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421.11 (1) - Committee on Branch Group & Chain Banking FRBank Boston TRANSFER FEDERAL RESERVE BANK OF BOSTON ROY A . YOU N G. GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT. CASHIER KRICKEL K. CARRICK, SECRETARY FREDERIC H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAVITT CARL B PITMAN L. WALLACE SWEETSER CHARLES F. GETTEMY ASSISTANT FEDERAL RESERVE AGENT September 27, 1932 Dr. E. A. Goldenweiser, Chairman, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Dr. Goldenweiser: At the time of your recent inquiry in regard to the summaries of changes in State laws relating to banks and trust companies from 1914 to 1932, I communicated with the Bank Commissioners of Massachusetts and New Hampshire. I have not heard anything from New Hampshire yet, but I have just received the following letter from the Massachusetts State Banking Departments "Some time ago you transmitted to this department from the Federal Reserve Committee on Branch, Group and Chain Banking, a request for certain facts in regard to changes made since January 1, 1914 in the Massachusetts statutes relating to banks and trust companies. "This request arrived during the vacation period, and for that reason and because of the heavy and constant pressure of business in the department, any attempt at comconcluded. pliance with it Was necessarily deferred until after the vacations mere "Several days ago an attempt was made to prepare the information but it became apparent at once that, because of the numerous amendments which have been made to our trust company statutes since January, 1914, the task was of such proportions and so complicated that it is impossible, in the absence of a legal department, to attempt it at this time. every possible "There has always been in this department an earnest desire to co-operate in way with the Federal Reserve Bank and we regret that we cannot assist you in this particular matter. "We are enclosing the forms which accompanied your request." The banking laws of Massachusetts are published in pamphlet form and are brought up to date from time to time. It has been the practice of the bank commissioner's office to retain the latest revision and destroy the previous one, and they found that they are unable to trace the laws back by comparing the various revisions. is The Legislature meets every year and enacts a large volume of legislation which commissioner's bank of the A employee blue books. of published annually in the form department spent considerable time going back over these blue books endeavoring to dropped pick out the banking legislation, but found it such a task that he eventually it on account of lack of time. Se • —2 Dr. E. A. Goldenweiser, Chairman, Committee on Branch, Group and Chain Banking, September 27, 1932 The bank commissioners in this district are greatly overburdened with work at the present time, and while they are willing to cooperate, it is very difficult to secure any information from them. Yours truly, D. Frederic H. Curtiss, Federal Reserve Agent. I. FEDERAL RESERVE BANK OF BOSTON FREDERIC H CURTISS CHAIRMAN jeteziber 14, 1932 Dr. E. A. Goldenweiser, Chairman, Committee on Branch, Group & Chain Banking, Federal Reserve Board, Washington, D. C. Dear Dr. Goldenweiser: I am in receipt of your letter of the 12th\regarding the questionnaire which was enclosed in your letter of July 9th in connection with the Upon receipt changes in State banking laws in this district. of your 7,Qtter of July 9tWre sent out the questionnaire to the Bank Commissioner of each of the several States of this district. Thus far, we have not received any answer from either New Hampshire or Massachusetts, and we are today following those States up. I am enclosing herewith answers received from the other four New England States and will endeavor to procure the other two as soon as possible. I am sorry that you did not have the opportunity to stop over and see us on your way back to Washington. I heard from Mr. Homer Clark that you had been in Brewster again, and I had b, looking forward to seeing you. With kindest regards, I am Sincerely yours, Federal Reserve Agent. &nclosures. k MAINE BANKING DEPART/ENT AUGUSTA July 13, 1932 William D. McRae, Manager, Department of Examination, Federal Reserve Bank, Boston, Mass. Dear Mr. McRae: I am returning herewith the questionnaires received with your letter of July 12. The only changes in our laws which seem to apply are noted on pages 4 and 8. As you no doubt recall, in this state trust companies are banks and there are no other state chartered commercial banks and no stock savings banks. Yours very truly, Sanger N. Annis, Bank Comissioner. SNA/N ( •• • COPY STATE 0 F VERMONT DEPARTMENT OF BANKING AND INSURANCE MONT PELIER July .20, 1532 Mr. William D. McRae, Manager Department of Examination Federal Reserve Bank of Boston Boston, Mass. Dear Mr. McRae: There is enclosed herewith the figures called for in regard to changes in our State laws relating to Banks and Trust Companies, requested by you in your letter of July 12, which we trust will be found helpful to the Committee. In this State there is no distinction between commercial banks and stock savings banks, and trust companies. For this reason, where we have given the gist of changes in laws relating to commercial banks and stock savings banks, we have indicated that the same provisions apply to trust companies. Our law gives trust companies authority to transact a general banking business and consequently they are the commercial banks of our State system. Trusting that I will have the pleasure of seeing you at Philadelphia next week, I am, Yours truly, P. C. Clark, Commissioner of Banking and Insurance. Encl. COPY gam& STATE Om" •ww• oF5511gliauz-- STATE CAPITOL HARTFORD July 19, 1932 Mr. WM. D. McRae Federal Reserve Bank Boston, Massachusetts Dear Mr. McRae: Complying with your recent request, 17e enclose herewith the various sheets you sent Is for notation as to the former and present provisions of the Connecticut statutes relating to banks. Inas;:luch as you say not to include changes which apply only to mutual savings banks we have said nothing relative to the savings departments of trust companies which are subject to the same laws as the savings banks. In this state, however, the deposits of such departments are segregated and not mingled with the funds of the commercial department, so such department is in effect a separate institution as far as the laws governing the investment of such funds is concerned. In order that you may have a more complete schedule of the laws relating to banks at present in force, we are also sending you under separate cover a copy of the booklet giving the laws of this state relating to state banks and trust companies. If we can be of any further assistance to you, please advise us. Very truly yours, William P. Landon, Manager, Bond Department WPL:ERM Encl. Beptember 12, 1932 Mr. Frederic H. Curtiss Federal Tieserve ;.gent Federal Reserve Bank Boston, Massachusetts Derir lir. Curtiss: On July 9tIv we sent ,“ra a Questionnaire regsrding the changes in tate ban1iing laws, and requested that you scours for us, if possible, this information for the 6tates in your district. We realize that it is not easy to secure information of this naturs from the overworked jtate banking departments. Hovever, we are now trying to finish this report and abould appreciate it very much if you could expedite the preparation of this meterial for those jtates which have not yet uplied it. Very truly yours, E. A. Goldenweiser Chairman, Committee on Branch, Group and Chain Banking. S• *tate of El!obt islanb an tiroothr lonles Vault Tutunti.sMnurriB @flirt *lair iqoutir, Ilrnnibrurr LATIMER W. BALLOU COM M ISSIONER EDWARD J. LITTLEFIELD July 14, 1932. DEPUTY COMMISSIONER To Federal Reserve Committee on Branch, Group and Chain Banking:- The Rhode Island Banking Laws governing the subjects covered by this questionnaire have not been changed in effect during the period named. In many cases there is no statute covering these questions. At the present time the only banks doing a commercial banking business under State charter in Rhode Island ' are Trust Companies. BANK COMMISSIONER. 4111100."- July 9 0 1.932 Mr. Frederic H. Curtiss Federal Reserve gent Federal Reserve Bank BoLten, Massachusetts near cr. Curtiss: The Federal Reserve Committee on Branch, Group and Chain Banking is very anxious to obtain a summary of the important changes in 6tate legislation regarding banks and trust companies since the inauguration of the Federal eserve 4stem. This is for use in a study of the effects upon our banking structure of competition betgeen various classes of bnnking institutions. For some phnses of banking legislation (e.g., reserve requirements and the operation of branches) our information is already fairly complete. In other respects, however, it is inadequate, and we would like to ask your assistance in filling in these deficiencief,.. The enclosed mimeograahed forms Dutline six-:oifiwilly the information desired. ...could .c)u ne able to obtain for U6 tnis information from the banking departments of the .Aates whose capitals lie !- :ithin your district, or from your legal department? It is not necessnry tivt we have all the details of every law bearing upon the points enumerated. ,e want to know what changes have ocourrc-d since 1914 which h ve a significant bearing upon the operrtions of banking institutions and upon the types of assets held by banks. Very truly yours, E. I.. Coldenweiser Chairman, Comaittee on Branch, Group and Chain Banking, Eno. WM. Jw 1, 1932 Miss Marian Eaton Librarian Federal Reserve Bank Boston, Massachusetts Dear Miss Eaton: de have just returned to you within tne past few days tne volume of the Massachusetts Bank Commissioners Reports which you very kindly borrowed from the Massachusetts State Library and sent to us recently. I find that we returned it a little too soon for there are still two quotations that we should like to verify. I think, however, you can probably make the verification for us. de quote on page 41 of tne report for 1853 as follows: "No loan or discount shall be made, nor shall any bill or rote be issu,q1 by such bank, or by any person on its account, in any other place than at its banking hmse." 4e also use a sentence in which there is a quotation from the same page. Our sentence with its quotation reads as follows: "It also required that every bank 'be kept in the town in which it is a:tablished, and in such part of such town as is ?rescribed by its charter:0 Will you please compare oar quotations with the original in the report indicated and inform us if they eve correct? Very truly yours, J. H. Riddle Secretary. Committee on Brancn, Group and Chain Banking June 10, 1K2 Mr. Frederic '.;urtiss Fec:eral Reserve 4',..ent Fe.ierul Reserve 3ank Boston, Massachusetts Dear 1.1r. Curtiss: The Committee on Branch, Group and Chain Banking 77isheE to know the basis of the classification, in the reports of the Comptroller of the Oarrency, of ate banking inotitutions into State (commercial) banks on the one hand and loan and trust companies on the other. The office of the Comptroller informs us that this classification is made by tho rosprmitive banking departments when the figures are reportd to him. Could. you, therefore, find out from the banking departments of the following States, the basis for the aistinction between I commercial banks and loan and trust companics? Maine Kew Hampshire Vermont Massachusetts Connecticut Rhode Island Very truly yours, A. Colaenweiser Chairman, Canuittee on Branch, Group and Chain Banking. June 4, 193;4 Mr. Frederic TT. Curtis3 Federal Reserve Agent Federal Reserve Bank Boston, Massachusetts Dear Mr. Curtiss: In recent years there have been many changes among banking institutions from national charter to State charter and vice versa. These changes have occurred through both conversions and consolidations. The Committee on Branch, Group and Chain Banking, in connection with its study of the dual banking system, is desirous of obtaining accurate information as to the motives for these cklanges. We are enclosing herewith a selected list of these conversions and consolidations in your district, and should appreciate it if you will address an inquiry to each institution asking for a statement of the reasons or considerAions which prompted then; to convert from one charter to the other, or, in the case of consolidations, why one charter was chosen in 1reference to the other for the continuing institution. If we can secure from these institutions frank and adequate replies to this question, it will doubtless shed much light on the competitive factors between the two banking systems. While we exiect to tabulate and com:„ent on the general results of the replies received, the answers of the individual banks will be hell in strictest confidence and, of course, no banks will be mentioned in our report, or designated in such manner as to be recognised. We are submitting this question to nearly one hundred banks in the various districts in order to secure a fair sample for the country as a whole. Very truly yours, 'nc F. A. Goldenweiser Chairman, Committee on Branch, Group and Chain Banking. • District No. 1 Conversions from atate to National Charters Conversions from Nation-1 to itate Charters Portland, ile. 1929 Chapin' National Bank - Chapman Bank and Trust Co. Casco Mercantile fruit 0**) (Later Consolidations ,wherc 3, ioniolL mg3 1_arter was Adots Boston, Kass. 1923 Camommialth Trost Co. (30). Fourth Atlantio National Bank (37) ) Fourth Atlantic litimml Deft ) (Later - Atlantic Ist/ONAI Mit) Consolidations where 3tate Charter was Adopted Hartford, Conn. 1926 Pheonix National Bank (14) 3tate Bank Trust Co. (8) Phoenix 3tate Bank and Trust Co. * Numbers in par, ntheses indicate aproximate loans and investments in millions of dollars. June 2, 1932. Mr. Frederic H. Curtiss, Federal Reserve Agent, Federal Reserve Bank, Boston, Massachusetts. Dear Mr. Curtiss: In reviewing material on early examples of branch banking in this country we find references to reports of the bank commissioners of certain New 'England States which are not available in Washington, and we should be obliged if you could help us procure the information we lesire. On pages 141-142 of Professor Davis R. Dewey's State Banking.Before the Civil 3a, it is said that banks in Connecticut and Rhode Island established agencies at other than their regular place of business, and reference is made to the Reports of the Bank Commissioners of Connecticut, 1537, 1838, regarding the practice. In Rhode Island in 1836 a law was passed forbidding the same thing, and in Massachusetts also, apparently about the same time, it was likewise forbidden. It is also said that the Massachusetts Bank Commissioners had difficulty in 1852 and 1853 in restraining country banks from establishing Agencies in State Street, Boston, and transacting business tiere; and reference is made to the Second Report of Bank Commissioners of Massachusetts, 1852, page 8, and to the Bankers Magazine, 1853. It does not appear that the banks established numerous permanent branches, nor that it as a lane of city banks extending their activities into the snAller towns, but rather of country banks going into the larger centers to pick up Wetness. We have the Bankers Magazine of 1853, and the laws • June 2, 1932. Mr. Curtiss, rage 2. of Massachusetts, Rhode Island, and Connecticut, but the Commissioners Reports (Massachusetts 1852 and 1853, Rhode Island 1836, Connecticut 1837, 1638) we do not have. Would it be possible, without too great trouble or delay, for you either to make copies of the pertinent passages from these reports for us, or preferably to arrange for the reports to be sent us for brief examination? We assume that the Massachusetts reports, at least, are in the Boston Public Library. Very truly yours, E. A. Gollenweiser, Chairman, Cmr.Attee on Branch, Group and Chain Ranking. • do* FEDERAL RESERVE BANK OF BOSTON FREDERIC H.CURTISS ROY A.YOU NG. GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL K. CARRICK, SECRETARY CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLUS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAVITT CARL B. PITMAN L. WALLACE SWEETSER CHARLES F. GETTEMY ASSISTANT FEDERAL RESERVE AGENT ,1% Mr. E. A. Goldenweiser, Chairman, Comnittee on Branch, Group and Chain Banking, Federal Reserve Board, 77ashington, D. C. Dear :dr. Goldenweiser:— I am enclosing, herewith, the three tables \ called for in your letter of ..arch 12, 1932; these tables being made up on the forms accompanying your letter and classified in groups according to the instructions contained therein. Very trrly yours, Henry R. Bowser, :janager Financial Statistics Division HAB/s c' . ( 1T4 -crro L. • 0 March 12, 1932 Mr. Frederic H. Cirtiss Federal Feserve Agent Federal Reserve Bank Boston, Massachusetts Dear Mr. Curtiss: ?or the purpose of assembling certain requested information in connection with proposals for guaranteeing bank deposits, we have prepared the attached tables calling for three items to be taken from the "Analysis of Bank Iarnings" schedules which you prepared for the Committee last year. You still hold these schedules in your files and the items desired are J., K. and A. on page two. You will note that the tables call for aggregate dollar amounts for all national banks in each size group. This nntails arranging the analysis blanks fcr each year by size of loans and investments, if they are not already so arranged, and then tabulating the figures for each year for each size iroup. In the cabe of each item a separate table should be prepared for each state or fraction of state in your district. In view of the purpose for which these data are needed it will be apprnciated if you can expedite the compilations. Very truly yours, E. A. COldenweiser Chairman, Committee on Branch, Group and Chain Banking. Eno. FEDERAL RESERVE BANK OF BOSTON FREDERIC H.CURTISS ROY A. YOUNG, GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL K. CARRICK, SECRETARY CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLUS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAVITT CARL B. PITMAN L. WALLACE SWEETSER CHARLES F. GETTEMY ASSISTANT FEDERAL RESERVE AGENT January 20, 1932 Mr. E. A. Goldenweiser, Chairman, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Goldenweiser: In accordance with your letter of January 5, 1932i I enclose reports on five suspended banks in this district. Banks numbered 1 to 4 are the banks listed in your letter under those numbers and bank No. 5 is the Middlesex National Bank of Lowell, Massachusetts. The information contained is in three parts corresponding with the paragraphs numbered First, Third and Fourth in your letter. In regard to the Second paragraph of your letter would say that all of the banks concerned were national banks and, therefore, under the supervision of the Chief National Bank Examiner. The officers of this bank had many conferences with the Chief National Bank Examiner in regard to the condition of the banks, but all corrective measures were taken by him so that there has been no direct correspondence with the banks in this respect. Yours truly, 4/ 1 4 4.4v D. Enclosures ijit Frederic H. Curtiss, Federal Reserve Agent. • January 5, 1932 l'ar. Frederic H. Curtiss Federal Reserve Agent Federal Reserve Bank Boston, Massachusetts Dear ;:.r. Curtiss: In the early part of this year the Committee initiated a study into the causes of bank failures which consisted in compiling the case histories of 120 bombs for several years prior to suspension. These 120 banks were selected From suspensions during 1921-1930 and the material is now being analyzed. In view of the large number of suspensions during 1931, however, as well as the differences in location and faotors involved, it is felt thlt no study of suspensions would be ade:uate unless it covered that year. Therefore, 100 banks suspending in 1931 have been selected in a manner which should make them representatire of this year's fatalities. Those selected from your district are given on the attached list, and we should appreciate it if you would give us the recent histories of these banks in a000rdance with the instructions. The information desired consists of four parts. First, the comments of the national or dtate bank examiners, as the case f.ny be, from the beginning of 1920 till suspension. The form in which these comments should be drawn up is explained in the enclosed mimeographed instructions to which is attached Exhibit 1, an illustration. As an aid to interpretation these comments are interspersed with certain figures showing in a general way the oondition of the bank at the time of each examination. Artain other data are also called for, such as population figurea and earnings. These are covered in the mimeographed instructions. second, the coaments of Federal reserve examiners regarding these banks during the sa-ce period, together with any correspondence, memoranda or other material in the files of the Federal reserve bank calich will aid in understanding the condition and operation of these banks prior to failure. No special farm has been drawn up for compiling this material, but in so far 88 feasible it Should be listed January 5, 1932 Mr. Frederic H. Curtiss, 42 chronologically as in the case of the comments of the national and .State bank examiners. Third, a photostat copy of each bank's bond and other security holdings on three different dates; (1) at or :ust prior to suspension; (2) approximately one year prior to suspension; and (3) approximately two years prior to suspension. Fourth, detailed statistical data taken from the examiners' reports and recorded on "Form F" from 1920 to the date of suspension. copy of this form and oomments regarding its preparation are enclosed, and a supply of th forms is being forwarded to you unuer separate cover. In case the hizAory of any bank in the list is not available Inrie of some other typical susfor any reaaon a substitution should be , pended bank in your distriot. In view of the urwrit necessity of completing this report at an early date we hope you will have this material compiled and forwarded to us as soon as possible. Perhaps you can let us have it by the 20th of this month. Very truly yours, E. A. Goldmweiser Chairman, Committee an Branch, Group and Chain Banking. Eno. Suspended Banks elected for Case, Studies Boston District 1. ?ederal National Bank 2. Boston Continental Nat'l Bk. 3, State National Dank 4. Comectiout River Nat'l Bk. tr. *Inman Trust Company ro.k • Boston, :lass. Boston, Mass. Lynn, Maes. Charle5tovn, E. H. Cmnb-rldgef mass. , This is a l'Aate bank and if its history is not suffioiently complete for our purposes, please substitute a national bank. We suggest the tliddlesex National Bank, Lowell, i.assachusetts. 410 41116IDZTIAL BANK SUSPZSIONS IN TH:] BOSTON DISTHICT DURING D.IC_LIBER 1931 Name of bank and location Date Dec. 17 15 15 15 15 19 15 18 17 23 23 24 18 16 21 15 17 26 17 15 16 15 15 14 24 23 **Deposits (In thousanCsj Boston Continental rational Bank, Boston, Mass , Federal National Bank, Boston, Mass. 1,," Mass.$*' Gloucester, Bank, Gloucester rational Lowell, mass. Middlesex National Bank, V State National Bank, Lynn, Mass. Charlestown, H. H. Bank, National Cornecticut River *Inman Trust Company, Cambridge, Mass.Aef Danielson Trust Company, -)anielson, Conn. Hamtien Bank & Trust Co., Hamden, Conn. Broadway Bank & Trust Co., New Haven, Conn. Merchants Trust Co., .aterbary, Conn. West Haven Bank & Trust Co., .est Usven, Conn. Windsor Locks Trust & Safe Deposit Co., :indsor Locks, Conn. International Trust & ,ankin Co., Calais, 71aine Charlestown Trust Co., Boston, Mass. Brockton Trust Co., Brockton, Plymouth County Trust Co., Brockton, Mass. Haverhill Trust Co., Haverhill, Mass. Arlington Trust Co., Lawrence, Mass. . 0" Lawrenoe Trust Co., Lawrence, Mass.440 Lowell Trust Co., Lowell, :ass. Salem rJrast Co., Salem, Mass. Bancroft Trust Co., -,7orcester,---Mass./.... guaranty Trust :o„ Berlin, N. F. 4Kazemekas Sc Co., Inc., Thterbary, Conn. Traurig Co., ':;aterbury, Conn. 4Sanditz * State bank member # Private banks "Latest bankers directory 6 366 28,959,1,732 4,671 2,3211/-402 7,760 2,893 1,924 2,948 6,894Pr 2,7-66 1,197 1,511 3,495 1,384 3,813 2,894 A,851 9,701 7,784 :2,160 6,112 775 700 200 / FEDERAL RESERVE BAN K OF BOSTON ROY A.YOUNG GOVERNOR December 7, 19;:a Chester K. Federal neserve 3oard, Washington, D. C. Secretr Dear FLtLe_r : This will acknowledge receipt of_,y2IEJ TaT prepa data 1 • n .q. co . . 