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Federal Reserve Bank of St. Louis
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PAPERS FROM THIS FILE
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Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
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September 5, 1933
Dr. F. A. Goldenweiser, Chairman
Committee on Branch, Group and Chain Banking
Federal Reserve Board
Washington, D. C.
Dear Dr. Goldenweiser:
Upon returning from my vacation, I find your
letter of August 8 regarding the desirability of printing the
report of the Federal Reserve Committee on Branch, Group, and
n Banking.
In view of the time and effort spent in the prepara—
tion of this report and also the large expenditures required in
its preparation, it seems to me that the report should be preserved
in proper form and, because it is so voluminous, that it should be
printed, which would make it convenient to use for those interested
in it. Such additional expense would not be a large item as com—
pared with the expenditure which has already been made in the
preparation of the report.
With kind regards, I am
Very truly yours,
C.'11. McKay,
Deputy Govern .
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE STREET
August 10, 1933.
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Mr. E. A. Goldenweiser, Chairman,
Committee on Branch, Group, and Chain Banking,
Federal Reserve Board,
Washington, D. C.
My dear Mr. Goldenweiser:
In Governor McDougal's absence, I am pleased to
acknowledge receipt of your letter of August Sitind the various
reports which you forwarded under separate cover.
As requested, I am returning herewith the Summary
Report of the Committee on Branch, Group, and Chain Banking which
was distributed at the Governors' Conference last fall, and shall
advise you at a later date with respect to our opinion as to the
desirability of printing the reports of the Committee.
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Federal Reserve Bank of St. Louis
Thanking you, I am
Very trjy your
Deputy Governor.
<j
August 8, 1963
Governor J. B. MODougal
Federal Reserve Dank
Chicago, Illinois
My dear Governor McDougal:
I take pleasure in sending you under separate *over oopies
of the reports of the Federal Reserve Committee on Branch, Group,
and Chain Banking, which the Governors expressed a desire to see
with the view to passing or the desirability of printing them.
The various reports, which are being transmitted, inoludel
(1) Branch Banking in the United States; (2) Branch Banking in
California; (3) Branch Banking in hngland; (4) Drama Banking
in Canada; (6) Banking Groups and Chains; (6) Changes in the
Number and Sise of Banks in the United States, 1634-1931; (7)
Bank Suspensions in the United States, 1692-1931; (8) 224, Bank
Suspensions, Case Histories from Examiners' Reports; (9) Banking Profits, 1690-1931; (10) Dual Banking System in the United
States. I am also sending you a revised Summary of the 1-oports
and, as our supply of charts is limiteu, I shall be glad if you
can conveniently return the copy of the earlier Summary which
was distributed at the Governors' Conference last autumn.
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Federal Reserve Bank of St. Louis
Very truly yours,
E. A. Goldenweiser
Chairman, Committee on Branch,
Group, and Chain Banking.
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FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH LA SALLE STREET
September
Thirty
19 32
OFFICE OF THE
CHAIRMAN OF THE BOARD AND
FEDERAL RESERVE AGENT
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Federal Reserve Bank of St. Louis
Attention : Mr. E. A. Goldenweiser, Chairman
Committee on Branch, Group, and
Chain Banking.
Dear Yr. Goldenweiser:
I am enclosing the aTpary of important
changes from 1914 to 1932, in Wisconsin state laws
This completes
relating to banks and trust companies.
these slImmaries for the states whose capitals are in
the Seventh Federal Reserve district.
Very
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FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE STREET
September
Twenty-nine
1 9 32
OFFICE OF THE
--
CHAIRMAN OF THE BOARD AND
FEDERAL RESERVE AGENT
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Federal Reserve Bank of St. Louis
&,IVISIuh0FR
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Federal Reserve Board
'.:ashington, D. C.
Attention : NY. E. A. Goldenweiser, Chairman
Committee on Branch, Group, and
Chain Banking.
Dear /fr. Goldenweiser:
We received today from the Eichi an .State
the summary of importan changes
Department,
Banking
laws of that state relating to banks
in
1932
from 1914 to
companies.
I am sending yau this report.
and trust
We shall complete Wisconsin today, and
hope to be able to forward it to you tomorrow or Saturday.
Very Offfours,
i;
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rderal Reserve Agent
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FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE STREET
September
Twenty-seven
1 9 3 2
OFFICE OF THE
CHAIRMAN OF THE BOARD AND
FEDERAL RESERVE AGENT
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Federal Reserve Bank of St. Louis
Federal Reserve Board
Washington, D. C.
Attention : MT. E. A. Goldenweiser, Chairman
Committee on Branch, Group, and
Chain Banking.
Dear Mr. Goldenweiser:
I am enclosing summary of important
charwes from 1914 to 1932, in IpLialao, state banking
laws, as requested by the Committee.
You will note that under items 5-a,
6—a, and 9, "New provision" only. is given, inasmuch as
we have been unable to locate any former provision regarding these particular phases of Indiana banking laws.
Very trul
eral Reserve Agent
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FEDERAL RESERVE BANK OF CHICAGOkcro(* .,
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September
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OFFICE OF THE
CHAIRMAN OF THE BOARD AND
FEDERAL RESERVE AGENT
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Federal Reserve Bank of St. Louis
Federal Reserve Board
Washington, D. C.
Attention : Mr. E. A. Goldenweiser, Chairman
Committee on Branch, Group, and
Chain Banking.
Dear Yr. Goldenweiser:
I am enclosing the summary of important
changes from 191h to 1932 in Iowa state laws relating to
banks and trust companies. ----State Banking Commissioner Reichert of
Fichigan assures me that the material for that state will
be forthcoadng very shortly, and the information covering
Wisconsin and Indiana is being compiled here, as indicated
in my letter to you of September 14.
Very
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doOrderal Reserve Agent
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230 SOUTH
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cSeptember14, 1932
OFFICE OF THE
CHAIRMAN OF THE BOARD AND
FEDERAL_ RESERVE AGENT
Federal Reserve Board
Washington, D. C.
Mr. E. A. Goldenweiser
Gentlemen:
Replying to yours of the twelfthI\ relative to the questionnaire on changes in state banking laws, in Mr. Pett/s absence for a
few c:ays, I have to report that we forwarded to you the information
on the State of Illinois on August 26. The information on Iowa is
just being completed, but is being held for Mr. Pettls personal review
on his return the first of next week. The Michigan situation we are
working out through the State Banking Commissioner there and are again
taking the matter up with him to see if we cannot speed up his report.
In Wisconsin and Indiana we are working out the situation through our
own review of the statutes. I hope very much that we will have most
of this information to you shortly after the first of next week.
You will realize that the state banking departments are
exceedingly busy and it is a little difficult for us to press them
too hard at this time, but we are doing the
we can.
Very
urs,
ederal Reserve Agent
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
September 12, 1932
Mr. Eugene U. zAevens
Federal Reserve Agent
Federal Reserve Sank
Chicago, Illinois
Dear Lir. ...tevons:
On July 9thOwe tent you a rluestionnaire .legardini7 the
changes in 'State banking la's, and requested that you secure for
us, if )ossible, this information for the States in your district.
Vie realize that it is not easy to secure information of this nature from the overworked State banking departments. However, we
are now trying to finish this report and should appreciate it
very much if you could expedite the preparation of this material
for those states which have not yet supplied it.
Very truly yourw,
Goldenweiser
E.
Chair;Ian, Committee on Branch,
Group and Chain Banking.
FEDERAL RESERVE BANK OF CHICAGO
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Federal Reserve Bank of St. Louis
230 SOUTH
LA SALLE
STREET
August
Twenty—six
1 932
Federal Reserve Board
Washington, D. C.
Attention : Er. E.A. Goldenweiser, Chairman
Committee on Branch, Group, and
Chain Banking.
Dear Er. Goldenweiser:
Mr. Stevens has asked me to send you the
enclosed material which we have just received from the
Illinois Bankers Association, setting forth the important
changes from 1914 to 1932 in Illinois laws relating to
banks and trust companies.
The material for the other states is in
process of compilation and will be forwarded to the Committee airsoon as possible.
Very truly y
Manager
H. G. Pet
Division of Research and Statistics
HGP:FB
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Federal Reserve Bank of St. Louis
il r
, 1932
Mr. H. G. Pett, Manager
Division of esearch and lAatistics
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Pett:
In accordance with the request contained in your
letter of July 21st we are enclosing for your use ten additional copies of the form for listing changes in
tate legis-
lation since 1914.
Very truly yours,
J. H. Riddle
Sedretary, Committee on Branch,
Group and Chain Banking.
//
.,
FEDERAL RESERVE BANK OF CH ICA
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Federal Reserve Bank of St. Louis
230 SOUTH
LA SALLE
STREET
July
Twenty-one
19 32
Federal Reserve Board
Washington, D. C.
Attention : Mr. E. A. Goldenweiser, Chairman
Committee on Branch, Group, and
Chain Banking.
Dear Mr. Goldenweiser:
In connection with the work of tracing
through important changes in state legislation in the
five states including this district, which Mr. Stevens
has turned over to me, I find that it will facilitate
our work if the Committee will kindly supply us with
about ten additional sets of the forms enclosed in
your letter of July 9 to Mr. Stevens.
Very truly y
H. G. Pett, Manager
Division of Research and Statistics
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FEDERAL RESERVE BANK OF CHICAGO
30 SOUTH
OFFICE OF THE
CHAIRMAN OF THE BOARD AND
LA SALLE. STREET
July
Eleven
1) 32
FEDERAL RESERVE AGENT
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Federal Reserve Board
Washington, D.C.
Attention: Mr. E. A. Golienweiser, Chairman
Committee on Branch, Group, and
Chain Banking.
Dear MY. Goldenweiser:
, I am writing to ackrowledge your letter
of July 9 and the accompanying forms on which you
desire summaries of important changes in State
legislation regarding banks and trast companies
since 1914.
I shall endeavor to have this information assembled for you and forwarded at the earliest
possible date.
HGPsG
I Reserve Agent
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July 9, 1932
Mr. Ugene M. Stevens
Federal Reserve Agent
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Stevens:
The Federal Reserve Committee on Branch, Group and Chain
Banking is very anxious to obtain a summary of the important change
in State legislation regarding banks and trust companies since the
inauguration of the Federal Reserve System. This is for use in a
study of the effects upon our banking structure of competition between various classes of banking institutions.
For some phases of banking legislation (e.g., reserve requirements and the operation of branches) our information is alre;41y
fairly complete. In other resrects, however, it is inadequate, and
we should like to ask your assistance in filling in these deficiencies.
The enclosed mimeogra4lhed forms outline specifically the
information desired. Would you be able to obtain for us this information from the 'banking departments of the States whose capitals lie
within your district, or from your legal department? It is not necessary that we have all the details of every la bearing upon the points
enumerated. We want to know what changes have occurred sine 1914
which have a significant bearing upon the operqtions of banking institutions and upon the types of assets held by banks.
Very truly your?,
E. A. Goldenweiser
Chairman, Committee on Branch,
Group and Chain Banking.
Enc.
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Federal Reserve Bank of St. Louis
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FEDERAL RESERVE BANK OF CHICAGO cC1/4
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230 SOUTH LA SALLE STREET
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Federal Reserve Bank of St. Louis
June
Thirteen
19 32
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414
4.
Federal Reserve Board
Washington, D. C.
Attention : Mr. E. A. Goldenweiser, Chairman
Committee on Branch, Group, and
Chain Banking.
Dear Mr. Goldenweiser:
I am writing to acknowledge your letter
of June lOasking that we obtain from the State Banking
Departments of Indiana, Iowa, Michigan, and Wisconsin information relating to the basis used for the classification of State banking institutions into commercial banks
and loan and trust companies, in the abstracts of statements of condition supplied by the several departments
to the Comotroller of the Currency.
Vie are asking the
banking commissioners in the four states named for statements covering this matter, which will be forwarded to you
as soon as received.
Very 4.5411P
/dent]. Reserve Agent
HGP:FS
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Federal Reserve Bank of St. Louis
dune 10, 1932
Mr. Euqene • 6tevens
Federal eserve ,gent
Federal eservo 3ank
Chicago, Illinois
Dear Mr. 6tevenb:
The Committee on 3ranch, Group and Chain Banking
wishes to know the basis of the classification, in the reports of the Comptroller of the Currency, of :Aate bhnking
institutions into ,Jate Oommercial) banks on the one :lane
and loan and trust companies on the other. The office of
the Comptroller informs us that this classification is made
by the respective banking departments when the figures are
reported to him.
Could you, therefore, find out from the banking
departments of the following Jtates, the basis for the distinction between comm(,rcial b:Inks %nci loan and trust companies?
Indiana
Iowa
Michigan
Wisconsin
Very truly yours,
a. A. Goldenveiser
Chairman, Committee on Branch,
Group and Chain Banking
I/2 I. II:
••
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FEDERAL RESERVE BANK OF CHICAGO
230 30UTH
June
Seven
19 32
OFFICE OF THE
FEDERAL RESERVE AGENT
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Federal Reserve Bank of St. Louis
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CHAIRMAN OF THE BOARD AND
Federal Reserve Board
gashington, D. C.
Attention : MX. E. A. Goldenweiser, Chairman
Committee on Branch, Group,and
Chain Banking.
Dear Mx. Goldenweiser:
‘I am asking the banks listed in your
letter of June 4,)for a statement regarding the reasons
a
or considerations which prompted them to convert from
reThese
state to a national charter or vice versa.
plies will be forwarded to you as soon as we receive
them.
Very
4*our3
1711
eral Reserve Agent
HGP:FB
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LA SALLE STREET-
4.
June 4, 1932
Stevens
Mr. Eugene
Federal Reserve Agent
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Stevens:
In recent years there have been wany changes
among banking institutions from national charter to State charter
and vice versa. These changes have occurred through both conversions and consolidations. The C .mgAttee 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 changes.
We are enclosin07, herewith a selected list of thesis
conversions and consolidations in your district, anA should appreciate it if you will addresi an inquiry to each institution asking
for a stateent of the reasons or considerations which -romptei them
to convert from one charter to the other, or, in the case of consolidations, Aly one charter was chosen in T•reference to the other for
the continuing institaltion. If we can secure from those institutions
frank and adeauate replies to this peation, it will 1o7'bt1es1 shed
much light on the competitive factors between the two banking systems.
While we exi.ect to tabulate and coment on the general results of the
replies received, the answers of the individual banks will be held in
strictest confidence and, of course, no banks will be mentioned in our
report, or designated in such ,,anner as to be recognized.
We are subwitting this question to nearly one hundred
banks in the various diatricts in order to secure a fair sample for
the country as a whole.
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Federal Reserve Bank of St. Louis
Very truly yours,
F. A. Goldenweiser
Chair;an, Committee on Branch
Group and Chain Banking.
2istrisk : • 7
Convorsions iron, 3tete to Netional Charters
Chicago, lU. 1929
Peoples 3toc17-ere .1tate Bank - T-eoples Vetionel Bank ard Tr-.)st Co.
Chico, Ill. 1928
3traus Trust Co. - 3trens llatiortel Bark an
Trust Cc.
Conversions from National to State Oharters
Consolidations ihere,Uational Charter was Adopted
Detroit, Mich. 1929
Griswold iirst :Auto LaLk (39t
National Bank of Corse (44)
) National Lola-. o: Con iE,ree
t tonal Bank
) (Later - C,trii
of Corrvirco)
Detroit, Mic. 1931
Guardian Detroit Bank (106)
Nat tonal Bank of Commerce (64)
) Guardian Natior..L.:1
) urns of Lotr.)it
Detroit, *Ica. 1931
Peoples 'Syne °minty :Bank (376)
First National Bank (142)
)
, First 11a7ne National Bank
1
of Com-
Consolidations where atate Onzrter was Adopted
Chloaco, I11. 1929
Continental National Bank and Trust Co. (491)
Illinois Merchants Trast :o. (656)
Santh Bend, Ind. 1931
First National Bank (6)
Indiana Trust Co. (1)
Contia:31,tal Illinois Bank
an- Trost Co.
Indiana Trust OS.
• 1111Mbers in
1)arint1iemos ILAcato approximate loans al0. tvostmonts
In millions of dollars.
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Federal Reserve Bank of St. Louis
AM EARNINGS
Material
THE SEVENTH FEDERAL RESERVE DISTRICT.
used:
Several analyses have been made by states of the statements of
banks in the seventh reserve district, both member and non-member.
Iowa
Nor
the atudy included national and state incorporated banks for the years
1924•7; in Illinois
the same type banks were used but for the year 1928; ii.
India*, all national, state, private, trust and mutual savings banks were
covered during igm and jitaummita banks were all national and state institutions in that part of the state included in the seventh district in 1927.
Some of the data was talon from questionnaires and some from call reports.
It was thought that a study
of this data already compiled might
throw some light on the fluctuations of bank earnings between banks of various sizes and between banks of various states.
As 3 states, Iowa. Indiana
and Wisconsin, had ratios for 1927 this year was used.
in 1928 was included in the comparison.
/n some oases Illinoil
The banks were distributed according
to size of earning assets.
MeaY/Is by size of beak;
As a result of them, analyses osrtain generalisations may be made
about the effect of else on earning caoacity of banks.
,,,.aay of these conclu-
sions reiterate and support prevalent concepts.
The larger the bank, from the standpoint of total loans and investments, the greater the net additions to profits measured in terms of capital
funds.
This rule held for banks having e-).rning assets up to $5,000.000; the
larger banks' received diminishing returns.
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Federal Reserve Bank of St. Louis
The upward trend in profits was
2.
due both to an increase in net earninge and to a considerable decrease ir
The improvement in net earning', in turn, was attributable to a
lor;ses.
decrease in expense* rather than en increase in gross srzninge.
Gross earn-
ings from other sources than interest and discount 'hoped a rather irregular
movement in terms of size of loans and investments, daereasiag for some
states, increasing for others.
interest and discount received.
The dominant factor in earnings was the
This source of income, given as a percentage
of loans and investments, decreased in each state as the size of the banks
increased, making gross earnings smaller as the banks increased in site.
Ummisteg the factors bringing about declining expenses, it was
found that salaries tate up a smeller percentage of earning assets as the
banks grow larger.
ler for
,
s
4A41
In 2 states the interest paid on deposits masst
the larger banks.
This paring of expenses more than compensates for the earn-
ing loss accruing to the larger institutions and leaves them with the largest
proportion of net income to earning assets.
AgiaLydp
by states:
These are the tendencies to be found in all states, but the average
site of the earnings items and their range vary from state to state.
Before
going on to compare these states with each other it might be well to note te
banking facilities of the states, their allocation by site and the =Mbar of
failure*.
Illinois has the most beaks, but Iowa has the most banks per in-
habitants; Wisconsin has the fewest.
The greatest number of bank failures.)
and correspondingly, the greatest banking losses occurred in Iowa.
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Federal Reserve Bank of St. Louis
3.
'Umber
of
Wanks
7
Number of Iguriber
NuMber of
inhabitants of
banks in
per bank failures
Chains
1.317
710
928
,
Iowa.
Wisconsin.
Indiana
Illinois
loos 11
183
411
339
409
,
75
14
25
21
90
33
10
85
Beecarees per
bank in chat:
900
7.800
3.900
12,0D0
1,/ 1928.
In each state the largest number -- around 20 per cent of the banks-have
tag assets of between 8250.000 and t510.000.
As the earning assets increase or
decrease from that point the number of banks in each sized Class decline.
The
percentage distribution of banks by site is very sinlinr for sal the states.
Iowa and Illinois have the greatest nusber of chains, and teal% in the chains.
Average resources per bank in a chain is smallest for Iowa and largest for
Illinois.
Bank profits vary considerably from state to state.
The highest ratio
of net additions to profits as percentage of capital funds in these states is
to be found in Wisconsin, where the figure for all sited banks is 9.40. This
comnares with 6.92 for Indiana, about the sem for Illinois in 1928. and 0.76
for
:;_01V/R4,
The range frmm small to large banks varies from eper cent to 13
a
per centrl depending on the state.
The poor shoving of Iowa banks is due to
'Danis of all sites; every group of banks having less than
assets showed a deficit and all larger institutions
of their capital funds.
In Wisconsin and Indians
$50000'
in earning
s less than 5 per cent
he of earning assets
over 85,000.000 do not make quits as good a showings* those having between
82000.000 to 1'5.000.000 IA earning assets; Illinois' banks, show steady
prosument as the banks increase in size.
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Federal Reserve Bank of St. Louis
4.
Correspondingly, lessee were heaviest for the Iowa banks: net losses
as a percentage of gross earnings amounted to 16.34 per cent While Wisconsin
and Indiana had only 6.94 and 6.94respective1y and Illinois about the same.
The range Avls greatest for the Is
teaks too, as the smallest banks suffered
sfitaseet 4 times the loss of the largest. Per the other states it was ereeed
3 times the small banks/ratio.
It is these heavy losses whiCh pull the net additions to profits .....
Iota banks so out of line, for When gross earnings are oompared with earning
asRets, the ratios for all sites of banks in all of the several states are
very close al-theregh• Iowa even leads,a little.
The airaTge figure for Iowa
is 6.65, for Wisconsin, 6.29 and for Indiana 7.07.
Illinois shows the small-
est differential between large and smell institution (0.3$ per vent as against
2.51 per cent, 1.50 per cent, and 0.88 per cent for Iola, Wisconsin and Indiana).
Apalysis bs, Years:
The Iowa study is the only analysis Which wovens a period of years
(19244) and is, therefore, the only one which may be used both to test
typicalness of 1927 and to show the trend in banking practice.
In this state
net additions to profits in 1927 were but slightly larger than in 1924, interrupting the upward trend of 1925 and 1926.
Measured in terms of capital
funds, net profits for all Iowa blanIcn were 0.54 per cent in 1924; 1.03 per
cent in 1925; 1.63 per cent in 1926; and 0.76 per cent in 1927.
The improve-
ment during the eholo period was due to the better showing of banks of over
500,000 -- $750.000 in earning assets.
The smaller institutions Showed
even greater deficits during these supposedly more prosperous years.
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Federal Reserve Bank of St. Louis
5.
The increase in profits for the banks as a Whole was due to a
parallel movement in net earnings.
Net earnings increased in 1925 and
1926 and then lost ground in 1927 although remaining above 1924.
Losses
were exceptionally heavy in 1927; they had been diminishing successively
in 1925 and 1926, but in the following year were the largest for the
period under survey.
Increasing net earnings, in turn, were based on
declining expenses in banks of every
size.
All except the vary small
banks with lels than $75,000 earning assets were paying slightly lower
Interest from year to year.
The percentage allocated to salaries was
fairly constant.
1,
This saving on expenses was sufficient to more than compensate
for a falling off of gross earnings.
Part of the smaller gross earnings
was attributable to the smaller income from interet and discount which
was felt by all sized banks.
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
larch 30, 1932
Ir. Eugene M. Stevens
Federal Reserve Agent
Federal Reserve Sank
Chicago, Illinois
Dear
r. Stevens:
A, have your letter of larch 2Z-411 in whiah you
indicate that the discrfpancy between the earnings figures
for our study and those reported by the Comptroller for the
year 1929 arises out of your omission of the Continental
National Bank.
We concur in your jud4nent with respect to the omission of this national bank since it was essentially a liquidating corporation after the Alarger in early 1929 resulting
in the Continental Illinois Bank and Trust Company. Earnings ratios of the Continen01 National would not have been
typical of an active bank. -A do not believe that any further
checking of your figures is required at this time.
Very truly yours,
J. H. Riddle
Secretary, Committee on 3ranch,
Group and Chain Banking.
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
OFFICE OF THE
LA SALLE STREET
/Larch
Twenty-five
1 9 3 2
CHAIRMAN OF THE BOARD AND
FEDERAL RESERVE AGENT
Federal Reserve Board
Washington, D. C.
Attention : Nr. E. A. Goldenweiser, Chairman,
Committee on Branch, Group, and
Chain Banking.
Dear Yr. Goldenweiser:
I have asked Er. Pett to look into the discrepancy between
the figures submitted to you with our letter of March 18\showing net
additions to profits of national banks in this district in 1929, and
those set forth in the annual report of the Comptroller of the Currency.
The explanation undoubtedly lies in the fact that while the
Continental National Bank and Trust Company merged with the Illinois
Merchants Trust Company on March 18, 1929 under the name of the Continental Illinois Bank and Trust Company, a state institution, the charter of the Continental National Bank and Trust Company is still in existence, and therefore the Comptroller received and included in his
totals for that year for this district, an earnings report for each of
the six months' periods.
Copies of these reports I am enclosing. You
will note thereon that for the first six months of 1929, the Continental
National had net additions to profits of t10,315,152.68, and in the second six months $47,301.78.
In compliance with your instructions to the
effect that in cases where national banks merged with state banks under
a state charter we eliminate them from our compilations, we did not include the Continental National, though technically its charter was and
still is, in existence.
