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c TO: B o a r d o f FBDM: M e s s r s * fi N Z I D 1 1 T I A & G o l d e n w e i s e r , P a u l g e r , Smead, to*. 23 1937 DATE: G o v e r n o r s SUBJECT: M o r r i l l , a n d B a n k S u s p e n s i o n S t u d y D r e i b e l - b i s P u r s u a n t o f t h e May 5, t o a n i n f o r m a l B o a r d l a s t 1 9 3 6 , o u t l i n i n g p o s s i b l e m e t h o d s means o f s p r i n g o f a i m p r o v i n g u n d e r A* t h e i n Cm C o n s o l i d a t i o n h e a d i n g s . s i o n s o f t h e A B o a r d T h e r e h a v e w h i c h h a s t h e t o I t s y s t e m a t h e p u r p o s e s t r u c t u r e . b a n k i n g a t B o a r d o f d a t e d d e t e r m i n i n g was be m e e t i n g p r o p o s e d c o n s i d e r e d t h a t a n d t o p i c s : b a n k i n g f u n c t i o n s , i n s t i t u t i o n s a n d b a n k i n g t h e s y s t e m ; s u p e r v i s o r y a g e n c i e s l e n d i n g a g e n c i e s f u n c t i o n s d e a l i n g o r a n d w i t h o f b a n k s , r e c a p i t a l i z a t i o n w h i c h a s s i s t b a n k s d i f f i c u l t i e s * f o r t h a n o u t l i n e s u b c o m m i t t e e was b e e n b e e n p l a c e m e t h o d s ; o f t h e f o r o r g a n i z a t i o n , o f F e d e r a l o f t o o k s u b m i t t e d r e l a t e d t h e i n c l u d i n g s e t m a j o r o f f u n c t i o n s i n s t u d y t h e s u p e r v i s o r y v a r i o u s i n U n i f i c a t i o n was A m e r i c a n management w h i c h b a n k i n g f o l l o w i n g B* memorandum t h e t h e I m p r o v e m e n t s a n d w o r k memorandum p r o p o s e d s t r e n g t h e n i n g i n v e s t i g a t e d T h e a d i s c u s s i o n done o f " C o n s o l i d a t i o n m e r c i a l a n d t o d u r i n g " U n i f i c a t i o n " B r a n c h d r a w n c o n s t i t u t e d s u b m i t t e d o f Group t o y o u t h e t h e b a n k s " ; o f recommended f r o m t h e p r e p a r e t h r e e s t u d i e s s t a f f s t h e s e o f u n d e r v a r i o u s F e d e r a l a n d memoranda B a n k i n g " B a n k i n g S u p e r v i s i o n d i v i - s t u d i e s * g r o w i n g i n t e r v a l : C o m m e r c i a l s i x t e e n S y s t e m " ; o f Com- o u t o f t h e - 2 - The need for -unification of the commercial hanking system and for consolidation of Federal supervisory agencies w i l l be further developed by two other memoranda which are i n process of preparation for submission to the Board on the subjects of: "Competition i n Laxity Associated with Multiple Banking Jurisdictions"; and "Complexity of Banking Laws and Practices Relative to the Organization, Operation, and Supervision of Banks" The preparation of these f i v e summary memoranda has been f a c i l i tated by a body of material collected and f i l e d and by the following series of detailed memoranda which have been prepared: 1. 2. 3# "Bank Suspensions, 1892-1935" ( H I PP*) "Banking P r o f i t s , 1890-1935" (50 PP#) " C l a s s i f i c a t i o n of Banks i n Operation on Dec. 31, 1935" (to BP*) "The Complexity of Banking Laws and Practices Relative to the Organization, Operation, and Supervision of Banks" (288 pp.) 5* "Statutory Competition i n Laxity" (151 pp*) o» "Administrative Competition i n Laxity" (112 pp#) 7* "Bank Management" (97 PP#) This memorandum i s based i n part on a review of banking statutes prepared by the Counsel's o f f i c e under the title:* "Provisions i n Effect under State and Federal Law f o r the Improvement of Bank Management" ( I 3 2 pp.) 8* "Branch Banking i n the United States" (IU9 pp.) This memorandum i s based i n part on a review of banking statutes prepared by the Counsel's o f f i c e under the t i t l e : "Compilation of Federal and State Laws Relating to Branch Banking within the United States" (88 pp#) 9# "Group Banking i n the United States" (I3U pp#) This memorandum i s based i n part on a review of banking