The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
;21, . (5) - Committee on Branch Group &
Chain Banking
FRBank Richmond
1
.
414/49er
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
FEDERAL RESERVE BANK
OF RICHMOND
August 10, 1933.,
'
!
f !
Dr. E. A. Goldenweiser, Chairman,
Committee on Branch, Group, and Chain Banking,
Federal Reserve Board,
Washington, D. C.
t$1:
:
:;r
4,Q. cr
oS,
CS
My dear Dr. Goldenweiser:
.
We are in receipt of your letter of the 9th; and
have likewise received, under separate cover, copies of the
reports of the Federal Reserve Committee on Branch, Group, and
Chain Banking.
This was a stupendous work, and we are very
glad to possess it.
read with a very
The resume received sometime back was
great deal of interest.
I think the work proves a case for branch banking,
under reasonable and proper restrictions.
We wil return to you the earlier summary of the re—
port of the committee, as desired.
Very truly yours,
GJS—CCP
August '7,', :154
Governor G. J. Seay
Federal Reserve Bank
Riohmond, Virginia
My dear Governor Seays
I take pleasure in sending you under separate cover oopiek
of the reports of the Federal Reserve Committee on Braneh, Group,
and Chain Banking, which the Governors expressed a desire to see
with the view to passing on tho desirability of printing them.
The various reports, ehieh are being transmitted, includes
(1) Branch Banking in the United States; (2) Branch Banking in
Zalifornia; (3) Branch BRilleins in England; (4) Branch Banking
in Canada; (5) Banking Groups and Chains; (6) Changes in the
Amber and Size of Banks in the Unitea States, 1834-1931; (7)
Naar Suspensions in the United States, 1892-1931; (8) 225 Bank
Suspensions, Case Histories from Examiners, Reports; (9) Banking Profits, 1890-1931; (10) Dual Banking System in the Unite
States. I am also sending you a revised Summary of the Reports
and, as our supply of charts is limited, I shall be glad if you
can conveniently return the copy of the earlier Summary which
was distributed at the Governors' Conference last autumn.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
E. A. Goldenweiser
Chairman. Committee on Branch,
Group, and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
I
FEDERAL RESERVE BANK
OF RICHMOND
September 6, 1932
Dr. E. A. Goldenweiser, Chairman
Committee on Branch, Group and
Chain Banking.
Federal Reserve Board
Washington, L. C.
Dear Dr. Goldenweiser:
Referring to your letter of July 9
I am enclosing a summaryM'this district of the important changes in State legislation regarding banks and
trust companies since the inauguration of the Federal
Reserve System.
Our general Counsel, at my request,
has filled in the forms which you submitted covering each
state in this district.
Very truly yours
W. W. Hoxton
Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
••
•
FEDERAL RESERVE BANK
OF RICHMOND
July 13, 1932
Dr. E. A. GoIdenweiser
Federal Reserve Board
Washington, D. C.
Dear Dr. Goldem,eiser:
I received your let',,er of July 9 enclosing
forms upon which you request that I have tabulated changes made
in the banking laws of the several states in this district since
191A.
Our Counsel iAr. Wallace tells me that he,
perhaps, is in the best position to furnish the information you
require and that he will do so. He will not be able to complete
the matter for about two weeks but even at that .1 think the data
will be available to you quicker that if I send the forms to the
several state banking departments.
Very truly yours
W. W. Hoxton
Chairman and Federal Reserve Agent
July 9, 1932
Mr. William 1. Hoxton
Federal Reserve ihgent
Federal Reserve Bark
Richmond, Virginia
Dear Mr. Hoxton:
The Federal Teaerve Committee on Branch, Group and Chain
Liankinr is very ,inxious to obtain a summary of the important changes
in state legislation regarding banks and trust companies since the
inaururation 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 operntion of branches) our information is already
fairly complete. In other respects, however, it is inadequate, and
we should like to ask your assistance in filling in tqese deficiencies.
The enclosed mimeographed forms outline specifically the
information desir d. Would you be able to obtain for us this inforw
mation from the banking departments of the ..Aates wiose capitals lie
within your district, or from your legal department? It is not necessary that .we IrEve all the details of every law bearing upon the points
e want to know what changes have occurred since 1914
enumerated.
which have a significant bearing upon the operations of banking institutions and upon the types of assets held by banks.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
E. A. Golden-mother
Chairman, Committee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
June 10, 1932
iloxton
Federal Tie se rve .Lgent
Federal Reserve Bank
Richmond, Vifginia
Dear Li.. Hoxton:
The Ceamittee on Branch, Group and Chain Banking
wishes to ',aim the basis of the classification, in the reports of the Cocr:pt..oller of the Currency, of :.:tvte bring
institutions into State (connercial) banks or. the one hand
and loan and trust companies on the other. The office of
the Comptroller infonns us that this classificntion is made
by the respecti-.-e banking , epe.rtments when the figures are
repo!.tcd to him.
Cold you, therefore, find out fro the banking
.,
.epai:•t:nent of Maryland the basis for the distinction between comalercial banks and loan and trust c =ponies?
Very truly yours,
A. Goldersveiser
Chaiman, Committee on Branch,
Group and Chain Banking.
4
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1110
•
4L2/
/7
FEDERAL RESERVE BANK
OF RICHMOND
ft (le/
June 6, 1932
SC
4)**4
$ 4:•0
e
Dr. E. A. Goldenweiser, Chairman
Committee on Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear Dr. Goldenweiser:
I have your letter of June 4th requesting
that I ascertain from certain banks, which you list, the reasons
or considerations which promicted them to convert from one charter
to the other, or, in the case of consolidations, why one charter
was chosen in preference to the other for the continuing instituAlthough in some cases I already know the reason I am
tion.
writing to get the information first hand.
As soon as replies are in hand I will forward them to you.
Very trui7 yours
W. W. Hoxton
Federal Reserve Agent
_
June 4, 1932
:ioxton
nr.liam
ii`ederal Reserve Agent
Yedere.1 Reserve Bank
Richmond, Virginia
Dear Mr. Horton:
In recent years there have been many changes among banking
institutions from national ch rter to ..itate charter and vice versa.
These changes have occurred through both conversions and consolidations. The Committee on Branch, Group and Chain Banking, in connection with its study of the dllal banking system, is desirous of obtaining accurate information as to the motives for these changes.
are enclosing herewith a selected list of these conversions and consolidations in your district, and should appreciate it
if you will address an innuirj to each institution asking for a statement of the reasons or considerations which promoted them to convert
from one charter to tee other, or, in the ease of consolidations, why
one charter was chosen in preference to the other for the continuing
institution. If 'Ne can secure from these institutions frank and adenuate replies to this nuestion, it will doubtless shed much light on
the competitive factors between the two banking systems. „hile we
expect to tabulate and comment on the general results of the replies
received, the answers of the individual banks will be held in strictest confidence and, of 30:irSe, no banks will be mentioned in our report, or desip;riated in such :nanner as to be recognized.
e are submitting this nuestion to nearly one hundred banks
in the various districts in order to secure a fair sample for the
country as a whole.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very tray yours,
Goldenweiser
.
Chairman, Committee on Branch,
Group and Chain Banking.
District No. 5
Conversioi,a from 3tate to National Chartcra
Conversions from National to 3tate Charters
191:8
American rational risza - Amerf.cf:ri 3ank and Trust Co.
Book Hill, 3. C. 1(..$30
National Union Bank
Columbia, 3. C.
Columb ia at tonal Bank
Central Union Bank of
Carolina
Consolidations where rational Charter was Adopted
9altoelkciitions where 3tate Charter vima Adopted
Md. 1923
I$tional:.;xohange Bank (14),
Atlantic Trust Co. (6)
...,ank and Trc-t los
2,c
)
Tryst Co.)
BaltiLJoro
(Later
)
Baltimore, Md. 1.30
aNahanios bational Baia (16)
Dwyer*
larylead ?Ant Co• (v)
ISOMOnd, Va. 1V22
MIRIOnal tate and City bank (14)
Old Deainion Trust Co. (4)
Oliensboro, N. C. 1929
AMOrican National Bank and Trust Co. (10)
104ft7ibunt, K. C.
Pint National Bank (3)
Raleigh, N. C.
Citizens rational Bank (6)
Wilmington, i:. C.
Murchison :.:ati-Jgal baxAk (10
Greensboro,
C.
Atlantic Bank and Trust Co. (11)
osi
rmt, N. C.
Natant Savings and Trust Co. (1)
)
)
Narylr...r6 r'r st CO.
and Trust Co.
) ;Aate
lanters Bank
) (Later and Tr..ut (Jo.)
Worth Caroli.ds. Bank and Trust
Comnatv .• Greensboro
Beakil
* Numbers in parentheses indicate approximate
loans and invorstlerfF
millions of dollars.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
_MIL____IINBIBIBIBIL_Mkafiliataik.-4"
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 2,
Mr. 4 W. Hexton
hderal Reserve Agent
Federal Reserve Bank
Richmond, Virginia
Dear Lr. Hoxton:
Tour three letters of March 24i March 31 and
April 1, respectively, acknowledging our inquiry of
'Sarah 22 for information as to the causes of failure et
three branch organizations in your district, the Csele1L1
Trust Company of Maryland, tho Peoples State Bank sod the
Bonk of Western Carolina, have just been received. Donk
you very-seek for the pains you have taken to get the information us desired.
Very truly yours,
001deneeiser
Chairman, Committee on Branch,
Group and Chain
M4 A.
Mnroh 22, 1932
Hoxton
Mr. ,illiam
Federal Leserve Agent
Federal Keserve Bank
Richmond, Virginia
Dear Pr. Hoxton:
It happens that among the banks that have suspended in the
last two years there are three in your district that attracted attention because of the size and distribution of their brenchee. These
were the Peoples State Bank of South Caroline, at Cherlerton, the Beek
of Western Carolina, at Aiken, and the Central Trust Company of laryland,
at Frederick. The first of these had fourty-four branches and according to our records, was the largest state wide system in the country
outside California and the largest that ever suspended. After It, the
other two had each a larger number of branches outside the head office
city than any other bank that has failed in the last few years. The
three suspensions are therefore of importance to a discussion of branch
banking, and it is necessary that the Committee's report have something
to say about them.
t4fe realize that since these bee.ks were not members of the
System, it is difficult to procure full information
heserve
Federal
about them, but we should be obliged if you would find out for us what
the cause of failure was, and particularly whether the operation of
branches contributed to it,
Ti:tis information to be of use should be furnished as promptly
as possible since the Committee's report is in the final stages and
every effort is being made to hasten its completion.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
E. A. Goldenweiser
Chairman, Committee on erelich,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
'arch 17, 1932
4 0
fp:t "
.
F
."...14IN
v
CI /3
q)--q
Federal Reserve Board
Washington, D. C.
Attention Dr. E. A. Goldenweiser
Chairman, Committee on Branch,
Group and Chain Banking
Gentlemen:
As requested in your letter of March 12th, I have
had prepared, and enclose herewith, the following information:
"Net Additions to Profits"
"Loans and Investments"
"Gross Deposits"
by size groups and by states for the years 1926 to 1930, both
inclusive.
All information reported on the forms referred to
above has been taken from the "Analysis of Bank Earnings" prepared for you last year.
Very truly yours
W. W. Hoxton
Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
;larch 12, 1932
Mr. William W. Hoxtor
Federal Reserve Agent
Federal He serve Bank
Richmond, Virginia
Dear 1,:r. Hoxton:
For the purpose of assembling certain requested information in connection with proposals for guaranteeing bank
deposits, we have prepared the attached tables calling for three
items to be taken from the "Analysis of Bank Earnings" schedules
which you prepared for the Committee last year. You wtill hold
these schedules in your files and the items desired are J.. K.
and r. on page two. You will note that the tables call for aggregate dollar amounts for all national banks in each size group.
This entails arranging the analysis blanks for each year by size
of loans and investments, if they are not already so arranged,
and then tabulating the figures for each year for each size
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 compilat ins.
Very truly yours,
E. A. Goldenweiser
Chairman, Committee on Branch,
Group and Chain Banking.
Enc.
•
FEDERAL RESERVE BANK
OF RICHMOND
Lecember 24, 19;',.!.
Dr. E. A. Goldenweiser, Chairman
Committee on Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear Dr. Goldenweiser:
i enclose herewith, the information requested
in your letter of November 23\with respect to the following suspended
National banks:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
First National Bank
First National Bank
National Bank of Norton
Kingwood Naional Bank
First National Bank
First National Bank
First National Bank
First National Bank
Second National Bank
First National Bank
Kinston, N. C.
Clinton, S. C.
Norton, Va.
Kingwood, W. Va.
New Windsor,
Chase City, Va.
Anawalt, W. Va.
Cowen, W. Va.
Lorgantown, W. Va.
Richwood, T. Va.
Your letter calls for certain information from
the beginniag of 1920 until suspension. it was not possible for us from
our records t
1- .1re the information desired by you for the year 1920; for
the
this reas. n
pcTqrs enclosed cover the period beginning with 1921
through to the date of suspension in each case.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
i trust the information is in satisfactory form.
Very truly yours
J. G. Fry
istant Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
December 16, 1931
:J.r. J. G. Fry
Assistant Federal Reser7e Agent
Federal Reserve Bank
lilchmond, Virginia
Dear gr. Fry:
In accordance with the request contained in
your letter of December 15th we are enclosing for your
use 50 additional copies of Fon', F.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
Enc.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
<4...
•
i-71.2/
(;
FEDERAL RESERVE BANK
OF RICHMOND
Dr. E. A. Goic,enTeiser
Federal Reserve Board
Washington, E. C.
Dear Dr. Goldenireiser:
Please send me fifty additional
copies of Forri F, sample of which is attached hereto.
Ver, tru ly yours
j. G. Fry
istant Federal Reserve Agent
(:_;,)/ 6
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Decenber 2, 1931.
Mr. George
Seay, Governor,
Federal Resbrve Bank,
Richmond, Virginia.
Dear Governor Seay:
Durinj, the meetin
today with the Governors' Outlier,-
enee of the Federul Reserve Committee on Branch, Group and
Chain Banking a request was made that each Governor be furnished with a copy of the confidential data submitted
recently to the 30-committee of the arnittee an Banking
and Currency of the Unita* States Senate which is engaged in
a survey of the operation of the National and Federal Reserve
banking systems.
A copy of thia data is enclosed herewith and it is
requested that you also reard it as confidential.
Very truly yours,
(Signed) Chester Morrill
Chester Morrill,
Secretary.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
S
FEDERAL RESERVE BANK
OF RICHMOND
NoveLber ?,5, 1931
Dr. E. A. GolCenweiser
Federal Reserve Board
Washington, D. C.
Dear Dr. Goldenwelscr:
I have your letter of November 23rdl
sprcifying the data which your committee wishes conco ming
the failed banks which you lioted. You may rest ssured that
we will get this inforLation o you as prom-tly as we czn.
The only force I have at my comyand is the
examination force and these men are fully occupied at the present
moment making examinations of state member banks. As soon as they
are free they Will 70 to work on your material, but I do not think
it possible for them to comple the work by December 15th. You may
rest assured however, that we will do all we can.
For the purpcyle of your study you have devised
the only possible wny to handle the matter. However, as you perh•:ps
well know,the exact point at which the trend toward a failure begins ,
cannot be set down with a typevv.iter.
Constant study o: many reports
of examination enables one to sense, in an uncomfortable sort of way,
the possible failure which lies ahead. When the examiner reaches a
point which enables him to set dawn his criticisms in blck and white,
the case becomes definite but the trend has usually been progressing
for some time in a way which cannot be defined in words and figures.
With best personal rea.ards,
Very truly yours
or
401,
W. W. Hoxton
Federal Reservn Agent
November 23, 1931
Mr. William 4. Hoxton
Federal Reserve Agent
,,,===7.1rederal Reserve Bank
- Richmond, Virginia
Dear Mr. Eoxton:
In the early part of this year the Committee initiated a study
into the causes of bank failures which consisted in compiling ,he 3/80
historwsof 120 books for several years prior to suspension. These 120
banks were selected from suspensions during 1921-1930 and the material
is now being analyzed.
In view of the large number of suspensions during 1931, however, as well as the differences in location and factors involved, it
is felt that no study of suspensions would be adequate unless it covemi
this year. Therefore, 100 banks suspending in 1931 have been selected
in a manner which should make them representative o this year's fatalities. Those selPcted from your district are given en the attached list,
and vs should appreciate it if you wpdld give us the recent histories of
the:e banks in accordance with the instructions. The inforaation desired oonsists of four parts.
First, the comments of the national or state bank examiners,
as the case may be, froi the beginning of 1920 till suspension. The
form in which these comments ghoul be drawn up is explained in the enclosed mimeographed instructions to which is attached 1_:xh1bit I, an
illustration. As an aid to interpretation these comments are interspersed with certain figures saowing in a general way the condition
of the bank at the time of each examination. Certain other data are
also called for, such as population figures and earnings. These are
covered in the mimeographed instructions.
"econd., the comments of Federal reserve examiners regarding
these br.nks during the same prriod, together with any correspondence,
memoranda or other materiil in the files of the Federal reserve bank
whioh will aid in understanding the condition and operation of these
banks prior to failure. No special form has been drawn up for compiling this mtterial, but in so far as feasible it should be listed
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Mr. William W. Hoxton, 4.42
November 23, 1931
chronologically as in the case of the comments of the national and State
bank examiners.
Third, a photostat copy of each bank's bond and other security
holdings on three different dates: (1) at or just prior to suspension;
(2) appror.imately one year prior to suspension: and (3) approximately
two years prior to suspension.
Fourth, detailed statistical data taken from the examiners'
reports and recorded on "Form Fl from 1920 to the date of suspension.
A copy of this form and comments regarding its preparation are enclosed,
and 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 availa'ole
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 us have it by the 15th
of December.
Very truly yours,
E. L. Goldenweiser
Chairman, Committee on Brs:
Group and Chain 3anking.
Enc.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Juspended Banks Selected for Case Studies
Richmond District
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
First National Bank
First National Bank
National Bank of Norton
Kingwood National Bank
First National Bank
First rational Bank
First National Bank
First Nationul Bank
Second National Bank
First National Bank
Kinston, E. C.
Ciinton, S. C.
Norton, Va.
Kingwood, -. 70.
New Yil:dsor, id.
Chase City, Va.
Answalt,
va.
Cowen,
organtown, W. Va.
Ri4hateod, W. Va.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 17, 1931
Mr. Wil/lam 7.. Hoxton
Federal 'eserve Agent
Federal Reserve Bank
Richmond, Virginia
Dear Mr. aoxton:
Referring to your letter of Octobeo 16th to Dr.
Goldenreiser regarding the meaning of the term "correspondent" as used in his letter of the 14th, will say that we
had in mird only those institutions outside of Richmond
which keep fmnas on deposit in Aiohmona.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
October 16, 1931
Dr. E. A. Goldenweiser
Federal Reserve Board
Washington, D. C.
Dear Dr. Goldenweiser:
i have your letter of the 14th asking
me if it would be possible to get for your Committee's use
the approximate number of correspondents which the Richmond
banks have in each state in the Union. I have just interviewed the President of the Richmond Clearing House and he
told me that the Clearing House will get the information for
me. However, we are uncertain as to whether the term "correspondent" in your letter refers to those financial institutions on the outside which keep funds in Richmond, or to
those points on the outside where the Richmond banks themselves keep funds, or both.
If you will enlighten me on this point
we will proceed to collect the data.
Very truly yours
. W. Hoxton
Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 14, 1931
1.ir. William W. Hoxton
Federal Reserve Agent
Federal Reserve rank
Richmond, Virginia
Dear Ur. Hoxton:
Would it be possible to get for the Committee's
use the approximate number of correspondents which the
Richmond banks have in each state 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,
B. A. Goldenweiser
Chairman, amnittoe on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
October 7, 1931
Mr. J. H. Riddle
Federal Reserve Board
Washington, D. C.
Dear Mr. Riddle:
Enclosed please find Form C reporting on the
the Commonwealth Discount Corporation of Richmond,
of
affiliations
Virginia.
We have experienced a great deal of trolble obtaining this information due to the fact that the companies shown on
the sheet were undergoing changes. This completes the list with
the exception of the report on the United Bank & Trust Company of
Greensboro, N. C. (Formerly the Greensboro Bank & Trust Company)
This bank has been reeuested three times for the information and
no reply has been received. Unless we hear further from you we will
consider this case closed.
Very truly yours
. G. Fry
tant Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 8, 1931
Mr. William W. Hoxton
Federal Reserve Agent
Federal Reserve Bank
Richmond, Virginia
Dear Mr. Hoxton:
. Thank you fbr your letter of October 5th
enclosiW!g vhat infbrmation you have oolleoted relative
to building and loan associations in your district.
Very truly yours,
J. H. Riddle
Seeretary, Committee on Branch,
Group and Chain Banking
X r-
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
.0 .4?
,/,
FEDERAL RESERVE BANK
'APeA•
OF RICHMOND
:=;eptember 24, 1931
Dr. E. A. Goldenweiser
Federal Reserve Board
Washington, D. C.
Dear Dr. Goldenweiser:
I have yours of the 22nd relative to
information about Building and Loan Associatione. I am now
beginning operations with a view to getting the information
you wish as promptly as possible.
With high regards, I am
Sincerely yours
W. W. Hoxton
Chairman and Federal Reserve Agent
v9A
le-
dAo
'
q•
September 22* 1961
Mr. As. I. Horton
Federal Reserve Agent
Federal Reserve Bank
/iehmond, Virginia
Jeer Mr. Horton:
As you doubtless know, the FeAerl. Reserve Committe.71 on Br.?.nch,
Group and Chain Banking expecte to include in its report a chapter on the
competition encountered by banks on the part of non-bankirn; institutions,
notably building and loan associations, savings and loan associations,
and similar societies conduotA et the mutual or cooperative -3rinoiple.
Several of the Federal reserve banks have been good enough to compile and
transmit to us much valuable information, which in the main will be sufficient for our purposes. We are anxious, however, to maks Sure that the
report Shall not fail to take account of any nem developments of importance
which may have occurred is recent months, particularly with respect to the
manner in which building and loan assooiationS have met the conditions
arising out or bankilv crises in various localities.
Sines me hope to complete this part of the report in a few weeks,
manifestly there will not be time for an extended inquiry; but Al shall be
glad to have any information you can furnish* without too much trouble as
to conditions in your district. 14 should like to know, for example, to
what extent the assets of building and loan associations are "frosen,"
whether more or less seriously than the real estate loans of the ban.ks;
whether in general the associations have asen obliged to invoke the full
extent of tasir privileges under the law Lathe matter of requiring notice
for payment of the withdrawal value of their shares, or of their deposits,
as the case may 04, and whether there has been in the past twelve months
any considerable iners.se In building and loan failures, as compar d 41Lh
the years 1928 and 1929.
*0 shall greatly appre-iate a reply aeong the lines indicated
at your earliest convenience.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
E. i Ooldenweiser
Chairma:, Committee on Branch,
Group and Chain Banking
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
September 22, 19U
Mr. J. G. Fry
Assistant Federal Reserve Agent
Federal Reserve Bank
Riohnond, Virginia
Dear Mr. ITY:
14 aoknowledge with thanks your letter of
September 21st enclosing material on Arra C regarding
affiliations in your district. je note that reports are
still to be espeeted from two banks beers your returns
are complete.
Very truly yours,
J. R. Riddle
Secretary. Commia., ob.
Group and Chain Banking
FEDERAL RESERVE BANK
OF RICHMOND
September 21. 1931.
Federal Reserve Board,
Washington, D. C.
Attention: Chairman, Commdttee on Branch,
Group & Chain Banking.
Gentlemen:
As requested in your letter of July 9,'sto Mr. Hoxton,
I enclose herewith reports on Forms C, showing the affiliations
of the banks listed by you together with such other cases as
I was able to locate.
The forms enclosed are the ones originally prepared
by you with additional affiliations and changes in 'How controlled'
based upon the information received direct from the dominant corporation.
In a few cases the banks claimed no affiliation whatever,
while at the same time the forms prepared by you show certain affiliations. As stated above, the enclosed forms represent the
best information that I could obtain for you.
This complqtes the list with two exceptions - The
Commonwealth Discount Company of Richmond, Va. and the United
Bank & Trust Company of Greensboro, N. C., the latter institution
being listed by you as the Greensboro Bank & Trust Company. These
forms will be sent you as soon as we are able to obtain the information for you.
The reports on Form C. enclosed with respect to the
dominant corporations are listed on the enclosed sheet.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
/
t Federal
eserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
FEDERAL RESERVE BANK
OF RICHMOND
September 12, 1931
Mr. J. H. Riddle, Secretary
Committee on Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear Mr. Riddle:
I acknowledge receipt of your letter of
September 10.', Of the reports to which you refer, about
eight or ten are not completed and we are continuing to
It is my
use every effort to hasten their completion.
opinion that we will be able to forward them to you in
about a week.
Very truly yours
W. W. Hoxton
Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
September 10, 1931
William W. Hoxton
Federal Reserve Agent
Federal Reserve Ba;Ac
hichmond, Virginia
Dear Ur, Hoxton:
In our letter of July 9th we forwarded to you the
matrorrial which we ha:-: cmpild on banking affiliations in
your district, our request being that you correct and amplify
what we had done from your own records and return the oomr
pleted data to us. We have received thi—• information from
a majority of he reserve districts and are naturally anxious
to receive the balance and complete this portion of our study
as soon as possible. Accordingly, we shall be obliged if you
will let us know how soon we may expect the returns from your
district.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
September 1, 1931
Mr. J. G. Fry
Assistant Federal iieserve Agent
Federal Reserve Bank
:licqrsond, lirginia
Dear 'dlr. Fry:
We have received your letter of August 28th with
the enclosed corrected Form 5 for eighteen banks and photostatic copies of the investment lists of fifty national
banks in your district in which you have identified all
securities to which ratings Zrom published sources :- .ere
not assigned.
Thank:you for the detailed description of your
procedure in the assignment of ratings.
'tory traly yoars,
J. H. Riddle
Secretary, ComatiL,Je
Group and chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
August 28, 1931
Dr. E. A. Goldenweiser, Chairman
Committee on Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear Dr. Goldenweiser:
letter of July
each of the 50
in a number of
rated". These
On August 14 I sent you in response to your
16, an analysis on Form S of the securities held by
banks listed in your letter of June 25. There were
cases securities which were "not listed" and "not
securities were so reported on Farm S.
In my letter of August 14 I explained that there
sufficient information to enable us to rate
us
available
to
was not
18 you returned the lists of securities
August
securities.
On
these
that
we indicate the rating assigned by
requested
referred to and
us on each security for which we could find no published rating, and
that we identify each security classified as "not rated" or "not listed".
You stated further that if adequate information concerning a particular
security is lacking and we have assigned an arbitrary rate, the rating
should be noted as being arbitrary.
We have carerully reviewed the lists and have
indicated on each list in white ink by the letter 0, the items which
are not listed in Standard Statistics or Moody's. Those items which
are listed but "not rated" are indicated in white ink by the letter X.
The total of "not listed" and "not rated" for each list is indicated
at the bottom of each list in white ink.
No one in this bank felt capable of rating the
securities which are shown on the lists as "not listed" or "not rated".
Various Federal and Joint Stock Tank Bank bonds are included in the
"not rated" class. In order to assist you as much as possible in this
matter we referred a list of these securities to one of our very reliable investment houses in Richmond with the request that they place
their rating on any of the securities which they were willing to rate on
the information available. After several days this house returned the
lists and stated very frankly that in only a few Cases were they willing
to 7?lace a rating on the securities which were "not rated" or "not listed"
by the Standard Statistics or lloodyis.
The additional ratings so obtained affect 18 banks
of the 50 referred to, and there are enclosed herewith revised forms S for these
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Dr. Goldenweiser #2
18 banks which should be substituted for the sheets which you now
have covering the same banks. When you have substituted these 18
new sheets for the corresponding sheets you will have all of the
information which we believe we can give you with respect to the
rating of the securities in question.
Stooks have not been rated but have been placed in the
"not rated" group as apparently no prevision was made for the rating
of stocks.
The photostat copies of the securities accounts of the
50 banks are returned herewith.
The investment house made the very nominal charge of
$25. for their assistance in this matter. It is our understanding
that this is a reimbursable item and it will be appreciated if you
will make the reimbursement at your convenience.
It is regretted that the groups including "non rated"
and"non listed" securities appear to be so large in proportion to
the ones rated, but I think upon careful study of these particular
securities you will fully appreciate the near impossibility of making
anything like an intelligent rating for such securities.
Very truly yours
Fry
--7411111117
ant Federa Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
August
dilliam n. Hoxton
Federal Reserve Agent
Federal Reserve Bank
Richmond, Virginia
Dear Nr. floxton:
We are returning under separate cover the lists of
securities held by each of fifty selected national barks in
your district which you prepared in aocordance with our letter of June 26th. The Committee requests that you indioate
the rating assigned by you to each security for which you
could find no published rating and that you identify each
security classified as "not rated" or "not listed." If
adequate information concerning a particular security is
lacking and you have assigned an arbitrary rating, the rating
should be noted as being arbitrary.
Very truly yours,
N. A. Goldenweiser
Chairman, Committee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
August 15, 1931
Mr. J. G. Fry
Assistant Federal Reserve Agent
Federal Reserve Bank
Richmond, Virginia
Dear Mr. Fry:
Thank you for your letter of August 14th with
the completed copies of Form 6 showing the ozality index for fifty selected banks in your district.
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 RICHMOND
August 14, 1931.
Dr. E. A. Goldenweiser, Chairman
Committee on Branch, Group & Chain Banking,
Federal Reserve Board,
Washington, D. C.
Dear Dr.Goldenweiser:
As requested in your letter of July 16, I enclose
herewith analysis of securities on Form S, for each of the
fifty banks listed in your letter of June 25. The analysis
has been made in accordance with the directions enclosed
with the forms.
