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On this situation frequently referred as to an example of a practical embodiment
Principles of freedom of bank business. Really, any person or
Group of persons could, submitting to a number of requirements, to open bank of issue, and
Bank business has been opened for all on identical conditions. Nevertheless, on
To extreme measure, in two relations interpretation of bank freedom "in an American way"
Differed from more its general treatment in continental Europe. First,
The American banks have been deprived almost any possibility of construction
Systems of branches: position of the majority of the banks operating out of the large
Cities, has to some extent come nearer to position of local monopolies.
Secondly, the national bank legislation, in which frameworks
"Free" banks functioned, ordered the concrete issue
System. Opinion that the American bank organisation has been deprived
Advantages both centralised, and free systems, it is necessary to recognise, on
To the smaller measure, deserving support. Almost any tendencies of development
The systems of the branches which have become in other countries by a part of natural evolution
Bank business, have been unequivocally excluded in the United States. To
Acceptances of the national bank legislation banks were under
Jurisdiction of corresponding states. The bank firm founded in one
Staff, did not possess what possibility of distribution of the operations for it
Limits, through branch opening in other staff, any another
In the way.
As to possibilities of opening of branches in the staff, then
The situation in different states differed. Some states, mainly southern,
Supposed creation of bank branches; in others laws have been passed,
Forbidding their creation. Acceptance of the National law on banks has not changed
Situation. In him it was unequivocally declared that founded according to it
The bank had no right to do business somewhere else, except the territories marked in
Its constituent documents. The law has saved the right to activity of branches
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