2 enclosing cepa of_Des9DINL and Chain ro h, bY the Federal Reserve Committee on Branc d found it I read the report in detail Sunday Banking. all extremely interesting. Permit me to thank you for send the info to me. Yours ve u y, Governor. ation December 2, 1931. nr. R. ielung, Governor, Federal -erve Bank, Boston, Massachusetts. Dear (2-(;T:_;_ir Young: During the meetinc today with the Governors' Conference of the Federal Reserve Committee on Branch, Group and Chain Banking a request was made that each Governor be furnished with a copy of the confidential data submitted recently to the Sub-committee of the Committee on Banking and Currency or the United States Senate which is enzaged in a survey of the operation of the National and Federal Reserve banking systems. A copy of this data is enclosed herewith and it is requested that you also regard it as confidential. Very truly yours, iSigned) Chester Marti! Chester Eorrill„ Secretary. ri November 4, 1931 Lir. Charles F. Gettemy Assistant Federal Reserve Agent Federal Reserve Bank Boston, Massachusetts Dear Mr. Gettemy: Thank you for your letter of Nove:aer 2nd in which you enclosed copies of the inveEtment lists of fifty selected national banks in the Boston dlstrict with available ratings assigned to individual items. Very truly yours, J. H. Riddle Secretary, Committee on Branch, Group and Chain Banking. -14 Os O• FEDERAL RESERVE BANK OF BOSTON FREDERIC H. CURTISS ROY A.YOUNG, GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL K. CARRICK, SECRETARY CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAVITT CHARLES F. GETTEMY CARL B. PITMAN L. WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGENT Federal Reserve Board, Washington, D. C. Gentlemen: Attention - Mr. Secretary, Committee on Branch, Group and Chain Banking, We have your letter of October 31, 1931 quality index -OP- investment accounts of banks in this district. In accordance we are enclosing the lists of the fifty in regard to the fifty selected with your request, banks. We are also enclosing a list of the dates as of which the examinations were made and the total loans and investments and total capital, surplus, profits and reserves of these banks. The numbers in the left hand column of this list correspond with the numbers in the upper right hand corners of the bond lists. Yours truly, WDM:D Enclosures Charles F. Gettemy, Assistant Federal Reserve Agent. October 31, 1931 Mr. Frederic H. Curtiss Federal Reserve Agent Federal Reserve Bank Boston, Massachusetts Dear Kr. Curtiss: We are glad to learn from your letter of October 29th that the work of assigning ratings, where available from published sources, to the securities of fifty selected national banks in your district has been accomplished. To facilitate the construction your district on a comparable basis with been prepared elsewhere, we suggest that us the copies of the investment lists on ratings have been set against individual we may complete the project. of the indexes of those which have you forward to which available items so that Very truly yours, J. H. Riddle Secretary, Committee on Branch, Group and Chain Banxing. FEDERAL RESERVE BANK OF BOSTON FREDERIC H. CURTISS ROY A.YOUNG, GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL K.CARRICK, SECRETARY CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAVITT CHARLES F. GETTEMY CARL B. PITMAN L. WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGENT October 29, 1931 Mr. J. F. Riddle, Secretary, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Riddle: I have your letter of October 23, 1931 in regard to the quality index of investment accounts of fifty selected national banks in this district. We have completed the work of putting the ratings against each individual item in every case where ratings were available. We enclose a list of the securities for which we could find no rating, and I understand that you are going to supply us with ratings for use in connection with these securities. On receipt of these ratings it will only be necessary for us to compute the index figures in order to complete the work. Yours truly, 4/1/ D. Enclosure, 'r Frederic H. Curtiss, Federal Reserve Agent. October 23, 1931 Mr. Frederic H. Curtiss Federal Reserve Agent Federal Reserve Bank Boston, Massachusetts Dear J1r. Curtiss! In our letter of July 16th we requested that you prepare a quality index of the invest:nent accounts of fifty selected national banzzs in your district. ;;ci are now working on this ph“se of the Coilmittee's study and ahould appreciate your infor:aing uz of the progress you have made on this project. 7ery truly yours, J. H. Riddle Secretary, Committee on Branch, Group ary! Chain Banking. October 9, 1.931 Mr. Frederic H. Curtiss Federal Reserve Agent Federal liaserve Bank Boston, Massachusetts Dear Mr. Curtiss: Thank you for your letter of October 7th enclosing inforovition regarding building and loan associations in the New England states. Very truly yours, J. H. Riddle Secretary, Committee on Branch, Group and Chain Banking. September 22, 1961 Mr. Frederic R. Curtiss Federal Reserve Agent Federal Reserve Bank Boston, Massachusetts Dear Mr. Curtiss: As you doubtless know, the Federal Reserve Committee on Branch, Group and Chain Banking expects to include in its report a chapter on the oompetitiod encountered by banks on the part of non-banking institutions, notably building and loan associatIons, saving' and loan associations, and similar societies conductod on the mutual or cooperative principle. Several of the Federal reserve banks have beeh good enough to compile and transmit to us Ranh valuable information. which in the main will be sufficient for our purposes. h are anxious, however, to make sure that the report shall not fall to take account of any new developments of importunee which may have oesurred in .ecent months, particularly with respect to the manner in which bwildint; and loan associations have met the conditions arising out of banking crises in various localities. Since ae hope to complete this part of the report in a few weeks, manifestly there will not be time for an extended inquiry; but we Shall be glad to have any infermation you can furnish, without too much trouble, as to oonditions in your district. We should like to know, for example, to what extent the assets of building and loan associations are "frozen," whether more or less seriously than the real estate loans of the bake; whether in general the associations have been Obliged to invoke the full extent of their privileges under the law in the matter of requiring notice for payment of the withdrawal value of their shares, or of their deposits, as the case may be, and whether there has been in the pat t:elve montL any considerable increase in buildinE and loan failures, as compar.ni 1141 the years 1928 and 1929. We shall greatly appr (date a reply along the lines indicted at your earliest convenience. Very truly yours, Goldenweiser Chairman. Committee on Br:Inch, Group and Chain Banking C.C. to Dr. Goldenweiser Augast 1%, 1931 Ur. Frederic H. Curtiss Federal Reserve Agent Federal Reserve Bank Boston, Ilassachusetts Dear Mr. Curtiss: "Ve are returning under separate cover the lists of securities held by each of fifty selected national banks in your district which you prepared in accordance with our letter of June 25th. The Committee requests that you indicate the rating assigned by you to each security for which you could find no published rating and that you identify each security classified as "not rated" or "not listed." If adequate information concerning a particular security is lacking and you have assigned an arbitrary rating, the rating should be noted as being arbitrary. Very truly yours, E. A. Goldenweiser Chairman, Committee on Branch, Group and Chain Banking. July 27, 1931 Mr. Frederic H. Curtiss Federal Reserve Agent Federal 116serve Bank Boston, Massachusetts Dear Mr. Curtiss: Receipt is acknowledged of your letter of July 24th with the corrected records regaraing affiliations. We have not yet had an opportunity to examine these records, but if any question should arise later we shall communicate with you at that time. very truly yours, J. H. Riddle Secretary, Committee on Branch, Group and Chain Banking. ,„ FEDERAL RESERVE BANK r OF BOSTON FREDERIC H. CURTISS ROY A. YOUNG, GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL K. CARRICK, SECRETARY CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLtN HOLUS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G H ULT ERNEST M. LEAVITT CHARLES F. GETTEMY CARL B. PITMAN L. WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGENT July 24, 1931 Mr. E. A. Goldenweiser, Chairman, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Goldenweiser: Please refer to your letter of July 6, 1931 in regard to bank affiliations in New England. We have gone over your forms very carefully and have made corrections and additions insofar as we have information available. Most of the information in regard to Fairfield County, Connecticut, is probably contained in the reports of the national bank examiners which are held by the Federal Reserve Bank of New York. We have not attempted to check the forms for this county, but are returning them herewith. It is often difficult to determine definitely what relationship exists between a commercial bank and a mutual savings bank. The fact that there are several common directors does not necessarily prove that they have the same management. There is at least one case in this district where they occupy the same rooms and still it is claimed that each is independent. There were a number of cases of non-member banks about which we have no information in regard to stock control, but we do know that they have the same management. In these cases we have filled in "Same management" as that was the only definite information we had. In the Connecticut forms we have eliminated several sheets on which were listed a bank and a security company. Ten of these security companies, most or all of which were affiliated with banks, were recently consolidated into the Connecticut Investment Management Corporation. The stock of this company was distributed in proportion to the contribution of each of the old companies, and so far as we know, the now company is not dominated by any single bank. Yours truly, 4 N.A.11 D. Enclosures •NIMINONIMMAIM.11.1••••••......••••• Frederic H. Curtiss, Federal Reserve Agent. Any 23. 1931 Mr. Prederic I. Curtiss Bederal Baserve Agent Moral 'Verve Balk Boston. Massachusetts Dear Mr. Curtiss: In regard to the bond index to which you refer in your letter of July 18. we have felt that an analysis of sample banks throughout the country will give us some estimate of the wisdom with which bond accounts have been handled by the banks. and the degree to which their leak of liquidity may be attributable to their investment policy. I an not sure that we will obtain the desired results, but the effort appeared to be worth making. I expect to be in Boston some time in the course of the suLser. probably in connection with the Committee on Reserves. My family is now in Brewster. and I expect to join them there some ttme in August, to stay until after Labor Day. OR the Ay there or back I an sere I will stop at the bank. mad hope to see you thea. It was very kind of you to invite us to stop at your house, and I am sure that we will be very kappy to do so if we have a &lance. Sincerely yours. I. A. Goldeaweiser. "•• FEDERAL RESERVE BANK OF BOSTON FREDERIC H CURTISS CHAIRMAN July 18, 1931 Dr. E. A. Goldenweiser, Director, Division of Research & Statistics, Federal Reserve Board, Washington, D.C. Dear Dr. Goldenweiser: I am in receipt of your favor of the 16th enclosing description of an index which has been devised for the purpose of measuring the quality of the security holdings of banks and asking us to prepare such an index, using the list of the fifty banks which 71.1 spnt us on June 25th.;', Te shall start on this at once and will send you the result of our work as soon as possible. Of course you must realize that there is considerable work involved in preparingan index along the lines that you suggest. I cannot help but wonder what possible use this will be after you get it. At the present time the bond market is so unsettled that I doubt very much whether the ratings which we Kill find in the different volumes will amount to very much. Apart from this fact, there is so much dependant on the particular policy of each bank in reference to the turn—over of securities and their method of buying that I cannot help but feel that the results wi:- tell but very little. I appreciate fully the importance of the bond account of our member banks and have been giving this subject considerable study during the last year or so. In fact, I have tried certain experiments with some of our member banks in reference q.„the selection of bonds, and am frank to say that I think we/some fair success in this district getting our member banks not only to have a definite policy in reference to their bond accounts but also to make a greater study in reference to the selection and diversification of securities bought. The New England Council this Fall intends to have a meeting at which bank management is to be the principal subject discussed, and at this meeting a paper is going to be read by one of the country bankers in this district who has been working with me endeavoring to outline a bond policy for his own bank. We also expect to have this subject discussed and papers read at our stockholders' meeting which comes in November. I sincerely trust that you are going to visit us this summer in order that I may have the opportunity of seeing you. Mrs. Curtiss and I shall be very glad to have you and Mrs. Goldenweiser stop over with us at our house on your way to Brewster, if you find it convenient to do so. Dr. E. A. Goldenweiser, Federal Reserve Board, Washington, D.C. 0 July 18, 1931 With kindest regards, I am Very sincerely yours, Federal Reserve Agent. FHC/D July 16, 1931 Mr. Frederic H. lurtiss Federal Reserve Agent Federal 3eserve Bank Boston, Massachusetts Dear Mr. Cairtiss: are sending you a description of an index whioh has been devised for tbe purpose of measuring the quality of the security holdings of banks. The oonstruotion is staple and is rally explained in the attached memorandum. The Committee desires to have this index computed for a representative list of banks scattered throu7hout the country in order to determine something of their investaent policies. On June 25th we sent you the names of 50 banks in your district lith the re,-uest that you Lend us a list of the securities held by each at the time of the last examination in order that ve might make an analysis of these securities. ?or each of these 50 lists of securities we should like to have you pre-)are an index in accordance with the enolosed example and the accompanying instructions. If you Peel that the 50 banks will not be maffialently repreaentative of your district, you might enlarge the list. We are sending you under separate cover a supply of forme for use in camputing the Index. Iery truly yours, E. A. Goldenweiser Chairman, Committee on Branch, Group and Chain Banking. Eno. July 6, 1931 Mr. Frederic H. Curtiss Federal Reserve Agent Federal Reserve Bank Boston, Massachusetts Dear Mr. Curtiss: We are encl sing for your examination certain material on bank affiliations in New England which we h-ve compiled on a special form (?orm O) for use with the iederal Reserve Board's rroords on the subject. It covers securities oompanies and other non-banking affiliates as Nell as affiliations between two banks. The Board's existing rPcords on chains and groups, which are based on reports furnished by the qeserve Banks in compliance with the Board's letter, St. 6386, November 18, 1929, do not include information on these two items. Specifically, this compilation has been prepared to include the following kinds of affiliates of banks: (1) All um-banking affiliates of state and natioml banks, includin7 securities companies, mortgage companies, investment trusts, insurance companies, holding coin-Antes, foreign banking companies and ssfe de *sit companies. In each case the name of the bank and the names of its subsidiaries or affiliates are given. (2) All affiliations between two banks only. This affiliation may exist either through common stockholding interest, trusteed stook, direct ownership, or other means. The clnmonest examples of this are the affiliation of a trust companr with a nationra bank and of a savings bank with a comparcial bank. The compilation has been made principally from three general sources-Moody's Manual of Banks, the directory of Security Dealers of North America, and Hand McNally's Bankers' Directory. Our re:nest is that you check our oompilation, make the necessary corrections and additions indicated by your credit files, examiners' reports, and other sources of information, inoluding reference where advisable to the organizations themselves, and return the revised material to us as soon as possible. July 6, 1931 Mr. Frederic H. Curtiss, #2 A memorandum is encloscd which explains the terms used in the compilation, and gives such other information as is necessary to interpret and correct it properly. Very truly yours, E. A. Goldenweiser Chairman, Cannittee on Branch, Group and Chain Banking. Foderal Reservy Committee un Branch, Group and Chain Banking July 6, 1931 AFFILIATIONS Explanation of Information compiled on Fora C Perm C has been prepared for the purpose of oompiling information regarding the fellowing types of affiliates of banks: (1) All non-banking affiliates of state and national banks, including securities oompanies, mortgage oompanios, investment trusts, insurance comm. ponies, holding companies, foreign banking companies and safe deposit oozapanies. In each ease the name of the bank and the names of its subsidiaries or affiliates are given. (2) All affiliations between two banks oily. This affiliation may exist either through common stockholding interest, trusteed stook, direct ownership, or other means. The commonest examples of this are the affiliation of a trust oompanj Ath a national bank and of a savings bank with a commercial bank. The information described is intended to supplement the existing records of the Federal Reserve Board on the subject of Chain and group affiliations, mid& at present include only affiliations comps/sing three or more banks. It is desired that the material compiled on Form C examined by the Reserve Dank, checked for accuracy and completeness with its records, and returned to the Committee. It is assumed that the Reserve Banks already have records of this information in some form for their own use, but if not, perhape a check may be made by referenoe to credit files and examiners' reports, or, where advisabte, by direct reference to the organizations which are listed. The compilation has been made as of current date in so far as possible. Changes and oorrections in the information may be made directly on the face of the Perm itself if desired. A supply of blank forms is also enclosed for recording affiliations that need to be added. Perhaps the most important single item of information is the mode of control of affiliates, ehich is set domn in the second column of Form C. In the majoeity of affiliations there is one bank or corporation which is dominant over the other affiliates, and whioh is controlled not by any other bank or corporation, but by its own gmmeral stockholders. Acoordingly wherever the name of the dominant meeiber of an affiliation appears, apa. the words "General stockholders" have been used in the column headed "Bow oontrollod." It nakes no differense whether the stook is cloaely held or. not. Thus, for exempla, the First National Bank of New York is oontrollod by its general stockholders, so far se this study is oonoerned. The First Securities Company, however, is controlled by the First National through trusteeship of Cie securities company's stook. Aecordingly, in the proper column the words "General stockholders" are used to deeoribo the °control of the bank itself, which is dominant, and the words "Stook trusteed for First National" are used to describe the oontrol of its affiliate. In summary, the neans or i:lanner of control uill oome under the following five heads: 11 I Ownership of controllin6 stook:by general stookholdere. This applies to the dominant monitor of the affiliation. II Trusteeship of the stock of one member of the affilia.. tion for the stockholders of another member of the af6 filiation. I/I Ownership of controlling stook of one of the atfiliation by another meMber, the stookmember• being a direct asset of the latter member. IV Ownership of the controlling stook of the different memp berg of the affiliation by an individual or group of in. dividuals. 1r Control of one member of the affiliation by another memp ber, not through ownership of control of stock, but through the fact that the offioers of the dominant member are also officers of the oontrelled mother. This applies in the ease of mnfm*1 savings banks. In the oase of II, III, and IV the per oemt of a subsidiary's stock that is ownod should be given where it is bosun. even though the compilation as it stands sham only "majority" orIalmorite interosto In oases where the per oent of stook owned is not knew. the terms, *minority interewt" or "imajority interest" should be um044, IMemples of denignations if the five different forms of control I T shown in the compilation follow: I "General stockholders"; as in the ease of the Chase National Bank, indieating that it is the dominant meMber of the Chase affiliation. "Stock trusteed for Chase National"; indicating how the Chase Securities Company Is controlled. III 'Majority interest owned by Irving Trust"; as in the case of Irving Investors Management Company. IT !Majority interest owned by same stookholders"; as in the case of the Putnam County National and the Mahopac Nation.. ml, the names of the neMbers of the affiliation being bracketed. V "Same Management"; an in the case of Bath National Bank, and Bath Savings Institution (a mutual savings bank) of Bath, Maine. In the absence of definite knowledge it is often difficult to tell whether a given interest should be called an investment or an affiliation, nffiliation implies participation in nanagementn whereas investment, as a rule does not. If as mush as 25 per cent of the stock of a bank or corporation is owned, thirster., the presumption is strong that there is participation in managements and that the interest may be called an affiliation. But if there is less than 25 per cent control there is much more question whether to call the interest one of affiliation or simply invest.. ment. In any given ease Aare the facts are known as to the extent of participation in management the interest should be classed accordingly, regardless of the per esst of control; but in the absence e knowledge of /such facts, the interest should be considered an investment if the control is less than 25 per cent. It is not the purpose, of course, to include investments in the compilation. It will be apparent from the foregoing paragraphs that certain terms are used in a special and perhaps novel NOW* The term affiliation, which is often used in a general sense implying the fact of a connection, is hero used in a particular sense as designating the group or eystem itself which is made up of the affiliates. Thus the "National City affilintion" consists of the National City Bank, the National City Company, the City Bank Farmers Trust Company, International Banking Cor.. poration, etc., all of these corporations being %sabers of the affi7.iam. tion." The National City Bank is the "dominant member of the affilintion," end the others, directly or indirectly, are "controlled or subsidiary members." The term affiliation as used therefore will apply to the case of two institutions linked together as well as to egroup" or "chain" of any number of institutions. The function of the concerns listed has been indicated as "bank" hich means also a trust company engaged in commercial banking, "securities," "holding," "insurance," "mortgage: etc. The information regarding the state issuing the charter and the date of the charter is desired for non-banking affiliates only and is not necessary in the ease of banks. 1.411* It is desired that the figures for capital stock and leans and investment be supplied by the Federal Reserve Bank. In the ease of banks the figures should be taken from the March call report, if practieable. In the case of affiliates, for whiah capital stook alone is to be given, the figures should be taken from the date nearest the March call report. It should be mode dear in all cases whether it is tne 6ank or a nonpbanking affiliate that holds control, It is also necessary to inp diaate all intermediate means of control, as in oases where a conoern that has a subeidiary is in turn the subsidiary of another. Jnly 3, 1931 Mr. Frederic E, Curtiss Federal Reserve Agent Federal Reserve Bank Boston, Massachusetts Dear Mr. Curtiss: we acknowledge with thanks receipt of your letter of July 211d enclosing photostatic copies of the investment lists of the fifty selected banks in your district. Very truly yours, J. H. Riddle Secretary, Coamittee on Branch, Group and Chain Banking. 1.44, • • • FEDERAL RESERVE BANK OF BOSTON FREDERIC H.CURTISS ROY A. YOU N G. GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL K.CARRICK, SECRETARY CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLUS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAVITT CHARLES F. GETTEMY CARL B. PITMAN L. WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGENT July 2, 1931 Mr. F. A. Goldenweiser, Chairman, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Coldenweiser: Referring to your letter of June 25, 1931, I am enclosing photostat copies of the lists of bonds, securities, etc. held by the fifty banks selected by you, at the time of the most recent examination. I have had noted on each one the amount of the total loans and the total investments on the date of the examination. Yours truly, D. Enclosures Frederic H. Curtiss, -" Federal Reserve Agent. June 25, 1931 Mr. Frederic H. Curtiss Federal Reserve Agent Federal Reserve Bank Boston, Nassaehusetts Dear Mr. Curtism We are enclosing herewith the name* of 50 banks in your district and would aobreciate it it you could send us a list of the bons, securities, etc., held by etch of them at the time of the lait examination. The Committo is undertaking to make an analysis of the investment holdings of a representative group of banks throughout the country in order to determine their investment policies. These Danko have been selected at random in order that they may be representative. Perhaps the investment list in each case, which usually appears on page 7 of the National bank eAmmineres report, can be photostated at a minimum of time and cost. Is rebaraiag these lists, it would be of mush assistance if you eould give the total loans and investments of each bank in order that me may group them according to size. The items included in total loans and investments are set forth in articles 1 to 4 inclusive of the Boarcts Form 105a. Very tr- ly yours, alnc S. A. Coldoneeiser Chairman, Committee on Branch, Group and Chair BaAin Fifty Selected National Banks in 1Cdera1 Reserve District No. 1 1. N. B. of New England 20 First N. B. 3. Naugatuek N. B. 4. New Haven N. B. A. 50 Plantsvilli N. B. 6, Thomaston N. B. 7, Hurlbut N. B. 8, Bath H. B. 9, Camden N. B. 100 Peoples N. Bo 110 Neter Fulls S. B. 12, Pi', afield N. B. 13, Rumford E. B. 14. Thomaston N. B. 15. Greylock N. B. 16, First N. B. 170 Boston-Continental N. B. 180 Brockton N. B. 19, Conmgy N. B. 200 Everett N. B. 21. Franklin N. B. 22, First N. B. 260 Hudden N.. B. 24, Merchants N. B. 25, State N. B. 26. Puoples N. B. 27, !Zonson N. B. za. Merchants N. B. 290 Northborough N. B. 50, Agricultural N. B. 31. First N. B. 320 Produce N. B. 33, Toansend N. B. 34. Webster N. B. 35, imitaintsunI. B. 36. N. B. of Wrentham 37, Peo lea L. B. 38, Derry N. be 39, White .:,lountain N. B. 30. Luconiu N. B. 41. :woskaag N. B. 42. First H. B 43. New Hampshire N. B. 44. Wolfeboro N. B. C). N. B. of Commerce 46. First N. B. 47. First N. B. 48. First N. S. 49. Montpelier N. B. W. Randolph N. B. 40 East Haddam, Meriden, Naugatuck, New Haven, Plantsville, Thomaston, Winsted, Bath, Camden, Farmington, Kezar Falls, Pittsfield, Rumford, ThomiLiton, Adams, Attleboro, Boston, Brockton, Coni.ay, Everett, Franklin, Haverhill, Madsen, Leominster, Connecticut Ii Ii Massachusett It 4Ynns Marlborough, Monson, Neeburyport, Northborough Pittsfield Revere, South Deerfield, Townsend, Nebster, • Wrentham, New Hampshire Claremont, Derry, • Gorham, Laoonia, Manchester, Newport, Portsmouth, • Wolfeboro, Providence, Rhode Island Bennington, Vornont Bristol, Snosburg Falls, Montpelier, Lay 26. 