The bonds appearing in the lines opposite "not
rated" and "not listed" represent for the most part issues
of small municipalities, judgments, etc. There is not sufficient information available to enable us to rate these
obligations.
Please let me know if there is any further assistance I can be to you in this matter.
Very truly yours,
t Federal Re erve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
August 13, 1931
F•r•
Yr. J.
ksaistant Federal Reserve Agent
Federal eserve Bank
Richmond, Virginia
Dear /Ir. Fry:
In accordance with the request contained
in yottr telegram of August 13th, we are enclosing
for your use fifty additional copies of Fors C.
Very truly yours,
C. B. lia:Lsond
For the Com:At toe on Lranch,
Group and Chain Banking.
411
TELEGRAM
4IP
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
RECEIVED AT WASHINGTON, D. C.
çt
rr
22T- .-73
00—
va
Richmonl 1130am Agust El
Goldenweiser
fktp
2.0
v
top
-5=
Mashn.
Please mail today fifty copies form C affiliations
-Fry
1 1 7)7.97'
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
U.
•0114•101.INT PtINTlX
•11•70. 1026
2-11901
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
August 4, 1931
Mr. J. G. Fry
Assistant Federal Reserve ;vsnt
Federal Reserve Bank
R;ohmond, Virginia
Dear Mr. Fry:
We acknowledge with thanks receipt of your
letter of August 3rd enclosing three copies of the
address made by Mr. John M. Miller, Jr. on June 12,
1.931 at the Convention of the Virginia Bankers' Association.
Very truly yours,
J. H. Riddle
Secretary,
Committee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
FEDERAL RESERVE E3ANK
OF RICHMOND
August 3. 1931.
H. Riddle, Secretary.
Committee on Branch. Group & Chain Banking.
Federal Reserve Board.
Washington, D. C.
Dear Mr.Riddle:
As requested in your letter of July 30. I enclose herewith three copies of the address made by
Mr. John M. Miller, Jr.. President of the First & Merchants National Bank of Richmond, Virginia, before the
Convention of the Virginia Bankers' Association at Old
Point, Virginia. June 12, 1931.
Very truly yours,
Aseistant Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 30, 1931
Mr. William W. Hoxton
Federal Reserve Agent
Federal Reserve Bank
Richmond, Virginia
Dear Ur. Hoxton:
I notice in a financial magazine a reference to a
speech of a Mr. John killer of Richmond which in effect was
a plea for better banking methods. I do not know mho Mr.
Killer is, but the statement goes on to say that his bank
has had the speeoh printed for distribution. We should
greatly appreciate it if you could get us one or two
copies of this speech.
Very traly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 25, 1931
Mercer
Examiner
Reserve
Federal
Federal Reserve Bank
Richmond, Virginia
Dear Mr. Mercer:
We acknowledge with thanks your letter of July
24th enclosing Forms B-3, 8-4 and B-8 for the States of
Virginia and North Carolina for the year 1930.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chaim Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
FEDEF?AL RESERVE BANK
OF FRIICHMOND
July 24, 1931
Federal Reserve Board
Washington, D. C.
Attention Mr. J. H. Riddle,
Secretary, Committee on Branch,
Group and Chain Banking.
Dear
Riddle:
Enclosed please find Forms B-3, B-4
and B-8 for Virginia and North Carolina covering the
S.
year
Verylowly yours
AP
I
R. W. Lercer
Federal Reserve Examiner
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 23, 1931
Mr. R. W. Mercer
Federal Reserve Examiner
Federal Reserve Bank
Richmond, Virginia
Dear Mr. Mercer:
Thank you for your letter of July 22nd4lie1o21ng
the A Forms for Virginia.
I note that you expect to have
the B Forms for Virginia and North Carolina in our hal-Ids
this week.
We appreciate your efforts to expedite this
material.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ot
FEDERAL RESERVE BANK
OF RICHMOND
July 22, 1931
Federal Reserve Board
Washington, D. C.
Attention Mr. J. H. Riddle,
Secretary on Branch, Group
and Chain Banking.
Dear L:r. Riddle:
Enclosed please find Form A-2 for Virginia
covering the years 1921 to 1930 inclusive, together with
supporting Forms A-3 for the year 1930.
I am glad to be able to state that the
annual report for North Carolina was received today and
I hope to have Forms B-3, 3-4 and 3-8 for Virginia and
North Carolina in your hands this week.
Very truly yours
R. W. Ii.ercer
Federal Reserve Examiner
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
FEDERAL RESERVE BANK
OF RICHMOND
July 20, 1931
Lir. J. H. Riddle, Secretary
Committee on Branch, Group and Chain Banking
Federal Reserve Board, Washington, D. C.
Dear Li.r. Riddle:
I have just called the Commissioner of
Banks at Raleigh, N. C. in regard to securing as sneedily as possible a copy of his annual report for 1930. He
stated that he would send the first available copy and
felt that it would be in our hands within the next few
days.
The Virginia report is not in printed
form but the Banking Commissioner has kindly given me
access to the material and I hope to be able to secure
the required data from that.
We regret very much the fact that our
district is holding up the work of your committee and
I hopethat you realize that the delay is from causes
entirely beyond our control.
Later in the week I will advise you as
to what progress is being made in finishing the compilation.
R. W. iArcer
Federal Reserve Examiner
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
FEDERAL RESERVE BANK
OF RICHMOND
July 20, 1931
••• ce.."
roe vs .0.
:•Its
.411
evr
PI"
Dr. E. A. Goldenweiser, Chairman
Committee on Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear Dr. Goldenweiser:
I have your letter of July 16 enclosing
forms for our use in computing the indox desired by your
committee,in connection with the data covering the list of
securities held by fifty banks in this district. This latter
data had already been forwarded to your office.
To the work of preparing the index, I have
assigned one of our bank examiners who will work it up as he
finds release from his other duties. The vacation period has
curtailed the force at my command, which is small at best, but
I hope that the work can be completed in time to be useful to
you.
Very truly yours
W. W. Hoxton
Federal Reserve Agent
•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Ili
•
FEDERAL RESERVE BANK
OF RICHMOND
July 20, 1931
/
Dr. E. A. Goldenweiser, Chairman
Committee on Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear Dr. Goldenweiser:
This is reply to your letter of
covering securities
compilation
July 9th enclosing a
companies and other non-banking affiliates, as well as
affiliations between two banks, requesti.,g us to check
the compilation, make the necessary corrections and additions, and return the revised material to you as soon
as possible.
It is obvious that this work requires care and the concentrated attention of an able
man. It will be necessary for me to assign Mr. Fry to
this work. He is atsent now on his vacation but will
return on August 1st and take up the task.
very truly yours
6
W. W. Hoxton
Federal Reserve Agent
, •/
vk
%.A.
.-,›64 4i., s-,...i.
•!41. (/'
4;f
45
July 16, 1931
Mr. William L. Aoxton
Federal Reserve Agent
?edam' Reserve Bank
Richmond, Virginia
Dear Mr. Hoxton:
We are sending you a description of an index which has been
devised for the purooso of measuring the .:uality of the security holdings of banks. The construction is simple and is fully explained in
the attached memorandum. The Committee desireb to tv,ve this index
com2uted for a representative list of banks scattered throughout the
country in orfier to determine something of their investment policies.
On June 25th we sent you the names of 50 banks in your
district with the request that you vend us a list )f the securities
held by each at the time of the last examination in order that we
or each of these 50
might make an analysis of these securities.
you
prepare an index in
lists of securities we should like to have
accordance with the and 'sad example and the accompanyinv instructions. If you feel that the 50 banks will not be suffioiently
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,
L. A. Goldenweiser
Chairman, '3omaiittee on Branch,
Group and. chain Banking.
•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 9, 1931
Mr. William W. Hoxton
Federal Reserve Agent
Federal Reserve Bank
:lielimond, Virginia
Dear Mr. Hoxton:
We are enclosing for your examination certain material on bank
affiliations in your district which we h.:ve compiled on a special form
(Form C) for use with thz Federal Reserve Board's records on the subject.
It covers securities 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. 6386, November 18, 1929, do not
include information on these two items.
Specifically, this compilation has been prepared to include the
following kinds of affiliates of bank:8:
(1) All non-banking affiliates of state and
national banks, including securities companies,
mortgage oompanies, investment trusts, insurance
companies, holding companies, foreign banking companies and safe deposit companies. In each case
the name of the bank and the names of its subsidiaries or affiliates are given.
(2) All affiliations between two banks only.
This affiliation may exist eithcr through common
stockholding interest, trusteed stock, direct ownership, or other means. The commonest examples of this
are the affiliation of a trust company with a national
bank and of a savinos bank with a commercial bank.
The compilation has been made principally from three general sources-,•
Moody's Manual of Banks, the direct:)ry of Security Dealers of North America,
and Rand McNally's Bankers' Directory. Our request is that you check our compilation, male the necessary corrections and additions indicated by your credit
files, examiners' reports, and other sources of inform_tion, including reference where advisable to the organizations themselves, and return the revised
material to us as soon as possible.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Mr. TillIam W. Hoxton, #2
July 9, 1931
k memorandum is enclosed which explains the terns used in the compilation, and gives such other information LLs Is necessary to Interpret and
correct it properly.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
E. A. Goldenweiser
Chairman, Committee on Branch,
Group and Chain Banking.
Yederal Reserve Cammitt•J I
Branch, areup and Chain dunking
AltILIATIOWB
Seplanation of Information compiled on Form C
Porn C has been prepared for the purpose of compiling informs..
tion regarding the following types of affiliates of banks:
(1) All non-banking affiliates of state and nem
time' barks, including securities eompanies, mortis
gage companies, investment trusts, insuranee cowpanic's, holding companies, foreign banking oompaniee
and safe deposit eempanies. In each ease the name
of the bank and the names of its subsidiaries or
affiliates are given.
(2) All affiliations between two banks only.
This affiliation may exist either through edam
stockholding interest, trusteed stooks direct
ownership, or other aeons* The enememeet enapp/00
of this are the affiliation of a trust eappeny
with a national bank and of a saving. bank with
a commercial bank.
•
The inforration deserthed is intended to supplement the existing
reser& of the Federal Reserve Board on the subject of chain and group affiliations, which &-t present include only affiliations comprising three or
mere bonito. It is desired that the material compiled on Fern C be examined
by the Deserve Bank, cheeked for accuracy and completeness with its renords,
and returned to the Committee. It is assumed that the Deserve Banks already
have rewords of this information in sole form for their own use, but if not,
perhaps a check may be made by referenoe to re lit files and examiners' reports, or, v'here advisable, by direct reference to the organizations nhich
are listed.
The *compilation has been made as of current date in so far as
possible. Changes and corrections in the information may be made Aireotly
on the faoe of the Form itself if desired. A supply of blank forms is also
enclosed for recording affiliations that need to be added.
Perhaps the most important single Item of information is the mode
of eontrol of affiliates, which is set down in the second colum of Perm C.
In the majority of affiliations there is one bank or corporation which is
dominant over the other affiliates, and which is controlled not by any
other bank or corporation, but by IA own general stockholders. Accordingly wherever the name of the dominant member of an affiliation appears,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
the words "le oral stockholders" hsee noon used in the column headed "Bow
eentrolledo" It makes no differense uhethor the stook is closely hold or
not. Thus, for essmple, the First Notional Bank of New lark is controlled
by its general steekholderso so far as this study is evuesewod. The first
Soeurities Company, however, is controlled by the First National through
traatOfthip of the seeurities company's stock. lecordingly, in the proper
column the words "Oeneral stookholders" are used to describe the control
of the beak itself, yoLich is dominant, and the words "Stock trusteed for
First National" are used te desevibe the control of its affiliate.
In summary, the seems or manner of control will owls under the
heads
five
following
I Ownership of eontrolling stook by general stockholders.
This applies to the, dominant amober of the affiliation.
II Trusteeship of the stook of one moober of the affiliation for the stockholders of another nombor of the affiliation.
III
Ownership of controlling stock or one oeMber of the affiliation by anOther member, the stock beiA a direct
asset of the latter meMber.
IV
Ownership of the controlling stock of the different memo
hers of the affiliation by an individual or group of ino
dividuals.
V
Control of one member of the affiliation by another mosbor. not through ownership of control of stock, but through
the feet that the officers of the dominant oemoer are also
officers of the controlled nember. This applies in the
ease of mutual savings banks.
In the CSISO of II, III, and IV the per oert of a subsidiary's
stock that is owned should be given vhere it is known, even though the
eompilation as it stands shove only !majority" or "minority" interest.
In oases where the per cent of stock owned is not known, the terms,
!Minority interest" or "majority interest" should be used.
Examples of designations of the five different forms of control
as shown in the eappilatien follow:
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
I
Ifteeel eteeMbeldere w; as in the ease of the Chase Batienel
Beek. indlesting that it is te iomimant member of the Oheee
effiliatise,
•410
IT
"Stook trusteed for Obese Notional'; indicating honr Chase Securities Oenpany is controlled.
III"Majority interest owned by Irving Trust*; as in the oase
of Irving investors Management Campenr•
IV
Nijority interest owned by same stockholders'; as in the
case of the Putnam flaunty National and the Mahopec Litton.
al, !:he names of the members of the affiliation being
bracketed.
"Same Ilana40MOMts; as in the case of 11...th Rational Rank,
and Bath Soda. Institution (a mutual savings bank) of
Bath, Maine.
In the absenon of definite knowledge it is often diffieult to tell
whether a given interest should be celled an investment or an affiliation.
Affiliation implies partleipation ia management, whereas tweetmento as e
rule does not. if as meth as 25 per sent of the stookSt&Usk or is
poretion is owned, therefore, the preemption is strong thet there is par.ticipation in management, and that the interest may be called an affiliation. Nut if there is lees thee 25 per sent control there is aneh more
question whether to call the inteeest see of affiliation or simply investment. in any niven case where the feats are known as to the extent of
participation in management the interest should be classed samordingly,
regardless of the per cent of control; but in the absence of knowledge
of such facts, the interest should be considered an investment if the
control is loss than 25 per sent. It is net the purpose,, of course, to
include investments in the compilation.
It will be apparent from the foregoing paragraphs that certain
teres are used in a special and perhaps novel sense. The tore Wills,tion, which is often used in a general sense implying the feet of a con"
nection, is here used in a particular sense as designnting the group or
system itself which is made up of the affiliates. Thus the *National
City affilintion* consists of the National City Rank, the National City
Company, the City Bank Farmers Trust Oompany, Interrational Ranking Corporation, etc., al/ of these corporations being "meMbers of the affiliertion." The National City Bank is the 'dominant nenber of the affiliation,"
and the others, directly or indirectly, are "controlled or subsidiary members." Thn 4..- 0r - affiliation as used therefore will apply to the ease of
two institutions linked together am well as to a "group" or 'Chain" of
any number of institutions.
The function of the conOWOO listed has been indicated as *bank"
which me/Le also a trust company eageged in commercial banking, "seourities,"
'holding," "insurance," 'mortgages.. etc.
The infOrmation regarding the state issuing the charter an the
Eats of the charter is desired for nasembahking affiliates only and is not
neleesary in the case of banks.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
It is desired that the figure for capital stook and loons and
Leuestment be supplied by the Federal Reserve bank. In the camp of banks
the figure° Should be taken free he March call reports if practicable.
In the ease of effilietee, for uhich capital took alone is to be givens
the figures should be taken fres the date nearest the ;lareh call report.
It should be made clear in all cases whether it is the bent or
a nen.benking affiliate that holds control. It is also mammary to indicate all interlediate means or control, as in cases where a coneern - hat
has a subsidiary is i turn the subsidiary of another.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 2, 1931
Mr. J. G. Fry
Assistant Federal Reserve kgent
ladaral Re6erve Bank
aichmond, Virginia
Dear Mr. Fry:
We acknowledge with thanks receipt of your letter of July 1st enclosing photostatic copies Of the investment lists of the fifty selected banks in your uistrict.
Very truly yours,
J. H. Riddle
secretary, CeAmittee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
July 1, 1931
Dr. E. A. Goldenweiser, Chairman
Committee on Branch, Group and
Chain Banking
Federal Reserve Board,
Washington, D. C.
Dear Dr. Goldenweiser:
As requested in your letter of
photostat
copies of the list of bonds,
enclose
June 25,' I
the
shown
in
last report of examination
securities etc.,
of each bank on the list enclosed in your letter.
On a separate sheet enclosed herewith,
I am giving you the date of the report of examination of
each bank and the total amount of loans and investments in
even thousands. The items included in total amounts and investments are the same as called for in articles 1 to 4 inclusive of the Board's form 105a.
Very truly yours
. G. Fry
stant Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
4
°%04
•
FEDERAL RESERVE BANK
42
"(
4 N-/P
404 C9
OF RICHMOND
June 26, 1931.
'14/4 <''
Ati.k
Federal Reserve Board,
Washington, D. C.
Attention: Mr. J. H. Riddle, Secretary
Committee on Branch, Group
and Chain Banking.
Gentlemen:
Enclosed please find reports on Forms B-3,
B-4 and B-8 for 1930 for the States of Maryland and
South Carolina.
You will note that the figures for South Carolina are as of September 24, 1930, this being the date
used by South Carolina in making up its report of condition of all State banks in South Carolina.
Very truly yours,
J. G. Fry,
Assistant Federal Reserve Agent.
JU40
11-11;:;
4 Hoxton
ME. William 4 ,
Federal Reserve gent
Federal Reserve Bank
Richmond, Virginia
Dear Ur. Hoxton:
We are enclosing herewith the names of 50 banks in
your district and would ap.xeciate it if you could send us a
list of the bonds, securities, etc., held by each of them at
the time of the last examination. The Committee is undertaking to make an analysis of the investment holdings of a representative group of banks throughout the country in order to
determine their investment policies. These banks have been
selected at random in order that they may be representative.
Perhaps the investment list in e eh oases which usually appears on page 7 of the National bank oxami-lerie report, can
be photostated at a minimum of time and cost.
In returning these lists, it would be of much assistance if you could give the total loans and investments of each
bank in order that me may group them according to size. The
items included in total loans and investments aft set forth
in articles 1 to 4 inclusive of the Board's Form 105a.
Very truly yours,
Enc.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
E. A. Goldenweiser
Chairmen, Com.iittee on sranch,
Group and Chain 3anking
Fifty Selected National Banks
in Pederal Reserve District No. 5
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
210.
21.
22.
23.
24.
25.
26.
27.
28.
29.
ao.
31.
32.
33.
at.
35.
36.
37.
38.
39.
40.
41.
42.
43.
44.
4b.
46.
47.
48.
49.
SO.
Lincoln National Bank
Canton N. B.
Farmers & Merchants N. B.
Second N. B.
First N. B.
First Ii. B.
First N. B.
First N. B.
Salisbury N. B.
Citizens L. B.
N. B. of Ossmoros
First N. B.
Wayne N. B.
N. B. of La Gmnge,
First N. B.
First N. B.
First N. B.
First N. B.
Conway N. B.
First N. B.
Planters N. B. 1
First N. B.
Hanover N. B.
TtriirC - Ir N. B.
National B.
Second N. B.
First N. B.
First N. B.
Peoples N. B.
N. B. of Harrisonburg
First N. B.
First N. B.
Marshall N. B. & T. Co.
First N. B.
Farmers & Merchants N. B.
First N. B.
First N. B.
First N. B.
Farmers & Merchants N. B.
Tazewell E. B.
First N. B.
First I. B.
National Exehano
N. B. of Commerse
N. B. of Davis,
Gary N. B.
1. B. of Bummers Boone N. B. ...
Merchants N. B.
First N. B.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
6oashingtons D. C.
Baltimore,
Maryland
ft
Cambridge,
Cumberland,
Mandeville
Hampstead,
Lamasonings
Parkten,
Salisbury,
ftsternport,
Asheville,
North Carolina
ft
Durham,
Goldsboro,
La Grange,
Morgantown,
Roxboro,
Washington,
Camden,
South Carolina
It
Conway,
Holly Hill,
•
Saluda,
,bincdon,
Virsfnia
Ashland,
Bluefield,
Chilhowie,
Culpeper,
Danville,
Ferrum,
Gate City,
Harrisonburg,
Lebanon,
Luray,
Marshall,
Newport News,
Onley,
Poquoson,iP.u.uddi
Richlands,
Rural Retreat,
Staneey,
Tazewell,
Williamsburg,
Yorktown,
West Virginia
Beckley,
Charleston,
Davis,
Gary,
Hinton,
Madison,
Montgomery,
Parkersburg,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
S
FEDERAL RESERVE BANK
OF RICHMOND
June 24, 1931
Mr. J. Mt". Riddle,
Secty., Committee on Branch
Group and Chain 13anking,
Federal Reserve Board,
71ashington, D. C.
Dear Sir:
Enclosed please find reports on forms B-3, B-4 and
B-8 for June 30, 1930, for West Virginia.
- very t uly,
J. . Fry
Assist Federal Reserve Agent.
Jr1F:YcG
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE
eANK
June 22, 1931
Mr. J. H. Riddle, SecretarY
Committee Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear Mr. Riddle:
Referring to your letter of June 2nd and to our
'phone conversation of last week, beg to advise that we are now
engaged in preparing the figures you desire on Forms B-4 and B-8
for 1930, for South Carolina, West Virginia and Maryland.
The Virginia
be available for some time,
complete the report on Forms
and the reports on Forms B-4
lina.
and
but
A-2
and
North Carolina reports will not
as soon as we can do so we will
and A-3 for Virginia for 1930.
B-8 for Virginia and North Caro-
Regretting very much the delay which is beyond
our control, I am,
Very truly yours
G. Fry
stant Federal Reserve Agent
FEDERAL RESERVE BANK
OF RICHMOND
June 19, 1931
.to
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1.Ir. J. H. Riddle, Secretary
Committee Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear Mr. Riddle:
Referring to our conversation of yesterday, would
say that I have checked Forms B-3 and B-8 for Virginia for the
year 1925, and find that the aggregate loans and investments of 21
banks in cities with a population of 100,000 and over,on Form B-8
should read $6",995. This correction will bring Forms B-3 and B-8
into agreement.
lhe error is very much regretted.
Very truly yours
G. Fry
Assistant Federal Reserve Agent
June 2, 1931
Mr. j. G. Fry
Assistant Federal Reserve Agent
Federal Reser7e Bank
Richmond, Virginia
-ear Lir. Fry:
The information on bank changes in the state of Virginia
which was sent in by you on Forms A-2 and A-3 under cover of your
letter of 1;arch 12 included the years 1921 to 1929 but not the
year 1930. The Committye has received the data from practically
all of the states now and is, therefore, particularly anxious to
have the few remaining states report in oraer that the study of
bark changes may be completed. We should be obliged accordingly
if you will see what can be done to expedite the return of the
information in ouestion.
Likewise we have not yet received for the states in
your district the 1930 figures requested on the B forms. On
December 18, 1930, you sent us this data for the years 1920
and 1924 stating that you would give us the 1930 figures as soon
as aiailable. Except for these few states we are now rady to
tabulate this material and should greatly appreciate it if you
could expedite the collection of the 1930 figures.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
J. H. Riddle
Seci.etary, Committee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
May 8, 1931
Mr. Z. G. Fry
Assistant Federal Reserve Ammt
Federal Reserve Bank
Richmond, Firginia
Dear Ir. Pry:
We acknovledge vith thanks your letter of
enclosing Forms A-2 and A-3 covering changes in
the number of state banks in Forth Carolina for the years
1921-1:,30.
Very truly yours,
J. H. l'iddle
Secretary, Comaittee
Grout) and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
el
FEDERAL RESERVE BANK
OF RICHMOND
Committee on Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Gentlemen:
Enclosed please find report on changes in banks
for the State of North Carolina for the years 1921--1930
both inclusive on forms A2 and A3.
Very truly yours
J. G. Fry
sistant Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1
May 1, 1931
Mr. J. G. Fry
Assistant Federal Reserve Agent
Federal Reserve Bank
'?ichmond, 7 rginia
Dear Mr. Fry:
In accordance with the renuest contained
in ::our letter of April 30th we are enclosing for
your use 100 additional copies
Form A-3.
Very truly yours,
J. H. Riddle
Secretary, Counittee on Branch,
Group and Chain Banking.
Enc.
C. A
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1
May 1, 1931
Mr, J. G. Pry
Assistant Federal Beservo .L'.gent
Federal Reserve Bank
Riohmond, Virginia
Dear ir. Fry:
Thank you very =Loh for your letter of April
28
. .enclosing a suspension aohodula on the Bank of
Aadsor, Winsor, North Carolina.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branoh,
Group and Chain Sanking
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
FEDERAL RESERVE BANK
OF RICHMOND
April 30, 1931
Committee on Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Gentlemen:
}ease send me at once 100 copies of Form A-3 .
Very truly yours
J. G. Fry
Assistant Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1
April
Mr. J. G. Pry
Assistant 2ederal Reserve Agent
Federal Reserve Bank
Richmond, 7irginia
Dear Mr. Fry:
We acknowledge witn thanks your letter of April
28th enal)sing forms A-2 and A-3 covering bank on!niges in
the State of Maryland for the year 1930.
7ery truly yours,
J. H. Riddle
Secretary, Committee on 9ranch,
Group and Chain Banking.
c A4
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
/
April 28, 1931
Federal Reserve Board
Washington. D. C.
Atten:
Committee on Branch, Group
and Chain Banking
Gentlemen:
Enclosed please find reports of bank changes
during 1930 for the State of Maryland, on Forms A-2 and
Very truly yours
(/
Assistant Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
•
FEDERAL RESERVE BANK
OF RICHMOND
Federal Reserve Board
Washington, D. C.
Attention Committee on Brach, Group
& Chain Banking
Gentlemen:
As requested in LIntjallpuLnde 1,3,14er.prjtmIM, I
enclose herewith schedule for the Bank of Windsor, Windsor, N. C.
which closed December 20, 1930.
The Liquidating Agent of the Corporation Commission of
North Carolina writes as follows concerning this schedule:
"This institution, while it suspended payment for a
short time, was never officially taken in charge by the Corporation Commission. For that reason it was omitted from the report
made to you some time back."
Very truly yours
J. G. F
stant Federal Reserve Agent
t- 31
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
April 20, 1931.
Federal Reserve Board.
Washington, D. C.
Attention: Mr. C. B. Hammond
For the Committee on Branch,
Group and Chain Banking.
Gentlemen:
We are endeavoring to obtain a schedule covering
the Bank of Windsor, Windsor, North Carolina, mentioned in
your letter of April 18, and will forward it promptly upon
its receipt by us.
Ver
ruly yours,
R. W. Mercer,
Federal Reserve Examiner.
P
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 18, 1931
Mr. J. H. Fry
Assistant Federal Reserve Agent
Federal Reserve Bank
Riohmond, Virginia
Dear Mr. Fry:
Your 12e_t_te,r 0/LAjwi1_17, enclosing North
Carolina suspension schedules which we recently returned for additional inforantion was duly received.
In our letter of April 8,you will recall
that we reported no schedule had bcen received on the
aank af 7andsor, Vhion the Division of Ban,: Operations
shows as having falloci on December 19, 1930 and reopened
January 10, 1931. With the exception of tilis case our
records on suspensions for North Carolina 13 now complete.
7ery truly yours,
C. B. Hamaond
For the CommittPe on Branch,
Group and Chain Banking
erti
4'1 -
:r-P
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
FEDERAL RESERVE BANK
OF RICHMOND
0
April 17, 1931
tr,
iVels.
// 0
4*,
Cid,oPc5,
Federal Reserve Board
Washington, D. C.
Atten:
Committee, Branch, Group &
Chain Banking.
Gentlemen:
As requested in Mr. Hammond's letter of qril 8, I
asked the Corporation Commission of North Carolina to give
me more complete information concerning the 10 schedules on
failed banks which were sent me in Mr. Hammond's letter of
April 10. The schedules are enclosed herewith, together with
a copy of Mr. Taylor's letter which is self explanatory.
I also enclose schedules for the Farmers & Merchants
Bank, Elkin, North Carolina, which suspended May 27, 1921, reopened Nov. 23, 1921, suspended again Dec. 20, 1924. These
papers appear to complete the schedules of failed banics of
North Carolina.
Very truly yours
• G. Fry
istant Federal Reserve Agent
1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
COPY
STATE
OF
NORTH
COReORATION
CAROLINA
COMMISSION
Raleigh
April 16, 1931
Mr. J. G. Fry
Ass't Federal Reserve Agent
Federal Reserve Bank
Richmond, Va.
Dear Sir:
I am sorry that we omitted from the report sent to
you for banks closing prior to 1930 answers to certain questions.
. In the case of questions Nine and Ten, we have no information here concerning banks which closed prior to March, 1927.
For that reason you will notice that I have written into the answer to
question Nine "No report of progress of liquidation". These banks
were handled under the old receivership plan and it would be necessary
to go to the office of the various Clerks of the Superior Court in
North Carolina and endeaver to find from their records reports of such
progress, and where it has fallen my lot to make such examinations in
the past I have found these records very incomplete and of little value
as an indication of such progress.
We sent to you yesterday the reports on the Farmers
Merchants Bank, Elkin, North Carolira. They have already arrived or will arrive to-day in RiChmond.
Yery truly yours
(Signed)
CIT:JM
Enclosures
C. I. Taylor
r-
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 13, 1931.
Mr. J. q.
;.ssi st ant
'2ry
?erleral Reserve Agent
7ederal je Eie r7e 3ank
aichmond, Tirginia
7)ear
Receipt is acimwiledged of your letter of
April 10th enclosing Tables I-e, II-e,
and 7-e for the year 1930 ror the states in your
district.
Very truly yours,
C. B. Hammond
For the Conittee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
April 10. 1931.
Federal Reserve Board,
Washington, D. C.
Attention: Mr. J. H. Riddle, Secretary
Committee on Branch, Group
and Chain Banking.
Gentlemen:
Enclosed please find 1930 tables I-e, II-e,
IV-e and V-e compiled in connection with Earnings
project of your committee.
