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federal reserve board WASHINGTON ADDRESS OFFICIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD SUBJECT: 4 8 4 June 11, 1929 St. 6222 Branch and Chain Banking. Dear S i r : In submitting your r e p o r t covering changes in "branches of member and non-member Tanks during the 12 months ending June 30» 1929> a s r e q u e s t e d i n the Board's l e t t e r S t . ^120 of October 10, 1926, modified "by l e t t e r S t . $620 of December 23, 192?» i t w i l l he a p p r e c i a t e d i f you w i l l c a l l to the Board's a t t e n t i o n any e r r o r s t h a t may have been found i n the memorandum on branches of member and nonmember banks submitted to you with the B o a r d ' s l e t t e r S t . 5999 of December 3, 1928. P l e a s e accompany your r e p o r t on branch banking with a r e p o r t on chain banking i n your d i s t r i c t a s of June 30, a s was done l a s t y e a r . For your conf i d e n t i a l information and use in p r e p a r i n g such r e p o r t t h e r e i s enclosed h e r e with a copy of the r e p o r t s on t h i s subject submitted by a l l Federal reserve agents l a s t y e a r , t o g e t h e r with a memorandum and summary prepared a t the Board's o f f i c e s . I t w i l l be noted t h a t t h e r e i s a m a t e r i a l d i f f e r e n c e i n the scope of the r e p o r t s submitted f o r the v a r i o u s d i s t r i c t s , due no doubt l a r g e l y to the f a c t t h a t no comprehensive d e f i n i t i o n of what c o n s t i t u t e s chain banking has been f o r m u l a t e d . I t i s f e l t , however, t h a t the use of the data enclosed herewith i n the p r e p a r a t i o n of the new r e p o r t s w i l l tend to b r i n g about b e t t e r and more uniform r e p o r t s . In the p r e p a r a t i o n of the c u r r e n t r e p o r t i t i s suggested t h a t no attempt be made to include banks t h a t have s u b s t a n t i a l l y i d e n t i c a l ownership but which o p e r a t e i n d i f f e r e n t f i e l d s in the same community, such a s the a f f i l i a t i o n s t h a t e x i s t between a l o c a l commercial bank and a l o c a l savings bank, nor i n g e n e r a l any a f f i l i a t i o n involving only tiro banks. In forwarding your r e p o r t on chain banking p l e a s e make such general comments on the development of chain or group banking i n your d i s t r i c t a s you think w i l l be of i n t e r e s t to the Board, with s p e c i a l r e f e r e n c e to the development i n your d i s t r i c t of investment t r u s t s and o t h e r f i n a n c i a l c o r p o r a t i o n s organized f o r the purpose of s p e c i a l i z i n g i n bank stoc ks. I t w i l l be a p p r e c i a t e d i f you w i l l make a s p e c i a l e f f o r t to submit your r e p o r t s on branch banking and chain banking i n time f o r them to reach the Board a s soon a f t e r June 30 a s p o s s i b l e . TO ALL FEDERAL Very t r u l y yours, . E. M. McClelland, A s s i s t a n t Secretary RESERVE AGEUTS*
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