Full text of Records of the Federal Reserve System, Record Group 82 : Committee on Branch, Group & Chain Banking: Federal Reserve Bank of San Francisco, Box 1801, Folder 4

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Federal Reserve Bank of St. Louis

12) - San Francisco - Committee on
Branch Group & Chain Banking
FRBank San Francisco

421.11

TRANSFEP

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Federal Reserve Bank of St. Louis

••

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FEDERAL RESERVE BANK OF SAN FRAN CI S CO

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August 12, 1933

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TT. E. A. Goldenweiser,
Chairman, Committee on Branch, Group
and Chain Banking,

Der Dr. Goldenweiser:

Fieceint i

ckno,4eds7ed of ;,,our

••

_
/././.

1 3nnil_ en

August 7, 1933

Governor J. tf. Calkins
Morel Reserve Bank
henoisco, Californin.
17 dear Governor 0,_11Uns:
I take pleasure in seuaine Jou MLAST separate COM" oopise
of the rerorts of the Pederal Ilsoerve Committee on Brommh. Group.
and Chain Banda& Which the :iovernore expressed a desire to see
with the view te passin/ on tho -aloe-ability of printing them.
2ho vrrioas reports, ShIdh sre being trammitted, include:
(1) amach leikips in the 'United states; (2).2samek•'
la
Calleorsia; (3)'moll Blnldng in Sagami; (4) Brom*
Ormede; (5) Banking Groupe and abeam 0) aulnres in the
Melber end Gime of Ban:,:q in the nhited States, 1834-1931; (7)
the United States. 18924931; (8) 225 kg*
Dunk Seeremeteme
Sappeestemos Case notaries tram leaminorso Reports; (9) lehle.
log Profits. 1890-1931; (10) Dual Demited Wefts in the Venal
nukes I me also setiliag you a revised, Salmillry Of the Averts
I shall b• glad it yea
gibarda la
mak so Ger =WAY
ern ernoenlently rote= the Gap? of the earlier 36mivaridialli
lee distributed at ths Governors' Gonfarenoe last meemma.

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Federal Reserve Bank of St. Louis

Very tray yours.

3. A4 Goldenrods.,
Chairmen, Comeittoo se ftwath,
amp. sad Obata

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Federal Reserve Bank of St. Louis

October 2, 1932

11r. Oliver P. Wheeler
Assistant Federal Reserve Agent
Federal Reserve Bank
San Francisco, California
Dear Mr. Wheeler:
Thank you very much for your letter of October 19 and
the checked copy of "Branch Banking in California" which we received under separate cover. We an!,reciate your help in this
connection because much of the ulaterial Was of the type which
we could not check here. At the same time I fc,e1 much more comfortable about its accuracy as well as tone since you have gone
over it with so much care.
',-J3 are just now beginning to make the revisions in our
various reports on the basis of su-7gestions by the :aembers of the
Committee. As soon as they reach their final form, I shell be
glad to see that you get co-Aes of all of them.
Very truly yours,

J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
,
I

FEDERAL RESERVE BANK OF SAN FRAN-CISCO
IsAAc B. NEWTON
CHAiRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

October 4, 1932

Dear Sir:
This is merely a progress report on the checking of the
revised draft of the Report on Branch Banking in California.
Although we have found few errors and as yet they have not been
serious, our work has not been completed.
The complete check of
factual material, except that contained in chapter 10, which you
requested will yet require some little time.
We are, however,
giving as much energy as possible to the task and hope to finish
it soon.
Yours very truly,

Assistant Federal Reserve Agent.

Mr. J. H. Riddle,
Secretary, Committee on Branch, Group,
and Chain Banking,
Federal Reserve Board,
Washington, D.C.

•

FEDERAL RESERVE BANK OF SAN FRA_NCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

September 26, 1932

Attention: Dr. E. A. Goldenweiser, Chairman, Committee
on Branch, Group, and Chain Banking.
Dear Sirs:
Referring to my letter of September 10 I am now enclosing
compilation of information regarding changes of bank legislation
in the State of Caliiornia.

This completes the study in this

district and I trust that you will find that the questionnaires
have been satisfactorily answered.

Assis

Federal Reserve Board,
Washington,
D. C.

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Federal Reserve Bank of St. Louis

eral Res

e Agent.

•
•

•
STATE BANKING DEPARTMENT
of Ualifornia

September 23, 1932

Mr. S. G. Sargent
Assft. Federal Reserve Agent,
Federal Reserve Bank of S.F.,
San Francisco, California.
Dear Mr. Sargent:
We are submitting, under separate cover, the filled in questionnaire
on the important changes in the state laws relating to banks and trust companies,
the subject of your request of July 13, 1932.
request of this nature is difficult of fulfillment for the reason
that some of the provisions of the Bank Act of California have been rewritten
on numerous occasions and it is not always possible to set forth clearly just
what the fundamental change has been; nor is it possible, as assumed ap)arently
in the questionnaire, to continually repeat the former provision with its subsequent amendments prior to giving the new amendment or provision. We particularly call your attention to our summary of section 61 which gives the general
limitations imposed upon savings banks' investments. We have given in this case
a summary of the general provisions of the Act as it was originally drawn, and
in the column for new provisions as set forth as of the proper dates the important changes or alterations which have occured since 1915. We have made no
attempt to repeat the former provision as of the date of the amendment under
discussion.
You may be assured that we shall be glad to make any further explanation should the inclosed summary prove inadequate.
We regret that considerable delay has occured in returning this
questionnarie to you.

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Federal Reserve Bank of St. Louis

Yours very truly,
Edward Rainey
Superintendent of Banks,
By

Joseph A. Crumb
Supervisor of Research and Statistics.

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Federal Reserve Bank of St. Louis

September 12, 1932

Mr. Isaac B. Newton
Federal Reserve Agent
Federal Reserve Bank
San Francisco, California
Dear Llr. Newton:
On July 9th we sent you a cuestiOnnaire regarding the
State benking laws, and renuested that you secure for
in
changes
possible,
this information for the States in your district.
Us, if
We realize tivt it is not easy to secure information of this nature from the overworked State banking departments. However, we
are now trying to finish this report and should appreciate it
very much if you could expedite the preparation of this material
for those States which have not yet supplied it.
Very truly yours,

E. A. Goldenweiser
Chairman, Committee on Branch,
Group and Chain Banking.

•
•

•

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAiRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

September 10, 1932

Attention:

Dr. E. A Goldenweiser, Chairman,
Committee on Branch, Group, and
Chain Banking.

Dear Sirs:
In response to the Board's letter of July 9, we have
completed compilation of information regarding changes in State
legislation in all states in this District except California.
There are enclosed herewith mimeographed forms covering important changes from

1914

to 1932 in state laws relating to banks

and trust companies for the following states:
Nevada, Oregon, Utah, and Wasnington.

Arizona, Idkho,

The California State

Banking Department is working on their report and expects to
have it ready in a week or ten days.

It will be forwarded

promptly as soon as received by us.
Yours

S.
Assistant Fed
Federal Reserve Board,
Washington,
D. C.

gy txu4?

GENT
Reserve

:ent.

FEDERAL RESERVE BA_N-K OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD

September 1, 1932

AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

Attention: Mr. J. H. Riddle, Secretary,
Committee on Branch, Group and Chain Banking.
Dear Sirs:
I have your letter of August 27 to Mr. aeeler,
with which you enclosed two copies of a revised draft
of the study of "Branch Banking in California".

Mr.

Wheeler is away on vacation and as soon as he returns
I shall bring your letter and the reports to his attention.
Yours very truly,

Federal Reserve Agent.

Federal Reserve Board,
Washington,
D. C.

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Federal Reserve Bank of St. Louis

August 27, 1932

Mr. Oliver P. Wheeler
Assistant Federal Reserve ,:..gent
Federal Reserve Bunk
Ban Francisco, California
Dear :,1r. Wheeler:
-7ie received your memorandum of July 26th on the study
of "Branch Banking in California." All your suggestions have
been incorporated in a revised dreft of the eeport, two copies
of which we are sending you herewith in mimeographed form.
Your memorandum states that a further check is being
made, and we shall appreciate it if you will be good enough to
have the verifications or corrections indicated on one of the
enclosed mimeographed copies and then return it to us. As indicated in Dr. Goldenweiser's letter of July 15th to Mr. Newton, we are :aaking no attempt to duplicate the checking of
factual material here, but are counting on your department to
make a complete check of the report, in particular of all tables
and other statistical material, except that contained in Chapter X for which we have the documents (the schedules of earnings andvxpenaes for the three large branch Operating banks
and the profit and loss accounts and balance sheets for thirtyone branches). However, we should likn very much to have your
opinion as to the value of this chapter, nethods used, results
obtained, etc.
Very truly yours,

J. H. Riddle
"JecretarY. Committee on Dranoh.
Group and Chain Banking.

Eno.

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Federal Reserve Bank of St. Louis

July 18, 1932

Mr. 0. G. Jargent
Assiitant Federal Reserve Agent
Aderal Reserve Bank
4:.•ancisco, California
Dear

Sargent:
In accordance with your letter of July 13th we

are sending you herewith eight additional copies of the
mimeographed form for compilig changes in State bank
laws.
Very traly yours,

J. H. Riddle
Secretary, Committee on 3ranoh,
Group and Chain Banking.

Eno.

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD

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AND FEDERAL RESERVE AGENT

Attention:

July 13, 1932

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Dr. E. A. Goldenweiser, Chairman,
Committee on Branch, Group, and Chain
Banking.

Dear Sirs:
Receipt is acknowledged of your letter of July 9 enclosing
mimeographed forms upon which to obtain a summary of important
changes in state legislation regarding banks and trust companies
since the inauguration of the Federal Reserve System.

We are

requesting the various state banking departments to furnish this
information and will forward same at the earliest possible date.
As we received only enough forms to furnish the state banking
departments, we shall appreciate your sending us some additional
forms for our own files.
Your 7very,
-truly,

S . SARGEN j
Assistant F eral Reserve Agent.

Federal Reserve Board,
Washington,
D. C.

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Federal Reserve Bank of St. Louis

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FEDERAL RESERVE BANK OF SAN FRANCISCO

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ISAAC B. NEWTON

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CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AQLNT

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Federal Reserve Bank of St. Louis

July 18, 1932

Dear Doctor Goldenweiser:
We received a copy of the report on branch banking in
California, prepared by Mr. Greer, this morning with your letter
of July 15.
As you request, we shall check this report as
rapidly as possible and mail you any suggestions we may have not
later than Tuesday, July 26.
Yours very truly,
ISAAC B. NEWTON
Chairman of the Board and
Federal Reserve Agent
,
.

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//1-il
ER P. WHEELER
0
Assistant Federal Reserve Agent.
BY

Doctor E. A. Goldenweiser,
Chairman, Committee on Branch, Group,
and Chain Banking,
Federal Reserve Board,
Washington, D. C.

July 15, 1932

Mr. Isaac B. Ilewton
Pederal Reserve Agent
Federal Reserve Bank
irancisoo, California
Dear Mr. Newton:
I am sending you herewith a copy of a report on branch
Mr. Greer of the Committee's
banking in California prepared
staff. In view of the importance as well as the delicacy of the
subject handled, we feel that we should n:t make any use of the
report until you and your staff have had an opportunity to exshould appreciate it, therefore, if you
anine it critically,
will have your Division of Analy:As and Research make a oareful
check of the whole report as to both accuracy and content. Alice
the report deals almost entirely with the looel situation there,
and much of the material has been collected th:ough your bank,
we would find it rather difficult here to ,7ive it an adequate
check.
As you know, we are now attempting to rush these reports throu4h as rapidly as possible, and therefore we shall
appreciate it if you will send us your suggestions as soon as
you can conveniently do so. I am also sending a copy to Mr.
Clerk for his suggestions.
Very truly yours,

E. A. Goldeaweiser
Chairman, Coiamittee on Branoh,
Group and Chain Banking.

Enc.

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Federal Reserve Bank of St. Louis

July 12, 1932

Oliver P. Wheeler,
Assistant Federal Reserve 47ent
Federal Reserve Bank
San Francisco, California
Dear 1.1r. Wheeler:
Hvving received no answer to my two letters of Oune 15th
and June 18th asking for certain data from the earnings and expense
,rinz7 if by any
schedules of national banks in California, I am wond.
chance either my letters or your reply might have bPen lost or mislaid in transmission. All you therefore be so kind as to let me
know-:4qy air mail--whether you did in fact receive the letters or
not. •
4 first draft of the California story is practically
for the chapter on earnings and expenses). I
(except
complete
Riddle
intends to send you a copy for whatever critibelieve :ill*.
°isms and suggeLtions you may have time to maks.
;-:ashington is hot, politically as well as climhtioally.
Othervise, there's not much that is new,

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Federal Reserve Bank of St. Louis

7;1th kindest regards and best .71shes,
bincerely yours,

Gay E. 'xreer

July 9, 1932

Mr. Isaac B. Newton
Federal Reserve Agent
Federal Reserve Bank
San Francisoo, California
Dear Mr. Newton:
The Federal Reserve Coaaittee on Branch, Group ant Chain
Banking is very anxious to obtain a summary of the important changes
in State legislation regarding banks and trust companies since the
inauguration of the Feleral Reserve System. Tele is for use in a
etudy of the effects upon our banking structure of competition between various classes of banking institutions.
For soma pnaaes of bankina legislation (e.g., reserve requirements and the operation of branches) our information is already
fairly complete. /n other respects, however, it is inadequate, and
woenauld like to ask your assistance in filling in these deficiencies.
The enclosed mimeographed forms outline siecifidally the
information desired. Waukal you be able to obtain for us this information from the banking departments of the States whose capitals lie
within your district, or from your legal department? It is not necessary that we have all the detaila of every law bearing upon the points
enumerated. We want to know what changes have occurred since 1914
which have a significant bearing upon the operations of banking institutions and upon the types of assets held by ban's.
Very truly yours,

F. A. Goldenaeieer
Ch ir;an, Coansittee on Branch,
Gr.ra,-. ant C‘r.ain Banaing.
no.

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Federal Reserve Bank of St. Louis

June 18, 1932

Oliver 7.). ;-theeler,
Assistant Pederal Reserve :gent
Federal ;Zeerie Bark
.anr‘rancisco,
forni a
Dear 1:1r„
T.eferring

o nrj letter of 1une lb, I wonder if you

.soulc be ,eot.1 enough to he included in the su:dmari:;ed information I asked for, the following additional Italia, to be inserted at the top of the tabulet ion for each year:
Number of banks
Numberof branches of tiiese banks on -tzne 30
incerelz,7 yours,

Guy E. Greer

June 15, 1932

?Zr. Oliver 2. .heeler
Assistant iederal Reaerve agent
Federal.aeserve Bank
aan arancisco, California
Dear ar. •,heeler:
I ala returning to you unaer separate cover the schadules of
"Analysis of Bank Earnings" of the national banks of California which
you were good enough to lend ao (all except those for the Bank of Italy
N. T. & a. A. and the aecurity-airst National, which I snail return later). All relevant figures have been abstracted from them and totaled,
for useln comparison with the c,rresponding figures from the tairtyone branches for which you were good enough to obtain ,rofit and loss
accounts and balance sheets.
In the coarse of my study of earnings and exaenses, I have
decided to make a rather elaborate coapalson between the ratios for
the three principal inter-caaaunity branch operatina banks, on the one
hand, ana the natioaal ornke of California (exclusive of the 3ank of
America N. T. & 6. A. and the aecurity-airst Vational) on the other,
using aggregates for all items used to calculate tne ratios. This
will constitute, I hope, a rough aeasure of the relative operating
costs and profits per unit of business done of two kinds of banking,
namely, wiue scale inter-community branch banking and unit banking
in combination with the degree of branch banking permitted to national banks in the cities by the acioadden act.
To complete the oompariaon, I need for each of the five
years 1926-1930 a set of totals of items a to V on the 'Analysis of
Bank ';arrings" schedules fot all the national banks of California
for which you L1 yesuch schedules (inollaing thodie I am now returning to you), except for the two large national inter-community branch
operating banks. I shall greatly appreciate it if you will have some
one in your department maks the necessary additions and send we the
results as early as convenient, in the fora indicated on the acooapanying table. In a rouah calculation with one of the comptometer
operators here, we estimate that it will take only about two days
to do the job, ',catch involves turning over from 125 to 150 schedules

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Federal Reserve Bank of St. Louis

1.r. Oliver P. Wheeler,

June 15, 1932

fourteen ti:Aes for each of the five years and taking off and totaling
each of the items for all the banks. (This is a complinated business
to explain, but I believe that with the aid of the eno17)sed table it
will be clear. Also,
hope I'm not icoosing too much on your good
nature in asking you to lvive the additions made.) bince we are using
aggregates, lumping big and little banks together, it will not particularly matter whether the &ame number of banks is Involved for each
year, so long as there are incluoPd, in the totals, figures for both
the earnings and expense items and the corresponding bvlance sheet
items of e%ch bank.
4ith most cordial greetins to yoarself and your collea.Nes,
I remain

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Federal Reserve Bank of St. Louis

6incerely yours,

cAky

reer.

Afzrr)cates.of larnings and axpenses and Selected Items from
Condition Statements of National Banks in California

1926

1927

1928

1929
(L'omunts in dollars)

'Earnings and _bclenses
A. Int. & disc. on loans and
investments
B. Other earnings
C. Total earnings
D. Salaries and wages
E. Interest paid on gross de.
posits
Fe Other expenses
G. Net earnings before lem;es
H. Net losses
I. Total expenses and losses
(1)+E+F+H)
w • Net additions to profits
Condition - Gures
K.

Loans & Lnvestments
Capital, surplus, or)fits &
I.
reserves (except reserves
for expenses, etc.)
N. Time deposits (inet1, 1214T pos
al savinf:A
N. Gross deposits (ban:., ,J)lan3
time, and U.

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Federal Reserve Bank of St. Louis

1(.'3U

Totals of
5 -Jears

June 11, 1932

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Federal Reserve Bank of St. Louis

:Ir. Isaac B. Yerton
Pederal loserve :.gent
?edam,. Reserve Bank
San ',Prancisco, Calif.
Dear Lr. Newton:
"hrou4h an error the Bonk of Italy, which in 1929 was
lonverted from a :;tate to a national bank, tnking the aa.le. of
_oink of Italy Notional Trust and Savings ;tssociation (later
-.hanged to Bank of ,merico rational Trust and Savings

Eisocia-

tion) was omitted from the list accompanying our letter of June 4.
Vie should be glad to receive information as to the moives for this chnnge of civirter, along with that for the banks
nnmed in our former letter,
Very truly yours,

A. Goldenweiser
Chairman, Committre on Branch,
Group and Chain Banking.

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Federal Reserve Bank of St. Louis

June 10, 1932

Isaac B. Newton
Federal r.ie serve Agent
Federal
6erve sank
jan 2ranci sco, Calif.
Dear Mr. :Iewtons
The Coanittee on Branca, Group and Chain Banking
wishes to iow the basis of the classifica*.ion, in the reports of the aaaptroller of the Currency, of •;.tate banking
inatitutions into ;itate (oolitaercial) banks on
one hand
.:)7.-fice of
and 1 .,nn and trust 00iapan son on the other.
tile jaantroller informs us that this classifio.ion is ra!icie
by the mspective banking departments .when Ulu fic:ures
reported to him.
Could .you, therefore, find out from the b3nlci11,3
clepart.lents a tho foll.)wing states,
basis for the distinction between commercial banks anci loan and, trust companies?
Utah
Nevada
Washington
Oregon
Col ifornia
Very truly yours,

1.2. A. Goldenweiser
Chairman, Co:allittee on Branch,
Group and Chain Banking.

•

FEDERAL RESERVE BANK OF SAN FRANCISCO

,
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tpi• ,!) 4(*.•
sh

ISAAC B. NEWTON
CHAIRMAN OF THE BOARD

1,514%
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AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

June 8, 1932

Dear Doctor Goldenweiser:
Receipt is acknowledged of your letter of June 4 regarding
changes among banking institutions in this District from national
charters to state charters and vice versa through conversions and
consolidations.

The information requested will be secured and

forwarded at an early date.
Yours veb3r trill?,

GENT
S. G.
Assistant Fed -r: RWeserve

Doctor E. A. Goldenweiser,
Chairman, Committee on Branch, Group,
and Chain Banking,
Federal Reserve Board,
Washington, D.C.

gent.
7

aune 4, 1932

Mr, Isaac 3. Newton
Federal ieserve ;
.gent
.
Federal 3eserve 3ank
6an Francisco, California
Dear

. Newton:

In recent years there have been many caanges among benking
institutions from national charter to .Jtate charter and vice versa.
Theee change& have occurred through both conversions and coneolidations. The Committeeon 3rench, Grcup and Chain Banking, in connection with its study of the dual banking system, is deeiroue of obtaining accurate information as to the motives for these changes.
arn en0losine7 herewith a selected list of thee° convereions and consolidations in your district, and should appreciate it
if you will address an inquiry to each inetitution asking fur a statement of the reasons or considerations which prompted them to convert
from one charter to the other, or, in the case of consolidations, why
ore charter -!as choE,:en in preference to the other for the continuing
institItion. If we can secure from these institutions. frank and adequate replies to thie euestion, it will doubtless shed much light on
the competitive factors between the two banking systems. :111.10 we
exSO t to tabulate and ecoment on the general results of the raplies
received, the answers of the individual balks will be held in strictest confidence and, of course, no banks will be mretioned in our renort, or designated in such manner . s to be recognized,
e are submitting this euestion to nearly one hundred banks
in the various diatricts in order to secure a fair samnle for the
country es a *1010.
Iery truly yours,

E.
Goldenweiser
Chairman, Committee on Branch,
'7,roue and Chain Banking.
Eno.

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Federal Reserve Bank of St. Louis

District I;o• 12

Conversions from 3tate to rational Charters

Conversions from National to 3tate nartors

Consolidatims where National Charter mu; Adcptod
Los Angeles, Cal. 1923
Citizens Trust and 3av1ncs Bank (49)*
Cit /Z0118 National Bank (43)

)
) Javinc:s

Los Anceles, Cal.
First National Bank (75)
Pacific ..,outHwest Trust al-al javircs Bank (179)
Los Angelos, Cal. 1926
Hellman Comsercial Trust 1)21d 3avings Bank (65)
Merchants National Bank (40)

)
)

Trust

Los ....ak•;o13s
Lational
Trust a...0 ,JaviziLa Bank

More" LL:•its iationa1 Trust
an 3av14.8 Dank
(Later - Bank of America
National Trust and.:,av
Association)

Consolidations where 3tato Charter was Adopted
===
,an Francisco, Cal. 1923
. ,iorican National Bank (2U)
jec-....rity Bank and ?rust Co. (6)

) American Bank
) (Later - Americ.aa Trust Co.)

all 111 rr.L.:M IWO•

Cal. l'J23
Jells ,:'argo-Nevada National Bank
Union Trust Co. (33)

* Numbers in parentheses imacate a
in millions of dollars.

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Federal Reserve Bank of St. Louis

Jells Fargo T3a,L.
Trust Co.

Union

rozirnate loans and LTvestnents

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Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK OF SAN FRANCISCO

May 28, 1952

Mr. J. H. Riddle,
Secretary, Committee on Branch, Group and
Chain Banking,
Federal Reserve Board,
ffashington, D. C.

Dear Mr. Riddle:

The ori4na1 large maps, shoving
location of the offices of the principal branch
operating banks of California, have been forwarded
to you for reproduction, in compliance with the
request contained in Mr. Greer's letter of
May 23d.

Yours very truly,

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Federal Reserve Bank of St. Louis

May 23, 1932

Ira Clerk, ,:s(1.
Deputy Governor
Federal Reserve Bank
ari Francisco, California
Dear Mr. C'ark:
The :naps showing location of the offices of the prinoipal branch operatin banxs of California have been turned over
to me by Mr. Riddle. They are, I think, exactly what we need.
It is just possible, no.mver, thAt fur the process of raproduotion and printing we may need the original large maps. Perhaps
you will be good enough to ask tr. Dryden to roll tnem up and
send them along.

I am no at work revising the California story to take
a:mount of your many valuable and interesting criticisms and suggestions. AS soon as the preent draft is finished, I believe
Mr. Riddle has it in mind to send you a copy.
Francisco and
.
My wife and I enjoyed our stay in „;an
vicinity very much indeed, and ':re can never begin to thank you
and yrs, Clerk for all your kindness and nospitality.
Uincerely yoars,

Guy E. Greer

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Federal Reserve Bank of St. Louis

May 23, 1932

Mr. Oliver .•. :.heeler
Assistant Federal 'eserve
Federal Reserve Bank
:An :rancisoo, California
Dear Mr. Vueeler:
I have received your letter of May 17th, enclosing
original copies of interest rate questionnaires. It has turned
out very much as I expected—that is, the information on the examination rw,orts was too vague to mean anything in particular.
I quite ai7rPe that the results do not warrant your making any
further inpuiry.
enjoyed the trip across the continent very much
find
and the Grnrd Ganyon came entirely up to expectations.
the weather in 'ashington just now almost as delightful as in
:.;an Francisco, but alas, we know it will not last.
Our sojourn in your pnrt of the country was extraordinarily pleasurable, and the opportunity to know you and Mrs.
'aheeler constituted no small part of the rsason.
ath kindest regards and best wishes, I remain
Jincerely yours,

Guy E. Greer

•fiELEGRAM

••
/

FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)

Sik<s.:29

142b
RECEIVED AT WASHINGTON, D. C.

0„../ts,(4,44,
45)2< 4Z‘e

Sanfrancisco 9t2am Apl 2
41./6‘1*/c1s,
Goldenweiser
Washn
13etel data on earnings sent by regular mail march twenty ninth
due there today
Newton
105p

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
B. 40T SRN IIMPIT ..131111.

SO.

2-11901

•
Form 14$

••

•
TELEGRAM

FEDERAL RESERVE BOARD
LEASED WIRE SERVICE
2

WAS

9454

a ro

April 2, 1932

5an Praneleco, Perton
Can you send ut today by air mall the data on earnings requested in my letter of March tie170?

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Federal Reserve Bank of St. Louis

IOLDIINWELJER

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. N EWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

March 29, 1932

Dr. E. A. Goldenweiser,
Chairman, Committee on Group,
Chain and Branch Banking,
Federal Reserve Board,
Washington, D. C.
Dear Dr. Goldenweiser:
We are enclosing tabulations showing the aggregate dollar amounts
for items J, K, and N of the analysis of bank earnings schedule, which you
requested in your letter of March 12.
In connection with the 1930 figures for California, you will observe that the amounts in the largest size classification dhow a marked
reduction not only as to net addition to profits but also in gross deposits
and total loans and investments. A large part of these declines may be attributed to the fact that figures for the Bank of Italy, National Trust and
Savings Association were omitted from the 1930 report, inasmuch as that
bank was involved in a merger with the Bank of America of California during the year which affected the comparability of its figures. At the time
the earnings and expenses data were prepared last year, it did not seem
feasible to estimate the various items necessary for computing the required ratios. We did not consider this a serious omission since all the
data were prepared by the individual bank method and the omission of one
institution made very little difference in the final result. When using
dollar aggregates, however, the difference caused by the omission of that
bank from 1930 totals is quite apparent and we are inclined to think that
an adjustment Should be made to take account of it, depending upon the
manner in which you intend to use the figures. We have, therefore, prepared figures which may_be added to the 19p tc2ta1s Shown upon the accompanying sheet under the appropriate classifications, if you see fit to do
so.
We believe that the estimates of average deposits and total loans
and investments are fairly satisfactory for comparison with totals for the
Bank of Italy, National Trust and Savings Association in 1929. The figure
of net additions to profits has not been adjusted, (that is, the figure
Shown is the total of the two semi-annual amounts reported by the Bank of
Italy, National Trust and Savings Association and the Bank of America, National Trust and Savings Association) and as a consequence reflects such
profits as may have accrued to the Bank of America, National Trust and
Savings Association during November and December, 1930, from branches
the
which had been taken over from the Bank of ADerica of California,

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Federal Reserve Bank of St. Louis

•*

•
•

Dr. E. A. Goldenweiser - Page 2

figures of which organization were not included for the first ten months
of the year. The figure for net additions to profits might be satisfactory for use in computing ratios 9, 19, and 23 of the analysis of bank
earnings form, although we should hesitate to use it for that purpose.
We do not feel that it would be wise to use ratios involving items A to
1, inclusive, of the analysis of bank earnings form computed on the basis
of figures reported for the second half of 1930 by the Bank of America,
National Trust and Savings Association without adjustment, although the
use of item J. would be less objectionable than would the use of the other
items. Unless it were urgently necessary, we should prefer not to undertake to make such adjustments.

Yburs very truly,
ISAAC B. IIEUTON,
Chairman of the Board and
Federal Reserve Agent,

Assistant Federal Reserve Agent
Enclosures

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Federal Reserve Bank of St. Louis

411•

ill•
Federal Reserve Bank of San Francisco,
Department of the Federal Reserve Agent,
Division of Analysis and Research.

ANALYSIS OF BANK EARNINGS
Data for use in connection with 1930 totals, items J, K, N
Estimates as of December 31, 1930 for former Bank of Italy, N. T. & S. A.

The figures of Deposits and of Total Loans and Investments were obtained in the
following manner:

(1)

The ratios which gross deposits and total loans and investments of the Bank of
Italy, N. T. & S. A. bore to totals for Bank of Italy, N. T. & S. A. and Bank
of America of California, combined, on the first three report dates during
1930 were obtained.

(2)

Those ratios were then applied to the aggregate figures of deposits and total
loans and investments of the Bank of America, N. T. & S. A. and of the Bank of
America, as of December 31, 1930, obtaining amounts as of the year end which
are approximately comparable with figures formerly reported by Bank of Italy,
N. T. & S. A.

(3)

The estimated December 31 figures of gross deposits and total loans and investments were then averaged with the figures reported by the Bank of Italy,
N. T. & S. A. for the three preceding call dates during 1930.

The amount shown for Net Additions to Profits is the total of the June report
of the Bank of Italy, N. T. & S. A. plus the total reported for the second half of
1930 by the Bank of America, N. T. & S. A., namely

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Federal Reserve Bank of St. Louis

,i2,746,828

1 - December 31

1,841,080

Total

4,587,908

January 1 - June
July

•
•

•
•
(000 omitted)

Loans and Investments
Ilar.27, 1930
Bank of Italy, N.T.& S.A.
Bank of America of Calif.

June 30, 1930

4765,529
290,234

i753,635
285,399

Sept.24, 1930

Total

747,167

42,266,331

284,843

860,476

Average

755,444
286,825
1,042 269

Dec. 31, 1930
Bank of America,N.T.& S.A.
Bank of America

4919,559
50,128
969,07

Deposits
Lar.27, 1930
Bank of Italy, N.T. & S.A.
Bank of America of Calif.

4759,546
275,503

June 30,

1930 Sept.24, 1930

022,347
280,053

4769,690
270,551

Total

Average

42,351,583
826,107

4 783,861
275,369
1,059,230

Dec. 31, 1930
Bank of America, N.T.& S.A. ;995,351
47,063
Bank of America
1,042,414

Loans and Investments 7:

755,444 X 969,687 = 4703,023
9

1,042,2

Deposits =

783,861 X 1,042,414
1,059,230

1930
27
March
30
June
September 24
December 31
Total
Average*
*Partly estimated.

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Federal Reserve Bank of St. Louis

4771,386

Estimated figure of Loans and Investments as of Jecember 31, 1930,
comparable with preceding reports
of Bank of Italy, N. T. & S. A.

Estimated figure of Deposits as of December 31,
1930, comparable with preceding reports of Bank
of Italy, N. T. & S. A.

Loans and Investments

753,635
765,529
747,167
703,023
2,969,354
742,339

Deposits

759,546
822,347
769,690
771,386
3,122,969
780,742

I.
•i

FEDE RAJL RESE RVE I3ANIC OF SAN FRANCIS$4,c41)
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ISAAC B. NEWTON
CHAIRMAN OF THE BOARD

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AND FEDERAL RESERVE AGENT

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

March 19, 1932

Dear Doctor Goldenweiser:
Data concerning the earnings and expenses of
selected branches of the Bank of America, National Trust
and Savings Association are being sent under separate
cover in accordance with our letter of February 1,

1932.

