The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
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Federal Reserve Bank of St. Louis
Committee on Br[J'lch Group & Chain
Banking ( 'ar 20 - ay 6 1930)
Branch Banks
421.Jl
•
r
END
KIND OF MATERIAL OR NUMBER
NAME
OR SUBJECT
SHEE T
421.11
Committee on Branch Group & Chain Banking
DATES (Inclusiv e)
Mar 20 - May 6 1930
PART HUMBER
3
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Federal Reserve Bank of St. Louis
,,
•
'•
f ice Correspon
To
FEDERAL RESERVE
BOARD
Mr. Golde.mveiser
From Mr• Cummings
-·
Date
Ma:r_ 6, 1930.
Subject:hoy_isional table forms cover~
branch banking, chain or group bank;- ing. merger.a._ and suapensiona. _ __
_ _ _ __
You asked me to outline a possible statistical set-up covering the above
topics, for consideration by the Board's branch-banking committee.
The
attached forms run along the lines of the Board's tabulations in the
past, with some elaborations.
They are pretty cut-and-dried, and may not be very
helpful to the Comnittee.
It is probably too early to undertake to work out precisely any set ot
text or derived tables ·such as these~ since mu.ch will depend upon the basic
schedules used.
Mr. Riddle tells me that
he may get the work-sheets of the
illia inquiry, and if these are used the scheme of the statistical analysis
would of course be in some respects modified accordingly.
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Federal Reserve Bank of St. Louis
-·
•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Text table•
~-14
15-21
23-26
27•36
Branch banking
Chain or group banking
Merger•
Bank failure•
State table• 1-mY
•
1. Stl!JJ!Oa,
of
fanch
banking
development ■ ~924-129 .
••
To
••
:
Number of banks:
1924, June ••••••••••••
192'7, Jeb. • ......... .
1929, Dec ••••••••••• •
Number of banks operating branchea:
Total
1924, June •••••••..•••
192?, Feb. • .•••••••••
1929, Dec •••••••.••• •
Operating h me-city branch•• only
1924, June ••••••••.•• •
192?, Feb. • ..•.••••.•
1929, Dec ••••••••••• •
Operating outside brancbea only
1924, June ••••••••••• •
192?, Jeb. •••••••••••
1929, Dec ••••••••••• •
Operating home-city and utaid.e branchea
1924, June ••••••••••••
1927, Feb ••••••••••• •
1929, Dec ••••••••••• •
Number of oranchea:
Total
1924, June ••••••••••• •
1927, J'eb. • ••••••••••
1929, Dec ••••••••••• •
In h --city
1924, Jll.ne •• .••••••.••
1927, !'eb. • ..•.......
1929, D c ••.•••••••• •
Outside home-city
1924, June ••••••••••• •
192?, Feb • •.••.•.••.•
19.29, Dec. • .........••
Maximum aize of branch
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Federal Reserve Bank of St. Louis
system■:
1924, J'Ulle • ••••••• • •••
1927, Feb.
1929, Dec. • ••••••••••
.......... .
.
tate
..•
.•••
•
Nonmember
banks
•
2.
Size
of
.•
Year
.•
:
.• Total
:
••
••
1
.•
.•
home-city and other branch systems: 1934-1929.
: Ma:rlmum
Branch system•
• she
C,lassified by number of branches operated:
of
to 10;11 to ~;21 to 30;31+: system
2 ; 3 to 5
.
.;s
.
.
Total
1924, June
1927, Jeb.
1929, Dec.
Syatems restricted to
home city:
1924, June
1927, Feb.
1929, Dec.
Systems not restricted
to home city:
1924, June
1927, J'eb.
1929, Dec.
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Federal Reserve Bank of St. Louis
Data available in Federal reserve files
with recompilation
. .
..
.
•
3. Home-city and outside bra.nche• in small and large systems: 1924-1929 •
Year and
character of
branch or
syatem
.
..•• ...•• Total·.••
•
.•
.
1
2
Branches
In sntems ORerating-•
•
; 3-5
; 6-10 ; 11-20
:Branches
.
.
.:• 21-30
Total
1924, June
1927, J'eb.
1929, Dec.
Home city
1924, June
1927, J'eb.
1929, Dec.
Outside
1924, June
1927, Feb.
1929, Dec.
In systemt1 restricted
to home city
1924, June
1927, J'eb.
1929, Dec.
In s19 terns not rea tri cted to home
city
1924, June
1927, Feb.
1929, Dec.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Data available in Federal reserve files
with recompilation
•
i
31+
.
.
--
•
--
Size of ational, State member, and nonmember
branch syatema: D camber, 1929.
Banks operating branches
.:
Size of syatem
.•
ember
.: Non- .!
•
•:memb er:•
: Total: Total: Na,- :State
:
:tion&l:
:
:
Branche•
=of me iber banks
To t a1 :.To t&l :Na.: State•:
:
tional :
0
..
o! non. meb-~~r
cr..uAa
Total
Total.••
1 branch••••••••••
2 branches ••••••••
3-5 branc ea •..•.•
6-10 branches •••••
11-ro branches •••••
21-30 branches •.•••
over 30 branchea •••
Syatems reatricted to home city
----- ----- ----- ·- ----- ----- ----(Repeat atub)
Syatema not reatricted to home city
(Repeat ,tub)
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Federal Reserve Bank of St. Louis
Data available in leder&l re1erve !ilea
with recompilati on
5.
Systems headed up in large and small cities: December, 1929.
:Banks
Branches!/
-----~.~-~.---------:r.
:----__,;;;;____.;_ _ _ _-!'""_ _
Population ot
city of parent
baDk
:
;Of member banks
Member
:
:
: Non- :
:state:
:Total: Total: Na- :state:member :Total :Total: Na:
tional:
:
:
: :Uonal:
.
.•
••
Total, banks operating branchea
Number, total ••.•••••••••
Under 25,000, total ••••
Under 2,500••••••••••
2, 500-5,000 ••••••••••
5,000-10,000•••••••••
10,000-25,000 •.•••••••
25,000-50,000•••••••••
50,000-100,000•••••..•
100,000-1,000,000••••••
1,000,000 and over •.....•
Percentage in plac a ot
lesa than 25,000, ••••••.
:Banks operatin,g home city branches
onl7
(Repeat atub)
Banke operating outside branch.ea
(Repeat stub)
Data av•ilable in Jederal reserve
with recompilation
file ■
Banks operating no branchea
(Repeat stub)
!/
Including branches located outside the city ot the parent bank where
such branches are operat d. For distribution of branches b7 population
ot city in which the branch ia located. See Table 7.
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Federal Reserve Bank of St. Louis
Nonmember
banka
.
I
6.
Branche• in large and 1mall citiee: December, 1929
Popu.lation of city
in which branch
is located
:Branches
.------------...----• Of member banks
•
lvon:. Total.:.
:member
.• N... .•
Tota1:tiona1:state •
:
.
.
.
Total
Number , total. • • • • • • • • • • ·
Under 25,000, total
Under 2,500, •••••••
2, 500-5, 000 ••••••••
5,000-25,000 •••••••
25,000-50,000•••••••
50,000-100,000••••••
100,000-1,000,000••••
1,000,000 and over •••
Percentage in places ot
less than 25,000 •••••••
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Federal Reserve Bank of St. Louis
Home-city branchea
(Repeat stub)
Ou.taide branches
( Bepeat •tub)
Data available in 1ederal re ■ erve
file ■ with recompilation
7.
Capitaliz ation of parent bank and size of
branch system: December, 1929.
hea
•
;;;.;'-==--------:~----,._~;;.:;.;;=....
.;;.~=-_
·------..
f branchea o rated
Cla
Capitaliz ation of
parent bank
.:
Total •
1
..•
•
2
•• 3-5
•
.
. S-10 .• 11-3> =21-:,:,
•
.•
•
•
•
Total. •.•.•
Un er'$25,00 0 •.••.•••• •••
25,000 to under $50,000
$50,000 to under $100,000
$100,000 to under 500,000
$500,000 to under $1,000,00 0
1,000,000 to under 10,000,00 0
$10,000,0 00 and over •..•••••
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Federal Reserve Bank of St. Louis
Data available in 1ederal reserve
files with recompila tion
•• 30+
••
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
a•
.Aggregate capital and loan• and inve•tment•
of banka b7 aiz of branch eystem: December, 1929.
(In thousand• of dollar•)
Size of
■79tem
.••
.
Member bankw
ill • Total
•
"banka •
:
:
Bon... Na.- .• State:. member
. banb
.• tional
~•!!.t• e&Eital
To't&.l ••••••••
Unit banka ••
Banks operatiDg--
1 branch ••••••••••
2 branch•••· ··•···
3-5 branchea ••.•.•
6-10 branches ••.•.
11-a:> branches • .•.•
21-30 branch••·· ···
Over 30 bran cha ■ • ••
Loan• aDd investment•
(Repeat
■ tub)
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
9. C&pital fund.a per $100 of deposit
liabilitie•, for unit banka and for banlal
operating branches by size of branch syetem:
Decem r, 1929.
.
Size of a79tem
Capital
: funda
: (capital,
: surplus
..•
.:
and
profit■)
• Depoait
• Capit~
:liab111 tiea: fund■
•
per $100
:
•
of
•• deposit
:
•
• liabilities
:
.
..
.
.
ill bankll
Total •. ......•
Unit banks •••
Banks operating--
1 branch, ••••••••••
2 branches ••.••.•••
3-5 branches •••.•••
6-10 branches •.....
11-ro branch.ea •••.••
21-30 branchea ••••••
Over 30 branches ••••
National bankl
(Repeat atub)
State banka
(Repeat stub)
10. Branch systems headed up in selected cities: by years.
:
.
City of parenty :
·Total
bank and year
:
A
:
___l9.
:r:re .
rk
Y_
Branches
.
J
Banks
.
:
•1
.
e _ _ _ _ _ _ _ __
-:-;-----H...;o_m_e___ci___.tY,.__:-:----:-:---:----0-u_t_s_i...,d__
·
9Perati~g bran~hes
:
NonState:
;
Na:Total:
Nontate:
:
NaNon- fetal Total:
·Total· Na- • State·
member
=member:
=uonal
:manbor:
:tional=membc.r
:
:tional:member: member~
:
:
!
:
:
2
:
:
:
:
!
•
ity
1924, June ••
1927, 'eb •••
1929, eo •••
and earlier
years so far
as available
!>etroit
1924, June •••
1927, 'eb ••••
1 29, ec ••••
Etc.
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Federal Reserve Bank of St. Louis
Cities arranged in order by number of branches in 1929.
Does not include branches of banks with head offices outside
the selected city.
•
t
11.
Size of branch systems headed up in selected cities: Decembe:• 1929
City of parent
bank and class
of bank
.
...
:Total:
%
New York City
Total ••••
National ••••••••••
State member ••••••
Nonmember •••.•••••
Detroit
Total ••.••
National ••••••••••
State member •••..•
i Oillll8mber •••••••••
Etc.
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Federal Reserve Bank of St. Louis
•
:
branches
: :Maximum
Class~fied b~ numb~r of br~ches o:e9rated:
1
; 2 ; 3-5 ;s-10 • 11-00 ;21-30 ;31+
: syatem
:Banks operating
•!;•
l
••
12.
-·
Parent banks and branches in and outside the
branch banking area:
Area
December, 1929.
:~Banlal=:=...:iOc.1:P~•~r=a.:ati:.:ng~.;!.b~r.::an:::.xch~u~1•=----1f~-----·-~J3=r-=an=c-:.:he=•..___ _ _ _ _ _ _ ___.
:
:Of non-~1
~1Na- : State :Non- ·
:
1;ot N.,_ : Of
Ou.t: Total •tional.: member :mem- :T tal ttional. :state :member lHome : aide
1;banka : mber :banka 1!ci ty
:ber
•
i:
:ba~~- :
I
•
•
.
Total ••••
.
.
IJ
States hich permit
State-wide branch
bank:1.ng. • •.•• • •••• •
States which restrict
branch banking••.••
State• which prohibit
establishment of
branches •••••••••••
Other States •....•.••
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Federal Reserve Bank of St. Louis
Data available in Federal reserve
files with recompilation
....
.•
.13.
Banks and branches in States which permit, restrict
and prohibit branch banking: 1924-1929.
(Classification of States with reference to State laws in 1929)
Year and
area
___:sa_~n_ks
________B~r_an=c_h_e~•---=Banking:tncrta11 o~ decrease
:
:Operat:
:offices:
::
: ing
:
:Home : Out- : (banks : Banks :Branches ::Banking
: Total=branches=TotaJ.:city =side : plus :
:
·offices
:
:
:
:
:
=branches)
:
Total:
1924, June
1927, Feb.
1929, Dec.
States which permit
State-wide branch
banking
1924, June
1927, Feb.
1929, Dec.
States which restrict
branch banking
1924, June
1927, Feb.
1929, Dec.
States which prohibit
establishment of
branches
1924, June
1927, Feb.
1929, Dec.
Other States
1924, June
1927, Feb.
1929, Dec.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Data available in Federal reserve files.
The branch banking area has not changed
materially during this period, so that
the classification of States on 1929
basis would be sufficiently accurate
for earlier years. It would seem better
to compare data for identical areas.
.
14.
jggregate capitalAof banka operating branches in
and outside the branch banking area: December, 1929.
~---~~·)
:
.
Ar a
.••
.
.•
Total
all
bank:a
Banke operating ran
• Total : Na,:
=. State
.:
.
Total ••••••
States which permit State-ride
branch banking••••••••••••••••••
California•.............•
which restrict branch banking ••
Uew Tork Cit7•••••••••••••••
States which prohibit establishment
of branch.ea • .•.•.•••••.•..........•
Other Sta.tea •.. ......•.•...•••......•
Loans and inv atmenta
(Bepeat
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Federal Reserve Bank of St. Louis
■ tub)
Non-
tion&l • member : member
Capital
State ■
ee
15.
Sum:nary of chain or group banking developments:
June to December, 1929 •
Item
.
:
Number of b ~ , 1929:
December •• .•••••••••••••
June ••••• ••••••••••.•.••
Number of banks operating in chain or <
group systems, 1929:
Total
December ••••••••.••••••
Jllne • .•.••••••••..•.. •.
Operating branches
December •••••••••••••••
Jlllle. • . • • •. • • • •. • .. • .. •
Not operating branches
December •••.••.•......•
June ••..•. ...........•.
Number of banking offices in chain or
group systems, 1929:
Total
December • •••••••••••••••
J1llle • •••.••••.••••.•••. •
:Banks
December •••••••••••• .•••
June •••••• •. •. • • ••••••• •
Branches
Dec mber ••••• .••••••.•••
JllDe. • • .....•.....•.... •
Capital of banks operating in chain or
group systems. 1929:
December ••••• •••••••••••
Jllllee • . •. • • • • • • • • • • • • • • •
Loans and investments of banks operating
in chain or group syatems, 1929:
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Federal Reserve Bank of St. Louis
December ••••••••••.••.••
JUlle • .••.••.••••••••••.•
...
:Total:
Member banks
Total
.:• tional:=state
N►
Nonmember
banks
16.
e ,ocation and
class of bank
ize of chair. or group systems and location and class of banks
orera.ted: December, 1929.
Chain or group systems
: 'lassified by nUIJber of banks in system: Classified by number of banking offices(banks
:._..__..:-___________________,;._·...p_l'""us------b-r_an=-c;;;..f.;;;1e_s;;..):.....;;i;.;n;;;.....;s""ys
__t_e_m;;;.,__ _-____• _ _ __
4
5
20-29
zo+= 5 or :6-9 =10-19=20-49 =so-99=100-249
less
Total •••••••••••
ocation of banks
ystems o:r,e rating bmiks-ln one tate only •••••••••
In two or more tat
In tate of controlling
agency only ••••••••••••••
In other tates •••••••••• / .
In one ~ederal reserve
~ strict only •••••••••••
•
v;o or more districts ••
1.,;lass
J
of bank
uysterns operating-ifati onal banks only •••••••
tate banks only ••••••••••
ational and tate •••••••
ember banks only ••••••••
nonmember banks only ••••
ember and nonmember •••••
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•
250+
p~
~ and banking off ices (b.
~ranches) of chain or group systems classified
by size of system: December, 1929.
•
Size of system
••
.•:Total
..•
•
:
.•
Member banka
Na,State
Total
: tional
:
..• Non-
• member
•• State
•
.
Banka
Total • ........
In 1ystems operating:
3 banlta ••••••••• ••
4 banlc1 ••..•.•.• · •
5 banlcs •••••••••••
6-7 banks •••••••••
10-19 banka ••••••••
20-29 banks ••••••••
30 banks and over ••
Banking office■ (banks plus branches)
Total ••••••••
operating:
In systems
5 offices or leas ••
6-9 office••········•
10-19 offices •••••••••
a:>-49 offices •••••••••
S0-79 offices •••••••••
100-249.offices ••••••••
250 offices and over •••
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
18.
Banka and baoking office• (ba.nke plue branches)
of chain or group syst m cla•aifie d by popul tion of city in which located: December, 1929 •
.•
opulation of city
in which ·oawc or
b&nld.
office ii
locat d
.
:Total •
:
:
:
.•
..
:
Banks
mber banka
:state:
Total :ua•
:t1oual
:
••
•
:
Non--
me ihe-r
State
..
.
banka
..
. -------
in chain or group azstema
Total •••••
Under 25.000 ••••••••• ••
Under 2,500•••••••••
2,500-5,0 00•••••••••
5,000-.25, 000•.••••••
25,000-50 ,000 ••••••••• •
50, 000-100, 000 •.•••••••
100,000-1 ,000,000 •••••••
1,000,000 and over ••••••••
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Banking offices (banks plua branch
(R peat stub)
a)
19.
Capitalizat ion of banks in chain or group systems:
December, 1929.
: _ _ _ _ _...Num;:;.::;;:;..:h~e;::.r...o::.:f::....=b.:::a;:::;nk:;•;..__ _ _ _ _ _ _ __
Capitalizat ion of
bank
Total •••.•.•
Under $25,000 •••••••
$25,000 to under $50,000
$50,000 to under $100,000
100,000 to under $5001 000
500,000 to under $1,000,000
1,000,000 to under $10,000,000
$10,000,000 and over
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
In chain or group •z•tema
.;Total ---==~.;
banks
Member
-----: Non,.
.::::=~::.
.•
.•
: N.,.
: Total :
tional : State
:member
=banks
·a:>.
Financial items for banks in chain or group systems:
December, 1929.
(In thousands of dollars)
Total
Financial item
.
r.
Capital ••••••••••••..•
Depoaita:
Total. • ••.•.••.....
Dema.nd. ••• •••••••
TilD8 •• •••••••.••
Loana and 1nveatmenta ••
Total resources ••.•••••
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
:Sta e member
:Nonmember banks
•
banks
: In
: In
Total:chaina
Total achains
:or groups
: z or
:or groups
•~oups
banks
.
.:National
•
.!..•• .ill • :Banb in:
In
f banks : chaina or Total :chaina
: group•
:
••
.
21.
Chain or group banking in and outside the branch
banking area: December, 1929.
.
.
.... Total
•
..•
Area
.
:
.•
••
: Total:.
. ..
.
:
I
: ot
.
.
·Non• in
Member banka
.
:State:mem- .•=chains
Total: Na.
:ber • or
.:tional
.
. ..•banks .·groups
.•
In chains or gtou;ea
Number of bann
Total ••.•. ...•
State• which permit State-wide branch
ban.ki.ng ••••••••••••••• ••••••••••••••• •••
State• ffhich reatrict branch banking••••..•
State• which prohibit establishment of
branch••• ............... ............... •
Other Sta tea . ............... ..............•
Capital of banlal
(Repeat atub)
Loan• and investment•
~;,,;;..;;.------~------
(Repeat atub)
'
Deposits
(
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
..
)
22.
Summary of merger
procedure ■:
1914-29.
:
lllumber
of merger■
19141919
'!J •...•..••...•.••.•...•.......
Banlca diecontiuued by merger:
National. banD ••••.••.•.•.••••.•••••.•••..•.•
Stat member banks •••.•.••..•.••..•••.•.•••••
Nonm.ember ban.D ••••••••.•••••••••••••••••••••
et capital gains and losses (-) by merger:
Total ••••••••••••••••••••••••••••.•••••••••••
Of National banka •.••••.•••••••.••..•..•••
of State member banka •••••••••••••••••.•••
Of nonmember banks •••••••••••.••••• . . . .
. ..
.