1931 :7;har1es F. aettemy Assistaalt Fc,uar:al 'Asecve Agent Federal Reserve Bank Boston, Llassachusetts Dear r. Getter: ,(3 acknowledge with thanks your lettr of Lay 25th with its enclosure of bank changes in Massa,chusetts for the year 1930 on Forns A-2 and A-3. Very truly yours, J. H. Riddle Secretary, Caasittee on Branch, Group and Chain Banking. FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A YOUNG, GOVERNOR WILLIAM W PADDOCK, DEPUTY GOVERNOR WILLIAM KRICKEL H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT WILLETT, CASHIER K CARRICK, SECRETARY ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS CHARLES ERNEST M. LEAVITT ELLIS G. HULT L. WALLACE SWEETSER F. GETTEMY ASSISTANT FEDERAL RESERVE AGENT Mr. C. B. Hammond, for the Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Sir: \ Referring to our letter of May 15, 1931 we enclose a report of bank ohnnges in Massachusetts for the year 1930 on Forms A2 and A3. Yours truly, WUM:D Enclosure Charles F. Gettemy, Assistant Federal Reserve Agent. Any 18, 1931 Mr. Charles F. Gettemy Assistant Federal eserve Agent 'Federal eserve Bank Boston, L:azsachusetts. Dear Mr. Getty: This will ackno-fledge with thanks your letter of May 15th enclosing reports of bank changes in New Hampshire and Vermont on forms A-2 and A-3. f3 note that there a2-e no ohanges to be reported for Rhode Island in 1930 and that the figures for 7;:assachusetts -.wive not yet been received. Very truly yours, J. H. Riddle Secretary, Com.littoe on Branch, Group and Chain Banking. CBH:CAH 0• • • FEDERAL RESERVE BANK OF BOSTON WILLIAM W WILLIAM PADDOCK, DEPUTY GOVERNOR WI L LETT, CASHIER KRICKEL K H FREDERIC ROY A YOUNG, GOVERNOR CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT CARRICK, SECRETARY ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS CHARLES F ERNEST M. LEAVITT ELLIS G. HULT L WALLACE SWEETSER GETTEMY ASSISTANT FEDERAL RESERVE AGENT Mr. C. B. Hammond for the Committee on Brarch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Sir: Referring to your _letter_of_April 14, 1931‘in regard to reports of bank changes on Forms A2 and A3, we enclose figures for the year 1930 for Verloont, and for the entire There were no changes in 1930 period for New Hampshire. for Rhode Island. We have asked the bank commissioner for the information for the State of Massachusetts but have not received it as yet. äe are calling the matter to his attention today and will forward the information as soon as we receive it. Yours truly, grimeadO 'WDM:D Enclosure (4r# gt6, Charles F. Gettemy, Assistant Federal Reserve Agent. Llay 14, 1931. Mr. Henry R. Bowser, Manager Pinancial Statistics Division Federal neserve Bank 6oston, iiiassachusetts Dear kr. Bowser: Receipt is acknowledged of your letter of ;ay 12th enclosing Tables I-e, II-e, IV-e and V-e, showing the classifications, the averages and the group aggregates o: national bank earnings for the ;/ear 1930. Very truly yours, J. H. Riddle Secretary, colnlittee on Branch, Group and Chain Banking. :A •• •• FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A.YOUNG.GovERNOP WILLIAM WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILL ETT, CASHIER KRICKEL K. CARRICK, SECRETARY H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT HOLLIS ALLEN DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAV L. WALLACE SWEETSER CHARLES F. GETTEMY ASSISTANT FEDERAL RESERVE AGENT May 12, 1931 Mr. J. E. Riddle, Secretary, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear 1 r. Riddle:Pursuant to the request conained in your letter of January 14, 1931 we are enclosing, herewith, the tables of national bank earnings on your forms IV-e and V-e, showing the I-e, II-e, classifications, the averages and the group aggregates. Very truly yours, henry R. Bowser, Manager Financial Statistics Division iiRB/s May 4, 1931 Mr. H. R. Bowser, Iianager Financial Statistics nivision Federal 'leserve 3ank Boston, Massachus, .tts Dear Mr. Bowser: Receipt is cknowledged of your letter of May 1st with the enclosed tabulations showing for the ratios in Tables I7-e and V-e the avera7e deviations frail the average. Very truly yours, J. H. Biddle Seoretary, Comaittee on Branch, Group and Chain Banking FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A YOUNG, GOVERNOR WILLIAM W PADDOCK, DEPUTY GOVERNOR WILLIAM WILL ETT, CASHIER KRIC KEL K CARRICK, SECRETARY ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HUL1 L. WAL LAC H.CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT CHARLES F. GETTEMY ET ASSISTANT FEDERAL RESERVE AGENT ETSER May 1, 1931 Mr. J. H. Riddle, Secretary Committee on Branch, Group & Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mt. Riddle:Pursuant to the instructions contained in your memorandum,under date of November 12, 1930, relative to the study of Deviations to be made on your tables IV-e and V-e we are enclosing . herewith the required tabulations. Each of these forms is in three sections showing for the Federal Reserve District as a whole (1) Average Doviation, (2) Average Division and (3) Group Aggregates. Very truly yours, Henry R. Bowser, Manager Financial Statistics Division HRB/S FEDERAL RESERVE BANK OF BOSTON ROY A. YOUNG, GOVERNOR WILLIAM FREDEMC PADDOCK, DEPUTY GOVERNOR WILLIAM WILL ETT, CASHIER KRICKEL K. CARRICK, SECRETARY W ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ERNEST M. LEAVITT CHARLES L. WALLACE SWEETSER F. GETTEMY ASSISTANT FEDERAL RESERVE AGENT April 22, 1931 Mr. C. B. Hammond, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Sir: We have your letter of April 14, 1931in regard to the report of bank changes on Forms A2 and A3. We have taken these matters up with the bank commissioners in the various states and hope to have the information for you at an early date. Yours truly, 'udDIJ:D Charles P. Gettemy, Assistant Federal Reserve Agent. April 14, 131 Frederic H. Curtiss Federal Reserve Agent Federal Reserve Bank Boston, Massac.husetta Dear Mr. Curtiss: In chccking over our returns fron various states on bank chagss, 0,Ach we mired to have filled put on /Orme Ln our letter of November lb, 1930„'we find A-2 and of the states in your district have not yeft been that some heard from in full. Thc figures for the ye-r 1930 have not yet been reported to us from Massachusetts, Ahode Island and Vermont, and no report at all of the hank changes since 1920 appears to have been received from New Hampshire. In order that we may lay out plans for the completion of this part of the study we should like to have you inform us how soon the records for the states we have mentioned may be expected. Very truly yours, C. b. Hammond Fo the Committee on jranch, Group and Chain Banking CBH:h itiarch 13, 1;31. Mr. Frederic H. Curtiss Federal Reserve Agent Fede?*al Reserve Bank Boston, Kassachusetts DeaiIn reviewing and ana/yzing the material on hAld relative to group banking preparatory to completine: thnt section of the Committee's rnport, 7?e. notice that you nsported with respect to the Federal National Investment Trust in your letter of Septemher 1:ith that, "owing to unusual circumstances the Federal National Investment 7rust is un. blo to file a renort at this time." If the situation has chnged so that a report could be securd frmn them row, Te would very much likr to have it, would appreciate aaytin7 70U may be )1(1 to do towards that end. If there have be,n any rleneral developments in the field of group banking in your district in recont months that you think would be helpful for as to know, we would anoreciate your writing us concerning them. 7ery truly yours, J. H. Riddle Secretary. Committee on ?,ranch. Group and Chain 3anking. February 213, .1.9.1 qr. Frederic H. Curtiss, Fedoral. Aooerve 1;A.lk of Boston, .)ear dr. Curtiss; sonneotiol; altL the eamings project of this Comoittee, f,re anxious to be infornad to the existence of statistics concorning the income acunts of st. baAls. Cur host infertion vt prenent Is tLnt tose -!' 'aankinc, dapartments that hf:,v7; oollocte! s%atistios Vise .1come azeounts of sto banks arc very exceptional. One iaportant exception of ge know is thLt of the Kansas department, the reports of vihich 'ave cortnined dat annually for the thirty yer_Lre of the century Ln which we are interested. Por the state barks of lcncae, information is Awn/shod 4hich will allow for the com2uttic-n of the annual rate of gross and net earnings on invested capital, :- he rate of exper.diturls fcc dsporqt,l, ard WZOS, other expenses, and losses. In other words, thSavailable over a low; period of time a rnth)r fUll consolidtltad annual income aelornt ,-)f 01 Itato brkFl of Kitnsas. should be glad if you will maks t ohack of all capitals lie within your district n:rd dethe stater; scribe to us what material, if any, exists in eaoh with respect to itcce of consolidated income ac(vunts for all or part of stte banks. Please tell us at the aama time in whct sources such material may be found. Very truly yours& 14 J. H. Riddle Secretary. Committee on Branch, Group and Chain Banking FEDERAL RESERVE BANK OF BOSTON FREDEMC ROY A YOUNG. GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM KRICKEL H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT WILLETT, CASHIER K. CARRICK, SECRETARY ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAVITT L WALLACE SWEETSER CHARLES F. GETTEMY ASSISTANT FEDERAL RESERVE AGENT Mr. J. F. Piddle, Secretary, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Rid3le: Receipt is acknowledged of your letter of 7ebruary 19, . We sent you a 1931 ir regard to bank suspensions. slhedule for the Terrimack River avings Bank of Tanchester, N. H. with our letter of September 18, 1930. In regard to the West Rutland Trust Company of West Rutland, Vermont, we are informed by the bank commissioner that a receiver was appointed on August 17, 1930 and that matters have not progressed to the point where it is possible to determine whether there will be any loss to depositors. Yours truly, P4. MD Charles F. Getteny, Assistant Federal Reserve Agent. February 19, 1931. Mr. H. R. Bowser, Manager, ?irnricial Statistics Division, ?ederal Reserve Bank of Bo:iton, BoLton, Masslichusetts. Tlear 1.1r. Bowser: Receipt is alknowledi of yr letter of 7ebrunry 17th.e -clo2ing duplicate cuAes or the analy sis or bank earnings bIanks for the First National Bank of -,ou1tne7, Vermpnt, 7:D-r:rin:_-7 the ooriod 1926-1929. 7ery truly yours, J. H. Riddle secretary, Committee on Branch, Group and Chain Banking. Pebruar7 19, 1931. Mr. Charles F. Gettemy, Assistant Federal eserve Agent, Federal ',eserve Bank of Soston, Boston, Massachusetts. Dear Kr. Gettemy: i;s1 adknowledge with thimksiRgrjettar-ert-Pebruary enclosing schedules on state bank susrensions in loode 12th lilend for he entire period 1921-130 inclusive. According to our records, this leaves only one :fire :uspenelon to be reportea from your district, that of the g.errLnack liver Savings $8.111): of Yanchester, New Haupshire, which W6 understand closed on June 9, 1930. The schedle vhi,h (pti sent to us several months ago ooverine the suspension of the 7:est Rutland Trust Co., West Thitl.md, Vemilont, repo.7ted thtt e receiver had not jet been appointed for the bank and that plans 'e re being forarilated to ovoid rceivership if possible. Te sholAd appreciate knowing what develornients hnve ocourred in this case. If the bank hc been reopened or taken over by anoter bank, can you tell 1.15 whether any loss, wLs suffered by depositors? Very truly yours, J. H. Riddle Secretary, Committee on erench, Group and Chain 3anking. FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A.YOUNG.GovERmuR WILLIAM W PADDOCK. DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL r4 K . CARRICK, SECRETARY ALLEN DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS CHARLES F ERNEST M. LEAVITT E LLIS G HULT L. WALLACE SWEETSER GETTEMY ASSISTANT FEDERAL RESERVE AGENT February 17, 1931 J. H. Riddle, Secretary Committee on Branch, Group and Chain Banking, Federal Reserve Bard, Washington, D. C. Dear Lr. Riddle:Reference is made to your ietter of Eebruary 16.\ The First National Bank of Poultney, Vt. is the only national bank which suspended payments in this district during 1930. We are enclosing, herewith, duplicate copies of the anolysis of bank earnings blanks for that bank covering the period 1926-1929 as requested by you. Very truly yours, Henry R. Bowser, Manager Financial Statistics Division EIRB/S YAuIITdlENT HOLLIS February 16, 1931. Mr. Frederic H. Curtiss, Federal Reserve Agent, Federal Reserve Bank of Boston, Boston, Massachusetts. Dear Mr. Ourtissl We have in mind making some analysis of the earnings' experience of nailed banks prior to the data of suspension. In connection with this project, please forward us the Analysis of Bank Earnings blanks for each of the years 1926-1929 for each of the national banks in your district, which suspended payments during the year 1930. It may be that you will wish to retain the originals for your files, sending us copies. Our plan comprehends working out here various groupings of the banks involved, some 160 for all tr;lve districts together. Very truly yours, .7. H. Riddle Secretary, Committee on Branoh, Group and Chain Banking. FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A. YOUNG. GOVERNOR WILLIAM W PADDOCK, DEPUTY GOVERNOR WILLIAM WILL ETT, CASHIER KRICKEL K. CARRICK, SECRETARY ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G HULT H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT CHARLES F. GETTEMY ERNEST M. LEAVITT L.. WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGENT Mr. J. H. Riddle, Secretary, Co-iraittee on Branch, Group Prd rlhain Benking, Federal Reserve Board, Washington, D. C. Dear Mr. Riddle: Referring to my letter of February 10, 1931, ,I enclose schedules in connection with -bank suspension S in Rhode Tsland since January 1, 1921. There were only two small suspensions in this state, and there Was no loss to depositors in either case. Yours truly, Charlos 7. Gettemy, Assist:Int Federal Reserve Fnolosures rzent. FEDERAL RESERVE BANK OF BOSTON ROY A YOUNG. GOVERNOR WILLIAM W PADDOCK DEPUTY GOVERNOR WILLIAM WILLETT. CASHIER KRICKEL K FREOEMC H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT CARRICK, SECRETARY HOLLIS ALLEN DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAVITT L. WALLACE SWEETSER CHARLES F GETTEMY ASSISTANT FEDERAL RESERVE AGENT February 10, 1931 Mr. J. H. Riddle, Secretary, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Riddle: 4_1931 We have your letter of_Efhruary in regard to suspended banks in this district which have reopened. The depositors of the Millbury Savings Bank, Millbury, Mass, and the West Springfield Trust Company of West Snri.ngfield, Mass., suffered no loss on account of the temporary closing of t'oe barks. Following receipt of your letter of January 13, 1931, we again took up 71th the bank commissioner of Rhode Island the matter of filling in the schedules covering bank suspensions, and on February 2, we sent him a supply of blank forms. We told him that if he did not feel that he could supply the full information, we should appreciate it if he would supply as much information as he could. The schedules have not yet been returned to us but we are hopeful of ratting at least part of the information. Yours truly, TOXI:D Charles F. Gettemy, Asristant Federal Reserve Agent. February 9, 1931. Mr. Charles Gettemy, Assistant Federal Iteserve 1,gent, ?ederal lieserve Bank of 3oston, Boston, nassachusetts. Dear 2,1r. Gettemy: enclosing ached-ales on Tour letter of February Reserve District loirst Federal ban:cs -7hroh :125Pen5ód in the 7;e note received. duly durin - the latter half of 1930 was Massachuthat both the Millbury Savings Bank of Millbury, setts, and the West Springfield Trust Co. of West Sspringfield, Llasesehusette, have been reopened, out the schedules do not indicate whether agp loss wss suffered by depositors. Will you kindly advise us regarding this matter? ':;() shoula aopreciate ,_nowing also hether there trIve been any further developments regarding the possibilit:7 of securing schedules covering suspensions in Rhode Island. Very truly yours, J. g. Riddle Secretary, Co=ittee on Branch, Group and Chain Banking. FEDERAL RESERVE BANK OF BOSTON ROY A. YOUNG, GOVERNOR WILLIAM W. PADDOCK , DEPUTY GOVERNOR WILLIAM WILL ETT, CASHIER KRICKEL K. CARRICK, SECRETARY FREDERIC H. cuRTIss CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. RuLT ERNEST M. LEAVITT L WALLACE SWEETSER CFIARLES F. GETTEMY ASSISTANT FEDERAL RESERVE AGENT February 6, 1931 Li'. J. H. Riddle, Secretary, Comattee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Li.. Riddle: Receipt is acknowledged of your 19tter of February 3 addressed to Yr. Curtiss, ylth regard to using the new census figures for 1930 in connection with Table II-e which will have our proper attention. Very truly yours, C. Charles F. Gettemy, Assistant Federal Reserve Agent. • • FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A. YOUNG. GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILL ETT, CASHIER K CARRICK, SECRETARY KRICKEL ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS E LLIS G. HULT H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT CHARLES F. GETTEMY ERNEST M. LEAVITT L. WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGENT February 6, 1931 Mr. E. A. Goldenweiser, Chairman, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Goldenweiser: Referring to your letter of DecemDff 194, 193Q. we enclose schedules of bank suspensions in this district during the second half of 1930, as follows: West Springfield Trust Co., West Springfield, Millbury, Millbury Savings Bank, New Britain, Commercial Trust Co., Pallotti Andretta & Co.Inc.,Hartford, Pallotti Andretta & Co.Inc.,New Haven, Hartford, Riverside Trust Company, Citizens Bank & Trust Co., New Haven, Mass. Mass. Conn. Conn. Conn. Conn.. Conn. Yours truly, WDM.D Enclosures Charles F. Gette-17 .J Assistant Federal Reserve Art. l• February 3, 1931. Frederic H. Curtiss, Federal 7eserve Agent, Federal ;:ieserve Bank of Boston, Boston, aEsachusetts. Dear Curtiss: you extend In our letter of January 14th le requested that :7orking out Tables I-e, the earnings project to include the year 1930 II-e, each of the I7-e, and 7-e for th.lt year as was done for nrevious four years. In grouping banks nor Table II-e according to aggested in our the size of the coanunity in which located we had ... each of the four letter of October 20th that you use with re..;pect to January 1928 ediyers 19-6-1929 the population figures gi/en in the tion of 'A,nd ::.c/ially's Bankers Directory. In connection with n,:ble it desirable to ti:,e4 the II-e for the year 1930, however, we believe understtaid are new census figures of 2opulation for 1930 which we now available. Very truly yours, J. H. Riddle ecretary, Committee on Branch, Group and Chain Banking. January 29, 1931. • .jir. H. R. Bowser, Manager, Financial Statistics :ivision, Federal Reserve Bank of Boston, Boston, Massachusetts. 7)ear nr. Bowser: We are ir reseipt nf lelter of Jrimilarj 2Fth enclosinp coamleted forme 17-1 are 7-0 to7theY. -rith the pork sheets shcrvIng the group a7gregnt ,, for the states i or thr-se fors 7,Tor eictrit for the year 1929. Very truly yours, Ii. aiddIA Secretary, Cxx,imittee on 3ranch, •Group and Chain Banking. j. V. o• FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A. YOUNG. GOVERNOR WILLIAM W PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT K. CARRICK, SECRETARY ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ERNEST M. LEAVITT ELLIS G. HULT L. WALLACE SWEETSER CHARLES F. GETTEMY ASSISTANT FEDERAL RESERVE AGENT January 28, 1931 r. J. H. Riddle, Secretary Committee on Branch, Group and Chain Banking, Washington, D. C. Dear Mr. Riddle:I am enclosing the completed schedules on your forms IV-e and V-e, together with the work sheets showing the group aggregates on these same forms covering the calendar year 1929. Very truly yours, Henry R. Bowser, Manager Financial Statistics Division ERB/s January 21, 1931. :r. Henry P. Bolfser, rancger, Financial Statistics 7_,ivision, Federal T?eserve Bank of Boston, Boston, Massachusetts. 7,ear Mr. Bowser: Ir accordance with the request contained in your letter of Janwry 19th to Dr. Goldenweiser se are enclosing for your use the following: 350 copies of Analysis of Bank Earnings 20 copies each of Tbles I-e II-e III-e 30 conies each of Tables .17-e 7-e Very truly yours, J. H. Riadle Hecretary, Callaittee on 3ranch, Group and Chain Banking. January 20, 1931. Ur. Oharles F. Gettemy, Assistant Federal Reserve 2„gent, Federal Reserve Bank of Boston,. Boston, 1assachusetts, Dear Mr. Gettenly: This will acknowledge with thankL your letter of the 16th enclosing data on the changes In the nunber of banks since 1920 in tie state of :;onnecticut. Very truly yours, J. H. Riddle Secretary, Conmittee on Branch, Group and 3hain Banking. FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A. YOUNG. GOVERNOR WILLIAM W. PADDOCK. DEPUTY GOVERNOR WILLIAM WI L LETT, CASHIER KRICKEL K CARRICK, SECRETARY ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS CHARLES F ERNEST M. LEAVITT L . WALLACE SWEETSER ELLIS G H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT HULT GETTEMY 1 ASSISTANT FEDERAL RESE tZTk. ‘24? d4I 40 , January 19, 1931 ' piT,kt. l's714.1tt Mr. E. A. Soldenweiser, Chairman Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Referring to your letter of Jan ary 14 regarding the computation of bank earnings for 1930, will you kindly send us, a supply of the necessary forms for this work as follows:- "Analysis of Banking Earnings" (4-Page Leaflet).. Table I-e II-e It III-e IV-e it V-e Very truly yours, Henry R. Bow3er, Manager Financial Statistics Division liRB/s Copies 350 20 20 20 30 30 January 19, 1931. Mr. Frederic H. Curtiss, Federal Reserve Agent, Federal aeserve Bank of Boston, Boston, L%ssachusetts. Dear NI'. Curtiss: We acknowledge with thanks your letter of January.lath regardinp the statutory priority of deposits in the several states of your district. In reviewing the present status of our records covering ir,nk suspensions in the various Federal reserve districts, we find t;:rA ilve not yet eceived any should appreciate know— schedules from Rhode Island. ing whether there have been any Purther developments, beyond those reported in Mr. Cettemy's letter of 6eptem.. ber 18th, regarding the ossibility of securing data on suspensions in that state. Very truly yours, J. H. Riddle Secretary, Cwmittee on Branch, Group and Chain Banking. FEDERAL RESERVE BANK OF BOSTON ROY A. YOUNG, GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL K. CARRICK, SECRETARY FREDERIC H. CuRTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAVITT L. WALLACE SWEETSER CHARLES F. GETTEMY ASSISTANT FEDERAL RESERVE AGENT January 16, 1931 Mr. E. A. Goldenweiser, Chairman, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Sir: Referring to your letter of November 15, 1930' in regard to the changes in the number of banks since 1920, we enclose a report which has just been received from the Bank Commissioner of Connecticut. Yours truly, Charles F. Gettem , Assistant Federal Reserve Agent. January 16, 1931. Mr. H. R. Bowser, Lanager, Financial 5tat1stics Division, Federal Reserve Bank of Boston, Boston, I4assachusetts. Dear 1r, Bowser: Thank yo.a for your letter of January 14th enclosing cowplated forms IV-e and 7-e together with the work sheets howing the aggregates on these forms for the year 1928. Very truly yours, J. H. 2iddle Secretary, 3ommittee on Branch, Group and Chain Banking. FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A YOUNG.GOvErmoR WILLIAM W PADDOCK, DEPUTY GOVERNOR WILLIAM WI L LETT, CASHIER KRICKEL K H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT CARRICK, SECRETARY ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS CHARLES F. GETTEMY HULT ERNEST M. LEAVITT L . WALLACE SWEETSER ELLIS G ASSISTANT FEDERAL RESERVE AGENT January 15, 1931 Mr. J. H. Riddle, Secretary, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Riddle: Referring to your letter of December 11, 1930 in regard to the statutory priority or lien of deposits reported on the schedules of suspended banks, the only states in which the claims were classified as secured, preferred or general were Connecticut and Massachusetts. I submitted your questions to the bank commissioners of those states and quote from their replies as follows: Bank Commissioner of Connecticut: "As the type of banks which were reported on these schedules were private bankers, the general statutes state that the receiver shall distribute the proceeds of the liquidation of the business as follows: 1. 2. 