Yours very truly,

LiVEE P. WFEFTFR,
Assistant Federal Reserve Agent.

Dr. E. A. Goldenweiser,
Chairman, Committee on Branch
Group, and Chain Banking,
Federal Reserve Board,
Washington, D. C.

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Federal Reserve Bank of St. Louis

March 17. 1932

Mr, 0. P. Wheeler
Assistant Federal Reserve Agent
Fedr,r91 7eser,le 3ank
3an Francisco, California
Dear rr. Wheeler:
Thank you for your letter of March 11th and the
cc,)ies of 2orm H giving earnins and balance sheet items
of selected branches of California banks. We note that
you have not yet received the questionnaires from the 3ank
of America National Trust and Savings Association.
7:e also note the information which you collected
in sns-7er to certain ,luestions asked by :Ir. Creel.. If Mr.
Greer feels th%t anythinp more should be done along this
line, he can take the Tatter up with you on his arrival
in San Francisco.
Very truly yours,

J. H. 'idle
Secretary, Committee on 3ranch,
Group and Chain 3ankinc.

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Federal Reserve Bank of St. Louis

March 12, 1932

lIr. Isaac B. Newton
Federal Reserve Agent
LeLerIc
San Francisco, California
Dear Mk. Newton:
For the purpose of assembling certain requested information ih colh.c.ctic,n with proposals for 6uarahtaeint; bank
deposits, we have prepared the attached tables calling for three
items t:o be tL,ken from the "An)ysis of riank i;arnino' schedules which you prepared for the Committee last year. You still
hold
schdtaiss in your files awl the iteLs desirea are j.,
K. and N. on page two. You will note that the tables call for
76gregal.0 dollar amounts for all uational banks in each size
group. This entails arranging the analysis blalks for each
year by size of loans and investmente, x..L they are hot already
so arranged, and then tabulating the figures for each year for
each size voup. In the case of each
a separLte table
should be prepared for each State or fraction of State in your
district.
In view of the purpose for which these data are needed
it will be appreciated if you can expedite the compilations.
Very truly yours,

Goldeh"eiser
Chairman, Committee on Branch,
Group and Chain Banking.

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Federal Reserve Bank of St. Louis

February 10, 1932

Mr. Isaac 3. Newton
?ederal Reserve Agent
Federal Reserve Bank
San Francisco, California
Dear Mr. Newton:
Receipt is acknowledged of your letter of February 1,
1932, regarding the preparation of certain data on branch banking in California which we had previously requested.
In view of your estimate of the time required to make
the ,lomputations under prorosition one and in view of your further statements regarding the deficiencies of these data, we
have deciled not to request you to make the compilations.
We are glad you have proceeded with the collection of
the material from a selected list of branches as outlined in the
second nroposition.
We note regarding the third proposition your statement
that it would be inadvisable to make requests of any kind for
first-hand testi.uony on branch banking service at this time.
We appreciate fully your position in this matter and will
forego any further efforts along this line.
Very truly yours,

E. A. Goldenweiser
Chairnan, Committee on Branch,
Group and Chain Banking.

•

e<"

FEDERAL RESERVE BANK OF SAN FRANCISCO

- -11
0
p.,
;;,̀e
1,

<P,4*
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

February 1, 1932

Dear Doctor Goldenweiser:
This will acknowledge receipt of your letter of January 4 regarding
branch banking in California and outline our views concerning your three propositions.

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Federal Reserve Bank of St. Louis

(1) The data on earnings and expenses of branch operating
and non-branch operating banks which you request can
be computed from our records. We estimate that the time
of three persons for about six weeks would be required
to complete the necessary computations. You and Mr.
Riddle are aware of the deficiencies that we consider to
be inherent in these data. Further consideration of the
figures at this time tends to confirm our previously stated
thought to the effect that earnings and expense figures are
biassed to a considerable degree by the banks' practice of
transferring certain phases of their business to affiliates
or groups of stockholders. This practice often serves to
keep certain unfavorable aspects of their business from
appearing in the earnings statements. We shall, however,
be glad to commence the compilation of these data immediately if you so request.
(2)

We have reviewed your list of selected small branches of
California banks and are enclosing a copy which indicates
our revision of it. The period of time for which you want
the data make it difficult to obtain a thoroughly satisfactory distribution of branches for the state. The revised
list more accurately represents small town and agricultural
conditions in California, however, than does the original
list. Due to changes of ownership, there is a question
as to whether old records have been preserved in a form which
will permit computation of the information requested on Form
"Er for all bra'Iches included in this list. There is a
further question as to whether uniform information can be
obtained from the different branch operating systems since
their bookkeeping methods with respect to branches vary.
Form nir is being mailed to the banks indicated on the
accompanying list in the hope that we will get a sufficient
return to give you the information which you desire regarding
earnings and expenses of small branches.

ft •
FEDERAL RESERVE BANK OF SAra r- RANCISCO

•
•

•

Dr. E. A. Goldenweiser

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Federal Reserve Bank of St. Louis

(3)

As Mr. Wheeler intimated, when talki
with you and 1h'.
Riddle in Washington, we do not feel that it would be advisable to make requests of any kind for first-hand testimony
on branch banking service. Such requests would be inexpedient
at this time in view of the more or less tense situation in
certain parts of the District because of the increased frequency of bank failures and particularly in view of the present
unusual circumstances surrounding one of the large branch banking systems in California.

Yours very truly,

Federal Reserve Agent.
Dr. E. A. Goldenweiser,
Director of Research and Statistics,
Federal Reserve Board,
Washington, D. C.

•

••

•
LIST OF 38 BRANCHES FROM WHICH PRIFTT AND LOSS
AND BALANCE SHEET I= ARE REWESTED, ON FORM ..Tir

Name of Bank

Branch Location
Suggested List
(Revised)

Changes from your list
Additions
Subtractions

Bank of America, N.T.S.A.

Benicia
Colma
Crescent City
Escondido
Gridley
Healdsburg
Lakeport
Live Oak
Nevada City
Oakdale
Oroville
Placentia
Redding
Reedley
San Juan Bautista
San Miguel
Shafter
Vacaville
Wasco

Crescent City
Escondido
Healdsburg
Nevada City
Oakdale
Oroville
Redding
Reedley
Vacaville

Security-First Nat'l Bank

Avalon
Calpatria
Carpentaria
Coalinga
Exeter
Fillmore
Guadalupe
Lindsay
Saticoy
Westmoreland

Lindsay

American Trust Company

Campbell
Larkspur
Livermore
Los Banos
Menlo Park
Saratoga
Tracy

Livermore
Tracy

California Bank

Lomita

Southern County Bank ti

El Monte

Newman

Bell*
El Monte

*The Population of Bell was given as 7,884 in the 1930 census.
,Closed January 30, 1932

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Federal Reserve Bank of St. Louis

Fairfax

••

•

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. N EWTON
CHAIRMAN OF THE BOARD

January 19, 1932

AND FEDERAL RESERVE AGENT

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Ur. I. H. Riddle,
Secretary, Committee on Branch,
Group and Chain Banking,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Riddle:
Thank you for your letter of January 12
and the copies of Parts

and

7 of

the Hearings

Before the Senate Subcommittee on Banking and
Currency
Yours very truly,

(YOLiVER P. WHEELER,
Assistant Federal Reserve Agent.

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Federal Reserve Bank of St. Louis

January 12, 1972

It:r, 0. P. :',heeler
Assistant Federal Reserve Agent
Zederal Reserve Bank
San Francisco, Calif.
Dear lir. Wheeler:
In accordance with your request when in ;iashington I am sending you herewith copies of Parts 6 and 7
of the Hearings Before the Anate Subcommittee on Banking
and Currency.
Very truly yours,

J. H. Riddle
Secretary, Committee on Branoh,
Group and Chain Banking.

Enc.

January 4, 1932
Mt. Isaac B. Newton
Federal Reserve Agent
Federal Reserve Bank
San Francisco, California
Dear

r. Newton:

In connection with the material which Mr. Clerk has kindly
supplied on the subject of branch banking in California, the Federal Reserve Commit,e3e on Branch, Group and Chain Banking would like to obtain,
if possible, the following additional information:
1. Data on earnings and expenses of branch operating and nonbranch operating bas. The last page of your IMITY Review of Busrliss
Conditions for geptember. 1:128, contained certain data on earnings and expenses for the years 1925, 1946, and 1927. We should like to have these
same figures for the years 1928, 1029 and 1930, together with a statement
of the actual aggregate amounts of loans and investments and of invested
capital used for each of the 6 years (in order to permit a weightea average). In the Reviews for November and December of the sale year, earnings
and expense figures for the f'ear 1927 were published for non-branch operating banks according to size of banks and size of towns. Could we have
the same figures for the years 1926, 1928, 1929 and 1930?
2. Data on earnings and expenses of small branches. Attached
hereto (Form 11)-rri schedule arTtems we shou1776-1777071; reported for
eaoh of 28 selected branches of California banks. These branches, which
are operated by the four largest branch-oper,Iting member banks in the State,
are located in the towns indicted in the accompanying list. The towns
have been chosen at random all over the State, but include only those
places of under 3,000 inhabitants in which the branch has been in continuous operation since 1925. It is possible, of course, that these towns do
not constitute a fair sample of operating conditions for the State as a
whole; and in that event we shall be glad to have your suggestions.
We presume the banks will have no objection to giving you this
information for their branches if they are assured that it is to be strictly confidential and that only the tabulated summary results for the branches
of not less than three banks will be published by the Commit;ee.
3. First hand unbiased testimony as to branch bankin - service.
Enclosed is a 117E-OrTgesaons (Form K) rogardtg brsnohbinking which we
suggest sending to represeltative citizens in selected tomes in California.

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Federal Reserve Bank of St. Louis

Mr. Isaac B. Newton, 112

January 4, 1932

The namee of 53 such towns are given on the attached list. ae
have also
prepared and attach a suggested form letter for use in transmi
tting the
questionaaire.
The critical point of this inquiry mill be the choice of persons
in th various towns to whom the queations are to be address
ed. We suggest
that soe one famar with the various sections of the State
be asked to
xS eight leading citizens in each of the
select from
b3 towns indicated
in the accompanying list. The task, particularly for some of the
smaller
towns, may be a little difficult; for in order to obtain unbiase
d tastimoony, the questions should be sent to citizens who (1) have lived in the
town for some time (eight or ter. years, if possible); (2) are neither
directors of independent banks nor members of local advisory boards of branch
banks, nor, if it is possible to ascertain the facts, stockholders of
any
banks. The list for each tow, might include two or three merchants,
a
lawyer, a doctor, and perhaps a clergyman, a ohain store manager, and
a
public official of sone sort.
The towns listed for the inquir are for the most part places
where there is only one bank, this being a branch which was formerl
y an
independent institution. For thie reasor:, coupled with the candid
manner
in which ,,he whole purpose of the proceeding is described in the accompanying letter, it seems to us that we out;ht to obtain a valuable cross section
of Vle responsible opinion of the State of California on the vexed
question
of branch banking service.

him talked this matter over with Mr. Wheeler of your bank
who ie mew in Washington and ho expresses some do:Apt as to the wisdom of
sending out such
questionnaire at this time. We are ,:aking the suggestion,
however, in order ts indic.te the type of information which as should like
to obtain if possible. If you. should deem it inadvisable to send out the
queetionnaire because of prev&Ving conditions in California, perhaps you
could suggest some alternative method of procedure or source of information.
Very truly yours,

a. A. Goldenweiser
Chairman, Committee on Branch,
Group and Chain 'clanking.
Eno.

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Federal Reserve Bank of St. Louis

•

•
•
Federal Reserve Commdttee on
Branch, Group and Chain Banking

FORM H
EARNINGS AND BALANCE SHEET ITEMS OF BRANCHES

Name of Bank
Location of Branch

1926

1927

1928

1929

1930

Gross Earnings
Interest on loans and discounts
Interest on investmen7,s
Interest on balances due from
head office and/Or other
branches
Other earnings
Total
Expenses
Salaries and wages
Interest on gross deposits
Interest on balances due to
head office and/or other
branches
Supervision of head office*
Depreciation on building and
fixtures
Other expenses
Net losses
Total

Net Earnings

CONDENSED BALANCE SHEET**
Assets
Loans and discounts
Investments
Building and fixtures
Due from head office and/Or
other branches
Cash
Other assets
Total
Liabilities
Time deposits
Demand deposits
Due to head office and/or
other branches
Other liabilities
gm.

Total
* Item to include only actual charges for examination and other services rendered.
Stationery, rent, and other charges should be included under "Other expenses."
** Average figures for 4 calls during each year.

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Federal Reserve Bank of St. Louis

LIST OF 28 BRANCES FUOM iiHICH PIA/FIT ALL LOSS
7M7lic-:; SH.,T ITSLS ALJRE:4WST&D, iintra-k
Name of Bank

Branch Loc,Ation

Bank of America N. T. A S. -.

Banta*
Colma
Fairfax
Gridley
Lakeport
Live Oak
Placentia
San Juan Batista
San Liguel
Shaftor
Baton

Security-First National Bank

Coalinga
Guadalupe
xeter
Fillmore
Carpentaria
Avalon
4estmore1and
Calipatria
Satiooy

American Trust Company

Larkspur
Menlo Park
Saratoga
Campbell
Los Banos
Newman

California Bank

Lomita
Bell

Federal aeserve Committee on
Branch, Group and Chain Banking

tOIM

N me of town

Nuabor of independent unit banks

Number of branch banks in town

Jate

,uestions

Answers

(1) Have you observed Lily important change in the
quality of banking aervice in your torn since
the branch bank was edtabliehed? If 60, Indiorite whether better or WOre.e.
(2) Does the branch bank furnish all services offered by independent banks?
(3) Does the branch bank furnish any services not
offered by indepenuent banks?
(4) Does it appear that the lending power of the
branch is seriously limited by the head office (or parent bank)?
(5) Is the branch manager generally as ready to
make loans (or recommend thew to the head
office) as the president or °ashler of an
independent bank?
(6) Is there undue delay in acting upon loan applioations?
(7) Does the branch wanager take an active interest in building up the town?

(6)

Have interest rates on deposits been raised or
l'avered since the branch replaced an independent bank? If so, indicate which, and state
(under "Remarks") vhether in your opinion
this was a result of branch banking policy or
of the general movement of interest rates.

(9) Have interest or other carges on loans been
raised or lowered? If so, indicate which,
and state (under "Remarks") whether in your
opinion this was a result of branch banking
policy or of the general movement of interest rates,
(10) Do you personally find it less agreeable to
deal with a branch manager than with an independent banker?
(11) Would you be willing to have independent unit
banking disappear in California?
(12) Have you any misgivings regarding a banking
monopoly in California?
(13) Are you, or have you been, a depositing customer
of a branch bank?
(14) Are you, or have you been, a borrowing customer
of a branch bank?
(15) Are you a stockholder of an independent bank?
(16) Are you a stockholder of a branch bank system?
(17) Have you in the ;met ten years bought or sold
stock in a branch bank system?

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Federal Reserve Bank of St. Louis

Elignature
(Use back of sheet for additional remarks)

Remarks

(Latter suggested to accompany Form K)

Dear Mr.
As you doubtless know, a Committee of the Federal Reserve System with headquarters in Washington, D. C., is making an investigation of
the subject of branch, group and chain banking.

ae are cooperating in the

work of the Committee and have recently been asked to obtain the unbiased
opinion of a number of representative citizens of California on various
phases of branch banking.

In accordance with that request a list of ques-

tions has been prepared for submission to the leading citizens in various
sections of the State who have been in residence long enough to be in a
position to judge the relative merits of indeoendent banks and branch banks.
Two copies of this list of questions (Form K) are enclosed herewith in the
hope that we may secure your views on the points raised.
We are particularly anxious to obtain the opinions of those who
are not themselves bankers or directors or stockholders of banks.

other words, an attempt is being made to find out ;chat is t e attitude towards branch banking of the responsible citizens of various sections of
California who are customers of banks, but who are not financially interested
ti them.
Tour answers to the questions on the accompanying sheet will be
treated with the strictest confidence.
town will be mentioned.

Neither your name nor that of your

The replies to this letter will be tabuLated and

only the summary result will be used for publication.

Any conclusions

which appear to be warranted by the collective results of the entire in-

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

quiry will be embodied in the forthcoming report of the Federal Reserve
Committee on Branch, Group and Chain Banking.
Some of the questions may seem to deal with more or less personal business matters and we include them only because the replies will be
helpful to an understanding of your attitude towards branch banking.

hope that you will see fit to answer them, on the positive understanding that
they are to be treated as confidential and used only for the purposes outlined above.

You will observe that most of them are so framed that a reply

of Yes or No will suffice.
We shall be very grateful if you will dive these queations your
earnest consideration and return your replies in the enclosed envelope at
your earliest convenience.

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Federal Reserve Bank of St. Louis

Very truly yours,

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

53 1\O4NS SNLBCTED FOR BRANCH BANKING INQUIRY

The luestionnaire (Form K) should be sent to 6 or 8
representative citizens in each of the following towns.
Arcata
Avalon
dell
Benicia
Brawley
Byron
Calipatria
Campbell
Carpentaria
Centerville
Coalinga
Colma
Dinuba
S1 Centro
"&ureks
'aster
Fillmore
Gilroy
Gridley
Guadalupe
Hanford
Hollister
Lakeport
Larkspur
Lemit
Los Banos
Marysville

Mendocino
Menlo Park
Modesto
tionterey
Montrose
Newman
Oroville
Oxnard
Pittsburg
Plaventia
Pleasanton
Porterville
Redlands
Reseda
San Bruno
Banger
Santa Clara
Santa Maria
Saratoga
Satiooy
Sonoma.
St. Helena
Strnthmore
Sunnyvale
TorAnal
Awstmoreland

•
•

FEDERAL RESERVE BANK
OF SAN FRANCISCO

December 10, 1c1.
t

(4.

C
pr.
A. GoldeneiL;:r, GhairmLn,
'Committee on Lrench, .Group and Chain Lanking,
c/o 2edera1 Reserve Ioard,
Ashington, D. C.
Dear Dr.

417•44,0 L 7

oldenweiser:

The enclosed material compiled in accordance with direction
contained in your letter of :ovember 23, 1521, comprises the followilv, items:

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

EXHIBIT I
1. EXaminers' comments: deport in duplicate;
//
2. Fart II: Nothing to R
- eport; If
7. Three ihotostats:
4-23-31,
page 7,
11-24-30,
7,
7-11-29,
74. Form F:
2-23-1927,
10-29-1920,
4-20-1521,
3- 2-192b,
3-14-1922,
2- 4-1929,
7-11-1929,
1- 0-1923,
1- 5-1930,
1- 0-1924,
11-24-1930,
1-26-1925,
4-2b-1931.
2-23-1526,
EXHIBIT II
1. Examiners' comments: Report in duplicate;
2. Part II: Nothing to Report; "
5-28-31,
pag 7,
3 Four Photostats:
2- ?-30,
(Peg 7,
7 insert #1,
( "
If
6-17-29,
7
4. Form F:
4- 9-19 ,
2- 7-1530,
3- 5-1929,
10-20-1530,
9-16-1929,
5-2u-1931.
EXHIBIT III
E. Examiners' comments: Report in duplicate;
2. Part II: Nothing to jieport;
5-5731,
• Three Photostats:
10- u-30,
10- 1-25,

••
;t.. Goldenweisar

Dr.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

4•

:-7orm

December 10, 1

Page 2

5- :3-1527,
4-15,1526,

5-26-1920,
7-30-1521,
2-17-1(322,
4- 2-1523,
.
r
o-

4-12-1929,
10- 1-1(329,

4- 4-1930,
10- 0-1530,
5- 5-1531.

5-25-152
5-20-192
DCHIBIT IV

1. Isfational and States F.xaminers, comment: Report in duplicate;
2. Federal Reserve 1..caminers' comment: Report in duplicate;
6- 5-31.,
3. Three rhotostats:.
Pace 7,

Form F:

10- 2-30,
9- 4-'29,
3-- 7-1923,
4- 1-1924,
9- 1-152,

2-15-1926,
4.-16-1527,
6-30-1926,

7,
73-23-1925,
)
,
ci- 4-192(
3-14-1530,
10- 2-19j0,

6- 5-1(3l.

IXHIBIT V
1. ..,;xaminers, comment: Report in duplicate;
2. Part II; Nothing to Report;
page 7, and inserts 1, 2 and 3;
3. leven Photostats: 5-11-31,
and 3; 10-14-29, pne:e 7 and
inserts
1,
2
and
7,
6-21-30, page
inserts 1 and 2.
3- 1-1926,
4-27-1521,
Form
F:
4.
2-21-1929,
2-lb-1922,
10-14-1525
1,
2-27-1523,

3- 4-1524,

4- 7-1930,

2- 9-152

5-21-1c
)
30,

5- 5-192
2-14-3.927,

2- 5-1531,
9-11-1(331.

Dairirr VI
7 xEiminers, comment: Report in duplicate;
1. 3
2. Part II: Nothing to Report;
3. Nine Photostats: 4-16-31, pages 7, an d inserts 1 and 2;
9-19-30, pages 7 and inserts 1 and 2; c)-20-29, page 7
and inserts 1 and 2.
v:
1-19-1920,
Form
4- S-19279
4.
3-21-1520,
3-11-1921,
5- 5-1929,
5... 4-1922,
10-10-192';,
3-31-1930,
1-31-1924,
9-19-1930,
5-26-192
4-16-1931.
6-17-192

Yours very truly

••

S.
TELEGRAM

FEDERAL RESERVE BOARD
LEASED WIRE SERVICE
WAS HI NGTON

2-9454

DAcember 1, 1931

Clerk
Lian .'1.*anc1sco
Your telegram thirtieth we suggeat two copies each first
and second parts and one copy of third knd fourth parts,

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Federal Reserve Bank of St. Louis

RIDDLE

•

LEGRAM

•
/A
PC ,

FEDERAL RESERVE SYSTEM

(LEASED WIRE SERVICE)

177gb

iRpc

I
RECEIVED AT WASHINGTON, D. C. .4
,Sanfrancisco 1030Lm Nov 30

ti
4.1
/
4
4
0,9

Riddle
Board Tashington.
Your letter to Agent twenty third how many copies required enclosures
reports and schedules.
Clerk
216p

V M. GOVIIMVULMI./IMMO 91/11111: IMP

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Federal Reserve Bank of St. Louis

1.41001

FEDERAL RESERVE BANK OF SAN FRANCISCO
IsAAc B. NEWTON
CHAIRMAN OF THE BOARD

November 30, 1931

AND FEDERAL RESERVE AGENT

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Attention Dr. E. A. Goldenweiser,
Chairman, Committee on Branch, Group and Chain Bankina:

Dear Sirs:
Receipt is acknowledged of your letter of the
23rd instant, enclosing list of failed banks in this
trict, the histories of which you wish compiled covering
ten years prior to their suspensions.
The forms mentioned
have not yet arrivei, but the work has already been started
and we hope to have the information in your hands by December 15, as requested.

Yours very truly,

S. G.ARGENT
Assistant F
ral Reserve Agent.

Federal Reserve Board,
Washington,
D. C.

November 23, 1951

Mr. Isaac S. Newton
Federal Reserve egeae
Federal Reserve Bank
.an F1%..neisoo, California
eoar it. eeetou:
In the early part of this year tlE; Committee LYliGiated
into the ceases of bank failures which consisted.in oozapilizig ,:he ease
ilistoriaa of 12-..; 5_.nke for several years prior to swipension. These 120
banks were selected froe suspensions during 19e1-1930 and the material
is now being aealyeed.
,tiew of Lhe lartULAJQ1' .f auapeasiees dueieg
ever, as deli as Lies difle)reeces in locaie:i ad fectors Involved,
(1!. subpoiwioria aoul- ee edequeLe ualess it
4.6 reit t;hat
this year. Therefore, 100 banks suspending in 1931 have been selected
in a meaner which should asks them representative of his yearla fatalities. Those selected from your district are gleee on 6ho attached list,
and .e shoulu ae prociete IL if you eould give as Lne lee:lent hietories of
these Dunks in accordance with the instructions. The information desired conaidts of four parts.
First, the colreats of the national or Steee rethe ee‘L
as the ease may be, froe the Jegineing of 19k0 till suspension. The
form in which these coitraerits should be drawn up is explained in bho
*lofted mimeographed instructions to which is attached Xxhibit I, a)
illustration. As an aid to interpretation these cumuenee are kilL •ispersed with certain figures showing in a general may the condition
of the bank at ;he ties of oecl, exaeenee3.on. Certain other data are
also called for, such as population figures and earnings. These are
covered in the mimeographed instructions.
Second, the coements of Federal reserve examiners regarding
these banks during the Same period, 'enether with any correspondence,
memoranda Or other material in the files of the Federal reserve bank
which will aid in understanding the condition and operation of these
banks prior to failure. No spool 1 form has been drawn up for c mpilipng this material, but in so far as feasible it should be listed

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Federal Reserve Bank of St. Louis

Mt. Isaac B. Newton, 4-2

Tirvwrp.hq,- 23, 1931

chronologically as
bank examiners.
Third, a photostat copy of each Pank's bond and oth:r security
holdins orTITes different dates: (1) at or just prior to suspension;
(2) approximately one year prior to suspension; and (3) approximately
two years prior to suspension.
Acurth, detailed statistical data taken from the examiners'
re:orts an4-77a7rded on "Aorm P" from 1920 to the date of suspension.
A copy of this fora and comments regarding its preparAion are enclosed,
and a supply of the forme is being forwarded to you under separate cover.
In ease the history of any bank in the list is not available
for any reason a substitution should be made of some other t:pical suspended bank in your district.
In view of the urgent necessity of completing this report at
an early date we hops you will have tAJs 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,

S. A. Goldenweiser
Chairman, Committee on Branch,
Grow, and Chain Banking.
411(4

c o co to Lir. Clerk

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Suspended 3anks ',Jelected for Cass

tudies

San Francisco District
1.
2.
3.
4.
5.
6,

first Lational sank
xii :LynJood
liatioLtal
Filst kItiOl Bsnk
,,rinev111,. Ldclohal ank
iirst ;ational aank
t ria1 aank
t rte
linitc
K-

3416win J'ark, Calif.
Bancroft, Idaho
?fincvnle, Tiro.
11.'111e,
LOE0 1,ngelec, Calif.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

October 22, 1931

G. Sargent
Ir.
Assistant Federal Reserve Agent
Federal Reserve Bank
an Francisco, California
Dear

oargent:

This is in reply to your letter of October 5th,
relative to the permission of the First Securities Corporation, of Ogden, Ash, to publish the replies they submitted
to the r,uestionnaire . on their group banking activities.
We are eager to give as full detsils as feasible
groap, and wonder if they mould not be
important
on this
the answers to questions 11 and 12,
use
us
let
willing to
having to du with ,00k value
colamns
the
omitted
if we
basis of exchange. We feel
the
and
stooks
of the bank
town, tiize of b,a4s, per
of
size
of
that the details
Federal reserve memberand
control,
dent of ownership
complete
pictare of the group
more
a
give
ship hel.) to
it.
without
than is possible
We shall appreciate it if you will vrite them
that ae du uut ;ish
point, ussaring
this
on
again
any
have
reluctance.
they
if
matter
the
to press
Very truly yours,

J. K.
Secretary, Committee on Branch,
Banking.
G.roup and

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

October 22, 1931

G. :)s.-irent
11r.
Assistant Federal Reserve Agent
Federal. Reserve Bank
,an Francisco, California
Dear -r. oargent:
This is in reply to your letter of October 5th,
relative to the permission of the First 5ocuritie Corporation, of Ogden, Utah, to publish the replies they submitted
to the ;Itiestionnaire on their gro.rtp hik1rp activities.
are eager to give ss full details as possible
on this important group, and wonder if they would not be
willing to let us use the anwvers to questions 11 and 12,
if we omitted the colwans having to do with '000k value
of the trink stocks ..nd the ba.,is of exchange. 7ie feel
that the details of size of town, size of bnIca, per
aent of ownership control, and Federal reserve lenbership help to give a more complete picture of the group
than is possible without it.
Vie shall appreliate it . If you wi'L rrite them
again on this point, assuring them that we do not wish
to press the mItter If they have any reluctance.
Very truly yours,

J. H. Riddle
.:earetary, Committee on Branch,
Group and Chain Banking.

••

•

FEDERAL RESERVE BANK OF SAN FRAN-CISCO

1;
<c„
eb

01.
ISAAC B. NEWTON

0
A\

tP4 • °S,.

CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

)
V/
1
4
%PA <6

October 5, 1931

111
43

Attention: Dr. E. A. Goldenweiser, Chairman, Committee
on Branch, Group, and Chain Banking.
Dear Sirs:
In response to your letter of September 15 we have communicated with the First Security Corporation of Ogden, Utah, the Marine
Bancorporation, Seattle, Washington, and the Anglo National Corporation, San Francisco, California, and have secured their permission
to publish replies to the questionnaires sent them several months
ago regarding the operations of their corporations.
It
exception
inserts
essential
will take

dy
/
</
\
1
4

will be noted that the First Security Corporation makes an
to the answers to questions 11 and 12 of section 1, being
In case the Committee thinks it
between pages 8 and 9.
to use replies to these questions please advise us and we
the matter up with them as suggested in their letter.

You will find enclosed copies of letters received from the
three corporations.
Yours v

r- a
. =Assistant F Ipt1 Reserve
Federal Reserve Board,
Washington,
D. CO

Agent.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

COPY

ANGLO NATIONAL CORPORATION
San Francisco,

September 23, 1931

Mr. S. G. Sargent,
Assistant Federal Reserve igent,
Federal Reserve Bank of San Francisco,
San Francisco, California.
Dear Mr. Sargent:
I regret the delay in replying to your letter of the
21st of September, which was occasioned by my not being here.
I can see no objection, as far as the Anglo National
Corporation is concerned, to the Committee printing the
"Schedule of Information" furnished you sometime ago in response
to the request from the Committee on Branch, Group, and Chain Banking.
Yours very truly,
(SIGNED) L. C. PONTIOUS
Vice President

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Federal Reserve Bank of St. Louis

COPY

MARINE BANCORPORATION
Seattle, Vashington

September 24, 1931

Mr. S. G. Sargent,
Assistant Federal Reserve Agent,
Federal Reserve Bank,
..an Francisco, California.
Dear Mr. Sargent:
I am interested to note from your letter of September 21
that you now propose to print the schedules you have obtained
concerning group ganking organizations as appendices to your
report on group banking, which report I will look forward to with
keen interest.
We have no objection to your using the information we furnished you in the manner indicatedin your letter.
Very truly yours,
(SIGNED) ANDRE PRICE
President.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

C 0 P Y

FIRST SECURITY CORPORATION
Ogden, Utah.
October 3, 1931

Mr. S. G. Sargent, Ass't Federal Reserve Agent,
Federal Reserve Bank of San Francisco,
San Francisco, California.
Dear Mr. Sargent:
Replying to your letter of September 21 relative to permission from this Corporation to publish answers to the questionnaire
sent out about a year ago, and referring to our letter addressed
to Mr. Newton under date of uctober 28, 1930, will state that we
have no objections to your publishing any of the answers contained,
or taking any information you may desire out of the report, with
the exception of the answers to questions eleven and twelve of section one, being inserts between pages eight and nine.
These schedules merely give a list of our affiliated banks and
companies, together with data as to the book value of the bank stock
and the basis of exchange. We rather feel that this is confidential
to this corporation and the supervising authorities, and it was given
really in support of other answe-s to questions contained in your
questionnaire.
If you think that it is important that these two questions be
incorporated we shall be glad to reconsider, if you will give us a
little more information as to the reason.
With best regards, we are,
Very truly yours,
(SIGNED) C. I. CANFIELD,
Ass't Secretary-Treasurer.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Mr. S. O. Sargent
Assistant Federal 1:eserve AgQnt
Federal Reserve 3ank
San Francisco, California
Dear Mr. Sargent:
We aoknowledge w'.th thanks your letter of
October 8th enclosing aduitional sehodules of information regarding oank 'if:Mations in your district.

note that tnese complete the returns to be expected from
you.
Vet': truly yours,

J. H. Riddle
Secretary, Committee on Bpanch,
Group and Chair. Banking

•
•

FEDERAL RESEIRV1E BANK OF SAN FRANCISCO
IsAAc B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

October 8,

Attention:

1931

Mr. J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.