Very truly yours,
A
tant Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
0
April 10, 1931.
Ur. J. G. Fry
Assistant Federal eserve Agent
Federal Fe serve Bank
Richmond, Virginia
Dear Kr. Fry:
In accordance with the re-uest contained
in your letter of Aril 9th, we are herewith returning
ten of the supplementary schediles on rorth Carolina
barks w!lich suspended prior to 1930.
Very truly yours,
C. B. Hammond
For the Committee on Brar-".
Group and Chain Banking.
Enc.
FEDERAL RESERVE BANK
OF RICHMOND
April 9, 1931
Mr. C. B. Hammond
For the Committee on Branch
Group & Chain Banking
Washington, D. C.
Dear Mr. Hammond:
Replying to the last paragraph of your letter
of the 8th, beg to request that you send me the supplementary
schedules of banks which suspended prior to 1930, in order that
I may send them to the State Bank examiner and obtain the information you desire.
I do not think the North Carolina Depar4ment
has kept copies of these schedules and for this reason I think
it best to submit the schedules to him. When I send the schedules to the examiner I will also inquire about the Bank of
Windsor which failed on December 19, 1930 and reopened in 1931.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours
J. . Fry
Assistant Federal Reserve Agent.
April 9, 1951
Mr. R. W. Mercer
Federal Reserve Examiner
Federal Reserve Bank
Richmond, Virginia
Dear tir.
iiany thanks for your lett:'r of April
•
8 enclosing a suspension schedule on tho Bank of Swansea,
Swansea, South Carolina.
According to our records this
comJ1letes the suspension reports on South Carolina banks
for the entire period 1921-50 inclusive.
Very truly yours,
C. B. Hammond
Wor the Committee on Branch,
Group and Chain Banking
R.1-1G;rf
•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
April 8, 1931
Mr. C. B. Hammond
For the Committee on Branch
Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear luir. Hammond:
Your letter of April 7 requesting schedule
on the Bank of SwanseaT§.7D. has atiimavsceived End the missing schedule, which was inadvertently omitted, is herewith
enclosed.
We shall take pleasure in expressing your
appreciation to Mr. Fant.
Very400Y You rs
R. W. i.ercer
Federal Reserve Examiner
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 8, 1931
Mr. R. W. Mercer
Federal Reserve Examiner
Federal Reserve Bank
Richmond, Virginia
Dear Zr. ,sercer:
44$ have your letter of_4P41. 7 enclosing suspension
schedules on North Carolina banks.
Acoording to records of the Division of Bank Operations there ma one additional suspension in North Carolina
during the last half of 1930, namely, thut of the 3ank of
Windsor which is reported to have failed on iecuber 19, 1930
and reopened January 10, 1931. aill you kindly ask the State
Banking Department to supply a schedule on th,s cli.se, or explain why it is not properly considered a suspension within
the t:rms of the Committee's definition?
With reference to the eupplementary scodules on
banks which suspended prior to 1950, we find that in only
two oases is. it indicated what disposition wLs nt,,de of the
bank subsequent to failure. Ne should like, if at all possible, to know .'hether these banks have been reopened, taken
over, cowplotely liquLated, or whether the7 are still in
procFes of licuidation.
Very truly yours,
C. B. hammond
For the Committee on Branch,
Group add Chain Banking
HU:rf
FEDERAL RESERVE BANK
OF RICHMOND
April 7, 1931
Mr. J. H. Riddle, Secretary
Committee Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear Mr. Riddle:
Your letter of February 25 in regard to suspension schedules of closed banks refers to 12 suspensions
in North Carolina prior to July 1930 for which no schedules
have beenleceived.
Enclosed you will find 11 of these; the
schedule covering the Farmers & Merchants Bank of Elkin
we areleturning to the State depurtment for additional information.
Schedules covering North Carolina suspensions
for the last half of 1930 are also enclosed.
With the exception of the bank mentioned above
this should complete the suspension schedules for this district
through 1930.
Very
ly yours
L
R. W. mercer
Federal Reserve Examiner
z)
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 7, 1931.
VI. Mercer
Federal Reserve Examiner
Federal Reserve Bank
lichmond, Virginia
)ear Mr. :,:ercer:
We acknowledge with thanks your twV_letterf; of April
2nd, the one enclosing schedules on South Carolina banks which
suspended during the last half of 1930 and the other in reply
to our inquiry with respect to particular South Carolina banks
on which conflicting renorts had been received.
According to the Division of Bank Operations there
was one additional suspension in .cluth Carolina during the
last half of 1930: namely, the Bank of Swansea, which is
reported to hnve closed on July 8, 1930. Will you kindly ask
the Banking Commissioner of South Carolina to sunply a schedule on this bank or to explain why it is not properly considered a suspension within the terms of the Committee's definition.
7ie shall be pleasei to have you express our aopreciation to 1.r. Pant for his efforts in supplying us explanatory data concerning the banks enumerated in our letter of
February 2nd. It has been very helpful to us in our attempts
to reconcile our records with those of the Division of Sank
feel now that -me hnve about as accurate and
Operations.
thoroughgoing information on suspensions in South Carolina
ns it is possible to compile.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
C. B. Haaniond
For the Comittee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
April 2, 1931
Mr. J. H. Ridd'e, Secretary
Committee Branch Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear Mr. Riddle:
Enclosed please find schedules covering
suspensions of banks in South Carolina for the last half
of 1930.
R. W. —ercer
Federal Reserve Examiner
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
April 2, 1931
h.r. J. H. Riddle, Secretary
Committee Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear Mr. Riddle:
Please refer to your letter of February 2/in
which you requested more comprehensive information concerning
bEink suspensions in South Carolina.
Enclosed herewith is a copy of a letter and
schedules which we have received from the State department
in answer to your request.
We are in a position to appreciate the trouble
to which Lir. Fant has gone in his efforts to cooperate with
your committee and ourselves and sincerely hope that the data
contained in his letter will enable you to dispose satisfactorily of all of the questions which have arisen in owinection with
this state.
R. W. iviercer
Federal Reserve Examiner
Copy
STATE OF SOUTH CAROLINA
Executive Department
STATE BANK
EXA.INER
Columbia, S. C.
iiiarch 25, 1931
111r. J. G. Fry
Assistant Federal Reserve Agent
Federal Reserve Bank
Richmond, Virginia
Dear 2.,r. Fry:
We have at last completed obtaining the information wanted by
the Federal Reserve Board's committee on branch, group and chain banking
and are submitting the facts as we find them.
Taking the discrepancies up according to their numbers, we find
as follows:
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1.
Peoples Bank, Honea Path, S. C.
We are handing you under separate cover the first closing
statement which was not sent last fall, the correct date
being indicated on the form.
2.
Citizens Bank, Honea Path, S. C.
Same as above.
3.
Bank of Lynchburg, '3. C.
We find that the correct date as to the closing of this
bank was as reported by this office last fall.
4.
We are handing you, under separate cover, the closing
figures of the first closing of the Bank of Clio, the
date of which appears on the form. The correct date
of themcond closing was November 11, 1921.
5.
Bank of Branchville
You report that the Division's records show that this
bank closed in 1921 and 1922. We have not been able
to obtain any information with regard to these closings.
Our records seem to indicate that there was an agreement
with the depositors whereby the bank was kept open until
the final closing on December 31, 1924, and the figures
for this closing have previously been sent to your office.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
-2-
6.
Bank of :,ionetta
We have handing you, under separate cover, figures of the
first closing of ibis bank, and wish also to state that the
dates which you have are correct.
7.
State Loan & Savings Bank, Bamberg, S. C.
Under separate cover we are handing you figures of the first
closing as of i'4arch 16, 1928. The dates which you have on
this bank are correct.
8.
Westminster Loan and Trust lo., Westminster, S. C.
The correct datefbr the closing of this bank is December
14, 1925.
9.
Bank of Elliott, S. C.
The correct date for the closing of this bank is April
3, 1922.
10.
Bank of Little Rock, S. C.
The correct date for the closing of this bank is :4arch 2, 1923.
11.
Citizens Bank, Pinewood, S. C.
The correct date for the closing of this bank is December 29, 1923.
12.
Bank of Hemingway, S. C.
This bank closed April 1922. Depositors agreed to freeze their
deposits; the bank reopened and was finally closed on November 3.
1923.
13.
Farmers Bank, Fort ...otte, S. C.
This bank ceased accepting deposits on October 3, 1923 and
liquidated its affairs with the doors open. Final liquidation was
completed December 31, 1925, the date reported on our form previously sent you.
14.
Bank of Bonneau, S C.
This bank closed December 9. 1920
15.
Bank of ttingsburg, S. C.
This ban went into voluntary liquidation on January 15, 1921
paying their depositors in full.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
-3-
16.
Farmers Bank, Chesterfield, S. C.
A receiver was appointed for this bank on ii,arch 16, 1922.
However, the bank had been in difficulties since 1919 and
had accepted deposits only to a very limited extent. We
are handing you, under spearate cover a report to cover this
bank, and while the information is not absolutely correct it
is the best that we can obtain.
17
Bank of Columbia, Columbia, S. C.
We are handing you under separate cover the balance sheet
of this bank before it was taken over by the Llerchants Bank.
18.
Sprin,3s & Shannon, Camden, S. C.
We hk,ve talked with "I‘,r. Shannon, one of the members of
Springs and Shannon, and are informed that this firm has done
no banking business since about the year 1904, and we are at
a loss to understand how it was reported as having suspended in 1923.
19.
The Liberty Trust Company, Columbia, S. C.
This corporation did not accept deposits and we therefore have
no information with regard to it.
20.
Peoples Bank of Chestertield, S. C.
Your records show this bank closed November 25, 1924. The
bank did not actually close but the directors put up securities to
the amount of $37,500.00 and the tiank operated under the above name
until January 1, 1925, at which ti,Le a new bank was organized, Known
as "Peoples Bank". This last organization was taken over in 1928 by
the Bank of Cheraw & Chesterfield County.
21.
Citizens Bank of Elloree
This bank was taken over by the First National Bank of Elloree
on December 18, 1924.
22.
Bank of Gillart
We are enclosing under separate cover balance sheet as of the
first closing of this bank.
23.
Peoples Savings Bank, Clio, S. C.
The dates which you show as to the closing of this bank are
correct.
24.
Peoples Bank of Lynchburg
The dates you show with regard to this bank are correct.
25.
The Bank of Plum Branch
The Bank of Plum Branch first closed November 1925. reopened
December 1925, and closed again .arch 25, 1926. The figures
we sent your office previously were as of the first closing
because of the fact that they were practically identical with
the figures of the last closing.
-4-
•
26.
Bank of Yemassee.
The dates which you show as to the closing of this bank are
correct.
27.
Consolidated Bank, LcColl, S. C.
The dates which you show, as to the closing of this bank
are correct.
28.
State Bank of North
The dates which you show as to the closing of this bank are
correct.
29.
Peoples Bank & Trust Company, Pageland, S. C.
The date of the first closing of this bank was January 6, 1930.
The date it reopened was January 18, 1930.
We hope that the above information will complete the
South Carolina file, and we are glad to be of this service.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
With kindest personal regards, I am
Cordially yours
(Signed)
Albert S. Fant
State Bank Examiner
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Mnrch 31, 1931.
Mr. 1. 7'. 1,:ercer
Federal Reserve ixaminer
?ederal Reserve Bank
Richmond, Trginia
Delr
716) acknowleav with thanks your letter of march
30th enclsing a scheille covering the sasp.nsion of the
3ank of The Monongnhela 7alley at Morgantown, West Virginin.
7er7 truly :7ours,
C. 3. Hammond
For the Ccomittee On Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
march 30, 1931
F3deral Reserve Board
Washington, D. C.
Attention Mr. C. B. Hammond
for the Committee
on Branch, group
and Chain Banking
Dear Mr. Hammond:
Enclosed please find schedule
covering the suspension of the Bank of The
monongahela Valley at Morgantown, West Virginia,
as requested in your letter of March 26th.
Very truly yours
R. W. mercer
Federal Reserve Examiner
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
March 27, 1931
Federal Reserve BJard
Washington, D. C.
Attention:Mr. C. B. Hammond
for the Committee
on Branch, Group
and Chain Banking
Dear Mr. Hammond:
We are today communicating with the
West Virginia banking authorities in regard to the Rank
of Monongahela Valley at Morgantown which, according to
1Qttax_of yesterdays Is shown in your records as having closed on December 31, 1930.
As soon as the required information is
received it will be forwarded to your committee.
Very truly yours
R. W. kercer
Federal Reserve Examiner
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 26, 1931
Mr. X. S. Mere.,
Federal Reserve Xxaminer
Morel Reserve Bank of Richmond
Riehmend, Virginia
Dear Mr. Xersor:
WO aeknowledge *IA thanks jewr_letter of
sohedulee on three limit Virginia
banks whieh suspended operation during the last half
St 19w. We find, however, that the rewords of the
Division of Bank Operations show one additional suspeosion during this period, that of the Bank of
MOseogihela Valley at Nergeotown, whisk closed on
Dessober 31, 19W. Will you be good enough to supply ma a schedule on this bane
Very truly yours,
C. B. Hammond
for the Committee on
Group and Chain Bankinr
RLG:RF
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
March 25, 1931.
Federal Reserve Board,
Washington, D. C.
Attention:
Mr. J. H. Riddle, Secretary
Committee on Branch, Group
and Chain Banking.
Gentlemen:
Referring to your letter of February 25, in
regard to bank suspensions, there are enclosed three
schedules covering suspensions of state banks in West
Virginia for the last half of 1930. This should complete the data on this state.
Very
ruly yours,
R. W. Mercer,
Federal Reserve Examiner.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
:arch 16, 1931.
Mr. T.
aminer
l'ederal ,eberve
?ederal neserve Bank
"ii3hmand, Virginia
Dear ;Ir. nercer:
e aclolowleCT with thanks your letter of :arch
vith enclosing a suspension schedule on the liesfipeae Bank
of Baltimore, Maryland, the only state ban:- suspenEon In
Maryland during 1930. The addition of this case completes
our record of bank suspensions in that state for the entire
period 1921-1930 dnclusi7e.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group faid Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF F?ICHMOND
March 14, 1931.
Federal Reserve Board,
Washington, D. C.
Attention:
Gentlemen:
Mr. J. H. Riddle, Secretary,
Committee on Branch, Group
and Chain Banking.
With reference to your letter of February 25th
regarding bank suspensions, there is enclosed one form which
covers Maryland suspensions for the last half of 1930, and which
should complete the data on this State.
Very truly yours,
R. W. Mercer,
Federal Reserve Lxaminer,
for J. G. Fry.
Assistant Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 14, 1931.
Mr. R. W. Mercer
Federal eserve 7xaminer
Federal Reserve '_Isn1,7
Richmr,rd, 71rgir1a
Dear
We ec-Knowledge receipt of' your letter of
M9reh 12th with its onclosurn of forms A-2 ara A-3
coverin changes in the number of active state banks
In 7irginia ro.- the yeaml-A. to 1S-J2S inolwAve.
note 7our comment upon the olasifioation of certain
chancreF an0 assume thut iL is satisfsctory. be are
working or other states at present, and as soon as lre
get to the Virginia chanfres we will let you know if
sry ,nestiork.
there
Very truly yours,
J. H. 7.iddle
Secretary, Committee on ;ranch,
Group and Chain 'iankinet.
FEDERAL RESERVE BANK
OF RICHMOND
March 12, 1931.
Federal Reserve Board,
Washington, D. C.
Attention: Mr. J. H. Riddle, SecretarY
Committee on Branch, Group &
Chain Banking.
Gentlemen:
In the absence of Mr. Fry, I am enclosing Form A-2, together with
supporting Forms A-3, showing changes in the active number of state banks in
Virginia for the years 1921-29. inclusive.
Your Committee's letter of November 10, 1930, requesting this data
had attached lists showing increases and decreases in number of state banks by
conversion from and to national charter. The list of increases should, according to our records, have in addon to the two banks shown, The American
National Bank of Richmond, Va., which on December 31, 1928 was converted into
the American Bank. The fact that the American Bank immediately took over the
American Trust Company to become
eIIercan Bank & Trust Company may have
caused this loss to the National System to be classified by you as a merger
with a state institution under state charter. However, the American Trust Comsa;
pany was in no sense a commercial bank,
consisting of mortgages only.
and in calculating the number of state banks we have not used
and the change
is shown on Form A-2 as "Conversion from National Charter". To the list of decreases should be added the Bank of Poquoson, Odd, Va., which in January 1922
surrendered its state charter to become the First National Bank. A copy of
Form A-1, as it should appear after adjusting for these changes, is enclosed
for your benefit.
If for any reason the Committee holds that the conversion of the
American National Bank was. instead, a consolidation, it will be necessary to
adjust Form A-2, and make out a Form A-3 covering the change. Please bear in
mind, however, the fact that the bank in question took out a new state charter
and then merged with a non-commercial state institution which had not been
counted in our study. The increase in number of state banks cannot be classified as a consolidation of national and state banks under state charter as
we had no state bank with which the other could consolidate.
I shall be very glad to give you any further information within
my power.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
R. W. Mercer,
Federal Reserve Examiner.
for
J. G. Fry,
Assistant Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
i•
FEDERAL RESERVE BANK
OF RICHMOND
March g, 1931.
Federal Reserve Board,
Washington, D. C.
Attention: Mr. J. H. Riddle, Secretary
Committee on Chain, Branch
and Group Banking
Gentlemen:
Replying in part to your letter of February_25, requesting information in regard to bank suspensions, the following quotation from a letter received from the banking authorities of
Virginia should complete your data in respect to this state:
"First State Bank. Monroe._ Va. Under date of
November 15, 1920, the State Corporation
Commission issued to the stockholders of
that institution a dissolution certificate
and we were duly notified on November 20,
1920, that all depositors of the First
State Bank of Monroe had been paid in full.
The Commercial Exchange Bank of Norfolk Va.
The National Bank of Commerce of Norfolk
took over the assets of the Commercial Exchange Bank of Norfolk as of January 27,
1922, and assumed its deposit liabilities.
Our records, therefore, do not show this as
a bank failure.
The Fidelity Bank. Scottsville. Va., which you
show as closed February 11, 1925, was a
private bank and we, therefore, are unable
to furnish any information in regard to it."
We have requested the needed information and are endeavoring to secure it as speedily as possible but, as Mr. Fry
pointed out in his letter of February 26, matters "closer to
home" are engaging the state departments and we cannot afford
to crowd them.
Very truly yours,
Wm. W. Hoxton.
Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 6, 1931.
Mr. William W. Hoxton
Federal Reserve Agont
Federal Reserve Bank
Richmond, Virginia
Dear L:r. Hozton:
Thank you for your note of March 5th enclosing the
reports of the North Carolina Banking Department for the years
1928 and 1929.
I note that you will forward the report for
1930 when it is printed.
I am sorry to hear that your staff is at preEent
depleted through sickness and hope that Mr. Fry as well as
the two examiners will make speedy recoveries.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
MRS. WYA,TTAIKEN.
ALBERT S. FANT
'TATE BANK EXAMINER
SECRETARY
STATE OF SOUTH CAROLINA
EXECUTIVE DEPARTMENT
STATE BANK EXAMINER
COLUMBIA. S. C.
5
1931
1,1r. W. W. Hoxton,
Chairmen and :
,ederal Reserve Agent,
Federal Reserve Bank,
Richmond, Virginia.
Dcar
r. Hoxton:
This office /ick •'sledges re ei t of yours under
te of
March 2nd, 1931, together y(ith
copy of a
tt r from Mr. J. H. Riddle,
Secretary, Committee on
an4.,Group and C
anking, F,-deral Reserve
Tioard 7ashington.
The additiohs4 i
30ard is now being compiled nn4Nwe
duping the month o
sho
least.,
This ai
rk w
the reason the: So
Carolina
had to do (14e
bit of extra w
eked for by the Federal Reserve
have same finished certainly
your hands by April let at
en mailed you earlier but for
now in session and :ye hats
ate d
no.z cohemplate.
;7
rytr
Albert S. Fent,
tate Ban
aminer.
Cy
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Mr.J. H. Riddle, 'ecty.,
Committee on Branch,
and Chain Banking,
Federal Reserve BoafT,'I
Washington, D. C.
'
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1N1.
J. J. ?ry,
Assistant 2ederal Tieservo Agent,
Feueral :ieserve
.
Bank,
Riciimond, lirginia.
7.)ear 2r. ?ry:
Receint i
acknowledged of your letter of
.,:arch 4th enclosing fonts A-2 and A-3 showing
hanges
in tae number of state tianits from junuary 1, 1921, to
:-e3ember 31, 1930, for the State of South Crolina.
7sry truly yo71rs,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Barking.
411.1
https://fraser.stlouisfed.org
L
Federal Reserve Bank of St. Louis
March 5, 1931.
Mr. William W. Hoxton
Federal Reserve Agent
Federal Reserve Rank
Richmond, Virginia
Dear Mr. Hoxton:
Thank you for ;Tour letter of March 4th enclosing
same data covering earnings and expenses which wile sent to
you by Mr. 0. E. Summers, Assistant comAssioner of Ranking
at Charleston, 7Iest Virginia.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
110XTON
CHAIRMAN OF THE BOARD OF DIRECTORS
FEDERAL RESERVE AGENT
RICHMOND. VA
FEDERAL RESERVE BANK OF RICHMOND
t
rallft
West Virginia30/11X be
ermitted to establish branch institutions under a bill initroduced in the
senate yesterday by Senator Helmick,
republican. Tucker. The new
code
prohibits the establishment of branch
.
banke.
Under Helmick's bill, before a branch
is established a bank must have a
capital and surplus of $50,000 plus a
capital and surplus of $25,000 for each
branch established. It would be prcr
vided, however, In small towns of less
than 1,500 population and where there
are no banks, an institution whose
main place of business is less than
five miles away
may
establish
a
branch..
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
!.arch 4, 1931
The Federal Reserve Board
Washington, D. C.
Atten:
Committee, Branch, Group
and Chain Banking
Gentlemen:
Enclosed please find reports of bank changes from
January 1, 1921 to December 31, 1930 on Form A-3, and a
summary of these changes on Form A-2, furnished us by the
State Bank Commissioner's Department of South Carolina.
Very truly yours
J. G. Fry
Assistant Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
FEDERAL RESERVE BANK
OF RICHMOND
_arch 4, 1931
1:.r. J. H. Riddle, Sectly
Committee Branch, Group and Chain Banking
Faderal Reserve Board
Washington, D. C.
Dear -r. Riddle:
With further reference to yours of February 28th,
I am enclosing some data covering earnings and expeases, sent to
me by 1;.r. 0. S. Summers, Assistant Commissioner of Banking at
Charleston, West Virginia.
I have just heard also from the Virginia Commissioner who says that his files are silent on the subject.
As soon as I hear from L:aryland, North Carolina and South
Carolina, I will advise you.
Vary truly yours
W. W. Hoxton
Chairman and Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 3, 1931.
Horton
Mr. William
federal eserve ',gent
Federal Reserve Bank
Richnond, Virginia
Dear Lr. Hoxton:
Thank you for your letter of March 2nd with the
suggestion that Ur. R. W. Sims of the Hibernia Bank
Trust
Ccmpany of Ea« Orleans, Louisiana, might ha7c so:ne data reA are writing
,
garjing the earnings of state institutions.
Mr. Lims to-day.
Very truly yours,
J. H. Riddle
Secretary, Comattee on Branch,
Group and Chain Banking.
February 28, 1931.
1V,r.
'ear
Roxton,
Federal Reserve Agent,
Federal Reserve Bank of Richmond,
Richmond, Virginia.
r. Hoxton:
In connection vith the earnings project of this Committee,
we are anxious to be informed as to the existence of statistics concerning the income accounts of state banks. Our best information
at present is that those state banking departments that have collected
statistics covering the income accounts of state ba!!ks are very exceptional. One important exception of which AO know is that of the Kansas department, the reportsof which have contained data annually for
the thirty years of the century in which ve are interested. For the
state banks of Kansas, information is furnished which 1111 allow for
the computation of the annual rate of gross and net earnings on invested capital, the rate of expenditures for interest on deposits,
salaries and wages, other expenses, and losses. In other words,
there is availnble over a long period of time a rather full consolidated annual income account of all the state banks of Kansas.
7e should be glad if you will make a check of all the
states those capitals lie within your district and describe to us
what alterial, if any, exists in each with respect to items of consolidated income accounts for all or part of the state banks. Please
tell us at the same time in what sources such material may be found.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Febru
:Ix. J. G. Fry,
.issistant Federal Reserve Agent,
Federal Reserve Bank of Richmond,
Richmond, Virginia
De!.1- 7!r. Fry:
Receipt is acknovdedged of your letter of 7
1 nr:ar:
2./
closing tables of aggregate peroentages, typicrl rt,tios
rage deviations on a district basis for the yi 1927.
Very truly yours,
J. H. Riddle
Secretary, Committee on 3ric:,7:1,
Group and Chain Banking
"V-
0
•
44
;
•c
,
FEDERAL RESERVE BANK
4/
41
OF RICHMOND
LiC
)fo
cs%*
*14;fe,t
:
c 1/
February 26, 1931.
4174P4e
els. ey
Federal Reserve Board,
Washington, D. C.
Attention: Mr. J. H. Riddle, Secretary
Committee on Branch, Group
and Chain Banking
Gentlemen:
Receipt is acknowledged of your letter of the 25, with
respect to the status of the work in connection with information
desired by your committee.
Referring to the failure of the Maryland Commissioner to
make out schedules for the four failed banks listed in your letter
of November 21, last, beg to advise that Wm. Schwartz & Son, Annan
Horner & Company and Bernstein Cohen Company were private bankers,
and the Commissioner has no information whatever with respect to
these banks. The Farmers & Mechanics Bank of Seat Pleasant was
taken over by the Southern Maryland Trust Company, which company
was authorized to open for business in July 1920. The Farmers &
Mechanics Bank, therefore, was not in business on January 1, 1921.
The reports on bank suspensions from July 1, to December
31, 1930,f or Maryland, West Virginia, North Carolina and South Carolina will be sent you as soon as it is possible for us to obtain them
from these departments.
The omissions in Virginia, North Carolina and South Carolina
during the period from January 1, 1921 to June 30, 1930, will also be
sent you as soon as it is possible to obtain this information from
the state departments.
I know, of course, that you are handicapped in the work of
summarizing the suspension data. It is a fact that the state departments are also handicapped in their work, and if we are to get the
information at all, we will have to wait until they have time to do
this work for us. I know these men well enough to know that if we
attempt to hurry them unduly, they will very politely and firmly inform us that they will not undertake to do the work at all. It should
not be overlooked that the state banking departments have their hands
full and that their first duty is to their state governments. The
Federal Reserve Board's Committee must in these cases take second place
in their interest and affection.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly your
Ass
J. G. Fry
ant Federal Reserve Agent.
February 25, 1931.
'Mr. J. G. Fry,
Assistant Federal Reserve Agent,
Federal Reserve 3ank of Richmond,
7iichmond, 7irginia.
Dear lir. Fry:
In reviewing the present status of our records covering bank suspensions in the various states, we find the following situation with respect
to the reports from the fifth Federal Reserve district.
L:Lryland--Sohedules have been received for all suspensioL::rig
the period 1921 to July 1930 except the four oases noted in our letter of
November 21st. Eo report has been made regarding suspensions in the last
half of 1930.
'eat Virginia-2chedules covering suspensions in the last half
of 1930 have not yet been received.
Virginia—Complete except for the three omissions enumerated in
our letter of February 2nd.
North Carolina—Twelve suspensions during the perioJ - rior to
last
July 1930 are unrenorted as well ns those which occurred during the
h-llf of 1930.
South larolina--Sixteen suspensions during the period 1921 to
July 1930 are not accounted for and no schedules have been received covering suspensions in the last half of 1930.
/e are greatly handicapped in the work of summarizing the suspension data for the above states and would greatly appreciate a report re7.arding the missing schedules.
trust that you will do whatever is reasonably possible to hasten
of the schedlles covering suspensions both prior to July 1, 1930,
comnletion
the
,- st six months of 1930.
1!
and during the
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very trul:
J. H. Riddle
3430retarY, Caamittee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RiCHMOND
February 24. 1931.
Federal Reserve Board,
Washington, D. C.
Attention: Mr. J. H. Riddle, SecretarY
Committee on Branch, Group
and Chain Banking
Gentlemen:
In accordance with instructions, dated November 12,
1930, in regard to tables IV-e and V-e of Earnings Project,
we are enclosing tables of aggregate percentages, typical
ratios and average deviations, all of which have been calculated on a district basis for the year 1927.
Very truly yours,
0
0
.
0P
00,4
40
Ass stant Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
February 20, 1931.
Mr. J. G. Fry,
Assistant Federal Reserve Agent,
Federal 1--mserve 3ank or Richmond,
Richmond, Virginia.
Dear Mr. Fry:
have received your letter of February 19th
enclosing copies of the "Analy:As of 3cnk Earnings" form
covering the years 1926-1929 for all rational banks in
your district which Eusoended pay:nont during the year
19n.
lery truly yours,
J. H. Riddle
Secretary, Committee on liranch,
Group and Chain Banking.
•
FEDERAL RESERVE BANK
OF RICHMOND
February 19, 1931.
Federal Reserve Board,
Washington, D. C.
Attention: Mr. J. H. Riddle, Secretary
Committee on Branch, Group
& Chain Banking
Gentlemen:
As requested in your letter of February 16, we are sending
copies of the "Analysis of Bank Earnings" of all national banks in
this district which suspended payment during the year 1930.
The names, locations and dates of suspension are listed
below and the analysis forms, which cover the years 1926 to 1929 inclusive, are complete with exceptions as noted.
Name
Location
Date of
Suspension
10-27-30
12-27-30
12-16-30
Peoples National Bank
Mer. & Planters N/B
Union National Bank
Brookneal, Va. v
j
"
Fairmont, W. Va.
First National Bank
First National Bank
Iaeger, W. Va.