While the addition to our compilations of the
data for the Continental National would result in total net additions to
profits in excess of the Comptroller's published aggregate, this probably
can be explained by the fact that in a number of cases in each of the
years covered by this study, at the Committee's re,uest, we procured earnings figures of state banks which merged with national banks, thus bringinto our totals figures Which the Comptroller did not receive. This probably explains the difference cited for the year 1927 in the last paragraph
If you wish us to do so, we will be glad to make an exof your letter.
haustive check of all such cases in an attempt to reconcile our aggregates
I
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK OF CHICAGO
b
*•
-2-
•
with the Comptroller's, although we notice that the number of banks included in our study at no time agrees exactly with his as shown in his
annual reports.
The inclusion by the Comptroller of data for the Continental
National in his figures and their exclusion from ours, undoubtedly will
be apparent in other aggregates submitted by us in connection with this
study for the year 1929, when comparisons are made.
If you should decide that in view of the large difference resulting from this exclusion,
revisions should be made, we shall be very glad to comply with any request of such a nature you may wish to make.
PI ours,
Very t 41/
ral Reserve Agent
HGP:FB
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
.11
Form 2129
TREASURY DEPARTMENT
'TROLLER OF THE CURRENCY-Kt/lustiest
Revised May 21, 1923
Fed. Res. Dis. No. __,
Charter No. f1
'1 1
REPORT OF EARNINGS, EXPENSES AND DIVIDENDS OF
.1 , _ J.„_ .-4
..•
"Thb „a,,,I,
, • • • , 1.
7: :: 77:11
located at
for the period of six months
,19
Dividends declared
,payable
,
.42
.....eid.A4....1/..._ .7_,P.,.
19
ended ____
No. of Dividend .0
,"
,in the State of
.=‘X,......14..a--2
0
(This report must cover the full six-month period)
IMPORTANT.-A complete report,showing an the transactions In the profit and loss account during the preceding six-month period, mast be rendered on
this form to the Comptroller of the Currency semiannually, on June 30 and December 31, whether or not dividends are declared. Reports of dividends declared
between these dates must be rendered on speck! Form No.2133(whkh will be furnished upon request) within ten days after date of declaration. (See Section
5214 U.S. R. S.) Note: Penalty prescribed by Section 5213. U.S. R. S.
(Dividends declared not more than ten days prior to June 30 and December 31, however, need not he reported on Form 2133, as reports thereof will be accepted as coming
within the ten-day limit when shown in the regular semiannual report of earnings, expenses and dividends, Form 2129; but the dates of declaration and payment of each dividend,
whether or not reported on Form 2133, must be entered in the heading of the semiannual report.)
2..Q.P
$ -4
Capital stock paid in
(Where no figures are entered insert word "none.")
Total surplus fund (same as item 19)
20_Q
Dividends declared since last report
PLEASE SEE THAT EACH SECTION BALANCES
SECTION ONE-EARNINGS AND EXPENSES, EXCLUSIVE OF LOSSES
SzerioN 1 deals wi h the earnings, exclusive of recoveries on charged-011 items, and also with expenses, exclusive of 10856S, paid during the 6-month
only. No part of previously repents! profits or ex
i
rises
((ba)) Isnatlpal.:earl.i:
2. Expenses
ndwages.
Salaries anda,
discount
(c)
10-1- - 1 1
(g) Other expenses.
el_
._k_ig __V__
‘
tionntcharges_. .
lece
eig
colm
xc
alart
Doorm
)F
eeap
egd
(ed)
esntiecxoeh
ahnagn
_t_a
/3 of
time
(f) Taxes.
(f) Commissions and earnings from insurance premiums and the negotiation of real estate loans, authorized by the act of September
7, 1916, in towns of 5,000 population or leu
r
(g) Trust Department
3. Net earnings since last report.
VO.
0
___.3.47_6_4_ c_-..G. 1_1_
____l_t_tt-___LI. _.i._
(c) Interest on balances with other banks
((ed)) Interest onn emmeadeposits.nd deposits.
.1....3
.54.1 6
).. _1Y..
.Lie..
$
discount on loans
(b) Interest (including dividends) on investments
on borrowed money.
Interest on bank deposits.
Interest
period covered by this report
id should be included in this seal
4 .k _'
rcaTI-enatertirelsritgsand
!fli..0_ -i -1).311 ipti_1_0_
"
__4J.
.f
........I
.....it 011_1.
o
(Difference between totals of items 1 and 2; if a loss,
enter in red.)
(h) Pro ts on se uri ies s
‘
,
___
0
.
(i) Other earnings
(Please see that item 1 of section 1 agrees with the total
of items 2and 3.)
__ _ a...2Z i
'
$ _l_i_l_
TOTAL
TOTAL.
_
:
OJZ._ 1
EQUIPMENT
AND
HOUSE
BANKING
CLAIMS,
SECTI•N TWO-LOSSES, AND RECOVERIES ON CHARGED OFF DEBTS,
SECTION 2 deals with
s--
losses and depreciation charged of and recoveries on charged-off debts and claims during the 6-month period covered by this report only.
5. Losses and depreciation charged off since
last report:
(a) On loans and discounts.
_
L.02!1 162.if_ .7_
ta J-&-.1 -1Jf -
4.
(h) On bonds, securities, etc.
i
p
p, .7
i
Recoveries
0
- _II_
Y___ ..o.
ttl
D).
on charged-off assets since last
banking house, furniture and
fixtures.
(d) On foreign exchange.
report
(a) Loans and discounts
_
.6.-Y°
(b) Bonds, securities, etc
_ '..
se
(e)
(c) All other
(c) On
Y6 -3-IL
3. Net earnings since last report (must be
same as item 3 of section 1; If a loss,
$ _i
enter in red)
Other losses.
6
°11
t-.
6. Net addition to profits from operations
9A
since Last report (difference between the total of
items 3 and 4 and item 5, 11 a loss, enter in red.)
$ 4.0 "of LI d.._I L_.1._ TOTAL.
A
$
TOTAL __
:4451101,17.111413-066:11110):3:to mwtordimelausamm aes66-0)k WOAD •
_kg_
Or
ifI 1 I
1
I
: 1 oc) ,
-1-, --- i
Mill.111131611KOMIll'S
previous periods (item 15 of preceding report); and CA
SECTIONS deals with the net profits (or loss) of current 6-month period (item 6) and the undivided profits (or loss), if any, of
Rion of such amounts.
...mounts obtain durin current 6-month lied as in jested by items 8 9 10 and 11 and the ells
6. Net addition to profits from operations
12. Carried to surplus fund since last
since last report(must be same as item 6 of i _ z ,- ,.report.
$ -1-12- Z-/-,- 21-section 2; If a loss, enter in red)
since
last
13.
paid
actually
Total
dividends
_i_faC.09..01
7. Undivided profits or loss shown in item
report.
2
[7..7
l
ei
.0
(Ira loss,enter In red)------6
15 of last report
:t re
_312..,17_ 14. Gross amount seside n e :
ii,, 11 8a. Amount withdrawn from surplus since
as reserved forkAtclhea" , llast report
15. Amount of net profits undivided or i oss
to be carried forward to item 7 of next
8b. Gross amount withdrawn from reserve
report. (If a loss, enter in red.)
accounts since last report
(This amount must agree with difference between
9. Authorized reduction of capital, not retotal of items 12, 13, and 14, and the total
paid to shareholders since last report_
8 • an...zi....
S. 7,,,,
it of items
x
assessment for impaired capital
el , to. Paid
0
7 /,liw
since last report
,
to surplus or
contributions
Voluntary
,
11.
/'
'
'
/
._k./.
--i-01
profits since last report
'
• i '.'
Pi
_,. _____
3_1_e_o_..6_ .0_
.
7.61_6..7 p2
_.2.1f_00_
if
i'7 '"o( 76
T(rr \L
___3 TOTAL.
AND DISPOSITION OF PROFITS
ORGANIZATION,
SINCE
ACCOUNT
PROFIT
TO
CREDITS
=TOTAL
fund, dividends, special rii,lve
simmer;4 deals with the total credits to profit account
surplus
from all sources since organization of bank, and their distribution into
,
____ 6112.0.
9
o_cm)
if'7 7 Y7.30
__
3
16. Total net profits as National Bank since
organization. (Add item 6 of this report to item 16 of preceding report)_$ 4 .iii
Total dividends pltid since or:aniza17. Profits and surplus of old organization at
/
/
... i / __
':, ,. -' .,'J'
date of conversion to national system__
4*44,!*
" -0,,, 8. Total obtained by reduction of capital
or
-se v
e /sm. ,
not repaid to shareholders, by assess(aggregate of all reserve balances).
ment on shareholders and by voluntary
22. Amount of net profits undivided or loss
contributions (since organization)
(same as item 15; if a loss, enter in
(Add items 0,10 and 11 of this report, to item 18 of
red).
preceding report.)
19. Total surplus fund at date of this report.
t_
TOTAL
TAL.
$
ILL 2.2
Q
- ..J9
PLEASE SEE THAT EACH SECTION BALANCES
,of the above-named bank, do solemnly swear that
. -1"9
44
,
14,1i
- /
4
J
(basident-OrCashier)
the forefoingyatement is true, to the best of my knowledge and belief.
I, G' e_4_
(Rawness or Cashier)
State of
ee.77-io
County of
Sworn to and subscribed before me this
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
/19
day of
Notary Public.
3--81116
,MISSION EXPlitt
NOV. 19, 1929
Or•.111111.1 /SOME.MIMI
Form. 2129
TREASURY DEPARTMENT
COMPTROLLER OF THE CURRENCY—Statistical
Revised May 21, 1928
Fen, Res. Dis. No. __
No. of Dividend
REPORT OF EARNINGS, EXPENSES AND D DENDS OF
Chgrter, No,
a
located at-----in the State of
_____for the period of six months
(This repoit must cover the full six-month period)
,191. _Dividends declared
,payable
,19
ended
,19
IMPORTANT.—A complete report,showing all the transactions In the profit and loss account
during the preceding six-month period, must be rendered on
this form to the Comptroller of the Currency semiannually, on June 30 and December 31, whether or not dividends are declared. Reports of dividends
between these dates must be rendered on special Form No. 2133(which will be furnished upon request) within ten days after date of declaration. (See declared
Section
5213, U. S. R. S.) Nate: Penalty prescribed by Section 5213, U. S. R. S.
(Dividends declared not more than ten day:, prior to June 30 and Deceniber 31, however, need not be reported on Form 2133, as reports thereof will be accepted
as
coming
within the ten-day limit when shown in the regular semiannual report of earnings, expenses and dividends, Form 2129; but the dates of declaration and payment of each dividend,
whether or not reported on Form 2133, must be entered in the heading of the semiannual report.)
Capital stock paid in
(Where no figures are entered insert word "none.")
Sla
Total surplus fund (same as item 19)
Dividends declared
since last
c?.o.
report
PLEASE SEE THAT EACH SECTION BALANCES
SECTION ONE—EARNINGS AND EXPENSES, EXCLUSIVE OF LOSSES
ORETION 1 deals with the earnings, exclusive of recoveries on charged-off Items, and also with expenses, exclusive of losses, paid during the 6-month period covered by this report
only. No pert of prey otisly reported profits or expenses paid should he Included in this ww.tion.
2. Expenses paid:
1. Gross earnings:
$(a) Salaries and wages.
(a) Interest and discount on loans
$
(b) Interest and discount on borrowed money.
.(c) Interest on bank deposits.
_a
0
(b) Interest (including diridends) on inrestments
(c) Interest on boluses with other banks
(d) Interest on demand deposits.
(d) Domestic exchange and
(e) Interest on time deposits.
(e) Foreign exchange department
(I) Commissions and earnings from insurance premiums and the negotiation of real estate loans, authorized by the act of September
(f) Taxes.
(g)
Other
expenses.
0
collection charges
QI
7, 1916, in towns of 5,000 population or less
3. Net earnings since last report.
(Difference between totals of items 1 and 2; if a lass,
enter in red.)
(g) Trust Department
(h) Profits on securities sold
(t) Other earnings
$-------7iQJ.L7JL
(Please see that item 1 of section 1 agrees with the total
of items 2 and 3.)
•
g
TOTAL.
TOTAL
a_i
SECTION TWO—LOSSES, AND RECOVERIES ON CHARGED-OFF DEBTS, CLAIMS, BANKING HOUSE AND EQUIPMENT 4:1
SECTION 2 deals with losses and depreciation charged off and recoveries on charged-off debts and claims during the 6-month period covered by this re..rt on)'.
.
es and eglitentYtilreITErged off since
last report:
(a) On loans and discounts.
..._ 9 ...._, __—__.(b) On bonds, securities, etc.
___.....
(c) On banking house, furniture and
fixtures.
(d) On foreign exchange.
I
•
....
11.D. _
(e) Other losses.
3. Net earnings since last report (must be
same as item 3 of section 1; If a loss,
enter in red)
$
0
_kr],_cLi _2_1:
4. Recoveries on charged-off assets since last
report:
(a) Loans and discounts
_a
(b) Bonds, securities, etc
p
(c) All other ________________
Q
Of: 6. Net addition to profits from operations
.since last report (difference between the total of
items 3 and 4 and item 6; ft's lose, enter in red.)
.
______
.±t .)0
i.._ TOTAL.
$---...... _ 12.1
TOTAL
$
SECTION THREE—TOTAL CREDITS TO PROFIT ACCOUNT AND DISPOSITION OF PROFITS
Swermair 3 deeds with the net profits (or km)of current 6-month period (item 6) and the undivided profits (or loss), if any, of previous periods (item 15 o preceding report); and
amounts obtained during current 6-month ..riod as indicated by items 8, 9, 10, and 11, and the dls.. ition of such amounts.
'
12. Carried to surplus fund since last
report.
'
-- — 13. Total dividends actually paid since last
report.
14. Gross amount set aside since last report
as reserved for
•
_ f . 15. Amount of net profits undivided or loss
to be carried forward to item 7 of next
report. (If a loss, enter in red.)
•
__
__
(This amount must agree with difference between
total of items 12, 13, and 14, and the total of items
6, 7, 8 a and 6,9, 10, and 11.)
6. Net addition to profits from operations
since last report(must be same as item 6 of
section 2; if a loss, enter in red)
$
7. Undivided profits or loss shown in item
15 of last report (if a loss,enter in red)__
8a. Amount withdrawn from surplus since
last report
8b. Gross amount withdrawn from reserve
accounts since last report
9. Authorized reduction of capital, not repaid to shareholders since last report
10. Paid assessment for impaired capital
since last report
—
11. Voluntary contributions to
1=1
IJ.7_
..i..1.1.0._
_ha
0
/2
0
0
surplus or
0
profits since last report
')
,
6 ,
TOTALTOTAL.
_f_cl
SECTION FOUR—TOTAL CREDITS TO PROFIT ACCOUNT SINCE ORGANIZATION AND DI
Cl)
$
0
Seemly 4 deals with the total credits to profit account from all sources since organization of bank-, and their distribution into surplus fund, dividends, special reserve
accounts, and undivided •rollts on hand.
19. Total surplus fund at date of this report.
$--.- t).0._ •.0..et.,Q
I
,
1:
70
.._ _ _
;
dividen •: paid since or
Tot
,AjApt "
4;
II
.
,
,.
:, . .,J
',•'0 •i''.41
,'r 1
iza-
,,ff
reserve
(aggregateof all reserve balances).
LO__7_ dflo. 22. Amount of net profits undivided or loss
(same as item 15; if a loss, enter in
2.
__
1::.)ti F a 2 i 6
I,
* the forejoin
et am.un
.ed).
ToTA:
TOTAL
$
.97
A .,- I
,Pp
I
PLEASE EE THAT EACH SECTION BALANCES
(PmaphseirorCashier)
- -
,of the above-named bank, do solemnly swear that
emen,t is true, to the best of my knowledgte and belief.
State of
Countg of
Sworn to and subscribed before me this
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
I ..1.0_7,.ti._.:.t,.
date of conversion to national system___
18. Total obtained by reduction of capital
not repaid to shareholders, by assessment on shareholders and by voluntary
contributions (since organization)
(Add items
m 9, 10 and 11 of this report, to item 18 of
preceding report.)
z
CI)
16. Total net profits as National Bank since
organization. (Add item 6 of this report to item 16 of preceding report)..$
17. Profits and surplus of old organization at
41°e":11b14' (President or Cashier)
-
_____ day of
, Notary Public.
INIFFIIIIIMPT MERINO enum
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Federal Reserve Bank of St. Louis
March 22, 1932
Mr. Eugene :. tevens
Federal Reserve i.gent
Federal Reserve Bank
Chicago, Illinois
Dear :sir. 6tevens:
transmitted to us with your letter of Llarch
I
the net profits of national banks by size groups in the various
,Jtates of your district for each of the years 1926-1930. In
totaling the figures we find that you report for the year 1929 aggregate net profits of .;2946,000 for all national banks in the
district. For that calendar year the Annual Report of the comptroller of the Currency indicates a figure of ;37,603,010.
7,7e were prepared for some difference in these figures
awing to the fact that our study included in any one year only
those national banks whose earnings figures were complete for
the full year. New organizations, suspensions, and other bank
changes are, of course, involved in creating the discrepancies
between the Comptroller's compilation and ours. Owing to the
size of the 1929 difference, we wonder whether you would be
good enough to look at this situation and let us know what
the major items of the difference are.
For the year 1927 the aggregate net profits for national banks as reported by you are $26,744,000 while the Comptroller reported :;;25,448,000.
Very truly yours,
E. A. Goldenweiser
Chairman, Committee on Branch,
Group and Chain Banking.
FEDERAL RESERVE BANK OF CHICAGO
230 S0 L1 -7
L_A SALLE
3,
F=2 E
March
Eighteen
1 9 3 2
OFFICE OF THE
CHAIRMAN OF THE BOARD AND
FEDERAL RESERVE AGENT
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Federal Reserve Board
Washinzton, D. C.
Attention : Mr. E. A. Goldenweiser, Chairman
Committee on Branch, Group, and
Chain Banking.
Dear Mr. Goldenweiser:
As requested in your letter_of_March 12,\
I 4m sendinc, by air mail today, the tabulations Showing
aggregate dollar amounts of loans and investments, gross
deposits, and net additions to profits, by size groups,
for national banks in each state or portion thereof in
the Seventh district, for the years 1926 to 1930, inclusive.
oes,
r741jrz7Zkf1&1
Very tr
i
deral :leserve
HGP :FB
Encl.
'MAIO
I.
1•
'IP
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LASALLE_
•,,,..., -....-,
..-c.. >.f, (%•
,s,1 o'r•-• '
•
SFREEI
,.-'1(% c )
7 1‘
'
Larch•cPV,"1 -•
c-- ‘
Fourteen
19 32
cr, e
• -.I;
OFFICE OF THE
CHAIRMAN OF THE BOARD AND
FEDERAL RESERVE AGENT
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
cc.
Federal Reserve Board
Washington, D. C.
Attention : Mr. E. A. Goldenweiser, Chairman
Committee on Branch, Group, and
Chain Banking.
Dear Mr. Goldenweiser:
I acknowledge your letter of 1.7arch 12,\
requesting three items from the Analysis of Bank _Darnings schedules prepared by us for the Committee last
The work is now under way and is being expedited
year.
It will take several days, howby all possible means.
compilations.
complete
the
ever, to
Ver47
yours,
Fede1.l Reserve Agent
MP :FIB
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Federal Reserve Bank of St. Louis
March 12, 1932
Ir. Eugene 14. Stevens
Federal Reserve Agent
Federal Reserve Bank
Chicago, Illinois
Dear Ur. Stevens:
For the purpose of assembling certain requested information in connection with proposals for guaranteeing bank
deposits, we have prepared the attached tibles calling for three
items to be taken from the "Analysis of Bank :41rnings" schedules
which you prepared for the Conmittee last year. You still hold
these schedules in ycur files and the items desired are J., K.
and N. on page two. You will note that the tables call Ton agcregac dollar amounts for all national ',Junks in each size group.
This entails arranging the analysis blanks for each year by size
of loans and inveatmente, if they are hot already so arranged,
and then tabulating the figures for each year for each size group.
In the case 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 appreciated if you can expedite the compilations.
Very truly yoirs,
E. A. Goldenweiser,
Chairman, Committee on Branch,
Group and Chain Banking.
Eric.
II•
••
FEDERAL RESERVE BANK OF CHICAGO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
230 SOUTH
LA SALLE
STREET
January
Twenty-two
1 9 3 2
Federal Reserve Board
Washington, D. C.
Attention : Er. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear Yr. Riddle:
Thank you very much for your letter of
January 21, which clears up in my mind the nature of
I have returned to NY. Barr Yr.
Herman Wells! request.
Wells! original letter to Yr. Symons, indicating that
in view of the general willingness all around to give
Mr. Wells what he may want, he will hear directly from
you if he has not already done so.
Very truly yo rs,
H. G. Pett, Mamager
Division of Research and Statistics
FIGP:FB
January 21, 1932
Mr. H. G. Pett, Manager
Division of lesearch and Statistics
Pectoral Reserve Bahk
Chioago, Illinois
Dear Mr. Petti
eneint is acknowledepd of your letter of January 19th
enclosing copies of letters from mr. Barr and kr. Wells. What
Zells .7ants is a cor7 of the tabulations 10hich Ne have made
from the original suspension schedules in order that he may
()heck them to see Thy our rezults differ from his.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Inasmuch as the State Banking Department of Indina
has authorized this, I shall send direct to Mr. Wells our compilations on Indiana suspensions. It is not necessary. therefore, for you to turn over your copies of the suspension schedules.
7ery truly yours,
J. H. Riddle
Acretary, Committee on Branch,
Group and Chain Banking.
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE S-T FREE-1
January
Nineteen
19 32
Federal Reserve Board
Washington, D. C.
Attention : Et. J. H. Riddle, Secretary, Committee on
Branch, Group, and Chain Banking.
Dear Mr. Riddle:
I am enclosing photostat copies of letter received today from Mr. Barr, Deputy Bank Commissioner of Indiana which, in
turn, enclosed one from Herman Wells of the Study Commission for
Indiana Financial Institutions.
Both of these letters leave me
at something of a loss to know just what, if anything, this bank
ought to do in the situation. I presume the "documents o to which
Kr. Barr refers are the forms prepared by the Indiana State Banking
Department for the Committee in connection with each bank suspension
since January 1921.
We, as a special courtesy to Commissioner
Symons, made two copies of this material, keeping one ourselves,
sending?: one to the Committee, and returning the originals to Yr.
Symons, so that the State Banking Department in Indianapolis has all
the material that we have, in connection with that particular study.
Mr. Stevens is away, but I can take the responsibility
for saying that we have not the slightest objection to Mr. ',;ells having access to this material; inasmuch as it was prepared by the State
Banking Department, in so far as state banks were concerned, it would
seem to be their property as much as anyone else's.
On the other
hand, I am quite unwilling to take the copies of this study which we
have and turn them over to Yr. Wells, in view of the fact that Er.
Symons already has them.
If I have misunderstood this inquiry, I would appreciate
your setting me right. I think that Barr has misunderstood the nature
of Mr. ".ells' request.
Very
H.
ett, Manager
Division of Research and Statistics
:-1G?:FB
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
OFFICE
OF
DEPARTMENT OF BANKING OF INDIANA
Room 241 STATE HOUSE
LUTHER F. SYMONS, BANK COMMISSIONER
THOS. D. BARR, DEPUTY BANK COMMISSIONER
INDIANAPOLIS,
January 18, 1932
Federal Reserve Bank,
Statistical Department,
Chicago, Illinois.
Attention of Mr. Pett:
Dear Sir:
Enclosed please find a letter from Mr. H. D. 7/ells
which is self explanatory. Kindly return same for
our files when it has served your purpose.
If consistent with the policy and procedure of the
Federal Reserve Bank of Chicago, you care to turn
the documents over to Mr. Wells, the Department of
Banking of the State of Indiana would be willing
that the same should be done.
Yours very truly,
UTY BANK CONMISSIONER
STUDY COMMISSION FORINDIANA.FINANCIALINSTITUTIONS
108 -NORTH PENNSYLVANIA STREET,INDIANAPOLIS
WALTER 5 GREENOUGH. CHAIRMAN
FLETCHER TRUST COMPANY
IN
WILLIS S. ELLIS. VICE•CMAIRMAN
ANDERSON LOAN ASSOCIATION
ANDERSON
CURTIS H. ROTTGER. TREASURER
108 EAST WASHINGTON ST.
INDIANAPOLIS
PAUL N BOGART
FIRST.MCKEEN NATIONAL
BANK AND TRUST COMPANY
TERRE HAUTE
FRANKLIN 0.1 BOONE
THE BUILDING & LOAN ASSOCIATION OF SOUTH BEND
SOUTH BEND
MYRON H GRAY
BRACKEN. GRAY & DEFUR
MUNCIE
CHARLES KETTLEBOROUGH
INDIANA LEGISLATIVE BUREAU
CREATED
BY
SEVENTY-SEVENTH
APPOINTMENTS BY GOVERNOR
GENERAL
MARRY
G
ASSEMBLY
LESLIE
INDIANAPOLIS
WILLIAM G IRWIN
IRWIN•UNION TRUST COMPANY
COLUMBUS
HUGO MELCHIOFI
THE DUBOIS COUNTY
STATE BANK
JASPER
WILLIAM F MORRIS
THE PENDLETON BANKING COMPANY
PENDLETON
GEORGE WEYMOUTH
INDIANA FARMERS GUIDE
INDIANAPOLIS
HERMAN B WELLS. SECRETARY
AND RESEARCH DIRECTOR
COMMERCE BUILDING
BLOOMINGTON
January 16, 1932
kr. L. F. Symons:
Bank Commissioner
State House
Indianapolis, Indiana
Dear Mr. Symons:
I have just returned from a trip to New York and
.