Dear Sirs:
We are enclosing additional schedules concerning the following corporations and their affiliates:
American National Corporation, Portland, Oregon,
Citizens Finance Corporation, East Stanwood, Win.,
State Securities Corporation, Los Nietos, California.
We still have a few questionnaires outstanding to which it
appears we are unable to get any response and it would seen that
the above consignment would complete the material that can be expected
from this district.
Yours very truly,

Assistant Federal ReserWAgent.
Federal Reserve I3oard,
Washington,
D. C.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Kr. S. G. Sargent
Assistant Federal Reserve Agent
Federal Reserve Bank
San Francisco, California
Dear Mr. Sargent:
Thank you for your letter of October 2nd
with respect to the manner in which builaing and loan
associations in California have met the conditions
arising out of the hoicking crisis.
Very truly yours,

J. H. Aiadle
Secretary, Committee on Branch,
Group and Chain IsaMcing.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Lieptember 2, 1931

Mr.
L. Sc.rzent
Assistant Federul Reserve Agent
Federal Reserve Bank
San Francisco, California
Dear Mr. Sargent:
We aeknowledge with thanks your letter
of Septeeber lath enclosing five reports on banking
affiliates in your district.
Very truly yours,

J. H. Riddle
.
Secretary, Conrittee on .4;n1.;.
Group and Chain Banking

*•

•
•

FEDEIZAL RESEI1VE BANK OF SAN FRANCISCO
ISAAc B. NEWTON
CHAIRMAN OF THE BOARD

September 18, 1931

AND FEDERAL RESERVE AGENT

Attention Mr.Riddle,
Secretary, Committee on Branch, Group and Chain Banking.

Dear Sirs:
We are enclosing additional schedules concerning the following
corporations and their affiliates:
St. Maries Realty Co., St.
es, Idaho.
MariII
I
Corvallis First National Corp.,
Corvallis, Oregon.
First Security Corporation, Ogden, Utah.
Pacific Mortgage and Investment Co., Entiat, Wash.
Yakima Holding Company, Yakima, Washington.
We still have a few questionnaires to hear from, and as fast
they are received they will be forwarded to you.

Yours very,

z—
Assistant

Federal Reserve Board,
Washington,
D. C.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

eral

perve Agent.

September 22, 1931
Mr. Isaac B. Newton
Federal Reserve Lgent
Federal leserve Bank
4an Francisco, Galifornia
Dear Mr. Newton;
As you doubtless know, the Federal Reserve Committee on
Branch,
Group and Chain Banking expects to Include in its report a chapter
on the
(=petition encountered by banks on the part of non-banking
institutions,
notrbly building and loan aasociations, savings and Lan assooiation
s,
and stmilar societlea conducted on the mutual or cooperative
principle.
Several of the Federal reserye banks ha;re been good enough
to compila
and transmit to us much valuable information, which in the main
will be
sufficient for our purposes.
a are anxious, however, to make sure that
the report shall not fail to take account of any new developments of importEnce 7hial-, nay have ()warred in recent months, particularly with respect to the :Danner in which building :oad loan associations have met the
oonditions arisng out of banking criscs in various localities.
Since we hope to complete this part of the neport in a few
weeks, lianinstly there will not de time for an extended inquiry; but
we shall be glad to hnve any inrormation you can furnish, withouetoo
mnoh trouble, as to conons in your district. ':Os should like to
know, for example, to what extent the assete of building and loan associations are "frozen,“ whether more or less seriously thRn the real
estate loans of the barks; .1hether
ganerel the associations have
been obliged to invoke the full extent of their privileges under the
law in the matter of reauiring notice for payment of the withdrawal
value of their share:, or 'of their deposits, as the case may be, and
whether there has been in the past twelve months apy consiaerable
inorease in building and loan failures, as compared with the years
1928 and 1929.
"de shall gristly appreciate a reply along the lines indiceted
at your earliest convenience.
Very truly yours,

E. A. Goldenweiser
Chairman, Committee on Branch,
Croup and Chain Banking.
:3.3.

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Federal Reserve Bank of St. Louis

to :Jr. Clerk

••

•
•

FEDERAL RESERVE BANK OF SAN FRAN-CISCO
IsAAc B. NEWTON
CHAIRMAN OF THE BOARD

September 15, 1931

AND FEDERAL RESERVE AGENT

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Dear Mr. Riddle:
Replying to your letter of September 10, I wish to
state that the data which we compiled on banking affiliates
was forwarded to you with our letter of September 8 and has
no doubt been received before this time.
As stated in our earlier letter, we have yet to hear
from questionnaires sent to some of the individual banks. The
most important one is the First Security Corporation of Ogden,
Utah.
Its report came in a few days ago but contained several
apparent discrepancies which necessitated our writing for additional information.
These incomplete reports will be forwarded as soon as replies have been received from our questionnaires.
Yours very truly,

G NT,
Reserve
0
`
6deral
Agent.
Assistant 1

H. Riddle,
Secretary, Committee on Branch,
Group and Chain Banking,
Federal Reserve Board,
Washington, D. C.

September 15, 1931

Mr. Issas B. Newton
Federal Reserve Agent
Federal Reserve Bank
San Francisoo, California
Dear Mr. Newtons
Some months ago the First Security Corporation of Ogden,
Utah, the Marine Bancorporation of Seattle, and the Anglo-National
Corporation of San Francisco were good enough at your request to
fill out for the Committee on Branch, Group and Chain Banking
ules of information which oonsisted in answering some sixty odd .ii6tionE prepared by the Committee.
This information was supplied on
the understanding that it would be kept oonfidential and used onl:/
by the Committee in drafting its general report on group banking.
The Committee, of course, is living up to this understanding. The information is so well organised, however, and so
instructive that it seems desirable to print these schedules, among
others, as appendices to the report on group banking provided we
can secure permission from the groups themselves, We should appreciate it, therefore, if you will raise the question with taem.
It will be entirely optional with them, of course, and if they
should object for any or no reason, that will be the end of the
matter. So far WI we can see there is nothing in those reports
which would react against the grod!')e. On the contrary they supply a body of useftl data which will help to give a better understanding of the groups and their activities.
The Committee's report, Inc:lidding the appendices, will be
submitted to the Federal Reserve Board and to the Conference of
Governors and Agents and it will be for them to decide what Ileposition to maim of it. Presumably it will be made publio in some
form.
Very truly yours,

E. A. Goldenweiser
Chairman, Committee on Branch,
Group and Chain Banking.
/-t

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Federal Reserve Bank of St. Louis

September 14, 1931

Mr. S. G. Urgent
Assistant Federal Reserve Agent
Federal Reserve Bank
San Francisco, California
Dear Mr. Sargent:
We wish to acknowledge with thanks your letter
of September 8th with its enclosure of the material
already completed on bankaffiliations in your district.
We are glad to know that the remaining material may be
expected soon.
Very truly yours,

J. H.. Riddle
Secretary, Committee on Branch,
Group -..nd Chain Banking

•
•

do•

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

September

8, 1931

4
4

4,e*'

Attention: Dr.
A. Goldenweiser,
Chairman, Committee on Branch,
Group and Chain Banking.

Dear Sirs:

In accordance with your letter of July 16, we have
substantially completed the materiel on bank affiliations
in this district, which is enclosed herewith.
A few incomplete reports are held which will be forwarded as soon as
replies to our questionnaires are received.
The informacion given was obtained principally from
examination reports, the California State Banking Department
and from questionnaires sent to individual banks. Inquiry
was made of the other state banking departments, but with the
exception of one, their records were reported as incomplete, but
that from general knowledge of their respective districts,
very few, if any, of their banks operated with an auxiliary
company.

Yours very truly,

lair
ist SI
Assistant weral Reserve Agent

Federal Reserve Board,
Washington,
D. C.
Enclosures

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Federal Reserve Bank of St. Louis

September 10, 1931

Mr. Isaac B. Newton
Federal Reserve Agent
Federal Resrve Bank
San Francisco, California
Dear

r. Newton:

In our letter of July 16th we forwarded to you the
material which we had compiled on banking affiliations in
your district, our request being that you correct and a6iplit,i
what we had done from your own r000rds and return the completed data to us. We have received this information from
a majority of the reserve districts and are naturally anxious
to receive the balance and complete this portion of our study
as soon as possible. Amordingly, we shall be obliged if you
will let us know how soon we may expect the returns from your
district.
Very truly'youre,

J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.

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Federal Reserve Bank of St. Louis

August 29, 1931

Mr. S. G. SarL,ent
Assistant Federal Iteserve Agent
Federal Reserve Bank
San Francisco, California
Dear Jar. Sargent:
We have received your letter of August 24th
with the enclosed security indioes and investment lists
of fifty national banks in your district on which you
have identified all securities to which ratings from
published sourcns were not assigned.
Thank you for the detailed description of
your procedure in the assignment of ratings.
Very truly yours,

C. B. Hammond
?or the Canmittee on Branch,
Group and Chain Banking.

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

August 24, 1931

Dear Doctor Goldenweiser:
Complying with request contained in your letters of June 25 and
July 16, we are sending you lists of bonds taken from fifty national banks,
You will find that we have substituted
together with analyses of same.
the Salinas National Bank, Salinas, California, for the First National Bank
of Salida, which was taken over by another institution.
These analyses
were completed before receipt of your telegram and letter of August 18.
You will note that a large majority of the securities held by these
banks are unlisted issues and we were unable to find published ratings for
We have listed such securities under the headings "not rated" and
them.
"not listed", including in the latter only such securities which were strictly
local to the communities in which the bank was located.
Your instructions were to include in loans and investments items as set
forth in articles 1
inclusive, of the Board's Form 105a.
As this form
pertains to state banks and does not include all of the items contained on the
examination form for national banks we were not quite sure as to what items you
wanted included and have included the following:
Loans and Discounts, Overdrafts, United States Bonds and Certificates pledged, United States Bonds and
Certificates not pledged, Premium on United States Bonds, Bonds, Securities,
etc., (pledged and unpledged), and Federal Reserve bank stock, omitting Interest
earned and not collected, Customers liability account of acceptances, and United
States Bonds to secure circulation.

- 4,

We fully appreciate the fact that a very large percentage of the holdings
are listed in the two spaces "not rated" and "not listed" but found that it was
going to be an almost endless task to secure sufficient information regarding
these securities to enable us to give them their proper ratings.
As suggested in your letter of August 18 we have indicated the rating
assigned to each security for which a published rate could be found and have
identified each security classified as "not rated" or "not listed".
We have
made no attempt to assign arbitrary ratings.
Yours very t

41'
Feder

Dr. E. A. Goldenweiser,
Chairman, Committee on Branch Group
and Chain Banking,
Federal Reserve Board,
Washington, D. C.

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Federal Reserve Bank of St. Louis

eserve Agent.

•
TELEGRAM

Form 148

t•

FEDERAL RESERVE BOARD
LEASED WIRE SERVICE
WASHINGTON

004

orn

August 18, 1931

Newton,

an Francisco

We find ths.t copies Of bond accounts of fifty selected
national banks requested in our letter of June 25th are necessary.
Do not forward them to us until you receive instructions we are
writing today.

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Federal Reserve Bank of St. Louis

GOLDER ,EUER

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Federal Reserve Bank of St. Louis

August 18, 1931

Mr. Isaac B. Newton
Federal Reserve Agent
Federal Reserve Bank
San Francisco, California
Dear Mr. Newton:
Reference is made to our letter of June 25th in
asked
you to prepare copies of the lists of securiwhich we
ties held by each of fifty selected national banks in your
district. The Committee requests that you indicate the
rating assigned by you to e eh security for which you
could find no published rating and that you identify
'or "not listed."
each security classified as "not rated,
If adequate informntion concerning a particular security
Is lacking and you have assigned an arbitrary rating, the
rating should be noted as being arbitrary.
Very truly yours,

E. A. Goldenneiser
Chairman, Committee on Branch,
Group and Chain Banking.

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Federal Reserve Bank of St. Louis

July 17, 1931

Mr. Isaac B. Newton
Federal Reserve Agent
Federal Reserve Bank
San Francisco, California
Dear Mr. Newton:
Attached is a record of the Transamerioa
affiliation which should have been included with the
material sent you in our letter of July 16th. This
r cord is based largely on information furnished by
the Federal Reserve Bank of New York, but inasmuch
as so many of the subsidiaries are in your district
we considered it advisable to submit it to you for
revision.
Very truly yours,

J. H. Biddle
Secretary, Committee on Branch,
Group and Chain Banking.

:no.

110

•
•

FEDERAL RESERVE BANK OF SAN FRANCISCO

C'
'c/
o)
/1,

4.-

ISAAC B. NEWTON
CHAIRMAN OF THE BOARD

jeP

AND FEDERAL RESERVE AGENT

P-T
41,

August 11, 1931

Dear Doctor Goldenweiser:
This will acknowledge the receipt of your letter of July 16
enclosing for our examination certain material on bank affiliations
in this District with the request that we check your compilation and
make such corrections and additions as may be necessary.

We find

that to make the report as nearly complete and authentic as possible
considerable time will be needed.

However, we shall endeavor to

expedite the work and return the material at the earliest possible
date.
Yours very truly,

7-2)

1
4"4°t\L

60SARGENT
Assistant Federal Reserve Agent.

Dr. E. A. Goldenweiser,
Chairman,
Committee on Branch, Group, and Chain Banking,
Federal Reserve board,
Washington, D. C.

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Federal Reserve Bank of St. Louis

July 16, 1931

Mr. Isaac B. Newton
Federal Reserve Agent
Federal Reserve Bank
San Franaisco, California
Dear Mr. Newton:
We are sending you a description of an index which has boon
devised for the purpose of measuring the quality of the security holdings of banks.
The construction is simple and is fully explained in
attached
memorandum.
The CoLimittee desires to have this index
the
representative
list of banks scattered throughout the
computed for a
determine
country in order to
something of their investment policies.
On June 25th we sent you the names of 50 banks in your
district with the request that you send us a list of the securities
held by each at the time of the last examination in order that we
might make an analysis of these securities. For each of those 50
tists of securities we should like to have yo_ prepare an index in
accordance with the enclosed example and the accompanying instruotions. If you feel that the 50 beaks will not be sufficiently
representative of your district, yea 21014 enlarge the list.
We ars sending you under imparats lover a supply of forma
for use in computing the index.
Very truly yours,

E. A. Goldenaeiser
Chairman, Committee on Branch,
Group and Chain Banking
EMI*

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Federal Reserve Bank of St. Louis

Mr. Isaac B. Newton
Federal Reserve Agent
Federal Reserve Bank
San Francisco, California
Dear Mr. Newton:MS are enclosing for your examination certain material on bank
affiliations in your district which we have compiled on a special form (Form
C) for use with the Federal Reserve Board's records on the subject. It
covers seourities 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
oomplianoe with the Board's letter, St. 6386, November 18, 192io, do not
include infer ation on these two items.
Specifically, this compilation has been prepared to include the
hollowing kind' of affiliates of banks:
(1) All non-banking affiliates of state and
national banks, including securities companion,
mortgage companies, investment trusts, insurance
companies, holding companies, foreign banking eon.
ponies and safe deposit sompanies. In each case
the name of the bank and the names of its snbsidp.
'Aries or affiliates are given.
(2) All affiliations between two banks only.
This affiliation may exist either through common
stockholding interest, trusteed stock, direct ownership, or other means. The commonest examples of this
are the affiliation of a trust company 4th a national
bank and of a savings bank with a commercial bank.
The compilation has been made principally from three general sources-Moody's Manual of Banks, the directory of Security Dealers of North America,
and Rand McNally's Bankers' Directory. Our request is that you check our oompilation, make the necessary corrections and additions indicated by your credit
files, examiners' reports, and other sources of infor:iation, including reference where advisable to the organizations themselves, and return the revised
material to us as soon as possible.

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Federal Reserve Bank of St. Louis

Mr: Isaac B. Newton, #2

A memorandum is enclosed which explains the terms used in the camp
pilation, and gives such other infbrastien as is meeessary to interpret and
correct it properly.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Very truly yours,

E. A. Goldenmeiser
Chairman, Committee on Branch,
Group and Chain Banking.

OELEGRAM

•

FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)

a dO

:
:
14
6 144"
RECEIVED AT WASHINGTON, D.4

erk
272gy
Sanfrancisco 234p July 8

Goldenweiser
Washn

Replying telegram today, with assiAtance all available typists
we are pretty well along with copying bond accounts, so will
continue work pending receipt of your letter

Sargent
615p

*rm. Ins

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
O. S. GOVZ1NYIINT

2-11901

Form

ir•

•

148

TELEGRAM
FEDERAL RESERVE BOARD
LEASED WIRE SERVICE
WAS

2-9454

aro

July 8, 1.931

Newton, San Francisco
In view your letter July 2nd regarding difficulties of copying
bond accounts, we have decided to ask
you to prepare index of thezA,
accounts in accordance with instructions which we shall write you in
few days. Therefore you need not proceed with the copying.

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Federal Reserve Bank of St. Louis

FEDkHZAL

RESERVE BANK OF SAN FRA_NCISCO

ISAAc B. NEWTON
CHAIRMAN OF THE BOARD

July 21 1931

AND FEDERAL RESERVE AGENT

4:4:..
<
4.00.4/0/

41'44
- 4

Dear dr. Goldenweiser:
Upon receipt of your letter of June 25 in regard to the bond accounts of fifty national banks in this district, we commenced the work of
copying this list which amounts to nearly one hundred thirty pages with
four columns of closely typewritten matter.
It will take some time for us to copy these lists because we are
working with fewer people under present conditions and also because the vacation season has made us even more shorthanded.
We investigated the possibility of having photostatic copies made, but found that it is impossible
to do that with carbon copies satisfactorily.
Also, we have no photostat
machine at the bank and are unwilling to remove the bond sheets from the
examination reports and send them outside the bank.
However, we are rushing this work through and hope that the necesWe shall do our best.
sary delay will not inconvenience you.

Yours very truly,

liza.Actvc
Federal Reserve Agent:

Dr. E. A. Goldenweiser,
Director of Research and Statistics,
Federal Reserve Board,
Washington, D. C.

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Federal Reserve Bank of St. Louis

June 25, 1931

Mr. Isaac B. Newton
Federal Reserve Agent
Federal Reserve Bank
San Francisco, California
Dear Mr. Newton:
Vie are enclosin6 herewith the names of 50 banks in
your district and mould appreciate it if you could send us a
list of the bonds, seeuritie6, etc., held by each of them at
the time of the last examination. The demmittee is undertaking to make an analysis of the investors* bindings of a representative group of banks throuchout the sountry in order to
determine their investuent policies. Mese beam have been
selected at random in order th.t they may be representative.
Perhaps the investment list in each ease, uhich usually appears on page 7 of the National bank examiner's report, oan
be photostat d at a minimum of time and cost.
In returning these lists, it would be of monh assisttaloa if you oould give the total looms and investmentsOof each
bank in order that we may greep thee aeeerding to size). The
items included in total loans and investments are set forth
in articles 1 to 4 inclusive of the Beard's Form 105a.
Very truly yours,

E. A. Goldenmaser'
Chairman, Committee on Branch,
in Banking
,roup and

•

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Federal Reserve Bank of St. Louis

0"-t,

21/b

02-

v4- a

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Federal Reserve Bank of St. Louis

liftY Selected National
in Federal Iteserve District No. I-

I. Tempe N. B.
Tempe,
Arizona
2, First N. B.
Atascadero,
California
3. First N. B.
Beverly Hills,
4, First N. B.
Carlsbad,
ff
5. Citizens IT. B.
Colton,
First
6.
N. B.
Cucamonga,
7. First N. B.
El Segundo,
8. First N. B.
Glendale,
9. city IT. 3.
Huntington ?nrk,
10. First N. B.
Lemoore,
11. Hollywood N. B.
Los Angeles,
12. First E. B.
ziadera,
ff
13. First N. B. ..
Mountain View,
14. First N. B.
Ontario,
15. Palo Ito N. B.
Palo Alto,
16. First N. B.
Pleasanton,
9
17. Citizens N. B.
Rialto,
rt
18. First N. B.
Salida,
19. Anglo & London Paris F. B.
San Francisco,
20. San Jose E. B.
San Jose,
21. County, First N. B.
9
Santa Cruz,
22. First F. B.
Stockton,
23. First n. B.
Ukiah,
24. First N. B.
Victorville,
25. Winters P. B.
Winters,
26. First N. B. of Idaho
Boise,
Idaho
27. First N. B.
ft
Driggs,
28. Jerome "7. B.
Jerome,
29. First N. B.
?arna,
30. First N. B.
Sandpoint,
31. American N. B.
Aberdeen,
Washington
32. First N. B.
9
Brewster,
33. Colfax B. B.
Colfax,
34. E. B. of Ellensburg
Mensburg,
35. First N. B.
Ferndale,
36. First N. B.
Hoquinm,
ft
37. First N. B.
Longview,
38. First N. B.
fl
Okanogan,
39. First N. B.
Poulsbo,
40. First Seattle, Dexter Horton E. B. ..Senttle,
41. First N. B.
9
Snohomish,
42. Washington N. 3.
Tacoma,
43. Baker Boyer N. B.
Walln Walla,
44. First N. B.
Ashland,
Oregon
45. Harney County N. B.
Burns,
46. First N. B.
Elgin,
47. First N. B.
Halfway,
48. First N. B.
Junction City,
49. Lebanon N. B.
rt
Lebanon,
50. First N. B.
Reno,
Nevada

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Federal Reserve Bank of St. Louis

June 22, 1931

Mr. 6. G. Sargent
Assistant Federal eserve Agett
Federal Reserve Bank
San Francisoo. California
Dear ;.1r. Sargent:
e acknowledge vith thanks your letter of June
16th enclosing supplementary suspension schedules froak the
state of Iwtho.

According to our rc,cords, the addition of

these cases completes th

suspension reports from your dis-

trict for the entive period 1921-1930 inclusive.
Iery truly yours,

J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.

1,•

Ir‘ Alk
r w

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

July 3, 1931

Attention: J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.
Dear Sirs:
Referring to your letter of June 19, please find enclosed
corrected copies of Forms B-3 and B-8 for the State of Idaho.
The Department in returning these schedules made no explanation
as to the corrections made.
Yours
4yery truly,

/
Ass

Federal Reserve Board,
Washington,
DO CO

nt"Federa1 7serve Agent.

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Federal Reserve Bank of St. Louis

June 19, 1931

Ur. S. G. Sargent
Assistant Federal Reserve Agent
Federal Reserve Bank
San Francisco, California
Dear lar. Zargent:
We are enclosing copies of Forns B-3 and 3-8 for
the state of Idaho which you sent us. Sinoe both forns shaw
loans and investments, the totals for each year should be
the same on the two forms. As you notice these totals do
not check in any year.
We should appreciate it if you would have the
made and return the forms to us as soon
corrections
necessary
as possible.
Very truly yours,

J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.
Ere.

.1•
FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

June 291 1931

Attention: J. H. Riddle, Secretary, Committee
on Branch, Group, or Chain Banking.
Dear Sirs:
Referring to your letter of June 19 we are returning copies of
Forfns B-3, 3-4, and B-8 for the State of Viashington with the necessary
correction.

Vie are advised by the Banking Department that in listing

the banks as to capitalization on Form 3-4 they included in error the
Peoples State Bank of Lynden, the capital of which was listed at 00,000.
That bank was not organized until the Litter part of 1920 and should,
therefore, not have been included in the June 1920 listings.
Trusting that you will not find the Forms in order, I am

Federal Reserve Board,
Viashington,
D. C.

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Federal Reserve Bank of St. Louis

June 19, 1931

Yr. 3. G. Sargent
Assistant Federal Reserve Agent
?ederal eserve Bank
San Francisco, California
Dear Mr, .argent:
are enclosing oopies of Forms B-3, 3-4, and
which you sent us. As
3-8 for the state of ,7ashington
you notice in 1920 the total number of banks on ?onn
3-4 is 304, while on 8-3 and 8-8 it i$ 303.
We should appreciate it if you would have the
necessary corrections made and return the forms to us as
soon as possible.
Very truly yours,

J. H. Riddle
beoretary, Committee on Branoh,
Group and Chain Banking.
'rte.
v,1

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Federal Reserve Bank of St. Louis

June 8, 1931

Mr. S. G. Sargent
Assistant Federal Reserve Agent
Pecit,ral Reserve Bank
San Francisco, California
Dear Mr. Sargent:

acknowledge with thanks your letter of June 3rd enclosing the schedules prepared by the State Banking Department
of Oregon covering bank changes on Forms A-2, A-3, A-4, and A-5,
and also classifying banks on Forms 3-3, 3-4, 3-5, 3-6, 3-8, and
B-9.
Vie also note that you have reimbursed the Department
the preparatiol, of these forms, and
for $79.50, charges
will refer this charge to the ComAttee later.
Very truly yours,

J. B. Riddle
Secretary, Coutaittee 0.
Group and Chain Banking.

•
FEDERAL RESERVE BANK OF SA.N FRAN-CISCO
IsAAc B. NEWTON
CHAIRMAN OF IHE BOARD
AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

June 3, 1931

Attention: J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.
Dear Sirs:
There are enclosed schedules prepared by the State Banking
Department of Oregon covering the years of 1921 to 1930, inclusive,
as follows:
Form A2 with supporting schedules Form A3
Form A4 with supporting schedules Form A5
Forms B3, B4, B5, B6, B8, and B9.
v.e believe that the forms will be found in order with possibly
two exceptions.
It will be noted that under suspensions they made
out Form A3 for one bank each in 1921 and 1922 which suspended and
reopened within the sixty days provided by law.
They report no increase or decrease in these instances and they do not appear in Form
A2.
It has occurred to us that they should have been reported as
suspensions and then again as reopenings which, of course, would make
no difference in the final figures.
The Department has billed us for preparing these schedules in
the amount of V79.50 which we are paying and will forward to you for
reimbursement later.
A copy of the Department's letter of transmittal is enclosed
inasmuch as it explains the manner in which forms have been prepared.

This completes all of the studies which we have been making
for the Committee.
If it desires any further information or explanations we shall be glad to comply.

Assistan

Federal Reserve %ard,
Washington,
D. C.

SAR
eral

ve Agent.

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Federal Reserve Bank of St. Louis

June 3, 1931

Ir. S. C. Sargent
Assistant Federal **serve Agent
Federal Reserve Bank
San Francisco, California
Dear Mr. Sargent:
Your letter of May 27th enclosing
sc,1,=!uThs on Idaho banks was duly received.
ached lea against the suspension records of
OperAions and find the following banks for
received.
Name and Looation of Bank
Bruneau State Bank
Bruneau
State Bank of looskia
Iooskia
State Bank of Peck
Peak
Anderson Bros. Bank
Rigby

forty-thre-J suspens
We have checked the
the Division of Bank
whieh no reports were

Closed Reopened
5- 7-21
4- 9-21
4- 9-21 9-9-21
8-25-21

Will you kindly ask the State Bank Commissioner to supply schedules
on these banks or to explain in each case why the bank is not properly considered a suspension within the terms of the Committee's
definition?
The Idaho sehedules and the memorandum which accompanied
them are very satisfactory except that there is no explanation as to
what is represented ay preferred claims. 4111 you kindly make inquiry regarding this point? IS shall be glad if you will express
our appreciation to the new Commissioner of Banking for his cooperation in sup2lying this material.
Very truly yours,

J. R. Riddle
Secretary, Committee on Branch,
Group and Chain Banking

FEDERAL RESERVE BANK OF SAN FRANCISCO
IsAAc B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE

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Federal Reserve Bank of St. Louis

AGENT

June 6, 1931

Attention: J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.
Dear Sirs:
Replying to your letter of June 2 beg to state that the
schedules covering bank changes for the State of Oregon were
forwarded to you on June 3.

I am sorry that there has been such

a long delay in completing this work, but it seemed we were unable
to get results through correspondence.

I finally 'lad to make a

trip to Oregon and Viashington to get the schedules completed.
Yours ve

Assistant F

Federal Reserve board,
Viashington,
D. C.

1 Rese

Agent.

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Federal Reserve Bank of St. Louis

June 2, 1931

Mr. S. G. Sargent
Assistant Federal iteserve Agent
Federal Reserve Bank
San Frelicisco, California
Dear Mr. Sargent:
Our returils on the study of bank charges which are being
reported on Forms A-2 and A-3 are oomplete for your district with
the exception of the state of Oregon.
In his letter to you on January 6, Mr. :Ahramm of the
Oreon State Banking DeparLalent asked if it would be satisfactory
if the data on Oregon could be sent in by him in approximately
ty days from that tiale. Inasmuch as the sixty days were up almost
three months ago we wonder if the material may not be exprcted very
shortly. There are only three or four states in the country whose
returns are now delaying th, completion of this ney.t of the 00Mmittee's work and we are naturally anxious to close it up as soon
as possible.
Likewise we he.ve not yet receive(... for Oregon the data
reluested on the B forms and would appreciate anything you could
do to expedite its collection.
Very truly yours,

J. H. :11:Adle
Secretary, Committee on Branch,
Group and Chain Banking.

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Federal Reserve Bank of St. Louis

i,lay 25, 1931

11r. G. G. ::argent
kselstant Federal I3eserve Agent
Federal Reserve BanlSan Francisco, California
Dear Mr. Sargent:
Receipt is acknowledged of your letter of Lay
19th enclosing Forms A-2, 3, 4, and 5, and also Forms
B-3, 4, 5, S, 8, and 9, for the ::tate of "TailinE'ston.

7ery truly yours,

J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.

•

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

May 19, 1931

Attention: J. H. Riddle, Secretary, Committee on
Branch, Group, and Chain Banking.
Dear Sirs:
There are enclosed the following schedules for the State
of Washington:
-7

Forms A-2, 3,

4, and 5,

Forms B-3, 4, 5, 6, 8, and 9.
These schedules have been carefully checked and agree with
the total number of banks at the beginning of the period and the
total number at the close of the period.
Yourfil

Assistan

Federal Reserve tioard,
Washington,
D. C.

Fed

truly,

ARGENT
Reserve Agent.

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Federal Reserve Bank of St. Louis

May a2. 1931

Kr. S. G. Sargent
Assistant Federal Reserve Agent
Federal Reserve Bank
San Francis(w, aEtlifornia
Dear 7,f.
In accordance .rdLh the rec.ueE-t contained in
your telegram of Lay 22nd ,.,1) are onoleing for your use
25 additional copies

the schr.dule on bank suspensions.
very t7uly yours,

c. H. Riddle
Secretary, Comlittee on Branch,
Iro-ln aiv9 Chr.th Banking.

iiELEGRAM

•

FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)

RECEIVED AT WASHINGTON, D. C.

203gb

Sanfrancisco 1201p May 22

E Riddle
Board Washn

Please send us twenty five blanks upon which to report bank
suspensions since January first nineteen twenty one

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Federal Reserve Bank of St. Louis

Sargent
309p

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Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK OF SAN FRANCISCO
WILy 15, 191

Mr. J. H. Riddle,
Federal Reserve Board,
hashington, D. C.

Dear Mr. Riddle:

In the absence of Mr. Clerk, I want to
acknowledge receipt of your letter of May 12th with the
enclosure of Part 1 of the "Hearings before the SubCommittee of the Senate Committee on Banking and Currency."

Very truly yours

Deputy Govern/..\N

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Federal Reserve Bank of St. Louis

Lay 8, 1931

Mr. S. G. Sar7ent
Assistant Federal Reserve rent
Federal Reserve Bank
San pr.ancisco, California
'err

_qrgent!
Your letter of May 4th enclosing schedules on

three Utah banks which suspended operation during the last
half of 1930 waE duly received.