Capitalization of banks discontinued b7 merger:
Under $25,000•••••••••••••••••••••••••••••.••••••
$25,000 •.•••.•••.•••••.•••••••.••••.••.••••••••••
$26, 000.-$49, ooo•....•.•.....••.....•••..•.•.•.•.•
50, 0()()-$99, 000 ••••••••••••••••••••••••••••••••••
$100, 000-$249, ooo•..•..•.••.••••..•.........•..•
200, ()()()e. 99 , 000. • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
5()0, 00<:)i..$999,000 •••••••• • • ••• •• • ••• • • ••• •. •. • • • •
1,000,000 and over •...•••••••.••••••••.••.• • •.••
Population of place in which bank diecontiuued by merger
ii located:
Under 25,000 •••••.•••••••••••..••• • •• • • • • • • • • • • • •
Under 2, 500. • • • • • • • . • .• • • • • • • • • • • • • • • • • • • • • • • •
2. 5()0-5, 000 ••••••••••• • • • •••• • • • • • · • • • • • • • • • •
5, 000-10. ooo •.•..........• •... · · · · · · •· •· · · •· ••
10, 00()..25, 000 ••••••.•••••.••••••• •• • • • • • • • · • • •
25, 000--5() , 000 • • • • . . • • • . • • • . • • • • • • • • • • • • • • • • • • • · • •
5(), 000-100. ooo •....•.•....•...•.•.•..... • · · · · · · · •
100 • 000-,5()(), 0OQ ••••••••••• • • •••• • • • • • • • • • • • • • • • • •
500, 000-1, 000, 000 •••••••••••.••• · • • • • • • • • • • • • · • • •
1,000, 000 and over ••••.••.•.••• • ....• • • • • • • • • • • • •
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
!J
Merger• of three or more banks resolved
into equivalent m rger• of two bankJI: e.g.,
a merger of a State member and a nonmember
bank with a ational, counted as two merger•
one of a State member with a National, and
one of a nonmember with a National.
193)..
1924
19251929
23.
Number of !IJ9rgers of banks ll
:
Year
.
.
..:Total
.:
.
.
.
.
: ' Of National v;i th
:Of State nEmber with =or nonmeni>er with
: Of N'a=or State Of Na:---N-a..:.;-.;;;.,;..;;...:.,_=s;.::;t...a..;.;t.,;;;e"T·.;.;;.._N_o_n___,.:..;;..;;r...a..;;;--=,:~s.;;.;;t;;.a.;;.;;t;;.;;;e..;:.,;;:;.._,;:..:rr;;.:o;.;;n:;..-__,...=.-:N--a.;;-=;;,:;.~;;:S:...:t:.:a=-t..:e::.::.;·;::.=..N-o-n----= ti onal and: rre mb er
: tional
: and non: tional=member: member:tional:cember: :roomber=tional: rr.ember :rr.er.iber :State mem-: and
:ber as non• nonrr.em- : rrember as
=menber
: ber as : State
:
rrember
:
1929 ••••
1928 ••••
1927 ••••
and for
earlier
ye&rs
to 1914
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Number of mergers by class of bank, by years:---- -1929.
To be run back by ;years as far as data are available
1/
ergers of three or more banks are resolved into equivalent rre rgers of two banks.
merger of two tate banks, one a member and one a nonmember, with a ?'ati onal, for
example, would be counted as two mergers one of a ment>er state bank with a a.tio11al,
and one of a nonmember ba.nK Yi th a ational.
24.
-
..:
eriod and class
of bank
:
:
.
..
Total:
1915-19 ••••••
1920-24 ••••••
1925-29 ••••••
Na.ti onal banks:
1915-19 ••••••
1920-24 ••••••
1925-29 ••••••
-
.:>tate r;ember ban.,{s:
1915-19 ••••••
1 20-24 ••••••
1925-29 ••••••
lfonmember b .... nks:
1915-19 ••••••
1920-24 ••••••
1925-29 ••••••
,
.
..
.
-.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Capitalization of National, tat e merr,ber, and nonl'i:lanber banks
discontinued b;;r rr.e rge r: by reriods, 1915-1929.
;
.
Under
Total :-,i>25, 000
:
..
.
.
.
Bnn!-cs discontinued by roorrter
[umber having specified capital
~;26, 000 : $ 50,000 :• , ~< 100 ' 000
·l25o,ooo
to
·25, ooo:
to
to
to
:
:
.,;49,
000
'it 99,000
•,1249,
000
'!1499,000
:
:
:
:
.
.
.
.
.
•.
: -~500, 000; ~-1, 000, 000
to
and
'1(999, ooo:
over
.
..
.
..
Merger• distrib uted by class of bank
merged (discon tinued) and popula tion of place
in which located : 1914-2 9.
25.
Popula tion of place
which
gu,1-4u~.• c.&i:.
bank 1a locat d
me_r..ge~r :----- : _ _ _,:!:!::S.=an~ks=-.:::d~i:.•Cz.:O~n=-=t~i=n:.::u.;::;ed::.. .;:b;.iy___
Non:
Member
member
:
: State
Total :Na,.
r Total
=tional
••
••
Number of banka
Total:
1914-19 •.••••• •.•
19ro-24•.... ...•.
1925-39 ••••••• •••
Under 25.000 :
1914-19 ••••••• •••
19a>-2 4••••••• •••
1925-29 ••••••• •••
Under 2.500:
1914-19 •.•.••• .••
1920-.:34••••••• •.•
1925-29 ••••••. •• •
2,500-5 ,000:
1914-19 ••.• , •• •. •.
1920-2 4•...... ...•
1925-3 9 ••••••• , •••
5,000-1 0,000:
1914-19 ••••••• •••.•
1900-2 4•.. ....... .•
19 25-29 ••••••• •••••
10, 000- 25 • 000 :
1914-19 •..• ......• .
19ro-24-• ...•... ....
1925-29 ••••••• •••• •
25,000 -50,000 :
1914-19 ••••••• •••.•
1920-2 4••••.•• ••.•.
192,5,-29 •• .••...• •. •
50,000 -100.00 0:
1914-19 •••.••• •••••
1920-24••••••• •••••
1925-29 •••••.• •••••
100,00 0 and over:
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1914-19 ••••.•• •.• ,.
1920-2 4•..... ......
1925"29 •...... ......
let capita l gains or losses (-) (In thousan d,
of dollars )
(Repeat stub)
.•
--
.•
26.
Mergers in individual cities of 100.000 aDd over:
..••
.
City and
period
New York:
1914-19 ••••••
1920-24•..•••
1925-29 ••••••
Chicago:
1914-19 ••••••
1920-24••.•••
1925-29 •..•.•
Etc.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
--
Banks discontinued
by merger
.
1914-1929.
:
capital gains or losses
.• Netmerger.
(-) by
:
(In thousands of dollars}
••
:
:
:
Of member bank&
Member bank&
• Non: Non- :
:
I•
:state ·member
Total:Total : Na,:State:member: Total:. Total : Na:tional
:ban.u .
•
· :tional
:banks
•
.•
.
..
.
.
.
.
.
..
..
.
.
•
:n.
Summary of bank failures:
••
1863--1929.
•• Na-
State bana
:Total: tional •
• Non:
:banks
Total=Member=member:
:
:
Total
member
banks
Number of suapenaio na: !/
1863--1899 ••••••••• ••••••••• ••••..•••
190Q.-.-1913••••••••• ••••••••• •••••••••
1914'--1919 •••.••••• .•••••••• •••••••••
193)-1924-••••••••• ••••••••• •••.•••••
1925-1929 ••••••••. ••••.•••• •••••••••
Liabiliti es to public of banka suspende d,!/
in thousands of dollars:
186~1899 ••••••••• •.••••.•• •••••••••
l 9C)()e.l 913 ••••••••• ••••••••. •••••••• •
-----..
Etc.
Capitaliz ation ot banka 9Uapel:lded; 1900-1929 !/_
number having capital of
Under 25,000 •.••••••• .•••••••. ...••.•
$25,000 •.••••••• ••••••••• ••.•.•••• ••••
$26, 000-$49, 000 ••••••••• •••.••••• •••••
oo. 00
oo.o
200,0
500, 0
, 000 ••••••.•• ••••••••• •••••
9,000••••••••• ••••••••• .••
99,000••••••••• ••••••••• •••
$999,000 ••••••••• .••.••••• •••
1,000, 000 and over ••••••••• ••••..••• •
Populatio n of r~acea in which banks euepended;
1900-192 9,!/ were located - number located in
places of
The column for State banks
Und.er 25,000 ••••••••• ••••••••• ..••••••
Under 2, 5()() ••••••••• ••••••••• ••••••
2. 5()0...5, coo ••••••••• ••••••••• ...•.•
5, 000.-10, 000 ••••••••• ••••••••• •••••
10, 000-25, 000 •..••••.• ••.•••••• ...•
25, 000- E<> • 000. • • • • • • • • • • • • • • • • • . • • • • • •
5(), 000-100 , 000 • • • • • • • • • . . • • . • • • • • • • • ••
100 • 000-5()0, 000. • • • • • • • • • • • • • • • . • • • •••
000, 00()..1, 000, 000. • • • • • • • • • • • • • •••••••
1,000,000 and over ••••.•.•• .•••.•••• ••
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
/JI.
ia to provide for the period
before establishm ent of the
Federal reserve.
!J
lxclua1ve of banks
reopened.
.
..
28.
Number of banks suspended, reopened and not reopened,
by class of bank, by years •
••
Year
Number of bank
suspension■
:Banks not
•• reo ened
ened
reo
Banks
•
State____..._____...;;;.;=~..;;..;:;.:;.i;;==-----~-i..=;;=..---•
·----=~:;.:.::
:
State
•
•·
•
•
: ' Na,- :
Non- ;
Total
· ;tiona1;Total :Member :member: Totai;tional
:N~ .
1925-29
19ro-24
1929
1928
1927
and earlier
years so
far as available.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
:
:
:
:Non-
:
Total:Member:member:
(Same
l
•
.•
.
--
~
29.
:
..
Year
--
Liabilities to public of ban.kB suspend d,
reopened, and not reopened by class of bank,
by years.
.
..
.
'
'
Liabilities to uubl ic of banka susnended '
: Of banka
:
banks
Of
•not reonened
reo1>ened
State
.
•
.
:
State
Na•
:
•
:
: NonNa:
Total : tional
• Non•
Total: ember:member =Total: tional:
(Same)
:member:
:Member
Total
•
•
!
!
!
:
•
•
.
.
.
..
.
1925-29
19a).24
1929
1928
and earlier
years so
far as available.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
...
..
.
.
..
.
t
.
.
.
.
30.
Deposit and other liabilities to public of
banks suspended and not reopened, by year•: 1920-1929.
(In thousands of dollars)
:
.
Total: Total
:
.:
:
:
:
.
:
••
Period or
year, and cla••
of bank
..
.--------- .
.
:
:l
42
1925-29
.1:
Liabilities at date of suspension
Other
pepoait
:
:
: Due: Public:
Individual
: Tot a1: Demand : Time : to : and :Demand :Time
:
:
:
:banks: secured :
43
48
44
46
Total •• . .••.•••
47
ational •.............
49
State member ••••••••••
Nonmember ••••• ••••••••
193}-24
Total ••.. ......
National .. ........... .
State member •••••••.••
Non.Dlemb er • ...•••.....•
1929
Total .. ........ .
at ional .... .•.........
1
State member •..•••.•.••
Nonmember • •••••••••••••
1928
•••••••••
Total •. .....•.•.
ational •.•••..••...••••
State member ..••••••••••
Non.IDlmber • ••••••••.•••••
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Data for this table and for tables immediately
following are av Hable for National banka in
the reports of receiver• to the Comptroller,
for the past 8 or 10 years. and possibly earlier,
and compilation in this detail might be given
for Tational banks only, if data are not found
available for State banks.
Numbers entered in the columns indicate items on
the Receiver'• Report form.
45
51
(1)
.
'
.•
..
t
"
31. l
.
.••
.
.
.
I
-
Liabilities to Pllblic at date of suspension
:
:
:
.
Proved claims
:
:
Other
: Tot 1
Offset,:
Secured
•
.Paid
:
• Not
,Total. and pre-: dollar :
:
:
:paid
_
.t'er
for
ferred,
:
:
:. Total; .Amount: ce!lt •
..
· dollar
: ·paid in
.
:
•
•
• full
:
.
•
Period or year,
aild class of
bank
suspended
ban'
laims paid and not paid,
and not reopened, by years: 1920-1929.
(In thou.sands of dollars)
ove~
..
I
.
I
..
...
.
..
.
.
..
.
.
..
.
..
.
.
.:
.
:
Not
proved
claims
•!
:
:
1925,,.29:
Total. ••.•
National •••••••••
State member •••••
Nonmember ••••••••
Total •••••
National •••••••••
State member ••••••
Nonmember •••••••• ;
1929:
Total ••••.•
National ••••••••••
State member ••.•••
Nonmember •••••••••
l<f 2
•••••••••••
193:>:
Total ••••••.
National ••••••••••••
State member ••••••••
Nonmember •••••••••••
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Proved claims are largely deposit liabilitiea,
but are not, I believe, classified as deposit
and other sorta of liabilities, in the receivers summarized reports. Probably data are
available in statements rendered by examiner&
and receivers during the progress of liquidation in any detail required. "Proved claims 11
may be sufficient for this table running back
over a period of years, and more detail (demand and time deposits), may be ehown for
later years.
'
.
t
....
32.
Collections and disbursements for banks suspended and
not reopened, by years: 19~1929.
(In thousands of dollars)
Period or year
and class of
bank
.
1925,.29:
Total, •••
National •••••.••
State member ••••
Nonmember •..••••
1924-24:
Total. •••
National. ....•••
State member ••.•
Nonmember ••.••••
1929:
Total ••••
National •••••.••
State member ••..•
Nonmember ••••••••
'Etc •
••••••••••
19Z:>:
Total ••.•
National •••••••••
State member •••••
onmember •••.•.••
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
.
•
'
Collections
,
: Convert ion • Ass asment:
:
:
of
of assets.
•
: Other : Total :
Total: including •• share•
offsets
• holders
•
•
:
:collected
••
•• allowed
•
pledged:
and
•
:
•
•
t
•
:.
: collateral •
•• ••
.
.
..
.
.
.
..
.
.
.
.
.
..
.
.
Disbursements
As Off• ': To preseta, : ferred
dollar : and se-for
: cured
creditors,
dollar
: payment
•• in full
JI
.
• To
.:general
:creditors
:
:
:
:
·-
..
33. Shareholders I losses in liquidation of
banks sus~ended, by class of bank, by period.
(In thousands of dollars)
Class of
:Bank and
period
:
....
Total:
1925-29 •.••••
1920-24••••••
1915-19 ••••••
1910-14••••.•
1914•••••
1905-09 ••••••
1900--04••••••
1863-99 ••••••
National:
1925-29 ••••••
Etc.
Stat , total:
1925-29 ••••••
Etc.
Member State:
1925-29 ••••••
•••
1915-19 •••••.
1914•••••••••
Nonmember:
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1925-29 ••••••
•••
1915-19 ••••••
1914•. •......
:Banks SUSRended and not reopened
Shareholders' equity
:Dividend : Share-: holders t
-: Capital. ·: Assess-': paid
Total: surplus, : ments : shareloss
and
paid
: holders
: profU,s
:
:
34.
--
--
Capitalizat ion of banks suspended and not
reopened, by class of bank, by period
of banks suspended and not reopened
------- -=---- ----.:=---------:------ -------Number
Capi. talization
$
___ $
Clase of bank :Total :_ _ _ _ _ _ _ _$
•Under "$-,i::: 000 :· 26,000: 50,000 : 100,(X)(): 250,000 : 500,000: 1,000,• ~.
·
•
and period
: 000
to
:
to
:
to
:
: to
: to
:$25,000:
:
$9_9-',_o_oo : $249, ooo :$499, ooo :$999. 000 :and over
$~4_9-=-•o_oo_.:.,:__
_____ __,..___:.,:----==;.._--~=
Total:
1925-29 ••••.•
193:>-24••••••
1915-19 ••••••
1910-14 ••••••
1905-09 ••••••
1900-04••••••
1863-99 ••••••
National:
192>29 ••••••
Etc. same aa
for total
State, total:
1925-29 ••••••
Etc. same as
for total
State member:
1925-29 •••••••
Etc. to
1914
lJonmember :
1925-29 •••••••
Etc. to
1914
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
35.
Individual deposit liabilities of banks suspended
aDd not reopened, by class of bank:, bT periods.
.
Number of banks susnended and not reoDened
.
Classified by amount of denosit liabilitiea
·:
: Under :, $50,000 :$100,000 ,:$250,000 : $500,000 :$1,000,000 : Over
Class of bank :Total :$50,000:
to
:
to
:
to
:
to
:
to
: $5,000,00)
and period :
:
:$100,000 :$250,000 :$500,000 :$1,000,000 :$5,000,000:
:
..
-------~·---=-·------------------------------Same as for
capitalization
(Table 34)
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
36.
Location of banks suspended and not reopened,
by class of bank, by period.
Number of banks suspended and not reopened
Class of
bank and
period
.:Total :Less
.
..·than
:
·2 500
•
:
Same as
for
Capitalization
(Table 34)
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
t
---------------
Number located in places having a population of-
. 10,000 :25,000 .. 50,000 : 100,000
:
. to .• to
to
to
to
: 10,000: 25,000 !50,000 100,000 1,000,000
.•
:
:2~500 ; 5,000
to
:s,ooo
: 1,000.000
:
and
over
•
!
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
·STATE TABLES
I.
Banks operatin br
by
t te and
year
: .&.:OtaJ.:
tates: for
ches, o.
lillr.lber of
ars specified.
r· c es, by class of bank,
Branches
t
-
:
:Tot
er.iber:
:
otal: ati onal
--~:---=-~~----.;o:nmerr.ber:
.......
..............
tat es which wrmi t
tate-wide
rizona:
1929, Deo ••••••••
1927, 'eb. •••••••
1
, une •••••••
and for earlier
dates so far as
av ilable for tate
banKs.
e
-
aliforni :
1929, Dec.
l 27, .h'eb.
1924, J'Wle
tc.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
.......
...... ..
.........
ata to be given or each tate coveri
in eve. case thre oft
dates ( une 1924, •'ebr
y 1927,. and Deoer.ber 1929) for
ich
ccropila ti ons have been roo.de by the Board,
d such ot
r dntes and
yeers as n:ay b'efound vailable for tate barucs.
ata for ational banks will prob· bly b avt.11 ble for lo er periods
-- possibly bac to date of origin of s.
m, but branch banldng
in the ·au onal s tern duling this earlier
riod can be de-1 t wt th
separately.
.:>tates to be
ouped with reference to brw ch bankin · provisions in
tate laws.
:
:
01
e
Cut-
city : Side
I.
:r•~-ys
..,ize o
t ems, na: number operaticity nnd outside branches, by yeurs, by tates: 192, l:127, l 24
Banks ·o
branches
istributed by number of brancnes 01)8rated
:
ta.te and
ar
.
..
.
:
:Total:
l
.
:
otal:
1929,
1927,
1924,
2
:
.
:3-5
: 6-10 : 11-20 : 21-30
:
.
..
.
,.umber· OJ.Xl ratii
:mum
branches
: size
OutIn
: home
of
side
system
city
. .
.
..: 31+
.
..
onl
......
......
......
btates which permit
.rot 1:
.
.
tate-wide brancl:l banking
......
......
1929, ec.
1927, ~eb.
1924, c}une
rizona:
1~ 9, ec.
1 27, .ll'eb.
1924, June ••••••
liL.li ornia:
1929, ec • ••••••
1 27, .i!'eb •
l 2 , .Jun ••••••
......
......
......
......
tc.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
lJ
ta available in .l!'ederal reserve files
· th coznpilat ion
andeim •
••
f e ional, State member,
III. Sibranch systems, and number operating home city and outside
branchea, by States: December 31, 1929.
..••.
:
State and class
of bank
:
..•
:
. •
.:Total:.:.
!
.
I
.
.
.
..
.
.
.
..
.
..
.
.
.
. 3, .
.
.
.
.
Total •••...•.•
National •..•....•
State member •...•
Nonmember •......•
States which permit State-wide branch banking
Total •......••
N tional •...••••.•
State member •.•...
Non~ember •....••.•
Arizona:
Total •.•.•••.•
National. ••....•
State member •...•
Nonmember •...•••
California:
Total •••••.•••
Etc.
Continuing same
for each other
State in which
branches were
in operation in
December 1929.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
'
l3enka operating branchea
Ma.xi-:Number operating
Distributed by number of branches operated
branches
mum
.
:
:
•
•
• size : In
: Out:OPe!-·
:
:
•
•
• of
home : aide
: 3-5 • 6-10 =11-20 =21-30
l : 2
:system: city : home
:
:
.
: only : city
:
:
:
:
.
Deta available in Federal reserve files
with compilation .
•
'
I
·-
.•
IV. Branche• in large and amall ayatem■ , and located in
and out ■ ide home citi••• by class of bank, by atatea:
December 1929.
:
State and clan
ot parent bank
:
:
=Total
:
.•
Branche■
I
2
•
:,
In ayetem• operating-,
1
2
. 3-5 .• 6-10 .• 11-20 .• 21-30
branches
:3f+
Home
: city
..'•
Total •.........
at ional •.••.....•
State member •....•
Nonmember •.......•
States which permit State-wide branch banking
Total •.•••.•..•
National. •......••
State member •.•••.