"
Kimball,"
6-25-30
6-26-30
First National Bank
First National Bank
Pineville, W. Va.'r
0
Welch,
4-30-30
6-20-30
American National Bank
First National Bank
First National Bank
First National Bank
National Bank of
National Bank of
Citizens National Bank
First National Bank
First National Bank
11-21-30
Asheville, N. C.,,
•
•
12-10-30
Ayden,
12-4-30
Charlotte, I
12-16-30
Gastonia, "
12-20-30
Goldsboro, " "
12-10-30
Greenville,"
Hendersonville. N. C. v"11-21-30
12-17-30
Laurinburg, N. C.
12-19-30
C.
N.
Lenoir,
First National Bank
Monroe, N. C.
4-23-30
First National Bank
Bishopville, S. C.v
1-18-30
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Remarks
A consolidation of Peoples N/B
with two non-member banks 11-27-29
(No analysis forms)
Assets sold to Kimball N/B
which opened 8-14-30.
Assets purchased 7-1-30 by McDowell
County N/B, Welch, W. Va.
Union N/B, Lenoir. opened 1-26-31
and assumed liabilities
Succeeded by branch of N. C. Bank
& Trust Co. Branch established 5-7-30
Rendered no end of year reports in
1929. (1929 analysis form omitted)
-2. .Faderal Reserve Board,
Washington, D. C.
2-19-31.
iltention: Mr. J. H. Riddle, Sellikary
Committee on Branch, Group
and Chain Banking.
Name
First National Bank
Nat/1 Loan & Exchange
Bank
Farmers National Bank
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Location
Date of
Suspension
Gaffney. S. C. v' v
Remarks
2-14-30
Greenwood, S. C. V Li • • v
Laurens,
5-15-30
12-10-30
Closed 11-20-25. Reopened 9-23-26
(1926 analysis form omitted)
Very truly yours,
. u. 11.17
!
"---41116117
A
ant Federa
Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
February 16, 1931.
Ur. William W. Hoxton,
2ederal Reserve Agent,
Federal Reserve Bank of Richmond,
Richmond, Virginia.
Dear Ur. Hoxtor:
We have in mind making some analysis of the
earnings* experience of nailed banks prior to the date
of suspension. Ir connection with this project, nlease
forward us the Analysis of Bank Earnings blanks for each
of the years 1926-1929 for each of the national banks in
your district, Which suspended payments durinF the year
1930. It !aay be that you will Ash to retain the orip;Inals for your files, sending us copies. Dar plan comprehends Aprking out here various grounines of the banks involved, some 160 for all twelve districts together.
Very truly yours,
J. H. Riddle
Secretnr7, Committee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
February 12,
1..r. J. H. Riddle, Secretary
Committee on Branch Group &.Chain Banking
Federal Reserve Board
Washington, D. C.
Dear 1..r. Riddle:
I have yours of yesterday; We will be very
Hammond on ::,onday and do everything we can
glad to see
to facilitate his work and cause him to enjoy his visit to
r. Fry will talk with him with respect to the
Richmond.
work of your Committee and will take pleasure in introducing him to the State bank authorities.
Very truly yours
W. W. Hoxton
Chairman & Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1
February 11, 1931.
W. Hoxton,
Federal Reserve Agent,
Federal Reserve Bank of Richmond,
Richmond, Virginia.
Dear Mr. Hbxton:
Mr. O. B. Hamond7 who i6 doing a large part of the
work of the Committee on Branch, Group and Chain Banking dealin directly with branch banking, is leaving this week-end for
the south to make a first-hand study of branch .ianking as it
has been carried on in some of the southern states, principally Louisiana, :lississippi and Alabana.
-We would like to awe him stop over in Hionuiond for
a few hours in o -der to talk with you and if possible with the
state barking commissioner of Virginia. He expects to be in
Richmond Lionday morning, therefore, and I hope you will find
it :.:onvenient to give him a little time. If there it, an:;thing
on your own mind that 70u wnnt to handle directly with the representative of the Co mittee, this will give you an opportunity
to do so.
Very truly yours,
J. H. Riddle
jecretary, Committee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
February lLi, 1931.
Z. 7. Fry,
Assistant Federal Reserve Agent,
Federal Reserve Bank of Richmond,
Richmond, Virginia.
Dear Ir. Fry:
7.'ith reference to your letter of February 9th,
we find that our computations agree with yours; that the
typical or simple average ratio for the series you give
.,e deviation from this figure is
is 7.06 and the :iverap
14.27.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
•
FEDERAL RESERVE BANK
OF RICHMOND
February 9, 1931.
Federal Reserve Board,
Washington, D. C.
Attention: Mr. J. H. Riddle, Secretary
Committee on Branch. Group &
Chain Banking.
Dear Mr. Riddle:
Twelve banks in the fifth district fall within the
first group of table V-e.
The percentages of these banks as shown in item 9.
(Net Addition to Profits divided by Gross Earnings) are as follows:
r
13.42
15.19
33.11
.22
27.75
1141_
0010
7.50
18.43
6.58
50.00
15.57
Loi
The typical district ratio for this item being 7 06.
the average deviation appears to be 14.27, the correctness of
which we would appreciate your verifying.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours.
ant Federal/Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
February 7, 1931.
Jr. J. G. ?r-j,
AssistaliL Pedern1 eserve Agent,
Federal Reserve Bank of Richwond,
.1-lichmond, Virginia.
lear
Receipt is acknowledged of your lettor of February 5th encloing Tables I-e, II-e, 111-e, 17-e and
7-e together pith work sheets fo - the states in your
clistrict
the :iefAr
Very truly yours,
J. H. Riddle
3eoretary, Committee on Branch,
Group and Chain Banking.
FEDERAL RESERVE BANK
OF RICHMOND
February 6, 1931
J. H. Riddle, Secretary
Committee Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear .r. Riddle:
Enclosed please find tables 1-e, 11-e, 111-e, 1V-e
and V-e by states for 1929 together with work sheets.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours
. G. Fry
ssistant Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
..'ebruary
.
6, 131
J. H. Riddle, Secretary
Committee Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear —r. Riddle:
Replying to the question raised iiljour letter of
the 2nd with respect to Virginia banks. beg to advise that the State
Department informs me that the Bank of Newsoms, Newsoms, Va.. failed to open oa April 22, 1930, and was taken over by the i
. erchants
and Farmers Bank of Franklin, Franklin, Va., on April 28th.
The Department reports that there were no losses
to the depositors in the following Virginia banks, which suspended
and reopened.
Bank of Craigsville, Craigsville, Va.
State Bank of Pamplin, Pamplin., Va.
Peoples Bank of Stuarts Draft,
Stuarts Draft, Va.
The information requested with respect to South
Carolina banks has not yet been obtained.
Very truly yours
Assistant Federal Reserve Agent
February 3, 1931.
Roxton,
Mr. dilliam
ederal eserve Agent,
Federal Reserve Bank of Richmond,
Richmond, Virginia.
_ekr Lr. Hoxton:
In our letter of January 16th -we renuestcd that :iou eter
the earnings project to include the year 1930 working oat "7a'Jles I-e,
II-e,
prev1.ou
I7-e, and 7-e for th .t /ear
:!%:,
done for cam of ta._
fur :year:. In grouping ban... for Table U-e acording t
.
located vie had liuggested in our
the size of the co.rnurity in ::hich
letter of October 20th that you use
years 1926-1929 the po:)ulation figurob
97
.i.ven in the Januar
tior of "iand 1.17:Nal1y's Bankers Oirectory.
196 edi-
In connection 7Ith Tabl,
.II-e for the year 1930, 'Ioweve ,.-, .1c believe it de_irable tfl 11.
new census figures of population for 1930 walch we
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
iOri
a7ailable.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
February 3, 1931
H. Riddle, Secretary
Committee Branch, Group et Chain Banking
Federal Reserve Board
Washington, D. C.
Dear -r. Riddle:
Receipt is acknowledged of your letter of
the 2nd. I am today requesting the information desired by
you from the State Departments of Virginia and South Carolina, and I hope to be able to give you the definite information you have asked for.
Very truly yours
stant Federal Reserve Agent
/
February 2, 1931.
J. G. Fry,
Assistant Federal leserve Agent,
Federal reserve Bank of Achmond,
Richmond, Virginia.
')ear sir. Fry:
Your recent letter enclosing twelve more suspension schedules from
Virginia was duly received. A have checked the schedules from both Virginia
and _Auth Onrolina against the records of the Division of 3ank Operations and
find a number of additional Fusnensions in these states for vhich we did not
receive schedules. The names of the banks in question are given on the attached list with their location and sates of closing and reopening. All
you kindly nail these cases to the attention of the respective bank COalli5sioners with the request that schedules be prepared on such of them as are
proeerly considered suspensions?
According to the schedile which we received, the Bank of Tewsams,
NeWSOMS, Virginia, failed .1pril 22, 1930, and was taken over by the Lerehants
28, 1930. The Division of Bank Operations,
& Farmers 3ank of Franklin
however, has a cony of form A,. 6386a from your bank reporting that the 3ank
of rr.'"TE1MS consolidated vita the :,:erchants & Farmers 3ank April 25, 1930. A
are at a loss to know which of these records to accept and should appreciate
eour reviewing the facts of this case and advising us accordingly.
In addition to the south Jarolina omissions listed on the attached
sheet, there are a number of banks regaruing which special ouestions have
arisen, a2 follows:
1. l'eoples 3ank, Honea Path, -outh 3arolina. The schedlle on this
/ bank silows it to have failed 2/2/1923. The Division of Bank Operations, however, reports it as having closed 1/7/1922, reopened 2/27/1922. an, closed
agnin 1/31/1923. This latt,Ir date agree_ fer
trly closely with the one reported
on the schedule, but there is no indication on the schedule of a previous
closing, nor is there a separate schedule covering this suspension.
2. Citizens Bank, Hones
.iate of reopening was 2/15/1 923.
•th,
Same as
eise 1 except that
3. 3ank of Lynchburg, Lynchburg, S. O. The schedJle on this bank
-eorts it as suspended on 9/24/19_2, but the ')Ivisionts reoords show it to
lave closed 10/3/1921.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1:r. J. G. Fry 412
February 2, 1931.
4. Bank of Clio, Olio, S. 0. The schedule shows this bank as suspended on 11/11/1921 but the Division reports it to have closed 3/25/1921,
reopened and closed again 12/15/1921.
5. Bank of Branchville, Branchville, e. C. The ivision's records
show that thib bank clesed 3/28/1921, reopened 6/15/1921, closed again 11/12/1921,
and reopened 1/15/1322. The schedele whieh we receive, eowever, reports only
one closing and that on 12/31/1924.
6. Bank of 'eonetta, eonetta, e. C. The records of the Tierision show
that this bane closed 2/18/1926, reopened 3/8/1926, and closed again 11/9/1926.
The schedele reports only the latter closing.
7. .tate Loan & eavines eank, eamberg, e. C. 'eecords of the Division
report this bank closed J/16/1528, reopened 4/16/1928, aed clesed swain 10/17X•
The suspensior zchedule which ee received snows only the latter closing.
6. eestminster Loan e Trust Co.. Westminster, . C. Our schedele
shows that this bank closed 12/16/1926 but the records of the Division show
it as haeing closed 12/14/1925.
9. 3ank of vAliott, Elliott,
0. The 21715; on reeorts this, bank
cl)sed on 3/24/1922, hut the date of suspension on the schedule is 4/3/1923.
10. Bank of Little Teeck, Little sock, e. C. Aocording to the schedule this bank closed 5/2/1923, but the Division sows it closed on 3/2/1922.
11. ,3it1zeus 3vnk of einewood, Pinewood, e. C. The Tdvielon reports
this bank closed on 12/29/1922, but the date of suspension on the echedale is
12/29/1923.
12. Bank of Hemingway, Heming7ay, .. 0. 'Shown by the ?ivision as
closed 10/1/1922, but according to the echedele, it failed on 10/3/1523.
eported on the schedule as a
13. earners Bank, ?t. :,.otte, S. C.
voluntary lieuidntion 12/31/1925. 'The rAvision's records show that this he.
closed in 1923 (exact date not krown).
ee shall be greatly obliged if you will ack the Banking Departmene. o;
eouth Carolina to review these oases in the attempt to recone'le the differenceL
and omissione noted. Perhaps it might be advisable to point out that if a bank
has suspended elore than once a schedule should be supplied for each sebpension.
ee regret having to raise so many euestione but obviously it is unsatisfactory
to allow lAxc'a considerable lisceepencies to pass unchallenged aelees the
scattered records in south Carolina etake the vork of checking these points
prohibitive.
Generally speaking the information given on the schedules is setisfactogy and ee are particularly pleased with the ecourate ane comelete manner
In which the data regareIng depositors' claims and psyJients is relorted. ' eee
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Febrwlry 2, 19:1.
L:r. J. G. :•-'r7
the schedlles originally recei7ed from Virginia, ho?;ever, are the following on
reopened banks which do not shol Thether losses were or were not suffered by
depositors:
Date suspended
V9 26
Bank of Oraigsirille, '3raigsville, 7s.
&Asa(' 'Bank of Pamrtin, ;aamplin, 7a.
12 24/30
Peopirs 3k of Stw,rts Draft, tttarts
3/13/29
Draft, Vs.
7.111 you kindly ask the /irginia Colimissioner of 3anking whether the
absence of a specific statement means that no losses were suffered by depobitor:
In these banks
Very truly yours,
J. a.
Riddle
3ecretary, Committee on 3ranch,
group and Chain Banking.
Eric.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
":-Auth Carolina:
Banks for .7hich no suspension schedules were received
Name cnd location of bank
Bank of Bo:Ineau, 3onneau
Bank of Kingsburg, Kingsburg
Farmers Bank, Chf...strfield
Bank of Columbia, columbia
Springs & Shannon, Camden
Liberty Trust Co., Columbia
Peoples Bank, Chesterfield
Citizens Bank, Elloree
Bank of Gilbert, ailbert
Peoples ..avings Bank, Clio
Peoples sank of Lynchburg, Lynchburg
Bank of Plum Branch, Plum Branch
Bank of Temaesee, Yemassee
Consolidated Bank, McColl
:Ltate Bank of North, 3orth
Peoples 2ank & Trust Co.. Pn7rland
rate closed
1-5-21
1-15-21
-14-22
4-30-22
- - 23
11- -23
11-25-24
12-1S-24
11-17-25
3-22-26
6-16-26
3-25-26
7-12-26
1-12-27
11-27-29
1-4-30
Date reopened
after a few days
9-7-26
8-12-26r
9-9-26
1-31-27*
12-24-29
1-16-30
*Closed again 1-20-30
Virginia:
Barks for which no suspensior schedules were received
First state Bank, Llorroe
Cciamercial ?Achange Bank. Norfolk
Fidelity Bank, Scottsville
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1-15-21
1-27-22
2-11-25
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
January 31, 1931.
Mr. J. S. Fry,
Assistant Federal reserve Agent,
Federal Re..,erve ?,ank of aichmond,
Richmond, Virginia.
Dear Yr. pry:
In :.ccorciance with the request contained in your
letter of Jrtnufiry 30th we are ?nclocing herewith the following for= for use ir tabulating roe:tits of "Anslysis
of 3an17
15 copies each of table
1-e
.L. 1-0
II1-e
50 copies of table IV-e
60 copies of table 'l-e
%Tory truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain BanIcing.
Eno.
C4
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
//
FEDERAL RESERVE BANK
OF RICHMOND
January 31, 1931
J. H. Riddle, Secretary
(7;ommittee Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear ;,.r. Riddle:
Enclosed please find reports of 12 bank suspensions
in Virginia. This completes the list for the period 1921__1930.fv
You will note it was impossible to obtain full information concerning the number of these banks.
This information has been prepared by one of the
State bank examiners and is as complete as it can be made at the
present time.
Should you desire to have further information with
respect to sections 8, 9 & 10, and will call it to my attention
two or three months from now, we will see if the information at
that time is available.
Very truly yours
i
G. Fry
ant Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
January 31, 1931.
Mr. J. G. Fri,
Assistant Pederal Reserve Agent,
Federal Teserve BanX of Richmond,
Ridiknond, lirginia.
Dear Ur. Fry:
7ie have your letter of Januar;/ 30th enclosing
for the year 19Z5 for each state in your district Tables 1-e,
II-e,
IV-e, and 7-e and aggregates of ratios pith nes-
nrict to Tables 17-0 and 7-e.
Very truly yours,
J. F. ?Addle
Secretary, f;ommittee on Drench,
Groan and Chain Banlring.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
January 30, 1931
Lir. J.
Riddle, SecretarY
Committee on Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear .r. Riddle:
Enclosed please find tables 1-e, 11-e, 111-e, 1V-e,
1V-e work sheets, V-e and V-e work sheets, for the National Banks
in the Fifth Federal Reserve District, by states for the year 1928.
Similar tables for 1929 will be forwarded to you
within 10 days.
Very truly yours
J. G. Fry
Assistant Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
January 30
1931.
Federal Reserve Board,
Washington, D. C.
Attention: Mr. J. H. Riddle, Secretary.
Committee on Branch, Group
and Chain Banking.
Gentlemen:
Please forward the following number of forms for
use in tabulating results of "Analysis of Bank Earnings":
Table
II-e
"
" III-e
IV-e
15
15
15
50
60
Very truly yours
Assistant Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
January 29, 1931.
Mr. J. G. Fry,
Assistant Federal Reserve Agent,
Federal Reserve Bank of Richmond,
Richmond, 7irginia.
Dear Er. Fry:
In accordance with ::our letter of January 26th we
have today forwarded to Nr. Albert S. )'ant, State Bank F.xaniner, Columbia, 'outh :7aro1ina, SO copies of the sched,Ile on
: :Alspensions.
bar,
s are sending wou herewith 150 additional copies
of the suspension schedule, also in accordance with your
request.
7ery truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
-?;nC.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
January 29, 1931.
Mr. Albert S. '2ant,
State Bank oaaminer,
Columbia, .;outh Carolina.
Dear Mr. Fart:
In accordance with a request from Mr. J. G. Fry,
Assistant Federal Reserve Agent of the Federal -Reserve Bank
of ,Uchmond, we are sending you herewith 50 copies of the
bank suspension schedule for use in renorting suspensions
during the last six months of 1930.
7ory truly yours,
J. H. Riddle
L'ecretary, Committee on Branch,
Group and Chain 3anking.
Eno.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
January 28, 1931
Ldr. J. G.Fry,
Assistant Federal Reserve Agent
Federal Reserve Bank of Richmond
Rioh!aond, iirginta
Dear Ur. Fry;
This 6111 aoknohladLe with G:lanks your letsr of January Z4th enclosing reports on fora A-4,
A-5, B-5, 3-6 _Lnd B-9 on changes if, the number and
classifiotek:ion of private banks in your district
sines 1920.
Ileti
truly ;ours,
J. H. Rictile
Becretar,., Comiatteo on 3ranch
Group t-ndChai.2:.;alkint;
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
January 28, 1931.
Mr. J. G. Fry,
Assistant Federal Reserve Agent,
Federal Feserve Bank of Richmond,
Richmond, Virginia.
Dear Mr. Fry:
Thank you for your letter of January 26th lenclosing fonns
.2nd A-3 reportinp• chanf!es in the number
of activo state ban'r-s since 1920 for the stote of west
Virginia.
Very truly yours,
J. H. Riddle
secretary, Uommittee on Branch,
Group and Chain Banking.
•
January 28,
Mr. J. G. Fry,
Assistant Federal 1,,eserve Agent,
Federal 'leaerwe Bank of Richmond,
lichmond, Virginia.
Dear
Fry:
7e acknowledge with thanks Yg4r letter of January 26th together with the schedules on bank suspensions in Virginia and .Jouth
Carolina. The schedules are now being checked against the records
of the Division of Bank Operations and we shall advise you eif any
discrepancies which are revealed by this comparison.
?/ill you kindly express our appreciation to the banking
moissioners of both Virginia and .Jouth Carolina for their cooperation in providing us with this material? We are particularly
grateful for the special effort required of the ,:outh Carolina
Banking ',:epartment.
You will recall that on November 21st we wrote to you regnrding four banks in .- ..laryland and twelve in North Carolina, which,
according to tne records of the Division of Bank Operations, should
have b^en included in the original list of suspensions submitted
from those states. The last information received from you on this
subject is contained in your letter of November 25th inforning us
of your endeavor to secure schedules for the banks in nuostion.
should appreciate knowing, if possible, when these schedules
will be ready.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly
ours,
J. H. P.iddle
Beeretury, Comittee on Branch,
Group and Chain Banking.
•4
•
FEDERAL RESERVE BANK
OF RICHMOND
January 26. 1931,
Federal Reserve Board,
Washington, D. C.
Attention: Mr. J. H. Riddle, Secretary
Committee on Branch, Group
& Chain Banking
Gentlemen:
Enclosed please find report on Form A-2 of changes
in number of active State banks since 1920 for West Virginia,
together with separate reports on Form A-3, for the same State.
These reports have been prepared by the Secretary of
the Banking Department. and I think you will find them in satisfactory form.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
nt Federal R serve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
v(
Oc.
•
FEDERAL RESEFRVE BANK
IA
o
-
cfj,cie, r,r/
OF RICHMOND
(/
)>AP
January 26, 1931.
Federal Reserve Board,
Washington, D. C.
Attention: Mr. J. H. Riddle, Secretary
Committee on Branch. Group
and Chain Banking
Gentlemen:
Please send direct to Mr. Albert S. Fant, State Bank
Examiner, Columbia. South Carolina fifty (50) copies of blanks
on which to report information with respect to bank suspensions
since January 1, 1921. These forms are to be used in the preparation of reports covering banks which have suspended since June
30, 1930.
In order that we may have on hand sufficient forms for
use in the other States for the same period, I will thank you to
send direct to me one hundred and fifty (150) additional forms.
These forms do not carry a number but deal with various
questions and schedules concerning failed banks. and I am sure
that you will understand the forms that I refer to.
Very truly yours,
A
G. Fry,
ant Federal Reserve Agent.
‹it
FEDERAL RESERVE BANK
OF RICHMOND
January 26. 1931.
Federal Reserve Board.
Washington, D. C.
Attention: Mr. J. H. Riddle. Secretary
Committee on Branch. Group
and Chain Banking.
Gentlemen:
Enclosed please find report on 44 suspended banks in
Virginia since January 1, 1921. This does not include all suspended banks in the State for the period, but there will be
some delay in obtaining the detail information with respect to
the remaining banks, and I have thought best to send to you the
completed reports and will let you have the reports on the other
suspended banks as soon as possible.
You will also find enclosed reports on 221 suspended
banks in South Carolina from January 1. 1921 to June 30, 1930.
These reports have been prepared by one of the examiners in the
State Department, who calls my attention to the fact that under
the caption "Secured Claims", he has included bills payable. rediscounts and secured deposits. He states that in the case of
the Merchants Bank of Columbia, S. C. ,all of the secured claims
listed were really not secured claims, but consisted of certificates of deposit issued for borrowed money, but for which no security was given. The certificates were payable to the members
of the Columbia Clearing House, they having furnished the money
in an attempt to save the institution.
The State Department of South Carolina has gone to a
tremendous expense in order to obtain the information as reported.
The Chief Examiner estimates that the examiner doing this work
travelled about 4,500 miles in order to get the information he has
gotten from receivers of suspended banks.
I sincerely trust that you will find the reports helpful to you.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
J. G. Fry
stant Federal Reserve Agent.
•
)
12.
FEDERAL RESERVE BANK
cIN
TAtizs.
1:04)
444 155
4
.*
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
OF RICHMOND
0
January 24, 1931.
Federal Reserve Board.
Washington, D. C.
Attention: Mr. J. H. Riddle. Secretary,
Committee on Branch, Group
and Chain Banking.
Gentlemen:
Enclosed please find reports on Forms A-4, A-5, B-5,
B-6. and B-0, having to do with private banks since 1920, for
the States of Maryland. North Carolina, South Carolina and
Virginia. Rand-McNallyts Bankers' Directories do not show any
private bankers in West Virginia.
The information given you on the enclosed formsrepresent all that it is possible for us to get on private banks.
Many of the columns you will note have been left blank which
means that no information was available.
I am fairly certain as to the reports for North Carolina. South Carolina and Virginia. but am in doubt as to Maryland. The figures on Form A-4. for Maryland were arrived at by
working backwards. I took all of the private banks that we
know of in Maryland.whielware in business at the end of 1930,
and added to that number those private banks which we know went
out of business during the period, and established the number
of 28 as at the beginning of 1921. No private banks were authorized by law in Maryland after 1918.
You will notice that Forms B-5 and 5-6 are not filled
in for the reason that it was not possible for us to obtain the
capital. loans and investments of the private banks, and, therefore, I was unable to classify the banks according to "capital
stock"and"loans and investments".
It is regretted that the information you desire concerning private banks is not available, but I have spent considerable
time in my search, and the enclosed reports represent the best that
I can give you.
Very truly yours
;
2
e,
Ass s
nt Federal Res rve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
January 23, 1931.
Mr. Z. 1. Fry,
ASSiStSrlt Federal eserve Agent,
Federal Reserve Bank of Richmond,
Richmond, Virginia.
Dear Lir. Fry:
Than
:ou very ,auch for your letter of Janu-
ary 22nd enclosing a cli2ping describing Prof. Etarnes9
new history of branch banking in Virginia.
We are
sending for the book and are much obliged to you for
calling it to our attention.
Very truly yours,
J. H. Riddle,
Seoretary, Comittee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
Lir. J. H. Riddle
Federal Reserve Board
Washington, D. C.
Dear
Riddle:
I enclose herewith,clipping from the Richmond
News Leader referring to the history of Virginia banking, by
George T. Starnes, associate professor of economics at the
University of Virginia. I have not seen the book but it may
be of interest to you in connection with your study of Branch,
Group and Chain banking.
Very truly yours
44"
drOMOK
4111.4110
. Fry
stant Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
January 19, 1931.
Mr. J. G. Fry,
.!,ssistant Federal Reserve Agent,
Federal Reserve Bank of Richmond,
Richmond, Virginia.
Dear Lir. Fry:
In accordance with the request contained in
your letter of January 17th we are sending you herewith
500 additional copies of the form on bank earnings.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
Enc.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
1110
FEDERAL RESERVE BANK
OF RICHMOND
t.,
-P,
‘"
VP
VOS
tt
1
:A0) .65
January 17, 1931.
Federal Reserve Board.
Washington. D. C.
Gentlemen:
Attention: Mr. J. H. Riddle, Secretary
Committee on Branch, Group
& Chain Banking.
Please send us five hundred (500) "Analysis of
Bank Earnings" forms.
Very truly yours.
J. G. Fry,
Assistant Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
0
January 16, 1931.
• William W. Hoston,
?ederal Aeserve Agent,
?ederal Reserve Bank of Richmond,
Richmond, Virginia.
Dear Kr. Hoxton:
In connection with the earnings project of this
Committee upon which you are working, it has been decided
to request the Reserve banks to supply us for the year 1930
with the tabul:itions heretofore requested for the years 1926,
1927, 1928 and 19P9.
Accordingly Tables I-e, II-e,
IV-e and 7-e should be compiled in the same way for 193) as
aas done for each of the other four years.
As our original
request with respect to deviations required that work for
one year only, the present request entails nothing additional
on deviations.
Very truly yours,
E. A. Goldenweiser
Chairman, Committee on Branch,
Group and Chain Bankin.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
FEDERAL RESERVE BANK
OF RICHMOND
January 16, 1931
Mr. J. H. Riddle, Secretary
Committee on Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear —r. Riddle:
Your letter of the 14thhas been referred to
our librarian and she thinks that Dr. Southworthts book on
Zranch Banking in the United States has more material in it
with respect to banking in this district, than any of the other
books which she has. If you do not have available, a copy of
this book, we will be glad to lend you ours.
Very truly yours
J. G. Fry
Assistant 2ederal Reserve Agent
•
To Mr. Horbett
From Miss Jones
uestionaires covering state bank suspensions in Virginia
have been checked against Board's records with the following results:
Banks for which no ouestionaires were received
District
number
5
/
Date
closed
Name and location of bank
First State Bank, Monroe
J Ocean View Day & Night Bank,
Ocean View
Mutual Savings Bank, Portsmouth
Comnercial Exchange Bank, Norfelk
Fidelity Bank,
Soottsville
Bk. of Ft. Blackmore, Ft. Blacknore
4 Farmers ,3c Merchants Bk. Altavista
!Chatham Savings Bank, Chatham
Clarksville
4 Planters Bank,
State 3k. of Columbia, Columbia
Peoples Bank,
Covington
Bank of Crozet, Crozet
Dayton, Dayton
Montvale
4 Bedforci County Bank,
si Bank of ',South Hill, South Hill
1-15-21
Bank of Newsoms, Newsons
(Taken over by Merchants
Class of
bank
Nonmember
It
3-12-21:
12-21-21'
1
1-27-22
2-11-25
12-17-29
12-18-3e
11-29-30v
12-11-301-12-11-30v
12-31-30112-30-3019-20-30v
12- 8-301--
" (Private)
Nonmember
tt
12-26-30 1,7
‘'TLuestionaires received for whicli Board ha.5 no record
5
Dat e
reopened
c ,c1
4-22-30
Nonmember
Farmers Bic. of ixanklin, v. 4-28-30)
Board's form 3t.6386a shows that this bank consolidated with the Merchants
and Farmers Bank of Franklin 4-25-30.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
January 11
1931.
Mr. J. G. Fry,
Assistant Federal Reserve Agent,
Federal Reserve Bank of Richmond,
Richmond, Virginia.
Dear Mr. Fry:
In our letter of the 12th, to which you kindly replied
yesterday, we had in mind the general fact that in every state brit
one in your district branch banking appears to ?rive been carried on
since before the Civil •iar, and that in Worth Carolina there is more
branch banking, marlsured in terms of branches outside the city of
the main office, than in *ny other state in the union except one.