According to our records

the addition of these crtses completes the suspersion reports for the State of Utah for the ,--ntire period 19,11930 inclusive.
Very truly yours,

J. H. Riddle
Secretary, Committee on Brnnch,
Group and nain Banking.

ki•
FEDERAL RES EIZVE 137&NK OF SAN FRANCISCO
I SAAC

B. N EWTO N

CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

May 2, 1931

Mr. X. H. Riddle,
Secretary, Committee on Branch,
Group and Chain Banking,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Riddle:
In accordance with the request in your letter of April 25 we
have carefully re-checked tables I-e, II-e,
IV-e, and V-e as to
the number of banks in each of the size-groups and have failed to
cover any errors in our copies of the data already sent to you. It is
possible that your tables contained some errors which we failed to locate, inasmuch as the tables were typed twice in order to obtain a sufficient number of copies, and we do not know whether our file copy is a
carbon of the set sent you.
With reference to the errors which you mentioned, we are enclosing copies of table I-e for Washington in 1927 and Oregon in 1928.
These tables are duplicates of those in our files and check exactly
with the respective V-e tables. Table I-e for Washington was revised
and a copy sent you on February 3. It is possible that the revisions
made on the copy sent you were incorrect and if so the enclosed table
should be substituted. If after examination of the accompanying tables
you still find discrepancies, please let us know specifically of the
errors and we Shall do our best to correct them.
In addition to re-checking all of the tables as to the number
of banks, we have also re-checked all of the figures in the last column of all copies of tables IV-e and V-e since receiving your letter.
This re-checking uncovered the following inaccuracies which you have
probably already found and corrected.
1930
California, IV-e, all groups - averages from Nb. 1 to No. 19, inclusive, decimal point should be moved one point to the left.
1929
California, V-e, all groups - total should read 5,291.81 instead of
2,291.81.
1926
Utah, V-e, all groups - average No. 24 Should read 41.20 instead of
411.95.
Idaho, IV-e, all groups - totals and averages for No. 9 and No. 19
ehould be in red.

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Federal Reserve Bank of St. Louis

•
Mr. X. H. Riddle - Page 2

Before tables IV-e and V-e were sent to you, they were crossadded within themselves and cross-checked against each type of table in
the study having figures which permitted comparison. We feel therefore
that although SOMB errors may appear in the tables, disparities which
might be discovered from cross-checking within or between tables should
be few in number. We urge you, however, to check all of the figures
thoroughly and to notify us of any additional errors you may find.

Yours very truly,
ISAAC B. NEWTON,
Chairman of the Board and
Federal Reserve Agent,

BY
OLIVER P. WHEELER,
Assistant Federal Reserve Agent
Enclosures

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Federal Reserve Bank of St. Louis

April 23, 19;3

Ur. itiatIO B. Neloton
Federal Reserve Agent
Federal Reserve Bank
San Francisoo, California
Dear Mr. Newton:
In ooralection with making coMbinations for the eacilings
project wit:1 rospect to Tables I-a, II-e, IV-e, and 1N.e, we fiad
that in the oases of particular states the numbers of banks in
respective profits grcips do not agree when comparing Tables I.e,
II-e and lYe. Also in 801114- oases the nuMbers of banks in size
groups do not agree in owaparing Tables I-e and V-e.
With respect to the sheets sent from your district, we
have found that Tablas I-e and 7-e do not agree for Washington
in 1927. For Oregon in 1928 the subgroups in Table I-e do not
add to the numbers fAven on Table 7-e for that state.
Please maks a comparison for all the various 'Gables
neoemsary revisions
eaoh year and send us
for each
to maks them reconcile. Inasmuch as Table V, for example, was
probably oompiled subsequent to Table I, ve are in hopes that yam
may be abla to send us revised Table I shilik will accomplish thi
reconciliation and that it mill be unnecessary to disturb Table
V, which represents small the greater volume of work.

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Federal Reserve Bank of St. Louis

Very truly yours,

J. H. addle
Secretary, Committee on Branch,
Group and Chain Banking

4•

Form 148

TELEGRAM
FEDERAL RESERVE BOARD
LEASED WIRE SERVICE
WASHING -TON

April

2-9464

19?1

3srent, 'Asn ?ranci62,
Dir-ctions of 00.3is1ttto conLuined in our letter of .eptember 12th
reeine5t inforwItIon only - a to azatunts of depositors° olaLA az. payzents
tly.reon, ,,atiLfaltory to clIsregar-a rollsoonnt and bills !)ayttble
':o7ever if Idalo law reco•-nises statutory priority of different types of
de.)osits, these should be dist int-lashed as secured., preferreo, or rm neral
Rs providrd for on buisponsion sohedAle.

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Federal Reserve Bank of St. Louis

GDL111111`EIFE-1

OELEGRAM
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)

WASHINGTON. D. C.

Sanfrancisco Apl 24REfftFEOrt_ T
Goldenweiser
.'7ashn
In preparation balik'suspensions schedules Idaho banking commissioner
In liquidating Idaho state banks
raises 1nterest-111g point.
depositors given preferred claim. Inas much therefore as indebtness for rediscounts and bills payable has no opportunity to
participate in dividends and inasmuch also as collateral invariably
insufficient to liquidate indebtedness, department, in absence
of knowledge as to extent of collections made by banks creditor,
disregards such indebtedness and maintalns no record of liquidation
In view of this pmxt point commissioner asks how
thereof.
these transactions shown in schedules which
wishes
committee
completion
approaching
are now

IL. O. 0-6,NWM11111 Immure INTO.: Ionia

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Federal Reserve Bank of St. Louis

Sargent
•

03A13331:1

150p

11061

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Federal Reserve Bank of St. Louis

April 23, 1931.

Ur. E. G. Sargent
Assistant Federal 2eserve Agent
Federal Reserve Bank
an Francisco, Jalifornia
Dear lir. Sargent:
Since the receipt of your letter of Karoh 11th
enclosing correspondence bearing on your many attempts to
secure schedules on state bank suspension* in Idnho, we
have hnd no report as to when this data will be available
to us. _e should greatly appreciate knowing whether the
new Commissioner of Finance has seen fit to cooperate
with the Committee and what proress is being made on the
work.
It would be helpful also to know whether the
schedules covering state bank suspensions in Utah during
the last h!=lf of 1930 may be expected soon.
Tory truly yours,

J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.

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Federal Reserve Bank of St. Louis

April 22, 1931

Nr. Oliver P. Wheeler
Assistant Federal Reserve Agent
Federsl Reserve Bank
San Francisco, California
Dear Mr. ;heeler:
We acknowledge Nith t'winks your letter of April
1.;;;th encl3airg TableE I-e, II-e,
-nk
Lae bs.

I7-e, and 1-e of

arnings project for the jear 1930.
Iery truly youra,

j. H. Riddle
Secretary, Committee on iranch,
Groan and Chain Bankin.

fl•

'•
FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD

April 15, 1931

AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

W. I. H. Riddle, Secretary,
Committee on Branch, Group, and
Chain Banking,
Federal Reserve Board,
Washington, D. C.
Dear Ur. Riddle:
As requested in your letter of January
are enclosing Tables I-e, II-e,

16, we

IV-e, and '11"-e of the

bank earnings and expenses project for 1930.

Yours very truly,

OLIvER P. WHEEZER,
Assistant Federal Reserve Agent.
Enclosures

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Federal Reserve Bank of St. Louis

April 22, 1931

Mr. S. G. Sargent
Assistant Federal Reserve Agent
Federal Reserve Bank
San Francisco, California
Dear Mr. Sargent:
, Thank you for your letter of April 18th
with the very interesting chart shoving the development of the Bank of America National Trust and Savings
Association.
Very truly yours,

J. H. Riddle
Secretary, Committee
Group and Chain Banking.

RAI

•
FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAiRMAN

THE BOARD

AND FEDERAL RESERVE AGENT

April 18, 1931

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Federal Reserve Bank of St. Louis

Attention: J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.
Dear Sirs:
In Making up the California schedules covering bank
changes during the past ten years we were confronted by many
One that was particomplicated mergers and consolidations.
cularly complicated was the principal units that were combined
to form the Bank of America National Trust and Savings AssociaI thought you might be interested in the enclosed chart
tion.
covering the formation of this bank.
Yours very truly,

S.
Assistant Fe.

Federal Reserve Board,
ffashington,
D. C.

4d3

'ENT
I Reserve Agent.

AMON.

April 13, 1931.

Mr. 6. G. :Argent
Azsistant Federal Reserve Agent
2eueral eserve 3ank
San Francisco, California
Dear Lir. 6argent:
Your letter of April the 9th with the corrected summary
b just been received.
Your telegram
of Jalifornia bank chances
of April 3rd came at practically the same time as your letter of
Y- rch 316t and we have held both in anticipation of the letter
that came this :norning. This will consequently acknoglcdge all
three.
greatly appreciate the care you have taken to put
the statistical analzrsis of California state bank changes in
such pod shape. The experience in California was particularly
interesting to the Committee for the very reason that bank consolidation has gone on there so rapidly. We reali:-.e, of course,
that the very condition that Aade the histDry interesting also
made it all the more difficult for ,you to farnish satisfactory
figures. nth the records and comments that you have sent us
now, however, thee should be no further ob:Aacle in the way of
our usin the summary.

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Federal Reserve Bank of St. Louis

Very truly yours,

C. B. Hammond
For tae Committee on 3ranch,
Iroup and Chain 3anking.
14-

•

ti•
FEDERAL RESEIWE BANK OF SAN

If1i

IsAAc B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

April 9, 1931

Federal Reserve Board,
Washington,
D. C.
Attention Mr. C. B. Hammond for the
Committee on Brancha Group and Chain Bankin,E.
Dear Sirs:
Receipt is acknowledged of your
adjustment of the number of liquidations
the circumstances, it seems that this is
I feel that it will result in no serious

letter of April 4, and your arbitrary
and suspensions is noted.
Under
the only way to handle the matter, and
inaccuracies.

As stated in my telegram of April 3 to Mr. Riddle, we have been making a recheck of Examiner Swengel's schedules and are able to report several
additional changes.
Information was available to us which was not available
to Examiner Swengel, and we had the advantage of his schedules.
With the asI
III
sistance •I two ii
young ladies who have beenI in our department for more
than
ten
years, I have given this matter my personal and almost undivided attention
during the past ten days.
In
first
, we secured a list of the reI!
porting banks as of December 31, -.20 and placeIa similar
list as of December 31, 1930.
Checking one list against the other, we found that many banks had changed their
names and were still in existence, some had been moved from one town to another,
and others had been organized and gone out of existence during the period. With
a personal knowledge of some of these transactions and with the assistance of
our card records of branch expansion, we were able to trace most of these banks
through their many changes.
Some of them were very complicated as you will
see from the notations which I have made on the lists.
Taking the State Department's list as of December 31, 1920 showing 424
banks and deducting two not to be included in the study, left us 4422 banks to
start the period with.
We then took Examiner Swengel's Form A-2 and added the
additional consolidations, liquidations, primary organizations, and conversions
which were disclosed by our recheck •of available records, and ended the period
December 31, 1930, with 221 banks, which agrees with the State epartment's list
II
DI
of that date, deducting three banks which were not financial
institutions to be
ExaminI II
included in this study.
You will find enclosed a reconstructed Form A-21 the
black figures representing the schedule as onally submitted by
er
The changes are as
Swengel and the red figures as corrected after our recheck.
follows: Dinuba Savings Bank (1922) and Hellman Commercial Trust and Savings
Bank, Los Angeles (1926), originally reported as conversions, changed to consolidations; 14 additional consolidations; 5 additional liquidations; 9 primary
You will note that I have made no distincorganizations; and 14 conversions.
tion between suspensions and liquidations, listing all of them under the latter

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Federal Reserve Bank of St. Louis

4
FEDERAL RESERVE BANK OF SAN FRANCI

heading.

•

Arbitrary adjustments can be made as suggested in your letter.

For your information and records, you will find the following encloreconstructed
Form A-2 supported by Forms A-3, covering 14 consolidasures:5
tions,
liquidations, 9 primary organizations, and 14 conversions; also a
list of reporting California State banks on December 31, 1920 and a similar
list as of December 31, 1930.
I am very sorry that there has been so much confusion in preparing
these schedules, but we have done our best with the available information.
No doubt there are still some errors and omissions, but Form A-2 is now in
balance and errors which might exist counterbalance one another.
However,
I believe that the reports are now sufficiently accurate for the purpose.

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Federal Reserve Bank of St. Louis

Yours very truly,

eral Reserve Agent.

IPELEGRAM

•

FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)

RECEIVED AT WASHINGTON.

09,

200gy
/43P
/
00
Yr
4
4
"
i,
s4

Sanfrancisco Apr 3, 159p

k
.0

fr4ePeS (j/
61%00/
'iiddle care Board
Washn

Referring our letter March 28 and 31

A recheck of the celifornia

banks which we are making promises to develo+dditional information
will forward as soon as completed
Sargent

541p

•D. 041••••11•161, P•Mftle• 0•711,11: 1.011.

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Federal Reserve Bank of St. Louis

•
FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD

March

AND FEDERAL RESERVE AGENT

31, 1931

Attention: J. H. Riddle, Secretary,
Committee on Branch, Group, and Chain Banking.

Dear Sirs:
Since writing you on March 28 enclosing reconstructed Form A-2 for
the State of California, I have received a letter from Examiner Swengel, a
copy of which is enclosed for your information.
It will be noted from this letter and from the accompanying schedule of changes for
that the Bank of Hollywood, Los Angeles, Belvedere
State Bank, Los Angeles, and the Bank of Oakley, which were extinguished
Also the First State Bank of
liquidations, were omitted from our schedules.
was omitted from the primary organHuntington Beach, organized July
izations.

1930

5, 1930,

You will also note from Mr. Swengells letter that the Pan-American
should be
Bank of Los Angeles, reported as having been liquidated in
These changes will increase
reported as having been liquidated in
us at the beginning of
two the difference in the number of banks listed
1921 and the number reported by the State Banking Department in its published
abstract.

1930,

1929.

I regret very much that these changes were overlooked in my report
a few days ago and trust that their omission has not caused you any undue inconvenience.

Yours very_ftruly,

/7
/_<
Assista

G. S
Federal

Federal Reserve Board,
Washington,
D. C.

Ife

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sr
Federal Reserve Bank of St. Louis

EPF).
serve Agent.

April 4, 1931.

Ur. S. G. Sargent
Assistant Federal Reserve Agent
Federal Reserve Bank
San Francisco, California
Dear Mr. Sargent:
Ve are in receipt of your letter of March 28th in which adjustments are made in the figures originally reported on bank changes in California and thank you very much for it.
We are glad particularly to hove your explanation of what happered in the case of the Jank of Lemoore, for your account of it is more
• complete than what we had.
We are also interested in the expinnation that is offered in
Swengel's letter as to the reason for not including saspensions and
reopenines. The facts with respect to the California law can not be
suestioned, but we do not feel that the statistics, merely in deference
to a legal technicality, should show no susnensions in California when
on the basis of classification used in other states there were suspensions there. We have accordingly altered the fires reported by you
on Form A-2 by inserting for the appropriate years the number of suspensions and reopenings indicated by the suspension schedules which you
had already sent us. Following the explanation given in Mr. avengelts
letter thnt a suspension under California law must be either a liquidation or a consolidation we have made the adjustments which these inserted suspensions required by makinF a corresponding deduction from
what you rEelorted as liquidations. In cases where the number of liquidations did not elual the number of suspensions, we made a deduction
from the number of consolidations.
For instance, in the year 1930 the suspension schedules
accounted for five bank suspensions in California. Your returns on
A-2, however, showed only three liluidations, so that when these three
were cancelled out there still remained an adjustment of two to be
made. The number of consolidations wns accordingly reduced from seven
to five so that the total changes remained unaltered.
This Is arbitrary, as we realize,and is not necessarily In
accord with the facts, but we assume from our readine of your letter
that it must be eubstantialla in accord with them. If you feel that

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Federal Reserve Bank of St. Louis

.Ir. S. I. Sargent #2

April 4, 1931.

our changes introduce any serious inaccuracy in the f177ures, however,
we should be glad to have you inform us.
To make our point of view clearer of entering upon Form A-2
those susoensions and reopenings that were repooted on your suspensions
schedules previously forwarded to us, re7,ardless of the fact that the
California law appears not to recognize a suspension as such, we -ish to
refer you again to the first paragraph of our memorandum "Bank Changes-Definition of Terms," November 5, 1930. In this paragranh we point out
the necessity :or statistical ourposes of disregarding certain legal
distinctions. We nsalize that the difficulty in getting the California
figures in satisfactory shape is due to the unsatisfactory condition of
the records as you have explained, and we appreciate very much what you
have done under such exigent conditions to give us adeluate figures.
Very truly yours,

C. B. Hammond
For the Committee on Branch,
Group and Chain Banking.

a41/04

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Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

March 28, 1931

Attention:

J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.

Dear Sirs:
This is in reference to your letter of March 18 regarding the forms
covering bank changes in active state banks in California since 1920.
While we were aware of the fact that it was necessary to include conversions in order to reflect all of the changes in the number of banks, we
gathered from the reading of instructions that it was your intention to record them in a final summary at Washington.
Quoted from the instructions
in part is the following:
"Conversions of state and national banks
likewise need not be reported on this form
because they have already been listed in the
study on national bank changes."
It is obvious to us now that Form A-3 was the one referred to and not Form
A-2.
We regret very much that we were unable to reconcile the number of
banks at the close of each year with the number reported by the State Banking Department, yet we feel that we have done remarkably well considering
the available records.
We had absolutely nothing to work with except the
annual reports of the State Banking Department, practically all of the records having been destroyed.
In many cases changes did not show in the
reports and we were able to include them only because of the fact that we
happened to have personal knowledge of what had taken place.
No doubt many
changes were overlooked which accounts for the difference in the number of
banks shown at the end of each year.
Referring to the Bank of Lemoore, you stated that it was not converted
into the Bank of Lemoore but continued in existence until the year 1927 when
it was consolidated with the First National Bank of Lemoore.
Mr. Swengells
report showeiit as having converted to the National Bank of Lemoore in 1922.
Upon searching the records at the Department's offices yesterday we find that

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Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK OF SAN FRANCS

•

the Bank of Lemoore was organized December 31, 1891 and was converted into
the National Bank of Lemoore on March 1, 1922.
Two months later, on April 28,
1922, the National Bank of Lemoore consolidated with the First National Bank
of Lemoore under the name of the latter.
A month later, on May 25, 1922,
the State Banking Department issued a new charter under the same name, Bank of
Lemoore, which took over the savings deposits of the First National Bank of
Lemoore.
This bank (the second Bank of Lemoore) was merged with the First
National Bank of Lemoore on April 18, 1927.
The State Banking Department's abstract shows 224 state banks on December 31, 1930.
We have made a very careful check of this list and find that
three banks should be eliminated from this study, if we have interpreted the
instructions correctly.
They are the Hibernia Savings and Loan Society,
(a mutual savings bank) the General Motors Acceptance Corporation, San Francisco office, and the General Motors Acceptance Corporation, Los Angeles office.
The latter two,not falling properly in the classification as banks, are considered
by us as "other financial institutions."
This leaves a total of 221 banks at
the end of 1930.
I have, therefore, reconstructed Form A-2, using 221 banks at the close
of 1930 and working backwards.
I have added the fourteen conversions (from state
to national) reported by the CommitLee, have changed the conversions of the
Dinuba Savings Bank and the Los Angeles Hellman Connercial Trust and Savings Bank
in 1922 and 1926, respectively, to "consolidations" and have added the conversion of the Bank of Lemoore (second charter-same name) whici took place in 1927.
With a copy of this reconstructed Form A-2 I am enclosing a schedule of
the number of state banks in California at the close of each year since 1920, as
reported by the State Banking Department's abstract, as reported by Examiner
Swengel on our original Form A-2, and as reported in the reconstructed copy of
Form A-2.
You will also find enclosed Form A-3 reporting the consolidation of the
Bank of Lemoore (second charter) with the First National Bank of Lemoore in
1927.
It appears that this should be included, inasmuch as the Bank of Lemoore
(second charter) was reported as a preliminary organization in 1922.
Copy of a letter from Examiner Swengel dated March 26 which is enclosed
discloses some of the difficulties under which we have been laboring.
Trusting that this information will be of some assistance to the Committee
and regreUing our inability to furnish more detailed and accurate data, I am
Yours v

(( I.
Assistant F
Federal Reserve Board,
Washington,
D. C.

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Federal Reserve Bank of St. Louis

truly,

G. S
ral Reserve Agent.

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Federal Reserve Bank of St. Louis

lal_rch 3, 1:-51.

Sargent
11r.
l Reserve Agent
ftdera
Assistant
Federal Reserve &ink
5ar Francisoo, California.
Dear gr. Sargent:
On forms 3-3, B-4, aryl B-8 shoving the number
of *ctive banks in 3slifornia, you report 417 as the totLil
number of active state banks on June 30, 1920. The neventh ;,nnual Report of the 'tiocirintendent of Banks of :Ialifornia (page 27) gives 420 as the total number of state
tynks in operation on June 30, 1920.
This cixTerenc i small but 7ve should apnreciate your giving us R basis for reconciling these two
numbers.
Very truly yours,

J. H. Addle
Secretary, :;ommittL IL
Group and onuin 3anking.

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Federal Reserve Bank of St. Louis

February 24, 1931.

Ir. S. G. Sargent,
Assistant Federal Reserve Agent,
Federal Reserve 3ank of an Francisco,
San Francisco, California.
lear

argent:
Receipt is mcknowledged of yollr letter of

February 19th enclosing forms A-2, A-3, A-4, A-5, B-3,
B-4, B-5, 13-6, 3-8 and B-9, givin

information recuested

by the ',3olimittee on Branch, Group and Chain Banking for
the state of California.
Very truly yours,

J. K. Riddle
Secretary, Comnittee 011 iiranch,
Group and Chain Barking.

Karch 31, 1931.

Xr. 3. G. 3arent
Assistant Federal Reserve Agent
Federal Reserve 3ank
2rancisco, California
Dear lir. Sargent:
This will cknowledge with thanks your letter of !:.nrch
25th enclosing Forms A-2, A-3, A-4, A-5, 3-3, 3-4, 3-5, 3-6, 8-8,
and 3-9, for banks in Utah.
ye note the corrections you hare ado in those forms
after Owr were submitted to you and thank you for this attention.
Te also note that 7o-1 say the Utah State Banking Department 11FI rendered you a bill for 3C) for the compilation
of this material. InaeAuch as you sneak in another letter of
waiting for the return of a receinted bill from the state of
:Aaho for the same nurnose, we presume that you do not mean
for us to reimburse you for these amounts separately but that
you will accumulate them and be reimbursed for sever,41 or all
at once. If this is not your desire, however, please let us
know.

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Federal Reserve Bank of St. Louis

Very truly yours,

C. B. Hamond
For the Conmittee on Branch,
Group and Chain Banking.

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

March 25, 1931

Attention:

J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.

Dear Sirs:

4/
/7 •

We are enclosing Forms A-2, A-3, A-4, A-5, 5-3, B-4, B-5,
B-6, B-8,, and B-9, giving information requested by the Committee
on Branch, Group, and Chain Banking for the State of Utah.
We have checked Forms A-3 with available records and find
On July 30, 1925, the Commercial
them correct with one exception.
Security Bank of Ogden was organized to take over the Security State
The Utah
Sank and the Commercial National Bank, both of Ogden.
Department has reported this as a primary organization and has reported the Security State Bank and the Commercial National Bank as having been consolidated, with a decrease of one in the number of state
banks.
ve have corrected the forms accordingly, which makes no
Form A-2 is supported by Forms A-3
change in the number of banks.
and shows 82 banks at the close of 1930, which is correct according to
our records and those of the State Banking Department.
Utah's Form A-2 which you filled out with respect to national
banksI shows that in 1922 the First National Bank of Beaver City was conThis was
verted into the State Bank of Beaver County, Beaver City.
not a conversion inasmuch as the State Bank of Beaver County was organized in 1905 and has been in existence ever since without change of name
or charter.
The Utah State Banking Department has rendered us a bill of $30
for the compilation of this information.
Trusting that these forms will be found in order, I am
Yours o
voe

Assistant

Federal Reserve Board,
Washington,
D. C.

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Federal Reserve Bank of St. Louis

SARGRIT
deral Reserve Agent.

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Federal Reserve Bank of St. Louis

March 31, 1931.

lir. S. G. Sargent
Assistant Federal aeserve Agent
Federal Reserve Bank
San Francisco, California
Dear hr.

argent:
Thank you very much for the Forms A-2 and

for the state of Arizona which you returned with your letter of March 24th.

Under the circumstances it seems better

for you to have ma:e the ndjusments you have in the figures
rsthc,r than to h-re returned tha4 to the Arizona Banking
Department.
Very truly yours,

B. Hannond
For the Co:awittee on Branch,
Group and Chain Banking.

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEwToN
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

March 24, 1931

Attention:

J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.

Dear Sirs:
Receipt is acknowledged of your letter of March 18 returning Forms
A-2 and A-3 for the State of Arizona because the figures entered on the summary
(Form A-2) were not supported by the detailed sheets (Form A-3).
These schedules were prepared by the ArizDna Banking Department and, inasmuch as we had no accurate way of checking them, they were forwarded as received
in this office.
As you know, they were obtained after several months of correspondence and I feel that it would be useless to return them for correction. Although the annual reports of the Arizona Department are very incomplete, and in
some instances do not even report primary organizations, we have been able to
obtain from them, together with an abstract published following the official calls,
sufficient information to complete the forms and believe they are now correct. At
least, Form A-2 is in balance and is supported by Form-IA-3.
According to the
Department's abstract there were 28 banks in operation on December 31, 1930.
From the annual reports and abstracts which give a list of the reporting
banks at the time of each call, we found four banks which were organized during
the ten-year period and which were not reported by the Superintendent of Banks.
They are:
The Farmers State Bank, Scottsdale, organized sometime between the calls
of December 29, 1930, and February 21, 1921.
The Cooperative Bank & Trust Company, Tucson, organized February 1, 1921.
The Copper Cities Bank, Globe, organized sometime between the calls of
June 30, 1924, and October 10, 1924.
The Arizona bouthaest Bank, lucson, organized sometime between the calls
of June 30, 1926, and December 31, 1926.
With the addition of these four primary organizations and the correction
of several of the other forms from information obtained from the annual reports,
Form A-2 appears to be in balance and is returned herewith, together with the supporting schedules.
As soon as the Oregon and Washington reports are received they will be
carefully checked with such records as are available before forwarding.
Yours very tr

Federal Reserve Board,
Washington, D. C.

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Federal Reserve Bank of St. Louis

Ass].

Feder'

Reserve Agent.

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Federal Reserve Bank of St. Louis

:11nroll 30, 1931.

Ur. S. G. Sargent
Assistant Federal Reserve Agent
Federal Reserve Bank
San Francisco, Oalifornia
Dear Mr. Sargent:
This will acknowledge -vith thanks your letter of
ire turned
March 25th with its enclosure of the questionna
n of ?ortland,
in by the United States National corporatio
Oregon.
Very truly yours,

C. B. Hammond
For the Committee on Branch,
Group and Chain Banking.

•
FEliERAL RESERVE

BANK OF SAN

FRANCISCO

ISAAC B. NEWTON
CHAiRMAN OF THE BOARD

March 25, 1931

AND FEDERAL RESERVE AGENT

Dear Sir:
In responap to the Board's letter of July 18, 1930, enclosing schedules for collecting information regarding the operations of group banking systems, please find enclosed a report of
the United States National Corporation of Portland, Oregon.

Yours very -4uly,

Assistant

Mr. J. H. Riddle,
Secretary, Committee on Branch,
Group and Chain Banking,
Federal Reserve Board,
Washington, D. C.

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Federal Reserve Bank of St. Louis

SAR
eral Re

e Agent.

Lacch 30, 1931.

Ur. S. G. Fargent
Assistant Federal Reserve Agent
Federal Reserve Bank
an Francisco, cialifornia
Dear Lc. Zargent:
1:e vcknowledge Tith thanks your lettnr of Karch
24th enclosing form 8-8 reporting the number of active state
barks in Idaho claEsified according to size of community in
which located.

We note that there will be a charge of 425

made for the ureparation of thiS table.
7ery truly yours,

C. 3. Hammond
For the Committee on Branch,
Group and Chain Banking.

C i4

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Federal Reserve Bank of St. Louis

•
FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

March

24, 1931

Attention: J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.
Dear Sirs:
There is enclosed Form B-8 reporting the number of active
state banks in Idaho classified according to size of community in
which located.
For the preparation of this schedule the Banking Department
charged us

$25

which we are paying and will forward for reimburse—

ment as soon as it is returned properly receipted.

Assistant Fed

Federal Reserve Board,
Washington,
D. C.

eserve Agent.

.ti.t2,rch 18, 1961
G. Sargent
Assistant Federal isserve Agent
i'ederal Reservo .-.4.011: of San Froisco
San Fr:noisoo, California
)ear 1,1r. Sargent:
In your letter of February 19 you enclosed Forms
A-,
L-4, A-5, and
B-4, B-5„ B-G, B-8, and B-9, dovoring bank changes
in active state banks of California sines 1920, and classification of
txtive banks 1- UtlifOrnia by site.
acknowledced these forms in
our letter of February 24 in advance of our examination of them. :415
have sines take tnem up and find that wo must raise questions about
the figures presented.
Our comment mill relate also to the copy of
Henry D.
._.vngeles lett:: of February 11 to Mr. Sargent exTlaining the conditions under which the summaries mere prepared and tie procedure followed. We not '...11A the imperfect condition of the California records
makes it practieally impossible to get accurate ficures of bank changes
In that state. In addition to this, however, it appears Witt tl-,e
ficulty has beenrnagnified by a failure to understnd our instructions
ana the goners' purrose of the study.
An analysis of the change in the number of state banks must
include conversions and suspensions, and the summary, since It omits
them, is on the faoe of it wrong. It is stated - in the fourth pareL;raph of
E7..encelts letter that he has 'ignored instances where
state cr national banks have merely oonverted from ons to the other
•;:le of charter
are arrilii-lo understand this action,
es2ecially since the fourteen conversions to be included were reported
1:: us .when thc :Aic
!
:;est for tA study yes :Ads. It is true that conversions do not change the total number of banks, but they do change
number uner;r national and state Charter respectively, and must
for that reaaon be reported as well as for their own intrinsic importance. It is even less chow. why the fourteen oonversions referred
to were, omitted, when three other oonversione - which as is explained
below are not conversions ... were included.
These three conversions are under our circular of instructions
of :4ovember 5, 19-AD to be classified as oonsolidations, except in the
case of the Bank of Lomoore. The Bank of Lemoore was not converted to
the National Bank of Lemoore but continued in existence until the year
1927, when it was consoli&tod with the First National Barn: of Lomoore.

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Federal Reserve Bank of St. Louis

S. G. Sargent, d2

Maroh 18, 1931

There was consequently no decrease in ehe numher of state banks and
the National Bank of Lemoore being merely a technical organization,
immediately passed out of existence. Both the Dineba Savings Bank
and the Hellman Commercial Trust & Savings Bank were converted to
national banks incidentally to consolidation, the first consolidating
with the First National Bank of einuba and the second consolidating
with the Merchants National 3a! k of Los Angeles. We have accordingly
reclassified theee chaecele.
No suspensions or reopeniilgs aro en-item:1 on thQ su—nftry it all
althouge there were such ehanges.
Sheets with
In the case of _..rieona we are returnin;
a separate letter because they are either incomplete or incorrect.
In the ease of California we are not returning tee:. 5inoe it appe•s
from the character of the original records that it would be useless
to do so. Jo speak of -t-ds matter, however, beearze it is apparent
that our instructions have not been understood and that, therefore,
since the figures for the states of Ashington aetl. eregen have cot
this letter will afford an opportunity to avoid
yet been sent
similar misconstructions in them.
It appears that it will 5e necessary in the (mile of Califoraia to make an el-bitrary adjustment of the figeroe in order to get
a balance and we shall check them over to this end. It is necessary
tor us to know at least the preseet nualb;r of 1.t.xiks ..nd we shall,
therefore, be obliged if you will give us the nueber of active California state bank es of )ember 31, 1960. 40 iteel(... els° like
whether the errors in the figures for the period as a whole since 1920
are eore apt to ee in the changes eccounted for or lu the number of
banks reported .;e1 of the end of each year. It would seem that the
abstracts of call report6 as of thc: end of each yc. - would give
pretty accurate indication of the actual nueber of banks. If they
endure available, we should like to have the nuel.wi indicated for
each year.
The one thing it is essential to have, however, is the
number of active state eaeks as of Deeember 31, 1r)30.
We are sorry to have to reopen thie eatter, but the fact
that out of the twenty states from which we have heard so far, the
figur3s from California and Arlhoee are the rinse oees that
any difficulty compels 11,15 to beliogs that our instructions
'arm.;ofed
and the general purpose of the study have not been understood. Our
desire is to account statistically for the great degrease in the
number of banks in the country sines 1920 and to determine how important suspensions and consolidations respectively have been in the
change, and also whether the trends of consolidation, suspension and
primary organization are up or down.