Nonmember ••.•...••
Arizona:
Total ••..••.••
JJational •••.•..•
State member •...
l!Jonmember •..•..•
California:
Total ••.••...•
~tc.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Data available in 7ederal reaerYe
tile• with compilation.
. Outaide
:
•
Ba.
operating branches, and their br nc.hes, cl s ified
class of b k, by ta
: D ce ber, 1929.
by c~pi tal of p rent b nk, b
-----===--=~~;.:.:,.....:;;.::;.;::~=-----------·=·~---------=~~c~h::::e,2s_ _ _ _ _ _ _ _ _,
utate and
class of
bank
s
or
less
100,000
50,000
to
.
:i: ot l ••••
tional ••••••••••
te me :her ••••••
ber ....••..•
hich permit
tot
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
tate-wide br
l1 banking
....
mb r •....•
r •.... • .. •
rizon
T
ot 1 ••• •
ti onal •••••••••
tate member •••••
onmember ••••••••
' liforni
..
Tot 1 ••.•
tc.
having cani ta.
: .th-eT--
Data
va.ilr.ble in
deral rese
e fil s.
100,000
\
..
·-
·-
VI • .Aggregate capital ot banks operating branches.
by States: December, 1929 •
State
.Aggregate capital
•
:Sanke
• National banks
: State member banks:
Nonmember banks
:Total: operating:
:Operating:
: Operating ____:___Op
__e-ra_t_i_ng=---•
branches : Total :branchea :Total: branches
Total: branches
•
:
Total ••.••
States which permit State-wide branch banking
Total •...•
A.ri1ona •.......•
California •.•..•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
••
VI.
greJ t 10 .
• inve trnents of b
oper tin branches. by tate ·: Decemb r, 1929.
St te
ot
Op
Tot l
Tot l
br
Total:
otal •••••
ng
ot
.....
tizon ......... .
lifor i ......•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
VIII. Chain or group s;ys tems classified by character of controlling
agency, class of b·nk: controlled, and lr,cation of banks, by t tes: Deo
ber, 1929.
Chain or group syste~s
----------:----- ---------Operating
----------------.
:--------.
:
: -----·---_..-O::.:P1,;.;e::.:r:..:a::.;t::.;in~?j\..______ : Operating banks
.....g..,-...
O._p..;.e;;.ra~ti_ru
_ _C.;..:;;.on;;.;;.t;;.;r;.o;;.;l;;;.:l:;..e,;;.;d__,~.,.Y'-------·----..
-
State of
a ,ntrolli:ng
~ ncy
.
:Total
banks
•
:Holding:
: company:
:lationul: t te
Bank:Unincor-: banks : ban;m
only
only
: po rated
:agency
B. :
"'•
ati onal: ember :
and
t2te
: banks
:ban
: only
loaateQ--_____
: loc·ted-_ _ _ _ _ ~-=--:----=.:..;..:::..
xonmem-:~eniher and-~~~.;;....
In one· In two
In two
• In
:District: or
or
one
:nonmenber
ber
1
•
banks :banks
more
on Y
tate • more
only
: Districts
States
only
'otal •••
tates which i:ermit Stc-.te-wide branch banking
:1: otal •••
rizona •.••••••••
ali fornia. •••••••
to.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1 • .?umber of ati onal, ~tate manber , and noruren.ber banks in chain
or roup
s.rste.... s classif ied by type of contro lling age .cy, by tates: Dece iber,
1929.
tate
.
ptal :
:
;
I
;
.
I
•
;
.:
a
.
I
a
.
•
;
fate rreipber
: Type :Type
:mype : otal
;
I
•
s
. B• .
e
~otal •••••
States which i:ennit
tate--w ide branch bankin g
otal •••••
rizona ...•.•. •...••
ali:fb rnia ••••••• •••
c.
•
ype
by banks;
.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
include s groups contro lled by holding comran ies; ype B groups contro
lled
chains contro lled by an individ ual or a g
p of individ uals •
•
;
;
...
X.
vu
i tic
tem ,by
of holdin
-CO'llp
D cemb
..
I
ot 1:
ncy
more
t te
:on
:di tr
:only
.. ot 1 ....
king
ot 1. ..•
ot 1. •••
b
b
C
ot 1 •.....
tc
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
. ..
: :In
: i : tri.ct
XI. 3an
and branches i. chain or grou sy terrc:i,
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _b_y _cl s _of ban, , by tates: December. 1929.
.
'In chai
-,-..,....,,......,
and cla s
of bank
~t!l."'.; ~
t~:
ing
To a_ br c e
oper
ing
br che
in chains or group
Op ·t= Not-ing
oper t...
otal b anche i g
To
br nches
--
.
l chaina
or
grou s
Total •.••.
·ational ••.....•
tate membi=>r •.••
Nonmember ••.••.•
States
ot 1 •..•
National •.•.....•
St te member ••••.
.ro ember • . .....•
Arizona:
Total. •..
•Tational •...... • •
State e~ber ••...
Nonme~ber ....... .
..,aliforn·a:
Total •...
Etc.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ch banking
Of
banks
not in
ch ins
or
groups
.'
XII.
Size of cha.in or group system~, by
December, 1929.
tates:
'
:,_.._ _.,;.__ _ _ _ _ _C_ha_i_n---:-o_r_[!I'~ou_E_-:-_sys tems
1
1 Di tributed by number of J Di tributed by number of bankbanks in sy tem
I ing offices (bank plus
State in which Total
branches)in system
aee cy of con- .
._3--c-5
6-lQ
I Over 1 5 or 6-25 126-50 j 51- 101- JOver
trol i locat1 es
I100 250 250
1 20
1
111-20
j
-----.;---1
-~--,--,I - ,
ed
•
I
I
number in
one
evstem
I
f 1· Of banko ba.nkin~
office1
I
I
I'
otal ••. •
Maximum
-'-----------.i.----L..-----1---...li..-----·-'---~--......
~:-:-.;..,_
' ----------St tes which permit State-wide branch baning
Ariio a ......•
Califo nia •..•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
I
I
I
'
-1.----
-----., - - ,---+-j
of banks inc ain or group systems by class of bank, by
XIII •
.
.
Banks operatin~
.
:
-
tate am
class of bank
t
..
:
:
.
1
otal
. ,r25,000:
:
or
. less
.
:
in
chains
or
tates: December, 1929.
,roups
c
of -r
...,50,000
to
=~
r
'l'
'lrl, 000, 000
-.,5,000,000
to
'5-,0 0, 000 :
.
iotal ••••••
"ati onal ••. ••••••.••••
mber ••••••••••
tate
onm ber •••••••••••••
States which P3 nnit State-wide branch banking
Total ••••• •
• ti onal ••••••••••••••
tate member ••••••••••
ronm ber •••••••••••••
otal ••••••
,_ .~anal ••••••••••••••
nerr.ber ••••• • • •• •
e •••••••••••••
ronmanber
alifornia.:
otal ••••••
tc.
,_
Digitized.,for FRASER
https://fraser.stlouisfed.org
•
Federal Reserve Bank of St. Louis
C
Banks not
11
banks
in
chains:
or
in
chains
or
s
x:v.
e" rers .
cla
of b
th-tate ad
available .
Of
atio al
and
Of
with--
otal
onmember
ear
Of
T
tiona
St e me::nbe
ru d
member as State nona non- mPrnber
"'Ile berrember
ota.l:
1929 •••
1928 •..
•9
1926 •.•
1925 •..
1920-24
191
Etc
19
.Alaba'Ila:
1929 •.•
1928 •••
and
earlier
0
avai
Arizona:
. ergere involvin 3 r more bank
into equiv lent me~ o
oft
P ger of, for eY.ample,
and
1929 ••.
19 13 •••
.c.,tC.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
r
on-
to be counted a
t te with_
member
ith a N io
Period
11
to be re olved
•
io al b
member
totalt1, all ... t
e:u- for hi
Of
State
'Ilember
t t ,
d fo.,.
.11 cover only
i
compl
•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
••
efhlt~~
~
a.nks discontinued by merger, c-tmrn-~ct:-i~-m!le"lm-4~~ ~(Pj...ta;L..
1.
,._
by
tates: for ~-ears available.
Banks discontinued by
.
.
.
otal
.
lota1:
..
Less
than
v25,000
Y
rger
....
w250,000
to
: ~G~,000
""25,000
vl,000,000
:
1929:-•••
1928 ••••
1927 ••••
1 26 •••
1925 ••••
'1 <...
I
I "1
•
7r
I
t ;,
1920-24 ••
>/ivt;. "
1915-19 ••
£-
/~)
l
/
.·
19
/~.J..
.:1labar£.a:
1 29 •••••
1 a•••••
and earlier
years so far
a~ available
a••• •••
eriods as in preceding table.
!(
I
1/
ntinued after er r as in cases ,; re
tee nically
Includes some ba
the stock of one bun i valved is 1,ut into a trust to be held fur the
ere t o br ks erg
nother bank.
benefit of t'l1e s.narenol ers o
under a ne charter, t 1ey are both counted us diso)ntined, but •, er
on contin ·es under its old charter, \i th or without change of n e,
scontinued.
it is not counted
•
••
.. VII.
a .a .ts cont in ed o. d capital
...•e er l reserve, and tt.te banKing s
by tates: for ye s availab le.
r~
.
tate and
ear
.
:
~otal;
.
: utate
al ;~ember
ns and los sea of the
tional,
terns, through rrerger procedu re,
T
"""
.
: ion~emberf
ain
Loss
gain
t
or
: loss(-lt
:
onme1:ber banks
: Gain
Loss
Tet
: gain
in
or
or
loss ( - l t
loss (-)
.
r otal ••••
1 29 ••••
•
1 28 ••••
1927 ••••
1 26 ••••
l 25 ••••
1920-24 ••
1915-19 ••
Etc.
labo.ma.:
1929 •••••
1 28 •••••
19 7 •••••
and earlier
years so far
as availc.b le
rizona:
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1929 •••••
l 28
tc.
eriods covered will vary from tate to tate.
Years covered under 11• otal" in '"tub will include only
years for m ich data by States are cornple te •
.
1/
Includes some anks technic ally continue d after merger as in
cases where th stock of one bank i • olved is put into a
trust to be held
r the benefit of the sha: eholders of
another bank.
/here
o ban s rrf:'!rge under a
w
,.
they are both counted a discont:- nued, but wmr. charter
ne co~1-1i:iues
under its old charter t f..i t or w1 thout change oi n
, it 1s
not counted as discon inued.
•
.•
State and
year
--
·-
XVIII.
I
Number of Natio:cal and State banks suspended
by States. by yea.rs.
Number of banks
Numb r of banks sus ended
State
State
:Total:
Na•
•
:
•
•
• Total .Member.Non- • Total: Na- :Total :Member : Non·:
•. t ional :
•
~ember :
: tional :
:
:member
.
.
.
.
.
.
.
.
.ilabama:
1929 •••.•. ..••••
1928•. ....•....•
192'7 ••••••••••• •
Etc.
earlier years
so far as sva.il•
able
Arizona:
1929 ••.••.•.• .••
1928 •••••••.••••
19.27 • .•.•.....••
Etc.
J
S,,t,v.;.,.
lu
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
~
) T,1;;/V"
)k;,
~ zyJ<;i., 0-
·-
·-
✓
.Aggregate deposits of National and State baulm
suspended by States, by years.
XIX. (a)
In thousands of d lla.rs
Aggregate dep sits
State and
year
.--------~~~--=
. . . .-:--~:;,.;;;,..------------------.
,
Of all
Of banks suspended
:
bapk1
State
:NaState
; Na-.;
Total •tional . , Total"Member: Non- Tota1:tional :Total :Member: Non-
..
.
:
..:member
:member:
Alabama:
1929 •••.••....
1928••••••••••
Etc •
.Arizona:
1929 •••• .••...
1928••••••••••
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
XIX (b)
Same for aggregate capital
C.
0:7'7
I 13c~
t✓tJ
l'-1,...,
).t+ I)
i cJ
sA. I
~
J1c,.__,.-c;
y1 :J
µ
1.
lo ltd
1IS
/l,zr,.,
¼ ... .,)~
I
, ...
•
...,-
•
XL Banks suspended cla■ sified as operating specified
number of branches, by Stetee, by years.
••
:
State and
year
:
..
.Alabam:s.:
1929 ••••.•
1928••••••
Etc •
.Arizona:
1929 ••••.••
1928, ••••••
tc.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Number of banks au■ pended
• Operating specified number of b~anchea
Not
11-a:,: ; 21-30
S-10
3-5
2
1
operat- :
:
Total•• ing
:
: branches:
:
31
+
, XXI.
:,;,____________--=Num=;;.::b;.:e::.r_o:.:f___b~an=ka=-.:.su=s::;.,pc:.::e:::.:nd.=e~d~--- -------------=state bank:a,
National banks
: . :' In chains or groups : Not
--=In----"c__ba..._in_1--'o-r_.._gr-'-ou:-=p_s.._.._: Not
Unit : Branch : in
.Total.
: in
:unit : Branch
: Total : banks : sya tems : chain• : Total :
•
(Same)
Total:banks :aystema :chains
:
or
:
;
:
:groups :
:
or
:
•
State and
year
.Alabama:
1929 ••••••• •
1928••••••• •
1927 • ••• , •••
Etc •
.Arizona:
1929 .•....•..•
Etc.
•
J
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Banks suspended classified as operating in chain or group
systems by States, by year•
•
mI.
Capitalization of NatioDB.1 and State
banks suspended in the period. 193)-1929. by States.
.•_________________________________
,.
Number having a capital ofBanks suspended: 19.ro-29
: ---.➔.---------------------------------
State and
class of
bank
=$26,000 :$50,oOO: $100,000: $250,000 :$500,000: $1,000,000
to
:
to :
to
: to
to
and
=$2s,000=$49,000 =$99,ooo: $249,ooo: $499,000 =$999,ooo:
over
:
:
:
:
:
:
:
: Total : Leas
:number : than
Alabama:
Total •••
National •..•..•
State member ••.
Nonmember •.••••
.Arizona:
Total ••••
National ••••••••
State member •.••
Nonmember •••.•••
Etc.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
·-
XXIII.
Individual deposits of National and State banks
SU11pended in the period, 1920-29, b~ States.
Banks suspended: 1920-29
State and
class of
bank
~---- -----.a
Total : ______ ___Num_b_e_r_ha_v_i_n,._,d_e~p_o_s_i_t_s_o_f_-_-_ _
!number : Lees
•
.llabama:
Total •••
National ••.•.•
State member •••
Nonmember ••....
Ari!ODA:
Total •..•
Etc.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
than
:
•
50,000 •• $100,000 !$250,000 :$500,000
to
...
=.$so,ooo: $100,000:
to
:$1,000,000 :$5,000,000
·
to
· to
• to
•
250 ooo : 500 ooo =$1 ooo ooo=$s ooo ooo=
,
:
':'. :•.:
and
over
mv.
••
••
Location of National and State banks suspended
in the period, 1920-29, by States.
_______________
__________________
__
. .__________ ____ ________________
::
_.,;;;.._
:Banbs 8U8pended:
19ID-29
:;_
_;;;_
Number in places
having
a population ofState and
:Total :
Less than 25,000
:25,000 : 50,000 • 100,000 :500,000
class of bank:number:
••
:
to
to
and
Total !Less :2, 500: 5,000 no,ooo: to
:than : to ••
to : to :50,000 :100,000 • 500,000 over
:
:2, 500 :s,000:10,000 :2s, ooo:
•
••
.
.
.
.
.
Alabama:
Total ••..
NatioDal ••••
State member ••
Nonmember •••••
Arizona:
Etc.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
.
.
.
.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
(C OP Y)
•ay 2, 1930
Dear .Jr. Blount:
In acco ra.ance i th a rran ement s previousl y roade
by r. H lin, m ber of t
Federal eserve Board,
it ~ill be anpreciat ed if you will kindly deliver to
the bearer the report prepared a few year aeo by Dr.
H. arker · illis on banking vhich as filed with the
enate Banking and urrency Committee . The. aterial
.1i ll be returned as soon as a study of the contents
has been made by the committee rec ntly a pointed by
the Feaornl Reserve Board to study the subject of
branch, chain snd group bankingo
Very truly yours,
• L • .., ead, Chief,
Division of Bank Operation s.
Ir.~ • • Blount, Clerk,
Banking and Currency Committee ,
United tates ~ene.te,
, shington, D. C.
}TOTE: Appendix 'A'' was not received
nd I advised r.
Blount to this effect this morning. He said that h
had sent to us all of the aterial that he had. He
confinnea this ith another search. If he finds apniix
in the future, he rill let us know.
J.
• H. 5/3/30
PHOTOSTATIC COPIES OF STATISTIC.AL MA.TERUL RECEIVED FROM SEN.ATE :BANKING
J.ND CURRENCY COMMITTEE MA.Y 1, 1930, SUPPLEMENT.A.RY TO THE BOUND VOLUMES
GIVING '!HF .BESULTS OF THE "B.ANKING INQ,UIRY" MADE IN 1925 UNDER THE
DIRECTION OF DR. H. PJ.RKER WILLIS
National Bank Failures
.A.
Resources of failed national banke compared with total resources of
active National banks, United States, by yeare from 1900 to Jul7
1925, 1 aheet on form .1
B.
Size and liat of National bank, that have failed during the period,
January- l, 1 ~ to July l, 1925, by etatea; grouping based on
amount of total reaourcea; 23 sheets on form B:
Sheet No. 1. .llabana, .Arkansas, .Arizona
2. California, Colorado
3. Connecticut, Delaware, Jlorida, Georgia
4. Idaho, Illinois
5. Indiana, Iowa
6. Kansas, Kentucky, Louisiana, Maryland
7. Maine, Maaeachuaetta, Michigan
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
s.
9.
Minnesota, Mississippi, Missouri
-10. Montana
11. Nebraaka, Nevada, New Hampshire, New Jersey
12. New Mexico
13. New York, North Carolina
14. North Dakota
15. Ohio, Oklahoma (begun)
16. Oklahoma (concluded)
17. Oregon, Pennsylvania (begun)
18. Pennsylvania (concluded), Bhode Ialend
South Carolina
19. South Iakota
20. Tennessee, Texas (begun)
21. Texas (concluded), Utah, Vermont, Virginia
22. Washington, West Virginia, Wisconsin
23. l'yoming
/
)
•
C•
.tnalysis and list of National banks that have failed and have been
completely liquidated during the period from January 1, 1900 to
Jtll.y 1, 1925, by statea, on form D:
Sheet No. 1. ~laba.ma, Arkansas, Arizona, California, Colorado
2. Connecticut, Florida, Georgia, Idaho
3. Illinois, Indiana, Iowa, Kansas
4. Kentucq, Louisiana, V.aine, Maryllllld, Massachusetts,
Michigan
5. Minnesota, Mississippi, Missouri, Montana, Nebraska,
Nevada., New Jersey, New Hampshire
6. New Mexico, New York, North Carolina, North Dakota.,
Ohio (begin)
7. Ohio (concluded), Oklahoim, Oregon
8. Pennsylvania, Rhode Island, South Carolina,
South Dakota, Tennessee
9. Texas, Utah, Vermont, Virginia, Washington
10. Weat Virginia, Wiaconain, Wyomin&
1 -2. Summary anal:,aia of National banks that have failed
and have been completely liquidated, January 1,
1900 to 1925, by tates.
State ~ank Failures
D.
Number and resources of active and failed banks, savings banks and
trust companies by states and by yea.re from 1900 to 1925, - showing
alao number and resources of failed banks restored to solvency, fully
liquidated and remaining in active receivership; 45 sheets on form A
(arranged in alphabetical order by states); complete except Delaware
- no failures, Connecticut -- data arrived too late to be tabulated,
Nevada -- imperfect data.
E.
List of state banks, savings banks and trust companies that have failed
from January 1, 1900 to July 1, 1925 in the several states, tabulated
according to magnitude of total reeources; 109 sheet on form :a in
alphabetical order by states; complete except Del~ware -- no failures,
Connecticut - data arrived too late to be tabulated .
•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
-
1.
3 -
Deposit experienc e of a number of individua l failed banka for a period
covering three call dates prior to failure; 32 sheets on form C, including the following states:
.Alabama
Californi a
Colorado (2 sheets)
J'lorida ·
Georgia (2 sheets)
Idaho
Ill inoia
Iowa ( 2 ahee ts)
Matsachu aetts
Michigan
Minnesota (2 sheets)
W.asouri (2 sheets)
ontana (4 sheeta)
Nebraska (4 sheets)
Ohio
Pennsylva nia
South Carolina
Texas ( 2 ahee ts)
Wisconsin
Wyoming
G. .lnalyaia and list of failed state banks that have been liquidate d; 22
aheets on form D for the following states:
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Alabama
Arkansas
Illinoh
Indiana
Louisiana (2 aheeta)
Maine
Mar7land
IUchigan
Minneaota (2 sheet,)
Mi Houri
Nebraska
Bew Hampshire and New Jeraey
Ohio
Oklahoma (2 aheeta)
Penn17lTa nia
South Dakota (2 aheeta)
Virginia
West Virginia
•
4
H.