statutes prepared by the Counsels o f f i c e under the t i t l e : ~ 3 - 10* 11. "Compilation of Federal and State Banking Laws Rel a t i n g to the Acquisition of Bank or Trust Company Stock by Banks and Trust Companies and Rel a t i n g to Bank Stock Holding Companies and Chain or Group Banking (72 pp*) Government Credit Agencies: (a) "Investment i n Capital Structure of Banks and Loans to Banks and Others by the Reconstruction Finance Corporation" (32 pp*) (b) "Federal Intermediate Credit Banks and Production Credit Associations" (39 pp.) (c) "Savings and Loan Associations under the Federal Hone Loan Bank Board" (15 pp*) (d) "Federal Land Banks and Federal Farm Mortgage Cor-* poration" (*+7 pp.) (e) "Home Owners^ Loan Corporation" (30 pp.) (f) "Postal Savings System" (56 pp.) "Study of Obsolete, Overlapping, Conflicting, Ambiguous, and Other Unsatisfactory Provisions i n Existing Federal Banking Laws11 (l60 pp.) These detailed memoranda are being revised after receipt of c r i t i c i s m and comments from members of the senior staff* The compilation of branch banking laws referred to under (S) above was published i n the Federal Reserve B u l l e t i n for November 193&* It i s contemplated that basic s t a t i s t i c a l material produced on bank suspensions, o f t h e b a n k i n g s t r u c t u r e , e t c . , may b e p u b l i s h e d i n t h e classification B u l l e t i n f r o m time to time* On the following pages there given a b r i e f description of the scope and contents of each of the detailed memoranda l i s t e d above* - H - 1 - Bank Suspensions, 1892-1915 (111 pp*) (In process of revision) This memorandum gives detailed s t a t i s t i c s on bank suspensions during 1892-1935* hy years and periods, classes of banks, States, size of banks, etc* Figures of suspensions are compared with f i g - ures of active banks, thereby establishing a "suspension rate" among the various classes and sizes of banks* Analyses are pre- sented of losses sustained by depositors and stockholders of suspended banks and of expenses of l i q u i d a t i o n by classes and size of suspended banks* Loans to banks by Governmental agencies, such as the War Finance Corporation and the Reconstruction Finance Corporation, and purchases of capital obligations of banks following the national banking holiday by the Reconstruction Finance Corporation are b r i e f l y summarized* An effort i s made to evaluate the causes of bank suspensions and to distinguish between weaknesses i n the banking structure and general economic factors contributing to the large numbers of bank suspensions i n the past 15 years. ~ 5~ g ~ B a n k i n g P r o f i t s . ( I n T h i s e x p e n s e s , a n d I t memorandum l o s s e s , a n a l y z e s p r e s e n t s t h e shows a n d n e t s o u r c e o p e r a t i n g a n d c i t i e s , b y a s t h e t y p e b a n k m a k i n g t o r s a a n d , o f s u f f i c i e n t a t t h e o f same t i m e , t o o f a g r o s s a e x p e n s e r e g i o n s , h a v e t h e t o i n c o m e , p e r i o d I n d i c a t i o n s t i m e s r e n d e r o f o v e r i t e m s e t c * n o r m a l t o PP#) r a t e g e o g r a p h i c a p p e a r s i n t h e h a n k s a n d b a n k s , w h i c h p r o f i t i n o f i n c o m e h y ( 5 0 r e v i s i o n ) p r o f i t s o f s i z e Ig90->1935 o f changes, r e s u l t s t o w n s t o p r o c e s s b e s t p r o t e c t o f y e a r s , a n d h y l o s s e s * s i z e a r e d e v e l o p e d c h a n c e i t s r e a s o n a b l e r e t u r n r e s p e c t r e c e n t o f o f d e p o s i - t o s t o c k - h o l d e r s * A m e n t s m e n t a l b r i e f a f f e c t i n g p o l i c y , v e s t m e n t s , c h a r g e s , s t a t e m e n t h i g h e t c * b a n k i s i n c l u d e d p r o f i t s , Government l i q u i d i t y s u c h w i t h a s s e c u r i t i e s o f b a n k s , t h o s e r e s u l t i n g r e p l a c i n g l o w e r t o o t h e r i