Washington in the interests of our commission. One of the
principal purposes of this trip was to check our preliminary
studies of bank failures (all based on the figures which
you furnished us, of course) with the studies being made in
Washington by the large committee working under the direction of Dr. H. J. Riddle, financed by the Federal Reserve
Banks. Although many scientists and scholars have tried to
get access to the findings of this committee, we were the
first to be successful. Our studies were compared with
theirs, and there is some difference of opinion as to original figures to be used, methodology of compilation, and
findings. In other words, our studies seem to substantiate
the Hoosier viewpoint that size, location, etc. have very
little influence upon the rate of failure. I want to bring
these ratios in and show them to you at an early date for
I feel that both you and Mr. Barr will be much gratified by
the fact that they substantiate many of the. assertions which
you have both made publicly in this connection in the past
two or three years.
Mr. Riddle is, of course, eager to work out dif:erences
between his findings and our findings, if possible, prior to
the publication of his study and to the publication of our
study. Consequently, he wishes to do something which he
has
not done before, and that is to turn .over to us all of the
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Federal Reserve Bank of St. Louis
STUDY COMMISSION FOR INDIANA FINANCIALINSTITUTIONS
108 NO RTH PENNSYLVANIA STREET,INDIANAPOLIS
WALTER 5 GREENOUGH. CHAIRMAN
FLETCHER TRUST COMPANY
CHARLES KETTLEBOROUGH
INDIANA LEGISLATIVE BUREAU
INDIANAPOLIS
WILLIS S. ELLIS. VICE•CHAIRMAN
ANDERSON LOAN ASSOCIATION
INDIANAPOLIS
WILLIAM G IRWIN
IRWIN•UNION TRUST COMPANY
COLUMBUS
HUGO MELCHIOR
THE DUBOIS COUNTY
STATE BANK
JASPER
WILLIAM F MORRIS
THE PENDLETON BANKING COMPANY
ANDERSON
CURTIS H. ROTTGER. TREASURER
108 EAST WASHINGTON ST
INDIANAPOLIS
PAUL N BOGART
FIRST.MCKEEN NATIONAL
BANK AND TRUST COMPANY
TERRE HAUTE
FRANKLIN M BOONE
CREATED
BY
SEVENTY-SEVENTH
APPOINTMENTS EIV
GOVERNOR
GENERAL
HARRY
THE BUILDING & LOAN ASSO.
CIATION OF SOUTH BEND
SOUTH BEND
M YRON H GRAY
BRACKEN. GRAY & DEFUR
MUNCIE
G
ASSEMBLY
LESLIE
PENDLETON
GEORGE WEYMOUTH
INDIANA FARMERS GUIDE
INDIANAPOLIS
HERMAN El WELLS, SECRETARY
AND RESEARCH DIRECTOR
COMMERCE BUILDING
BLOOMINGTON
Mr. L. ?. Symons
- 2.-
all of the compilations which they have made on Indiana and
let Us check them both for fact and for method. Since the
source of his figures was the Federal Reserve Bank of
Chicago, which in turn drew upon your office largely, he feels
that it will be necessary for him to have an official authorization from you before turning his study over to me for complete
utilization. In case this should meet with your approval, I
would appreciate it if you would write the agent of the Tederal
Reserve Bank of Chicago, informing him that it will be satisfactory to you for Yr. Riddle to give me the statistics on
Indiana.
•
Very respectfu ly yours,
.A.C(40
H17.TC
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Federal Reserve Bank of St. Louis
Secretary and Research
Director
FEDERAL RESERVE BANK OF CHICAGO
230 S0LrH4
LA SALLE S'FiREE I
January 12, 1932
OFFICE OF THE
CHAIRMAN OF THE BOARD AND
FEDERAL RESERVE AGENT
Federal Reserve Board
Washington, D. C.
Attention, Mr. E. A. Goldenweiser, Chairman,
Committee on Branch, Group and Chain Banking.
Gentlemen:
Complying with the request contained in your letter
of November 23, we are submitting herewith enclosures on the
remaining six, out of a total of nineteen, banks selected by
you, as follows:
1. Coments of the National or State bank examiners,
as the case may be, from the beginning of 1920 to suspension.
2. Comments of Federal reserve examiners or this
office regarding these banks during the sane neriod.
3. Photostatic copy of each bank's bond and other
!ecurity holdings on three different dates.
4. Detailed statistical data taken from examiners /
reports and recorded on Form F from 1920 to date of suspension.
5.
Key word for each bank.
There is also enclosed photostatic copy of bond and
other security holdings of Bank No. 15, which was omitted in
urea.
our letter of December 29, 1931 with
Yours
Ver.
A41/
"rire'';0
ral Reserve Agent
CSY L
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Federal Reserve Bank of St. Louis
di
imio
go•
6•
Suspended Banks Selected for Case Studies
Chicago District
1. First National Bank
2. First National Bank
3. First National Bank
4. Oconto National Bank
5. First National Bank
6. National City Bank
7. Irving Park National Bank
8. First National Bank
9. First National Bank
10. First National Bank
11. First National Bank
12. First National Bank
13. First National Bank
14. Citizens National Bank
15. First National Bank
16. Washington Park Nat'l Bk.
17. First National Bank
18. National Bank of
19. North Western Trust & Svgs. Bk.
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Federal Reserve Bank of St. Louis
Fowler, Ind.
Doon, Iowa
Veedersburg, Ind.
Oconto, Wisconsin
Downers Grove,
Ottawa, Illinois
Chicago, Ill.
Newton, Iowa
Coin, Iowa
Merrill, Iowa
Randolph, Iowa
Reed City, Mich.
Erie, Illinois
Kokomo, Indiana
Logansport, Ind.
Chicago, Illinois
Boyne City,
Sidney, Iowa
Chicago, Illinois
0
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE SMFREET
Deoember 29, 1931
Federal Reserve Board
Washington, D. C.
Gentlemen:
Attention, kr. z. A. Goldenweiser, Chairman,
Ccmmittee on Branch, Group and Chain Banking.
Complying with the request oontained in your letter of
November 23, we are submitting herewith enclosures as follows:
1. Comments of the National or State bank examiners, as
the case may be, from the beginning of 1920 to suspensicn.
2. Comzents of Federal reserve examiners or this office
regarding these banks during the save period.
3. Photostatic ccpy of each bank's bond and other
security holdings on three different dates.
4. Detailed statistical data taken from examiners' reportf,
and recorded on Form F from 1920 to date of suspension.
There is also enclosed the key word for each bank.
.8 selected by you
As soon as possible, the other six bani,
forwarded.
be
will be studied and data will
Yours very truly,
z
C. S. Young, Assistant F deral Reserve Agent
CSYL
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Federal Reserve Bank of St. Louis
First National Bank
Fowler, Indiana
First National
Veedersburg, Ind.
3
Oconto National
Oconto, Ai3c.
4
First National
Downers Grove, Ill.
5
National City
Ottawa, Ill.
6
Irving Park Natl.
Chicago, Ill.
7
First Natl.
Newton, Iowa
8
First Natl.
Merrill, Iowa
First Natl.
Reed City, Michigan
12
First Natl.
Erie, Ill.
13
First Natl.
Logansport. Indiana
15
Washington Park Natl.
Chicago, Ill.
16
Northwestern Tr. & Svgs.
,.
19
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Federal Reserve Bank of St. Louis
(Bank No. 1)
10
•
LEGRAM
6•
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
RECEIVED AT WASHINGTON, D. C.
165ab
Chicago 1244p Dec 28
Goldenweiser
17ashn
Reference is made your letter november 23 in which you requested
data on nineteen failed banks in our district during year 1931
we have data prepared on thirteen of these institutions it may
not be possible to complete the other six banks on list this
week shall we forward data on the thirteen today
Young
157p
,
11.1ENT vurxruvo 01,1011
O. O. •OVE11
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Federal Reserve Bank of St. Louis
2-11901
•
••
N'orm 148
TELEGRAM
FEDERAL RESERVE BOARD
LEASED WIRE SERVICE
WASHINGTON
2-9464
Jeaamber 29, 1931
C. S. Young
Chicago
Tieferring your telegram twenty—eighth suggest you
furnish data on thirteen banks.
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Federal Reserve Bank of St. Louis
Got')Eny..E-mt
•
•
•
•
FEDERAL RESERVE BANK OF CHIC
230 SOUTH
LA SALLE STREET
December 4, 1931.
OFFICE OF THE GOVERNOR
Mr. Chester Morrill, Secretary,
Federal Reserve Board,
Washington, D. C.
/
Dear Mr. Morrill:
This will acknowledge receipt of our letter
of the 2nd instant, accompanied by a copy of the confidential
data submitted to the sub-committee of the Committee on Banking
and Currency, which is engaged in a survey of the operation of
the National and Federal reserve banking systems.
We are pleased
to receive the same, and your suggestion that this be regarded
as confidentiall will, of course, be observed.
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Federal Reserve Bank of St. Louis
Very truly yours,
k,---2-Aternor.
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Federal Reserve Bank of St. Louis
December 2, 1931.
ar. X. B. McDougal, Governor,
Fodaral Ilesorve Banc,
Chicago, Illinois.
Dear Coverner 7JaDougal:
: the neetiNg today with the Governors' ConferDurinReserve Committee on 3ranch, Group and
.
ence of the .?aderal
Chain Banking a request was made that each Governor he furnishei with a copy of the confidential data ouhnittod
recently to the Sub-cemmittee of the Committee on T3an17ing
id Currency of the United States Berate which in mgaged in
a survey of the operation of the rational and Federal Reserve
bankinf! system.
A copy of this data is enclosed herewiyh and it is
requested that you also rorrard it as confidential.
7ery truly yours,
(Signed) Chest, Morrie
Chester I'urrill,
Secretary.
/rkt
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Federal Reserve Bank of St. Louis
6•
S.
FEDERAL RESERVE BANK OF CHICAGO
230 0.,OUTH
LA SALLE. 3TREET
November 28, 1931
Federal Reserve Board
Washington, D. C.
Gentlemen:
Attention, Ur. E. A. C'Toldenweiser, Chairman,
Committee on Branch, Group and Chain Banking.
This will acknadvledge receipt of your letter of
November 23 with reference to reports of nineteen suspended
banks in this district. Receipt is also acknowledged of the
necessary blanks under separate cover.
It will take some time to prepare these data,
which will be forwarded as soon as possible.
Yours very truly,
C. . Youn
Assistant"Fed ral Reserve
CSY L
November 23, 1931
Mt. Eugene M. Stevens
Federal Reserve Agent
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Stevens:
In the early part of this year the Committee initiated a sWdy
into the causes of bank failures which eonsisted in compiling the ease
hiatovt of 120 banks for several years prior to suspension. These 120
banks were selected from suspensions during 1921-1960 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 factors involved, it
is felt that no study of suspensions would be adequate unless it oovered
this year. Therefore, 100 banks suspending in 1931 have been selected
in a manner which should make them representative 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 accordance with the instructions. The information desired coneists of four parts.
First, the ommenta of the national or State bank examiners,
as the case may be, fres the beginning of 1920 till suspension. The
form in which these °ammo/its should be drawn up is explained in the enclosed mimeographed instructions to which is attached Exhibit I, an
illustration. As an aid to interpretation these omments are Interspersed with certain figures showing in a general way the condition
of the Dank at the time of each examination. Certain other data are
also Galled for, such as population figures and earnings. These are
covered in the mimeographed instructions.
Second, the comments of Federal reserve examiners regarding
these banks aUFrng the same period, together with any correspondence,
memoranda or other material la the files of the Federal reserve bank
which will aid in understanding the condition and operation of these
banks prior to failure. No special form has been drawn up for compiling this material, but in so far as feasible it should be listed
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Federal Reserve Bank of St. Louis
Ur. 3ugene U. Stevens, #2
101,04iwur
ohronologioally as in the case of the oaments of the national and State
bank examiners.
Third, a photostat oody of each bazik's bond and other security
holdings on EEFee different dates: (1) at or just prior to suspension;
(1) approximately on year prior to suspension; and (3) approximately
two years prior to suspension.
Fourth, detailed statistical data taken from the examiners'
reports alia-Wilirded on "Form F" from 1920 to the date of suspension.
A copy of this form and comments regarding its preparation are enclosed,
%rid a supply of the forms is being forwarded to you under separate cover.
In case the history of any bank in the list is not available
for any reason a substitution should be made of some other typical suspended bank in your district.
In view of the urgent 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 um have it by the 15th
of December.
Very truly yours,
A. Goldenweiser
Chairman, Committee on Branch,
Group and Chain Banking.
Eno.
II
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Federal Reserve Bank of St. Louis
•Ll
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
;Suspended Banks
elected for Case
tudies
Chicago District
1.
2.
3.
4.
5.
6.
7.
8.
9,
10.
11.
12.
13.
14.
lb.
16.
17.
18.
19.
•
Lawrence Avenue National Bank
First National Bank
National City Bank
First National Bank
First National Bank
First Hatinnal Bank
First National Bank
Inkster National Bank
First National Bank
Oconto National Bank
First National Bank
3itizens National Bank
Inland Irving National Bank
Washington ?ark National Bank
First National Bank
*Northwestern Trust & Aws. Bank
*American savings Bank & Trust Co.
irat crust and bars. Bank
*-ontiac Co3ueroial sad Savo. Bank
Chicago, Ill.
Downers Grove,
Ottawa,
Veedersburg, Ind.
Coin, Iowa
Merrill, Iowa
Boyne City, kiOh.
Inkster, Mioh.
St, Clair Shores, ,Ach.
Oconto, Wisc.
Hrie, Ill.
Kokomo, Ind.
Chiang°,
Chioaem, Ill.
Logansport, Ind.
Chicago, Ill.
Davenport, Iowa
Hammond, Ind.
Pontiac, Michigan
These are State banks and if their histories are not sufficiently complete for our nurposes, piense substitute
national banks, We suggest the First National Bank of Newton, Iowa, the First National Bnnk of '.kandolph, Iowa,
the First Natiunal Bank of 7c:rifler, Ind, an the rational
3ank of Sidney, jidne:!, Iowa.
/I-
,,
A t-IA-V2-1--.4
'
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Federal Reserve Bank of St. Louis
November 9, 1931
Li'. H. G. Pett, 1:tanager
Di7ibiOn of Research and Statitics
Federol BeserTe Bank
Chicago, Illinois
Dear Mr. Pett:
We aoknowledge lith thanks yur 1ett7:
Nove.aber 6th enclosing Tables 1-e, 1:-e
ing earnines wia expense t'gures fcr Lc
r
wL V-e EhowState
for the year 1930.
Very truly
J. H. Biddle
Zeoretar,y, Comilttce on Branch,
Group and Chain Banking,
FEDERAL RESERVE BANK OF CHICAGO
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Federal Reserve Bank of St. Louis
230 SOUTH
LA SALLE
STREET
November
Six
193 1
Federal Reserve Board
Washington, D. C.
Attention : Yr. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear Yr. Riddle:
In connection with the Committee's study on
earnings and expenses of Iowa state banks, we send you,
enclosed, Tables I-e, II-e, and V-e, covering 1930. This
completes the compilation for Iowa banks asked for by the
Committee.
H. G. Pe t, Manager
Division of Research and Statistics
HGP:FB
Eric 1.
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Federal Reserve Bank of St. Louis
October 21, 19Z1
Mr. H. G. Pett, manager
Division of Research and Statistics
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Pett:
We acknowlec..ge with thanks your letter of
October 19th enclosing Tnbles I-e, II-e and 7-e
showing earrings nnd expense figures for Iowa state
banks for the year 1929.
Very truly yours,
J. H. Riddle
Secretary, Canwittee on Branch,
Group and Chain Banking.
14
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Federal Reserve Bank of St. Louis
October 20, 1931
Mr. Eugene X. Stevens
2eAral Reserve Agent
Federal :leserve Bank
Chicago, Illinois
Dear
Stevens7
Aeferring to your letter of October 16th, we
do not think it necessary to go to the trouble to compile from the Bankers Directory the number of correspondents which the Chicago banks have. If the leading
banks in the city have no objection to giving out the
number of banks in each state which keep balances with
them, this would certainly be the quickest and most
accurate method of petting the information.
e are
merely interested in the aggregate number in each
state which keep balances with Chicago institutions.
7ery truly yours,
E. A. Goldenweiser
Chairman, Cowmittee on iiranch,
Group and Chain Banking.
H
•
•
FED ERAL RESERVE BAN K OF CH I CAGO `1-46#44!"-"-_30 SOL,
H LA SALLE aTREET
October 19, 1931
OFFICE OF THE
CHAIRMAN OF THE BOARD A
FEDERAL RESERVE
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Federal Reserve Bank of St. Louis
444
4cc41/S
14,
N
0
.2):14,0A
IGEN
Reserve Board
gton, D. C.
Gentlemen:
Attention, Mr. E. A. Goldenweiser, Chairman,
Committee on Brench, Group and Chain Banking.
Reference is made to your letter cf October 16
in regard to the State clearing house bill which has been
prepered by an interim legislative coramittee appointed by the
Governor of the State of Aisconsin.
There is enclosed a copy of the proposed bill*
Public hearings will be held October 21 to October 28, as the
committee requests suggestions or criticisms of the proposed
Plan. The recommendation of the committee will be made only
after consideration of all the suggestions or criticisms.
Mr. Estberg, one of our directors, is a member
of this committee, and we shall be in a position to give you
additional information from time to tine.
Yours very
rOforro-r7
'411111111111)
CSYL
lb•
xj-il!FEDERAL RESERVE BANK OF CHICAGO
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Federal Reserve Bank of St. Louis
e-23o
SOUTH
LA SA LLE
STREET
October
Nineteen
1931
Federal Reserve Board
Washington, D. C.
Attention : Mr. J.. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear Mr. Riddle:
In connection with the Committee's study on
earnings and expenses of Iowa state banks, we send
you, enclosed, Tables I-e, II-e, and V-e, covering
the year 1929.
Very trul
\-
y urs,
q./ /6
H. G. Pett, Manager
Division of Research and Statistics
:FB
Encl.
•
•
0•
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
%cQ
e>
<j•
. <9 1
lb°43
STREET
d'
i•C;c•
17X'116'
<S>re
154
,45
Jetober
Sixteen
1 9 3 1
<
:
15,
Federal Reserve Board
Washington, D. C.
Attention : Mr. E. A. Goldenweiser, Chairman
Committee on Branch, Group, and
Chain Banking.
Dear rr. Goldenweiser:
The only information at present available concerning the number of correspondents which the Chicago banks have
in each state in the Union, is that compiled as of January 1,
1927 by the Bureau of Business Research of the University of
Illinois, and presented in their Bulletin No. 21 entitled "An
The source of
Analysis of Bankers' Balances in Chicago."
their information was Rand McNallyls Bankers Directory, and of
course their figures are now much out of date.
While I believe you receive copies of these bulletins as published, fez*
convenience I am enclosing No. 21, on pages 10 and 11 of which
you will find the compilation to which I refer.
Without doubt the leading banks here would furnish
us with the figures you desire, and I assume that for your purposes the aggregate in each state shown by these institutions
7ould be sufficient.
If you wish us to do so, we shall be very
glad to take up the matter with them.
I believe data collected
in this manner would present a more accurate picture than any
attempt on our part to compile them from the Bankers Directory,
subject as it is to the limitations pointed out on page 5 of
University of Illinois Bulletin No. 21.
Very 10
1,s,
/
/II
l
e
60Prr
Orif4":
-111111.
9
eral Reserve Agent
!DP:FB
Encl.
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Federal Reserve Bank of St. Louis
<
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Federal Reserve Bank of St. Louis
October 16, 1931
Mr. Bugeto U. Stevens
Federal neserve Agent
Federal !e serve Bank
ihienglo, Illinois
rear 1,r. Stevens:
The press has carried an item within the last
day or two to the effect that an interim legislative committee in 'i,dsconsin has agreed upon a State clearing house
bill, to be recommended for enactment at a special session
in that State. The bill has not been male public, but ir
view of the fact that it involves the ohain and group
ban:cing orohlm, ir thnt banks whose 3tock is held by
holding corporations would not be permitted to join the
'maid be deprived of certain
State clearing house an,
privileges incident thereto, we are eager to secure
corr for 15e in our ban'Aing study and report. If you
can secure a Copy for us, it will be much appreciated.
Very truly yours,
E. A. Goldenweiser
Ohrirman, Committee on Branch,
Group and aain Banking.
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Federal Reserve Bank of St. Louis
f
I
October 14, 1931
Mr. Eugene M. Stevens
Federal Tieserve ,lzent
Federal Reserve Bank
Chicam, Illinois
Dear Mr. 6tevens:
Tould it be nossible to !-,et for the Ihtnittee's
use the anproximnte number of -:orrespondents which the
Chicago barks he in er?lh sthte in the Union?
We are
not interested in names of banks or deposits but merely
the number of correspondent accounts in each state.
Very truly yours,
E. A. Goldenweiser
Chairman, Calimittee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October it, 1931
Mr. H. G. Pett, Manager
Division of Research and Statistics
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Pett:
•
.e acknowledge with thanks receipt of your
letter of October 2nd enclpsing Tables I-e, II-e, and
7-e showing earnings and expense figures for Iowa
state banks for the year 1928.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
FEDERAL RESERVE BANK OF CHICAGO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
230 SOUTH
LA SALLE
STREET
October
Second
19 31
Federal Reserve Board
Washington, D. C.
Attention : Mr. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear Yr. Riddle:
In connection with the Committee's study
on earnings and expenses of Iowa state banks, we send you,
enclosed, Tables I-e, II-e, and V-e, covering the year 1928.
Very truly yours,
Manager
H. G. Pet
Research
and Statistics
Division of
HGP:FB
6• z/ 2i,
•
FEDERAL RESERVE BANK OF CH ICAGO'''). 1.
230 SOUTH LA SALLE STREET
4>i,
/ <fe'2,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
September
Twenty-six
1 9 31
Federal Reserve Board
Washington, D.C.
Attention : Mr. E. A. Goldenweiser, Chairman
Committee on Branch, Group, and
Chain Barking.
Dear Yr. Goldenweiser:
Mr. Stevens has asked me to acknowledge
your letter to him of September 22 regarding Fupplemental
information on building and loan and other types of nonWe shall endeavor to bring to
banking organizations.
significant
developments in this disyour attention any
trict within recent months.
Very truly you s,
er
H. G. Pett, MA
Division of Research and Statistics
HGP :FB
•-5'
44,
/
September 22, 1931
Ur. Eugene M. tevens
Federal Reserve agent
aederal Reeerve 3aak
Chicago, Illinois
Dear Mr. aterens:
As you da)ubtless know, the Federal Reserve Committee or Braneh,
Group and Chain Banking expects to include in its report a chapter on the
competition encountered by banks On the part of ncn-banking Institutions,
notably building and loan aseociations, savinas and luau useociations,
and similar societies conduoted on the mutual or cooperatiaa principle,
aeveral of the Federal reserve banks have beea goou °lieu" to colapile
in will be
and trananit to us much valuable information, which in the
sufficient for our purposes. ae are euxious, boa-ever, to make sure that
the report shall not fail to take account of any new developments of importance which may have occurred in recent months, particularly with respect to the manner in which building and loan associations have met the
conditions arising out of Wailing crises in various localities.
aince we 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 infOrmat'on you can Parnish, without too
much trouble, as to eonditions in your diEtrict. We should like to
know, for example, to what extent the assets of building and loan roAllsociatims are "frozen," ahether more or less sr:riously than the real
estate loans of the banaa; 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 eayaent of the withdrawal
." be, and
value of their shares, or ca thrir denosits, a:. the caze Iza.
wheCh r there has been in the past twelve months any considerable
increase to building and loan failures, as compared aith the years
1928 and 1929.
We shall greatly appreciate a repay along the lines indicated
at your earliest convenience.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
aer
t ruiy you-s,
E. A. Goldenweiser
Chairaan, Committee on Branch,
Group and Chain Banking.