State banks, trust comp ie1 and savings bsnk1 that have failed since
J uacy 1, 1900, grou ed ccording to capital ,tock; 106 aheeta on
form E:
ilabama ( 2 sheets)
Arizona
•rk.anaa (2 aheets)
California
Colorado (2 aheets)
Florida
Georgia (5 1heets)
Idaho (2 aheeta)
Illinois (2 aheets)
Indiana
Iowa (4 sheets)
Kansas (4 aheeta)
Xentucq (2 aheets)
Louisiana (2 aheeta)
Maine
Maryland
Maasachuset ta
ichigan
inneaota (6 aheeta)
Mississippi
Miaiouri (4 aheets)
Montana (4 sheets)
ebraaka (4 eheets)
Bew Hampahi re
llew Jersey
Bew exico (2 sheets)
New Jersey
North Carolina (3 sheets)
North Dakota (8 sheets)
Ohio
Oklahoma (6 sheets)
Oregon
Pennsylvania (2 sheets)
Rhode Island
South Carolina (3 sheets)
South Dakota (6 aheeta)
Tennessee
Texas (5 ilhe ts
Utah
Virgini&
Vermont
Washington (2 aheeta)
'feat Virginia
Wisconain (2 sheets)
Wyoming ( 2aheeta)
Statiatical Development of llanks
atateuent of atatiatical development of ational ~anka,
189() to 1925; one sheet on form C-1
years,
97
I.
Con ■olidated
J.
Consolidated statement of Statistical Develo nt of incorporated state
banks, trust companies, and atock aaTinga banks, by years and states;
52 sheet ■ on form C-1; 2 sheets for New Jeraey, New York and Pennaylvania,
and l ■beet for each other state and Diatrict of Col bia.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
X.
-
5
Statistical Development of Mutual Savings l3ank■, by year ■, 189() to
1925; 17 eheeta on form C-1, tor the following etatea:
California
Connecticut
Delaware
Indiall&
Maine
Maryland
Mauachuaet ta
Minne ■ot&
ew Hampshire (2 sheeta)
Bew Jersey
?Jew Tork
Bhode Ieland
Vermont
aahington
l'eat Virginia
l'ieconein
Reviaiona of Material apPearing in the :Bolllld Volumes
L.
Letter dated April 9, 1926 from A■ sietant Professor of :Banking,
Mr. John • Chapman, Columbia University, addressed to Hon. Carter
Glaas, United States Senate, tran itting 112 pages, •The Rise of
the Time Depoeit Probl m," containing minor change,, corrections
and extra data and 1houl.d be uaed in connection with Chapter XII
of Volme 5.
M.
Letter dated April 3, 1926, from Mr. John M. Chapman, .l11iatant
Professor of ~anking, Col-mnbia University, transmitting the
following sheets of atatietical information to be incorporated
or eub ■ tituted in Volume VI - Banking Inquiry 1925:
Table 1 -
of all State Banke and Tru t Companie• Operating
Bra~hes in the United States,• by years, 1919 to 1924;
l aheet; aubatitute table.
Statistic ■
Table 2 - Stathtics of All State Banks and Trust Companie ■ in the
United States Operating State-wide :Branches,• by years
1919-1924; 1 sheet; substitute table
Table 3 - Statiatice of all State &nks and trust companiea oper&t1n
branchee, by 1tate1 and years, 1919 to 1924:• 2 pages;
new table
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
•Not including Mutual savings banks.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
-
6
-
Table 4 - Statistics of s.11 State :Banks, Trust Companies, an4
National 13&nks Operating Branches in the United
States, by years, 1919 to 1924•, with introductor y
note; (Swmiary table showing the development of
branch banking, including both state and national banks);
aubstitute table.
Table 5 - Stati1tic1 of all State :Banks, Trust Compmiiea and
National Banks Operating Branches in the United States,
b7 atates and years, 1919 to 1924•; 2 pages; new table.
"'Not including Mutual saving1 banks.
••
fEDER AL RESE RVE BANK OF SAN FRANC ISCO
April 50, 1930
r . J • • Riddle,
'"'ecretu ry, Co;nmi tt e on Branch, Group ana Cha·
c/o F Jere.l Re rve Boar,
..... · r:ton, • C.
ear
Banldn ,
• Ri dle:
letter of
pre ~ring
cut~
ering it
I have iven conslde rabl thou•ht to tht subject of your
t1e 17th of Anril, n.nu p rt·clll ly to the a vi~ b lity of
a question naire to be used
the b s·s of interro atin bank
reg ring the u ity of ban.kin
rvice a ivon bank· r ncommunity.
The doubt you ap ~r to have as t the
v ta e of cuch
roce ure T fin -ilsc i
tron in my om mind .
s you may
~u pect , ther ha b en a change in bankin oroce uro , f ctions h ve
sprun 7 u in many in tances .
Thi h not b en brought bout by bank
cuC'tome s but by ban.I man in, of icers zealou ly ett.;.n
orth t 1c
vant ~cs o th ir om orm of in'"'titu tlon an t
disadva nt ~e of their
t·tor ' s
Unle'"'.., stirreu. , bank cu"t ere• ive very littl t ou ht
e res active merits of Branch, Grouo, Chain or Unit banl.in . The
itor seek, the safest pl ce to lodg h" funds , 411 t e borro er
the lace here h can borrm7 the ost and easiest . If 1e e"'ir to
kno th C rrcter of ~ervice a
C 'GOU> , Ch··.n or u it b~ pr~or s , :in u·ry
t be de into th fnci ities it o fers to the depo itine public , ivin~ t ought, in connecti on t er rith, tot
rt~ cf
.t ,id, ervice ch r s imryooe , tc . Inve t· ton 1 o houl
bank ' s loan policies , :inclu in the rat,.. of ·nt ~est charr,ed •
.ith the kno 1 de gained of a community ' r economic affairs , it should
not b
"fficult to determ in, by revie ·n~
b nk ' "' curr nt portfoli o
and its "'C ~on·1.l trend of louns cru a.eposit. , , hether or not it i
roperly
servin it co :-runlty .
n I sr..y ronerl , I r fe not only to the uan15 ty of loans , hi ch in vie of t bank ' s • ize is ap ropri te to fin co
local indu"try , but also to h ther th ualitr of local loan made affo is
ro er orot ction to eposito rs .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
O
It i~ my belief th t ther
only on m..t
ory y
o the Committee to
an Cf"urat '::no
o
c t c iff r nt kin
·
·
funct · on
r ctr oft ir
rv·c, n
n of in~t·outst
in rt cc . By
irin , t
ut ct ith
...
'
. .
Mr. J. H. Ri dle - - 2
ead Office, a gener 1 idea. of bank's policies, it ,mul · not b difficult (in the case of a Brunch organiz· 1 tior.) to test those policies by
vieitin rn' rtudyin t e oper~tior. of a fe Br'lllchc corv·n differntly ~itu te co :unities.
For our gtd.dance in rork of t}i. ch~r cter, ~ uestionnaire sucl n~ you suggest oula be eYtremely us ful.
I a-:r e ith you re arain~ the tudy of s eci~l ca~es.
Such a
oceaure is e~sent·ai, of co~rC'~, but it seem to me that before
cor= ncing that ork c should h ve c-tu ies of Stat "' sue as I sent our
Chairmen in
letter of arch 51st. , ith t ese . tudie , it vri 11. be
os ibl to ... lect trosc organ·z tions on ,hich it 1oul be mot -.:iro itable to cent ran investi ation . Un ecs wen ve a fairly god grasp of
the "itu tion as
hole, it wi1 L be diffi.cul t to know in a vnnce r,hr t
sC::.ient Points to develop in our first surveys .
In California, for instance, e have t1ree distinct featu n
of ranch banidn , namely, metrooolita n, contiguou" -territory and C't te-wicle .
In Group banking, we have ut 1 st tro rchools, one in nich ecch Gnit,
uhile actin
ore or lesr; independen tly, ties into E:. !!lctroPolita n bGllk.
(BeyonQ thi. cont-ct, th~ separ·te Jnits of the Group are stran~cr to one
anoth r) . The other "chcol i.. typified by a metro oli tan banl- dor1inating
an co coordinati.n tho ·ctiviti s of tll the Unit .. that t cy resemble a
ranch system .
The~e variou~ entities should be dev loped anu clasrl~ied .
Then, by visit tion or study of one or to organiz tions of eecr cl ss,
s U h v
icture of th out t 1 n fE:;· tur s of t· e c.lif-Leront
·in <' of b".ll.'"in in VOP'l.l.C •
In ue courr, it oul bony su-ge tion trat t e Committee
h ve ~ meetin in Ca ifornia ana devote its t·mc an attention to revi~ in the o or tions of some of the l ~e.t Brune
I am
certain th t t.e Bank of Italy National Trust an rving . . rrocl·tion
oul
elcome our rtudies of it~ organiz tion, en to that end ould 1 ce
every facility at our command . That bank haC' been the Pioneer in the
Lnited States in the development of a uide-s re~d Branch ystem; cons ou8ntly, it~ o~ aniz tion h ~ he< more t mu to become stable and, ther ~ore , more closely reflects at t 1~ time the goal to
"cb it ims
~ho
rune may b said of th CS.:if orniu Bnnl· of o" Ang les ,
c
r
pioneer
int
field of Brunch bruvi.n ithin a metro olitan ar •
For tho prencnt , I woul not re inclinca to
public body , such us th Chamber of Commerce , to interro, t~ bu<'·ne~~
re arding their rel tionships ith Branch banks . In those in<'tMce~
ver-f trong competjtion bet1een Brunch an locru. Unit barus exi,t , it
re son b:c to &ssumc that , ' f one oreaniz t~on f ils to .. ervo, the other
"'ll obtr-in t1 ,reater atronn.ge . ''ht devo::.op nt oft o loctl b
::i
th comp tin Br:nches 1oul~, by com~ i~on, soak or it elf as to public
ap robat:on or isa, roval.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
. . .....
r. J.
i cilE..: - - 5
In many o
nit
s
b comE..:
n n co
u to eco
·ti
o
r
obably both), fort c n
e
jurt
o. t
ustm nts hnv been p inful,
tot
• T
qu ti nn ir into
co
ty of this
f co
ve results . The f ct th
it
by· rMch oul h vc
y
ch ref.1£.ined & Unit bank oul not oc
· ea to uf er t
conse u nee" fo•
·sly contrac ted.
b
c
o
n
It i
un erstana. in
li u·u~tion of custom r~• loan ha b
tits in hie th local Unit bank has
conse u nt ....y, t e
elin so
-tend
tu cre·ting ili-vn. to rc.i. t e ne
th t
ount o. fo c d
cons . er bl
en maae noce'"' ry in many co uniroup
b com a I e ber of
m;
h
ve
b.:
borro r
b en dly
ed,
order of t~in s.
As I hav
e or, it shoul not b diff"cu lt for the
me ber
Corr.nittec, after a survey of the orese t t tu of a Branch
end t
of its predec sror, a un·t bank, to aetermin e, in th li ht
o. conomic con itions p st d pre ent, hcth r tho Branch no ic ervi.n
th0 co :un·ty ith an
ro riate volume of ere ·t.
s cc
s t
ing
for
fact; con"
I o no
sin
reign countri
it to me.
r
Coy to
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
'
e U
tly, ea.cl c
rlemin .
,
tin
V
ore.,
tlt-
••
It.. ·~· __,
•
FEDE RAL RESE RVE BOAR D
·tf kl
WASHIN GTON
April 30, 1930.
SUBJECT:
Co.
· ttee on Groun, Chain a...d Branch Bai.7king.
Dear Sir:
Refereu co is made to the Board' s telegra m of
April 24th, advisi:1 g that ecause 01 the close relatio nsl1ip of its co::uni ttee on group, chai:i.1, a.i1G. branch banki~g to tne banks' cor:nnit tce on nember ba:ik reserve s, the
Foo.ora l Reserv e Board had voted, subjec t to tho approv al
of ti o Federa l res rvo bffi'l}cs, to c.'1-iongc ti'lC former fro:.n '
a Boara. to a ba..--ik co,1mi ttce.
Replie s • ave ~10, teen rucoi vod fror:i all of the
r.3sorvo "'J . 1nks an1)rovi:i.1[; t. L: cl U:1b'-', and, accordi n[;;ly, tr.c
Board ~ms ao.-r voted to
o t:10 trans for offoct i vo May 1,
1980. It is m1dc1·s toed t.1a t t.1c status of t 1u corn.'1ti. t t~0
,ill b t. c sumo as tnat of th0 bank co,, m. ttee on member
bank reserve r;, a.id t. at its expense s ·-1.11 be 1 orne pro
ra ta o;:,r the Fecilera l reserve b,;mks ~10.er an an·aD.gement
simila r to tha•.; cletermL1ed. on for the co:unit tee on reserve s.
Very truly yours,
R. A. Young,
Govern or.
TO Govern ors of all F. R. Banks except Ho•"! York.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
_/
FEDERA L RESERV E BOARD
0
WASHINGT ON
ADD RES S O F F I CIAL. CORRESPONDEN CE TO
THE FEDERAL. RESERVE BOARD
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
pril 30, 1930
'UBJwCT:
Dear
Co
ittee on Group , Cho.in · Branch Bnn:ing .
ir :
Reference is
de to the Bord ' s telegr am of
April 24th , advising that because of the close relationship of its committee on group, chain, nd branch bunking to the bans ' co ittee on member bank reserves , the
Federal eserve Bo rd had voted , subject to the prov 1
of the Federal reserve banks , to change the for er from o.
Boo.rd to o. b nl' co ittee .
R plies have now been received from o.11 of the
reserve banks np roving the change , nd , accord'ng ly , the
Bo rd ha no,·; voted to make the tr nsfer effective ay 1 ,
1930. It is understoo d that the status of the co ittee
iill be the s me s that of the bank com,~ittee on member
n: reserves, nd tho.t its expenses will be borne pro r ta
by the Feder 1 reserve bunks under o.n o.rr n ement simil r to
that det
ined on for the committee on reserves .
ery truly yours ,
R.
To Govern rs of all
• B n s except
• Yo g ,
Governor
e v York
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1
•
•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
April 25, 1950.
Dr . E. A. Golden1e iser,
Chairman, Co ittee on Branch, Gr,up und Cha.in Bankin~,
c/o Federal Reserve Board,
ashin ton, D. C.
Der Dr . Golden
·ser:
You ill be int rested to Imo t t
• James A. B cigaluoi, ast Presi ent oft e Banko~
Italy Nation l :ru~t and Savin s Associat ion,\ 1 aup r before t e c adden Co ·ttee on ay 6th.
I .. sure, i you can r re t e ti.Ill ,
it will be v ry wells ent in listenin" ' to ·r . Bac.;galu i's tectimony .
Before goln; to lunche n vith him today, e sho ed me a numb r of exhibits to b ~ub tted
to the Con r ssional Co ·ttee, hich cov in th mo~t
complete manner the evelonment of the Bank of Italy
Natio1al Tru&t and S vings As oci tion from it incention ri nt t ro "h to the pr nt , inclu in all th
. thin thu Tr n bankin · and hol in co p
rica or,anizat ion .
0
t t r . Riddle t :c
tour
w
I
o this opportun ity of obtainin" ' ir t-hand
avant
develo m nt, ,hie will be of
in arm tion
great value
Yours very truly,
mead
Rounds
• Flemin
Ri dle
~~
De uty Gove no •
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Federal Reserve Bank of St. Louis
--
TELEGRAM
F.:'E0E RAL RESE RVE BOAR D
LEASED WIRE SERVICE
WASHIN GTON
l
•
I
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
FEDERAL RESERVE BANK OF SAN FRANCISCO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
SERVE BANK OF SAN
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Federal Reserve Bank of St. Louis
111,
19
r
•
r
r:
•
•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
1
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
- 3 r1
)
(
(
8
t
l
)
)
I.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
••
(
8
•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
i
)
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Federal Reserve Bank of St. Louis
-
:f EDEI \L RES EI VE BANK OF
S.\ . · t ~P .\ . · c1sco
April 12, l9DO •
• Golden ei er,
Ch,-1._,nmu,, Co ·tte on Branch, Group and Chain Banking,
c/o Federal Reserve Board,
a hington, D. C.
Deur
r . Golden eiser:
There i enclose the tudy of the St t of Ner ferred to in my letter of March 51st . Delay
v da hich
m fo arding the data has been occasione d by my in bil"ty to
secure some informati on d ired from the Chief of the evada
Banking Depart.an t .
the informati on has not yet come,
Ho ever,
moment sufficien t reason for
this
at
appear
there doe not
obtained, an amendment to thi"
be
it
Should
aiting longer .
ed to you if any ne mate ial of
ar
b promptzy fo
study ·
value i obtained from my inquiries .
I shall not prepare any data in rcgar to other
·thin the T elfth District until in~tructi ons re r state
ccived from you as to the form in hich such i.nformat n is to
be prep ed for the permanent use of the Committee .
After reading the fir.st four part of Volur.:ie I
of the Hearings in Congre s , I am impres ed by the fact that
• att already have prep red an abundance
• Smeau. and
you,
of valuable material on the subject of our tudy, all of hich
m.."'l.kes me fe 1 that the effort I h.:ivo contr"but ed have dwindled
to· significa nce .
a:y I suggest that the thr e Bank members of your
d exhib "ts
Co ·ttee be furnished ·th copies of the report
submitt d to the Committee of Congre s .
Yours very truly,
Copy to
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
e d
• Rounds
Fleming
• "ddle
~b~
Deputy Governor .
--,
FOR CONFIDElTTIAL USE OF THE COMMITTEE ON BRANCH, GROUP Alm CHAI?i :BANKING
.Appointed February 26. 1930,
STATE OF NEVADA
San Francisco District.
BRANCHES
Prohibited
11
(See X-652s)
* * * No bank in this State shall hereafter open
or maintain any branch bank or office•*••"
(Banking Laws, 1927, Sec. S, p. 6; Rev. Laws of
evada, 1912, Sec. 623.)
11 :Ba...i.k: 11
defined.
"The words 'corporation,' 'banking corporation,'
1bank, 1 1 trust company, 1 or 'banker,' as used in
this act, shall refer to and include banks, savings banks, and trust companies, individuals,
firms, associations, and corporations of any character conducting the business of receiving money
on deposit or otherwise carrying on a banking or
trust company business, except as herein specially
provided," (Banking Laws, 1927, Sec. 75, p. 23;
Rev. Laws of Nevada, 1912, Sec. 690.)
BRIEF HI STORY OF LEG! SLAT! ON, IF ANY, PERTAINI~rG TO BRANCH :BANKING:
In the banking law approved March 22, 1911, there appeared for
the first time express prohibition by law for State banks to establish
branches in the same city in which the head office was located, or in
other towns or cities throughout the State of Nevada.
is law did not interfere with existing Nevada branches of San
Francisco• California, banks. Those branches, however, were closed in
later years due to the dwindling awa:y of mining activities and business
generally in the cities in which such branches of California banks existed.
ere are no branches of
a:ny
kind now existing in the State of
Nevada.
BRIEF HISTORY OF LEGISLATION, IF .AlrY, PERT.A.INIUG TO OWNERSHIP OF BA?-11C
STOCK HOLDING COMPANIES:
There has been no legislation in Nevada affecting the ownership
of bank stock by holding companies, nor has there been any active discussion of the need for such legislation.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
- 2 -
GROUP BANKING:
There is an absence in Mevada of ownersr..ip of bank stocks by
corporati ons organized for that purpose, and, by reason of such ownership, exercisin g a doninant part in the management or policy of such bank.
CHAIN WncING:
T'.ne outstandi ng feature of banking in Nevada is that the majority
of the banking resources will be found in one chain having approxim ately
60% of the banking resources of the State.
This cha.in is under the influence of a man of wealth and leadershi p in business affairs of the State.
EXHIBITS MADE A P.ART OF THIS BEFORT:
:Banking Laws of Nevada pertainin g to Branches
Economic Chart of :Tevada I s dominant industrie s
Chart showing growth of banking resources
Cha.rt showing relative importanc e of
Branch Banks (or)
Group Banks (or)
Chain Banks (or)
Unit Banks.
Exhibit I
Exhibits II, III, IV
Exhibit V
lfone
CHARTS SliOWING LOCATION OF OFFICES OF OUTST.Al!DI:·G SYSTEi S IN FOREGOING CLASSES:
ingfield Chain
Ex.liibit VI
CHARTS OF ORGANIZATio:;s SHOWIUG O iraRSRIP OF OUTSTAlIDIHG GROUPS:
None
DATA CONCERNI..~G B~"X-STOCK HOLDING COMPAlUES:
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
None
Exhibit 1
Page
1
FOR CO rFIDEMTI.AL USE OF TEE OO1.ru!TTEE 01: BRANCH, GROUP .AND CHAIN 13.AltlCING
Appointed February
26, 1930.
S'I'ATE OF t"EV.ADA
Laws governing establis'hment of Branches.
