CONSOLIDATION OF NATIONAL BANKING ASSOCIATIONS 365 
Senator Grass. Oh, no; it does not. 
Mr. Rarase. Where the State law permits it. 
Senator Grass. No, it does not on that at all. For example, 
suppose the Illinois legislature in six months or a year or two years 
from now would disagree with you in adjudging that branch bank- 
ing 1s essentially an evil, and would pass a law permitting the State 
banks of Illinois, under proper restriction, to establish branches in 
i incorporated towns of 50,000 population or more, there you would 
= have a situation in which your State branch banks might have 
~ branches and the national banks could not have them under this 
. bill. Do you think that is fair competition? 
qn Mr. RaTase. That is very true. fr such a thing happened I would 
np be willing to see that this part of the law was repealed, if such a 
} thing happened. I am sure it would never happen. 
¢ Senator Grass. Then why put it in this bill? 
) Mr. Ratase. To prevent—— 
Senator Grass. fs prevent that from happening? 
& Mr. Raye. To prevent the establishment of branches in States 
where it is not now in effect. Senator Glass, this has been passed 
upon by the American Bankers’ Association and it has been thor- 
pughly gone over and the banks all agree to it, with the exception of 
only a few Penk, pers s not more than 10 or 15 banks. 
I Senator Grass. Your State banks have agreed to it and yet there 
has not been a gentleman to testify here in advocacy of the bill who 
ps not deliberately gone on record as saying that he could not justify 
he proposition that the national banks in one State might have a privi- 
lege denied to national banks in another State. As a matter of Pu 1 
have talked to banker after banker, members of the National Bankers’ 
Association, and very few of them understand the provisions of this 
bill, and when they are told what the provisions are they are amazed, 
ad I want somebody—because WR has done it so far—to justify 
0 me a Federal statute, or proposed Federal statute, that will give 
be ‘national banks of my State of Virginia a privilege which is ex- 
= slicitly denied to the national banks of the State of Illinois. Now, 
f you can do it, I would be very much obliged to you. 
® Mr. Rati. Of course, that is looking ahead to something that 
1 srobably will not happen. 
i Senator Grass. It probably will not happen because you provide 
is 1 penalty here. You attempt by a Fedo] statute to prevent this 
appening. 
: px Ratase. We do not want it to come into the State of Illinois, 
: nk. 
Senator Grass. You do not, but maybe the State of Illinois might 
Lv lereafter decide that it wants it to come in and then the national 
ranks of Illinois will be confronted with a situation where they are 
fe a a total disadvantage in their competition with the State 
by IANKS ¢ 
pe Mr. RaTniE. Well, those States, almost all of them, have passed 
z weislation against the establishment of branches, strictly against it. 
| Senator Grass. Yes; why not leave that to the State those func- 
% jons of the State? Why should you come here and propose by a 
; ‘ederal statute to control a situation in the States? 
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