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~
_I
BOAR;
□F
G~VERNDR S
OF THE
FEDER
•
(Copy for Mr. Riefler)
ESERVE
SYSTEM
' '
Ch rman cCab:
of the Ar'
ferred to
th A. B.
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S SECTION
STATE OP' MARYLAND
R 2 1940
BANK
COMMISS IONER
UNION
TRUST
BUILDING
BALTIMORE. MO.
JOHN
W,
JOHN 0,
N , :01EP'UTY
rch 27th, 1940.
k
r, L. P. Bethe, Assistant Secretnry,
Boo.rd of Governors of the ederal ~eserve Syste.,
ashin ton, D. c.
Dear
r.
etheo. :
his ill cknoll de our
letter of arc 26t • ro 1 in0 to our co unication
dressed to r. 1orrill under date of nrch lbth.
ay we a ure you th t , e
appreci te very much your cooper tion in letting us have
the info ation cont ined in your communicati on.
Very truly yours,
~
J
:0
IONER.
,
L
.- .
.
-
-
ID IN FILES SECTIO
AY 26 193~
FEDERAL RESERVE BANK
OF" ATLANTA
April 21, 19.39
Dear Dr. Ooldenweisera
I am in receipt of your note of
18th, together with a copy of a letter
Ap
written you by Professor Rapp of Tennessee
and a carbon of your reply concerning reports
of the Committee on Branch, Group, and Chain
Banking. I have also received communications
from Mr. Bethea on the same subject.
Professor Rapp has not yet followed your suggestion by writing here, but I
presume we will hear from him shortly. In
the meantime, a search of our files seems to
indicate, as I have written Mr. Bethea, that
this bank was never furnished with any of the
reports except the "Summary" issued under date
of November 12, 19.32.
I have always wanted the bank to
m. ve the reports for the confidentia l section
of our library, and have written Y.r. Bethea to
that effect. This is purely for your informat,ion, then, but I would appreciate any assistance you can give to me or to Mr. Bethea in
acquiring for Atlanta the full set of studies.
Very truly yours,
Dr. E. A. Ooldenweise r,
Director of Research and statistics,
Board of Governors of the
Federal Reserve System,
ashington, D. C.
--
.
D.
AL RESERVE BANK
OF ATLANTA
11 21, 1939
Oopy toa
• L. P. B thea,
.lasietant Secretar.r,
Board of Qov rnors of th
st ,
Federal Reserv
shington, D. C.
-
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ry truly your ,
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RIR: ch
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of
, 19 9
tj'D IN FILE.S SECTIO!
APR 25 1939
FEDERAL RESERVE BANK
OF ATLANTA
April 17, 1939
Dear Mr. Bethea,
We have your letter enclosing a
copy of your communication to Mr. George
Harrison in regard to the reports of the
Committee on Branch, Group, and Chain Banking. We are willing to comply fully with
your suggestions , which seem to be excellent.
In searching our files, however, I
am unable to discover anything under the foregoing heading except the 11 Summarylf issued
under date of November 12, 19J2. As I recall
the situation there were several of the reports
by the Committee. In this recollectio n I am
wondering, therefore, if it would be possible,
in accordance with the arrangement you have
outlined in your letter, for us to acquire the
additional reports for the confidentia l section
of our library. Will you write me in this
connection, since I should very much like to
have the reports available here in the bank.
Sincerely yours,
Mr. L. P. Bethea, Assistant Secretary,
Board of Ooverno rs of the
Federal Reserve System,
Washington, D. c.
I
I
CEIV
1939 APR 18 PM 3 38
80ARO OF GOVERNORS
F THE
FEDERAL RESERVE SYSTEM
--
--
-
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7 19~~
-
REC ID IN FILE S
FED ERA L RES ERV E BA NK
/L
OF NEW YOR K
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Of THE
FED2HAL Rl:S£RVE SYSTEM
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APR 1 ~ 19~
S-158
BOARD OF GOVER NORS
OF" THE
FEDER AL RESER VE SYSTE M
WASHING TON
ADORE ■■
Of"f'ICIAL CORRE ■ PONOENCE
TO THE IIOARO
April 13, 1939.
Dear Sir:
For your informa tion there is enclosed a copy of a letter sent today to
Mr. Harriso n, Preside nt of the Federal Reserve Bank of New York.
Vey truly
-·-- --
ours,
L. I). Bethea,
Assista nt decretar y.
Enclos re
TO PRESIDENTS OF !ILL FEDERAL RESERVE BANKS
EXCEPT NEW YORK
·-
S-158-a
April 13, 1939 •
. Ir . George L. Harrison, President,
Federal Reserve Bank of New York,
33 Liberty Street,
New York City .
Dear Mr. Harison:
As you know, the repo t~ of the Committee on B anch,
Group, and Chain B3llking were never formally adopted by the
Ji ede al Reserve Boa d F1nd with a fe\', exceptions they have not
been made available to persons outside the System. These few
exceptions, however, have resulted in academic or press citations which have inspired a considerable nwnber of requests for
access to tho reports.
In order to make the useful material in these r~ports
available without discrimination, it is suggested that responsible persons be permitted to use them at the libr· ries of the
Board or Reserve banks so far as such use will not interfere
~1th regular operations. Attention of persons using the reports
should be directed, however, to the fact that they were prepared
as research reports for the informati n of the Board but were
not adopted or approved by the Boa~d s ~n official expresaion
of its vie½s. Citations of the re o ts should reflect this
limitation. A notice to this effect probably should be attached
to each of the reports.
A copy of our rRply to Mr . _______ _ of _ __
University, who requested the use of one of the reports, is enclosed.
Ve y truly yours,
(Si ned)
L. P. Bethea
L. P . Bethea,
Assistant S cretary.
(To be mimeographed)
Sir:
For your infonnation there is enclosed a
copy or a letter sent today to Mr. Harrison, President
or the Federal Reserve Bank of New York.
Very truly yours,
L. P. Bethea,
Assistant Secretary.
TO TH.l!: PR.1W3ID~·rs OF ALL .l!'ED.l!:RAL R..l!:s.l!J:Nl!. BANKo EJ((il!;P'l'
.c;
YORK
( To be mimeographed)
15,
,
.
1
THE UNIVERSITY OF TENNESSEE
KNOXVILLE
•
SCHOOL OF BUSINESS ADMINISTRAT ION
April 11, 1939
I
Division of Research am Statistic s
Federal Reserve Board
'[ashingto n, D. C.
Gentlemen :
The Bureau of Business Research at the Universit y of Tennessee
is undertaki ng a study of bank relations hips within the state, the
first phase of which is to deal with group banking.
Although we understan d that the study you made in 1932, entitled
"Report of the Federal Reserve Committee on Branch, Group and Chain
Banking", has not been released in published - form, we are wondering if
you have typewritt en or mimeographed copies available on the sections
concernin g: (1) Branch Banking in the United States, and (2) Bank
Groups and Chains. If extra copies of this material are not available ,
we shall be very grateful if a loan can be arranged.
We shall appreciat e any subgestio ns or advice you care to give us
on the subject matter or methods involved in such a study as we are
contempl ating.
Thank you for your trouble.
~y~r~
Robert E. ,J tapp
Associate Trofes or of Finance
RER/gb
l'orm •· .R. 131
-
ARD
□ F G □VERN □ RS
c,-
THE
FEDERAL RESERVE SYSTEM
Office Correspondence
To_____,c~o~ar=-ad~o~f__G~o~v~ern==o~r=s_ _ _ _ __
From.u.o....._..::1:::.r-=-•--=G=->o=l=n-=en=w"-'e=i=s=cr:;.:,~+.-,,>-L--~
Subject:
_akin~ the reports of the Cor.1mittee on Branch, Group, and Chuin Banking
availe.ble to nersons outside the Federal
Reserve System.
It is reco'imne ndz reports of the Committee on Branoh,
Group, and Chain Banking be made available to persons outside the Federal
Reserve Systan under the conditions and for the reasons set forth in the
followin~ pnragraphs.
From time to time requests are received for the use of the reports of the Comr:littee on Branch, Group,
d Cha.in Banld.ng. Although most
of the requests huve been refused, there hnve been occasions Yrhen sr•rious
students of problElllls covered in these r~ports huve been given access to
them. lfo definite policy has been adopted, ho•-rever, as to conditions under
which these reports should be made available to persons outside the Reserve
System. Adoption of a uniform plan for this purpose will not only mnl~e for
fairness but will expedite the handline of the requests.
'l'hese reports were drafted origino.11 with a view to publication,
and it was expected that the versions of th set furnished Senator Glass's
subconnnittce of the Senate Banking and Currency Committee in 1933 (now the
11
of'ficie.1 11 edition) were to be published ns Congressional documents. '.!.'he
reports were edited accordingly but were not published as Senate documents.
Because of the unsettled character of banking affairs in 1933 the Board did
not wish to publish them on its own initiative and, as a consequence, they
were withheld from use outside the System.
The copies supplied the Glass subcommittee, however, vrere mnde
available to H. Parker illis and to the Brookings Institution. A book by
Willis and Chapmrn, The Banking Situation, wo.s b sed largely on these reports and cited them extensively, and another by UphUI!l and Lamk , Closed
and Distressed Banks, also cited the reports extensively. Referencetothem also appeared in the Federal Deposit Insurance Corporation's rum.unl
report for 1934. One of the Glass subcommittee sets of the reports was
deposited in the Library of Congress.
'ore recently, several of the reports were made available to an
officer of the Indian Head National Bank of ashua, Hew Hampshire, and in
hearings on a branch banking bill in that Jta.te they were cited specifically. The sections cited in the hearings tere favorable to branch banking
and there was nothing in the form of oitntion to indicate that the reports
did not have the offici 1 sanction of the Reserve System.
Board of Governors, pa e 2.
Beca.us of these public citations, requests for the use of the
reports are received frequently, but until recently most of them have been
ref'used. Such ref'usal effects a partial discrimination ag inst those vrho
cannot come to ashington since in addition to the ibro.ry of Con ress' set
those at Brookings Institution are available to responsible persons outside
the Institution.
In order to make the useful mnterial in these reports avail bl
without discriminntion, it is recommended that they be made vailable to
responsible persons at our library and at the libraries of the Reserve
banks, so f r e.s the supply of the reports is adequate. It is also recommended that the attention of each user be directed to the fact that the
reports were not approved or released by the Board and reflect only the
opinion of the committee ,. hich prepared them, and that they be requested
to frame their citations accordingly.
A draft of a reply to the :most recent inquiry, suggE1sting that
the correspondent apply to the Federal Reserve Bank of ew York, and a
draft of e. letter to the New York Bank suggesting the procedure to be
followed ar attached.
here is also attached a copy of the correspondence
regardin the Uew Hampshire request.
Attachments
FEDER AL RESER VE BANK
OF
PHILA DELPH IA
DEPARTMENT OF"
tarch .31, 19.39
RESEARCH AND STATISTICS
h'. Roland I. Robinson,
Division of Research and Statistic s,
Board of Governors of the
Federal Reserve System,
ashington , D. C.
Dear Roland:
This is to express our deep
appreci~t ion in furnishin g us with a complete set of materia.l prepared by the
ederal Reserve Committee on branch 1 _group
and chain bankin. It will be most valuable
e
or current and future reference work.
certa.inly eppreciat e your efforts in supplying us ith this source material.
The volume which you lent us
·arded under se rate cover
for
is bein
to you.
Best wishes and regards.
Sincerely yours,
(jJ
CAS-h
C. A~..:. ~cz
Ass~nt Vice President
-
CO.
GE OF ARTS AND SCIENCES
CORNELL UNIVERSITY
ITHACA, NEW YORK
DEPARTMENT OF ECONOMICS
29 March, 1939
Dr. v~ooal~ Thomas
Division of Research and Statistics
Board of Governors
Federal Reserve System
hashington, L. c.
Dear Dr. Thomas:
I am writing a thesis on the relationship between stockholders ana creditors
of national banks. I am very anxious to see
the report of the Committee on Branch, Group,
and Chain Banking, entitled Bank Suspensions
in the Dnited States.
Professor H. L. Reed has suggested
that you may be able to inform me where and
how 1 may obtain a copy of the report to use.
I shall appreciate your aid in this matter.
Sincerely yours,
Gerala J. J atchett
GJM:mpe
Murch 17 , 19 39.
t
B
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r
8
t
0
•
Roland I. 1obinson,
Division of Rese rch end
clo u.res 2
RI :l
t tistics.
•e
INDIA N HEAD NATIONAL BANK
1ee1
ESTABLISHED
NASHUA, NEW HAMPSHI RE
Janu'.lry 18, 1939
r . ~- P. Betnea , Assist
o ov rnors
Bo
F eral rles rve System
.ingto 1 , u . C.
c...r
t
ecr t
y
ir :
e'vL~g 01rs of tie l6t1 e closing
ral ,e~ rve
r
r, 1 7 is ue o. t
ctob , 1938 issue •
en r
, c arc aes · rou.,
clct ... s · f iea by br c
t e renort of tn Co ";1ittee on
· c 11
cin f
. t . .:.
r cor
!.Ulit bru
In
,c
ral
.inY is av il ole at t e
e
oft
use
Ke
to
ill 1d vor
and c
of Bost
ere .
tot
you.
a
r inter
or "
in t 1is matter .