Banking Laws of !Tevada, 1927:
Section S.
That hereafter no bank or
trust company shall be organized, and no bank or banker shall
be permitted to carry on business with a less capital than
twenty-five thousand dollars, and the full amount of the capital
stock of a.ny bank or trust company mu.st be paid in cash before
it shall be authorized to commence business, or axry individual
banker be permitted to be in or contiIIUe business.
No bank
in this state shall hereafter open or maintain any branch bank
or office.
All of the provisions of this act shall be applicable as far as may be to individuals, firms or associations, as
well as to corporations.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Section 75.
The words corporation," "banking corporation," "bank," "trust company," or "banker," ~s used in this
act, shall ref er to and include banks, savings banks, and
trust companies, individuals, firms, associations, and corporations of any character conducting the business of receiving money on deposit or otherwise carrying on a banking or
trust company business, except as herein apecially provided.
--
•
US[ LF
ING APPL INTEO F[CrtUARY 26, 1930)
N.
N BRA ICH, GRvUP, ANO ~
EXHIBIT
il
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ELKO AREA
2
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C
>
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eltiag l Rat1n1!1f: (on1e1ly ooppor)
Tiaer lo L":llllb~r Proauota, Blag. ;,: t rial•
Railroad llaintenance l :.~ipnent iltr1.
Butter, Other
Ii y,potatod, -.no1ot, b r,e;. e en ,1r.. 1t
ol
oa,
ep,
.JCt
,.;r, 11.c p
.. ;ittl , ealv 1,
~wine, ho~• 1, ~lea
2.
3
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3•
~
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lla.llroai 1:a1nt ,nance I. ~q·.1p:; t Ufr
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heep, ~01. ool
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ANNUAL VALUE □ F
IN □ LJSTRlAL
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
AND AGRl[LJL TUR AL
PR □□ LJ[Tl □ N
(FOR C , ID
A OI! TED
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
arr
BR,UCH. GROUP. A
(in• 1111Jns of Dollars)
-
r•
. ·Kr
G
Exhibit
ill
Exhibit
(in millions of dollars)
0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
5
10
15
ll
E O
DEVELOPMENT IN NEVADAa
1915 TO 19 7 0
TOTAL eAM< RESOURCES ...... .. t ,2,
78tSoo .... ·• sog,ooo
ASSESSED VALUE OF PROPERTY ..• 1425,~G,0G0
POPULATION
4'78,000,000
77,000
l
•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
..
.
l'OT==-=.=~· .
••
W/NGFI
ELIJ
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//V, _____
or_____
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xhibit
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Federal Reserve Bank of St. Louis
.
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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
l ,
9
7
-
J;'or.rn No. 181
Office Corres pon
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e
BOARD
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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Ille apprnal of
loato
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at tllat '11111 ov noon.a 414 • • la-
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,,
•
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
ob
i
.,o r
V
build.
t
l 01b
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T
s
e
s
1
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ri
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ro
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oard files for indiv i
erge d, file , oper ting br nch of ices ,
gro
syste ms,
of dat
ye rs.
e~be rs of
s full deta il
ent
ri
s
the
ny comp rehen sive com pilat ion
iles ,
sse blin
the d t
or ex
for cons olida ted b nks, and br nch
le, sho ld table s sho
"tot 1 reso res"
~s oper ting br nch offic es, or oper ting as
member
syst e
"
preli mina ry step in
ro p sys es.
of b
deve lo
s
l b nks,
in thes e reco r s, it woul d seem nece ssary , howe
ver, to build
spec ! 1
n
1d oper ting
o pil tion s c n be made prob bly in
ill be desi r d by the comm ittee, cove ri
st fe
·cH
, or shotl.ld "loa ns
pita l
o
d inve stme nts," "dep osit s,"''
roup
pita l,".
d a rplu s" comb ined, or tot l c pit 1 fund
s inclu di
prof its?
ch of thes e fi
purp oses it
a its spec ial sign ifica nce,
88
oes not much
atte r
hich o
but it is obvi ousl y impo ssibl e to
son, for
year
ith loan s
n
inve st ants , or
d inve st ants of
t l of bran ch syst e s.
to brin g
t
or
compar ble form .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
p
i
n
y bet
rom
en,
omp ri-
oup syste ms in one
apos its of sch b
a in anot her
roup syste s with depo sits o
capi -
Prob bly some recom pil tion s will be nece s
eren t ye rs, and diffe re t
he amount o
hich the co
to be cove red,
b ildi
eriv e any conc lusio ns
reso urce s of b nee in
ye r; or loan s
t ils
seve r 1 ite. s
nd for some
ittee
the ch r
d cont in ous
wor
y dete
roup s o
invo lved will depe nd
ine to be
ter of the
inten ance o
ilea
some
orth
etti
t pres ent
uc
files
b
ry
ks, into
pon the d , the perio d
de
p.
s are
e
p
-·
ugge ted
ould seem, ho ever, to be
-2-
dvisab le as a matter of routine
statio tical proced ura in the office, and indepen dently of the committee's require ments.
ndivid ual schedu les--Te nt tive forms for individ ual schedu les, such
as might be used in taking off d ta relatin g to merger s, branch systems, and group systems follow, design ted Schedu le
A, B, and C.
A
suffici ent supply of any such forms as may be approved mi~ht be print d
to provid e for require ment
over a period of years, and the
aintain ing the files curren tly up to date made
ork of
matter of routine of-
fice proced ure.
ith such a supply of schedu leo in hand, the filling out of the
schedu les might begin
ith 1929, and work b ck over a period of years- -
possib ly back to 1921, when the number of banks was
t
maximum.
The followi ng forms (A, B, C) are, of course, s'lll!gested merely
for consid eration and such modifi cation as may seem dvisab le.
ever the form fir.ally
dopted , a file of schedu le
ould be built up
in the office coverin g curren t develop ments, so that at
comple te record would be up to date.
Most of the d t
ny time the
called for on
these schedu les might be taken off the schedu l son which dat
ing curren t bank-s tatus change
What-
cover-
are now being reporte d to the office
from month to month and where these reports are incomp lete additio nal
data would be supplie d from other source s.
If thi
plan is followe d, the office
ill have three files, one
for consol id ted banks, one for branch system s, and one for group
ystems .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
The buildin g up of such files would seem to me to be the
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
-3fir t st p to b
taken .
under taken in such det il
B
sed upon them, comp ilatio ns could be
s may be determ ined upon, but even the
imple et comp ilatio ns cover ing any perio d of y ars, or even
the
prese nt ituati on only, will be diffi cult to make up unles
s the
data are first ssemb led on suffi cient ly detai led indiv idual
sched ules.
A.
(Face)
Con olidated bank:
Clas _____ ___District _____ _Stat _____ __City_ __
Name.____ ____ ____ ___
Group ey tem affili tion No. ____ ____
••-
Capit 1
t
Thousands of dollar:;
Loans
Profit
D posits
and investments
Surplu
esources
rumb r
of
branch
~1 cellaneou s memoranda
Note:
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
The column for "Numb r of brenche "would indicate hether thi
be found also in the file for 11:Branch
bank ould
y tern , 11 ,here det il for branch
would be given.
"Group
yst
]anks m rged
affili tion"
1 o is indicated by number.
ould be 11 ted on the reverse of this
Thee schedul s
ould b
filed by ~1
nonm ber) by district,
t te, city,
Monthly reports of consolid tion
prob bly ch onologica lly
chedule.
of b nk (National , state member,
d n
e of bank.
would be filed sep r tely as
ter d ta had been entered on these
t pr s nt,
chedules.
(R ver e)
Banks consolida ted--inclu ding continuin g bank.
D t
•-
Date
of
tlerg r
rame and location
of b
k
for latest date before consummation of merger
Number
Group
Thousands of dollar
Class -----.-- ---r---- -.~L~o -an---, -----.... ,...-~R -e---e.ffiliaof
of
ources branches tion numDepo its
and inProfits
Surplus
bank Capital
vestments
=""-" '--'r-- --;---- --;---, ---r-....___
--~--- ------+ ---t--- --t---- -;----- ;--'--=
From thi
•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
record compil tions could be made cl
s
ifying merged banks by size
(as measured by capital, c pital funds, loans and lnv stments or tot 1 re ources),
by ye rs, by popul tion of colll!IIWlity, for each cla
operating branche , and group affiliatio n
of bank,
nd for bank
.B.
( ace)
St t
Distr ict
·--- --City--- ----------rame._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___
Ola
:Branch sy tem:
roup
ystem ffilia tion No. ___ ___ ___ ___
Number of branch es
Number establ ished
By
Tn con- In non
By
De
mer
concontig
r
tiguou
[Home
Loan
ion
ver
novo
city
uou
of
rrirces
Total
t
Resou
pit 1 Surplu s Profi ts and in- Depo its
of
tory
branch
terrivest:n nts
banks
tory
system_!
Thou_t1ands of doll: rs
•-
Date
Ch
t
•-
Dat
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
es record ed on the revers e of this sch dul
uch int rv ls or for such d
Total
Les than
00
50
2
00
ould be ummarize
hould bed termin ed upon .
In
2,50010 000
10,000 2
25,000 -
and
nter d her
B.
(Reverse)
Banks merged
Date
Name and location
Thousands
Class
Capital Surplus Profits
of
bank
of dollars
Number of
Loans
and in- Deposits ReTotal Home
vestmenm
city
sources
Branches
Contig Nonuous contigterri- uous
torv
TO show size of banks, etc., absorbed into branch systems •
•
-------------------------------,r------------ --------------Branches established de novo
Branches discontinued
Date
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Location
Date
Location
c.
(Face)
Group system, No.
----------District----------State-------City-----
Controlling agency______________________
••-
Date
Combined figures for banks in group
Number of banks
Number of branches
Thousands of dollars
In nlaces of
Capital Surplus Profits Loans
Total
Less
State
NonNaTotal
2500and in- Deposits Rethan 500tional member member
sources
ever
vestments
5000 2500 25000 25000
Banks and Branches distributed by designated states
Date
Total
Banks
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Branches
(State)
Banks
Branches
(State)
Banks
Branches
C.
(Reverse)
Controlle d bank
Date
Name of bank
-
•
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Date
Thousands of dollars
Location
Number of
Class
ReLoans
of
of
withDistrict State City Capital Surplus Profits and in- Deposits sources
branches
bank
d.rawal
vestments
•'onn No. 131
'
Office Corresponde
To
.wh-. Golden eiser
From
,h-.
Rida.le
e
FEDERAL RF.SERVE
BOARD
- 'ril
Date
Subject:
8
1930
...
2-MQ6
I should like to have h'. Blattner ork with me in the prepar tion
of a general program of tudy for chain, roup, and branch an.king if :its time
is available. I should also like to have .r. Cummings prepare a chapter on
the economic and social bac';ground for the present tendencies in bankin~.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
WALTER LICHTENS TEIN
EXECUTIVE SECRETARY
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
THE
F'IRST NATIONA L BANK
OF CHICAG O
I
April 5, 1950.
I
I
Dear Mr. Noell:
In Mr. Lichten stein's absence from the
city, I beg to acknowledge receipt of your letter
of April 2 enclosin g a copy of Part 1 of the Hearings
before the BanKing and Currency Committee, for which
I wish to thank you.
Very truly yours,
Secretar y to Mr. Lichten stein
Mr. J. c. Noell, Assista nt Secretar y
Federal Reserve Board,
Washingto n, D. C.
A r l
r.
lin
r.
ad
4, 1930
Il
of
atr
co
th
banldn« no
d OD thi
t
tn>e
topic
tt
into la .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
c1
to
oldera the
• in thi co
ted
.,~....... •-
lk on thi
xteut to
t17, a1
rch lS,
at uited to this
tion of
ro l• b
to
rant
cted
l •onn No. UH
FEDERAL RESERVE
BOARD
fice Corres
r.
~
Dear
r.
To
Subject:
I
From
I shall
the
s
ederal
e&d:
robably h~ve to attend the Stockhold rs 1 meetin of
Friday
es rve :Bank of Ric
ond. next
eekJ Could you give me any
estions for a short ten- i ute address?
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
inc
rely yo r •
~
JJ
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
l
'
t
'
•
•
..
f E D E RAL R E SERVE BANK OF SANfRANCISCO
arch 51. 1950.
:r. L. A. Goldon.eiser,
Ch irmnn, Committee on Br.'lllch, Group and Chain Banking.
c/o Federal Re"'erve Board,
ashineton . D. C.
Dear
• Golden eiser:
I run enclosin to vou . an forwardin to each member
of yo
Committee . a rampl study of Branch d ~rouD bankin in
California '1.!l of Chain b ·inu in Nevada.
Ith~ been mv t~ought that the best a~ ro ch to this
subject ould be from the an·le of havin re red by Federal Reverve Agents a r vie of b in develo ments 1ithin c ch of the
~t ts s A.rately . In tie inter st of uniformity, it ould seem
to me that the Committee shot.l s~t forth in
s ci:'ied order
the v ious to ica hie shoul b covered by tie Agents . This
ill na le th~ Committee at any time to mak a comolete renort
covering any one hase of any articular develonment throughout
the Unit d states .
You i 1 notic thc.t the outline cont ins a brief
resume from r . yatt ' s -G528, r latin~ to the l s governing
Branch b".!Urin i thin the St_t , • Thi is su lemented by an exhibit cont inin an exact copy of each s ction of the St to Act
hich ha"' any reference to Branch bankin . I have thoueht that
thi e.Jiibit oulcl obviate th necessityi on the part of tho
ho
heve occ "'ion to . tudy t e bnn}·in la s . of having a 1 ' 1 ·br
at h :nd .
hl..l. th Cali...'ornia xh ·bit of la s is quit lenethy .
I ass e th t none oft e ot r ~t
,ill h ve so ~uch terial
on t
ubject , or t least I ho?e so .
The; study also contains a chart ho in th principal
indu~tri s of tho St te an t e loc tion thereof . By holdin the
economic chart in one hand E.Dd th chart of any Branch bank or
Group in the oth r , it ill b easy to obtain
icture of the
in u tri s Lrved . Thi '17ill illu.str te h0th r or not diver ity
in ban1i::in as ets is oos"'ible .
You till also otice th t t e charts , particularly th·t
of the Ban· of Italy National Tru~t and Savin ,s As~ociati n, h ve
been renared to sho t~ ch r cter of compet·tion to
·ch any
Group is subjected . In pr ctically all cs s yo
l find unit
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Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
-·
Uarch 31. 1950
.:r. E. A. Golden ciser - - 2
bank competition; in many cases there is Brnnch competition, and.
In the State of Nevada, it will be seen
in some instances. both.
that neither Branch nor Group bankir11 exists, but one Cham controls
more than half the bankin resources of the State; and in many instances the Chain has no competition.
I h ve not ventured into the field of discussin the
methods f ollov,ed in paying for stock of h· 1'lks ac uired for the purGroun system. As e
po~e of making them Branches or a Part o a
all know , each purchase is male to suit the ... ancy of the seller
and/or the buyer, and, theruforc, irlvolves a va ·ety of element
which cannot satisfactorily be covered. Ho1,ever. you mo.y desire
to develon some information along there :incs , and, for that
rtason. I mention it.
1
There h s b1,en omitted another important Point , one
which ultimately . 11 determine the success or failure of this develoomcnt: That is, the aucstion of profit. The outstanding
orgo.nizations, both Branch anct Group, have been develo1cd chiefly
Subon capital for vhich very laree nremiums have been pnid.
stantial proportiom of thes premiums have found their wa.-v it.to
affiliated com)anies .hich have boen used to rid the bank of undesir~ble asset. If the bank has b en suf.iciently rel'eved, it is
not difficult for it as a unit to sho ade uate ooer ting profits.
The in.vest ent of tho c:-tockholder, however, carries ulso any lack
of profits from that portion of the as ... ets which, because of th ir
inferiority, have been transferr8d to the affiliated non-bankirle
corporations. The stockholder of the bank and affiliate knows.
of course. what he has paid for hi~ stock (or stocks), TJ.<l lmo rn
what dividends ho receives through the combined oper tions of the
bank and the affiliated company. Thcr~fore, he can stat for
himself h tl1cr the operation is profit. ble.
It seems to me, however. thnt our concern rests ith
the banking phase of thu develooment. The ~uccess or permanency of
this move• ent cannot be deter;nined until those organiz~tions which
have b en rapidly constructed have enjoyed a deca e of ~ettled development.
hetr.er this outlirl~ I have preo ed ill bring out the
essential features can best be determined by the members of your
Committee askin, themoelves if the mat~rial submitted gives them a
I earnestly
graso of th situations in California o.nl Nevada.
hope you will ask each member of the Committee to revie these
reports critically and to make sugge tions for changes unsp ingly.
Yours very truly,
Co~ to Mr. Smead
Rounds
Fleming
Riddle
~4~
Deout:y Govvrnor.
FOR COWFIDE:iTI.AL USE OF TETI co::HITTEE 01-T J3R.ANCR, GROUP .AND CF.A.IN BANKING.
Appointed February 26, 1930.
STATE OF C.AiiIFORlTIA
San Francisco District.
::BRANCHES:
Permitted:
"No bank in this state, or any officer or director thereof,
shall hereafter open or keep an office other than its principal
place of business, without first having obtained the wri tten ap,proval of the Superintendent of Banks to the opening of such
branch office, which written approval may be given or wi thheld
in his discretion, and shall not be given by him until he has
ascertained to his satisfaction that the public convenience and
advantage will be promoted by the opening of such branch office;
* • * * " (Bank Act of California, 1929, Section 9).
Capital required:
For each branch office located in the place of business of
the parent bank, the paid-in capital, in cash, must exceed by
$50,000 the capital required for the transaction of business by
a bank in that place. (Dank Act of California, 1929, Section 9).
For each branch office of a bank, other than an exclusive
trust company, located in any place in the state other than the
place of the principal place of business of the parent bank, the
amount of paid-in capital, in cash, must exceed the amount required by law in the sum required for the organization of a bank
in that locality, exclusive of the capital required for a trust
department. (Bank Act of California, 1929, Section 9).
For each branch of an exclusive trust company opened or
maintained in any place in the State other than the place of the
principal business of the parent trust compa~,. the paid,..in capital,
in cash, must exceed by $50,000 the amount required by law for the
tron.-aaction of a trust company business. (Dank Act of California,
1929, Section 9).
There are also provisions concerning the discontinuance of a branch, increase of capital upon ncrease in deposits of branches, fee for the opening
of a brajch, penalty for violation of the law covering tho ostablishment of
branches, advertising by branch, and the establisbrJent of branches by banks
located in a city or territory which is annexed by or consolidated with a
city or territory of a class requiring a larger capitalization. (Bai.1.k Act
of California, 1929, Sections 9, 19, 23, 28, 60 and 82).
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Federal Reserve Bank of St. Louis
- 2-
BRIEF HISTORY OF LEGISLATION, IF ANY, PERTAINING TO :BRANCH BANKING:
In the Bank Act of 1909, there appeared for the first time express
authorization by law for State banks to establish branches either in the
same city in which the head office was located, or in other towns or
cities throughout the State of California.
In July, 1908, twenty-four banks with head offices in California had
twenty-eight branches within the State, and four outside the Sta e, which
Following 1909 the developwere established without legislative sanction.
there throughout the
and
Here
slow.
first
at
was
banking
branch
of
ment
out of the cities
and
in
both
branches
few
a
State, there were established
in which head offices were located, but there appeared to be no haste to
There was a marked increase in the number of
expand in this direction.
branches in the period from 1914 to 1918, but only one bank undertook to
establish anything approaching a state-wide branch banking system.
About 1922, several groups commenced a feverish movement to expand.
The major movement,which was carried on by a few large State banks members
of the Federal Reserve System, was temporarily brought to an end by Regula,..
This Regulation
tion of the Federal Reserve :Board issued in August, 1924.
provided that the Federal Reserve Board would, as a general principle, restrict the establisbment of branches beyond the city or location of the
parent bank, or beyond cities or towns the corporate limits of which at
some point coincided with the corporate limits of the city or town in
The Federal Reserve Board also rewhich the parent bank was located.
to establish additional offices,
permits
any
granting
before
quired that
the superintendent of banks
limitations,
within the foregoing prescribed
must first authorize the establisbment of such additional offices a.~d cerThe latter
tify that the public convenience and advantage required it.
provision was in harmony with the State law which provided tbat the superintendent of banks should not give permission to the establisbment of branch
offices until he bad ascertained to his satisfaction that the public convenience and advantage would be promoted by the opening of such branch office"
In 1927 the McFadden Bill was enacted, r~stricting the establishment of
branches by National banks and State bank~ meubers of the Federal Reserve
cities of over 25,000 populatiotl in uhich the head office was
System~o· itua~ed, provided, however, that the local laws authorized state banks to
establish such branches.
Following February, 1927, mnnerous out-of-town branches have been established by a non-member State bank which is affiliated by stock ownership wit:.
That
a National bank having the largest :rru.mber of branches in California
non-member State bank has 160 branches in 101 town~and $373,000,000 in resources.