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Federal Reserve Bank of St. Louis

S. G. Sargent, j3

3/17A51

shall appreciate it very much, therefore, if you will
furnish us the information asked for in the second paragraph above
with respect to the state of California.
Very truly yours,

J. N. Riddle
Secretary, Com-ittee oa 3ranon,
Group and Chain Banking

p.
FEDERAL RESERVE BANK OF SAN FIAINCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

March 17, 1931

Attention:

J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.

Dear Sirs:
Replying to your letter of March 13 please be advised
that the information concerning the marine Bancorporation of
Seattle was mailed to you under date of March 10, 1931.

There

have been no further developments in the field of group banking
in this District in recent months, so that I have no additional
information to report.
Yours very truly,

J12,a

•

cA 414)
)Ar

Federal Reserve Agent.

Federal Reserve Board,
iiashington,
D. C.

N. •

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Federal Reserve Bank of St. Louis

;arch 16, 1931.

0. G. bargent
.ssistant Federal Reserve Agent
Federal Reserve Bank
'jan Francisco, California
-)ear Mr. jargent:
We have your letter of Larch 11th enclosing correspondence bearing on your many attempts to secure schedules on state bank sus7ensione in Idaho. :2ertalnly ;ca
have done n11 that it is possible to do, and we can only
hone that the new Commissioner of Finance for Idaho will
see fit to cooperate with the Committee in this phase of
its rroort.
Very truly yours,

J. H. Riddle
6ecretary, Committee on 3ranch,
Group and Chair Barking.

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Federal Reserve Bank of St. Louis

Larch 14, 1V31.

;Ir. S. G. 8,rgent
itat7edeml Reserve ....gert
7olern1 71.e se rve Bank
San .•rT4ro 1 c,clo, lallfornia
Dear Mr. z'argent:
-.07:ledged of your letter of
wceipt i
March 10th with the enclosed copy of a, repert from
Tporat I on A' ae at tle, ViaOlington.
;:e are lery gIon to eet this rel)ort. 17
just writter yesterday a lettrr to Mr. Newh1
.
-J
fnet
the possibility of hurrying them up
a3ut
aE41.z.g
ton
little.
a
Ye r truly yours,

J. 11. Riddle
Oecretary, Colaaitt9e on 3ranch,
Gronp spd *min lk-;

FEDERAL RESERVE BANK OF SAN FRANCISCO
iSAAC

B. NEWTON

CHAiRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

March

S31!

VA
Attention:

J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.

Dear Sirs:
Referring again to your letter of July 18th, we are
enclosing copy of a report received from the Marine Bancorporation of Seattle, hashington.
Your

Assistan

Federal Reserve Board,
Washington,
D. C.

. SARG2
ederal Reserve Agent.

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Federal Reserve Bank of St. Louis

Warch 13; 1931.

lar. Isaac 3. Newton
Federal 'eserve hgent
Fedcsral Reserve Bank
San ?rancisco, California
Dear L:r. Eewton:
7e are now reviewing and analyzing the material which
we hove gathered on the subject of ;7roup banicing preparatory to
co:Ipleting at an early date th%t section of the Committee's report. Te should very much like to hie information concerning
the Lirine Bancorporation which did not respond to our questionnaire.
o you think you could press them a little on our behalf?
If there have been any general devel)pments in the
field ;- _f group banking in your district in recent months that
you think would be helpful Dor us to know, we would a ,lpreciate
your writihg us concerning theil.
7ery truly yours,

J. H. aiddle
Secretary, Camnittee on 3ranch,
Group and Chain Banking.

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Federal Reserve Bank of St. Louis

L:arch 10, 1931.

Oliver 7. ;heeler
Assistant Federal neserve .gent
Federal Reserve Bank
San Francisco, lalifornia
Dear :4r. Wheeler:
7;e hnve ,our letter of March 5th enclosing
the forms "Analysis of Bank %arninge, for the 'rears
19-26-1929 co7erinc7 the three national banks in your
district which failed during 1930.
Very truly yours,

J. H. Riddle
jecretary, Committee on Branch,
Group an Chain Banking.

lb•
FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. N EWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

March

5, 1971

Ek.. X. H. Riddle,
Secretary, Committee on Branch,
Group and Chain Banking,
Federal Reserve Board,
Washington, D. C.
Dear W. Riddle:
Enclosed are the forms "Analysis of Bank Earnings"
for the years 1926-1929 covering the three Twelfth District
national banks which failed during 1930.

We regret that

there was some misunderstanding regarding your letter of
February 16 requesting these forms.

Yours very truly,

OLIVER P. WHEELER,
Assistant Federal Reserve Agent.
Enclosures

FEDERAL RESERVE BANK
OF SAN FRANCISCO
ISAAC B_ NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

*trek 9,1931

Mr. 7.B. Riddle, Secretary,
CammIttee on Branch, Group and
Chain Banking,
Federal Reserve Beard,
Washington, D. C.
Dear Mr. Riddle:
As requested In your letter at robruarytztahave investigated
t' of stte
a
the existence of statistics sesserafig the Imo*
beaks
in this district.
SuPervisor of BaskWe fin that is the annual reports \o
ing for the state of Wasidagtea there ate tables showistoaisinge 411 *tate
banks and trust companiesilmii1920 to\ 1929, idiiii.ive. *ills the data for
i. the latersation vihich you
1920 are not in sufficient dtaJl10 p
probably desire, they are quit. th
down for later years.
es /
Thee. data are shoe: in
The State Sapervisor
ass
ed qa to eoppleto SAWN data for the
of Banking in Orepan, has \al
a seadessed stateliest of income for
years 192149294 inclusiviv ea-mlil
IV
losed) Moe! earnings sled expenses of
1916. Ihestilra is (III
all Oregon state beak and truit companies, of which there were 140 in
t condeamed report of the impala
and expenses
1929. There in a
fOC
the
table.
(espies
years 1128 and 1929. Thies
of Idaho state benke
enclosed) are contained in the ireeaty-tifth Annual Report of the Doport•
ment of Finance, Bureau of Nazildsg, of the state of Idaho. There are
apparently no figures available for earlier year* nor for 1.910. WS are
writing to the Bureau of Banking, however, in the hope that these "MUM
are available at least for 1930.
Although inoome and expenses data have beim reported to the State
Banking Department of California for a nuMber of years, reports have never
been prepared chiefly because the amber on the state basking staff vas insufficient for the task. (An experimental report based mpen a few banks in
San Francisco was prepared, but bemuse of the small amber of banks is
considered confidential and not available for nee.)
far as we have been able to discover, there is no published
material on the Lamm aseemats of state banks in Arizona, Nevada, or Utah,
Ne are writing to the lbooking Department in each of these states, however,
in order that we say he (Pertain upon this point.

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Federal Reserve Bank of St. Louis

FEDERAL RESERVE BANK OF SAN FRANCISLO

3. R. Riddle

Except that reserve accounts are combined, all or the condition
figure are svailPble which are necessary for the adaptation of the ear:min!s
and expenses data of Oregon, Washington and Idaho to a study similar to the
one we have been conducting for national banks. The fact that reserves are
not segregated as to reserves for contingencies and reserves for expenses,
co. would detract from the comparability of item"!? ("Capital, Surplus,
krofits, and Reserves - except reserves for expenses) of the study.

!burs very truly,
ZSULC R.
Chairman of, the1-1:
sPd
redo").

• WHFICLER,
I Reserve Agent.

Essaouira

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Federal Reserve Bank of St. Louis

4It

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Federal Reserve Bank of St. Louis

March 6, 1931.

Ur. S. G. Sargent
Assistant Federal Reserve Agent
Federal Reserve 3ank
San Prencisco, California
Dear Mr. 3argent:
Receipt is acknowledged of your letter of
March 2nd enclosing Forms A-2, A-3, A-4, A-5, B-3,
3-4, B-5, 3-6, 5-8 and B-9 giving information reluested by the Committee on Branch, Group and Chain
Banking for the :3tate of Arizona.
Very truly yours,

J. H. Riddle
Secretary, Comtnittee on Branch,
Grow) and Chain Banking.

‘:•
FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

March 2, 1931

76'
A-10
:

Attention:

Mr. J. H. Riddle, Secretary, Branch
Chain and Group Baking.

Dear Sirs:
We are enclosing Forms A-2, A-3, A-4, A-5, 8-3, B-4,
- B-5, B-6, B-8, and B-9 giving information requested by the
Committee on Branch, Group, and Chain Banking, for the State
of Arizona.
Yours very truly,

Assi

Federal Reserve BaIrd,
Was
D. C.

T,
eral Reserve Agent.

•
FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. N EWTON
CHA,RMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

March 11, 1931

Attention:
,

J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.

Dear Sirs:
Receipt is acknowledged of your letter of March 3 in which
you state that Forms B-3, B-4, and B-8, showing the number of active banks in California, report 417 as the total number of active
state banks on June 30, 1920, while the Eleventh Annual Report of
the Superintendent of Banks of California, gives 420 as the total
number of state banks in operation on that date.
A footnote on Forms B-3, B-4, and B-8, reads as follows:
"Including trust companies and stock savings banks and
not including Morris Plan banks,mutual savings banks,
and private banks or other financial institutions."
We assumed the literal meaning of the above quoted instructions and, therefore, omitted from consideration the following
institutions:
Hibernia Savings & Loan Society, San Francisco,
(a mutual savings bank)
The General Motors Acceptance Corporation, San
Francisco office, and
The General Motors Acceptance Corporation, Los
Angeles office.
The lattertwo,not falling properly in the classifications as
banks, were considered by us as "other financial institutions."
Trusting this will give you the information desired, I am
Yours very tr

Assis
Federal Reserve Board,
Washington,
D. C.

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Federal Reserve Bank of St. Louis

ral Re er e Agent.

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Federal Reserve Bank of St. Louis

;larch 3, 1931.

q. Sargent
Mr.
ALsistant Federtil 2eserve Ajent
Federal Reserve Sank
:2w ?rancisco, California.
Dear Kr. Sargent:
On forms 3-3, 3-4, snd 3-8 show1ly7 the nlmber
of actiTe banks in California, you report 417 as the total
number of active state banks on June 30, 1920. The Eleventh Annual Report of the Superintendent of Banks of California (page 27) gives 420 as the total number of state
b nks in operation on June 30, 1920.
This difference is small but ie should appreciate your giving us a basis for r$!conciling these two
numbers.
Very truly yours,

J. H. Riddle
6ecretary, Committee on ..ranch,
Group and Chain 3anking.

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Federal Reserve Bank of St. Louis

Februe.ry 23, 19

Isst,c 3, Neto,
Federel
Ielerel
?a .71 Of S. FranC1300,
Sell Francisco, California
Dear Mr. ATieton:
i -c,j(lot of this
Olommittee„ we tre anxious to be inforkiled as.t 'she existrJecouns or st,te •
ence of stirtIes
banka. Our be.:t informrtion tpr:?rie:t is Crr.t toe stLitn
1-!en17AnT de17,arrt
11P:7,3 collectel le;atisties co-mring
st.. 1)Ctrs
n,7 -or-17°7
very exce:rtional.
excertle,Tcf whic'
knci. Is th,lt of the X8:1..
os.s
te reports of 1,1- 1
cotttimed dstu
yr?..r, or t
oartlAry in zhic!! T":* are
ir4.e:7ostecl.F r t e ttr bas of 7. Ame s information 13
com7ui;ktn or thn
nuw! rrte cc: Ercs
,Arrinzs on irwested cerital,
the re:te of exrenditr(=r fr,r intereFt on d-Iposits, enlaries
other expr.so,
ancl
1:'eser,. In other words,
,,:ilwb17! e-,Nrpr
thr:r,
! is
pr.7ind of time a rather 1.'1271
collsolitod annual incoe account of all the state banks
of Pintas.
140 "should ht ':1 ,-kd if yor will mks r cheek of all
the states whose eapitals lit within your district and describe to us w'mt mtorial, if any, exist-Al in etch with reac(!ounts for ell or
spect to itoms of co:solidated
part of thestrte hirrke! Please ter ur rl; the se time
in what sources such material msy be found.
7sry truly yours,

J. H. rldlle
Secretnry, Co7imittee on Branch,
Group and Chain Banking

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Federal Reserve Bank of St. Louis

February 24, 1931.

7!r. S. G. Sargent,
Assistant Federal Reserve Agent,
Federal Reserve Bank of 2an Francisco,
San Francisco, California.
7ear 7,7r. Sargent:
We regret that our letter of Feburary 16th did
not clearly indicate that the ',Analysis of Bank Earnings"
desired by us for the national banks in your district which
failed in 1930 referred to those figures including the ratios
set down by you on our form (sample attached) for each of the
four years 1926-1929. We are returning your sheets for the
three banks transmitted with your letter of February 20th.
7er7 truly yours,

J. H. Riddle
Secretary, Com3ittee on Branch,
Group and Chain 3anking.

Enc.

•
FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD

February 20,

AND FEDERAL RESERVE AGENT

1931

Dear Mr. Riddle:
Complying with the request contained in your letter of February 16,
we are enclosing herewith analysis of the reports of earnings and expenses
and dividends for the years 1926-1929, inclusive, for each of the national
banks which suspended payments in this district during the year
They
are:

1930.

(1) First National Bank of Tranquillity - suspended February
26,

1930

(2) First National Bank in Fresno

(3) First

- suspended July

1930

National Bank of Auburn, Wash.- suspended October

27, 1930.

Yours ve

truly.r?

G;)SARGE
-)
'Federal Reserve Agent.

Mr. J. H. Riddle,
Secretary, Committee on Branch, Group and Chain Banking,
Federal Reserve Board,
Washington, D. C.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

February 24, 1931.

/.,.
7 Sargent,
ssistant Federal ?serve Agent,
Federal 'Amerve Sank of an Francisco,
San?rannisco, California.
Dear Y.r. Thrgent:
Receipt is aclenowleAP:ed
?ebrunry 19th enolneinp for

or your lettr,r

A-2, A :3, 4-4, A-5, B.3,

1-4. 3-5, B-6, 3-8 and 3-9, ?ivin

information recuested

by the Coamittee on Bran', Group and Chain Sanking for
the state of :.1nliforn1a.
;or:"

r6,

J. H. Riddle
secretary, Coittee on Sranch,
Ti.
Group and Chain

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

February 19, 1931

Attention: J. H. Riddle, Secretary, Committee
on Branch, Group and Chain Banking.
Dear Sirs:
Enclosed are the following forms giving information for the
State of California:
A-20 Summary of changes in number of active State banks
since 1920.
( A-3, Bank changes during 1921 - 1930.
A-40 Summary of changes in the number of active private
banks since 1920.
A-5, Private bank changes during 1921 - 1930.
B-3, Number of active State banks classified by size of
loans and investments.
B-4, Number of active State banks classified by size of
capital stock.
-

B-5, Number of active private banks classified by size
of loans and investments.
B-6, Number of active private banks classified by size
of capital stock.
B-8, Number of state banks classified by size of community in which located.
B-9, Number of private banks classified by size of community in which located.
Yours v

Assistan
Federal Reserve Beard,
Washington,
D. C.

SARGENT
ederal Reserve Agent.

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Federal Reserve Bank of St. Louis

February 16, 1931.

Mr. Isaac B. Newton,
Federal Reserve Agent,
Federal Reserve Bank of San Francisco,
San Francisco, California.
. -ear Kr. Newton:
We have in mind :naking some analysis of the
earnings' experience of failed banks prior to the date
of suspension. In connection with thip project, please
forward us the Analysis of Bank Earnings blanks for each
of the years 196-1929 for each of the rrtional bwks in
your district, which suspended psylLents during the year
1930. It may be that you will 7fish to retain the originals for your files, settling us copies. Our plan ownprehende working out hers various groupings of the banks invD1ved, sozic 160 for all twelle districts together.
Very truly yours,

J. H. Riddle
Secretary, Comittee on Branch,
Group and Chain Banking.

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Federal Reserve Bank of St. Louis

February 9, 1931.

Yr. Olirer 1:). Wheeler,
Assistant Federal Reserve Agent,
Federal Reserve Bank of San Francisco,
an Francisco, California.
near Mr. '11oe1er!

corrected
moment ?re
pose your
thou" ./e

We hoie your letter of February ;'.rd enclosing
Tables I-e, IT-e and ITT-e. At the present
do not believe we could put to a useful purwork sheets on the deviation comnutation alappreciate your kind offer.

We are sending you herw1 t
for u:-.e In connection with 1930.

a sunnly of forms

Very truly yours,

J. H. RIddle
Secretary, Committee on Branch,
Group and Chain BanRing.

Eno.

FEDERAL RESEIZVE BANK OF SAN FRANCISCO
I SAAC B. N EWTON
CHAIRMAN OF THE BOARD

February

AND FEDERAL RESERVE AGENT

3, 1931

Et*. I. H. Riddle, Secretary,
Committee on Branch, Group and
Chain Banking,
Federal Reserve Board,
Washington, D. C.
Dear Er. Riddle:
In accordance with our letter of January 23, we are enclosing corrected
Tables I-e, II-e, and III-e of the earnings and expenses project. These changes
represent errors which were discovered in the basic work while compiling Tables IV-e and V-e. Although many of them would be practically negligible in
their effect upon the final results, others which are more significant might best
be taken into account in compiling the data on a national basis.
In addition to these corrected tables we are enclosing a copy of the
work sheet upon which we computed the average deviations for 1929 for Tables
IV-e and V-e. AS you will note, we have taken the liberty to shorten the form
of computation somewhat from that recommended in your memorandum of November 12,
1930; however, the final results obtained are the same in both instances. Should
you be interested in receiving copies of the work sheets used in computing average
deviations for each of the ratios, we shall be glad to forward them to you.
In connection with your letter of January 16 asking for the compilaor the year 1930, we should
tion of Tables I-e, II-e, III-e, IV-e, and_
out
of the forms which you sent
li e to request an additional supply of
number
of
forms
would
for all the national
s
for
provide
earlier
years.
This
-4
banks in the district and leave an excess of about fifty for emergency purposes.

Yours very truly,
ISAAC B. NENTON,
Chairman of the Board and
Federal Reserve Agent,

Assistant Federal Reserve Agent.
Enclosures

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Federal Reserve Bank of St. Louis

•
Et •

FEDERAL RESERVE BANK OF SAN FRANCISCO
SAAC

B. N EWTON

CHAIRMAN OF THE BOARD

February

AND FEDERAL RESERVE AGENT

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

1931

T. H. Riddle, Secretary,
Committee on Branch, Group and Chain
Banking,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Riddle:
As requested in your letter of February

we shall use the new census figures of population for

1930

in connection with the preparation of Table II - e of the
bank earnings and expenses project for the year 1930.

Yours very truly,
ISAAC B. NEWTON,
Chairman of the Board and
Federal Reserve Agent,

By
OLIVER . WHEELER,
Assistant Federal Reserve Agent.

February 3, 1931.

kr. Isaac B. Newton,
Federal Reserve Agent,
Federal reserve Bank of an Francisco,
San Francisco, California.
rear :41-. Newton:
In our letter of January 16th we ren,uested thr.t you extend
the earningt, project to include the year 1930 working out Tables I-e,
II-e.

IV-e, and V-e for that yeLir as was done for each of the

previous four yeLrs.

In grouping banks for Table II-8 accordimc to

the size of the community in which located we had suggested in our
letter of October 20th that you use with respect to each of the four
years l .c:2,L-1929 the -)onulation figures given in the January 1928 edition of nand McNally's Bankers Directory.

In connection with Table

II-e i'cr the year 1930, however, we believe it desirable to use the
new census figures of population for 1930 which we understand are
now available.

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Federal Reserve Bank of St. Louis

Very truly yours,

J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.

February 3, 1931.

a• ...accent,
Assistant Federal Reserve Agent,
Federal Tieserve 3ank of an Francisco,
an Francisco, Caliornia.
•

-)ear

3argent:

7e have received your letter of Janulry 30th enclosing the
uspensions in California during
five schedules coterip", state ban
the last half of 1930. The addition lf these oaaes bringL our lis,
of suspenzions in :;aliforria into calipleto areement ,7Tth that of
the Division of Bank Operations for the entire period. E;21 -193O
inclusive.
Acco:dinF to our records, this' leaves only the suspensions
in Idaho and those in Utah and Nevada during the last six months of
1930 to be reported from your district.

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Federal Reserve Bank of St. Louis

Very truly yours

J. H. Riddle
Secretary, Committee on 9ranch,
Group and Chain Banking.

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Federal Reserve Bank of St. Louis

February 2, 1931.

Mr. U. G. Sargent,
Assistant Federal rleserve Agent,
Federal ,eserve Bank of San Francisco,
San Francisco, Ssalifornia.
Dear Mr. Sargent:
leceipt is acknowledged of your letter of
January 27th containing forms 9-3, 3-4, 3-5,

a-6,

3-8

and 3-9 regarding the classific%tion of banks for the
state of Nevada.
Very truly yours,

J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

February 2, 1931.

S. G. Sargent,
Assistant Federal Reserve Agent,
Federal eserve Bank of Sar Francisco,
an Francisco, California.
Dear Mr. Sargent:
This will acknowledge with thanks :four letter
of January 27th enclosing the A and B forms for the state
of Idaho.

We note that form B-8 covering the number of

active state baaiks cla::sified by size of coiallanity is
still to be procured from the Idaho Calimissioner.
Very truly yours,

J. H. Fiddle
SecretnrY2 Committee on Branch,
Group and Chain Banking.

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

January 27, 1931

Attention: J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.
Lear Sirs:
There are enclosed the following schedules for the State of
Idaho:
1.

Form A-2, summary of changes in the number of active
State banks since 1920

Forms A-3, bank changes during 1921-1930

3. Form A-4, summary of changes in the number of active
Private banks since 1920

Form A-5, Private bank changes during 1921-1930

5. Form B-3 number of active State banks classified by
size of loans and investments

B-4,

number of active State banks classified by size
of capital stock.

5-5, number of active Private banks classified according to size of loans and investments

8. B-6 number of active Private banks classified by size
of capital stock

9. B-9, number of active Private banks classified by size
of community in which located.
It will be noted that Form B-8, number of active State banks
For
classified by size of community in which located is missing.
some reason or other the Commissioner failed to return this schedule.
I am writing him today regarding this form and till forward it as soon
as received.
Yours

Assis
Federal Reserve Lioard,
Yiashington,
D. C.

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Federal Reserve Bank of St. Louis

1 Res

Agent.

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Federal Reserve Bank of St. Louis

?ebruary 2, 1931.

S. G. Sargent,
Assistant Federal Reserve Agent,
?eaerni Reserve Bank of San Francisco,
ar Francisco, California.
Dear 24r.

argent:
This will :131;nowled43m with thanir:s your letter

of January 27th enclosing the A forms covering changes
in the number of active state bnnks and active private
banks In Nevada since 1920.
Very truly yours,

J. H. Riddle
Secretary, CoAmittee on Branch,
Group and Chain Banking.

•

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD

January 27, 1931

AND FEDERAL RESERVE AGENT

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Dear Mr. Riddle:
Enclosed please find the following forms giving information for the State of Nevada:
B-3 -- number of active banks classified according to size of
loans and investments,
B-4 -- number of active State banks classified according to
size of capital stock,
B-5 -- number of active private banks classified according to
size of loans and investments,
B-6 -- number of active private banks classified according to
size of capital stock,
B-8 -- number of active State banks classified according to
size of community,
B-9 -- number of active private banks classified according to
size of community.

Yours very truly,

Assistant

ederal

Mr. J. H. Riddle, Secretary,
Committee on Branch, Group and Chain Banking,
Federal Reserve Board,
Washington, D. C.

erve Agent.

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CMAiRMAN OF THE BOARD

January 27, 1931

AND FEDERAL RESERVE AGENT

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Dear Mr. Riddle:
Enclosed please find Forms A-2, A-3, A-4, and A-5
for the State of Nevada, being summary of changes in the number of active State banks since 1920, bank changes during
1921-1930, summary of changes in number of active private
banks since 1920, and private bank Changes during 1921-1930.

Yours very t

Assistan

deral R

Mr. J. H. Riddle, Secretary,
Committee on Branch, Group and Chain Banking,
Federal Reserve Board,
Washington, D. C.

ye Agent.

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Federal Reserve Bank of St. Louis

January 28, 1931.

Jr. Oliver ?. Wheeler,
Assistant Federal eserve Agent,
Federal eserve Bank of L:an FranciscO,
an Francisco, California.

Dear Kr. Wheeler:
This is to acknowledge with thanks receipt of
your letter of January 23rd eAclosing Tables IV-e and
V-e for each of the states in your district for each
of the four years 1926-192 together with the aggregates of the averages and deviations of the ratios on
both tables for the district as a whole for the year
1929.

7ery truly yours,

J. H. Riddle
Secretary, CoAmittee on Branch,
Group and Chain Banking.

•

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. N EWTO N
CHAIRMAN OF THE BOARD

January 23, 1931

AND FEDERAL RESERVE AGENT

Mr. X. H. Riddle, Secretary,
Committee on Branch, Group
and Chain Banking,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Riddle:
We are enclosing completed compilations of Tables IV-e
and V-e of the earnings and expenses project which were requested
in your memorandum of November 12, 1930. You will observe that the
averages for each item are shown directly below the corresponding
group totals, thus obviating nny possibility of associating an
average with the wrong total. As you also requested in your memorandum, we have prepared and are enclosing tables showing the
average deviation of each group in Tables IV-e and V-e. These are
based upon Twelfth District totals for 1929.
In computing Tables IV-e and V-e we discovered certain
errors in the basic work which ha necessitated some revisions
in Tables I-e, II-e, and III-e which we previously forwarded. We
shall be able to send corrected copies of those three tables to you
In two or three days.
If you wish the original worksheets for use in your study,
we should appreciate your sending additional forms to us in order
that we might retain copies for our files.

Yours very truly,
ISAAC B. NEWTON,
Chairman of the Board and
Federal Reserve Agent,
By
OLIVER . WHEELER,
Assistant Federal Reserve Agent.
Enclosures

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Federal Reserve Bank of St. Louis

January 22, 1931.

;lir. S. G. Sargent,
Assistant Federal Reserve Agent,
federal Reserve rmk of San ?rancisco,
n Francisco, California.
Dear Z.:r.

argent:

';;e acknowled3e with thanks your letter of January 17th toether with the suspension scAod.,les oovering
failed banks in !rizona, Oregon and Washington. Ath the
addition of these oase,3 our records now agree altn those
of the Division of Bank Operations for the entire period
1921-1930 inclusive.
iry truly yours,

J. H. Riddle
'3ecretary, CommittF,s on Branch,
Group and Chain Banking.

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Federal Reserve Bank of St. Louis

January 21, 1931.

Mr. S. G. Sargent,
Assistant Federal Reserve Agent,
Federal Reserve Bank of San Francisco,
San Francisco, California.
Dear 11r. Sargent:
In response to your telegram asking for 2000
copies of form A-3 for recording bank changes,ly are
forwarding tiv\m to you today under separate cover.

Very truly yours,

J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.

IFELEGRAM

•

FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)

RECEIVED AT WASHINGTON, D. C.

127gb,

Sanfrancisco Jan 21 932am
if H Riddle
Board Washington
Please snd us two thousand form A-3 bank changes during 1921-30
Sargent
1235p

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Federal Reserve Bank of St. Louis
O.

PRINT11.1.1

omr.

2-111101

January 40, laj51.

Mr. a. G. Sargent,
Assistant Federal 'es rye Agent,
Federal 7eserve 3ank of San Francisco,
aar. Francisco, California.
Dear air. z3ar5,7ent:
e are in receipt of yuur letter of January 14th with its
enclosure of correspondence you have had with the state commissioners
in California, Oregon and Jashington.
e are glad to see that the
work is going formard under satisfactory arrangements, but in the
case of the California study it is apparent from the copy of Mr.
Crumb's letter that two or three points need to he cleared up.
In the first place, Te aish to Eay Lht me reali ed fully
all the time that the information being requeated was "not of a
routine nature," and it was becavae, as Vr. Craab says in his third
paragraph, this compilation is one to ahlah aanh importance will be
giver that we were anzioua to haae it made. ae are at a loss to
understand why it should be assumed by him that the Coamittee lacks
aapreciation of all the implications of the study so far as Celifornia
is concerned, as stated in his last paragraph. ',;e are familiar with
the records and reports of the California Caamissioner, as aell as
with the intricacy and importance of recent banking developseats in
his jurisdiction, and it was for that very mason me were more anxious
to Irate the study made there than we were in the case of many other
states. "A trust you will assure him at the outset of the high value
we place upon the contribution of his office to the study.
The observation that Mr. Crumb makes on page two of his
letter indicates that there is same misanprehension in his mind as
to the purpose of this particular study. It is to analyze the reauction in the number of banks since 1S2,0. This, of course, is only one
aspect of the general p4eaumenon of banking concentration, but the
other aspects we are pursuing separately. The things that he speaks
of as pertinent in bu!lding up large branch banking systems we do
not desire to neglect, but neither are we attempting to include them

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Federal Reserve Bank of St. Louis

•

Mr. S. G. Sargent #2

January 'SO, 1931.

in this portion of our insuiry which centers upon the reduction in
the number of corporate banking enterprises. Consequently the information which he describes in the third paragraph on page two of
his letter is intentionally omitted. The desirability of omitting
it should be apparent when one consiaers that the great reduction
in the number of banks in the past ten years hae been a country-wide
phenomenon, whereas the growth of branch banking has been local.
The omission of short-lived banks described in the second
paragraph of page two where the names of the banks cannot be secured
without great difficulty and s"here there was never any call report
is not a serious matter. The great majority of such banks,we take
it, were never organized pith the bona fide expectation of continuing
in business.
The figures of capital, total resources and loans and investments to be filled in on form A-3 as mentioned in the last paragraph of the second page of Kr. Crumb's letter need not be reported
with the exacti.ude which he apparently has in mind. Figures taken
from the latest call date are what
expected, the general purpose
being to have an indication of the size of banks undergoing changes,
so that classifications of tom or that basis may be aade.
Transactions such as Kr. Crumb describes as occurring in
the case of the Oakland Bank where the business of a bank was partitioned
among other banks without its own existence being discontinued need not
be reported at all. Such transactions are important in detail, of course,
and we realize that in California they have been not infrequent, but
they do not come under that aspect of banking concentration which is
measured by the number of independently incorporated banks in operation,
which, as was saidl is the immediate object of this particular Laudy. They
were, therefore, omitted from our questionnaire by design.
As to the point raised In the first paragraph of page three
of Mr. Crumb's letter, we take it thst you will yourself arrange to
have this work done in the most expedient way. *While it would be
physically possibleto compile the data here in :stshington from the
reports of the superintendentg, the compilation we feel could be made
much more economically and satisfactorily by your own organization.
Se were slad to resS Kr. schramm's cordial letter regarding
the progreas of the work .in Oregon and are, of course, perfectly satisfied with his renuest that he might postpone the -sores for sixty days.
Sib are also elad to see that Kr. Moody, the Commissioner for Sashington,
is arranging to get the work done.

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Federal Reserve Bank of St. Louis

January 20, 1931.

Mr. S. G. Sargent #3

i'o'note in your letter that you say that Idaho and Nevada
have already sent in data. If it is complete or as soon as it is
complete, we should be obliged if you would send it on to us, inasmuch
as we are working on one state at a time.

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Federal Reserve Bank of St. Louis

Very truly yours,

J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.