Ark,
•
•
0
FEDERAL RESERVE BANK OF CHICAGO-iro
230 SOUTH
LA SALLE STIREST
OFFICE OF THE
September 22, 1931
CHAIRMAN OF THE BOARD AND
FEDERAL RESERVE AGENT
Mr. E. A. Goldenweiser, Chairman
Committee on Branch, GTOUID & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear Mr. Goldenweiser:
Replying again to yours of September 15, I am enclosing
copies of letters received from the First Wisconsin National Bank
of atilwaukeel End the Guardian Detroit Bank of Detroit, acceding
to your request to use the information which they submitted in
their reports on their groups.
You will notice Mr. Lord's request
that a certain clause in his report be omitted from the published
report, and I am sure you will concur in his request in this
respect and I have advised him that I felt you would do so.
With personal regards, i am
Very
ours,
Aeral Reserve Agent
EMS BH
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
49
07
1110 III
6•
COPY
FIRST WISCONSIN NATIONAL BANK
of hwilwaukee
September 19, 1931
Mr. Eugene M. Stevens
Chairman of the Board
Federal Reserve Bank of Chicago
Chicago, Illinois
Dear Mr. Stevens:
Receipt is acknowledged of your letter of
September 18th enclosing copy of letter received by you
from Mr. E. A. Goldenweiser, hairman of the Committee on
Branch, Group, and Chain Banking of the Federal Reserve Board.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
In reply wish to state that we havc no objections
whatsoever to their using in any way they see fit the information
we have prepared for them.
We spent a great deal of time on these schedules
and are glad to know that the report is pleasing.
With kind personal regards, believe me
Very truly yours,
(Signed) WALTER KASTEN
President
•
COPY
GUARDIAN
DETROIT
BANK
Detroit, Mich.
Sept. 21, 1931
Mr. Eugene M. Stevens, Chairman
Federal Reserve Bank of Chicago
230 South LaSalle Street
Chicago, Illinois
My dear Gene,I have your letter of the 18th enclosing copy of
a letter received from Mr. E. A. Goldenweiser, Chairman of the
Committee on Branch, Group, and Chain Banking of the Federal
Reserve Board. There is no objection whatever to kr. Goldenweiser's
using the report which we made up for him with the exception of
Paragraph 5 of question "V. Public Relations", to which our reply
was as follows:
"If the law permitted, we would probably convert this
Group into a branch banking system with the local Boards
of directors retained as advisory boards in each community.
The State of Michigan permits banks to operate branches
within the corporate limits of the municipality in which
the main office of the bank is located."
As you can understand, we would prefer at this time
not to give out any definite statement as to our intentions as to
branch banking in case legislation permitted it within the State of
Michigan. With the exception of this particular paragraph, I am
very glad to have Mr. Goldenweiser make use of our answers to his
questionnaire as he sees fit.
Very truly yours,
(Signed)
ROBT. O. LORD
President
ROL N
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Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
September 18, 1931
Mr. H. G. Pett, Manager
Division of Research and Statistios
Federal eserve Bank of Chicago
Chicago, Illinois
Dear
r. Pett:
We acknowledge with thanks receipt of your let-
ter of 5eptember 9th enclosing Tables I-e, II-e, and V-e
showing earnings and expense figures for Iowa state banks
for the year 1927.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
••
•
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE STREET
September 18, 1951
OFFICE OF THE
1,
CHAIRMAN OF THE BOARD AND
VP.c,QN
\AC/ PIN
VI
FEDERAL RESERVE AGENT
S42
Federal Reserve Board
tfq,
Washington, D. C.
Mr. E. A. Goldenweiser
Gentlemen:
Replying to yours of the fifteenth, received only
today, I will at once take up with the Guardian Detroit Union
Group of Detroit, and the Wisconsin Bancshares Corporation of
balwaukee, your suggestion and will report to you as soon as
I hear from them as to their attitude
Very t
matter.
yours,
eral Reserve Agent
EMS HH
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Federal Reserve Bank of St. Louis
September 15, 1931
Mr. Eugene X. Stevens
Federal Reserve Agent
Federal Reserve Bank
Chicago, Illinois
Dear ;Ir. Stevens:
Some months ago the Guardian Detroit Union Group of Detroit
and the Wisoonsin Bancshares Corporation of 4ilwaukee were good enough
at your request to fill out for the Conmittee on Branch, Group and
Chain Banking schedules of information which oonsisted in answering
some sixty odd questions prepared by the Committee. This information
WA supplied on the understanding that it would be kept confidential
nnd used only by the Committee in drafting its general report on group
banking.
The Comaittee, of course, is living up to this understanding. The information is SID well organized, however, and so instruotive that it somas desirable to print these schedules, among others,
as appendieee to the report on group banking provided we can secure
permission from the groups themselves. We should appreciate it, therefore, if you will raise the question with them. It will be entirely
optional with them, of course, and if they should object for any
reason, that will be the end of the matter. So far as we can 398
there is nothing in these reportz which would react against the
groups. On the contrary they supply a body of userll data which
will help to ,71ve a better understanding of the groups and their
activities.
The Committee's report, including the appendioes, will be
submitted to the Federal Reserve Board and to the Conference of
Governors and Agrnts and it will be for them to decide what disposition to make of it. ?reenmably it will be :Lade public in some
form.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Tory truly yours,
E. A. Goldenweiser
Chairman, Committee on Branch,
Group and Chain Banking.
••
•
FEDERAL RESERVE BANK OF CHICAGO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
230 SOUTH LA SALLE STREET
September
nnth
1 9 31
Federal Reserve Board
Washington, D. C.
Attention:
Mr. J. H. Riddle, Secretary,
Committee on Branch, Group
and Chain Banking.
Dear mr. Riddles
In connection with the Committee's study on
earnings and expenses of Iowa state banks, we send you,
enclosed, Tables I—e, II—e, and V—e, for the year 1927.
Very truly
HGP:G
4 encls.
ours,
H. G. Pe t, 1"'_nager
Division of Research and Statistics
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
September I, 1931
kr. H. C. Pett, Ilanager
Division of Research and Statistics
Federal Reserve Bank
Chicago, Illinois
Dear kr. Pett:
Receipt is acknowledged of your letter of Alugust
29tivenclosing Tables I-e, II-e and V-e showing earnings
and c.;,pense figures for Iowa state "b:inks for the year 1926.
Very truly yours,
J. H. Riddle
Sedretary, Committee on Bcanch,
(.1rouo nr6 Chain Bankine,'.
FEDERAL RESERVE BANK OF CHICAGO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
LA SALLE
230 SOUTH
STREET
AUgliSt
7Wenty-nine
1931
.J'ederal iieserve Board
.:ashinL;ton, D. C.
Attention : Er. J. H. Riddle, Secretary
Committee on Branch, Group
and Chain Banking.
Jear Hr. Riddle:
In connection with the Committee's study
Jn earnings and expenses of Iowa state banks, we send you,
,nclosed, Tables I-e, II-e, and V-e, for the year 1926.
Very truly yours,
ci
H. G. Pete, Manager
Division of Research and Statistics
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
August 27, 1931
Mr. Eugene U. Stevens
Federal 'teserve Agent
Federal "ieserve Bank
Chioago, Illinois
Dear lar, Stevens:
acknowVdge with thanks receipt of the photostatic copies of the investments lists of fifty selected
national banks in your district on Wlich yoa have identified all seourities to which ratings from published souroes
were not assigned,
Very truly yours,
C. B. Hammond
For the Committee on Branch,
Group and Chain Banking,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE. 0TIREE-1
August 25, 1931
Federal heserve Board
Washington, D. C.
Gentlemen:
Attention, Mr. E. A. Goldenweiser, Chairman
Committee on Branch, Group and Chain Banking.
Reference is made to your letter of August 18,
from which we quote:
"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."
1",e are forwarding under separate cover the list of
securities held by each of the fifty selected national banks. We
have tried to follow your instructions in this matter, and if this
information is incomplete or in any way unsatisfactory, kindly
advise us and we shall endeavor to comply with your instructions.
Yours very truly,
Assistant Feder
Reserve A e
CST L
AUG21;1931
niviswm0FTESEARCH
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
August 24, 1931
Mr. Fu,ere M. Stevens
Federal Reserve AFent
Federal Reserve Bank
Chicago, Illinois
Dear kr. Stevens:
In Yr. Goldenweiser's and Mr. Riddle's absence
I am acknowledging with thanks your letter of August List
accompanying the C Forms covering information on affiliations in your district.
Very truly yours,
C. B. Hammond
For the Committee on Branch,
Group and Chain Banking.
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALE 2.-TREE1
August
Twenty-one
1 93 1
OFFICE OF THE
CHAIRMAN OF THE BOARD AND
FEDERAL RESERVE AGENT
Federal Reserve Board
Washington, D.C.
Attention: MY. E. A. Goldenweiser, Chairman,
Committee on Branch, Group, and
Chain Banking.
Dear NY. Goldenweiser:
In another package we are returning the forms
relating to two-bank affiliations and non-banking affiliates of banks in this district, to Which we have given the
best check possible on the basis of the information available. Several additional forms have been made out, supplementing those compiled by your Committee, and the capital
and loans and investment figures of banks have been filled
in. In so doing we used the !,.arch call report for member
banks, and the Bankers, Directory nearest to that date for
non-members.
The sources of information at our command, as
I wrote you on August 7i yield very little on "How controlled.“ This is equally true of the items on the forms
relating to date of charter and state issuing the same,
which you wished in the cases of non-banking affiliates.
A number of forms compiled by the Committee
cover information for banks which have closed. We assumed
that the list was designed to represent affiliations of
"going" banks and therefore merely marked the form "Closed."
in these cases.
Very t ru
APP,
fffefirfrP
HGP:G
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Fe/0 al Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
a
August 20, 1931
Mr. H. G. Pett, Manager
Division of Research and Statistics
:vueral Tieserve Bank
Chicago, Illinois
Dear 2..r. Pett:
In the absence of Ur. RtAdle and L.r. Blattner
I am acknowledging receipt of Tables I-e, II-e and V-e
If later it
- nKs for the year
for Iowa state m
on for the
compilati
a
have
shoald be found necessary to
about the
you
with
te
year 1924, lir. Riala will communica
data.
missing
the
for
possibility of making a sul:utitutior
Very truly yours,
C. 0. Hammond
For the Committee on Breach,
Group and Chain Banking.
FEDERAL RESERVE BANK OF CHICAGO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
230 SOUTH
LA SALLE
STREET
August
Eighteen
1931
Federal Reserve Board
Washington, D. C.
Attention : MY. J. H. Riddle, Secretary
Committee on Branch, Group
and Chain Banking.
Dear NY. Riddle:
I an: enclosing Tables I-e, II-e, and V-e for
Iowa state banks for the year 1925.
When we began the compiling of these data for
Iowa banks, we were unable to find the original material for
e have searched throughout the bank in every
the year 1924.
possible place and have even written to the State Banking Department of Iowa and to the Iowa Bankers Association, with the
thought that perhaps Mr. Huston, my predecessor, had returned
They were unable to locate
the original forms to Des Moines.
them, however, so that 1925 is the first year for which we are
able to supply the figures to you.
The work is coming along fairly well and we
for 1926 and 1927 within a relatively
tables
these
have
shall
three years as soon as possible.
remaining
the
short time, and
Very truly y
H. G. Pett, anager
Division of Research and Statistics
HGP:FB
Encl.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
August 18, 1931
Mr. Bugene M. Stevens
Federal Reserve Agent
Federal Reserve Bank
Chicago, Illinois
Dear Lir. Stevens:
de are returning under separate cover the lists of
securities Irld by each of fifty selocted national banks in
your district which you prepared in aceordanue with our letter of June 25th. The Coanittee requests that you indicate
the mating assigned by you to each security for which you
could find no published rating and that you iaentify each
security classified as "not rated" or "not listed." If
adequate 'Information concerning a particular security is
laoking and you have assigned an arbitrary rating, the
rating should be noted tis being arbitrary.
Very truly yours,
E. A. Goldenweiser
Chairman, Committee on Branch,
Group ann Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
August 11, 1931
Lr. Eugene U. Stevens
Federal Reserve Agent
Federal Reserve Bank
Chioago, Illinois
Dear Mr. Stevens:
In your lette:' of :Jigust 7th you raise the question whether we desire to h -ie you get the missing infermr.tion n8 to the control of affiliates, whieh was to be
reported to us on our Form C, by communicating directly
with the banks. It seems to us inadvisable to attempt
this either for the member or the non-member banks, and
we accordingly suggest that after you have exhausted the
sources of information in your own files you return the
forms to us. The information will be useful even though
it is not in all respccts complete.
Very truly yours,
E. A. Goldenweiser
Chairman, ComAttee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
August 10, 1931
Mr. Eugene M. Stevens
Federal Reserve Agent
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Stevens:
Thank you for your letter of August 8th with
the completed copies of Form S showing the quality index
for fifty selected banks in your district.
Very truly yours,
C. B. Rmnmond
For the Committee on Branch,
Group and Chain Banking.
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
At
.
LASALLE STREET
• e.
"
A
‘)
OFFICE OF THE
August 8, 1931
CHAIRMAN OF THE BOARD AND
.‘
'
9,NCeoc•
FEDERAL RESERVE AGENT
45.4;e,
4
<5
.
:•
4
Zr•
'
Ci!
P
/
Federal Reserve Board
Washington, D. C.
Gentlemen:
Attention, Mr. E. A.—Goldenweiser, Chairman,
Committee on Branch, Grcup and
Chain Banking.
Reference is made to your letter of July 16, in which
submitted
a list of fifty banks and requested that an index be
you
prepared for the purpose of measuring the quality of the security
holdings of these banks.
There are enclosed executed forms showing the rating
You will note that
of securities held by these various banks.
where the nonrated bonds aggregate 10% of the total, we have attached
a list of such bonds in order to indicate why these securities could
not be rated.
We trust the forms are properly executed, and if any
additional information is required we shall be glad to furnish it.
Yours very
404
t
/,A
itral
CSY L
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
',V
1
Reserve Agent
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
/.<%
LA SALLE S rREE r
August
Seven
‘:
,di
°C
%
.17k
Federal Reserve Board
Washington, D. C.
Attention : Mr. E. A. Goldenweiser, Chairman
Committee on Branch, Group and
Chain Banking.
Dear Mr. Goldenweiser:
We have now completed the best check we can of the
material sent us on Form C with your letter of July 10.' In doing this
we have uzed every available source of information, but of necessity
have had to rely primarily on examination reports, and these are available to us only for member banks.
Our findings differ widely in some
cases from the data recorded by the Board on the forms sent us, some
cases indicating no affiliations of the kind listed, and others ad(iitional ones.
In still other cases, neither your compilations nor the
examination reports give affiliates such as safe deposit companies of
which we have personal knowledge.
As serious as are these dculties,
I ,,-,the greatest gap in our information lies in the matter of "How
cI$trolled."
In many cases where the examination report gives any information of this character, it is not adequate to enable us to indicate
the precise nature of
eIicro as outlined in the memorandum accompanying your letter of July 10.
With respect to non-member state banks we
have only scattered information with respect to the entire problef
m o affiliations of two banks only and non-banking affiliates.
I questionLI
very seriously Whether the state banking departments themselves could supall the examination reports, which in
ply the data without going through
•
many cases would even then yield little or nothing, and I would hesitate
to ask them to perform the task at the present time.
In view of these facts, the only way in which we could
give a complete and accurate check to the forms sent us would be by means
of an inquiry addressed to all banks in the district.
While in the case !
of member banks such an inquiry would bring in the information, I am reluctant to call upon them for details of the nature involved in Form C,
and I am very doubtful of the wisdom of attempting to procure voluntary
co-operation of non-member state banks.
In any event, I am presenting
the situation to you with the assurance that if the Committee deems the
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Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK OF CHICAGO
111/
—2—
I•
information of sufficient importance to warrant that procedure, we will
In so far as non—member state banks
communicate with all member banks.
are concerned, however, we see no way of gathering the information to
form the basis of any adequate check on the material already compiled or
for the purpose of supplementing it.
Very t
eral Reserve Agent
HGP:73
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Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
August 7, 1931
Mr. H. G. Pett, Manager
Division of Research and Statistics
leuerel Reaerve Bank
Chicago, Illinois
Dear Mr. Pett:
In Ir. Riddle's absence I wish to acknowledge
with thanks your letter of August 6th with its enclosure
of two copies of the August Bulletin issued by kr. Nelson,
Auditor of 2ublio Accounts.
Very truly yours,
C. B. Hammond
For the Committee or Brench,
Group and Chain Banking.
j ;1
zi
1
e
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
August
Six
19 31
Federal Reserve Board
Washington, D. C.
Attention : E±. J. H. Riddle, Secretary
Committee on Branch, Group
and Chain Banking.
Dear Mr. Riddle:
I am in receipt of a letter this morning from
Nelson,
Auditor
of Public Accounts, in which he informs
Yr.
report
carried
in the newspapers, two copies of
me that the
which ycu recently requested, has not been published in book
It seems that it was
or pamphlet form for distribution.
simply an analysis which Mr. Nelson prepared and gave to the
He sends me, however, several copies of the
newspapers.
August 1 Monthly Bulletin issued by his department, which
It is less complete
carries the summary of this article.
than the original, however, and I question whether it will
In any event, I am sending
be of any material use to you.
two copies in response to your request.
Very truly yaurs,
H. G. Pett, .lanager
Division of Research and Statistics
HGi:F7
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
6•
FEDERAL RESERVE BANK OF CHICAGO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
230 SOUTH
LA SALLE
STREET
August
Five
19 31
Federal Reserve Board
Washington, D. C.
Attention : Mr. J. H. Riddle, Secretary
Committee on Branch, Group
and Chain Banking.
Dear Mr. Riddle:
Under separate cover I am returning to you the
"Survey of Banking Competition Offered by Non-Banking Institutions in Ohio," supplied the Committee by the Federal
Reserve Bank of Cleveland.
Thank you very much for letting
me look at it.
Very truly yours)
H. G. :tt, Manager
Division of Research and Statistics
HGP:FB
••
•
FEDERAL RESERVE BANK OF CHICAGO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
230 SOUTH
LA SALLE
STREET
July
Twenty-nine
93
Federal Reserve Board
Washington, D. C.
Attention : Mr. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear
Riddle:
Upon noting in the newspapers several days agc that
State Auditor Nelson had issued a rather comprehensive statement and disCussion of banking and bank suspensions in Illinois, I wrote to his office asking for half a dozen copies,
inasmuch as none had been received in the bank.
As soon as
shall
come,
I
be
very
glad
to
forward
these
you two copies
as requested in yaur letter of July 28.
With kind regards, I am
Very t
ly
ours,
H. G. Pett Manager
Division of Research and Statistics
HGP:FB
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 28, 1931
Mr. H. G. Pett, Manager
Division of Research and Statistics
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Potts
Would it be possible for you to get for me a couple of
oepies of a statement recently cirulated by the ttate Auditor,
Mr. Nelson, regarding banking and bank failures in Illinois
for the past six year*? We shall appreciate it if you can.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 27, 1931
Mr. Eugene M. Stevens
Federal Reserve Agent
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Stevens:
We shall appreciate information relative to
the status of the.Iational Republic Bancorporation under
the merger agreement between the National Bank of the Republic and the Central Trast Company.
Very truly yours,
J. R. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
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Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
• '.::
(-"
i
-,,
0
;
4
3% ZA
July 22, 1931
/
Federal Reserve Board
Washington, D. C.
Gentlemen:
Attention, Mr. E. A. Goldenweiser,
Director, Division of Research
and Statistics.
Receipt is acknowledged of your letter of
July 16, requesting ratings of the fifty banks listed in
These forms will be prepared and
your previous letter.
sent you as soon as possible.
Yours very truly,
1:77
Assistant Federal-R serve Agent. /
CSi L
4
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15)
q
July 16, 1931
Mr. Eugene M. Stevens
Federal Reserve Agent
Federal Reserve Bank
Chicgo, Illinois
Dear Mr. Stevens:
We are sending you a description of an index which has been
devised for the purpose of measuring the Tuality of
the security holdings of banks. The construction is simple and is fully explai
ned in
the attached memorandum. The Committee desires to
have this index
computed for a representative list of banks scatte
red throughout the
country in order to determine something of their invest
ment policies.
On June 25th we sent you the names of 50 banks in your
district with the request that you send us a list of
the securities
held by each at the time of the last examination in
order that we
might make an analysis of these securities. For eaoh
of these 50
lists of securities we should like to have you prepare
an index in
accordance with the enclosed example and the accompanying
instructions. If you feel that the 50 bulks will not be suffic
iently
representative of your district, you might enlarge the list.
we are sending you under separate cover a supply of forms
for use in computing the index.
Very truly yours,
E. A. Goldenweiser
Chairman, Committee on Branch,
Group and Chain Banking.
Enc.
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Federal Reserve Bank of St. Louis
6•
b•
FEDERAL RESERVE BANK OF CHICAGO
230 SOU I-
L_A SAI_LE ST RE ET
July
Fourteenth
1 9 31
OFFICE OF THE
CHAIRMAN OF THE BOARD AND
FEDERAL RESERVE AGENT
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Federal Reserve Board
Washington, D. C.
Attention:
Yr. E. A. Goldenweiser
Chairman, Committee on Branch,
Group and Chain Banking.
Dear Mr. Goldenweiser:
I am
letter of July
to compilation
national banks
will check the
possible.
writing to acknowledge receipt of your
10 and the accompanying material relative
of non—banking affiliates of state and
and affiliationsbeten two banks. We
forms and return them to you as soon as
Very tru
HGPtG
eral Reserve Agent
July
I.
1931
Mr. Eugene Li. Stevens
Federal Reserve Agent
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Stevens:
We are enclosing for your examination certain material on bank
affiliations in your district Which we have compiled on a speoial form
(Form C) for use with the Federal Reserve Board's records on the subject.
It covers seeurities companies and other non-banking affiliates as well
as affiliations between two banks. The Board's existing records on chains
and groups, which are based on reports furnished by the Reserve Banks in
compliance with the Board's letter, St. 6366, November 16, 1929, do not
include information on these two items.
Specifically, this compilation has been prepared to include the
following kinds of affiliates of banks:
(I) All non-banking affiliates of state and
national banks, including securities oompanies,
mortgage companies, invesLment trusts, insuraace
companies, holding oumpanies, foreign banking compauies and safe deposit companies. .In shah case
the name of the bara and the names of its subsidiaries or affiliates are given.
(2) All affiliations between two banks only.
This affiliation may eA.st either through common
stockholding interest, trusteed stook, direct olnership, or other means. The commonest examples of this
are the affiliation of a trust coupany with a national
bank and of a savin,7s bank with a oommercial bank.
The compilation has been made principally from three general soarces-Manual of Banks, the directory if Security Dealers of North America,
and Rand MoNally's Bankers' Directory. Our request is that you check our compilation, make the necessary corrections and additions indicated by your credit
files, examiners, reports, and other sources of information, including rsference where advisable to the organizations themaelves, and return the revised
material to UB as soon as possible.
moody's
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July10,1931
tovens, #2
A memorandum is enclosed which expliAns the terms used in the compilation, and gives such other information as is necessary to interpret and
correct
properly.
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Federal Reserve Bank of St. Louis
Very truly yours,
E. A. Golden4e1ser
Chairman, Committee on Branch,
Group and Chain Banking.
I
inderal Reserve CommittkA
Breach, Group and Chain Senklmg
Jay
1931
AFFILLaTio6S
Explanation of Information coiled on Form!
Form C has been prepared for the purpose of compiling information regarding the following types of affiliates of banks:
(1) All non-banking affiliates of state and national banks, including securities eompaniee, sorbs.
gage oompanies, investment trusts, inseranee *ear
panics, holding companies, foreign banking eempanies
and safe deposit companies. In each case the name
of the bank aad the names of its subsidiaries or
affiliates are given.
(2) All affiliations between tee banks say.
This affiliation mmy exist either through omen
stockholding interest, trusteed stook, dire*
ownership, or other means. The commssist samples
of this are the affiliation of a trust eappogy
with a national bank and of a savings bank mita
a commercial bank.
The information described is intended to supplement the existing
records of the Federal Relemmi Nerd on the subject of Chain and group at.
filiations, 'which at present tailed, oily affiliations comprising three or
more banks. It is desired that the material compiled on Form C be examined
by the Reserve Bank, checked for accuracy and compieteness with its marina
and returned to the Committee. It is assumed that the Asperse Beam already
information in some form for their MIK WON but if not,
home records of
pilhaps a check may be made by reference to eredit file, Sad Siasimisret rei•
ports, or, where advisable, by direct referees. to the ergtaisedisde whieh
are listed.
The oompilation has been made as of eurrest dabs in so far as
possible* Changes and corrections in the informstiea say he made directly
on the flee of the Arm itself if desire& A supply of blank forma is also
enclosed for recording affiliations that need to be added*
Porhaps the most important sleet: item of information is the .loode
of control of affiliates, which is eat down in the second column of Form C.