3. To all expenses of settling the affairs of such private banker; To the payment of deposits of such private banker, and the money intrusted to such private banker for transmission; To the payment of all other liabilities of such private banker. "The amounts reported on your schedule as: A. (secured) would be bills payable secured by collateral; B. (preferred) would represent salaries due employees, and C. (general) would represent deposits, both time and demand." Bank Commissioner of Massachusetts: "General Laws, Chapter 172, section 31 is the only statute regulating secured deposits. The savings department and the Christmas Club deposits are classed as preferred, and all other deposits and claims are classified as general." As you probably know, in all of the New England States certain assets are segregated for the benefit of the savings depositors of state banks and trust companies, and the savings depositors have first claim on the segregated assets. Yours truly, Ak 4/41V:ar0. Frederic H. Curtiss, Federal Reserve Agent. Janut,r:i 14, 1931. kr. Frederic N. Curtiss, Federal Reserve Agpnt, 7ederal Reserve 3ank of Boston, 3oston, Massachusetts. Dear Curtiss: In connection with the earnings project of this Committee upon which you are working, it has been decided to renuest the T- eserve banks to su ,ply us for the year 1930 With the tabulations herotofore reluestea for the yenrs 1926, 1927, 1928 and 1929. Accordingly Tables i-e, 1I-e, I1I-e, I7-e and 7-e should be compiled in the sb.ne way for 1930 as was done for each of the other fonr years. As our original renuest with respect to deviations required that work for one ',rear only, the present neguest entails nothing additional on deviations. Very truly yours, E. A. Goldenweiser, Chairman, Committee on Branch, Group and Chain Banking. a• • FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A.YOUNG,GOVERNOR WILLIAM WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILL ETT, CASHIER KRICKEL K H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT CARRICK, SECRETARY ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS CHARLES F. GETTEMY HULT ERNEST M LEAVITT L WALLACE SWEETSER E LLIS G ASSISTANT FEDERAL RESERVE AGENT Janoary 14, 1931 Mr. J. n. Riddle, Secretary Committee on Branch, Group and Chain Banking, Washington, D. C. Dear Mr. Riddle:I am enclosing herewith the completed schedules on your forms IV-e and V-e, together with the work sheets showing the group aggregates on these same forms covering the calendar year 1928. Very truly yours, Henry R. Bowser, Manager financial Statistics Division 11RB/S vim Januar7 F, 1(2!71. Mr. Charles i. Gettamy, Assistant :Federal Reserve Agent, Federal Reserve Bank of Boston, Boston, KassachuEetts. 7ear Gettemy: In accordance vith the request contained in uour letter of January 7th we are sending you herewith twelve additional copies of the schedule on bank suspensions. 7ery truly yours, J. H. Riddle Secret-Lry, CoAmittee on Branch, Group and Chain Banking. Enc. FEDERAL RESERVE BANK OF BOSTON ROY A. YOUNG, GOVERNOR FREDERIC WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL K. CARRICK, SECRETARY H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAVITT L . WALLACE SWEETSER CHARLES F. GETTEMY ASSISTANT FEDERAL RESERVE AGENT January 7, 1931 • Mr. E. A. 9:o1denweiser, Chairman, Committee ontranch, Group and Chain Banking, Federal Rese0Re Board, Washington, Dear Mr. leldenweiser: Referring to your letter of December 19, 1930, will you kindly send us about one dozen copies of the forms for reporting bank suspensions since January 1, 1921? Yours truly, Charles F. Gettemy, Assistant Federal Reserve Agent. January 6, 1: r. Charles F Gettomy, Assistant Federal Reserve Agent, Federal I'Leserve Bonk of Boston Boston, Massachusetts Deer Mr. Gettemy: f1Ijf.L I1L4 We are in receipt of your letter of January with its enclosure of Fors A-4 oT(1 A=r covering &a in he num:ber of private banks in the state of Conrectiout. In view of your explanation that the so-called privito btInkers in Massachusetts are merely persons operating under a license to receive monk! for safe-keeping and transmission abroad, we concur with your opinion that those she id llot be reportd. We also note that in the other four st-tes in the fl.rst district there al-e- no private banks and that your enclosures consequently complete this portion of the study for your district. We thank you very much for your careful attention in this matter. Very truly yours, J. H. Ric_dle Seoretar,y, Committee on Branch, Grou-,... and Chain 3arking CB11:11 . MBIA * e 0 ‘• 4 414.* 4 /1e ** IA •„44, / 4 10 FEDERAL RESERVE BANK OF BOSTON t.5,;p; g. An ‘ tet; 7 4 . FREDERIC H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ROY A YOUNG, GOVERNOR WILLIAM W PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL K CARRICK, SECRETARY ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS CHARLES F. GETTEMY ASSISTANT FEDERAL RESERVE AGENT ERNEST M. LEAVITT L. WALLACE SWEETSER G. HULT January 5, 1931 Mr. E. A. Goldenweiser, Chairman, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Goldenweiser: Referring to your letter of November 18, 193O in regard to the changes in the number of private banks, we enclose a report covering the changes in Private banks in Connecticut for the period January 1, 1924 to date. under the supervision of the bank commissioner in 1924, Connecticut were put and as his annual reports contain a fairly complete record of the changes, We did not communicate with we have made up the figures from his reports. the bank commissioner because he has been very busy with a number of bank failures in his state and he has not furnished us with the information requested in your letter of November 15 in regard to the changes in the number of state banks since 1920. In Massachusetts the so-called private bankers do business under a license to receive money for safekeeping and transmission abroad or under a license They are under the supervision of the bank for transmission only. commissioner but he does not consider that they are banks. There are some figures in the annual reports of the bank commissioner, but they are very confusing for the reason that some individuals have licenses to receive money for safekeeping and transmission, and if they give up one part of the business it shows as a reduction in the total figures although the same individual may still be in business. Under the provisions of an act passed in 1929 those persons licensed to receive deposits of money for safekeeping are required to liquidate that part of their business not later than July 1, In compliance with the requirements of the act, the issuance of 1932. licenses to engage in business of this nature has been permanently disconAs of October 1, 1929 the latest date available, six persons were tinued. business under licenses to receive money for safekeeping and transdoing mission and eight persons under licenses for transmission only. Under the circumstances we have not attempted to make up any schedules of changes in Massachusetts. In regard to the other four states in this district, we have been unable to find any record of private banks in the reports of the bank commissioners or in the bankers' directories. Yours tru NDM:D Charles F. Gettemy, Assistant Federal Reserve Agent. December 31, 1930, Mr. H. 74 Bowser, Ilanager, Financial ,:tatistics Dept., ?ederal :Ieserve Bank of Boston, Bosto1.1, MassachusettS. )ear Mr. WW1': Thank you for your *Letter of December 30th euolosing the completed schedules on tables LI-e and V—e Lcr:ether with the or ,Aeets showing the grow? afrro;ates on these forms for 1927. Very tray yours, J. H. Riddle Secretary, Comaittee on .Branch, Group and Chain Banking, FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A . YO U N G . GOVERNOR WILLIAM W WILLIAM WILLETT, CASHIER K CARRICK, SECRETARY KRICKEL H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT PADDOCK, DEPUTY GOVERNOR ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS CHARLES F. GETTEMY ELLIS G. HULT ERNEST M. LEAVITT L. WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGENT DeceMber 3us 1930. L.r. J. H. Riddle, Secretary, Comnittee on branch, croup and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Ir. Riddle: I am enclosing herewith the completed schedules on your forms 1V-e and V-e together with the work sheets showing the group aggregates on these same forms jot /9.Z7 Yours very truly, iomf-A,„ H. R. Bowser, 1..anager, Financial Statistics Dept. -vosaber 29, 1930, 1:42%, H. R. Bowser, Lanagor, Financial ".;tatistios Federal oserve Bare: of 30Stor, Boston, Z.assaahusetts, Dear Ilre ilmeint is acknowledged of our lottor of Deoamber 26th ,,ddreased to Dr. Goldenneisor eholosing the ooupletod forma 11-3, 3.4 and 3.8 relatinc to active stat• bank'. Vim truly yours, .7„ N. aiddle Oecretary, Couuittoe on.Branah, Group and Main Banking, • • FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A.YOUNG.Govsnrion WILLIAM W. PADDOCK. DEPUTY GOVERNOR WILLIAM WILLETT,CASHIER KRICKEL H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT K. CARRICK, SECRETARY ALLEN HOLUS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT CHARLES ERNEST M. LEAVITT L. WALLACE sWEETSER December 26, hr. E. A. Goldenweiser, Chairman, Committee on branch, Group and Chain Banking, Board, eserve Federal i-Washington, D. C. Dear sir. Goldenweiser:In accordance with the instructions contained in your letters of Novelaber 11\and November 19 I am enclosing, herewith, the completed forms 04weri state B-3, 8-4 and B-8 relating to im44, -oanks. Very truly yours, Henry R. Bowser, Manager Financial Sta .Astics Division -ARB/s F. GETTEMY ASSISTANT FEDERAL RESERVE AGE NT 930 40111Plalli 1411110 VIIIt duo.% dimpumegin 60,4110110 *IBM ike AMA •ca6 owl Jo aectuata eit4 ui pre eurrti 9 ed tO ett £0:1T1711 Oa ?I*/0,4 trt 4110tilafa esmonessilA •111WO1I WM NOW Ilateuoll -grim* ..-upq al; taw elsociaz Sig:11 tom IOW asiiiisosa 0 .Laq49/ Jnoii JO ps:-Volicatiko.; 9T 1040110E :41s44sej *an MIK_ 61400114010VAC 61104q0t . to Ewer pt.rePei 4 4rtii;41; anaesw: 'Lwow visqgpsy g T./0400V 6 An01.1 et) • aeGT. •9 j etoretr.0 ..v wooer oi• 110 ,;2 ;gek(eklik I 2 -3tr: FEDERAL RESERVE BANK OF BOSTON tP4 d's .;, tit‘ ce; 1'1 '4 V0'0 cf' FREDERIC ROY A.YOUNG.GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WI L LETT, CASHIER KRICKEL K. CARRICK, SECRETARY H. CUIRTItS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS CHARLES F. GETTEMY ELLIS G HULT ERNEST M. LEAVITT L.wALLACE sWEETSER ASSISTANT FEDERAL RESERVE AGENT December 24, 1930 Mr. E. A. Goldenweiser, Chairman, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Sir: Referring to your letter of November 15, 1930 in regard to the changes in the number of banks since 1920, we enclose reports from the bank commissioners of Rhode Island, Massachusetts, Maine and Vermont. These are the only reports we have 1.1 -1.ved to date. Yours truly, WDM:D Enclosure Charles F. GettemY, Assistant Federal Reserve Agent. IIP 4 C ‘ *‘J, FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A. YOUNG. GOVERNOR WILLIAM WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILL ETT, CASHIER KRICKEL K. CARRICK, SECRETARY ALLEN HULT HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ERNEST M. LEAVITT CHARLES F. GETTEMY L. WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGENT December 23, 1930. Federal Reserve 13oard, Li. E. A. Goldenueiser, Chairman, Connittee on Branch, Group & Chain Banking, Washington, D. C. Dear Li. Goldenweiser: Referring to your letter of December 18 addressed to Ir. Curtiss regarding the expense of the ingairy on branch, group and chain banking, I have to say With respect to the last paragraph that no expense has been incurred or is contemplated for this work for outside assistance, such as you state weuld be borne by your committee. Yours very truly, C. Charles F. Getteny, Assistant Federal Reserve Agent. December 19, 1930. Lr. Frederic H. Curtiss, Federal Reserve Agent, Federal Reserve Bank of Boston, Boston, 7:assachusetts. Dear :Ir. Curtiss: In our letter of July 25, 1930, submitting the schedule on suspensions you were re:niested to ask the state banking departments to prepare a schedule for each suspena recent sion from January 1, 1921, to June 30, 1930. meeting of our Committee it was decided that the period should be extended to the end of 1930 in order to bring the information up to date and round out the full ten year period. Therefore, we Should like for you to 11,_Ive schedules prepared for the failures during the second half of 1930, in addition to those which have been prepared or are being prepared in the states whose capitals are located in your district. Your bank or the various state banking departments will doubtless have on hand a sufficient supnly of forms to cover the additional suspensions. If not, we can make arrangements to supply them, Very truly yours, E. A. Goldenxeiser Chairman, Committee on Branch, Group and Chain Banking. Pow` Deoembrr 17• 1931. Li*. Henry R. Bowser, btatirrAoal Dept.. 77eserve Ban1 of Dorton, 3oston, Lanaachneetts. :Toar 1:;r. '30-asert In accordance with a telenhona oonversationiith youf o i'floe LOW, we are eenitng yew herewith 30 additional oopieL, of blank tables IV-. and 71044 Very truly yours, J. H. 71iddle ;Aoretar:!„ Committee on.prahdh, Group rnd Chain limrking. j.,..1111• Wow 1 Deoeiber 16, 1930, Llr, Hour,- a. Bowser, "A"A'Anager, 2133Ano/el L'It atist les Division, .i3,ieral Reserve Bank of Boston, ston, seeable.ttse Dear :.•,•r. Bowser* 7100eint 1& a3, :abtroied(md of :four letter of December 17th with the enclosed completed tables 1`7.-o end 7.e together Ivith their work sheets for tho z,,ear 1926. Very truly yours, J. H. Riddle Secretary, Oemattee on Branch, Group and Chain Banking. •si FEDERAL RESERVE BANK OF bOSTON F REDERIC ROY A, YOUNG. GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL K. CARRICK, SECRETARY ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ERNEST M. LEAVITT CHARLES F. GETTEMY L. WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGENT Dece her 17, 1930 Mr. J. H. Riddle, Secretary, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Riddle:I am enclosing herewith the completed tables, IV-e, showing the typical operating rates I am also and also the group aggregates. enclosing Tables V-e, together with the tables of aggregates for that Schedule. Very truly yours, /04Se. Henry R. Bowser, kanager Financial Statistics Division ERB/S December 11, 1930. Er. Frederic H. Mutts's, Federal ROSIMVO Agent, J.4deral Reserve Bank of Boston, 30ston, Massaohusettse Dear lir. Curtiss: In tabulating the data reported on the suspension sohedUlee by the varioas states it is apparent that in the ease of certain items the material reported is not unifeno far all states, and that for purposes of comparison an explanation of What is included is needed. This is true of sections 7, 8, 9 and 10. Would it be possible to secure the following infOrmation for each state in your district which has prepared or is prenaring suepension sohedulesi (1) The statutory priority of lien of the various types of deposits in each state (2) Precisely what type or types of deposits are rePorted on the suspension schedules as (a) secured, (b) preferred and (c) general The sohedules ask for reports on deposit claims only, but in case other claims love been included by any state this fact should be stated, and the information requested above Mhould likewise be farnish(d for these other Very truly yours, J. H. Riddle Seoretary, CouLlittee on Brandh, Group and Chain Banking. Desember 11* 1930. lir. H. R. Boner, Basager, Financial 3tatistios Division, Federal Reserve Bank of Boston, Boston, Haseadbusetts. Dear Browser: Receipt is aehmeeledged of your letter of December 11th enol sing revised copies of your tables to, 11-e and 111-e for the years 1926, 1927, and 1928 and also the originals of these tables for the year 1929* Very truly yours, J. H. Riddle 6ecretary, Committee on Branch, Group and Chain Banking. a• •• FEDERAL RESERVE BANK OF BOSTON ROY A. YOUNG. GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER FREDERIC KRICKEL. K. CARRICK, SECRETARY ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAVITT L . WALLACE SWEETSER CHARLES F 3,Y- k .CS I-e, ia GETTEMY ASSISTANT FEDERAL RESERVE AGE NT 19L6, for I H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ad i lallc ay.• lysis on year 1,:. Clso Gr-P.1y :o)..1-s• lienry R. i3aw3er, :LInaer iinricial ;Statistics lAiision December 5, 1930, Mrs It. 7, Bowser, Manager, rinanoia1 Statistic's Division, Pederal rieservo Bank of Boston, Boston, Massachusetts. Dear ::r, Bowser: In aostordanoe with the telepiione convorsction with :your offioe we *re sen -inc ;an herewith 12 additi'ma1 eaoh of tnblee 1-e, II-e and Very truly yours, J. H. Riddle, 3eoretar7, Committee on Branch, Group an:LL Main Banking &lc Decomber 3, 1350. kir. H. R. Bowser, Wurp,er, Financial 3tatistics Federal Reserve Bank of Boston, Boston, Esseachasetts, Dear Air. Bcrvsers .leoeipt is adimowledged of your lei:ter of Mereseher 26th raising the question as to what institut -Lons s3lou1d be included as 2rivnto baaizS for the pur_uses of the studies outlinod in our letters of ROvember 11th and November 19th. Private banks, for purnoses of our wttutr are nnincor?ornted Anus, partnerships, or individuals engnged primaray in the receipt of demand deposits and the making of collinercial loans. Suoh activities pit thea in the same field as state and national banks. This definition excludes investment houses 1ie J. P. Uorgen, and Brown Bros., and brokerage houses like E. A. Piero*, the assumption be!rig that thoegh they ney accept deposits and make etion to to sc. eammeroial loans it is not their prtmary Praotteelly speaking, it may be necessary in the absence of .inforhnation whicheould enable As to base our clabsifieation on the above definition to *wept as private bnmks those concerns that are so re:sorted by the comnissioner of banks and/Or by :Land IlaNalbres Bankers* Directory. In some states, of course, the oommissioner cnr be of no help, sinco he ta:ms no cognisance of private banks. The Hankers, Directory, therefore, is probably the best general souroe, e for branches of forein bank, it is our opinion that they should be included as state banks only her they are engaged in the typical banking functions of receiving local depolAts and wiling local commercial loans. Liorris Plan and cooperative banks, as Indicated in the second paragraph (State Bank!) of oar memol-andum of November 5th entitled Sauk Changes-Definition of Terms, are not to be included in our state bank statistics. 7A plan to consider them as a distinct type of institution. Very truly yours, J. H. Riddle, Secretary, Committee on Branoh, Group and Chain Banking. / Office Correspondence FOPEre416.7-T81 TO Mr. Fammond From _ Yr. vorbett FEDERAL RESERVE BOARD to• Date_ December 1, 1930 Subject:Definition of "private banks" etc. • 2-849: Under the "Definition of Terms" given in the Committee's memorandum of November 5, we are practically committed to the same definition for every state, regardless of the fact that the banking departments in the several states may or may not consider a given institution as a "bank" -- either private or state. Bowever, there would be some advantage to haling the banking department report. changes in all those classes of banks that are regularly included in the state 1.1MOIMmliosslii•••••r• um••••••••••••.110 banking department abstrac5. In other words if the abstract covering private ] ban'gm issued by the Bank Commissioner of Connecticut regularly includes so-called i -*/01.0.11••••11•1. "Italian banks" any changes that have taken nlace in the list of such barks ^orhars ought to be reported. Such changes would not necessarily have to be used in the Committee's final compilation, but it would make it possible to more readily reconcile with the state banking department abstracts. The same thing &Polies, of course, to Morris Plan banks, cooperative banks, American branches of foreign bank5and institutions such as Brown Brothers and J. P. Morgan and Company. In some states Morris Plan banks are nothing more or less than cooperative loan institutionsbut in some other states, for example in Virginia, where I believe the Morris Plan originated, they have a wider field of ooeration. it...tracticable to do so,I think the best thing to do would be to have bhe bank commissioner report separately co these "peculiar" classes of banks. This ittd- enable us in the final analysis to either exclude them or include them, and in the meantime it would assist in the reconcilement of the reported data. The number of these snecial cases is probab very small and it will make little practical differenceiv 4 et- ,/,// .06.--OLe /t..."...".•-•1 ,..-e_ i-ek.e--if et.t.....--)„ • -`"-lnctions rernilarly e:-.ercised t:h.,7"`" recci.:-/t o. and of coIrnercial loans, diau. are exaLlined by the banking commissiof,er. e)etA.it. ea ' t orris Plan lx.:3,;.6 - oc,rative ban7kL, credit unio :3, etc., are not to be counted -rith state banks, since their function is not commercial ba.nking.:. :Ae the second -oarar:Ta?-)11, ( -tate Ba ::s, etc.) of the -Join. memo of irovember 5, 19•,,O, entitled"Bank Chanes :)c-finitiof, of c2erras." ;..rc riv..:te 0 Tr° °hart r, in lir LA:.,..ite i ic,L it LI i. o., rtioa1 sc :n1117 of ooi:Lic=r-.;itl . :Mon .ec tri L'ierce, tiouji the:: fun.3 ',: ion to -.7h0 SO --).C:i..,1f.-i,rsyr i,1::.7' ''',c;ceT)t 171/T1C :1 21.0-21 1._ , t Ell: e 1.0'11: ,11. i- :.',o,. ..cir - ).'Lli:-;:_r7r of Igit t , so e:.o,1 u. e . :o :- .::i .-,:.• L )ezli_:.,_ - • N (e)oL.1t3 Hnd .,.%,-,-: do so. ?Tr;(e fi -11 it ion i 1)?-1_ December le 1930. Lr. lharlos F. Oettspy, Assistant Federal Reserim ATento Federal Reserve Bank of Boston, Boston, Maseachaeette. lear 11r. Oettenys rn rearense to your letter of Horamber 28th wo are sending you herewith 40 additional oopies of foss Ap-3 fOr the USO of the Bank Coaraisaionor of rains. Very truly yours, Secretary. ouguittes on , Brundh. Group and Chain Banking. Boso. November 29, 1900 Li'. Charles IN Gettemy, Asst, Federal Reserve Agent, Federal Reserve Behkof Boston, Boston, Llassadhuebtts. Dear 111r. Gettemy: In accords:me with your letter of rovember 25, we are sending you herewith 12 'additional copies of Foam A4. Very truly yours, Ems. .71 HI Riddle, Secretary, Committee on Branch, Gram And abain Banking. FEDERAL RESERVE BANK OF BOSTON ROY A. YOUNG. GOVERNOR WILLIAM FREDERIC WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILL ETT, CASHIER KRICKEL K. CARRICK, SECRETARY ALLEN HULT ERNEST M HOLUS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT LEAVITT CHARLES F. GETTEMY L. WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGEN1 Mr. E. A. Goldenweiser, Chairman, Committee on T3rAnch, Group and Chain Banking, Federal Reserve Board, Illashini;ton, D. C. Dear Mr. Goldenweiser: In connection mith your study regardin,s tne cllanges in the number of banks since 1920, the Bank Commissioner of Maine has asked us to send him about fortv adAttionel copies of Form A3. Will you kindly send us forty of these forms so that we may comply with his request. Yours truly, Charles F. Gettei, Assistant Federn1 Reserve Agent. 01• 6• FEDERAL RESERVE BANK OF BOSTON ROY A.YOUNG.GovERNoR WILLIAM W. PADDOCK. DEPUTY GOVERNOF2 WILLIAM WILLETT, CASHIER KRICKEL K. CARRICK, SECRETARY FREDERIC H. CuRTISS CHAIRMAN OF THE BOARD AND FEDERAL [RESERVE AGENT ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAVITT L . WALLACE SWEETSER CHARLES F. GETTEMY ASSISTANT FEDERAL RESERVE AGENT aoldenwciser, _r. L. Chairan, Co:aiittee 'Group and Chain 'ankiL,...;, .