FEDERAL RESERVE BANK OF SAN FRAN-CISCO
ISAAC B. NEWTON
CHAlkMAN Or THF ROAPD
ANo Em

LR,4L RELRVE AGENT

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Federal Reserve Bank of St. Louis

January 14, 1931

Attention: E. A. Goldenweiser, Chairman, Committee
on Branch, Group, and Chain Banking.
Dear Sirs:
After receiving your letters of November 12 and 13, requesting certain information from various state banking departments, we
wired you on November 27 that response from the various commissioners
indicated a desire to cooperate but, owing to the volume of work involved and lack of appropriations, they were unable to do so. We
asked for instructions as to whether or not to proceed with the compilations under the circumstances, and your reply under date of November 25 suggested that we wait for the coming meeting of the Committee before proceeding.
Upon Mr. Clerk's return from your meeting, he advised us that
it was the desire of the Committee to have us proceed with these
compilations at our own expense if necessary.
We immediately informed the Commissioners that the Committee deemed these compilations
essential to the study which is being made and that, with their consent
We asked them if they
and assistance, we would proceed with the work.
would undertake to compile the information at our expense and, if not,
if they would give us access to their records and permit us to do the
work.
The Idaho and Nevada Departments have already sent US their
schedules and replies have been received from California, Oregon, and
Washington, copies of which, together with our acknowledgements, are
enclosed, in order that you may be advised as to how we propose to
proceed.
No replies have been received from Arizona and Utah as yet.
The real problem is in the State of California where there have been
more mergers during the past ten years than have occurred in all of
You will note from the California Departthe other states combined.
records have been destroyed and that
their
of
ment's letter that some
encountered in collecting the desired
be
going
to
real difficulties are
has been detailed to secure the
Examiners
One of our
information.
Department.
best information available from this
As these reports are received by us they will be forwarded to
the Committee.
Yours

Federal Reserve Board,
Vlashington,
D. C.

ttgelENT

Rese

ent

•
0
STATE BANKING DEPARTMENT
of California
San Francisco
January 9, 1931

Mr. S. G. Sargent,
Assistant Federal Reserve Agent,
Federal Reserve Bank of San Francisco,
San Francisco, California.
Dear Mr. Sargent:
In response to your letter of January 2d in further regard to the
collection and submission of certain information requested by the Committee
on Branch, Group, and Chain Banking, we regret to state that due to the magnitude of the task, the difficulties that would be encountered in securing
correct information and the necessity of diverting the entire attention of
our small research staff from its regular duties, we cannot undertake this
work.
We appreciate your proposition to place the compilation of this information on a compensation basis but the element of cost does not enter into
our consideration and subsequent refusal.
As we explained to you in our conversation on Monday, January 5th, the only men in this office sufficiently
familiar with the nature and implications of this request to complete it with a
fair degree of accuracy cannot be spared from their regular duties for the
length of time involved.
We estimate that at least a month would be required
and that two men would be necessary.
However, to set aside their other duties while this work was in process would be tantamount to an admission that
their regular duties were of less importance to the conduct of this office than
the committee's request.
After a full consideration of all the pertinent facts, we believe that
the committee would appreciate that this information is not of a routine nature
and could not be compiled by an ordinary clerk.
Only a mature and well informed research man thoroughly familiar through personal contact with the problem and capable of independent judgment in making estimates, should be entrusted
with a compilation to which so much importance will be attached in the future.
This should be apparent after a thorough study of all the implications of Form
A-3, among which are the following:
Aside from the magnitude of the task, which it was proposed that we
undertake, there is serious doubt as to whether any agency could from existing
documents compile an authentic list of all the bank changes which have altered
the entire complexion of banking in California during the last ten years particularly those changes that have occurred since 1926.
Because of the accumulation of old records on banks no longer under state supervision and of no

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Federal Reserve Bank of St. Louis

•

,
I

S. G. Sargent

- 2-

1-9-31

particular concern to this office, all correspondence files, documentary evidence on converted banks, have been destroyed.
This means, of course, that
the entire history of the Bank of America National Trust & Savings Association
during its existence as a state bank and during which time it acquired its
present large number of branches by consolidations, mergers, purchase and sale,
etc. would not be available.
The same difficulty would be encountered in
tracing the growth of the Security-First National Bank of Los Angeles, or that
part of it which was formerly under state supervision.
You appreciate, of
course, that many mergers and consolidations were effected by these institutions
before achieving their present status and corporate name.
It should also be borne in mind that a considerable number of banks,
both state and national, had a very short existence, being sponsored by larger
interests and immediately on receipt of charter being purchased and continued
as branches.
There are other instances of such rapid changes in corporate
identity that some banks did not have a sufficiently long existence to render
a Called Report.
This was particularly true of the period immediately preceding the effective date of the McFadden Act.
Information in many of these cases
was
never
agency.
reported
to
any
1

Furthermore, we should point out that if as we presume, the committee
on branch, chain and group banking want the whole picture in terms of actual
physical assets conveyed in the building up of large branch systems, then those
purchases in which only existing branches were concerned should be included as
well as the purchase of independent banks.
No provision is made for the entering of information of this nature and these transactions in the aggregate would
far outweigh the many isolated changes of purchase resulting in the loss of corporate identity.
We note in this same regard that no provision has been made
in the questionnaire for new branches or for their conversion and a considerable
amount of banking business was transferred in this manner, without any change
in corporate identity.
A picture of only corporate changes even presuming that
included therein are mergers of various sorts would thus give only a very lopsided view of the whole situation.

)
VI

I‘V‘

iW‘17-

\sc

If the presumption were made that actual corporate changes could be
traced, we have still (in Form A-3) to determine total capital, total resources,
The securing
and earning assets of the various banks and branches concerned.
of this data would be even more difficult than the summary of corporate changes,
and would not necessarily be found at the same source and as of the same date.
Such records as are still maintained in this office on banks in the state system do not set forth a statement of the assets and liabilities of banks concerned
These figures
in consolidations, mergers, purchase and sale agreements, etc.
could only be approximated and in cases where an institutionls business was split
up between two purchases, e. g., The Oakland Bank, which was divided between the
Bank of Italy National Trust & Savings Association and the Bank of America of
California prior to the recent consolidation creating the Bank of America, no
publication designates the proportion of assets acquired by each purchaser.
Curiously enough, in this same transaction The Oakland Bank, a very large institution, did not lose its corporate identity, though its commercial and savings
business was transferred.
The bank still exists for trust business only. The
Committee might well be asked how to account for a change of this nature in view
of the limitations of the questionnaire.

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Federal Reserve Bank of St. Louis

•
S. G. Sargent

-3-

1/9/31

In connection with Form B-3, on which a classification of banks on
the basis of (1) capital and (2) earning assets, we wish to state that no
particular difficulty will be encountered from the standpoint of available
information.
The Annual Report of the Superintendent of Banks contains all
of the required data.
This office is of the opinion, however, that it is
not the policy of the committee, or its authorized agents, to solicit the
compilation of material of a routine nature which any junior clerk with a
minimum of supervision could compile with the facilities now at the committee's
disposal.
If they do not have the report of the Superintendent of Banks, it
can be obtained very readily.
If, in view of the difficulties outlined in the above, the committee
desires to continue this project, we suggest that you designate a man, preferably one from your own office, who you know to be qualified for the work.
We shall place at his disposal all available records and the conveniences of
our office, and assist him in every possible way.

We hope that you appreciate fully our position in this matter and
will impress upon your committee the magnitude of their undertaking as well
las their apparent lack of appreciation of all its implications so far as Caliifornia banks are concerned.
We wish to thank you for your past courtesies
and to state that our inability to comply in this particular instance is very
much regretted by us.

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Federal Reserve Bank of St. Louis

Yours very truly,
EDWARD RAINEY
Superintendent of Banks

By (signed) JOS PEH A CRUMB,
Supervisr
o of Research and Statistics.

FEDERAL RESERVE BANK
OF SAN FRANCISCO
ISAAC B_ NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

January 12, 1931

Attention:

Joseph .4. Crumb, Supervisor of
Researc'l and Statistics.

Dear 3ir;
Receipt is acknowledged of your letter of January 9 in which
the difficu1tie3 which lill be encounte ;in collcting
outline
you
(Group, and
requested by the Committee on Bran
information
the
Caain 3aaking.
While we realise that owing_AO the 1 dk or- ec rda the camommitt e eels that
Alation iA going to be incomplete,
available.
int*
some effort should be made to sedur
e,
re
ar&nged to
ve our Exam.filth your permission,
and will eppreciate any
iner lenry D. Swenge
Mr. amomgel was eemneeted
assistance you may
e some kmowledge of the momwith your Dp
ner in wIliCh
/
anent will be satisfactory to you,
TuAing that
/ as
Tours very truly,
#4011
/K

S. G SAMEMTAC....
Assistant Fed al Reserve"Fent.

Mr. Edward Rainey,
Superintendent of Batiks,
San Francisco, California.

Zergentai

•

COPY

STATE OF OREGON
BANKING DEPARTMENT
Salem
January 6, 1931

Mr. S. G.Sargent,
Assistant Federal Reserve Agent,
San Francisco, California.
Dear Sir:
We are wondering if
Your letter of January 2, 1931 has been received.
you could give us some idea as to just how soon the Committee on Branch, Group
and Chain Banking will need the information requested in your letters of November
17th and 18th?
We make this request for the reason that although we would like very much
to cooperate with you in obtaining this information, it would work more or less of
a hardship on us to have it compiled at the present time.
If the work could be
delayed so that the data would reach you in approximately sixty days, it would be
much more convenient for this office.
It would be very difficult to have someone who is unfamiliar with the records and the procedure of this office to come in and compile the data and we would
very much prefer not to have to do this.
At the present time, there is no one
In fact, we have
available who is familiar with the records to put on this work.
been working short-handed in this office due to the fact that we have placed one of
our men on some liquidation work which we expect to be more or less temporary.
As you know, with the various reports coming in at the first of the year,
we are very busy during the month of January.
This is especially true this year
due to the fact that the legislature will convene on January 12th and since our
office is now in the Capitol Building and on the same floor with both houses of the
legislature, we will no doubt have considerable interruptions from that source.
We have also been engaged in preparing some legislation to be submitted by the legislative committee of the Oregon Bankerst Association.
We are very much in hopes that this work may be delayed for the sixty day
period as it is our desire to cooperate with you in every way possible and we will
await your further advice in regard to the matter.

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Federal Reserve Bank of St. Louis

Very truly yours,
(signed)

A. A. SCHRAMM,
Superintendent of Banks.

FEDERAL RESERVE BANK
OF SAN FRANCISCO
ISAAC ES_ NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

January 13, 1931

Dear Mr. Schramm:
Seeeipt is eeknowledged of your letter of janueey 6, ane I note
what you have to say regarding the matter of compiling informatien requested in GUT letters of November 17 and 18 for the Committee on 3rench,
Group, and Ceein eftekine.
.hele eoe eoueittee is vary eneieue to comoletc iee eeeee ut the
earliest eoesible date, .e fine that there will es som delay in getting
rtokan. Of couree,
the information from on or two of the °tsar sta4
the real nroblem is in California where more
taken place during tne past tea years than in all or t
cOeeleee.
Oome of
the Department's records 'nave been a
, t at its best is
omr
going to fall short of what is eee ee
going to . e one of our
t, w
men in the Gelifornia Doper
e informetien
t to g
in the best form eossible
eyeful eeeks, j0 if your
compilation is delayed
aeya it will not seriously inconveniaace 1)4 Eiltho
cu can come:lett the eork evoner,
it will Pe gr
Y a
Sincs ding you
our leteeeu of NOVC2ber 17 and XS, referred to abo e the Co
us sueeiementare forms ehich we have been
us to whether or not ec shoule emceed.
holtline oend1g
dee si
The
forma in Jur
of ovemeer 17 called for a ciAssification of the benks
tt
of the country
epeding to siee of loans else investments and according to
size of eneital stock.
In oruer to supeleaent that data the Comaittee deems
it desirable to make an additional classification, that is, according to the
Accordingly, we
size of the tornr7 or cities in which the banks are 'Dilated.
ere enclosing sets of additional forms 3-8 and 3-9 for classifying state and
private banks n000rding to population on three different dates, June 30, 1920,
June 30, 1925, and Jens 30, 193e.
The forms enclosed with our letter of November 18 request informatien
In order to supplement
on changes in the number of state banks since 1920.
that data and make tne study more complete, the Committee deems it desiraole
to get similar information an ceenges in the number of private banks, if &ay,
A set of forms A-4 and A-5 are enclosed.
in your state during the period.
A-4 is to sinew the summary of ceanges and A-5 is to give thE eupoorting data
for eace beak making a change.

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Federal Reserve Bank of St. Louis

2
.
FEDERAL RESERVE BANK OF SAN FRANCISCO

Of oonrse, we understand that in many cases all of the information called for on form A-5 will not be available, but in every case
we should. like to have 7,t least the name oi. names of banks involved
in the change.
The definition of terms, sent you in our letter of November 18,
in connection with the study of state bank changes may be followed in
principle for private banks.
The 'Writ "consolidation" ii apply to
absorption of private beaks by a state or national bank as well as the
union of one private bank with another; and the term "conversion" will
apply where a private bank incorporates end, without union with another
bank,continues 7)usiness under state or national charter.
yo . , for your cooperation, I am
t

Asalstaut>.. ,

W. A. A. Sa4rama,
SuperinteLdent of 3auko;-Salmi Oregou.
3argbati

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Federal Reserve Bank of St. Louis

4en .

•

•
0

STATE OF WASHINGTON
Division of Banking
Olympia

January 8, 1931

Mr. Isaac B. Newton,
Federal Reserve Agent,
San Francisco, California.
Attention Mr. Sargent

Dear Sir:Answering your letter of January 2d relative to the data to
be prepared for the Committee on Branch, Group and Chain Banking:
We are preparing to take up this work the coming week.
Before getting into the material, it will not be possible to estimate the
amount of time it will take, as requested in your letter, however
the work will not be nearly so prolonged as in the case of data previously submitted.
We have curtailed our office force recently, and
it will be much more convenient for us to have this work done after
hours by one of our clerks.
In cases of similar work done in that
way, payment has been made at the rate of $1.50 per hour.
It is not
anticipated that the total cost would be excessive.
If this is agreeable to your office, kindly advise us, and
as soon as the work has progressed far enough for a reliable estimate to be made, we will advise you of the probable length of time to
be consumed.

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Federal Reserve Bank of St. Louis

Yours very truly,
(signed)

C. S. MOODY
Supervisor of Banking

FEDERAL RESERVE BANK
OF SAN FRANCISCO
ISAAC B.

N EVNI TON

CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

Janyere 13, 1931

Derr Mr. Meody:
Reelying to your letter of Januery 8 will state that it rill be
perfectly agreeable pith us for emu Le cemeile the data for tie Committee
on drench, Grove, and Caain Banking as suggested.
fine that. ir one or to of the state depertmente it will be
neeeelory for 113 to eend our oen man to comeilc the inforeation desired.
This is goine to take acme time and tee eeole reeort 1 geinj i:,, be meee
but will epor leea deleyad. 'ee do not want to rush yon in the 1 r
e cete.
preciats receiving your report at the earlisstr s
oraeyeNeee 17 an 18,
1 tt
Since seeding you the fere:3 in
tare\ o 3 which we
referred to above, the Committee sell(t
should pror or n t
have been holding pending a decision\as
f No em
lied fo a clensificetion
17
awed.
The forms in our
of lovas sale investments and
of the 'peeks of the co
u
er
to aupelemeat teat dete the
L
Recording to size of
i
O
n
tioaal
cleaeificetion, enet is,
Committee deem- tds I,.
according to(th,aia of to town 0 ci es in which the banks are located.
f additional forns 8-8 and 8-9 for clasAccordingly w are waelo
differt
different
ording to optiation on
4rivt.
sifying sta
,a
'ate,
eatee, Jen.
920,YJ a 30, 1925 and June 30, 1930.
---sed with our letter of November 18 re best iaformation
The fo
en
In order to supplement
on changes in the 'number of state banks since 1920.
study
more
complete,
the
Committee
deems it desireble
that eeta and make tee
private
banks, if any,
of
information
on
changes
in
tne
number
to get similar
encloaed.
A-5
and
are
t
set
of
forms
A-4
period.
In your state during the
date
supeorting
and
1,-5
the
is to give
A-4 is to show the seminary of changer.
for each bank leaking is change.
Of course, is understand that in many cases all of the information
called for on form A-5 will not be aveilable, but in every case ee should
like to eave at least the name or names of hanks involved in the c4ange.
The definition of terms, sent you in our letter of November 18,
in connectien oith the study of state bank changes may be followed in

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Federal Reserve Bank of St. Louis

2
FEDERAL RESERVE BANK OF SAN FRANCIS.

The term *consolidatiA0 will apply to
priseiple for private banks.
absorption of private banks by a state or national bank as well as the
union of one private bank with another; and the term "conversion. will
apply where a private bask incorporates and, without union with another
bank, continues business under state or national charter.
Thanking you for your cooperation, I am
Yours vex* truly,
--?

ir. C. o. body,
3upervisor of Banking,
Olympia, Washington,'

Sargenitit

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Federal Reserve Bank of St. Louis

January 19, 1931.

Mr. S. G. Sargent,
Assistant Federal eserve Agent,
Foderal oserve Sank of San Francisco,
Francisco, California.
Dear Mr. Sargent:
This is to acknowledge receipt of your recent
letter containing reports on the statutory priority of
deposits in the states of Nevada, California, Oregon
and :
- Ashington. We appreciate the promptness with which
thiz information hns beer supplied and feel thnt it will
be very definitely helpful to us in our attempt to draw
nomparisons between the several states.
7P-:- truly yours,

J. H. Riddle
Secretary, Committee on 3ranch,
Group and nain Banking.

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Federal Reserve Bank of St. Louis

r-:

Mr. Isaac 6. Neotor,
Federal :eserve Agent,
Federal Reserve Bank of Jan Francisco,
zan Francico, California.
Dear Vir. Newton:
In connection with the earnings project of this
Committee upon which you are working, it has been decided
to re 'nest the .ieserve banks to supply Us for the year 1930
wit

the tabulations heretofore requested for the years 1926,

1927, 1928 anu lL9.

A'coraingly Tables I-e, II-e,

I7-e and 1-e should be compiled in the uale way for 1930 as
Was

done for each of the other four years.

As our original

..uest with respect to devi%t ons required that .vork for
re,
one year only, the present request entails nothing additional
on deviations.
Very truly yours,

E. A. Goldenseiser
Mairman, Committee on Branch,
Group and Chain aanking.

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Federal Reserve Bank of St. Louis

January 13, 1931.

Mr. L. . anent,
Assistant Federal Reserve Agent,
Federal Reserve 3ank of San Francisco,
San Francisco, California.
Dear Mr. Sargent:
We acknowledge with thanks your letter of
January 6th enclosing seven corrected suspension schedules from the state of ',ashington. They appear to br.
satisfactory in every detail rind we greatly appreciF:tc
your efforts in securing these corrections.
Very truly yours,

J. H. Riddle
.iecretary, Comittee on Branch,
Group and Chain Sanking.

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Federal Reserve Bank of St. Louis

January 10, 1931.

Mr. S. G. Sargent,
Assistant Federal lieserve Agent,
Federal Reserve Bank of San Francisco,
San Francisco, California.
Dear Mr. Sargent:
Receipt is acknowledged of your letter of
January 5th enclosing a copy of a report from the
First Security Corporation of Ogden, Utah.

Iery truly yours,

J. H. Riddle
Secretary, Committee on Branch,
Group and Chain Banking.

•
FEDER1OL lbS1E1R4'iE BANK OF SAN FRANCISCO
IsAAc B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

January 5, 1931

Attention: J. H. Riddle, Secretary, Committee
on Branch, Group and Chain Banking.
Dear Sirs:
Referring again to the Board's letter of July 18, 1930,
enclosing schedules for collecting information regarding the
operation of group banking systems we are enclosing copy of a
report received from the First Security Corporation of Ogden,
Utah.
Yours ver; truly,

Assistant Fe

Federal Reserve Board,
Washington,
D. C.

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Federal Reserve Bank of St. Louis

ral Reserve Agent.

FEDE RAL RESEIZVE BANK OF SAN•FRANCISCO
IsAAc B. NEWTON
CHAiRMAN OF THE

BOARO

AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

December 30, 1930

Attention: J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.
Dear Sirs:
Receipt is acknowledged of your letter of December 23
returning certain of the Washington suspension schedules in
which you have found apparent irregularities.

The schedules

are being referred to the Washington State Banking Department
with explanation of irregularities and request for corrections.
As soon as they are returned to us they will be forwarded to
you promntly.
Yours very truly,
)

S.
Assistant

Federal Reserve Board,
Washington,
D. C.

ARGPIC .
ral ReLrIve

ent.

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Federal Reserve Bank of St. Louis

January 2, 1931.

Mr. S. G. aargent,
.11isistant Federal .Aeserve Agent,
Pederal :leserve Bank of .An FranciLco,
San Francisco, California.
Dear Mr. :Argent 2
On October llth we7Troto to you regardinT
aocording to the
twelve state banks in Art.:011R
records of the Division of Bank Operations, should have
been included in the ornal list of suspensions submitted from that state. ?he last information we hhve
frI m you on this saject is contained In your letter
of November Tth which states that thus far your remeats had elicited no reply from the Sunerintendent
of Banks for ArizonS,
WO axe very anxious to secure a report on
these banks and will greatly appreciate knowing whether
there have been any stibse.uent ameloppments regarding
this matter.
7ery traly you a,

J. H. Riddle
Becretary, Committee al: Branch,
Groun and Chain Banking.

r•

•

FEDERAL RESERVE BANK OF SAN FRANCISCO

A c3
rel

ISAAC B. NEWTON
CHAIRMAN OF THE BOARD

104
.04q,

AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

trt
wo
.

S.°

December 27, 1930

c;10
,
rt.

Attention Mr. E. A. Goldenweiser, Chairman,
Committee on Branch, Chain and
Group Banking.
Dear Sirs:
Complying with request contained in your letter of
December 20, we will have schedules prepared for state bank
suspensions in this District during the second half of 1930.
We appear to have a sufficient supply of forms to cover the
additional suspensions.
Yours very truly,

Assis an

Federal Reserve Board,
Washington,
D. C.

SARG
eral Re

e Agent.

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Federal Reserve Bank of St. Louis

December 20, 1930.

Newton,
Federal ‘3,:iorve Agent,
foderal .es#7r.r", mv11!7 of 3NA Franolsoo,
2raahlisco, 3alifornia.
Dear 1.4••
In cnr letter of J'aly 26, 1930, sabolLtinv LAO
edhedule on suspensions you mere reluest-d to tk:47 tile state
banking deparleents to prepare a sohed4e for etto4 iqlO)0
*ion free Jannary 1, 1921, to JUne 30, 1930, ;t
meeting of oar Committee it was decided that the ,..)ed
should he extended to the end of 1930 In order to brmg
the teferaetioncup to date and round out the fall tea'
year ported. Therefore, we should like for you to 4 pa
sehednles pmpared for the failures during the reeend
half of 1930, in addition to those which have beer .9repored or are beime prepared in the states "hese eapitals
are located in your distrioto
Your beak or the various state banking depart—
ments will dualities's home on band a sufficient supply of
femme to ewer the additional enepensions. If not, we
ess MU arrangements to swift thus.
Very. truly Yours*

11. A. Uoldemmeiser
Chairmen, 0ousaittto on 3rktneke
Group and Chain Banking,

December 23, 1930,
1.1re

0, Sargent,
:oast:int Federal ,43srve Agent,
Federal :ieeerve lieut.: of A21 Fransimee,
2an Franoisoo, alifornin,

Nina* Ur.
o have found a few hrregularities Ln the irfer.Latiov, re ,orted
on oertain of the 4ashington sus)ension sehedUles and, therercre, le are
returning seven of thou to you in the hope chat these diffielltios oan
be explained lith a minimum of trouble.

In oonneation with seetiese 9 end 10 of the schedale calling
for Mta on peolento to dergositere, we are unable to derive the
exact
percentages of payments to claims as shown me sehedmles 9, 18, 24, 28,
and 29 by dividing the actual dollar amounts of ppents by the claims
Indicated,
have entered in pencil the peroentmes thee Obtained, and
as you will see, they differ oonoidoraltly in eases 9, ll and 24 fmms
those reported, on most of the 4ash1netma ashednles these pereestse
es
obsolr out accurately and consequently we meld like to laarishether
there are special explanations for the wide disparities which ocean,
in the eases enumerated above.
With rawest to sehedule 23 (me hive numbered the sabseiles ea
the front pee beelike the name of the state) yin 1111 as that in answer
to mestion be the dividends fres selleetiens en preferred and genera
claims total SNOW. In the canna en total Impends, the same eomstitos
ne
items are listed hue a teeal of $1,717 is Cheep* the differene
e between the
tee being accounted fork/ offset' of !,,%1,364,
% Onesilltemt with the direem
tions of the Oemmittee offsets appear not to have been imeludied either in
claias or molents slammed of the Washington eseeduise, ire there am!
!petal reasons for their tmelneent in this case?
On xobodule 14 total Olatuk allowed are given as 4128,724 whereas .
total liabilities of this bank on the day et failure aggregated only :114,350,
Is this perhal)s an error?

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Federal Reserve Bank of St. Louis

Very truly yours,
J. U. Riddle
Secretary, Oomaittes on Branch,
Group and Chair Banking,

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Federal Reserve Bank of St. Louis

Deeember 19, 1930.

Ur. Isaac B. Newton,
Federal Reserve Agent.
Federal Reservo Bank of Ban Franoisco,
'Jan Franoisoo, California.
Dear Mr. ffe,Jtons
The woOotion of the 'mimes incurred by the ',unions 2ederr4 reserve banks in eonnection with the investigations of the Committee on Branah, Group and Chain Banking
'was brought before the full meeting of the Col,:dttoe on
An:ember its, 1930. It was the view of the Committee that
all paymonts by the Federal reserve banks to state *amis.
sioners of banking or other outside agents or Individuals
for 004Spatbg data or for other services in conneotion with
the Oanuittimes work should be borne by the Oomuittee.
Wherever the =penes represents work done by the
bank itself, however, even though it entails the hiring of
additional help, the Committee felt it Should be borne by
the bank. It was invested in this oonneotien that if the
work done by the Pederal reserve banks for the eassolttee
menet be emu *are or by their regular budgets, thin the
expense imerred on account of the work of the Oantnittela
should be shown as a separate item.
I supgost that at zr)ur oonfOniOn00 yet seed US
an itemized o'Staont of rour par.tents for outside assts.
tanoe, if al7, in order that we may retmbI.7e0 your bank
and carry tho amount as a Committee expellee.
"Very truly yaws.

Be A. Goldenweiser,
Claimant Coseittee on Branch,
Group and Chain Banking.

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Federal Reserve Bank of St. Louis

Docemte: 12, 1930.

• Isaac;

Newton,
2etteral

:ft,
arall;: of
jaii

BOO

Dear Mr. Newtons
In tabulating the data reported on the suspension schedules bzi the various states it is apparent
that in the ease of certain iteas the material reported
is not uniform for all states, and t7i:".; for purposes of
comparison an explanatiop. of -.-fAat i included ie needed.
it be
Alis is true of sections 7,
and 10.
possible to more the following inforaltton for each.
state in your district which havlyreparia or Is w*air? ring suspension schedules?
(11 The statutor7 nrlority of lien of the
deposits ir eh stets

(.1

The schedules ask for reports on deposit clrlis
Jay, tut in ease ether claims hare been Lucinda" by
stets this fact should be stated, and the infOrmation
quested above dhould likewise be furnished for fiese ot:LI
•
Very truly yours,

J. H. Riddle
3ecretarw, Oemaittee on Branch,
Orem sia Main Banking.

•1.
FEDERAL RESERVE BANK OF SAN FRANCISCO

ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

December

4. 0
V.,
f.,•••
20, 1930'4
, sx -4F,
.44. se
'%;11,

Attention: J. H. Riddle, Secretary, Committee
on Branch, Group and Chain Banking.
Dear Sirs:
Receipt is acknowledged of your letter of December 12
requesting certain additional information in connection with
bank suspension schedules submitted by the various state banking departments of this District.
This matter is being taken up with the departments and,
if the information is available and the authorities are willing to furnish it, it will be comdiled and forwarded at the
earliest possible date.
Yours very truly,

—7
0
1
GENT
Asoistant 41Peral ReserW Agent.
Federal Reserve Board,
Washington,
D. C.

f`0

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Federal Reserve Bank of St. Louis

December 8, 1930,

Mr, S. G. 3arlmt.
Assistant Federal Illseree Agent,
Federal neserve Doak of San Francisco,
2an Francisco, California.
DearlIr. Sargent:
Thank you for your letter of December 2nd
with additional replieL regiriiing the' acifting of bank
connections az a result of changes in the organization
and structure of industrial and cowmercial enternrises.
VOry truly yours,

J. H. Riddle
Secretary, Camittee an Braneh,
Group and Chain Banking.

•
FEDERAL

;•

Rt:SERVE

BANK OF SAN FRANCISCO

IstkAo B. NEWTON
CHA.RMAN OF THE BOARD
AND FEDERAL RESERVE AGI1NT

December 2, 1930

Attention:

J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.

rear Sirs:

Referring again to your letter of June
requesting information as to changes which have been occurring in the organization
and structure of indistrial and commercial enterprises whic't have
resulted in shifting of banking connections, please find enclosed
replies from the following banks:
First National Trust & Savings Bank of San Diego,
San Diego, California
Twin Falls Bank & Trust Company, Twin Falls,
Idaho
Commercial Security Bank, Ogden, Utah
Yakima First National Bank, Yakima, Washington.
Yours v

y truly,

405:
d
r/
aNDARGFET
Assistant Flral Rese

Federal Reserve Board,
Washington,
D. C.

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Federal Reserve Bank of St. Louis

gent.

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Federal Reserve Bank of St. Louis

Ls% S. G. :sargent,
Assistant Padova Reserve Agent.
Federal asserre Sank of San Freiman*,
aan Francisco, oaliforala,
Sargent*
Thank you for your lettoy. ;v November 26th
enol-,sing suspension *nodules fci the npros Bank Of
ani the lrmrrs & Lorehante !lank of LA,"
,Aorsucnto,
ffirial, California.
-,717 truly yours,

J. H. Riddle,
Secretary. Committee on.prenah,
Group and Chain Banking,

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAtRmAN OF THE BOARD

November 26, 1930

AND FEDERAL RESERVE AGENT

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Attention: Mr. P. A. Goldenweiser, Chairman, Committee
on Branch, Group, and Chain Banking.
Dear Sirs:
Receipt is acknowledged of your letters of November 21
and 22 enclosing forms end reiuesting certain information regard—
ing private banks.
In

View

of our telegram of November 24 and your reply of

the 25th, we will suspend work on thesr compilations until after
the meeting of your Committee, as suggested.
Yours very truly,

Federal Reserve Agent.

Federal Reserve Board,
Washington,
D. C.

f
FE1)ERAL RESEIZVE 13ANK OF SAN FRANC'SCO
SAAC

B. N EWTON

CHA:RMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

November 3S, 1930

Mr. J. H. Riddle, Secretary,
Committee on Branch, Group
and Chain Banking,
Federal Reserve Board,
Washington, D. C.
Dear Mr. Riddle:
Two copies of Tables I-e, II-e, and III-e of the current
study on earnings and expenses of national banks in this district
are enclosed.
We have taken particular note of the statement in your
memorandum of November 12 regarding the frequency with which "earnings" schedules are placed in the wrong group even after checking.
In order to help in eliminating the possibility of such errors, the
work has been done independently by two persons and both of the
resulting tabulations have been checked by a third person. Consequently there should be very few errors, if any, remaining in this
part of the work.
For your information we ere enclosing two duplicate copies
of the worksheet which we prepared to facilitate computation of the
data called for on your schedule of the analysis of bank earnings.
This worksheet is adapted to a standard adding machine and has
aided in speeding up the task as well as providing a neat record
of the operations. There are three check totals in the earnings
and expense items which obviate the necessity of re-addition to establish the accuracy of earning and expense computations on the workOf course, there are no adequate checks on the original
sheet.
validity of these or the conditions figures, although inspection
often discloses discrepancies. By using this form, the persons
assisting in the study have assembled data of from thirty to fifty
banks a day.
We have commenced the preparation of Table IV-e, but it
appears to entail a greater amount of labor than we at first thought
would be necessary and we are not yet in a position to estimate
how rapidly we shall be able to complete either it or Table V-e.

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Federal Reserve Bank of St. Louis

•
mr.

I. H. Riddle

Page 2

We should appreciate knowing something of the progress
of the work at other banks in the System.

