorities.
I feel that on both sides it will be advantageous if such a policy can be
generally followed. I do not mean to intimate any prejudice against efforts to
establish new banks, whether State or National.
I merely suggest that it is impossible to take the widest vie* of requirements
without knowing the facts as to all classes of banks.
We are getting too many b a n k - There seems to be a mania f c starting
There must be a strong feeling that the banker occupies a position of
vantage, the easy life, the road to riches. It is unaccountable that in this time
of great stress, financial upheaval, there should be so many applications for banks
and so many under $50,000.
I am convinced that nany applications are made with the intent and purpose
of creating a place where the promoters can find easy access to credit. Applica­
tions that have this appearance I reject.
The needs of the community should be thetest. I am convinced that in many
instances, unpopular and unreasonable bankers are responsible for many applications!.
In times like these, when borrowers are insistent, it is very easy to
create a condition which will ripen into a demand for new banking accommodations.
It looks easy to the unthoughtful, would-be banker to start his'financial
I have wondered if the new banker knew the sleepless nights that now haunt
and torment the average banker, whether he would still want to assume the roll
of financier with heartaches and troubled nights.
Since T have been Comptroller 52 applications have been voluntarily
abandoned. They stopped, looked and listened to the financial storm, and banking
became uninteresting. I have approved sixty applications and rejected 91, and
I have pending 132.
Much has been said at gatherings such as this, and in the financial press,
the bankers associations, and ether interested organizations, about i-he desir­
ability of cooperation between the State and Federal supervisory authorities in
the matter of banl^aejdjuiiAcnsnot only for statistical purposes, but in many
other ways.

- 4 It seems desirable that we should at not too infrequent intervls be able to
secure, as the result of synchronized calls on all banks, a composi'e picture of
the whole banking situation of the nation.
On the whole, some progress has been made in this direction, though there
has not always been as much disposition to cooperation as might be wished. I
earnestly hope that the conduct of the Comptroller1s office may be sue . as to
commend such cooperation to all of you and to insure the usual results that I am
confident would come from it.
is not possible to synchronize all calls because there is variation
among the laws and practicee of the States. It is merely my idea that there should
not be a distinct divergence between'State and Federal policies, and that the
largest measure of unification should be brought about.
It is for this that I want to appeal to you gentlemen. I would be very
glad if at least once each year simultaneous calls could be made on all banks;
and my Bureau would be glad to publish officially the result of the consolidated
I am sure you will all agree with me that none of us have known a period when
there was a greater or more onerous responsibility upon the shoulders of men
supervising the banking institutions.
If your experience has been similar to mine, and I have reason to believe
it has, you will also agree that the community of bankers are animated by most
commendable purpose of cooperation with the supervisory authorities. This is
one of the finest features of the present situation, 3-nd has been most helpful
in all efforts to handle the conditions presented to us.
The new relations of the Federal government to the National ba iks, brought
about through the establishment of the Federal Reserve System, are -\ow well
understood. Policies have been developed and crystallized, and whatever possibil­
ities of misunderstanding may have existed in the earlier operation of the
Federal Reserve System, have largely ceased, or will be soon solved.
For myself and my own department, I can give the frankest assurance that
it is desired that the advantages which National banks gain through the Federal
Re servo System, may be shared so far as it is feasible and possible with other bant
Wherever the power of the Federal Reserve System, gained through consolida­
tion and centralization of authority, can properly be employed to assist the
State banking authorities, the effort will always be made.
The subject of bank branches and agencies is of special interest at this time
For many reasons which do not require elucidation, it is desirable to have uni­
formity of law regarding the operation of branch banks, if we are to have them.
There is not only wide divergence in practices as between States which per­
mit banks to operate branches, but in some States where branches are not authorized
agencies are maintained for the transaction? of particular lines of business, in
some cases with, and in somes cases without, legal authorization.
The importance of uniformity in these natters is obvious. It is a subject
for the consider* Vico of State legislatures and of such organizations as the
American Bankers Association, the American Bar Association, and others devoted to
bringing about uniformity among the laws of the States.

I have long felt that your organisation could render a very useful s 9 W i ce
. lending its influence in behalf of this greater unification and uniformity in
State banking practices.
Uniform laws or regulations dealing with the payment of interest on deposits
and extension of credits through overdrafts are merely features in connection
with •’he matter I have just been discussing.
They are, however, extremely im­
portant, particularly that of overdrafts*
In some countries the yoverdraf t is the very basis on which credit is nor­
mally extended* Because it has not been the normal basis in this country, it
has been liable to great abuses.
Our method simply is a different method; - long established, familiar to
our people and bankers, and unlikely to be changed in any revolutionary way.
I am convinced thfcio there should be uniformity of law and practice in this
regard, requiring the payment of interest on all overdrafts*
In times like the present we will do well to stand firmly together* It is
important that the resources of all financial institutions be marshalled, if need
oe, in one reservoir for the common welfare.
It is vital that all bankers realise and understand the importance of stand­
ing firmly together - of upholding each other’s institutions. It is well to
remember that every failure in a degree undermines the confidence and trust of
the people in the banks. It is important, essential, that the pec le have faith
in the banks in times of stress like the present.
No greater service can be rendered by the banks of any commun- iy than to
build up a strong reserve of confidence, faith and trust, and to see that such
reserve ig at no time impaired.
If at times a bank shows signs of distress - no greater service an be
rendered by the banks of the community than to go to the assistance ox the
struggling bank and bring it back to usefulness.
To hope to gain prestige and strength by the misfortune of ft-neighbor bank
is selfigh, and invites distrust in the management of all banks, and undermines

the confidence of the people, which is essential and necessary to successful
It has been and will continue to be my policy to aid and help the banks,
in every emergency - whether they are National or State , institutions, I am a
firm believer in Union there is Strength. It is only necessary for the banks
to pool their resources to assure world financial supremacy of our country.
The combined financial resources properly used will not only rehabilitate
our industrial activities and meet all our own requirements, but will ultimately
save the other countries of the world from bankruptcy*
The bankers in their
respective spheres, can do much to stabilize trade, industry and commence.
The people look to banks for encouragement and aid - for assurance of
support in productive and legitimate undertakings.
There is nothing wrong with
ouy country - or our people.
There is-nowadays entirely too much exploration of industrial and commercial
grate-yards. Too much attention is being paid to the mistakes of
ie past,
and too little constructive thought to the future.

- 6 -

Instead of looking for holes in which to fall, we need to concentrate our
thought and energy to ascending the hill just ahead.
The inspiration to do to go - to he off will bring progress and prosperity. To promote this sentiment,
let the resources of the banks be used in starting anew industry and business*
You can not capitalize the mistakes of the past, but stock in the future
of our country will yield generous dividends.
Those who have been optimists, those who have played the bull side of the
market on America, have always been the winners in this country. Not in two
thousand years of well recorded history has there been a time when any country
so securely hel$ leadership and domination.
So far as we are privileged now1
to see, the future is ours. Let us have confidence in ourselves, and in one
another, and we shall surely realize the utmost that our hopes and aspirations
have pictured to us.