S :B
s i. t
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RE:.C
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t1./vw
r . • obin on
r . Voodlie~ Jho
r . Bethe V
Jrum ry 13, 1 .
s
r . . . n:ead a
roved t, e draft of
to President Young, but it wa- not
he left for re
too
itten u
York Tnu ..,day nitht .
J . E. Ho1 ett
opo•ed letter
until after
Copy of this
t o •1r ;eRBank
• A • Young,
t President,
n
letter
sent
of Boso•
Federal Reser
form t'. H. 1'1
-
-
ARD OF GOVERNOR S
OF THE
FEDERAL RESERVE SYSTEM
Offic e Corre spond ence
To
Mr. Smead
Fro:m__ r. Horbett
IJak January 12, 1?39
Subject: Release of data contained in
reports of Federal Reserve System
Co.rnnrl.ttee
on Branch, Group and Chain
1
Banking.
The following informati on, based largely on File_.Jt21 .llO, indicates
the extent to which data contained in the reports of the Federal Reserve
System Committee on Branch, Group and Chain BB.lli{ing have been released from
time to time:
ay 25, 1933. Mr. Goldenwe iser transmitt ed the last three volumes
of the Committe e's reports, ~aking 10 volumes combined, to Senator Glass.
August 4, lfil. Gover~or Black wrote to lr. H. Lane Young, Executive
Vice President of the Citizens and Southern N~tional Bank, Atlanta, Georgia,
denying the request of the Associati on of Reserve City Bankers for permissio n
to publish the reports prepared by the Federal Heserve System Committee on
Branch, Group and Chain Banking.
August 9, 1933. Mr. Goldenwe iser, as Chairman of the Committee, sent
one copy of each of the ten volumes of the Committe e's report to the Governor
of each Federal eserve bank. A sample copy of Mr. Goldenwe iser's letter is
quoted below:
11 I take pleasure in sending you under separate cover
copies of the reports of the Federal lieserve Committee on
Branch, Group, and Chain Banking , which the Governors expressed a desire to see with the view to passing on the
desirabi lity of printing them.
"The various reports, which are being transmitt ed,
include: (1) Branch Banking in the United States ; (2)
Branch Banking in Californi a; (3) Branch Banking in England; (4) Branch Banking in Canada; (5) Banking Groups
and Chains; (6) Changes in the Number and Size of Banks
in the United States, 1834-1931 ; (7) Bank Suspensio ns in
the United States, 1892-1931 ; (8) 225 Bank Suspensio ns,
Case Histories from Examiners ' heports; (9) Banking
Profits, 1890-1931 ; (10) Dual Banking System in the United
States. I am also sending you a revised Summary of the
Reports and, as our supply of charts is limited, I shall
be glad if you can convenien tly return the copy of the
earlier Summary which was distribut ed at the Governors '
Conferenc e last autumn."
August l_'.L. lfil. ir. orrill advised r r. C. W. House, anP..ger,
Trust Companies", New York, that the re ort of tl1e Committee was voluminous, h, d not been published , and was not available for distribut ion.
11
Mr. Smead -
2
January 16,. .1214. Mr. Morrill advised Sena.tor rthur R. Robinson
that the Committee drafted a report which was quite voluminous, that the
Board decided not to publish the material, and that no copies were available for distribution.
• ~Orrill sent to lr. I. J. Fulton, SuperinFebruary 7, 1934.
tendent of Banlcs of the State of Ohio, certain statistical material included
in the compilations of tne Committee on Branch, Group and 0hain Banking.
The statistical tabulations pertained to t~e banking structure of Ohio,
in~ll,~g bank changes, failures, and earnings. Mr. ~orrill's letter stated
thatvth~"wishes it to be understood that in any use made of the information
it is not to be referred to as having been released or made available for
such use by the Board or the Federal eserve System Committee on Branch,
Group, and Chain Banking".
arch_?, 1934. Mr. Morrill advised .Jr. Tnomas F. Burchill, Chairman
of the Joint Legislative Committee on Banks (of tne Legislature of New York),
that the report of the Committee was voluminous and had not been published
r. Morrill's
and that, therefore, no copies were available for distribution.
letter stated further, however, that the Federal Reserve Agent at New York
had been requested to make available to the Joint Legislative CornrJittee the
copy of the report on file at the Federal Reserve Bank of New York, "with
the understanding that in no event will your committee quote from or cite
the report or publisn any of the tables or information contained therein but
will use the report only as a basis for study to enable the committee to
re ch conclusions".
• Ervin F. Stepanek, Assistant
October 21, 1938. Mr. Smead advised
C shier of the Peoples Savings Bank, Cedar Rapids, Iowa, that a copy of the
report of tl1e Committee entitled "225 Bank Suspensions - Case Histories from
Examiners' Reports" was available at the Library of Congress and at tne
Federal Reserve Bank of Chicago, and that a letter had been sent to the
President of the Federal Reserve Bank of Chicago suggesting that he communi• Stepanek and make available that bank's copy of the report for
cate .vi.th
Mr. Stepanek 1 s use at the Federal Reserve banx.
November_'.Z,. 1938. In response to a request from Sister • ercedes,
Chicago, Illinois, for a copy of the Committee's report on 11 Branch Banking in
• Thomas advised her that the report had not been pubthe United States",
lished and, therefore, no copies were available for distribution.
Although the Board in 1934 laid down the condition that those to whom
the reports were made available were not to quote therefrom or publish any of
tne tables or information, or cite the report, such quotations and citations
have in fact appeared. For example, t e book entitled "Closed and Distressed
Banks" by Upham and Lamke, issued by the Brookings Institute in 1934, contains
a number of tables taken from or based on the Committee's reports, with footnotes giving full credit therefor, also a general statement in the author's
cknowledgment giving such credit. Likewise, the book entitled "The Banlcing
Mr. Smead -- 3
Sit1atlo" by Willis and Chapman gives general credit for such matter in the
Preface, as well as specific credit in footnotes to tables and other data
contained in the book.
President Young of the Federal Reserve Bank of Hoston advised me by
phone on Januar~ 11 that he has been holding the reports confidential but
would be glad to make the desired material available to lew Hampsh"re bankers
if authorized to do so by letter. I got the impression from him that he may
have been approached by New Ha~pshire bankers for the data in connection with
a move~ent there for establishment of branch banking, but he did not feel he
could make the reports available because he understood they had been sent to
him confidentially. I told him that the material is now made available at
the Board's offi~es, upon specific requests therefor, because it is now
generally known that the reports are available at the Congressional'Library
and because the material has been quoted, with full credit therefor, in books
that have come to the attention of the general public. The set at the Congressional Library was, I believe, turned over to the Librar-f Uf Senator Glass.
Attachments.
I
J,"orm
L IL 1;11
-
-
ARD OF GOVERNO RS
CF THE;
FEDERA L RESERV E SYSTEM
Offi ce Corr espo nden ce
Date
l ,
3
To
From
t
r
•
th
•
ron
JEH/ab
.t
{IND IAN HEA D NATIONAL BANK
ESTABLI S HED
18 5 1
NASHUA , NEW HAMPSH IRE
J uar ~,
1939
d of Governors of
eral Reserve ystem
stit tion Avenue at 20th St .
as .ingt
, D. C •
e 1t Lemen :
.e are very desirou s of obtainin g tne report oft e Fe c 1
Reserve Com:nittee on branc , group and chain bwuing e.1titled ,
"Brru en Banking in the United &tates" . It is our understa nding t nt t e report wa publisne d in 1932 . In the event
t E:re are more recent figures · co nectio.1 ·ith f i 1 res Md
su..., nsions c assifiea as between branc.1 fill i unit ba.n rn, an
nation 1 and state ban~s , ~e woul v ry muc a pr ciate your
forwar ing t.e infor~a tion to us .
In tne event tis aata is not obta· able t.rou h your of ices
e ,oul greatlw appreci ate your a vice a to ,ner v might
procure it .
yours ,
Hertrt._. ,
Assis ant C hier
•
~
: BKV
.:.i .
1
14
--
--
_ a t _,.
fol
-
.
1
J
Form F. R. 1:\1
-
I
~
RD OF GOVERNORS
OF" THE
FEDERAL RESERVE SYSTEM
Office Correspondence
To_ __
lfr..._ Carpenter
From_
u.r..__ S.maad
Date
August 26, 1938
Subject: ____ _
'f.
In accordance rd th your telephone re@e st, there is given below
tre
expenses, as reported by the .Federal Reserve Bank of New York,
of the Branch, Group and Cham Banking Conurittee.
These figures
include total e:::penses of the Coromittee except certain overhead
expenses, principally the
1930
1931
1932
193.3
salar:ies of the memberG of the Conr:ri.ttee .
,; 17,880.9.3
69,135.9.3
56,810.92
7,524.13
.;151 ,411.91
For your information there is also given below the
expenses,
calculated on the srune basis, of the Cor.unittee on J~ember Bank Reserves:
19.30
1931
1932
17,119.44
11~,361.46
_J.~111,06
fl
(;0
(1930 - 19 3)
and
J_
1 l . 07
7, 0 7. 1
2, 126 . 61
2,169. 57
p i
d
859. 24
77'3. 31
2, .,9. 2
75 . 3
oli
City
f
!/
21 , 480 . 90
Tot 1
;1 . 63
l~, 52 . ,;16
5 851.53
5, 737 . 90
J , LS0 . 67 y'
3, 132. 61
11, 747. 2
3, 045 . 59
2 272 . 11.
;. , 152. 00
7,612 .66
1 98 . 3
95 . 78
65 . L5
9 5. 93
257 .
, 001.:9
l , 19 . 1
2, 523 . 19
, 10. 50
5 17. 15
1, 6 7. 52
171. . 1.4
219. 4
219 . 91.
5J0. 89
8, 7
112. 21
4
. I.;
.148.
38. 9
24 .14
32. 22
y
21
y
. 26
. 55
. 67
. 701/
84 . t4
362 . 19
114 . .0
41 . 11
49 . o6
622 . 95
644.13
1, 460 .70
co
1932
!/
1,111.02
y
87, 016. 86
--- --;/
2./
~orm 96, Lee
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]
....
=' ,
y
y
y
56, 810 . 92
3. 6.l
33 . 10
196. J.,,
750. 3
y
ber ,q31 .
combin
fi
of 1, 624 . 97 r ort
i ttee on
, roup
c
n b .......,.~..erv s
h·
p rs to
ncorrect .
II of
t;lA i tern II
r · on o
cial
99t,. 61
embEr 1932,
ch runoun
aently incluaes e
se ~
hand for 1932
t
t~l
u lied ov
on
i m
dum to r . U rpent r of AUgu~t 6, 1938.
ve
a
emb r 1932, sho
3. 15 fo cornrni tee
reio
Yo
- - RD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
Office Correspondence
To __~F~1=
· 1~e~s' - - - - - - - - - - Miss Poeppel
•
----- e
•D IN FIIP.·
JAN 20
L/-i,,
~~,
//
Date_Janua
Subject:
Reports by the Committee on
Branch Grau
and Chain Banki_Eg
Reference is made to Mr. Carpenter's memorandum o June 12, 1955,
in which he states in the last para.graph "The official file copies of the
ten volumes referred to above are in the safe in the Assistant Secretary's
office".
In compliance with Mr. Carpenter's instructions these volumes
have been removei from the Minute Section safe and placed in the Files
Section under the following classification:
421.118-1
421.118-1
421.118-2
421.118-5
421.118-4
421.118-5
421.118-6
421.118-7
421.118-8
421.118-9
421.118-10
421.118-11
Changes in Number and Size of Banks (Part 1)
Changes in Number and Size of Banks - Appendices B&C (Part 2)
Dual Banking System in US
Case Histories of 225 Bank Suspensions
Banking Groups and Chains
Bank Suspensions in US 1892-1951
Banking Profits 1890-1951
BranchBanking in US
Branch Banking in California
Branch Banking in England
Branch Banking in Canada
Summary of Reports
Mr. Smead's copies that were formerly used as file copies have
been returned to him (see memo to him of 1/20/58).
.Form F. R. 131
-
ARD OF" GOVERNORS
•
OF' THE
FEDERAL RESERVE
Office Correspondence
_ _Smead
_ _ _ _ _ _ _ _ _ _ __
To _ _ Mr.
From
Miss Poeppel
Date~anua.ry 20! 1958
Subject:
Reports by the Committee on
Branch, Group, and Chain Banltl!!g
In accordance with your request we a.re returning your personal copies
of reports made by the Branch, Group and Chain Banking Committee as follows:
Changes in Number and Size of Banks (Part 1)
Changes in Number and Size of Banks -Appendices B & C (Part 2)
Dual Banking System in US
Case Histories of 225 Bank Suspensions
Banking Groups and Chains
Bank Suspensions in US 1892-1951
Banking Profits 1890-1951
Branch Banking in U. S.
