Banking: Upholding the Status Quo

As James J. Saxon, until recently Comptroller of the Currency, saw it, "Enclaves of monopoly and stagnant, unprogressive banks should not be safeguarded." Implementing that peppery philosophy during his five controversial years in office, Saxon approved 3,806 new national-bank branches, many of which were in direct competition with state-chartered banks. Fighting back, state banks in nine states so far have sued to close some of Saxon's federal branches. Last week the Supreme Court decided that Saxon had stretched his powers too far.

Ruling unanimously on two cases involving Utah banks, the court held that national banks are wholly bound by state...

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