Yours very truly,
ISAAC B. NEWTON,
Chairman of the Board and
Federal Reserve Agent,

BY
OLIVER P.
r LER,
Assistant Federal Reserve Agent.
Enclosures

I•

41,

Form 148

TELEGRAM
FEDERAL RESERVE BOARD
LEASED WIRE SERVICE
WAS H I NGTON

2-9454

a •a

Newton, San Francisco, California

l'eferrin3. your telegrom November 24th su :g,)st you wait for the
coming ,neeting of Coomittee before proceeding with compilations,

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Federal Reserve Bank of St. Louis

GOLDMEISER

*TELEGRAM

•

FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)

RECEIVED AT WASHINGTON, D.
C.

nr olde=aiser
Yashn
poferrinT your letters november twelfth and thirteenth requesting
certain information from various state banking departments.

Respnrn2r1

from commissioners indicate desire to cooperate but owinn: to volume o,
work involved and lack of appropriations they are unable to do so.
Tt will require several months to compile information renuested which
will be more or less inaccurate owing to incompleteness of records
in some states and will involve considerable expense to this bank
because it will be necessary to either send our own men to search
department records or place representatives of departments on our
payroll.

Under circumstances shall we proceeds with compilations

or await forthcoming meeting of committee for discussion of matter.
Newton
0.

.0•211 NNNNN .1111,1,1. OTC. ,t,s

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Federal Reserve Bank of St. Louis

I-111101

353p

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Federal Reserve Bank of St. Louis

•

amber 22, 1930.

12r. Issas its 161140
1 4
Federal Besse,' Aepst,
Federal Boom Bank of lion Premeisee,
3an Frometsoo,
Dear ilr. Newtons
In our letter of DOwember lathy" outlined a proposel
.
tier elese14116 the beam of the country aeoesiing to sise of
loess ant immeelnents and aseerding to else of eapiLal stook,
In order to espOineemt that data it seems desirable to wake an
additional elaselfleation, that le, aeoordlik; to the size of
the teens or cities in lidoloh the banks are talented, A000rdm
ingly we haus prepared and are enblesing tee additional fora',
D..8 end 34, for olonmeifyin,.; state and 'rivet* hanks adoording
to population's three different dates; June 30, 19201 June
30, 1925; and Iftne 30, 1030, In asoordenoe with Tow/ions
practice you are requested to eompile this inftenatiom for
the banks in those states whose capitals Its within your
diutxiot,
Por 1920 and 1930 the °enemas flares of population
ahould be used, '7hil detailed 1930 flames for about half of
the stators have already been awaited, end It is understood
that by the end of Deoember the figneee for all states should
tm
be available. 'or 192:3 the ikulicere Directory will
-rgied upon,
V017 truly yours,

E. AO Goldenweimer,
Chairman, Oemmittee on 3ranch,
amp and Chain aanhing„
)61hlos

444_
7

*4,st-re'42.

•

4tji.6;;

assembled, and is JuildJks the re:aest that eae2.
I
- onoile, or have compiled., the figures for Close statoL -/hoLe-a
lie within its dietriot for the period from 1920 throumh 1930,
.);:,epareil for vaie
A.4 sod A.5, copies of Which are sAteched, ha7n boon!
to 7ile the supp.-5
And
nhanget,
of
=maul/
the
aelr
to
A.4
purpose;

bank malcing a chanos• Unletis there in !)nftor
porting data for
or readily procurable from the stnts oca.
files
information throw
, nay be used as the basis of the
:
Director
the
Ilanhorst
missioners,
that in many eases all the inf'n.
untrue,
of
We
understand,
study,
not be available, oat in svery
Am8
Form
will
notion milled for on
the nem or names of the banks
least
at
ease we should lies to.have
devolved in the ohmage.
The Definition of Terms seseiyeei with ear Letter of Nevem,.
ber 1304 1950, in oonneotionwith the study of state beremehampos
amye follcwod in principle tor private banks, The term dooneolL.
A-t!oe., ri11 r77117, to the absorption of a private bunk by a state

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Federal Reserve Bank of St. Louis

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Federal Reserve Bank of St. Louis

t ••=e

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Federal Reserve Bank of St. Louis

•

November 18, 1930.

Mr. Li, C. Sargent,
Assistant 2oderal Reserve Agent,
Federal Reserve Beak of am Franoisoo,
San Francium, California.
Dear Mr. Sargent,
Reeeipt is aokuoetedged of your three lettere
of Novador
One letter slaloms a report from the National
3ank of Commove of Seattle regarding tbe &Ming of
banking sonmeetiene. The seoond letter ~loses teo
additional easpeseiaa ediedales from the state of Webtartan, and the third latter snob 55$ a report reeeived
from the Old Motional domperetion of Spokane, Irashingtoa,
in reply to soar questionnaire regarding the operation of
group basking isreteme.
Vary truly years,

J. H. Riddle,
Somata*, Committee on.lranoh,
droop and Chain Renklag.

FEDEI1AL RESERVE BANK OF SAN FRANCISCO
IsAAc B. NEWTON

•.,

CHAtRMAN OF THE BOARD

November 18, 1930

ANO FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

ess'
cr:s.

0
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41%
rvto
/13

Federal Reserve Board,
Washington,
D. C.
Attention Dr. E. A. Goldenweiser, Chairman,
Committee on Branch, group, and Chain Banking.
Dear Sirs:
Receipt is acknowledged of your letter of the 13th instant and, under separate cover, of the blanks upon which to
report changes in the number of State banks since 1920.
The forms are being forwarded to the State banking departments with a letter requesting that the figures be compiled
We do not anticipate any trouble
at the earliest possible date.
from
the California, Oregon, end
information
in obtaining this
records
their
being fairly complete.
Washington departments,
However, it may be quite difficult to get complete data from the
This is especially true of Arizona, the
other four departments.
records of which were burned a few years ago, end of Idaho where
the Commissioner has not shown a willingness to cooperate.

Yours very truly,
ISAAC B. NEWTON,
Federel _e_s.g5fe Agent,

0/1V-V

Assistant F

al Res

e Agent.

:17e-lber 13, 1930.

Mr, Isaac 13. Newton,
Pectoral Resorve Agent,
Peueral 'eserve !lank of an Franoisco,
::A)1 ?ranolsoo, California,
Dist Bir. Newtons
MO are faudiug You herewith an outline of a study
regarding the changes in the number of banks sins* 1920
AIM the Committee on Branch, Grolp ood Chain 3anking has
prepared as a part of its investigation of bantling (=Oentration in the United States. The figure' sagaritag ehax
in national banks hove arose, been compiled as shown on
attached fOrms and it is the desire of the Oamaittsa to t
getting eorresponding summaries of almai
n1040 this an4y
in th, eleber of @MU Wei*. ?he ecteleeed material is 1
ergimmelley, awl we request that you forma it to the
We Omitftastroto of the *Woe shoes sapitals are In your
dleirlet ma age Moo to thou the infbrmation indisetf
The farms for their use in 00Mpi1iw this !Merman= are
being mot 10 yes =der separate cover.
is the
the inimary inal4d,
'he postai aftwea
your 1980, but it is our desire that the mnterini or nrior
years be prepared and fbreardsd to us as soofl. tcs possil
without waltiwg fir Or 1930 figures. The lattor.tk,
adde4 as Sega aa possible after the OW of the yomr.
Very tray yours,

No A. Ooldemseiser,
°hairnets, Ommaittes on Branah,
droop mod Chain Banking.

Xlb

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Federal Reserve Bank of St. Louis

November 13, 1930.

Ur. S. G. Sargent.
Assistant Federal Reserve Agent,
Federal Reserve Bank of San Francisco,
aan Francisco, California,
Dear ;.:r. Sargent:
we nave reoeived junr three letters dated November 8th.
Zhos first letter contains additional reports regarding the shifting of banking connections as a result of ahangme in the organisation and structure of industrial and commercial enterprises,
and we note that this oompletes those reports in so far as your
district is oonoerned.
Letter nanher two encloses questionmeires froms
Security-First National Sank, Los Angeles, and Americus Trust
Company, San Premise*, regarding the operation.oCbrandhes.
note that with two exceptions this completes the study regard..
ing the branch banking questionnaire and that you are not Moly
to receive reports from these two Lnstitations.
Letter wisher three mod:)see schedules regarding the
operation of group banking systems from:
Anlo National Corporation, San Francisco
?inn Seattle Dexter Berton Corp., Seattle
Pacific Bancorporation, Portland
We note thrtt there are four sernerldiams from mhos Marts hmom
not yet been rewired.
levy tray yemmeg

J. I. Riddle,
Seoretary, Committee on Branch,
Group and Chain Banking.

FEDERAL RESERVE BANK OF SAN FRANCISCO
IsAAc B. NEWTON
CHAiRMAN OF THE BOARD

AND FEDERAL. RESERvE AGENT

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

November 8, 1930

Federal Reserve Board,
Washington, D. C.
Attention J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.
Dear •Sirs:
Referring to the Board's letter of July 18 which enclosed
schedules for collecting information regarding the operation of group
banking systems, we are enclosing the following reports:
v// lo National Corporation, San Francisco
irst Seattle Dexter Horton Corporation, Seattle
Pacific Bancorporation, Portland
The following corporations are working on their reports and
we hope to have them at an early date;
vtiae First Security Corporation, Ogden
vtld National Corporation, Spokane
Marine Bancorporation, Seattle
United States iational Corporation, Portland
As the above reports are received they

will be forwarded

to the Board.
Yours very truly,

Assistant F

SARGE.,
ral Reserve AFent.

FEDERAL RESERVE BANK QE SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

November 8, 1930
Federal Reserve Board,
Washington, D. C.
Attention: J. H. Riddle, Secretary, Committee
on Branch, Group, and Chain Banking.
Dear Sirs:
Referring again to your letter of July 14, enclosing questionnaires regarding the operations of branches located outside of the
city of the head office to be sbmitted to the more important systems
of this District, we are enclosing reports received from the following
banks:
Security-First National Bank, Los Angeles
American Trust Company, San Francisco
We have received replies from all of the banks which we addressed
except the Bank of America and the California Bank, both of Los Angeles.
Owing to the confusion as a result of the recent consolidation of the
Bank of America with the Bank of Italy National Trust and Savings Association we are not likely to receive a report from them.
However, we
shall continue to try.
We have had considerable correspondence with
the California Bank, Los Angeles, a nonmember bank, and it appears
that they are not going to send in a report.
With these two exceptions, this completes the study regarding the operation of branches
located outside the city of the head office.

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Federal Reserve Bank of St. Louis

Yours very truly,

Apr
. SARG
Assistant Federal Reserve Agent.

•

Novambe,:-

Mr. S. G. Smoot,
Assistant - Federal Reserve Agent,
Federal r.eserve Bank of San Promisee,
San Francisco, Cal/feral*.
Dear I.:to :argent:
)eDeipt is acknowledged of your letter of Bevembel7th enclosing bnnk suspensior sche,.ules frms Bevods, ^Offornia, and Washinvtone
The Board's records shn.7 the Miming snepenstons
lor whiel no schedules have been received,
Mom and location
California
Niopen 3ank
:7 n mie -5 and
rcAaat s ionic

7P2)IngtOn
Citizens sank
"Ante liank

Sacramento

7-1/-11

I )3 A.

1-q

Anacortet
Black iip

;mow-

i.6.22

All you be good enough to cheek them
the respective bank oe-lmissioners?

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Federal Reserve Bank of St. Louis

0600111

witb

Very truly yours,

J. H. Riddle,
Seoretary, Committee on Branch,
Group and Chain Banking.

•

FEDERAL RESERVE BANK OF SAN FRANCISCO
1 v.

ISAAC B. NEWTON
CHAIRMAN OF THE BOARD

November 17, 1930

AND FEDERAL RESERVE AGENT

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

VI+
:Pi• vs. .°°.
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•

tfl

Federal Reserve Board,
Washington,
D. C.
Attention Dr. E. A. Goldenweiser, Chairman,
Committee on Branch, Group and Chain Banking:
Dear Sirs:
Receipt is acknowledged of your letter of November 12
and the blank forms to be used for submitting classifications
of State and private banks according to size of loans and investments and according to size of capital stock.
We find that our records are not sufficiently complete
We would have to go to the State
to make an accurate report.
banking departments for part of the information, and it would
therefore seem advisable to request them to compile the entire
reports.
Letters are being sent out today and the reports
will be sent to you as soon as received.

Yours very truly,
ISAAC B. NEWTON,
Feder
Reserve Agent,

BY
Assis

ARGE'i 2
ral Rese

Agent.

November 12, 1930

Ur. retail° D. Newton
Federal Reserve Agent
Federal Reserve Bank
San Francium, Calif.
Dear Mt. Newton:
In connection with its various investigations the Committee or. Bra.nch,
Group and Chain Banking finds it essential to have the banks of the country
oleuified aceording to size of loans and investments and according to size
of empital stook. This information is necessary in .the study of banking
concentration, as well as for comparisons in the study of allures and in
tbe development of branch banking. A000rdingly a set of blank tables has
e b-111-s
ben prepared for Raking these olassifiostians of State and privat
three different dates, JUne 30, 1920, June 30, 1925, and June 30, 1930.
enCopies of tbese forms, which are labelled 13-3, 11-4. 114.5, and 3-6, are
ation
this
inform
have
to
you
for
like
would
tee
Commit
closed herewith and the
supply
i
ct.
distri
your
within
lie
ls
whose
capita
compiled for those stateg
of these forme is enclosed.
the
In classifying the State banks you oan probably use the reports of
dethese
of
ance
assist
the
ly
direct
secure
even
state banking departments or
s
Banker
the
use
to
case
any
in
ary
necess
s
become
partments. If, however, it
eg
bankin
the
from
get
first
ess
can
doubtl
you
al,
Directory for this materi
dates in ord_i
partment a list of all the banks in the state an the speoified
priv-te
thst your totals may agree with the official reoords. Ls to the
except
banks, the information may be somewhet more difficult to compile
In
they are under the supervision of the state oommissioner of banking.
upon.
other states, of course, the Bankers Directory will have to be relied
investments we
In determining what it.. should be included in loans and
4 inolusive
suggest that you follow the instructions given in articles 1 to
insure In-dwill
of the Board's Form 105a, a copy of which is enclosed. This
rone treatment at the three dates in the various states.
Very

truly yours,

E. A. 0o1danweiser
Chairman, Comeittee an Branoh,
Group and Chain Banking
/91aelosur•s.

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Federal Reserve Bank of St. Louis

November 12, 1950.

7saao T. Newton,
'Istierts1 ],icserve A,T,11."-•
Federal 7-ner-re lank of San Fremoieoe,
San Francisco. California,
tear

.
7e are arnling you herewith a supply of Tables

IT-e and T-e 7T7lich are to be used in further tabulating
information compiled in oonnection with the earnings
project outlined to you in our letter of August 11tho
There is also enclosed a menorandms on the method of
filling out these tables,
Vary truly yours,

J. 114 aiadlo,
3m0rstaxy, 0ceaudttee on Branch,
Group and Chain 3anking.
,eottt
)1 .4, .,e-t-licA2
•

411ELEGRAM
FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)

RECEIVED AT WASHINGTON, D. C.

7gs
Sa_Fr':ncisco Oct 20 4p -21
J H Riddle
Washn
Replying your letter October eleven we expbot complete reports
Branch and Group Brinking and suspensions within thirty days.
Second and third influiries have been written and all depends
upon promptness of replies. Report on earnings crannot ba completed
before fir of year with present force
Newton
827a

rommea•141011: INS
,
40/444444

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Federal Reserve Bank of St. Louis
•

2--11901

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Federal Reserve Bank of St. Louis

oatob,)-::. 20, 1930•

t3Wil 3, No4ton,
Federal Broorre Aaeat,
Podoral Heeerie 3ank of 3aa Fr41-10:1300,
711,A FTM131Z.00, California.
Jeer Ur, :e-rtou:
lith Table II-e which wau anbaitted
conneotion ,
to you with or letter of October 10th, the tuest;lu:1 1-eui
been raised as t

oialAion fisur:];a shol!ld

in olaseif:ing tho conalrlities inwhich bankm are looatWe feel that for our purpose the po:Iulntion ":1Tarr
year will be sufficient to make the olaseification
of the four z!ears. W6 sulgest, therefore, that ya9
popdlation figuros given in the January 1928 edition
Band MINallyte Direotory.
Voll7 tru -

J. A.
booretwy, Outaittoe
Group and Chain BazfIcing.

•
FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF IHE BOARD

October 16, 1930

AND FEDERAL RESERVE AGENT

https://fraser.stlouisfed.org
Federal
Reserve Bank of St. Louis
0

Dear Mr. Riddle:
Answering your letter of October 11, will state
that we are constantly working to obtain the information requested by your Committee but find the results to be decidedly slow.
Immediately upon my return from the Conference in
Washington, Mr. Sargent left on his vacation, and I have not
I
had an opportunity to discuss this subject with him.
should like to await his return before giving you the best
estimate possible as to the time of completion of the work.

Yours very truly,

-4.-rCA--'C-

)
et-A1414--

Chairman of the Board and
Federal Reserve Agent.

T. H. Riddle, Secretary,
Committee on Branch, Group and Chain Banking,
Federal Reserve Board,
Washington, D. C.

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Federal Reserve Bank of St. Louis

Octobo.
:20, 19 1
- 0.

Mr, S. G. Sargent,
Azzistnnt Iziederal Roseve Agent*
Federal Ilesorve Bank of Can Frareit;co,
San Francisco, California.
Dear Mr. .;argent:
ReceIrt is rieknoWia4goci of ,,our letter of
October 14th ouoloting saltlama replies fro-1 btalIs
regmrd inv! the ohlfting of banking connect lone az a
result of changes In the structure of industrial and
commercial enterprises.
Telly truly yours,

J. H.
2voreto.rj. Couulttos onBral
'
G

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Federal Reserve Bank of St. Louis

October 14, 1930.

4,10eIer,
Assistart iPederal eserve
•: of 3an
Federal Reserve .dan.
vraloisco, Claltforna,

olivitcr

Dear Nr, 71hae1erI
The 71atter of raanding off condition figures
in the OELIT.inKS nroject as samested in your letter
of October 7th was considered by us iten the analysis
form was drawn up, and, since the variation in some
of the ratios win rsspeot to small banks resulting
from rounding in t,Ais way in apparent, It was decided
to tea for the fall dollar filure. Nowever, we do not
orlY.f. to 7ress what MS7 qpear to be a metiouloas point,
of ries if von Vire a strorov feeling as to the sottofacteriness of -,-ounding off in the ease of the groins
of banks oasprising your division of the project.
Very traly yours,

J. R. Biddle,
Secretary, Committee on Brandh,
Group and attain latakiag.

•

1
90

FEDERAL RESERVE BANK

`
4 4104,

OF SAN FRANCISCO

tpi.40
,0,
,eArc.7,90

ISAAC B. NEWTON
CHAIRMAN OF THE BOARD

October 7, 1930

AND FEDERAL RESERVE AGENT

Dr. E. A. Goldenweiser, Chairman,
Committee on Branch, Group and
Chain Banking,
Federal Reserve Board,
Washington, D. C.
Dear Dr. Goldenweiser:
We were glad to receive your letter of September 17
ruling on certain points with respect to elimination of banks
from a particular year's compilation in our bank earnings and
expenses work. This will enable us to make our adjustments in
accordance with the general policy of the System.
There is another point in regard to this work upon
should
like also to receive an opinion from you. In
we
which
experience
with these data we have deemed it suffiour past
condition
figures in thousands of dollars
cient to record the
procedure
with the present study.
only and are following this
The earnings and expenses figures, however, have been recorded
in full omitting only the cents. We should like to know if it
will be agreeable with you for us to continue our work in this
manner.

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Federal Reserve Bank of St. Louis

Yours very truly,
ISAAC B. NEWTON,
Chairman of the Board and
Federal Reserve Agent,

By
OLiVER P. WHEELER,
Assistant Federal Reserve Agent.

ffr,f4:p_
v4
:Cf
.

FEDERAL RESERVE BANK

wileistov _

ISAAC B. N EWMON

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

(..

4IV°S71Piftes_44. .
474%

OF SAN FRANCISCO
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

e,....

October 7, 1930

Dr. 3. A. Ooldenweiscr, Chairmen,
Committee on Branch, Group and
Chain Banking,
Federal Reserve Board,
Washington, D. C.
Dear Dr. Goldenweiser:
We were glad to receive your lette,r of- eptenber 17
tiot,of banks
ruling on certain points with respect -Ur 1
rrIn& and
u
bank
inn
compilatio
year's
from a particular
s in
ur
U&çlO
adiacnt
enable
will
This
expenses work.
atom.
olia7
ge'neral_p
the
\,accordance with
/
,
r erd to this work upon
t
There iE
opinion from you. In
el
which we should_li
awe deemed it suffiour past-eiperie co wi
in
thousands of dollars
gures
cient tO r •r the
the present study.
with
edure
pr
followin th a
only and
gurec, however, have been recorded
and
The cm
the cents. 4e should like to know if it
in full cit i
s. •1ew4th you for u,,, to continue our work in this
will be
Manlier.

'Fours very truly,
ISAAC B. NnTaN,
Chairman of the Board and
Federal Reserve Agent,

By
OLIV.R P. WHKELER,
Assistant Federal Reserve Agent.

October 11, 1930.

Mr. S. G. 6argent,

Assistant Federal Reserve Agent,
?rancisco,
Federal Reserve Bank of *TiS
San Francisco, California.

Dear Mr, Sargent 3
mamentedge with thanks your letter of September 29th en..
Closing the seepensione sehedules which you ben received for the states
of Arizona, Oregon mod Utah,
The melds of the Division of Bask Operations stow that for
the state of Arisma for this period there were 28 suspensions; whereas
sdheftles have boo seat us for only 18. The asses of the 12 banks not
amounted ter ere dhena on the attached list with their beation and the
dotes of closing ant reopening.
?or the state of Utah the Division has a record of three suspended banks not now reported on. These are also named on an attadhat

ilth respect to the Sant of Oartemi, although there is a Salieb
pensions @Model* returned which resorts the asspssalos of this bank In
January 12, 1927, the reeerds of the Division indieste that it was olosai
onee believe on Karst& 9, 1921, As you will see from the introductory pare...
greph on the leak impension Mhedule, the COmmittee desires a schedule
for meth suspension in ease a Wok hes siMpodeisswe than ome.
In the ease of Cream the maw of Modules returned agrees
with the reeords of the Division of Mak Operation with the exception
of the suspension of the Carlton State sofi Savings Bank of Carlton, whisk
vas apparently not recorded before.
We note from the oopy of the letter to you from the banking
colaissimer of Utah that the INDOSSSity they are under of filing the
records of defunct banks in the counties where the failures occurred
acoounts for the omission of some names. Possibly this mans that if
he is su.plied the noses of the mAtted banks, he will be able to get
the taformation desired.
In the else of ArlSOMS there is no expinnation of the omissi
would set the
of the 12 names, and we shrill be glad if here also you
be procured.
mmy
listed
have
camissioner if reports on the banks we

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Federal Reserve Bank of St. Louis

Mr. S. 3. Sargent #2

WO /head be obliged also if you would express to the
signers of banking in Anson& and Utah our appreciation of the
they hese already man and will make to give us as eomplete a ass oossIble of bank snepenslons in their states. 71e should_ like
to have the esemiselemer for the state of Oregon thanked for the cordial
manner in whim be has responded to our request.
Very truly yours,

J. H. Riddle,
Secretary, Committee or
Group and Chain Ranhir;

fl-

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Federal Reserve Bank of St. Louis

•

Nemo and location

Olosed

Bac

Closed amair
2/LI!

nehmen Bank, Peoria

05/21

4/20A1

Citizens State Bonk, Phoenix

03/21

4/14/

sank of Ilorthrn Arlsona, Sneid

7/29/21

2/6/22

Somerton State _lank, Somerton

3/201

not give

Central Ba4k. *liolcenharg

2/3/21

state Mat of Metcalfe Wage

3/11/22

lzo 1an40 100,4 Peoria

2/27/22

mak of Pbrieutz, Pboadit

2p8/22

lamer' ami Noseheints Wake fespo

7/27/27

Glendale ilea of OalsOpos, Oloside

4/30/30

11, G. Carothers State beak, Somerton

2/28/30

Tons Talley NW, Yale

6/20/30

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Federal Reserve Bank of St. Louis

Imo

LoseIca

Casaereial and Savings Bank

Si... River

WEI

Blink Of Garland

Gallant

3/9/21

Central Bank

linginge agerall

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Federal Reserve Bank of St. Louis

October 11, 1930,

Mr. !sem B. MOston,
Federal Reform At,
Federal Reserve Beak of $im Premium,
son Premieso, California.
Dear Mr. Newton.
At the remat Oonforenee of Gammon and Ignite
it was saggeated that the Omeittee oa Nem*, Group and
Chain ilmottIng mato ea estimete of the time whom its report
will be submitted, la do this it is nesessary to hare roports from the Morel reserve bank' as to the status of
inemeation old& they are compiling or Molugromilitted
for the 0rmosittee mod as estimate as to the ties ohm
we my =west this information, Will you be good onmagh,
therefore to shook up on tko woes in your distriot and
give us an estimate as to when the material being prepared
-4,
Or oolleeted on the fell,wing subjects will be co
Bram* bankimg (crmeetlemesire)
Group beasking
Suspensions
Mornings
VOW trait, yours,

J. H. Riddle,
Br&ui.
Mieretary, Committee
Banking,
n
Grow) and Ch*

•

10, 1

_0 •
you
eaoh year as
---ojoot, as Vale will email us
tIAA
1he grouping of the banks OA
Lose. or Des profit to invested sapiCal shoulc
form !bra tine, If possible, as we shall
a tante foss for patent1rw tha tpioal verating rati banks aseolding to this gronuing, The .origitial fornL
pen awes woolod out the ratios fee the iatividual banks trAom
Of warms, be retained at year bank,
View Wetly Yours,

Biddle,
Senretarp, Conant.* on-Branoh,
Croup and Ohain BeektuR.

'Moo,

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Federal Reserve Bank of St. Louis

„-c-w

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Federal Reserve Bank of St. Louis

•
I

SeptImber 2, EVO.

Mr. S. G. Sargent,
Assistant Federal Reserve Agent,
Federal lowerve BAWL of San Francisco,
Son Francisco, California.
2o:Ar;.:r. Sargests
In aceordamos with your jotter of September 24th,
I a:, sanaingyau, under separnte cover, 150 additional
coTlif3s of the schedule an suspensions.
Yery trtily yours,

J. 11. Riddle,
Secretary, Committee an.Brandhe
Group amd Chain Banhir-.

•

FEDERAL RESERVE BANK OF SAN FRAN-CISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

September 24, 1930

Attention:

Er. J. H. Riddle, Secretary,
Committee on Branch, Group
and Chain Banking.

Dear Sirs:
Referring to the reports which the state banking
departments are preparing in connection with bank suspensions
since January 1, 1921, we find that all of the departments
want to retain copies for their own files.
We should like
also to prepare a copy for our own records and this necessitates
As our supply is insuffimaking three copies of each report.
cient to mAke all of these copies we shall appreciate it if you
will send us 150 additional blanks.
Yours very truly,

Assisten

Federal Reserve Board,
Washington,
D. C.

SAR
al Rese

Agent.

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Federal Reserve Bank of St. Louis

Sentember !.15,

Issaz B. Idelrtort,
?ederai eserve Agent,
?sclera Reserre qmo,cof Son trancisco,
$on Francisco, Celitbrnia,
Dear ilr.
4 ..
In sonnec t ion with the earnings
the CoLuitteei or Branch, Cron» and C.th Ranking
raitted to you with our letter orJ. --+ //t'
the rcpserve barks has nada BMA Et.
+yule tq the Irulllin! of negative itewli, WhAmit IA.VC
419ad to be sound practice 'al
.ith wivit
respect, and we ars aceordinglar passing than %long
zrou for --,r1Tir 1.11foraott ci irna, futidance,,
Very tray sours,

j,
latiitteo 3A.5ranoh,
oc-etar',
,
Ip aria Chain Banking.
GrO,

•
FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERVE AGENT

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Federal Reserve Bank of St. Louis

September 17, 1930

Attention

Mr. C. B. Hammond, Committee on
Branch, Group, end Chain Banking.

Dear Sirs:
Receipt is acknowledged of your letter of September 12
in reference to the information which we are now collecting
as to bank suspensions in the District.

The suggestions are

noted and will be passed on to the various State Banking Departments.

There has been some delay in compiling this information

due to the vacation schedules in the different Departments, but
we are advised that they will be forthcoming in due time.
Yours v

Assistant F

Federal Reserve Board,
Washington,
D. C.

truly,

al Reserv

Agent.

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Federal Reserve Bank of St. Louis

Septeuber 17, 1.

Newtol,
4,, Immo
Maria Neserrc
Federal aeserre Ba of San Front:dim,
Ben Praneleso, Oalifornia,
Deer Mr, areteas
Ii ecumeetion with the earnings project o
the Omesittee on Branch, Group Mt Chain Benking
ham been ailed to rule on certain points with respect
to the elimination of banks frau a particular yeasts
sompilation because of suspension* conseliAllatione or
all U. SNI are enaleOlne for 7aur InfaMmatlea ant
RilLrinogranh of the points raised and our
Metidererte
,yours.
Wiry trail)

16 A. Go1deumel50.44
,,saishe Group eat
accrlittn"
BT
Chain

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Federal Reserve Bank of St. Louis

September 12, 1930.

Mr. Isaac B. Newtoa.
Federal Reserve Agent,
Federal Reserve lank of San Francisco,
San Francisco, Californi-.
My dear Ir. Newton:
Now that actual work on the Suspensions
Schedules, submitted to you with our letter of July 26th, 18
ander way, questions are arisiag in certain states which reflect the differe.lt methods of keening records Ind the difficulties in reuorting exactly What is asked for. It is manifestly impossible to expect that spy one schedule could be
found equally yell adapted to all states and to thP 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 seadh uniformity
as possible, however, and to insure accurany in interpreting
the reports, it seems desirable to emphaeiae the following
points:
1. Sections 9 and 10 of the schedule, as
well as sections 7 and S, call for cinte an claims
by depositors only, but where the records !Ire such
that depositors' claims cannot be segregated from
other claims, that is, bills playable and notes
evidencing borrowed money, then total clairrs should
be reported, and a notation made to that effect.
2. Secured claims should include only
those claims secured by collateral or by collateral
and surety bond both, but not claims secured by
surety bonds alone. The latter should be listed
among general claims.

3. St is apparently the practice in souse
states not to list as claims those deposits which
are sPcured by collateral, because they are assumed
to be self-liquidating. For purposes of this schedule,
however, all such deposits should be listed as secured
claims allowed and the amounts realized by the depositors on the collateral should be shown as payments

September 12. 1930.

Mr. Isaac B. Newton #2

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Federal Reserve Bank of St. Louis

on these claims. The amounts reolized on the
collateral should also be shown under collections.
4. In many eases it is difficult to
for Secured Claims tht does not infigure
a
show
in :nrt are present also as Genwhich
items
clude
for this is that Secured
reason
The
eral Claims.
idating and, thereself-liqu
be
to
red
Claims are as-lu
s direct responreceiver'
the
of
onrt
?ore, are not
allowed
for divclaims
only
covers
sibility, rhiCh
not
Clnim
Secured
a
of
oortion
Any
idend purposes.
.-117,
it
to
d
segregate
l
collatera
lioolidoted by t'oe
horever, be allowed as a General Claim, and, toereclaims allowed for dividend purfore, increase t
poses. When this happens and a corresponding Change
is not mode in viaot wa7 originally reported as secured claims, it resolts in duplication. Where it
is possible within a reasonable time t , gat accurate figures of Secured Claims that are net soad do
not incltde amounts also incluled as General Claims,
reported. If this is
it io desired that they be
not oossible, however, ;old the only available figures
of Secured Claims include r:Lounts also present in
General Claims, it should be clearly indicated on
the schedule that this Mk the case.
Under section 10 the amounts shown as
moffeets to claims" should not be included either
under collections or under claims allowed.

If records are in such shape that the
figures cannot be sup-Aled in er,<actly the form called
for I.:. tILe _hove section or an:,- other sections of
the schedule, then the best figures available should
be given end a notation made as to exactly what they
reresent. This is essential as a guide in tabulating this -aterial in or7er that we may not comoare
'holly unlike figures from different states.
Tory truly yours.

inc.