In the majority of affiliations there is one ben]: or corporation which is
dominant over the other affiliates, and which is controlled not by any
other bank or corporation, but by its own general stockholders. Accordu.
ingly wherever the name of the dominant meMber of an affiliation appears,
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Federal Reserve Bank of St. Louis
the lords "General stockholders have been used in the column headed "Haw
controlled." It makes no different* whether the stock is closely held or
not. Thus, for example, the First National Bank of New York is controlled
by its general steekholders, no far as this study is soneerned. The First
Securities Company, however, is controlled by the Met National through
trusteeship of the securities company's stook. Aseordingly, in the proper
column the words "General stockholders" are used to describe the oontrol
of the bank itself, which ie dominant, and the words '!tock trusteed for
First National* are used to dOOSOibe the control of its affiliate.
In summary, the mosso or Tlanner of control will cone under the
following five hesdea
Ownership of controlling stook by general stockholders.
This applies to the .dominant -umber of the affiliation.
II
Trusteeship of the stook of one mother of the affiliation for the stockholders of another member of the affiliation.
III
Ownership of controlling stock of one member of the atfiliation by another member, the stock being a direct
asset of the latter member.
IV
Ownership of the oontrolling stock of the different members of the eiftliation by an individual or group of in..
dividuals.
V
Control of ome usibee of the affiliation by another member, not through ownership of control of stock, )nit through
the fact that the officers of the dominant meMber are also
officers of the controlled meMber. This applies in the
ease of mutual savings banks.
In the case of II, III, and IV the per cent of a subsidiary's
stock that is owned should be given where it is known, even though the
oompilation as it stands shows only "majority" or "minority" fntereft.
In oases where the per pent of stook owned is not known, the terms,
"minority interest" or 'tmajority interest" should be used.
Examples of designations of the five different forms of control
as shown in the compilation follow:
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Federal Reserve Bank of St. Louis
I
"Oeneral stockholders"; as in the case of the Chase National
Bank, indicating that it is the dominant member of the Chase
affiliation.
II
milteektmmteed for Chase National C; indicating how the
Chase Securities Company is controlled.
III "Nhjority interest owned by Irving Trust"; as in the case
of Irving Investors Mensgement Company.
IT *Majority interest owned by same stockholders
.
; as in the
ease of the Mem Omaty National and the Mlbspac National, the name of the members of the affiliation Using
braehmeedo
V
*Base Mamegement*; as in the ease of Bath National Bank,
and Bath Savings Institution (a mutual savings bank) of
Bath, Beim.
In the abeam* of definite knowledge it is often diffieult to tell
Alether a given interest should be called an investment or an affiliation.
Affiliation implies participation in memegement, whereas investment, as a
rule does not. If aelmmah as 25 per mot of the stook of a bank or corporation is owned, thereftre, the presumption is strong that there is participation in memegment, and that the interest may be called an affilia.
tion. But if there is lees than 25 per sent control there is mush more
question whether te mil the interest one of affiliation or simply invest.
ment. In any given ease where the facts are known as to the extent of
participation in management the interest should be classed amordingly,
regardless of the per client of control; but in the absence of knowledge
of sueh facts, the interest should be considered an investment if the
'antra is less than 25 per sent. 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 sense. The term affiliap
tion, which is anon used in a general sense implying the fast of a 000.
motion, is here used in a particular sense as designating the peep or
system itself 'shish is Aade up of the affiliates. Mae the *National
City affiliation" consists of the National City Bank, the National City
Company, the City Bank Farmers Trust Ompamy, International Banking Corporation, etc., all of them serporatime being *members of the *Mlle.
Um.' The National City Beek is the *domimmt member of the affiliation,'
and the others, directly or indirectly, are sieentrolled or subsidiary mem.
hems.' The term affiliation as used therefore will apply to the ease of
two institutions linked together as well as to a *group* or *chain* of
any number of institutions.
The families of the masers§ listed has been indieeted as *bank*
which mem else a trust sempmmy emseged in commercial banking, "securities,
'holding' 'insurance," leertgage," etc.
The information regarding the state issuing the charter and the
Charter is desired for non-banking affiliates only and is not
the
date of
in
the 'ease of banks.
necessary
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Federal Reserve Bank of St. Louis
It is desired that the figures for capital stock and loans and
investment be supplied by the Mee*/ Reserve Bank. In the ease of banks
the figures should be taken free the Sum& call report, if praetioables
In the ease of affiliates, for which capital stook alone is to be given,
the figeree should be -taken from the date nearest the Maroh call report.
It should be made olear in all cases whether it is the bank or
a non-banking affiliate that holds oontrol. It is ale, nsOsesery to in.
dioate all intermediate means of control, as in eases 'here a eencern that
has a subsidiary is in turn the subsidiary of another.
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
July 3, 1931
Mr. C. S. Young
Assistant Federal Reserve Agent
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Young:
We acknowledge with thanks- receipt of your letter of July 1st enclosing photostatic cupiE.s of the investment lists of the fifty selected banks in your district.
Very truly yours,
J. R. Riddle
Secretary, CoAnittee on Branch,
Group and Chain Banking.
1-4
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
bo
41,•
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
SALLE STFREEM
July 1, 1931
Federal Reserve Board
Washington, D. C.
Gentlemen:
Attention, Mt. E. A. Goldenweiser,
Chairman, Committee on Branch, Group
and Chain Banking.
Reference is made to your letter of June 25
in which you submit a list of fifty banks in our district
and request a list of bonds and securities held by each
of them at the tine of the last examination; also a list
of total loans and investments of each bank.
There are enclosed lists as requested.
lours very truly,
Assis ant
CSX L
a
eservo Agent.
7
June 25,
Mr. Eugene M. Stevens
Federal Reserve Agent
Federal Reserve Bank
Chicago, Illinois
Dear Jr. Stevens:
6e are enclosing herewith the names of 50 banks in
your district and, woWd appreciate it if you could send us a
list of VA) bonds, securities, etc., held by each of them at
the time of the last examination. The Committee is undertaking to !aake an analysis of the investment holdings of a representative group of banKs throughout the country in order to
determine their Lmest:ent policies. These banks have been
selected at random ih order that they may be representative.
Perhaps the investaent list in each ease, whioh usually appears on page 7 of the National bunk examiner's report, oan
be photostated t a minimum of time and cost.
In returning these lists, it would be of much assistance ifqou could give the total loans and investments of eaoh
bank in order that we 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 doard's Fora 105a.
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Federal Reserve Bank of St. Louis
Very truly yours,
A. Goldenweiser
Chairman, Committee on dranch,
Group and Chain Banking
t.
iftx, Selected Natiom.1 BankD
al Reserve District No, 7
?eder
in
I. Batavia N. B.
2. Casey N. B.
3. Foreman-State N. B.
4. Rogers ?ark U. B.
5. N. B. of 0o/chester
6. City N. 3.
7. First E. B.
8. First Y. B.
9. First E. B.
10. First N. B.
11. First N. B.
12. First N. B.
13. First N. B.
14. First N. B.
15. First N. B.
16. First N. B.
17. First N. B.
18. Old N. B.
19. First N. B.
20. Bright N. B.
21. Greensburg Y. B.
22, Dearborn E. B.
23. First E. B.
24. Farmers N. B.
25. Citizens N. B.
26. First H. B.
27. First N. B.
28. First L. B.
B.
29. First
30. First N. B.
31. First ::. B.
32. First N. B.
33. First N. B.
34. First E. B.
35. First N. B.
36. First N. B.
37. Sheldon N. B.
38. First N. B.
39. First N. B.
40. First U. B.
41. First N. B. & Tr. Co.
42. City N. B.
43. First N. B.
44. First N. B.
45. Burlinion N. B.
46. First N. B.
47. Firmers N. 3.
48. N. B. of Cone roe
49. First N. B.
50. First N. B.
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Federal Reserve Bank of St. Louis
Batavia,
Casey,
Chicago,
Chicago,
Colchester,
Dixon,
Eureka,
Grand Ridge,
Humboldt,
Leland,
.:Larengo,
.11orrison,
Palatine,
Rantoul,
Secor,
Thomasboro,
Wilmington,
Indiana
Bluffton,
vi
Columbus,
It
Flora,
11
Greensburg,
Lavrenceburg,
ti
• onterey,
Remington,
South Bend,
Winamac,
Bellevue,
Clarion,
Davenport,
t/
71dora,
Gladbrook,
vi
Hull,
Lake Park,
vi
-errill,
Oelwein,
Radcliffe,
Sheldon,
Thompson,
Whiting,
Michigan
Blissfield,
y
Flint,
Lansing, v
1youthe V
,
'
01
Utica, y
Wisconsin
Burlington,
Janesville,
Lake Geneva,
Xilwnukee,
Port Washington,
Viroqua,
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Federal Reserve Bank of St. Louis
0
0
June 17, 1931
Mr. H. G. Pett, manager
Division of Research and Statistics
Federal eserve 9ank
Chicago, Illinois
Dear Mr. Pett:
In accordance pith the request containcd in your
letter of June 8th we forwarded to you on June 11th 500
copies of the "Analysis of Bank.Earnings" schedule. We
have just received an additional supply of this form from
the printer and are sending you under separate cover the
remaining 6,500 as requestcd in your letter of the 13th.\
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
/4
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
June 15, 1931
G. Pett, Manager
Division of Bossard& & Statistics
Moral Reserve Bank
Chicze„ Illinois
Mr. no
De
Pett:
We acknowledge with thanks your letter of June la
o:Iclosing lir. Colton's exilanation of the manner in which 44-.various types of claims were classified on the lova suspe:schedules.
Very truly yours,
J. R. Riddle
Seeretary, Committee on Branch.
Group and Chain Banking
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
June 15, 15,
Mr. H. G. Pett, Menager
Division of Researeh & Statisties
Federal Reserve Bank
Chicgo, Illinois
Dear Mr. Pett:
We acknowledge with thanks your letter of Juno 12th
enclosing qr. Colton's explanation of the manner in which the
various types of claims were classified on the Iowa suspension
$chedules.
Wry truly yours,
J. H. Riddle
Secretary, Committee on Br
Group and Chain Banking
b•
•
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
June
Thirteen
19 3
Federal Reserve Board
Washin.zton, D. C.
Attention : Mr. J. H. Riddle, Secretary
Committee on Branch, Group
and Chain Banking.
Dear Mr. Riddle:
Thank you for your letter of June 11 and the 500 Analysis
of Bank Earnings forms accompanying it.
I find that our computing department rather materially
under-estimated the total number of forms we shall need before this
Iowa job is completed.
There will be seven years, with approximately 1,000 banks per year, so that 7,000, rather than 4,000 previously requested, will be the maximum we shall need.
I am sorry
that the 4,000 was given you erroneously.
There is no hurry about
the 7,000, as it will be some time before we have used up the 4,000
you are arranging to get U.S.
Very truly yours,
H. G. Pe , Manager
Division of Research and Statistics
HGP:FB
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
•
•
•
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
;
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Federal Reserve Board
Washington, D. C.
Attention : Mr. J. H. Riddle, Secretary
Committee on Branch, Group
and Chain Banking.
Dear Mr. Riddle:
I have received a letter this morning from Mr.
C. R. Colton, Legal Clerk of the Iowa Department of Banking,
a copy of which I am enclosing.
This is in response to my
inquiry, based on your recent request for further information regarding the nature of figures in Sections 7, 8, 9,
and 10, of the bank suspension schedules for Iowa.
Very truly yours,
H. G. Pett, Nan er
Division of Research and Statistics
HGP :FB
Err 1.
1,1
L. A
„State of glotua
peintrtment of Part1in.9
pre Atoines
ANDREW
SUPERINTENDENT
W. 0. REED
DEPUTY SUPERINTENDENT
10, 11
_
_.
.
:2, ,„ :7C
,
f.
P,Ft-,1::!,0 you'
10
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
brc
•,":1_:•,
- • - Si
• ••r
'
•
r other.,
be United 'State:
:Debts due cr tax4s2•e se
:the State, cOnntY, crOtber
'30 ,DetitS '0WinGto enPlcYe
-section. /1./.7.?.
and trust ftuias. ..thW 44th G. A. enacted See
which becaiS.effective''..9.Part publi4ation
the requireeleYite of this Seotion*ar4 also
•_
jri
it 29-e1 or the, revisea banking
9, end all claims that met
ilthsrred claims.
General claims are those the court 'will not alloW- as ,depositors claims or
a preferred claim, emdi generally they are for supplies, miscellaneous expenses and
salaries in excess of $100.00 earned dur:nt,; the last ninety days, and all unpai4
salaries that are three months or more past due, and these claims share only in
the 100;;
1 assessment, as ordered by the court after the bank closes and ooll5cted
by the receiver, alon:, with denositors claims accordir„; to their proportionate
share in the assessment if the' depositors claims have not been paid in full. However,
eve beel paid in full then the assessmnnt is distributed
&mon:: the ce:-.e.1-,1 credA ors',
the:! are p Lid in full, the balance is distributed
if the depositors claiim
T. believe the foregoin.; explallation will enable Lir. Riddle to classify the
•
Tor. rnorts as all he needs to do is to chance the words "..;ecured claims" to
reardirg
secured
"pepositors claims", as our records do not contain the information
'rants the amount cr" ostal savilv,s deposits for
however, if
Dcmart-lerf of -.ashfinton D. C. could supply him will this
tbe
information.
ccrcerntiv re,npered anhs r reerz,arized
eec!I.on 7 of th
Tecarc..
bans, -:7i3h to say th)t wherever 'the schedules show that a certain percent of the
deposiors claims were assumed by a new bark, a-•1 tbe balance trustee,, this means
that the porcertae assumed by th,2 new ban7.7 is available to the deposttors at once,
and t.7. nercert trusteed will be paid to c,h.e denpsitors as the assets that are
trustee:, are licyidated.
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Federal Reserve Bank of St. Louis
this gives you the desired information, we wish to. remain
Yours: very truly
,Legal Cler•
,
7.
Has this bank been reopened?
If so give:
Date of reopening
Name under which reopened
Loss to depositors on:
Amount of loss
Depositors claims
Per cent of loss
to claims
•
Preferred claims
General claims
Total
OR
7.
Has this bank been reopened?
If so give:
Date of reopening
Name under which reopened
Loss to depositors on:
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Secured claims
Depositors claims
Preferred claims
General claims
Total
Amount of loss
Per cent of loss
to claims
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
June 11, 1931
Ir. H. G. Pett, Lianager
Division of Research and Statistics
Federal eserve Bank
Chicago, Illinois
Dear :Ir. ?eat:
Your letter of June 8th requesting ,,000 additional
the "Analysis of Bank Earnings" form has been reof
copies
are enclosing herewith 500 copies of this form
We
ceived.
use, which is all that ..ce live on hand
immediate
your
for
However, we are having an additional
time.
the
present
at
and
shall forward you the remaining 3,500
supply printed
days.
within a few
Yery truly .yours,
J. H. Riddle
Secretary, Committee on '9ranch,
Group and Chain Banking.
Enc.
C
•
6•
FEDERAL RESERVE BANK OF CHICAGO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
230 SOUTH
LA SALLE
STREET
June
Nine
19 31
Federal Reserve Board
Washington, D. C.
Attention : Mr. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear Mr. Riddle:
nth reference to your letter of June 5 to
Mr. Stevens, in acknowledgment of the B forms, he suggests that I write you to the effect that there have
been no private banks in Asconsin since about 1903.
Very triil
yours,
H. G. Pett, Manager
Division of Research and Statistics
HGP:FB
gip fliELEGRAM
•
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
44+0
RECEIVED AT WASHINGTON, D. C.
if
Nee
,
41. /11
Nt#P4'
k)luenwelimi
Your telegram this date number two first national bank .ch-rokee
iowa number seven blymouth exchange bank plymouth wisconsin
VcDougal
1P5Pp
60t•MNVIIVT PRIXTIXO 0/1101: Ift•
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Federal Reserve Bank of St. Louis
2-11901
4)•
•
TELEGRAM
Form 148
FEDERAL RESERVE BOARD
LEASED WIRE SERVICE
WASHINGTON
2-9454
oro
tune 9, 1931
IcDougal, Chicago
Please wire names of second and se7enth failed banks whose
case histories were included with your letter of Febrvvry 16th.
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Federal Reserve Bank of St. Louis
GOLD74.%
jiR
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
June
Eight
19 31
Federal Reserve Board
71a8hington, D. C.
Attention : Mr. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear .?,gr. Riddle:
We are proceeding at once in the preparation of
Tables I-e, II-e, and V-e, for Iowa state banks for the years
1924 to 1930, inclusive.
Mr. 'lamer of the Iowa Bankers Association, through whom we receive the state bank data from the
State Banking Department, assures me that it will be a matter
of only two or three weeks before the 1930 material is available to us, so that I anticipate no delay on that year.
Our supply of forms l'Analysis of Bank Earnings!'
is exhausted, and before we complete the Iowa state bank compilation we shall need approximately 4,000 of these.
Consequently,
I shall appreciate very much your sending me as many as you can
immediately, and at rour nonvenienne, within a month or so, supplying us with the balance of the 4,000 mentioned above.
Very tr
y
H. G. Pett, Manager
Division of Research and Statistics
IIGP:FB
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Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK OF CHICAGO
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Federal Reserve Bank of St. Louis
230 SOUTH LA SALLE STREET
June
Eight
19 31
Federal Reserve Board
Washington, D. C.
Attention : Mr. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear Yr. Riddle:
This is to acknowledge your_letter of June 5 indicating your need for still further information as to the nature
of the material reported on the Iowa suspension forms in Sections 7, 8, 9, and 10.
I am taking the matter up again with
Yr. Colton and, if necessary, I will make a trip out to Des
Mines in an attempt to clarify the situation so that their
forms may be of some use to the Committee. I am very sorry
that thus far the Iowa State Banking Department has been unable to make themselves clear on these points.
Very truly yours,
H. G. Pett, Manager
Division of Research and Statistics
HGP:FB
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Federal Reserve Bank of St. Louis
June 5, 1931
Mr. 3ugene M. Stevens
Federal Reserve Agent
Federal Reserve Bank
Chicago, Illinois
Dear Mr.
tevens:
Receipt is acknowledged of your letter of June 3rd
enclosing the B Forms which classify the number of active
state and private banks in e:ich state in your district on
June 30, 1920, 1925 and 1930.
Since you did not enclose Forms 3-5, 3-6, and 13-9
for Wisconsin, 7e assume there are no private banks in that
state..
lery truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
t:14
June 5, 1931
Mr. n. G. Pett, Manager
Division of esearch & Statistics
Federal Reserve Bank
Chicago Illinois
Dear Mr. ?ett:
Your letter of May 49th(relative to the types of claims reported
on the Iowa suspension schedules as scoured, preferred and general "as duly
received. The euotations from Mr. Cotton's letter on this subject are
practically meaningless to us and re should like, if possible, to get a
more satisfnctory explanation.
According to our original instructions for filling out the schedules, information on deposit claims only was requested in sections 7, 8,
9 and 10 of the schedule. If the Iowa Banking Department has not adhered
to these directions in su2plying the data on Iowa suspensions, wit should
like to know what the other claims are.
Mr. Colton, for example, states that secured claims represent
"all classes of deposits," that preferred claims represent "claims which
have been approved by the court and ordered paid in full at once," while
general claims represent "liabilities .which can not be classified as a
deposit liability or anproved as a preferred claim." Are we to understand from this explanation that the amounts reported as preferred and
-eneral claims are not deposits at all but other types of liability?
If so, exactly what do they represent and .Alat is the basis of distinguishing them from one another? What are the requirements of the
court for establishing a preferred claim?
sholld like to know, moreover, why the great majority of
claims are reported 15 secured. Certainly the bulk of individual deposits in Iowa banks, both deman, and time deposits, are not secured
in the sense that specific collateral or bond is pledgei against them.
That is there about them that warrants classifying them as secured
claims?
The general plan of classification which has been followed in
reporting claims on the Iowa schediles appears quite unusual and not at
all similar to that followed in other states. The usual classification
which we have found in the majority of states is as follows:
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Federal Reserve Bank of St. Louis
June 5, 1931
Mr. H. G. Pett, #2
Secured claims--deposits of the United States, the state, and in some
cas-s deposits of political subdivisions of the state,
all of which are secured by the deposit of specific
collnteral or bond.
Preferred claims--trust funds, unpaid drafts, etc.
7reneral claims--all indiIidual ieposits such as are made as a matter of
routine and custom _la the ordina:y affairs of a bank
and its clientele. This class composes the greater
part of all deposits.
I trust 7;s1 have made clear the difficulties which the Iowa
schedules present. We are unable to understand nmalir. Colton's explanation what the different types of claims represent or Aly the5# mare
classified in the manner reported on the schedules. In conseouenae, we
are unrible to draw intelligent coAparisons with other states or to summarize the data for ge :
- graphic areas. Anything you can do to olarify
these matters will be greatly appreciated.
In connectior Ath a numbr of the reopened banks in 'WM,
it is reported in i!ection 7 of the schedules that say 75% of depositors' -laims were assumed 1): the new bank and 25% by trustees. Does
this mean that in such oases depositors sustained no loss, or are we
to understand that, as in other states, a certain proportion of the
old bank's assets were trusteed, the depositors to r- alize whatever
the assets pay out?
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Federal Reserve Bank of St. Louis
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
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FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA S ALLE STREET
June
Third
19 31
Federal Reserve Board
Washington, D. C.
Attention : Mr. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear Yr. Riddle:
I am enclosing the data asked for by the Committee on the
nuthber of active state and private banks in each state in this district as of June 30, 1920, 1925, and 1930.
As I believe :72.. Pett intimated to you when you were here
some time ago, considerable difficulty has been encountered in proIn the case
curing reliable figures on which to base this study.
state
banks,
total
loans
and
Iowa
investments
in
1920,
as shown
of
about
6
are
per
cent
less
than
those
given
in the
tabulation,
by our
did
not
publish
any
individual
bank
data
prior
Iowa
state abstract.
Rand
to 1921, so that for 1920 we were under the necessity of using
McNally Blue Book figures, which check rather closely with state bank
reports for individual banks in 1921 after making some minor adjustThe Iowa abstract for 1921 shows a decline from 1920 by apments.
proximately the amount of our discrepancy.
In the case of Indiana private banks, our total loans and
investments is considerably higher than that shown in the state abstract, a difference amounting to about 3 per cent in 1920, 4i per
We had to rely principally
cent in 1925, and 9i per cent in 1930.
as state reports give
inasmuch
Book
Blue
figures,
McNally
Rand
upon
Prior to 1926, the
individual bank data only for total resources.
private
banks
had practically no
showed
that
abstracts
Indiana state
investments
for
trusts
had increased
1930,
trust functions, but in
It is quite possible that the
to one and one-half million dollars.
Blue Book may have included trust funds in total loans and investments throughout the entire period, and that the gain in this type of
investment may account for the greater discrepancy in 1930. However,
a careful re-check of the basic data has failed to disclose the particular banks or group of banks which may have included trust functions
Past experience has shown us that the state abstracts
in their reports.
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Federal Reserve Bank of St. Louis
-2-
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FEDERAL RESERVE BANK OF CHICAGO
.
•
for Indiana cannot be relied upon, this being particularly noticeable
in 1930.
Subject to limitations put upon us by inadequacy of trustworthy basic figures, we feel that these compilations will indicate
Many times we
to the Committee the trend in the various groups.
found the individual reports as carried in the state banking departments' publications widely different from Rand rcNallyts, and it was
difficult in many cases to reconcile.
A list of private banks for Which we have been able to procure figures is attached to the tables of the several states where
these have been or are in existence in the period covered by this
study.
Yours v
ederal Reserve Agent
HGP:FB
Encl.
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
June 3, 1931
kr. H. G. Pett, -anager
Division of Research and Statistics
Federal Reserve Bank
Chicago, Illinois
Dear 2.:r. ?ett:
;- :ith reference to your letter of June 1st, we
should be glad if you would let us have Iowa state figures
on the earnings project for the years 19L4-1929 as soon as
you can. Figures for the year 1930 could be allowed to
work themselves out and come along when they are ready.
Please note that we are asking at this time only for
Tables I-e, II-e, and V-e.
Vefy truly yours,
J. H. Riddle
Becretary, Committee on 3ranch,
Group and Chain Banking.
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Federal Reserve Bank of St. Louis
June 2, 1931
Mr. H. G. Pett, :,:anager
Division of fiesearch and Statistics
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Pett:
We have not yet received for the states ih your
district the information raiuested on the 3 forms submitted
with Dr. Goldenweiser's letters of November 12, and ::ovember 22, 1930, This includes the classification of active
state and private banks according to size of loans and investments, size of capital stock, and size of towns.
We have now reached a stage i the analysis of
our material where we need this data, and we shall greatly
appreciate it if you can find same way to exlydite its collection.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
June
First
19 31
Federal Reserve Board
Washington, D. C.
Attention : Mr. J. H. Riddle, Secretary
Committee on Branch, Group, and
Chain Banking.
Dear Yr. Riddle:
This is to acknowledge your letter of May 28, suggesting
that we put together earnings and expense figures for the state banks
of Iowa for the years 1924-1930 on a basis comparable to the earnings
study covering all national banks Which we recently completed for the
Committee.