n t e r e s t f r o m l o a n s r a t e s , d e v e l o p ^ G o v e r n ^ a n d i n - s e r v i c e ~6 1 - C l a s s i f i c a t i o n of Banks i n Operation on December J l , 1935 T%0 PP#) (In process of revision) This memorandum i s a part of a larger project analyzing (1) changes which have taken place i n the banking structure during the period 1921-1935 from the standpoint of number of banks i n operation, by classes and by size of banks; (2) the changing character of bank assets and l i a b i l i t i e s ; and (3) the present banking structure* A l l of the information collected on these topics has not as yet been reduced to a formal memorandum* A formal memorandum has analyzed and c l a s s i f i e d banks i n operation on December 31, 1935 according to (1) ratio of demand to t o t a l deposits, ( 2 ) size of banks, (3) population of towns and cities, (4) ratio of capital to deposits, (5) e l i g i b i l i t y f o r Federal Reserve membership and for conversion into national banks, and (6) membership i n Federal Reserve c o l l e c t i o n system. Another section of this project on which information has been assembled but not reduced to formal memorandum relates to the o r i g i n and development, number and importance and functions of quasi banking institutions (such as building and loan associations and credit unions) i n an attempt to show the extent of competition by such i n stitutions with banks f o r deposit3 and f o r loans and investments* A statement of the h i s t o r i c a l background of the American banking system, partly by way of introduction and partly to show the development of our present complex banking structure, i s also part of the whole project* ~ 7 k - j h e C o m p l e x i t y t h e £ f B a n k i n g O r g a n i z a t i o n , o f ( I n T h i s i n g f r o m v a r i o u s l y s e s t h e t h e o f p r o b l e m f r o m w h i c h t h e c o n f l i c t i n g a l t h o u g h s i n c e t h e y h a v e f i l e s a n d t h e s e o f c a s e s w i t h w h i c h i s d i v i d e d o f n o t a n d c o m p l e x i t i e s s u p e r v i s i o n t h e I t a l s o as p o l i c i e s c o m p l e t e t o a s m a t e r i a l members o f I t p r o v i s i o n s c i t e s t h e a r i s - among S t a t e s . c o n f l i c t i n g c o n f i n e d c e r t a i n t h e a n d a d m i n i s t r a t i v e a r e b e e n w i t h , r e g u l a t i o n o r t o r e v i s i o n ) a u t h o r i t y * l a w s R e l a t i v e S u p e r v i s i o n p p . ) Government o f P r a c t i c e s a n d c o n c e r n e d s t a n d p o i n t n e c e s s a r i l y c a s e s p r o c e s s F e d e r a l d i f f u s i o n c o n f u s i o n , (2SS b a n k i n g t h e a n d Banks p r i m a r i l y o f f r o m t h i s s u c h t o i s d i f f u s i o n a g e n c i e s a r i s i n g i n memorandum L a w s O p e r a t i o n , a n a - o f c e r t a i n h a v e l a w c a s e s p r o d u c e d t h e y m i g h t w i t h i n t h e B o a r d ' s t h e b e B o a r d i s s t a f f a r e f a m i l i a r • The memorandum c o m p l e x i t y w i t h t h e d e a l i n g s e c o n d r e s p e c t b a n k s * U n d e r s i d e r e d c o m p l e x i t i e s p r a c t i c e s o f t h e w i t h v e s t m e n t s , m a t t e r s . i t i e s w i t h r e p o r t s , v i s i o n s o n The o t h e r t h e s e s t r u c t u r e , o f d e p o s i t s , o f r e p o r t s , m a t t e r s * w i t h o f e x c h a n g e a n a l y s i s t h e r e a n d a n d b a n k s , a r e c o l l e c t i o n c e r t a i n c h i e f l y o f t h e i n - c h a r g e s , c o r p o r a t e t h e a n d c o n - a n d l o a n s , c h a n g e s m i s c e l l a n e - w i t h e x a m i n a t i o n s , o f w i t h e s t a b l i s h m e n t d e p o s i t s , d e a l s o f o f p r o v i s i o n s o r g a n i z a t i o n s , r e p o r t s d e a l i n g s u p e r v i s i o n p o w e r s , a g a i n s t s u p e r v i s i o n some t h e b a n k s , t r u s t l i q u i d a