-e 77!ord, Federal 1- e.:;er.shington, 1- C. Derr . Goldenweiser:- .c,:ference to the tel(;2! your office yesterday we are writing to outline the questions raised in order that you may rule as to what banks shall be included as private banks for the purposes of the studies outlinld in yLy_Lietter of November Wand of Noyamber 19.N In i'liasachusetts the 73ank Com(1) Italian Banks:. .Hlssioner does not include Italian banks, .11 ,/ing listed them as "Institutions for safe-keeping of savinLs deposits and for On the other hand, the Bank Comtheir transmission abroadl rlissoner of Connecticut does include Italian banks suaong ii.re they to be included in your study? private banks. The Massa(2) American Branches of Foreign Bankss chusetts Bank Co,r7.7i.ssionor includes the local branch of the Bank of Nova Scotia as a state bank. Do you wiI!.! us to get figures of the Bank of Nova Scotia for your pur2ase/ Shall these be (3) 1.1orris Plan and Co-operative Banks: For your information cooperative included in your study? banks in Massachusetts are of a different charater from those in any other state of which I know, being more nearly comparable Massachusetts to the usual building and loan associetioh. cooperative banks do not receive deposits, their liabilities being in the form of shares owned by custorers rather than deposits. We trust that you can let us know as soon as possible V:lat, if any, of these banks you gish included in these studies. Very truly yours, Henry h. Bowser, Lanager Financial Statistics Division HRB/S a• 4. FEDERAL RESERVE BANK OF BOSTON FRE:DERIC ROY A YOUNG. GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WI L LETT, CASHIER KRICKEL K. CARRICK, SECRETARY WILLIAM ALLEN HULT CURTISS HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G H CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ERNEST M. LEAVITT CHARLES F. GETTEMY L WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGENT f. E. A. Gol.7;ommittee on Tederal Reser-; . :ashington, D. . DrIr Sir: Referrins to your 17.irld1y send us a fe.:: summary of chances since 1920. C? - .;e, received only four copies oi,7 this form wi.th your ?ethnr - nd there are six states in this - 1 -. Yours truly, Charles F. GetteH, Assistant Federal T).eserve AL:ent. • 6• FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A. YOUNG. GOVERNOR \ WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL K. CARRICK, SECRETARY H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS CHARLES F. GETTEMY ERNEST M. LEAVITT ELLIS G. HULT L. WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGENT November 22, 1930. Federal Reserve Board, Mr. E. A. Goldenweiser, Chairman, Connittee on Branch Banking, Washington, D. C. Dear 1LT. Goldemveiser: Receipt is acknowledge of your letter of November 18, with enclosed forms relating to changes in the number of active private banks since 1920. This matter will have our prompt attention. Very truly yours, C. Charles F. Gettemy„ Assistant Federal Reserve Agent. • • • FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A. YOUNG. GOVERNOR WILLIAM W WILLIAM WILL ETT, CASHIER KRICKEL K. CAPRICE, SECRETARY H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT PADDOCK, DEPUTY GOVERNOR ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAVITT L. WALLACE SWEETSER CHARLES F. GETTEMY ASSISTANT FEDERAL RESERVE AGENT November 21, 1930. Federal Reserve Board, Mr. E. A. Goldenweiser, Chairman, Committee on Branch, Group and Chain Banking, Washington, D. C. Dear Er. Goldenweiser: Receipt is acknowledged of your letter of november 19, addressed to Er. Curtiss, enclosing supplementary forms for use in classifying banks in connection with your investigation. This will have our proper attention. Very truly yours, C. Charles F. Getteny, Assistant Federal Reserve Agent. FEDERAL RESERVE BANK OF BOSTON ROY A.YOUNG.GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL FREDERIC H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT K. CARRICK, SECRETARY ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAVITT L . WALLACE SWEETSER CHARLES F GETTEMY ASSISTANT FEDERAL RESERVE AGENT November 19, Mr. J. h. Riddle, Secretary, Committee on Bra eh, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Deer Sir:I am writing you for r. Baw.:r, , requesting you to send me at least 66 more copies each of"Tables IV e and V e of Earnings Project'! As but 18 copies were enclosed in your letter of November 12,N the number sent was insufficient. Thanking you in advance, I wra Very truly yours, Harold 1. Pearson Financial Statistics Division rederio H. Curtiss, dra1es re Agent, Federal BOOSITI Bank Of Boston, Boston, Massachusetts, -)ear ,r, Jartles: Iv. our letter of Noveuber 11th we outlined a proposal ter elaself0mg the banks of the eountry aceording to wise of leens end ineeetmeets end according to else of *spite' stock. in older to oompasmost that data it emcee desirable to *MO en additional classification, that is, according to the site of the tones or cities in which the banks aro lotted. Awar6. ingRy we have prqpared ftnd are enclosing two additional forme, B-89 MI 2Af, for classifying state and private banks awarding to topelation ea three differont dates; June 30., 1920# Nob 30, 192d; emd Jame 30, 1930. In woordanee with previous preetlee yea are requeeted to compile this infornation ter the banks in those states those capitals lie within yonr district, ?or 1920 end 1930 the omens fiares of ),yrIlation Should be used. The detailed 1930 norm for about half of tile states have A1rea4y been eloopistod, sod it is lurtersoold that by the end of December the figures for all etato6 mAo4141 be bp nvaillble. or 1925 the Bunkers Direotory will have to relied'upon. Very truly yours. E. A. Goldenweleer, Ohairolan, Comittee on Branch, Group and Jhain Banking. ) MOmember 18, 1930, Mr. Frederio R. Owasso Federal Reserve Agent, Federal Reserve 3ank of Boston, Boston, Massachusetts. Dear lotro, Onzatiaas in our letter of Noveaber 15th!we made a raw:meet for info tien to be r)rocared frma the stet, banking comaissioners on ohan7;es it the =saber of state hanks sine. 1920. in order to eappiement that data avid maks the study More somplete, it seems desireble to 4et sixties jrfoiatt an ahanges in the number of private banks. It may be neoeRsary, however, /to the Reserve !tank itself to compile the greater v. of these data for the Ammo that in rammy states the eonaissionerv haw no ampt3r7so7•1. Wier' prirnto banks at all, and in others they partial uvorionik The unsatisfactory nature of available f on private bents IA., be indicated by the fast that the Omptro: the Currency reports $91 as of June 29, 1929, vier/see the Rankers. Dirootolv for Zaumm??,- 19no shoes GU. nom in states where the eon. missiwIer has eapirtLsien, the number of private banks reportrd is &LA times only half the =Ober Chown in the Blemben* Direstory. in spite of soh disorepeneies, however, it is appereat from a cursory eawaimition of the available SoarmOS that private banks are almost always small in6;;.t.ttione, and that they hems been deedieing very rapidly in nuaiber and in relative importune. The asemdtte0 believes that statisties of this destine should be aseerabled, and is maim the request that seek Federal Reserve bank omplio, or have emeenede the flemres for theme States ehose-espitals lie within its dietriet ter the pertod frma 1910 throe. 1930. Isms A-4 and MI5 medal if Al& are @inland, have lees prepared for this pu...7001; Amid to Ober the enanagr of chomps, and Amd to give the supporttag data for soft look moktogaohaoso. tidies there is better 1117ornIntion in year files or readily procurable free the state cam* MIRSiclillw145, the Deleherel Dtmoor7? 04v be alai as the basis of ' .1!. understand, of '4)01 Inman:, eases all the 1 mat ion called for on 7Ois A.N6mill not be ay-Inane, lose law, should like to wise at least the nnno or names of the llamas involved in the change. The Definition of Tones aent rou with our lottrr of November 15th, 1930, in oo!neoticm with the Yc.1.4 of state bank chews mA7 be folluwed in principle for private ban;cs, The term goonsolii. dation" will apply to the absorptioh 02 a private bnnk by a state • .4.1. 111. 1 =- Frio If,.Ourtiee sit liorember 18, 19#0. or national bank, as -min as to the =ion of one private brtn% itth anOthinn and -.1-terc a 'private batf.: 1c rifl 6.-.14. the tor; •,•qthout uiion vrith another bank oontimee its business trador stets or I;ationtl o141-;rtor. 7ery truly yours, no A. GO1C-OnWeiler. 1.rerro and ,7hain 31011-171 X-Ene• Ilre Henry 71. Bowser, ?inPnoial :tatistios Reserve Boston, UassaohusettL„. Dear lir. Bowser; We have reoeived your letter Of November 17th lith tbe enclosed tables I-e, and III-e el:tiering the year 1928 for the ste.VF or parts of states 7lithin your district. Very traly yours, J. H. Riddle, Seoretary, Committee on•Brenoh. group and Chain Banking. FEDERAL RESERVE BANK OF BOSTON ROY A. YOUNG. GOVERNOR FREDERIC W WILLIAM PADDOCK. DEPUTY GOVERNOR WILLETT, CASHIER KRICKEL K WILLIAM H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT CARRICK, SECRETARY ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAVITT L. WALLACE SWEETSER CHARLES F GETTEMY ASSISTANT FEDERAL RESERVE AGENT I,ovember 1:Ir. J. H. Riddle, Secretary, Committee on Branch Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Air. Riddle:Pursuant to the instructions contained in your letL:er of October 10.1 take pleasure in enclosing another instalment of our tables of analysis This group of tables covers of bank earnings. the calendar year 1928. Very truly yours, Henry R. Bowser, iAanager Financial Statistics Division BRB/S re rreerio kl.Uurtiss. Federal Reserve •%gent, ?scleral Reserve Bank of Boston, Boston, nassaohusetts. Dear Lire Ciu•ties: Me are seeding; yon herewith an outline of a ctr resorting the obemaos In the =ober of banks since 1920 ableh the 1orialttee on Braneh, Group and Chain Banktnc hrs prepared as a part of its investigation of honking 'omentration in the United _tates, The figures reo.rdir in national banks have already been compiled as silo_ attached forms and it is the desire of the Committee to 'Diet° this study by getting corresponding summaries of c s The enclDsed material is in the number n u...ttti. t you for.Tird it to the Bank— explanatory, an:,. ing Commissioners of the states whose cadita.ls are in your district and ask than to give us the infonnation indicated, The forms for their use in compiling this information are being sent to you under separate cover„ The period covered by year 1930, but it is our desire -'o !--. e'-• -n, :e..: Hie • ,*() . 1: t .- 7ithout added as soon aL .)oL;sible the inquiry includes the that the m'Iterial for nrior soon as .os:,-L110 to 1: ";)e lattc,r 11rPs. 0 t -c 770 r. t 42-v12 /du a• FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A. YOUNG. GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILL ETT, CASHIER KRICKEL K H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT CARRICK, SECRETARY ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS CHARLES F. GETTEMY ERNEST M. LEAVITT ELLIS G. HULT L . WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGENT' 17 November 14, 1930. Mr, J. H. Riddle, Secretary, Cannittee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Riddle: Receipt is acknowledged of your letter of November 12, 1930, addressed to Mr. Curtiss, together with a supply of forms for use in tabulating information in connection with earnings. Please be assured attention. that this matter will receive our prompt Very truly yours, Xdp,f/f, Charles F. Gettemy, Assistant Federal Reserve Agent. e• • FEDERAL RESERVE BANK OF BOSTON FREDERIC H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ROY A. YOUNG. GOVERNOR WILLIAM W. PADDOCK. DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL K CARRICK, SECRETARY ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS CHARLES F. GETTEMY ASSISTANT FEDERAL RESERVE AGENT ERNEST M. LEAVITT ELLIS G. HULT L . WALLACE SWEETSER November 14, 1930. Mr. E. A. Goldenweiser, Chairman, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Goldenweiser: Receipt is acknowledged of your letter of November 11, 1930, addressed to Mr. Curtiss, with reference to certain information desired in connection with the investigation of branch, group and chain banking, together with copies of forms for use in this connection. I assure you that this matter will have our prompt attention. Very truly yours, g ikkeal*://Y144K Charles F. Gettemy, Assistant Federal Reserve Agent. November 1930. Mr. Frederic H. Curtiss, Federal Reserve Agmnt„ Federal Reserve Bank of Boston, Boston, Massachusetts, Dear Mr, Curtiss: We are sending you herewith a supply of Tables IV-. and V-e which are to be used in further tabulating informatioL camoiled in connection with the earnings project outlined to you in our letter of August 11th. There is also enclosed a memorandum on the method of filling ant these tables. Very truly yours, J. H. Riddle, Secretary, Manatee on Branch, Group and Muds Healleg, latGu 4.-„/ November 11, 1930, la*, Frederic Curtiss, Federal Deserve Agent, Federal Neserve Bank of Boston, Deetens Nassachasetts, Dear lir. CurtisOf In oomneetien with its various investigations the Conmittee an Bnaadh, Croup amd Chain Neaktag finds it essential to have the banks of the oountry olassified Seeerding to else of loans and investaento and according to size of capital stook4 This information is neoesmary in the study of banking coaseatration, as well as for oomparison* in the study of failures and in the development of branch banking, Accordingly a set of blank tables has been prepared for making theme elaseifications of state and private banks on three different date*, June 30, 1920, June 30, 1925, and Jens 80, 1230. Copies of these forms, which are labelled 3-4, B.6, and are enel,sed herewith and the Committee would like for you.,to have this information oompiled for thobe etatee whose capitals lie within your distriot, A suppl of these form is beilw forwarded to you under eeparate °over. In classifying the state banAs you oan probably use the reports of the state banking deparbeents or oven *sear* direetly the aesistanne of these departments, If, however, it beoomes neeessary in aPY 0a90 tO use the Bombers Direatory for this material, you ean doubtless first get from the beuedng department a list of all the homes it the state an the speeitied dates in oilier that your totals msy agree with the offieial rewords, As to the private banks, the information may be moaewhat more difficult to compile exempt where they are under the supervieion of the state eousissoner of banking, in other states, of course, the Bankers Directory will have to be relied uoon. inin determining what itmas shoald be inoltsied in loan:, articles in follow the given you instructions vestnents we saggest that - enclosed, 1 to 4 inetastve of the Board's Form 105a, a copy of which 16 various throe the treatment at the dates in This will insure unite= states, Very truly yours, Goldenweiser, Chairman, Committee on Branch, Group and Chain BanAftng„ lt,'no. `61 -4f- /4_1.0 Kovejlo: Li., aeries F. Gette4y. Aktiaistant ?ederal .2eborrn bat, o,llostaa, Pedoral _20;:orhro Boson, i411:41.r.43111VS0 t a. Dear Mr„ Gotteuys Wo reeolved your leTter of November 3rd with the one/sod answers to tbe questionmaire on brunet banking from tbs followiugs Zadeetr113. Trust Company, Provilonce, Augusta Trost Co., Augusta, mail,s Fidelity Trust Oa., Portland, Atlas Tory truly goers, J. Rip Biddle, leoretsry, Gement*, on'Brach, Group and naln 3ankin3. •• • FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A YOUNG. GOVERNOR WILLIAM W PADDOCK. DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL K CARRICK, SECRETARY H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS CHARLES F. GETTEMY ERNEST M. LEAVITT ELLIS G. HULT L. WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGENT Mr. J. H. Riddle, Secretary, Committee on Branch,Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Riddle: Referring to Mr. Curtiss' letter of October 2Aand your reply of October 22,\ I enclose answers to the questionnaire on branch banking by the following banks: Industrial Trust Co., Providence, R. I. Augusta Trust Co., Augusta, Maine Fidelity Trust Co., Portland, Me. We have sent a second set of forms to the Merrill Trust Company of Bangor, Maine, and we have hopes of receiving a reply from them. Yours truly, WDM:D Enclosures Charles F. Gettemy, Assistant Federal Reserve Age Ootooer 31, 193C. Mommy R. Bowser, ;,lanaser, Financial Aatistios Dirision, Federal Reserve Ban% of Boston, Boston, v.assachntetts. Dear air. lower* 19s reoeilred your letter of or the emolosed tAbliws I-e. II0411 and II1-e oontaining data on bank earnings for the years MU and 1927. Very truly yours. J. 141 R$44144 eloretegrY. Osanittee on tram' Groap and akin Sinking. FEDERAL RESERVE BANK OF BOSTON ROY A.YOUNG.GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL K CARRICK, SECRETARY FREDERIC H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS E LLIS G HULT ERNEST M. LEAVITT L. WALLACE SWEETSER CHARLES F GETTEMY ASSISTANT FEDERAL RESERVE AGENT October 29, 1930 1,.r. J. H. Riddle, Secretary, Committee on Branch, GroUp & Chain Banking, Federal Reserve Board, Washington, D. C. Dear kr. Riddle:Pursuant to the request contained in the second paragraph in your letter under date of October 10\I al:1 enclosing, herewith, the tables covering our analysis of bank earnings for the years 1926 and 1927. The tables covering 1928 and 1929 will be sent to you as soon as the work on those two years is completed. Very truly yours, Henry R. Bowser, ,c,ianuger Financial Statistics Division _ • .1e •.,1( : " rs-%-t -zrt, _0$ .• i .),"1;1.: :1. Di& , yoT , CratC dL);" date1.1; fr:1 0 1-0 al tdr ;:nntiitter, "":111 • rir 10 U ..effizt It',Tr tny ti; a7--n-lilte it. ' tr.11' rrnirs ,74 II ldinn, ;Alorota.ry, Uomilltec On Branoh, (.7,-roup tut; Muth, Ilart3err. t• 010 FEDERAL RESERVE BANK OF BOSTON FREDERIC H. CURTISS CHAIR MAN October 20, 1930 Mr. J. H. Biddle, Secretary, Committee on Branch, Gr,)up and Chain Banking, Federal Reserve Board, Washington, D.C. Dear Mr. Riddle: I have your favor of the 11th asking for a report of the progress that is being made on the questionnaires sent out at the request of your committee. As yet, we have had only one questionnaire returned on branch banking; group banking and suspensions have been concluded, and we expect to have the schedule on earnings about December 15. I have hesitated to follow up the question— naire which we sent out to the banks in this district having branches as the three banks that have not reported are not members of the reserve system. If you think it advisable for me to follow up these non member banks, I shall be glad to do so. Yours very truly, %/4 4 Federal Reserve Agent. FHC/D 4 Ootober 20, 1930. Mr. Frederio H. Curtiss, Federal a/1MM Agent, Federal Reserve Bank of Boston, Boston, Lassechusetts, Dear Mr. Curti ass In Oonneotion with "2..b1e II-e which was submitted to you with CArs- tettOr of October 10th., the question has been raised as to what poper.tion figures shou1d be used in olassiAying the Gomnunitles in w7riich banks are located. We feel that tbr our purpose the polulation figures fo. year will be suffioiont to .11alas the olassifications for of the faux years. *:,Te siAmist, therefore, that you USG the population 214-;ares given in the Janu:11Ty 1928 edition of IIand MoNallyos Brankersi Director,. Very truly yours. J. H. Riddle, Seoretary„ Goussittee on•Bra),(-Group and Chain Banking. October 11* 1930. air.Frederic as Onrtise, Federal Reserve Agent* - 06ton* 3 Federal Reserve Bari-,: kaseachnsetts. Boston* Dear Mr. eagles* At the reeemt Conference of Governors amd Agents it was suggested that the Committee on Brought Group and Chaim Banking mane an estimate of the tine whim its report will be smihnitted. To do this it is meesseary to hive reports from the Federal reserve banks as to the status of infemestion whieh they are empiting or having compiled for the Committee amd an estimate as to the time Amen **may expect this infinmation. Will you be good snaps% therefore, to *hookup en the work in your distrlet and give no an estimate as to whoa the materiel being prep/trod or collected on the foilautag subjects will be completed: Vim" WOW (quest i mire) Group baskhig Susponsiame Earnings. Very truly yours, J. H. RIAU, Secretary* Coamittee cii Group and Chain Banking. October 10, 1930, Mr. Borbett Mr.Hammond On the basis of infonnation you gave us after oheokr. ing over the original list of SuiponSions schedules for the Boston Distriet, we asked the latter about the following: George 2, Anastoo--Boston li!ttore 2orts Suspended 2A1/21 7/1 1 1/21 " 7/7P1 7/1S/21 With reepeot to these the Boston sank reports as follower "The Maseachmidts Bank Ca.;taissionerts office advises us that the concerns listed are not considered. to be private hanks, The; are simply individuals 77ho are licensed to receive rilnev 7''or safe keeoiniT and tranailission abroA..9 With respect to the Shelton 3ank and Trust Corvam, Shalt. Connootilut, cuspended Jarr 1, 1q71, P F1,11111a711 ,1 11, 11P' 77)1-Dne 1. 77 r-cJilyned to Y:th rospec!:, to H-vn_ 3o -s, 1922, no Boston 3ank inform q2ile an 00Ami lone r aavises us that Ax.701 of New Hpven wetro private bankers and thrit at the suspension private banks were rot under the snperv of his department, and th,..t 4e is umblO to fa'7.n1.7, Jan° . 47n rDr: i011 i-!1 l'egaru_ " October 10, 1930, ir Frederis U. Curtiss, Federal Buena Amid, ?ederal Beseree Balked' Beaton, Boston, lisseeskeeette, Dear 14r, Ourtisas Enclosed please find °ogee of three table!i Ie, /1st and Ines for use in gesuping lailemeatian cenpiled on the "analrale of Bank Wangs" blanks sent you With our letter of August 11th. A supply of thees tables 18 beteg feenesdiel to you uuder separate eo7,1 -41, A eopy of ea* taide Ahmed be prepared for each state or fraction of a state Lajmnedistolot for soak of the four years. These tables eall for. prima plepli4 Of _banks acoording to the rate of net profits on invested capital and then regroupings aseoritag to the stabs. It is re•Nebted that you semi tolls theme tables for *salt pow se you finish thee Atheist yenta for the ocuplitien Of the 'Melo project as this will enable is to begin rtrriewing the materlal. The srowbog of the Mao as the boils of net loss or net pleat to torootst solit4 shoild be bept In that form for a thee, if possible, aim Shall sued you presontly •toblf, fora far presenting the hrpieel operating ratios of teaks marding to this grouping, The ovilioal forms on which yo• here worked out the reties der the iritiritanl banks tholld, ofemorse, be rotolood at your tanks Intay testy years, J. E. MP% Soemstesy, esmoittoo on Drualk, Mop out Moto Butalog, A-11no, • (0 Catcher 9* 1950, Kr. Oharies P. aettesw* Assistant Federal Reserve Amato • Poisral Reserve Beak of hoefea, Bastes* Ilitessehmsetts. Dear Kr* Cettoirt This ie to asioselake with Waft jeer lat, ter of October ith:smelesiwit tat gasilletten adwege Midi out for the theltam leak awl Twist Osersmr, Shelton* Oesommotiost. ma to eekeewledal year aglismstion that the other soepeastosmo set reported at axe these Of privet, souserms for which the commissioner has so data, Texv truly yours. J. Bo Addle* lieerstaxy, Committee as Bramoh, Grew mod Mamba Nokia& Ootobor 9, 1930. IMA.r1;.-s 7,-ettelt::, ,.1-,s1stant Peder,31 .41serve A e - nt, 7.1sorye 3Ar•.,-. of 3oston, .umsL;r., :::assachusetts. ,3411 t e"TT t 17^ aind6 out r07. Iornor.j_ ()the r (n71, :e'vrnis _!'or to ' ,,,,kowelod:e ;Tith thafksyciar_1::4 enelosinG the suspension sehe..1Hair;--;;Ilolton 3an,c. and. ..riut ja4paw, t nelcnowled.ge yytr explannt 11.0 t reported cm aro those of IN? conissIonor has no :lata. 7,rfrt," ond r3ocrlittee Bftatid.ng, ; ,v3 • FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A. YOUNG. GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER K. CARRICK, SECRETARY KRICKEL H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS CHARLES F ERNEST M. LEAVITT ELLIS G. HULT L. WALLACE SWEETSER GETTEMY ASSISTANT FEDERAL RESERVE AGENT October 6, 1930 Mr. C. B. Hammond, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Sir: Referring to y_21.1y letter_el eptember 22, 1930 in regard to suspended banks, we encloses form which has been filled out by the bank commissioner of Connec cut for the Shelton Bank and Trust Company, Shelton, Connect cut. '-dkrt Ad'," de The bank commissioner advises us that Angelo Porto and Sons of New Haven were private bankers and that at the time of the suspension private bankers were not under the supervision of his department and that he is unable to furnish any information in regard to this firm. You also inquired about four individuals in Boston. The Massachusetts bank conmissioner's office advises us that the concerns listed are not considered to be private banks. They are simply individuals who are licensed to receive money for safekeeping and transmission abroad. Yours truly, WDTI:D r Charles F. Gettemy, Assistant Federal Reserve Agent. September 25, 1930, Mr. Frederic H. Curtiss, ftderal Reserve Agent, Federal Reserve Bank of Boston, Boston, Laaeaohnsette, Dear Mr. (Partials In Sommeetioa, with the earnings project of the Committee as imemeh, group and Chain RanIring trans. anted to yea with oar letter of August 11th, one of the reserve hefts has made seas suggestions with reference to the beetling Of megativ• items, stitch are in aceord with idiot we dams to he sealed practice in this respest, and we are asseadially passing them along to you for 3rour inibraittien sot gaidanee. Vagy truly yours, J. H. Riddle, Secretary, Coomittee on Branch, Gregg end Chain Making. September 22, 1930, Mr. Oharles F. Gettemy, Assistant Federal Reserve Agent, Federal Reserve Bank of Boston, Boston, lYiassachusetts. "ly dear :,1r. Gettemy: This is to acknowledge your letter Of the ejalttegnith.---• with its enclosure oC reports on—iaspended banks from all of the states in your district except .thode Island. de have checked over the list of suspended banks maintained by the Division of Bank Operations and find the following7 sispensions of private banks recorded by them for which no reports were sent in by the Commissioner: George "?. Anastos--Boston It Ettore Forte Pantalione Mercurio It It K. S1')bodkin, Inc. Suspended 2/21/21 7/5/21 tt 7/7 21 it 7/1S/21 We find that the Division of Bank Operations also has the names of the following banks in Connecicut for which no report was received: Shelton Bank & Trust Co.—Shelton Anc;elo :Porto & Sons—New Haven Sus-)ended 1/3k1 6/.2/22 We should be obliged if you would check this up with respectively and inform us of the outcome of Commissioners the your inquiry. Very truly yours, Hammond, For the Committee on Branch, Group and Chain Banking. *• .73-'01\ 1. 1:Z. Pia,TS ER. S1:1- r,1 <-7 r'7 ber 1 c,..forrinr to r. oldenweiseris letter of September 17th4rerarding pro-Tress of the study of oarninrs of member barjcs in connection -7-ith the federal Reserve Cornittee on Branch Group and Chain Banking. hope to are progressinr with that study as reri-11- as possible. 'ave it com-leted during the latter part of 'ovember and in order to achave borro'red a temporary clerk from the Transit Donartomplish t eon at work with us for about u month. In adZition, we ,ent, who ha have taL-en on one full time, nermanont, additional employee in the demert-ent, in order to make ossible the handlinr of thgse freQuest requests 'rom the Federal Reserve Board. Asregards the instructions accompanying tr. aoldenweiscr', letter, we have been following the same method as outlined therein. An additional instance where we have eliminated banks, was in the case of several bpi-Ors where we have found that on account of a reorganization or the obtainin: of a new charter, the earninrs reports cover only a fractional period. For example, - a couple of cases recently care to light -there a bank filcC, a complete report covering the first six months, but obtained a new charter during the latter port of the second half year. Consequently, the earnings report for the second half year covered only the few weeks intervening between the 1-antinr of the new charter and the end of the year, thus eliminating in each case several months between July 1st and the date of the new charter. Approved FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A. YOUNG. GOVERNOR PADDOCK. DEPUTY GOVERNOR WILLIAM W WILLIAM WILLETT, CASHIER KRICKEL K CARRICK, SECRETARY ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLIS G L HULT H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ERNEST M. LEAVITT CHARLES F. GETTEMY WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGE NT September 13, 1930 Mr. J. H. Riddle, Secretary, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Riddle: Referring to your letter of July 25, 1930Am regard to the analysis of bank suspensions since the beginning of 1921, we enclose reports received from the bank commissioners of all of the states in this district except Rhode Island. There have been one or two suspensions in Rhode Island but the bank commissioner has had some doubt as to his authority to give out the details. He has promised to write us a letter, however, but we have not yet received it. Yours truly, AdAvil idr WDM:D Charles F. Gettemy, Assistant Federal Reserve Agent. 