Before proceeding with the study, as you sugezest, I wish
department and
to say that owing to extreme pressure both in our
Ii
in the Iowa State Banking Department, the 1930 figures on Iowa banks
have not yet been recorded.
Normally this is done early in the
spring, so that we can prepare for the Iowa Bankers Association a
compilatiIn for distribution to taeir membership at the time of their
convention early in June.
This has been impossible this year, how.ever.
I am taking steps immediately to have the 1930 data made available to us, but it will probably take 1.7r. Andrew several weeks to do
and with vacations in our awn department, it will probably be at
least the first of September before we could send the figures to you.
If this is not too late for the Committee's use, we shall be very glad
to proceed immediately with the earlier years, with the expectation
that the 1930 material will reach us within a reasonable time. 'fill
you kindly let me hear from yau on the desirability of proceeding on
this basis? It may be that we can squeeze it through earlier but I
seriously doUbt it, and if there should be any hitch on Mr. Andrew's
part, it might take longer.
Very
HGP:FB
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Federal Reserve Bank of St. Louis
H. G. Pe , Manager
Division of Research and Statistics
FEDERAL RESERVE BANK OF CHICAGO
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Federal Reserve Bank of St. Louis
230 SOUTH
LA SALLE
STREET
June
First
19 31
Federal Reserve Board
Washington, D. C.
Attention : Mr. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear Mr. Riddle:
This is to acknowledge your letter of May 29.
I am taking up with Yr. Beck, through Mr. Colton of the
Iowa State Banking Department, the question raised on the
Randall State Bank, and also asking them, if possible, to
give explanations relative to the differences in percentages as reported on the schedules of the banks listed and
those obtained by dividing payments by claims.
Very tru
yours
/1140110015/
. G. Pe , Yanager
Division of Research and Statistics
HGP:73
1ay 29, 1931
-r. H. 0, Fett, Manager
Division of Reeeareh 6 Statistics
Federal Reserve Batik
Chicago. mImola
Dear Mr. Pett:
II ashnosiodee with thanks your letter of May 25th emslesing
revised sehedules en, tem Isms banks ocacarning 'shish we made inquiry as
to the peresstagos of poynowts to olaims shown on the original reports.
Mith rospost to Mr. Buses sommonho on the Randall Savings
Bank, it is oar radirstandingthst the assmah et $100.175.67 shown
payments includes a *vitas smeumt of onsets sod that when this
is deducted the persomtago figures out coreectly at $O rather thau-,
which in obtained by actual diviion of the payments ay. claims as originally reported. However, if this is true, it mould appear that payments
should be reduced and enlists inereased by a corresponding amount. The
revised schedule shish we received does not mike this Change. Have we
:lisundorstood Lx, Beekta explanation or was it impossible to segregate
the amount of claims which were 'eliminated ty trade! The same points
apply in the case of the Citizens Savings lank of Quimby, Iowa.
In our original corrcspondenee with you relative to the dif!arenas in poresotogis as reported on same of the schedules and those
obtaino,1 kr dividing payments b: claims, we indieated that there were
a good many caeca of this kind. In reply you asked us to seed the
name of two or three banks of which this was true so that you mild
obtain an explanation of the discrepancies. The ton banks listed in our
letter of May 5th did not include those given rlow:
Closed
1-19.47
4140holt
Farmers Saving* Bank
3- 1-24
Magnolia
Uagnolia Ravings Rank
6- 4-24
Bagley
Farmers Savings Bank
6- 1-26
Do Soto
De Soto Savings Bank
Mayville
2-27-26
Lddyville Savings Bank
12-20-24
Miaborg
Farmers Saving* Bank
6-29-25
Ilona
State Savings Bank
Langdon
11-15.4X
Farmers Savings Bank
6...
Floris
Florio Savings Sank
Forest City
1-30-28
Winnebago County State Bank
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Federal Reserve Bank of St. Louis
May 29, 1931
H. G. Mt, #2
Citizens Savings Bank
Peoples State Bank
.:xohange State Bank
asps,
maker
Closed
4-6-60
6-26-26
10- 4-27
We should appreciate having similar explanations Ss this additional list
of banks.
Very truly yours,
rf
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Federal Reserve Bank of St. Louis
J. H. Riddle
Seoretury. Committee on Branch,
Gro:Ai, ,d chain Banking
S.
•
•
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
May
Twenty-nine
19 31
Federal Reserve Board
Washington, D. C.
Attention : Mr. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear Mr. Riddle:
Quoted below is the information regarding the character
of the data reported on the Iowa bank suspension schedules, Section 10, received this morning from rt. C. R. Colton, Legal Clerk,
Iowa State Department of Banking:
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Federal Reserve Bank of St. Louis
"We wish to advise that the amount shown opposite secured claims represents all classes of deposits, and the
amount opposite preferred claims represents claims that
have been approved by the Court and ordered paid in Pull
at once.ilThe amount shown opposite general claims represents
liabilities Which cannot be classified as a deposit liabi
ese claims
Ara ;oprove' as a prp_ured clalap an
p.
cipate along with other deposit Calms in the onehundred per cent assessment ordered upon the stockholders
as collected by the receiver."
ruly 410
EV/
H. G. Pett, Manager
Division of Research and Statistics
HGP :FB
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Federal Reserve Bank of St. Louis
Nay 28, 1931
Mr. H. G. Pett, Manager
Division of esearch and Statistics
Federal T,eserve sank
Chicago, Illinois
Dear Mr. Pett:
In your letter of August 13, 1930, you were good
enough to indicate your willingness to put together earnings
and expense figures for the state banks of Iowa for the years
1924-1930 on a basis comparable to the earnings study covering all national banks from 1926-1930, which has now been
completed by you.
In case your figures for Iowa state banks are such
that you could make up for us rabies I-e, II-e, and 7-e for
each of the years 1924-1930, we should be glad to have you
do so.
Very truly :,,ours,
J. H. Riddle
'JeorlaarY. CaaLittee on Branch,
3roup and Chain Banking.
13
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Federal Reserve Bank of St. Louis
;:ay 26, 1931
1.:r. Eugene Y. Stevens
Federal Reserve Agent
Federal eserve Bank
Chicai4o, Illinois
Dear nr. Stevens;
Receipt is acknowledged of your letter of nay 22nd
enclosing the following tables: Tables 'Vim and Y-e showing
mean deviations from the district :iverage4. in the ratios for
the year 1930; Tables IV-e and 7-e showing typical and total
ratios for the five states of the district in the year 1930;
revised Tables IV-e anu 1-e for Indiana %nil Iowa for the year
1930 and Table V-e for Illinois.
Very truly yours,
J. H. Riddle
Secretary, 00.nmittee or Branch,
Group and Chain Banking.
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Federal Reserve Bank of St. Louis
•..lUgeno
Federal Re3orve Agent
Feiaral Reserve Bank
Chicago illinois
Dear Mr. Stevens:
Receipt is acknowledged of your letter of
May 20th enclosing the eleven sehednles on failed
banks which were forwardud to you by Ur. Bruce Townsond, Director of Receiverships of the Iowa State
lanking Department. As you suggest, I shall write to
Mr. Townsend directly and acknowledge receipt of these
schedules.
Very truly yours,
J. H. Riddle
Secretary, Committee on Bran
Group and Chain Banking.
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Federal Reserve Bank of St. Louis
1931
Mr. awe M. Stevens
Amaral Moservo Agent
Moral ',serve Bank
Chicago, Illinois
Dear Mr. Stevens:
Vie acknowledge with thanks the reoeipt of
your letter of May 22nd with the enclosed report on
the competition encountered by Seventh district banks
4177-o• nc,r-rkinr, types of financial institutions.
Very truly yours,
J. H. Riddle
Secretary, Committee on Brans:ha
Group and Chain Banking.
FEDERAt RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
ray
Twenty-five
19 31
Federal Reserve Board
Washington, D. C.
Attention : Yr. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear 7.-r. Riddle:
I am handing yau copies of a letter received today from
Mr. C. R. Colton, Legal Clerk, Iowa State Department of Banking,
and a memorandum to him from Mr. Beck, Assistant Director of Receiverships, relating to schedules of several failed banks which
we returned to them for explanation of the differences in the percentages as figured from the anount shown under Sections 9 and 10.
e are returning these to you with rr. Colton's revisions.
I have asked 7 -r. Colton to supply adaitional information
as to what is represented by the amounts reported as secured, preferred, and general claims, respectively, under Section 10 on banks
completely liquidated.
He did not reply to this in his letter of
May 23 and I am making another attempt to get the information from
him.
As soon as it is received I will forward it to you.
Very truly yours
H. G. ett, M ager
Division of Research and Statistics
HGP:FB
Encl.
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Federal Reserve Bank of St. Louis
MEMORANDUM
May 22, 1951
TO MR. COLTON:
Herewith I hand you the various reports on bank
suspensions which you left with me a few days ago.
On the Mid Nest State Bank of Sioux City, Iowa, reported we find that an error was made in the percentage reported as paid
on deposit claims, which is listed at 54%. The correct amount as shown by
our books is 41%.
The report of the Randall Savings Bank is correct
showing payment of 68% to deposit claims. This percentage will not work
out with the amount of claims as shown in the amount of $116,457.70 as
after the payment of the first dividend in this receivership we eliminated
a large number of claims by trade which reduced the dei)osit claim liability
in a substantial amount. The amount of $109,175.67 shown as payments on
deposit claims includes the amount paid on claims later cancelled and this
is the reason for the percentage not figuring out on the claim liability
as reported.
The same is true on the State Bank of Neola, Neola,
Iowa.
On the Farmers Trust & Savings Bank, Castana, Iowa,
the report is in error as he checked up on the wrong bank. The liabilities
of this bank have not been fully determined by the court and nothing has
been paid to creditors.
In the Washington report an error was made on the
deposit claims and same was shown as 65% while the correct amount or percentage was 63%.
In the Mitchell County Savings Bank, Osage, Iowa
the percentage paid to depositors was reported as 91%. This item should be
95.6% as an error was made in picking up this amount on the records.
On the Anthon State Bank 40% was shown as the percentage paid to deposit claims. This percentage was reported in error as
50% has been paid to depositors up to the time this report was made.
On the Conesville Savings Bank report theke appears
to be an error in the amount of deposit claims on which dividends were paid
and transposition of the figures of Preferred and General Claims. This report
has been corrected as shown and will work out with the figures and percentage
given.
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Federal Reserve Bank of St. Louis
Paul R. Beck.
lair of Jioion
Pepartment of panhing
pre Airlines
L. A. ANDREW
SUPERINTENDENT
W. 0. REED
DEPUTY SUPERINTENDENT
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Federal Reserve Bank of St. Louis
,
-1:t,,
1.•
)'
s
•
t
,
t'
:
•
•
•
•
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
Federal Reserve Board
':iashington, D. C.
Attention : Mr. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear Mr.
I am enclosing the final portions of this bank's
contribution to the Committee's study of earnings and expenses
of national banks tn this district, 1926 to 1930, inclusive.
This material includes:
Tables IV-e and V-e, showing mean deviations from the
district averages in the ratios for the year 1930
Tables IV-e and V-e, showing typical and total ratios
for the five states of the district in the year 1930.
r ised Tables IV-e a
I am also sending you930
and Table IV-e for
,
,
//-for Indiana a
for the year
o
after the first
necessary
beerl'amm
having
es
c
inois, s ight
set of these was forwarded to you a short time ago.
Very trui
'rear
10(1 Reserve Agent
HCP:FB
Encl.
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Federal Reserve Bank of St. Louis
1
••
41•
FEDERAL RESERVE BANK OF CHICAGO
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Federal Reserve Bank of St. Louis
LA SALLE
230 SOUTH
STREET
Twenty-two
19 31
Federal Reserve Board
":ashington, D. C.
Attention : Er. 3. A. Goldenmeiser, Chairman
Committee on Branch, Group, and
Chain Banking.
Dear Yr. Goldenweiser:
I am enclosinE a report on the
competition encountered by Seventh district banks from
non-banking types of financial institutions, requested
in your letter of March 26.\
Very t
eral Reserve Agent
TTGP:FB
&.c1.
FEDERAL RESERVE BANK OF CHICAGO
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Federal Reserve Bank of St. Louis
230 SOUTH
LA SALLE
STREET
Federal Reserve Board
7;ashington, D. C.
Attention : Mr. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear Mr. Riddle:
, I received this morning from Mr. Bruce Townsend, Director of Receiverships of the Iowa State Department
of Banking; eleven schedules filled out as a result of your
conference with him.
In accordance with your letter to me
of April 4, I am forwarding these to you. I assume that
you will wish to acknowledge them to :Tr. Townsend and I, .
therefore, have not done so.
ours,
,
I
/
;,,r.- 'Tr%fer,Vrtri
'4411111P
Oe
e
f ral Reserve Agent
HGP:FB
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Federal Reserve Bank of St. Louis
YtEry 18, 1931
mr. .i.
G. Pett, L:anlger
DivIsion of risearch and Statistics
Federal Reserve 3ank
Chicago, Illinois
Dear Mr. ?ett:
rIknowledge with than)cs your two letters of :,;ay 12th
and 13th respectively relative to the suspension schedules from
Illinois and -Asconsin Allah arrived unier ,epferate cover. ::(1
have also received your letter of Liu 16th enclosing seven supple -l'ntftry scheAules from :isconsin. The schedules frau both
states hr,ve been checked and found to agree vith the suspension
records of the Division of 3ank Operations.
In their present form the Illinois schednlz,s ae muoh
more satisfactory than before revision and we trust you will express our appreciation to State Auditor nelson for his service
In providing us xith this additional information.
Very truly yours,
t7. A. Ridula
Secretary, loxmittee on Branch,
iain 3ankin4.
Geoup anu
SI
(
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FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
w
LASALLE STREET
May
7A
I'
19 31
‘
0
1evep
:
7ki
4'4
Federal Reserve Board
Washington, D. C.
Attention : Mr. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear Mr. Riddle:
In further connection with the Committee's desire for information relating to the statutory priority of lien and on the various kinds of deposits reported as secured, preferred, and general
claims under Sections 7, ,% 9, and 10 of the suspension schedules, we
hand you the following facts concerning Michigan and Indiana. Corresponding information for Yisconsin and Illinois has already gone forward to you:
Indiana:
flA law recently passed by the State Legislature gives cashiers' checks, drafts or ot;er negotiable instruments representing
clearings preferred standing in the settlement of insolvent banks.
"Secured deposits are those which have been specially segregated and set apart and collateral deposited or agreement made with
Other preferred
the depositors to insure the payment of the same.
deposits are not well defined by Indiana law, but courts have held in
certain instances that Where the deposits were made for specific purposes or used or to be used only for said purposes that it might have
General deposits are such as are made as a matpreferred standing.
in the ordinary affairs of the bank and its
custom
ter of routine and
clientele.
The above is quoted directly from the reply to our inquiry
Inasmuch as it is our understandby Deputy Commissioner T. D. Barr.
ing that the "law recently passed" referred to in n*. Barr's communication was enacted by the 1931 legislature, this preferred standing of
cashiers' checks, etc., did not obtain during the period for which forms
were filled out.
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Federal Reserve Bank of St. Louis
•
-.2-
FEDERAL RESERVE BANK OF CHICAGO
••
Michigan:
Mr. Reichert states that all deposits fall in the category
of general claims and these were the only class reported on the MichMr. Reichert did not include in the schedules any borigan forms.
rowings of the closed banks, which, according to Mr. Reichert, are
Should the Committee wish this additional informapreferred claims.
“It was our idea,“
tion, Mr. Reichert will be very glad to submit it.
he states, "when compiling this information, that it was particularly
desired from the deposit standpoint.11
We shall be glad to do anything further respecting the Michigan schedules which the Committee may wish.
I asked the Ioua State Banking Department for the information
on this subject requested in your letter to of May 5, as well as for
further data on schedules for ten banks in which the percentagesof payments to claims shown did not agree with those obtained by actual division of the amounts reported.
Upon hearing from that Department, I
shall forward the material to you.
Very t
H. G. Pett, Manager
Division of Research and Statistics
HGP:FB
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
••
••
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
May
Sixteen
19 3 1
Federal Reserve Board
Washington, D. C.
Attention : Er. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear Mr. Riddle:
According to our records we forwarded to you
revised tables for 1929, referred to in your letter of
May 14. I am very glad, however, to enclose a duplicate
set of these revisions.
I am very sorry if inadvertently these were omitted from our previous letter or have
been lost, but we do know that we made the revisions for
the purpose of advising you thereof.
H. G. Pett, Manager
Division of Research and Statistics
HGP:FB
•
•
FEDER
j
L RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
May
Sixteen
1 9 3 1
1,01,
Ivr
Federal Reserve Board
Washington, D. C.
Attention : Yr. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear Tlr. Riddle:
We are enclosing schedules for the following bank
suspensions in Asconsin since 1921:
Naae of Bank
City
Lancaster
Loyal
Danbury
Dodgeville
Fond du Lac
Black Hawk
il
n
Date Closed
Peoples State Bank
Loyal State Bank
Danbury State Bank
City and Farmers Bank
Cole Savings Bank
Black Hawk State Bank
II
II
II
II
6- 2-23
11-12-23
9- 9-25
11-11-27
6-21-29
12-30-29
2- g-30
These cover the banks referred to in our letter of
nv 12, and according to our records complete the schedules for
:isconsin suspensions.
You will note that we have included a
schedule for the City and Farmers Bank, Dodgeville, which we are
informed by the State Banking Commissioner suspended following
the suicide of the cashier, and so should not be classified as a
liquidation.
Yours ver
t
H. G. Pett, Manager
Division of Research and Statistics
IIGP FB
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
May 14, 1931
Mr. H. G. Pett, kanager
Division of Research and Statistics
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Pett:
We have received revised earnings tables for
Iowa and Illinois in the case of years prior to 192.
However, you have subseiuently sent in tables
for 1929 for your district and in connection 77ith these
we find discrepenciez in the case of IndiLna and :,.ichigan in that year as between Tables I-e, II-e, and IV-e,
and I-e and 7-e.
jll you be good enough to see mhether
these can be made to reconcile'?
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
••
•
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
May
Thirteen
1 9 3 1
Federal Reserve Board
Washington, D. C.
Attention : Mi. J. H. Riddle, Secretary, Committee on
Branch, Group, and Chain Banking.
Dear Mr. Riddle:
At mr. Stevens! request I have forwarded to you, by express, the schedules of suspended banks in the state of Illinois
since January 1921.
These include those previously returned by
you for amplification on the part of the Illinois State Banking
Department, as well as those for the second half of 1930.
1ith respect to the matter of statutory priority of lien
of the various types of deposits in state banks, State Auditor
Nelson informs us that the Supreme Court of the State of Illinoishas
ruled on only one class of claims as having priority, namely,
those deposited by the collector and undistributed to political subdivisions.
In some cases, however, ?gr. Nelson states that courts
have allowed priority claims due to specific conditions, but these
are not generally priority types.
With reference to the type or
types of deposits reported on these schedules, Er. Nelson states
that no distinction has been made in this regard, inasmuch as the
State Banking Department admits no preference of claims until established through court order.
H. G. Pett, Tanager
Division of Research and Statistics
TIGP:FB
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Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA S ALLE STREET
May
Twelve
19 31
Federal Reserve Board
Washington, D. C.
Attention :
aLelkqk
b(Pctk.
w-ta.
4-4 C'-'0"-.1-A )-•
42.
ft.)/144
0-4-ett.b:40-6-1._
r.
J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Mr.
Dear :Ir. Riddle:
At Mr. Stevens' request, I am forwarding you by express the
since
schedules covering suspended banks in the state of Wisconsin
Bank,
State
'Ve are holding the forms for the .Loyal
January 1921.
er 12, 1923, and for the Cole Savings Bank,
Novemb
closed
Loyal,
dates, which
Fond du Lac, closed June 21, 1929, for verification of
We ar asking Mr. Schwenker for
differ somewhat from our records.
Lancaster,
forms covering: the suspension of the Peoples State Bank,
Bank, Danon June 4, 1923; the first closing of the Danbury State
schedules on the twt,
bury, on November 9, 1925; and for two separate
November 30,
closings of the Black Hawk State Bank, Black Hawk, on
having been
form
one
only
,
tively
respec
1929 and February 10, 1930,
a schedule
us
sent
ment
Depart
g
Bankin
The
sent for both of them.
s show
record
our
which
ille,
Dodgev
for the Cit:, and Farmers Bank,
oning
are
questi
we
and
1927,
11,
voluntarily liquidated on November
ions,
except
these
With
you.
to
this change before forwarding the form
te.
are
comple
you
we believe the schedules being sent
d, preferred,
With respect to the figures reported as secure
Schwenker
Kr.
10,
and
and general claims under Sections 7, 8, 9,
of deposits,
liens
in
states that 'Asconsin has no specific priority
ts, and
deposi
ment
except the postal funds and United States govern
nding drafts
that at the 1927 session of the Legislature, all outsta
ed by
report
Vnder the classification
were made preferred claims.
ts,
deposi
ment
them, the deposits reported as secured were the govern
the balance, general
those preferred were post-office deposits, and
from
However, it would be a little difficult to ascertain
claims.
heads
these
under
led
schedu
claims
the
their reports just how much of
show
to
made
been
has
report
their
were actually deposits, because
being government de- 1
claims instead of deposits, the secured claims
1
The preferred
e.
payabl
posits, etc., and the repayment of bills
might
as
such
and
t,
transi
claims are those represented by drafts in
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Federal Reserve Bank of St. Louis
-2—
FEDERAL RESERVE BANK OF CHICAGO
S.
be preferred by court order, by reason of agency or trust;
the balance of the claims are all general.
and
'Je shall forward the forms listed in our first paragraph
at the earliest opportunity.
Very t
H. G. Pett, ,Tanager
Division of Research and Statistics
HGP:FB
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Federal Reserve Bank of St. Louis
•
S.
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
May
Eleven
19 31
Federal Reserve Board
Washington, D. C.
Attention : Mr. J. H. Riddle, Secretary,
Committee on Branch, Group,
and Chain Banking.
Dear Yr. Riddle:
This is to acknowledge your_ietter of ray 91 making inquiry
about the suspension schedules for Illinois and Wisconsin. The forms
from both these states were received by us late last week, as no doubt
you know ere this with respect to Asconsin, from correspondence I have
had with Mr. Goldenweiser, relative to reimbursement for check sent to
Schwenker for the employing of an extra person to complete the job.
We are much relieved that these two state departments have finally sent
the forms, and we are exerting all possible effort to check the data
and to revise our copies of the Illinois schedules through June 30,1930
in accordance with changes made by the State Auditor's office when the
forms were returned to them for amplification.
I assume that your reference to the Iowa schedules in next
to the last paragraph of your letter concerns the forms for the list
of banks which the Iowa department does not classify as suspensions. I
enclose a copy of a letter received last week from Mr. Colton of the
State Banking Department of Iowa.
I see nothing farther for us or you
to do in connection with those banks.
It has been a source of chagrin to us that we have been unable to get the Illinois and Wisconsin data earlier for you but, as you
well understand, beyond a certain point in urging co-operation we are
unable to go in dealing with state banking departments, and at the same
time retain their good will.
Very tr
y
H. G. Pett, Manager
Division of Research and Statistics
HGP:FB
Encl.
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Federal Reserve Bank of St. Louis
&ORM 4S-34 20N1 6-11-11 B-27.1'0
III 411
410 III
FEDERAL RESERVE BANK OF CHICAGO
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Federal Reserve Bank of St. Louis
STATE OF IOWA
DaARVENT OF BANKING
DES MOINES
May
5, 1931
Mr. H. G. Pett, Mgr.
Division of Research 8- Statistic
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Pett:
Replyint
; to your
the dates concerni
the Tow
Moines, should
ece
of May 4th, wish to advise
last E, Savings Bank of Des
6th and gth respectively.
tive to the
s set forth in your
t of
letter, wi
to advise the
onnation we would have on hand
wou:d be
nly thing we would have would be
ccurate, and th
the state
the last call, and I believe
t of condition
aur letter
ains the manner in which these
April 22nd e
banks suspe
d business
went out of existence.
Yours very truly,
(Signed)
C. R. Colton
Legal Clerk
DEPART/T-11T OF BANKING
CRC:LA
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Federal Reserve Bank of St. Louis
Wiay
1931
Elugene :. Stevens
Federal Reserve Agent
Federal Reserve 3ank
Chicago, Illinois
"ear Mr. Stevens:
We have your letter of .:.ay 6th, as well as Tables
I-e, II-e,
II-e and V-e for the states in your dis-
trict for the year 1930, which you sent under sephrate cover.
We note that with the exception of the deviations study which
you are .caking for the year 1930 this completes the study of
r'itional bank earnings for your district.
Very truly yours,
J. H. Riddle
Secretary, Committee on 1:
Group and Chair Banking.