We had also in mind that with the exception of California
you h.Ave in South Carolina the largest system in the country, measured
In terms of brf_InInes outstie the city of the nain office, and in varyland the second largest. ae had also in mind at least ten branch bank
systems in your district from fifteen to thirty years old now operating
from three to twenty branches outside the city of the main office; not
including those that are no longer in existence.
We had also in mind the genern1 references to ':::outhern
bran:qi banking in books such as that of Dr. Bouthworth of Alliam
and Mary College, Williamsburg, Virginia, on Branch Banking in the
United tates. In view of the amount of attention that the nuesof the
tion of branch banking has received in recent years
fact thnt your district is next to California prolyibly the richest field in the country for investigation of the subject, TA
assumed that you or your librarian would n. turally be in a position to suggest to us some local studies that would be more comprehensive than those we Wive found and that woad save us time in
our investigation.
Very truly yours,
J. H. Riddle
jecretary, Committee on Branch,
Group and Chain Banking.
1
January 14, 1931.
Mr. J. G. Fry,
Assistant Federal Reserve Agent,
Federal Reserve Bank of Ricdnond,
Richmond, Virginia.
-ear Mr. Fry:
Receipt is acknowledged of your letter of January 13th
regarding the method of arriving at averae deviations fres: the
average. In a recent letter to one of the other Reserve banks
we attempted to outline in some detail the proper method for
computing these deviations, and I shall answer your inouiry
by enclosing a copy of that letter. If the explcnation given
there is not clear, please write us again.
I may say in this connection that it would be perfectly satisfactory to us if you postpone for the time being
the computation of these average deviations fro.L the average
in order to concentrate on the other work which you are doing
for the Committee. This is especially true in view of the fact
that we are going to ask you shortly to extend the study on
earnings to cover the year 1930.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
*Eno.
x- du_
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
January 13, 1931
-r. J. H. Riddle, Secretary
Committee on branch, Group and Chain banking
Federal Reserve Board
Washington, D. C.
Dear -r. Riddle:
I have your letter of yesterday. You remark
that several of the states in this district have an old tradition of branch banking, and numerous examples of branch
systems that have a long record of usefullness. If that is
true it must have been before my time. I know of no branch
banking system in the district which has been in operation
long enough to work up a tradition and I have never heard of any
historical account of branch banking in any of our states, having
been written.
Very truly yours
As
J. GFry
stant Federal Reserve Agent
•#
FEDERAL RESERVE BANK
OF RICHMOND
January 13, 1931.
Federal Reserve Board,
Washington, D. C.
Attention: Mr. J. H. Riddle. SecretarY
Committee on Branch, Group St
Chain Banking.
Gentlemen:
In working out tables of average deviations as called
for in the instructions dated November 12, 1930. in regard to
tables IV-e and V-e of Sarnings Project. we are using 1927 figures
as a basis for calculation.
Our understanding is that the components. whose average
deviation from the typical ratio for the district is to be calculated, consist of the several states. or fractions of states,
which compose the district.
As an example, the typical ratio for the district in
item 1 of the first group of table V-e is 82.98. Four states
in this district have banks falling within this group. as follows:
(Item 1)
Va.
N. C.
W. Va.
S. C.
90.72
87.96
80.85
78.05
The typical ratio for the entire district being 82.98. we arrive
at the sum of the deviations as 19.78 and the average deviation as
4.945 for this item.
In order that there may be no misunderstanding on our part
involving a consequent loss of time, we will appreciate a verification
on your part as to the correctness of our conclusions.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
Assi t nt Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
January 13, 1931.
lir. J. G. Fry,
Assistant Federal Reserve Agent,
Federal Reserve Bank of Richmond,
Richmond, Virginia.
Dear Mr. Fry:
We acknowledge vith thanks your letter of
January 12th enclosing reports on forlis A-2 and A-3
covering bank changes in the state of Llaryland since
1920.
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
January 12, 1931.
J. G. Fry,
Assistant Federal Reserve Agent,
Federal Reserve Bank of Richmond,
Richmond, 7irginia.
')ear
Pr7:
In our studies of branch banking we expect to
give some attention to the history of the various branch
systems which have developed in some of the southern states,
and it has occurred to us that perhaps something has already
been -1-ittero along this line.
Several of the states in your district have an
old tradition of branch banking and numerous examples of
branth vstvis th::t ',vivo a 1)nq record of usefulness. ?erhaps you may 'mow whether an historical account of branch
banking in an of these states has been written. It is
ouite possible that soae professors at your state universities or other local historians or economists have made
studies ,)f the subject. If you know of any material of
this natura,we would greatly appreciate ilaling a reference to it.
Very truly yours,
J. H. Riddle
iecretary, Committee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BAN•K
OF RICHMOND
January 12, 1931
Committee on Branch, Group and Chain Banking
Federal Reserve Board
Washington, D. C.
Gentlemen:
Enclosed please find reports on Forms A-1, A-2 and
A-3 for the State of Maryland.
The figures as to Capital, Loans and Investments,
and Resources, were taken from the Commissioner's Annual
Reports at the dates nearest the changes recorded.
Very truly yours
J. G. Fry
Assistant Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
january 12, 1921.
Mr. J. G. Fry;
Idisistant ?ederal Reserve Lent,
Federal Reserve Bank of Richmond,
Richmond, iirginia
Dear Lir. ?ry:
ceceipc is acknowledeu u: your lettel- of
Janu:tr:i 9th \enclosinic Lables 1-e, i1-e, 111-e, iv-e,
and V-f,), to4ethor with work sheets for tbles 1/-0
and 7-e, for the states in 7our aistrict for the
year 1927.
Very truly yours,
J. H. Riddle
becretarY. Comnittee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDEFRAL FRESERVE BANK
OF RICHMOND
January
Committee on .Eranci-1, aroup
ederal I'leserve Board
Washington, D. C.
1931
Chain -ankinE:
Gentlemen:
E,nclosed please find completed reports for the year
3.927 for the states in this district, as follows:
Table
Table
Table
/Table
Table
, Table
le
lle
111e
1Ve
1Ve Work Sheet
Ve
These reports for 1928 will be sent you as soon as it
is possible for us to prepare them.
Very truly yours
stant Federal Reserve Agent
pmk
January 3, 1931.
G. Fry,
kssistant :ederal Reserve Agent,
Federal Reserve Bank of Richmond,
Achmond, Virginia.
J.
Dear Ur. Fry:
acknowleaige with thanks your letter of 7ecember 26th
encllsing the memorandum prepared by 1:r. :.:. G. Aillace on the
statutory priority of various classes of deposits in the state
banks of the Fifth Federal .'eserve
district.
:is you suggest, we are aole to apply the explanation given
with satisfactory results fo, those states which followed the directions tent out by the Committee.
There are certain schedules on ,- Vest Virginia and n)rth
Carolina banks, however, which lead us to wonder whether other claims
than deposits were not soxetimes reported. For example, some of the
schedales report claims considerably in excess of total :!.eposits as
shown by the condition statement at tme of suspension, the total
claims reported closely appro:imating deposits plus borrowings from
baLks or total liabilities minus capital funds, we realize, of
course, th t the various state banking departments do not follow
a uniform practice in recording data on bank failures, and that in
a number of states it is probably ImpossiJle to supnly the information on suspensions in exactly the form requested on our ached- e are, therefore, inclined to doubt the wisdom of returning
tile. “
the above-mentioned :Jest Virginia and North Carolina schedules and
running the risk of antagonizing the respective comaissioners who,
iorhaps, have already done the best they can with the data available. However, we shall leave Lhat entirely to your judlment.
If there are any further measures you can pursue to inure
a reasonable degree of thoroughness and accuracy in the schedules
being compiled in the other states of your district, we shall 7-,reat1y
apireciate it.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
j. H. Riddle
.eoretary, Committee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
December 31, 1930,
:Ir. J. G. Pry,
2,ssistant Federal :deserve Agent,
Aderal 4oserve Bank of.aichmond,
Richuond, Virginia.
Dear
x. Fry:
In accordance with the re uest contained in
your letter of December 30th we are enclosing for your
uso 300 additional conies of Form A-3 for listing bank
changes during 1921 to 1930.
Very truly yours,
J. H. A.ddle
6ecretary, Omm.dittee on 3r
Group aid Chain 3anlang.
Zne.
_J
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
December 30, 1930
Committee on Branch, Group & Chain Banking
eederal Reserve Board
Washington, D. C.
Gentlemen:
I would like to have about 300 copies of Form A3 so that
I can keep in our records copies of the report of bank Thanges
during 1921 to 1930, and furnish additional supplies from time to
time to the State Departments.
Very truly yours
J. G. Fry
Assistant Federal
/7
eserve Agent
FEDERAL RESERVE BANK
OF RICHMOND
December 26, 1930
Mr. J. H. Riddle, Secretary
Committee on Branch, Group and Chain Banking
Federal Reserve Board
Washington, D. C.
Dear _r. Riddle.
As requested in your letter of December 12, I enclose
herein a copy of a memorandum prepared for Mr. Hoxton by our Counsel
-r.
G. Wallace, setting forth the statutory priority of various
classes of depositors in the state banks in this district. For all
practical purposes I think you will find the memorandum from 1,:r. Wallace
sufficient.
You ask me to state precisely what type or types of
deposits are reported on the suspension schedules as (a) secured
(b) preferred and (c) general. When the information with respect to
failed banks was requested of the examination departments of the various
states in this district, I gave them all the instructions and definitions
which you gave
Hoxton. I think it is reasonable to assume that these
departments have followed your directions in answering the questions referred to. They were told that sections 7, 8, 9 and 10 had to do with
deposits. In the absence of a good reason for thinking that they have
ignored the instructions you gave with respect to the preparation of
these for:s, I hesitate very much to ask them whether or not they observed
your instructions.
If you have good reason to think that the forms sent you
from any state in this district included other claims in deposits, I shall
be glad to correspond with the state examiner whose work you question.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours
J. G. Fry
Asr s ant Federal Reserve Agent
FEDEL
L RESERVE BANK OF R _;HMOND
Ssoedier 24, 1930
Mr. W. IN Sexton. ?adorn Reserve Agent.
S. O. Wallace. Counsel.
Statutory Priority of Various
Classes of Deposits in State DIMAS
of this District.
Dear Sr. Borten:
I have read the letter of the Pederal Reserve Board dated Demonist
with reference to the above subject and I have aniatned the codes of the states
of this district with a view of determiniag what statutory priority, if any, is
given to the various classes of depositors.
Under Section 48, Article 11, of the Cods otliarriand, it is provided
liabilities
owing by a trust company in a fiduciary capacity shall be
that all
preferred claims in the liquidatiem of sash trust oompqny. The lama*. of
this provision is broad enough to *minds the liability of a trust senpogy for
money which the trust ocapeny aoting as an executor or in some other fiduciary
capacity has deposited in its beadle dlepartment.
In South Carolina the funds realised f
stockholders are available only to deposit*
there ion* priority among depositors.
I find no other statute*
of this district, but In West Virgiela
state is as smatter of osnmen 1
private persons. This right of
and doss not extend to does
however, does enure to the
state deposit. (See Cent
the double liability of
t to general creditors, but
subject la any of the other states
been decided that a debt dn. the
to priority as against debts duo
bated to degoesite MO* by the state
toipsisebotbrieloas. The provision,
*net,apes a bead gives to secure a
V. Omsk of likalems. 1508. B. 221).
Since the rule
J West Virginia is based upon a view of the
tie
, of the sreratil, it is entirely possible
.
common law with tweet to the
that a similar rule would be applied in other states. Swreprel states outside of
this district have applied such a rule. but I find no express decision upon the
point in any other state in this district.
Under United States Dodo, Title 31, Section 191, all debts due by
insolvent corporations to the United States are entitled to priority. This
provision of the laws of the United States, of course. Wilms to all *tat*
in any state.
The above statements *P01 41411P to state banks. The priority of claims
against national books is determined by the Ants of Congress and state statutes
and decisions are without effect in the ease of national banks.
In the above stateless% I More attempted to give emly a reference to rich
priorities 041 are applicable Is deposits as such. I bore aot undertaken to
discuss statutes or dsoisisess *Loh deal with the right of priority for a clean
which nay Miser OD the bests of the failed bank as a deposit but which is entitled
to priority because of sores peculiar circumstance, as for exemple, shore a deposit
has been made after the bark vas known by its officers to be insolvent or whore
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDEI .L RESERVE BANK OF R.;FINIOND
December 24. 1930
Mr. V. W. Horton, Federal asserve Agent.
IL O. Wallace, Counsel.
Statutory Priority of Various
Classes of Deposits In State Banks
ot this District.
-2-
en apparent credit has been given for items deposited for collection but not
collected. The variety of the types of such claims is too great to make nn
enumeration of then possible.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Ur. J. G. Pry.
A- as!.atant Federal ie serve Agent,
'
Federal :leserre Bank of Ttiolvsond,
iii01111101141, Virginia.
Dear lir. 217:
Reoeipt is aolcnowledgnd of your Letter of
)(masher 24th with the enoloeed tables I-e to V-e
lurk sheets for tables IV-e
inoluAve tozlether wit
in
states
7our district fnr 1926.
the
and V-e for
we are new combining tables F-e, II-e and
III-e fOr the twelve distriots, and I might suggest
that when yea bare flaithed these three tables for
amyear you send them to us without melting to prepare tables ITe.e and
Ma will expedite car
work here spacwhat.
Very truly years,
J. H. Riddle
Secretary, Oomnittee on E
Group 811111 Chain Banking.
P
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
rr. J. G. FV7
Assistant Federal Reserve Agent
Federol Reserve Bank
Richmond, Virginia
Dear Mr. IP*:
Roce'rt is acknowledged of your letter of
December 23r( /unclosing correctedoopies of fomis B-3,
B-4, and 13-8 for the stfAe of virginia.
e shall bo
glae ti substitute th:.se for those tables which you
sent us on December 18th.
Very truly yours,
J. H. Ridrle
Secretary, Committs. on Branch,
Group and Chain Banking
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
4
a
Deoember 26, 1920,
.4, G. FrYil
issistant Federal Reserve Agent,
Federal Reserve Beek of-Riehmemds
Riehmends
Dear Mr,
Soak you for your letter of Desember2arW]xeiguliijas
the stoSas of the work of classifialtion of motive banks sod
Of the earnings prejest, I went to assure you win that the
Ossimittes is folly mere of the magnitude of some of the projects
aid the amemet of work involved, as 'l1 as the handicaps under
*Mob Yon ars working in many MAO.. While we are, of worse.
amnia* to push the ':nrk alms as fast as possible booms* of
the importance of Jiaking nn early report, we know We here had
your fulleet aoeperation and our efforts to keep in tomh with
the status of the various 7?rojeots is intended in no war as a
oriucisu.
:•it we will him) ;roar earnings figures
I au (..;lad
for 1926 this 'AWE. WO have these tables now fres peestioally
all of the reserve ban;cs and are anxious to begin amides Our
analyses for the Gauntry as a while. Nag of the boal really
surprised us with the speed with which they (Lid this weft, but
I think they were in a position to Arm clerical help from the
various departments of the bask wherever the -loft seemed to be
a little slack and were, therefore, able to keep a number of
people working on the project all the tie.
Very truly yours,
J. H. Riddle
Secretary, ouitaittee or Braleb,
Group and Obain Ba:king.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
FEDERAL RESERVE BANK
OF RICHMOND
December 24, 1930.
Mr. J. H. Riddle, Secretary,
Committee on Branch, Group & Chain Banking,
Federal Reserve Board,
Washington, D. C.
Dear Mr.Riddle:
As requested in your letters of October 10, and
November 12. there are enclosed herewith reports for the
States in this district for the year 1926, on the following forms:
I-e
II-e
III-e
IV-e
IV-e - Work Sheet
V-e
Similar tables for the year 1927 will be
sent you as soon as it is possible for us to prepare them.
Very truly yours,
G. Fry,
Assistant Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
FEDERAL RESERVE BANK
OF RICHMOND
December 23, 1930
Committee on Branch, Group & Chain Banking
iederal Reserve Board
Washington, D. C.
Gentlemen:
In my letter of the 18th\I enclosed forms 33, 34 and
B8 for the states in thie district, for the years 1920 and 1925.
I find that in the case of Virginia the Commissioner
had listed as banks in his 1925 annual report. several institutions which should not have been treated as banks in the preparation of your reports. These banks have been eliminated and there
are enclosed herewith corrected copies of form3B3, B4 and 38 which
I would thank you to substitute for those for Virginia enclosed to
you on December 18th.
Very truly yours
J. G. Fry
Assistant Federal Reserve Agent
I
FEDERAL RESERVE BANK
OF RICHMOND
t-rt
December 23, 1930
to1
•"4
—
YA;:b'
,.
Y.
cf) tp
c.."
—04
crsP
Mr. J. H. Riddle, Secretary
Committee on Branch, Group and Chain Banking
Federal Reserve Board
Washington, D. C.
Dear Mr. Riddle:
Receipt is acknowledged of your letter of the 19th; and
beg to advise that we cannot complete forms B3, B4 rind B8 for 1930 until
the state departments have distributed their 1930 Annual Reports.
14aryland's report to the governor is made on February 1,
year,
the
each
condition of the banks under his supervision are given
in this report, as of December 31. It is not therefore, to be expected that
Maryland's report will be in our hands until the latter part of February.
The other state examiners have promised to give me an advanced copy or printer's proof of their reports as soon as possible.
There
we obtain the above
etc., for the years
of four of our men.
lation is concerned
will be no delay in the preparation of the forms after
referred to reports. The work on Earnings, Expenses
1926, 1927, 1928 and 1929 are receiving the full time
The reports are practically complete so far as tabuand the calculation of 10,000 ratios.
The work requested by you on the special forms is practicslly complete for 1926 and I hope to be able to mail this classification
to you this week. The figures for the other years will be sent you as
completed.
It may appear to you that we have comsumed a great deal of
time in this work, but I Can assure you that we have done the best we could
under the circumstances with the men equipped for such work who were available.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours
J. G. Fry
sistant Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
December 23, 1930
Dr. E. A. Goldenweiser, Chairman
Committee on Branch, Group and Chain Banking
Federal Reserve Board
Washington, D. C.
Dedr Dr. Goldenweiser:
This is in reply to your letter of December 20th
advising me that your Committee desires to have the various schedules
of bank suspensions carried forward to the end of 1930 instead of terminating as of June 30, 1930. As I explained to you in my letter of
yesterday, this is not a propitious time to ask the various State Banking Departments to undertake the compilation of additional data, and
although I am going to try to get the schedules carried forward as you
desire, I do not want to ask for the additional figures at this time.
It is my purpose to clear the deck somewhat in this work and then go
after the additiona.k. data from June 30, to December 31.
Very truly yours
W. W. Hoxton
Federal Reserve Agent
FEDERAL RESERVE BANK
OF RICHMOND
December 22, 1930
V‘ 0
t.e,c'D 2.
,Ir
Dr. E. A. Goldenweiser, Chairman
Committee on Branch, Group and Chain Banking
Federal Reserve Board
Washington, D. C.
Dear Dr. Goldenweiser:
I acknowledge receipt of your letter of the 19t10
advising me that all payments by Federal recerve banks to state commissioners of banking or other outside agents or individuals for compiling data or for other services in connection with the work of the
Committee on Branch, Group and Chain Banking, will be borne by the
Committee. We have expended thus far $225., but would rather wait
until the work is a little further along before submitting a statement
to you.
As youcem well imagine, the Departments in most
of our states are in considerable confusion and are taxed to the utmost
on account of bank failurss, and it is difficult to secure their immediate cooperation even though we offer to pay for it. However, Y.r. Fry has personally visited all the bank commissioners, and made arrangements which we think
will bear fruit in due course.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours
W. W. Hoxton
Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
December 20, 1930.
Mr. William W. nextnnt
libderal losers* Agent,
Federal Reserve Bank of Riohmond,
Riohmond, Virginia.
Dear hr. lioxtons
In our letter of July 26, 1430l, snbmitting the
eihedule on suspensions you were requested to ask the state
hashing departments to prepare •schedule for each euspenr.
ells from January 1, 1921, to June 30, 1930. At a reoent
meeting of our 0seeittee it was &molded tivit the period
Should be extended to the end of 1930 in order to bring
the infommatiem up to date and round out the full ton
year petted. Therefore, we should like for yen to haveealiednles prepared for the tenure" during the ROMA
half of 1930, in addition to those which have been prepared or are being prepared in the states whose capitals
are located in your district.
Your bank or the various state banking departments will doubtless have on hand a sufficient supply of
forms to cover the additional suspensions. If not, we .
can AWN arrangements to au ply them.
Very truly yours,
So A. Ooldenweiser,
Chairman, Owmittee on Branch,
Group and Ohain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
December 19, 1930.
Mr. William W. Hexton,
Federal Reserve Agent,
Federal Reserve Bank of Richmond,
Riohmond lo Virginias
Dear Ur. lloxtons
Taestion of the exfmnse ineurredlr- the various Federal reserve banks in oonnection with the in-vestige...
tiona of the CoagiLtee on Branch. Group and Chain Banking
was brought before the full meeting of the Committee on
Deoember 16, 1930. It was the vire of the Committee that
all payments by. the Pedoral reserve banks to state amnia.
'loners of banking or other outside agents or individuals
for compiling data or for other services in oonmeotion with
the Coadtteele work should be borne by the Ossmittse.
Wherever the expense represents tor* Ogee by the
bnnk iti1t,however, even though it entails the hiring of
additional helps the Comittee felt it should be borne by
the bank, It we suggested in this oonneetion that if the
work done by the Iederel reserve banks for the Committee
cannot be taken oars of by their regular budgets. then the
expense incurred on amount of the.wor,x of the Cormittee
should be shown as a separate item.
I suggest that it your convenienoe you send us
an Itemised statement of your payments for outside ass's.
tame, if am, in order that we ma' reimburse your bank
and carry the amount as a Committee expense.
Very truly yours.
B. A. Goldenweiser,
Chairman, OoLLittee on dranah,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Lecember 19, 193C
Mr. J. G. 7ry,
Assistant Federal heserve Itont,
Federal eserve Bank of hichmond,
Richmond, Virginia
Lear -r.
deceipt is acknowledged of your letter of December 18th enclosing reports on forms B-3, B-4 and B-8 for
the states in your district for 1920 and 1925. 4e note
that you will rive us the 1930 figures as soon aa tho
annual reports of the various state departments are availas to when
able. aould it be poszilble to give us some
available?
become
may
these reports
4t the recent meeting of the Committee on Branch,
Group and 'hain ;junking some su66estions aore made regarding the collection of additional information on the causes
of bank fai1u2es. These sug, estions ue :c);; being devoloped
and I hope to wricA you within the next weak or so.
Will you be good enough to let us know the status
of the study on eclmings in your district? The Committee
is rather anxious for the staff here to expedite its work
as much as possible, and in order to develop our own plans
and make our estimatos as to when the work may be finished
we are trying to get a line on the sttus of the work in
the various Federal reserve banks.
Very truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chiin Banking
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE
BANK
OF RICHMOND
December 18, 1930
.41P
•
t,
.5'(• 4131 G'4!?
40
tr
o
s
Federal Reserve Board
Washington, D. C.
Attention
Committee on Branch, Group
and Chain Banking
Gentlemen:
Enclosed please find reports on forms 33, 34 and
38 for Earyland, North Carolina, South Carolina, Virginia
and West Virginia for the years 1920 and 1925.
The figures for 1930 will be given to you as soon
as the annual reports of the various state departments are
available.
Very truly yours
G. Fry
sistant Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
DINObier U. 1930.
Mx. J. G. ?rye
Assistant Mara %peers?) Agent,
Federal. Reserv- Ban,: of nialvond,
Rieboond, Virginia.
Dear ::r. Fry:
In accordance with the request ecataieed in
your lettor of December 15th We are ameiluer you hors*
with 75 additional copies of tables IV-4 and V-e of
the earnings project.
Very trdly yonrs,
J. H. Riddle
Secretary, CoAnittee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
FEDERAL RESERVE BANK
OF
RicHMOND
December 15, 1930
Mr. J. H. Riddle, Secretary,
Committee on Branch, Group & Chain Banking,
Federal Reserve Board,
'dashington, D. C.
Dear Mr. Riddle:
Your letter of November 12thenclosing Tables
IV—e and V—e of Earnings Project states that these forms are
to be used as work sheets for Aggregate Percentages and Aver—
age Deviations, as well as for Typical Ratios. Liaking allowance
for carbon copies of these forms to be retained for ourselves,
it appears that we will need approximately seventy—five sets
each of the above forms in addition to those sent with your
letter.
It is requested, therefore, that you please
forward an additional supply.
Very truly your-
stant Federal Reserve Agent.
TIM:D
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
December 10, 1930,
Kr. J. G. FrY,
Assistant Pederal Reserve Agent,
Moral ;eserve Bftra: of.Riohmond,
Richmond, Virginia,
Dear 11r. Pry:
In alcordunee with your letter of Deoember 12th
we ape sending you herewith 200 adiational °copies of form
A-3 relative to the study of changes in the ammher of hanks
for the yeArs 1921-1930.
Very truly yours,
J. H. Riidle
3eoretary, Gommittee cn.Dranoh,
Group and Chain Banking.
Eno°
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
111
110
01%s
,2
FEDERAL RESERVE BANK
OF RICHMOND
December 12, 1930.
'Ir. J. H. Riddle, Secretary,
Com-littee on Branch, Group and Chain Banking,
Federal Reserve Board,
Washington, D. C.
.r. Riddle:
Dear 7
We shall appreciate it if you will
forward to us as soon as possible 200 A-3 forms to be
used by us in compiling statistics relative to changes
in the number of banks for the years 1921-1:-.30.
Yours very truly,
67 -
J. G. Fry,
Asst. Federal
W.E4/m71
eserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Deoember 12, 1930,
Willie's W. Sexton,
Morel Reserve Ulm*,
Mese' Deserve Beak of Richmond,
Riehmend, Virginia.
Deer Kr. Heaton.
In tabulating the data reported on the suspension adhednies by the various states it Is apparent
that in the ease of oertain Items the material reported
is not uniform for all states, and that for purposes of
oomparisen an explanation of what is included ic needed.
This is true of sections 7, 8, 9 and 10. Would it be
possible to assure the follming information for eadh
state in your district Tvhich has prepared or is -Ireparh.
ing suepension sdhedulee?
(1) The statutory priori4y of lien of the
various t7nes of deposits in each state
(2) Preciset, ihnt type or types of deposits
are nrorted nn the suspension sehedules
as (a) secured, (b) preferred magi
(o) general
The schedules flak for reports on deposit olaims
only, but in ease other olaims have been included rr*MY
state this feet Mould be stated and the infermation requested above ahead likewise he famished for these
other (anima.
7e17 truly yours,
J. H. Riddle
Secretary, Committee on Branch,
Group and Chain BanXing.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
>Member 3* 1.930.
NI'. Albert S. Panto
L,tate Bank Exeminer,
Columbia, :60uth
Dear Kr. Facts
At tho request of Mr. J. G. Fry, Assistant
Pectoral Reserve Mont of the Federal Reserve Donk of
Richmond, we are aseding you herewith 250 apples of
the schedule on bank suspensions.
Very truly yours,
J. I. Biddle.
ilserotaw. Ossoittse on Branch,
In Makin.
imp ma
Eno.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Doaber 1, 1930.
Lie. J. G. Fry,
Assistant Federal Reserve Agent,
Federal Reserve Bank of aichwond,
Richmond, Virginia.
Deer r. 2rys
Thank you for your letter of Bovembe: 29th
enclosing reports of banks in Virginia operating bra:wiles
On june 30t4 1900, 190b, 1J10 and 1915.
Very truly yours,
J. H. Riddle,
Aporetary, Olttme
Gioup and Chan
Deoamber 1, 1930,
J.
z•ry,
Assistnnt ?edema -,eserve
Federal eserve 3ank of :Zichuond,
Riohmond, Tirginia
Near /Ir. ?rye
7zeeeipt is aehmintedged of your lotto,of llovaabor 25th in wh,you state that the information rmenred on suspended ben
in North Car;,
is all that could be obtained amd that a further review of the schedules
70-11a not be worthwhile. rear asseranee that a speeial effort has been
ouvlo to &Nome sancta infeenatian as possible
of ewers., all that th6
Calmat°. onn *upset and we wish to assure you that we do alTreciate
,Liffloulties of esearing this information thaw,' of the states. The
mittee mey seem oresumeal us in its efforts at times, but you con readily
understood that 40 are anxious to get all available information possible
/ith referenoe to UM failures aril especially the omeee.
I do not believe thai the cense. of bank failures have ever been
properly anaiyaed, and Si yet I feel that the Oemmittee has net gotten at
the bottom of the matter. in fact sorae further stud:, of the quotation nay
be necessary in &Union to the data which io are now compiling.
It has been mmlmestod that we study the records of WN110 of the
failed institutions over a period of years prior to failure. A similar
euggestion is that we might
he •detailed study from examinution reports
and other records of a limited member of failed banks and than compare these
Ath a similar study for an equal =Ober of marmessful banks whioh have been
operating in the same oemmumities lith the failed institutions. In feat
Jr.,
owell of the Lanneapolis Bank is making a little experiment along this
line 7-A the present time and le are awaiting anxiously the results of his
"lerhaps -re have not heretofore given sufficient attention to thoso
banks which have survived the difficulties of the past ten :re
, study of this ;clad might shed much light on the differences in the no.
of the suseessfUl institutions as contrasted with those of the
unsupeesefal.
mif:ht later be supplemented b1 personal interviews with some of these
macoessful bankers.
I do not know .1hint this study All sham, but perhaps in time we
n .pork out some sue'l simple analysis that can be made in each district
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Mr. J. G. Pry 1141
December 1, 1930.
with the mtniamm of effort. If we emeeeed. I ahall be glad to write you
about it later. PerhaDs you mpy bare some eacseetions along this line.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
J. H. Riddle,
Secretary, Oonmittee on -Drench,
!Troup and Chair wilting.