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Federal Reserve Bank of St. Louis
- 3-
There are now in the State of Ca.lifor!:1.ia:
National
Unit banks (includ,..
ing one Group
with
State
Resources
Total
Resources
655,774,000 190
329,297,000
985,071,000
206,751,000
15
633,792,000
s40,543,ooo
4 1,794,824,000
27
754,529,000 2,549,353,000
No,
193
Resources
~
$196,536,000
resources)
3anks having practically all
bra.'Tlches within
oetronoli tan
area of home
office
Other banks having
branches within
and beyond meti:opoli tan area of
home office
205 2,657,349,000 232 1,717,618,000 4,374,967,000
It will be seen that the amount of banking assets concentrated in branc~
organizations predominate.
In 1923 the California League of Independent ]ankers sponsored severaJ.
bills submitted to the State Legislature, the purpose of which was to restrict
the further spread of branch banking in the State.
The bills failed of
passage.
With the ena.ctment of the McFadden ]ill, the activities of the
League ~bsided.
:BR.IEE' HISTORY OF LEGISLATION, IF M-.TY, PERTAINING TO OWUERSHIP OF BANX
STOCK BY HOLDING COMPANIES:
There has been no legislation in California affecting tho ormership of
bank stock by holding companies, nor has there been any active discussion
of the need for such legislation,
GROUP 13.ANXING:
In California, the ownership of stock by corporations orga.~ized for
that purpose arose out of the growth of branch banking.
It first came
to life as a device for acquiring stock of banks for the purpose of con-•
verting them into branches because the laws of the State prohibited a
bank from owning stock of another corporation.
This inhibition applies
even though the ownership might be for so short a time as one day while
the transition from a unit bank to a branch is taking place.
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Federal Reserve Bank of St. Louis
-4After acquiring control of a unit ba.Jik for the purpose of converting
it into a branch, steps were taken to obtain permission from the Superintendent of Eanks, as required by law, to establish a branch in the town
in which the unit bank was situated.
If a member of the Federal Reserve
System, it then would be required to obtain the consent of the federal
Reserve Board to establish such a branch in compliance with an agreement
entered into at the time the State bank joined the Federal Reserve System.
This agreement was to the effect that the bank contemplating membership
would not establish a branch except with the approval of the Federal Reserve :Soard.
Originally, the corporation acquiring unit banks was owned by the
identical stockholders owning the bank establishing branches. Examining
authorities, therefore, felt that the relationship between the bank and
the affiliated corporation was such as to make it desirable to conduct an
examination of the affiliated corporation.
To avoid such inquisition, a
separate corporation was organized, thus bringing into existence the first
of what might be called the group-bank holding companieso
The branch expansion which was taking place about 1923 alarmed unit
banks within the State of California and elsewhere.
This led to a demand
in Congress for legislation restricting the further development of branch
banking within the Federal Reserve System.
Pending action by Congress,
the Federal Reserve Board amended its Regulations by providing that it
would, as a general principle, restrict the establisr.ment of branches beyond the city or location of the parent bank, or beyond cities or towns
the corporate limits of which at some point coincided with the corporate
limits of the city or town in which the parent bank was located.
The
Federal Reserve Board also required that before granting any permits to
establish additional offices within the foregoing prescribed limitations,
the superintendent of banks mu.st first authorize tne establishment of
such additional offices and certify that the public convenience and advantage required it. The latter provision was in harmony with the State
law which provided that the superintendent of banks should not give permission to the establishment of branch offices until he had ascertained
to his satisfaction that the nublic convenience and advantage would be
promoted by the opening of su~h branch office.
During the period between the issuance of the Board 1 s Regulation of
August, 1924, and the passage of the McFadden Bill in February, 1927, 112
banks were acquired by affiliated holding corporations. Between the date of
the passage of the 1AcFadden :Bill and the date on which it became effeqtive
(10 days later) most of these banks were c~nverted into branches, and, together with two other important nonmember branch-banking systems, werq absorbed by a member bank having State-wide branches. Immediately Dreceding
the time in which the UcFadden Bill became effective, this system uas nationalized to form one National ba,,."'ik with 275 offices situated in 156
towns having $652,000,000 in resources.
The usefulness of the bank-holding company did not end at this point
because it was desired by the same interests to continue branch expansion
under State charter without membership in the Federal Reserve System.
Since February, 1927. 42 banks with $51,565 1 000 in resources, have been
fused with a non-member bank, formerly a State me.mber bank. On December
31, 1929, it had 160 branches in 101 towns, and $373,000,000 in resources.
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Federal Reserve Bank of St. Louis
- 5During this period, the holding corporation also acquired 25 banks
with resources of $48,060,000 and disposed of them to the National bank
by consolidating the banks acquired with local branches legally acquired
prior to the McFadden .Act becoming effective.
It will be seen that the California corporation developed llQm. a
vehicle originally designed to facilitate the temporary ownership of unit
ba.11ks pending their establishnent as branches, into a holding corporation
to control both unit and branch banks in contemplation of further consoli-dation of unit banks a..'1.d branches with lawfully existing off ices or in con•
teI?4>lation of legislation which later would permit :further extension of
branch banking.
This development has lolldto another phase of banking in California
which has rapidly spread to other States.
Corporations have been orga.."'1.ized for the purpose of acquiring substantial ownership in the stock
of unit banks with the announced intention of retaining them as independent banks.
Ostensibly, they have been formed to acquire unit banks
by those interests which are, or claim they are, opposed to the principle
of branch banking.
.Assertion is made by the GROUP proponents that this
method of banking presents advantageous means of granting more extensive
banking service to conraunities removed from metropolitan centers while
the control virtually is being held by the central directing corporation.
Substantial financial interest in unit banks is held by local officers
and directors ·who are said to be completely responsible and independent
in so far as questions refer to their natural banking territory.
In
this way it is claimed local interest and knowledge of local conditions
are retained, thus the banking needs of the coo::runity are dealt with by
those who are thoroughly versed in, and syopathetic with, the financial
conditions thereof.
It is further claimed that the handicaps of financial coopetition, with lioitation of size and organization ordinarily attending operations of unaffiliated independent banks, are renoved by
reason of the strong metropolitan affiliation.
&lch affiliation, while
not supplanting the unit banks: supplements their service, the objective
being a more extensive cot:n:mmity banking service, with a more efficient
utilization of resources and greater economies and profits resulting from
unduplicated but coordinated effort •
.Actually, however, this □ovement night be attributed to one of ui1cer-•
tainty as to what the trend may be in relation to branch banking.
.As a
protective oeasure, therefore, it might prove to be a far sighted policy
to acquire control of independent ba."Jks while they are available at
strategical points.
Later, they can be converted into bra-~ches, if permitted by law, or disposed of as unit banks if branch and group banking
should fall into legislative or public disfavor.
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Federal Reserve Bank of St. Louis
- 6-
CHAIN 13.ANKING:
There is an absence in California of individual interests having
ownership of stock in several unit ba.."'lks and, by reason of such ownership, exercising a dominant part in the management or policy of such
banks.
EXHIBITS MADE A PART OF THIS REPORT:
l3anking Laws of California pertaining to :Branches Exhibit l (8 pages)
Econox:iic charts of California's dominant ind:ustries Exhibits II, III, IV
Chart showing growth of banking resources
Exhibit V
Chart showing relative iq,ortance of
Ex...1ri.bit VI
:Branch Banks (or)
Group Banks (or)
Chain Banks (or)
Unit :Sanks.
CHARTS SHOWilTG LOCAJ:Imr OF OFFICES OF
OUTSTAlmnm
SYSTE!ffi
:or
Bank of Italy National Trust and Savings Association
Bank of .America of California, Los .Angeles, (non-member)
Security First National Bank, Los Angeles
.America.~ Trust Company of Sa..i Francisco
California Bank, Los .Angeles
Anglo National Corporatiotl Group, San Francisco
FOBEGOil!G CLASSES
Exhibit
Exhibit
Exhibit
Exhibit
Exhibit
Ex..l-iibi t
VII
VIII
IX
X
XI
XII
CHARTS OF ORGA:TIZA!I'IOUS SHOWING OWNERSHIP OF OUTST.AlIDING GROUPS:
TransaL1erica Corporation
Anglo National Corporation
DAT.A. CONCERlTllrG BAl~STOCK HOLDil~G COMP.ANIES
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Federal Reserve Bank of St. Louis
Exhibit XIII
Ex.'riibit XIV
Exhibit 'm
·-
Exhibit 1
Page
l
FOR CONFIDENTIAL USE OF THE COMUITTEE ON BRANCH, GROUP AND CHAIN BANKING
.Appointed February 26, 1930.
ST.A.TE OF CALIFORNIA.
San Francisco District.
Laws governing establishment of Branches.
Bank Act of California, 1929:
Section 9.
No bank in this state, or
any officer or director thereof, shall hereafter open or keep an
office other than its principal place of business, without first
having obtained the written approval of the superintendent of
banks to the opening of such branch office, which written approval
may be given or withheld in his discretion, and shall not be given
by him until he has ascertained to his satisfaction that the public convenience and advantage will be promoted by the opening of
such branch office; provided, that no bank or any officer or director thereof, shall open or maintain any such branch office unless
the capital of such bank, actually paid in, in cash, shall exceed
the amount required by this act by the sum of twenty-five thousand
dollars for each branch office opened and maintained in the place
where its principal business is transacted; and provided, that for
each branch office opened or maintained by any bank, other than·a
bank transacting only the business described in section six of this
act, in any place in the state other than the place where the principal business of such bank is transacted, the capital of such bank,
actually paid in, in cash, shall exceed the amount required by this
act in the $1.llll required by this act for every bank hereafter organized in the place where each branch office is to be opened or
maintained, exclusive of the capital required for a trust department; and, provided also, tP.at for each branch office opened or
maintained by any corporation which bas power to transact only such
business as is described in section six of this act or in section
four hundred fifty-three x of the Civil Code, in any place in this
state other than the place where the principal business of such
corporation is transacted, the capital of such corporation, actually paid in, in cash, shall exceed the amount required by this
act in the $1.llll of twenty-five thousand dollars; and provided, further, that no branch office may be discontinued without the previous written approval of the superintendent of banks.
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Federal Reserve Bank of St. Louis
Every bank, before it opens a branch office, shall obtain the
certificate of authority of the superintendent of banks for the
opening of each of said branch offices.
The applicant shall pay
for such certificate a fee of fifty dollars; provided, however,
that, in order to encour~e saving among the children of the schools
of this state, a bank may, with the w.ritten consent of and under
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Federal Reserve Bank of St. Louis
•-
·-
California
Exhibit l
Page
2
regulations approved by the superintendent of banks and, in the case
of public schools, by the board of education or board of school
trustees of the city or district in which the school is situated,
arrange for the collection of savings from the school children by
The
the principal or teachers of such schools or b1 collectors..
collecmake
to
bank
the
by
a:uthorized
principal, teacher or person
tions from the school children shall be deemed to be the agent of
the bank and the bank shall be liable to the pupil for all deposits
ch principal, teacher or other person, the same as if
ma e with
Every
the depo its were made by the pupil directly with the bank
bank and every ch officer or director violating the provi ions of
this section hall forfeit to the people of the state the sum of
one hundred dollars for every dey during which any branch office
hereafter opened shall be maintained without such written approvalo
1'he aggregate of paid-up capital together with the
SectiQn 19.
surplus, of every co!Illllercial bank, mu.st equal the following percan.'kl.ges
of its deposit liabilities:
(a) Ten per centum of acy amount up to and including one million
dollars.
(b) Five per centum of any amount in excess of one million
dollars.
The aggregate of pa.id-up capital together with the surplus o!
every savings bank having a capital stock: and the reserve fund
of every savings bank without a capital stock, mu.st equal the
following percentages in its d,,pooit liabilities:
(c) Ten per centum of any amount up to and including one
million dollars.
(d) Five per. centum of any amount in excess of one million
dollar up o and including three million dollars.
(e) Three per centum of arry amount in excess of three million
dollar up to and including twenty-five million dollars.
(f) One per contum of any am.aunt in excess of twenty-five
million dollars.
Any bank which maintain branch offices must, for each respective
f department, maintain an aggregate of paid-up capital and s,.:rplus
i equal to the foregoing percentages of its deposit liabilities, call culated on tho basis of a separate total of such dcposi t liabilities
' for each city or town in which a.ey such branch office may be main.\ tained.
id'Jfue dopoaits shall not be increased if such proportion of
'
up capital and surplus or reserve fund to deposit liabilities is
not maintained., and in no event shall said paid-up capital be loss
tban th minim:mi pa.id.-up capital provided by this act; provided
that Sil h deposit liabilities shall be exclusive of United State
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Federal Reserve Bank of St. Louis
•
C-9..!.if orn5.a
~..hibit 1
Page
3
and postal savings d~1>o~its and deposits of the State of California,
the counties, .:;1.ties and counties. cities and towns of said State ot
California and of a."ly other- govc~nmcr..tn:'. or political subdiv sion of
the State of California which a.re socured as required by law,
Section 23.
When a bank desires to do a departmental business,
it shall first obtain tho consent of the superintendent of banks, and
in its application therefor, file a statement making a segregation of
its capital and surplus for each department.
Su.ch capital and surplus, when so apportioned and approved by tho superintendent of banks,
shall be considered and treated as the separate capitl\l and surplus of
such department ns if each department was a separate bank.
Thereafter e bnnk IM3, from timo to time, with the previous consent and
approval of the superintendent of banks and subject to the provisions
of section nineteen of this act, chrolgo any sogregation and apportionment of capital nnd surplus previously ma.do and mruco a now segregation
and apportionment of its capital and surplus.
Every bank hereafter
organized doing a departmental businea sbs.11 have paid up, in ca.sh,
capital stock as :follows:
(a.) In r:my loeali ty in which the population doea not excood
five thouso.nd per ons, not loss than twenty..five thousand dollars
if it transacts both a commercial and savings business, or not less
than ono :tnmdrod twcnty-fivo thou
d dollars, if it transacts both
a commercial and trust business, or not less than ono lm.ndrod twontyfive thousand d.Gllars if it transacts both a savings and trust bu inoss
and not loss tban one hundred twonty-fivc thousand dollars if it tran ►
acts a commercial, savings e.,.'ld trust btl.sinoss.
(b) In a.iv city in which tho population is more than five
thousand persons, but docs not exceed twenty-five thousand persons,
not less than fifty th~~sand dollars if it transacts both a conmercial and savings business, or not less than ono hundred fifty
t:1ousand dollars if it transacts both a. con:morcial a.nd trust business,
or not less t'han one hundred fifty thousand dollars if it transact
both a savings and trust bus ess, and not leas than one hu.ndrod
fifty thousand dollnrs if it transacts a commercial, savings and
trust bUsinoss.
(c) tn aey city in which the population is more than twenty-five thousa..--id persons, but doos not exceed one hundred thousand
persons, not loss than one bu..'lldred thousand dollars, if it tra..'lea.cts both n commercial and sa•ings bUsiness or not lea than two
hundred thou.sand dollars if it trnnsacts both a eommereial and
rust business or not lose than two lru.ndrod thousand dollars if
it transacts both a aartng• nnd trust business, and not loss than
two hundred thou.sand dollars if it transacts a commcrcinl, savings
and trust business.,
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Federal Reserve Bank of St. Louis
•
Oali f '.>rn ta
11:xhibit 1
Page
4
(d) In any city in which the population is more than one
hundred thousand :persons, but does not exceed two hundred thousand
persons, not less than two hundred thousand dollars if it transacts both a co:rmercial and savings business, or not less than four
hundred thousand dollars if it transacts both a commercial and
trust business, or not less than four l'nlndred thousand dollars if
it transacts both a savings and trust business, and not less than
four lnL~ed thousand dollars if it transacts a commercial, . savings mid trust business.
(e) In any city in which the population exceeds two hundred
thousand persons, not less than three hundred thousand dollars if
it transacts both a commercial and savings business, or not less
than five lnmdred thousand dollars if it transacts both a commercial and trust business, or not less than five hundred thousand
dollars if it transacts both a savings and trust business, and
not less than five hundred thousand dollars if it transacts a
commercial, savings and trust business.
The foregoing classifications shall not appl~ to a:n.y bank
already in existence which has received from the superintendent
of ba."lks a certificate to do a banking business nor to a:n.y bank
the location of which shall have been included by annexation or
, consolidation within the limits of a city of a class requiring a
I larger capitalization, but no bank thus excepted shall be per! mi tted to establish any new branch office as provided in section
I nine of this act or to remove its place of business from the
· original limits of the city or township wherein it was located
prior to such annexation or consolidation until it shall have
the capital required of banks in such city not within said exception.
Such excepted banks may not in a:ny case decrease their
capital stock, but may increase the samo in the manner provided
by law to an amount either greater or less than that required of
ba.."lk:s in such city not within said exception.
The capital stock
referred to herein shall be increased from time to time to the
same extent as provided for in section nineteen of this act.
Nothing heroin contained shall prevent tho superintendent o!
banks in tho exercise of his discretion from granting his license
to any bank herca.ftcr organized in a locality which has been i~
eluded by annexation or consolidation within tho limits of a city
requiring a larger capitalization with a capital stock paid up in
cash oqual to that which would have been required for said locality if it Md not boon included by annexation or consolidation
within the limits of a city requiring a larger capitalization;
provided, that no bank so licensed shall bo permitted to ostnblish DIJ.Y branch office as 1rovidcd in soction nine of this act
or to remove its place of business from the original limits of
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Federal Reserve Bank of St. Louis
•
Exhibit l
Page
5
the city or township which has been included by annexation or consolidation within the limits of a city requiring a larger capitaliza,tion unti~ it shall have the capital required of banks in such citr
requiring said larger capitalization.
For the purpose of this act, the population shown and determined
by the last preceding federal census, or a:ny m1b1equent census com.piled and certified under any law of this state, sball be deemed to
be the population of any city in which any such bank is to be orgapbed.
If the principal place of business of a11Y bank so organized is located
outside of the corporate limits of a:ny city> then the population of
that portion of the judicial township in which said bank is to have
its principal place of business, which is not included within the
boundaries of any municipal corporation, as such population is shown
and determined by such federal or subsequent official censu , shall
be the basis for classification under the provisions of this act.
Section 28.
Every bank in this state must, on its principal
place of business and on all communications to depositors, and on
each of its branch offices, use the word "savings" if it conducts a
savings business, and the word "trust" if it conducts a trust business,
and the word "commercial" if it conducts a commercial business. Every
bank which maintains a branch office n:u.st on all window signs and in
advertising, and on letterheads and other stationery on which the
business of said branch office is transacted, use in letters and type,
equal in prominence to that used in its corporate name, the word
"branch" and the name of the place where its principal business is
located; provided, that an,7 such bank 'JJa:Y on all window signs and in
advertising, and on !etterheads and other stationery of such branch
offices as are located in the city where the principal place of
business of such bank is located, use in letters and type, equal in
prominence to that used in its corporate name, the word "branch" or
the word 11 office 11 and the designation by street and number of the
placo where its principal business is located.
Section 60.
Every savings bank hereafter organized must have
paid up in cash a capital stock of not less than
(a) Twenty-five thousand dollars if its principal place of
business is located in any locality the population of which does
not exceed five thousand persons;
(b) Fifty.thousand dollars if its principal place of business
is located in any city the popu.lation of which is more than five
thousand persons, but does not exceed twenty-five thousand persons;
(c) One hundred thousand dollars if its principal place of
business is located in any city the.population of which is more
tban twenty-five thousand persons, but does not exceed one hundred
thousand persons;
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
California
Exhibit 1
Page
6
(d) Two hundred thousand dollars if its principal place of
business is located in any city the population of which is more '
than one hundred thousand persons, but does not exceed two hu.ndred.
thousand persons;
(e) Three hundred thousand dollars if its principal place of
business is located in a.cy city the population of which is more
than two hundred thousand persons.
Excepting that any savings bank organized without capital
stock mu.at have a. reserve fund of at least one million dollars.
Until the capital stock or reserve fund hereinbefore required
shall be actually paid in 1 the superintendent of banks sba.11 r efuse to issue the certificate required by this act.
The foregoing classification shall not apply to eny savings
bank already in existence which has received its certificate to do
a banking business from the superintendent of banks; nor to a:ny
bank the location of which shall have been included by annexation
or consolidation within the limits of a city of a class requiring
a larger capitalization, but no bank thus excepted shall be permitted to establish any new branch office as provided in section
nine of this act or to remove its place of business from the
original limits of the city or township wherein it was located
prior to such annexation or consolidation until it shall have the
capital required of banks in such city not within said exception.
Such excepted banks may not in any case decrease their capital
stock, but may increase the same in the manner provided by law to
an amount either greater or less than that required of banks in
such city not within said exception; provided, that nothing herein
shall be construed to affect the provisions of section nineteen of
this act relative to the proportion of capital and surplus to depo its or of section twenty-three of this act relative to the
capital stock required of banks doing a departmental business.