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Federal Reserve Bank of St. Louis
May 9, 1931
Mr. H. G. Pett, Manager
Division of Research & Statistics
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Pett:
14 have not yet received the suspension schedules for
Illinois or Wisconsin. I hesitate to write you about this because I know you have been doing all that is humanly possible
to get these schedules. They were promised to you many weeks
ago. ahile in Springfield I talked to hr. Nicholson and he gave
me to understand that they were practically ready to send in.
.bout the same time, if I recall correctly, the Superintendent
of Banks in Wisoonsin promised you the sched,les for his state
within a few days. Do you think there is any possible way we
can build a fire under 461,_;se people?
There are some five or six states now, including
these two, which are seriously holding up our tabulations and
analysis in the suspensions project. The Committee and the
3oard are a little nervous about the delay in completing some
of these projects and if there is any possible way we can expedite them we must do it. We don't went you to do anything,
of course, that will irritate these State Departments because
we know you must live in harmony with them, but if you think
of anything that you can do or we can do to got these schedules, as well as those for Iowa, we will greatly appreciate it.
Would it be proper and would it do any good for me to
write directly to Mr. Nicholson?
Very truly yours,
JHR:rf
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking
o
••
FEDERAL RESERVE BANK OF CHICAGO
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Federal Reserve Bank of St. Louis
230 SOUTH
LA SALLE
STREET
May
Six
19 31
Federal Reserve Board
Washington, D. C.
Attention : Mr. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear Mr. -fiddle:
I am forwarding by registered. mail complete sets
of tables for 1930 in connection with the Committee's
project relating to the earnings of national banks. "fith
the exception of the deviations study which we are doing
for the year 1930 and which will be forwarded to you some
time next week, this completes this undertaking.
Very tr
-Aral Reserve Agent
HGP:FB
Encl.
0
May 5, 1931
Mr. H. G. Pett, 11%nager
Division of esearch and Statistics
Federal Reserve Bank
-71cago, Illinois
Aar :Ir. ",ett:
In reply to your letter of May 2nd,,we are submittin below a
Iowa banks for which the perlentages of payments to claims
ten
list of
schedules do not agree ith those obtained by actual divithe
on
shown
reported.
axourts
the
sion of
Name and location of bank
Citizens .Aivin-:s Bank, ulmby
Farmers and Merchants State Bank,
Washington
Mid West tate Bank, Sioux City
Randall aiins 3ank, Randall
Mitchell County Savins Bank, Osage
State Bank of reola, reola
i,nthon State Bank, Anthon
?amens Zdivings Rank, Colo
Jonesville '.:avings Bank, JoneLville
?armers Trust and Savings Bank,
Cattana
Closed
10-10-23
4-26-24
11-14-25
12-30-26
10-5-26
7-15-27
9-12-29
11-4-29
2-15-29
9-29-30
There are a good many other :vises in which equally great differences occur,
but those given will suffice to illustrate the nature and extent of the lescrepancies in luestion.
In connection with your statement th-t lova law recognizes no
preference as between different classes of deposits, we should appreciate
knowing wh'A is represented by the amounts reported as secured, preferred
and general clai .s respectively in section 10 of the schedules on banks
comrletely liluidated. Mos' sohediles show the great majority of claims
as secured and only rel'qively small amounts of preferred and general
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Federal Reserve Bank of St. Louis
Liay 5, 1931
kr. H. G. Pett, #2
11111illirr
claims. Do the two latter -roups represent deposits a.d if so .vht is
the basis of distinction in their cla..sification?
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Federal Reserve Bank of St. Louis
Very truly yours,
!e,
it
J. H. Riddle
Secretary, Coxmittee on Branch,
Groap and Chain BRnking.
••
•4
•
FEDERAL RESERVE BANK OF CHICAGO 1
,)
,ek
230 S
u -r H
LA SALLE ST
E E'l
May
Second
19 31
4:•
,o
id:17
0
ils..
19
11r
ce, C\
so
At
ereo"
0."
Federal Reserve Board
Washington, D. C.
Attention : Mt. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear Yr. Riddle:
We have taken up with the State Banking Department of
Iowa the question raised in the second paragraph of your letter to
.
_
me dated April 2g, /and quote vetbatim their reply:
"Regarding your question concerning the difference in the percentage as figured from the amount shown under Sections 9 and
10, wish to advise that we are not accurately able to state just
what is the cause of this discrepancy.
However, if you will
submit to us two or three copies in which there is a large variation, we will be glad to work this aut.
I am inclined to believe
that the percentage as shown under Section 9 is correct as this
difference might possibly be accounted for in the fact that under
Section 10, collections from assets do not include the amunt
o
of
cash on hand at the time of closing.
However, if you care to
submit us the fizures of two or three of the reports, we will be
glad to verify this and advise you."
If you will indicate to US the cases of two or three banks of this
kind, we shall follow Mt. Colton's suggestion that we submit such to
him for verification and possible further explanation.
We, of
course, have our own copies of these reports, so that it would not be
necessary for you to send us yours.
I believe the points raised in the first pal-84;mph of
your letter, regarding certain individual banks, were covered by our
communication to you dated April 27, which apparently crossed your
letter in the mail.
1
I am sorry that the information requested in your letter
of December 12 does not appear ever to have been transmitted to you. So
far as Iowa is concerned, the laws of that state make no distinction in
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Federal Reserve Bank of St. Louis
-2•
•
•
FEDERAL RESERVE BANK OF CHICAGO
the different classes of deposits, in so far as preferring one type
However, deposits are given a preference over
ahead of the other.
The general creditors and all deposiand above general creditors.
tors participate equally, according to their pro-rated share of the
proceeds collected from the assessment upon the capital stock that
is collected by the receiver.
Information on these points for the
other states in this district I will forward to you early next week.
Very trul
H. G. Pett, Manager
Division of Research and Statistics
HGP:FB
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Federal Reserve Bank of St. Louis
May 1, 1931
Mr. H. G. Pett, Manager
Division of Research dc Statistics
Federal aeserve Bank
Chicago, Illinois
Dear Mr. Pett:
Your letter of April 27 enclosing thirteen seelementary schedules on Iowa banks was duly received.
It is our opinion, judging from the information reported
on the sehndales, that the Central Trust Company of Des 54eines and
the .4bster City Savings Sank of Nebster City should be classified
as suspensions. Relative to the Iona Trust & Savings Bank of Des
Moines, 14r. Colton's letter states that this hank olosen and was
plaoed in receivership December 8, 1930 and that "the Clearing
House Association and interested parties completed arrangements by
which the depositors were paid in full upon the succeeding busines
day which was Monday, December 10."
The Committee has followed the practice of arbitrarily
excluding free its suspension statistics all oases in which a suspended bank resumes oporetions on .
. he next business day either
through reorganization or by being taken over by another bank.
In this particular case, however, Mr. Colton is incorrect in reporting December 8 to have fallen on Saturday. ee suspect that the
dates in question should have been reported as December 6 and
December 8 respectively and in such case we should not consider
this bank as a suspension.
Ath respect to all the other. 'eanks enumerated in rit.
Colton's letter, it is our opinion that they qualify as suspensions
within tho terms of the Committee's definition. The fact that many
of these banks reopened within a few days after closing, that they
paid depositors in full and that no receivers were appointed is
not sufficient to exclude them as suspensions according to our
standards. .4 should therefore aepreoiate having any additional
information on these banks which the Iowa Banking Department can
conveniently supply. It would be particularly helpful if the
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Federal Reserve Bank of St. Louis
r7r,
key 1, 1931
Mr. H. G. Pett, #2
Banking Department will report on the Committee's forms the causes
of suspension in el,ch case and the last available statement of
condition prior to closing. If, however, you considJr it inadvisable to burden the Banking Department with further requests,
we shAl try to get along with such information as has already
been reported.
Very truly yours,
J. b. Riddle
Secretary, Committen on Branch,
Group and Chain Banking
rf
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Federal Reserve Bank of St. Louis
4.
FEDERAL RESERVE BANK OF CHICAO
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Federal Reserve Bank of St. Louis
230 SOUTH
LA SALLE
STREET
OA\
0
4_ „7"0
14,-4D
# /P. V/i _
April
Twenty-eight
dA4
VS
Federal Reserve Board
'Iashington, D. C.
Attention : yr. J. H. Riddle, Secretary
Committee on Branch, Group
and Chain BArking.
Dear
Riddle:
In Mr. Stevenst absence and at his request,
I am sending yau revised Tables I-e, II-e, and III-e for
Illinois, Indiana, and Iowa, for the years requested in
your letter of April 25 to Mi. Stevens.
We regret that
we failed to do this when the later tables were compiled.
Very t
y yaurs,
H. G. Pdtt, Manager
Division of Research and Statistics
HGP:FB
Encl.
April 28, 1931
Mr. H. G. ?ett, ;ianager
Division of Research and Statistics
Federal Reserve Bank
Chicago, Illinois
-)ear
. ?ett:
The chedules wA.c:a you sent to us covering state bank suspensions
in Iowa have been olveked against the records compiled on this subject by the
Division of Bank Opermtions. -aking into account the banks listed in your
letter_a_Anril 25th for which supplementary information is being requested,
and thoseenumerated on separate sheets for which no schedules were received,
the suspension records of the Division of Sank Operations agr,e with the
schedules submitted, except in the following cases. The Webster City javings
Bank, Webster City, the Central Trust Company and the Iowa Trust and ,avings
Bank of Des :4oines are not show as suspensions by the Division of Bank Operations. Since :our suspension files at the Reserve bank do not include
these cases either, -e should anpreciate having the records on these banks
investigated before they are accepted as suspensions. loreover, the schedule on the 2amerz„ avins Bank of Manly shows it to have closed on 12-23-25,
whereas according to the records of the Division, the data of suspension was
b-11-26.
With respect to luite a number of the banks in process of liouidation or completely liquidated, -le find that the ner cent of payments to claims
shown in sections 9 or 10 of the schedules cannot oe derived by dividing the
amount of nayments made by the claims alloyed. The percentages thus derived
occasionally vary as much as 10.'j to 20 fraa those given on the schedule,
while variances of 3, to 5 are of quite frequent occurrence. We should
appreciate having some explanation of this situation and your opinion as
to whether it is more desirable to accept the percentages reported or to
oaloulnte new percentages :al the basis of the amounts of claims and payments shown.
trust that the information raluested in our letter of December 12th regarding the statutory nriority of deposits and the types
of
claims reported on the schedules as secured, preferred and general
will
soon be available so far as it hnpaies to bank suspensions in Iowa.
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Federal Reserve Bank of St. Louis
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch.
Group and Chain 3anidng.
•
•
•
FEDERAL RESERVE BANK OF CHICAGO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
230 SOUTH
LA SALLE
STREET
Adrii
Twenty-seven
19 31
Federal Reserve Board
Tashington, D.C.
At#,,rtion
J. H. Riddle, Secretar:
Committee on Branch, Gro
and Chain Ban:Ang.
2.
2hank you for your letter .of April
with the enclosure of the Survey of Banking Competition
report prepared by the Cleveland Federal Reserve Bank,
We assume it is
which/me have found of much interest.
your desire that we return this report as soon as we
have finished with it, and this we shall be glad to do
later on.
Very truly yo
IT. G. et , :.er
Division of Research' and Statistic
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Federal Reserve Bank of St. Louis
April 27, 1931
Mr. N. G. Pett, Manager
Division of Research and Statistics
Pederal Reserve Bank
Chica7o, Illinois
Dear - 7r. Pett:
Receipt is acknosled7ed of your letter of April
23rd enclosing tables IV-e and 1-e for the five states in
your district for the year 1929. We note that you expect
to forNard to us shortly the rellaining portions of the
project.
7ery truly yours,
H. Riddle
Secretary, Co.=ittee on Branch,
Group and Chain Banking.
C4A
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
April
Twenty-seven
1 9 3 1
4
)
4,
42
,1
A
/P,
4404
,gsa e
48Pek <IP? 0
Federal Reserve Board
Washington, D. C.
4
. .1
et.*
Attention : Yr. J. H. Riddle, Secretary
Committee on Branch, Group,
and Chain Banking.
Dear Mr. Riddle:
We are sending yau herewith thirteen schedules covering bank suspensions in Iowa since 1921 regarding which we had
questioned the Iowa Department of Banking, and are enclosing
photostatic copy of a letter received from them answering our
questions and giving explanations as to the banks for which we
had received no schedules.
The Webster City Savings Bank, Webster City, and
the Central Trust Company, Des Moines, had been considered by us
as liquidations, and the Iowa Trust and Savings Bank, Des Moines,
as a consolidation, but we are forwarding you the schedules as
sent us, and shall appreciate your advice as to whether we should
I,•
Also, we believe that the Farmers
them as suspensions.
Savings Bank, Barnes City, should be considered as having been
taken over rather than reorganized and have changed the schedule
:ith regard to those banks for which schedules are
accordingly.
missing, we ?resume that you will do nothinz further about those
on which they are unable to furnish the information, but we shall
await your advice regarding the others on which they have not given
the information for various reasons as indicated in their letter to
us.
Yours very truly,
H. G. Ptt, Manager
Division of Research and Statistics
HGP:F13
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
AN
Vr
Pr-D
„State of 3ottra
Drpartutrut of ;Vanitin.g
!es itioines
An7i1 2. 1931
Mr. H. G.
Federal
Chicago, I1 1 17-.-in
C'
Dear Mr. Pet'- :Replying to your letter of April 20th, rearding
Barnes City, wish to advise that the correct 1-1.r r)'' this
bank is the Farmers Savings Bank which closed cto')er
1929, and 40(77, of the deposits were made payabl at once
through the Mahaska County State Bank of Oskaloosa, Iowa,
and 6.0 (-)f. the deposit liability was trusteed.
9.egard1ng ,ebster City, wish to a-;vi!,e that the
Webster City Savings sank liquidated pajinr, their deposit
liability in full, but was placed in receivership for the
bene!'it of' c f.,np,',11 rs-d1tors August 22, 1924.
Pegardinr the Central Trust Company of Des Moines,
wish to advise this bank was liquidated through receivership
and was ;:laced in receivership July 29th, 1926.
rZegardim7 the State Savinrs Bank of Afton, Iowa,
wish to advise thn.t according to our records, this bank closed
:arch l, 1924.
Regarding Yapier Savings sank,
Iowa, wish to
advise this bank closed June 12th, 1924, but the deposit liability was paid in full by the Security Savings Bank of Boone,
Iowa, in accordance with a contract dated July 11th, 1924.
Regarding the Nemaha State Bank, wish to advise this
bank closed November 21, 1925.
Huntington Savings Bank, Huntinvton, Iowa, closed
January 30, 1926, according to our records.
Low Moor Savings Bank, Low Moor, IOWA., closed January
10th, 1928.
Batavia Savin7s Bank, Batavia, Iowa, closed February
27th, 1928.
Regarding the Iowa Trust & Savings Bank, Des Moines,
Iowa, wish to advise this bank closed and was placed in receiver
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Mr. H. G. Pett
#2
4/22/31
1-.J1, 1930. However, the Clefirinr our
anc interested Trtrti.
,s onmnleted 'Irrnnv:ementn hr whic the
or thin tx,nk were naid in full 1.x(,on the nlIcceedlni: 4-yz7ines
wa:. ;or:Lay Decenber 10th, 1930.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
t'l
iterri-dini- the Pirst
flunY,
banl, clor:ed J'Inuar7 10th, 123.
1 1.
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ir
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on
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to
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Lccordinr: ty, our rcc--,1--H
n;,)--rd
-
Je--,nr;ltors
'Thy
r'ollowinr* ban,
"-•:,117
1
r 1
,
Y111 '
1.trab I r!
,•. r
yds'
ramie S
Bank
41ank
•
Swan
Mondamie
'Swisher _
Holy Cross
Rippey
Fredericksburg
by 1-;,440 DeOartment as
r4*
1 *06.101.teci* •
Bank, Decorah,wie to
but the Winneehidik County State
',44pasit liability and paid it
Oband. The same-is true regarding the First Trust
-6f West Bend Iowa and a receiver was never appointed
-Or these two institutions.
iitk *
'rding.the'Lcuisa County Savings Bank of Columbus
Jun
"wish to advise that this bank closed on June 10th
1927, bilt the deposit liability was assumed and paid in full by the
Louisa County National Bank in accordance with the contract entered
Into July 8th, 1921.
Regarding the list on which you received no schedules
for the first suspensions, win!" to advise that. we do nothave the
information on hand in order to complete the form as required.
However, there was no loss to the denositors unon the first susnension of the StockpOrt zJavings Bank, Peoples Savings Bank,Bayard,
Chester Savings Bank Of Chester., Iowa, Logan Trust & Savings Bank of
Logan, IoWt:, Partners State Bank, Logan, Iowq, HrrIs Trust :8c savings_
Bank of Harria, and'tfie Malcolm Savings Bank of -Aalcom, Iowa. It
Is our understanding that there was no loss to depositors at the
first closing or the Ringsted State Bank, Ringsted, Iowa, but there
was a deposit waiver taken at the time it closed in 1926, which the •
depositors have not realized on.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
"("1"n
*
• 4-
IR
/.' ‘•-•
'n'17'S
V': r
T
t
*C&Ti
1
, rm
2. -.
The S9MC: eXnlqnqtir,
0'
srted t'or thc.
Alc-rna anr. encinr wit* ;1.1.n.rd:
Cop.ntyr L:avtnrs '3ank
1n1
4- c-YInh
wea (;ity
Stat.e. B.Ink c
Luverne State Bank
Farmers Trust & Sa7ings
4 1
i(Thr
e
-
Algona
Swea City
Luverne
Fmmetsburg
Regarding the Industrial Savings Bank of Davenport, Iowa,
wish to advise that this bank ceased to accept deposits on March 17,
1925, !Inc', the deposit liability was liquidated in full through t'ne
American Trust Company of Davenport, Iowa
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Department
f Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 25, 1931
kr. Bugene
btevens
Federal Reserve) ).gent
Federal heeerve Bank
Chicago, Illinois
Dear Mr. Stevens:
In connection with makin-; oombintions for the earnin64,
project with respect to Tables I.i5 II•e, Iles, and We, we Clad
that in the oases of particular states the ntsabors of banks in
respective profits groups do not agree when comparing Tables I-0,
II-o and iv-s. Also in some oases the numbers of httliks in size.
grou2s do not agree in comparing Tables
and We.
With respect to the iseets sent in from your district,
and 176e do not agree for Minot*
we find that Tftbles
in 1926 and 1928 and for Iowa in 1926, 1927 and 1928. Tables
/...e and We have discrepancies for Illinois in 1928 and 1928 and
for Indiana in 1928.
Will you please maim a comparison for all tho vari=s
tables for et, eh state for each year, and send us the necessary
revisions to maim them reoonsile? Inasmuch as Table V,. for
emample, was probably compiled suaaequent to Table Is we are in
hopes that you may be able to send us revised Table I which will
accomplish the reconciliation and that it willbe unneoessary
to disturb Table Nr, which repre.sents mush the greater volume of
work•
Very truly yours,
J. H. hidle
Secretary, Coral/UO.3 on Branch,
roup and Chain Banking
•
Office Correspondence
•
Form NO. 131
To
Jr.
From
Caskey
1/ (47)
FEDERAL RESERVE
ARD
Horbett
ect:
April 24, 1931.
Date
State bank suspensions in Iowa
for period 1921-1930.
2-S495
questionaire covering state bank suspensions in lora for
following
period 1921-1930 have been compared with our records with the
results:
SUSPENSIONS FOR WHICH NO ;JJESTTONIIRES WERE RECEIVED
Name and location
Members
County Savings Bank
Algona
Barnes City Farmers Savings Bank
Citizens Savings Bank
I Decorah
Malcom Savings Bank
malcom
Union Trust & Savings Bank
Sioux City
Mondamin Savings Bank
I Monderriin
)
Closed
11-26-26
10-2-29
1-9-24
11-19-24
2-16-21
6-g-23
Reopened
Closed again
12-3-26
2-2-25
8-12-27
6-12-23
Nonmembers
3-16-24
State Savings Bank
3 Afton
10-29-27
12-7-26
11-26-26
AlGona State Bank
Algona
12-3-26
11-26-26
Kossuth County State Bank
1 Algona
5-13-21 2/6-23-21 9.-29-23
Bank
SavinLs
Citizens
1 Anita
\ 2-27-28
v, Batavia Savings Bank
3 Batavia
3-21-21
4-17-26
1-8-23
Bank
Savings
VPeoples
Bayard
1
9-13-24
-p4
1-1g
7-12-23
'Chester Savings Bank
I Chester
7-30-27
iTarmers State Bank
- Clutier
6-10-27
Svgs
,
Bank
County
/yeuisa
I Columbus Juno.
9-2-21
"Citizens Savings Bank
! Curlew
11-30-26
11-27-26
Bank
State
Cylinder
1 Cylinder
3-1845
Bank
ial
Savings
vIndustr
I Davenport
6-22-21
,JElliot Savings Bank
\Elliot
11-30-26 11-3-27
11-27-26
Bank
'-'Farmers Trust & Savings
Emmettsburg
12-3-26
11-26-26
larmers-Fenton Svgs Bank
I Fenton
12-3-26
13-27-26
'Fenton State Bank
/ Fenton
5-4-26
5-3-26
--I Fredericksburg qFirst State Bank
9-19-21
')Farmers Exchange Bank
-3 Grafton
3-10-21
4armers Savings Bank
Harper
I
10-25-21
Bank
Savings
Aorarris
I Harris
11-6-24
11-28-26
10-22-24
,Harris Trust & Savings Bank
-j Harris
2
,1-10-28
State
vFirst
3 Holstein
3-28-25
3-4-2
Farmers Savings Bank
I Holy Cross
2-1-26
Bank
4 Huntington Savings
3 Huntington
12-2-26
11-26-26
4/ Farmers & Drovers State Bank
I Iakota
4-21
V114
9-22=21
v(.Farmers Savings Bank
'Lamont
6-15-28
3-14-24
11-24-23
'Farmers State- Bank
,Tiogan
12-17-23
11-21-23
/Loan Trust & Svgs B
'Logan
1-25-28
Bank
Savings
Moor
/Low
Moor
3Low
'\ 11..:26-26
12-2-26
v' Luverne State rank
1._Luverne
11-27-26 11-30-26
V Mallard Trust & Svgs Bank
!mallard
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
\.;
•
1 :.aquoketa
!Marathon
1 Massena
Napier
Nemaha
! °Tiara
I OtO
OwasAa
Rings ted
Ringsted
J Rings ted
- 1 Rings te d
RiPPeY
1 Rome
I Ruthven
cl
i Sioux City
1Speagueville
-A71 Stockport
1Swaledale
Swan
1
,
Swea City
Swisher
Ulmer
1 West Bend
1 Whittemore
•
•
'
,/,Jackson State Svgs Bank
Vparathon Savings Bank
IMassena Savings Bank
v Napier Savings Bank
V,Nemeha State tahk
'/Citizens State Bank
./;State "ank
f Owasa Savings Bank
l,Ringsted State bank
/Ringsted State Bank
ingsted State Bank
Farmers State Bank
Rippey Savings Bank
/,Rome Savings Bank
armers Savings Bank
herrill Savings Bank
irerican Savings Bank
parmers Savings Bank
Vptockport Savings Bank
Swaledale Savings Bank
`Awan Savings rank
'/State Bank of Swea City
,7 Swisher Savings Bank
%/Farmers Savings Bank
/pirst Trust & Savings Bank
'Farmers State Bank
••
10-19-21
10-31-21
4-25-21
4-1-22 E./5-5-22
7-25-24
711-23-25
4-29-21
11-28-21
2-14-22
11-23-23
11-27-26
1-23-24
12-2-26
11-27-26
4-9-28
4-9-28
t
11-27-26
2-26-26
f
11-27-26
11-30-26
5-8-24
3-8-25
11-5-21
2-16-21
9-28-22
2-21-22
10-26-22
10-10-24
1-24-27
10-22-27
4
11-3G-26
3-18-26
3-23-21
9-15-21
3-26-23
11-26-26
2-6-25
3-1-21
6-13-24
11-27-26
5-19-25
11-30-26
AlsO 92 private banks, 76 during period 1921-1930 and 16
during 1930.
2/Reopened as "Citizens Bank"
1/ReoiAened as "Farmers State Bank"
E/Re opened as "Massena State Bank"
Gardner
Garner
Other differences
Gardner Trust & Savings Bank
Garner Trust & Savings Bank
10-17-25
10-19-25
(Q,estionaire)
(Boardls records)
Manly
Manly
Farmers Savings Bank
Farmers Savings Bank
12-23-25
5-11-26
(;uestionaire)
(Boardis records)
Grand Mound
Grand Mound
Farmers & Merchants Savings- Bk
Farmers & Merchants Savings Bk
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1-25-26
1-26-25
7-19-26 (Questionaire)
(Bda records)
•
11°
ID•
FEDERAL RESERVE BANK OF CHICAGO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
230 SOUTH
LA SALLE
STREET
Twenty-three
1931
Federal Reserve Board
7ashington, D. C.