FEDERAL RESERVE BANK
OF RICHMOND
ovember 25, 1930
1:.r. J. H. Riddle, Secretary
Committee, Branch Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear -r. Riddle:
eceipt is acknowledged of your letter of the 21,
to which I have given careful thought. I will endeaver to get
schedules filled out by the Commissioner of Banking of i,laryland
for the four failed banks listed by you and by Chief Bank Examiner
of North Carolina, for the several banks in that state for which you
did not receive schedules.
You say that it is regrettable that the information
supplied on the schedules which we sent you, especially those from
North Carolina, is so meagre, both as to cause of failures and the
inability to get information called for in section 11.
Frankly,
we were able to get more information for you than we expected to be
able to get. We had no idea tha't we would be able to get full and complete
data on failed banks, and congratulated ourselves on obtaining as much information as we have already obtained.
As to the primary and contributing causes of failures,
I think the information given in the schedules is as accurate as you
would be able to get from any source.
It is not reasonable to expect
any one in the Federal Reserve Bank of Richmond to be able to say to
you in 1930 which was the primary and which were the contributing causes
of failures of non-member banks, which have in many cases leen closed for
a number of years and with which banks we probably had no business relations whatever.
The schedules sent you for North Carolina were prepared by 1:.r. Taylor who is the Liquidating Agent for the Corporation
Commission of that state, and I think it would be unreasonable for any
of us to stack our judgment as to the causes of failures of specific
banks, against the judgment of Lr. Taylor who had before him when preper'.11g the reports, the very insides of the bank.
I um satisfied that
Mr. Taylor has done the best he could do, that he has given us the best
information he oould get, and that he has given us his deliberate jud7ment as to the causes of failures. I do not think he should be criticized
for checking two primary causes. It is not possible
in every case for any
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
—
Riddle 1/2
one to say which of the two primary causes was fundamental.
In the 4th paragraph of your letter you say that frequently North
Carolina has given as the contributing cause, incompetency and as to the
primary cause heavy withdrawals. There is no question L.11:-..y mind but what
this is the true answer in many cases. Suppose a bank has incompetent
management and runs alomg smoothly so far as the public is concerned, until
some emergency arises and the public begins to make heavy withdrawals which
cause the bank to close. Would you say that the bank's failure (insolvency)
is due to incompency or to heavy withdrawals?
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Referring to your comments with reference to your letter of August 5,
which
you suggest that the Reserve bank prepare a statement regarding
in
the causes of failures in this district, would say that this matter has not
letter when the
been overlooked; it is -r. Hoxton's intention to prepare such
schedules for all the states have been forwarded to your committee.
I do not believe that the return of the schedules to us for further
review would be worth while. We know nothing whatever about many of these
banks. The schedules were prepared by one of the men in the state department which had these particular banks under its supervision, and I think
we can safely accept the wor he has done as the best that we could get
under the circumstances. I rpeat however, the 7.3uggestion made in my letter
of the 13th, that if any of these banks appear to be large anough and important enough to make further information desirable, then we will attempt
in each special case to get additional information for you. This however,
will make it necessary for us to incur additional expense which may not be
justified by the results.
Hoxton has read this letter and concurs in the views expressed.
Very truly yours
411
._ ,.1.1°
G.F
Ary
sistant Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
November 24, 1930,
Mr. J. G. IVY,
Assistant Federal Reserve Agent,
Pederal Reserve Beak of Richmond,
Riohmond, Virginia.
Dear
r.
Fry:
With 'our letter of LApteMber 30th you enclosed
to us information we had raugated conoerning banks operating
branches in your district in 1900, 1906, 1910 and 1916 for
the states of North Carolina, Louth Carolina and Lar71and.
You stated that this world give us the returns
for all the states in the district except Virginia. 'de
do not seem to have reo-ived as yet the returns for Virginia and are writing to inquire how soon they may be expected.
All of the other states have renorted and the preliminary
tabulations with this exception are practically somplete.
Very truly yours,
Riddle,
J.
seoretary, Ocumittee on Branca,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1;ovamber 22, 1930,
Mr. William W. Barton,
federal Deserve Agent,
Federal Deserve Bank of Aiohmond,
liehmond, Virginia.
Dear Mr. llexton:
In our letter of November 12th we outlined a proposal
size of
for olassifying the banks of the oountry a000rding to
al
steok.
capit
of
size
loans and iseestmints and acoording to
an
mobs
to
ble
In order to supPiellent that data it seems desira
of
tQ
else
ing
the
additional slassifiestion, that is, a000rd
Asses&
the townwor oltios 11$ "'kWh the banks are located.
onal
forms,
Indy le have impend ood are enolosing two additi
banks
e
wording
24 and 2.60. fir olatsifying state and privat
June
1920;
50,
Jums
;
dates
ent
differ
three
on
to populatima
us
previo
with
sume
a000rd
In
1930,
30,
June
30, 1626; and
for
practice you are regassted to oompile this infOrantion
the banks in those states whom, capitals lie within your
district.
For 1920 and 1930 the *ensue figures of population
half of
should be used. The detailed 1930 !ivies bpr about
tood
unders
ie
it
and
eted,
oompl
the states hese already been
should
all
states
for
es
figur
that by the emd of December the
be available. For 1926 the Benhers Directory will have to be
relied upon.
Very truly yours,
E, A. Goldenmeiser,
Chairman, Oemmittee on Branch,
Group and Main Banking,
Ln
•
•
C
14r.
U1i&r 7. nexton•
;.-Podoral 2- .eserre Agent,
Anioral
rite ..;att',.. of .A.C.11.‘1.)111• 7ir.:31.r.ia,
•
-Joar 1.1r. itaLtora
Iliaae a
uo
o inforwaIr our letter of 1;ovc..lbor 10th
in
tion to be ,-.)roo- .rod fro:L. the 3',;ato banl..114.;
t:ae linabor of state banZe einoe 1920^ In order to u1p10..mit t.1).at d4tta
;.A.s.:,.o3 the stat1;"' more couplet°, Lt somas dosirable tu ,.:ct
bo lieceo.
foluation on 011A210313 in the rt.tiaber of ,,.)rivate banks* It
itselZ to .-.;o.uj:ile the ,:,-.00v,te.r.• part
sor.,q, however, for the
ervo
- have
of these clata for 1.:te reason that in Lulu,: statoo the coullisit.m.or..)
}wive only
no supervision over .7rivv.to banks al. all, :Ind in others
partial. ffit)er7i itZ.• '2.(110 Lal.Sat Ettle t " nature of availaAo
o fact thr."1 the Comptroller of
on private bani.:s .44:
be iruii0ated. in
1929* vf..leroitri the VET.Titarcs'
29,
1343 Currene: .repo.,ts 391 as of jo../te
otatcs ',Letro 'the oomp.
';yon
1.6.
:or Ja:ra;ir 1930 iLo'.Y
cZ o7orteu.
bi
,orivate
Lor o.
io:ao ha13 L>upervis7-to:a, the
Ut
,
•;,:irectorr.dite
.E.Lat.lorst
ti:aos on17. ]-1..112
artgabe
a atL'Ay.t..;,,ter j 1,;
;al.i.iscre-}alloio.‘.;, i
inalJost
bixa:ce
o •;:-n avo.ilable sources Liust
i31
:laVe 13001 ‘.teclininil vord
la,
5l17o:tztoce.
it !;tcter.of 'nit:. (looline
b..1 ie7o/
t
211.e
7,3.asonrc,
be ;7eGbloti.,
'
.
AI!
• Li.; Lk Lta q-1 .;'to oe • ctituA.i;
,
cc.iaAje, o
ito
•,,*onss
1.,....3
lie within its district.
4,",1
1..-4 and .1-5, copies of which arc
ian13SØ 4
0 AY0 thf.)
9urposeg Apal to show tho slzasary o
porting data for each bank Yanving a chazost, 'tales, there is loytt.,riinfonsation in your files or readily procurable from the stato occamissioners, the Bank/ors+ Director/ Ivy be used us the basis of Vaa
courL.s„ that IA nary oases all the .1x.forstudy, We uuderstaati,
called for on Porm 410-5 will no be available, but in. er)ry
tfacrald1ICa to have at least the no or mtnes Of ho banAio
inv,:lved in the ahanm.
The Definition of Tema sent you with our 'Letter of 17crvezaber 10th, I930, in eordeotion with the study of state ba:10: clanges
rs4 be followod in priiriple for private ban. The tern "0.,nsolldation" will &Ipti to the absorption of a priv•-.te bank b-, a state
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
William W. HOxton #2
Nove4 21, 190G,
or national benks, as ww11 as to the union of one privat
e baukwith
another; aid the
tern "conversion" will appl thore a privat
e boaii.:
incorporates aid without union with another haka
oontinue it., business smZer state or natimal cm - or.
Very truly yintrail
I. A. 044somoisor5
Obsimoom, Cloomittoo on 1.- -1-,
arixrp and. Chain linking.
. izzt<A)
4
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
.;+1
November
Mr. J. Go 2ry,
Assistant eederal Heserve Agent,
Reeerre Bank of.Aiohmond,
Richmond, Virginia.
.ar Mr. Erg:
ya.Oser.1.3th enclosi0/0414.1)dgi With thanks ymr._ letter
iw; suspension Sobedules for the states of IfOrth aarolina,, ',test
.11r71821do
the Division of Bank Uporai: .,)ns, L,]Lere
.L000rding to records
for w:),Ich no sahedules were su:)..)lied.
land
in
res
„iary
were four other fatlu
ion reports t.lelve sual)eusioAs
Divis
the
ina
4th respeet to North tlarol
rded to us, 'Ale names of taeoe
forwa
you
net Inollided seal the *dell
on the attached list •
are
shown
for
sixteen banks not iiiklounted
ini.,,
roopen
and
leootion and the dates of olosini:
Su
you kindly ask the respective bank oarmaissionere to
be
d
eatoul
ules
eched
two
that
booed Iles for these bankS? ?lease note
North larAina, since it
?Lied for the Armors ed ilerchants i.snrikofMlitin,
d in 1924,
faile
failed during 1921, was reopened, and a.th
0:1
It is regrettable that the inforudion sappliod.
,ojard r,.. the
e.
meagr
-ales, espeoially these from lorth Carolina, is a)
the earlier
for
n
(muses of failures, for eilenplas allre is no informatio
;:litve of
real
the
mine
years, and as a rule it is very difficult to deter
two
oaaes
many
In
failure even *Isere Mitten 11 has been filled out,
lental
fundai
,nore
be
primary causes are sleeked when obViously one must
given as a oontributing
than the others Again, inoompetenov is frequently
s 1ven as
(muse while a no re isesed.late cause such as WW1'
thobut
ot,
the primary (muse. In some oasis this may be cot-ro
yed.
surve
were
s
cause
the
doubts as to how carefully
r0d by cleriv,r
7rse, that this material le
o
;e
people
two
no
ved
in:ol
is
cal help and that where a (setter of opinion
ve bi.enks
Reser
the
that
hoped
would always agree, ior this reason we had,
gh their
pass
throu
which
ules
would carefully reviver the suspension sched
neoe
ssary
seen
its
which
came:
or
hands and mahe an." revisions, additions
the
whiOh
about
banks
ember
non-m
course,
;lost of these suspensions are, of
be
must
there
hand
other
the
On
:le serve bank may not be ye17 familiar.
who are rather faalliar with
bank
ve
deser
each
in
s
idual
oertain indiv
mation regarding failures and
infor
much
the district as a whole 7ho %awe
banks. There are probably special
their eauses even of the non-member
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Mr. J. G. 1717
eirsumstanees or oonditione In each state which have a dire
on bank failures and in this moppet the observations and -;
applieE
Reserve bank would also be of at vrlue to the Oomaittee,
;aroltha
Jouth
and
espeoially to states like r,ortA Caroltla
have been numerous, In our letter ofilvaLl 5th ...re sog6est
ton that the Reserve Bank -irepare a statesent regarding the
failures ir that district, Knd Invennabli he has thiL in :air as the øh
ulee oo:se in from the various states, The Osaalttoo is veri anxious to
odours all infomation Assiblo regmriing the Oemeee of bank failures.
ytin[10
U you feel that 14 reviewing the mobodAlies frOM North Oarollm
, Nid Something of value to the Committee. me shall be rind to re-
ft %ma also bora Oat on aostioas 0 au* 10 North Oarolina would
impomol 'Wale hut svvarently
give at lomat tharrOamSap parawato
trevei * +1,/4tytnn+ P
ftAditionel 000t.
Vh/tit 4! Wit ,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ASA
SAE A=A. Sahedt1
1 01
111
", racettod
Amt_eU
Villa ',4711141.-Z•I- 7
Aram Horror .7, Co.
?armors iloolanios Ba-,7:7c
Btrnztein Johen Co•
Bait
31r.trel
otrt :11oz:taloa
:Vat tnirr
.Apealed.
1-41
10-13-21
f.1-15-31
2-14-27
As=asmiutut
AubuiBanking Co.
7-15-n1
rangers & Norabanta Bank
Elkin
5-47.21
(nosed a3ain jeceiaber 30, 1934)
Fa•tiors &Igarahants Bank
llorlIna
Farmers !Wings Batik
Cha4.7)o-lxii
Pazaors Bank& Trost Company
llortford
Nome Badkttle Conpaqy
!ilea Point
ink of North Chartotte
north Jlaarlott
•
-'armors & Narohants Bank
G mite ustm,,
neuters Balk
Littletoll
WO of Cream
jnosi
Yank of ?owns71110
Toy/nit/1110
Bank of nnetown
ingitown
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
11•23w21
rovaisber
Mr. Horbett
Mr. Riddle
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Attached aro the suspension sobedules for state
d, 1111
banks in Worth Carolina, West VirgInu, and maryian
you be good enough to chock thaa with your lists'
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
November 17, 1930,
ite. J. G.'Vs
Assisted Federal Reserve Agent,
Federal Reserve Swab of.Rlobnond,
nehmen!". Virginia.
•
Dear Hr. ?Ws
Receipt is sabmodedeed of your letter of 'knew
bar 14th regarding the olassifLeatioas of state end bents in year distrist for thevarlous dates as requo_
tn our letter of November Ugh.
Your reagens ger samestimg the eampilation oi
this data as of the dates gives in the various state re.
ports BOOM to MAI up42 taken end we sea Mello particular
objection to year tellosring tbst prsoodese. That meene, of
Gourmet that for the distriot se
whole or ger the emir,
as a whole we will not he able to reeoneilethe totals with
the official figmres whisk have been mode labile. Ms, how.
ever, cam be exnlained In a footnote end so far as I von see
will not Astreot materiall from the value of the stall,.
Very truly yours,
J. R. Riddle,
Seoretary, Co saittee on.Nranoh•
Group and Chain Banking,
FEDEIRAL RESERVE E3ANK
OF RICHMOND
November 14, 1930
4/0,147,2
0414$42
4410 4AeRt ?0
.3/4
//,11/0
Dr. E. A. Goldenweiser, Chairman
Committee on Branch, Group & Chain Banking
Washington, D. C.
Dear Dr. Goldenweiser:
Mr. Hoxton has asked me to reply to your letter of
November 12 requesting certain classifications of State banks and private
banks on three different dates, June 30, 1920, June 30, 1925 and June 30,
1930, on forms B.3, B.4, B. 5 and B.6. furnished by you.
—e have in our files official reports of the State
Bank .upervisors for the years 1920 and 1925. The 1930 reports have
not been made. The reports from North Carolina and West Virginia are as
of June 30; the reports from Maryland and South Carolina are as of December 31; the Virginia report is as of November 15. Mr. Hoxton thinks
that the data compilea from these reports as of the dates given, will be
satisfactory to yJu, and has requested me to suggest that unless we use
these reports it will be necessary for us to ask Maryland, Virginia and
South Carolina Examination Departments to make up a special list of banks
for us, giving the information for each bank requested on the forms furnished by you.
We would of course, expect to pay for the preparation of
these lists, but we are very much afraid that if we ask these departments
which are already overworked, to do this additional work far us. we may
find that later on they will be unwilling to furnish us with information
which will be requested by your committee and which is not available elsewhere.
The cooperation which exists at the present time is
very fine indeed, but it is very much endangered by additional requests
for information which your committee may in the future deem important. These
departments are undermaned and overworkedaid it is extremely hard for them
to furnish all of the data which we are requesting them to furnish us for
your committee.
Under the circumstances as outlined, please advise
whether or not %he forms enclosed in your letter of November 12, filled
up from the records available here in the bank, as outlined above, will
be acceptable to your committee. Of course you understand that the classification as to capital stock will not be materially different on December
31 from what it would be on June 30.
It is natural to suppose that the
classification according to loans and investments will be somewhat different,
The number of bankz on December 31 will not be the same az on June 30, but for
the most part the banks are small and the :rand totals will not be greatly
out of line.
Very truly yours
I Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
z
FEDERAL RESERVE BANK
OF RICHMOND
November 13, 1930
Mr. J. H. Riddle, Secretary
Committee of Branch, Group and Chain Banking
Washington, D. C.
Dear Mr. Riddle:
Promptly upon receipt of your letter of July 26; addressad to Mr. Hoxton, I took up with the Commissioner of Banking in
each state in this District, the matter of obtaining the analysis of
bank suspensions from January 1, 1921 to June 30, 1930. Every commissioner stated that as far as possible he would cooperate with us in
this matter, but in some states we were very frankly told that the job
was too big to be handled by the office force, and that it would be
necessary to employ some person to do the work. This additional expense was authorized and all states were requested to give us the information as quickly as possible.
I enclose herewith, reports as follows:
North Carolina
West Virginia
Maryland
122 banks
31 banks
4 banks
Virginia and South Carolina have not yet completed the
work.
You will find the forms not complete in every particular,
but I am reasonably certain that the commissioners have given us all
available information.
In the case of North Carolina, answers to Questions
9 and 10 were not available for banks which suspended from January 1921 through
February 1927, unless we were willing to pay the salary and traveling expenses of some one to visit the various county seats and inspect the records
of the Receivers. We requested the North Carolina commissioner to estimate
the cost of obtaining full answers to these two questions and he stated that
in his judgment it would cost $1,000.
The matter, as you know, was taken
up with your committee and Dr. Goldenweiser in his letter of October 2. expressed the feeling that we should not incur that much additional expense.
The reports therefore, from North Carolina, for the banks which failed during
this period do not furnish the information requested in Questions 9 and 10 .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Mr. Riddle //2
Upon careful examination of the reports you will no doubt find a
great deal of missing information, but it is exceedingly hr.rd to get such
information on account of the various ways in which receiverships are
handled in the different states.
At the present time the North Carolina Corporation Commission administers failed banks. This was not true however, prior to 1927. In
Virginia and South Carolina the State Bank Departments have nothing to
do with failed banks, as all such cases are handled by the local courts.
If you find in a few cases, you would like to have more information than
is given in the forms, and will let me have a copy of the report in question,
I make this suggestion for
I will attempt to get additional information.
the reason that many of the failed banks were small and unimportant and
the reports enclosed may in most cases serve the purpose.
The reports from Virginia and South Carolina will not be ready before
the latter part of December according to advice received from these departments. They will be forwarded to you immediately upon receipt by us.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours
J. G. Fr
s ant Federal Reserve Agent
•d
November 12, 1930,
44 Heston,
Federal Reserve Aaiun,
Federal Reserve Bank of •
liehmond, Virginia,
r. 4LliMIR
.-)ear -r. Ncr:ton:
In conneotior -1th its various investigations the Committee on
Branch, Group and Chain Banking finds it essential to have the banks of
the wintry classified accordng to size of loans and investments and
aemording to size of aspire:1 Ftolk. ?his information is necessary f
the stellar of banking conoentrRticn, as well as for ommparisons in thu 4i,u4w
of failures and in the development of Urenoh Waking. Aceordingly • set of
blank tables has been prepared for making these olassifications of state and
private beaks on three different dates, Jame 30, 1920, June 30, 1925, and
Jame 30, 1930.. Copies of these forma, which are labelled 3!.3, 3-4, 3.5,
and Node are enclosed herewith and the Committee would like for you to hive
this lafeemation compiled for those states whose oapitals lie within your
distriet. A supply of the.. forms is being enclosed.
In olassifring the state banks you can probnbV use the reports
of the state hafting depertments or even amours directly the assistanoe
of these departments. If, however, it becomes necessary in amy case to
use the ambers Direetery fer this material, you can doubtless fi,lst get
from the banking department a list of all the banks in the state on the
specified dates in order that your totals may agree with the official
reoords. As to the private banks, the information may be smsewhat more
diffismit to emmpile emeept where they are under the supervision of the
state ammaissioner of banking. In other states, of course, the bankers
Diesateey *Ill have to be relied upon,
In determining what items should be included in loans and investments we saggest that you fellow the instructions given in articles
enclosed.
1 to 4 teelusive of the leardts Form 105a, a copy of which is
Phis will insure unites's% treatment at the Wee dates in the various
states.
Very truly yours,
A. Goldenweiser,
Chair. n, coumittee on Brach,
Grau.2 awl Chain Banking.
/e.Enc,
x. 'Az.-6-teGv
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
dAr&-
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Novenber 12, 197,0.
11021,n.
Mr. Wam
Pedaral Rosary* Agent.
Federal Reserve BM* of ':ialtioitt,
Itialriond,
near
Iloxtons
We ars sendiag you. flvireith a amoply of r.7ables
IV-e and V-e whioh are to be used in ftirtber tabulatIni,;
information compiled. In ocumeotion with the earninre
project outlined to you in our letter of Aurmst lltb,
'ne-fe is also enalosed a memorandum on tl.ke inet'dod
fininl out nose tsblee.
Tory truly yours*
J. R. Riddle,
3cLiatttee on Brimsb,
Group wad
Hinkiag.
/1(44,4
fte
z
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
I
Naomtber 10, 1930,
Hoxton,
Mr. William
Yederal Aeserle
ichieral lieeerfe 3c.1.1",coi
RlOheoni,
Dear Mr. Mitatens
I s are sending yen herewith on outline of a study
lon
regarding the ?Menges in the menhir of banks
uttich the (*mitts, on Areneli. droop end Chain
prepared se a pert of its inveetigetlon of bankli* 001wwle..
tration in the United States. The fipnres regoirding
In national bank, have alreaAy been compiled OS cetown
attached forms and it is the desire of the Oemnittee t
plots this study by getting oorreopondine lemmaalia of
in the nnmber of state banks. the enelosed material is
expl!matory, and we request that you forwar4 It to the Ben'Aine Oamisaionori of the states whose oaritals are in .our
strict and svaIi thin to give um the infoilaation inaioattrgi.
The foras for their nse in compiling this infornatioa are
beint serit tn yon under separate corer.
The period oarered by the inquiry ineludes the
year 1930, but it is our desire that the material Or prior
71rears be Tire-razed end forwerded to us as soon as po6sible
without Jaiting for the 1930 figures. The latter mkt be
added as soon as possible after the end of the year,
Very truly yours,
E. A. Golderwelser,
Ohairien t gq-nittae on era.u,i,
Grow) and T-tain Birnkinge,
-6-15
i 2L47z-e
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Octobor
1930.
Acxton,
Mr. William
federal Bosom Agew"
loodorol iteservo Bank of.Uoisaond,
Richmond, Virginia.
Dear Mr. Boxtont
Ir connection with Table II-o which uus sUbuittod
to 7ou iith our letter of October 10th, the ,aeation has boon
raised as to what population figares should be used in alassifyinc the communities in which brut:Qs are located, Te feel
that fui! our purpoo the .-9opulation figures for one year
will be sufficient to woke the classifications for each of
the four yearo. We sucgost, theAlfore, :1.11st you eft the
population figures given in ths Jczimar - 1=0 -edition of
Rand EoNolly's 3ankors. Diraotory.
Very troll. yours*
J. II. ;1...Zio,
lamittoo on Branch.
Group and Chain Banking.
FEDERAL RESERVE BANK
OF RICHMOND
October 13, 1930
Mr. J. H. Riddle, Secretary
Committee, Branch Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Delar Mr. Riddle:
'Receipt is acknowledged of your letter of the llth,
requesting an estimate as to when we will be able to furnish you
with the information requested by the questionaire, on Branch Banking
and Group Banking, and the data with respect to suspensions of state
banks and earnings of National Banks.
We have four men working on the earnings figures, and
the state bank departments are being requested to give us an estimate
as to when they will be able to give us the information with respect
to branch and group banking, and suspensions.
As soon as this information is received it will be
transmitted to you.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours
Assi
t Federal Reserve Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 11, 1930.
Lx. Milan W. Boston,
Federal Deserve Agent,
Fedora& Reserve Make! Riehmond,
Riohnand, Virginia*
Doer Mr. Moutoss
At the resent gendarense of Governors and Agents
it was soggeebed that the Oemmittee an Brush* Grow) and
Chain Banking nolo ie estimate of the time ellen its report
will be satnitted. To do this it is nesselexy to have re.
,AIrts from the Federal reserve banks as to the status of
inflasnation 'MIA they are oompiling or having ustalut
for the Oemnittes and an estimate as to the ttne ftima
Jill routs geed enough,
we may =poet this iafoimtioa
thereto*, to shook: up on the work in your &Istria* smi
give us an estimpte as to ion the material being prepared
or oolleoted on the following sabjeets will be sonpleteds
Bremen banking (questionnaire)
Group banking
juspensimnS
Very truly yours,
J. R. Riddle,
eoretari, Oemmittee
Ohisis Menking.
Orettp
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Mr.
-114.4i.4j44,
Federal HeOUVO Agent,
oad-ra/ ROOOM Bank of RIoNsond,
Itiehnond, Virginia.
Derr 17..r„ Roxtont
)Is,
Zoolose& ple:.so find sepias of throe tablok.
anti tile, for use in grouping inforat.tion compiled on
the Itnolye's of Doke garninfor blanks soot you rfith our !otsupply of those tables is being taw
ter of August 12th.
A oopvof wash
mmied to you under separate (favor
sawild be prepared for 'soh stet* or fraction of a stuto in
your distrIbt, for c,oh of the four "oars. he.. tAsies °all
pritv.r.., grouping of hnnks assordimg to the rate of set
for
profits er investod oanitel “nd then rOgroopings awarding
to the stubs.
It IS requested ths4 you mond to as these tables for
esoh year as you finish thou without waiting for the completion
Of the *hole projeot, as this will enable us to begin reviewing
the material. The growing of the benne en the basis ef net
lees or net profit to invested eapital ahead be hest in that
form for a Una, it possible, as lei *all maim presently
a table fere tier presenting the *Waal Oponating Patios of
MOB 118011141.316 te this growing. The (original Ames en whisk
yea Uwe vOrtni out the ratio* far the intividaal banks shoat,
St senree, be retained at your bank.
Very truly yours,
J. Ho Riddle,
neenetoalro Oennittes on-Jranobo
Oro%) and Onsin Bankiag•
paw.
/
r
FEDERAL RESERVE BANK
OF RICHMOND
October 6, 1930.
Federal Reserve Board,
Washington, D. C.
Attention: Mr. J. H. Riddle, Secretary
Committee on Branch, Group &
Chain Banking
Gentlemen:
Receipt is acknowledged of your letter .ci1_the_2, with
reference to the report on branches for the years 1900, 1905,
1910 and 1915 in South Carolina.
The State Bank Examiner in South Carolina has very
meager information as to these matters and there is really no
use to write him for the information requested in your letter.
I have, however, referred to the information obtained by me in
1922 direct from all banks in South Carolina which at that time
were operating branches. This information, I suppose, was transmitted to the Federal Reserve Board in exactly the form it was
submitted to us by the banks in question. For your convenience,
however. I am enclosing herewith the information which was all
that I could get from the Examining Department of the State and
direct from the State banks.
I give you below the name of the bank, the location
of its branches and the dates acquired or opened.
Bank of Western Carolina,
Aiken, S. C.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Branches
Bank of Western Carolina,
Barnwell, S. C.
December 1909
Bank of Western Carolina,
Batesburg, S. C.
March
Bank of Western Carolina,
Blackville, S. C.
December 1909
Bank of Western Carolina,
Ellenton, S. C.
December 1909
Bank of Western Carolina,
Johnston, S. C.
April
1918
1911
-2-
111
Federal Reserve Board,
Washington, D. C.
Attention:
10-6-30
Mr. J. H. Riddle, Sec.,
Corn. on Branch, Group &
Chain Bkg.
Bank of Western Carolina, (Continued)
Aiken, S. C.
Branches
Bank of Western Carolina,
Lexington. S. C.
April
1912
Bank of Western Carolina,
North Augusta, S. C.
June
1910
Bank of Western Carolina,
Salley, S. C.
January
1910
Bank of Western Carolina,
Wagener, S. C.
December 1909
Bank of McCormick,
McCormick, S. C.
Branches
Bank of McCormick,
Willington, S. C.
February 11. 1911
Farmers & Merchants Bank,
Marion, S. C.
Branches
Farmers & Merchants Bank,
Latta, S. C.
January
1903
Referring to the three banks mentioned in your letter, will say
that the Bank of McCormick, McCormick, S. C. was closed on February 20, 1924.
The Peoples Bank of Fountain Inn, S. C. was closed on November 6, 1926.(No information on hand as to branch). The branch of the Farmers & Merchants Bank
of Marion, S. C. is located at Latta and not Lotta.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
J. G.
stant Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 2, 1930.
Assistant Federal Reserve Agent,
Federal Reserve Bank of Richmond,
idchmond, Virginia.
Dear Mr, Fry:
This will acRnowledge your letter of September 30th
with information concerning banks operating branches in all
of the states of your district except Virginia for the years
1900, 19J6, 1910 and 1916.
In checking over the reports from Sonth Carolina
with records we already had, we find that the following
named banks wnich are shown in our records as having branches
in the period covered are not reported 13:7 you:
1, The Bank of ::icCormick, McCormick, with a
branch at Willington, established February 11, 1911.