t i o n s ) e x a m i n a t i o n s , t o s t a t u t o r y b a n k s , r e s e r v e s f i r s t o p e r a t i o n r e s p e c t t h e a f f i l i a t e d d i s c u s s i o n t o t o t h e a n d o p e r a t i o n r e s p e c t c h a r t e r i n g w i t h p a r t s , w i t h a n d r e o r g a n i z a t i o n s , r e s p e c t a n d w i t h two o r g a n i z a t i o n c o m p l e x i t y p r e m i s e s , r e l a t i o n s ( c o n s o l i d a t i o n s , ous t o c a p i t a l b a n k i n g management, t h e o r g a n i z a t i o n r e l a t i n g b r a n c h e s , t o i n t o c o m p l e x - c o n d i t i o n s t a t u t o r y p r o - - 3~ 5 - Statutory Competition i& Laxity (151 pp.) (In process of revision) This memorandum analyzes the alterations in both federal and State banking statutes which r e f l e c t a competition i n l a x i t y between the different jurisdictions* Debates, committee reports, annual reports of the Comptroller of the Currency and of the Federal Reserve Board, etc*, were examined with respect to a l l amendments to the National Bank Act and the Federal Reserve Act which relaxed existing provisions. Amendments to Federal banking laws which are covered concern minimum capital requirements, branch banking, trust powers of national banks, real estate loans, reserves against deposits, l i m i t a t i o n on loans to a single borrower, dealing i n investment securities, national banks as insurance agents or real estate brokers, i n crease of capital through issuance of stock dividends, reports of condition, acceptances, conversion of State banks into national, indeterminate charters of national banks, foreign banking corporations, f a c i l i t a t i n g admission of State banks to Federal Reserve membership, etc. Investigation of alterations i n State statutes a r i s i n g from competition i n l a x i t y i s d i f f i c u l t f o r several reasons* For example, records of l e g i s - l a t i v e history i n most of the States are not s u f f i c i e n t l y complete to bring out the purposes behind specific enactments* 7/ith respect to New York, Mary- land, Michigan, and C a l i f o r n i a the annual reports of the State banking supervisory authorities were reviewed* Consideration i s given, among other things, to the changes i n the banking laws of these States which may have resulted from the authority conferred upon national banks to exercise trust powers and to the relaxations State bank reserve requirements following the re- duction i n national banjc requirements shortly after the enactment of the Federal Reserve Act. - 9 - 6 - A d m i n i s t r a t i v e ( I n T h i s o f l a w s a n d c h a r g e d i n t h e d i r e c t l y d e v e l o p e d b a n k i n g u n d e r men b a n k i n g e x e r c i s e t h e r e l a t i v e s y s t e m s , t h e p r a c t i c e s o t h e r , a n d t h e I I i n d i c a t i n g i n o f I t s e t s a u t h o r i t i e s b i l i t i e s ; i n a n d d a t a v a r y i n g t o o f i n f o r c e i n t h e a u t h o r i t y t h e as t h i s n a t i o n a l v i e w s a d m i n i s t r a t i o n h y t h e a g e n c i e s c o m p e t i t i o n a n d t h e e x p r e s s e d b e t w e e n c o m p e t i t i o n a d v a n t a g e s o f one one S t a t e s e v e r a l o f f r o m Hg h a s b y e x t e n t o f s u p e r v i s i o n m a k i n g f o r m e t h o d s t h e i r o f a n d o f q u a l i f i c a t i o n s , c o n c e r n i n g p p . ) s y s t e m o v e r j u r i s d i c t i o n t h e t o t h e r e s u l t . m a c h i n e r y t h e l a x i t 3 ^ "banks s h i f t i n g w h i c h f a c t o r s f o r t h t o n a t u r e b a n k s i n t y p i c a l c o m p e t i t i v e t h e t h e f o r t h (112 r e v i s i o n ) o f o p e r a t i o n t h e L a x i t y d i s c r e t i o n a r y s u p e r v i s i o n s t a n d a r d s t h e i r d e g r e e s o f s e t s t h e r e v i e w s some l a x i t y . I o f i n c o m p e t i t i o n p a r a l l e l o t