Branch Banking in California
Branch Banking in England
Branch Banking in Canada
Summary of Reports
The labels on the folders have been changed and now carry the individual
title of each study and the notation °Mr. Smead's copy".
This will identify
the folders in case they are ever sent to the File Room by mistake.
•
r
).
,
1
ma:i~er.
11
r
1
•
or
rt
I
Libr isn of Con
hingt on, D. C.
r
•
, 1
,
Con
copy
er
r
fill of 1 2
Board
cc
ter.
r
en
Curr
rt
rd.
mi
on
er,
irin
to
t
o
let
co lying
trul
L P.
"
tit
year ,
,
L
tant Seer t.ary
-~ cl;µ
(
Honorable Herbert Putna~
Librarian of' Congress
1
ashington , D. C.
De9.r .ir. Putnam:
Receipt is ackno,dedged of your letter of September 9, 1935,
expressing a desire to have on file at the Library of Congress,
particularly for purposes of historical recora, a copy of the
mimeographed report of the System ConrnitLee on Branch, Group and
Chain Banking.
As you know, the report is quite voluminous
(consisting of eleven volumes) and was pre Jared by a co. ,nittee
composed of representatives of the Federal Reserve Boaro and the
Federal Reserve banks auring the f'a.ll of 1932 and succeedin
The report was never finally passed upon by the Boa.rd.
0
winter.
Copies
havB been furnished, hm,ever, to the Senate Committee on Banking and
Currency, where they are available to Senators aesiri:i.g to see them.
The Boa.rd regrets that it has no complete sets left available for the
pu.r~ose of compl1 in[ 1ith your re uest.
Very truly yours,
Liston P. Bethea
Assistant Secretary
(this draft of letter sent to r. Bethea by Dr. Goldenwei er on September
18, 1955, covered by a note suggesting that it be used in modified form
jcb)
FEDER AL RESER VE BOAR D
WASHING TON
ADDRESS OFFICIAL CORRESPOND ENC&: TO
THE FEDERAL RESERVE BOARD
Honorable Herbert Putnam,
Libraria n of Congres s,
Washington, D. C.
Dear Mr. Putnam:
Receipt is acknowledged of your letter of September 9,
1955, express ing a desire to have on file at the Library of Congres s,
particu larly for purpose s of historic al record, a copy of the mimeographed report of the System Committee on Branch, Group and Chain
Banking.
As you know, the report is quite voluminous (consis ting of
eleven volumes) and was prepared by a committee composed of represen tatives of the Federal Reserve Board and the Federal reserve banks
during the fall of 1952 and succeed ing winter.
The report was never finally passed upon or publishe d by the
Board and, since the expense of printing it would be large, the Board
has not felt that it would be justifie d in incurrin g such an expense.
1ioreover, on September 22, 1954, the lat availab le complete set of
volumes was transmi tted to Mr. R.H. Sparkman, Acting Clerk of the Senate Committee on Banking and Currenc y, so that it might be readily
availab le to any Senator desiring to see it.
In the circums tances,
the Board regrets that it is not in a position to send you a copy of
the report for the purpose you have in mind.
Very truly yours,
LPB-jcb
Chester Morrill ,
(file copy of this draft of let- Secreta ry.
ter initiale d by Mr.
Bethea and Mr. Morrill)
LIBRARY OF CONGRES S
WASHINGTON
OFFICE OF THE LIBRARIAN
September 9,1935
Sir:
We have recently noticed tha.t the Library of
Congress does not have a copy of the mimeographed
re ort of the branch group and chain banking committee
of the Federal reserve system prepared in 1933.
would seem vecy desirab le to have
A
It
copy on file at the
Library of Congres s, particu larly for purpose s of
historic al record, and we hope that it
ill still be
possible to have a copy supplied , subject to whateve r
restrict ions you may deem necessa ry governin g its use.
With appreci ation for any attentio n you may
be able to give to this matter, I remain
Faithfu lly n s ,
_,1,M /<(~
Libraria n
Hon. Marrine r S. Eccles
Governo r, Federal Reserve Board
Washington, D. C.
·-
Corre spond ence
FEDERAL RESERVE
BOARD
Subject:_
From
·-
P o nn. · o. lll l
Of. fice Co rre spo n
FEDERAL RESERVE
COARD
Subject:
eto
)
.,,,,,,,,-I h"ve recei ved a lette r from •..,. Crm ley, Chairrr.an of
the
F dera l Depo~it Insur ance Ccrp orati on, in hich he requ
ests that
•••••••• •
..•... ..... h'i :t>e furni shed ·ith
·······
...... ...
the·•.Fede ral Rese
a
complete set of the volumes prepa red by
rve Committee on Branch , Group , and Chain Bank -
.......
........
.. ........
The last con~ lete set of these volumes thich ,e
had
c
recen tly sent to :tr . Sparkman, Clerk of the Sen~ te Comm
ittee
on Ba.ru·i ng and Curre ncy .
e could , ho,ev er, send the Corpora tion a copy of each of the ten_volumes , but in th
cuse of
t o o these some of the exhi bits ·roul be incomol te
. This ,
ho eve , oul~ not mter iully affec t the usefu lnesu of
the
volumes .
I r co end that the set be sent th~m for ~he use o
• Cro lcy and other exec utive s o the Corp oruti on .
✓
10
52
I
l
C -w
...
I
0
t,
of
I
,
•
r
V
CM-
,
'
AY 2 7 l 40
I
0
Forni. o. 1:n
Offi ce Cor resp on
To
From
r._Morrj,_11
FEDERAL RF.SERVE
COARD
Subject:
--
Date
September 8, 1934
M_r.. Golden ei • e
•, e
I find that there is one comple te set of the reports of
the Branch Banking Committee availab le, in additio n to the
file set, the Board' s set, and my own set.
16
852
• FREDERIC C. WALCOTT
W. H. SAULT
SECRrTA"Y
CONNECTICUT
WASHINGTON,
9•r•
t /J
I
9 08
Septemner 6, 1931.
Cr
I
:
n:
I wou 1d oe pleased i:f you
me at
Reserve
oodmont,
ould send to
onnecticu t, the da'ta the
ederal
oard collected several ye rs ago when it
made o. study of
rmoh oenking and the earnings
of the mE1Dber t>anks.
I bel1 ve this was put>liBlled
in a number of vo1umes of
1meograph ed shee e.
If
you wi 11 send thi a to .me at 'Joodmon t, Connectic ut,
I will deeply appreciat e it.
Sincerely yours,
eder al rte serve Bo d,
Tre a w.ry JJepartmen t •
asnin ten, D. u.
sES
.,
0
.'9:,4
.
Gentle
(i.
Cl(
7,134
r.
V
r
•
l•orm ·o. 131
0 fice Corr espo nden ce
FEDERAL Rf.SERVF.
£:OARD
J
Subject:
•
rr ll
Fro~
w
1
26,
,
0
•
t
•
-
-
• C
JU
C. I \/
f!B.c
TREAS URY DEPA RTME N~ d
WASHIN GTON
'!;C'O IN FILES SECTI N
June 26, 1954.
MAY 2 71940
J.f'-1
Dr. Golden eiser:
D
I
ould
pprecia te very much if you could
e availab le for the u e or the group who
e making a banking study for the Tre sury under
my directio
this
branch banking in the
the
eder
er, a copy of the study of
i ted States
rep
t 0
d by
Reserve Committee on branch, group
and chain banking .
Dr. E. A. Golden ei er,
Directo r, Div"sion of Research & St t i t c,
Feder R serve Bo d,
S oreh" Buildin g.
JI
MAR
,
,
RC-sb
C
8 J.
AR
8 b34
,
'
,
,
AT
YORK
FEDERAL RESERVE
BOARD
•
Date March 6, 1934
Federal Reserve Board
Carpenter
.,.
The attached letter is called to your special attention
the reason that it contemplates making available to an outside party a copy of the report of the system committee on
branch, group and chain banking.
2 -84.96
•
FO
THOMAS F, WURCHILL.
CHAIIUO.N
S
NfW YORII, ADDI
7 W, 24TH ST.,
W 'rOII
CITY
CHAflLI:• P'. CUMMING••
COUNstL
PAUL Q, IIIIIILLY.
AS10CIATI C0UNHL
, CHl:N&:Y,
NIIL80N
VICE CHAI RMAH
GEOPIOC V. MC LAUGHLIN
JACOa H. LJVING9T0No
HCUTAIY
JOINT .:;: GISLATIVE COMMIT'r E E ON BANKS
JOHN T, MC CALL
JAMl:9 J. CAAWP'OIIID
■ UIT
LOAD
JAMll9 R. AO ■ lN90N
WILLIS H, SAIIIGIINT
JAMIIS J. WA09WOIIITH
HAROLD C, 09TERTAG
NICHOLA9 J, ll ■ Cl'IHAIIID
WILLIAM C, JIOTTER
HAftOLD 8TONI:
CAPITOL
HARVl:Y
o.
01 ■ 80N
ALBANY, N . Y.
February 26, 1934.
Federal eserve Board,
Treasury Building,
lashington, D. C.
Gentle en:
The above named Committe has been informed by
on Banking and Currency of the United States
Committee
the
Boara has, under the cir ction and suorevision
your
that
Senate
of r. Golden eiser, prepared a survey of the history, operation
ana results of branch, chain and roup ban~ing in the United
States, England and Canada. It is our understandin g that this
survey as com eted in the su .. er of 1932 but has never been
officially published.
his Co ittee at the resent tiJe has been giving a rea~ deal of thou t, consideratio n ana study to the
subJect of branch bankin , but up to the present e have had
no co pre ensive study available, such as the ork done by
r. Golden eiser's Co ittee. ie ould oe deeply gr teful if
it ould be possible for yo r onorable body to er it tis
comwittee to obtain a copy of such parts of r. Gold n eiser's
ri a e to our or. It is, of course, understudy as are
stood that in no event ould this com&ittee at ny tiwe quote
or cite r. Golden ei er's study nor p blish any of the tables
e d sire to use it si ply
or i forMation cont ined therein.
as a basis for stua.y and to enable us to r ach so 1,e defini t
conclusions in the att r.
hanki g you for your courtes in this atter
and trustin that you ill be favurably dispos d to~ rd our
re uest, I am
Very r spectfully yours,
n~ ✓-~
CH I
--
·Form . · o. 131
Offic e Correspo
ce
To _____ M:r. Gol d_e_nweise:r_
From
FEDERAL RESERVE
BOARD
Date Janu ry 24 • .l9J4.
Subject:
Mr. Wickens' m teri
Mr. Parry
R£c•o IN FIL~~ Sf;C?ZOH
MAY 2 71940
ll
)/
Mr. Wickens came to see me again this morning
the mater1 1 that he prepared for the Corrrnittee .
bout
His primary
interest, as I understan d it, would be to enli~t your good
offices to obtain for the volume prepared by him whatever
chance of nublicati on at the hands of Senator Glass may
attach to the volumes already in the Senator's hands.
It was my su~gestio n to him that a request be addressed to you--as by this memorandum--to release for the use
of the Departmen t of jgricultu re any material contained in
fr.
it
ickens 1 study that could be used
ithout carryine
ith
ny intimatio n of a connectio n with the Federal Reserve
Sy tem or the branch, group and chain b nkin
Some such
and on the
rr ngement as this
hole desir ble.
com.~ittee .
ould see~ to me both possible
:Form . o. 131
F EDERAL RESERVE
BOARD
Office Correspon
To
Mr. Golden\\'.e..i.aer
From
Mr. _Jila. tner
•
Date
Subject:
41 B
I
I
k Op •nti .., Fil
January_:__z_._ 19}4
Request for Corraiittu.. Volumes
~
411'0
On Friday, Mr. Sparkman called Mr. Smead and asked for two sets
of the volume of the Report of the Committee on Branch, Group, and
Chain Banking.
Mr
Smead thinks that Mr. Sparkman, whom he has known
for some time 7 is an employee of the Senate Banking Commit.tee, but I
am unable to find hi~ name in the Congressional Directory.
Mr. Smead has no enthusiasm for granting the request and neither
We are without information as to the purpose for ~hich the
have I.
volumes are wanted.
I should be pleased if you and Mr. Smead should
re
decide not to send them
Will you comunicate with him?
The available number of volumes of each report no~ in the files
are:
(
Branch Banking in the United States
11
11
in California
11
11
in England
11
11
'
in Canada.
Banking Groups and Chains
Bank Changes
Bank Suspensions
Banking Profi ta
225 Bank Suspensions
Dual Banking
• Some appendices not available.
3
7
17
19•
s•
11•
4
2
1
1
10
85:.!
r 6 • l
3.
i
11 •
t 1
l
i •
oul
tor
OU
tio
t
1
into
•
ry.
--
FormNo.131
Corre spond ence
To
FEDERAL RESERVE
BOARD
• Blattner
Date November 14, 1933
Subject:
orbett
From
Condition al Re orts of Natio.1al
Banks, r ovember 15.,. 19_.Q_.
• ro
I am returning nere ·th the
for
nic
c,
ovember
ist (58 pa es) of national banks
-3 n, condition re
Comptrol ler's uffice ~
.J.e Co
ts
ere borro ed from t e
·ttee on Branch, Group
The re orts the selves are also bein
.d Chain Ba
sent to ou nere ith under separ~te
cover.