2. Farmers and Mierchants Bank of Marion with
a branch at Lotta, established January 1903.
3. Peoples Bank of Fountain Inn with a branch
at Art Shoals, established 1912.
In addition to the foregoing we find that the B
- ank of
Western Carolina IdTiS reported to us in 1922 as having at that
time 8 branches in operation, all of which had been established
prior to 1916, In the report which you forwarded, which is the
only one sent in for foRth Carolina, the bank is shown as having
only 6 branches and that in the year 191b.
Will you kindly take this up with the Commissioner of
*nth Carolina and inform us whether the records as indicated
above are correct or noti,
Very truly yours,
J. H. .Addle,
Secretary, Committee on Branch,
Group and Chain Banking.
Wr—
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
o
•
,
s
•
•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
October 2, 1930.
41Zr. J. G. ?gy,
Assistant Pederel BOSOTVO Agent
?federal Reserve Bank of.ilichmond„
Manmade Virelnia.
Dear Mr. Fry:
received your letter of September 30, 1930 rearling the diffieulty of collecting- In North Carolina the
data requested in questions 9 and 10 of the sehedules an
bank suspensions.
I agree that :;1,000 seems to be a substantial
sum to ray for collecting that particular information.
Tven if we Could undertake this, I assume that there is
no assurance that the information would be entirely antis-.
factory. If the remainder of the data called for on the
schedule can be °applied in a reasonably satisfactory form
from the state recomts, I am inclined to think we should
not Incur the additional expense for .)uestians 9 and 10.
Perhaps it will be possible for the Corporation
Coomission to supply some pert of the information called
for in those two questons without visiting the county
seats. If, for example, Ise could get in the last coluun
of those two questions the per cent of payments on gen.oral or unsecure0, claims, it would be very useful, and
It is hoped that this figure at least will be available.
Very truly yours,
E. A. Goldenneiser,
Chairlan of the Committee on
Branch, Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
OctolpJ.c
Mx. J. G.
4uBiaat7cieral Reaerve Agent,
.2e0arai
of 1,
1o&aonet,
Dear Y,ro Tryt
As re[aested in your letter of October 1st,
we are sending directly to Lir, Albert
it, Aato
3ank Exaainer„
3outh Garonne, 200 oopies
o
the schedule u.1.1 ban-4 ouspensions and to 4
- -oa we
aro sandl.ag, uAder separate cover, 110 ad:Atnal
coplea.
Very truly yours,
J. a. Aida*,
;Acretary, Committee on Branch,
Group and Ghein banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
FEDERAL RESERVE BANK
OF RICHMOND
October 1, 1930.
Federal Reserve Board,
Washington, D. C.
Attention: Committee on Group, Chain
and Branch Banking.
Gentlemen:
Please mail direct to Mr. Albert S. Fant,
State Bank Examiner,
Columbia, South Carolina
200 forms for reporting data concerning failed banks from
January 1, 1921 through June 30, 1930, and send direct to
us 100 additional forms.
Very truly yours,
As
J. G. Fry
t Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL. RESERVE BANK
OF- RICHMOND
October 1, 1930.
Mr. J. C. Noell, Assistant Secretary,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Noell:
Your courtesy is greatly appreciated n sending to our
Mr. Broughton, in Sumter, S. C., a set of the hearings before the
House CommitiiiZ on Banking and Insurance, on the subject of group,
chain, and branch banking.
I hope to see you before very long, and with personal
regards, I am
Sincerely yours,
IF
. 1. Garrett, tanager,
nk Relations Department.
JTG:LC
•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
September 30, 1930
Dr. S. A. Goldenweiser, Chairman
Committee, Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear Dr. Goldenweiser:
On the 24th I received a letter from the Corporation Commission of North Carolina, informing me that it would be impossible for that office to furnish from its records, the information
called for under questions 9 and 10 in the special form furnished by
your committee in connection with failed banks for the period from
January, 1921 through February 1927.
It was explained to me that during that time
fatled banks were administered by local receivers, and that the information called for would have to be gotten from the court records
I wrote the commission
in the counties were the failures occurred.
to
estimate
additional
cost
for an
of the
obtain this information.
There is enclosed herewith for your consideration, a copy of the reply.
Mr. Hoxton thinks that $1,000. is a right large
sum to pay for this information, but does not however, question the
Before
fact that it would cost that much to get it in proper form.
acting on the matter he would like your committee to advise whether
or not the figures under these two headings will be worth the cost
of obtaining them.
Very -truly yours
e
• O. Fry
Assistant Federal Reserve Agent.
im•
COPY
State of North Carolina
CORPORATION
COMMISSION
Raleigh,
September 27, 1930
Mr. J. G. Fry, Assistant Federal Reserve Agent
Federal Reserve Bank
Richmond, Virginia
Dear Mr. Fry:
After the receipt of your letter of September 24, I discussed with Mr. Mitchell the method to be pursued in obtaining the information desired under headings 9 and 10.
He suggested that the best
way to go about it would be send an accountant from county seat to county
seat of the counties in which failures have occurred during the period
from January 1, 1921 to March 1, 1927. An auditor, who is reasonably
familiar with the records of the officers of the various counties and
who is in charge of the audit for us of the affairs of the Raleigh Banking and Trust Company, is of the opinion that the cost of this particular
work would be about 0.,000.00.
This would,of course, include the traveltng expense of the accountant as well as the usual per diem for such work. It
would be necessary to visit 40 different county seat towns and in some
cases it would be necessary to call on the receivers themselves.
Will you have sent to us 50 more forms similar to those which
you have sent us for these reports and advise us whether you will wish us
to have the information secured from the county seat towns as I have indicated above?
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
I am,
Yours very truly
(Signed)
C. I. Taylor
Liquidating Agent
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•S
.
FEDERAL RESERVE BANK
OF RICHMOND
September 30, 1930.
Federal Reserve Board,
Washington, D. C.
Attention:
Dr. E. A. Goldenweiser, Chairman
Committee on Branch, Group &
Chain Banking
Gentlemen:
As requested in your letter of June 5, we have obtained the information concerning banks operating branches on
June 30, of the years 1900, 1905, 1910 and 1915 from all States
in this district except Virginia. West Virginia, as you know,
does not have any branch banks.
The reports from North Carolina, South Carolina and
Maryland are enclosed herewith.
Very truly yours,
J. G. Fry,
t Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
September
, William W. Heston,
Federal Reserrs Agent,
Federal Reserve Berk of.Richziend,
Rickiwnd,
Deer lire Sexton:
In onmesotion With the earnings project of
the Oemmittee es ireodb, Weep ami °hate Banking trans..
MOM to yea with our letter of legist 11th, one of
tie reserve 'banks MO made some eseelletione with rirferm
4010 to the handtbar of nagAtive item.'Mak are in
sword with Oat we deem to te meld palettes in this
moot. mma mere es ordimay poet* them slew to
yes terror Information am& gaidemees
YET truly your%
a.Ito Mae.
assreterf•0011NdtteS OR.Breroh,
group sei abets Smeftee.
)4-16
X- 1*
rz'
a-,1--7•4"*"'J
C
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
September 23, 1930.
Dear Mr. Garrett:
Complying with the request contained in
yourjetter of September 22, I am sending to Mr.
Am I. Broughton, Box 392, Sumter, S. C., a complete
set of the hearings before the House Committee on
Banking and Curreno on the subjeot of group, chain
and brass*: banking. There will be no cost involvai,
With kind regards, I am
Sincerely yours,
J. 0. Noe11,
Assistant Secretary.
Mr. Jnu. T. Garrett, Manager,
Bank Relations Department,
c/o Federal Aeserve Bank,
Richmond, V.
•
•
FEDERAL RESERVE BANK
OF RICHMOND
September 22, 1930.
Mr. J. C. Noell, Assistant Secretary,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Noah:
Some time ago you very kindly gave me a complete set of
the hearings this spring before the House Committee an Banking and
Currency upon the subject of group, chain, and branch banking. I
have studied these reports with great interest and if possible I should
like very much for our South Carolina representative to have a set
for his use.
I shall be greatly obliged if it is convenient for
you to send a set of these hearings to Mr. A. M. Broughton, Box 392,
Sumter, S. C.
I shall be very glad to remit any cost that may be
involved to cover postage, etc.
I hope that you are well, and with personal regards, I am
Sincerely yours,
, A"ano. T. Garrett, Manager,
/ Bank Relations Department.
JTG:LC
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
FEDERAL RESERVE BANK
OF RICHMOND
September 22, 1930.
1=3,
(P'C`5
cflik,o't•
p 140*
cio
TOP A
(rti
Federal Reserve Board,
Washington, D. C.
Attention: Federal Reserve Committee
on Branch, Group & Chain Banking
Gentlemen:
Please send us an additional supply of the enclosed form "Bank Suspensions since January 1, 1921", as
some of our State bank examiners are desirous of retaining the forms for their files.
Very truly yours,
ant Federal Reserve Agent.
SentsMber 17, 1930.
1.1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Ittlinn We Menton,
Moral Beeerve Agent,
Modena eserwe Bank of.Rioluond,
Richmond, Virginia,
Dear Mr.
atons
In oonnection with the earnings project of
the Ocuseittee on trench, Group and Chain Banking we
Wee been ailed to isle on certain points with respect
to the elimination Of banks frou a pertioulsr year's
enepilation because of supension, *consolidation, or
ea SAP enol ,sing for your information ant
the
itaidems a adissogrop* of the points raised and enr
replies thereto.
Very truly yours*
Z. A. Ontannmeiner, Chairman
Committee on mrsneh, Group and
Chair Banking,
7*-sno.
ave-6/
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
September 13, 1930.
Federal Reserve Board,
Washington, D. C.
Attention: Committee on Branch, Group
and Chain Banking
Gentlemen:
Mr. Horton has requested me to acknowledge receipt of your letter of the 12, with reference to the
preparation of the reports on bank suspensions in this
district since January 1, 1921. A copy of your letter
is being sent to each bank commissioner for his guidance
in the preparation of the reports referred to.
Very truly yours,
J. G Fry,
Assistant Federal Reserve Agent.
September 12. 1930.
Mr. L. d. Hoxton„
Federal Reserve Agent,
Federal Reserve Bank of Richmond,
Richmond, Virginia.
‘,4y dear Mr. Horton:
Wow that actual work on the Suspensions
Schedules, submitted to you with our letter of July 26th, is under
way, questions are arising in certain states which reflect the
different methods of keeping records and the difficulties in reporting exactly what is asked for. It is manifestly impossible
to expect that any one schedule could be found equally well adanted to all states and to the Comptroller's office, and it is, therefore, unavoidable that in some states it will be much more difficult to fill out the Schedules than it is in others. To insure
as much uniformity as possible, however, and to insure accuracy
in interpreting the reports, it seems desirable to emphasize the
following points:
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1. Sections 9 and 10 of the schedule, as well
as sections 7 and 8, call for data on claims by depositors only, but where the records are such thnt depositors' claims cannot be segregated from other claims,
thnt is, bills payable and notes evidencing borrowed
money, then total claims should be reported, and a notation made to that effect.
2. Secured claims should include only those
claims secured by oollateral or by collateral and surety bond both, but not claims secured by surety bonds
alone. The latter should be listed among general claims.
3. It is apparently the practice in some states
not to list as claims those deposits which are secured
by collateral, because they are assymed to be self-liquidating. For purposes of this schedule, however, all
such deposits should be listed as secured claims allowed
and the amounts reali7ed by the depositors on the collateral should be shown as parents rnl. these claims.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
.-..)xton
"2
September 12, 1930.
ThP -lounts realized on the collateral should also be
shown ender collections.
4. In many MBAS it is difficult to Shoe
a figure for Secured Claiwe that does not include
items which in osrt sre .:resent also. as General Claims.
The reason for this is that Secured Claims are assumed
to be self-liquidating and, therefore, are not part of
the receiver's direct reenonsibility. which covers only
claime allowed for dividend puroses. Any portion of
a Secured Claim not liqeidated by thP collateral seg.
mated to it may, however, bot allowed as a General
Claim, end, therefore, increase the claims allowed
for dividend purposes. When this hippies and e corh.
responding change is not male in what ems originally
reported as secured claims, it moults in duplication.
Where it is possible within a reasonable tine to get
accurate figures of Secured Claims that are net and do
not include amounts also included as General Claims, it
is desired that they be so reported. If this is not
2ossible, however, and the only available figures of
Secured Clais include orunts also present in General
Claims. It should be clearly indicated on the schedule
that this is the case.
5. Under seetion 10 the amounts shown as loffsets to claims° Should not be included either ender collections or under claims allowed.
6. /f records are in such e!aoe that the figures cannot be ',
applied in exactly the form salled far
in the rbove section )r any other sections of the schedule,
then the best figures available shotIld be given and n
notation made as to exactly what they represent. This
is esaentral as a gulls in tabulating this material in
order tloot we may not compere Wholly unlike figures from
different states.
Very truly yours.
Inc.
C. B. Hans
For the Committee on Branch.
Group and Ca-in leaking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
JOV6:1.4.4LICA: so,
LJ.16.V.
Mr. J. I4 Fry,
Aseietent Federal Reserve Agent,
!Were/ Reserve Bank of BAchmond,
Richemnd,
Or direr Mr. if
Di *Te Biedle's asence I wish to acknowledge
your letter of the 4thwith its enclosure of re.
tarns on the following banks operating breaches
outside the city of the head alio*:
Bank of rooter% Oarelina, Alban, 3. Z.
Peoples state BnrIX of S. C., Charleston, S. C.
North Carol On Bank& Trust Co„ Greensboro, 7.
Wiry 'Grnly yonre,
C. B. ammond,
For the Committee on Branch,
OrTar -
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
FEDERAL RESERVE BANK
OF RICHMOND
September 4, 1930.
Mt. J. H. Riddle, Secretary
Committee on Branch, Group & Chain Banking,
Federal Reserve Board,
Washington, D. C.
Dear Ur. Riddle:
Referring further to your letter of July 14, in
which you requested Ur. Hoxton to obtain certain information on banks in this district operating branches outside
of the city of the head office, beg to enclose herewith
the reports submitted by the following banks:
Bank of Western Carolina, Aiken, S. C.
Peoples State Bank of S.C., Charleston, S. C.
North Carolina Bank &Trust Co., Greensboro, N. C.
Mt. Hoxton requests me to say that as soon as
the reports from the other banks are received they will
be forwarded to you.
Very truly yours,
J. G.
stant Federal Reserve Agent.
FEDERAL RESERVE BANK
OF RICHMOND
.ugust 28, 1930.
Federal Reserve Board,
Tashington, D. C.
Attention: Committee on Branch,
Group and Chain Banking.
Gentlemen:
••••
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Replying to your letter of August 11. requesting an analysis of the earnings of National
banks aver a period of four years and certain other
information as called for on the forms submitted by
you, beg to advise that the forms have been received
and we are actively engaged in the preparation of the'
data requested.
Very truly yours
Ass
J. G. Fry,
ant Federal Reserve Agent.
4i,t\
lks
:
0
‘
1
‘
41!
r9
(e*
`b
• ag. •
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
August 22, 1930.
Federal Reserve Board,
Washington. D. C.
Attention: Committee on Branch, Group
and Chain Banking.
Gentlemen:
Replying to your letter of the 21, with
reference to the report on the extent of branch banking in the States of this district for the years 1900,
1905, 1910 and 1915, beg to advise that we have not
yet been able to get this information from all of the
States. However, as soon as it is possible to obtain
the information, it will be forwarded to you.
Very truly yours,
J. G. Fry,
ant Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Angaryt 21,
Mr. lilliam W. Nexton,
Federal Reserve Agent,
?edema %eserve Dank of Riehmondo
Riohmond, Virginias
My dear Mr. Minion'
_OA Junr 5th4ro Goldsnwolser addrou,
a letter enclosing forms,• sample of which is attached,
for reportiw: the extent of branch banking in the stator
in :mar distriot bar the Amore 1900, 1906, 1910 and 1:
This information has some in end been compiled
for all but three districts, one of *kWh is yours; and
ladle, as yet ve are not imesmwomismosi Ay the foot that
it has not oome in, nevertheless it would assist as to
pie:feint our work if you could flee le am idea haw soon
• expect !to
both L1. Goldonesiser, the Chairman of the
Ocassittee, and Ur. Riddle, its Secretary, are out of
town for a OW weeks and I am witing for them in their
*beams.
Very tralar yews,
0, 3. MOmmsmd,
Per the Committee on Branch,
Orme mad Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
August 13, 1930.
Mr. J. G. Pry,
Assistant Federal Reser/e Agent,
Federal Reserve BRok of Richmond,
Richmond, Virginia.
Dear Mr. Fry:
In response to your request of August 11th,
we are sendinz herewith the fifty copies of tba
suspensions schedule that you desired.
Very truly yours,
C. B. Hanmond,
For the Committee or Branoh,
Group and Chain Banking.
EllaCt•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
August 11, 1930.
Federal Reserve Board,
Washington, D. C.
Attention: Committee on Branch, Group
and Chain Banking.
Gentlemen:
Please send me about 50 additional copies
of the enclosed form.
Very truly yours,
J. G. ry,
sistant Federal Reserve Agent.
17
r 91
• 'r.f.4
August 11, 1930.
x:r. Wm. 7. lioxton,
Federal Reserve :vgent,
7edeTa1 Reserve Bank of Richmond,
Richmond, Virginia.
Dear Ir. Horton:
The Committee on Branch, Group and Chain Banking
has outlined a t)rotTam for analyzing the earnings of national banks
over a )eriod of four years. At the heart of the discussion with
respect to the changing nature of our banking structure is the matter of wholesale bank suspensions, repeatedly cited as evidence of
the failure of the unit system :n certain quarters. 'sack of the
fallaresis, of course, the caestion of profits and losses. The motivating force of banks as of other business enterprises is profits
and their success or faiure is measured by their ability or lack of
ability to show satisfactory earnings. Thio is especially eignificant
aith respect to banks, for a banker who in not showing a fair rate of
earnings is under the constant temptation to take greater and greater
risks, thereby jeopardizing the safety of his depositors' money.
It is very important, therefore, to now what tyre of
banks are not justifying their economic existence, where they :re, located and why they are in this position. The problem is to ap2roach
these questions statistically for a period of years. Data should be
available in such form that they can be classified in various ways in
show any significant trends in earnings. Sach material could
order
be classified by states to indicata tendencies of success or f. Lure
in the different sections of the country And in the various types of
Industrial and agricultural communities, and cross alassified to see
if a degree of )rofitableness is associated with size, either of the
bank or of the oommunity in which it is located. liavina: determined
the classifications of banks not showing reasonable Jrofits, it is
desirable to know the operating conditions that are as.ociated with
such a situation. This re-uires a more detailed analysis of e4rnir,-7
expenses, losses, composition or deaosits and capital funds.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Yr. Wm. W. Hoxton, 42
August 11, 1930.
Aany of the Illegal Reserve Ranks have devot
ed considerable time and effort to asalysing the earni
ngs of bunts in their
districts. It is unfortunate, however, that there
exists no body of
statistical data on earnings covering tne whole count
ry for a period
of years that would permit grouping banks in a varie
ty of ways or
that is strictly comparable in the various distr
icts.
The oresent .irogrem has been worked out in consu
ltaton with severai of the rederal reser
ve barks which have already
been makinn. investigations in this field
. It consists in working out
various ooerating ratios for each aational
bunk for each of Vaal years
1926, 1927, 1928 and 1929, And each redor
al reserve bank is requested
to compile the data for its district.
A special form has been pre.pared and orinted for transcribing the
earnings data and recordAg the
various ratios. The enclosed copy of this
form has been filled out
as a specimen and seams to be self
explanatory.
'
,age 2 gives the orimary items which are to be
compiled from the reports of condition- and
reports of earnings, exoenses,
and dividends. On page 4 complote instr
uct:ons are L7iven as to the
composition of these items aild the reconcilia
tions from call to call.
The earnings and e.7pense rigares will, or
course, be the sum of the
figures on the TWO semi-annual reports of
earning', expenses, iaid dividends for the year in I.aestion. Report
of condition figures will be
ti resalt of averaging the resoective
firaues on the ''our reports of
condition (Spring, June, Autumn, and December).
In the year 1926 there:
were only three calls. On page 3 of the form
provision is made for recording the desired operat:ng ratios computed
from combinations o7 figures set town on oage 2.
I am sending you a supply of these forma equal
imately to four times the number of national banks
in your distr
are aware that there will doubtless be vario
us questions ar
when the work gets =ler way about which you
_lay wish to confer.
Phere may be cases where a change in the statu
s of a bank through
merger or otherwise oo affects tha condition
or earning' figures ia
a given year that it should be omitted from the compi
lations of that
year. It is hoped, however, that in each of these
cases a special
effort will be made to perfect a reasonably go
-d set of the necessary
income and balance sheet figures for the year in ttesti
on. a too gemerous ia-ogram of elimination of banks would obvio
usly cause the loss of
mach valuable information.
We are working out olans for gromping and analy
zing
the various operating ratios after they have
been c -Hupated. These
plans will be seat you as soon as they are
lompleted. It is suggested,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
tre.
Mr. W. W. Horton 13
kagast 11, 1930.
therefore, that the blanks which are now being forwa
rded to you
should not be returned to "a„a%ington when completed, but
ohould be
held f,.r tae purpose of making the vtzious tabulut5on
s desired.
Wor the time being this analysis of earnings
is
limdted to national banks only, in the interest
or time and economy.
It is somewhat doubtful whether the incl...mion
of state member hinks
woaid Add materially to tlie value of the st/Oy.
The C!ommittee is open
to szestions on this point, however, and it would
be A simple matter
to ad:1 the member sVite ban:s to the situay at a
later late if it should
be deemed advisable.
Very trail yours,
P
f'
J. R. Riddle,
9eoretary, ,lommittee on 3ranch,
Group and lhain
7(-1.A°1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
August 9, 1930.
Mr. J. G. Fry,
Assistant Federal Reserve Agent,
Federal Reserve Bank of Richmond,
Richmond, Virginia.
Dear Mr. Fry:
Your letter of August the eighth with respect
to the charges to be incurred in getting figures on
suspensions for several of the states in your district, particularly South Carolina, came this morning just astir. Riddle was leaving to be out of the
city for some weeks.
I have talked with hLn ana also with Mr. Snead
about the advisability of seouring the information
of suspensions in Swath Carolina in spite of the
cost of 000.00, and we feel agreed that it is desirable to do so.
Very truly yours,
C. B. Hammond,
For tbe Committee on Branch,
Group and Chain Banking.
CB11:11
FEDERAL RESERVE BANK
OF RICHMOND
Federal Reserve Board
Washington, D. C.
Attention;
Mr. J. H. Riddle, Sectly
Committee on Drench, Group & Chain flanking
Gentlemen:
Referring again to your letter of July 26,', in which you request
Mr. Hoxton to obtain detailed information with respect to each failed
bank in this district during the period from January 1, 1921 to June 30,
1930, beg to advise that we have heard from the Commissioners in each
state in this District.
In the case of one state the estimated cost to obtain the
In the cases of
information is $150.00, which we have agreed to pay.
In the
be
cost
the
will
nominal.
Virginia,
Maryland, West Virginia and
the
that
Examiner
estimates
Chief
case of South Carolina however, the
minimum cost will Le $500. This apparent large charge is due to the
fact that when a bank fails in South Carolina its affairs are placed
in the hands of the court aid the court appoints a receiver, the State
Examination Department having no further jurisdiction in the matter.
In order to obtain the information requested by you, it will ne necessary
for the State Examiner to send a representative in his department to the
receiver of each bank, and in my opinion this cannot be done for less than
$500.
If your committee feels that the information will be worth this
amount to you,we will authorize the work and obtain the information as
quickly as possible.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Your prompt reply to this will be appreciated.
Very truly yours
. Fry
tant Federal Reserve Agent.
Aueeet 5, 1
Ir. 'enliee
Foxton,
Federal 77611-.-1 egeet,
Federal 7eseree Bank of eichmend,
2ich1ond, nrginia.
Dear Ir.
H3XtOrl:
Referring to my /etter ef July 26th eubmitting the scheaul
e or
bank suspeecoee,
ee:e to supplement the leet parageaph
that ;our viees referlieg the cneaes of failures in your
eietrict rould
especielle 711_4', hle to the Ioemittee.
The following which bears
eirectly or. 'e e ferfures is taken from the reeent hearings
before the
House Coacittee on eenkieee-nd eurrence--eelumo I, part 6, pace
577.
'Mr. C777'
1 NSOY. Governor, reference has been mae.e to
the eifficelt:os ie the lnet
7ers of the levees ane the
failures. As e matter of fact, from yoer observetion. has
not a great deul of th.!- t acre) from the shrinkage in the
values of the eseets of the customers of the banks, which
hee ocese ebout--I an not charging it wes anybody's fault-but has not a great deal of the eifficelty resulted from
the ehrinkege iu velue of rev l estete vnd other abeets of
the people who dealt with the banks'
Governor TOM. It was a very contrieutiee factor.
Mr. CT3TMON. For inetarne, in my oouutey, agriculture' prodecte were high; agriceltural lends were high,
and the win who ce:eee
eeres of laid Ts considered a
perfetli
riel- 'or
Eizable loan eeveelere :*rom two
to ten thousand dolltru, nen the defletion, or eentever
it might be teemed, of 1920 came about, the banks
were
full of paper of that ieied. Men who were perfeatly
good,
as their aosete etcoe prior te the beginning of
the decline--this is my obbervetion dome there end I take it
was so where you were—the decline in the price
of agri-
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
,M2gust 5, 1930.
Mr. William W. Hoxton #2
cultural products (cotton with us and various other things
with you) rendered that fellow urable to pay his debt, and .
bgnn t enner his paper.
the
Hy the next year they begrn to call for security and
wanted a morteage on the land. Th7.t 5 thr wny A street
deal of the aortgeges got into the brhks with us. Is not
that true in your tection?
Governor YWICi. Yes. sir: th,t
usually they were veconi tortgages.
if
trr-9 'pith ns, and
kr. 3777E::ZON. He -ecoU come ap and say, "T can not
1)rth t10,000. I can borne-,
ptiy thic. !AL,
$5,000 from the Fecierel IA16 batik and pay that to you and
give you a seekona rLortgage for the balance." Thnt is about
the history of things with us. They did that and he farmed
another year r:nd they did that cqa:in. The vel- a o the land
shrinks end he beginy to fall lerwri in his installments with
Tith nn:i. in about
brink th.t ho ir
the joint-tncl:
a year they begin to foreclose and sell him out. rhe margin
the oommerciel benk has is wiped out. That Lis what Laopened
- .1-1. t An.penol iA Ill.ronth-rast?
s that ;
with 116.
Governor YOUNG. Yal.Lt.
happened in the ebithwest.
r.
i
- scriptIon
c3urat:!:
of what
1 coat gone,
Then hs it oat, 1Jrrefootc1
!!'elless
those
)f
toaralldr,
zociAl no way to farm; ane. there a:2
collapse
in
the
who were that say, and it was the rasolt of
banks.
nssatz¶n
the
agrioultural values that , c11. Lip Ilat!:1 ;r177.1
They continued to curry the.. :toy could not do anything else.
tho farmer, did not ha,.: the money. The lan was mortgaged,
so it could not be given as ferther seourity.
Wow, has there not beer a !rent e.l of thir not me to
b%rkt, but dua to
an7 inefficiency in the systee,
the conditions that arose ailhout anyo..1:- brine able to forecast
thi.t eelntry?
it, that Las torn do-ve the 0,-"lantry
The above Is a very interesting description by Mr. Stevenson of h_
b:,nkt in his section f;ot tied
111)
rith agricultural reel ciata and suf-
fered losses with the decline in reP1 estate velues.
?coorcAng to his
statement the difficulties which banks hove beer having a -e not due to
inefficient managenent, bat almori
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
rt5c,1 - to . nr,:,,-ocia.)1f, circumstances.
t
//,------
William W. IltOn #3
AwAtst 5, 1930.
I yonder if this could be a fairly accurate description of what
went on in your dil:tric'. :nd if you coala are with lir. .1;tevenson
that the ,.tiscs cf Milares cannot be attrialted to inefficiency in
management.
t'ne L7,14;
a:-e filled oqt by the state
barking elepartmnts in your :.istricL
reourned to you, I have no
doubt but that in reviewing the causes of failures you will have some
observr'ti.::L.: to _Ai.
t the
having a prep:tre:i st- tcAl:Alt
with conaitionn
Ilatrict
plaining the vriouL st!71r):-. by
epecul
sible fc. th
be 6pel1$0
,mf-rt
r
wAch
:. 97-0 • el ,1
&tcae. Lhe Committee would appreci4te
7 :63)47
.hc, has been thoroughly funnier
uing the past ten or twelve years exthe brns became in.-nlved in the land
fl,t on o
oncnrrnd.
lnnd vtlues may be reE
?erhs.ps this statement could
r. Ftivansonge explanation in the
above
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Vc.-ry truly yours,
j. R. /iddle,
rdecretarY, 3memitteo on Branch,
group =1 Yhci
ot
FEDERAL RESERVE BANK
OF RICHMOND
July 31, 1930.
Federal Reserve Board,
Washington, D. C.
Attention: Mr. J. H. Riddle, Secretary
Committee on Branch, Group &
Chain Banking.
Gentlemen:
As requested in your letter to Mr. Horton of the 26,
I am requesting from the State department of each State in this
district the information desired by you with respect to bank
suspensions since January 1, 1921.
I am sure it will require considerable time to obtain
this data, but we will be as prompt as possible in forwarding it
to you.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours,
/
,
J. G. Fry/
Assistant Federal Reserve Agent.
July 26, 1930.