h e r , P a r t t h e P a r t l a x p r o c e s s r e v i e w s w i t h s y s t e m s . p r o m i n e n t t h e memorandum C o m p e t i t i o n t h e p u r p o s e a d m i n i s t r a t i v e s e l e c t i o n d u t i e s , e x a m i n i n g c o r r e c t i v e f o r o f p o w e r s , s t a f f s ; a c t i o n ; t h e a n d o f c o m p e t i t i o n s u p e r v i s o r y a n d r e s p o n s i - l a c k o t h e r o f p o w e r r e l a t e d m a t t e r s . I n v i s i o n f e s t e d , p o w e r s P a r t i n w h i c h s u c h a n d c r i t i c i s m , I I I as i l l u s t r a t i o n s a d m i n i s t r a t i v e i n t h o o p e r a t i o n s , e t c . a r e g i v o n o f c o m p e t i t i o n c h a r t e r i n g o f e x a m i n a t i o n s , b a n k s , t h o i n e l e m e n t s I n j c i t y t h e c o r r e c t i o n s h a s e x t e n s i o n o f o f s u p e r - b e e n o f m a t t e r s m a n i - t h e i r o f - 10 £ - Bank Management (19*+ PP«t including appendices) (Revised March g, 1937) This memorandum reviews the principal weaknesses of hank management as well as possible methods for improvement* Part I brings together the views of prominent bankers and others relative to the principal weaknesses of bank management and resulting effects* Part I I describes three important means by which bank management might be improved, namely, l e g i s l a t i o n , efforts of bankers, and selection and training of personnel* cooperative A description i s included of the provisions of Federal and State laws r e l a t i v e to qualif i c a t i o n s of directors and officers; l i a b i l i t y of o f f i c e r s and directors and provisions f o r their removal from o f f i c e for mismanagement or v i o l a tions of the banking laws; duties, r e s p o n s i b i l i t i e s , and powers of directors; r e s t r i c t i o n s on f i n a n c i a l interest of^directors and o f f i c e r s i n bank transactions; and other miscellaneous matters* Proposals with respect to l i c e n s i n g bankers are reviewed, p a r t i c u l a r l y from the standpoint of the many problems which would be involved i n the formul a t i o n and administration of a satisfactory licensing system i f required by law* Somewhat less attention i s devoted to the a c t i v i t i e s of bankers for the improvement of bank management through associations and regional conferences, as well as through the selection, education and training of per1 sonnel* This memorandum i s arranged i n such a manner that the views of cer^ t a i n prominent bankers and others, as well as important provisions of the law relating to the subject, are reflected i n the body of the memorandum while the views of a great many other persons and more detailed references to pertinent provisions of the statutes are included i n appendices, with appropriate references i n the table of contents* The portions of the study relating to statutory provisions are drawn largely from a memorandum ent i t l e d "Provisions i n Effect under State and Federal law for the Improvement of Bank Management," prepared by Counsel** Office* - 11 - g - B r a n c h B a n k i n g ( I n T h i s b a n k i n g o r g a n i z a t i o n S t a t e s * t u r e I t o f a n d 31* B r a n c h some o f 1 9 3 5 p o s a l s m i g h t f o r b e s t a t u s c o u n s e l b a n k s b r a n c h i n t h e b a n k i n g . t h u s i s f a r o r i n t e r m s b a n k i n g t o some o f t h e As a p a r t i n w i t h e x i s t i n g t h e t y p e i n o f t h e o f U n i t e d t h e e v o l u t i o n , s t r u c - p r e s e n t b a n k i n g o f i n s t a t u s t h e as i n i t s o f as w h i c h o f a n a l y s i s U n i t e d c o u n s e l S t a t e o f w e l l c o n n e c t i o n r i t h i n t h e a d v a n t a g e s o r g a n i z a t i o n * p r o b l e m s a r i s e a r e a s a d e t a i l * o f t h e p p . ) t a s k s t a t i s t i c a l t y p e w o u l d b a s i c b r a n c h a t h a t a s b a n k i