You d.11 note that cert~in banks shown on the att~chea l i t
have been crossed out E.lld marked
.Listed more than once.
es a
it. t.
dup 11 •
In each such cas
You Y>ill also note that in a fe
the lit, have been
es of the banks, as shown
ona
11
earin
as
i stances the
ended to corres-
on the conaition re orts, on tne us umption
that the names , ere incorrect ly sho'ii'D. in tr..e list.
returned for the follo,·
the bank
Re orts hci.ve not been
five b ks, all of ,nicn are
arKed .ith a
red aasn in the attached list:
Lake vorth, tlorida
Lumpkin, Geor 0 ia
Lot.isvill e, Kent cl
Lenapah, OkJ.anoma
Brok Bo, Oklaho a
First ationa..1. Bank
ational Bank of
ational Bc..nK of entuc
Citize s ationa.L B~
irs.., atio 1 Bank
You
Broken Bo, 0
In one case
a re
ill note that the list she ,S the .First
ahoma, the last one oft e iiv
e wnended t e cit
oc ted tnere but.or
rt for ab
BroKen Boi .
Assuming that the cit
Arroi both on
tion in the
to Broken
e ~7 l.lld pa5 e
· sti.t
of th rirst
Broken Bo) Oklahoma .
shown abo e, into
row,
laces .
inasmuch as there yas
located in
ort 1or ab
should have b en
nown as Bro en
8 tnen, 01 cuurse, there
ational B
ational Bd.nk,
as a
, Bro en Arro
u lie
(not
10----85:il
r. Blattner -- 2.
All of the re orts mentJ.oued
ic!Cens' office.
missino•
ere returned fro
r.
e cannot account for the fur (or five) re orts
FEDE RAL RESE RVE BOAR D
WASHIN GTON
ICI
CORRESPON DENCE TO
ljjl6.L RESERVE BOARD
X-7674
November 9, 1933.
SUBJECT:
Report of Committee on Branch ,
Group and. Chain :Sar:.1d!1g.
Dear Sir:
There is inclose d, for your inform ation, a
copy of a letter which is beiig sent to the Chairman
of the Govern ors' Confere nce today with regard to the
recomm endatio n tno.t the System Committee on :Sranch ,
Group and ·chain Ba11king be recons tituted for the purpose of bringin g up to date the report previo usly
submit ted by it.
Very truly yours,
Inc lo sure.
Chest er 1v;orri 11,
Secreta ry.
TO GOVERNORS OF ALL F. R. BAWKS EXCEPT SAi FRANCISCO.
r- -- -- -- -- ~
I
X- 7674-a
QQEI
l ov ember 9 , 1 33 •
Mr. John U. Ca~kins ,
Cnairman , Govo.,: ors' Conference,
Feder".l Resc"·v~-; Ba:1J.: 0f San Francisco,
Sa;.1 Fra;.1ci sco, Cc;.li fc::: n.J..a .
Dear Go-;ernor Call:ins :
At the r.ieetinu of the Governors
I
Confere·1ce ui th the Federal Reserve
Board on Octo"oer 12 , 19:33, ~·ou reported that the Conference had voted to
recornme;.1d to t:1e Feder~l Reserve :Boa:!:'d the reconsti tut:ng of tr.e Comrri ttoe
on Br8.nch, Group and C.1::1.ir.. Bank:i.:1g, for tho purpose of rune11ding the report
previously submitted by the Corr:mi tteo L1 the light of events ·which have transpired since tho report uas pre.J. ared .
The Federal Reserve i3card has given careful consideration to the
recommendation of th~ Co,1fere:i1ce, and has dee~ cled th .. t it should be held in
abeyance , perhalJ s u_1til after the prese::.1t cmvrge:1cy is passed.
Further cor.-
sideration uill be give:1 to the matter uhen t. o :aoard is in a pocition, in
the l i ght ol later circumstances , to determine TI:i.1other further revision of ,
and addit i on to , tho Comnitt e r0port uould be desirable .
A copy of tl · s letter is being .i:or,w1·ded to thv gov vrnors of all
other Fcd._,ral rosorvc banks .
Vory t_uly yours,
(Signed) Ch~st~r Morrill ,
Secrcta17 .
••
FEDERAL RESERVE BOARD
WASHINGTON
ADDRESS OFFICIAL CORRESPONDENCE TO
THE FEDERAL RESERVE BOARD
X-
1~ 1
November
Subject:
, 1933.
Report ot Canmittee on Branch, Group and
Chain Banking.
Dear Sir:
Tb.ere is inclosed, for your information, a copy ot a
letter which is being sent to the Chairman of the Governors'
Conference today with regard to the reco
endation that the Sys-
tem Committee on Branch, Group and Chain Banking be reconstituted
for the purpose ot bringing up to date the report previously submitted by it •
Very truly yours,
Chester Morrill,
secretary.
TO GOVERNORS OF ALL
:rn
BANKS EXCEPT SAN FRAi'l:IroO
, 19
bject:
::>
R
nch, Group
•
d
r <-ir:
ere i ·tnclo
1 tt r
t
hie
or your 1 fo
tion,
th
r
C
fort
itt
0
b
of
rnor '
rd to
t
cop
t
ch, Oro p
ot bringi
itut
r port pr
it.
0
io
l
sub-
'
r
f
11
t
f
pi
1
• r
•
C-jcb
•
co,
r
0
oft
co
it
or '
t
rv
ob
0
d
0
h
to
r
t
0
in
11
t
0
ir d
0
C
ld 1
0 -
1
11
ot 1
r
r
r
ot,
of
0
C
1 o
r
-
l<'ormNo. 131
fice Correspon ence
FEDERAL RESERVE
BOARD
Date Nov
Subject:
From
llr.. Jlorrill.
aro
iving
cost of bringing th r port of t
Chain Bankin
a
up to da
stim te of the
tee on Branch, Group and
conaid rd at the meetin of the Federal
Reserve Board on ovember 1, and it was voted that the r comm ndation
of the
ve nors• Conference that th System Commit
b reoonsti tuted
and it report brou ht up to date b held in abeyanc for an indefinite
period, possibly until
Board would be in
ing, to d t rm1n
mittee report
f
rt
pr ent emergency 1 p
po ition, 1n th
li ht
or
circum tance
ed,when the
then exist-
th r f'urther r vi ion of and ddition to the Com-
•
uld b d sir bl•
10
85:t
i •
I·orn . ·o. 131
FEDERAL RF.sERVE
BOARD
ffice Corresponcle nce
To
From
Date
October 25., 1933
Subject:
• orr
Branch Banlcin
,Jr. Golden1eis•~~
In com liance \·it
Re ort
the Board's request, transmitted in your
'llemor::mdu.m of October 21 ,j I sub:-;i.i. t the follm,ing state ent about
the probable cost of bringing up to dat~ tie re~orto of the Committee on Branch, Group, and Chain B9Ilking.
visions should be such as to carry the
such data for 1933 as is available.
Pr sum bly the re-
aterial trough 1932, with
The statistics in the volumes
as they stand are carried through 1931 in most instances
general data for 1932.
ith only
The detailed analysis of bunking profits
covers t~e years 1~~6 to 1930.
From the point of view oft is inquiry, the reports can be
grou ed into three cla::;ses:
(1) those on Brc..nc:1 b:mkin"' in :::.:ngla.'1.d,
Br nch banking in Canada, and 225 bank suspensions, which
ill re-
q2ire little or no revision, beca se they are largely descriptive
in c1:iaracter.
(2)
Branch bankine in the United States, Branch
banking in C-liforniu, Banking groups and chains, and t e Dual
banking syste , whic':i
ould req ire revision on the basis of
ore
recent developments, but at a smaller cost than would be req ired
for the volumes in the next group.
(3)
Changes in the number and
size of' banks in the United States, 1834-1931; Ban'c suspensions in
the United S+ates, 1892-1?31, and Banki g profits, 1890-1931,
hich
would require a great deal of ~ork and expense to br~n~ up to date.
These volu:Jes are statistical and the statistics are based largely
on the tab'D.ation of original sched1les, , ich are,; both complex and
nwnerous.
This is particularly true of Banking profits.
•
r.
orrill,
-
October 25, 1933
,2
The sum:nary of the reports
ould have to be r vised if the
other volume. are revised.
e an accurate estim te of the cost of
It is· possible tom
Th
the revisio~s , but I am inclined to state it thi~ \ay .
seven
non- stati tical volumes could be brought up to date for approxiately 4 , 000 .
The volume~ on b ~ks spensions and on changes in
the number and size of banks could be revised for an additional
4, 000 , and the volume on profits and the sum.~ary
f rther
7 , 000 to revise .
Tn
up to date , therefore , coul
ould not be
change the pict re sufficiently in
stantiall
ould car
orth the money to
the data thro gh
hich vould involve considerable dela
Inclusion of a d"tional d t
and the delay .
The voluoes
N V.
and add"tional
for 1931 and 1932 otl.d not
t c cost
y opinion to j stif
s they stand , I believe,
corr ct picture of b kin
to th 1933 CILs:s .
es
be estimated at not less than· il.5 , 000 .
undert ·e this revision , unless it
cost .
vol
cost of bringing all t
y judgment ould be th t i t
the year 1933 ,
ould cost a
ive
in the U it-d St te
subrior
Copies s nt to Governor Black and Messrs. Hamlin, Miller, ~runes, Thomas and
Szymczak.
•
•
I
-
•
t
1 ' ' 0 ~ . 131
•
-
Office Correspondence
To_
Mr.
FEDERAL RESERVE
BOARD
•
-
Date October 21._19-3.3_
Goldenweiser
Subject: Estimated Cost of Bringing U~
to Date Branch Banking Connnittee•s Report.
From
9 l't•
Jo· 852
To bring up to date the 11 volumes. including the Summary, of the re-
port of the Connnittee on Branch) Group, and Chain Banking, I do not feel
that it would be safe to set the cost at a figure of less than $15,000.
Among the Committee•s volumes. there are at one extreme those volumes
which could probably go untouched.
225 Bank Suspensions.
In this class are England, Canada, and
At the other extreme, there are three volumes con-
taining :man:y complex statistical series. which should probably be brought
dorm to the end of 1932.
These include Profits, Changes. and Suspensions.
I suppose it would not be feasible to consider reflecting in the Suspensions
and Changes volumes the events of 1933.
The other four volumes, Branch Banking in the United States, Branch
Bailk:ing in California, Group Banking, and Dual Banking, occupy a middle
ground.
I doubt if any one of them would require the degree of revision
necessary in the three volumes previously mentioned, but in the case of
each of these four, some revision, more or less, would be desirable.
Revision of the Profits volume ·would probably require the most work,
both here and at the reserve banks.
It is based chiefly on a detailed
analysis of the profits of nationa.l banks, bank by bank, for the years
1926-1930.
This analysis entailed the compilation of some 40,000 oom-
plex schedules.
In order to oover the years 1931 and 1932 in a comparable
way, it would be necessary to oompile in the Federal reserve banlr..s and
analyze, partially there and partially in Washington, more than 10,000
new schedules.
•
-
•
-
October 21, 1933
Mr. Goldenweiser - Mr. Blattner
Statistics for the year 1932 are either not incl~ded at all, or
ina.dequately, in both the Suspensions and Changes volumes.
dition exists with respect to the four volumes:
The same con-
Branch Banking in Cali-
fornia, Group Banking, Branch Banking in the United states, and Dual
Banking.
The addition 0£ a year's figures would entail complex alterations
in charts and tables.
In the case of these six volumes ~.ost of the neces-
sary data are in the Division of Bank Operations.
In view of the fact that both the Research and Operations Divisions
are loaded doffll. at the present time, considerable outside help ~~uld have
to be employed to Ullderte.ke such a revision.
It would seem to . me that if
the revision were undertaken, it shoul~ be with the idea of completing it
rapidly by the employment of a relatively large staff', rather than :rr.oro
_;perhaps
reasonable
slowly by a smaller staff. The/objeotive would be/to effect the revision
say
i11 a period of/three months. To mn.nage the job I feel that we ould need
about three teams, each team to be composed of one senior person, a machine
operator, and a stenographer.
Such a team employed on a temporary basis
would perhaps cost for each team $1,000 per month.
of the three months, therefore, would approximate
remain the cost of supplies, chart "WOrk, rent, etc.
The aggregate payroll
10,000.
There would
Leaving a margin of
safety, I should hesitate to say that the job could be done for less than
16 1 000, and perhaps that is too little.
During the last six months (October, 1932 - March, 1933) of the
operntion of the Committee's staff, expenditures were roughly 16,000.
During the last three months the staff consisted of Mr. Riddle, one
clerk, and tour stenographers.
In addition to these, in the previous
two months, Mr. Greer and a second clerk were on the payroll.
During
Mr. Goldenweise r - ir. Blattner
•
October 21, 1933
- 3 -
October three other clerks were :rbill on the payroll.
It is que:rtionabl e whether merely introducing the figures for the year
1932 would be VTOrth its salt.