Attention : Mr. E. A. Goldenweiser, Chairman
Committee on Branch, Group, and
Chain Banking.
Dear
. Goldenweiser:
Mr. Stevens has asked me to forward to you
Tables IV-e and V-e for the year 1929, for the five
states in this district, in connection with the Committee's study of national bank earnings and expenses.
The remaining portions of the project are nearing completion and will go forward at the earliest moment.
Tery
ours,
H. G. Pett, /, ager
Division of Research and Statistics
:FB
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 23, 1931
Mr. H. G. Pett, Manager
Division of Research and Statistics
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Ipett:
In accordance with our conversation last week
I am sending you herewith a copy of the "Survey of Banking Competition Offered by Non-banking Institutions,"
prepared by the Federal Reserve Bank of Cleve-
which
as
land.
As suggested at the time I am merely sending you
this for your owr personal information and not as a guide
to the work
yol
are doing in the Chicago District.
Very trul7 yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
Eno.
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
followint_
tion or corn--:
,
LA SALLE
STREET
.
receivef!:
>Barn,-:s City, 7anners w_d_ Zavini. 3ank—Closed 10-2Viebuter City, .:(Ybster City Savinjo 3ank--:o Jn o'_r
a suspension
..4
Des :7oines, C..3ntral Trust Company—Not o.-:.
suspension
7JAfton, State Savings Bank—Closed 3-15-24 (Difference in closing date)
II
II
II
II
1Napier, Napier Savings Bank—Closed 7-28-24
II
•II
it
JNemaha, Yamaha State Bank—Closed 11-23-25
II
II
II
2-1-26
Closed
huntington,Huntington San. Bank
ig
u
II
n
1-25-28
--Closed
JLow /lbor,Low Moor Savings Bank
II
II
II
II
JBatavia, Batavia Savings Bank—Closed 2-27-28
Des 7oines, Iowa Trust t Savings Bank—Not on our records as a
suspension
JHolstein, 7irst State Bank--Closed 1-10-28 (Difference in closing datII
II
II
it
4Clutier, Parmers State Bank—Closed 7-30-27
Yours
Manager
H. . Pet
Division of Research and Statistics
}FP:F3
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 18, 1931.
Mr. H. G. Pett, Manager
Division of Research and Statistics
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Pett:
In accordance with the reouest contained in
your telegram of today,
10
are enclosing for your use
15 additional copies each of Tables I-e, II-e, and
7ery truly yours,
C. B. Hammond
For the Committee on Branch,
Group and Chain Banking.
Eno.
,4.
411,ELEGRAM
•
•
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
RECEIVED AT WASHINGTON, D. C.
hicap.o n1 18 17 ,
shn
Please send us fifteen additional copies each of tables
1 E 11 E and 111 E
Pett
1,15p
• MI'INUN MI
V PIMPI VI,. *Frt. SOSO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April le>, 1931
i. Ii. G. Pett, ,.lanager
Division of hesearch
.tatistics
Federal ,tecerve ank
Chicago, Illinois
Dear ar. Pott:
In the absence of Mr. Riddle, I a-J writing
to acknowledge receipt of your letter of April 15 relative to the Iowa suspension schedules which arrived
under separate cover.
If it is ;J)t too muoh trouble, we shoAd appreciate having a list of the
for -4hich schedules
are still missing as it will greatly facilitate the oomprison of the schedules with the records of the Division
of Bank Operations.
Ver
rtEG:rf
truly yours,
C. B. Hommond
For the Conmittee on Branch,
Group 5.nd Ghain Lianking
•
•
•
FEDERAL RESERVE BANK OF CHICAGO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
230 SOUTH
LA SALLE
STREET
April
Fifteen
1931
Federal Reserve Board
Washington, D. C.
Attention : Mr. J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.
Dear Mr. Riddle:
Er. Stevens has asked me to forward to you tl-E,
schedules of bank suspensions in Iowa since 1921. These
are being sent you today by express.
We have just completed our check of the forms
and are questioning the information on thirteen of them,
which we are holding here, and find that about fifty
schedules are still missing, fourteen of vi-Ach should
cover the first suspension of banks which reopened and
If you would like a list of the reports
again closed.
that are still missing and those 1m are questioning, we
Should be glad to send it to you.
H. G. Pett, Manager
Division of Research and Statistics
":11P:FB
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 11, 1931.
Mr. H. G. Pett, Manager
Division of lesearch and Statistics
Federal Reserve Bank
Chicago, Illinois
Dear Mr. Pett:
In accordance with the request contained in
:lour letter of April 10th
e are enclosing for your
use 50 additional copies of the analysis of bank earnings fonas.
Very truly yours,
C. B. Hammond
For the Coismittee in Branch,
Group and Chain Banking.
7nc.
FEDERAL RESERVE BANK OF CHICAGO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
230 SOUTH
LA SALLE
STREET
April
Ten
19 31
Federal Reserve Board
'Elshington, D. C.
Attention : Yr. E. A. Goldenweiser, Chairman
Committee on Branch, Group, and
Chain Banking
Dear Er. Goldenweiser:
'Jill you kindly send la as soon as possible fifty
additional copies of the analysis of bank earnings forms.
Very truly yours,
a:ger
H. G. Pett,
Division of Research and Statistics
HGP:FB
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 9, 1931.
kr. Fugene E. Stevens
Federal Reserve Ap7ent
i44ederal Reserve Bank
Illlnois
Dear jr. .2tevens:
This will acknoTledge with thanks your letter
of April f;th Tith its enclosure of the reports on eleven
failed banks Thic:1 you made up at :Zr. Riddle's reluest.
Mr. 3Iddle has not yet returned to ;ashington, but as
soon as he does he Till be advised of the receipt of
the reports.
Very truly yours,
E. A. Goldenweiser
Chairman, Committee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 7, 1931.
Stevens
Lir.L.'ugene
Federal :?...serve Agent
Federal Reserve Bank
Chicago, Illinois
7ear L1r. ;:tevens:
acknowledpe vith thanks yoar letter of April
3rd enclosing Tables .17-e and ‘r-e for the year 128 for
the five states in your district in connection sith the
r2,ar.mi`,tee'r, study of national bank earnings and expenses.
Texj truly yours,
C. 3. Hammond
For the Committee on Branch,
Grotin and Chain Banking.
'7A‘.1
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE STREE -r
April 62 1931
OFFICE OF THE
CHAIRMAN OF THE BOARD AND
FEDERAL RESERVE AGENT
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Dr. E. A. Goldenweiser, Chairman
Committee on Branch, Group and Chain Banking
Federal Reserve Board
Washington, D. C.
My dear Dr. Goldenweiser:
A few days ago Mr. Riddle, Secretary of
your Committee, asked us to prepare a report on eleven
banks in addition to the nine already furnished you under
date of February 16) 1931.
There is enclosed a detailed history of
eleven banks in this district that have been fcrced to close.
These banks were selected from the list which Mr. Riddle
left with us.
There is also enclosed a comparison of
the items and statements of the eleven banks, showing changes
in their reports during the years of this study.
It is our desire to cooperate with you to
the fullest possible extent, and if any additional information
is required we will be pleased to furnish same.
Your
CSY:ti
very truly,
eral Reserve Agent
NO SCHEDULES Ni:CEIV2_D
Closed
2-16-21. Sioux City Spragueville
2-16
Ulmer
3- I
Harper
,
-\3-11 •
Rome
.03-24
Marathon
14-25
Onawa
-\.4-29 •
\Anita
\ 5-13
-\ 6-22
9-29
. 9-15
9-22
• 10-19.10-25
• 11- 5
11-28
Elliott
Curlew
Swaledale
Lamont
Maquoketa
Harris
Sioux City
Oto
-----‘'C'2-14-22 - Owasa
Massena .
•\ 4- 1
\
7 3-26-23
,
A 8- 8
S wan
Mond smin
A 1-19-24 Decorah •
\ 6-13 •
'.:;est Bend
2- 6-25 - Swisher
\3- 3 .
Holy Cross
Davenport
. 3-18
\-2-27-26
• 11-26
11-26
11-26
11-27
11-27 •
-11-27 ,
11-27 •
11-27 •
- 11-27
A5-10-27
.1 1
FOLLOWING IOWA BANK SUSPE
'011
Union Tr. & Say. Bank (member)
Farmers Say. Bank (reopened 2-21-22)
Farmers Say. Bank Farmers Say. Bank Rome Say. Bank Marathon Say. Bank Citizens State Bank .
Citizens Say. Bank (6-23-21 Citizens State Bank organized
to take over affairs of the closed bank)
Elliott Say. Bank (Reorganized as Farmers State Bank in 1022)
Citizens Say. Bank .
Swaledale Say. Bank •
Farmers Say. Bank (Reopened 11-4-21 as Farmers State Bank)
Jackson State Sac. Bank (Reopened 10-31-21)Harris Say. Bank .
Ameriosn Say. Bank .
State Bank of Oto •
Crwase. Say. Bank
Massone Say. Bank (Reopened 5-5-22 under title of Meissen&
State Bank) •
Swan Say. Bank (Reopened 4-7-23)
Mcmd amin Say. Bank - Member (Reop en ad 6-12-23)
Citizens Say. Bank - Member (Taken over byl,*vinneshiek Co.
State Bank - an old institution and a member at that time)
First Tr. & say. Bank (Taken over by Union State Bank - an
old institution - in 1924)
Swisher Say. Bank (Reopened 5-19-25)
Farmers Say. Bank (Reopened 3-28-25) .
Industrial Say. Bank
Rippey Say. Bank (Reopened 3-19-26)
Rippey
Fredericksburg,-First State Bank (Reopened 5-5-26)
Kossuth County State Bank (Reopened 12-3-26)
Algona Farmers Fenton Say. Bank (Reopened 12-3-26).
Fenton
Farmers & Drovers State Bank - Member (Reopened 12-2-26)
7 nkota
Ruthven
Farmers Say. Bank (Reopened 11-30-26)•
Farmers Say. Bank (Reopened 11-30-26)- Ringsted
Fenton State Bank (Reopened 12-3-26) •
Fenton
Whittemore
Farmers State Bank (Reopened 11-30-26).
Cylinder
Cylinder State Bank (Reopened 11-30-26) •
Mallard
Mallard Tr. & Sac. Bank (Reopened 11-30-26)
Columbus Junction,
Louisa County Sari Bank -
NO SCHEDULES RECEIVED COVERING THE FIRST SUSPENSION OF THE FOLLOING IMA BANKS:
\ Closed
Stockport Say. Bank (Reasoned 10-26-22 & closed again 10-10;-24)
- Stockport •
BayardChester.
Logan •
-\11-21 •
Ringsted.
A11-23 V
_3
*T1,is bank reopened
time 4-8-28.
8-23
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Peoples Saw. lank (keope-iA 3-15-23 & closed again 4-17-26)
Chester Say. arrk (Reopened 1-18-24 :qc closed gair 9-13-4
Logan Tr. & Sav. Bank (Reopened 12-15-23 & closed 1-2-31).
Rinsted State Bank* .
1-24-24; closed again 11-27-26 and reopened 12-2-26; closed
No schedules received for either the 1923 or 1926 closing.
-2
NO SCHEDULES RECEIVED COVERING THE FIRST SUSPENSION OF THE FOLLOWING BANKS:
Continued closed
- 71.7-11
723
Li
• 5- 8-24 .
-10-22
- 11-19 •
• 11-26-26
. 11-26
.- 11-26 •
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Logan
Farmers State Bank (Reopened 3-8-24 & closed again 6-15-2P)
Sherrill •
Harris.
nalcom •
Sherrill Say. Bank (Reopened 4-15-25 & closed again 3-9-31)
Harris Tr. & Say. Bank (Reopeld 11-3-2' ',. closed 11-13-26),
Malcom Say. Bank - Member (Reopened 2-23-25 & closed 8-12-27).
Algona.
County Say. Bank (Reopened 12-3-26 & closed again 10-29-27)
Algona State Bank (Reopened 12-7-26 & closed again 10-29-27)
Algona,
Swea City. State Bank of Sive& City (Reopened 1-4-27 & closed 10-29-27).
Luverne State Bank (Reopened 12-2-26 & closed 10-8-30) .
Luverne •
-Emmettsburg, Farmers Tr. & Say. Bank (Reopened 11-30-26 & closed 11-:',-271
FEDERAL RESERVE BANK OF CHICAGO'
230 SOUTH
LA SALLE
STREET
April
Third
19 31
Federal Reserve Board
Washington, D. C.
Attention : Yt. E. A. Goldenweiser, Chairman
Committee on Branch, Group, and
Chain Banking.
Dear Yr. Goldenweiser:
I am enclosing Tables IV-e and V-e for the year
192g, for the five states in this district, in connection
with the Committee's study of national bank earnings and expenses.
The remaining portionsof the project are nearing
•
completion and will be forwarded at the earliest moment.
Very tr
deral Reserve Agent
HGP:FB
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 31, 1931.
Mr. C. S. Young
Assistant Federal Reserve Agent
Federal Reserve 3ank
Chicago, Illinol
'7ear Mr. Young:
In accordance with a recuest received friar::
tocIrly, I
c.,n7.1 ...F,Ir;
for your use 700 ad-
lit tonal 7.opio:-. of
Very truly yours,
Secretary to Mr. Riddle.
•
•
•
FEDERAL RESERVE BANK OF CHICAGO
230 !SOUTH
LA SALLE: S- F
March 30, 1931
OFFICE OF THE
CHAIRMAN OF THE BOARD AND
FEDERAL RESERVE AGENT
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Federal Reserve Board
Washington, D.C.
Mr. E. A. Goldeneiser, Chairman
Committee on Branch, Group, and
Chain Banking
Gentlemen:
I acknowledge yours of the twenty-sixth relative
to a proposed study of competitive non-banking institutions,
and shall be pleased to get together some information
we trust will be of value to you.
Very
EMS HH
which
•
2,:arch 26, 1931.
MOM
Stevens
Yr. ugene
Federal 7eserve Agent
Federal eserve Bank
Chicago, Illinois
ear Mr. Stevens:
At the request of the Committee on Branch, Group and Chain Banking the Federal 7.eserve Ban of Cleveland recently made a study of the
bays in Ohio have to meet from organizations, such as,
ca2petition
finance companies, acceptance corporations, etc., 7thich are not banks in
the proper sense of the term, but yet carry on banking functions. Ohio
was chosen first for the reason that building and loan association cornpetition with banks was known to be especially severe in that state. The
pertinence of the subject lies in the fl,ct that any intensification of
competition can be expected to contribute to the difficulties of the small
unit bank and to encourage greater banking concentration as manifested in
branch and group banking and in consolidetion of small concerns into larger
ones 'sith more divc,rsiflea functions. Iris not only direct competition
between banks themselves that is significant, therefore, but competition
between banks and organizations not recognized as banks.
The facts in general ns to the latter type of competition in Ohio
are indicated in the followin auottion from the Cleveland aeserie Bank's
survey.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
4BuildingT and loan and savins and loan associations
appear to be the principal non-banking mnpetitors of the
bunks whether the oompetitl.on be for deposits or for loans.
Considering only the competition for deposits the chief
competitors of the banks appear to be tae United States
Government through its postal savings system and the investment houses through the sale of securities generally.
Other kinds of deposit coinpetition are noted but they
hardly deserve more thar pasing mention.
"With respect to the competitidn for loans there are
five other agencies (in addition to the building and loan
and savings and loan associations) shich compete with the
banks. These five agencies are the finance ca4anies, the
insurance companies, the federal farm land banks and joint
stock land banks, the investment houses and the chattel and
salary loan caiqyalies."
Mr. Eugene
n. Stevens, 2
ilarch 26, 1931.
It is to be expected that similar conditions prevail to a greater
or less degree in other districts, and with thnt in mind the Committee is
:flaking the rerluest th-t you prepare for it a report upon the sawe subject
covering your district. It may well be that some of the competition found
In Ohio is not found in your district and that, on the other hand, you have
still other types of competition not found there. The report, we think,
should include a description of the compnrative importance of the different
t7pes of non-banking conpetition, statistics of the growth of non-banking
conpetitors as compared with barks, a sannnry of the principal provisions
of law 7overn1ng these non-banking organizations, and, if practicable, some
statements from bankers as to the reality and se-lonsness of the competition
please let as know If you will not undertake the study as desoribed.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
E. A. Goldenweiser
Chairman, CoLmittee on Brunch,
Group and Chain Banking.
Ir
IMO AMP
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 24, 1931.
Mr. H. G. Pett, Manager
Division of Research and Statistics
Federal Reserve 3nnk
Chicago, Illinois
Dear Mr. ?ett:
In accordance with the request contained in
your telegram of March 24th we are enclosiLg for your
use 300 additionnl copies of the schedule on bank
suspersions.
7ery truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
En c.
V"•OELEGRAM
S.
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
RECEIVED AT WASHINGTON, D. C.
.54gb
hicago Mar 24 943am
•1
Riddle
Washn
Please send us 300 additional forms bank suspensions since January
1 1921
Pett
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1048em
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 24, 1931.
Kr. Eugene k. Stevens
Federal Reserve Agent
Federal Reserve Bank
Chicago, Illinois
_7"ear Mr. Stevens:
Thank you for your letter of March 20th with
the enclosed sched.11e of information pertaining to the
nsconsin aankshares lorporation.
It see:ns to be well
prepared indeed and we are very glad to c7et it.
Please
express our thanks to Mr. Zasten.
Very truly yours,
j. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
March
Twenty
19 31
Federal Reserve Board
Washington, D. C.
Attention : Mt. J. H. Riddle, Secretary, Committee on
Branch, Group, and Chain Banking
Dear Mr. Riddle:
I am enclosing the schedule of information pertaining to the asconsin Bankshares Corporation received from Mt.
This appears to be a very comprehensive and
Kasten yesterday.
conscientiously prepared compilation.
I am hoping to hear from
the Detroit Bankers Company very shortly.
Very tr 400! 8,
jederal Reserve Agent
HGP :FB
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
•
TELEGRAM
Form 148
FEDERAL RESERVE BOARD
LEASED WIRE SERVICE
2-9454
WAS H I NGTON
ar
Larch 19, 1931,
Stevens, Chicago
We approve employing additional .nan at OommitteOz expense
to complete suspension schedules in Asconsin.
expedited.
GOLD-E--EL:Eri
Officinl business
jharels Federal Reserve 3oard
overnment rate
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Hope work can be
OELEGRAM
•
••
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
4
.
°
108gb
RECEIVED AT WASHINGTON, D. C.
Chicago 1104am Mar 19
Riddle
Washington
7
Owing to extreme pressure of work in banking department commissioner
schwenker unable complete wisconsin failed bank study unless permitted
employ additional man at committees expense for approximately three
weeks at rate of one hundred seventy five dollars per month with your
approval should like to make this arrangement would appreciate your
wiring me your reaction
Stevens
1208p
•
•00222 V•NT 7.010,001 •11010. Ina
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
2-11901
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
41
!virirch 13, 1931,
r.7ngene L. Stevens
Federal Reserve Agent
?ederal -eserve sank
Chicago, Illinois
Tear Yr. Stevens:
In reviewing and analyzing the material which we have
of group banking preparatory to completing that
subject
on the
report, re ilote our fll,zestionnaire
rlolarnittee's
the
of
section
by
the Tisconsin Bank 3hares Coreither
returned
been
has not
. Correspondence from
Bankers
Incorporated
Detroit
poration or
to cooperate with
intended
that
groups
these
indicates
your bank
would be very
It
reTiested.
the
information
furnishing
us in
by tItese groups,
action
proJapt
secure
cold
you
if
helpful to us
tnr. ;;Is2onin jank ;:hares Corporation.
de7elooments in the
If thero Inve bon ary
recent months that
in
:Tour
:iistrict
ir
bonerg
fl1': of Troup
should appre.:!1we
know,
us
to
for
helpful
yoa think w,71-ild be
them.
concerning
ate your writing us
7ery truly '.yours,
J. H. lUddle
Secretary, Committee on Branch.
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Wiarch 11, 1931.
Mr. E. M. Stevens
Federal Reserve Agcnt
Federal Reserve sank
Ch13ago, Illinois
rear Mr. tAevene:
We ackno7:1edge with thr.nks yo,Ir lotter of
March 10th encli,t,ing
ft
suspension 6chedl10 on the
central state 3ank of Gary, Indiana.
Very truly yours, .
Z. R. Riddle
Secretary, Oolimittee or
Croup and 'nein BankinG.
••
•
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
fkt,
A/4
1/P4J
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Federal Reserve Board
Washington, D. C.
Attention : Yr. E. A. Goldenweiser, Chairman
Committee on Branch, Group and
Ch in Banking.
Dear Yr. GolEnweiser:
We are enclosing schedule covering suspension of
the Central State Bank, Gary, Indiana, which completes the
data on Indiana bank suspensions since January 1, 1921.
Very trulg yours,
Federal Reserve Agent
HGP:FB
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 6, 1931.
Mr. H. G. Pett, Manager
Division of Research and Statistics
Federal Reserve Bank
0hicago, Illinois
Dear mr. Pett:
In accordance with the request contained in
200
your telegram of today se are enclosing herewith
additional conies of the bank suspension schedule.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Grolp and Math Banking.
IFELEGRAM
•/
•
0
‘
).
)
FEDERAL RESERVE SYSTEM
1
4)1,
4
(LEASED WIRE SERVICE)
9,03gb
'
'Pol,/40 64(9 co
RECEIVED AT WASHINGTON, D. C.
Chicago 146p Mar 6
$1* e4
Ruddle
ashn
To meet additional request illinois stated banking department
please send POO bank suspension schedules
Pett
320p
0
11.
•OVESIOSSYT
rne• lorries
,
rIto
1W.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
3-11901
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 6, 1931.
Mr. H. 0. Pett, Manager,
Division of Research and Statistics,
Federal Reserve Bank,
Chicago, Illinois.
Dear Mr. Pett:
We have your letter of Larch 4th enclosing forms
A-2, A-3, A-4, and A-5 covering changes in the number of
hunks in the State of Iowa from 1920 through 1930.
4e note
that this completes the project insofar as the states of
your district are concerned.
Very truly yours,
Z. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
March
l'our
19 31
Federal Reserve Board
Washington, D. C.
Attention : Mr. J. H. Riddle, Secretary
Committee on Branch, Group
and Chain Banking.
Dear Mr. Riddle:
Mr. Stevens asks me to send yau the summaries of bank
changes in the state of Iowa, from 1920 through 1930, which are
These forms complete
going forward to yau in another package.
are conthis project in so far as the states of this district
__
cerned.
Very trul
our8
nager
H. G. Pett,
Division of Research and Statistics
HGP:FB
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
•
••
FEDERAL RESERVE BANK OF CHICAGO
230 SOUTH
LA SALLE
STREET
March
Third
19 31
Ak-c
tfliu*„11,9a/
$164
Federal Reserve Board
Washington, D. C.
Attention : Mr. J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.
Dear "r. Riddle:
Confirming our telephone conversation this afternoon,
I ar writing to say that State Bank Commissioner Symons over the
telephone today informed me that the Monroe State Bank of Monroe
and the Laketon State Bank, Laketon, Indiana, previously classified by us and by him as suspensions, are in fact voluntary liquidations.
The other two banks mentioned in your letter of February 28 to Yr. Stevens, namely, the Fanners State Bank of Tyner and
the Citizens State Bank of La Crosse are properly classified as
suspensions.
As you doubtless know, Mr. Symons filled out Board
form St. 6386b on all four of these institutions as suspensions.
This change in classification for the two institutions named necessitates our changing our figures on bank suspensions.
I am forwarding to Mr. Smeadfs office our revised data in connection with
the annual re.)ort.
Very tr ly
H. G. ett, Manager
Division of Research and Statistics
HGP:1-13
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•EIFLEGRAM
•404 q
elk,
FEDERAL RESERVE SYSTEM
is./*1 ..,
/6, *
(LEASED WIRE SERVICE)
RECEIVED AT WASHINGTON, D. C.
105b
1...
,„,/
is.p.e4
Jo dPe,.
Chicago Mar 2 111Thm
Riddle
- Washn
We regard four banks listed your lctter fabruary 28s suspensions
within your definition and forms 6386 B were filled out by symons
and f'orwarded Mr Stead at time of closing symons and deputy commissioner
absent from Indianapolis probably returning tomorrow when we will
verify facts and wire you
Stevens
1222p
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
0 B. .00,21.110/01110/EXTIN• 00.001: i•10
58.--1001
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
!larch 2, 1931.
rr. :7ugene r. .:::;tevens
?ederal Reserve 1..ent
?edema 7?eserve Bank
Chicago, Illinois
:)ear kr. Stevens:
We have your letter of 7ebruar
2fith and tiso
the forms which you sent ,nder seperate rover covering
state and private bank ohanges during 1S21-1930 ir Illinois rnd Michian and also ir Indiana and Wisconsin for
the yet,r 1930.
Very truly yours,
J. P. Riddle
Secretary, CoLlmittee on Branch,
Group and Chain Banking.
@FedFRASER