The provisions of section twenty-tbre& of this act, as to
population, shall apply to any bank organized under the provisions
of this section; provided, however, that nothing herein contained
shall prevent the superintendent of banks in the exercise of his
discretion from granting his license to any bank h3reafter orga,nized in a locality which has been included by annexati•Jn or consolidation within the limits of a city requi:r:-ing a larger capitaliza,tion with a capital stock paid up in cash equal to that which shall
have been required for said locality if it had not been included by
annexation or consolidation within the limits of a city requiring a
larger capitalization; provided, that no bank so licensed sball b~
permitted to establish any branch office as provided in section n\ne
of this act or to remove its place of business from the original ,
limits of the city or township which has been included by annexa.t{on
or consolidation within the limits of a city requiring a larger
capitalization until it shall have the capital required of banks in
such city requiring said larger capitalization.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
·-
-
. . ifornia
Exhibit 1
Page
7
Section 82.
~el"y commercial bari.k hereafter organized must
have paid up in cash
(1) Capital stock of not less than
(a) Fifty thousand dollars, if its principal place of business
is located in any city or locality the population of which does not
exceed twenty-five thou.sand persons;
(b) One blndred thousand dollars if' its principal place of
business is located in any city the pop'tlla.tion of which is more than
twenty-five thou.sand persons, but does not exceed one hundred
thousand persons;
(c) Two rundred thousand dollars if its principal place of
business is located in any city the population of which is more
than one hundred thousand persons, but does not exceed two hundred
thousand persons;
(d) Three hundred thousand dollars if its principal place of
business is located in any city the population of which is more
than two hundred thou.sand persons.
·
(2) A surplus and contingent fund equivalent to twenty-fiv~
per centum of su.ch capital stock.
The foregoing classification shall not apply to any- commercial
bank already in existence which has received its certificate to do
a banking business from the superintendent of banks: nor to any
bank the looa.-tion of nhich shall ha.vo been included by annexation
or consolidation within the limits of a city of a class reqg.iri~
a larger ca.pi talizati n, but no bank thu.s excepted sl:la.11 be permitted to establish a:rry new branch office as provided in section 9
of this act or to remove its place of business from the original
limits of the city or township wherei.n it was located rior to
so.ch annexation or consolidation until it shall have the capital
re<{llired of banks in such city not within said exception.
$\lch
excepted bank ~ not in any case decroast3 their capital stock,
but ma::, increase the same in the manner ~r0vided by law to an
amount either greater or less than that required of banks in such
city not within said exception; pro-;rided, tl:at nothing herein shall
be construed to affect the provisions of section 19 of this act relative to the proportion of ccq>ital and sui'plus to deposits or of
section 23 of this act relative to the ca~ital stock required of
banks doing a departmental business.
The provisions of section 23 of this act, as to population,
shall apply to any bank organized under the provisions of this section; provided, however, that nothing herein contained shall prevent
the superintendent of banks in the exercise of his discretion from
granting his license to any bank: hereafter organized in a locality
which has been included b annexation or · consolidation within the
limits of a city requiring a larger capitalization with a capital
stock paid up in cash equal to that which would have been required
for said locality 1! it had not been included by annexation or consolidation within the limits of a c1 ty requiring a larger capi talization; provided, that no bank
licensed shall be permitted to
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
·-
California
. Exhibit 1
Page
g
establish any branch office as provided in section 9 of this act
or to remove its place of business from the original limits of
the city or township which has been included by annexation or
consolidatio n, within the limits of a city requiring a larger
capitalizat ion until it shall have the capital required of banks
in such city requiring ea.id larger capitalizat ion.
-C A LI F O R N IA
FI DENT I AL USE C,F
COIMITT!E ON BRANCH, GRCUP, ·
0
R
E
H.\ -
u
G
N
Al'ltA
N ING
1. lllla..t.Ali.l .1
___ ~uhl1, lU'd 11&117 l'rooluou. Otbor
Ll• ■ tOOk, .Po.altrJ, • t.~elr l'rodllot ■, OU.or
PNlt ad ~ l Crepe, Ot ... r
I,
1111.lllJll .&IIAl.1
l.1111 b rl ac a. n• or Pro.I•• ta , Otbe r
.,.1Y11 ■ toat, Poultr,, • tnalr .>tr~ota, 0th r
la7, • • t , • larhJ. Otllor
3.
2
I
5.
b.
SAC
~'°'
i'raa ""' "''
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d. G-0041,
i.labtr. OtAer
4.
loltNTC A~EA
3
CXHIIIIT
APPCINTCO FEBIWA~Y 26, 19,0)
l&ll llou or llollara
33
14
11
~
13
411t'' ~a1r7 Pt'04l.lco,
..1v11t00&, Po,dtr7, • thelr Proihaota,
her
wro.b&r4', 11114, • Tnao.c. Crop ■,
bar
120Cl>'l'<a ~ .
Pr llr'Y
• Cannocl ooda, JU''d Dairy iro.u1 .. u,
l.lu1toe1<, PoultrJ. a. ~n Ir l'ro<\aota. 0tboa r
Orobard. llald, a. r,e,. Cropa. Otb r
o/.)
33
•n
bor
57
w n.ucuoo A&,,;a.,
Potrolr.- Jlatla1 • , _ , ......1 • Otboar JU1°
!..h11tock, POIJlt.rJ, A tbalr Pr0J.Ui0tl,
lwr
Orabard, TNCI& •• VIH,-.r4 Crop•' Otb• r
n..sro .&&i.1.,
l'r•• ne4 • C•••cl -,oo41, Cna1H 011, JU• 4 J;1air7
Pro eta, ttwr
l.h·e1toa&, PuiilU'7, • tD11lr Pro4\l;ta,
bor
Wai• wrap.a, Orclo&N, a. Fl loi Crapo,
b r
113
l4
115')3
tr/
104
5$
110
()
0
LOS ANGELES AREA
8
7.llmrlUY AMa.a
Pr•Hned a. ea- d Pooch, .11111 ro"'oto, llt'd
lliall"J Prodllote, Otbor
1.l•aatoak, POUltrJ, a. their Proauoto, 0th
Orobard, nald, md Truolt Crape, Other
II. L(B .tall.US a.BB.la
on, llotlou Plotvu, Pru•"" a. Canuod !Jooda,
Other 1111,
lOb"j
LlTanoolt, Pmlir:7, ,1, thalr PrOducu, 0th r
41
CltNa, alnto, field Cropa, Truolt Cropa, Otllarl~
'3. ■-111.,ao~
cam1111
a.
PrH•"l"I flab, Other
I.IU ■ \Oolt, Po,i1tr7, • tbalr PrOdolct•. OU.tr
TNO& Crop ■, CltNo rnlta, Other
40
~
c----
"'
0
~
~
SAN Ol[GO A
-y
17
~
A
9
-z_
I
I
ANNUAL V ALLJE OF
IND US TR (AL AND AG RIC UL TURA
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
PR □ DLJ[TION
--
1!.
CONFID:lfTIAL USE • oair .....
APPOINT'ID F~BRUARY 26, l93llllf'
(FO!t
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
0?1 BRANCH, GROUP, AND
(1n millions of dollars)
c& ~INO
y
•·
~1b1t III
(FOR CONFIDENTIAL US?l' )F COJ.XITTEE ON BRANCH, GROUP, AND ~IN B,~NKING
APPOINT~ F~RUARY 26 · 9•
-
0
10
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
(1n ~1111Qns of Dollars)
7
El:.h1b1t
ll
0
ol~nrs)
r
-t
t
i
20
30
40
50
60
70
80
90
100
,GROUP,ANO
ED FEBRUAft
GTTfl
~
4-----t---+---I
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
RATE OF OEVELOP~ENT IN CALI FORNI Aa 1915 TO 19,0
:t<'
1915
,JJ<
1930
TOTAL 9ANK ftESOURCES ••.••.•••..• 1,289,000,ooo ••••• ,.,1s,ooo,ooo
ASSESSES
VALUE OF PROPEftTY ••••• f',,,,1,000,ouo .... 1'9,886,000,000
POflULAT I ON ••••••••••••••••••••••
2,940,000 •••••
CA ~
DR
DEC. 31, 1929.
u
Of
CCMIITTEC O II
If, G OUP, A
APPOINTEO FE RUA Y 26,
G-o /"I
REDPIN&
BA
I G
AIT'£.1
0
10
5
•
12
,t
HAI
19}0)
19201
P PULATI
A
Ar
150,}6()
3, 7,000
UA
MIL[
G ATEST WIOT r
:,2
G ATCvT LC
1000 MIL(
THr
ILC
-z..
"5'
I-
'46:5
Off I CCS OF
• OF ITALY a,
rices OF OTH
,,~ UNIT
-Y
. tl,41 ,1
H
A
TOTAL1
s.
1,
,000 (
• 716,000
970,
~)
<, )
f)
t-4,37'4,
~
~
o')>
I
I
rn
I
'
-z.
!:LL.
11
OFFICES
or
0
OfflCC
OF OT
•
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Federal Reserve Bank of St. Louis
IT
s
BA
OF ITALY A
e
H
A
BA
S
vf' A
RICA GR UP
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
l
BANK OF
II
DECEMBER 31,
1929
OROVILLE
,GRIDLEY~
,LIVE OAK
, YUBA CIT
,MARYSVILL
, WHEATLANi)(
,ROSEVILLE
,SACRAMEN
,LODI
0
·1i~a
~MPjt
.MANTECA
,LIVERMORE
TRACY
~
, MODESTO
~ ~.GUSTINE
/
-:::
~
ATWATER"'
,MERCED
,LOS BANOS
, DOS PALOS)(
MADERA
~
/
//
~
~
'1f
: FIREBAUGH
FRESNO
SANGE
,SELMA
~~~~~br.~
%
,..VISALIA
TULARE
~TIPTONl
WASCO
'SHAFT
: EAST BAK~SFIELD
, BAKERSFIEi
-~~~~1Ii
HIGHLAND
RK
'MONROVIA
1 ALHAMBRA
ARCADIA
SAN PEDRO
WILMINGTON
LONG BEACH
POMONA
FULLERTON
ANAHEIM
1
ONTARIO
~ PLACENTIA
ORANGE
/ SANTA ANA
1
X
OCEAN SIDE
LA JOLLA
'/ ESCONDIDO
/OCEAN BEACH
I LA MESA
ISAN DIEGO
ICORONADO
~NATIONAL CITY)(
CHULA VISTA
/ BRAWLEY
/ EL C NTRO
Jf
0/'f'r.,mng f/,,, .,q/,
c:J/
g/Jti
a n,,onber tlt V,11f Bo,.f.s
,,,.,Mt'-
TOT L RES URCES 12 31 29
(MI LL IO S)
K OF ITALY,
• T. & S. •
8 U IT B NKS
1,043
34'
.J3
BANK
·-
0 ,
•
G
oirtt
AMERICA
•1,
xhibit VIII
-
bruar"' .26
'
1
OF CAL I F □ RN I A
19'.i)
ORLAIIC
TUBA CITY
•ILLIAMS
GhSCIIVILLC
"APA
YALL[T ro
~
P(T ALWA
T CMALCS
SUI SU
(t
YALLCJQ _
d:
RICHlolO~O __{)
8£..,.[LCT Q
L IS ANG[LCS
SA" FRA ..CI S.
{)
,VIH PASAO["A
_c ¢
0 J<LA O_
ALA..COA _fJ
!l•'ltl'IGA.11[
"0"IER£T PA
{t
SA• CARI. CS
SA" JGSC
l {t
1100£.l L
l,_{t
O{P
A~A,;£111.
<;)
Q
qJ
;~INO
LA"ll
J/
TURI.CCJ<
•"ITTICR
A HABRA
'-
qJ
HIL•JAR
HOLL1S1£•
PACIFIC GR Cvi.iJ;
r01tL£RFlu:SNO
£XCTER
c...Jt;=====:==~~:-----j,f:-----:..,_-~-r7-~:
TAfl
BELL
COLTON
--LP
SAN 8ERNAk
UOLANOt
SAN CLCWCNH
ENCINITAS
SOLANA BCA:~
OMO A
SAN OICGO
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
~E)(/CO
C-"~c,11,.:;oa,
0
f
BRANCH BANKING STSTCII OTH[R THAN 9A,;J( OF ITALT
IHOtPCHOtHT 8ANJ<
TOTAL RESOURCES 12 31 29
(MI LLJ ONS)
BANK OF AMERICA
9
UNIT BANKS
·(FO
C Fl
tTI
US
vF C
IX
ITTCE O SR~NCH, GR
l~.
., k'
•
....•-=-...
AND CHAIN BA Kl G, APPOINTED FCBRUARY 26, 1930 )
LOS ANGELE 5
OF
K
SE[URIIY□FIRST NAf l□ ALEfiB\N
31, 1929.
c;
-
0
♦
DECE
EGON
0
0
OPERATING THROUGH
123 OFFICES
IN 59 CITIES.
A_
•
♦ 0
0
• 0
0
:II:
,c -
•'"'
<z:
0
al ...
►,c
C'
• 0
-
G
0
.L.il~U!--
0
0 ..........,_.,_.""--- ----..
0
♦
♦
.LOS AN.a
0
0
~ 0
0
0
~ 0
••
0
0
0
0
0
0
0
("'
~
~~
0
0
Q
0
0
0
0
~ 0
0
•
0
0
0
0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
TOTAL RESOURCES 12-31-29
610,683,000
·-AM ERI CAN TRL J5T CD.
H(A
CFFI (: SA
(FO CO FIDE TIAL USE OFC
ITTEE ON
BRANCH, GR UP, ANO ~~AIN BANKING,
APPOI TEO FEBRUARY 26, 1930)
FRA
i..lf,
R 1,
0
~
t
,c
2
C
"' Cl
<
1
I-
z
-
C
II)
.,
,." C_,
~
0 "1
0
~
'
0
0
OPERATING TH U,H
96 OFFICES I 32 CITIES
"'·"'--'-="-"'--"--- - - - -
~ru.LI.L!.IL_ _ __
. ,·.
~ ()
~o
t
,/
0
O tw,;r\t--1,/Jtt'I~
to0 ~>¥--.•~;y,..,.
~
~
(rl
0
~
1}:>~
~
TOTAL
SOU CES 12•31•291
.,04,,70,000.
CO PETITION:
~
0
UNIT BAK
BRANCH BA
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
-·CAL IFO RN IA BANK
HEAD FFICE:
OF
USE
FOR CONFIDENTIAL
COt,1,tlTTEE ON 8RANC~, GROUP, ANO CHAIN BANKI G
APPOINTED FEBRUARY 26, 1930)
LOS ANGELES
OECE~BCR
3~, 1929
OPERATING THRvUGH
56 OFFICES IN 18 CITIES
TOTAL RESOURCES 12•31-29:
,111, 890,000.
COMP ET I TI ON:
~
0
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
UNIT
AK
BR NCH BA
I
fO" CONf IC(NT IAL US( Of C~
££-
BRANCH• GROUP• ANO CHAIN
A
BANl<Wc,
-
i 1 XII
ft,iTEO FEBRUARY 26. 1930)
ANGLO NATIONAL CORPORATION 5RDUF
S~
F A .,15
OE~E~BCR 31. 19~9
o .. , ....
OPERATING 10 B~NKS IN 17 CITIESs
12-31-~
TOTAL RESOURCE
14
t 183.928.000
NATIONAL BANKS IN CALIFORNIA
3 STATE
BANK5 IN CALIFORNIA
1 NATIONAL BANK
WASHINGTCN
LGNGVIEI #ASH
TOT Al BANV. RES GURCES
0 .........> < . > < . . ! ~ - - ~
0
<)
.!.!.IL"---"=-><-1....1-- -----J
O=-.a...'-'-'---"=- - -
•o ~~~---·
<)o
..><.:...!'-'--l.~'-!.X-1..........."'---.J
~o
..><..C.!'-'-"'-L.ll.J.W .----J
0 ......,_,,._,.__.,,,.._....,.__--J
C> 0 ~..,__,,._,,_,,,_...__
0
___,
=><.-.....:~_ ___,
CWPET IT I ON
~
U
0
BRANCH BANK
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
IT
BA K
11, 82,000
1 426 000
196,536,000
H
H
(FO CONFIOENT IAL USE Of'
COl,MITTEE ON BRANCH, GHCUP, AM> CHAIN BANl<IN<'i
~PPCINlEO FEBRUART 26, 1 30)
e
.c:
r=T=R=A=N=s=,;A;==M~E==R====,c====.==s===c===□
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=~R~A~T~\D~N==;====;r
DEC.
C ()l;,M[ MC If. l
l'ACIF IC
NAT. f I RE
HvLD I NG
, .. s. co .
C Ct.oPANY
(::AL If,)
31, 1929.
OCCIOENlAL
LIFE I NS.
CD,iPANY
(CALIF.)
7
CO
RAIi N
OF
A~•ERI CA
CRCt ANTS
I
?
I
NAl
I(
REAL 1 Y ::O.
I
1 RANSA,,ERI CA
CORPOR~T I ON,
Ll!AITEO.
(CANADIAN
CHARlER)
A'Al RI CA
NJ.L
VE ST (IIIT
CAP IT AL
C
COI.IPANY
Pl<NY
J
FR!NCH
FUGAZI
Al![Rt CAN
-•
CORP.
(LIQ'G)
CCRP.
( LIQ'G)
BANK 11 A Y
AGRIC•ll'L
CR<OIT
CORP'N.
T rRCOAST
T AJI G
CW/JANY
BANI\ITALY
B A'iCAAI
~O'lTGA E
C(Jl,j ANY
IC
COIIPCIIATla.l
I
L,_
r - -- NAT I ONAL
BA~ITALY
BA KIT\LY
Cc»,IPANY OF
COMPANY
AJEl'ICA •
&[CURI TY
I NSUIIANCC
COIIPORATI
CF SAN FRA
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
N.IERI Cor.t.lE RC I AL
CORPORATION
OF SAN FRA
AU[RI CA
CAL I f'Ol!H I A
LANDS
INC.
BANCI TALY
co•.
(LI Cl'G)
BANCAM(RI C
RANSEUROPE
BLAI II
CORPORATION
COlf'ORAT I ON
I
INlER TATE
EOUITIES
CORPORATION
I
AMCRITALIA
COllf' RATION
I
MILAN, IT
L
y
,
.
EXHIBIT
(FOR CONFIDENTIAL USE rY
COMl,' ITTff ON BRANCH, GROUP, ANJ CHAIN BANKING
r - APPC;INHO FEBRUARY 26, 19,o)
-
- - -
-
-
-
-
- -
7
ANuLD &LO ND ON-PARfS
N~TIDNAL BANK
DECEMBER
,1 •1929.
5~N FRAN [15[ D
[Alf FD RNIA
Ar'fll
[0N50UOATED SECURIHES [OMFNJY
( IO ENT I[ AL STO[KHDLDE R5 )
ANCLO NATIGNAL CORPORATluN
ANGLO LGNOON PAHIS C
PACIFIC
NATIONAL
AGRICULTURA
CRf:DIT CORP.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
ANGLO
ANGLO
SAFE
EPUSIT CO
1!_Y
Exhibit XY
FOR C01JFIDENTIAL USE OF THE CO?.~UTTEE Olf .BR.AUCH, GROUP MD CHAIN .B.A?-;"XING
.Appointed February 26,
930.
DATA cm:CERNUTG BA1iK STOCK HOLDI~iG co:.a,.ANIES I T:PJE BAln<:S OF WHICH
~ IN OPERATIOli IN CALIFORNIA, DECEi,ffiER 31, 1929 •
1
1.
\
.ANGW nA1n N
SANSOiviE &
C
RATIOM GROUP
A.1-f
FRANCISCO.
Anglo & London Paris National Bank is the controlling element in
of its corporate affiliate, (Consolidat ed Securi t.ies Co.),
operations
the
trusteed for the pro rata beneficial interest of the
is
whose stocl{
shareholder s of the bank, and endorsement to that effect appears on the
ballk•s stock, which is listed on the San Francisco Stock Exchange. The
Consolidate d Securities Company owns all the class B voting shares of
the group-banki ng investment company, (Anglo National Corporation )
whose class A non,,.voti g stock is also listed on the an Francisco
The Ang]. Tational Corporation owns cont olling or
Stock Exchange.
substantial interest in uineteen banks (California 18, Washington 1,)
and an investment interest in various other banks.
SACHS TRADilTG CORPOR.Ar.'IO!~ GROUP
GOM):."
RUSS BUILDil': 1 SA!. FRAirGIS Q.
This is an investment trust specializin g in bank stock. Included in the group is the .American Truot Company of San Francisco,
operating a brancr-bank ing business ~ith 96 offices in California.
Goldman Sachs Trading Corporation Is stock is 1: ated on the New York
It controls the .American Trust Company's allied inCurb Exchange.
stitution, .American Securities Company, which acts as a bill dealer
in San Francisco, and C. F. Childs & Company, which also acts as a
rican
These are owned through Pacific
bill dealer in New York.