If we could spend
30,000 a.nd bring out the
story for the year 1933 with respect to Bank Suspensions and Changes, that
would be something else again.
finished before July 1, 1934.
Such a job in all likelihood could not be
ffice Correspon
,
FEDERAL RF.SERVE
BOARD
-
Date Oc o
Subject:
From
r,.
orrill
ti
of th Bo rd on Octo
th
ion
ction t
fr nc
r l • l 33, con id
n t th
rec nt Gov rnor' Con-
to t
ti uti
o
nch, Group
ht ore
pir d
inc
th
d,
oul b
ti
ort in
f
t
tr
1th th
D -
th
vi
to th
ly publi h
nt
nd
nt
,
nd
r qu
ou
ot th prob bl cot of
1th h
co
t d to
ndi
ub
t to
th r -
nd tion of th Gov rno
'Con-
nc.
XO
minut
rp
t rr d o 1
t
ch
•
or
h m ting ot th
Bo
d
ove
1 u ea of eetin of Feder 1 Resen
o rd
eld on O ober 19,
1933.
n at th r cent Gov rnor •
"Attention as called to the action t
in recomm nd1n to th Fed r l Res rv Bo rd th recon tuttng
Cont renc
of the Sy te C
ub itte
endin th
of
pired
of vent
nd d r port
th t th
vi
for
r nch, Group
on
it
th
inc
r port
u
ould be
th 11 h
1
1th th
nd
tted to the
nd eventually p bli h d.
di cu sion es
th t the copy o th
underst ndi
Olae
at hi
Brooking
de i
r que t 1 no int
n t1tut
to h ve
Son tor 01
public doc
c
itte
h
of
orrill st t d th t i t w
port
of th
r port
t te
8
it
cost of bri
ing
ilebl
d y of the l
sted
or
o th
Congr
s
the r port prin
o.
t th Bo rd obt in
prob bl
enator
• office h d r
th th pl nn d oh v
nt, but th th h d not do
eent to
1th Sn tor
o th th
t fe
ich w
hi
r. H. P rk r
other port; th t
nd that during the 1
h d
hich •.
ad corre p ndenc
h
cc
addition 1 cop
In titut;
d, during
1tte r port u
to the
to d t •
v d that
t th conclusion of th discu sion,
r. Goldenw her be re
ated to ub 1t o th Bo rd n
t1mat
of th prob bl co of
nding th r port on br nch, ro
nd
ch in banki , in ccordance 1th the r co
n tion or the Gov rnor'
Cont reno.
•
j_
, l 3
•
•-
FEDEP AL RESER VE BANK OF
S~'\.
FPANC ISCO
October 7, 1933
Dr • • A. Golden eis r,
Federal Reserve Bo rd,
ashington , D. C.
d te of Augu t 12, 1933, Gov rnor C 1 in
Und
his opinion th t th re
ote you th t i t
Feder 1 Reserve Bo
kin
shoul
rts of th
d's Committee on Branch, Group nd Chain
b published .
Aay I suggest, if no decis on h s b n mad
in this
Conf renc
tter, th t i t
next
gain be submitted to the Governor '
eek.
Yours v
truly,
/
cfd ~~ ~
Deputy Gov rnor.
-
e
August 1, 1933
Dr. E. A. Ool en
, Committ
Cha·r
erve Bo
Re
ral
d
F
shington, D. c.
D
r
r,
on Br nch, Group
d,
nd Ch in B Id
,
r. Golden e ser:
ckno
Receipt i
you
ch
h
in
h,
1 tter of Au
rep rt o the
for rd d co
I
Br nch, Group
n
Comm
Bo r
nd
of revie
e
ing, for the
sue
ving
h
to th adv sability of
ing some of thee r1· r
they should b printe.
the rep rts hen receive
in y opinion, h 11 co
un
No
for
rd
-
n
n
r
inted.
r vi
f thee re ort, ht
ho ev r, go ov r
there is ny ch nr,
1th you promptly.
may ne d.
r,
r·b
,
to you.
h
h
been
.,;,w=ry
rnor,
found
e C
nd
Your
-
reto 3 ou
th Subr nc,
o r
in
t
ta sub
n
Bankin
6, 1931,
art
( ign d)
v
i
my opinion, eained fro
port cont ining
of th
Committ
Sen
t
~t
d
Unit
a n
h
vor to h
v ry tru y,
Jno. U. Calkin
GOVEF, OR.
•
ForxnNo.131
Office Corr ponde
To_
li'r. Smead
From
Mr. B!l.at
~
e
•
FEDERAL RESERVE
BOARD
Date September.....2.3.~l.93-3
Subject:
er
16· 852
I make reference to the matter of the average time elpased bet--neen the
dates of closing and the dates on vn1ich suspended banks were completely
liquidated.
You were under the impression that the Federal Reserve Commi·t;tee
on Branch. GToup. and Chain Banking in its suspension volume presented material
on this subject.
In examining the current edition of this volume I am unable
to find in the text any material dealing vrith this subject.
However. Table
XXVII of the appendix. page 198• presents the results of a valuable computation in this connection.
I am attaching a. fevr paragraphs of an earlier edition tho.t dealt with
this subject in a limited and indirect manner.
The record indicates that these
paragraphs were included in the edition presented to the reading committee.
In
the revision made in February. after Mr. Riddle had received the criticisms of
the reading com:r:littee. these paragraphs were omitted.
I take it that they were
omitted because their primary interest relates to the matter of interest lost
on deposits tied up in liquidation.
It is unfortunate that the text has not//
preserved in some way the net findings of the vnluable compilation reflecteo/J
in Table XXVII of the appendix.
r
1\
Please return the attached paragraphs for restoration in their proper
place in the files.
r
• l
obj
a
•
,
FIL&S SECTIO
fic e Co rre spo nd enc e·
To
.Mr. Morr ill
w
Jo
Fro~ ? m r o i s o r
fEDER :~.SER V·
Subject:_
Date September 20, l ~-
• · ,•~
tho Cor.mittee
Herew ith is a copy of the Summary of the F~po rts of
20. 1933 . This
on Branc h. Group. and Chain Bank::ing as revis ed on June
the Comm ittee' s
is to comp lete your file of the curre nt editi ons of
repo rts.
Enclo sure
FormNo.131
'
Office Corresponde
To_ J}.r. Q-oldemreiser
e
-
~
FEDERAL RESERVE
BOARD
Date Septemb.ar -1..9.,._1.9.:ili_
Subject:
Surmnary of the Reports
From Mr. Bl ttner
;.)I
e Po
10-86:.!
I find upon checking over the record that copies of the Surmn.a.ry
of the Reports as revised on June 20, 1933, have not been transmitted
to Senator Glass, Mr. l.1orrill, or l.Tr . Floyd Harrison.
You vn.11 re-
call that at the time the revision was made copies were subl:litted to
the other members of the Committee for suggestions.
that we vrould have to revise the summary again.
It was expected
No Committee member
has up to the present time submitted any sugcestions, e.nd when we sent
copies of the Committee's reports to the Governors of the Federal reserve banks a copy of the revised sur.unary was included.
I thinJ~ that it is probably essential that Mr. 1.brrill •s file
be complete, but I am opposed to sending a copy to Congress.
I feel
that the chances of Conbress•s printing the underlying volumes is
better if they are not in possession of the summary.
I do not see
that it ,-rould. do any ha.rm, and it might do some good, if a copy of
the summary were in Mr. Harrison's possession.
~
~~ .
~
U3/-2bi ~
~ ~
~~~
~~~ ~
.
/4.0(__
•
•
l'<>rru I 181>
FEDERAL RESERVE BOARD
WASHINGTON
•
u
C-jcb
Al
TELE GRAM
FEDER AL RESER VE SYSTE M
(LEA SED WI RE SERVIC E)
R E C E IVED AT WASHINGT ON, D . C.
16-794
275 G Y
Chicug o 5p Sept 5
orrill
r
shn
Yours thirty fir t
m I to snow lichten stein
11 el~ven volume s of
commit tee report includ ing confid enti 1 matter or merely one volume
of summ ry report?
Steven s
603p
C.
s
OOVI.UUfENT l'tl('oTlNO orru• ■ : Jftl
tn
TU-l
-
Form.No. 181
Office Corresponde
To
Mr. Goldenweiser
From
Mr. Parr~
e
FEDERAL RESERVE
BOARD
Subject:_
--
J
1933
Date_ A:g,gµs t 31.
Committee Report
•ro
Mr. Morrill informs me that the Board took action yesterday authorizing a letter to Lichtenstein opening to his use at the Library of
the Federal Reserve Bank of Chicago the copy of the Committee's report
that has been sent to that bank.
In its letter of August 22 to Lichtenstein, the Board offered to
let the members of the Council inspect the.__..,.report when they assemble
here.
His answer, dated August 24, intimated that this would permit
the members to determine only whether the typewriting is good and sugtj;be_
gested that the volumes be sent to him~ summarized for the Council
in respect to those parts that may still be of use.
that the Board answered yesterday.
It was this letter
I understand that factors in their
decision were the tone of Mr. Lichtenstein's letter and the fact that
there was no set of reports actually on hand.
Miss Hamnill tells me this morning that the set that is being prepared has had all the clerical work done on it but the volumes have not
yet been bound.
10- ...862
,J
l> 3
I I
•
t,
t
C
1
A
0
t
ry t
SRC-CM-r
t
-f_
ForxnNo.181
JJffice Corresponl
e ice
FEDERAL RESERVE
BOARD
Date
Subject: Sb.tus of 1atters ith r~s__rect to
Committee on Brnnch, Group, and Chain
Bruiki.ng n_d Committee. on Ac.c_e_ptrulQe. .PrMtice
EC1D IN FIL 1-; ECTION
From Mr.
AUG 25 1949
I thought that I uould leave you a brief memorandum w
the sto.tus of matters relating to the two corL~ ittees:
Branch, Group, and
g /i
Chain Banking and ..cceptance Practice.
Branch, Group, and Chain Banking. - In your absence little has happened.
Mr. Lichtenstein, Secretary of the Federal Advisory Council, directed a let-
rto-W'....
ter to the Federal Reserve Boa.rd asking permission to inspect the reports of
I
this committee.
!..:r •• •orrill diet ted an answer to the request suyin 0 that a
-
set would be available for inspectior. when the Council meets here in September.
I felt that .,Le request should have been handled a.long other lines and dictated
a brief memorandum to Mr.
orrill, which is attached.
I do not know \7hetl.er
Mr. Parry transmitted this '!llemorandum or not, and I have not seen tre letter
which finally went to l • Lichtenstein.
The available copies of our reports noH in the files ere very li1d.ted
with resp ct to same volumes.
~he pos~ibilities by volumes are as follovra:
Bra."'lch Banking in the United States
Branch Bcnking in C lifornia
Br nch Ban'rinz in England
Branch Banking in Canada
Banking Groups and Chains
Changes in the Number and Size of
Banks in the U. s., 1834-1931
Bonk Suspensions in the U. s.,
1892-193]
225 Bank Suspensions, Case Histories
from Examiners' Reports
Banking Profits, 1890-1931
The Dual Banking System in the U.S.
Su.'71mUry of the Reports
3 copies
9
II
17
II
19
II
8
ti
11
11
4
11
7
II
2
1
II
5
11
II
3
Mr . Goldenweiser- Tr . Blattner
ugust 25 , 1933
- 2 -
ith respect to rome of these copies considerable clerical
have to be done before they could be passed out .
!ies H
ork would
· 11 is
holly
conversant rith this problem, hoY:ever , and can ans er o:ny questions that
may come up.
In connection with getting together a complete set of the volumes for
each of the Governors , especially the Summary of the Reports , I had to huve
some new cherts mude in line with our conversation on the matter.
fore at the moment hold a bill from Leet Brothers for
42 . 00.
e there-
I have not sub-
mitted this bill for transmission to New York for payment, but propose to hold
it until October l .
It may be that after I return ve shall .ant to have a fev,
more charts reproduced , and I thought it preferable to
bill before making po:yment .
justify their
aiting
e have done enough business
Nevr York bank.
·th this company to
awhile for the payment .
cceptance Practice . - I have directed to
on this matter , and
it for a consolidated
.
.
.orrill some memoranda
t my suggestion he has had some correspondence with the
oreover, I submitted to hi.ru some fi:rt en pages of preli
analysis on this subject in connection with uhich he co
nary
ented as follo 11
11
I return here rith your memorandum of :u st 22 and the
outline attached thereto , dated ugust 21 , together ·th the
accompanying ch rt r la.ting to the study of acceptance credit
experience . I am impressed ·with the care that you have given
to your preliminary study of the av ilable materiel e.nd feel
that you are pproaching the matter in a very satisfactory
vro.y . Therefore I hnve no doubt that it is unnecessary to
make any suggestions and the points Tihich I shall mention belm are merely for the purpose of being assured that you will
have them in mind . 11
r. I orrill lclo
rs
thnt I am to be auay during the first
a.rt of Sep-
tember , o.nd I do not think that anything '" · 11 arise on this subject
s.
•
Hr . Goldenweiser- :.r . Ble.t ner
- 3 -
umst 25 , 1933
Sissman has command of the documents and files in cor,mection
project.