n g The w i t h e v a l u a t e d b a n k i n g t h e o f economy* a n a l y z e d c o o p e r a t i o n a n a l y z e d u n d e r l y i n g m o d e r n (1U9 b a n k i n g s t r u c t u r e i n e n l a r g i n g b r a n c h b r a n c h i s g i v e n i s s u e s t h e S t a t e s r e v i s i o n ) T h e a s p e r m i t t e d * o f i n U n i t e d o f d e s c r i b e d * b a n k i n g i s t h e a a r e d i s a d v a n t a g e s s i d e r a t i o n i n t h e a n a l y z e s e x p e r i e n c e S t a t e s December a n d d e v e l o p s b a n k i n g s t a t u s , U n i t e d memorandum i n p r o c e s s b r a n c h S t a t e s , t h e s t a t u t e s o f Con- as w i t h t o p r o - b a n k i n g t h e p r e s e n t t h e B o a r d t s F e d e r a l R e s e r v e w i t h r e s p e c t t o ~ 12 - SL ~ GroyP Banking i n the United States ( i j k pp#) (In process of revision) This memo random analyzes group hanking as a part of the hanking structure of the Uiiited States. I t shows the extent, distribution, and development of group banking; points out some of the principal features of organization and operation of the groups; reviews the changes and suspensions i n banking groups through 1935? points out the principal advantages and weaknesses of group banking as compared with unit banking and with branch banking. Tabulations and compilations i n the study r e l a t i n g to group banks are l i m i t e d to groups having three or more banks as of December 31, 1935* A large amount of the data r e l a t i n g to group banks has been obtained from voting permit f i l e s of holding company a f f i l i a t e groups. Banking chains are not included i n the tabulations since satisfactory data r e l a t i n g to them are not available. As a part of the analysis of the present status of group banking i n the United States, the Board's counsel i n cooperation with counsel of the Federal Reserve banks analyzed the existing State statutes with respect to the ownership of bank stock by corporations. ~ 13 - 10 - Government Credit Agencies (In process of revision) (a) Investment i n Capital Structure of Banks and Loans to Banks and Others by the Reconstruction Finance Corporation (32 pp.). - This memorandum brings out the terms under which the Reconstruction Finance Corporation invested i n the c a p i t a l structure of hanks, the investment by geographic areas and by types of banks, and the progress of r e t i r e ment* Some consideration i s also given to the a b i l i t y of banks to carry and r e t i r e t h i s stock under existing contracts* Loans by the Reconstruction Finance Corporation not only to banks but to other f i n a n c i a l i n s t i t u t i o n s , such as those to mortgage loan companies, insurance companies, and building and loan associations are reviewed as are also loans to agricultural financing i n s t i t u t i o n s , to railroads, and for s e l f - l i q u i d a t i n g projects* (b) Federal Intermediate Credit flanks and Production Credit Associations (39 pp0* - This memorandum deals with the objectives of the Federal Intermediate Credit system, the source and cost of i t s funds, and the financing i n s t i t u t i o n s using the system* system are reviewed* The earnings of the The Production Credit System, including both the corporations and associations, i s dealt with at some length. An attempt i s made to measure the importance of their lending a c t i v i t i e s as compared with commercial banks i n agricultural communities and to assess the p o s s i b i l i t y of their surviving without Government subsidy* -14(c) Savings and Loan Associations -under the Federal Home Loan Bank Bparc| (15 pp*)* - This memorandum describes the membership i n the Federal Home Loan Bank system, the discount provisions and insurance arrangements of the system, and the c a p i t a l subscriptions to associa^ tions made by the United States* Consideration i s given to the problem of competition