41) • COPY THE COMMONWEALTH OF MASSACHUSETTS . 4.m.....011.11.slisorii•••••••••• 01 1110 OFFICE OF THE COMMISSIONER OF BANKS STATE HOUSE, BOSTON September 16, 1930 Mr. William D. McRae, Manager Department of Examination Federal Reserve Bank 30 Pearl Street, Boston, Massachusetts Dear Mr. McRae: I have had completed, questionnaires regarding bank suspensions which you sent me in your letter of September 12. There are only two bank suspensions since the beginning of 1921. I trust you will find them in order and please accept the apology of the department for having misplaced the sheets previously sent to us. If we can be of further service to you do not hesitate to call upon us. Very truly yours, Arthur Guy Deputy Commissioner of Banks COPY 4111 STATE OF CONNECTICUT. BANK COMMISSIONER August 20, 1930. Mr. Frederic H. Curtfcs, Chairman, Federal Reserve Bank, Boston, Mass. Dear Mr. Curtiss: We enclose herewith data concerning bank suspensions in this state since 1921. You will note that our suspensions have been confined to private bankers, and , while the information we have given is not in all cases complete, we trust that it will be sufficient to serve you purpose. Yours very truly, (Signed) L. E. Shippee, Commissioner. BANKING DEPARTIEUT OF AUGUSTA AUGUSTA,MAINE •••••i••••••••1 0 August 1, 1930 Frederic H.Curtiss, Chairman, Federal Reserve Bank, Boston, Massachusetts. Dear Mr. Curtiss: We have your letter of July 29 and enclose data on banks which have failed in this State since Januaryl, 1921. Under the Maine statute liquidation of banks is handled entirely by the Courts, so that detailed information would have to be compiled from records in the Court. However, I trust that data which we are sending will be sufficient for your purposes. In regard to the cause of failure would say that in the case of the Lincoln County Trust Company control of tIds bank was acquired by Burgess Lang, and Company of Boston, and this company proceeded to cause the funas of the institution to be invested in unsound loans and securities. Failure of the Waldo Trust Company was caused in a similar manner after control of the bank had been acquired by Norman H. White. Yours very truly, (Signed) Sanger N. Annis, Bank Commissioner. SNiVN STATE OF NEW HAMPSHIRE BANK COMMISSIONER August 1, 1930. Mr. Frederic H. Curtiss, Chairman, Federal Reserve Bank, Boston, Massachusetts. Dear Mr. Curtiss: I am forwarding you, in reply to your letter of July 29th, a statement of the two suspensions since Jan. 1, 1921, in New Hampshire; and I trust the information contained therein will supply the information desired. Yours very truly, (Signed) Arthur E. Cole Bank Commissioner. 411 COPY STATE OF VERMONT DEPARTMENT OF BANKING AND INSURANCE MONTPELIER. July 31, 1930. Mr. Frederic H. Curtiss, Chairman, Federal Reserve Bank, Boston, Massachusetts. Dear Sir:We are enclosing herewith report on closed banks as requested in your letter of the 29th instant. Trusting that this will furnish you with the desired information, I am, Yours truly, (Signed) R. C. Clark, Commissioner. • • • • FEDERAL RESERVE BOARD WASH I NGTON ADDRESS OFFICIAL CORRESPONDENCE TO THE FEDERAL RESERVE BOARD September 17, 1930. Mr. Frederic H. Curtiss, Federal Reserve Agent, Federal Reserve Bank of Boston, Boston, Massachusetts. Dear Mr. Curtiss: In connection with the earnings project of the Committee on Branch, Group and Chain Banking we have been asked to rule on certain points with respect to the elimination of banks from a particular year's compilation because of suspension, consolidation, or the like. We are enclosing for your information and guidance a mimeograph of the points raised and our replies thereto. We trust that the project is moving smoothly at your bank and Shall be glad to be advised of its progress. Very truly yours, 04 0' 0 A. G4 denweiser, Chairman Commit so on Branch, Group and Chain Banking. Enc. :•) Federal Reserve Committee on Branch, Group and Chain Banking September 17 1930 In connection with the earnings project outlined to the Federal Reserve Agents in the letter of August 11th, this Committee has been asked to rule on the following points: "Shall we attempt to make an analysis for periods of less than one year, as for example (a) Where one or more call reports for the year are missing, or where one earnings and expense report is missing, because of organization, suspension, consolidation, etc., within the year. (b) Where all condition and earnings reports are in our files, but where the bank was organized between January 1 and the first call date. "In the case of consolidations between national banks, will it be advisable to make up our figures for the consolidated bank for the year in which the consolidation occurred by combining the reports submitted by the bank after consolidation with the reports of both banks prior to consolidation." To the above the Committee replied as follows: "In cases of organization or suspension of a national bank where a twelve months' earnings record is not available, the bank in question should be excluded from the particalar year's compilation. However, in cases where a bank is suspended for a short period only, and you deem its earnings figures representative of a year's activity, the bank cauldbe retained. Moreover, when a national bank is absorbed by a state bank, it will also be necessary to omit it for that year, since a twelve months' earningsrecord is unavailable. On the other hand, When a national bank absorbs other banks during the year, it is hoped than an effort will be made to aggregate the figures, both the condition and earnings, for all the banks in the consolidation for the year, so that the bank may be retained. We may illustrate what we mean by assuming that National Bank A absorbs National Bank B and Trust Company C in August. The autumn and December call reports and the December 31 earnings report will obviously include the figures for all three banks. It is hoped in a case such as this that the separate figures for each of the three banks for the June 30 earnings report and the String and June 30 call reports will be combined to comDlete the year's tabulation. "It seems clear that in cases where the early reports of the year cannot be put on a basis comparable with those of the latter art of the year the bank in question will have to be omitted for that year. However, a general policy of excluding any bank that presents problems without an attem)t to :et comArable figures for the twelve months would unquestionably eliminate much useful data, and, therefore, it has seemed best to us to suggest that all practicable efforts be made to retain them Along the lines indicated." September 164, 1930. iiir• William D. TieRas, Sating Assistant Peden& itisargro Agent, Federal Morn Mak of Boston, Boston, Massaehasette. lity dolor 21cRae: Xr,, RiddlOsehsenoe I (Weirs to soknovolift edge your lotter of tho thirteenth'Tith its ondloscre of reports on the folloring group banking vetoes, First National ‘enk of Doston, Maesschasette. Shsannt Asmoolation„ Boston, hisassehesstte. Nam. st WOroestor (Musty National Dank, Worceer, Hartford Gonnoctient 00., Hartford, Connecticut. the failure of ras Financial tIth regard Institutions, Ine„ to respond to ;our requeet, we the =atter to ;i1n2r can only.lears the handling judgment. Ile Moult: Me, of coarse, to have S5 °ono. plate infoxmation as possible* but If yo,.1 feel that farther oorrospondsmoo with UM meld be moelees, ChM should settle the natter. Wry truly years, limmoni, OS Goessittoo om arenoh, For aid Oman Imaings amp • • • FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A. YOUNG. GOVERNOR WILLIAM W. PADDOCK. DEPUTY GOVERNOR WILLIAM WILL ETT, CASHIER KRICKEL K. CARRICK, SECRETARY CHAIRMAN OF THE AND FEDE ALLEN 0- E LLIS G 61P P E*RVE AGENT 44k N‘ ; 'I k 41'k ERNEST M. LEAVITT .4ll• P L. WALLACE SWEETSER HOLLIS THE BOARD DEPUTY CHAIR ASSISTANT CASHIERS HULT \-\\ C) s H. CURTISS CHARLES F. GETTEMY 0 ASSISTANT FEDERAL 'PI RVE AGENT September 13, 1930 ' oN Mr. J. H. Riddle, Secretary, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Riddle: Referring to your letter of July 18, 1930 in regard to the operations of group banking systems, we enclose reports we have received from the following banks and companies: First National Bank of Boston, Mass. Shawmut Association, Boston, Mass. Worcester County National Bank, Worcester, Mass. Hartford Connecticut Co., Hartford, Conn. We also sent forms to the Federal National Investment Trust of Boston and to the Financial Institutions, Inc., Augusta, Maine. Owing to unusual circumstances the Federal National Investment Trust is unable to file a report at this time. The Financial Institutions, Inc. is controlled by a group of men connected with nonmember banks. They have not acknowledged receipt of our letter or forms. Do you desire us to follow this up any further. Yours truly, D. Enclosures William D. McRae, Acting Assistant Federal Reserve Agent. Septlilber 13, 1930, Ikr. William D. NORse, Acting Assistant 14eaeral Restrve &gent, Federal Reserve Bank of Boston, -7AsswAnsatta, diear Maass: in response to ; oar req-,“-Ist of September llth, we are eualosing three conies of the sohedule of inforination on hanks operating branches outside the city of the heed office. Yery tral7 yours, 0. B. Hammond, Fertile Ommlittee or Branch, Greup end Ohain Banking, tI Septmaber 12, 1930, Mr, Fre:leric H. Curtiss, Federal Reserve Agent, Federal Reserve Bank of Boston, Boston, L:assaohusetts, My dear Mr. Curtiss: How that actual York on the SuspeLcions Schoiules, submitted to you wi0 our letter of July 25th, J.:, under waT, ,lestians are arising in certain states which reflect the different niethods of beeping records and the difficulties in repo:ting exactly 'a:net is asked for, It is manifestly impossible to expect that an:: one schedule oodld be found equally well adapted to all states and to the Oa troller's office, and it is, therefore, unavoidable that in some stew:, it will be much more difficult to fill out the Schedules than it is ir others. To insure as much unifonaity as possible, however, and V * $ure sic:curacy in interpret in; the reports, it seems desirable to size the following points: 1. Sections V and 10 of the sohed110, as well as sections 7 and 0, call lor data on alai:isb defcsitors only, but where the records are such that depositors, claims osunot bo wregated frma other (slates, that is, bills pqrble and net.. evidencing borrowed mow, then total claims should be reported and a notationneds to that effect, 2, Secured claims should include only those elaIwo secured tir collateral or by collateral and suety bond both, but not elaims secured by ourety bonds alone„ The latter Should be listed among general olairas. 3, It is apparently the practice in MOO states not to list as claims those deposits Which are *soured by collrlerel, booms* they are assumed to be self-liquidating, For purposes of this sithedule, however, all oath de!osits should be listed as secured claims allowed and the amounts realized by the depositors on the collateral should be shown as payments on these claims. The amounts realized on the collateral should also be shown under collections, MY'. Frederic 1. Curtiss #2 SeAseher 12, 1530, 4. In many oases it is difficult to shew a figure for Secured Claims that does not Lucinda items whioh in part are present also as General Claims. The reason ter this is thnt Seeured Cleame are assumed to be se1talquide6ing end, therefore, are not part of the revolver's direst responsibility, which *over, only claims allowed for divides& porpoises. Any portion of a Beograd Olalm not liquidatai the oollateral segregated to it may, however, be allowed as a General Claim and, therefore, imereese the olatus allowed. fer dividend purposes. Men this's...us amid a correspond.. log Ohmage is mot nods insist nes originally reported es seemred °talus, it results in dapileetion. where it is possible within a reasonable tins to get aosarate figures or Boomed Mains that are net aad to not imetude amounts also included as General 01a1las, it is denim& thAt the* be so moiled. If this is not possible, however, and ties only available fires of Beograd Olatas inelmie amounts &leo present in Unmoral ashes, it should be eleariy 'vacated on the aohedule that this is the 04A64, 15. Under ovation 10 the immeate Mosta as *offsets to elates* should not be included ilitterimilercellectiels or ander elates allowed. 6. If records are in vmdb shape that tbe_flgares can not be eapplied in exactly the tans called for in the shove sections or wir other sections of the schedule, then the best figares erailable Should be given and a notation natio aa to exactly it they represent. This is essential as a vide in tabulating this material in order that we map not compare wholly =Ube adores fraa different states. very trail yaare, C. 3. BaAalal, For the Oomaittee an Sra44h, Group and Chain Banking. 4 FEDERAL RESERVE BANK OF BOSTON FREDERIC ROY A. YOUNG. GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILLETT, CASHIER KRICKEL K. CARRICK, SECRETARY H CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS CHARLES F. GETTEMY ERNEST M. LEAVITT ELLIS G. HULT L. WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGENT September 11, 1930 Mr. J. H. Riddle, Secretary, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Sir: Will you kindly send us two or three copies of the schedule of information on banks operating branches outside of the city of the head officel Yours truly, D. William D. McRae, Acting Assistant Federal Reserve Agent. 11, 1930. gr. Frederic 7. 3urtiss, Federal aeserve Agent, ?ederal :7rserve Bank of Boston, 3oston, Massachusetts. Dear Mr. Curtiss: The Committee on Branch, Croup and Chain Banking hat. outlined a nrogram for analyzin t7le earnjngs of national banks over a neriod of four years. At the heart of the discussion with respect to the changing nature of our banking structure is the matter of wholesale bank suspensions, repeatedly cited as evidence of the failure of the unit system in oertlin -uarters. BacK of the nsilurs is, of course, the question of profits and losses. The motivating force of banks as of other businesr enterprises is profits and their success or failure is measured by their ability or lack of ability to show satisfactory earnings. This Is especially significant with respect to banks, for a banker who Is not showing a fair rate of earnings is under the constvnt temptttion to take :1-.otcr and reater risks, thereby jeopardizing the safety of his depositors' money. It is very importPnt, therefore, to know what type of banks are not justiling their economic, existr-nce, where they ure 1GesteC, and why the:' are in this position. The yroblem is to approaoh those questi,,ns statistically for a period of years. Data shoule: be available in such Dorm that t'ley oan be clasFified in various ways in order to shov any significant trends ir earnings. auch material could be clas_ified by states to indicate tendencies of success or failure in the different sections of the country taxi in the various typr,,, , of industrial and agricultural communities, and cross classified to see if a degree of profitableness is associated with size, either of the bank or of the community in which it is located. Having determind the classifications of beaks not showinf7: reasonable profits, tt is desirable to know the operating* cenditions that are associated with such a situation. This requires a more detailed analysis of earnings, expenses, losses, composition of deposits and capital funds. Zlany of the Federal Reserve Banks have devoted considerable time and effort to analyzing the earnings of banks in their districts. It Is unfortunate, however, that there exists no body of statistical data on earnings covering the whole country for a period of years that would ANAMPP.-Altrt • Frederic H. Curtiss #2 August 11, 1930. permit groaping banks in a variety of ways or that is strictly comparable in the various districts. The present program has been worked out it oonsultation with several of the Federal reserve banks which nave already ben maline investigations in this field. It consists in working out various operating ratios for each netionel eenk for earth of the years 1926, 1927, 1928 and 1929, and each eederal reserve bank is requested to compile the data for its district. A special Pera has been prepare d and printed nor transcribing the earnings data and recordi ng the Tarions reties. The enclosed copy of this form has been filled out as a specimen and seems to be self explanatory. Page 2 givee the primary items which are to be oelpiled from the reports of condition nnd reports of earnings, expensea, and dividen ds, On page 4 template instrentiens are given as to the oomposition of these Items end the reeonciliations from call to cell. The eirnings and expense figures will, of course, be Lhe am of the fires on the two semi-annual reports of earnings, expenses, and dividends for the year in euestion. eeport of condition figures will be the result of avereging the respective fieurns on the four reports of conditi on (Spring, June, Autamn, and December). In the year 1926 there were only three calls. On page 3 of the form provision is made for reooreing the desired operatin ratios computed from combinations of flpetres set down oe pege 2. I am sending you a eapply of these forms equal approximately to four times the nembre of natienal b.:aka in your district. et are aware that there will doubtless be various nuestions arising when the work gets under - ty ont which you !nee wish to confer. There may be cases where a change in the status of a bank through merger or oteerwise so affects the condition 01' earnings figures in n given year that it should be omitted from the compilations of that rear. It is hoped, however, that ir e-ch of these cases a speciel effort eill be made to perfect a reascnnb/y good eet of the necessary ineome and balance sheet figures for the year in question. A too generous program of elimination of banks would obviously •:.anse the loss of much valunble informn tion. 7,0 are working out pinns for erouping ana enalesine the various operating ratios after they have been computed. These plans will be sent you as soon as they are eampleted. It is se-le:goatee, teerefore, thet the b1tnkz which are now being forwarded to you sheuld not be returned to iftehington when completed, but should be held tor the puepose oe making the 4erious t?bulations desired. For the time oeing this aneeeeis of earnings is limited to national banks only, in the interest of time and economy. It is somewhat doubtful whether the inclusion of state member banks woeld add materially to the ellee of the study. The Committee is open to suggestions on this 1 Mr. Frederic Re Curtiss #3 August 13, 1930. point, however, ard it wrmld be a si:LiAc a4atter to aôx t rber state banks to the study at a leter date if it di-uuld be deemed advisable, fery trttly yours, J. H. Riddle, 7eoretary, Coxmittee on Branch. Group and Chain Banking. 11, 15'30. Mr. Charles R. Gettaav, Assistant I.Peeral aeserve Agent, Fedora' :1oLerve Bank of Boston, Boston, massaohneetts. De -r Mr. (RAtesgir: In reve.)nso tc yovr roauebt 01 August eth for ofelve am re 30pi.:. S Vie 6:4 apensicns echedule n, are enolosing horrnvitn th,,) nadoer you devirs. 'Teri ru.ly ourh, C. B. 1161,3210nd, For the i3o:LiAttee on Branoh, Gra zip and Chain I3an1c1ng. OBE:13 Enc. •• • FEDERAL RESERVE BANK OF BOSTON August 8, 1930 Federal Reserve Board, Washington, D. C. Gentlemen:On_July 25\we received from kr. James li. Riddle, Secretary, Cummittee on branch, group and chain banking,a letter enclosing schedules to be filled out by various bank commissioners on bank suspensions We would appreciate it if since January 1, 1921. twelve inure of these us forward you will kindly schedules. Very truly yours, Charles F. Gettemy, Assistant Federal Reserve Agent July 25, 1930. Mr. Frederic H. Curtiss, Federal Reserve Agent, Federal Reserve Bank of Boston, Boston, Massachusetts. Dear Mr. Curtiss: The Committee on Branch, Group and Chain Banking decided some weeks ago that an essential part of its work should be a detailed analysis of bank suspensions since the beginning of 1921. The rapid growth in recent years in group and branch banking is regarded by many as an outgrowth of the large number of bank suspensions which have taken place during the past decade. Whether or not this is true, it is obvious that before the Committee can determine the full significance of this mortality among banking institutions and its relation to the new trends in banking it will be necessary to M8139 a more complete analysis of failures than the data compiled at present will permit. The program proposed is a substantial undertaking, and to be successful it is necessar to have the full cooperation of the various state banking departments, as well as the various Federal reserve banks. This program will entail considerable effort and expense on some of the state banking departments, but in view of the wide spread suffering caused by bank suspensions it is hoped that the state superintendents will give the System every possible assistance in this study. In each of sixteen states of the union over twenty per cent of the banks in existence in 1920 have failed since that time, and in seven of these over forty per cent of the banks have failed. These failures are continuing at a high rate, more banks having suspended so far this year than in any similar period since 1924. This is one of the most important problems facing many states and certainly one of the major problems of the whole country, and many states are doubtless already struggling to devise mays and means for bringing about greater stability and security among the banks of their state. Mader the circumstances it is anticipated that the states will welcome the opportunity to cooperate with the Committee in this work. It is appreciated, of course, that many states are operating on very limited budgets and may find it somewhat difficult to Mr. Frederic H. Curtiss f2 I 1 July 25, 1930. un ertake this extra work, but it is hoped that in no ease will the difficulties prove insuperable. It may be advisable in certain oases for the Reserve Bank to offer its 'entices in devising Aays and means for collecting the data, and this cooperation, if necessary, might actually improve the quality of the information secured. A tentative schedule for collecting information on bank suspensions was submitted for suggestions to the banking departments of some twelve or fifteen states in which suspensions have been unusually heavy. The response from these states wid the apparent willingness to cooperate in compiling the data were very gratifying. At the same time a number of suggestions were maAe as to revisions of the schedule. Therever possible these suggestions have been inoorporated in whole or in part. In some oases, however, the suggestions could not be completely sdopted because of the differences in termin ology and reoords in the various states. It hrls been necessary to draw up the schedule in terms which would fit as nearly as possib le the records of the various banking departments. The Comptroller of the Currency has given his full cooperation to the Committee and has expressed his villingness to furnish the information regard ing national banks. schedule as finally adopted has been printed and a few copies are enclosed herewith. A supply is being forwarded to you under separate cover. The Committee would like you to presen t these schedules to the banking departments of those states idioms capita ls are located within your district with the request that they fill out a schedule for each beak which suspended between Januar y 1, 1921, and Jume 30, 1930. It is hoped that the information will be suppli ed as fully and as carefully as possible and not in a nerfen otoxy manrThe importance of the subj, at and the value to each state of the r.e. stilts of the investigation would seem to warrant special care in fhe preparation of the schedules. As these schedules are completed and returned to you, yet may wish to review them and supplement them with any special information which you may have. Your views as to the ceases of the failures in your district would be especially valuable to the Committee. Very truly yours, J. H. Riddle, Secretary, Committee on Branch, Group and Chain Banking. A-Bno. July 18, 1930. Mr. Frederic 4. Curtiss, Federal Reserve Agent, Federal Reserve Bank of Boston, Boston, Massachneetts. Dear Mr. Curtiss: The Coamittee on Branch, Group and Chain Banking has prepared a schedule for collecting information rearing the oporation of group banking systems nd would like to have it submitted to the more important groups of the country. It is the desire of the Committee to secure as muci infor maltion as 'possible as to the actual operations of group banking systems and such information as is available regarding their merits as oompared with other fanas of banking organizations. In the collection of this information the cooperation of the controlling agencies of the groups is solicited. This is purely a request, however, and in no sense a requirement. The punpose of the schedule is to indioate the specific information which is desired and to insure the collection of oomparabie data in some systematic form from the various institutions. In view of the universal interest in this 'abject and the importance given to the development of group banking systems, those rc-sponsible for their operations will doubtless meloome the opportunity to state their views and to give the Committee the benefit of their experience. Following its usual procedure the Committee would like you to 'resent the schedule to the group systems in your district. The letnod of submission is a matter of your own discretion. In most oases it aay be sufficient to send the schedule by mail, but in soae cases better results might be secured by a personal visit from some representative of the Federal Reserve Bank to the head of the group system. When these schedules are ociapleted and returned to you, perhaps you may wish to look them over and sapplemont them 7•ith any special information or views which you may have. , go Mr. Frederic H. Curtiss #2 July 18, 1930. A number of copies of the schedule are enclosed, and if additional copies are desirsd taey can be readily sapplied. I suggest it be submitted to the institutions in your district listed below or to any others which you think would be nroduotive of results. As a rule the names on the list are holding companies, but in a few oases the names of banks which control other banks directly were included. Financial Institutions, Inc., Augusta, Maine. First National Old Colony Corp., Boston, Mass. Federal National Investment Trost, Boston, Mass. ahawmat Association, Boston, Massachusetts. . 