C.IA/
ith this
MEMBERS
OFFICERS
1 9 3 3
W.W. SMITH. PRESIDENT
M A . TRAYLOR , V1co:-PRESIOENT
WALTER LICHTENSTEIN, SECRETARY
FEDERAL ADVISORY COUNCIL
EXECUTIVE COMMITTEE
T . M . STEELE, DISTRICT No. 1
GEORGE W , DAVISON, DISTRICT No . 2
H . A . LOEB , DISTRICT No , 3
H . C . MCELDOWNEY, DISTRICT No. 4
HOWARD BRUCE. DISTRICT No. !5
H.A,LOEB
J . K. OTTLEY , DISTRICT NO. 6
M. A . TRAYLOR, DISTRICT No. 7
W . W , SMITH, DISTRICT NO. 8
THEODORE WOL0, DISTRICT No . 9
WALTERS , MCLUCAS . DISTRICT No . 10
J . K.OTTLEY
J. H . FROST, DISTRICT NO. 11
W . W . SMITH
OFFICE OF THE SECRETARY
M.A.TRAYLOR
G . W . DAVISON
38
SOUTH DEARBORN STREET
H . M. ROBINSON , DISTRICT No . 12
W. S . MCLUCAS
CHICAGO.
Dear Mr.
August 24, 1935
orrill:
..,;;__ __
I beg to acknowledge receipt of ___y~o~ur
the
that
certain
am
I
22.
August
of
on
communicati
members oft e Council wi I llppreciate most highly
the permission of the Board to inspect the eleven
large typewritten volumes embodying the report of
the special committee. They wi ~l be able in the
tiffie at their disposal to certify that it is a good
job of typewriting .
Since possibly the members of the Council may desire more than merely the privilege of seeing the vo ..umes, I wonder whether I ,ay be so bold as
to suggest that the eleven volumes be sent to me. I
shall try to go through them as ell as I can and some
ti . e or other make a report to the Council summarizing
t ose par ts of the report which may still be of importance.
Very truly yours,
Secretary
• Chester lliorrill, Secretary,
Federal Reserve Board,
Washington, D. C.
dP
0
11,
1•
wri
or
0
0
rib
t 1
1
0 •
•
Fonn.No.131
-
Office Correspondel ce
To
Mr. Blattner
FEDERAL RESERVE
BOARD
-
Date ,
1/
gt18t
21. 1933
Subject:
\
From
Mr__. Hammond
~llj
11 ru
I just noticed that in the foreword to what I presume are
the latest copies of the Committee•a report rq name in connection
with rq part of the Committee's work la given as Clarence Hammond.
Since I never use this designation and never have, I wish 7ou
would please see that it is not used in the report but tbat I am
apoken of aa C. B. Hamnond.
lO· ·S.'.l2
ForinNo.131
Office Correspon
FEDERAL RESERVE
BOARD
-·
I
Date_ __.August l9-].9 3.3-
To ---1k.-1lorrill
Subject :
From ~ ~ttner
fpi,
/
I have taken note of the letter to Mr. Lichtenstein stating that
"when the Federal Advisory Council meets here in September a set of the
reports of the Federal Reserve System Committee on Branch, Group, and
Chain Banking will be made available by Dr. Goldenweiser for their inspection.
e shall have a set in readiness.
fer to transmit a set at once to Mr.
w. w.
I personally should pre-
Smith, President of the
Federal Advisory Council, for his inspection.
In Dr. Goldenweiser's
absence, however, I took the matter up with Mr. Smead, a member of the
Committee, and he prefers to handle the matter as suggested in the draft
of the letter.
16· 852
I
fEDER AL
Augu . . t 15, 1933.
v
/2
Dr. F.
r,
Ch ir
on Branch, Group,
c/o F r
Re erv Boa.rd,
hington, D. C.
D
d Chain B nking,
Dr. Golden eiser:
Th re ha be n fo rded to you under
cov r a
ry Report of the F deral Res 1v Co
on Branch, Group nd Ch in Banking hich I think i
cop you eith r gav or fo rd d to
• N on.
Your very truly,
Gov rno.
a
MEMBERS
OFFICERS
1 9 3 3
W . W, SMITH , PRESIDENT
M
A , TRAYLOR , VICE-PRESIDENT
WALTER LICHTENSTEIN . SECRETARY
FEDERA L ADVISOR Y COUNCI L
EXECUTIVE COMMITTEE
OFFICE OF THE SECRETARY
W . W .S MITH
M. A. TRAYLOR
G W . DAVISON
38
T. M . STEELE. DISTRICT No , 1
GEORGE W . DAVISON. DISTRICT No . 2
H. A , LOEB. DISTRICT No, 3
H . C . MCELDOWNEY . DISTRICT No. 4
HOWARD BRUCE, DISTRICT No, 5
J . K. OTTLEY , DISTRICT NO , 6
M. A . TRAYLOR. DISTRICT NO , 7
W . W . SMITH, DISTRICT NO . 8
THEODORE WOLD, DISTRICT No , 9
WALTER S . MCLUCAS . DISTRICT NO , 10
J. H , FROST, DISTRICT NO, 11
H. M, ROBINSON , DISTRICT No. 12
SOUTH DEARBORN STREET
H.A . LOEB
J , K , OTTLEY
W , S . MCLUCAS
CHICAGO.
August 14, 1953
Dear Mr. Morrill:
At its meeting on November 19, 1929, the Federal Advisory
Council adopted the following :
Topi c No. 2. Develop1 ents in branch, chain and group
banking with particula r reference to the effects of bank stock
ownership by invest ent trusts and holding corporati ons.
11
RecoU1U1endation: The Federal Advisory Council recommends
that the Federal Reserve Board appoint a committee to study the
merits of the branch banking system as practlced in this and ot er
countries , (conditio ns in Canada bei g apparentl y more comparable
to our own,) the group or chain banking syste ..1 as developed in this
country and elsewhere , and the: unit banking system of this and
other countries ; and further, the effect of ownership of bank
stocks by investmen t trusts and holding corporati ons, in order that
the Federal Reserve Board may be in possessio n of accurate and authoritative informati on on this important subject.n
11
I have been reliably informed that the Board accepted the
suggestio n of the Council and appointed a special co.nmittee to make
the necessary investiga tions. Seeing that the whole suggestio n
originate d with the Council, I am wondering hether the Boaro. might
not think it wise to make available to the Council the results of
the investiga tion.
The Counc: 1 is planning to hold its £1rst meeting in September on Sunday the seventeen th, as President Smith feels that the Banking Act of 1953 bas raised so many problems that the Council may wel l
wish to devote more time than usual to discussin g matters before it.
I imagine that much of the investiga tion which was made in accordanc e
with the request of the Council at its meeting of Noveuber 19, 1929,
would be of value in directing the considera tion of the members of the
Council.
Ver;/ truly yours,
~~
Secretary
Mr. Chester orrill, Secretary ,
Federal Reserve Board,
Washingto n, D. C.
For
•
•
.,1a1
Ir
FEDERAL RESERVE
BOARD
· e Correspo
Date_ August 9, 1933.__
'/
II
tf 7v I ;-----
Subject:
. .. ,,
quest receiv d trom r. H. Lane Young ot the
giv n to a
C in Banking publi h d by the Aeaoci
ion tor h use of
ion, and
the Bo rd
Duri
C
11
dvi
the
con id r tton ot th
tt r,
Cid d to
to the
t oopie
ot the
it did not tel
0
tt ntion a
bad not been
turni hed to the
rious Federal
authorized to to
rd one copy ot the re ort to
reserve bank.
I
bo.n
ch edexal
10~ 862
•
7
•
:CH
~
Por= . ·o. 131
Office Corres ponde
To
e
-
FEDERAL RESERVE
BOARD
Date .A ugusj; 1., 1933-
.for Go:v:ernor.s
e
Subject: Connnittee Vol
• .GoJ d envreiser V
ttner
From
Some days ho.ve now elapsed since you show d rne th minutes of the Op n
Market Committee meeting stating th t the Gov rnors of the F d ral reserv
banks
not thinking that you might like to b
thi
t to take tho initi t·v
In the p st few do.
quite
a
Perhap
you wi l
omeon els•
few hours of clerical. ·rork ere expended
to be made and v rified and volume ho.d to b
·11
remi ded.
ith Mr. Burgess or
a sembling of complet
in connection dth th
rk
I am 1riting
anted copi s of the volumes of the Committee's report.
ee the completion of nine
Some pen changes had
sets.
bound.
A few mor
hour
eta.
I run hoping that the sets no,7 in the hands of
essrs. Round, Fl ming,
nnd Clerk will serve for the Governors of their r sp ctiv banks.
I should
lik to proceed in this
erves of
such of the report
5
Yb cause I am lo th to dis
th respect to
ich
TI'
shall be
pt
bl
additioncl books nthout the expenditure of con iderabl
ing some pages of which we h ve only a few copies.
our r
to
ma ~
only about
time for re tencil-
•
FEDER AL RESE RVE BANK OF SAN FRANC ISCO
Jul
r. E • .A.
rma
r 1
Der Dr.
an
th
27, 1933
ranch, Group n Ch in Banking,
olaen
~
er:
On returnin fro
v c tion, I found
ten volume menti ned therein .
our 1 tter of Jun
As th re ort are no in the h n s of Sen tor Gl
' Co
t
n ent ar preclu ed, n it oul seem unn cesc- ry to revi
them 'th
obj ct of submitti ng furtler correcti ons in smuch
th h ve been red
n of ood ju
ent.
c re
'
In
nin the
ier
teri
hich
le
no
refer to
cul
ty for economy in
eri
pos 'ble for you to keep
t they i.!.1 be av ·1 bl
edition , I feel
t
rely b cue 11 rr.y
p
, et
t
r
.nt
s y
for future
I
in th
cl r
to
o
po
in
dy
in a"h n
to rd r
·n on hin h
c
11 cee som le isl t'on looki
inte
The ~ollo
e
een
1 d to
out
y:
S ,m.,,,~.....,r of Reports (2)
Branch Bankin in the Unit d 8t ts
Br ncb Bankin in Cnliforn i v
Br
in England
Branch Bankin in Can d
Group nd Ch in Bank n
C nges in the umb r
Size of ank
in th
nit d &tates
(contin d)
•
•
~r. ~.A.Go lden. i er - - 2
July 27, 1933
Bank Suspens ion
Causes of Failure of 120 Represe ntative ember .,,
Banks suspend in in the years 1921-1930
Causes of Failure of 105 Reprece nt tive ember y
Bank suspend ing in 1931
Banking Costs and Profits
The Dual Banking Sy~tems in the United St ts.
Yours v ry truly,
Deputy Governor.
l/11/
COMPARATIVE EARNINGS OF S.!ALL .A..)ffi LliRGE BANKS
In a group of northw estern states, Minnen ota, North Dakota , South
Dakota , and Montana, as is well lrnown, the banking busine ss has been in
serious difficu lties during the last decade and the rate of banking mortal ity
has
been high.
In those states in the ya~r 1926, there were about 600 nationn l
banks operati n~, of which 80 per cent were banks with loans and investm ents
of less than $1,000,000 each, in other words small banks.
these banks in that year did not ea:rn as rrru.ch as
capita l.
Two-th irds of
6 per cent on their investe d
Of the banks with loans and investm ents above $1,000,000, almost
- - half were earning less than
banks w~ich earned less than
6
per cent.
6
The percent age~ of large and sm.::Lll
per cent in other ye~rs is as follows :
Srnnll banks
Large banks
1926
70~
451,
1927
67</;
43~
1928
59~
36~
1929
53%
32~
For Florida and Georgi a the percen tages wore:
Small banks
1926
1927
Lar,e:e banks
28~I
J
••
PERCENTAGE OF NAT ION.AL :B.AUKS F.AR.~ING LESS THAN
Minneso ta, :i:-J orth Dakota,
South Dakot:1 1 and Eontann.
Size of :Bank
--
6%
Georgia
and Floricla
1926
1927
1928
1929
1926
1927
83%
80%
75'1,_~
75%
33%
50%
$150,000-250,000
84%
72~
68~;
671c
69%
36%
$250,000-500,000
61~
681I
57'?
50%
58~
701,
$500,000-750,000
6s~
52~
52%
44~I
63%
67~
$750,000-1,000,000
68%
63~
3sr
2oi~
,,. f"I
471
63%
$1,000,000-2,000,ooo
55;
47~
43~
35;:
50~
50~
l ,000,000-5,oco,ooo
38~
38/
32%
191,
4o~
$5,000,000-10,000,ooo
4CY-
50~
33%
4o~
4o~
4od.,.
671,
$10,000,000-50,ooo,ooo
13~
33%
14%
Loans and Investm ents
Under
Over
$150,000
$50,000,000
I
...
331
I
...
...
...
...
...
331,
...
For:1 . o. 131
•
Offi ce Cor resp ond e
-.
e
FEDERAL RESERVE
r. Blattn~e=r_ __
BOARD
•
Date •
July 11., 1933
Subject:
e••
In vie
of the fact t
t t e materi al assembled by
the Committee on Branch, Group, and Chain Banking has
been transm itted to Congre ss, I think we can regard the
subjec t matter as release q , at least in a limited ay .