Mr. William W. Horton,
?edema Reserve Agent,
Federal Reserve B%nk of Richmond,
Richmond, Virginia,
Dear Mr. Roxton:
The Committee on Branoh, Group and Chain Banking decided some
veekm ago that an essential part of its work should be a detailed
lnalysis of bank suspensions since the beginning of 1921. Tbe rapid
growth in recent fears in group and branch banking is regarded by
many as an outgrowth of the large number of ha._ susiy,nsions which
have taken place during the past decade. Whether or not this is
true, it is obvious that before the Committee can determine the
fall significance of this mortality among banking institutions and
Its relation to the ne7t trends in bnnkinT, it will be necessary to
make a more complete 7.nalysis of failures than the data eomniled
at present will permit.
The prograa proposed is a substantial undertaking, and to be
successful it is necessary to have the full cooperation of the
various state banking departments, as well as the various Federal
reserve b- inks. This program will entail oonsiderable effort and
expense on some of the state banking departments, but in view of
the wide spread suffering caused by bank suspensions it is hoped
that the state eaperintendents will 4ve the System every possible
assistance in this study. In each of sixteen states of the Union
over twenty per cent of the banks in existence in 1920 have failed
since that time, and in seven of these over forty per cent of the
- anks have fai1(-4. These failures are continuing at a high rate,
more banks having suspended so far this year than in any similar
period since 1924. This is one of the most important problems
facing many states and certainly one of the major problems of the
whole country, and many states are doubtless already struggling
to devise -ways and means for bringing about greater stability
and security among the banks of their state. Under the carom.
stances it is anticipated that the states will welcome the op—
portunity to cooperate with the Committee in this work.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Mr. William W. Hoxton #2
July 26, 1930.
It Is appreciated, of course, that mapy states are operating
on very limited budgets and may find it somewhat difficult to undertake this extra work, but it is hoped that in no ease will the difficulties prove insuperable. It may he advisable in certain cases
for the reserve Bank to offer its services in devising treys and means
for collecting the data, and this cooperation, if necessary, might
actually improve the quality of the information bewared.
A tentative schedule for collecting information on bank suspensions was submitted for suegestions to the banking departments of
some twelve or fifteen states in which suspensions have been unusually heavy. The response from these states and the apparent willingness
to cooperate in compiling the data were very gratieying. At the
same time a number ef euegestions were made as to revisions of the
sehrele. Wherevee possible these suegestions have been incorporated
in whole or in part. In some cases, however, the suggestions could
tot be completely adopted because of the differences in terminology
nd records in the various states. It has been necessary to draw
up the schedule in terns whioh would fit as nearly as possible the
records of the various banking departments. The Comptroller of the
Currency has given his full cooperation to the Committee and has
expressed his willingness to furnish the information regarding
rational banks.
The sobedule as finally adoptea has been printed and a few
copies are enclosed herewith. A supply is belng forwarded to you
under separate cover. /he Committee would like you to present these
schedules to the bA4king departments of those states whose capitals
are loc-,ted within your district with the request that they fill
out a schedule for each bank which suspended between January 1, 1921.
and June 33, 1930. It is hoped that the infteination will be sal
as fully and as carefully as possible ape net in a perfu:
The importance of the subject and the eelue to eme state
suits of the investigation would seen to warraet special care in the
preparation of the schedules.
As these schedules are oompletee eve "'turned to you, you may
wish to review them end supplement them with eny special information
which you may have. Your views as to the causes of the failures in
your district would be especially valuable to the Committee.
Very truly yours,
J. H. eiddle,
Secretary, Committee on Branch,
Group and Chain Banking.
x4-ans.
?N,
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 18, 1930.
Mr. inn= W. aozton,
Federal Reserve Agent,
Federal Reserve Bane of Richmond,
Richmond, Iirginia.
Dear Mr. Boxton:
The Committee on Branch, Group and Chain Banking has prepared a schedule for collecting information regarding the operetion of group banking systems and would like to have it submitted to the more important groups of the country.
It is the desire of the Committee to secure as much information as possible as to the actual operations of group banking
systems and such information as IL available regareing their
merits as compared with other Penns of banking organizations.
In the collection of this information the cooperation of the
controlling agencies of the groups is solicited. This is
purely a reeuest, however, and in no sense a requirement. The
purpose of the schedule is to indicate the specific information
which is desired and to insure the collection of comparable data
in some systematic form from the various institutions.
In view of the universal interest in this subject and the
importance given to the development of group banking systems,
those responsible for their operations will doubtless welcome
the opportunity to state their views and to give the Committee
the benefit of their experience.
Following its usual procedure the Committee would like
you to present the schedule to the group systems in your
district. The method of submission is a matter of your own
discretion. In most cases it may be sufficient to send the
schedule by mail, but in some oases better results might be
seourea by a personal visit from some representative of the
Federal eserve Bank to the head of the group system. When
thee schedules are completed and returned to you, perhaps
you may wish to liok them over and supplement them with aey
special information or views which you may have.
Mr. William 17. Hoxton #2
July 18, 1930.
A number of copies of the schedule are enclosed, and if
additional copies are desired they can be readily supplied.
I suggest it be submitted to the institution in your district
listed below or to any others which you think would be productive of results.
Socarnat Bank Corporation, Charleston, S. C.
Very truly yours,
J. H. Riddle,
Secretary, Committee on Branch,
Group and Chain Banking.
.110•
t'/-7
,
X
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
et
FEDERAL RESERVE BANK
OF RICHMOND
July 15, 1930
Mr. J. H. Riddle, Secretary
Branch, Group and Chain Banking
Federal Reserve Board
Washington, D.C.
liear Mr. Riddle:
I acknowledge receipt of yours of July 14, with
enclosures.
I am sending out the forms you suggest, accompanying as persuasive a letter as I can write. My letters f7q* transmiAtal will be personally addressed to the president of the
several branch systems, and I am hoping to ueet with a jatisfactory response.
Very truly yours
W. W. Hoxton
Federal Reserve Agent.
July 14, 1930.
Mr. 'Alliam W. Hinton,
Federal reserve Agent,
Federal Reserve Bank of Achmond,
Richmond, 7irginitt.
Dear Mr. riozton:
n6 has
The Otrimitteel on Branco, Ciroup ana Jaain i*uniti
ing
regrd
u
matio
orepared a Fchodule for aolleeting Intor
of
city
tor
the operhtion of in..itcOrs locttni
to
tted
auhmi
it
have
likr to
the head off!co
ri.
the more imoor:tant branch bun'..in VbtOMV of the aount
luoh
is the desIrc of the ..;ommittee to z(!cace
to the aoLutl operations of
informntio-, ns possible
-s Is
brane banl.ing systm; anq
compared with
e.s
ns
tutio
ineti
such
of
s
merit
reo:P.rd!nr!
Jtion of
otr forms of 0, nking organizations. 1 Lie coilu'
operatiug
this Intnrmation the cooperation of Lile
,t, lowever,
roque
a
uvely
3
,r
is
branches is solicitou. 211t*
the sohedale
of
ze
ouroo.
The
and in no :muse u reouii•omont.
desired tad
le
n
woich
aatii
is to nclilate tee tyoe of infol
systemsome
in
data
to inEure thn collection of comparu.ble
atic form from the vnrious institutAxas.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
subject and
In view of the univerLal Intere.A In this
i 'winking
ur%nci
of
the importance given to the ,ierelopil;:rit
doubt•0:111
Alum;
systems, those responsible for toeir °perto
RYA
7104E.
le&s 7:elan-no the opportunit:i to L;tato tbeir
.
give the Committee the benofit J: tie Ir experience
like
Following its usual piveedure Lae Committee would
your
h hertems in
7;011 to nrerent the schedule to the brnno
matter :4' your
a
is
tision
suLAmi
district. r2ne method of
be
sufficient to
way
it
oee
onm iiscretion. In Lnost
better results
cases
some
in
but
send the schedule by °Jail,
representaSWOO
from
visit
might be secured by a personal
the branch
Of
head
tive of the Federal Reserve Bank to tne
system.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
4oirton 42
July 14, 1930.
A number of copies of the schedule are enclosed, r,nol if
additional conies are desired they can be rot:Lilly supplied.
I suggest it be submitted to the following institutions in
your district or to any other selected iiet .vhich you think
would be productive of better results.
Fastern Shore 7rust Co., Camtridge, liaryltxd.
Central Trust Go. of Yd., rrederick, Unryl,nd.
Forth Carolina ,isaak & P. Co., Greensboro, r. C.
bank of ;is/stern Osrolina, Aiken, South Csrolina
Scut cerolina :- n- Rank, Pavy Yard, ‘. C.
?eoplet:: ;.:Aate gk. of
C., Collmbia, S. C.
iachoTia Ranic and Trust Co., °Allston Calm. r. C.
Pore Trust Company, Aberdeen, Barth Carolina.
Sranch 3un -King•& Trust Co., Wilson, larth aarolina.
'O'
t
17,P y
rr
Cer.irc?t.:.27, C:J...tn'tte on Pm:Wt.
1m-- —1. 711-Ar
A
FEDERAL RESERVE BANK
OF RICHMOND
July 10, 1930
Mr. J. H. Riddle , Secretary
Committee on Branch, Group & Chain Banking
Federal Reserve Board,
Washington, D. C.
My dear Mr. Riddle:
I have yours of yesterday. I did not reply to your
communication of June 12, because I had no constructive suggestions to
make regarding the schedule on Branch Banking systems which accompanied
I know that information can only be secured through askyour letter.
ing for it and yet,I regret the necessity because of the increasing
irritation shown by our member banks over statistical information requested by the Reserve 4etem, particularly during the vacation period
when most banks are short handed.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very truly yours
W. W. Hoxton
Chairman & Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 10, 1970.
Mr. William W. Hoxton,
Federal Resor/e Avnt,
Federal Reserve Bank of Richmond,
Richmond, Virginia.
Dear Mr. Horton:
Thank yol fo- your letter of July 5 with the
encl,:sed info2mation furnisaou by thirty-seven
banks to whom yon sdAressed. reohets for int'ormation coonoerning accounts lust or gained through
oonsolidations of business enterprises.
Very truly yours,
J. H. Riddle,
Secretary. L;o.amittee on Branch,
Group and Chain Banking.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
July 9, 100.
mr. William
W. Roxton,
Federal 7ie5er7e Agent,
Federal Reservo Bank of Richmond,
Ricasond, Vi r1nia,
Dear Lir. ioxton:
loaier if you hale naly suggest Ions regarking
the schedule un b...anch baylking systeils Nhi&I I sent
you on June 1.2.\, e are about ready to :sake .1 final
revision of this schedule and distribute it, but on
the cNIuae t4lt you might have in mind some c:JANges
to suggest I hesitate to push it through.
I
In wise the copy which I sent 7on hos been misplaoed, I am eo1os.nR an aL6ition8l one,
Very truly yours,
J, 4, Riddle,
Secretary, Consittee On Branch,
Group and Chain Banking.
EDO.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
June 16, 1930.
Mr. J. G. Fry,
Assistant Federal Reserve Agent,
Federal Reserve Rank of Riohmomd,
Richmond, Virginia.
Dear Ur. Fry:
In accordance with your letter of June 12,
1S:30, I am sending you herewith 15 additional
sets of the form referred to in Dr. Golaenweiserts
letter of June 3, with respect to shifting of bank
connections.
Very trIly y•mrs,
J. H. Riddle,
Secretary, Committee on Branch,
Group and Chain Banking.
FEDERAL RESERVE BANK
OF RICHMOND
June 12, 1930
Dr. E. A. Goldenweiser, Chairman
Committee of Branch, Group & Chain Banking
Federal Reserve Board
Washington, D. C.
Dear Dr. Goldenweiser:
We have made up a list of banks in this
district to which we are sending a request for information
with respect to the shifting of bank connections, as requested
in your letter of the 3rd. I find however, that we will need
aboolt 15 sets of the forms referred to in your letter of June 3.
Please let us have these forms as quickly as possible.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
(
Very truly yours
J. G. Fry
Assistant Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ZunvZ,•
Mr.
:;.ioxton,
::caerare:
7:frier/a1 eserve Elank of
latiLvyrd,
-.ear
The Com.nitt,a on Branca, ';:roup
has decided as a part of its investigntion to 5ullait,
si.:11,2c111:- to :11,3
tho '21d9r:1,1 resorve :)L1,11 s„
more importbut branch banking byatesas in the country
possicolu
4111771o,is f ecuring aa muoi2 &ILA
:ar
ten.
ab to the actual operations of that,s systems.
ttltivo sohedule has boaL priparcd, tvo copies; of mai..;1
are: enclosed, but befors finhlly adopting sna sondiW
1)1daittee :oald
ate shy onentL or suggestions xhich yon rimy oars to
4ake.
;f
tu masce
Tt IL -esimt,1(
vuffioiently comprehensive to sPoure ^.11 esearntial
Juluersome or imt
practiocl, and yolr familiarity .vith the branch ay sIf AI ::011 LO aae,1,1-r1;;L
trt;.
97'st any a .ditions or cir,nges Nhich may be qetirable
anicr to becuro Cala be:A rosult.s.
'ler.; tray yotars,
J. H. Riddle,
eoretary, oast t tee on 3re.no:l.,
:2‘roup curl eiaLin Bauking.
)(1.1o.
/-2 gr-^•.",t,k
4_ 44-2
-61
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
June 9, 1930.
xton,
Mr. William W.
Federal Reserve Agent,
Federal Reserve Rank of Riohmond,
Richmond, 7irginia.
Dear Mr. Rom ton:
I received your letter of June 7 to Dr. Goldenweiser
suggesting the use of symbols .ustead of names in collecting information from member banks on the accounts lost
and gained through consolidation of business enterprises.
In making Up the forms AV considered the use of symbols
instead of names, but in that case it would have been necessary to ask for aditional information, such as, size of
enterprise merged, nature of business, etc. It was felt,
however, that an assurance of confidential treatment would
remove any objection to giving names, and, therefore, that
was adopted as the simpler method. Porno have now gone out
to all of the Federal reserve banks and an attempt to change
them at this time would probably cause much confusion.
I can readily see the force of your suggestion, but I
none the banks will take the promise of confidential treatment at face value and that the reports will be sufficiently
Complete to serve our purpose.
Very truly yours,
J. H. Riddle,
SecretsrY. Committee on Branch,
Group and Chain Braking.
JIM:CH
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK
OF RICHMOND
Dr. 2. A. Goldenweiser
Federal Reserve Board
Washington, D. C.
Dear Dr. Goldenweiser:
I have your letter of June 3, requesting
cooperation with the work of the committee on Branch, Group and
Chain banking and enclosing schedule forms for distribution to
We are going to do our utmost to secure
selected metber banks.
the information you desire, but I cannot refrain from expressing
my personal opinion that the results will be very scanty in this
particular instance, even though a promise of confidential treatment is given.
I feel sure that, in the majority of cases,
the rnember banks will not be willing to give the name of the customer whose account was lost or reduced, due to change of control
or through consolidation or mercer with other enterprises, or the
name of the customer newly acquired in whole or in part.
In the first case the member bank will feel
that there exists a hope of getting back the lost %ccount and in
the second case the naming of the new customer might be very
tasteful to the new customer and be the cause of the bank losing
the account.
If your committee could devise some means
for getting the information you require by the use of symbols instead of names I think the narvest would be more satisfactory.
Very truly yours
W. W. Hoxton
Chairman and Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
June 5, 1930.
Mr. William W. Saxton,
Federal Reserve Agent,
Federal Reserve Bank of Ttichmond,
PAchmond, 7irginia.
Dear Mr. Hoxton:
In the study of branch banking the Committee on Branch,
Groul and Chain Barking thinks it desirable to show soLaething of the development of branches as far book as 1900
in order to give a fairly complete statistical story of
this movement. Apparently no reliable statistics on branoh
banking have been compiled for years prior to 1919 or 192'),
ana it is proposed, therefore, to ask the various state banking departments and the Comptroller of the Currency for certain data for selected years during that earlier period.
Accordingly a simple schedule has been prepared asking merely for the number of branches, loans and investments and
total resources of each bank Welch operated one or more
.branches in any of those years. There were probnbly not
more than Vff0 or tares hundred such banks in the whole
country and the compilation, in so far as the data is
available, will not be a burdensome one.
A copy of this schedlle is enclosed and I su7gest that
you request the appropriate state banking departments to
supply this information for the states or parts of states
which are included within your district. A separate schedule
is to be made out fo each bank operating under state law
whioh had branches in any of the years mentioned. The data
for national banks 411 be eapelied by the Comptroller of
the Currency.
The secretary of the Committee will forward to you in
a few (lays a supply of these schedules for use in your
district.
Very truly yours,
)
€Eno.
-4--ti
itztA.,
Chairman, Comaittee on Branch,
Group and Chain Banking.
.i
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
June 5, l.:O.
Hoxton,
Mr. William
Federal Reserve Agent,
Federal leserve Sank of Richmond,
'Richmond, Virginia.
Dear Mr. Hoxton:
As you doubtless know the Committee on Branch, group
and Chain Banking has been preparing ‘turing recent 17eks
n program for its investigation, anu various tables,
schedules and fonns for compiling data are in course of
preparation. .ome of these have already been submitted
to you either for suggestions as to form or for the actual
collection of data, and others will follow shortly.
am leaving 7:ashington tomorrow gnd will be a-Ay about
spending most of thNt time in Europe. In my
.:ontels,
three
secretary
of the Committee, Mr. Riddle, will
absence the
keen in touch with you and will submit to you other schedules
an; forms aS they are worked into final shIpe. I, of course,
have gone over the gene 'al scope of the study with the secretary anki some other members of the Committee and it merely
remains to work out the final details of the propos:As.
Mese schedules and folms will be lx;ssed upon by other members of the Committee, In my absence, and in special oases
by other members of the System before they are finally
adopted nnd submitted for the collection of data in your
district. You may be assured, therefore, that they have
received oarefal attention.
Very truly yours,
Chairman, Committee on Branch,
Croup and Chain Banking.
;lune 3. 19'03.
FoTtor,
Nr. 711liam
Federul Reserve 'rent,.
Federal eserve :7 kaiak of Riolsnorgi,
Piohmond.
'r
Mr. RoxtOn:
In° of the functions of the Ocessittee on 3renc:I. ;roil!) and
Chain Banking is to determine, if noss5ble, the rrincipal causes
for the present tendencies in 'oqnking.
it is believPd that ohangee
which hayo hoer poin;r on in the orc:Tni:•;ttion and structore of ir?Austria:1 nnet corimeroial enternri see throuflhout the 000ntry have
cor.nect:ons En -1 haye been
f b•
.'i in a
result,
r e beer
SE 2
five :cafr:,
other onterpri s s
03 so rbrd.
fac-
in ne-lrly ell co.,.ntuni tier tnere have ,•lotibt-
tor in the ril-vition.
y.he
A
th I ccr..1 b.mking connections
been o:linitrarsatrd with or
,le other
heal.,uartn rs in so,
ctkir, ustrilly t•o:ne .Letropo i tan ilstriot, with the reLult that
tir7,r111317,- a1 banking co h-loti ons hay, 1 1 kewi se benn t ransferred
HIc 1: rrer o
nnks.
thr lon`l
ist t
Tr.3t
!IARVP
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
In
,11 only no-filial
!ft
Ither irdnetriee hsve T.)assed into the control of
10f.!!.tr.,C!
connections.
s
w th o conserluor.It .shi ft in b%nking
one comninitias this
r,of '•)11:7rot.s
e,ualed the loss.
is probably resulted in
t 0 rrIn bflikS, in1e
ft prop rs tfr :)n may
In still oth"r cossnunitios, especially the
ints
i.,;t I
1_7
Ir. 7, .
11."•ttn-./l1r
ne,
10St c""
1 nr:
'10 r
r co
instRnees
t
s 11 11
Initistrit.11 or trs(ie co.:nbinrt'.ons h- ve rrYs:lt
the lot=e of Lus,:nett,1-:to tle barks of ta%t
rn
t
07.:0
while to3ti1yinz 7 recent' before the !low'
Currency react such a
of
•J
reE Iltersi in the loss of accounts to his groxr) of btnks..
Per?.-tans yol ow: Lecare such list 5 from the :no.nber ")r,n7.tc in
certnin selocted citiO's or cotenunities of your ciistrict. 1.e.,
ef in1.-tetr1 ,11
^.oTurierciaI Interprises walo:z through
either change if control or t .rough consolidJion or merger with
other enterpri,n8 ha.
,e C:-.Insforrz?d all or a TNi,rt .)f tt2sir busir.oss a-ay from Vv. b.inks .vith which they htve beer. accr.istoined to
bls nese to h:nks in other cities.
it
Cie acon,lit h a been transfrr.-
The na.ne of the city to
shoul'j like-rise be Tiler.
In rinkinP: the reports the bz,nks .night also note Lilo accounts which
hnve been gained by the s; die -,rocets.
It is saggested that you
renuest this infort.%tion from the member banks in tome twelve or
fifteen towns or cities in your distri.2t r.ing in si z
- e from the
very small towns to the tnrgcr cities.
It :it'll, of .lour5e, be
tr. 6tej confidentially. ;•.ttached is a auc, stc..1 E1114?1,Ar.- for collecting the infortaation reouested.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Mr.
June 3, 1930.
Boxton #3
Another factor Tnich affects the banking situvtion in many
communities is tie change which has occurred in methods of distribution, especially the chain store, the chain mstaurant bad
the chain service st tion.
Perhaps the btaikers from wham you
reuest the above information would indicate roughly the extent
tc which taey have been affecIted by this end similar developments.
Very truly yours,
•'hairman, Committee on Bra-on,
group and Chain Banking.
7eEno.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
,,e2
01:3(
214-
/I
•
June 2, 1930.
Mr. William W. 30Arton,
Yederhl 7.416eria Agent,
Pederal Inslrve Bank of Riehmond,
VirgInia.
Dear Mr. Hoxton:
The Committee on Branch, Group and Chain Banking nas aecided
that its investigations saould include those branch and chain
systems which have failed in recent yenrs, in order to determine
any inherent defects, weaknesses or possibilities of mismanagement
of these systems.
Such a study should cover the history, organiza-
tion, management and policies of each
causes of failure.
ystem aE Nell as tne specific
Statistical data illustrating any special or
unusual tendencies in the operations of these institutions, and the
condition of affairs as revealed in examination reports for two or
three years prior to failure would be useftil material.
.10re specifically the report should
i.ve the name, looation,
c.piti structure and brief oornorate history (date of organization,
mergers, initiation of branch or chain banking, etc.) of tne parent
institution, as well as Vie number of branches operated or banks
controlled.
It should also include a statement of the method nnd
purpose of ac!uiring control over otner Institutions, tyne of banks
taken ovr, degree of control exercised and description of organization and machinery of control. .Other points covered would
include
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Mr. William W.
.ton #2
„al
2, 1930.
condition at time of failure, analysis of loans and investments,
type of paper handled, type of coamunities nnd industrias served,
nature of losses austainea, methoas of croordinatina operations of
system as a whole, methods of auditing the system, and type of
management or controlling interest.
It is apparent that the failures of branch and caain systana
haae occul.rea, as a. rule, in regions where there have else been
numerous failures of inaspeadent unit banks, but at the elane time
there have doubtless been special oorditions or canees for failure
in the particular oases.
Because of your familiarity with conditions in your district
and the knowled7e which you already have of the failed branch or
chain aastems, —e shall appreciate it If you will make tae necessary
investigations in your district.
This division of labor will not
only eapedite the study as a whole but will also Zile the Coamittee
the benefit of your special anowl de and understanding of lodal
conditions.
Iv your district I suggest reports on the following, to which
you may ai_sh to add others because of Boats special importamce which
may attach to taam:
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•a
Bank of 'heran & Chatsfield County, Cheram, E. a., (palled
in 1928 with 5 baanches)
Very truly yours,
Chairman, Committee on Branch,
Group and Chain Banking.
-
• TELEGRAM
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)
RECEIVED AT WASHINGTON, D. C.
64rhu
Richmond apr 24 330p
Governor Young
Washington
Twill 1199. We oonaur in board's suggestion to make commdttee on branch banking
a federal reserve bank committee expenses to be borne by federal reserve banks
pro rata
Seay
335p
O. I. GOV611,11T.NT PRINTING OFFICII
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
2-11901
11011
111111
CHARLOTTE BRANCH
FEDERAL RESERVE BANK OF RICHMOND
CHARY AYTTE,ilki= C.
April 24, 1930.
Federal Reserve board,
Washington, D. C.
Attention: Mr.
C. hoeli, Asst. Secretary.
Dear IX. ;:,oells
;
anks,
I acknowledge, with
receipt of a set of t}0, hearings before the
Committee on banking/and Currency, Which you
so kindly forwarded/on the 23rd.
Very truly yours,
1-11,:
(Zsi
(Cr
—
/111111011‘h,As
"%j̀
.s.
'
\ °3'....•/ CD
0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
(
rj
.'
ov
HUGH LEACH,
kanag in g Director.
I
r---
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Anni 7
_Jr. Leach:
Recei7t is acknowledged of.pywriettvr .of
April 21st and it is noted that you are cisirous of
obtaining a set if the Hearings before the Committee
on Tdanking and ',:larrency. Although our supply of the
dearinrs is United I t.;:i sending you a corrlete set,
rts 1 to 7 incisive, rind will forr:.!rd to you MY
subsequent nugObere 7hen --ub1i shod.
1ery truly yours,
J.
Oc11,
AssictfInt .ecretary.
r. Hugh Leach, Annaging Director,
Cnerlotte .ranch,
.:_aonci,
Wern1 -ef;(1rwe Bahk of .lc
Charlotte, . C.
CHARLOTTE BRANCH
FEDERAL RESERVE BANK OF RICHMOND
CHARLOTTE,N. C.
April '41., 1930.
iederal Reserve Bos.rd,
dash ington, D. C.
Attention; Mr. E.
IcClelland, Asst. Secretary.
Dear Mr. McClelland s
In answer -to my question to our
Head Office as to how I could secure a copy
of "Hearings before the Committee on Banking
Hoxton suggested that you
and Currency,"
might be in a position to send me copies or t o
have them sent to me. If you can do this conveniently I shall greatly appreciate it.
Very truly yours,
HUGH LEAC H,
Managing Director.
hLIVJ
C
.)
LIJ
Ci1
(-)
Cr.
• •", . ^ *, •
Imo
.".7.-•
.',
.
.f..I.C-1',%••••••• t
:
".'-::•
t cj
A:
rs,
14-2-
•
---;fifq110
...
7.-3 A %.
'-',.•......
171-
23 -36D
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
cz)
C":;
i\.,
cv
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
a' lattoll.of 11,91-11
a,
713,4 teru aro enclosed %orewith copies •.)f Partii
3 and 4 of the 7:eirino before t1-10 ilouse Committee n Bank:mg and Oirreney on Branch. Chain
and JroJp 3inking.
Copies at these two pamphlets Isere
forwarded to you cm the clay they bemuse available for di.'tribution but moist byre beea lost in
the mils.
3ineerely yours5
oClelland„
ssiaantaeoretary
_
_ -.3sory
Poda1Luz'.rre
-7.1eL7d, Va.
(.1-1c osures)
FEDERAL RESERVE BANK
PERSONAL.
OF RICHMOND
April 7, 1930
Mr. E. M. McClelland,
Assistant Secretary
Federal Reserve Board
Washington, D. C.
Dear Mac:
I am much interested in the government publications which
the Board has been sending me containing the hearings before the
Committee oALBanking and Currency.
I have received volume 1,
parts 1, 2, and 5.
Parts 3 and 4 are missing and of course I
should like to have them when available.
Sincerely yours
W. W. Hoxton
Chairmand and Federal Reserve Agent.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
0
0
O
le-----
4
I
1
lb
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL
ESERVE BANK
OF RICHMOND
/
March 21, 1930.
Dear Mr. Noell:
I am writing to thank you for a copy of
Part 2 of Volume 1 of the Hearings before the Committee
on Banking and Currency of the House, on Branch, Chain
and Group Banking.
Ae are very glad to have copies
of these hearings for our_AhrarYVery truly yours,
GJS-CCP
Mr. J. C. Noell, Assistant Secretary,
Federal Reserve Board,
Aashington, D. C.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 20, 1930.
Dear Ur.
/or your information / am enclosing
herewith a over of P:txt 2 of Volum* 1 of the fearing* before the Committee on Makin andCurrency
of the Rouse of Representative* en Rreath, Chain
and Group lAnking, R. R. No. 141.
Very truly yours,
J. C. Noell,
Assistant Secretary.
Mr. George J. Seay, Governor,
Federal Reserve Dank,
Richmond, Virginia.
',nolosure.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
March 20, 1930.
:)e x ;tr. &atom
your information I am enclosing
karsiolik a copy of Part 2 of Volum* 1 of the HoarLits before this Committee on Banking and Currency
1146..
eir UM) louse of Boorosentatisos on -1r,..ncb., Chain
sad Olarlp Balking, H. R. No. 141.
Very truly yours.
J. O. MOs11,
Assistant Soaretary.
Ire William •. Horton, Chairman,
Baserve
Riestannid. Virginia.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
march 10, 1930.
DaAr Mr. Sear
VI:cloned llerswith for your information it
of the bmsrings held on Pebruary 25, 28 and 27, be*
f7;rc, the Committile cm Bemeng sod Oarrsncy of the lb-oss of
*epresantatives, on IWO& Chain, tad Croup Banking.
TOW ti01770111".•
J. C. NO011,
Assistant 3seretary.
Ur. Geo. J. Sony, Governor,
Pederel laser's Bank,
1iChmond, Targinia.
'Tnolasuret
"!prth /0, 1930.
Dear Ur. Boxtons
'Inclosed herewith for your information is
a copy of the hearings held on Pibruary 25, 26 and 27, hefore the Omemittse on Banking and Ourrengy of the
use of
Representatives, on Branch, Main and Group Banking.
Very truly yours,
J. C. 'noel',
Assis4ant 74erstary.
Ur. W. W. 802ApS4 Ohaireou.
Fedetai -laser's bake
Ricbsond, Virginia.
IIICa.011Parh:
I
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
@FedFRASER