between Federal savings and loan associations and combiner c i a l banks* ( d ) Federal Lanft Banks and Federal Farm Mortgage Corporation (kj pp f ) This memorandum develops the history of Federal Land banks before the depression as w e l l as their problems growing out of the depression, i n cluding the necessity of postponing principal and interest payments, strengthening of capital, and emergency refinancing of mortgages * It contains a review of the earnings experience of the banks, deals with the competitive relationship of the system with commercial banks, and attempts to measure the extent to which the Federal Farm Mortgage Corporation took over mortgages from banks and the extent to which banks have become investors i n the guaranteed bonds of the Federal Farm Mortgage Corporation (e) Home Owners1 Loan Corporation (30 pp*)* - This memorandum develops the organization and methods of financing of this Corporation, analyzes i t s loans and Investments, and describes the nature of loans to home owners* I t reviews the c o l l e c t i o n and earnings experience of the Corporation and attempts to bring out the degree to which various types of mortgage lenders transferred their mortgage holdings to the Corporation and the extent to which commercial banks have becomc i n vestors i n the guaranteed bonds of this Corporation* -15- ( f ) P o s t a l t h e n a t u r e o f a n d c o m p a r e s g e o g r a p h i c o f P o s t a l ( N o t e : P o s t a l t h e "by e x p e n s e s p a v i n g s r e g i o n s . t h e f u n d s P o s t a l I n f o r m a t i o n H o u s i n g C o o p e r a t i v e o n ( 5 6 o f f e r e d I t a n a l y z e s i n b a n k s S a v i n g s h a s a l s o a n d b y - T h i s t r a c e s t h e t h e S y s t e m f a c t o r s a l s o memorandum g r o w t h w i t h r e l a t e d d e a l s t o w i t h d e s c r i b e s o f t h o s e t h e t h e d e p o s i t s , o f b a n k s r e d e p o s i t e a r n i n g s a n d s y s t e m . b e e n a s s e m b l e d L o a n s A s s o c i a t i o n s , t h e s e p p . ) . o p e r a t i o n s , A d m i n i s t r a t i o n , memoranda S a v i n g s f a c i l i t i e s S a v i n g s o f S y s t e m t o p i c s a n d h a v e o f o n F e d e r a l Commodity n o t b e e n t h e s u b j e c t s ; A g e n c i e s C r e d i t t o F e d e r a l A g r i c u l t u r a l C o r p o r a t i o n , p e r f e c t e d . ) F o r m a l ~ 16 - 11 - Study Obsolete, Overlapping. Conflicting, Ambiguous. and Other ^ s a t i s f a c t o r y Provisions i n Existing Federal Banking lawq (160 pp*) (In process of revision) This memorandum analyses and collects to a certain extent provisions of Federal banking laws which are unsatisfactory primarily because of drafting or technical reasons, rather than because of any substantial reason of policy* TShile such provisions cannot be r i g i d l y c l a s s i f i e d , they are considered i n several groups* Under obsolete pro- visions are treated those which have not been s p e c i f i c a l l y repealed but which are nevertheless of no effect and therefore are confusing* This may result from implied repeal, complete execution of the provision, or subsequent enactment bf more comprehensive provisions* Under overlapping provisions are treated those with respect to the same subject matter which appears to have a similar meaning and effect and therefore seems to involve unnecessary duplication* Under c o n f l i c t i n g provisions are treated those r e l a t i n g to the same subject matter but inconsistent with each other* Under ambiguous provisions are treated those which do not clearly indicate the intent of Congress. Certain other provisions are considered which are technically unsatisfactory for other reasons such as the omission of necessary language* There i s also suggested a rearrangement of the Federal bank- ing statutes which would put these statutes i n more understandable and readily available form*
@FedFRASER