For example, parts of it might be utilize d hen the
occasio n demands to answer inquir ies.
hen used in this
way, credit should not be given to the Federa l Reserv
•
Committee on Branch , Group, and Chain Banking .
The volumes
should not be put on an open shelf here visito rs could rorun
through them at will .
2-8495
l'1
./'
ff .
~Y
P4:
ftf,.
I
1/,./31
/
✓
Form
o. 181
-
Office Corresponde1Pce
To
• G:old~ eiser
.P
F'EDERAL. RESERVE
BOARD
Subject:
From
• ,u
I am submitt ing, as you suggeste d• the attaohed memorandum with
r f rence to defining a polioy with respect to giving out materia l
assemble d by the Committee on Branch• Group, and Chain Banking.
I
should prefer that the Committee be given oredit whenever any of ita
materia l is utilized .
2
g.,
I
I
FEDERA L RESERV E BANK
OF NEWYO RK
Jwi
• Golde
Ch
Dr. E.
D
0
Dr. Gold n e· er:
s duly re
itte
the revi ea volumes of the Co
Ye te
y I" nt back to you
I h d of
1
then
·
o th veal o
s r
e
1 of these vol
I note you co
to
d C ·
Br 1ch, Group
rve Bo d,
in to , D. C.
Your letter of J
c
29, 19,·.
tural Condition and
Di r·cu1tie
·t i
o t of th. ,
or
the ed
d
icken' r
•
nts bout
11
o ton
hoe ·t
y
ion t
t
y
•
I
nort
t
ill do so
co
V
nt
•
t had tim
ve not
lot of very v u ble m ter
ich occu to
e.
11
c
oon
e
e
Il . .\....'Xli
FEDE°RL '\.L RESER. VE
OF CLJ:,.-y ELAND
('
.
'
....
,,
1
.......
n
....
1
C
1
t
tu
.. un
r
0
..:,f
..1
C
.....
l
t
n
'
1 k v
cr .i.
vu,
V
:C:f
'
,,
'
.L ...
.i.hlr:
,, r.
...
E.l
t
I
.... ..,
• L.
•
•
• l
•
r
0
0
•
• S
e.d
2 • l
'
..
• 1
•
•
--
.
Office Corres-.. . .-~
Fonn N
.1,
Date
To
Subject:_
Under date of April 15, 1933, Semtor
ne 12.
~
ter Glass requested for
the use of a su -committee of the Semte Banking and CUrreney Committee,
a copy of the report of the investigation made by the System Committee
on Branch, Group and
ith the
i th this request and
proval of the Federal
date
Syst
eserve Board, Mr. Golde
arded to Senator Glass studie
Committee on "branch
in
eiser, under
made by the
e United States", "branch banking
in England , "branch banking in Canada", "changes in the number and size
of banks in the United States, 1834-1931" am "bank suspensions in the
United States, 1892-1931".
Under date of
• Golden eiser foruarded to Senator
Gl ss additional volumes prepared by the System Committee entitled 'banking
profits, 1890-1931", and "the dual banking system in the United States".
volumes entitled "branch banking in Galifornia",
tt225 bank suspensions, case histories
ou:pa and chains",
ere :to
rom examiners reports" and "banking
arded to Senator Glass by Mr. Golden eiser.
The official file copies of the ten volumes referred to above
are in the safe int
~
ssistant Secretary's office.
31, 1933
r.
rp nt r
ro Bl ttner
t
00
0
.
.
t to
•
r l
.>0
0
ot h
C
i
C
on
t
h.
orr 11
t;
t
nclo
of OU
ol
l!
ch of
0
po
e
•
1 •
t
h
, G
to hi•
rri Ono
0
to
r. H r1
n told
0
25, l
3
r
,
nch,
)~
7B:CH
(C O P Y)
y 25, 1933
I
Honorab le Carter Glas
United ~t te
nat
,a hin ton, D. O.
De r
enator
la s:
u
u
o
h
or
ia
m
volumes
n send.in you t re
the s
rvi ion of the
nch, Group, und Ch in B nk.ing.
h Bnnking in
lifornia ; 225 Ba
ro
amin
port ; nnd B
rs'
,, ,,
•
penroup
h t n volt e tha hate been tr mitte to you oo pri
all o the at rial collect d by th Co:nmitt ee. :i.:h t n volum s
re listed below:
Typewri tt
(Includi n
( l)
(2)
(3)
( 4)
(5)
{ 6)
nlting in the
nkin i
ch Banking i
in i
oup
ch
nited
ch
rni
t te .,,
✓
✓
.
ize of B nks
ni e
1834-193 1
( 7)
ited ..,t te ,
nsi n
1892-193 1
( 8) 225
i
C e Hi tori s from xrt
(9) Ba
1890-193 1 ✓
f
( 10)
al
in th Unite
ng uY t
ll
450
130
100
250
430
th
Tot l
600
210
260
260
160
2,850
• Go 1 n 1a r , c.nai
eon B nch, Group. nd
an,
in B nking
I I, I
FE.'JERAl Rf:.5FRVL
BOARD
Date
'
Subject:
•••
Bee use of our
spir tione
th respect to the Co
2 M06
ittee 1 s volum~s,
hich are being put at Senator Glass' disposal, I should very much like to
see
11
eek.
California, 11
11
225 Suspensions" and "Group Banking" go to him early n xt
Please note the attached clipping from today's ~e York Times in hich
Senator Robinson states his intention
1th respect to adjourning by June 10.
I should very much like to be able to begin operation
on
11
Group B
onday, if at all po eible.
THE
jRobinson Predicts Adjourning June 10;
Leader Says Senate Will B e R eady Then
• pecial to
Ta:& N&\V YORK Tu,,,;a.
ng" on
FEDER AL RESE RVE BANK OF SAN FRANC ISCO
i ay
16, 1933
I
Dr. E. A. Goll n iser,
an, Committee on Branch, Group nd Chain
Bankine ,
rd,
Bo
rv
Rs
l
F d r
O.
D.
ashinr1to n,
Ch·
Der Dr. Gold nweiser :
In looking over the liinutes of metine of the Corumitte on Branch, Group 1d Chain
Bani e, I find noth ng 1 t r than those of the
me ti g of 1 ay 22-27, 19.31.
fuen on ortunity pr ents ould yo
of
be o kind a to en m~ conies o th Mi ut
•
ft
there
held
them tings
it kindest reg d,,
Your very truly,
~~C e'v
Deputy Governor.
l
FEDERAL RESERVE
BOARD
To_
From
Mr. Goldenwe-i_s~e~r~ - - - - _.....M...._l"_.__.
Date
•
May -1.2,
-193-3
Subject: Farm for printinp',___c_om.1u_t;t.e.e_' s
_'B. ,.J~P..: . t. __twnwA;. 1,.__
.'I'
volumes.
~)
2-8495
I think it would not be unwise for us to be thinking some of a
problem
desirable form for printing the Committee's volumes in case that/should
come to us.
I am, therefore, setting down a few considerations in this
connection.
At the bot t om of this, there is a tabulation showing the
approximate number of mimeographed pages contained in the various volumes
including their appendices.
There has been some talk about material being bound in three
volumes.
The break-up in the tabulation below is a preliminary suggestion
looking to grouping into three volumes.
It is evident that other, probably
better, schemes could be devised.
There are, in the first place, the problems centering around
size of type and size of page.
I have been looking at some of the volumes
published by the national Monetary Cozmnission.
and page sizes.
These had attractive type
The pages contain about 300 words each, which coincides
approximately with the number of words on our present stenciled pages.
A
manageable volume of this size contains about 500 pag s.
If our material
were made up in thic form, six volumes mig!lt be required.
I personally
find more attractive the make-up of the National Monetary Commission volumes than I do Recent Economic Changes, for example.
In the latter work,
the type is somewhat smaller and the pages so~ewhat larger than in the case
of the National Monetary volumes, so that about 500 words appee.r per page.
With a make-up of this sort our material might comprise four volumes of
approximately 450 pages eech.
450
words.
The pages of our annual report contain about
•
- 2 -
Furthermore, there is the problem of an index:
For example,
Volume VI of the National Monetary Commission Publications contains Cannon's
"Clea.ring Houses" and Kinley's "Credit Instruments." Each of these is
separately paged and separately indexed.
A plan of this sort would perhaps
be the most appropriate in conn~ction with our material.
A consolidated
index of 10 or 11 volumes could easily become a cumbersome and useless
tning.
It is easy to foresee that, if we go in for indexes of any sort,
their composition may become something of a problem and serve to slow up
publication.
u-.
Kitzmiller believes that in general practice an index
is not started prior to the reception of page proof .
Fro~ the point of
view of the indexing proces~, this is no doubt the least wasteful procedure.
I can, however, conceive a technique that would have the indexing .ell in
hanc. before til.e stage of page proof was reached.
Mimeographed
Pages
1.
2.
3.
4.
Branch
Branch
Branch
Branch
Banking
:Banking
:Banking
Eanking
in
in
in
in
the United Staten
Canad.a
England.
California
350
250
100
130
830
5. Bank Suspensions in the U.S., 1392-1931
b. A Study of 225 Suspended Banks
7• .Agriculture
8.
Banking Profits, 1890-1931
207
257
7
265
980
9. Bank Changes
10.
11.
Banking Groups and Chains, 1931
The Dual :Banking System in the U.S.
600
430
160
1190
3000
01
1
Por.rn No. 1:H
Office Correspo
To
r. Smead
✓
e
FEDERAL RESERVI::
BOARD
Subject:
From ,r. Blatt
••o
I am ending you~ copy of the latest edition of Bankin_g
Profits. I am also sending you the copy of the previous edition upon
which chnnge
ere made. On the inside cover of this you will find
the nages that were effected. Pages 9, 11, and 12 have been substantially ewritten. Plea&e note that a new chart has been inserted at
page lla. The first page of the sunrnary, 97, represents an addition
I intend to run the letter of transmittal over again in order
to better center it on the page.
.l-6406
, l
3
'
' C
,
e
e
FEDER AL RESER VE BANK
OF NEwY ORK
April 28, 1955.
Dr. E. A. Goldenw eiser, Chairman
Committee on Branch, Group and Cht.in Banking
.t"ederal Reserve Board
Washing ton, D. C.
Dear Dr. Goldenw eiser:
This will acknowledge your letter of' A ril 25
enclosin g copies of correspo ndence exchange d
ith Honorab le
Carter Glass, from which I note oeno.tor Glass' Committee is
being furnishe d 1ith them terial assemble d by the Committee
on Branch, Group and Chain Banking .
I notice that while the
Senator appears to have asked for a copy of tho report,y our
correspo ndence refers only to the eY.hibit s.
Might I ask if
he is being furnishe d with a copy of the report
s ,ell as
the exhibits ?
Very truly yours ,
.• Round
Deputy Governor
Form No.181
Office Correspon
To
e
FEDERAL RESERVE
BOARD
--
Date t:prl l 2a. l933
Subject:_concerning pa.gas _changed in_
:tr_. Smead
Cammi ttee va]m:cos sent. ta Senator Glass
Cl PO
2-8405
I am sendj ng you the COJW of '':Sank Changes" used in making changes
between the 9revious edition and that sent to Senator Glass.
You nill note
th t a.n enur.1eration of pages changed appears on the inslde cover.
pend ix is not included in the copy which I am sending to you.
The ap-
No changes
were made in the a9pendix between the previous ed i.t ion and the one sent to
Senator Glass.
I an sending you also the corresllondiug docu"!lent with respect to
"Ban.'-<: Suspensions."
Vith respect to ''Branch Banlcing in the United ..,tates" the file
cony is scme«1hat different as pages of the previous edition were 1imi tecl.
I
ccordingly a."Il sending you only those pag-es which -.vere altered.
In most
instances you will observe that the restenciling ms done to remo,e material
that was stricken out by pen following the suggestions of the 1Jor:i.111ttee.
Chanters XI and-XII of the earlier edition were omitted altogether from th~
edition sent to Senator Glass.
fuen these have served your purpose, please return them to us for
our file
rll 27, 19
r
ry t
ly J u
l 2
V
,
Co
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ours ,
or
CARTER GLASS, VA., CHAIRMAN
KENNETH MC K&'.LLAR, TENN.
FREDERICK HALE, ME.
JOHN O. KENDRICK, WYO.
HENRY W. KEYES, N. H.,
ROYALS, COPELAND, U. Y.
GERALD P. NYE, N. OAK.
CARL HAYDEN, ARIZ.
FREDERICK STEIWER, OREG.
SAM G. BRATTON, N, MEX.
PE'T':R NORBECK, S. OAK.
ELMER THOMAS, OKLA.
PORTER H. DALE, VT.
JAMES F, BYRNES, S. C.
L. J. DICKINSON, IOWA.
MILLARD E. TYDINGS, MD.
JOHN G. TOWNSEND, JR., DEL.
RICHARD B. RUSSELL, JR., GA. ROBERT D. CAREY, WYO,
MARCUS A. COOLIDGE, MASS.
