346 CONSOLIDATION OF NATIONAL BANKING ASSOCIATIONS
Federal reserve system and so I have felt in my study of the Federal
reserve system, that what might be done to make it greater and
more useful to the country is to have a campaign of education con-
ducted amongst the banks outside of the system, and then if some
modifications were made in these administrative features that come
directly down into the every-day life of the operation of these banks,
that we would see a greater addition to the system than is the case
now.
I thank you, Mr. Chairman and gentlemen.
STATEMENT OF CHARLES A. HINSCH, PRESIDENT FIFTH-
THIRD NATIONAL BANK OF CINCINNATI AND PRESIDENT
OF THE UNION TRUST CO. OF CINCINNATI
Mr. Hinscun, Mr. Chairman and gentlemen, the Fifth National
Bank was organized in 1881. In 1908 we consolidated with the
Third National Bank, organized in 1863, charter No. 30. In 1916
I was chairman of the Federal legislative committee of the American
Bankers’ Association, and in my annual report to the convention
I called attention to the fact that legislation was necessary to permit
national banks to accomplish by a direct method what they could
accomplish by an indirect method. I refer to the amendment to
the national bank act of 1865, passed to enable the Bank of Cali-
fornia to enter the national banking system and retain the branches
1t then had.
Senator Grass. 18657
Mr. Hinscn. Yes. Two years after the passage of the national
bank act and for years it was thought that that act was of special
character and referred only to the Bank of California. Several
years ago the Chatham-Phoenix National Bank of New York dug
up this old measure and secured permission from the Hon. John
a Williams, then Comptroller of the Currency, to allow them
to denationalize and consolidate with the State bank having branches
and to immediately renationalize the next day, retaining all the
branches that the State bank had.
It seemed to me at that time, and does now, that we need some
measure similar to the McFadden bill, which will permit national
banks to establish branches at least in the communities in which
they are located.
Senator Grass. In all the States or a few of the States?
Mr. Hinscn. 1 would say in all the States. In 1919 the Fifth-
Third National Bank perfected an affiliation with the Union Trust
Co., a State wa institution, under the same management
and with the same stockholders. At the time we formed that affilia-
tion we thought that remedial legislation would make it possible to
consolidate the two institutions, and I have taken a very active part
since that time in trying to secure the passage of legislation od vey
would make it possible for the Fifth-Third National Bank to absorb
the trust Fo
We found, however, that under existing law that it would be im-
possible for us to retain perpetual trusts of the Union Trust Co.
3 oats our charter was limited in character, limited at that time to
years.
Senator Grass. And now for 99 years, is it?