C. X. Haraad.
1.1r the Committee on Breach,
Group and Chain Banking.

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Federal Reserve Bank of St. Louis

September 8, 1930.

Mr. Oliber P. Viheeler,
Acting Assistant federal Reserve Agent,
Federal Reserve Bank of San Francisco,
San Francisco, California a
Dear ::ir e .heeler:
Our telegraphic acknowledgment of your letter of
August 26th concerning the earnings study doubtless reached
you in due course.
The discussion of the project both in your letter
and in the memorandum enclosed is very useful, and it is to
be regretted that the memorandum did not reach us early enough
to fonn a part of the background for formulating the plan adopted.
are pleased to note, however, that with respect to many questions your discussion indicates accord with the program as it
has so far been worked out,
The erection of the body of data under an individual
bank methoj for the four years, 1926-1929, will allow manipulation in any number of ways. Your sugcestion that groupings
be made on the basis of homogeneous economic areas and by types
of business handled could easily be followed with the data collected. "re shall be glad if you will make e:;periments along
this line with your records as you get them assembled and keep
us informd as to thr results obtained. Our plan is, of course,
mainly directed toward classifying banks by the standard of the
rate of profit shown e Having segregated on this basis the unsuccessful banks, We can analyze them from many points of view-their size, where they are, their typical operating ratios contrasted with those of more prosperous groups and, as you sugest,
what economic areas and businesses they serve.
Very truly -fours,

E. A. Goldenweiser
Chairman, Committee on Branch,
Group and Chain Banking.
B/CH

tatt-t

4,1

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Federal Reserve Bank of St. Louis

1,7xn,

•

o_r12111 aesorie Lgont,
20-3eral -seem Bart of ,;an Franoisoo,
ln 1.Pranoir.00, CaliZornia,
':‘

'•;.$at' .ma,•

letter: of the
This i to aclaggelect;-;e
rc, re,motionnai
c
the
or
ure
22n1 with its enclos
of
ny
ecnipa
Trust
and
Bank
turnsd by the Valley
Bank
the
A*,
To
rnia,
rhoerixo the Bank of Califo
n, 4134
katio
gs
Aesee
and
.arin
of Itsly Rational Trust
2ant4
gs
snl
:;arin
the Monterey Count Trust
Vary truly yours,

C. B.
Oar th Usesitte• on aranoh,
Oroup and Chain Making.

•

FEDERAL RESERVE BANK OF SAN FRANCISCO
•".
01

ISAAC B. NEWTON

•

CHAIRmAN OF THE BOARD
AND FEDERAL RESERVE AGEN1

August 22, 1930

•s!
••••

Attention J. H. Riddle, Secretary,
Commission on Branch, Group,
and Chain Banking.
Dear Sirs:
This is in neference to the Board's letter of July 14,
1930, enclosing questionnaire regarding the operation of branches
located outside of the city of the head office to be submitted to
the more important branch systems of this district.
Replies to these questionnaires have been rather slow in
Two or three of the banks wrote that they would comcoming in.
pile the information as soon as possible but that it would take
Four of the banks, however, have completed
considerable tine.
their surveys and we are enclosing their reports as follows:
The Valley Bank and Trust Company, Phoenix, Arizona,
The Bank of California, 1. A., San Francisco, Calif.,
Bank of Italy Yational Trust and Savings Association,
San Francisco, California,
Monterey County Trust and Savings Bank, Salinas, Calif.
As soon as the others are received in completed form, they
will be forwarded.

Federal Reserve Board,
Washington,
D. C.

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Federal Reserve Bank of St. Louis

Ani:rus

11, 1930.

Mr. Isaac B. iirton.
?ederal 1ve _gent,
?edema 1eserve ?ark of nan 2rancisc0,
;11!
. ?.rrpoiaco,
DA4r7.:r„ Nevton:
The Committee on Branch, Group and Chain ?anising has outlined
a program for anal:;aing the earnings of national banks over a period
of four yerirs.
t t'le heart of the discussion with respect to the
changing nature of our banking structure Is the matter f wholowil-%
17-!nk nonsn'nsions, .z•iroatecily c_Ited as evidohoe of the tillure of
.
unit rIstom in certain -!a.-!Ic of the f7Jiures is, Of course,
the ,11h.:tion o: -rof7'.ts and losse„ rho ;:koti7ating force of banks
as of other busi:less enterprises ir f..-rnfits and their sucoess or
fAi17.:re it Jleiitured by tlir abilit./ or 1A0k of abilit
'—
satisfactory e,a.nia,g7s. ?his la esreciall signiricant
to bprkr, for
br,akor ,:iho is not shcwIn a far ri.L0 of
is under the constant teulf,t'Aior to take greater and grertt-:
thereby :,eopardizing the stlfety of his depositor' money.
ii-,za La*e
It is very important, therefore, to know wh,. tyLt of
not justifying their economic exiatence, vhere they are locuted and
why they are in this position. The problem lb to approach these
eluestions statistically for a period of years. Bats should be available in such form that they can be olassified in variour wfvs in order
to show any significant trends in etrninrs. Such material could be
classified by states to indicate teneencef; Of criccesr, or ilsilure in
the different sections of the country and in tIle 1.ar5.ous types of in,d-ustrial and agricultAxal mmunitic,s, and cross olafi(Y', to see if
a degree of profitableness is assoointed with sine, either of the bank
or of the oommunity in mhich it is located. Hwaing determined the
classifications af banks not showing eeason.,ble profits, it is desirh.
nble to know the operatia4 oonditions that are associated with such
a situ.cion. This requires a more detailed analysis of earnintrs,
expenses, losses, comy)sitIon of deposits and capital funds.

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Federal Reserve Bank of St. Louis

Mr. Isaac B. rewton #2

Auguet 11, 1930.

Many of the Federal Reserve Banks have devoted considerable time
and effort to analyzing the earnings of banks in their distriots. It
Is unfortenete, however, that there exists no body of statistical data
on earnings covering the whole coeutry for a period of years tht eould
permit groueines eaaec in a eeriete of ways or that is strictly comparable in the vL:rious eistrical.
The present program has eeen wcreed out in coneultetier with several
of the eederal reserve banks which have already been making investigations
In this field. It coneiets in working out various operatira ratios for
each rational bank for each of the years 19E6, 1927, 1928 and 1929, and
each leeeeral reeerve bank is reeueeted to compile the data for its district. e speciel or h- z been prepared and printed for transcribing the
Ihs enclosod ooly of
earnings data and flef::)rdin the Turivaz
to be self explana;:eeiaL
and
spocieen
a
this form as been fIllee
tory.
Pave 2 gives the peimary items which are to be oomeiled froe no
reports of corditien one neportr of e. rnings, ex?enses, nnd dividends.
On pge 4 oomplete instruetions are given ee to the comeesit;
he e
these iteee eed the recoecilietions from eel: to call.
exneme finlre6 will, of coeree, be the sum of the fieeree en the
two eeei-ereuel report:: of eereings, expeesee, and dividends tbr the
firos 7:111 bo the reselt of
year in neetioe. i?e, ort of condiLi
averne the respeetive fieuree on the fear reports of condition
(ee)r.ne, Jene, eetin, and December). In the year 19e6 there were 0
three cll. en eeee 3 oc the Sonn exuvit.ion is mAP for recording
oo.i.-tHrutphs of f';71res set
desired eneratire. :'Gttob 3cmuuteu
on ns1P %.
aa sendine eau a eupple of thee f;):...713 *-unl apereeimatele to
four times the ;Tauber of netional banks in yoer district. 7e) nre aware
that there will deelaleee be -recitals qt;StiOUB arisieg eeen the week
eats under way eboat ehich you may wish Lc, confer. There may be cases
where a change in the status of a Loa through merger or otherwise so
affects the condition or earnings fiaeees ie n given year that it Should
be emitted from the compilations of that year. It is hoped, however,
that in each of these oasee e special effort will be elde to perfect
e reticent:Ade good set of the neceesary incoae and oalance sheet figures
for the yeer in euestion. A too generous program of elimination of
'peeks woela obviously cause the loss of much vale ble amformetion.
-a) are working out pleas for trouping and anatysing the various
operating ratios after they h-ve been computed. These pins will be
sent you as soon as they are completed. It is stzgeeetsd, therefore,
tnet the °Lanka whittle are now !aline feeeerded to you sheltie not be
returned to Washington when completeee but shoule be held for the
pur ose Of maxing the various tabulations desired.

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Federal Reserve Bank of St. Louis

Mr. Isaac B. Newton #3

August 11, 1930.

gs is limited to national
Ppr the time being this analysis of earnin
somewhr:t doubtbanks only, In the interest of time and economy. It is
ada
Irluld
materially to
ful hether the inclusion of state member banks
to suggestions on this
the value of the study. The Cowmittce is open
simple matter to adi the member state
point, iio!mver, an it woula bG
simaiii be deemed advisable.
banks to the study at a later dOe if
Very truly yours,

J. R. aidale,
5ec2eturlr. Committee on 3rc.nc
lroup and Chain 34111:F:in's'.

x--

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Federal Reserve Bank of St. Louis

August 1, 19:30.

G. St:rrint,
- stunt Poderal Reserve :,gent,
Ass.
Fedora). leserre Bank of sur
Fra:Lai &co, Ca1 i r.).!2.

14r. J.

Dear Mr. Ss:.reent:
In accorclanoe -lin your telegram of July .21
I ams i.,ending you :lad; r

:aL

oov'or t-ro

fifty athiitional copiet; of th? bnnk suspension solledule.
Very truly yours,

J. 11. 1;1tici2e,
Deoretary, Coirtittee on 13•Group :Ind

4•TELEGRAM

111

FEDERAL RESERVE SYSTEM
(LEASED WIRE SERVICE)

RECEIVED AT WASHINGTON, D. C.

lgmr
San Francisco Jul 31 356p Aug 1
J -P.:. Riddle
Board Washn
Be your letter July twenty sixth will need two hundred fifty
more copies of bank suspension schedule in order that one copy
each made be furnished Federal Reserve Board, state bankinrr,
departments, and this bank.
Sargent
803a

111.110
,
KIVIIIMMIMMOWTIMIW

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Federal Reserve Bank of St. Louis

2-11001

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC BNEWTON
CHAIRMAN OF THE BOARD

July 29, 1930

AND FEDERAL RESERVE AGENT

Attention Mr. T. H. Riddle,
Secretary, Committee on Branch, Group, and Chain Banking:

Dear Sirs:
Receipt is acknowledged of your letter of the 26th instant,
enclosing several copies of a schedule to be used in collecting information regarding bank suspensions since January 1, 1921.
We are today addressing a letter to the various banking departments in this district, enclosing a copy of the schedule and requesting their cooperation.
We asked them for the number of schedules needed, and stated that they would be supplied with a sufficient
number as soon as available.

Yours very truly,
ISAAC B. NEWTON,
Chairman of the Board and
Feder
Reservs-,gent,

By
GEPT6'
'
S.
Assistant F der I Reserve

Federal Reserve Board,
Washington,
D. C.

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Federal Reserve Bank of St. Louis

•
FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD

July 28, 1930

AND FEDERAL RESERVE AGENT

J. H. Riddle, Secretary,
Committee on Branch, Group, and Chain Banking,
c/o Federal Reserve Board,
Washington, D. C.
Dear Sir:
Inasmuch as the Division of Analysis and Research of this
bank has been conducting studies of the earnings and expenses of member banks, Chief Examiner Sargent has referred to me both the memorandum which accompanied your letter of June 25 to Mr. Clerk and a
copy of Mr. Clerk's reply to that letter.
During the past year or more, we have been engaged in a
study of the 1928 earnings and expenses of member banks, which has
been partially designed to demonstrate the relative merits of the aggregative and individual bank methods referred to in your memorandum.
Practically all of the detailed work of that study has been completed.
It is yet necessary to prepare a written report, however, and we hope
that such a report may be finished within the next two weeks, although
The men on our staff who has
it may be delayed beyond that period.
been handling the detail of this study was called from the office this
morning as the result of a serious injury suffered by his rather elEven though our report may
derly father in an automobile accident.
not later than the midposition
a
in
be
to
hope
not be ready, I shall
you raise in
questions
the
of
discussion
a
you
dle of August to send
your memorandum.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Yours very truly,

OLIVER P. WHEELER,
Acting Assistant Federal Reserve Agent.

Roservo
1ndern1 licy,air7e
san Franc i

;4)

•

nnr
oecL000 s
The C(. vr!mittee or 3rannh, 4renn and Chain
a detalleu
its
be
part
enspntial
of
an
should
:ork
-ee",rn apn that
The rspid
the
susnensions
since
1
1921.
honk
begirn
nr7 of
1-o1-yets of
.;In eed brerch barking is re.oreed by
*reTth in recent Tnn-, in ,sro,
many ns an ontgrowth of the -"ere*, number of tank suspensions 7,n1ch
have tan place derino. the past decade. „hether or not this is
detemine the
true, it is obvious that before the Colanitoe
fall rignificrome of this mortality nmeng bankirg irstitotions and
its relation to the new trends in harking it nrIll be necessary to
make a more camnlete analysis of failores than the data onmniled
st presert will permit.
las -orogram orcoosed is a substantial nu6etakine, Ana to be
soceessful it is necessary to have he full cooperation of the
7,
:rioos state banking eenartments, as vel1 as the v.:,riuue Federal
reserve trInke. This nrogram will entail eonsiderenle effort and
expense on some of the stnte bauldnF departmentte, but in view of
the wide spread suffering eeused by hLoic 6UST)eraii0i 1 S it is hoped
that the state sonerintendents will give t\,e Ivaiom every possible
assistance in this study. In each of sixteen states of the Union
over twenty per nent of the banks in existence in 1920 have failed
since that time, and in seven of those over iorty per cent of the
banks have failed. These failures are continuing at a high rate,
more banks having suspended so far this year than in any similar
period since 1924. This is one of the most important problems
facing raz:ny states and cer4tin1y one of the major problems of the
whole country, and many states are doubtlei:s already struggling
to devise '!rays and means for bringing !Ibaut greater stability
and security among the banks of their state. Under the °trouts..
stances it is anticipated that the states will welcome the opportunity to cooperate with the Committee in this work.

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Federal Reserve Bank of St. Louis

lir. Isaac 3. Newton #2

July 26, 1930.

It is appreciatod, of course, that many states are operating
on very limit,A budgets and may find it somewhat difficult to undertake this extra work, !,-ut it is hoped that in no case will the difficulties prove insuperaJle. It may be advisable in certain cases
for the Reserve Bank to offer its services in devising 'Nays and xmane
for colleoting the data, and this cooperation, if necessary, might
actually- i.liprove the o:unlity of he infot-tion.secured.
A tentative ochedule for collecting information on bank suspensiJns et.s submittrf :cr ruggertions to the banl,Ing 'lens_rt,clents of
rnnc.n
fiftcen st,7..tes in ,
ihich thlispensiors have
7y Lvty. JL1
fr,71m theca states and the apparent willinr
to cooperate in o*mpiling uhe clf.ta were very gratifying. tt the
sa:.ae time a number of saggebtions were wde as to revsiors of the
Jherever noseible these surgetAions have been incornorated
Cr 'n
ir
In some cases, horever, the suggestions could
tc lc
-idopted because of the differences in terminology
J;rid
1r 17(3 'Trion:4 states. Tt hra bsnn necessary to draw
up the cchn6)1e in terms .yhich would 'rit as near17 as oossible the
records of the various banking .iepartments. The Comptroller of the
1-,,
.rrnoT, bee 0!17mn Ms fnll 000reratton to the Cofamittee and has
vellinem,ss to furnish the inSonx.tion regzirulog
- ttcrAl
few
•
The s:the6u1,3 s
ly a6o:•tcd. 11i been prO'it;qi nd
'noice art:, Illor.d. 1-vrele1th. A anrnly is being for/Tamed to you
,77o7r. The Committee would like you to preiient these
departments of tho3t states :
- ;hoe
+.o the
Aistriet with the request that they iii
-:77m 1111t-j
out n '.ehedule for ea'...h aark Which suspended between january 1, 1921,
J.71e 70, l r.'70. It is h7loed 7.11t the informviion mi. be supplied
n.su1ly and as eariffnlly RS possible a-Ja not in a perfunctory m6.ener.
71he importrmne of the sub,lect and the value to eacn sw.ii.e of th rasAlts of the investieetion wonld seem to warrant spacial care in the
nrenr_rqtion of the schedules.
•ts these schedules are completed ami r9tunl..;,1 to jou, wou .nay
Arish to revinw them and supplement them with aaj apJolai iAianatian
,vhich von may have. Your views as to the causes of the f i1ue in
7onr district would be especially valuadle to I,no :;c4Amittee.
VAry truly yours,

O. H. !addle,
Secretary, Committee (;r1 Branch,
Group ana Chain blinking.
Lne.

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Federal Reserve Bank of St. Louis

July

Mr.

2, 1930.

S. G. Sargent,
Assistant Federal Reserve Agent,
Federal Reserve Bank of San Francisco,
San Francisco, California.

Dear Mr. Sargent:
Receipt is acknowledged of your letter of July 19th
with the enclosed reports from the Tvrlous state b
departments of your district regarding the number of
branch banks in operation from 1900 to 115.
Very truly yours,

J. H. aiddle,
Secretary, Committee on Branch,
0roup and chain Banking.

t•

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON
CHAIRMAN OF THE BOARD
AND FEDERAL RESERvE AGENT

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

July 18, 1930

Dear Lr. Riddle:
In the absence of Mr. Newton, I wish to acknowledge
receipt of your letter of the 14th instant, enclosing several
copies of a schedule to be used for collecting information regarding the operation of branches outside of the city in which
the head office is located.
It is our belief that the majority of banks in this district will be glad to give us the information desired but, due to past experience, we anticipate
that two or three will offer strenuous objections.
je believe, as you do, that in most cases it will be
sufficient to send the schedule by mail but that in some cases
a better result may be obtained through personal interview.
Your request will have our prompt attention, and the information will be forwarded to you at the earliest possible moment.

Yours verrru1

Assist

al Hese v

J. H. Riddle, Secretary,
Comndttee on Branch, Group, and Chain Banking,
Federal Reserve Board,
Washington, D. C.

Agent.

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Federal Reserve Bank of St. Louis

July 21, 1930.

Mr.

G. Sirgent,
Assistant Foderal Reserve Agent,
Federal Reserve Bel* of Dan "irancisco,
San Francisco, California.

.9eur Lir. 6tirgezit!
Receipt ib aohnowledgud of your Letter of July
I.th with the enclosed replies from 19 banks to whom
you addroEsed the reouest for inform.tion on changes
in industrial ankl coosercial enterpria3s which affect
banking flonneotions.
Very truly yours,

J. H. Riddle,
Secret8rY. Comittee on Brinch,
Group and Chain Banking.

•
FEDERAL RESERVE BANK OF SAN FRANCISCO
IsAAc B. NEWTON
CHAiRMAN OF THE BOARD

AND FEDERAL RESERVE AGENT

July 23, 1930
.

Riddle, Secretary, Committee on
Attention lir. J.
3ranch, Group, and Chain Balking.
Dear Sirs:
Receipt is acknoTled7ed of your letter of July 18,enclosing
several copies of schedule to be used in collecting information
regarding the operation of croup bankinp system; which you request
be submitted to the more Important groups of this district. These
schedules are being sent out today and, as soon as replies are received, they will be forwarded to you.

40e
:
Y°1114:

4
Ass13

Federal Reserve Board,
:;ashington,
D. C.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Agen t.
'
;•eral Res

e
I 7.•

.
:

-J.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

July 18, 1930.

Mr. Isaac B. Newton,
Federal Reserve Agent,
Federal Reserve Bank of San Francisco,
San Francisco, California.
Dear Mr. Newton:

•

The Committee on Branch, Group and Chain 3anking has prepared a schedule for collecting information regardin:7 the operation of group banking systems and would like to hnve it submitted to the more important groups of the country.
It is the desire of the Committee to secore.as much information as possible as to the actual operations of group banking
systems and such information as Is available regarding their
merits as compared with other forms of banking organizations.
In the collection of this information the cooperation of the
controlling agencies of the groups is solicited. This is purely a request, however, and in no sense a requirement. The 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 univere,1 interest in this subject and the
imilortance given to the decilopment 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 apneas in your
distriot. 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 resilts might be
secured by a personal visit from some reprekentative of the
Federal ;coerce Bala to the head of the group system. When
these schedules are completed and returned to you, perhaps
you may wish to look them over and sapule_ent them with any
special information or views which you may have.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Mr. Isaac 3. Newton R2

July 18, 1930.

A number of copies of the schedule are enclosed, and if
additional copies are desired they can be readily supplied.
I swgest it be submitted to the insitutions in your district
listed below or to any others which you think would be productive of results. As a rule the names on the list are
holding companies, but in a few oases the names of banks
which control other banks directly were included.
Anglo-National Corporation, San Francisco, Calif.
First Seourity Corporation, Ogden, Utah
Old National.Corporation, Spokane, Washington
Marine Bancorporation, Seattle, Washington
First Seattle Dexter Horton Securities Co.,
Seattle, ;aehington
pacific Bancor9oration, Portland, Oregon
First National Investment Co., Boise, Idaho
U. S. National Corp„ ortland, oregon

Very truly yours,

J. H. Riddle,
seore!lry, Comnittee on Branch,
Iroup and Chain Banking.

cl•g?&

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

July 14, 1930.

jr. Iswih i. !e-'ton,
Federal 7e,serve ,gent,
Federal 'eserve Bank of San Francisco,
Sma Francisico, Ctlifornia.
Dear Mr. Newton!
"'he Committee on Branch. Group and Chain ennking has
ereehred n sehA.e for oollecting inforwItion regnrding
the operntion of brerebes locnted outsPe of the citr of
tne head office and would like to have it sebmitted to
the .ore important branca banking systems of the country.
It is the desire of the Committee to secnre ai muce
infOrmation as possible as to the actual operetiors of
brench banking sys'ene and sLch inform.;tion at is availble
regardinr the merits of such institutions as compared eith
other forme lf rilking organizations. In the collecti.m of
this information the eooperation of the bsres operating
branches is solicited. This is purel7 e request, however,
and in no sense a requirement. The purpose of the scheddle
is to InOicete the type of Information which is desired nnd
to insure the colletion of comperable data in some systrimstio form from the verious institutions.
/r view of the universnl interest In this subject rlid
the importance elven to the devFlopment of branch b..neing
evrtems, those responsible for their operetione will loubtless welcome the opportunity to state their 7iews nd to
- enefit of thrir experience.
mive the Committee the )
Following its usual procedure the Committee would lite
to
preent the schedule to the branch systems in your
you
matter of your
itstriet. The method of madmission is
owe discretion. In =et cases it may be sufficient to
send the schedule by mnil, but in some clsos better results
might be *soured by n personal vi it from some representative of the Federal 7eserve Rank to the heal of the branch
system.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

I. Isaacs D. Newton f2

July 14, 1930.

A =saber of Copies of the r.oheciula ars enclosed, tInd if
additlQnal ouei.es are desired they con be readily supplied,
I sumtist it be tsubmitted to the following institutions in
your district or to any other 30100te 1 1 St WhiC3/1 yol think
woula be produotive of better rewalts,
Yall'9ank, Phoenix, '.risone.
Soy.-?irst National sank of Los Angeles,
Loa Ancrilles, CelifOrnia.
List:loan Trutt. ("orrery, San ?rune isoc, Cza i f.
3ank of Italy, Sari FranOlsoo,
7•Ns ,
, rertios, California,
;a1ifornir.
utak of Paltrier% of ealif„ Lou
if.
rt of Ialifornin, W. A., fisu Frenotsoo,

Very truly yours,

J. H.
Feorr,tatT,

001112i %Let

on 3. aneth,
3anking.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

!•

•

FEDERAL RESERVE BANK OF SAN FRANCISCO

July 7, 1930

Mr. J. H. Riddle,
Secretary, Committee on Branch, Group and Chain
Banking,
c/o Federal Reserve Board,
Washington, D. C.

Dear Mr. Riddle:

In Mr. Clerk's absence, we acknow—
ledge receipt of two copies of X-6608, Digest
of State Laws Relating to the Purchase of Cor—
porate Stocks by Banks and Trust Companies, re—
quested by him.

Yours very truly,

CASHIL;:R.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

%num 5, 1930.

B. Newton,
11'n de rn1
rant,7
serve
•J'ederal Reserve Bank Of '3an Franc 1800,
en Francisco, California.

As you doubtless know the Coanittee on 3rbnch,
Chain Bndn hs blen urepa,ring ung
p:•ogratn for it E. irv,stig-ltion, qnd vn. •i011fi
!dati re in
and forms for homn;lint
Che.C.111 -:
hare
of
these
Dreparation. Some
to ybla either for suggertions !Is to for.n or for the acollection of data, and others will follow s'-iortly.
be
leaving ?;ashin. ton tomorrow in
three :ncrths, soen.tifiz .nost of th't tine in Furope. in
abtence t-ie sec ret9rj, of the Committee, hr. fliie, sill
keep in tourth it :rou -.nd Till submit to yo' other schedule:
,orked into final spe. I, of course,
forms as trley are !
have gone over the genern1 scope of the study with
try nnd some other members of the Committee and it :.
remains to work out the final details of the proposls.
:hese schedules and forms will h, pissed 7.2-:on by other
bars of the Consuittee, in my absenoe, nd in special °Ilse:,
by other members of the System before Viey are
r;dopted rind submitted for the collc,ction of .19V:
district. Thu may be assured, therefore, that the.;
received careful attention.
Very truly yours,

Chairman, Committee on Branch,
Group and Chain Rankine.

4•

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B.NEWTON
CHAiRMAN OF THE BOARD

Tune 10, 1930

AND FEDERAL RESERVE AGENT

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Attention: E. A. Goldenweiser,
Chairman, Committee on Branch, Group
and Chain Banking.

Dear Stirs:
Receipt is acknowledged of your letter of Tune. 5,
regarding the development of branch banking in this district
prior to 1919.

In accordance with your request we are

writing the various state bankinF-7 departments of this district
for the information requested by the schedule accompanying
your letter.

Yours very truly,

Federal Reserve Agent

Federal Reserve Board,
Washington,
D. c.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

,aaar S

Ma. Isaac B. Newton,
?eaeral aeserve Agent,
Federal Reserve Bank of nn Francisco,
2an Francisco, California.
Dear Kr. Newton:
In the study of branch baakang tbe Committee on Branch,
Group and Chain Bankieg thinks It desirable to show something of the development of brancaes as ear back as 1503
in 'order to give a fairly (=plate statistioal story of
thiL moveaent. Apparently no reliable statistics on branch
banking have been compiled for years prior to 191 or 1920,
and it is proposed, therefore, to aca the various state banking departments and, the Comptroller of the Currency for cartain data for selectee years during that earlier period.
Aecordingly a simple schedule has bren prepared asking merela for the number of bfanches, loans end investments and
total resource& of each bank ahieh operated one or more
branches in eny of those years. There were probably not
more than am or three hundred sue i banka in the whole
country Fna the comnilation, in So far as the data is
available, will not be a btaarnsome one.
A copy of this schedele is enclosed and I sugaest that
you reneest the apnropriate state banking departments to
sapply this information for the states or narts of states
which are includea ithin your district. ' separate schedule
is to be made out for each bank operating url.r state law
which had brancees In any of the yearaumentione. ?he -3ata
for national baras will be supplied by the Comptroller of
the Currency.
The secretary of the Committee will forward to you in
a few days a supply of these schedales for use in your
district.
Very traly yours,

aluirmso, Committee on Branch,
Group and Chain Banking.
c.
c,, vataa
,

-5)

,""2"--174-"
2

•

FEDERAL RESERVE BANK OF SAN FRANCISCO
ISAAC B. NEWTON

CHAIRMAN OF THE BOARD

June 11, 1930

AND FEDERAL RESERVE AGENT

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

JUN .1S 1330
arvImeiNoc..FF.F.Acr.
ANC/
:J

Attention: E. A. Goldenweiser, Chairman,
Committee on Branch, Group and
Chain Banking.
Dear Lirs:

Receipt is acknowledged of your letter of June 4, and
in accordance with your request steps are being taken to secure
lists from member banks in cert5'in selected cities or co-Tunities in this district, of names of industrial and commercial
enterprises which through eithr!r change of control, consolidations
or merger with other enterprises have transferred all, or part
of their banking business to other cities.

Yours very truly,

Federal Reserve Agent

_
Federal Reserva,BW,rd,
Washington,
D. C.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

zocieral. • r.:,.-3. r.,r7e 3311-.
-rare!. •oo.

•

‘7..

• r

iforilT.

r...!on nit tr,r,

F. n

—inch,

ricirc is to 31ie, if noesible, the principal catiees

-h
'

e Trent tendencies in b-rfkirre.
for tl,

. elierli thit
It is o

w'oie_th 1-.Prn bee-- going, or Ir the organization and striv,f11,-o
dustrinl and commercial enterprises throtaftholt the cou:4.,.,,
saltee in a shifting. of banking
tor in the sitnntion.
less hren
l'ir1717

fri ne-7..r/y all 3a:mi1nities there have doubt-nter*,71sr,s with local "7,:-!nlring cOrtions whic

r't fi-re years he bc•en nmelpassated .It! orrole--`,--,r1

:)riternrisen —ith hendr-unrters in

F o:ne

othnr. eit7, usuadly

.netropolitan district, with the v,sult th-t thc:•ir prIncintil banking
connections '-tr.re likowise bnen trnnsferred to b,ints in thn 1—r,er
cities .,nd only nom,.nal aco—ints 1.ft in the 1och1 br:nks.

Otl,r

'hc,uctriot: :ist1-7E1 passed into the oontrol of capitalists locnted
.1.:Aiv;iere with a oonsequf_mt

:. tift in banking connections.

communities this has probf.bly resulted in a nut loss of busim
to t'ae banks, wiAile in others the :7ain gia:f have eqtraled the loss.

75. 7c7rtort 42

June

e:V.)eCitt113"

i.hoz!

In volume of

1910.

the metropolitan areas,

per4ps bPen a net eain in banking connect!ons or
sineot.

7.,h1e it is cicr/y not feal,ille to Lilte a comillete
of thete o'Lanz zi in 1,:aik connections so us to show jus
r colgannitiet have lost or 4vinc,d t:17 the procevs,
pottible to secuce 1,)r telectrn cities or communitis a .
Instances -mere industrial or trade combinations hsvo rc
the IDEiti, of 1.,:iLdnes to the bank& of th,t 5rea.
wile tvtilying recently before Lae
suol a list of
riu4.1,uu

tile to. oi

1i0Ube

COUGOlidatiOut

53COULtb to ttiL

rut
p.

Jk L

itle

itt)
f

control

:Yip

0oiaviitte
or alergen.

group of thEriks.

you can :,,:atire such list:, from ta
7ertain Eelected

It :0-te

ember

Or 00:--1xuni Lios of yo..ar

Lb.«

comiter. e!
or

I ro

Euitrprio,e_ aave 1..h.tisfLrrt- all or a p-rt v.
ih other cities.

nlIP

114..s bet transferred snoulv iiEcedlue
b

might also note the accounts an

')11000,
;
- Pbs.

4.Enting Lae reports
lave b.- en

•Pf:.iu

d by thr

It it supo.est:.d that you r,--flarst thi E info :la . t ton

rout he member banks in
some tvelve or fifteen towns or cities in
your district v:qeying in else from the rery Beall towns to the larger
cities.

It will, of course, be treated confidentially.

ittsched is

a suggested schedule for collecting the InfOrmatlJn requested.

https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis

Mr. Isaac 3. Newton #3

June 4, 1930.

Another factor which affects the b hking situation in many
-,:tmT,Inities is the change which has occurred in methods of 41t,
trit-Ition, especially the chain store, the chain rostaurant and the
chain service station.

lerillps the IY.nkers from whom you

the above information wnuld indicate ro4gh1y the extent to which
they live been affected by this :Ald similar developm2nts.

Very trAly jours.

Th'1:11u, OOMWIWC in Bach,
Group and Chain Banking.

7,4 7.rt0.

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Federal Reserve Bank of St. Louis

Full text of Records of the Federal Reserve System, Record Group 82 : Committee on Branch, Group & Chain Banking: Federal Reserve Bank of San Francisco, Box 1801, Folder 4

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