7 70roester County National Bank, Worcester, kasti. Rartford Conneltiout Co.-, Hartford, Conn. Very truly yours, J. H. Riddle, Secretary, Committee on Branch, Group and Chain Banking. -A-E120. jdi ,4 AA.10 1 r714-tL- FEDERAL RESERVE BANK OF BOSTON FREDERIC H. CURTISS CHAIRMAN Mr. J. H. Riddle, Secretary, Committee on Branch, Group and Chain Banking, Federal Reserve F:oard, 7;ashington, L. C. Dear Mr. Riddle: I am in receipt of your favor o2 the14th\enclosing copies of Schedule of Information on Ranks operating branches outside of the city of the head office. I am sending these out today to the banks referred to in your letter. Very truly yours, 9;•••46.•04 1Wde 1/4 4 "4/0• Chairl)an / 4 4111 ‘ .4. 4/did July le, 1930. erederic 4. eurtise, ;Federal Reserve Aeent, Pederal Reserve egne of elstee, Boston, Massachusetts. Deer Mr. eurtiss: Tem Committee on Branch, Group and Chain Bantle preeared a sehelule for co/lectine informetion reeer the operutien of branches located outside of the city of the head oefile end woeld kE t2 it l' ,Wft^r'; tr the .nors imeortant brance banking eestees of the oreentee. It is the desire of the Cosmittee to secere as muCh Informatinn as possible as to the neterl oeeretIcre of braneh banking eysteme and eneh intormetien s ir nreelable reeereing tee merits of arch institntinne esIth oteee forms of aeking oreenizations. In the oollectien of teiE Atformation the 000perstier of the eeeke leerelJeg brachea, is solicited. Tele le nerele e "'i'0 :t, Nreev- r, are ir no sense 1 eeeeirement. The eureose or the scheelle is to indioate tile type of Inforeetion veioh is desired and to Insure tØeelleele ee lemeerrele ei- e.F. le EOMC sesteeatic form from the vorimis 71stitutionS. In view of toe aniversal interest in te1e. aubeect and the imnortanoe riven to ten development of branch banking systemu, ',:eoee responsible for their operations will doubtless eelcome the opportunity to state te-er vie' v !auf to give Lee eomeittee the benefit of their experience. iollowing it LIEllt,J procedure tee Ccee7ttee *meld lit* you to oresent the schedele to the branch .-stems in ecnr district. The method or suhmiesion is a matter of your own discretion. In most cases it may be seeeicient to send tne schedAle by men, but In some cases better rnselts might be secured by a erreoral visit from came representative of the ?edema Reserve eenk to the head of the branch system. Ur. Frederic R. Curtiss 4i2 July ',A, 1. A number of copies of the schedule are enclosed, and if additional copies are 4esired they can be readily supplied. I suggest !t he :ohmitted to the following institutions in your district or to any other selected list which you thirk would be nricOuct7„:: c,r better rerats. Augustn Trust Ocer,any, fugnsta, XLine. Merrill Trust Company, Mager, Maim. rndustrial Trust CoT71ny, Drovic:?nce, I. Fidelity Trust Comoaay, Portland, Maine. 7eiy tray yourt, J. 1. 3.eer , . thry, committee on Brunch, t.nd CuaiLi st-.72„ July 11, 1930. Mr. Frederic H. Curtiss, Feueral Reserve Agent, Federal Nseerve Bank Of 1308011, Boston, Sassaohursetts, Dear Mr. Custiss: .'eceipt is aoknowledged of your letter of July 10 with the enolosed reports frma the tank Commissioners of Maine, Massachusetts, Rhode Mond and Vermont on branch banks in operation In 1900, 1905, 1910 and 1915. Very truly yours, J. H. Riudle, Secretary, Committee on Branch, Group and Chain Banking. FEDERAL RESERVE BANK OF BOSTON FREDERIC W. P. G. HARD! NG. GOVERNOR WILLIAM W. PADDOCK, DEPUTY GOVERNOR WILLIAM WILL ETT, CASHIER KRICKEL K. CARRICK, SECRETARY H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS CHARLES F. GETTEMY ERNEST M. LEAVITT E LLIS G. HULT L. WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGENT July 10, 1930. Mr. J. H. Riddle, Secretary, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Tiashington, D. C. Dear Mr. Riddle: Referring to Er. Goldenueiser's letter of June 4, 1930, in regard to the development of branches as far back as 1900, I enclose reports received from the Bank Commissioners of Maine, Masschusetts, Rhode Island and Vermont. The Bank Commissioners of Connecticut and New Hampshire advise me that branch banking is not now permitted in their States, nor has it been at any time back as far as 1900. In Vermont no legal recognition of the right of State Banks to operate branches appeared on the statute books until 1929, but a few banks operated so-called agencies for a period of years prior to that time. vour2 vr7, truly, 44 • w/ S7 . 16•11,•••••=.410 1""4"46,3 Frederic H. Curtiss, Federal Reserve Agent. July 3, 1930. Mr. Frederic H. Curtiss, Federal. 7eserve Agent, ?sclera,. leserve 3ank of Boston, Boston, Massachusetts. pear Mr. flurtiss Thshk you tor your letter of June 30, with its various comments snd suggestions regnrding the Committee's prorosed study of bank earnings. These suggestions will be taken into consideration in working out our definitive program. Very truly yours, J. 4. Secretary, Conmittee on Branch, Group and Chain Banking. •• • FEDERAL RESERVE BANK OF BOSTON W P G WiL LIAM FREDERIC W PADDOCK, oERury GOVERNOR WILLETT,cAsmiER KRICKEL K (11 SECRETARY ifCARRICK, ALLEN HOLUS ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAVITT L. WALLACE SWEETsER H. CURTiSS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT WILLIAM DEPUTY CHAIRMAN OF THE BOARD CHARLES F. GETTEMY ASSISTANT FEDERAL RESERVE AGENT June 30, 1930 Mr. J. H. Riddle, Secretary Committee on Branch, Group & Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Riddle:Referring to your letter of June 25 and to the memorandums and statistical exhibits which accompanied it we shall be pleased to do whatever we Call to cooperate with you in making your statistical research of branch group and chain banking. I am answering the various questions listed on Pages 6 and 7 of your memorandum using the same numbers which you used. (1) .In general should prefer Compromise Plan but the are so minute that in several instances the banks falling into a given cIiiiification, in this district at any rate, would number not more than 4 or 5 individual banks. For such a I small group the median method is not practicable. (2) The period of time covered should not exceed the fivy_ysars, 1925-1920. The member banks in 1921-1924 were readjusting their position from the abnormalities of the War and post-War strains. Their position in those four years, 1921-1924, offers nothing typical upon wtich to base conclusions and, therefore, only tends to befog the pi tura when completed. As pre-mar conditions no longer exist, it would appear to be simply a waste of time to make this detailed analysis also to cover a few pre-mar years. (3) _1.124._. :ae cannot get comparable data for non-member state banks from the bank commissioners for the individual banks from 1921-1929. (4) The estimates of cost appear to be reasonablzaccurate if we assume that the entire job is to be handled by expel:finCid-clerks accustomed to the use of these reports. Our small department, however, must carry on its awn work and our employees cannot be taken off that aork for a period of several weeks or months. Therefore, inexperienced clerks whose work would have to be done tlifiCe over would be necessary. In that event prly,the costs would run up something above the board's estimate. l5) A grouping of banks according tc_l_W!_has been proved in this Federal Reserve District to have relatively little significance. This •• Mr. J. E. Riddle 2 MM. 4• June 30, 1930 classification for our purposes was abandoned after 1927 in our studies of earnings and expenses, although we had used it for seven years and originally expected that it Was the Much more significance in New England ideal classification. at any rate appears to attach to the classification of banks in accordance to their proportion of time to gross deposits. Classification as in accordance with the size of the community in which the banks are located seems entire]y useless. A city like Bangor, for instance, with its populaLion of 26,000, would be more typically a rural community than would many of the small manufacturing centers in Massachusetts whosepopulation might not be more than S.,000 or 10,000. (6) Yes. Loans and investments are a satisfactory measure of size. Invested funds and capital are worthless as a measure of size because the capital structure of individual banks varies all the way from 10 per cent. up to 20, 30 and even 40 per cent. of deposits. (7) So far as New England is concerned the grouping of banks as outlined appears to be rather too minute, some of the classifications being such as to contain a very small number of individual banks. (8) (9) (10) Analysis of earnings of individual banks have been made annually by this reserve bunk since 1921 but they have been based upon the semi-annual earnings and dividends statement only Unfortiaqely, we can use very little of these from 1921-1927. early studies for the work contemplated by the Board because most of the items mentioned by the Board represent small variations For example, since 1924 the figure from the figures as used by us. for capi-4aljuipik as used by us has contained capital, surplus and undivided profits, this basis having been adopted in 1924 at the specific request of the Board in order to make our figures uniform with theirs. (See Ur. Stewart's letter addresssed to kr. Bowser Now the Board indicates that under date of January 16, 1925). capii;a1 funds s:ould be compiled on an entirely different basis so as to include reserves as part of capital funds,- a figure which increases the amount by about 2 per cent, on the average. Similarly, the Board wishes demand„..11Aptialtie....to exclude bankers' deposits and U. S. deposits. Our compilations already made carry demand deposits to include bankers' deposits and U. S. deposits. We also have them to exclude everything except individual deposits, but neither of these compilations exactly tallies with what the Board wants. Therefore, much of the early work done will be useless for this study and we will have to go to work from the beginning with the original reports. Unquestionably total available funs are more inclusive and, therefore, more accurate; but the difference between them and total loans and investments does not seem to justify the additional work involved, since we have many of these ratios already worked out on the basis of loans and investments. The importance of using averages of five calls rather than a •• _ • single call depends entirely upon the degree of accurady which the Board desires to attain. An avgragn-ag five days throughout the year is always more dependable than the figures of a single day. It is simply a matter of whether it is worth the expense of attaining this somewhat greater accuracy. Changes in the character of banks' such as the absorption of a non-member bank by a member bank uaually deargys the comparability and would"seem to require that the bank 1* question be eliminated from the study. (12) (13) Ratio X which shows the percentage of interest paid on total deposits appears to serve no good purpose. It is obvious that a bank with more than 50 per cent. of its deposits in time deposits will s ow much higher interest rates relative to its total deposits than will a bank which handles mostly commercial checking accounts. Some time ago we got away from this percentage, many of our member banks having taken exception to it as being worthless and misleading. I should, therefore, On the other hand, there certainly should be omit Ratio X. a ratio showing the percentage of time deposits to gross deposits as this may prove to be the key to the whole' problem. In New England, at any rate, it is the point on which most of our conclusions seem to hinge. Yes. Very truly yours, • •-/ ' ftl • Frederic H. Curtiss, Federal Reserve Agent safte—ws June 27, 1930. Mr. Frederic H. Curtiss, Federal Reserve Agent, Federal Reserve Bank of Boston, eoaton, easeachusetts. Der 1r. artisS: Your letter of June 11, regaeding the Committee's reouest for changes in tee structure of eueleeee enterprises in your cLstrict as they affect banking connections was received some days ago. Year doubts as to the value of tnis Info-maTior en well as your henitancy in sending the forms to the member banks of your district are, of course, underetandable and your views on the subect err apprecieted. You eneeretend the situation in your district oetter than the rest of ab, and tee Comeittee has no desire to press this reeuest if it prosfec, imp ictici ft1y bureensome. It hee beer roceezere for tb& Cammittce in Lrfting Ali its requests for information to eeieh the difficeities of compiling against the value ofthe data which may be secured. In this case, se in others, it was decided that all things considered It was worth making un efiort to get some definite tangible data regarding the effect on te bankine system of the changes in industrial and commercial structure. nose changes in the business structure are everyweere suggested as one Ji tne calses for cafe present tendencies in the banking organisation, but little substantiating evidence has been coepiled on the sub:ect. It is learly one of the functions of the Committee to determine if possible the causes for the present tendencies in bnnking organization end it was felt that if anyone nhould know what chenees are affecting the banks, it would be the bankere themselves. This re7uest was prepared, therefore, to get from the verious sections of the country some concrete ceses of the changes which are actually occurring, as well as the testimone of the bankers themselves. If the brinks are willing to supply this information, it -maid doubtlens have considerable value. It may be, (Nf course, that the Dore of the reqnest was not the best that could have been deeised. Then Mr. Rand of the Marine Midland was testifying before the Haase Com:nitteo on Banking and Currency, he read (c)nfileetially and off the record) a list of beieness mergers or consolidations in eis territory whioe had reeulted in the loss of accounts to his banks. The members of the Committee and others who heard his testimony were greatly Impressed with this concrete and effective -may of illustreting some of the economic changes welch affect banking institutions. It was suggested informally that the Federal /eserve eoard might collect similar infermetion from the various districts of the country. Mr. Frederic H. Curtiss #2 June 27, 1930. The suggebtion seemed to fit in with the program of the Yederol Reserve Committee on Branch, Group and Chain Banking and was, therefore, adopted. I hope the effort prores lrorthwhile end that we may get something of value. 7:e have not heard from the other districts, but resume the information IE tejng complied. Very truly yours. • H. Riddle, Secret -17. Committee on Branch, Group and Chain Banking. Jane 25, 1.930, Mr. Frederic H. Curtiss, Federal isserve Pederal 4eserve Ilalk of Boston, Boston, Lassachusette. Dear VI.„ Airtiss: Tour letter_pf June 24, 19;50, has been received, 710--The Committee appreelates the ioue COAMElltE which both you am t:le of the Ilrurch brnking Nvatem whom you coh641teL: ;nrding the proposed schedule :or hwe maoe rey: cllIectInc information from branch banking sysue kept tems. These v,Ilriout Suu,gebtiOilb in mind when the ashedule is finally revised, Very truly yours, J. H. RiL:dle, Secretary, Co:Inittee on Branch, Group and Chain Banking. Tune 25, 1930. ?reieric TI. Curtloa, Federal Reserve Agent, Federal Reserve Bank of Boston, Boston, nassachusetts. Dear kir. Curtiss: am enclosing two copies of a memorandum regarding the proposed study of hank earnings /ay the Committee on iranch, Gronp end Chain Banking. This memorandum outlines two mpthods of procedure with various modifications, and !sides a number of luestions aa to both the scorie the investigrtion anti the method of procedure to be followed. • •••••••11v In view of the Ivork which your bank hab already done along these lines and the interest which you have in the subject, the CO4mittee would. appreciate your viwws regarding the proposnls outlined and the various ‘uestions rkised. Very truly yours, J. H. 'Riddle, Secretai7, Committee on Branch, Group and Chain Banking. •0 •• FEDERAL RESERVE BANK OF BOSTON W. P. G. WILLIAM WILLIAM KRICKEL. HARDING, GOVERNOR W. PADDOCK, DEPUTY GOVERNOR WI L LETT. CASHIER K. CARRICK, SECRETARY ASSISTANT CASHIERS ELLIS G. HULT ERNEST M. LEAVITT L. WALLACE SwEETSER FREDERIC H. CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD CHARLES r. GETTEMY ASSISTANT FEDERAL RESERVE AGENT June 24, 1930 Mr. J. H. Riddle, Secretary, Committee on Branch, Group and Chain Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Riddle: I hnve your letter of June 12,..1930 enclosing a tentative schedule which it is pronosed to submit to the more important branch banking systems in I have taken up this schedule with the president of the the country. largest bank in this district which operates branches in cities outside of the home office, and T am gore yor will be interested in his comments. He says: "On Page 2, Question No. 7, we would rot core to divulge the emonnt of deposits or local loans in connection with any of our branches, This, however, as we consider this confidential information. might not apply to other institutions. "Page 3, Question No. 10, this information could be obtained, of course, but would require considerable labor. "Page 4, Question No. 2, this would be practically impossible to answer. Frankly, it would seem that it has no bearing on the subject. "Page 5, Sub-division 4, Question No. 1, the word Idisposable.t That is rather indefinite and we would not know exactly what it means. Later it would seem that the word 'available' has been used in the same manner. "All the other questions, it would seem that the barks would be able to answer, although It would require considereble labor and effort on their part." His general comment on the questions is that the most valuable function of branch banking is lost sight of, as there seem to be no questions covering +lin benefit of having a branch of a large bank in a small community -where that small community has the advantages of the organization, such as large deposits and the large capitalization, of e parent institution. He mentions the cases of small towns which have large manufacturing plants rilich would not he justified in doing business with a bank of the size ordinarily found in such e small community. t/ r • • —2— • • Mr. J. H. Riddle, Secretary, Committee on. Branch, Group and Chain. Banking, He notes that there is nothing in the questionnaire which covers the greater safety to depositors in the management of a brnch as against a small separate unit institution, for instance, the establishment and use of a large well organized auditing department which not only makes physical examinations Periodically, but elso requires weekly reports to the head office covering A small institution is ordinarily run and controlled by branch operations. the cashier or president, in other words, a one man control, rhile branch management is controlled by a head office which establishes a policy. He thinks that these subjects should be brought out in the questionnire. Mr. Goldenweiser, in his letter or June 5, 1930, mentioned that there were a number of other schedules and forms which were being worked into finel shape, and it seems to me that there ir danger of these schedules overlapping, for instance, on Page 4, Question No. 2 of this schedule would seem to cover about the same ground as the schedule enclosed with Mr. Golaenweiserts letter of June 3, asking for names of accounts lost through mergers or consolidations or business enterprises, eta. Many of the questions in this schedule would also apply to groups or chains of barks and in some cases we have groups or banks, some of the member banks of which have branch systems including branches outside of the home office city. If it is proposed to send a similar questionnaire to group banks, it mould impose a heavy burden on all such groups as had extensive br-nch systems. Yours truly, ';;;°••—•••■•—•.—.. mirk D. Frederic B. Curtiss, Federal Reserve Agent. :um 12, 1930. Curtiss, Kr. 'Frederic, Federal Deserve Agent, 1.;,e , dorn1 r).csm•.-.fr -%,); )7 ,c.,toT,I, BOston, klassaCiusette. Dear mr. Jurties: The Committee on iiranon, Cro.ap and ChaiL tins deolOad h.'s a ofirt ;tr.- irci9r,t!,17 tioLi to cio, througn the eederal reserve brtn:Ks, Lchodule to more important bm-,,h t.:1•:: cY.)-1/, for the purrose of securing as rauch da:a as fls to the aotual oner, tlons of theze sys',;ems. sohedule has bren prepared, tlin copieu of Wrii011 tire enclosed, trat be'ore Aopting :.and sending it to the blisish systems the Committee mould tporeoiate gm/ oaoments or s-.7.71.rsti7.-ms dou may luirs to MEJ.AO. 10,Zrbrl, to mate tae sohedule It is (iesirable, '..ocure sufficientl:, cs,w7rel-ienLi.te burdensmae or iminformation vitecut bein3 t t * - -.7) • 1 1::r sy nract .gest any operating in Jour uistriot may lead you to su4., order rnblr. s..ey he add': tiout or o'canc.es results. to secure Lae best Yery truly yours, J. N. Riddle, Neeretary, Coarsittec: on draach, Croup and Chain &lc cing. ir „ice_ SCHEDULE OF INFORMATION ON BANKS OPERATING BRANCHES OUTSID2 OF THE CITY OF THE HEAD OFFICE I. Organization and history 1. Name of institution City Location of main office: State Population of city Member or non-member of Federal Reserve 2. Condition as of last call, Date Capital Surplus and undivided profits Loans and discounts Investments Demand deposits Time deposits 3. Outline your corporate history, including dates of organization, incorporation, important mergers and the beginning of branch banking. 4. Number of branches,Juu 30, 1930 June 30, 1925 In city of main office In outside cities and towns 5. What procedure have you followed in acquiring banks-exchange of stock, purchase of stock, or purchase of assets? 6. How do you determine the price to be paid when you purchase the stock or assets of another bank? In the case of exchange of stock What mPthod is usPd to determine the basis of exchange between the stock of the bank taken over and the stock of your barilx? -2- 7. List all branches outside of the city of the head office. IIILocation d name of 410branches - Population of town or city Is community residential, commercial, industrial, or agricultural? Average gross deposits of branch Local loans Year of establishment of branch Acquired by merger, or established de novo Number of independent unit banks in same town or city Number of branches of other banks in same town or city III 411 1 • • • • -3 g. List below the corporations other than Commercial banks-i.e., securities companies, insurance, mortgage, safe deposit, real estate companies, etc.--with which your bank is affiliated. Give the form of the affiliation in each case--stock trusteed for bank stockholders, direct ownership, ownership through or by holding company, etc. State also their function and how they were acquired--exchange of stock, purchase of stock or purchase of assets. Capital and surplus Name 9. Form of affiliation Function Method of ac uisition Describe the method of handling slow and doubtful assets of banks acquired by you, and indicate what success you have had in liquidating such assets. 10. Distribution of stock: How many stockholders have you? What proportion of your stock is held in the city where your main office is located? What proportion is held in branch cities? What proportion is held elsewhere? Are these proportions undergoing any change? Have you a policy of stock distribution? If so, describe it. If all the stock of your bank is owned by some corporation, state its name and give the above distribution of its own stock. 11. Economic background 1. Outline briefly the development of your branch operations indicating that considerations and conditions were most • •-4 • • influential. Has the development been largely a matter of choice with you, or has it been impelled by social and economic changes? If the latter, please describe them as specifically as possible. 2. Presumably many formerly independent enterprises (stores, factories, etc.) operating in your region have been absorbed in recent years by larger companies, with the result that the local banking connections have been disturbed. If so, can you give a representative list of such cases? Are your banks seriously affected by the tendency? 3. Have you taken over any weak or unprofitable banks that are now being operated as successful branches? If so, to what do you attribute the fact that they are now successful? III. 4. Have you established any branches in communities Which would probably not support independent unit banks? at advantages Have such branches been profitable? to them succeed where enable that have such branches the unit bank would not? 5. Have you been operating any branches outside of metropolitan centers at a loss in the expectation that community growth would make them profitable? If so, describe the conditions. 6. Describe the economic character of the territory covered by your organization, indicating what diversification of business is secured by your branches. Management and supervision 1. Has each branch its own advisory board consisting of local people? Is each member of the advisory board a stockholder? •• • -5- 2. How many of your branches have as managers the same men who were in charge of them as independent unit banks? To what extent do you shift managers from branch to branch? 3. Has the growth of your branch operations been retarded by difficulties encountered in developing a competent personnel? What difficulties have been encountered and how have they been overcome? 