Associates, Inc., which 0vv:1s American Company, HJ.nter Dulin & Company,
:Bond, Goodwin & Tucker, Inc., and stocks _o f other':Pacif ic Coast financial and industrial enterprises .
:-,IOlf GROUP
s~r FR.Al!C!SCQ.
ST,,
MOlrrGO?.SRY
TRAWSAMERICA CORP
46o
Transameric a Corporation s the controlling clement in the large
operations of its two State-wide branch-bank ing institution s, (Bank of
Italy l ational ~st & Savings Association , and Thlnl: of America of
California) , and their respective groups of controlled unit barJcs.
Transameric a is not structually affiliated or associated lith any banking institution and its funds are invested in controlling intcreots of
a large number of banks, insurance con:pa,nies and investment cor:>oration s.
Officers, or a group of officers, directors or interlocl::in u directorato o
Transof some one institution direct or control other instit~tion s.
s are
corporation
rel·tted
its
of
some
of
stocks
the
and
america1s stock,
listed on stock exchanges.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
••
fEDER AL PESE RYE
B
1
K OF
S.\.' FPA
·c1sc o
farch 22, 1950
• E. A. Golden i er,
Chairman, Committ eon Branch, Group and Ch·
c/o Federal Re erve Board,
,ashingt on, D. c.
Dar
Banking,
• Golden i er:
By
o.y of a progr s
to inform you that th
report, I am V1Titing
pr p ration of a draft of an
outline to be folioed by th Federal Reserve Ag nt
:in furni~hi ng informa tion to your Co
tt e, per-
taining to the d velopme nt,in the Stat
thin the
r spcctive Federal Reserve Distric ts, of branch,
group and chain banking , is a.long the
tion
d
houl be
o
rded next
o.y to comple-
eek.
Your very truly,
~£ 7~
D uty Gov rnor.
Ce.rbon co
h beens t to
•
ead
• Rounds
• Fleming
• Riddle.
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
Very sorry for unusu ·l delay, but found
o e infoI": lation mor
ifficu lt to collec t than
antici ted .
Dat on l vada ill o forwar d in a d y or
so . D lav due to in bility to obtain early renoo ses
fro 1 evad Commis.., ·oner on "nfo ation re4.u te •
I. C.
I
•
MEMBERS
OFFICER ~,,
1930
F. 0. WETMORE. PRESl&NT
B.A . McKINNEY. VICE-PRESIDE NT
WALTER LICHTENSTE IN , SECRETARY
FEDER AL ADVISO RY COUNC IL
JOHN POOLE. DISTRIST NO. !5
J . P . BUTLER . DISTRICT NO, 6
F . 0 . WETMORE, DISTRICT No. 7
W.W. SMITH, DISTRICT NO . 8
GEORGE H. PRINCE. DISTRICT No . SI
WALTER S . MCLUCAS DISTRICT NO . 10
B. A . McKINNEY. DISTRICT No . 11
EXECUTIVE COMMITTEE
OFFICE OF THE SECRETAR Y
F. 0. WETMORE
B . A. McKINNEY
38 SOUTH DEARBORN STREET
W . C. POTTER
HERBERT K. HALLETT, DISTRICT No . I
WILLIAM C . POTTER. DISTRICT No , 2
L . L. RUE. DISTRICT NO . 3
HARRIS CREECH. DISTRICT No , 4
L . L . RUE
HARRIS CREECH
F . L . LIPMAN. DISTRICT NO , 12
W . W . SMITH
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
CHICAG O.
Dear
March 51, 1950.
r. Noell:
I have y.:our lett er of March 28 informin g
me that you are sending me copies of Parts 2 and 5
of the Hearings before the Committee on Banking and
Currency of the House of Represe ntatives , H. R.
·o. 141. I also note that you are out of copies of
Part 1 but have supplied each member of the Council
with a full set. May I ask that in future of anything
sent to members of the Council one copy be also
supplied to me. I find that I am always struggli ng
to eep my files complete owing to the fact that very
often instead of thirteen copies of materia l being
supplied only twelve are. As I am supposed to be a
kind of a clearing house for informa tion supplied to
the Council , this procedu re makes it rather difficu lt
for me. I wonder whether it would not be possible
for you to obtain at least one copy of Part 1. If
necessa ry, I should be glad top~ for it if it has to
be purchase d.
Very truly yours,
Secretar y
c.
Noell, Assista nt Secretar y
Federal Reserve Board,
ashingto n, D. C.
Mr. J.
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Federal Reserve Bank of St. Louis
.
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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
I
FEDE RAL
ESER YE BANI( OF S.\..Tl-, "'R\.NC ISCO
arch 27, 1950
r . . A. Go
Chairmnn Co
c/o Feel rul
'"'hin ton. J . C.
I
i
of
0
r
on Branch. Group
11 v~ry
to
uch a
to co ie~ of
t t, las relutin
r c
r.
1d Ch
t
it if you
yatt 1 s
to Br ncl Bankin
n ·n.
i est
(X-~ 28),
dat d arch 7, 1950 .
Your
verv truly.
4AJeLV
D J.t Gov rno .
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
I
an»
CAPITAL ANO SURPLUS $ 8,000,000 .00
Kansa s ([it,x.Af iss0un i
March 27, 1930
W . S . Mir LUCAS ,
CHAIRMAN
r. J.
c.
Noell
As istant Secretary
Federal Reserve Board
ashington , D. c.
Dear Mr. Noell :
I have for acknowledgment Y.Our r o
7 _.,
letter enclosing copy of Pa.rt 1 and 2 of the hearings
before the Committee on Banking and Currency on Branch,
Chain and Group Banking, for which I thank you.
Yours v ry truly,
Chairman of Board
II
I
•
.. -
0
MEMBERS
FICERS
19 3 0
F. 0, WETMORE, PRESIDENT
B.A . McKINNEY. V1c1<-PRESIDENT
WALTER LICHTENSTEIN , SECRETARY
FEDERAL ADVISORY COUNCIL
EXECUTIVE COMMITTEE
OFFICE OF THE SECRETARY
F . 0 . WETMORE
B . A. McKINNEY
38 SOUTH DEARBORN STREET
W . C . POTTER
L. L . RUE
HARRIS CREECH
B . A . McKINNEY. DISTRICT No . ,,
F . L. LIPMAN , DISTRICT NO , 12
W . W . SMITH
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
HERBERT K. HALLETT, DISTRICT No. I
WILLIAM C . POTTER, DISTRICT No. 2
L . L. RUE. DISTRICT NO . 3
HARRIS CREECH, DISTRICT No . 4
JOHN POOLE, DISTRIST NO. !5
J , P , BUTLER. DISTRICT No. 6
F. 0, WETMORE, DISTRICT NO. 7
W . W. SMITH, DISTRICT NO . 8
GEORGE H. PRINCE, DISTRICT No. 9
WALTERS. MCLUCAS DISTRICT No . 10
CHICAGO.
March 26, 1950 .
Dear Mr. Noell:
tr.
etmore has suggested to me that
I ask you for several additional copies of the
hearings in regard to branch and chain banking
of which you sent him, I believe, one set .
With kindest regards, believe me to
be
Sincfirely yours ,
~k~ /.: L r ~
Mr . J . C. Noell , Assistant Secretary
Federal Reserve Board,
Washington, D. C.
I
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
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Wells Fargo Bank & Union Tr
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re
San H ·ancisco
Jo: L.Lip111on.
l'rt•sl<lrnl
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Federal Reserve Bank of St. Louis
THE
FIRST NATIONA L BANK
CHICAGO
March 25, 1950.
Dear
• Noellt
I beg to acknowledge receipt of your
I
favor of the 20th, enclosing copy of Part 1 and 2
oft e bearings before the Committee on Banking
a
a
Currency of the House of Repres~n tatives on
Chain and Group Banking, H.F.. 141.
Thanking you for sending me a copy of
hearings, I remain
Yours truly,
r.J-:o,
~.J__-c-,.~
c. loell, Assistant Secretary
ederal Reserve Board,
,ashingto n, D. c.
r. J.
,A •
29
TIO AL BANK
TuEATL ANTI
oF Bo
TO
10 POST OFFICE SQ UA RE
, M
s.
Hl!.RDERT K. HALLETT
CHAIRMAN Of" TH& aoAi.o
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
rch 24th, 1950 .
1rr . J . C. loell,
t.
ec'y . ,
F dera l Re erve Boar ,
ashin t , . C.
,1y dear
r . loell :
or sendin
ish to than yo
ore the ommittee on
be
s
Part 1 nd 2 of the heari
of Repres n tives
House
nd Currency of the
B nkin
on Branch, Chain and Group Banking.
I
Sincere]y yours ,
:C
>
THE CLEVELA ND TRUST COMPAN Y
CLEVELAN D , OHIO
HARR I S CREECH
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Federal Reserve Bank of St. Louis
/
PRES I DEN T
·•arc~ 24 h ,
930 .
J . C. Noel] , As9t . cecy.,
Federal .es rv
Board ,
ton , J . C.
as
Dear ··
• oell:--
I have your letter of the roth enclosin
copy of Part 1
on Ba
Grou
in
nd
-anki g ,
ass to th Tr
for
nd 2 of thE' arings before
un ency o"' th
Hou
he Committe
on ~r nch, Ch in
l sc yo 1r letter of the "2nd enclosin g
ury Puilcting du1 ing the current ye r,
hich • J ease t.cce t thanks .
V ry truly yours ,
nd
•
•
CAN AL BAN K
a
"fR
ESTAB L 'S'"'ED
CAPITAL AND SURPLUS
J.P.
J
ST COM PANY
1831
9,000,0 00 . 00
MEM.BER
f"EOERAL RESERVE
SYSTE M
BUTLER. PRESIDEN T
NEW ORLEA NS
arch 24, 1930.
r. J. C. Noell,
sst. Secy .
ederal Reserv e Board,
ashing ton, D. C.
Dear
r.
I
oell :
ant to thank you for your letter of the 20th,
enclos ing copy of part one and t o of the h arings before
the Commit t~e on Baning and Curren cy .
I am glad to have these pamphl ts in
y file and
I thank you for sending them to me .
11th best
ishes,
Very truly
JPB.CH
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
P# .d :
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
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T HE PHILADE LPHIA NATIONA L BANK
CHAIRMAN OF THE B
March 22, 19:30
Mr. J.C. Noell, Assistan t Secretor y
Federal Reserve Board
Vashing ton, D. C.
Dear 'tlr. Noell:
Your letter of March
Mr. F.ue is receiv€d to
ther
0th to
ith copies of Part
1 and 2 of the hearing s before the Committee on
Bankin
and Currency of the House of Represe ntatives
on Branch, Chain and Group Banking , H. R. No. 141,
for
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
hich
~I. Rue
thanks you.
Very truly yours
~~G.
S cretary to
r. L. L. Rue
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
• 1930
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Federal Reserve Bank of St. Louis
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https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
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-
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· ·O ffice Corr espo n ence
To
Gov rnor Youn
·-
FEDERAL RE.SEIWE
BOARD
Dat
Subject:
rch go_. 1930
From
• ••
I transmi t here ith
forte co
witn
branch baning,
pr viou
ic .•
ue tions th t m
w ich
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
t of po
ibl
1th op cial referenc e to
itt
not
p cific lly cov r
b
the
list.
I am 1 o en-ling
Th
pple entry
6
r vied
be r i ed to
ue tion have been grouped
es it
d xpand d 11 t of
e
t the he
d r c rtain h
sier to follow tn ir drift .
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Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
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Federal Reserve Bank of St. Louis
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..,UGGJ.!i 'TION FO~ q;UE.JTI01:IS TO BE .ASI<ED ','I TUE SES REPRS 'E.1.~ L. G THE GROUP
CI IlT ND B- iCH
IB: ?;IO
1''.::'S APP ~RING AT THE
RI :rG 017 THI ,;Ju ECT
HELD BEFOR"' TH• B'1:XIrG r:D CUR '.CY , • (h. t.)
C
What, in your jud ent, can be designated as the motiv ting causes in the
oup b king move ent?
If it ere possible legally, wou d you prefer to reorganize the group of
banks in which you are interested into a branch panking system?
Do you believe that the group banking movement is by design layin a
foundation upon which to erect a branch banking syste when, as, and if the
law becomes :favorable?
bran
Do you b lieve th t
banking systems?
oup and chain banks will ulti ately develop into
/hat are the peculiar factors existin in our present era which have
contributed to the
up banking movement but which '18re lack!
in fon:ner
years?
Is it po sible for member of a group banking system to operate profitably in
co unity rhich is too
11 to support a profitable independent
bank? '/'ey?
To what degree in your opinion can a group b nki
system in a
region be in ependent of the pre~ent oentr lized oney market?
rticular
FlmNCING
1.bat
ethod did you pursue in paying for the banks of your
Do you believe that the prices at which the stock of member
oup?
of
group
is bought by the parent organization repre ent a f i capitaliz tion of the
e rni g power of the units? I it not true that some of the price
id have
been such that the return mu.st necessarily be low for so e period oft
?
To hat extent, if aey, ill the neoe 1 ty of earning a f 1r re turn on
the investment m de in thee banks (bank acquire ) result in unsound b nking
practices?
t per cent of
unit banks?
https://fraser.stlouisfed.org
Federal Reserve Bank of St. Louis
tock control do you fin
it necessary to acquire int
(2)
MANAGEMENT
In :hat w~ is a group system able to reduce costs and increase operating efficiency of the unit banks?
In the process of acquiring your chain, have you generally sought banks
having good or poor management?
In acquiring banks, have you given any special consideration to diversity
of agricultural or indu trial activities?
To rhat extent do you leave the banks tho.t you absorb under local manugement?
To what extent do you find it necessary to change the management of bank
taken over?
To what extent i the proble
in the gro th of group banking?
of developing co~petent management a factor
·lha.t is the relative possibility of one of the units of a group failing
as compared 1th the possibilities were it operating independently?
Does the central control
udit the units? How?
EFFECTS ON COOIUNITY
mlVED
/hat is the typical attitude of officials nd stockholders of a bank
which is absorbed into a group system?
1i1hat is the attitude of the clientele of banks following upon their
absorption into a group system?
To wnat extent do you find it advisable to loave the ownership of stock
in the community in which you acquire the banks?
To what extent would it be the purpose of the group man gement to provide
for the borrowi
needs of the community, which mi
resources of the local bank?
t be in exce s of the
Have you been able to determine aey effect that the establishment of
members of a group in the community has had on the rates of interest paid by
borrowers?
7.b.at advantages has the ember of a group located in a relatively small
community over its competitor that belongs to no group?
To what disadvantage is the independent unit b nker plaoed by re~son of
his competitor joining a
oup?
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Federal Reserve Bank of St. Louis
( 3)
BAlJCI lG POLICY
/hat upervi ion is exercised b"<J the centr l control over the lending
tis the machinery in this connectio n?
policy oft e units?
s there been ey change in
ince t e fonn tion of your group of banks,
Does cent l policy
men?
s
ine
bu
the len ing policy of the unit to local
scope?
l
prefer king lo n to firms of ore than loo
Is there
or re on can be
provision in the group by which surplus fund
ot er b nk or region?
e av 11 ble to
in one bank
Doe the centr 1 control of group sy tem diet te to different ember
of the group in hifting funds fro one b nk to nother ithin the group?
,'hat
your bank,
tio of ggrega.te lo ns to deposits t the t e you acquired
the
nd hat i the ratio of loan to deposits a t thi t e
s
unt of invest ent
Have you increased the
banks?
the acquisiti on of your
of your
oup following upon
ihat do you consider to be the minimum ratio of capital fu ds to deposits?
/hat, if any, ch.an
since acqui ition?
has there been in that
tio in the
roup of b nks
In connectio n 1th ecuritie undexwri tten by or niz tion connected
oup as
ith the group, does the central control u e the units of the
n?
diet tion in this connectio
what degree is the
market?
slo
s, do you make
fuen you cquire b
sset? If so, ht
or undesi bl
rry
rrangemen t bout disposing of
nts do you follo
ys, if any, c n the member of a group ban In v. t e sure and in hat
of the
ing system chieve a diversity of assets not possible in the c
ind penclent bank?
Can
ituation
C
ti£ otorily ~1th
frozen loan
y tr group plan to or nize ne banks in any looal1t1e ? If so,
ore de ir ble than oquiring bank lre cl¥ in exi tence in the
i thi
unity?
Do
w
up b nld.ng system deal more
n unit bank on? , .
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Federal Reserve Bank of St. Louis
( )
MISCELLANEOUS
Ho many of the b nks in your group
re n tion l b nk ;
are
st te banks?
ged the oha
o,
cqui
oter of charters of any of your b
'by?
, effect doe
How
s
ber
of your group belo
oup banking h ve on the double 11 bility of
to the
der l re serve system?
ource of ul ti.mate reserves, do you regard it de ir ble for so
of the group to retain ember hip in the Fede 1 re erve sy tem?
Doe one or
oup hioh
your
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Federal Reserve Bank of St. Louis
r of your banks ct
bar of the
re not
tho e
?
of
(5)
BRA.NCH BANKERS
MOTIVES
Can branch of a large bank be maintained profitably in a community hioh
is too
11 to sustain a profitable independent bank? W'r:r:,?
How, if at all, does branch banking o er several comnunities reduce costs
and increase efficiency as compared with a ervice of those co unities by
independent bank?
t hat is dvantage i an independent banker in his competition locally
with the branch of larger b nk hose hea office is in another city?
To what extent is the establishment of
nece
itated by the fact that a competitor has
new branch in a given vicinity
branch in that loo 1 ty?
EFFECTS ON CCMMU:NITY SERVED
Do you feel that you have as much responsibility for adequate banking
service to the vicinities serve by your branch offices as to that served by
your he d office?
Is your management active in interesting persons in vioini tie• served by
your branches in owning took in your bank?
In the case of branches located in cities, other than the home office city,
is your personnel recruited locally?
To what extent do you
end in outside personnel for your local staffs?
Is it your olicy to move branch b nk managers from place to place?
To hat extent does the head office encourage local mana
themselves with their conmunity•s activities and
bitions?
rs to identify
To hat extent is there specialization on the part of your branches with
re pect to styles of bussine ses and illdustrie
erved?
In est blishing ne branche , what factor
with respect to vicinities to be· erved?
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Federal Reserve Bank of St. Louis
do you t
k:e
into consideration
(6)
:x.ING POLICIES
In the case of your specific Branch A (located outside of the head office
city) how much deposits does it have from the city which it serves? ~tis
the aggregate of loans made by this branch in the city which it serves?
1hat proportion of your disposable fund
loan?
is put into so-called customers
-'hat proportion into the open m rket, tho.tis into securities,
exchange loans, acceptance , and so on?
Do your branches prefer to a.ke loan to clients tith ore t
interests rather than to business ~en of purely local affairs?
tock
n local
Do you have any minimum size for loans? If so, who.tis it? Is this any
different from the pr ctice of unit b8llk in the same communities?
7h t supervision does the head office exercise over the lending ctivities
of the mana rs of branches?
When money conditions are ti t, what system do you use with respect to
rationin~ dispos ble funds among your several branches?
can a branch banking system deal more sati factorily with a frozen loan
condition than a unit bank can? 1/b::l?
Has your branch bankin system made any effort to reduce the cost of credit
to the borrower?. Is there any statistical evidence of results in this connection?
t in your jud ent should be the minimum capital of a b nk to which
branch banking privileges are to be accorded?
How much additional capital hould be provided in the case of each branch?
l'hat is the ratio of your capital to deposits?
Need this ratio be larger or smaller for a branch bank syste
banks erving a like territory? Wb'3?
How much till cash must you currJ vith relation to your aggre
Is this more or les
to carry?
than unit b£mk
in your co
t
n for unit
te deposits?
unity find it necessary
To hat extent have your branches been acquired through purchasin
lre dy in exi tenoe?
t
ethods o you use in auditing branches?
of the sy tem ~ a whole?
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Federal Reserve Bank of St. Louis
banks
In coordinating the activities
•
(7
GE
RAL
t do you regard to be the relative merits and d erits of
co pared to br ch bankin
oup b nking
you believe that the concentra tion of b nking resourc s into the hands
countries
few 1 rge units comparable to the condition in certain forei
of
?
i inevit ble in this country? ,
Do
'/hat ction in your jud
s d
problem of br nch b
ent s ould Congress t ke
up bank?
1th respect to the
ppo e banking re ources in each Feder 1 reserve di trict hould trough
b nch banking or chain b ing be concentra ted into the hand of a fa 1 r
unit , ~ht in your judgment would be the consequ noes to the e eral reserve
nk of the ·1 trict?
~
Have you in ind any f ctor th t limit the size of
eed the 1 its of homo neou
branch banking sy tam?
degree?
detennini ng in any
Is your
oup
till in the
group or
l re be
xpandin
If national b nks should be accorded branch banking privilege
rea de cribed a a trade area, how shall ••trade area" be defined?
ithin an
s should deci e to extend the branch banking re of n tional
If Con
t should th limitatio n of this extension b in your judf!Jllent?
b nks,
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Federal Reserve Bank of St. Louis
@FedFRASER