ALVA B. ADAMS, COLO,
PATRICK MC CARRAN, NEV.
JOHN H, OVERTON, LA.
COMMITTEE ON APPROPRIA TIONS
KENNEDY F. REA, CLERK
JOHN W. R. SMITH, ASST. CLERK
April 15, 1933.
Dear Governo r
eyer:
The Federal Reserve Board appointe d a committe e
about three years ago, of
hich Dr. E. A. Goldenw iser was
chairman , to make a thorough investig ation of branch, group,
chain and unit banking .
The com..~ittee, I am told, filed a
report with volumino us exhibits in the latter part of 1932.
This report, as I understa nd, represen ts an exhaust ive
examina tion and investi ation.
to
my
It would be extreme ly valuable
sub-com mittee if a copy of that re ort, covering at
least branch banking and causes of bank fajlures , could be
made availab le.
Sincere ly yours,
~~-#-
Chairma n, sub-corm nittee.
Honor ble Eugene eyer, Governo r,
Federal Reserve Board,
ashingto n, D. C.
h 31. 1933
n
e r
r.
ound :
ee
rvioes
vied
f
Com-
lures,
ri.ou l ture. ha
•
mi t tee.
whio ha
jut be
k
oom-
'
na con-
•
ult1n
of co
tely
or1s1
uoh
l col
oertai
rid
ur
nd
ey t
ly yours,
J. H. id le
ittee on B nob,
.., or t ry. C
Grou, an Chain n in.
For.w. No. 131
--
Office Correspondence
To
From
Dr. Golden.veiser
Mr • .:imead
r.
FEDERAL RESERVE
BOARD
DateJi'e--=-b-=-ru=a=-.i:__:_l.7.,___
.,_ 1933
Subject :_ _
ia.=·d=l=e:<...-_ _ __
••o
2-8'lU6
In so far as possible I have . aue the various changes suggested
in the suspensions volume.
The 1932 figures which ne have decided to in-
sert in Chapter I are not yet avail able, but presumably we shall get them
in a day or so.
In the meantime I am submitting the volume wlth the other
changes so thnt if you approve we can start stenciling immediately on receipt of these figures.
In e~ti~ating the losses to depositors of banks still in procesa
of liquidation when the data were compiled, pp. 100-106, the suggestion
was made that we avoid the use of the word El!3iim§te and merely explain
1
how the figures were derived .
I have been able to do this except in the
swnnary table and accompanying paragraph on page 105.
There I found it very
difficult to properly qualify the figures without using the worf,esti
e.
If you think it absolutely necessary, however, not to refer to the result
as an estimate, perhaps we can still devise some way of explaining the
figures ~ithout giving the impression that they are absolute figures
rather than rough estimates.
So far as I recall, there was no objection'
to the use of the word estimate in Chanter VLwhere we have estimated the
losses to stockholders of suspended banks, and I have not attempted to
eliminate it in that chanter.
The stenographic staff will be ready to start stenciling this
volume on Monday if you are able to go over it in the meantime.
f/f:P.
ru•
l 7, 1933
e
r
r. 0 rloc
Co
t
till 1n t
ort 1
'
on
vs on nd
r1but1on .
tt
d
r, to
1
00
ly
'inc
•
~ec
ro
0
0
fo
11 bl
not y t
I
p 0
y u 1n
i
•
our ,
nch,
FEDERAL RESERVE BOARD
For:m 166
THE FEDERAL RESERVE BOARD
CROSS REFERENCE SHEET
Fi le No. ------~~-~-:_;______________________ _
Subject Letters .. to ____r. -- "'Urt iss •__ Boston __Bank __&_ Mr. __ c .M. ste -art. __ Secy·--------------agts. vonference - reuort of Comnittee on Branch, Groun, & Chain
Eaiakin at last Gov.~ A.geat1 Conference held •ov . 15-16- 1932
(preliminary form)subject to revision - ------ ··
--
SEE
2/1~ 33
file NO~
324 _Conf ere nee_ Nov- _14-16 _1932) ------------------------------------------------ -----------------------
Lette r of _______ ._. ___ .. _______________.____ .. ____.____________ ---__ ----__________.___.________ .___ ... --------_. __.------. _______.________ _
Dated
Rem arks ------------------------------------------------------------------------------------------------------- ____________ _
------------·----------------- --------------------- ....................................... ----·-· ................................................................... --- ..................................................... ..
U It •11•1•:t1i1rtr rntNTIHO o,,u 11 1n,
bru r-y 9, 1933
I
r. Gough
r. Riddle
Dear •r. Go gh:
I
on or if you
on lo ses to
cha ter ,
on•t be good enough tor ad ov r this chapt r
tockho l er at tll3
ch I h
ded you ye te
ti
ay one t
that you a
lookin
to d
over th
o itor •
--
.F orm No. 131
Office Correspondence
To
Dr. IJoldenweiser and Mr. Smead_
FEDERAL
ESE
BOA!ID
Date_January 31, 19~3=3_ ___.
Subject:_
J
From Mr_. Ridd=' - - - - - - ••n
2- 8495
I have made the changes suggested in the Canadian study and it
is now ready for restenciling when you approve.
I can not agree to the
suggestion to call this volume ''The Canadian Banking Syster11 11 because that
title would represent the study to be sanething that . it is not and was
never intended to be, that is, a comprehensive study of the Canadian
banking system.
The staff assignment was to study branch banking in
Canad.a, and we did not see the necessity of writing another comprehensive book on the Canadian banking system.
As the chapter headings
indicate, therefore, we have li~ited the study almost entirely to
three or four phases of the Canadian system which have a bearing on
the question of branch banking.
It seems to me to be leaning over
backward to try to avoid the use of the tenn branch banking when it
is used in the Board's tenns of reference and the principal purpose
of the Committee is the study of branch banking.
The same problem
comes up in connection with three other studies:
Branch Banking in
England, Branch Banking in Cal lfornia, and Branch Banking i n ~ Ulli ted
States.
While
icy
views on the question are rather decided, I shall,
of course, abide by whatever decision you make as to the titles of
these volumes.
l
\,
.,,.
. .--
I
J nu ry 25, 1933.
r. J • • Riddle, Secret r
vOI?l!llitte on r nch Group and Ch in B nking,
eral Res rve Bo rd,
s ington, D. C.
D
r
r. Riddle:
inquire
but hav de
I shington
coming into
intended writi
you for sone time to
ork of yotll' committe e is pro easing,
in the hope that I mi t be in
eek-end nd have the opportu nity of
office.
Ha the final report of the coI!lr"...ittee been
complete d yet, nd if o, would it be possible for me
to obt in a copy for my own edific tion? I should be
glad, of course, to keep it strictly con:t'id nti 1 if
you desire.
horn I
Best persona l re
ork d,
rd
to you and other
th
Sincere ly yours,
.H. Garlock
nu ry 21, 193
r.
r. Bl t n r
On p
foll
in
no
oubt dl
in
in
th
..
rh
ti
r on, o
nt
you
the -,ho
t no
f
y
t
ily, or on
gro
nte looking
0
t•
n
11 ing
p
0
ill yo
nt
1th
l in
irtu l contro l of
to
un-
indivi
ore th
oanti
ro
b
of
t
in b n in
rli
t
' ro
toe
a a
roup
l '7 o"' th
1tut1on by o
ot to thi
on • "
1 tt r • ,,
d op in
ui
oto
i
0
ell
n you
ti
t
OU
t
Jan
Dr.
20, 1933
r
old nwei
iddle
r.
H
1 the bank chan
ing co
SU
v
not b
dint i
s vol
ittee.
copy.
co r ction
ith th
s in the fi
t 1
t
n
t
e
tep?
in th
a
t ble
, l 33
C
IS
. .ELEG RAM
FEDE RAL RESER VE SYSTE M
( LEASED WIRE SERVICE)
319 G Y
San rancis co Jan 13
Golden eise
ash1n ton
Have be n approa ched br Banke rs intere sted in form latin
le islati on 1 Ca l iforn ia, evade , Ore on and =ashin ton
inform ation prepa red by your commi t tee
Tho
be of
ht oc curs to
me
or any
uid nee .
that i f repor ts are to be releas ed the
re ter value no
old
tan some l ter time do you antici p te they
will be made public docum ents
lerk
652pm
1-lllOl
hich may be of
bankin
33
•
•
•
•
fEDER AL RESE RVE BANK OF SANfR ANCIS CO
0
•
•
--3
,
3
Branch Banking."
•
•
--5
'
161~
'
• •
•
•
••
;
'
FEDERAL RESERVE BANK
OF SAN FRANCISCO
CIRCULAR
32
2
SUPPLEMENT
EFFECTIVE JANUARY I, 1'129
LOANS BY NATIONAL BANKS
TO ANY ONE BORROWER
Some Examples of What a National Bank May Lend at Any One Time to Any One
Borrower Under the Provisions of Section 5200, United States Revised Statutes,
Expressed in Terms of Percentage of the Bank's Capital and Surplus
EXAMPLES
%
A.
Designations
Sec ti on 5200
u. s. R. s.
4.
7.
8.
Accommodat ion or straight loan . .. . .. . . . .. .
10
1.
2.
3.
5.
0
%
10
o/o
10
%
0
%
5
%
%
0
0
0
0
(Maximum of A is 10%)
Obligations as endorser or guarantor of notes }
owned by endorser (other than commercial or business paper).
(Maturing within six months.)
Obligations secured by livestock.
(See 15% margin of collateral required.)
15
Notes secured by not less than like amount of }
U. S. Government bonds or notes or certificates of indebtedness issued since April 24,
1917.
(Comptroller may increase this limitation.)
Obligations secured by readily marketable }
+non-perisha ble staples. (See 10 months'
limitation.)
(See also margin of collateral required.)
(Maximum A+ 4 + 7 + 8 + 6) . . . . . . . . . . .
25
0
0
(Maximum of A
15
}
(Maximum A+ 4 + 7 + 8) . .. .. . .. ...... .
6.
%
15
15
(Maximum of A
tf>
15
15
0
0
20
+ 4 is 25%)
15
15
0
+ 7 is 25%)
25
15
0
0
(Maximum of A + 8 is 25%)
55
55
40
25
40
55
25
0
40
40
40
40
40
40
40
50
65
50
(Maximum of A
95
95
80
65
+ 6 is 50%)
80
*Drafts or "bills of exchange drawn in good faith Jgainst a~tually existing
/'
values."
tCommercial or business paper (of other makers actually owned by the
person, copartnership , association, or corporation negotiating the same.
Obligations secured by goods or commodities in process of shipment.
95
o limit
imposed by
law.
Bankers' acceptances of the kinds described in section 13 of the Federal
Reserve Act.
or industry of such uses
+The Federal Reserve Board has defined a rendlly marketable staple as "An article of commerce, agriculture
prices as to make (a) the price
as to make It the subject of constant dealings In ready markets, wlth such frequent quotnllons of
lime."
any
at
sale
by
upon
easily and definitely ascertainable; and (b) the staple itself easy to reallze
GOODS-The Federal Reserve Board bas defined "Goods" to Include wares, merchandise or agricultural products, including livestock.
values only when It is accompanied by
*A blll of exchange BEFORE ACCEPTA CE may be treated as drawn against actually existing
shipping documents, warehouse receJpt, or other similar document securing title to the goods sold.
be construed as drawn
An ACCEPTED BILL of exchange unaccompanied by shipping documents, or other similar paper, may shipment
or dclivrry of
against actually existing values if drawn contemporaneously wlU1 1 or within a reasonable l!me after, the
arc rn existence In the hand~ of the drawee
goods sold. In this latter case, there must be reasonable ground to nclleve that the goodspage
nrscrve
Federal
1922,
November,
1286,
ruling
(See
sale.
their
either in their original form or In the shape of the proceeds of
Board Bulletin.)
within
come
not
do
person
fictitious
a
by
or
on
BllJs of exchange drawn by a principal on his ag nt, or vice versa, or drawn
'
the provisions of this definltion.
person firm or corpornUnn to
tCommcrclal or business parer means notes, drafts or bills of exchange which have been given by one
anolher in settlement o a commercial or business transaction, SUCH PAPER, THEI\EFORE, L~VARJABLY WILL BEAR TWO
SEPARATE NAMES, neither one represented as the agent of the other.
One-name poper of the type usuaJJy purchased through blll dealers ls not commercial or business paper of the kind exempt
from limitations referred to ln the Federal Reserve Act.
7
•
--
--
--
-
--1
--
1
7
3
7
7
-
--
-
3
--
3
-
-
3
,Grau
in
C
tt
f r
,,,,,..
~
Correspo n
r. Harr· soD, /') ~
r.
/'\()-<)__
odes~
0
l·EDERAL Rf.SE.RYE
BOARD
Subject:
-·
Date
January 7, ).933
Letter from . r. Clerk
2
r . Golden eiser suggests that the attached letter may be of
interest to the Governor .
returned for reply .
It has been ackno ledged and should be
05
-
FEDERAL RESERVE BOARD
WASHINGTON
ft'y~
~.~~
~ tk.r h--1..
4
L~
~~~
~(
C21
6, l 33
.
r
tt r
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ly
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