4. To what extent do you decentralize management? Are all branches controlled directly from the main office or do you have intermediary district offices? 5. Are there definite, specific restrictions upon the poWer of the managers to make loans--both as to total funds available and as to the credit of the individual borrower? To what extent does your main office or trict supervisory office attempt to pass upon loans beSore they are made at out-of-town branches? Approximately what proportion of the volume of loans made by the branches is passed upon by the head office or trict supervisory office? 6. What methods are used in coordinating the activities of the system as a whole? 7. Describe the method used in auditing the branches. S. Do auditors or special inspectors invPstignte loans from a credit standpoint? IV. Policies and operations 1. Give the proportions of the bank's total available funds (capital, surplus, undivided profits, deposits, borrowed money and notes in circulation) on June 30, 1929, and on June 30, 1930, which were used in the following, and e.xplain • • • 6 whether tliese proportions are represontative of your policy and practice: June 30,1529 June 30,1930 Loans to customers er! Securities, acceptances, mortgages, etc. New York money market Depository banks 2. What essential changes, if any, have been made in the lending policies of the branches since they were taken over? How is this reflected in their loans and investments? Has the ratio of aggregate loans and discounts (not investments) to deposits changed materially in any of your branches since they were taken over? 3. Has your bank with its branches actually achieved a diversity of loans not possible while it was a unit bank without branches? Explain. 4. What changes have been made in rates charged on loans by banks taken over and converted into branches?. 5. How do the rates Charged on customers' loans by your branches compare with the rates of the independent banks in the same communities? 6. Do all your branches Charge thr same interPst rates? If not what factors determine the rates and why the differences? 7. Do your branches have any minimum size for loans? If so. what is it? Is this any different from the nractice of independent unit banks in the same communities? S. Do all your branches pay the same rate of interest on deposits? If not, what factors determine the rates and why the differences? • 7 9. What changes have been made in rates paid on deposits by the banks which were taken over and converted into branches? 10. How do the rates paid on deposits by your branches compare with those of the indepeIdent banks in the same communities? 11. In case the credit demands on a particular branch are in excess of the funds available, what assistance is rendered by the main office or other branches? How is this assistance rendered? 12. Through the process of shifting funds from one branch to as the. neet_s determine, are you able to meet all the credit demands on the various branches or do you sometimes borrow from the Federal reserve bank or your metropolitan correspondent? M • 13. What is the ratio of the bank's capital to deposits? 14. Is capital assigned for accounting or other purposes to branch offices? How do you determine profit and loss for each office? 15. Have you a fixed rule as to the proportion of deposits that must be carried as cash in vault by your branches? If it varies for different branches, give the reason therefor. For your entire system how much cash in vault is carried in proportion to deposits? 16. What, if any, economies have been effected in the operation of your branches since they were converted from independent unit banks? Can you give specific evidences of such economics in: Salaries and payroll Forms, supplies and equipment Advertising Rent, etc. • • • • 8 17. Aside from operating economies, if any, what specific advantages have your branches over the independent unit bt.nks? 18. Has it been your experience that the enlargement of your capil,a1 funds through the acquisition of banks and their conv:xsion into branches has tended to increase or decrease your rate of profit? 19. Do you handle personal trust business? What proportion of your gross profits is derived therefrom? Are trust operations carried on in each brarch? What proportion of branch office profits is derived therefrom? Describe your supervision of trust operations. 20. Do you sell securities? Are your branches important outlets for the sale of securities? Do you originate issues, either directly or through an affiliate? 21. Does your bank make loans secured by the stock of any corporation with which your bank is affiliated, and particularly a corporation which itself is a large stockholder of your bank? 22. When an independent bank is taken over and converted into a branch, how are correspondent relations affected? Are the combined balances which the parent bank and new branch carried with correspondents before the merger reduced? Do any of your branches borrow directly from correspondent banks? State what direct contacts, if any, your branches have with correspondent banks. 23. What effect, in your opinion, would the general development of branch banking have upon correspondent relationships as they have developed under the independent unit banking system? 24. If a member of the Federal Reserve System, how do your relations with your Federal reserve bank comnare with those of independent unit banks doing about the same volume of business? Are all the currency requirements of your branches handled through the parent bank, or do your branches deal directly with the Federal reserve bank? Do any of your branches ever borrow directly from the Federal reserve bank, and if so, under what circumstances? • • • • 9 25. What effect would the general development of branch banking have upon the Federal Reserve System? 26. Describe your method of clearing checks, indicating particularly how your branches clear with one another, and whether they deal directly with the FPderal reserve bank and correspondent banks. 27. If you are a member of the Federal Reserve System and operate in a state There branch banking is permitted, do you work under serious competitive disadvantages compared with non-member banks that are free to extend their branches? If so, indicate how serious the competition is. V. Branches and the public 1. Is there any general prejudice in your own region or territory against either group banking or branch banking? 2. That various types of banking service are offered by your branches? Do the branches of your bank offer any services to the public in addition to those offered when they were independent banks? Do they render any service not offered by the independent unit banks in the same communities? What are they? Do you expect in time to offer other services? 3. Are the lending policies of your branches more liberal or less liberal than those of the independent banks in the same communities? 4. Have any new independent competitive banks been opened in the communities served by your branches since they were established? 5. Do you think that small rural communities can be as adequately served by unit banks as by branch banks? If not, why? 6. In your opinion, can branches operate successfully in small communities where it appears unprofitable for independent unit banks to operate? •• 9 • • — 10 — 7. In your opinion, what territorial limitation should there be on branch banking, if any? Should it be limited to counties or states, to reserve districts, trade areas, or to other economic divisions? S. Aside from the law, what are the chief barriers, if any, to an economically sound development of braach banking? For example, administrative and personnel problems, adverse public opinion, etc? FEDERAL RESERVE BANK OF BOSTON FREDERIC H. CURTISS CHAIR MAN June li, 1930 Mr. J. H. Riddle, Secretary, Committee on Branch Banking, Federal Reserve Board, Washington, D. C. Dear Mr. Riddle: On June 3 I received a letter from Mr. Goldenweiser in reference to procuring data for the Committee on Branch, Group and Chain Banking in connection with the organization and structure of industrial and commercial enterprises in this district as they affect I have also received, under separate cover, the shifting of banking connections. a number of forms for use in connection with this letter, asking member banks for names of accounts lost or gained through mergers of business enterprises covering a period of 5 years. From contacts I have had with bankers in this district, both in Boston and outside, I find that no records are kept by banks covering information of this character,and I doubt very much whether any information we can get from the banks on this subject would There are so many changes and transfers be of any worth whatsoever to your committee. very would be difficult for a bank to draw any daily that it on going accounts of conclusions that to my mind would be worthy of consideration. -01.11 far as the New England district goes, there are certain outstanding features of the trend of banking which wó come in contact with here at the Reserve Bank; for instance, in Ikaine there has developed a fairly large chain of banks which are owned or controlled by the so called Insull interests in Chicago. In some cases, these interests have gone into a mill center and have purchased the mill for the water power rights and have then either In the operated the mill purchased or in some cases have only utilized the water power. western part of Massachusetts, we have a group of banks that have joined together under the name of the Western Massachusetts Banking Associates in order to protect their This movement is similar stock ownership and to cooperate in connection with loans. to the one organized last year in Minneapolis../ Another movement here in Massachusetts was one made under the direction of Mr. Homer Loring, that took the form of the While in that consolidation and reorganization of certain textile mills in Fall River. particular case there is some affiliation with the Fall River banks, there is also no doubt some financing done in this enterprise with the Boston banks, although on the other hand, Boston banks have been accustomed to financing both Fall River and New Bedford mills for a number of decades. "There are two outstanding systems that have developed under the leadership of Boston banks; one that of the First National Old Colony group and the other the National Shawmut Bank group. These two groups have purchased banks in the outlying territory of Boston, the particular bank bought being for the most part in residential sections where the banks have an accumulation of either savings or individual deposits,and in cemmunities which had a comparatively small demand for bank accommodation from local business interes+7s. -2- I think this movement has grown to a considerable extent through the desire of the Boston banks to have an outlet for their security departmentrI the local interests being influenced to sell their stock ownership through the attractive offers made by the Boston The prices paid in most instances by the Boston banks banks for the local bank stock. for the stock of these outside banks has appeared to us to be inordinately high. On the other hand, the Boston banks I imagine have expected to meke considerable saving in the overhead expenses of these banks besides having them as feeders as I have mentioned. During the last two or three years there has been considerable development in this district in chain stores, such as Woolworths, Kresge, A. &: P. and the First Aational (not, of course, the First National Bank) and these chain stores have been keen competitors in local communities with the local stores. As you no doubt know, the two most important industries in New England have been the textile and the shoe, and the communities having these industries have suffered considerably This, of course, has affected a large by the circumstances surrounding thos3industries. and,in that way, has population of the affected the banking situation. Irrespective portion savings throughout New the deposits fact, England have tended to increase, both of this in the mutual savings banks and in the commercial banks. /In the case of the ccmmercial banks, the falling off in commercial borrowing has made it difficult for the country banker to find investments and he has turned toward real estate loans and securities, neither of which at the present time have proved very satisfactory. I think this together with the attractive offers that have been made from the city banks for their stockholdings, has been the incentive which has brought about chain banking. This whole movement that has been going on here over the last two or three years has been so gradual and so indefinite that I believe in most cases the bankers themselves have not realized just what has happened. I am giving you this picture as I viewpoint here is much closer and information from any of the banks further on this matter, and shall care to have me do so. see it here at the Reserve Bank, for I believe that our accurate than anything that can be received from seeking in the district. I shall be glad to hear from you of course send out these questionnaires if you still Yours very truly, w4/. ' Federal Reserve Agent. ne b, i4r. Frederic ff. Curtiss, Federal leserve A,,fent, Aulerel eserve 3ank of Boston, ooston, kassacdusetts. Dear Mr. Curtiss: AS you doubtless know the i;oilifsittee on iranc4, Group and Chain 3anking has been preuerinR during recent weeks a program for its investigation, and various tables, schedules and forms for compiling data are in course of preparation. 5ome of tiles* have already beton submitte, to you either or suggestions as to form or for the actual collection of data, and others will fellow snortly. I aai leaving ashington tomorrow anu will be away about thrrs months, spending most of thr,t time in Yurope. In my absenoe the secretary of the Committee, kr. Riddle, will soledules keep in to 10h with you and Till submit to you other lours., of and forms as they are /orked into final aape. I, secrethe have gone oirr the w,neral soope of the study with tary nnd some other members of the Committee and it merely reasins to work out the final details of the pr000aals. other memThese schedules and forms will be passed upon by l oases bers of the Committee, in ay absence, 'Ind In specia y tinnil are they before 14stem by other members of the your in data of tion the collec for adopted and submitted !lave district. You may be assured, therefore, that they receivrd careful attention. Very truly yours, 'Thainuan, Counittee on Branch, lroJ and Chain Nanking. To be sent to all ?ederal Xgents Dear Lr. Curtiss: As you doubtleLs 'chow the Committee on Branch, group and Chain Banking has been preparing during recent weeks a program for its investigation and various tables, schedules and forms for compiling data are in course of rreparation. Some of these have already been submitted to you either for suggestions as to form or for the actual collection of data, and others will follow shortly. ec4,17 I am leaving 7lakhington tomorrov..7 aiA,p---arerrtte+r-ne-etiti---rszt-tnd will be away about three ::.onths, spendin. _lost of that time in Europe. In my absence the secretary of the Committee, I.1r. "?.i.,1,11e, will keep in touch with you and will submit to you other sched.11:, and forms as they are worked into final share. I, of coarse, have gone over the general scope of study with the secretary and some other members of the Committee and it merely remains to work out the final details of the pronosals. These schedules and forms will be passea upon by other members of the Caa..ittee, in my absence, and in special cases by other members of the System before they are finally adopted and submitted for the collection of data in your ette.:41 received careful attention. have they - ,TOU may be assured district% Very truly yours, Chairman, Committee on 3ranch, Group and Chain Banking. ,444-1.44-1-t / 16 -434-4-eta, ,ottkttaArt•-e+4 _A>, :6 A June 4, 1930. Mr. Frederic J. Curtiss, Federal Reserve A ,7ent Federal leserve Bank of Boston, Boston, Massachusetts, Pear Mr. Curtiss: , In the study of branch banking the Cannittee on Branoh show someto ble group and Chain Banking thinks it desira thing of the development of branches as far back as 1900 in order to give a fairly oomplete statistical story of this movement. Apparently no reliable statistics on branch banking have been oompiled for years prior to 1919 or 1920, and it is proposed, therefore, to ask the various state banking departments and the Comptroller of the Currency for certain data for selected years during that earlier neriod. Accordingly a simole schedule has be-en prepared asking mereand ly for the number of branches, loans and investments more or one ed operat w lioh tr:tnk eaoh total resources of branches in any of those .years. The .-e were prob .bly not more than two or three 'hundred such banks in the whole country und the compilation, in so far as the data is not be a burdensome one. available, t that A cony of this soheaule is enclosed and I sugges to ments g depart bankin you request the appropriate state states of ,narts or supply this information for the states le which are included within your district. A separate schedu law state under is to be mzIde out for each brink o )erating data whioh had branches in any of the years mentionod. The of for national banks 7111 be supolied by the Comptroller the Currency. d to you in 'The secretary of the Committee will forwar in your use for les schedu supply of toebe a few days district. Very truly yours, +Enc. Chairjac, Ca-Attee on Branch, grou:i zn.. Tattin BankinR. June 3, 1930. Mr. Frederic H. Curtiss, Federal Reserve Agent, Federal Reserve Bank of Boston, Boston, Massachusetts. Dear Mr. Curtiss: one of the functions of the Committee on Branch, Group and Chain Banking is to determine, if possible, the principal causes for the present tendencies in banking. It is believed that °hangs which have been going on in the organisation and structure of industrial and commercial enterprises throughout the country have resulted in a shifting of banking connections and have been a factor in the situation. In nearly all communities there have doubtless been independent enterprises with local banking connections which during the past five years have been amalgamated with or absorbed by other enterprises with headquarters in some other city, usually some metroixolitan district, with the result that their principal banking connections have likewise been transferred to banks in the larger cities and only nominal accounts left in the local banks. Other industries have passed Into the control of capitalists located elsewhere with a conseiuent shift in banking connections. In some communities this has nrobably resulted in S net loss of business to the banks, while in others the Rain may have equaled the loss. In still other communities, especially the metro-. Mr. Frederic H. Curtiss #2 June e, politan areas, the result has perhaps been a net gain in banking connections or in the volume of business. While it is cleerly not feasible to make a complete tabulation of these changes in bank connections so as to show just how much particular communities have lost or gained by the process, it is possible to secure for selected cities or oommunities a list of instances where industrial or trnJe combinations have resulted in the loss of business to the banks of that area. In fact one banker while testi- fying recently before the Hausa Committee on Banking and Currency read such a list of consolidations or mergers which he resulted in the loss of accounts to his group of banks. Perhaps you can secure such lists from the member banks in certain selected cities or comunities of your district, 1.n., names of industrial and caanercial enterprises which through either chanee of control or throlgh consolidation or merger with other enterprises have transferred all or a part of their business away from the banks with which they have been a.customed to do business to banks in other cities. The neene of the city to which the account has been transferred should likewise be gieen. In making the reports the balks might also note the accounts which have been gained by the same process. It is suggested that you reeuest this information from the member banks in some teelve or fifteen towns Or cities in your istrict varying in size from the very mall towns to the larger cities. treated confidentially. It will, of course, be Attached is a suggested schedule for col- lecting the information relaested. Mr. Frederic 1. Curtiss #3 June .,, 1930. ..nother factor which affects the banking situation in many oommunities is the change which has cy=rred in methods of histrioution, especially the chain store, the chain restaurant and the chain servile station. Perhaps the bankers from whom you request the above information would indicate roughly the extent to which they have been affectea by this and similar developments. Very truly yours, Chairman, Committee on Branch, Group and Chain Banking. t1 - I FEDERAL RESERVE BANK OF BOSTON W. P. G. WILLIAM WILLIAM KRICKEL FREDERM HARD! NG, GOVERNOR W. PADDOCK, DEPUTY GOVERNOR WILL ETT, CASHIER K. CARRICK, SECRETARY H CURTISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS CHARLES F. GETTEMY ELLIS G HULT ERNEST M. LEAVITT L. WALLACE SWEETSER ASSISTANT FEDERAL RESERVE AGENT May 23, 1930 Mr. E. M. McClelland, Assistant Secretary, Federal Reserve Board, Washington, D. G. Dear Yr. McClelland: Please accept my thanks ir sending me so promptly the copies of the published parts of the hearings before the Committee on Banking and Currency for which I asked you in my letter of 'ay 17. I appreciate your courtesy not only in sending them but also in your offering to send me additional parts of the hearings as they become available. Very truly yours, Secretary. ,/ •,t A !lay 19, 19!!0 Der "r• Oarrie1.1 Referring !:c your lotiAtr.ot I take plenenre in enZi; herewith, flr Your use, n rierr.• doWl of pprts 1 to 10 of he Hear* in:;$ before the Ilorv.ittee on Sanking and curronsy of the 1:4,113e of Representatives, on the subject of Group, Chain and Bran,* Bankisso Am addition.i. al parts of the Hearings beeps's swallablas 1 will see that copies are sent to you. .!ory truly yiurs„ E. M. McClelland, Assistant Secretary Mr. K. K. Carrick, Secretary, Federal User's Banks Beaton, MuSe• FEDERAL RESERVE BANK OF BOSTON FREDERIC G HARDING. GOVERNOR W WILLIAM W. PADDOCK, DEPUTY GovEranort WILLIAM WI L LETT, CASHIER KRICKEL K. CARRICK, SECRETARY H. CUF2TISS CHAIRMAN OF THE BOARD AND FEDERAL RESERVE AGENT 11 ALLEN HOLLIS DEPUTY CHAIRMAN OF THE BOARD ASSISTANT CASHIERS ELLiS G. H LILT ERNEST M. LEAVITT L. WALLACE SWEETSER CHARLES F. GETTEMY ASSISTANT FEDERAL RESERVE AGENT May 17, 1930 Mr. E. M. McClelland, Assistant Secretary, Federal Reserve Board, Washington, D. C. Dear Mr. McClelland: Could you obtain and send to me the published record of the hearings by the Banking and Currency Committee of the House of nepresentatives on the subject of Group and Branch Banking? What I have seen consists of ten separate pamphlets containing parts No. 1 to 10 inclusive. I would like to obtain copies for my office and if you could send them to me your courtesy would be greatly appreciated. Very truly yours, Secretary. A amoleoll • • TELEGRAM FEDERAL RESERVE SYSTEM (LEASED WIRE SERVICE) RECEIVED AT WASHINGTON, D. C. 185bfa l'oston Apr 24 4pJ Youn - Washn Change boards cormittee on branch chain and group banking bank comittee meets our approval Paddock 420pri P.1110 , ...01W1MMINOWIRCWIIMA 2--11001 to S FEDERAL RESERVE BANK OF BOSTON W. PG. HARDING GOVERNOR March 22, 1930 Mr. J. C. Noell, Assistant Secretary, Federal Reserve Board, ashington, D. C. Dear Mr. Noell: Governor Harding wishes me to acknowledge you very much for sending him a copy thank and receipt of Part 2 of Volume 1 of the Hearings before the Conittee on Banking and Currency of the House of Aepresentatives on Branch, Chain and Group Banking. Very truly yours, Harding. ov. toV Sec etary c'e"%c .47 r March 20, 1930. Dear Mr. Harding: )'or your information I am enclosing herewith a copy of Part 2 of Volume 1 of the Hearings before the Committee on Ranking and Currency of the HOU30 of Representatives on Brand:, Chaia and Group Balking, H. R. No. 141. Very truly yours, J. C. Noell, Assistant Secretary. Kr. W. P. G. Harding. Governor, ?adored Rosary's 10164 Boston, Ilassachosotts. 'nclosure. Mirth 20$ 1930. Dear Mr. Curtiss: lor your information I am snilosing herewith a copy of Part 2 of Volume 1 of the Bearings before the Gammittee on Banking and Currency of the House of Representatives on Drandh, Chain and Group Banking, H. R. No. 141. Very truly your c, As J. C. Noell, Searetary. Mr. Prederie U. Curtiss, Chairman, Mead Reserve Bank, Reston, Maseadhusetts. tas1mmar4). FEDERAL RESERVE BANK LI OF BOSTON W. E. G. HARDING GO, ,ERNO. March 12, 1930 Mr. J. C. Noell, Asst. Secretary, Federal Reserve Board, Washington, D. C. Dear Mr. Noell: I have received your letter o and wish to thank you for sen ivg me a copy of the hearings held on February 25, 26 and 27, before the Committee on Banking and Currency of the House of Representatives, on Branch, Chain and Group Banking. Very truly yours, 74_ t--6-fri Governor. / March 10, 1930. Dear mr. Salasit Enclosed herewith for your information is a copy of the hearings held on February 25, 26 and 27, before the Committee on 3anking and Currency of the House of Representatives, on Branch, Chain and Grump Backing. Very truly yours, J. C. leen, Assistes$ Sesretary. Mr. T. P. G. Harding, Governor, Federal Reserve Bank, Boston, Mass. Enclosure: :larch 10, 1930. Dear 2r. Curtiss: Bnclosed herewith for your information is a co-)y of the hearings held on February 25. 26 and 27 be, the Committee on Banking and Currency oi the Rouse of '?epresentatives on Branch. Chain, and Group Bankiag. Very truly yours, J. C. Noell, Assistant Secretary. 'fr. Frederic I. Curtiss, Chairman, Federal Reserve Bask, Boston, Wes. Inaclosures
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